Single Entry Solution: In the books of Miss kalpana

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In the books of Miss kalpana

Closing Statement of Affairs as on 31st March, 2016

Liabilities	Amount	Assets	Amount
Bills payable	12880	Cash	9120
Creditors	17180	Stock	10250
Capital (Balancing Figure)	175980	Debtors	31000
		Prepaid Insurance	550
		Bills Receivable	29120
		Premises	85800
		Vehicles	40200
	206040		206040

Statement of Profit or Loss for the year ended 31st March, 2016.

Particulars	Amount (Rs.)	Amount (Rs.)
Capital at the end of the year.		175980
Add: Drawings during the year		10000
		185980
Less: Additional Capital Introduced		-20000
Adjusted Closing capital		165980
Less: Capital at the beginning of the year.		-130000
Profit Before Adjustments		35980
Add: Incomes and Gains during the year
Decrease in the value of creditors		-2180
		38160
Less: Expenses and losses During the year.
(1) Interest on Capital (6500 + 500)	7000
(2) Bad debts	1000
(3) Reserve for Doubtful Debts	750
(4) Depreciation on Vehicles	4020
(5) Depreciation on Premises	4290	- 17060
NET PROFIT		21100