Question

Shri Pramod keeps his books by single entry method. Following are the details of his business:

Particulars	01.04.2015 Amount (Rs.)	31.03.2016 Amount (Rs.)
Cash in hand	40,000	64,000
Cash at bank	80,000	1,44,000
Stock in trade	64,000	96,000
Furniture	72,000	72,000
Plant and machinery	2,40,000	3,60,000
Creditors	60,000	72,000
Debtors	96,000	1,20,000

During the year, Shri Pramod has withdrawn Rs. 40,000 for his private purpose and taken goods of Rs. 8,000 for household use.
On 1st October, 2015, he sold his household furniture for 8,000 and deposited the same amount in the business bank account.
Provide depreciation on plant and machinery @ 10% p.a. (assuming additions were made on 1st October, 2015) and furniture @ 5% p.a.
Prepare :
Opening and Closing Statement of Affairs and Statement of Profit or Loss for the year ended 31st March, 2016.

Answer 1

In the books of Shri Pramod.
Statement of Affairs as on 1.04.2015 & 31.03.2016

Liabilities	01.04.2015   (Rs.)	31.03.2016     (Rs.)	Assets	01.04.2015     (Rs.)	31.03.2016      (Rs.)
Creditors	60,000	72,000	Cash in hand	40,000	64,000
			Cash at bank	80,000	1,44,000
Capital at the Beginning of the year	5,32,000		Stock in Trade	64,000	96,000
			Furniture	72,000	72,000
Capital at the End of the year		7,84,000	Plant and Machinery	2,40,000	3,60,000
			Debtors	96,000	120,000
	5,92,000	8,56,000		5,92,000	8,56,000

Statement of Profit or Loss for the year Ended 31.03.2016

Particulars	Amount (Rs.)	Amount (Rs.)
Capital at the End of the year		7,84,000
Add: Drawings
Cash withdrawal for Personal use	40,000
Goods Withdrawn	8,000	48,000
		8,32,000
Less: Additional Capital introduced [ 1st October 2015]		(8,000)
		8,24,000
Less: Capital at the beginning of the year		(5,32,000)
Profit Before Adjustrnents.		2,92,000
Less: Expenses and Losses During the year
Depreciation on Plant and Machinery:
On opening Balance of Plant  240,000 x 10%	24000
On Additional Machinery (360000 - 240000) = 120000 x 10% x 6 months.	6000
On Furniture 72000 x 5%	3600	(33600)
Net Profit		258400