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Opening Statement of Affairs, Closing Statement of Affairs and Statement of Profit Or Loss for the Year Ended 31st March, 2012. - Book Keeping and Accountancy

Ledger

Mr. Suhas a small trader provides you the following details about his business.

Particulars 01-04-2011 31-03-2012
Debtors 45,000 50,000
Creditors 60,000 70,000
Computer 60,000 120,000
10% Govt. Bonds - 10,000
Bank Overdraft 80,000 40,000
Motor Van 80,000 80,000
Furniture 10,000 10,000
Stock 65,000 80,000
Cash in Hand 2,000 8,000
Bills Receivable 60,000 80,000

Additional Information:
1) On 1st October, 2012 he withdrew Rs 40,000 for his personal use.
2) Charge interest on drawings Rs 2,000.
3) He had also withdrawn Rs 30,000 for Rent of his residential flat.
4) Depreciate furniture by 10% and write off Rs 2,000 from motor van.
5) 10% Government Bonds were purchased on 1st October, 2012.
6) Allow interest on capital at 10% p.a.
7) Rs 2,000 is written off as bad debts and provide 5% R.D.D. on Debtors.
Prepare: Opening statement of affairs, closing statement of affairs and statement of profit or loss for the year ended 31st March, 2012.

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Solution

Statement of Affairs
as on March Apr.01,2011

Liabilities

Amount (Rs)

Assets

Amount (Rs)

Creditors 60,000 Cash in Hand 2,000
Bank Overdraft 80,000 Debtors 45,000
Capital (Balancing Figure) 182,000 Computer 60,000
    Motor Van 80,000
    Furniture 10,000
    Stock 65,000
    Bills Receivable 60,000
  322,000   322,000
Statement of Affairs
As on March 31,2012
Liabilities
Amount (Rs)
Assets
Amount (Rs)
Creditors 70,000 Cash in Hand 8,000
Bank Overdraft 40,000 Debtors 50,000
Capital (Balancing Figure) 3,28,000 Computer 120,000
    Motor Van 80,000
    Furniture 10,000
    Stock 80,000
    Bills Receivables 80,000
    10% Government Bond 10,000
  438,000   438,000

Statement of Profit or Loss
for the year ended March 31,2012

Particulars Amount (Rs.)
Capital at the end of the year 328,000
 Add: Drawings made during the year 70,000
Adjusted capital at the end of the year 398,000
 Less: Capital in the beginning of the year (182,000)
  216,000
Add: Interest on Drawings 2,000
        Interest on 10% Government Bonds 500
Less: Depreciation (Rs 1,000 on Furniture and Rs 2,000 on Motor Van) (3,000)
      Interest on Capital (18,200)
      Bad-Debts (2,000)
      Provision on Debtors ( 48,000 x `5/100` ) (2,400)
                Profit for the year 192,900

Working Notes:
Interest on 10% Government Bonds = 10,000 x `10/100` x `6/12` = Rs. 500.
Concept: Single Entry System Examples and Solutions
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