Question

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 1^st 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3) He had also withdrawn Rs 30,000 for Rent of his residential flat.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 1^st 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 31^st March, 2012.

Answer 1

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.