Question

10] Shri Shivaraj does not kept his books under Double Entry System.
Following information is available from his records.
Particulars
01-04-2015 31-03-2016
Rs.
Rs.
Cash
8,000
20,000
Bills Receivable
10,000
Debtors
20,000
30,000
Stock
25,000
28,000
Creditors
15,000
16,000
Bills Payable
5,000
6,000
Furniture
12,000
12,000
Bank Overdraft
6,000
8,000
During the year Shivaraj withdrew Rs.500 per month from his business for
his private use and also used goods worth Rs. 1,000 for his household
purpose. He had brought in Rs.5,000 as extra Capital during the year.
Adjustments :
1) Furniture is to be depreciated by 10%
2] Provide Interest on Capital at 5% on Opening Capital
3] PBD is to be created at 5% on Debtors
4] Commission Receivable Rs. 1,200
Prepare :- 1) Statement of Profit or Loss for the year
2) Redraft the Statement of Affairs as on 31-03-2016.​

Answer 1

Answer:

I don't know the answer

Explanation:

I don't know the answer give the answer

Answer 2

                         Profit or Loss: 52,700 - 12,950 = 39,750 (Profit)

Given -                   Adjustments :

1) Furniture is to be depreciated by 10%

2] Provide Interest on Capital at 5% on Opening Capital

3] PBD is to be created at 5% on Debtors

4] Commission Receivable Rs. 1,200

To find -

1) Statement of Profit or Loss for the year

2) Redraft the Statement of Affairs as on 31-03-2016.

Solution -

1)Statement of Profit or Loss for the year:

Income:

-Cash: 20,000 - 8,000 = 12,000

-Bills Receivable: 10,000

-Debtors: 30,000 - 1,500 (PBD) = 28,500

-Commission Receivable: 1,200

Total Income: 52,700

Expenses:

-Stock: 28,000 - 25,000 = 3,000

-Creditors: 16,000 - 15,000 = 1,000

-Bills Payable: 6,000 - 5,000 = 1,000

-Furniture (Depreciation): 12,000 x 10% = 1,200

-Interest on Capital: 5,000 x 5% = 250

-Private withdrawals: 500 x 12 = 6,000

-Household goods used: 1,000

Total Expenses: 12,950

Profit or Loss: 52,700 - 12,950 = 39,750 (Profit)

2)Redrafted Statement of Affairs as on 31-03-2016:

Assets:

-Cash: 20,000

-Bills Receivable: 10,000

-Debtors: 30,000 - 1,500 (PBD) = 28,500

-Commission Receivable: 1,200

-Stock: 28,000

-Furniture: 12,000 - 1,200 (Depreciation) = 10,800

Liabilities:

-Creditors: 16,000

-Bills Payable: 6,000

-Bank Overdraft: 8,000

-Capital: 8,000 + 5,000 + 39,750 (Profit) = 52,750

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