Single entry question with answer


Q5. Mr. Suryakant maintains books on Single Entry and who given you the following Information:
Particulars
31/3/2006
31/3/2007
Cash in Hand
500
2,000
Cash at Bank
2,500
5,000
Stock
20,000
30,000
Sundry Debtors
25,000
40,000
Investment s
20,000
20,000
Furniture
10,000
25,000
Machinery
25,000
40,000
Sundry Creditors
10,000
10,000
Outstanding Expenses
3,000
2,000
          Additional Information:-
(1)          Mr. Suryakant introduced further capital of Rs.20,000 on 1st July,2006 and
had withdrawn Rs. 10,000 during the year.
(2)          Interest on capital is allowed at 10% p.a.
(3)          Additions to furniture and machinery were made on 1stOctober,2006.
(4)          Write off depreciation on furniture and machinery at 10% p.a.
(5)          Create reserve for doubtful debts at 5% on Sundry  debtors.
Prepare :- (a) Statement of Affairs and (b) Statement of Profit and Loss for the year ended 31st March, 2007.                                                                 (10)
In the books of Suryakant
Opening Statement of Affairs as on 1-4-2006
Liabilities
Rs.
Assets
Rs.
Capital
90,000
Cash in hand
Cash at Bank
Stock
500
2,500
20,000
Sundry Creditors
10,000
Sundry Debtors
25,000
Outstanding Expenses
3,000
Investments
20,000


Furniture
10,000


Machinery
25,000

1,03,000

1,03,000
Closing Statement of Affairs as on 31-3-2007
Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Capital

143000
Cash in hand
Cash at Bank
Stock



2,000
5,000
30,000



Sundry Debtors
40,000




(-) New R.D.D.
2,000
38,000
Sundry Creditors

10,000
Investments

20,000
Outstanding Expenses

2,000
Furniture
25,000




(-) Depreciation
1,750
23,250



Machinery
40,000




(-) Depreciation
3,250
36,750


1,55,000


1,55,000
Statement of Profit & Loss for the year ended 31-3-2007
Particulars
Rs.
Rs.
Closing Capital balance
Add:  Drawings

1,43,000
10,000

Less: (1) Further capital introduced
         (2) Interest on capital

20,000
10,500
1,53,000

30,500

Less: Opening Capital Balance

1,22,500
90,000
Net Profit

32,500
Working Note:  To find out depreciation on machinery
40,000
                                           Old                        New
                        (12 months) 25,000                             15,000   (6 months)
                        10% Depreciation  = 2,500 + 750   =  3,250