Question

Mr. John keeps his books according to single entry system. Following are the details of his business:

Particulars	01.04.2012 Amount (Rs)	31.03.2013 Amount (Rs)
Machinery	70,000	70,000
Furniture	10,000	20,000
Stock	36,000	42,000
Sundry debtors	72,200	88,400
Cash in hand	3,000	4,100
Cash at bank	42,000	52,300
Sundry creditors	54,500	60,400

Additional information:

(1) Mr. John had introduced  Rs. 20,000 as additional capital on 1^st October, 2012.
(2) Mr. John had withdrawn Rs.15,000 for his personal use during the year.
(3) Additions to furniture were made on 1^st October, 2012.
(4) Depreciate machinery at 10% p. a.and furniture at 20% p. a.

Prepare:
(1) Opening and Closing Statement of Affairs.
(2) Statement of Profit or Loss for the year ending on 31^st March, 2013

Answer 1

In the books of Mr. John.

Statement of Affairs.

Liabilities	1.4.12	31.3.13	Assets	1.4.12	31.3.13
Sundry Creditors	54500	60400	Machinery	70000	70000
Capital Fund (Balancing Figure)	178700	216400	Furniture	10000	20000
			Stock	36000	42000
			Sundry Dentors	72200	88400
			Cash in Hand	3000	4100
			Cash at Bank	42000	52300
	233200	276800		233200	276800

Statement of profit or Loss for
the year ended 31st March, 2013

Particulars	Amount (Rs.)	Amount (Rs.)
Capital at the endo fothe accounting year. 2012 - 13		216400
Add: Drawings made duing the accounting year.		15000
		231400
Less: Additional Capital Introduced		20000
Adjusted Closing Capital		211400
Less: Capital at the begining of the accounting year		178700
		32700
Less: Depreciation
On Machinery (10% on Rs.70000 for 1 year)	7000
On Opening Furniture (20% p.a. On Rs. 10000 for 1 year)	2000
On Additional Furniture (20% on Rs. 10000 for 6 months)	1000	10000
Net profit Earnied during the year.		22700