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Question
Mr. Anil keeps his books by single entry method. Following are the details of his business
| Particulars |
01.04.2012 Amount (Rs.) |
31.03.2013 Amount (Rs.) |
| Cash in Hand |
10000 |
16000 |
| Cash at Bank | 20000 | 36000 |
| Stock | 16000 | 24000 |
| Furniture | 18000 | 18000 |
| Plant and Machinery | 60000 | 90000 |
| Creditors | 15000 | 18000 |
| Debtors | 24000 | 30000 |
During the year Mr. Anil has withdrawn Rs. 10000 for his private purpose and bought goods of Rs. 2000 for household use.
On 1st October 2012, he sold his household furniture for Rs. 2000 and deposited the same amount in the business bank account.
Provide depreciation on machinery @10% p.a. (assuming additions were made on 1st October, 2012) and on furniture @5%.
Prepare:
(a) Opening Statement of Affairs.
(b) Closing Statement of Affairs.
(c) Statement of Profit or Loss for the year ended 31st March 2013.
Solution
Statement of Affairs as on 01.04.2012 and 31.03.2013
| Liabilities | 01.04.2012 | 31.03.2013 | Assets | 01.04.2012 | 31.03.2013 |
|
Capital (Balancing fig.) |
133000
|
196000
|
Cash in hand | 10000 | 16000 |
| Cash at bank | 20000 | 36000 | |||
| Stock | 16000 | 24000 | |||
| Creditors | 15000 | 18000 | Furniture | 18000 | 18000 |
| Plant and Machinery | 60000 | 90000 | |||
| Debtors | 24000 | 30000 | |||
| Total | 148000 | 214000 | Total | 148000 | 214000 |
Statement of Profit or Loss for the year ended 31.03.2013
| Particulars | Amount | Amount |
| Capital at the end of the year | 196000 | |
|
Add:- Drawings Private Purpose Goods for household use |
10000 2000 |
12000 |
| 208000 | ||
|
Less:- Additional Capital Introduced (Sold household furniture and used for business) |
-2000
|
|
| 206000 | ||
| Less:- Capital at the beginning of the year | -133000 | |
| Trading Profit | 73000 | |
|
Less:- Depreciation On Machinery @10%p.a. On Opening Balance:-60000*10%*12 months=6000 On Addition:- 30000*10%*6 months=1500
On Furniture:- 18000*5%*12 months=900 Total Depreciation = 6000 + 1500 + 900 |
-8400
|
|
| Net Profit | 64600 |
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RELATED QUESTIONS
The system of accounting normally suitable for a small business organization.
Single Entry System is more popular for ____.
Mr. Mangesh is dealing in business. He maintains his accounting with Single Entry. The following are details of his business.
| Particulars | 01-04-2012 | 31-03-2013 |
| Land and Building | 40,000 | 50,000 |
| Machinery | 30,000 | 40,000 |
| Furniture | 10,000 | 10,000 |
| Debtors | 20,000 | 40,000 |
| Stock | 10,000 | 25,000 |
| Cash Balance | 5,000 | 15,000 |
| Bills Receivable | 5,000 | 5,000 |
| Creditors | 25,000 | 25,000 |
| Bank Overdraft | 5,000 | - |
| Bank Balance | - | 10,000 |
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Prepare: Opening Statement of affairs, Closing Statement of affairs and the statement of profit or loss.
Mrs. Ankita keeps her books under Single Entry System and gives the following information.
| Particulars | 01-04-2011 | 31-03-2012 |
| Investments | - | 12,000 |
| Bank Overdraft | - | 10,000 |
| Bills Payable | 5,000 | 8,000 |
| Creditors | 26,500 | 31,500 |
| Furniture | 9,000 | 19,000 |
| Debtors | 35,000 | 50,000 |
| Stock in Trade | 15,000 | 19,000 |
| Bank Balance | 18,000 | 28,000 |
Mrs. Ankita withdrew Rs 4,000 for her personal use. She received Rs 15,000 from her father as gift, which she brought into the business.
Additional furniture was purchased on 1st October 2011. Depreciate furniture by 10% p.a.Write off Rs 1,000 as bad and provide 5% R.D.D. on debtors.
Find the profit or loss of her business for the year ended 31st March, 2012.
Mahendra Keeps his books by Single Entry System. His position on 1st April 2012, was as follows : Cash in Hand Rs 7,900, Cash at Bank Rs 20,000, Debtors Rs 18,000. Stock Rs 29,000, Motor Car Rs 5,000, Bank Loan Rs 18,000 and Outstanding Expenses Rs 2,700.
