SAI SUDHIR DEGREE & PG COLLEGE

Problem 12
Following is the position of Assets and Liabilities of Sri Kiran, a retail
trader, who keeps his books by Single Entry system:
Particulars 1-4-2019 31-3-2020
Debtors 26500 44000
Creditors 7500 9750
Stock 8500 9500
Fixed Assets 10700 8700
Other details
Total Sales (including Cash Sales ₹ 2500) ₹ 50000
Total Purchases (including Cash purchases ₹ 10250) ₹22500
General Expense’s ₹5000
Drawings ₹1500
Cash ₹2050
Payments for Fixed Assets ₹ 2500
Stock of ₹2500 was used by him for his personal use and material of ₹250
used for constructing a part of plant. Allow interest on Capital @ 5% p.a.
Prepare Profit and Loss A/c and Balance Sheet for the year ended 31st
March 2020.

Solution 12
Working notes:

1. Calculation of Capital

2. Cash Received from Debtors and Cash Paid to Creditors

3. Cash Book for calculation for Closing Cash Balance

4. Trading and Profit & Loss Account for the year ended 31st March 2020.

5. Balance Sheet as on 31st March 2020

SAI SUDHIR DEGREE & PG COLLEGE