Std. XII Bookkeeping & Accountancy Smart Notes PDF

 Written as per the revised syllabus prescribed by the Maharashtra State Board of Secondary and Higher Secondary Education, Pune....

 Written as per the revised syllabus prescribed by the Maharashtra State Board of Secondary and Higher Secondary Education, Pune. T SMART NOTES BOOK-KEEPING & N TE ACCOUNTANCY STD. XII COMMERCE N Salient Features Based on MH – Board Syllabus Simplified Theory O C Contains Textual, Board as well as Homework problems Type-wise sorting of sums Covers Board Question Papers of March 2018, July 2018 and March 2019 E PL Now access the solutions to all the Homework Section Problems within this book through our Quill App. Scan the QR code to download the app and use the coupon code QUILL30D for one month free trial. M Printed at: Repro India Ltd., Mumbai SA © Target Publications Pvt. Ltd. No part of this book may be reproduced or transmitted in any form or by any means, C.D. ROM/Audio Video Cassettes or electronic, mechanical including photocopying; recording or by any information storage and retrieval system without permission in writing from the Publisher. Balbharati Registration No.: 2018MH0022 P.O. No. 158486 TEID: 13320  PREFACE This book based upon Book-Keeping & Accountancy is carefully curated to facilitate learning and instill conceptual understanding within students. This treasure trove of knowledge fosters robust conceptual clarity and inspires T confidence within the nimble mind of students. Std.XII is a crucial year of a student’s academic life. Our Smart Notes not only help you to prepare for your final N examinations but also equip you on a parallel ground to strengthen your foundation and lay the cornerstone of a bright future. Smart Notes comprehensively cover the entire syllabus as well as answer all questions that stand a probable chance of being asked in the Board Examinations. Through the medium of this book, we have explained the subject’s theory in an extremely lucid manner. The book is rife with practical problems, board problems and TE homework questions. 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No copyright is claimed in the textual contents which are presented as part of fair dealing with a view to provide best supplementary study material for the benefit of students. ii  BOOK – KEEPING & ACCOUNTANCY Project + Viva – 20 marks Total Marks = 100 Written Exam – 80 marks T N PAPER PATTERN TE Time – 3 hours (180 minutes) Q.No. Particulars Total marks 1 Attempt any THREE of the following sub-questions 15 N (A) Answer the following questions in one sentence each: 5 (B) Write a word / term / phrase which can substitute each of the following 5 statements: the statements: O (C) Select the most appropriate alternative from those given below and rewrite 5 C (D) State whether the following statements are True or False: 5 (E) Prepare a specimen of a Bill of Exchange from the following information 5 2 Problem on Single Entry System 8 E OR Theory question on Analysis of Financial Statements PL 3 Problem on Admission / Retirement / Death of a Partner 10 OR Problem on Admission / Retirement / Death of a Partner 4 Problem on Bills of Exchange (No Option) 10 M 5 Problem on Dissolution of Partnership Firm 10 OR SA Problem on Accounting for Shares / Debentures 6 Problem on ‘Accounts of Not for Profit Concerns’ (No option) 12 7 Problem on Partnership Final Accounts 15 Total 80 iii  BOOK – KEEPING & ACCOUNTANCY Unitwise Weightage Sr. Chapter Marks Marks With Option No. T Problems Objectives Total Problems Objectives Total Introduction to Partnership (Objectives 1. 15 02 17 15 03 18 only) and Partnership Final Accounts N 2. Accounts of ‘Not for Profit’ Concerns 12 01 13 12 02 14 Admission / Retirement / Death of Partner 10 3. OR 10 02 12 02 22 TE Admission / Retirement / Death of Partner 10 Dissolution of Partnership Firm 10 OR 4. 10 02 12 04 24 Accounting for Shares / Accounting for 10 Debentures N Bill of Exchange (Objectives include 5 5. 10 06 16 10 10 20 marks for question on specimen) Single Entry System 08 6. OR O Analysis of Financial Statements (Theory Questions) 08 02 10 08 04 20 C Total 65 15 80 93 25 118 Index E Sr. No. Chapter Name Page Nos. 1 Introduction to Partnership 1 - 1 to 1 - 12 2 Partnership Final Accounts 2 - 13 to 2 - 68 PL 3 Reconstitution of Partnership (Admission of a Partner) 3 - 69 to 3 - 105 4 Reconstitution of Partnership (Retirement of a Partner) 4 - 106 to 4 - 128 5 Reconstitution of Partnership (Death of a Partner) 5 - 129 to 5 - 144 6 Dissolution of Partnership Firm 6 - 145 to 6 - 181 M 7 Accounts of ‘Not For Profit’ Concerns 7 - 182 to 7 - 240 8 Single Entry System 8 - 241 to 8 - 269 9 Bills of Exchange (Trade Bill) 9 - 270 to 9 - 302 SA 10 Company Accounts Part - I (Accounting for Shares) 10 - 303 to 10 - 329 11 Company Accounts Part - II (Accounting for Debentures) 11 - 330 to 11 - 341 12 Analysis of Financial Statements 12 - 342 to 12 - 352 Board Papers - March 2018 353 - 356 Board Papers - July 2018 357 - 360 Board Papers - March 2019 361 - 364 iv  Single Entry System CHAPTER 8: SINGLE ENTRY SYSTEM T Sr. No. Particulars Page No. 1. Theory 8 - 242 N 2. Section I : Textbook Problems 8 - 246 TE 3. Section II : Board Problems 8 - 253 4. Section III : Homework Problems 8 - 260 N 5. Section IV : Objective Type Questions 8 - 267 Drawings + Additional capital Depreciation + Bad debts+RDD O Problem Type Textbook Section 1,2 3,4,5,6 Homework Section 1,2 3,4,5 C Interest on capital and Interest on drawing 7,8,9,10 6,7,8 Revaluation of assets 11,12 9,10 Various adjustments 13,14 11,12 E Partnership firm 15,16,17,18 