NET WORTH METHOD QUESTION 1 - 12

problem 1

problem 2
premium

8000
3%
problem 3
loss
accounting equation assets = liabilies + capital

CC = 905000
DRAWINGS = 670 PER MONTH 8040
OC = 1000000
FRSH CAPITAL

LOSS = 160380

problem 4

depriciation
always less statement of profit & loss
from asset for the year ending 30-6-2022
question 5
always add interest
percentage in loan
according to month

statement of profit & loss

for the year ending 30-6-2022
question 6
provision always less
from debtors

dep always less from

asset
statement of profit & loss
for the year ending 30-12-2022
interest on capital

1 find interest percentage from opening capital

2 find interest percentage from fresh capital month
3 add both interests
4 less from profit before interest

note = keep months in mind

question 8
question 9

balance sheet

left side = assets with adjustment

right side = liabilies with adjustment , OC + profit - drawings
question 11
question 12

statement of profit & loss

for the year ending 30-6-2022
METHOD QUESTION 1 - 12

mr khubaib
statement of profit and loss
for the year ending 31st june 2022

closing capital 76000

add : drawings 14400
1200 x 12 90400
less: fresh capital
8000x 3% 8000+240 8240
adjested capital at end 82160
less :opening capital 40000

profit for the year 42160

wasim
statement of profit and loss
for the year ending 31st july 2021

closing capital 192000

add : drawings 34800
226800
less: fresh capital
40000 x 10/100 = 4000 40000-4000 36000

adjested capital at end 190800

less : opening capital 200000

loss 9200
 equation assets = liabilies + capital
asset - lia = capital

905000
WINGS = 670 PER MONTH 8040
1000000
CAPITAL

78000 AT 6% LOSS 73320

= 160380

mr ansar
statement of profit & loss
for the year ending 30-6-2022

closing capital 25500

 add: drawing 3000
28500
less: fresh capital
4000
adjusted capital 42500

less: opening capital 40000

loss 15500

month
mr nawaz
statement of profit & loss
for the year ending 30-6-2022

closing capital 59625

add: drawing 18000

1500 x 12 77625
 less: fresh capital
7500
adjusted capital 70125

less: opening capital 50000

profit 20125

ays less

ss from
mr masood
statement of profit & loss
for the year ending 30-12-2022

closing capital 100050

add; drawing 25000
125050
less; FC 7000
adjusted capital 118050
less; opening capital 82900
profit before interest 35150
less; interest
on opening capital 82900 x 6 /100 = 4974
 on fresh capital 7000 x 6/100 x 6/12 = 210
4974+ 210 5184
profit for the year 29966

t percentage from opening capital

t percentage from fresh capital month
terests
ofit before interest

months in mind
ets with adjustment
abilies with adjustment , OC + profit - drawings

statement of profit & loss

as on 30 december 2022

closing capital 32860

add: drawings
18000- 12000 6000
adjusted capital 38860

less: opening capital 24000

pofit for the year 14860

mr nayyar
statement of profit and loss
as on 30th secember 2022
detail RS
closing capital 56880
add ;drawings 6000 + 1600 7600
 64480
less ; fresh capital 2000
62480
adjusted capital
less ; opening capital 60000

profit for the year 2480

mr X & y
statement of profit & loss
for the year ending 30-6-2022
closing capital 155802

add: drawing 4800+ 4800 9600

adjusted capital 165402
less: opening capital 146800
ptofit before interest 18602
less: Interest
opening capital 146800 x 6/100 -8808

profit of the year 9794

STATEMENT OF PROFIT AND LOSS

1OPENING CAPITAL
2CLOSING CAPITAL
3DRAWINGS
4FRSSH CAPITAL
opening capital = opening statement of affairs
closing = clo statement of affairs

mr ansar
statement of affairs
as on 30-6-2022

assets amount

cash 900
bank 5000
debtors 8100
b/r 3600
stock 14000

furniture 6000 5400

6000 x 10%
600

37000

Mr Nawaz
statement of affairs
as on 30-6-2022

assets amount

cash 1000
bank 13000
debtors 24000
b/r 8000
stock 34000

furniture and fixtures

less 10000x 10% =1000 9000
10000-1000

89000

Mr masood
statement of affairs
as on 30-12-2022

assets amount
cash 200
bank 6500
stock 18000

debtors 85000
less;provision 85000x10%
8500 76500
furniture 1500
plant 21000
less; dep
21000 x 15% 17850

