Particulars
|
31.3.2012
|
31.3.2013
|
Amount (Rs. )
|
Amount (Rs.)
| |
Machinery
|
50000
|
50000
|
Furniture
|
50000
|
30000
|
Debtors
|
18000
|
25000
|
Creditors
|
18000
|
20000
|
Stock
|
30000
|
42000
|
Outstanding Expenses
|
1500
|
-
|
Prepaid Expenses
|
-
|
500
|
Cash at bank
|
28000
|
40000
|
Further information:
(1) Mrs. Meena introduced additional capital as on 1st October, 2012 by selling her personal car is Rs. 10,000.
(2) She paid her daughter's college fees from business bank account Rs. 3,000.
(3) Depreciate machinery by 5% p.a.
(4) Provide 2% on debtors for Bad and Doubtful debts.
(5) Interest on capital is to be provided @ 5% p.a. and on drawings @ 5% p.a.
Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March, 2013.
Solution:
In the books of Mrs. Meena
Opening Statement of Affairs as on 31. 03. 2012
Liabilities
|
Amount (Rs)
|
Assets
|
Amount (Rs.)
|
Creditors
|
18, 000
|
Machinery
|
50, 000
|
Outstanding Expenses
|
1, 500
|
Furniture
|
50, 000
|
Capital (Balancing Figure)
|
1, 56, 500
|
Debtors
|
18, 000
|
Stock
|
30, 000
| ||
Cash at Bank
|
28, 000
| ||
1, 76, 000
|
1, 76, 000
|
Closing Statement of Affairs as on 31. 03. 2013
Liabilities
|
Amount (Rs.)
|
Assets
|
Amount (Rs.)
|
Creditors
|
20,000
|
Machinery
|
50, 000
|
Capital (Balancing Figure)
|
1, 67, 500
|
Furniture
|
30, 000
|
Debtors
|
25, 000
| ||
Stock
|
42, 000
| ||
Prepaid Expenses
|
500
| ||
Cash at Bank
|
40, 000
| ||
1, 87, 500
|
1, 87, 500
|
Statement of Profit or Loss or Mrs. Meena for the year ended 31. 03. 2013
Particulars
|
Amount (Rs.)
|
Amount (Rs.)
|
Capital at the end of the year.
|
1, 67, 500
| |
Add: Drawings during the year
|
+ 3000
| |
1, 70, 500
| ||
Less: Capital at the beginning of the year
|
- 1, 56, 500
| |
14, 000
| ||
Additional capital introduced
|
- 10, 000
| |
Profit Before Adjustments
|
4000
| |
Add: Income and Gains during the year.
| ||
Interest on Drawings (3000 x 5% x 6 months)
|
75
| |
Profit before adjustments.
|
4075
| |
Less: Expenses and Losses During the year.
| ||
Depreciation: On Machinery
50,000 x 5%
|
- 2500
| |
1575
| ||
Interest on Capital:
On Opening Capital : 156500 x 5%
|
7825
| |
On Additional Capital : 10000 x 5% x 6 months
|
250
|
- 8075
|
-6500
| ||
Reserve for Doubtful Debts
On debtors : 25, 000 x 2%
|
- 500
| |
Net Loss for the year.
|
- 7000
|