13,14,15 Alternative method 19,20 16 PL M SA 8 - 241  S.Y.J.C. Book-keeping and Accountancy Introduction Single Entry System is not a definite system of accounting. It is double entry system in an incomplete manner. It avoids the expenses of maintaining books on double entry system. At the same time it provides a general idea of the financial state of the business. Small businesses do not have the resources to keep a full set of records and can’t afford extra staff to maintain accounting records on double entry system. They use single entry system to obtain an idea of their profit and loss periodically. T Any such system of ascertaining profit or loss that does not involve systematic record keeping of double entry system is generally known as Single Entry System. Meaning of Single Entry System N Kohler defines Single Entry System as follows, ‘A system of book-keeping in which, as a rule, only records of cash and of personal accounts are maintained, it is always incomplete double entry varying with the circumstances.’ Single Entry System involves the following TE a. Certain transactions are recorded similar to Double Entry System – receipt of cash from debtors, cash paid to creditors, etc. b. Some transactions are recorded partially – Cash sales, cash purchases, etc. c. Few transactions are not recorded at all – Depreciation, bad debts, etc. It is thus a combination of N a. Double Entry b. Single Entry c. No Entry O In this system, Cash Book and Personal Accounts of Debtors and Creditors are maintained. Real and Nominal Accounts are not maintained. Usually, firms which have limited transactions follow this method. Only essential records are maintained. It depends on the circumstances and nature of the business and there is no set rule of maintaining accounts. Difference between Single and Double Entry Systems of book-keeping: C Particulars Single Entry System Double Entry System 1. What is recorded All the aspects of a transaction are not recorded. Both aspects of the transaction are recorded. 2. Accounts Only Personal accounts and Cash Book are Personal, Real as well as Nominal accounts are maintained. Real and Nominal accounts are not maintained. maintained. E 3. Trial Balance Arithmetical accuracy cannot be checked as no Since a Trial Balance can be prepared, arithmetical Trial balance can be prepared. accuracy can be checked. 4. Final Accounts No Final Accounts can be prepared in the Final Accounts are prepared to find out true PL absence of a Trial Balance. profit or loss and financial position. 5. Suitability Suitable for small business units such as sole Suitable for all types of an organization. proprietorship or partnership firm. 6. Profit or Loss Statement of Profit or Loss needs to be prepared Profit and Loss Account helps in ascertaining net to ascertain net profit or loss. profit or loss. 7. Adjustments No adjustments can be made as the records Adjustments can be made while preparing final M themselves are incomplete. accounts. 8. Rules This system is unscientific and does not follow This system is scientific and follows rules. any rules. SA 9. Authenticity The regulatory authorities do not consider this This system is considered authentic by method as authentic. government and tax authorities. 10. Cost Relatively less expensive system. Relatively more expensive system. 8 - 242  Single Entry System Preparation of Opening and Closing Statement of Affairs Since there are no Real Accounts maintained it is not possible to prepare a Balance Sheet as at the end of the period. To find out the financial position of the business as on a particular date a Statement of Affairs is prepared. It shows the various assets and liabilities on a particular date from information that may be available. A Statement of Affairs is a summarized statement of the financial position as at a particular date. T Opening Statement of Affairs – A statement based on the opening balances of various assets and liabilities is called ‘Opening Statement of Affairs’. It helps in calculating the opening capital invested in the business. Opening Capital = Opening Assets – Opening Liabilities N Closing Statement of Affairs – A statement based on the closing balances of various assets and liabilities is called ‘Closing Statement of Affairs’. It helps in calculating the closing capital invested in the business. Closing Capital = Closing Assets – Closing Liabilities TE Following is the format of Statement of Affairs Statement of Affairs as on……… Liabilities Amt. (Rs.) Assets Amt. (Rs.) Creditors XXX Plant & Machinery XXX Bills Payable XXX Furniture & Fittings XXX Bank Overdraft XXX Stock in Trade XXX N Capital(Balancing Figure) XXX Debtors XXX Cash in bank XXX Cash in Hand XXX 1. Objective O Difference between Balance Sheet and Statement of Affairs: Particulars Balance Sheet XXX Main objective is to find out the financial position Statement of Affairs XXX Main objective is to calculate the capital at a given C of the firm. point in time. 2. Accounting Balance sheet is prepared under Double Entry Statement of Affairs is prepared under Single Entry System System. System. 3. Reliability It is more reliable since it is based on Double Entry It is less reliable as it is based on estimated Amounts System. and incomplete records. E 4. Trial Balance Trial Balance is prepared before preparing Final Accounts. Preparation of Trial Balance is not possible. 5. Arithmetical It is arithmetically accurate as the Trial Balance tallies. No arithmetical accuracy can be guaranteed. 