120550
 statement of affairs
as on 30-12-2022

assets amount
cash 1000
bank 10000
stock 12000
debtors: 9200
less:bad debts 400
8800
less: provision 8800 8360
8800x 5% 440
furniture 3000 2700
less depriciation
300
motor car 12000
less 1200 10800
44860

mr nayyar
statement of affairs
for the year ending 30 december 202

assets amount
cash 16600
debtors 151000
less: reserve
151000x2/100 147980
stock 18400
furniture and fix 6000
less : dep 6000x5% =300 5700

land and building 40000

less: dep 40000x2% =800 39200

plant and machinery

110000 x 10% = 11000 99000

326880

mr x & y
statement of affairs
for the year ending 30 december 202

assets amount
cash 400
bank 5810
debtors 56280
b/r 6840
stock 36730
plant & machinery 80200
less : dep 8020 72180

furniture 5300

less: dep 318 4982

183222
affairs assets - liabilities
assets - liabilities

liability amount

creditors 1500
loan 10000
capital (closing) 25500 opening capital
closing capital 25500
fC 4000
drawings

37000

lia+capital amount

creditors 2500
rent 750

loan 25000
add; interest opening capital
25000x9/100x6/12 closing capital
25000+ 1125 26125 fC
drawings
closing capital 59625

89000

lia+ capital amount

creditors 20500

closing capital 100050

120550
lia+ capital amount
 creditors 12000

closing capital 32860

44860

0 december 2022

lliabilities amout
creditors 130000
loan 113200
 other liabilities 26800

c;osing capital 56880

326880

0 december 2022

lliabilities amout
creditors 21470
bill/p 5950

closing capital of 155802

both partners

183222
capital 40000
apital 25500
4000
3000

NWM
depriciation = less
interest on loan = add
provision =less
reserves = less
bad debts = less
capital
apital
 balance sheet
as on 30-12-2022
assets amount
cash 1000
bank 10000
stock 12000
debtors: 9200
less:bad debts 400
8800
less: provision 8800 8360
8800x 5% 440
furniture 3000 2700
less depriciation
300
motor car 12000
less 1200 10800
44860
lia+ capital amount
creditors 12000

opening capital balance sheet CR side

24000
add; profit 14860 1liabilies
38860
less; 6000 32860 2opening capital + profit - d
drawings

44860
et CR side

ital + profit - drawing

assets amount
cash 2800
debtors 21400
less bad debts 1000
20400
less reserve
20400x5% 1020 19380

b/r 28800
less reserve
1600 27200
stock 37400
motar van 4200
less 800 3400

furniture 3400
less depriciation
3400x10% = 340
3400-340 3160

93340
liability amount2
creditors 38400
bank overdraft 39200
opening capit

cosing capita

capital(closing) 15740

93340
opening capital = 23200

cosing capital =

mr ali
statement of profit and loss
for the year ending 31st july 2021

closing capital 15740

add : drawings 300x12 3600
19340
less: fresh capital 10000

adjested capital at end 9340

less :opening capital 23200

profit for the year 13860

15740
problem 2
premium
CONVERSION METHOD QUESTION 13 - 17

question 13

sales = ? ( debtors ledger)

purchases = ? (creditors ledger )
BARKAT
trading & profit and loss account
for the year ended 31st december ,2022

details RS details
purchases 23500sales (12000+46000)
opening stock 14000
wages 6000closing stock

gross profit 32500

76000
expenses 12000gross profit
dep of machinery 3400
dep of furniture 750
interest on capital 3600
provision 1400
 net profit cd 11350

32500

depriciation of machinery 34000 x 10% = 3400

depriciation of furniture 5000 x 15% = 750
interest on capital 72000 x 5% = 3600
provision on debtors 28000 x 5% = 1400

question 15
sales = ? 67500
purchases = ? 110500

ARSHAD
trading & profit and loss account
for the year ended 31st december ,2022

details RS details
purchases 67500sales
opening stock 45000
 wages (21000-10400) 10600closing stock

gross profit 24900

148000
sundry expenses 10000gross profit
dep of furniture 500

net profit cd 14400

24900
working =
wages 21000 - 10400 drawing = 10400 + 2500
200x 52 =
dep of furniture 5000 x 10% =500

question 16
sales =?
purchases =?

