Professional Documents
Culture Documents
6 Single - Entry System PDF
6 Single - Entry System PDF
Incomplete Records
Que. 3- Mr. Ramji (India) keeps his single entry system. From the following, prepare Trading and Profit and Loss Account for
the year ended 31.3.20X2 together with Balance Sheet as on that date.
Cash book analysis shows the following:
Rs. Rs.
Interest charges 100 Balance at bank on 31.3.20X2 2,425
Personal withdrawals 2,000 Cash in hand as on 31.3.20X2 75
Staff salaries 8,500 Received from debtors 25,000
Other business expenses 7,900 Cash Sales 15,000
Payments to creditors 15,000
Que. 4- X submits to you following figure relating to his business in respect of the year ending 31st March 20X2. You are
required to prepare a Trading and Profit and Loss Account for the year ended and a Balance Sheet as at 31 st March 20X2. Any
difference in the cash/Bank balance is assumed to be drawings:
Rs. Rs.
Cash paid into bank 1,50,000 Wages 40,000
Private dividends paid into bank 2,000 Delivery Expenses 7,000
Payment for goods out of Bank 1,22,000 Rent & Rates 2,000
Cash received from debtors 2,50,000 Lighting & Heating 1,000
Payments for goods by cash and General expenses 4,600
Cheques 1,60,000
The Assets and liabilities are as follows:
01.04.20X1 31.03.20X2
Rs. Rs.
Stock 20,000 15,000
Bank Balance 8,000 12,000
Cash in hand 300 400
Trade Debtors 14,000 20,000
Trade Creditors 27,300 30,000
Investments 50,000 50,000
Que. 5- Mr. X commenced business on 1st April 20X1, with a capital of Rs. 45,000. He immediately purchased Furniture of Rs.
24,000. During the year he received from his uncle a gift of Rs. 3,000 and he borrowed from his father a sum of Rs. 5,000.
He had withdrawn Rs. 600 per month for his household expenses. He had no Bank account and all dealings were in cash. He
did not maintain any books but following information is given. Sales (including cash sales Rs. 30,000) 1,00,000, Purchases
(including cash purchases Rs. 10,000) Rs. 75,000, Carriage Inwards Rs. 700, Wages Rs. 300, Discount allowed to Debtors
Rs. 800, Salaries Rs. 6,200, Bad debts written off Rs. 1,500, Trade Expenses Rs. 1,200, Advertisement Rs. 2,200. He used
goods worth Rs. 1,300 for personal purposes and paid Rs. 500 to his son for examination and college fees.
On 31st March 20X2, his Debtors were worth Rs. 21,000 and Creditors Rs. 15,000. Stock in trade was valued at Rs.
10,000. Furniture to be depreciated by 10% p.a.
Required: Prepare Trading and Profit and Loss Account for the year ended on 31 st March 20X2 and Balance Sheet as at 31st
March 20X2.
Que. 7- Mr.X does not keep complete records of his business but gives you the following information:
His assets on 31st March, 20X2 consisted of Machineries Rs. 1,50,000. Furniture Rs. 60,000; Motor Car Rs. 40,000;
Stock-in-trade Rs. 50,000; Debtors Rs. 80,000; Cash in hand Rs. 12,000 and Cash at Bank for Rs. 30,000; Creditors on that date
amounted to Rs. 1,20,000. On further information received, you come to know that: On 1st October, 20X1 he purchased a
new machinery costing Rs. 50,000. Sales are made for cash as well as on credit. There is no cash purchases. He always sells his
goods at cost plus 25%. Cash sales for the year were accounted for Rs. 80,000.
During the year collection from Debtors amounted to Rs. 5,00,000 and a sum of Rs. 4,25,000 was paid to creditors. He
obtained a Bank Loan for Rs. 50,000 on 1st April, 20X1, the entire amount was repaid in February, 20X2 with interest Rs. 2,500.
In November, 20X1 his Life insurance Policy for Rs. 50,000 became matured and the same was invested in the
business. His Drawings were Rs. 2,500 per month all throughout the year.