6. Omission Any omission to record assets or liabilities can be Omissions in recording assets or liabilities cannot PL traced easily and early. be traced easily. Preparation of Statement of Profit or Loss Any business entity is interested in knowing the profit or loss that it has made during a period. Under Double Entry System, it is possible to accurately compute the profit or loss for the period by preparing a Profit & Loss Account. But under Single Entry System, one needs to prepare a Statement known as a Statement of Profit or Loss. M The working result can be found out by the following two methods: a. Net Worth Method b. Conversion Method SA (Only Net Worth method is part of the syllabus and hence only that has been explained.) Net Worth Method Under the Net Worth Method, profit is computed as a difference in the opening and closing capitals. First, the closing capital needs to be worked out. One needs to deduct the additional capital introduced during the period and add the drawings withdrawn by the proprietor during the period. After the adjusted closing capital is calculated as above, the opening capital is deducted from the adjusted closing capital and the difference represents the profit or loss for the period. There may be adjustments that may have to be made. 8 - 243  S.Y.J.C. Book-keeping and Accountancy (Format of Statement of Profit or Loss) Statement of Profit or Loss for the year ended……… Particulars Amt. (Rs.) Amt. (Rs.) Closing Capital/Capital at the end of the year XXX Add: Drawings made during the year: T In Cash XXX In Kind XXX XXX Less: Additional capital introduced during the year XXX Adjusted Closing Capital XXX N Less: Opening Capital / Capital at the beginning of the year XXX Profit / Loss for the year XXXX Illustration: TE Closing Capital Rs. 30,000 Opening Capital Rs. 14,000 Additional Capital introduced during the period Rs. 4,000 whereas drawings of Rs. 2,500 made during the period. Statement of Profit or Loss for the period ended … Particulars Amt. (Rs.) Closing Capital 30,000 N Add: Drawings during the period 2,500 32,500 Less: Additional Capital introduced during the year 4,000 Adjusted Closing Capital 28,500 Less: Opening Capital Profit for the year O Adjustments/Treatment of Additional Information 14,000 14,500 C Sometimes some information is not recorded or is recorded only partially. In such case, we need to make adjustments to the accounts. 1. Additional Capital: When computing the profit or loss for the year, we find the difference between the closing and opening capitals. Hence, if any additional capital is introduced during the year by the proprietor it needs to be subtracted from the E closing capital to first arrive at the adjusted amount of the closing capital. Capital may be either introduced in cash or in kind. 2. Drawings: Similar to the above logic, any drawings made during the year will mean that the closing capital is decreased but not because of any loss. Hence, we add back to the closing capital the capital withdrawn during the year. Such capital may also have been withdrawn in cash or in kind. PL 3. Depreciation: Depreciation being a non-cash expenditure may not have been recorded. Hence, we charge the depreciation amount to the Statement of Profit or Loss. It is important to check for what period the asset has been used while computing the depreciation. 4. Bad Debts: Bad debts being a loss also need to be deducted in the Statement of Profit or Loss. 5. Reserve/Provision for Doubtful Debts: Based on expectations, a provision is made for bad debts in the books of accounts. M Since, it may lead to a probable loss, it is deducted in the Statement of Profit or Loss. 6. Undervaluation or Overvaluation of Assets & Liabilities: a. Undervaluation of Assets: Assets which are already undervalued in the books of accounts need to be increased by the amount of undervaluation to bring them to their actual value. Since, capital is equal to assets less liabilities, SA any increase in assets leads to a corresponding increase in capital. To effect this, we add the amount by which the assets are increased to the Statement of Profit or Loss. b. Overvaluation of Assets: Assets which are already overvalued in the books of accounts need to be reduced by the amount of overvaluation to bring them to their actual value. Any overvaluation tends to a higher value of capital which needs to be reduced. Hence, we reduce the overvaluation amount from the Statement of Profit or Loss for the year. c. Undervaluation of Liabilities: A liability which is already undervalued in the books of accounts needs to be increased by the amount of undervaluation. Such undervaluation leads to a higher capital and hence the capital amount needs to be duly adjusted. The undervaluation amount is hence reduced in the Statement of Profit or Loss. 8 - 244  Single Entry System d. Overvaluation of Liabilities: A liability which is already overvalued in the books of accounts needs to be decreased by the amount of overvaluation. Such overvaluation leads to a lower capital and hence the capital amount needs to be duly adjusted. The overvaluation amount is hence added in the Statement of Profit or Loss. 7. Interest on loan: Interest is an expenditure for the business and hence needs to be deducted in the Statement of Profit or Loss. Interest should be calculated keeping in mind the amount of principal, rate of interest and the period of borrowing. 