Page 245 - ISCDEBK-XI

Accounts from Incomplete Records 22.3

STATEMENT OF PROFIT OR LOSS for the year ended 31st March, 2022
Particulars ` `
Capital as per Statement of Affairs as at 31st March, 2022 1,89,000
Add: Drawings:
Household Furniture Purchased 4,000
Cash Withdrawn for Personal Use 20,000 24,000
2,13,000
Less: Additional Capital (Life Insurance Policy matured and brought that amount into the Business) 25,000
1,88,000
Less: Opening Capital: (Cash of ` 36,000, furniture ` 32,000, Stock ` 18,000,
and Machinery ` 60,000 = ` 1,46,000) 1,46,000
Trading Profit/Profit before Adjustments/Gross Profit 42,000
Less: Adjustments:
Interest on Loan 980
Bad Debts 1,600
Provision for Doubtful Debt @ 5% of ` 40,400 (i.e., ` 42,000 – ` 1,600) 2,020
Depreciation on Machinery (WN) 7,950
Depreciation on Furniture (WN) 3,950 16,500
Net Profit for the year 25,500

STATEMENT OF AFFAIRS (After Adjustments)
as at 31st March, 2022
Liabilities ` Assets `

Capital (Opening) 1,46,000 Machinery 86,000
Add: Additional Capital 25,000 Less: Depreciation 7,950 78,050
Net Profit 25,500 Furniture 50,000
1,96,500 Less: Depreciation 3,950 46,050
Less: Drawings 24,000 1,72,500 Computer 25,000
Loan from Ganesh 14,000 Debtors 42,000
Bank Loan 28,000 Less: Bad Debts 1,600
Creditors 23,000 40,400
Outstanding Expenses: Less: Provision for
Interest on Loan 980 Doubtful Debts 2,020 38,380
Closing Stock 27,000
Stationery Stock 1,400
Cash in Hand 22,600
2,38,480 2,38,480

Working Note:
Calculation of Depreciation on Machinery and Furniture: ` `
Depreciation on Machinery: 10% on ` 60,000 for full year 6,000
10% on ` 26,000 for 9 months 1,950 7,950
Depreciation on Furniture: 10% on ` 32,000 for full year 3,200
10% on ` 18,000 for 5 months 750 3,950