Question

Mr. Balasaheb is dealing in the business of fruits. He maintains his accounting record with single entry. The following figures are taken from his record.

Particulars	Balance as on 1.4.2004	Balance as on 31.3.2005
Land and Buildin Machinery Furniture Sundry Debtors Stock Cash Balance Bills Receivable Sundry Creditors Bank Overdraft Bank Balance	40,000 30,000 10,000 20,000 10,000 5,000 5,000 25,000 5,000 –	50,000 40,000 10,000 40,000 25,000 15,000 5,000 25,000 – 10,000

Mr. Balasaheb introduced Rs. 10,000 as further capital.

He spent Rs. 45,000 from the business for his daughter's marriage.

Depreciate Land and Building by Rs. 5,000

Create 5% Reserve for Doubtful Debts on Sundry Debtors.

Answer 1

In the books of Mr. Balasaheb
Statement of Affairs as on March 31, 2004
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors	25,000	Cash in Hand	5,000
Bank Overdraft	5,000	Land & Building	40,000
Capital (Balancing Figure)	90,000	Machinery	30,000
		Furniture	10,000
		Stock	10,000
		Debtors	20,000
		Bills Receivable	5,000
	1,20,000		1,20,000

 

Statement of Affairs as on March 31, 2005
Liabilities	Amount (Rs)	Assets			Amount (Rs)
Creditors	25,000	Cash in Hand			15,000
Capital (Balancing Figure)	1,63,000	Cash at Bank			10,000
		Machinery			40,000
		Land & Building		50,000
		Less: Depreciation		5,000	45,000
		Furniture			10,000
		Stock			25,000
		Debtors	40,000
		Less: Provision for Doubtful Debts @ 5%	2,000		38,000
		Bills Receivable			5,000
	1,88,000				1,88,000

 

Statement of Profit or Loss for the year ended March 31,2005
Particulars		Amount (Rs)
Capital at the end of the year 31.03.05		1,63,000
	Add: Drawings made during the year	45,000
	Less: Additional capital introduced during the year	10,000
Adjusted capital at the end of the year 31.03.05		1,98,000
	Less: Capital in the beginning of the year 31.03.04	90,000
Profit or Loss for the year

Note: Amount spent on daughter’s marriage will be treated as drawings.