Mrs Bhavana keeps his books by
Single Entry System. You.re required to prepare final accounts of her business
for the year ended December 31, 2005. Her records relating to cash receipts and
cash payments for the above period showed the following particulars :
Summary
of Cash
Dr.
Cr.
Receipts
Amount
Rs
Payments
Amount
Rs
Opening balance of cash
12,000
Paid to creditors
53,000
Further capital
20,000
Business expenses
12,000
Received from debtors
1,20,000
Wage paid
30,000
Bhavana’s drawings
15,000
Balance at bank on
35,000
Dec. 31,2005
Cash in hand
7,000
1,52,000
1,52,000
The following information is
also available:
Jan. 01, 2005
Dec. 31, 2005
Rs
Rs
Debtors
55,000
85,000
Creditors
22,000
29,000
Stock
35,000
70,000
Plant
10,00,000
1,00,000
Machinery
50,000
50,000
Land and Building
2,50,000
2,50,000
Investment
20,000
20,000
All her sales and purchases were
on credit. Provide depreciation on plant and building by 10% and machinery by
5%, make a provision for bad debts by 5%.
Mrs Bhavana keeps his books by Single Entry System. You.re required to prepare final accounts of her business for the year ended December 31, 2005. Her records relating to cash receipts and cash payments for the above period showed the following particulars :
|
Summary of Cash |
|||
|
Dr. |
|
|
Cr. |
|
Receipts |
Amount Rs |
Payments |
Amount Rs |
|
Opening balance of cash |
12,000 |
Paid to creditors |
53,000 |
|
Further capital |
20,000 |
Business expenses |
12,000 |
|
Received from debtors |
1,20,000 |
Wage paid |
30,000 |
|
|
|
Bhavana’s drawings |
15,000 |
|
|
|
Balance at bank on |
35,000 |
|
|
|
Dec. 31,2005 |
|
|
|
|
Cash in hand |
7,000 |
|
|
1,52,000 |
|
1,52,000 |
|
|
|
|
|
The following information is also available:
|
|
Jan. 01, 2005 |
Dec. 31, 2005 |
||
|
|
|
Rs |
|
Rs |
|
Debtors |
|
55,000 |
|
85,000 |
|
Creditors |
|
22,000 |
|
29,000 |
|
Stock |
|
35,000 |
|
70,000 |
|
Plant |
|
10,00,000 |
|
1,00,000 |
|
Machinery |
|
50,000 |
|
50,000 |
|
Land and Building |
|
2,50,000 |
|
2,50,000 |
|
Investment |
|
20,000 |
|
20,000 |
All her sales and purchases were on credit. Provide depreciation on plant and building by 10% and machinery by 5%, make a provision for bad debts by 5%.
|
Books
of Mrs. Bhavana Debtors Account |
||||
|
Dr. |
Cr. |
|||
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
Balance b/d |
55,000 |
Cash |
1,20,000 |
|
|
Sales—Credit |
1,50,000 |
Balance c/d |
85,000 |
|
|
|
|
|
|
|
|
|
2,05,000 |
|
2,05,000 |
|
|
|
|
|
|
|
|
Creditors Account |
||||
|
Dr. |
Cr. |
|||
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
Cash |
53,000 |
Balance b/d |
22,000 |
|
|
|
Purchases—Credit |
60,000 |
||
|
Balance c/d |
29,000 |
|
|
|
|
|
|
|
|
|
|
|
82,000 |
|
82,000 |
|
|
|
|
|
|
|
|
Statement of Affairs as on Jan.01, 2005 |
|||
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Creditors |
22,000 |
Debtors |
55,000 |
|
Capital—Opening |
5,00,000 |
Stock |
35,000 |
|
(Balancing figure) |
|
Plant |
1,00,000 |
|
|
|
Machinery |
50,000 |
|
|
|
Land and Building |
2,50,000 |
|
|
|
Investment |
20,000 |
|
|
|
Cash |
12,000 |
|
|
|
|
|
|
|
5,22,000 |
|
5,22,000 |
|
|
|
|
|
Note: It has been assumed that total sales are credit sales (i.e. all sales are made on credit) and total purchases are credit purchases (i.e. all purchases are made on credit).
Plant of Rs 1,00,000 has been taken in to the statement of affairs on January 01, 2005, instead of Rs 10,00,000.
|
Trading Account as on December 31, 2005 |
||||
|
Dr. |
Cr. |
|||
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
Opening Stock |
35,000 |
Sales |
1,50,000 |
|
|
Purchases |
60,000 |
Closing Stock |
70,000 |
|
|
Wages |
30,000 |
|
|
|
|
Profit and Loss (Gross Profit) |
95,000 |
|
|
|
|
(Balancing figure) |
|
|
|
|
|
|
|
|
|
|
|
|
2,20,000 |
|
2,20,000 |
|
|
|
|
|
|
|
|
Profit and Loss Account |
||||
|
Dr. |
Cr. |
|||
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
Business Expenses |
12,000 |
Trading (Gross profit) |
95,000 |
|
|
Depreciation on Plant |
10,000 |
|
|
|
|
Depreciation on Building |
25,000 |
|
|
|
|
Depreciation Machines |
2,500 |
|
|
|
|
Provision for Doubtful Debt |
4,250 |
|
|
|
|
Net Profit |
41,250 |
|
|
|
|
(Balancing figure) |
|
|
|
|
|
|
|
|
|
|
|
|
95,000 |
|
95,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on December 31, 2005 |
|||||||||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||||||
|
Creditors |
|
29,000 |
Debtors |
85,000 |
|
||||
|
Capital—Opening |
5,00,000 |
|
Less: 5% Provision for Bad-debt |
(4,250) |
80,750 |
||||
|
|
Add: Net Profit |
41,250 |
|
Stock |
70,000 |
||||
|
|
Add: Further Capital |
20,000 |
|
Plant |
1,00,000 |
|
|||
|
|
5,61,250 |
|
Less: 10% Depreciation |
(10,000) |
90,000 |
||||
|
|
Less: Drawings |
(15,000) |
5,46,250 |
|
|
||||
|
|
|
|
|
Machinery |
50,000 |
|
|||
|
|
|
|
Less: 10% Depreciation |
(2,500) |
47,500 |
||||
|
|
|
|
|
|
|||||
|
|
|
|
Land and Building |
2,50,000 |
|
||||
|
|
|
|
Less: 10% Depreciation |
(25,000) |
2,25,000 |
||||
|
|
|
|
|
||||||
|
|
|
|
Investment |
20,000 |
|||||
|
|
|
|
Cash in Hand |
7,000 |
|||||
|
|
|
|
Cash at Bank |
35,000 |
|||||
|
|
|
|
|
|
|||||
|
|
|
5,75,250 |
|
5,75,250 |
|||||
|
|
|
|
|
|
|||||