Answer Happy

Additional information:
a) The remaining life of fixed assets is 5 years The pattern of use of the asset is even. The net realisable value of fixed
assets on 31.03.X2 was $ 60,000.
(b) The trader’s purchases and sales in 20X1-X2 amounted to $ 4 lakh and $ 4.5 lakh respectively.
(c) The cost and net realisable value of stock on 31.03.X2 were $ 32,000 and $ 40,000
respectively.
(d) Expenses for the year amounted to $ 14,900.
(e) Deferred cost is amortised equally over 4 yea$
(f) Debtors on 31.03.X2 is $ 25,000, of which $ 2,000 is doubtful. Collection of another
$ 4,000 depends on successful re-installation of certain product supplied to the customer.
(g) Closing trade payable is $ 12,000, which is likely to be settled at 5% discount.
(h) Cash balance on 31.03.X2 is $ 37,100.
(i) There is an early repayment penalty for the loan $ 2,500.
The Profit and Loss Accounts and Balance Sheets of the trader are shown below in two cases
(i) assuming going concern (ii) not assuming going concern.
1. Balance sheet of a trader on 31st March, 20x1 is given below: Liabilities Assets Capital 60,000 Fixed Assets Profit and Loss Account 25,000 Stock 10% Loan 35,000 Trade receivables Trade payables 10,000 Deferred costs Bank 65,000 30,000 20,000 10,000 5,000 1,30,000 1,30,000