ramu commenced business as a cloth merchant on 1.4.1989 with capital of Rs. 10,000.on the same date, he purchased furniture for cash Rs. 3,000.from the following particulars obtained from his books kept by single entry. you are required to prepare a trading and profit and loss account for the year ending 31.3.1990 and a balance sheet as on same date
sales( inclusive of cash Rs 47,000) _ 1,17,000
purchase (inclusive of cash Rs 14,000) _ Rs 95,000
ramu's drawings_ 11,200
salaries to staff_ Rs 12,000
bad debts written off_ 500
business expenses _ Rs 10,700
rama took cloth worth Rs 500 from the shop for private use and paid Rs 200 to his son but omitted to record these transactions in his books . on 31.3.1990,his sundry debtors Rs 5,200 and sundry creditors were Rs 13,600,stock in hand Rs 16,500 on 31.3.1990.
Answers
Opening Statement of Affairs
As on 1.4.2012
Liabilities
Amount
Assets
Amount
Capital (bal. fig.)
178700
Machinery
70000
Sundry Creditors
54500
Furniture
10000
Stock
36000
Sundry Debtors
72200
Cash in hand
3000
Cash at bank
42000
233200
233200
Closing Statement of Affairs
As on 31.3.2013
Liabilities
Amount
Assets
Amount
Capital (bal.fig.)
216400
Machinery
70000
Sundry creditors
60400
Furniture
20000
Stock
42000
Sundry Debtors
88400
Cash in hand
4100
Cash at bank
52300
276800
276800
Statement of Profit and Loss
For the year ending 31.03.2013
Particulars
Amount
Closing capital
216400
Less: Additional Capital
(20000)
Add: Drawings
15000
Adjusted closing capital
211400
Less: Opening capital
(178700)
Profit before adjustment
32700
Less: depreciation on machinery
(7000)
Depreciation on furniture (2000 + 1000)
(3000)
Profit after adjustment
22700