by Here’s a practical example/problem on Conversion of Single Entry into Double Entry presented in a tabular format, illustrating how to calculate profit using the Statement of Affairs Method:
✅ Example Problem (Using Statement of Affairs Method)
| Particulars | Amount (₹) |
|---|---|
| Opening Capital (as on 01-04-2024) | 80,000 |
| Closing Capital (as on 31-03-2025) | 1,20,000 |
| Additional Capital Introduced | 10,000 |
| Drawings during the year | 15,000 |
| Profit or Loss = ? | ? |
✅ Solution (Calculation of Profit)
| Step | Amount (₹) |
|---|---|
| Closing Capital | 1,20,000 |
| (-) Opening Capital | (80,000) |
| ——————————————– | ————– |
| Increase in Capital | 40,000 |
| (+) Drawings | 15,000 |
| (-) Additional Capital Introduced | (10,000) |
| ——————————————– | ————– |
| Profit for the Year | 45,000 |
📌 Conclusion:
The profit for the year ended 31st March 2025 is ₹45,000, calculated using the Statement of Affairs method by reconstructing capital movement under the double-entry framework.
