Asha and Usha were partners sharing profits and losses in the ratio of 2:1.

TEXTUAL PROBLEM NO. 9

SINGLE ENTRY ACCOUNTING SYSTEM.

9. Asha and Usha were partners’ sharing profits and losses in the ratio of 2:1. Prepare their statement of Profit or Loss for the year ended 31^st March, 2012 from the following statement of Affairs as on 31^st March, 2011.

Statement of Affairs as on 31^st March, 2011.

Liabilities	Amount	Assets	Amount
Creditors	33,000	Cash at Bank	6000
Bills Payable	9000	Cash in Hand	2000
Capitals: Asha	62000	Building	41,000
Usha	32000	Machinery	21000
		Furniture	10000
		Stock	18000
		Debtors	25000
		Bills Receivable	13000
	136000		136000

The assets and liabilities as on 31^st March 2012 were:

Sundry Creditors Rs. 35,000, Bills Receivable Rs. 18,000, Bills Payable Rs. 15,000, Cash in hand Rs. 3000, Stock Rs. 32,000. Cash at Bank Rs. 6,000, Debtors Rs. 38,000. There were no changes in fixed assets.

Further information:

(1) Asha and Usha had drawn Rs. 10,000 and Rs. 8000 respectively for personal use.

(2) They also brought additional capital of Rs. 6000 and 4000 respectively.

(3) Building to be depreciated by 5% and machinery and furniture at 10%.

(4) Allow interest at 10% p.a. on opening capitals and charge interest on drawings of Asha and Usha at Rs. 700 and Rs. 500 respectively.