Page 252 - ISCDEBK-XI

22.10 Double Entry Book Keeping—ISC XI
2. [Hint: Opening Capital ` 3,16,600; Closing Capital (before Adjustments of Net Profit, Drawings and
Additional Capital)—` 3,55,700; Trading Profit (Gross Profit)—` 43,900; Net Profit—` 31,685;
Closing Capital (After adjustments of Net Profit, Fresh Capital and Drawings)—` 3,43,485; Total of
Statement of Affairs (After Adjustments)—` 3,63,985.]
Note: Depreciation on Machinery and Furniture:
When the date of Purchase of Fixed Assets is not given, depreciation is to be charged on average
basis, i.e., for 6 months.
Depreciation on Machinery = 10% of ` 55,000 + 10% of ` 20,000 (for 6 months) = ` 6,500.
Depreciation on Furniture = 10% of ` 24,000 + 10% of ` 10,000 (for 6 months) = ` 2,900.
3. Net Profit—` 10,504; Total of Statement of Affairs (31st March, 2022)—` 54,704.
[Hint: Capital (1st April, 2021)—` 35,000; Bank Balance as per Cash Book—` 5,930 – ` 700 = ` 5,230.]
4. Opening Capital (31st March, 2021)—` 2,94,000
[` 77,000 (Bank) + ` 2,000 (Cash) + ` 19,000 (Stock) + ` 1,000 (Debtors) + ` 2,00,000 (Machinery) – ` 5,000
(Creditors) = ` 2,94,000]
Closing Capital (31st March, 2022)—` 3,28,000
[` 37,000 (Bank) + ` 3,000 (Cash) + ` 29,000 (Stock) + ` 2,000 (Debtors) + ` 2,60,000 (Machinery) – ` 3,000
(Creditors) = ` 3,28,000]
Net Profit for the year—` 42,400
[Hint: Cash at Bank (31st March, 2022) = Opening Balance (1st April, 2021) + Deposits – Withdrawals
= ` 77,000* + ` 2,30,000 – ` 2,70,000 = ` 37,000.
*` 3,00,000 – ` 2,23,000 = ` 77,000.]