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Question

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 1st 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3) He had also withdrawn Rs 30,000 for Rent of his residential flat.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 1st 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 31st March, 2012.

Open in App
Solution

Statement of Affairs
as on March Apr.01,2011
Liabilities
Amount
(Rs)
Assets
Amount
(Rs)
Creditors
60,000
Cash in Hand
2,000
Bank Overdraft
80,000
Debtors
45,000
Capital (Balancing Figure)
1,82,000
Computer
60,000
Motor Van
80,000
Furniture
10,000
Stock
65,000
Bills Receivable
60,000
3,22,000
3,22,000

Statement of Affairs
as on March 31,2012
Liabilities
Amount
(Rs)
Assets
Amount
(Rs)
Creditors
70,000
Cash in Hand
8,000
Bank Overdraft
40,000
Debtors
50,000
Capital (Balancing Figure)
3,28,000
Computer
1,20,000
Motor Van
80,000
Furniture
10,000
Stock
80,000
Bills Receivables
80,000
10% Government Bond
10,000
4,38,000
4,38,000

Statement of Profit or Loss

for the year ended March 31,2012

Particulars

Amount

(Rs)

Capital at the end of the year

3,28,000

Add: Drawings made during the year

70,000

Adjusted capital at the end of the year

3,98,000

Less: Capital in the beginning of the year

(1,82,000)

2,16,000

Add: Interest on Drawings

2,000

Interest on 10% Government Bonds

500

Less: Depreciation (Rs 1,000 on Furniture and Rs 2,000 on Motor Van)

(3,000)

Interest on Capital

(18,200)

Bad-Debts

(2,000)

(2,400)

Profit for the year

1,92,900

Working Notes:


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