On 1st April, 20X1 he had Rs. 1,500 as Cash in hand and balance at Bank for Rs. 40,000. Debtors and Creditors on that
date amounted to Rs. 60,000 and Rs. 90,000 respectively. Provide depreciation of Machineries @ 15% p.a. Furniture @ 10% p.a.
and on Motor Car @ 20% p.a. Required: Prepare a Statement of Profit and Loss for the year ended 31 st March, 20X2.
Que. 8- X is tobacco merchant. He follows the practice of paying creditors for goods purchased through his Bank Account and
making payments in cash on all nominal accounts:
Particulars 1st April, 20X1 31st Mar., 20X2
Rs. Rs.
Cash in Hand 30 50
Cash at Bank 1,000 1,500
Sundry Debtors 1,750 2,500
Sundry Creditors 3,410 3,750
Investments 6,250 6,250
Stock 2,500 1,870
Transactions during the year were as follows:
Salaries Paid 1,500; General Expenses Paid 3,500; Payment for Stationary 870; Payment for Rent and Rates 700;
Lighting Charges Paid 250; Cash receipts from Debtors 31,250; Payments to Creditors through Bank and of Trade
Expenses in Cash 20,000; Payments into Bank – Business 18,750; Payment into Bank – Additional Capital 250; Payment
from Bank Account – Personal 3,250; Cash Payments – Personal 910; Stock taken for personal use 140.
Required: Prepare Trading and Profit and Loss Account for the year ended 31 st March,
Que. 9- The following facts have been ascertained from the records of X who maintains his books of accounts under the single
entry system:
Receipts for the year ended 31st March, 20X2: From sundry debtors Rs. 88,125; Cash Sales Rs. 20,625; Paid in by the proprietor
Rs. 12,500.
Payments made during the year ended 31st March, 20X2: New Plant purchased Rs. 3,125; Drawings Rs. 7,500; Wages
Rs. 33,625; Salaries Rs. 5,625; Interest paid Rs. 375; Telephone Rs. 625; Rent Rs. 6,000; Light and power Rs. 2,375; Sundry
expenses Rs. 10,625; Sundry Creditors Rs. 38,125.
It may be noted that he banks all receipts and makes all payments only by means of cheques.
Assets and Liabilities: As at 31st March, 20X1 As at 31st March, 20X2
Rs. Rs.
Sundry Creditors 12,625 12,000
Sundry Debtors 18,750 30,625
Bank 3,125 ?
Stock 31,250 15,625
Plant 37,500 36,575
Required: Prepare the Trading and Profit and Loss Account for the year ended 31 st March. 20X2 and Balance Sheet as on that
date
Que. 10- You are given the following information for the year 20X1-20X2 from the books of M/s X a firm engaged in Trading
Operations:
Average monthly sales for the year amounted to Rs. 60,000
Goods are sold at cost plus 33.33%
Closing stock in trade on 31-3-20X2 Rs. 58,000
Stock Turnover Ratio – 10 Times
Operating Ratio – 85% on turnover
Depreciation charged on fixed assets for the year – Rs. 20,000
Non-operating income for the year consisted of Bank interest Rs. 3,000 and Dividends received from Investment Rs.
5,000
None – operating expenses amounted to Rs. 5,000 towards loss on sale of Fixed Assets.
Required: Prepare the Trading and P/L A/c of the firm for the year ended 31 st March, 20X2 in detail showing Gross Profit,
Operating Profit and Net Profit.
Que. 11- The following is the Balance Sheet of the retail business of Mr. Raja (India) as at 31 st March 20X1:
Liabilities Rs. Assets Rs.
Capital 1,25000 Furniture and fittings 25,000
Creditors for goods 30,000 Stocks 75,000
Outstanding expenses (rent) 1,000 Sundry debtors 20,000
Cash at bank 35,000
Cash in hand 1,000
1,56,000 1,56,000
You are furnished with the following information:
(a) Mr. Raja (India) always sells his goods at a profit of 25% on sales.
(b) Goods are sold for cash and credit. Credit customers pay by cheque only.
(c) Payments for purchases are always made by cheque.
(d) It is the practice of Mr. Raja (India) to send to the bank every week-end the takings of the week after paying every week
salaries of Rs. 250 to the clerk, sundry expenses of Rs. 50 and personal expenses Rs. 100.
(e) Analysis of the bank pass book for the period ending 31st March 20X2 disclosed the following:
Rs.
