Question

Mrs. Sunita keeps her books on Single entry System and gives the following information:

Particulars	01.04.2015 Amount	31.03.2016 Amount
Cash at bank	10,000	64,000
Debtors	50,000	80,000
Stock	60,000	1,00,000
Plant	40,000	40,000
Building	1,00,000	1,00,000
Bills payable	10,000	10,000
Creditors	30,000	40,000

Additional Information:
Mrs. sunita withdrew from business Rs. 30,000 for personal use. She further introduced fresh capital of 50,000. Depreciation is to be charged @10% p.a on plant and building.

Prepare: 
(a) Statement of Affairs as on 01.04.2015
(b) Statement of Affairs as on 31.03.2016
(c) Statement of Profit or Loss for the year ending 31.03.2016

Answer 1

In the books of Mrs. Sunita

Closing Statement of Affairs as on 31st March, 2016

Liabilities	Amount 1.4.2015	Amount 31.3.2016	Assets	Amount 1.4.2015	Amount 31.3.2016
Bills Payable	10,000	10,000	Cash at Bank	10000	64000
Creditors	30,000	40,000	Debtors	50000	80000
			Stock	60000	100000
			Plant	40000	40000
	220,000	334,000	Building	100000	100000
	260000	384000		260000	384000

Statement of Profit or Loss for the year ended 31st March, 2016.

Particulars	Amount (Rs.)	Amount (Rs.)
Capital at the end of the year.		344,000
Add: Drawings during the year		30,000
		364,000
Less: Additional Capital Introduced		- 50,000
Adjusted Closing capital		314,000
Less: Capital at the beginning of the year.		220,000
Profit Before Adjustments		94,000
Add: Incomes and Gains during the year
Less: Expenses and losses During the year.
Depreciation @ 10% p.a. on Plant	4000
Depreciation @ 10% p.a. on Building	10000	- 14000
NET PROFIT		80,000

Answer 2

In the books of Mrs. Sunita

Closing Statement of Affairs as on 31st March, 2016

Liabilities	Amount 1.4.2015	Amount 31.3.2016	Assets	Amount 1.4.2015	Amount 31.3.2016
Bills Payable	100000	100000	Cash at Bank	10000	64000
Creditors	30000	40000	Debtors	50000	80000
			Stock	60000	100000
			Plant	40000	40000
	130000	244000	Building	100000	100000
	260000	384000		260000	384000

 

Statement of Profit or Loss for the year ended 31st March, 2016.

Particulars	Amount (Rs.)	Amount (Rs.)
Capital at the end of the year.		244000
Add: Drawings during the year		30000
		277000
Less: Additional Capital Introduced		- 50000
Adjusted Closing capital		222000
Less: Capital at the beginning of the year.		-130000
Profit Before Adjustments		92000
Add: Incomes and Gains during the year
Less: Expenses and losses During the year.
Depreciation @ 10% p.a. on Plant	4000
Depreciation @ 10% p.a. on Building	10000	- 14000
NET PROFIT		78000