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had withdrawn Rs. 10,000 during the year.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