On 1st October, 2012 Mahendra introduced Rs 10,000 as further capital in the business and withdrew on the same date Rs 7,000 out of which he spent Rs 5,000 on the purchase of a Machinery for the business.
On 31st March 2013 his position was as follows: Cash in Hand Rs 7,600, Cash at Bank Rs 22,000, Stock Rs 30,000 Debtors Rs 25,700, Furniture Rs 6,000, Creditors Rs 25,200, and prepaid expenses Rs 200.
Prepare a Statement showing the Profit or Loss made by him during the year ended 31st March, 2013 and Opening and Closing Statement of affairs. Considered the following adjustments also.
1) Depreciate Motor Car and Furniture @ 10% p.a. Furniture was purchased on 1st Oct., 2012.
2) Provide Rs 1,200 for Bad debts and provide 5% R.D.D.
3) Goods taken for personal use by Mahendra amounting to Rs 1,500
4) Provide interest on capital @ 10% p.a.
Mr. Suhas a small trader provides you the following details about his business.
| Particulars | 01-04-2011 | 31-03-2012 |
| Debtors | 45,000 | 50,000 |
| Creditors | 60,000 | 70,000 |
| Computer | 60,000 | 120,000 |
| 10% Govt. Bonds | - | 10,000 |
| Bank Overdraft | 80,000 | 40,000 |
| Motor Van | 80,000 | 80,000 |
| Furniture | 10,000 | 10,000 |
| Stock | 65,000 | 80,000 |
| Cash in Hand | 2,000 | 8,000 |
| Bills Receivable | 60,000 | 80,000 |
Additional Information:
1) On 1st October, 2012 he withdrew Rs 40,000 for his personal use.
2) Charge interest on drawings Rs 2,000.
3) He had also withdrawn Rs 30,000 for Rent of his residential flat.
4) Depreciate furniture by 10% and write off Rs 2,000 from motor van.
5) 10% Government Bonds were purchased on 1st October, 2012.
6) Allow interest on capital at 10% p.a.
7) Rs 2,000 is written off as bad debts and provide 5% R.D.D. on Debtors.
Prepare: Opening statement of affairs, closing statement of affairs and statement of profit or loss for the year ended 31st March, 2012.
Mr. Govind keeps his books on single entry system and disclosed the following information of his business.
| Particulars | 01-04-2010 | 31-03-2011 |
| Investments | - | 30,000 |
| Bills Payable | - | 18,000 |
| Creditors | 52,500 | 69,000 |
| Furniture | 15,000 | 15,000 |
| Debtors | 60,000 | 90,000 |
| Stock in Trade | 30,000 | 37,500 |
| Cash at Bank | 36,000 | 54,000 |
Additional Information
1) Mr. Govind transferred Rs 300 per month during first half year and Rs 200 each month for the remaining period from his business to his personal account. He also took goods of Rs 700 for private use.
2) Mr. Govind sold his personal asset for Rs 7,000 and brought the proceeds into his business.
3) Furniture to be depreciated by 10%
4) Provide R.D.D.5% on Debtors.
Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March 2011.
Sun and Moon are partners in a firm sharing profit and losses in the ratio of 3:2. They kept their books under single entry system. On 1st April 2010 the following statement of affairs was extracted from their Books.
| Statement of Affairs as on 1st April 2010 | |||
| Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
| Capitals: | Plant and Machinery | 15,000 | |
| Sun | 12,500 | Stock | 10,000 |
| Moon | 10,000 | Debtors | 17,500 |
| Creditors | 15,000 | Cash in Hand | 7,500 |
| Bills Payable | 12,500 | ||
| 50,000 | 50,000 | ||
On 31st March 2011 theirs assets and liabilities were as follows. Plant and Machinery Rs 44,000 stock Rs 32,000 cash in hand Rs 12,000 creditors Rs 8,000 Debtors Rs 20,000 Bills payable Rs 15,000 Drawings during the year Sun Rs 5,000 and Moon Rs 3,000.
Prepare: Closing statement of affairs and statement of profit or Loss for the year ended 31st March 2011 after considering the following adjustments.
1) Plant is found overvalued by 10% and stock is found undervalued by 20%.
2) R.D.D. is to be created at 10% on Debtors.
3) Interest on Capital is to be allowed at 10% p.a. and 10% p.a. on Drawings
A and B are in Partnership. Their Capitals on 1st April 2010 were Rs 30,000 each. The assets and liabilities as on 31st March 2011 were as follows. Cash in hand Rs 2,400, Cash at Bank Rs 16,000 Bill Receivable Rs 4,000, Debtors Rs 28,600 Stock Rs 26,000. Machinery Rs 14,000, furniture Rs 8,000, Bills Payable Rs 3,000 Sundry creditors Rs 6,000 Outstanding salary Rs 800.
