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Question
Miss Kalpana started her business with a capital of 1,30,000 on 1st April, 2015. Her financial position on 31st March 2016 was as follows:
| Amount ( Rs) | |
| Cash | 9,120 |
| Stock | 10,250 |
| Bills payable | 12,880 |
| Creditors | 17,180 |
| Debtors | 31,000 |
| Prepaid insurance | 550 |
| Bills receivable | 29,120 |
| Premises | 85,800 |
| Vehicles | 40,200 |
Additional information :
1. Miss Kalpana brought additional capital of 20,000 on 30th September, 2015
2. Interest on capital is to be allowed at 5% p.a.
3. She withdrew 10, 000 for personal use.
4. Reserve for doubtful debts is to be provided at 2½ % after writing off bad debts of 1,000.
5. Depreciate vehicles at 10% p.a. and premises at 5 % p.a.
6. Creditors were overvalued by 2,180.
Prepare :
(1) Closing Statement of Affairs as on 31.03.2016.
(2) Statement of Profit or Loss for the year ended 31.03.2016.
Solution
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Bills payable
|
12,880
|
Cash
|
9,120
|
|
Creditors
|
17,180
|
Stock
|
10,250
|
|
Capital (Balancing Figure)
|
1,75,980
|
Debtors
|
31,000
|
|
Prepaid Insurance
|
550
|
||
|
Bills Receivable
|
29,120
|
||
|
Premises
|
85,800
|
||
|
Vehicles
|
40,200
|
||
|
2,06,040
|
206040
|
for the year ended 31st March,2016
|
Particulars
|
Amount (Rs.)
|
Amount
(Rs.) |
|
Capital at the end of the year.
|
1,75,980
|
|
|
Add: Drawings during the year
|
10,000
|
|
|
1,85,980
|
||
|
Less: Additional Capital Introduced
|
(-20000)
|
|
|
Adjusted Closing capital
|
1,65,980
|
|
|
Less: Capital at the beginning of the year.
|
(-1,30,000)
|
|
|
Profit Before Adjustments
|
35,980
|
|
| Less: Depreciation on vehicle | 4020 | 8310 |
| depreciation on-premises | 4290 | |
|
|
27670
|
|
| Less: Interest on capital | 6500 | 8250 |
| Less: Bad debts | 1000 | |
| Less: RDD | 750 | |
| 19420 | ||
| Add: Creditors overruled Net Profit for the year | 2180 | |
|
NET PROFIT
|
21,600
|
| Liabilities | Amount | Assets | Amount | ||
| Bills Payable | 12880 | Cash | 9120 | ||
| Creditors | 17180 | 15060 | Stock | 10250 | |
| El overvalued | 2180 | Debtors | 31000 | 29250 | |
| Capital | 130000 | 168100 | (-) Bad debts | 1000 | |
| Add: Capital Intratued | 20000 | (-) RDD | 750 | ||
| 150000 | Prepaid insurance | 550 | |||
| Add: Net Profit | 21600 | Bills receivable | 29120 | ||
| Add: interest capital | 6500 | Premises | 85800 | 81510 | |
| 178100 | (-) Depreciation | 4290 | |||
| Less: Drawing | 10000 | Vehicle | 40200 | 36180 | |
| (-) Depreciation | 4020 | ||||
| 195980 | 195980 | ||||
Opening Capital = 130,000 x `5/100` = 6,500
Debtors = 31,000
(-) Bad debts = 1,000
= 30,000
(-) R.D.D.[ 2`1/2`% on 30,000] = 750
APPEARS IN
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Assets |
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|
Payments |
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|
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| Receipts |
Amount
(Rs.)
|
Amount
(Rs.)
|
Payments |
Amount
(Rs.)
|
Amount
(Rs.)
|
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4,500 | ||
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|
Amount
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|
Payments |
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|
Amount
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Dr. Cr.
| Receipts |
Amount
(Rs.)
|
Amount
(Rs.)
|
Payments |
Amount
Rs
|
Amount
Rs
|
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