Question No 10 Chapter No 19
10.Hari maintains her books of account on Single Entry System. His books provide the following information:
| 1st April, 2017 | 31st March, 2018 | |
| Furniture | 2,000 | 2,000 |
| Stock | 28,000 | 30,500 |
| Sundry Debtors | 21,000 | 34,000 |
| Cash | 1,500 | 2,000 |
| Sundry Creditors | 17,500 | 19,000 |
| Bills Receivable | … | 3,000 |
| Loan | … | 5,000 |
| Investments | … | 10,000 |
His drawings during the year were 5,000 Depreciate furniture by 10% and provide a reserve for Bad and Doubtful Debts at 10% on Sundry Debtors. Prepare the statement showing the profits for the year.
The solution of Question No 10 Chapter No 19:-
Working Notes
| Statements of Affairs as on April 01, 2017 |
||||
| Liabilities |
Amount | Assets |
Amount | |
| Sundry Creditors | 17,500 | Furniture | 2,000 | |
| Stock | 28,000 | |||
| Capital | 35,000 | Sundry Debtors | 21,000 | |
| Cash | 1,500 | |||
| 52,500 | 52,500 | |||
| Closing Statement of Affairs |
||||
| Liabilities |
Amount | Assets | Amount | |
| Sundry Creditors | 19,000 | Furniture | 2,000 | |
| Loan | 5,000 | Less: 10% Depreciation | 200 | 1,8000 |
| Stock | 30,500 | |||
| Sundry Debtors | 34,000 | |||
| Less: 10% Reserve for Doubtful Debts | 3,400 | 30,600 | ||
| Cash | 2,000 | |||
| Bills Receivables | 3,000 | |||
| Investments | 10,000 | |||
| Capital | 53,900 | |||
| 77,900 | 77,900 | |||
| Statement of Profit or Loss for the year and March 31, 2018 |
||
| Particular |
Amount | |
| Capital as on March 31, 2018 | 53,900 | |
| Add: Drawings | 5,000 | |
| 58,900 | ||
| Less: Capital as on April 01, 2017 |
35, 000 | |
| Profit made during the year 2017-18 | 23,900 | |
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Also, Check out the solved question of previous Chapters: –
-
- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
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