8. Interest on capital: Interest on capital too is an expenditure for the business and hence needs to be reduced in the T Statement of Profit or Loss. Interest is to be computed on the opening balance of capital as well as on the additional capital introduced during the year. e.g. Opening Capital as on April 1, 2011 is Rs. 10,000. Additional capital introduced on July 1, 2011 is Rs. 20,000. Interest N to be allowed at 15% on capital Interest on Capital: 15% on Rs. 10,000 for 12 months = Rs. 1,500 15% on Rs. 20,000 for 9 months = Rs. 2,250 TE Total interest on capital = Rs. 3,750 9. Interest on drawings: Interest on drawings is an income for the business and hence is added in the Statement of Profit or Loss. 10. Partner’s Salary: Working partners are sometimes entitled to a salary. As per the partnership deed, salary may be paid to a partner on a monthly or quarterly basis. Such salary being an expenditure to the business is deducted in the Statement of Profit or Loss. N 11. Outstanding / unpaid expenses: Outstanding expenses are expenses which are due but not paid. Such expenses are a charge on the profit. Hence, they are deducted in the Statement of Profit or Loss. 12. Prepaid expenses / expenses paid in advance: Sometimes, some expenses such as rent, electricity charges, etc. are paid O in advance. Since the entire expense does not pertain to the current year, a part of it is carried forward. The prepaid portion of the expenditure is added in the Statement of Profit or Loss. (Proforma of Statement of Profit or Loss) Statement of Profit or Loss for the year ended……… C Particulars Amt. (Rs.) Amt. (Rs.) Closing capital / Capital at the end of the year XXXX Add: Drawings during the year In Cash XXXX In Kind XXXX XXXX XXXX E Less: Additional Capital brought during the year XXXX Adjusted Closing capital XXXX Less: Opening Capital/Capital at the beginning of the year XXXX PL Profit before adjustments XXXX Add: Incomes & Gains during the year: i. Interest on Drawings XXXX ii. Undervaluation of Assets XXXX iii. Overvaluation of Liabilities XXXX iv. Prepaid Expenses XXXX XXXX M XXXX Less: Expenses & Losses during the year: i. Interest on Capital XXXX ii. Depreciation on Assets XXXX iii. Interest on Loan XXXX SA iv. Overvaluation of Assets XXXX v. Undervaluation of Liabilities XXXX vi. Bad Debts XXXX vii. Reserve for Doubtful Debts XXXX viii. Salary to partner XXXX ix. Outstanding Expenses XXXX XXXX Net Profit/Net Loss during the year XXXX 8 - 245  S.Y.J.C. Book-keeping and Accountancy Section I : Textbook Problems Drawing + Additional Capital Q1. Ajay started a business on 1st April, 2011 with a capital of Rs. 1,00,000. On 1st July 2011 he borrowed Rs. 40,000 from Bank for business and introduced further capital of Rs. 15,000. (S) T On 31st March, 2012 his position was: Cash Balance Rs. 6,000, Stock Rs. 94,000, Debtors Rs. 70,000 and Creditors Rs. 60,000 N He had withdrawn Rs. 20,000 for personal use. Ascertain his profit or loss during the year. Answer:  Closing Capital: Rs. 70,000  Opening Capital: Rs. 1,00,000  Net Loss: Rs. 25,000 TE Q2. Radhika keeps her books under Single entry system. Her assets and liabilities were as follows. (S) Particulars 1st April, 2011 31st March, 2012 Cash in hand 10,000 9,000 Bills Payable - 50,000 Sundry Creditors 1,50,000 1,49,000 N Plant & Machinery 6,00,000 8,00,000 Sundry Debtors 3,90,000 4,50,000 Stock 3,40,000 3,20,000 During the year 2011-12 she brought additional capital Rs. 10,000 and withdrew Rs. 10,000 per month for household  Closing Capital: Rs. 13,80,000 O expenses. Calculate the profit or loss for the year ended 31st March, 2012. Answer:  Opening Capital: Rs. 11,90,000  Net Profit: Rs. 3,00,000 C Depreciation + Bad Debts + R.D.D. Q3. A trader had not kept proper books of accounts but from the following details, you are required to ascertain the profit or loss for the year ended 31st March, 2011. (S) Particulars 01-04-2010 31-03-2011 E Stock 33,400 36,200 Debtors 22,400 21,200 Creditors 30,800 38,400 PL Cash Balance 500 2,800 Bank Balance - 5,800 Bank Overdraft 38,400 - Bills Receivable 32,000 10,000 Fixture & Fittings 3,000 3,000 Motor Van 3,800 - M The trader has withdrawn Rs. 4,800 for his personal expenses. Depreciate fixtures and fittings by 10%. Provide Rs. 1,000 as Bad Debts and Rs. 1,100 as Doubtful Debts. Answer:  Closing Capital: Rs. 40,600  Opening Capital: Rs. 25,900  Net Profit: Rs. 17,100 SA Q4. Mr. Mangesh is dealing in business. He maintains his accounting with Single entry. The following are details of his business. (P) Particulars 1-04-2012 31-03-2013 Land & 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 8 - 246  Single Entry System Particulars 1-04-2012 31-03-2013 Bills Receivable 5,000 5,000 Creditors 25,000 25,000 Bank Overdraft 5,000 - Bank Balance - 10,000 T Mr. Mangesh introduced Rs. 10,000 as additional Capital. He spent Rs. 45,000 for personal use. Depreciate Land & Building by Rs. 5,000. Provide 5% R.D.D. on Debtors. Prepare: Opening Statement of affairs, Closing Statement of affairs and the statement of profit or loss. N Answer:  Closing Capital: Rs. 1,70,000  Opening Capital: Rs. 90,000  Net Profit: Rs. 1,08,000 Q5. Mrs. Ankita keeps her books under single entry system and gives the following information. (P) TE Particulars 1.4.2011 31.3.2012 Investments - 12,000 Bank Overdraft - 10,000 Bills Payable 5,000 8,000 Creditors 26,500 31,500 Furniture 9,000 19,000 N Debtors 35,000 50,000 Stock in Trade 15,000 19,000 Bank Balance 18,000 28,000 Mrs. Ankita withdraws Rs. 4,000 for her personal use. She received Rs. 15,000 from her father as gift, which she brought into the business. O Additional furniture was purchased on 1st October, 2011. Depreciate furniture by 10% p.a. Write off Rs. 1,000 as Bad debts and provide 5% R.D.D. on debtors. C Find the profit or Loss of her business for the year ended 31st March, 2012. Answer:  Closing Capital: Rs. 78,500  Opening Capital: Rs. 45,500  Net Profit : Rs. 17,150 Q6. Mr. Govind keeps his books on single entry system and disclosed the following information of his business. (P) Particulars 1-4-2010 31-3-2011 E Investment - 30,000 Bills Payable - 18,000 Creditors 52,500 69,000 PL 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: M 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 a/c. 