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20.4 Double Entry Book Keeping—CBSE XI

5. Ram Prasad keeps his books on single entry system, and from them and the particulars
supplied, the following figures were gathered together on 31st March 2024:
Book Debts ` 10,000; Cash in hand, ` 510; Stock-in-trade (estimated) ` 6,000;
Furnitures, ` 1,200; Trade Creditors, ` 4,000; Bank overdraft ` 1,000. Ram Prasad
stated that he started business on 1st April, 2023 with Cash ` 6,000 and Stock
valued at ` 4,000. During the year, he estimated his drawings to be ` 7,400 and
Additional Capital introduced ` 5,000. You are required to prepare a statement,
showing profit for the year, after writing-off 10% for depreciation on Furniture.
(MSE Chandigarh 2015, Modified)

Solution: STATEMENT OF PROFIT OR LOSS for the year ended 31st March, 2024
Particulars `
Capital at the end (Note 1) 12,710
Add: Drawings during the year 7,400
20,110
Less: Additional Capital introduced during the year 5,000
Adjusted Capital at the end 15,110
Less: Capital in the beginning (Note 2) 10,000
Profit subject to Adjustments 5,110
Less: Depreciation 120
Net Profit for the year 4,990
Notes: 1. Calculation of Closing Capital:
STATEMENT OF AFFAIRS as at 31st March, 2024
Liabilities ` Assets `
Trade Creditors 4,000 Book Debts 10,000
Bank Overdraft 1,000 Cash in-hand 510
Capital (Balancing Figure) 12,710 Stock-in-trade 6,000
Furniture 1,200
17,710 17,710
2. Capital in the beginning = ` 6,000 (Cash) + ` 4,000 (Stock) = ` 10,000
6. Shruti maintains her books of accounts from Incomplete Records. Her books provide
the following information:
Particulars 1st April, 2023 31st March, 2024
` `
Cash 1,200 1,600
Debtors 16,800 29,600
Stock 22,400 24,400
Investments ... 8,000
Furniture 7,500 8,000
Creditors 14,000 15,200

She withdrew ` 300 per month for personal expenses. She sold her Investments of
` 16,000 at 20% premium and introduced that amount into business.
You are required to prepare a Statement of Profit or Loss for the year ending
March 31, 2024. (KVS 2015, Modified)