Sunday, February 5, 2017

Mrs. Shailaja keeps her books under single entry system and gives the following information. (8)


Particulars
1.4.2012
31.3.2013

Amount (Rs. )
Amount (Rs.)
Investments

12000
Bank overdraft

10000
Bills payable
5000
8000
Creditors
26500
31500
Furniture
9000
19000
Debtors
35000
50000
Stock
15000
19000
Bank Balance
18000
28000

Further information:

(1) Mrs. Shailaja withdrew Rs. 4000 for her personal use. She received Rs. 15,000 from her father as gift, which she brought into the business.

(2) Additional furniture was purchased on 01.10.2012. Depreciate furniture by 10% p.a.

(3) Write off Rs. 1,000 as bad debts and provide 5% R.D.D. on debtors.

Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March, 2013.

Solution:

In the books of Mrs. Shailaja
Opening Statement of Affairs as on 1.4.2012

Liabilities
Amount (Rs)
Assets
Amount (Rs.)
Capital A/c
[Bal. fig.]
45500
Investments
-
Bank Overdraft
-
Furniture
9000
Bills payable
5000
Debtors
35000
Creditors
26500
Stock
15000


Bank Balance
18000





77000

77000

Closing Statement of Affairs as on 31. 03. 2013
Liabilities
Amount (Rs.)
Assets
Amount (Rs.)
Capital A/c
[Bal. fig.]
78500
Investments
12000
Bank Overdraft
10000
Furniture
19000
Bills payable
8000
Debtors
50000
Creditors
31500
Stock
19000


Bank Balance
28000





128000

128000





Statement of Profit or Loss or Mrs. Shailaja for the year ended 31. 03. 2013


Particulars
Amount (Rs.)
Amount (Rs.)
Capital at the end of the year.

78500
Add: Drawings during the year

+  4000


82500
Less: Additional capital introduced

-15000
Adjusted Closing Capital

67500
Less: Capital at the beginning of the year

-45500
Profit Before Adjustments

22000
Add: Income and Gains during the year.

-



Less: Expenses and Losses During the year.


Depreciation: On Furniture

On Opening Balance: 9000 x 10% = 900

On Additional Balance  : 10000 x 10% x 6 months = 500





1400

Bad debts
1000

R.D.D. on Debtors
(50000 - 1000) x 5% = 2450
2450
-4850
Net Profit for the year.

17150