Mr. Murali keeps his books under single entry. He supplies you with the following information from which you are to find out his profit or loss for the year ended 31.3.2007.
He had withdrawn Rs. 3,000 during the year for a private purpose and had introduced fresh capital Rs. 6,000 on 1.10.2006. Bad and doubtful debts provision at 5% is to be made on debtors. Depreciation on plant and machinery at 10% and furniture at 15 % is to be made. Allow 6% interest on capital.