Additional Information:
1) Provide Rs 600 as Bad Debts and 5% R.D.D.
2) Depreciate furniture @ 5% p.a. and Machinery @ 10% p.a.
3) Stock is found undervalued by Rs 2,000.
4) Sundry creditors are found overvalued by Rs 1,000.
5) Prepaid Insurance Rs 2,000.
6) Additional capital introduced by partners Rs 4,000 each.
7) Drawings of ‘A’ Rs 3,000 and ‘B’ Rs 2,000 calculate the profit for the year ended 31st March 2011.
Asha and Usha were partners sharing profits and losses in the ratio of 2:1. Prepare their statement Profit or Loss for the year ended 31st March, 2012 from the following statement of Affairs as on 31st March, 2011.
| Liabilities |
Amount (Rs.)
|
Assets |
Amount (Rs) |
| Creditors | 33,000 | Cash at Bank | 6,000 |
| Bills Payable | 9,000 | Cash in Hand | 2,000 |
| Capitals: Asha Usha |
62,000 32,000 |
Building | 41,000 |
| Machinery | 21,000 | ||
| Furniture | 10,000 | ||
| Stock | 18,000 | ||
| Debtors | 25,000 | ||
| Bills Receivable | 13,000 | ||
| 136,000 | 136,000 |
The assets and liabilities as on 31st March 2012 were:
Sundry creditors Rs 35,000 Bill Receivable Rs 18,000 Bills payable Rs 15,000 cash in hand Rs 3,000, Stock Rs 32,000 Cash of bank Rs 6,000 Debtors Rs 38,000. There were no changes in fixed assets.
Further Information:
1) Asha and Usha had drawn Rs 10,000 and Rs 8,000 respectively for personal use.
2) They also brought additional capital of Rs 6,000 and Rs 4,000 respectively.
3) Building to be depreciated by 5% and machinery and furniture at 10%.
4) Charge interest at 10% p.a. on opening capitals and allow interest on drawings of Asha and Usha were Rs 700 and Rs 500 respectively.
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 |
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| 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.
Mrs. Shailaja keeps her books under single entry system and gives the following information.
| Particulars | 1.4.2012 | 31.3.2013 |
| Amount (Rs.) | Amount (Rs.) | |
| Investments | - | 12,000 |
| Bank overdraft | - | 10,000 |
| Bills payable | 5,000 | 8,000 |
| Creditors | 26,500 | 31,500 |
| Furniture | 9,000 | 19,000 |
| Debtors | 35,000 | 50,000 |
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| Bank Balance | 18,000 | 28,000 |
Shri Rajesh keeps his books by single entry method .
Following are the details of his business :
| Particulars | 01.04.2012 Amount (₹) |
31.03.2013 Amount (₹) |
| Cash in hand | 10000 | 16000 |
| Cash at bank | 20000 | 36000 |
| Stock | 16000 | 24000 |
| Furniture | 18000 | 18000 |
| Palnt and machinery | 60000 | 90000 |
| Creditors | 15000 | 18000 |
| Debtors | 24000 | 30000 |
During the year Shri RAjesh has withdrawn ₹ 10000 for his private purpose and taken goods of ₹ 2000 for household use. On 1st October 2012 , he sold his household furniture for ₹ 2000 and deposited the same amount in the business bank account.
Provide depreciation on machinery at 10% p.a. (assuming additions were made on 1st October , 2012) and furniture at - 5 % p.a.
Prepare : Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March , 2013.
Shri Rajesh keeps his books by single entry method .
Following are the details of his business :
| Particulars | 01.04.2012 Amount (₹) |
31.03.2013 Amount (₹) |
| Cash in hand | 10000 | 16000 |
| Cash at bank | 20000 | 36000 |
| Stock | 16000 | 24000 |
| Furniture | 18000 | 18000 |
| Palnt and machinery | 60000 | 90000 |
| Creditors | 15000 | 18000 |
| Debtors | 24000 | 30000 |
During the year Shri RAjesh has withdrawn ₹ 10000 for his private purpose and taken goods of ₹ 2000 for household use. On 1st October 2012 , he sold his household furniture for ₹ 2000 and deposited the same amount in the business bank account.
Provide depreciation on machinery at 10% p.a. (assuming additions were made on 1st October , 2012) and furniture at - 5 % p.a.
Prepare : Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March , 2013.
