Mrs. Asha keeps her books on Single Entry System and gives the following information: [8]


Particulars
31.3.2011
31.3.2012
Cash at Bank
10000
64000
Sundry debtors
50000
80000
Stock in Trade
60000
100000
Furniture
40000
40000
Machinery
100000
100000
Bills Payable
10000
10000
Sundry Creditors
30000
40000
Mrs. Asha withdrew from business Rs. 30,000 for personal use. She further introduced fresh capital of Rs. 50,000.
Depreciation is to be charged @ 10% p.a. on furniture and machinery.
Prepare:
(a) Statement of affairs as on 31.3.2011
(b) Statement of affairs as on 31.3.2012
(c) Statement of Profit or Loss for the year ending 31.3.2012.
Solution: In the Books of Mrs. Asha
Statement of Affairs as on 31st March, 2011 and 31st March, 2012
Liabilities
31.3.11
31.3.12
Assets
31.3.11
31.3.12
Bills payable
10000
10000
Cash at Bank
10000
64000
Sundry creditors
30000
40000
Sundry Debtors
50000
80000
Capital Funds
220000
3,34000
Stock in Trade
60000
100000



Furniture
40000
40000



Machinery
100000
100000

260000
384000

260000
384000
Statement of Profit or Loss for the year ended 31st March, 2012.

Particulars
Amount
Amount
Capital at the end of the Year

334000
Add: Drawings

+30000


364000
Less: Additional Capital Introduced

-50000


314000
Less: Capital at the End of the Year

220000
Trading Profit

94,000
Less: Depreciation


On Furniture = 40000 × 10%
4000

On Machinery = 100000 × 10%
10000
-        14000
Net Profit

80,000