OMTEX CLASSES: Rani keeps her books on single entry & following information is disclosed.

Rani keeps her books on single entry & following information is disclosed.



Particulars
31.3.13
31.3.14
Cash
Stock
Debtors
Furniture
Sundry creditors
Bills payable
Loan from ‘y’
Investments
18,000
15,000
30,000
7,500
26,250
-
-
-
27,000
18,750
45,000
7,500
31,500
9,000
3,000
15,000
Rani transferred Rs150 each month during first half year and Rs.100 each month for the remaining period from her business to her private banking account by way of drawing, and took away Rs.350 worth of goods for private use. She sold her private car for Rs.3, 500 and proceeds were utilised for business. Furniture to be depreciated by 10% and Reserve for Doubtful debts to be maintained at 5% on debtors. Prepare opening and closing statement of affairs and also profit and loss statement for the year ending 31/03/14.


Solution: In the books of Rani

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.)
44250
69750
Cash
18000
27000



Stock
15000
18750
Sundry Creditors
26250
31500
Debtors
30000
45000
Bills Payable
-
9000
Furniture
7500
7500
Loan from 'y'
-
3000
Investments
-
15000




70500
113250

Statement of Profit or Loss for the year ended 31.03.2014

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

69750
Add: Drawings:


First Six Months
6 months × Rs. 150
900

Next Six Months
6 months × Rs. 100
600

Private Use [Goods withdrawn]
350
1850


71600
Less: Additional Capital Introduced


Private car sold and proceeds were
utilized for business

-3500


68100
Less: Capital at the beginning of the year

-44250
Trading Profit

23850
Less: Depreciation:


On Furniture
7500 × 10% = 750

-750


23100
Less: R.D.D. @ 5% on Debtors
45000×5% = 2250

-2250
Net Profit

20850

44250
69750
23850
20850
OPENING CAPTIAL
CLOSING CAPTIAL
TRADING PROFIT
NET PROFIT