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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Bank balances","25,000","31,000"),("Stock","40,000","45,000"),("Creditors","9,000","10,000"):} Adjustments: (a) He had withdrawn Rs. 200 in the beginning of every month for householdpurposes.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. |
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Answer» On Rs. 200 for 6 MONTHS = On Rs. 1,200 for 1 month On Rs. 200 for 5 month = On Rs. 1,000 for 1 month On Rs. 200 for 4 months = On Rs. 800 for 1 month On Rs. 200 for 3 months = On Rs. 600 for 1 month On Rs. 200 for 2 months = On Rs. 400 for 1 month On Rs. 200 for 1 month = On Rs. 200 for 1 month Or On Rs. 4,200 for 1 month Interest = Rs. `4,200xx6//100xx1//2=Rs.21.` 2. Depraciation on Plant = Rs. `1,40,000xx10//100xx6//12=Rs.7,000`. 3. Provision for Doubtful Debts = `2//100(Rs. 60,000-Rs.5,000)=Rs. 1,100.` 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. |
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