Page 169 - debkxi

Accounts from Incomplete Records—Single Entry System 20.5

Solution: STATEMENT OF AFFAIRS
as at 1st April, 2023
Liabilities ` Assets `
Creditors 14,000 Cash 1,200
Capital (Balancing Figure) 33,900 Debtors 16,800
Stock 22,400
Furniture 7,500
47,900 47,900

STATEMENT OF AFFAIRS
as at 31st March, 2024
Liabilities ` Assets `

Creditors 15,200 Cash 1,600
Capital (Balancing Figure) 56,400 Debtors 29,600
Stock 24,400
Investments 8,000
Furniture 8,000
71,600 71,600

STATEMENT OF PROFIT OR LOSS
for the year ending 31st March, 2024
Particulars `
Closing Capital 56,400
Add: Drawings (` 300 × 12) 3,600
60,000
Less: Opening Capital 33,900
Capital introduced during the year [` 16,000 + 20% of ` 16,000] 19,200 53,100
Net Profit for the year 6,900

7. Mr. Wise keeps his books on Single Entry System and the following information is
disclosed from his records:
As at 1st April, 2023 (`) As at 31st March, 2024 (`)
Balance at Bank 3,150 (Cr.) 8,400
Stock-in-Trade 22,500 30,000
Sundry Debtors 45,000 42,800
Furniture 7,500 7,500
Investments 7,500 7,500
Cash in Hand 150 600
Sundry Creditors 39,000 41,250
Loan from Mr. Faithful ... 4,500
Mr. Wise transferred ` 375 every month during the first half of the year and ` 300
every month for the remaining period from the business to his personal bank account
by way of drawings. In addition, he withdrew ` 7,500 for his daughter’s marriage and