Question

Mrs. Bhavana keeps his books by Single Entry System. You’re required to prepare final accounts of her business for the year ended March 31, 2017. Her records relating to cash receipts and cash payments for the above period showed the following particulars :

The following information is also available :

All her sales and purchases were on credit. Provide depreciation on plant and building by `10%` and machinery by `5%`, make a provision for bad debts by `5%.`

Answer 1

Correct Answer - Gross profit: Rs 95,000, Net Profit: Rs 41,250; Total of balance sheet: Rs 5,75,250