OMTEX CLASSES: Mr. Gopal maintained his books on single entry. The following statement of affairs had been Prepared as on 31.03.06

Mr. Gopal maintained his books on single entry. The following statement of affairs had been Prepared as on 31.03.06


Liabilities
Amt
Asset
Amt
Capital account
Sundry creditors
Bill payable
28,000
3,170
2,150
Leasehold land
Plant and Machinery
Stock in trade
Book debts
Cash in hand
2,075
4,940
9,673
15,550
1,082

33,320

33,320
On 31.03.07 it was learnt that he had introduced further capital of Rs1,000 on 1st july,06 and he drawn Rs1,580 on various dates during the year. It was also ascertained that the proprietor had taken Rs.75 worth of goods for his own use.
Statement prepared on the same date disclosed that book debts were Rs.14,640, Creditors were Rs.2,309 and Bills payable were Rs.1,775. The stock was valued at Rs.11,417 and cash in hand amounted Rs.917 on the same date.
Prepare: 1. Statement of profit for the year 06-07. 2. Statement of affairs as on 31.03.07 taking in to consideration the following: 5% Reserve to be created on Book debts. 5% Depreciation to be written off on plant and machinery. Rs.125 to be written off the lease. Interest at 5% p.a. to be provided on the capital. 



Solution: In the books of Mr. Gopal Statement of Affairs as on 31.3.07
Liability
Rs.
Assets
Rs.
Capital
(Bal. Fig.)
29905
Book Debts
14640
Creditors
2309
Stock
11417
Bills Payable
1775
Cash in hand
917


Leasehold land
2075


Plant and Machinery
4940

33989

33989

Statement of Profit or Loss for the year ended 31.03.2007
Particulars
Rs.
Rs.
Capital at the end of the year

29905
Add: Drawings:


Cash Withdrawn
Goods Withdrawn
1580
75

1655


31560
Less: Additional Capital introduced

-1000


30560
Less: Capital at the beginning of the year

-28000
Trading Profit

2560
Less: Depreciation
On Plant and Machinery
4940 × 5%
247

On Leasehold Land

125
-372


2188
Less: RDD @ 5 % on Book Debts
14640 × 5%


-732


1456
Less: Interest on Capital
On Opening Capital
28000 × 5%


1400

On Additional Capital
1000 × 5% × 9 months

38

-1438
NET PROFIT

18