Mrs. Shailaja keeps her books under single entry system and gives the following information. (8)

Particulars	1.4.2012	31.3.2013
	Amount (Rs. )	Amount (Rs.)
Investments		12000
Bank overdraft		10000
Bills payable	5000	8000
Creditors	26500	31500
Furniture	9000	19000
Debtors	35000	50000
Stock	15000	19000
Bank Balance	18000	28000

Further information:

(1) Mrs. Shailaja withdrew Rs. 4000 for her personal use. She received Rs. 15,000 from her father as gift, which she brought into the business.

(2) Additional furniture was purchased on 01.10.2012. Depreciate furniture by 10% p.a.

(3) Write off Rs. 1,000 as bad debts and provide 5% R.D.D. on debtors.

Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March, 2013.

Solution:

In the books of Mrs. Shailaja

Opening Statement of Affairs as on 1.4.2012

Liabilities	Amount (Rs)	Assets	Amount (Rs.)
Capital A/c [Bal. fig.]	45500	Investments	-
Bank Overdraft	-	Furniture	9000
Bills payable	5000	Debtors	35000
Creditors	26500	Stock	15000
		Bank Balance	18000
	77000		77000

Closing Statement of Affairs as on 31. 03. 2013

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capital A/c [Bal. fig.]	78500	Investments	12000
Bank Overdraft	10000	Furniture	19000
Bills payable	8000	Debtors	50000
Creditors	31500	Stock	19000
		Bank Balance	28000
	128000		128000

Statement of Profit or Loss or Mrs. Shailaja for the year ended 31. 03. 2013

Particulars	Amount (Rs.)	Amount (Rs.)
Capital at the end of the year.		78500
Add: Drawings during the year		+  4000
		82500
Less: Additional capital introduced		-15000
Adjusted Closing Capital		67500
Less: Capital at the beginning of the year		-45500
Profit Before Adjustments		22000
Add: Income and Gains during the year.		-
Less: Expenses and Losses During the year.
Depreciation: On Furniture On Opening Balance: 9000 x 10% = 900 On Additional Balance  : 10000 x 10% x 6 months = 500	1400
Bad debts	1000
R.D.D. on Debtors (50000 - 1000) x 5% = 2450	2450	-4850
Net Profit for the year.		17150