2. Following records of Mr. Raj were kept on single entry
system. (March 2009) Particular Stock Furniture Plant and Machinery
Loan taken Bank Balance Debtors Creditors 31.3.2006 15000 53500
42500 21000 1900 43000 18000 31.3.2007 14000 44000 55500 21000 2100
35000 14900 Mr. Raj invested Rs. 4000 in the business. Also he had
withdrawn Rs. 15,000 for his private expenses from business. Rs.
500 to be provided for bad debts. Depreciate plant and machinery @
5% and furniture @5% Prepare: Statement of Affairs as on 31.3.2006.
Statement of Affairs as on 31.3.2007. Statement of Profit and Loss
for the year ended on 31.3.2007. Capital at the beginning 116900
Capital at the end of the year 114700 Trading profit 8800 Net
profit 3325
3. The following information is available from Rams records:
Particular 1.4.06 31.3.07 Creditor 5,000 8,000 Bank overdraft
15,000 Bank balance 10,000 Plant and machinery 10,000 20,000
Furniture 4,000 4,000 Debtors 30,000 52,000 Stock 34,000 28,000 Ram
had withdrawn Rs.5000 for personal expenses and Rs. 4000 for sons
marriage. Out of business funds, he had also purchased a
residential building costing Rs.20000, which is not shown in the
above balance. Additions to Machinery were made on 1/04/06. Dep. at
10 %p.a. should be provided on plant and machinery. Find out Rams
net profit for the year ended 31st march 07. Capital at the
beginning 83000 Capital at the end of the year 81000 Trading profit
27000 Net profit 25000
4. On 01/04/06, Mr. Bannerjee commenced business with a capital
of Rs.25,000. During the year 2006-07, he withdrew for his personal
use goods worth Rs.2, 000 and cash Rs.3,000. He also gave a
donation of Rs. 500 to Shri Ramakrishna mission. He paid Life
Insurance premium of Rs.1000. During the year, he received a gift
of Rs.5000 from his father by cheque which was deposited in the
bank account of the business. On 31/3/07; his position was as
under: Particulars Machinery Furniture Stock Debtors Balance at
bank Prepaid insurance Payable to creditors Liabilities for
expenses RS 20,000 2,000 5,000 8,000 1,500 200 3,000 700 Find out
the profit earned by him after providing for depreciation at 10% on
plant & Machinery and furniture and Rs.400 as reserve for
Doubtful Debt. Also prepare statement of affair as on 31.03.07
Capital at the beginning Capital at the end of the year 33000
Trading profit 9500 Net profit 6900
5. Rani keeps her books on single entry & following
information is disclosed. Particulars Cash Stock Debtors Furniture
Sundry creditors Bills payable Loan from y Investments 31.3.06
31.3.07 18,000 27,000 15,000 18,750 30,000 45,000 7,500 7,500
26,250 31,500 9,000 3,000 15,000 Rani transferred Rs150 each month
during first half year and Rs.100 each month for the remaining
period from her business to her private banking account by way of
drawing, and took away Rs.350 worth of goods for private use. She
sold her private car for Rs.3, 500 and proceeds were utilised for
business. Furniture to be depreciated by 10% and Reserve for
Doubtful debts to be maintained at 5% on debtors. Prepare opening
and closing statement of affairs and also profit and loss statement
for the year ending 31/03/07. Capital at the beginning 44250
Capital at the end of the year 69750 Trading profit 23850 Net
profit 20850
6. Mr. Ganesh keeps his books by single entry method. His
financial position on 1.01.04 and 31.12.04 was as under.
Particulars 1.1.04 31.12.04 Cash 10,000 16,000 Bank 20,000 36,000
Stock 16,000 24,000 Debtors 24,000 30,000 Creditors 15,000 18,000
Plant and machinery 60,000 90,000 Furniture and fitting 18,000
18,000 During the year Mr. Ganesh withdrew Rs.8,000 for his private
purpose and he had used 2,000 worth of stock also for his private
purpose. On 1.10.03 he sold some of his house hold furniture for
Rs.2,000 and paid this amount into his Bank A/c of business.
Prepare a statement of profit & loss for the year ended
31.12.04 and a statement of affairs after taking into consideration
the following: Provide interest on capital @ 5% p.a on opening
balance and Interest on drawing ( only on cash drawings) @10% p.a.
(on an average of 6 months) Depreciate plant and machinery @10 %(
assuming addition were made on 1.10.04) and furniture at 5%. stock
on 31.12.04 was overvalued by Rs.2,000 Write off bad debts Rs.2,000
and provide Reserve for Doubtful debts at 10 % on debtors. 133000
Capital at the beginning Capital at the end of the year 196000
Trading profit 71000 Net profit 50300
7. Mr. Prabhakar is a retail trader. He had no proper methods
of accounting. But the following information is made available to
you. [March 2012] Particulars Amount Rs. 1.4.2009 Sundry Debtors
Sundry Creditors Bank Overdraft Stock Cash in hand Bills Receivable
Furniture Motor van Computer 10% Govt. Bonds Amount Rs. 31.3.2010
45000 60000 80000 65000 2000 60000 10000 80000 60000 50000 70000
40000 80000 8000 80000 10000 80000 120000 10000 Adjustments. On 1st
October, 2009 Mr. Prabhakar had withdrawn Rs. 40000 for his
personal use. 10% Government Bonds were purchased of Rs. 10,000 on
1st October, 2009. He had also withdrawn Rs. 30000 for his
daughters marriage. Depreciate furniture by 10% and write off Rs.
