Mr. Anil keeps his books by single entry method. Following are the details of his business
| Particulars |
01.04.2012 Amount (Rs.) |
31.03.2013 Amount (Rs.) |
| Cash in Hand |
10000 |
16000 |
| Cash at Bank | 20000 | 36000 |
| Stock | 16000 | 24000 |
| Furniture | 18000 | 18000 |
| Plant and Machinery | 60000 | 90000 |
| Creditors | 15000 | 18000 |
| Debtors | 24000 | 30000 |
During the year Mr. Anil has withdrawn Rs. 10000 for his private purpose and bought goods of Rs. 2000 for household use.
On 1st October 2012, he sold his household furniture for Rs. 2000 and deposited the same amount in the business bank account.
Provide depreciation on machinery @10% p.a. (assuming additions were made on 1st October, 2012) and on furniture @5%.
Prepare:
(a) Opening Statement of Affairs.
(b) Closing Statement of Affairs.
(c) Statement of Profit or Loss for the year ended 31st March 2013.
Solution
Statement of Affairs as on 01.04.2012 and 31.03.2013
| Liabilities | 01.04.2012 | 31.03.2013 | Assets | 01.04.2012 | 31.03.2013 |
|
Capital (Balancing fig.) |
133000
|
196000
|
Cash in hand | 10000 | 16000 |
| Cash at bank | 20000 | 36000 | |||
| Stock | 16000 | 24000 | |||
| Creditors | 15000 | 18000 | Furniture | 18000 | 18000 |
| Plant and Machinery | 60000 | 90000 | |||
| Debtors | 24000 | 30000 | |||
| Total | 148000 | 214000 | Total | 148000 | 214000 |
Statement of Profit or Loss for the year ended 31.03.2013
| Particulars | Amount | Amount |
| Capital at the end of the year | 196000 | |
|
Add:- Drawings Private Purpose Goods for household use |
10000 2000 |
12000 |
| 208000 | ||
|
Less:- Additional Capital Introduced (Sold household furniture and used for business) |
-2000
|
|
| 206000 | ||
| Less:- Capital at the beginning of the year | -133000 | |
| Trading Profit | 73000 | |
|
Less:- Depreciation On Machinery @10%p.a. On Opening Balance:-60000*10%*12 months=6000 On Addition:- 30000*10%*6 months=1500
On Furniture:- 18000*5%*12 months=900 Total Depreciation = 6000 + 1500 + 900 |
-8400
|
|
| Net Profit | 64600 |
