Mahendra keeps his books by single entry system.

Textual Problem No. 4

4. Mahendra keeps his books by Single Entry System. His position on 1^stApril 2012, was as follows: Cash in Hand Rs. 7,900, cash at bank Rs. 20,000, Debtors Rs. 18,000, Stock Rs. 29,000, Motor Car Rs. 5,000, Bank Loan Rs. 18,000 and outstanding expenses Rs. 2700. 

On 1^stOctober, 2012 Mahendra introduced Rs. 10,000 as further capital in the business and withdrew on the same date Rs. 7000 out of which he spent Rs. 5000 on the purchase of a Machinery for the business. 

On 31^stMarch 2013 his position was follows: Cash in Hand Rs. 7,600, Cash at Bank Rs. 22,000, Stock Rs. 30,000, Debtors Rs. 25700, Furniture Rs. 6,000, Creditors Rs. 25,200 and prepaid expenses Rs. 200. 

Prepare a statement showing the Profit or Loss made by him during the year ended 31^stMarch, 2013 and Opening the Closing statement of affairs. Consider the following adjustments also. 

(1) Depreciate Motor car and Furniture @ 10% p.a. Additions to furniture was made on 1^stOctober, 2012. 

(2) Provide Rs. 1200 for Bad debts and provide 5% R.D.D.

(3) Goods taken for personal use by Mahendra amounting to Rs. 1500. 

(4) Provide Interest on capital @ 10% p.a.