# Mr. Anil Keeps His Books by Single Entry Method. Following Are the Details of His Business - Book Keeping and Accountancy

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 Anil has withdrawn Rs. 10000 for his private purpose and bought goods of Rs. 2000 for household use.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

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2014-2015 (March)

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