Question

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

Liabilities	Amount (Rs.)	Assets	Amount (Rs)
Creditors	33,000	Cash at Bank	6,000
Bills Payable	9,000	Cash in Hand	2,000
Capitals: Asha Usha	62,000 32,000	Building	41,000
		Machinery	21,000
		Furniture	10,000
		Stock	18,000
		Debtors	25,000
		Bills Receivable	13,000
	136,000		136,000

The assets and liabilities as on 31^st March 2012 were:
Sundry creditors Rs 35,000 Bill Receivable Rs 18,000 Bills payable Rs 15,000 cash in hand Rs 3,000, Stock Rs 32,000 Cash of 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 8,000 respectively for personal use.
2) They also brought additional capital of Rs 6,000 and Rs 4,000 respectively.
3) Building to be depreciated by 5% and machinery and furniture at 10%.
4) Charge interest at 10% p.a. on opening capitals and allow interest on drawings of Asha and Usha were Rs 700 and Rs 500 respectively.

Answer 1

Statement of Affairs
as on March 31,2012

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Bills Payable	15,000	Cash in Hand	3,000
Sundry Creditors	35,000	Cash at Bank	6,000
Sundry Creditors	119,000	Stock	32,000
		Debtors	38,000
		Bills Receivable	18,000
		Building	41,000
		Machinery	21,000
		Furniture	10,000
	169,000		169,000

Statement of Profit or Loss
for the year ended March 31,2012

Particulars	Amount (Rs)	Amount (Rs)
Capital at the end of the year		119,000
Add: Drawings made during the year                                      Asha                                              Usha	10,000 8,000	18,000
Less: Additional capital introduced during the year                      Asha                                               Usha	(6,000) (4,000)	(10,000)
Adjusted capital at the end of the year		127,000
Less: Capital in the beginning of the year                                                                                            Asha                                                 Usha	( 62,000)(32,000)	(94,000)
		33,000
Add: Interest on Drawings                                                    Asha                                              Usha	700 500	1,200
Less: Depreciation (Building+Machinery+Furniture)		(5150)
Interest on Capital                                                                         Asha                                               Usha	(6,200) (3,200)	(9,400)
Profit for the year                                                           Asha                                              Usha	13,100 6550	19650