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.

Open in App

Solution

Statement of Affairs

as on April 01,2011

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Bills Payable

5,000

Bank Balance

18,000

Creditors

26,500

Furniture

9,000

Capital (Balancing Figure)

45,500

Debtors

35,000

Stock

15,000

77,000

77,000

Statement of Affairs

as on March 31,2012

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Bills Payable

8,000

Bank Balance

28,000

Creditors

31,500

Furniture

19,000

Bank Overdraft

10,000

Debtors

50,000

Capital (Balancing Figure)

78,500

Stock

19,000

Investments

12,000

1,28,000

1,28,000

Statement of Profit or Loss

for the year ended March 31,2012

Particulars

Amount

(Rs)

Capital at the end of the year

78,500

Add: Drawings made during the year

4,000

Less: Additional capital introduced during the year

(15,000)

Adjusted capital at the end of the year

67,500

Less: Capital in the beginning of the year

(45,500)

22,000

Less: Depreciation on Furniture

(1,400)

Bad-Debts

(1,000)

Reserve for Doubtful Debts

(2,450)

Profit for the year

17,150

Working Notes:

WN1: Calculation of Depreciation on Furniture:

WN2: Calculation of Reserve for Doubtful Debts:

Suggest Corrections

Similar questions

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.

PRACTICAL PROBLEMS

Mr. Mangesh is dealing in business. He maintains his accounting with Single Entry. The following are details of his business.

Particulars	01-04-2012	31-03-2013
Land and Building	40,000	50,000
Machinery	30,000	40,000
Furniture	10,000	10,000
Debtors	20,000	40,000
Stock	10,000	25,000
Cash Balance	5,000	15,000
Bills Receivable	5,000	5,000
Creditors	25,000	25,000
Bank Overdraft	5,000	——
Bank Balance	——	10,000

Mr. Mangesh introduced Rs 10,000 as additional Capital. He spent Rs 45,000 for personal use Depreciate Land and Building by Rs 5,000. Provide 5% R.D.D. on Debtors.

Prepare: Opening Statement of affairs, Closing Statement of affairs and the statement of profit or loss.

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.

The Trial Balance of Miss Sneha Chug was as under prepare Trading and Profit & Loss A/c for the year ended 31st March, 2010 and the Balance Sheet as on that date.

Trial Balance as on 31st March, 2010
Particulars	Amount Rs	Particulars	Amount Rs
Opening stock Wages Purchases Investments Postage Printing and Stationery Carriage outward Insurance Debtors Furniture Bad debts Carriage inward Cash in hand Machinery (Purchased) On 1-7-2009 Salaries (for 10 months) Sundry expenses Bills Receivable	30,000 9,500 52,500 10,000 1,500 2,000 1,000 3,500 35,000 5,500 1,200 1,800 5,400 32,000 15,000 2,100 8,500	Capital Bills payable 10% Bank Loan (taken on 1-10-2009) Bank Overdraft Creditors Sales R.D.D.	93,500 7,500 10,000 6,500 25,000 71,000 3,000
Total	2,16,500	Total	2,16,500

Adjustment

1) Closing stock was valued at Rs 61,500.

2) Depreciate Furniture and Machinery at 10% p.a.

3) Debtors of Rs 1,000 were bad and provide R.D.D. at 5% on debtors.

4) Wages includes Rs 8,000 paid for fixation of Machinery.

5) Stock of stationery of Rs 300 remain unused.

PRACTICAL PROBLEMS

Asha and Usha were partners sharing profits and losses in the ratio of 2:1. Prepare their statement Profit or Loss for the year ended 31^st March, 2012 from the following statement of Affairs as on 31^st March, 2011.

Liabilities	Amount Rs	Assets	Amount Rs
Creditors	33,000	Cash at Bank	6,000
Bills Payable	9,000	Cash in Hand	2,000
Capitals:	62,000	Building	41,000
Asha	32,000	Machinery	21,000
Usha		Furniture	10,000
		Stock	18,000
		Debtors	25,000
		Bills Receivable	13,000
	1,36,000		1,36,000

The assets and liabilities as on 31^st March 2012 were:

Sundry creditors Rs 35,000 Bill Receivable Rs 18,000 Bills payable Rs 15,000 cash in hand Rs 3,000, Stock Rs 32,000 Cash of bank Rs 6,000 Debtors Rs 38,000. There were no changes in fixed assets.

Further Information:

1) Asha and Usha had drawn Rs 10,000 and Rs 8,000 respectively for personal use.

2) They also brought additional capital of Rs 6,000 and Rs 4,000 respectively.

3) Building to be depreciated by 5% and machinery and furniture at 10%.

4) Charge interest at 10% p.a. on opening capitals and allow interest on drawings of Asha and Usha were Rs 700 and Rs 500 respectively.

Join BYJU'S Learning Program

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

Statement of Affairs as on April 01,2011
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Bills Payable	5,000	Bank Balance	18,000
Creditors	26,500	Furniture	9,000
Capital (Balancing Figure)	45,500	Debtors	35,000
		Stock	15,000
	77,000		77,000

Statement of Affairs as on March 31,2012
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Bills Payable	8,000	Bank Balance	28,000
Creditors	31,500	Furniture	19,000
Bank Overdraft	10,000	Debtors	50,000
Capital (Balancing Figure)	78,500	Stock	19,000
		Investments	12,000
	1,28,000		1,28,000

Statement of Profit or Loss for the year ended March 31,2012
Particulars	Amount (Rs)
Capital at the end of the year	78,500
Add: Drawings made during the year	4,000
Less: Additional capital introduced during the year	(15,000)
Adjusted capital at the end of the year	67,500
Less: Capital in the beginning of the year	(45,500)
	22,000
Less: Depreciation on Furniture	(1,400)
Bad-Debts	(1,000)
Reserve for Doubtful Debts	(2,450)
Profit for the year	17,150