Page 246 - ISCDEBK-XI

22.4 Double Entry Book Keeping—ISC XI
Illustration 2.
Sooraj started business with capital of ` 90,000 on 1st April, 2021. He keeps his books of account
on Single Entry System.
The following data is available from his Cash Book for the year ended 31st March, 2022:

`
Purchase of Furniture (on 1st May, 2021) 21,000
Purchase of Machinery (on 30th June, 2021) 65,000
Cash Sales 36,000
Cash Purchases 19,600
Cash Received from Customers 42,000
Paid to Suppliers 37,800
Sundry Expenses 11,200
Drawings 17,000
Sale of Personal Land 39,000
Cashed Personal FDR 10,000
Deposit in SBI Fixed Deposit Account 25,000
Received Interest from SBI Fixed Deposit Account 2,400
His position on 31st March, 2022 was as under:
Debtors 34,900
Creditors 12,400
Closing Stock 11,700
Outstanding Expenses 3,000
Prepaid Expenses 1,400
Computer (Purchased on 1st September, 2021 from M/s Star Computers) 27,000
Following adjustments are to be made:
(i) All fixed assets are to be depreciated @ 10% p.a.
(ii) Provision for doubtful debt is to be created @ 5% on debtors.
From the above information, ascertain his profit or loss for the year ended 31st March, 2022
and prepare his statement of affairs as on that date.
Solution: As the closing cash in hand is not given, a Cash Account is prepared for calculating
the closing Cash Balance.
In the Books of Sooraj
Dr. CASH ACCOUNT/CASH BOOK Cr.
Particulars ` Particulars `
To Capital A/c 90,000 By Purchases 19,600
To Sales 36,000 By Furniture 21,000
To Debtors (Received from Customers) 42,000 By Machinery 65,000
To Capital (Sale of Personal Land) 39,000 By Creditors (Paid to Suppliers) 37,800
To Capital (Cashed Personal FDR) 10,000 By Sundry Expenses 11,200
To Interest (Received from Bank) 2,400 By Drawings 17,000
By Investment (SBI Fixed Deposit Account) 25,000
By Balance c/d 22,800
2,19,400 2,19,400