Question

Mrs Asha keeps her books on Single Entry System and gives the following information:

Particulars	31.3.2011 Amount (Rs)	31.3.2012 Amount (Rs)
Cash at Bank	10,000	64,000
Sundry debtors	50,000	80,000
Stock in Trade	60,000	10,0000
Furniture	40,000	40,000
Machinery	1,00,000	1,00,000
Bills Payable	10,000	10,000
Sundry Creditors	30,000	40,000

Mrs. Asha withdrew from business Rs. 30,000 for personal use. She further introduced fresh capital of Rs. 50,000.
Depreciation is to be charged @ 10% p.a. on furniture and machinery.

Prepare:

(a) Statement of affairs as on 31.3.2011

(b) Statement of affairs as on 31.3.2012

(c) Statement of Profit or Loss for the year ending 31.3.2012.

Answer 1

Statement of Affairs as on March 31, 2011
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Bills Payable	10,000	Cash at Bank	10,000
Sundry Creditors	30,000	Sundry Debtors	50,000
Capital (Balancing Figure)	2,20,000	Stock in Trade	60,000
		Furniture	40,000
		Machinery	1,00,000
	2,60,000		2,60,000

 

Statement of Affairs as on March 31, 2012
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Bills Payable	10,000	Cash at Bank	64,000
Sundry Creditors	40,000	Sundry Debtors	80,000
Capital (Balancing Figure)	334000	Stock in Trade	10,0000
		Furniture	40,000
		Machinery	1,00,000
	384000		384000

 

Statement of Profit or Loss for the year ended March 31, 2012
Particulars	Amount (Rs)
Capital at the end of the year March 31, 2012    Add: Drawings made during the year    Less: Additional capital introduced during the year Adjusted capital at the end of the year    Less: Capital at the beginning of the year Mar.31, 2011 Profit before Adjustments    Less: Depreciation on Furniture    Less: Depreciation on Machinery	334,000 30,000 50,000 2,24,000 2,20,000 4,000 4,000 10,000
Net Profit	80,000

Working Notes:

WN1 Calculation of Depreciation

Depreciation on Furniture = 40,000×10/100= Rs 4,000

Depreciation on Machinery = 1,00,000×10/100= Rs 10,000