Question

Mr. Govind keeps his books by single entry method and disclosed the following information of his business . 

Particulars	1.4.12	31.3.13
Investments	-	30000
Bills Payable	-	18000
Creditors	52500	69000
Furniture	15000	15000
Debtor	60,000	90,000
Stock in Trade	30,000	37500
Cash at Bank	36,000	54,000

Additional Information :
(1) Mr. Govind transferred Rs. 300 per month during first half year and Rs. 200 each month for the remaining period from his business to his personal account. He also took goods of Rs. 700 for private use.
(2) Mr. Govind sold his personal assets for Rs. 7000 and brought the proceeds into his business.
(3) Furniture is to be depreciated by 10%.
(4) Provide R.D.D. at 5% for debtors.

Prepare : Opening and Closing Statement of affairs and Statement of Profit or Loss for the year ended 31st March 2013.

Answer 1

In the books of Mr. Govind
Statement of Affairs as on 1.4.2012

 

Liabilities	Amount.	Assets	Amount
Creditors	52500	Furniture	15000
Capital at the beginning of the year. [Bal. Fig.]	88500	Debtors	60000
		Stock in Trade	30000
		Cash at Bank	36000
	141000		141000

 

Statement of Affairs as on 31. 3. 2013

 

Liabilities	Amount.	Assets	Amount
Bills Payable	18000	Investments	30000
Creditors	69000	Fruniture	15000
Capital at the End of the year [Bal. Fig.]	139500	Debtors	90000
		Stock in Trade	37500
		Cash at Bank	54000
	226500		226500

 

Statement of Profit Or Loss of Mr. Govind for the year ended 31. 3. 2014

 

Particulars	Amount. Rs.	Amount. Rs.
Capital at the end of the year.		139500
Add: Drawings
For the first Half Year = 6 months x Rs. 300	1800
For the next half year = 6 months x Rs. 200	1200
Goods withdrawn for personal use	700	3700
		143200
Less: Additional Capital Introduced		-7000
Adjusted Closing Capital.		136200
Less: Capital at the beginning of the year.		- 88500
Profit Before Adjustments		47700
Add: Incomes and Gains During the year		-
Less: Expenses and Losses During the year.
(i) Depreciation On Furniture = 15000 x 10%	1500
(ii) R.D.D. @ 5% on Debtors = 90000 x 5%	4500	-6000
Net profit for the year		41700