OMTEX CLASSES: Following records of Mr. Raj were kept on single entry system. (March 2009)

Following records of Mr. Raj were kept on single entry system. (March 2009)


Particular
31.03.2013
31.03.2014
Stock
15000
14000
Furniture
53500
44000
Plant and Machinery
42500
55500
Loan Taken
21000
21000
Bank Balance
1900
2100
Debtors
43000
35000
Creditors
18000
14900

Mr. Raj invested Rs. 4000 in the business.
Also he had withdrawn Rs. 15,000 for his private expenses from business.
Rs. 500 to be provided for bad debts.
Depreciate plant and machinery @ 5% and furniture @5%
Prepare: i. Statement of Affairs as on 31.3.2013. ii. Statement of Affairs as on 31.3.2014. iii. Statement of Profit and Loss for the year ended on 31.3.2014.


Solution: In the books of Mr. Raj
Statement of Affairs as on 31.03.2013 and 31.03.2014
Liability
31.3.2013
31.3.2014
Assets
31.03.2013
31.03.2014
Capital
(Bal. Fig.)
116900
114700
Stock
15000
14000



Furniture
53500
44000



Plant and
Machinery
42500
55500
Loan Taken
21000
21000
Bank Balance
1900
2100
Creditors
18000
14900
Debors
43000
35000

155900
150600

155900
150600

Statement of Profit or Loss for the year ended 31.03.2014

Particulars
Rs.
Rs.
Capital at the end of the year

114700
Add: Drawings:


Amount withdrawn for Private Expenses

 15000


129700
Less: Additional Capital Introduced


Amount Invested by Mr. Raj.

-4000


125700
Less: Capital at the beginning of the year

-116900
Trading Profit

8800
Less: Depreciation:


On Plant and Machinery
55500 × 5% = 2775
2775

On Furniture
44000 × 5% = 2200
2200
-4975


3825
Less: Bad debts

-500
Net Profit

3325


ANSWER
116900
114700
8800
3325
OPENING CAPITAL
CLOSING CAPITAL
TRADING PROFIT
NET PROFIT