Mr. Mehta started his readymade garments business on April 1, 2016 with a capital of Rs 50,000. He did not maintain his books according to double entry system. During the year he introduced fresh capital of ` 15,000. He withdrew Rs 10,000 for personal use. On March 31, 2017, his assets and liabilities were as follows : Total creditors Rs 90,000 , Total debtors Rs 1,25,600 , Stock Rs 24,750 , Cash at bank Rs 24,980. Calculate profit or loss made by Mr. Mehta during the first year of his business using the statement of affairs method.

Explanation