Mrs. Archana keeps her books on single entry system and gives the following information.

Particulars	31-3-13	31 – 3 – 14
Cash at bank Sundry debtors Stock in trade Furniture Machinery Bills payable Sundry creditors	5000 25000 30000 20000 50000 5000 15000	32000 40000 50000 20000 50000 5000 20000

1.      Mrs. Archana withdrew from business Rs. 15,000 for personal use.

2.      She further introduced fresh capital of Rs. 25,000.

3.      Depreciation is to be charged @10% p.a. on Furniture and Machinery.

Solution: In the books of Mrs. Archana

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.)	110000	167000	Cash at bank	5000	32000
			Sundry Debtors	25000	40000
			Stock in Trade	30000	50000
Bills payable	5000	5000	Furniture	20000	20000
Sundry creditors	15000	20000	Machinery	50000	50000
	130000	192000		130000	192000

Statement of Profit or Loss for the year ended 31.03.2014

Particulars	Rs.	Rs.
Capital at the end of the year		167000
Add: Drawings:
Amount withdrawn for Personal Expenses		15000
		182000
Less: Additional Capital Introduced
Further Capital Introduced		-25000
		157000
Less: Capital at the beginning of the year		-110000
Trading Profit		47000
Less: Depreciation:
On Furniture 20000× 10%	2000
On Machinery 50000× 10%	5000	-7000
Net Profit		40000