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Q.

Manuju keeps his books under incomplete records. He provides you the following information.

ParticularsAs on 1-4-2015 Rs.As on 31-3-2016 Rs.
Cash at Bank60008000
Bills receivable30004000
Bills payable-2000
Debtors20,00025,500
Creditors16,00020,000
Furniture10,00010,000
Investments-4000
Building50,00050,000
Stock1400016000

During the year Manju withdraw Rs. 5000 for his personal Use. He introduced additional capital of Rs. [amount not legible in source].

Adjustments :

a) Depreciate Furniture at 10% p.a.

b) Appreciate Building by 20%

c) Rent due but not paid Rs. 100

d) Write off bad debts Rs. 500

Prepare :

  1. Statement of affairs.
  2. Statement of profit and loss for the year ended 31-03-2016
  3. Revised statement of affairs as on that date.
Karnataka PUCKarnataka 1st PUC Commerce Board 2020Subjective· 12mImportance★★★★★
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Opening capital 87,000; revised closing capital 1,03,900; Profit = (1,03,900 + drawings 5,000) – additional capital – 87,000 = 21,900 – additional capital. The exact profit cannot be fixed because the additional-capital figure is illegible in the source.

1. Statement of Affairs as on 1-4-2015 (opening)

LiabilitiesAmount (Rs)AssetsAmount (Rs)
Creditors16,000Cash at Bank6,000
Capital (balancing figure)87,000Bills Receivable3,000
Debtors20,000
Stock14,000
Furniture10,000
Building50,000
Total1,03,000Total1,03,000

Opening capital = Assets 1,03,000 – Liabilities 16,000 = Rs 87,000.

Closing Statement of Affairs as on 31-3-2016 (before adjustments)

LiabilitiesAmount (Rs)AssetsAmount (Rs)
Bills Payable2,000Cash at Bank8,000
Creditors20,000Bills Receivable4,000
Capital (balancing figure)95,500Debtors25,500
Stock16,000
Furniture10,000
Investments4,000
Building50,000
Total1,17,500Total1,17,500

Adjustments applied to closing figures: Furniture –10% (–1,000 → 9,000); Building +20% (+10,000 → 60,000); Outstanding rent +100 (liability); Bad debts –500 (Debtors → 25,000).

3. Revised Statement of Affairs as on 31-3-2016

LiabilitiesAmount (Rs)AssetsAmount (Rs)
Bills Payable2,000Cash at Bank8,000
Creditors20,000Bills Receivable4,000
Outstanding Rent100Debtors 25,500 – 50025,000
Adjusted Capital (bal. fig.)1,03,900Stock16,000
Furniture 10,000 – 1,0009,000
Investments4,000
Building 50,000 + 10,00060,000
Total1,26,000Total1,26,000

Adjusted closing capital = Assets 1,26,000 – Liabilities 22,100 = Rs 1,03,900.

2. Statement of Profit or Loss for the year ended 31-3-2016

ParticularsAmount (Rs)
Adjusted closing capital1,03,900
Add: Drawings5,000

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