Mr. Suryakant maintains books on single entry and who gives you the following information. (September 2008)

Particulars	31-3-2013	31-3-2014
Cash in hand Cash at bank Stock Sundry debtors Investments Furniture Machinery Sundry creditors Outstanding expenses	500 2500 20000 25000 20000 10000 25000 10000 3000	2000 5000 30000 40000 20000 25000 40000 10000 2000

1. Mr. Suryakant introduced further capital of Rs. 20000 on 1^st July, 2013 and had withdrawn Rs. 10,000 during the year.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 1^st October, 2013. Write of deprecation on furniture and machinery at 10% p.a.
4. Create reserve for doubtful debts at 5% on debtors.

Solution: In the books of Mr. Suryakant

Statement of Affairs as on 31.03.2013 and 31.03.2014

Liability	31.3.2013	31.3.2014	Assets	31.03.2013	31.03.2014
Capital (Bal. Fig.)	90000	150000	Cash in hand	500	2000
			Cash at Bank	2500	5000
			Stock	20000	30000
Sundry Creditors	10000	10000	Sundry Debtors	25000	40000
Outstanding expenses	3000	2000	Investments	20000	20000
			Furniture	10000	25000
			Machinery	25000	40000
	103000	162000		103000	162000

Statement of Profit or Loss for the year ended 31.03.2014

Particulars	Rs.	Rs.
Capital at the end of the year		150000
Add: Drawings:
Amount withdrawn for Private Expenses		10000
		160000
Less: Additional Capital Introduced
Further Capital Introduced		-20000
		140000
Less: Capital at the beginning of the year		-90000
Trading Profit		50000
Less: Depreciation:
On Furniture On Opening Balance: 10000 × 10%	1000
On Additional Furniture 15000 × 10% × 6 months	750
On Machinery On Opening Balance: 25000 × 10%	2500
On Additional Machinery 15000 × 10% × 6 months	750	-5000
		45000
Less: R.D.D. @ 5% On Debtors 40000 × 5%		-2000
		43000
Less: Interest on Capital On opening Balance: 90000 × 10%	9000
On Additional Capital 20000 × 10% × 9 months	1500	-10500
Net Profit		32500