Page 250 - ISCDEBK-XI

22.8 Double Entry Book Keeping—ISC XI

Unsolved Questions

1. Sanjay does not maintain his books of account on complete double entry system. He started his business
with ` 1,65,000. He submits the following particulars of his business as on 31st March, 2022:
` `
Machinery 65,000 Prepaid Expenses 1,600
Furniture 22,000 Outstanding Expenses 800
Debtors 21,800 Cash in Hand 23,700
Creditors 16,400 Cash at Bank 21,000
Closing Stock 30,700 Investments 20,000
Following adjustments are to be made:
(i) Sanjay cashed his FDR amounting to ` 10,000 and brought the money into business oo 1st May, 2021.
(ii) He withdrew ` 8,000 from his business, cash for his personal expenses.
(iii) Depreciate machinery and furniture @ 10% p.a.
(iv) His house rent and school fees of his son amounting to ` 2,400 p.m. were paid from the business cash.
(v) Make provision for doubtful debts @ 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.
2. Samual keeps his books under Single Entry System. His financial position on 1st April, 2021 and 31st March,
2022 was as given below:
1st April, 2021 31st March, 2022
` `
Cash in Hand 12,800 31,400
Cash at Bank 26,000 19,500
Prepaid Expenses 900 1,200
Debtors 43,800 56,300
Creditors 16,300 19,700
Investments 30,000 30,000
Outstanding Expenses 500 800
Closing Stock 15,900 23,100
Land and Building 1,25,000 1,05,000
Machinery 55,000 75,000
Furniture 24,000 34,000
Additional Information:
(i) Machinery and Furniture are to be depreciated @ 10% p.a.
(ii) Cash withdrawn by Samual ` 900 p.m. from the business cash regularly.
(iii) Make a provision for doubtful debts @ 5% on debtors.
(iv) Proprietor’s house rent ` 1,000 p.m. was paid from the business cash regularly.
(v) Accrued interest on investment ` 700.
(vi) He sold his personal jewellery and brought that money into the business ` 18,000.
You are required to prepare a Statement of Profit or Loss for the period ended 31st March, 2022 and draw
a Statement of Affairs as on that date.