Question - 17

Ajit started business on 1st Jan. 2000 with a capital of Rs. 10,000 and maintained only cash book and personal accounts (under single entry system) his stock on 31st Dec., 2000 was Rs. 10,000 and his cash book showed following entries :

Income from capital A/c Rs. 10,000 (Cr.)
Amount received from Rs. 70,000 (Cr.)
Debrors 
Cash sales Rs. 21,000 (Cr.)
Payment to creditors Rs. 50,000 (Dr.)
Expenditure A/c Rs. 11,000 (Dr.)
Drawing Rs. 20,000 (Dr.)
Cash purchased Rs. 8,000 (Dr.) 
Cash balance Rs. 12,000 (Dr.)

Rs. 60,000 were owing by debtors on 31st Dec., 2000 and amount owed to creditors was Rs. 55,000 prepare profit and loss A/c and balance sheet as on 31st Dec., 2000.