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Mrs. Archana keeps her books on single entry system and gives the following information.


Particulars
31-3-13
31 – 3 – 14
Cash at bank
Sundry debtors
Stock in trade
Furniture
Machinery
Bills payable
Sundry creditors
5000
25000
30000
20000
50000
5000
15000
32000
40000
50000
20000
50000
5000
20000


1.      Mrs. Archana withdrew from business Rs. 15,000 for personal use.
2.      She further introduced fresh capital of Rs. 25,000.
3.      Depreciation is to be charged @10% p.a. on Furniture and Machinery.

Solution: In the books of Mrs. Archana

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.)
110000
167000
Cash at bank
5000
32000



Sundry Debtors
25000
40000



Stock in Trade
30000
50000
Bills payable
5000
5000
Furniture
20000
20000
Sundry creditors
15000
20000
Machinery
50000
50000

130000
192000

130000
192000

Statement of Profit or Loss for the year ended 31.03.2014


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

167000
Add: Drawings:


Amount withdrawn for Personal Expenses

15000


182000
Less: Additional Capital Introduced


Further Capital Introduced

-25000


157000
Less: Capital at the beginning of the year

-110000
Trading Profit

47000
Less: Depreciation:


On Furniture
20000× 10%
2000

On Machinery
50000× 10%
5000
-7000
Net Profit

40000

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