Mr. Suhas a small trader provides you the following details about his business.
|10% Govt. Bonds||-||10,000|
|Cash in Hand||2,000||8,000|
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3) He had also withdrawn Rs 30,000 for Rent of his residential flat.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.
|Creditors||60,000||Cash in Hand||2,000|
|Capital (Balancing Figure)||182,000||Computer||60,000|
As on March 31,2012
|Creditors||70,000||Cash in Hand||8,000|
|Capital (Balancing Figure)||3,28,000||Computer||120,000|
|10% Government Bond||10,000|
Statement of Profit or Loss
for the year ended March 31,2012
|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)|
|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)|
|Provision on Debtors ( 48,000 x `5/100` )||(2,400)|
|Profit for the year||192,900|
Interest on 10% Government Bonds = 10,000 x `10/100` x `6/12` = Rs. 500.
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