Particulars
|
31.3.13
|
31.3.14
|
Cash
Stock
Debtors
Furniture
Sundry creditors
Bills payable
Loan from ‘y’
Investments
|
18,000
15,000
30,000
7,500
26,250
-
-
-
|
27,000
18,750
45,000
7,500
31,500
9,000
3,000
15,000
|
Rani transferred Rs150 each
month during first half year and Rs.100 each month for the remaining period from
her business to her private banking account by way of drawing, and took away
Rs.350 worth of goods for private use. She sold her private car for Rs.3, 500
and proceeds were utilised for business. Furniture to be depreciated by 10% and
Reserve for Doubtful debts to be maintained at 5% on debtors. Prepare opening
and closing statement of affairs and also profit and loss statement for the
year ending 31/03/14.
Solution:
In the books of Rani
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.)
|
44250
|
69750
|
Cash
|
18000
|
27000
|
|
|
|
|
Stock
|
15000
|
18750
|
|
Sundry Creditors
|
26250
|
31500
|
Debtors
|
30000
|
45000
|
|
Bills Payable
|
-
|
9000
|
Furniture
|
7500
|
7500
|
|
Loan from 'y'
|
-
|
3000
|
Investments
|
-
|
15000
|
|
|
|
|
|
70500
|
113250
|
Statement
of Profit or Loss for the year ended 31.03.2014
|
Particulars
|
Rs.
|
Rs.
|
|
Capital at the
end of the year
|
|
69750
|
|
Add: Drawings:
|
|
|
|
First Six Months
6 months × Rs. 150
|
900
|
|
|
Next Six Months
6 months × Rs. 100
|
600
|
|
|
Private Use [Goods withdrawn]
|
350
|
1850
|
|
|
|
71600
|
|
Less: Additional Capital Introduced
|
|
|
|
Private car sold and proceeds
were
utilized for business
|
|
-3500
|
|
|
|
68100
|
|
Less: Capital at
the beginning of the year
|
|
-44250
|
|
Trading Profit
|
|
23850
|
|
Less: Depreciation:
|
|
|
|
On Furniture
7500 × 10% = 750
|
|
-750
|
|
|
|
23100
|
|
Less: R.D.D. @ 5% on
Debtors
45000×5% = 2250
|
|
-2250
|
|
Net Profit
|
|
20850
|
44250
|
69750
|
23850
|
20850
|
OPENING CAPTIAL
|
CLOSING CAPTIAL
|
TRADING PROFIT
|
NET PROFIT
|
