The following is the Balance Sheet of Mr. Raghu as on Mar 31, 2007.
|
Liabilities
|
|
Assets
|
|
|
Capital
|
1,92,000
|
Buildings1,30,000
|
|
|
Loan
|
60,000
|
Furniture20,000
|
|
|
Creditors
|
124,000
|
Motor car36,000
|
|
|
|
Stock
|
80,000
|
|
|
Debtors
|
68,000
|
|
|
Cash in hand
|
8,000
|
|
|
Cash at bank
|
34,000
|
|
3,76,000
|
|
3,76,000
|
A riot occurred on Mar 31, 2008 in which all books and records were lost. The cashier had absconded with the available cash. Mr. Raghu gives the following information:
- His sales for the year ended Mar 31, 2008 were 20% higher than the previous years. He always sells goods at cost plus 25%; 20% of total sales for the year ended Mar 31, 2008 were for cash; there were no cash purchases.
- On Apr 1, 2007, the stock level was raised to Rs 1,20,000 and the stock was maintained at this level throughout the year.
- Collections from debtors amounted to Rs 5,60,000 of which Rs 1,40,000 was received in cash. Business expenses amounted to Rs 80,000 of which Rs 20,000 was outstanding on 31.3.2008 and Rs 24,000 was paid by cheque.
- Analysis of pass book revealed the following:
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Rs
|
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Payment to Creditors
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5,50,000
|
|
Personal drawings
|
30,000
|
|
Cash deposited in bank
|
2,86,000
|
|
Cash withdrawn from bank
|
48,000
|
- Gross Profit as per last year's audited accounts Rs 1,20,000
- Provide depreciation on buildings and furniture at 5% and motor car @ 20%
- The amount defalcated by the cashier may be treated as received from him.
Prepare the trading and profit and loss account for the year ended Mar 31, 2008