Question - 12
X keeps his books on single entry system following information is available from his books :
Sundry debtors 30,000 62,000
Stock 44,000 68,000
Loan from wife 15,000 15,000
Sundry creditors 22,600 16,800
Office equipments 15,000 12,500
Building 60,000 60,000
Cash balance 2,100 4,500
Bank overdraft 13,500 25,000
During the year X received Rs. 1,000 per month as pension of which he invesred Rs. 7,500 into the business.
X withdrew from the business Rs. 1,000 per month up to 31st May, 2000 and thereafter Rs. 2000 per month as drawing in addition he withdrew from the business Rs, 4,200 for paying inocme tax and Rs. 3,000 to pay the legal exp. in a private suit.
Adjustments :
- Outstanding exp. Rs. 1,800 and prepaid exp. Rs. 500.
- Commission earned but not received Rs. 2000.
- Depreciate office equipment by 20%.
- Provide 4% on debtors for doutful debts.
Prepare a statement to ascertain the profit and loss and also prepare the final statement a affairs as on 31st dec. 2000.
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