Mrs Bhavana keeps his books by Single Entry System. You.re required to prepare final accounts of her business for the year ended March 31, 2017. Her records relating to cash receipts and cash payments for the above period showed the following particulars :
Summary of Cash |
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Dr. |
|
|
Cr. |
Receipts |
Amount Rs |
Payments |
Amount Rs |
Opening balance of cash |
12,000 |
Paid to creditors |
53,000 |
Further capital |
20,000 |
Business expenses |
12,000 |
Received from debtors |
1,20,000 |
Wage paid |
30,000 |
|
|
Bhavana’s drawings |
15,000 |
|
|
Balance at bank on |
35,000 |
|
|
March. 31,2017 |
|
|
|
Cash in hand |
7,000 |
|
1,52,000 |
|
1,52,000 |
|
|
|
|
The following information is also available:
|
April. 01, 2016 |
March. 31, 2017 |
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|
|
Rs |
|
Rs |
Debtors |
|
55,000 |
|
85,000 |
Creditors |
|
22,000 |
|
29,000 |
Stock |
|
35,000 |
|
70,000 |
Plant |
|
10,00,000 |
|
1,00,000 |
Machinery |
|
50,000 |
|
50,000 |
Land and Building |
|
2,50,000 |
|
2,50,000 |
Investment |
|
20,000 |
|
20,000 |
All her sales and purchases were on credit. Provide depreciation on plant and building by 10% and machinery by 5%, make a provision for bad debts by 5%.
Books of Mrs. Bhavana Debtors Account |
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Dr. |
Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Balance b/d |
55,000 |
Cash |
1,20,000 |
|
Sales—Credit |
1,50,000 |
Balance c/d |
85,000 |
|
|
|
|
|
|
|
2,05,000 |
|
2,05,000 |
|
|
|
|
|
|
Creditors Account |
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Dr. |
Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Cash |
53,000 |
Balance b/d |
22,000 |
|
|
Purchases—Credit |
60,000 |
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Balance c/d |
29,000 |
|
|
|
|
|
|
|
|
|
82,000 |
|
82,000 |
|
|
|
|
|
|
Statement of Affairs as on April.01, 2016 |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
Creditors |
22,000 |
Debtors |
55,000 |
Capital—Opening |
5,00,000 |
Stock |
35,000 |
(Balancing figure) |
|
Plant |
1,00,000 |
|
|
Machinery |
50,000 |
|
|
Land and Building |
2,50,000 |
|
|
Investment |
20,000 |
|
|
Cash |
12,000 |
|
|
|
|
|
5,22,000 |
|
5,22,000 |
|
|
|
|
Note: It has been assumed that total sales are credit sales (i.e. all sales are made on credit) and total purchases are credit purchases (i.e. all purchases are made on credit).
Plant of Rs 1,00,000 has been taken in to the statement of affairs on April 01, 2016, instead of Rs 10,00,000.
Trading Account as on March 31, 2017 |
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Dr. |
Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Opening Stock |
35,000 |
Sales |
1,50,000 |
|
Purchases |
60,000 |
Closing Stock |
70,000 |
|
Wages |
30,000 |
|
|
|
Profit and Loss (Gross Profit) |
95,000 |
|
|
|
(Balancing figure) |
|
|
|
|
|
|
|
|
|
|
2,20,000 |
|
2,20,000 |
|
|
|
|
|
|
Profit and Loss Account |
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Dr. |
Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Business Expenses |
12,000 |
Trading (Gross profit) |
95,000 |
|
Depreciation on Plant |
10,000 |
|
|
|
Depreciation on Building |
25,000 |
|
|
|
Depreciation Machines |
2,500 |
|
|
|
Provision for Doubtful Debt |
4,250 |
|
|
|
Net Profit |
41,250 |
|
|
|
(Balancing figure) |
|
|
|
|
|
|
|
|
|
|
95,000 |
|
95,000 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2017 |
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Liabilities |
Amount Rs |
Assets |
Amount Rs |
||||||
Creditors |
|
29,000 |
Debtors |
85,000 |
|
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Capital—Opening |
5,00,000 |
|
Less: 5% Provision for Bad-debt |
(4,250) |
80,750 |
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Add: Net Profit |
41,250 |
|
Stock |
70,000 |
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|
Add: Further Capital |
20,000 |
|
Plant |
1,00,000 |
|
|||
|
5,61,250 |
|
Less: 10% Depreciation |
(10,000) |
90,000 |
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|
Less: Drawings |
(15,000) |
5,46,250 |
|
|
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|
|
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Machinery |
50,000 |
|
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|
|
|
Less: 10% Depreciation |
(2,500) |
47,500 |
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|
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|
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Land and Building |
2,50,000 |
|
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|
|
|
Less: 10% Depreciation |
(25,000) |
2,25,000 |
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Investment |
20,000 |
|||||
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|
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Cash in Hand |
7,000 |
|||||
|
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Cash at Bank |
35,000 |
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|
|
|
|
|
|||||
|
|
5,75,250 |
|
5,75,250 |
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