Chaman maintains his books according to Single Entry System. Following figures were available from the books for the six month ended 31st December, 2018:{:(,"1st July, 2018 (Rs.)","31st December, 2018 (Rs.)"),("Plant and Machinery","1,50,000","1,40,000"),("Debtors","65,000","60,000"),("Cash and Bank balances","25,000","31,000"),("Stock","40,000","45,000"),("Creditors","9,000","10,000"):} Adjustments: (a) He had withdrawn Rs. 200 in the beginning of every month for householdpurposes. (b) Depreciation on Plant and Mechinery @10% p.a. (c) Further Bad Debts Rs. 5,000 and Provision for Doubtful Debts to be created @2%. During the period, salaries have been prepaid by Rs. 500 while wages outstanding were Rs. 1,000. (e) Interest on drawings to be reckoned @6% p.a. You are required to prepare the Statement of Profit of Loss for the half year ended 31st December, 2018, followed by Revised Statement of Affairs as on that date.

Chaman maintains his books according to Single Entry System. Following

1.	Chaman maintains his books according to Single Entry System. Following figures were available from the books for the six month ended 31st December, 2018:{:(,"1st July, 2018 (Rs.)","31st December, 2018 (Rs.)"),("Plant and Machinery","1,50,000","1,40,000"),("Debtors","65,000","60,000"),("Cash and Bank balances","25,000","31,000"),("Stock","40,000","45,000"),("Creditors","9,000","10,000"):} Adjustments: (a) He had withdrawn Rs. 200 in the beginning of every month for householdpurposes. (b) Depreciation on Plant and Mechinery @10% p.a. (c) Further Bad Debts Rs. 5,000 and Provision for Doubtful Debts to be created @2%. During the period, salaries have been prepaid by Rs. 500 while wages outstanding were Rs. 1,000. (e) Interest on drawings to be reckoned @6% p.a. You are required to prepare the Statement of Profit of Loss for the half year ended 31st December, 2018, followed by Revised Statement of Affairs as on that date.
Answer» <html><body><p><br/></p>Solution :1. Interest on <a href="https://interviewquestions.tuteehub.com/tag/drawings-959513" style="font-weight:bold;" target="_blank" title="Click to know more about DRAWINGS">DRAWINGS</a>: <br/> On Rs. <a href="https://interviewquestions.tuteehub.com/tag/200-288914" style="font-weight:bold;" target="_blank" title="Click to know more about 200">200</a> for 6 <a href="https://interviewquestions.tuteehub.com/tag/months-1101351" style="font-weight:bold;" target="_blank" title="Click to know more about MONTHS">MONTHS</a> = On Rs. 1,200 for 1 month <br/> On Rs. 200 for <a href="https://interviewquestions.tuteehub.com/tag/5-319454" style="font-weight:bold;" target="_blank" title="Click to know more about 5">5</a> month = On Rs. 1,000 for 1 month <br/> On Rs. 200 for 4 months = On Rs. 800 for 1 month <br/> On Rs. 200 for <a href="https://interviewquestions.tuteehub.com/tag/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a> months = On Rs. 600 for 1 month <br/> On Rs. 200 for 2 months = On Rs. 400 for 1 month <br/> On Rs. 200 for 1 month = On Rs. 200 for 1 month <br/> Or On Rs. 4,200 for 1 month <br/> Interest = Rs. `4,200xx6//100xx1//2=Rs.21.` <br/> 2. Depraciation on Plant = Rs. `1,40,000xx10//100xx6//12=Rs.7,000`. <br/> 3. Provision for Doubtful Debts = `2//100(Rs. 60,000-Rs.5,000)=Rs. 1,100.` <br/> Net Loss = Rs. 4,300 (Gross Loss) `+` Rs. 7,000 (Depreciation) `+` Rs. 5,000 (Bad Debts) `+` Rs. 1,100 (Provision for Doubtful Debts) `-` Rs. 21 (Interest on Drawings) = Rs. 17,379.</body></html>

Discussion

No Comment Found

Related InterviewSolutions

X started a businesss on 1st April , 2018 witha capitalof â‚¹50,000 anda loanof â‚¹25,000 takenfrom Y. During2018-19, hehad introduced additional capital â‚¹25,000 andhad withdrawn15,000 for personal use. On 31st March , 2019 his assets were â‚¹1,50,000. Findhis capital as on 31st March, 2019 and profitmadeor lossincurred duringtheyear 2018-19.
X started a businesss on 1st April , 2018 witha capitalof ₹50,000 anda loanof ₹25,000 takenfrom Y. During2018-19, hehad introduced additional capital ₹25,000 andhad withdrawn15,000 for personal use. On 31st March , 2019 his assets were ₹1,50,000. Findhis capital as on 31st March, 2019 and profitmadeor lossincurred duringtheyear 2018-19.
X Ltd. Gets a contract of ₹ 100 crore to build a Shopping-Mal to be completed in 3 years. The management of the company wants to ascertain profit or loss on this contract only when the contract is completed. Is the management justified?
X Ltd. Follows the Written Down Value Method of depreciating machinery year after year due to
X Ltd . Follows the Written Down value Method of depreciating machinery year after year due to
X hasfollowingassetsand liabilities as on 31st March, 2019. Determinehis capital. Cash â‚¹25,000,Bankâ‚¹ 47,500, Debtors â‚¹ 18,000, Creditors â‚¹ 22,000, Pant and Machiney â‚¹ 80,000, Bulidingâ‚¹2,00,000, Furniture â‚¹ 24,000, Bills Receivableâ‚¹ 56,500, Bills Payable â‚¹23,500.
X hasfollowingassetsand liabilities as on 31st March, 2019. Determinehis capital. Cash ₹25,000,Bank₹ 47,500, Debtors ₹ 18,000, Creditors ₹ 22,000, Pant and Machiney ₹ 80,000, Buliding₹2,00,000, Furniture ₹ 24,000, Bills Receivable₹ 56,500, Bills Payable ₹23,500.
X' commenced business on 1st April, 2013 with a capital of 6,00,000. On 31st March, 2014 his assets were worth 8,00,000 and liabilities 50,000. Find out his closing capital.
Write two adventages of accrual basis of accounting.
Write the following transactions in Debtor's Account , Creditor's Account and Cash Account : {:(,,,"₹"),(1., "Cash sales" ,, 50","000), (3., "Cash received from X" ,, 56","000), (5.,"Paid to Y" ,, 30","000):}:| {:(,,,"₹") , (2., "Sold goods to X on credit" ,, 80","000), (4., "Purchase goods from Y on credit" ,, 44","000), (6., "Cash purchases from Y" ,, 16","000):}

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment