Hari maintains his books of account on Single Entry System. His books provide the following information:

1st April, 2018
(₹)
31st March, 2019
(₹)

Furniture
2,000

2,000

Stock
28,000

30,500

Sundry Debtors
21,000

34,000

Cash
1,500

2,000

Sundry Creditors
17,500

19,000

Bills Receivable
...

3,000

Loan ... 5,000

Investments
...

10,000

His drawings during the year were ₹ 5,000 Depreciate furniture by 10% and provide a reserve for Bad and Doubtful Debts at 10% on Sundry Debtors.
Prepare the statement showing the profits for the year.

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Solution

Statements of Affairs

as on April 01, 2018

Liabilities

Amount

(₹)

Assets

Amount

(₹)

Sundry Creditors

17,500

Furniture

2,000

Capital (Balancing Figure)

35,000

Stock

28,000

Sundry Debtors

21,000

Cash

1,500

52,500

52,500

Statement of Affairs

as on March 31, 2019

Liabilities

Amount

(₹)

Assets

Amount

(₹)

Sundry Creditors

19,000

Furniture

2,000

Loan

5,000

Less: 10% Depreciation

(200)

1,800

Capital (Balancing Figure)

53,900

Stock

30,500

Sundry Debtors

34,000

Less: 10% Reserve for Doubtful Debts

(3,400)

30,600

Cash

2,000

Bills Receivables

3,000

Investments

10,000

77,900

77,900

Statement of Profit or Loss

for the year ended March 31, 2019

Particulars

Amount

(₹)

Capital as on March 31, 2019

53,900

Add: Drawings

5,000

58,900

Less: Capital as on April 01, 2018

(35,000)

Profit made during the year 2018-19

23,900

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Q. Hari maintains her books of account on Single Entry System. His books provide the following information:

Particulars		1st April, 2017 (₹)	31st March, 2018 (₹)
Furniture	.............................................................	2,000	2,000
Stock	.............................................................	28,000	30,500
Sundry Debtors	.............................................................	21,000	34,000
Cash	.............................................................	1,500	2,000
Sundry Creditors	.............................................................	17,500	19,000
Bills Receivable	.............................................................	...	3,000
Loan	.............................................................	...	5,000
Investments	.............................................................	...	10,000

His drawings during the year were ₹ 5,000 Depreciate furniture by 10% and provide a reserve for Bad and Doubtful Debts at 10% on Sundry Debtors.
Prepare the statement showing the profits for the year.

Hari maintains his books of account on single entry system. His books provide the following information.

$\begin{matrix} Liabilities & Jan.1.2012 & Dec.31.2012 (R s) & (R s) Furniture & 200 & 200 Stock & 2, 800 & 3, 050 Sundry Debtors & 2, 100 & 3, 400 Cash & 150 & 200 Sundry Creditors & 1, 750 & 1, 900 Bills Receivable & - & 300 Loan & - & 500 Investments & - & 1, 000 \end{matrix}$

His drawing during the year was 500. Depreciate furniture by 10% and provide a reserve for bad debts at 10% on sudry debtors. calculate profit.

Q. From the following information relating to the business of Abhay who keeps books on Single Entry System, ascertain the profit or loss for the year 2018–19:

	1st April, 2018 (₹)	31st March, 2019 (₹)
Machinery	8,000	8,000
Furniture	2,000	2,000
Stock	7,000	5,000
Sundry Debtors	4,000	4,500
Bank Balance	200 (Cr.)	1,800 (Dr.)
Sundry Creditors	5,000	3,500

Abhay withdrew ₹ 4,100 during the year to meet his household expenses. He introduced ₹ 300 as fresh capital on 15th January, 2019. Machinery and Furniture are to be depreciated at 10% and 5% p.a. respectively.

Q. Sonam keeps his books on single entry and provides you with the following information:

	31-12-2017	31-12-2018
	₹	₹
Furniture and Fitting	50,000	60,000
Stock	30,000	10,000
Sundry Debtors	60,000	70,000
Sundry Creditors	20,000	NIL
Prepaid Expenses	NIL	2,000
Outstanding Expenses	6,000	10,000
Cash in hand	11,000	3,000
Receipts and Payments in 2018:
Receipts from Debtors		2,10,000
Paid to Creditors		1,00,000
Cartage		20,000
Drawings		1,20,000
Sundry Expenses		1,60,000
Furniture Purchased for Cash		10,000

Prepare Trading and Profit & Loss Account for the year ended 31 December, 2018 after providing for bad debts at 10%.
There was a considerable amount of Cash Sales.

Q. Following balances are taken from the books of Mr. Niranjan. You are required to prepare Trading and Profit and Loss Account and Balance Sheet for the year ended 31st March, 2018:

Particulars	₹	Particulars	₹
Capital	1,20,000	Drawings	21,000
Opening Stock	45,000	Plant and Machinery	24,000
Furniture	1,500	Purchases	2,95,000
Sales	4,35,000	Insurances	1,500
Purchases Return	4,000	Sales Return	7,000
Rent	5,000	Trade Expenses	2,000
Salaries	24,000	Wages	40,000
Bad Debts	1,000	6% Investments	50,000
Sundry Debtors	40,000	Sundry Creditors	19,000
Bills Payable	800	Cash	12,200
Advertisement Expenses	6,000	Miscellaneous Receipts	1,200
Patents	4,800

Adjustments:
(i) Closing Stock ₹ 75,000.
(ii) Depreciate Machinery by 10% and Furniture by 20%.
(iii) Wages ₹ 5,000 and salaries ₹ 2,000 are outstanding.
(iv) Write off ₹ 5,000 as further Bad Debts and create 5% Provision for Doubtful Debts.
(v) Investments were made on 1st July, 2017 and no interest has been received so far.

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Statements of Affairs as on April 01, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	17,500	Furniture	2,000
Capital (Balancing Figure)	35,000	Stock	28,000
		Sundry Debtors	21,000
		Cash	1,500

	52,500		52,500

Statement of Affairs as on March 31, 2019
Liabilities	Amount (₹)	Assets		Amount (₹)
Sundry Creditors	19,000	Furniture	2,000
Loan	5,000	Less: 10% Depreciation	(200)	1,800
Capital (Balancing Figure)	53,900	Stock		30,500
		Sundry Debtors	34,000
		Less: 10% Reserve for Doubtful Debts	(3,400)	30,600
		Cash		2,000
		Bills Receivables		3,000
		Investments		10,000

	77,900			77,900

Statement of Profit or Loss for the year ended March 31, 2019
Particulars	Amount (₹)
Capital as on March 31, 2019	53,900
Add: Drawings	5,000
	58,900
Less: Capital as on April 01, 2018	(35,000)
Profit made during the year 2018-19	23,900