Mr. Suryakant maintains books on Single Entry and who given
you the following Information:
Particulars
|
31/3/2006
|
31/3/2007
|
Cash
in Hand
|
500
|
2,000
|
Cash
at Bank
|
2,500
|
5,000
|
Stock
|
20,000
|
30,000
|
Sundry
Debtors
|
25,000
|
40,000
|
Investment
s
|
20,000
|
20,000
|
Furniture
|
10,000
|
25,000
|
Machinery
|
25,000
|
40,000
|
Sundry
Creditors
|
10,000
|
10,000
|
Outstanding
Expenses
|
3,000
|
2,000
|
Additional Information:-
(1) Mr. Suryakant
introduced further capital of Rs. 20,000 on 1st July,2006 and
had withdrawn Rs. 10,000 during the year.
(2) Interest on
capital is allowed at 10% p.a.
(3) Additions to
furniture and machinery were made on 1st October,2006.
(4) Write off
depreciation on furniture and machinery at 10% p.a.
(5) Create reserve
for doubtful debts at 5% on Sundry debtors.
Prepare :- (a) Statement of Affairs and (b) Statement of Profit
and Loss for the year ended 31st March,
2007.
(10)
In the books of
Suryakant
Opening Statement of Affairs as
on 1-4-2006
Liabilities
|
Rs.
|
Assets
|
Rs.
|
Capital
|
90,000
|
Cash
in hand
Cash
at Bank
Stock
|
500
2,500
20,000
|
Sundry
Creditors
|
10,000
|
Sundry
Debtors
|
25,000
|
Outstanding
Expenses
|
3,000
|
Investments
|
20,000
|
Furniture
|
10,000
|
||
Machinery
|
25,000
|
||
1,03,000
|
1,03,000
|
Closing Statement of Affairs as
on 31-3-2007
Liabilities
|
Rs.
|
Rs.
|
Assets
|
Rs.
|
Rs.
|
Capital
|
143000
|
Cash
in hand
Cash
at Bank
Stock
|
|
2,000
5,000
30,000
|
|
Sundry
Debtors
|
40,000
|
||||
(-)
New R.D.D.
|
2,000
|
38,000
|
|||
Sundry
Creditors
|
10,000
|
Investments
|
20,000
|
||
Outstanding
Expenses
|
2,000
|
Furniture
|
25,000
|
||
(-)
Depreciation
|
1,750
|
23,250
|
|||
Machinery
|
40,000
|
||||
(-)
Depreciation
|
3,250
|
36,750
|
|||
1,55,000
|
1,55,000
|
Statement of Profit & Loss
for the year ended 31-3-2007
Particulars
|
Rs.
|
Rs.
|
Closing
Capital balance
Add:
Drawings
|
1,43,000
10,000
|
|
Less:
(1) Further capital introduced
(2) Interest on capital
|
20,000
10,500
|
1,53,000
30,500
|
Less:
Opening Capital Balance
|
1,22,500
90,000
|
|
Net
Profit
|
32,500
|
Working Note: To find out depreciation on machinery
40,000
Old
New
(12 months)
25,000
15,000 (6 months)
10% Depreciation = 2,500 + 750 = 3,250