|
Liabilities
|
Amt
|
Asset
|
Amt
|
|
Capital account
Sundry creditors
Bill payable
|
28,000
3,170
2,150
|
Leasehold land
Plant and Machinery
Stock in trade
Book debts
Cash in hand
|
2,075
4,940
9,673
15,550
1,082
|
|
|
33,320
|
|
33,320
|
On 31.03.07 it was learnt
that he had introduced further capital of Rs1,000 on 1st july,06 and
he drawn Rs1,580 on various dates during the year. It was also ascertained that
the proprietor had taken Rs.75 worth of goods for his own use.
Statement prepared on the same date disclosed that
book debts were Rs.14,640, Creditors were Rs.2,309 and Bills payable were
Rs.1,775. The stock was valued at Rs.11,417 and cash in hand amounted Rs.917 on
the same date.
Prepare: 1. Statement of profit for the year 06-07. 2. Statement of affairs as
on 31.03.07 taking in to consideration the following: 5% Reserve to be created
on Book debts. 5% Depreciation to be written off on plant and machinery. Rs.125
to be written off the lease. Interest at 5% p.a. to be provided on the
capital.
Solution:
In the books of Mr. Gopal Statement
of Affairs as on 31.3.07
|
Liability
|
Rs.
|
Assets
|
Rs.
|
|
Capital
(Bal. Fig.)
|
29905
|
Book Debts
|
14640
|
|
Creditors
|
2309
|
Stock
|
11417
|
|
Bills Payable
|
1775
|
Cash in hand
|
917
|
|
|
|
Leasehold land
|
2075
|
|
|
|
Plant and Machinery
|
4940
|
|
|
33989
|
|
33989
|
Statement
of Profit or Loss for the year ended 31.03.2007
|
Particulars
|
Rs.
|
Rs.
|
|
Capital at the end of the
year
|
|
29905
|
|
Add: Drawings:
|
|
|
|
Cash Withdrawn
Goods Withdrawn
|
1580
75
|
1655
|
|
|
|
31560
|
|
Less: Additional Capital introduced
|
|
-1000
|
|
|
|
30560
|
|
Less: Capital at the
beginning of the year
|
|
-28000
|
|
Trading Profit
|
|
2560
|
|
Less: Depreciation
On Plant and Machinery
4940 × 5%
|
247
|
|
|
On Leasehold Land
|
125
|
-372
|
|
|
|
2188
|
|
Less: RDD @ 5 % on Book
Debts
14640 × 5%
|
|
-732
|
|
|
|
1456
|
|
Less: Interest on Capital
On Opening Capital
28000 × 5%
|
1400
|
|
|
On Additional Capital
1000 × 5% × 9 months
|
38
|
-1438
|
|
NET PROFIT
|
|
18
|
