Ques. $12$ Mr$.$ X Started a business with Rs$.1,00,000$ as on $1-1-98.$ He took a loan of Rs$.50,000$ from union Bank $a$

India @ $18\%$ p$.$a$.$ He purchase$/$invested for the following assets;

He did not maintain any books of accounts. But he maintained accounts for his debtors and creditors.

Debtors on $31-12-98$ were Rs$\mathrm{.}1,40,000$ and creditors Rs$\mathrm{.}70,000.$ He repaid first installment of loan

Rs$.10,000$ with interest.

During the year, he withdraw @ Rs$\mathrm{.}1,000$ p$.$m$.$ It appeared that stock $-$ in $-$ hand was Rs$\mathrm{.}30,000.$ His other

liabilities were:

On scrutiny it was found, he sent goods worth Rs$.70,000$ on Consignment basis to Mr$.$ Chik. Mr$.$ chik sold

$50\%$ of Consignment at $120\%$ of cost$.$ Mr$.$ X met all related cost. Mr$.$ Chik. paid $60\%$ of the sale proceed.

He is entitled to $20\%$ commission on sales. Furniture should be depreciated by $10\%$ p$.$a$.$ Cash at the end

Rs$.56,100.$ Deposits with Telephone & Electric Should authorities have been adjusted against current

year's bill.

Find out the Profit earned by $x$ during $1998.$

$[$Ans$.$ Profit $=$ Rs$.85,500]$