|
Particulars
|
Rs.
1.04.09
|
Rs.
31.03.10
|
|
Sundry Debtors
Sundry Creditors
Bank Overdraft
Stock
Cash in hand
Bills Receivable
Furniture
Motor van
Computer
10% Govt. Bonds
|
45000
60000
80000
65000
2000
60000
10000
80000
60000
|
50000
70000
40000
80000
8000
80000
10000
80000
120000
10000
|
On 1st October,
2009, Mr. Prabhakar had withdrawn Rs. 40000 for his personal use. He had also
withdrawn Rs. 30000 for his daughter’s marriage. 10% Government Bonds were
purchased of Rs. 10,000 on 1st October, 2009. Depreciate furniture by 10% and write off Rs.
2000 from motor van. Rs. 2000 is written
off as bad debts and provide 5% R.D.D. on debtors. Allow interest on capital at
10% p.a. Charge interest on drawings Rs. 2,000. Prepare Opening statement of
affairs of 1.4.2009. Closing statement
of affairs of 31.3.2010. Statement
showing Profit or Loss for the year ended on 31.3.2010.
Solution:
In the books of Mr. Prabhakar
Statement
of Affairs as on 1-4-09 and 31.03.10
|
Liability
|
1 – 4 – 09
|
31 – 3 – 10
|
Assets
|
1 – 4 – 09
|
31 – 3 – 10
|
|
Capital
(Bal. Fig.)
|
182000
|
328000
|
Sundry Debtors
|
45000
|
50000
|
|
|
|
|
Stock
|
65000
|
80000
|
|
|
|
|
Cash in hand
|
2000
|
8000
|
|
|
|
|
Bills Receivable
|
60000
|
80000
|
|
|
|
|
Furniture
|
10000
|
10000
|
|
|
|
|
Motor van
|
80000
|
80000
|
|
Sundry Creditors
|
60000
|
70000
|
Computer
|
60000
|
120000
|
|
Bank Overdraft
|
80000
|
40000
|
10% Govt. Bonds
|
-
|
10000
|
|
|
322000
|
438000
|
|
322000
|
438000
|
Statement
of Profit or Loss for the year ended 31.03.2010
|
Particulars
|
Rs.
|
Rs.
|
|
Capital at the end of the
year
|
|
328000
|
|
Add: Drawings:
|
|
|
|
Personal use
Prabhakar's Daughter Marriage
|
40000
30000
|
70000
|
|
|
|
398000
|
|
Less: Capital at the
beginning of the year
|
|
-182000
|
|
Trading Profit
|
|
216000
|
|
Less: Depreciation
|
|
|
|
On Furniture
10000 × 10%
|
1000
|
|
|
On Motor van
|
2000
|
3000
|
|
|
|
213000
|
|
Less: Bad debts
|
|
-2000
|
|
|
|
211000
|
|
Less: RDD @ 5% on Debtors
|
|
|
|
(50000 – 2000) × 5%
|
|
-2400
|
|
|
|
208600
|
|
Add: Interest on 10% Govt.
Bonds
|
|
|
|
10000 × 10% × 6 months
|
|
500
|
|
|
|
209100
|
|
Less: Interest on Capital
|
|
|
|
On opening capital
182000 × 10%
|
|
-18200
|
|
|
|
190900
|
|
Add: Interest on drawings
|
|
2000
|
|
Net Profit
|
|
192900
|
