Following incomplete information is available from the records maintained by Mr. Premnath.
| Particulars | 1.4.2009Rs. | 31.3.2010Rs. |
| Cash Balance
Bank Balance
Sundry Debtors
Stock
Furniture
Creditors
10% Bank Loan | 12,000
26,000
20,000
24,000
24,000
20,000
20,000 | 13,000
30,000
26,000
26,000
24,000
20,000
20,000 |
Additional Information :
(1) Mr. Premnath introduced additional capital in the business amounted to Rs 15,000 on 1st January, 2010.
(2) He has paid life insurance premium Rs 10,000 from the business account and withdrawn goods worth Rs 5,000 for his personal use.
(3) Write *** Rs 1,000 as bad debts and maintain reserve for doubtful debts at 5% on remaining debtors.
(4) Provide depreciation at 5% p.a. on furniture.
(5) The closing balance of sundry creditors has been overvalued by Rs 2,000 in the books of account.
(6) Provide Interest on Capital and Bank Loan @ 10% p.a.
Prepare :
(i) Statement of Affairs as on 1.4.2009.
(ii) Statement of Affairs as on 31.3.2010.
(iii) Statement of Profit or Loss for the year ended 31st March, 2010.
