SINGLE ENTRY QUESTION WITH ANSWER

Mr. Anand gives you the following information:                                                     (10)

Particulars	31-03-2003 (`.)	31-03-2004 (`.)
Cash	5,000	6,000
Bank	15,000	18,000
Debtors	10,000	8,000
Stock	8,000	12,000
Furniture	12,000	12,000
Creditors	2,000	6,000
Bills Payable	2,000	-

         

During the year Mr. Anand introduced `. 4,000 as further capital in the business. He has withdrawn cash `. 20,000 out of which he spent `. 15,000 on 1-10-2003 for purchase of scooter for business use.

          Adjustments:

(1)          Depreciate furniture @ 10% p.a.

(2)          Depreciate scooter @ 20% p.a.

(3)          Create provision for doubtful debts @ 5% of the debtors as on 31-03-2004.

(4)          Provide interest on capital at 10% p.a.

Prepare:

(1)          Statement of Affairs as on 31-03-2003.

(2)          Statement of Affairs as on 31-03-2004.

(3)          Statement of Profit or loss for the year ended 31-03-2004.

Opening Statement of Affairs as on 31-3-2003

Liabilities	`.	`.	Assets	`.	`.
Capital Creditors Bills Payable		46,000 2,000 2,000	Cash Bank Debtors Stock Furniture		5,000 15,000 10,000 8,000 12,000
		50,000			50,000

Closing Statement of Affairs as on 31-3-2003

Liabilities	`.	`.	Assets	`.	`.
Capital Creditors		61,900 6,000	Cash Bank Debtors Less: New R.D.D. Stock Scooters (1-10-03) Less: Depreciation Furniture Less: Depreciation	8,000   400 15,000    1,500 12,000   1,200	6,000 18,000 7,600 12,000 13,500 10,800
		67,900			67,900

Statement of Profit or Loss for the year ended 31-3-2004

Particulars	`.	`.
Closing capital balance as on 31-3-04 Add: Drawings Less: (1) Further capital introduced          (2) Interest on capital Less: Opening capital balance as on 31-3-2003	4,000    4,600	61900   20000 81900 8600 73300 46000
Profit		27300