Solution 1 Profit and Loss Statement

Dr
Particulars Amount
To Inventory 3300
To Purchases 2900
To Profit 5620
11820

To Rent 1800
To Salary 1600

Depreciation of Sewing Machine 60

Depreciation of computers and S/w 250
Office Supplies 80
To Advt 150
Interest on capital 200
Actual Profit 1480

Yes company is profitable as profit is 1480

Cash in hand on 1 Apr 4000

From customers 7400
Sewing -1800
Salary -1510
Rent -1800
Replenishment -2900

Cash in hand on 30 June 3390

2100
Profit and Loss Statement
Cr
Particulars Amount
Inv in Hand 4100
From Customers 7720

11820

Cash reduced due to purchase of Sewing Machine and Replenishment of inventory

Balance Sheet as on 30 June

Liabilities Amount Assets

Loan 10000 Cash in Hand 3390
Outstanding Wages 90 Pending payment 320
Outstanding Interest 200 Closing stock 4100
Carmen's Capital 1000 Supplies 20
Net Profit 1480 Prepaid Rent 1200
Computer-Dep 1750
Sewing Machine-Dep 1740
Deposit of cash register 250
Total 12770 12770
Yes, Carmen's first three months were successful as she was able to garner profit of 1480. But she must now think
herself and interest on equity is also pending.
 of 1480. But she must now think towards paying
ending.