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Ledger
Mrs. Meena of Bilaspur has not kept proper books of accounts, following information is provided to you.
| Particulars | 31.3.2012 | 31.3.2013 |
| Amount (Rs. ) | Amount (Rs.) | |
| Machinery | 50000 | 50000 |
| Furniture | 50000 | 30000 |
| Debtors | 18000 | 25000 |
| Creditors | 18000 | 20000 |
| Stock | 30000 | 42000 |
| Outstanding Expenses | 1500 | - |
| Prepaid Expenses | - | 500 |
| Cash at Bank | 28000 | 40000 |
Further information:
(1) Mrs. Meena introduced additional capital as on 1st October, 2012 by selling her personal car is Rs. 10,000.
(2) She paid her daughter's college fees from business bank account Rs. 3,000.
(3) Depreciate machinery by 5% p.a.
(4) Provide 2% on debtors for Bad and Doubtful debts.
(5) Interest on capital is to be provided @ 5% p.a. and on drawings @ 5% p.a.
Prepare : Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March, 2013.
(1) Mrs. Meena introduced additional capital as on 1st October, 2012 by selling her personal car is Rs. 10,000.
(2) She paid her daughter's college fees from business bank account Rs. 3,000.
(3) Depreciate machinery by 5% p.a.
(4) Provide 2% on debtors for Bad and Doubtful debts.
(5) Interest on capital is to be provided @ 5% p.a. and on drawings @ 5% p.a.
Prepare : Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March, 2013.
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Solution
In the books of Mrs. Meena
Opening Statement of Affairs as on 31. 03. 2012
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 18000 | Machinery | 50000 |
| Outstanding Expenses | 1500 | Furniture | 50000 |
| Capital (Balancing Figure) | 1,56,500 | Debtors | 18000 |
| Stock | 30000 | ||
| Cash at Bank | 28000 | ||
| 1,76,000 | 1,76,000 |
Closing Statement of Affairs as on 31. 03. 2013
|
Liabilities
|
Amount (Rs.)
|
Assets
|
Amount (Rs.)
|
|
Creditors
|
20,000
|
Machinery
|
50, 000
|
|
Capital (Balancing Figure)
|
1, 67, 500
|
Furniture
|
30, 000
|
|
Debtors
|
25, 000
|
||
|
Stock
|
42, 000
|
||
|
Prepaid Expenses
|
500
|
||
|
Cash at Bank
|
40, 000
|
||
|
1, 87, 500
|
1, 87, 500
|
Statement of Profit or Loss or Mrs. Meena for the year ended 31. 03. 2013
|
Particulars
|
Amount (Rs.)
|
Amount (Rs.)
|
|
Capital at the end of the year.
|
1, 67, 500
|
|
|
Add : Drawings during the year
|
3,000
|
|
|
Less : Capital at the beginning of the year
|
( - 1, 56, 500 )
|
|
|
Additional capital introduced
|
( - 10, 000 )
|
|
|
Profit Before Adjustments
|
4000
|
|
|
Add : Income and Gains during the year.
|
||
|
Interest on Drawings (3000 x 5% x 6 months)
|
75
|
|
|
Profit before adjustments.
|
4075
|
|
|
Less : Expenses and Losses During the year.
|
||
|
Depreciation : On Machinery [ 50,000 x 5% ]
|
2,500 |
|
|
Interest on Capital:
On Opening Capital : 156500 x 5%
|
7825
|
|
|
On Additional Capital : 10000 x 5% x 6 months
|
250
|
|
|
Reserve for Doubtful Debts
On debtors : 25, 000 x 2%
|
500 | (11,075) |
|
Net Loss for the year.
|
- 7000
|
Concept: Preparation of Income and Expenditure Account and Closing Balance Sheet
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