3. Miss Kavita commenced her business with a capital of Rs. 1,30,000.
[ Adjustments like additional capital introduced, drawings made, interest on capital, Bad debts, R.D.D., depreciation on fixed assets, etc, are considered in this problem.]
3. Miss. Kavita commenced her business with a capital of Rs. 1,30,000 on 1stApril 2010. Her financial position as on 31stMarch, 2011, was as follows: Cash Rs. 9,120, Stock Rs. 10,250, Bills Payable Rs. 12,880, Creditors Rs. 17,180, Debtors Rs. 31,550, Bills Receivable Rs. 29,120, Premises Rs. 85,750, Vehicles Rs. 40,250: (Textbook Problem No. 3)
Additional Information:
(1) She brought additional capital Rs. 20,000 on 30thSeptember 2010. Interest on capital is to be provided at 5% p.a.
(2) She withdrew Rs. 10,000 for personal use on which interest is to be charged at 6% p.a.
(3) R.D.D. is to be provided at 2 ½ % p.a. after providing Bad debts Rs. 1000.
(4) Depreciate Vehicles at 2% and Premises at 4%.