Payments to creditors 75,000
Payment of rent 4,000
Amount remitted to the bank 1,35,000
(including cheques for Rs. 10,000 received from customers to
whom the goods were sold on credit.)
(f) The following are the balances on 31st March, 20X2.
Rs.
Stocks 32,500
Creditors for goods 32,500
Sundry debtors 30,000
On the evening of 31st March 20X2 the cashier absconded with the available cash in cash box.
Required: Prepare a Statement showing the amount of cash defalcated by the cashier and also a p/l a/c for the period ended 31 st
March 20X2 and a Balance Sheet as on that date.
Que. 12- Mr. X does not maintain complete records of his business but gives you the following information:
Particulars 31.03.20X1 31.03.20X2
Rs. Rs.
Que. 13- From the following information of M/s X & Co. prepare Trading and Profit and Loss Account for the year ending on
31st March, 20X2 and the Balance Sheet as on that date.
Que. 14- From the following information in respect of BHARAT a trader, prepare a Trading, Profit and Loss Account for the
year ended 31st March, 20X2 and a Balance Sheet as on that date.
(a) Liabilities and Assets:
Particulars 31.3.20X1 31.3.20X2
Rs. Rs.
Stock in trade 80,000 70,000
Debtors for Sales 1,60,00 1,49,500
Bills Receivable - 17,500
Creditors for purchases 1,10,000 1,50,000
Fixed Assets (at written down value) 60,000 63,500
Expenses outstanding 20,000 18,000
Prepaid expenses 6,000 7,000
Cash in hand 2,000 1,500
Bank Balance 10,000 4,750
(b) Receipt and Payment during the year Rs.
Collections from Debtors (after allowing 2.5% discount) ?
Payments to Creditors (after receiving 2% discount) 3,92,000
Proceeds of Bills receivable, discounted at 2% 61,250
Proprietor’s drawings 70,000
Purchases of Furniture midway through the year 10,000
4% Government Securities purchased (at 96% on 1.10.20X1) 96,000
Expenses 1,75,000
Miscellaneous income 5,000
(c) Sales are effected so as to realize a gross profit of 33-1/3% on the sale proceeds.
(d) Goods costing Rs. 9,000, were issued as advertisement articles.
(e) During the year, Bills Receivable were drawn on debtors. Of these, Bills amounting to Rs. 20,000 were endorsed in favour of
creditors. Of this later amount, a bill for Rs. 4,000 was dishonored by the debtor.
(f) Capital introduced during the year by the proprietor by cheques was omitted to be recorded in Cash Book, though the Bank
balance of Rs. 4,750 on 31st March, 20X2 (as shown above), takes the same into account.
Que. 15- A and B are equal partners. Their books and records showed the following balance as on 31 st March, 20X1:
Rs. Rs.
Factory Shed Account 60,000 Bank Overdraft 15,000
Due from Customers 1,35,000 Stock at Cost 1,20,000
Advance for machinery 20,000 Bills Payable 16,000
(Machinery installed in Oct. 20X1) Machinery Account 90,000
Dues to suppliers Furniture Account 25,000
(including Rs. 5,000 for purchase of 93,000
furniture in March, 20X1)
A fire occurred towards the end of March. 20X2 and a portion of the factory shed (book value Rs. 20,000) was
destroyed. The following further information is furnished:
Cost of machinery delivered and installed in July, 20X1 is Rs. 60,000. The balance amount due was paid in October
20X1. Sales for the year 20X1-20X2 were Rs. 1,00,000 per month of which 15% was cash sales. The firm maintains a steady
gross profit rate of 25% on turnover. Cash purchases amounted to Rs. 25,000.
Rs. Rs.
Que. 16- the following is the Balance Sheet of Sri CAMHG as on 31 st March, 20X1:
Liability Rs. Assets Rs.
A riot occurred on the night of 31st March, 2002 in which all books and records were lost. The cashier had absconded with the
available cash. He gives you the following information.
(a) His sales for the year ended 31st March, 20X2 were 20% higher than the previous year’s. He always sells his goods at cost plus
25%; 20% of the total sales for the year ended 31st March, 20X2 were for cash. There were no cash purchases.