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%. SA 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 Answer:  Closing Capital: Rs. 1,39,500  Opening Capital: Rs. 88,500  Net Profit: Rs. 41,700 8 - 247  S.Y.J.C. Book-keeping and Accountancy Interest on Capital and Interest on Drawings Q7. Mrs. Shraddha has not kept proper books of A/c following information is provided to you. (S) Particulars 31-03-2012 31-03-2013 Machinery 50,000 50,000 Furniture 50,000 30,000 T Debtors 18,000 25,000 Creditors 18,000 20,000 Stock 30,000 42,000 N Outstanding Expenses 1,500 - Prepaid Expenses - 500 Cash in Hand 3,000 5,000 TE Cash at Bank 25,000 35,000 Additional information: 1. Mrs. Shraddha introduced additional capital as on 1st October, 2012 by selling her personal car Rs. 10,000. 2. She paid her daughter’s College fees from business Bank account Rs. 3,000. 3. Depreciate Machinery by 5% p.a. 4. Provide 2% on Debtors for Bad and Doubtful Debts. N 5. Interest on Capital is to be provided @ 5% p.a. and on Drawings @ 5% p.a. Prepare Statement of Profit or Loss for the year ended 31st March, 2013. Answer:  Closing Capital: Rs. 1,67,500 O  Opening Capital: Rs. 1,56,500  Net Loss: Rs. 7,000 Q8. Miss. Kavita commenced her business with a Capital of Rs. 1,30,000 on 1st April, 2010. Her financial position was as follows as on 31st March, 2011, Cash Rs. 9,120, Stock Rs. 10,250, Bills Payable Rs. 12,880, Creditors Rs. 17,180, Debtors C Rs. 31,550, Bills Receivable Rs. 29,120, Premises Rs. 85,750, Vehicles 40,250. (P) Additional Information: 1. She brought additional capital Rs. 20,000 on 30th September, 2010. Interest on capital is to be provided at 5% p.a. 2. She withdraws Rs. 10,000 for personal use on which interest is to be charged at 6% p.a. 3. R.D.D. is to be provided at 21/2% p.a. after providing Bad Debts Rs.1000. E 4. Depreciate vehicle at 2% and Premises at 4%. Answer:  Closing Capital: Rs. 1,75,980  Opening Capital: Rs. 1,30,000  Net Profit: Rs. 23,281 PL Note : In texbook, the net profit is Rs. 24,581. However, as per our calculations it is Rs. 23,281. Q9. 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. (P) On 1st October, 2012 Mahendra introduced Rs. 10,000 as further capital in the business and withdrew on the same date M Rs. 7,000 out of which he spent Rs. 5,0 00 on the purchase of 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 SA Closing statement of affairs. Consider the following adjustments also. 1. Depreciate Motor Car and Furniture @ 10% p.a. Furniture was purchased on 1st October, 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. Answer:  Closing Capital: Rs. 71,300  Opening Capital: Rs. 59,200  Net Loss: Rs. 4,045 8 - 248  Single Entry System Q10. Mr. Suhas a small trader provides you the following details about his business. (P) Particulars 1-4-2011 31-3-2012 Debtors 45,000 50,000 Creditors 60,000 70,000 Computer 60,000 1,20,000 T 10% Govt. Bonds - 10,000 Bank Overdraft 80,000 40,000 Motor Van 80,000 80,000 N Furniture 10,000 10,000 Stock 65,000 80,000 Cash in Hand 2,000 8,000 TE Bills Receivable 60,000 80,000 Additional Information: 1. On 1st October, 2011 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. N 5. 10% Government Bonds were purchased on 1st October, 2011. 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. Answer:  Closing Capital: Rs. 3,28,000 O Prepare: Opening Statement of affairs, closing statement of affairs and statement of profit or loss for the year ended 31st March, 2012.  Opening Capital: Rs. 1,82,000  Net Proft: Rs. 1,92,900 C Revaluation of Assets Q11. Ramprakash keeps his books under single entry system. His capital as on 1st April, 2011 was Rs. 40,000. His position as on 31st March, 2012 was as follows: (S) E Particulars Amount (Rs.) Land and Building 40,000 Furniture 6,000 PL Plant & Machinery 27,500 Stock 25,000 Debtors 25,000 Bank Balance 5,000 Creditors 37,500 Loan from Bank 25,000 M His drawings during the year amounted to Rs. 4,000, Land & Buildings were overvalued by Rs. 7,500, where as furniture was undervalued by Rs. 3,600. Plant & Machinery is to be depreciated by 10%. Bad Debts amounted to Rs. 1,000. Interest on Bank Loan Payable Rs. 2,500, Prepaid insurance Rs. 600. Prepare Statement of Affairs as on 31st March, 2012 and Statement of Profit or Loss for the year ended 31st March, SA 2012. Answer:  Closing Capital: Rs. 66,000  Opening Capital: Rs. 40,000  Net Profit: Rs. 20,450 8 - 249  S.Y.J.C. Book-keeping and Accountancy Q12. 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. (P) Statement of Affairs as on 1 April, 2010 st Liabilities Amt. (Rs.) Assets Amt. (Rs.) Capitals: Plant & Machinery 15,000 T Sun 12,500 Stock 10,000 Moon 10,000 Debtors 17,500 Creditors 15,000 Cash in Hand 7,500 Bills Payable 12,500 N 50,000 50,000 On 31st March, 2011 their 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 TE 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. N Answer:  Closing Capital: Rs. 85,000  Opening Capital: Rs. 22,508  Net Profit: Rs. 70,650 Various Adjustments Land O Q13. Mr. Imran provide following information for his business under Single Entry System. Particulars 1-04-2011 2,000 31-03-2012 (S) 4,000 C Furniture 3,000 4,000 Stock in Trade 3,100 4,100 Debtors 1,600 2,100 Creditors 1,500 1,400 Bank Loan @ 15% p.a. 2,200 2,200 E Bank 200 Cr. 1,800 Additional Information: 1. He spent Rs. 2,500 for house hold expenses from his business. PL 2. He received a gift of Rs. 1,500 from his friend which he invested into the business as on 1st October, 2011. 