OMTEX CLASSES: Mr. Mangesh is dealing in business. He maintains his accounting with single entry.

Mr. Mangesh is dealing in business. He maintains his accounting with single entry.

TEXTBOOK PROBLEM NO. 1
[Adjustments like introduction of additional capital, drawings made, depreciation on fixed assets, R.D.D. on debtors, etc are considered in this problem.]

Mr. Mangesh is dealing in business. He maintains his accounting with single entry. The following are details of his business. (Textual Problem. No. 1) 
Statement of Profit or Loss for the year ended 31stMarch, 2011
Particulars 
1.4.2012
31.3.2013
Land and Building
40000
50000
Machinery
30000
40000
Furniture
10000
10000
Debtors
20000
40000
Stock
10000
25000
Cash Balance
5000
15000
Bills Receivable
5000
5000
Creditors
25000
25000
Bank Overdraft 
5000
-
Bank Balance              
-
10000

Mr. Mangesh introduced Rs. 10,000 as additional capital. He spent Rs. 45,000 for personal use. Depreciate Land and Building by Rs. 5000. Provide 5% R.D.D. on Debtors. 

Prepare Opening Statement of affairs. Closing statement of affairs and the statement of profit or loss.