(b) On 1st April, 20X1, the stock level was raised to Rs. 60,000 and stock was maintained at this new level all throughout the year.
(c) Collection from debtors amounted to Rs. 2,80,000 of which Rs. 70,000 was received in cash. Business expenses amounted to
Rs. 40,000 of which Rs. 10,000 was outstanding on 31st March, 20X2 and Rs. 12,000 was paid by cheques.
(d) Analysis of the pass book revealed the payment to creditors Rs. 2,75,000, Personal Drawings Rs. 15,000, Cash deposited in
Bank Rs. 1,43,000, Cash withdrawn from Bank Rs. 24,000.
(e) Gross profit as per last year’s audited accounts was Rs. 60,000. Provide depreciation on Building and Furniture at 5% and
Motor Car at 20%.
The amount defalcated by the cashier may be treated as recoverable from him.
Required: Prepare the Trading and P/L Account for the year ended 31 st March, 20X2 and the Balance Sheet as on that date.
Que. 17- From the following particulars, prepare Trading and Profit & Loss Account for the year ending on 31 st March 20X2 and
the balance Sheet as on that date:
Balance Sheet as at 31st March, 20X1
Liabilities Rs. Assets Rs.
Capital 1,72,000 Machinery 70,000
Creditors for goods 62,500 Furniture 15,000
Expenses outstanding 5,000 Stock 35,000
Debtors 1,00,000
Cash 5,000
Bank 15,000
Total 2,40,000 Total 2,40,000
Information: Debtors’ Velocity 2 months, Creditors’ Velocity 1.5 month, Stock level uniform, Gross Profit Ratio 33-1/3%, Sales
are 20% in cash and 80% on Credit. Sales for the current year is 20% more than the previous year. Receipt from debtors cash
Rs. 50,000, balance cheques, Depreciation rate 10%, Machinery Rs. 40,000, Payment out of Bank: Furniture Rs. 5,000,
Investments Rs. 40,000, Drawings Rs. 17,500, Business Expenditure Rs. 60,000, Cash Payments: Business Expenditure Rs.
90,000, Cash deposited into Bank 1,00,000.
Que. 18- The following is the Balance Sheet of A and B as on 1 st April 20X1:
Liabilities Rs. Assets Rs.
Capitals: Building 65,000
A 1,00,000 Machinery 50,000
B 50,000 Stock 30,000
Creditors for goods 20,000 Debtors 40,000
Creditors for expenses 30,000 Bank 15,000
2,00,000 2,00,000
Information: Creditors’ velocity 1 month, Debtors’ Velocity 1-1/2 months, Stock level uniform in value, Trade Expenses Rs.
75,000, Depreciation on machinery 10%, Depreciation on building 5%, In the current year, cost price will go up by 10%.
Sales in the current year will increase by 20% in volume. Rate of gross profit – no change, Drawings – B Rs. 5,000,
Required: Prepare Projected Trading, Profit and loss Account and Balances Sheet.
Que. 19- The following is the Balance Sheet of X a small trader as on 31.3.20X1.
Liabilities Rs. ‘000 Assets Rs. ‘000
Capital 200 Fixed Assets 145
Creditors 50 Stock 40
Debtors 50
Cash in Hand 5
Cash at Bank 10
250 250
A fire destroyed the accounting records as well as the closing cash of the trader on 31.3.20X2. However, the following
information was available.
(a) Debtors and creditors on 31.3.20X2 showed an increase of 20% as compared to 31.3.20X1.
(b) Credit Period:
Debtors – 1 month : Creditors – 2 months
(c) Stock was maintained at the same level throughout the year.
(d) Cash sales constituted 20% of total sales.
(e) All purchases were for credit only.
(f) Current ratio as on 31.3.20X2 was exactly 2.
(g) Total expenses excluding depreciation for the year amounted to Rs. 2,50,000.
(h) Depreciation was provided at 10% on the closing value of fixed assets.
(i) Bank and Cash transactions:
(1) Payments to creditors included Rs. 50,000 by cash.
(2) Receipts from debtors included Rs. 5,90,000 by way of cheques.
(3) Cash deposited into the bank Rs. 1,20,000.
(4) Personal drawings from bank Rs. 50,000.
(5) Fixed assets purchased and paid by cheques Rs. 2,25,000.