3. Additions to the Furniture were made on 31st March, 2012, depreciation Furniture by 10% p.a. 4. Rs. 100 are bad and provide 5% R.D.D. on Debtors. 5. Interest on capital to be provided @10% p.a. 6. Interest on drawings to be Charges at 12% p.a. M You are required to prepare Statement of Profit or Loss for the year ended 31st March, 2012. Answer:  Closing Capital: Rs. 12,400  Opening Capital: Rs. 5,800  Net Profit: Rs. 6,265 SA Q14. Shri Avinash keeps his books by Single entry method. Followings are the details of his business. (S) Particulars 1-4-2010 31-3-2011 Cash in Hand 10,000 16,000 Cash at Bank 20,000 36,000 Stock 16,000 24,000 Furniture 18,000 18,000 Plant & machinery 60,000 90,000 Creditors 15,000 18,000 Debtors 24,000 30,000 8 - 250  Single Entry System During the year he has withdrawn Rs. 10,000 for his private purpose and goods of Rs. 2,000 for household use. On 1st October, 2010 he sold his household Furniture for Rs. 2,000 and deposited same amount in business Bank A/c. Provide depreciate on machinery at 10% p.a. (assuming additions were made on 1st October, 2010) and Furniture at 5%. Prepare Statement of Profit or Loss for the year ended 31st March 2011. Answer: T  Closing Capital: Rs. 1,96,000  Opening Capital: Rs. 1,33,000  Net Profit: Rs. 64,600 Partnership Firm N Q15. Sanika and Monika are partners sharing Profit & loss in the ratio of 2:1. You are required to prepare a Statement of Affairs as on 31st March, 2012 and Statement of Profit or Loss for the year ended 31st March, 2012. (S) Statement of Affairs as on 31st March, 2011 TE Liabilities Amount (Rs.) Assets Amount (Rs.) Creditors 16,000 Cash at Bank 3,000 Bills Payable 3,000 Bill Receivable 6,000 Capital : Sanika 30,000 Debtors 12,000 Monika 15,000 Stock 8,000 Furniture 5,000 Machinery 10,000 N Building 20,000 64,000 64,000 On 31st March, 2012 the following balances were extracted. Additional Information: O Creditors Rs. 18,000, Bills Payable Rs. 7,000, Stock Rs. 16,000, Bills Receivable Rs. 8,500, Cash at Bank Rs. 8,000, Debtors Rs. 17,500 1. Sanika and Monika had withdrawn from the firm for personal use Rs. 4,500 and Rs. 3,500 respectively. C 2. They had brought in additional capital of Rs. 2,500 and Rs. 1,500 respectively. 3. Provide depreciation on Building at 5% p.a. and Machinery and Furniture at 10% p.a. 4. Allow interest at 10% p.a. on capital. 5. Charge interest on drawings of Sanika Rs. 300 and Monika Rs. 200 E Answer:  Combined Closing Capital: Rs. 60,000  Opening Capital: Rs. 45,000  Net Profit: Rs. 12,500 Q16. A and B are partners sharing profits and losses in the ratio 3:2. Following are the details of their business as per the single PL entry system. (S) Particulars 1-4-2011 31-3-2012 Cash in hand 1,000 2,000 Cash at Bank 2,000 4,000 Land & Building 20,000 20,000 Plant & Machinery 2,000 2,000 M Stock in Trade 5,000 7,000 Bills Receivable 1,000 1,500 Bills Payable 1,000 2,500 Sundry Debtors 3,000 4,000 SA Sundry Creditors 3,000 2,000 Additional information: 1. Interest on Capital is to be allowed at 10%. 2. Plant & Machinery is to be depreciated by 10% p.a. and Land & Building by 5% p.a. 3. Creditors are undervalued by Rs. 1,000. 4. Provide R.D.D. at 5% on Debtors. 5. A and B brought additional capital in the firm Rs. 2,000 and Rs. 3,000 respectively. 8 - 251  S.Y.J.C. Book-keeping and Accountancy 6. Overvaluation of Bills Payable Rs. 500. Prepare Statement of Profit or Loss for the year ended 31st March, 2012 Answer:  Combined Closing Capital: Rs. 36,000  Opening Capital: A - Rs. 18,000  Net Profit: Rs. 3,900 B - Rs. 12,000 T Q17. 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, Bills 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 N Rs. 6,000 Outstanding salary Rs. 800. (P) Additional Information: 1. Provide Rs. 600 as Bad Debts and 5% R.D.D. TE 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. N 7. Drawings of ‘A’ Rs. 3,000 and ‘B’ Rs. 2,000 [Calculate the profit for the year ended 31st March, 2011.] Answer:  Closing Capital: Rs. 89,200  O Net Proft: Rs. 27,400 Note: In textbook, A’s share of net profit is Rs. 18,840 and B’s share is Rs. 12,560. However, the profit sharing ratio is not given. Thus, we need to assume as 1:1. Thus, A & B’s share is Rs. 13, 700 each. C Q18. 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. (P) Liabilities Amt. (Rs.) Assets Amt. (Rs.) Creditor 33,000 Cash at Bank 6,000 Bills Payable 9,000 Cash in Hand 2,000 E Capital Building 41,000 Asha 62,000 Machinery 21,000 Usha 32,000 Furniture 10,000 PL Stock 18,000 Debtors 25,000 Bills Receivable 13,000 1,36,000 1,36,000 The assets and liabilities as on 31st March, 2012 were: Sundry Creditors Rs. 35,000, Bills Receivable Rs. 18,000, Bills payable Rs. 15,000, Cash in hand Rs. 3,000, Stock M 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. SA 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 of Rs. 700 and Rs. 500 respectively. Answer:  Closing Capital: Rs. 1,19,000  Opening Capital: Rs. 94,000  Net Proft: Rs. 19,650 8 - 252  Single Entry System Alternative Method Q19. Mr. Prakash keeps his books in Single Entry System. On 1st April, 2011 his position was as follows : Creditors Rs. 40,000, Debtors Rs. 80,000, Cash in Hand Rs. 600, Machinery Rs. 40,000, Cash at Bank Rs. 21,000, Stock Rs. 20,000. On 31st March, 2012 his position was as