Manuju keeps his books under incomplete records. He provides you the following information.
| Particulars | As on 1-4-2015 Rs. | As on 31-3-2016 Rs. |
|---|---|---|
| Cash at Bank | 6000 | 8000 |
| Bills receivable | 3000 | 4000 |
| Bills payable | - | 2000 |
| Debtors | 20,000 | 25,500 |
| Creditors | 16,000 | 20,000 |
| Furniture | 10,000 | 10,000 |
| Investments | - | 4000 |
| Building | 50,000 | 50,000 |
| Stock | 14000 | 16000 |
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 :
- Statement of affairs.
- Statement of profit and loss for the year ended 31-03-2016
- Revised statement of affairs as on that date.
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Start your 14-day free trial to unlock the full solution →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)
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Creditors | 16,000 | Cash at Bank | 6,000 |
| Capital (balancing figure) | 87,000 | Bills Receivable | 3,000 |
| Debtors | 20,000 | ||
| Stock | 14,000 | ||
| Furniture | 10,000 | ||
| Building | 50,000 | ||
| Total | 1,03,000 | Total | 1,03,000 |
Opening capital = Assets 1,03,000 – Liabilities 16,000 = Rs 87,000.
Closing Statement of Affairs as on 31-3-2016 (before adjustments)
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Bills Payable | 2,000 | Cash at Bank | 8,000 |
| Creditors | 20,000 | Bills Receivable | 4,000 |
| Capital (balancing figure) | 95,500 | Debtors | 25,500 |
| Stock | 16,000 | ||
| Furniture | 10,000 | ||
| Investments | 4,000 | ||
| Building | 50,000 | ||
| Total | 1,17,500 | Total | 1,17,500 |
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
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|---|---|---|---|
| Bills Payable | 2,000 | Cash at Bank | 8,000 |
| Creditors | 20,000 | Bills Receivable | 4,000 |
| Outstanding Rent | 100 | Debtors 25,500 – 500 | 25,000 |
| Adjusted Capital (bal. fig.) | 1,03,900 | Stock | 16,000 |
| Furniture 10,000 – 1,000 | 9,000 | ||
| Investments | 4,000 | ||
| Building 50,000 + 10,000 | 60,000 | ||
| Total | 1,26,000 | Total | 1,26,000 |
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
| Particulars | Amount (Rs) |
|---|---|
| Adjusted closing capital | 1,03,900 |
| Add: Drawings | 5,000 |
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