Maharashtra State BoardHSC Arts 12th Board Exam
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Mrs. Meena of Bilaspur Has Not Kept Proper Books of Accounts, Following Information is Provided to You. - Book Keeping and Accountancy

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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.
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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
  Is there an error in this question or solution?

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