Question Bookmark Mr. John keeps his books according to single entry system. Following are the details of his business: Particulars 01.04.2012 Amount (Rs.) 31.03.2013 Amount (Rs.) Machinery 70,000 70,000 Furniture 10,000 20,000 Stock 36,000 42,000 Sundry debtors 72,200 88,400 Cash in hand 3,000 4,100 Cash at bank 42,000 52,300 Sundry creditors 54,500 60,400 Addition information: (1) Mr. John had introduced Rs. 20,000 as additional capital on 1 st October, 2012. (2) Mr. John had withdrawn Rs. 15,000 for his personal use during the year. (3) Additions to furniture were made on 1 st October, 2012. (4) Deprecate machinery at 10% p.a. and further at 20% p.a. Prepare: (1) Opening and closing Statement of Affairs. (2) Statement of Profit or Loss for the year ending on 31 st March, 2013.

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Solution

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Opening Statement of Affairs

As on 1.4.2012

Liabilities	Amount	Assets	Amount
Capital (bal. fig.)	178700	Machinery	70000
Sundry Creditors	54500	Furniture	10000
		Stock	36000
		Sundry Debtors	72200
		Cash in hand	3000
		Cash at bank	42000
	233200		233200

 

Closing Statement of Affairs

As on 31.3.2013

Liabilities	Amount	Assets	Amount
Capital (bal.fig.)	216400	Machinery	70000
Sundry creditors	60400	Furniture	20000
		Stock	42000
		Sundry Debtors	88400
		Cash in hand	4100
		Cash at bank	52300
	276800		276800

 

Statement of Profit and Loss

For the year ending 31.03.2013

Particulars	Amount
Closing capital	216400
Less: Additional Capital	(20000)
Add: Drawings	15000
Adjusted closing capital	211400
Less: Opening capital	(178700)
Profit before adjustment	32700
Less: depreciation on machinery	(7000)
Depreciation on furniture (2000 + 1000)	(3000)
Profit after adjustment	22700