Practice - Steps to Prepare Statement of Affairs
Practice Questions
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What is the Statement of Affairs?
💡 Hint: Think of it as a snapshot of financial health.
Why is it important to prepare Statements at the start and end of the period?
💡 Hint: Consider it like tracking your bank balance.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does a Statement of Affairs summarize?
💡 Hint: Consider what financial summary captures a business's worth.
True or False: The Statement of Affairs only needs to be prepared at the end of the accounting period.
💡 Hint: Remember the need for tracking changes.
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Challenge Problems
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A business starts with a capital of ₹100,000 and ends with ₹90,000. During this period, it has made withdrawals of ₹15,000 but also received investments of ₹5,000. What is the net profit or loss?
💡 Hint: Take into account both the withdrawals and investments while calculating.
An individual needs to calculate their business's net profit over a year. They start with ₹40,000, end with ₹50,000, and make no additional investments or withdrawals. What is their net profit?
💡 Hint: What simple subtraction can give you the answer?
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