You are required to prepare:
(a) The Trading and Profit and Loss Account for the year ended 31.3.20X2 and
(b) A Balance Sheet on that date.
For your exercise, assume cash destroyed by fire is written off in the Profit and Loss Account.
Que. 20- A and B started a business on April 1,20X1 with Rs. 50,000 as capital, contributed equally but the profit sharing ratio
was 3:2. Their drawings were Rs. 300 and 200 per month respectively. They had kept no accounts but given you the
following information:
Particulars 31.3.20X2 31.3.20X3
Rs. Rs.
Machinery at cost 20,000 25,000
Stock in trade 30,000 30,000
Debtors 50,000 60,000
Cash 2,000 500
Creditors 30,000 20,000
Outstanding Expenses 4,000 3,000
Bank Balance (as per Pass Book) 6,000 8,000
Provision is to be made for depreciation at 10 per cent on the cost of machinery as at the end of each year. Debtors on
31.03.20X2 include Rs. 5,000 for goods sent out on consignment at 25 per cent above cost, and the goods were sold only in
20X3. A cheque for Rs. 1,000 had been deposited on 31.03.20X2 but was credited on 2.4.20X2. A cheque for Rs. 2,000
issued on 26.03.20X3 was presented on 3.4.20X3. A cheque for Rs. 1,000 was directly deposited by a customer on
27.03.20X3 but no entry is made either in Pass book or in Cash Book. A cheque for Rs. 500 deposited in march, 20X3 was
dishonored but no adjustment for this was made.
Required: Determine the profit for 20X2 – 20X2 and draw up a Balance Sheet as at 31st March, 20X3.
Que. 21- S.K. Mittal does not maintain proper books of accounts. He provides you with the following details:
(a) Sales and Purchases Policy: Total Sales during 2000 – Rs. 6,00,000. Volume of sales during 2nd half of 2000 was one third
that of 1st half. Volume of credit sales was twice of Cash Sales evenly throughout the year. All purchases were on credit and
made evenly throughout the year.
(b) Credit Policy: Closing Debtors represent last two months’ sales whereas Closing Creditors represent last 3 months’ purchases
(c) Price Policy: Goods were sold at 10% profit on credit sales. Cash selling price was always at a profit of 5% of Sales.
(d) Inventory Policy: First 2 months’ requirements were held as Opening Stock whereas last months’ requirements was held as
Closing Stock.
Required: ascertain the (i) Opening Stock as on 1.1.20X1, (ii) Closing Stock as on 31.12.20X1, (iii) Total Purchases during
20X1, (iv) Closing Debtors and Creditors as on 31.12.20X1
Que. 22- Shri Rashid furnishes you with the following information relating to his business:
(a) Assets and liabilities as on 1.1.20X1 31.12.20X1
Rs. Rs.
Furniture (w.d.v.) 6,000 6,350
Stock at cost 8,000 7,000
Sundry debtors 16,000 ?
Sundry creditors 11,000 15,000
Prepaid expenses 600 700
Unpaid expenses 2,000 1,800
Cash in hand and at bank 1,200 625
(b) Receipts and Payments during 20X1:
Collection from debtors, after allowing discount of Rs. 1,500 amounted to Rs. 58,500. Collections on discounting of bills of
exchange, after deduction of discount of Rs. 125 by the bank, totaled to Rs. 6,12.
Creditors of Rs. 40,000 were paid Rs. 39,200 in full settlement of their dues.
Payment for freight inwards Rs. 3,000
Amounts withdrawn for personal use Rs. 7,000
Payments for office furniture Rs. 1,000
Investment carrying annual interest of 4% were purchased at Rs. 96 on 1 st July, 20X1 and payment made therefore.
Expenses including salaries paid Rs. 14,500.
Miscellaneous receipts Rs. 500.
(c) Bills of exchange drawn on and accepted by customers during the year amounted to Rs. 10,000. Of these, bills of exchange of
Rs. 2,000 were endorsed in favour of creditors. An endorsed bill of exchange of Rs. 400 was dishonoured.
(d) Goods costing Rs. 900 were used as advertising materials.
(e) Goods are invariably sold to show a gross profit of 33.1/3% on sales.
