Profit or Loss from Incomplete Records Practical Question

From Assets and liabilities and other information of incomplete accounts, calculate net profit or net loss of Mr. Y's business.

Assets

31-12-2009 and 31-12-2010

building 100000
furniture 50000
stock 120000 and 270000
cash at bank 70000 and 85000
cash in hand 1200 and 3200

Liabilities

Loan 100000 and 80000
sundry creditors 40000 and 70000

Decide to depreciation building by 2.5% and furniture b 10%. One life insurance policy of the proprietor was matured during the period and the amount of 40000 has been retained in the business. Proprietor took @ 2000 per month for meeting family expenses.

Liabilities	31-12-2009	31-12-2010	Assets	31-12-2009	31-12-2010
Capital ( Balancing figure	241200	440700	Building	100000
Loans	100000	80000	Machinery	50000	97500
Bank overdrafts	nil	nil	Furniture	120000	45000
Sundry Creditors	40000	70000	Other Fixed Assets	nil	nil
Bill Payable	nil	nil	Stock	120000	270000
			Sundry Debtors	40000	90000
			B/R	nil	nil
			Loan and Advances	nil	nil
			Cash and Bank	71200	88200
	381200	590700		381200	590700

Amount received from Life insurance policy has been used in business, so it is fresh capital. Personal expenses will be drawing. For calculating profit or loss of business of Mr. Y, following statement will be made.

	Closing  Capital	440700
	Add Drawing	+ 24000
	Balance	------------  464700
	Less Fresh Capital	- 40000
	Less Opening Capital	- 241200
	Net Profit or Net Loss of Business	183500