2000 from motor van. Rs. 2000 is written off as bad debts and
provide 5% R.D.D. on debtors. Allow interest on capital at 10% p.a.
Charge interest on drawings Rs. 2,000. Prepare after taking into
consideration the adjustments. Opening statement of affairs of
1.4.2009. Closing statement of affairs of 31.3.2010. Statement
showing Profit or Loss for the year ended on 31.3.2010. Capital at
the beginning 182000 Capital at the end of the year 328000 Trading
profit 216000 Net profit 192900
8. Prem a trader keeps his books by the single entry Method.
His financial position on 1st April 06 and on 31st March, 07 were
as follows: Particulars Cash in hand Bank balance Stock in trade
Debtors Creditors Plant and machinery Furniture 1.04.06 1,500
1,200(Dr.) 4,000 3,400 2,400 6,000 1,200 31.03.07 1,600 1,800(Cr.)
4,650 3,800 3,600 8,000 1,600 During the year, Prem had withdrawn
Rs.75 per month for his household use. From the above information
ascertain his profit or loss for the year ended and also give his
statement of affairs as on 31.03.07 after taking into account the
following further information: Depreciate plant and machinery by
15% and furniture by 12 % p.a (assume the addition on 30th
September,2006) Of the debtors Rs100 are bad and to be written off.
Create a reserve for Discount on Debtors at 2% and a reserve for
Doubtful debts at 5%. Allow interest on capital at 5% and charge
interest on Drawing at 6%p.a Capital at the beginning 14900 Capital
at the end of the year 14250 Trading profit 250 Net Loss -2048
9. Mr. Gopal maintained his books on single entry. The
following statement of affairs had been Prepared as on 31.03.06
Liabilities Capital account Sundry creditors Bill payable Amt
28,000 3,170 2,150 Asset Leasehold land Plant and Machinery Stock
in trade Book debts Cash in hand Amt 2,075 4,940 9,673 15,550 1,082
33,320 33,320 On 31.03.07 it was learnt that he had introduced
further capital of Rs1,000 on 1st july,06 and he drawn Rs1,580 on
various dates during the year. It was also ascertained that the
proprietor had taken Rs.75 worth of goods for his own use.
Statement prepared on the same date disclosed that book debts were
Rs.14,640, Creditors were Rs.2,309 and Bills payable were Rs.1,775.
The stock was valued at Rs.11,417 and cash in hand amounted Rs.917
on the same date. Prepare: 1. Statement of profit for the year
06-07 2. Statement of affairs as on 31.03.07 taking in to
consideration the following: 5% Reserve to be created on Book
debts. 5% Depreciation to be written off on plant and machinery.
Rs.125 to be written off the lease. Interest at 5% p.a. to be
provided on the capital. Capital at the beginning Capital at the
end of the year 29905 Trading profit 2560 Net profit 18
10. Mr. Suryakant maintains books on single entry and who gives
you the following information. (September 2008) Particulars Cash in
hand Cash at bank Stock Sundry debtors Investments Furniture
Machinery Sundry creditors Outstanding expenses 31-3-2006 500 2500
20000 25000 20000 10000 25000 10000 3000 31-3-2007 2000 5000 30000
40000 20000 25000 40000 10000 2000 Additional information Mr.
Suryakant introduced further capital of Rs. 20000 on 1st July, 2006
and had withdrawn Rs. 10,000 during the year. Interest on capital
is allowed at 10% p.a. Additions to furniture and machinery were
made on 1st October, 2006 Write of deprecation on furniture and
machinery at 10% p.a. Create reserve for doubtful debts at 5% on
sundry debtors. Prepare: a. Statement of affairs. B. Statement of
profit and loss for the year ended 31st March, 2007. < 90000
Capital at the beginning Capital at the end of the year 150000
Trading profit 50000 Net profit 32500
11. Mrs. Archana keeps her books on single entry system and
gives the following information. (March 2008) 31-3-2006 Cash at
bank Sundry debtors Stock in trade Furniture Machinery Bills
payable Sundry creditors 5000 25000 30000 20000 50000 5000 15000
31-3-2007 32000 40000 50000 20000 50000 5000 20000 Additional
information Mrs. Archana withdrew from business Rs. 15,000 for
personal use. She further introduced fresh capital of Rs. 25,000.
Depreciation is to be charged @10% p.a. on Furniture and Machinery.
Prepare: (i) Statement of Affairs as on 31-3-2006 (ii) Statement of
Affairs as on 31-3-2007 (iii) Statement of profit or loss for the
year ending 313-2007. Capital at the beginning 110000 Capital at
the end of the year 167000 Trading profit 47000 Net profit
40000
