Question

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During the year Shri RAjesh has withdrawn ₹ 10000 for his private purpose and taken goods of ₹ 2000 for household use.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.

Answer 1

In the books of Shri Rajesh.

Statement of Affairs as on 1.4.2012

Liabilities	Amount.	Assets	Amount
Creditors	15000	Cash in hand	10000
Capital at the Beginning of the year. [Bal. Fig.]	133000	Cash at Bank	20000
		Stock	16000
		Furniture	18000
		Plant and Machinery	60000
		Debtors	24000
	148000		148000

Statement of Affairs as on 31. 3. 2013

Liabilities	Amount.	Assets	Amount
Creditors	18000	Cash in Hand	16000
Capital at the end of the year. [Bal. Fig.]	196000	Cash at Bank	36000
		Stock	24000
		Furniture	18000
		Plant and Machinery	90000
		Debtors	30000
	214000		214000

Statement of Profit Or Loss of Shri Rajesh
for the year ended 31. 3. 2013

Particulars	Amount. Rs.	Amount. Rs.
Capital at the end of the year.		196000
Add: Drawings
Cash	10000
Goods	2000	12000
		208000
Less: Additional Capital Introduced		2000
Adjusted Closing Capital		206000
Less: Capital at the beginning of the year.		133000
Profit Before Adjustments.		73000
Add: Incomes and Gains During the year.		-
Less: Expenses and Losses During the year
Depreciation of Machinery	7500
Depreciation on Furniture	900	8400
Net Profit of the year		64600