### Single entry Question with answers

Q.5.   Radheshyam a retail trader had no proper methods accounting but the following but the following information is made available to you, you are required to prepare opening and closing statement of Affairs and Statement showing Profit or Loss for the year ended 31stMarch, 2007 after taking into consideration the adjustments.
 Particulars Amount (.) 01.04.2006 Amount (.) 31.03.2007 Sundry Debtors 22,500 25,000 Sundry Creditors 30,000 35,000 Bank overdraft 40,000 20,000 Stock 32,500 40,000 Cash in Hand 1,000 4,000 Bill Receivable 30,000 40,000 Furniture 5,000 5,000 Motor Van 40,000 40,000 Computer 30,000 60,000
(1)      On 1st October, 2006 Mr. Radheshyam had withdrawn .25,000 for personal use out of which he invested . 5,000 at par on the same day in 10% Municipal Bonds which is treated as business assets.
(2)      He had also withdrawn . 15,000 for his daughter’s marriage.
(3)      Depreciate Furniture by 10% p.a. and write off .1,000 from motor van.
(4)      As regards debtors .1,000 is irrecoverable and further reserve of 5% is to be made on debtors.
(5)      Allow interest on Capital at 10% p.a.
(6)      Charge interest on Drawing . 1,000.                                                (10)