mr tipu
trading & profit and loss account
 for the year ended 31st december ,2022

details RS details
purchases 15000sales (80000+20000)
opening stock 25000
closing stock

gross profit cd 90000

130000
sundry expenses 50000gross profit bd
dep of premises 5000
dep of furniture 300
reserves for bad debts 625

net profit cd 34075

90000

working =

dep on premises 10 % = 5000

dep on furniture 15 % = 300
bad debts 2.5 % = 620
question 14

creditors account
 BARKAT
balance sheet
as on december 31 ,2022

RS assets RS
58000 cash in hand 22500
stock 18000
18000 debtors 28000
less 5% provision (1400) 26600

machinery 34000
76000 less 10% dep (3400) 30600
32500
furniture 5000
less 15% dep (750) 4250

101950
 32500

ARSHAD
balance sheet
as on december 31 ,2022

RS assets RS
110500 cash in bank 7000
stock 37500
37500 debtors 8000

furniture 5000
148000 less 10% dep 500 4500
24900
57000

24900

mr tipu
balance sheet
 as on december 31 ,2022

RS assets RS
100000 cash in hand 2000
bank 10000
30000 stock 30000
debtors 25000
less reserves (625) 24375

130000 furniture 2000

90000 less 15% dep (300) 1700

premises 50000
less 10% dep 5000 45000

113075
90000
 dr
cr

1 ,2022

liabilities+capital RS
creditors 20000
capital (op) 72000
less drawings
-5000
add net profit 11350
add int on capital 3600 81950

101950
1 ,2022

liabilities+capital RS
creditors 10000
capital (op) 45500
less drawings (12900)

add net profit 14000 47000

57000
1 ,2022

liabilities+capital RS
creditors 12000

capital (op) 70000

less drawings (3000)

add net profit 34075 101075

113075
debtors = sales = open + receive_ clos
creditors = purchases = open + payments-clo

Dr debtors ledger sales

refefence amount refeence amount

balance bd 22000
cash 40000

balance cd 28000
sales 46000
68000 68000

cr creditors ledger purchase

refefence amount refeence amount

balance bd 18500
cash 22000
balance cd 20000 purchase 23500
42000 42000

Dr debtors ledger sales

refefence amount refeence amount

balance bd 7500
cash 110000
 balance cd 8000
sales 110500
118000 118000

cr creditors ledger purchase

refefence amount refeence amount

balance bd 15000
cash(75000-2500) 72500

balance cd 10000 purchase 67500

82500 82500
Dr debtors ledger sales

refefence amount refeence amount

balance bd 20000
cash 15000

balance cd 25000
sales 20000
35000 35000

cr creditors ledger purchase

refefence amount refeence amount

balance bd 17000
cash 20000

balance cd 12000 purchase 15000

32000 32000
cash
debtors

creditors
cash
cash acc
 debtors acc

creditors acc
cash acc
cash acc
debtors acc

creditors acc
cash acc
PERFORMAS

trading and profit & loss account

details amount

prurchases xx
less returns

opening stock xx

direct expenses xx
wages
gross profit cd
20000
100000
indirect expenses xx

.. x
… x
adjustments x
.. x
.. x
.. x
net profit cd
 balance sheet

assets amount

all assets xx
.. xx
.. xx
.. xx
.. xx
xx

total xxx

adjustments
 adjustem

details amount

sales xx
less returns
gross profit
closing stock xx direct exp =

100000
gross profit bd 20000

indirect incomes xx
ce sheet

liabilities and capital amount

all liabilities xx
xx
opening capital xx
less drawings xx
add net profit xx
add interest xx xx

total xxx
 adjustments effects
adjustemnts have double effect

adjustments effect 1

depriciation expense

interest on loan liability

provisions on debts expense

reserves expense

outstanding liability

prepaid assets

accrued liability

interest on capital expense in t/pl

effect 2

less from assest

red for t/pl account
add in loan
blue for balance sheet
less from debtors

less from head

add in head

less from head

add in head

add in BS