Question - 09

The financial position of a business who maintained his records on basis of single entry system is as follows :

          Assets and liabilities                                1.1.2005                         31.12.2005

Cash                                                                      200                                      280
Bank                                                                   5,400                                  2,300
Machinery                                                          5,500                                  4,500
Debtors                                                              3,357                                  4,520
Creditors                                                            3,957                                  2,900
Building                                                                100                                    150

On 1st Jan, 2005 he withdrew from business Rs. 6,400 out of which he spent Rs. 5,500 on purchase of vahicle.
Find out profit of the businessman for the year 2005 and prepare his balance sheet as on 31st Dec., 2005 after taking into consideration the following : (a) Depreciate building and vehicle @ 10%. (b) Write off Rs. 20 for bad debts, (c) Make a provision of % on debtors for bad and doubtful debtors.