Question no 12 Chapter No 17 - Unimax Class 11

Question No 12 Chapter No 17 – Unimax Class 11

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The solution of Question No 12 Chapter No 17 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

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Nitin keeps incomplete records. The statement of Affairs of her business as at 1st April,2019 was as follows:

Liabilities	Amount	Assets	Amount
Creditors	20,000	Cash in hand	6,000
Capital	1,00,000	Cash at bank	7,000
		Stock	25,000
		Furniture	12,000
		Plant & Machinery	55,000
	1,20,000		1,20,000

His position on 31st March, 2020 was:- cash in hand ₹ 6,000; cash at bank 12,000; B/R 12,000; debtors ₹ 35,000; stock ₹ 50,000; furniture ₹ 60,000; plant & Machinery ₹ 50,000 and creditors ₹ 60,000.
He withdrew during the year ₹ 30,000, out of which he spent ₹ 20,000 for purchasing a scooter for the business.
Calculate his net profit for the year after the following adjustments and prepare a final statement of Affairs as at 31st March, 2020:

(1) Depreciation furniture and scooter @ 10%.
(2) 5% of the debtors are doubtful and ₹ 2,000 are absolutely bad.
(3) Make a provision of % on bills receivable also.

The solution of Question No 12 Chapter No 17 – UNIMAX Class 11

Statement of Affairs
As at 31 March, 2020(Before adjustments)

Liabilities	Amount	Assets	Amount
Creditors	60,000	Cash in hand	6,000
Capital (Balance figure)	1,84,000	Cash at bank	12,000
		Bills receivable	12,000
		Debtors	35,000
		Stock	50,000
		Furniture	60,000
		Scooter	20,000
		Plant & Machinery	50,000
	2,45,000		2,45,000

Statement of Profit & Loss
For the year ended 31st March, 2020

Particulars		₹
Closing Capital as on 31st March, 2020		1,85,000
Add: Drawings during the year (30,000-20,000)		10,000
		1,95,000
Less: Opening capital as on 1st April,2019		1,00,000
Profit before adjustments		95,000
Less: Depreciation on Furniture	6,000
Deprecation on Scooter	2,000
Bad debts	2,000
Provision for doubtful debts 5% on 33,000
(debtors 35,000-bad debts 2,000)	1,650
Provision on B/R (5% on 12,000)	600	12,250
Net profit		82,750

Final Statement of Affairs
As at 31 March, 2020(After adjustments)

Liabilities		Amount	Assets		Amount
Creditors		60,000	Cash in hand		6,000
Opening Capital	1,00,000		Cash at bank		12,000
Add: Net Profit	82,750		Bills receivable	12,000
Less: Drawings	10,000	1,72,750	Less: Provision at 5%	600	11,400
			Debtors	35,000
			Less: Bad debts	2,000
			Less: Provision for doubtful debts	1,650	31,350
			Stock		50,000
			Furniture	60,000
			Less: Depreciation	6,000	54,000
			Scooter	20,000
			Less: Depreciation	2,000	18,000
			Plant & Machinery		50,000
		2,32,750			2,32,750