ILLUSTRATION 10.2 Profit and Loss Account of William for the year ended 31st March, 2015...
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ILLUSTRATION 10.2 Profit and Loss Account of William for the year ended 31st March, 2015 showed a net profit of $2,500 after taking into account the closing stock of $4,720. On a scrutiny of the books the following information could be obtained : (i) Purchases of the year included $500 spent on acquisition of a ceiling fan for his shop. (ii) William has taken goods valued at $1,800 for his personal use without making entry in the books. (iii) Invoices for goods amounting to $4,000 have been entered on 29th March, 2015 but such goods were not included in stock. (iv) Sale of goods amounting to $700 sold and delivered in March, 2015 had been entered in April, 2015 sales. (v) $500 had been included in closing stock in respect of goods purchased and invoiced on 28th March, 2015 but included for April 2015. You are required to ascertain the correct amount of closing stock as on 31st March, 2015 and the adjusted Net Profit for the year ended on that date
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