HSC Commerce (Marketing and Salesmanship) 12th Board ExamMaharashtra State Board
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Solution for Miss Kalpana Started Her Business with a Capital of ` 1,30,000 on 1st April, 2015. Her Financial Position on 31st March 2016 Was as Follows : - HSC Commerce (Marketing and Salesmanship) 12th Board Exam - Book Keeping and Accountancy

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Question

Miss Kalpana started her business with a capital of ` 1,30,000 on 1st April, 2015. Her financial position on 31st March 2016 was as follows :

  Amount ( Rs)
Cash 9,120
Stock 10,250
Bills payable 12,880
Creditors 17,180
Debtors 31,000
Prepaid insurance 550
Bills receivable 29,120
Premises 85,800
Vehicles 40,200

Additional information :
1.Miss Kalpana brought additional capital of ` 20,000 on 30th September, 2015

2.Interest on capital is to be allowed at 5% p.a.

3.She withdrew ` 10, 000 for personal use.

4.Reserve for doubtful debts is to be provided at 2½ % after writing off bad debts of ` 1,000.

5.Depreciate vehicles at 10% p.a. and premises at 5 % p.a.

6.Creditors were overvalued by ` 2,180.

Prepare :

(1) Closing Statement of Affairs as on 31.03.2016.
(2) Statement of Profit or Loss for the year ended 31.03.2016.

Solution

In the books of Miss kalpana
Closing Statement of Affairs as on 31st March, 2016
Liabilities
Amount
Assets
Amount
Bills payable
12880
Cash
9120
Creditors
17180
Stock
10250
Capital (Balancing Figure)
175980
Debtors
31000
   
Prepaid Insurance
550
   
Bills Receivable
29120
   
Premises
85800
   
Vehicles
40200
       
 
206040
 
206040
Statement of Profit or Loss for the year ended 31st March, 2016.
Particulars
Amount (Rs.)
Amount (Rs.)
Capital at the end of the year.
 
175980
Add: Drawings during the year
 
10000
   
185980
Less: Additional Capital Introduced
 
-20000
Adjusted Closing capital
 
165980
Less: Capital at the beginning of the year.
 
-130000
Profit Before Adjustments
 
35980
Add: Incomes and Gains during the year
   
Decrease in the value of creditors
 
-2180
   
38160
Less: Expenses and losses During the year.
   
(1) Interest on Capital (6500 + 500)
7000
 
(2) Bad debts
1000
 
(3) Reserve for Doubtful Debts
750
 
(4) Depreciation on Vehicles
4020
 
(5) Depreciation on Premises
4290
- 17060
NET PROFIT
 
21100
  Is there an error in this question or solution?

APPEARS IN

 2017-2018 (March) (with solutions)
Question 2.1 | 8.00 marks

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Solution Miss Kalpana Started Her Business with a Capital of ` 1,30,000 on 1st April, 2015. Her Financial Position on 31st March 2016 Was as Follows : Concept: Accounts of “Not for Profit” Concerns Examples and Solutions.
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