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.

Open in App

Solution

Opening Statement of Affairs

As on 1.4.2012

Liabilities

Amount

Assets

Amount

Capital (bal.fig.)

156500

Machinery

50000

Sundry creditors

18000

Furniture

50000

Outstanding expenses

1500

Stock

30000

Sundry Debtors

18000

Cash at bank

28000

176000

176000

Closing Statement of Affairs

As on 31.3.2013

Liabilities

Amount

Assets

Amount

Capital (bal.fig.)

125000

Machinery

50000

Sundry creditors

20000

Furniture

30000

Outstanding expenses

42000

Stock

42000

Sundry Debtors

25000

Cash at bank

40000

187000

187000

Statement of Profit and Loss

For the year ending 31.03.2013

Particulars

Amount

Closing capital

125000

Less: Additional Capital

10000

Add: Drawings

3000

Adjusted closing capital

118000

Less: Opening capital

156500

Loss before adjustment

(38500)

Add: interest on drawings

150

Less: provision for debtors

500

Less: interest on capital

6250

Loss after adjustment

(45100)

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Similar questions

Q. 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 John had withdrawn Rs. 15,000 for his personal use during the year.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.

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

Miss Kavita Commenced her business with a Capital of Rs 1,30,000 on 1^st April 2010. Her financial Position was as follows as on 31^st March, 2011, Cash Rs 9,120, Stock Rs 10,250, Bills Payable Rs 12,880, Creditors Rs 17,180, Debtors Rs 31,550, Bill Receivable Rs 29,120, Premises Rs 85,750, Vehicles Rs 40,250.

Additional Information:

1) She brought additional capital Rs 20,000 on 30^th September 2010. Interest on capital is to be provided at 5% p.a.

2) She withdrew Rs 10,000 for personal use on which interest is to be charged at 6% p.a.

3) R.D.D. is to be provided at 2½% p.a. after providing bad debts Rs 1,000.

4) Depreciate Vehicles at 2% and Premises at 4%.

PRACTICAL PROBLEMS

Mrs. Ankita keeps her books under Single Entry System and gives the following information.

Particulars	01-04-2011	31-03-2012
Investments	——	12,000
Bank Overdraft	——	10,000
Bills Payable	5,000	8,000
Creditors	26,500	31,500
Furniture	9,000	19,000
Debtors	35,000	50,000
Stock in Trade	15,000	19,000
Bank Balance	18,000	28,000

Mrs. Ankita withdrew Rs 4,000 for her personal use. She received Rs 15,000 from her father as gift, which she brought into the business.

Additional furniture was purchased on 1^st October 2011. Depreciate furniture by 10% p.a.

Write off Rs 1,000 as bad and provide 5% R.D.D. on debtors.

Find the profit or loss of her business for the year ended 31^st March, 2012.

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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

Liabilities	Amount	Assets	Amount
Capital (bal.fig.)	156500	Machinery	50000
Sundry creditors	18000	Furniture	50000
Outstanding expenses	1500	Stock	30000
		Sundry Debtors	18000
		Cash at bank	28000

	176000		176000

Particulars	Amount
Closing capital	125000
Less: Additional Capital	10000
Add: Drawings	3000
Adjusted closing capital	118000
Less: Opening capital	156500
Loss before adjustment	(38500)
Add: interest on drawings	150
Less: provision for debtors	500
Less: interest on capital	6250
Loss after adjustment	(45100)