follows: Creditors Rs. 70,000, Cash at Bank Rs. 44,000, Cash in hand 1,000, Debtors Rs. 98,000, Stock Rs. 24,000, Machinery Rs. 90,000. He had withdrawn Rs. 1,000 every month for his personal T expenses. He introduced Rs. 50,000 as an additional Capital on 1st August, 2011. He purchased additional Machinery for business worth Rs. 50,000 on 31st October, 2011. (S) Adjustments: N 1. Depreciate Machinery at 10% p.a. 2. Provide R.D.D. at 2.5% on debtors. You are required to prepare Statement of Profit or Loss. Answer: TE  Closing Capital: Rs. 1,87,000  Opening Capital: Rs. 1,21,600  Net Profit: Rs. 18,450 Q20. On 1st April, 2011 X Y and Z started their business in Partnership and decided to share profits and losses in the ratio of 5:3:2. They introduced capital as X Rs. 50,000, Y Rs. 30,000, Z Rs. 20,000. (S) On 31st March 2012 their financial position was as follows: Cash in hand Rs. 2,500, Bank Overdraft Rs. 15,000, Sundry Creditors Rs. 10,200, Sundry Debtors Rs. 17,300, Bills Payable Rs. 3,500, Bills Receivable Rs. 4,000, Stock Rs. 20,400, Plant and Machinery Rs. 30,000, Furniture Rs. 9,800, Loan from N bank Rs. 20,000, Building Rs. 70,000, Outstanding Salary Rs. 1,000 During the year the partners have withdrawn cash from the business for personal use X: Rs. 4,500, Y: Rs. 3,500 and Z: Rs. 6,900. Additional Information: O 1. Bad debts Rs. 300 are to be written off 2. Stock was overvalued by Rs. 400 and furniture was undervalued by Rs. 200. C 3. Interest on bank loan was Rs. 1,000 payable. 4. Provide 10% R.D.D. on Debtors. 5. Salary Rs. 500 per month payable to Z. Prepare Statement of Profit or Loss for the year ended 31st March, 2012. Answer: E  Combined Closing Capital: Rs. 1,01,000  Opening Capital: Rs. 1,00,100  Net Profit: X : Rs. 5,000 Y: Rs. 3,000 Z: Rs. 2,000 PL Section II – Board Problems Q1. Following incomplete information is available from the records maintained by Mr. Premnath. (March 2011) Particular 1.4.2009 Amount (Rs.) 31.3.2010 Amount (Rs.) Cash Balance 12,000 13,000 Bank Balance 26,000 30,000 M Sundry Debtors 20,000 26,000 Stock 24,000 26,000 Furniture 24,000 24,000 Creditors 20,000 20,000 SA 10% Bank Loan 20,000 20,000 Additional Information 1. Mr. Premnath introduced additional capital in the business amounted to Rs. 15,000 on 1st January, 2010. 2. He has paid life insurance premium Rs.10, 000 from the business account and withdrawn goods worth Rs. 5,000 for his personal use. 3. Write off Rs. 1,000 as bad debts and maintain reserve for doubtful debts at 5% on remaining debtors. 4. Provide depreciation at 5% p.a. on Furniture. 5. The closing balance of sundry creditors has been overvalued by Rs. 2, 000 in the books of account 8 - 253  S.Y.J.C. Book-keeping and Accountancy 6. Provide Interest on Capital and Bank Loan @ 10% p.a. Answer:  Closing Capital: Rs. 79,000  Opening Capital: Rs. 66,000  Net Profit: Rs. 2,575 Q2. Mr. Anand gives you the following information: (October 2011) Particular 31.3.2003 Amount (Rs.) 31.3.2004 Amount (Rs.) T Cash 5,000 6,000 Bank 15,000 18,000 Debtors 10,000 8,000 N Stock 8,000 12,000 Furniture 12,000 12,000 Creditors 2,000 6,000 Bill Payable 2,000 - TE During the year Mr. Anand introduced Rs. 4,000 as further capital in the business.He has withdrawn cash Rs. 20,000 out of which he spent Rs. 15,000 on 1.10.2003 for purchase of scooter for business use. Adjustments : (1) Depreciated furniture @ 10% p.a. (2) Depreciated scooter @ 20% p.a. (3) Create provision for doubtful debts @ 5% of the debtor as on 31-03-2004 N (4) Provide interest on capital at 10% p.a. Prepare: (1) Statements of Affairs as on 31.03.2003 (2) Statements of Affairs as on 31.03.2004. Answer:  Closing Capital: Rs. 61,900 O (3) Statements of Profit & Loss for the year ending 31.03.2004.  Opening Capital: Rs. 46,000  Net Profit: Rs. 27,300 C Q3. Mr. Prabhakar is a retail trader. He had no proper methods of accounting. But the following information is made available to you. (March 2012) Particular 01.4.2009 Amount (Rs.) 31.3.2010 Amount (Rs.) Sundry Debtors 45,000 50,000 Sundry Creditors 60,000 70,000 E Bank Overdraft 80,000 40,000 Stock 65,000 80,000 Cash in Hand 2,000 8,000 PL Bills receivable 60,000 80,000 Furniture 10,000 10,000 Motor Van 80,000 80,000 Computer 60,000 1,20,000 10% Govt. Bonds – 10,000 Adjustments: 1. On 1st October, 2009 Mr. Prabhakar had withdrawn Rs. 40,000 for his personal use M 2. 10% Government Bonds were purchased of Rs. 10,000 on 1st October, 2009. 3. He had also withdrawn Rs. 30,000 for his daughter’s marriage. 4. Depreciate furniture by 10% and write off Rs. 2,000 from motor van. 5. Rs. 2,000 is written off as bad debts and provide 5% R.D.D. on debtors. SA 6. Allow interest on capital at 10% p.a. 7. Charge interest on drawings Rs. 2,000. Prepare after taking into consideration the adjustments: a. Opening Statement of affairs of 01.04.2009, b. Closing statement of affairs of 31.03.2010 c. Statement showing Profit and Loss for the year ended on 31.03.2010. Answer:  Closing Capital: Rs. 3,28,000  Opening Capital: Rs. 1,82,000  Net Profit: Rs. 1,92,900 8 - 254  Single Entry System Q4. Mr. Vilas Hukkeri keeps his books by single Entry System. (October 2012) From the following information, you are required to Prepare a) Statement of Affairs as on 31st March 2009. b) Statement of Affairs on 31st March, 2010. c) Statement showing the profit and loss of Mr. Vilas Hukker for the year ended 31st March, 2010 after taking into T consideration the adjustment given below: Particular 01.4.2009 Amount (Rs.) 31.3.2010 Amount (Rs.) Machinery 1,00,000 1,00,000 N Furniture 1,00,000 60,000 Debtors 36,000 50,000 Creditors 36,000 40,000 TE Stock 50,000 80,000 BIR 10,000 4,000 Outstanding salary 3,000 – Prepared Insurance – 1,000 Cash in Hand 6,000 10,000 Cash at Bank 50,000 70,000 N Adjustments: 1. On 1st October, 2009 Mr. Vilas Hukkeri introduced Rs. 20,000 as further capital in the business. 