Mr. John keeps his books according to single entry system. Following are the details of his business:
Particulars 01.04.2012
Amount (Rs.) 31.03.2013
Amount (Rs.)
Machinery 70,000 70,000
Furniture 10,000 20,000
Stock 36,000 42,000
Sundry debtors 72,200 88,400
Cash in hand 3,000 4,100
Cash at bank 42,000 52,300
Sundry creditors 54,500 60,400

Addition information:
(1) Mr. John had introduced Rs. 20,000 as additional capital on $1^{s t}$ October, 2012.
(2) Mr. John had withdrawn Rs. 15,000 for his personal use during the year.
(3) Additions to furniture were made on $1^{s t}$ October, 2012.
(4) Deprecate machinery at 10% p.a. and further at 20% p.a.
Prepare:
(1) Opening and closing Statement of Affairs.
(2) Statement of Profit or Loss for the year ending on $31^{s t}$ March, 2013.

Open in App

Solution

Opening Statement of Affairs

As on 1.4.2012

Liabilities

Amount

Assets

Amount

Capital (bal. fig.)

178700

Machinery

70000

Sundry Creditors

54500

Furniture

10000

Stock

36000

Sundry Debtors

72200

Cash in hand

3000

Cash at bank

42000

233200

233200

Closing Statement of Affairs

As on 31.3.2013

Liabilities

Amount

Assets

Amount

Capital (bal.fig.)

216400

Machinery

70000

Sundry creditors

60400

Furniture

20000

Stock

42000

Sundry Debtors

88400

Cash in hand

4100

Cash at bank

52300

276800

276800

Statement of Profit and Loss

For the year ending 31.03.2013

Particulars

Amount

Closing capital

216400

Less: Additional Capital

(20000)

Add: Drawings

15000

Adjusted closing capital

211400

Less: Opening capital

(178700)

Profit before adjustment

32700

Less: depreciation on machinery

(7000)

Depreciation on furniture (2000 + 1000)

(3000)

Profit after adjustment

22700

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Similar questions

Q. Mrs. Meena of Bilaspur has not kept proper books of accounts, following information is provided to you:

Particulars	31.03.2012 Amount (Rs.)	31.03.2013 Amount (Rs.)
Machinery	50,000	50,000
Furniture	50,000	30,000
Debtors	18,000	25,000
Creditors	18,000	20,000
Stock	30,000	42,000
Outstanding Expenses	1,500	42,000
Pre-paid expenses	-	-
Cash at bank	28,000	40,000

Further information:
(1) Mrs. Meena introduced additional capital as on

1^{s t}

October, 2012 by selling her personal car is Rs. 10,000
(2) She paid her daughter's college fees from business bank account Rs. 3,000.
(3) Depreciate 2% on debtors for Bad and Doubtful debts.
(3) Interest on capital is to be provided @ 5% p.a. and on drawings @5% p.a.
Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended

31^{s t}

March, 2013.

PRACTICAL PROBLEMS

Mr. Suhas a small trader provides you the following details about his business.

Particulars	01-04-2011	31-03-2012
Debtors	45,000	50,000
Creditors	60,000	70,000
Computer	60,000	1,20,000
10% Govt. Bonds	——	10,000
Bank Overdraft	80,000	40,000
Motor Van	80,000	80,000
Furniture	10,000	10,000
Stock	65,000	80,000
Cash in Hand	2,000	8,000
Bills Receivable	60,000	80,000

Additional Information:

1) On 1^st October, 2012 he withdrew Rs 40,000 for his personal use.

2) Charge interest on drawings Rs 2,000.

3) He had also withdrawn Rs 30,000 for Rent of his residential flat.

4) Depreciate furniture by 10% and write off Rs 2,000 from motor van.

5) 10% Government Bonds were purchased on 1^st October, 2012.

6) Allow interest on capital at 10% p.a.

7) Rs 2,000 is written off as bad debts and provide 5% R.D.D. on Debtors.

Prepare: Opening statement of affairs, closing statement of affairs and statement of profit or loss for the year ended 31^st March, 2012.

Q. PRACTICAL PROBLEMS

Mahendra Keeps his books by Single Entry System. His position on 1^st April 2012, was as follows : Cash in Hand Rs 7,900, Cash at Bank Rs 20,000, Debtors Rs 18,000. Stock Rs 29,000, Motor Car Rs 5,000, Bank Loan Rs 18,000 and Outstanding Expenses Rs 2,700.
On 1^st October, 2012 Mahendra introduced Rs 10,000 as further capital in the business and withdrew on the same date Rs 7,000 out of which he spent Rs 5,000 on the purchase of a Machinery for the business.
On 31^st March 2013 his position was as follows: Cash in Hand Rs 7,600, Cash at Bank Rs 22,000, Stock Rs 30,000 Debtors Rs 25,700, Furniture Rs 6,000, Creditors Rs 25,200, and prepaid expenses Rs 200.
Prepare a Statement showing the Profit or Loss made by him during the year ended 31^st March, 2013 and Opening and Closing Statement of affairs. Considered the following adjustments also.
1) Depreciate Motor Car and Furniture @ 10% p.a. Furniture was purchased on 1^st Oct., 2012.
2) Provide Rs 1,200 for Bad debts and provide 5% R.D.D.
3) Goods taken for personal use by Mahendra amounting to Rs 1,500
4) Provide interest on capital @ 10% p.a.

PRACTICAL PROBLEMS

Mr. Govind keeps his books on single entry system and disclosed the following information of his business.

Particulars	01-04-2010	31-03-2011
Investments	—–	30,000
Bills Payable	—–	18,000
Creditors	52,500	69,000
Furniture	15,000	15,000
Debtors	60,000	90,000
Stock in Trade	30,000	37,500
Cash at Bank	36,000	54,000

Additional Information

1) Mr. Govind transferred Rs 300 per month during first half year and Rs 200 each month for the remaining period from his business to his personal account. He also took goods of Rs 700 for private use.

2) Mr. Govind sold his personal asset for Rs 7,000 and brought the proceeds into his business.

3) Furniture to be depreciated by 10%

4) Provide R.D.D.5% on Debtors.

Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended 31^st March 2011.

Raja started a business on 1st April 2015 with a capital of Rs. 1,00,000 and a loan of Rs. 50,000 borrowed from Ram. During 2015-16, he had introduced additional capital of Rs. 50,000 and had withdrawn Rs. 30,000 for personal use. On 31st March 2016, his assets were Rs. 3,00,000. Find out his capital as of 31st March 2016 and profit made or loss incurred during the year 2015-16.

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Particulars	01.04.2012 Amount (Rs.)	31.03.2013 Amount (Rs.)
Machinery	70,000	70,000
Furniture	10,000	20,000
Stock	36,000	42,000
Sundry debtors	72,200	88,400
Cash in hand	3,000	4,100
Cash at bank	42,000	52,300
Sundry creditors	54,500	60,400

Liabilities	Amount	Assets	Amount
Capital (bal. fig.)	178700	Machinery	70000
Sundry Creditors	54500	Furniture	10000
		Stock	36000
		Sundry Debtors	72200
		Cash in hand	3000
		Cash at bank	42000

	233200		233200

Particulars	Amount
Closing capital	216400
Less: Additional Capital	(20000)
Add: Drawings	15000
Adjusted closing capital	211400
Less: Opening capital	(178700)
Profit before adjustment	32700
Less: depreciation on machinery	(7000)
Depreciation on furniture (2000 + 1000)	(3000)
Profit after adjustment	22700