Balance Sheet as on 31st Dec 2000

Liabilities Dec 1999 Dec 2000

Capital (Less : Drawings) 4,800,000 4,700,000
Retained Earnings 183,500 455,340

Current Liabilities
Accrued Commission 170 3,800
Advance rent received 5,000
Accounts payable for PRT 60,000 60,000

Total 5,043,670 5,224,140

Balance Sheet as on 31st Dec 2000
Assets Dec 1999 Dec 2000
Fixed Assets
Land 1,200,000 1,200,000
Building 3,600,000
(Less) Accumulated Depreciation on Building 1,200,000 2,520,000 2,400,000

Current Assets
Accounts Receivable 4,250 74,500
Cash in Bank 1,289,420 1,474,440
Pugree receivable 25,000
Prepaid Insurance Premium 10,000
Prepaid Commission (on Adv rent received) 200
Deferred Exterior painting expenses 22,500 22,500
Deferred Interior painting expenses 7,500 17,500

Total 5,043,670 5,224,140

20 flats + 8 shops
Dec 1990 acquisition cost by Mr. Acharya Rs. 4,800,000

Building (Life = 30 years) Rs. 3,600,000

life remaining = 20 year (purchase date being 30 dec 1990) =(3600000 / 30)*20 2,400,000 25,200,000
Depreciation 120,000
Accumulated Depreciation for 10 years 1,200,000
 Income Statement for 31s Dec 2000
Expenses Amount (Rs.)
Non Operating Expenses
Rent Free Accommodation 36,000
Insurance Premium (Life = 2 Years) 10,000
Depreciation on Building 120,000
Property Rates and Taxes 240,000

Operating Expenses
Building Repairs 1,770
Painting
Internal (Last yr's 9 months + this yr's Oct-Dec) 30,000
External (Last yr's 9 months + this yr's Oct-Dec) 10,000 40,000
Commission Expenses (Rent 609000 @ 4%) 24,360
Printing & Stationery 250
Postage and Telegram 500
Bank Charges 280
Profit 455,340
Total 928,500
atement for 31s Dec 2000
Income Amount (Rs.)
Opening Profit 183,500 Painting done in Oct 2000
Pugree Interior (done every 2 yrs)
Received 75,000 Exterior (done every year)
Receivable 25000 100,000
Rental Income Deferred Exterior Painting
Accounts Receivable 74,500 Deferred Interior Painting
Rent Received 570,500 645,000

Total 928,500
 Previous Year's payment Painted in This year's deferred painting
Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 1-Jul
20000 2,500 2500 2500 2500 2500 2500 2500
30000 7,500 7500 7500 7500 7500 7500 7500
Rs. 3,600,000
Paid for n =7500*3 =(3600000 / 30)*20 2400000
Paid for n =2500*7 120000
1200000
 Cash Statement on 31st Dec 2000
Receipts
Opening Bank Balance
Previous year's rent
Pugree received
Current Year's Rent
Advance Rent
Total
Payment
1,289,420 Painting Bills
4,250 Interior 20000
75,000 Exterior 30000
534500 Building Repairs
5,000 Commission to Mr. Pandit
Insurance Paid
Printing & Stationery
Postage and Telegram
Bank Charges
Property Rates and Taxes
Drawings
Closing Balance
1,908,170 Total
 Commission Calculation
Total Rent receivable =53750*12 645,000
(less) Mr. Pandit's flat =3000*12 36,000
50,000 Actual Rent receivable 609,000
1,770 Commission @ 4% 24,360
20,930 Commission Paid 20,930
20,000
250 Commission on Advance rent =5000*4% 200
500
280 Rent received but commission not paid =20500*4% 820
240,000 Rent Outstanding but commission due =74500*4% 2,980
100,000 Accrued Commission (to be paid) 3,800
1,474,440
1,908,170 Accrued Commission to be paid in 1999 =4250*4% 170