(F) Difference in cash book, if any, is to be treated as further drawing or introduction by Shri Rashid.
(g) Provide at 2.5% for doubtful debts on closing debtors.
Required: Prepare Trading and Profit and Loss Account for the Year ended 31 st December, 20X1 and the Balance Sheet as on
that date.
Que. 23- A and B who had conducted separate business of merchants as sole traders agreed on 28 th February, 20X2 to enter into
partnership as from 1st April, 20X2. B had not kept proper records and in order to establish the interests of the partners on 1st
April, 20X2, it was arranged that B should carry on business for the month of March, 20X2 and upon the results of that
month, their respective interests in the partnership would be determined.
The following is a summary of B’s transactions for the month of March, 20X2.
Rs.
Cash at Bank on 28th February, 20X2 as per Bank statement 5,200
Unpresented cheque at the date. 6,150
Furniture as per valuation 22,000
Sundry debtors – 28th February, 20X2 19,000
Sundry creditors – 28th February, 20X2 18,900
Cash at bank on 31st March, 20X2 as per Bank statement 11,840
Unpresented cheques – 31st March, 20X2 2,080
Credit sales during the month, the cost of which was Rs. 4,520, amounted
To Rs. 7,100. Included in these sales was a sale at Rs., 3,200, the cost of
which Was Rs. 1,800 and these goods were not delivered until 3 rd April,
20X2. Credit purchases including goods received on 2nd April, 20X2 and
costing Rs. 2,500 11,240
Stock in hand, taken on 31st March, 20X2 and priced at cost, amounted to 30,000
A credit note was issued on 9th March, 20X2 for an overcharge in an
Invoice dated 27th February, 20X2 800
Cash receipts were:
Debtors 13,000
Cash sales (cost of goods sold Rs. 9,600) 13,450
Cash disbursement were:
Commission 1,800
Salaries and expenses 1,600
Rent 400
Creditors (after deduction Rs. 100 discount) 9,900
Drawings 2,000
Bank charges and interest 40
Required: Prepare B’s statement of Assets and Liabilities and Capital as at 31st March, 20X2 and Revenue statement for the
month then. Depreciation may be disregarded.
Que. 24- Mr. X, a sole trader, does not keep proper accounting records for his business transactions. The following information
regarding his assets and liabilities on 31st March, 20X1 is available:
Assets Rs. Liabilities Rs.
Stock 75,000 Creditors 85,000
Debtors 69,800 Term loan 80,000
Cash 4,800 Furniture and fittings 1,10,000
Bank balance 66,000 Outstanding expenses 2,700
Premises 3,00,000
Motor vehicles 61,000
The cash book entries reveal the following:
Cash Rs. Bank Rs. Cash Rs. Bank Rs.
Opening balance 4,800 66,000 Payment to suppliers 4,42,800
Collection from customers Salaries & Wages 9,200 26,400
deposited 7,06,000 Motor expenses 960 14,800
Cash purchases
(paid by cheques, 1,49,600
General expenses 1,720 18,680
Drawings 85,120
Que. 26- Mr. X is a small trader, and is financially incapable of ingaging the services of an accountant. He keeps no books but
only an account with a Bank in which all takings are lodged after meeting business expenses and his personal drawings and
through which all payments for business purchases are passed.
You are required to ascertain his trading result for the year ended 31st March, 20X3 and the financial position of his
business as on that date from the following information supplied by him:
(a) The Bank statement shows deposits during the year of Rs. 12,020 and withdrawals of Rs. 11,850.
(b) Rs. 1,000 had been placed in fixed deposit account on 31 st December, 20X1 at 10% per annum and withdrawn with interest on
30th June, 20X2.
(c) The assets and liabilities on 31st March, 20X3 were: Stock Rs. 1,100; Book Debts Rs. 11,150; Bank Balance Rs. 320; Furniture
Rs. 2,000 and Trade creditors Rs. 400.
(d) In the absence of reliable information, estimates are supplied on the following matters.
(i) The Stock and Book Debts have each increased by Rs. 100 during the year.
(ii) The Trade creditors were Rs. 200 on 1st April, 20X2.
(iii) During the year personal expenses amounted to Rs. 800 and business expenses Rs. 700. Ignore fractions.