2. He has withdrawn Rs. 6,000 from the business during year for personal use. O 3. Depreciation is to be provided on machinery at 5% p.a. 4. A provision for bad and doubtful debts is to be maintained at 2% on debtors. 5. Provide interest on capital at 5% p.a. and on drawings at 5% p.a. C Answer:  Closing Capital: Rs. 3,35,000  Opening Capital: Rs. 3,13,000  Net Loss : Rs. 14,000 Q5. Mr. Yogesh keeps his books on single Entry System. From the following particular prepare Opening and Closing Statement of Affairs and Statement of profit and loss. (March 2013) Particular 01.4.2009 Amount (Rs.) 31.3.2010 Amount (Rs.) E Bank Balance 36,000 27,000 Cash Balance 7,500 9,000 Sundry debtors 90,000 1,20,000 PL Stock 60,000 90,000 Furniture 9,000 9,000 Machinery 60,000 90,000 Sundry creditors 36,000 60,000 Bills Payable 16,500 27,000 M Adjustments: 1. Mr. Yogesh has withdrawn Rs. 22,500 from the business for his personal use. 2. He has introduced additional capital of Rs. 7,500 in the business on 1st January 2010. SA 3. Additions to machinery were made on 1st January, 2010 4. Depreciate furniture and machinery @ 10% p.a. 5. Maintain reserve for doubtful debts @2% on sundry debtors. 6. Closing stock is overvalued by 20% in the books. Answer:  Closing Capital: Rs. 2,58,000  Opening Capital: Rs. 2,10,000  Net Profit: Rs. 37,950 8 - 255  S.Y.J.C. Book-keeping and Accountancy Q6. Mrs. Prachi Tale Keeps her books on Single Entry system: The following information is disclosed here: (October 2013) Particular 01.3.2009 Amount (Rs.) 31.3.2010 Amount (Rs.) Cash in bank 15,000 20,000 Stock in trade 10,000 12,000 Debtors 20,000 30,000 Furniture 30,000 30,000 T Sundry creditors 25,000 40,000 Bills payable 5,000 9,000 Loan from Mrs. Pritie – 5,000 Investment – 20,000 N Adjustments: 1. Mrs. Prachi Tale had withdrawn Rs. 6,000 for private use from business. 2. She sold her private car for Rs. 10,000 and invested it as additional capital TE 3. Furniture is to be depreciated by 10% p.a. 4. R.D.D. is to be maintained at 5% on debtors. Prepare a. Opening and closing statement of affairs and b. Statement of profit or loss for the year ending 31st March, 2010. N Answer:  Closing Capital: Rs. 45,000  Opening Capital: Rs. 58,000  Net Profit: Rs. 4,500 Q7. Mr. Keshav keeps his books on single entry system and disclosed the following information of his business: (March 2014) Particular Investment Bills payable Creditors O 01.3.2009 Amount (Rs.) 31.3.2010 Amount (Rs.) 52,500 – – 30,000 18,000 69,000 C Furniture 15,000 45,000 Debtors 60,000 90,000 Stock in trade 30,000 37,500 Cash at bank 36,000 54,000 Adjustments: E 1. Mr. Keshav transferred Rs. 3,000 per month during the first half year and Rs. 2,000 per month for the second half year from business account to his personal account. 2. He also took goods worth Rs. 7,000 for private use. PL 3. He sold his private asset for Rs. 27,000 and brought the proceeds into his business. 4. Furniture to be depreciated by 10% 5. Provide reserve for doubtful debts at 5% on debtors.  Prepare: Opening Statement of Affairs, Closing Statement of Affairs, Statement of Profit and Loss for the year ended 31st March, 2010 M Answer:  Closing Capital: Rs. 1,69,500  Opening Capital: Rs. 88,500  Net Profit: Rs. 82,000 Q8. Mrs. Asha keeps her books on Single Entry System and gives the following information: (October 2014) Particulars 31.3.2011 Amount (Rs.) 31.3.2012 Amount (Rs.) SA Cash at Bank 10,000 64,000 Sundry debtors 50,000 80,000 Stock in Trade 60,000 1,00,000 Furniture 40,000 40,000 Machinery 1,00,000 1,00,000 Bills Payable 10,000 10,000 Sundry Creditors 30,000 40,000 8 - 256  Single Entry System Mrs. Asha withdrew from business Rs. 30,000 for personal use. She further introduced fresh capital of Rs. 50,000. Depreciation is to be charged @ 10% p.a. on furniture and machinery. Prepare: (a) Statement of affairs as on 31.3.2011 (b) Statement of affairs as on 31.3.2012 T (c) Statement of Profit or Loss for the year ending 31.3.2012. Answer:  Closing Capital: Rs. 3,34,000  Opening Capital: Rs. 2,20,000  Net Profit: Rs. 80,000 N Q9. Mr. Anil keeps his books by single entry method. Following are the details of his business (March 2015) Particulars 01.04.2012 31.03.2013 Amount (Rs.) Amount (Rs.) TE Cash in hand 10,000 16,000 Cash at bank 20,000 36,000 Stock 16,000 24,000 Furniture 18,000 18,000 Plant and Machinery 60,000 90,000 Creditors 15,000 18,000 Debtors 24,000 30,000 N During the year, Mr.Anil has withdrawn Rs.10,000 for his private purpose and bought goods of Rs.2,000 for household use. On 1st October, 2012, he sold his household furniture for Rs.2,000 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. c. Opening Statement of Affairs b. Closing Statement of Affairs O Statement of Profit or Loss for the year ended 31st March, 2013. C Answer:  Closing Capital: Rs. 1,96,000  Opening Capital: Rs. 1,33,000  Net Profit: Rs. 64,600 Q10. Shree Rajesh keeps his books by Single Entry Method. Following are the details of his business. (October 2015) E Particulars 01.04.2012 31.03.2013 Amount (Rs.) Amount (Rs.) Cash in hand 10,000 16,000 Cash at bank 20,000 36,000 PL Stock 16,000 24,000 Furniture 18,000 18,000 Plant and Machinery 60,000 90,000 Creditors 15,000 18,000 Debtors 24,000 30,000 During the year Shri Rajesh has withdrawn Rs. 10,000 for his private purpose