Additional Information:
(1) Mr. Govind transferred Rs. 300 per month during first half year and Rs. 200 each month for the remaining period from his business to his personal account. He also took goods of Rs. 700 for private use.
(2) Mr. Govind sold his personal assets for Rs. 7000 and brought the proceeds into his business.
(3) Furniture is to be depreciated by 10%.
(4) Provide R.D.D. at 5% for debtors.
Prepare: Opening and Closing Statement of affairs and Statement of Profit or Loss for the year ended 31st March 2013.
Solution: In the books of Mr. Govind
Statement of Affairs as on 1.4.2012
Liabilities
|
Amount.
|
Assets
|
Amount
|
Creditors
|
52500
|
Furniture
|
15000
|
Capital at the beginning of the year. [Bal. Fig.]
|
88500
|
Debtors
|
60000
|
Stock in Trade
|
30000
| ||
Cash at Bank
|
36000
| ||
141000
|
141000
|
Statement of Affairs as on 31. 3. 2013
Liabilities
|
Amount.
|
Assets
|
Amount
|
Bills Payable
|
18000
|
Investments
|
30000
|
Creditors
|
69000
|
Fruniture
|
15000
|
Capital at the End of the year [Bal. Fig.]
|
139500
|
Debtors
|
90000
|
Stock in Trade
|
37500
| ||
Cash at Bank
|
54000
| ||
226500
|
226500
|
Statement of Profit Or Loss of Mr. Govind for the year ended 31. 3. 2014
Particulars
|
Amount. Rs.
|
Amount. Rs.
|
Capital at the end of the year.
|
139500
| |
Add: Drawings
| ||
For the first Half Year = 6 months x Rs. 300
|
1800
| |
For the next half year = 6 months x Rs. 200
|
1200
| |
Goods withdrawn for personal use
|
700
|
3700
|
143200
| ||
Less: Additional Capital Introduced
|
-7000
| |
Adjusted Closing Capital.
|
136200
| |
Less: Capital at the beginning of the year.
|
- 88500
| |
Profit Before Adjustments
|
47700
| |
Add: Incomes and Gains During the year
|
-
| |
Less: Expenses and Losses During the year.
| ||
(i) Depreciation On Furniture = 15000 x 10%
|
1500
| |
(ii) R.D.D. @ 5% on Debtors = 90000 x 5%
|
4500
|
-6000
|
Net profit for the year
|
41700
|