Que. 27- K.Azad, who is in business as a wholesaler in sunflower oil, is a client of your accounting firm. You are required to draw
up his final accounts for the year ended 31.3.20X2. From the files, you pick up his Balance Sheet as at 31.3.20X1 reading as
below:
Balance Sheet as at 31.3.20X1
Liabilities Rs. Assets Rs.
K.Azad’s Capital 1,50,000 Cash and Bank Balance 75,000
Creditors for Oil Purchases 2,00,000 Debtors 1,60,000
12% Security Deposit from Customers 50,000 Stock of Oil (125 tins) 1,25,000
Creditors for Expenses: Furniture 30,000
Rent Less: Depreciation 3,000
Salaries 6,000 _________ 27,000
Commission 4,000 Rent Advance 12,000
20,000 Electricity Deposit 1,000
3-Wheeler Tempo Van
40,000
Less: Depreciation 10,000
_________ 30,000
4,30,000 4,30,000
A Summary of the rough Cash Book K.Azad for the year ended 31.3.20X2 is as below:
Cash and Bank Summary
Rs.
Receipts
Cash Sales 5,26,500
Collections from Debtors 26,73,500
Payments
To Landlord 79,000
Salaries 48,000
Miscellaneous Office Expenses 12,000
Commission 20,000
Personal Income – Tax 50,000
Transfer on 1.10.20X1 to 12% Fixed Deposit 6,00,000
To Creditors for Oil Supplies 24,00,000
Que. 28- The following is the Balance Sheet of the retail business of Sri X as at 31st December, 20X1.
Liabilities Rs. Assets Rs.
Sri Srinivas’s Capital 1,00,000 Furniture 10,000
Liabilities for goods 20,500 Stock 70,000
Rent 1,000 Debtors 25,000
Cash at bank 14,500
Cash in hand 2,000
Total 1,21,500 Total 1,21,000
You are furnished with the following information:
(i) Sri X sells his goods at a profit of 20% on sales.
(ii) Goods are sold for cash and credit. Credit customers pay by cheques only.
(iii) Payments for purchases are always made by cheques.
(iv) It is the practice of Sri X to send to the bank every weekend the collections of the week after paying every week, salary of
Rs. 300 to the clerk, Sundry expenses of Rs. 50 and personal expenses Rs. 100.
Analysis of the Bank Pass-Book for the 13 week period ending on 31st March, 20X2 disclosed the following:
Rs.
Payments to creditors 75,000
Payments of rent upto 31.3.20X2 4,000
Amounts deposited into the bank 1,25,000
(include Rs. 30,000 received from debtors by cheques)
The following are the balance on 31st March, 20X2:
Stock 40,000
Debtors 30,000
Creditors for goods 36,500
On the evening of 31st March, 20X2 the Cashier absconded with the available cash in the cash box. There was no cash deposit
in the week ended on that date.
Required: Prepare a Account showing the amount of cash defalcated by the Cashier and also a Trading & Profit and Loss
Account for the period ended 31st March, 20X2 and a Balance Sheet as on that date.
Que. 29- Mr. Pranlal is a dealer in fertilizers. He purchases some chemicals and mixes them to manufacture the fertilizers. He has
prepared the following statements He requires you to examine them, and prepare Trading Account, Profit & Loss Account
and Balance Sheet, after taking into account the additional information furnished:
Dr. (a) Trading and Profit & Loss Account as on 31.3.20X2 Cr.
Particulars Rs. Particulars Rs.
To Stock as on 31.3.20X2 8,00,000 By Sales 5,00,000
To Purchases 8,00,000 By Creditors 10,00,000
To Expenses 7,00,000 By Stock as on 1 .4.20X1 2,00,000
By Other income 1,00,000
By Net loss 5,00,000
23,00,000 23,00,000
Balance Sheet for the year ended 31.3.20X2
Particulars Rs. Particulars Rs.
To Capital as on 1.4.20X1 By Debtors 2,50,000
3,00,000 By Cash 20,000
Less: Loss 5,00,000 8,00,000 By Bank 80,000
----------- By Closing stock 10,00,000
To Loans taken on 1.4.20X1 at 12%
To Surpluses (Differences) 1,00,000
4,50,000
13,50,000 13,50,000
He is entitled to a rebate of 10 per cent on the listed price of a chemical. The purchases during the year ended 31st
March, 20X2 of the said chemicals at the listed price, included in the purchases, amounted to Rs. 4,00,000
(b) The details of the expenses are as under : Mixing wages Rs. 2,00,000 Administration and selling expenses Rs.
2,00,000, Mixing equipments purchased Rs. 1,00,000, Construction of factory sheds Rs. 1,00,000, Advance for materials Rs.
1,00,000.
(c) A certain raw material was received on 2nd April, 20X2, the invoice for which amounting to Rs. 1,00,000 is
included in the purchases.
(d) A customer who purchased the goods for Rs. 1,00,000 has not taken delivery. The value of such stock was
inadvertently included in the closing stock as on 31st March. 20X2.
(e) He had entered into a joint venture with Mr. Babu Ram, The sales made on account of the joint venture was
included in the sales for Rs. 2,00,000. He had paid Rs. 1,00,000. for the purchase of raw materials. It has been included in the
expenses. His share of profit in the venture was determined at Rs. 50,000. The amount paid for setting the account was
wrongly debited to Debtors Account.
(f) Sums received for cash sales of Rs. 5,00,000 was included in the Creditors.
(g) An invoice for Rs. 50,000 for the goods received on 25th March, 20X2 and included in the stock was received only
st
on 1 April, 20X2.
(h) Other out standings as on 31st March, 20X2 were:
(i) For the erection of factory sheds Rs. 50,000 (b) Adm. & Selling expenses Rs. 25,000
(j) Provide depreciation at 5 per cent on the factory sheds and fat 10 per cent on the equipments on the closing
balances.
(k) The Bank Balance of Rs. 80,000 includes the encashment of his personal deposit of Rs. 50,000 with the bank. He
had forgotten to credit his Capital Account with this amount.
Que. 30- You have been provided with following information of M/s Sybal Enterprises as on 31 st December 20X1
(a) Summarised Balance Sheet as at 31st December, 20X1
Liabilities Rs. Assets Rs.
Capital 2,37,474 Fixed Assets:
Loan 1,00,000 (Cost less Depreciation)
Expenses Creditors 12,050 Land 25,000
Trade Creditors 2,47,903 Building (Rs. 1,42,000 – Rs.
27,500) 1,14,500
Fixture & Fittings (Rs. 21,405 – Rs.
11,214) 10,191
Motor Vehicles (Rs. 24,690 – Rs.
18,690) 6,000
Current Assets:
Stock in trade 2,37,423
Sundry Debtors 1,95,115
Cash at Bank 7,048
Cash in hand 2,150
5,97,247 5,97,247
(b) During the year ended 31st Dec. 20X2 the following trading transactions took place:
Cash Sales Rs. 4,27,042, Receipt from Debtors Rs. 10,07,401, Payment to trade Creditors Rs. 9,28,213, Wages paid Rs.
2,04,111, Overhead Expenses paid Rs. 57,410, Interest on loan paid Rs. 5,000, Salaries Rs. 1,50,000
(c) Depreciation, on the reducing balance method, is to be provided @ 4% p.a. on buildings, 15% p.a. on fixtures & fittings and
25% p.a. on the motor vehicles.
(d) On 1st June 20X2 the enterprise acquired a vehicle on hire purchase terms which provided for the payment of a deposit of Rs.
1,000 and 24 monthly installments of Rs 200 commencing on 30th June, 20X3. The cash price of the vehicle is Rs. 5,200 The
only other movement in fixed assets was the scrapping of the old vehicle which originally cost of Rs. 1,960 and had
accumulated depreciation of Rs. 1,699.
(e) On 31st Dec. 20X2 – Stock at cost Rs. 2,47,628, Debtors Rs. 1,89,400, Creditors Rs. 2,58,107 Cash in hand amounted to Rs.
1,945, Expenses Creditors – Nil
(f) On 30th June, 20X2 the loan was repaid at a discount of 14%
(g) The proprietor has withdrawn during the year Rs. 1,000
Required: Prepare: (A) Joint Cash & Bank Account Trading and Profit & Loss Account for the year ended 20X2 and the Balance
Sheet as on that date.