ICM 11th Standard Gautam Bery

CHAPTER – 19
ACCOUNTS FROM INCOMPLETE RECORDS
Q1. Kavish, who keeps his books on single entry system, started his business on 1st April, 2016
with a capital of Rs.3,00,000. At the end of the year i. e., on 31 st March, 2017 the position of
Assets and Liabilities was as under :

Particulars Rs.

Cash at Bank 25,000

Furniture 2,20,000

Machinery 75,000

Debtors 40,000

Stock 60,000

Creditors 70,000

Bills Payable 20,000

During the year, he introduced Rs.40,000 as additional capital and withdrew Rs. 15,000 for his
personal expenses.
Prepare a statement of profit and loss to calculate profit or loss for the year ended on 31st March,
2017.

Q2. Miss Priyanka runs a small Bakery Business. She was not maintaining her accounts on the
double entry system. On April 01, 2016 she had started the business with a capital of Rs.78,000.
On March 31, 2017 her incomplete records could provide the following data :
(i) Amount due to suppliers of raw materials Rs.17,500.
(ii) Stock of raw material Rs.2,000 and finished products Rs.2,500.
(iii) Fixed assets Rs.34,000.
(iv) Amount due from customers Rs.42,000.
(v) She had withdrawn Rs.2,500 per month for meeting her personal expenses.
(vi) She had introduced Rs.7,000 as capital during the year.
(vii) She has cash at bank Rs.21,000 and cash in hand Rs. 1,800.
(viii) Outstanding electricity bill Rs.2,250.
Calculate the profit/loss of her business during the year using statement of affairs method.

Q3. Ram started a business with a capital of Rs.4,00,000. At the end of the year his total assets
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were Rs. 10,00,000 and external liabilities were for Rs.4,50,000. He further informs you that during
the year he withdrew Rs.50,000 for household use. During the year he sold his personal
investments of Rs.50,000 at 20% profit and brought that money into the business as additional
capital.
You are required to prepare a statement of Profit or Loss under accounts from incomplete records
method.

Q4. Shruti maintains her books of accounts from Incomplete Records. Her books provide the
following information :

1-4- 2016 31-3-2017

Rs. Rs.

Cash 12,000 16,000

B/R — 24,000

Debtors 1,68,000 2,72,000

Stock 2,24,000 2,44,000

Investment — 80,000

Furniture 75,000 80,000

Creditors 1,40,000 1,52,000

She withdrew Rs. 1,000 per week for personal expenses. She sold her investments of Rs.
1,60,000 at 2% premium and introduced that amount into business.
You are required to prepare a statement of profit or loss for the year ending March 31,2017.

Q5. Gokul Das maintains incomplete records of his business. He wants to know the result of his
business on 31st March 2013 and for that, following informations are available :

1st April, 2012 31st March, 2013

Rs. Rs.

Cash in hand 1,50,000 1,75,000

Bank Balance 7,50,000 6,00,000

Furniture 1,00,000 1,00,000

Stock 5,00,000 4,50,000

Creditors 3,50,000 4,00,000

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Debtors 2,50,000 3,00,000

Personal expenses of Gokul Das paid from business account amounted to Rs.4,80,000 and goods
worth Rs.20,000 were withdrawn by him for personal use. He sold ornaments of his wife for
Rs.3,50,000 and invested that amount into the business. Calculate his profit or loss.

Q6. Panwar commenced business on 1st April, 2014 with a capital of Rs. 1,00,000, which he paid
into bank account opened for that purpose. On the same date he bought furniture which cost
Rs.20,000 and made purchases of goods worth Rs.65,000. He kept his books on single entry
basis. On 31st March, 2015 stock was valued at Rs.83,000. There were book-debts amounting to
Rs. 34,000 of which Rs.2,000 represented debts which were irrecoverable. Creditors amounted to
Rs.36,000 and bank pass book showed a balance of Rs. 14,500. Panwar withdrew three times
from business for his private expenses, each time he withdrew Rs.6,000 and in addition he used
Rs. 5,000 worth of goods from his shop. He took Rs. 10,000 as loan from his wife on 1st October,
2014 @15% p.a. but had paid no interest. He gave Rs.2,000 to his son from business, which he
omitted to enter. You are required to prepare a statement showing profit or loss in the business for
the year ending 31st March, 2015 from the above information.

Q7. Vikas is keeping his accounts according to Single Entry System. His capital on 31st
December, 2015 was Rs.2,50,000 and his capital on 31st December, 2016 was Rs.4,25,000. He
further informs you that, during the year he gave a loan of Rs.30,000 to his brother from business
on his private account and also withdrew Rs. 1,000 per month for personal purposes. He used a
flat for his personal purpose, the rent of which at the rate of Rs. 1,800 per month and electricity
charges at an average of 10% of rent per month were paid from the business account. During the
year, he sold his 7% Government Bonds of Rs.50,000 at 1% premium and brought that money into
the business. Prepare a Statement of Profit and Loss for the year ending 31st December, 2016.

Q8. Ashoka Electronics does not keep proper records. From the following information find out
profit for the year ended 31st March, 2016 and also prepare a final statement of affairs as at that
date :

March 31, 2015 March 31,2016

Rs. Rs.

Cash in hand 6,000 24,000

Bank Overdraft 30,000 —

Stock 50,000 80,000

Sundry Creditors 26,000 40,000

Sundry Debtors 60,000 1,40,000

Bill Payable 6,000 12,000

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Furniture 40,000 60,000

Bill Receivable 8,000 28,000

Machinery 50,000 1,00,000

Investments 30,000 80,000

Drawing Rs. 10,000 p.m. for personal use; Fresh Capital introduced during the year Rs.2,00,000.
A Bad debts of Rs.2,000 and a provision of 5% is to be made on debtors, O/s Salary Rs.2,400,
Prepaid Insurance Rs.700, Depreciation Charged on furniture and Machine @ 10% p.a.

Q9. Pawan Kumar keeps incomplete records. The Statement of Affairs of his business as at 1 st
April, 2016 was as follows :

Liabilities Amount Assets Amount

Rs. Rs.

Creditors 5,000 Cash in Hand 400

Capital 70,000 Cash at Bank 1,600

Debtors 17,000

Stock 20,000

Furniture 6,000

Plant and Machinery 30,000

75,000 75,000

His position on 31st March, 2017 was :— Cash in hand Rs. 1,000; Cash at Bank Rs.2,000; B/R
Rs.4,000; Debtors Rs.21,000; Stock Rs.32,000; Furniture Rs.8,000; Plant and Machinery
Rs.40,000 and Creditors Rs. 18,000.
He withdrew during the year Rs.30,000, out of which he spent Rs. 18,000 for purchasing a scooter
for the business.
Calculate his net profit for the year after the following adjustments and prepare a final Statement of
Affairs as at 31st March, 2017 :
(1) Depreciate furniture and scooter @ 20%;
(2) 5% of the debtors are doubtful and Rs. 800 are absolutely bad.
(3) Make a provision of 5% on Bills Receivable also.

PREPARATION OF TOTAL DEBTORS ACCOUNT

Q10. Find out the credit sales from the particulars given below :

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Rs.

Balance of Debtors On 1st April, 2018 36,000

Balance of Debtors On 31 st March, 2019 54,000

Cash received from Debtors 1,50,000

Cash returned to Debtors 2,000

Sales Returns 6,000

Discount allowed 1,500

B/R received from Debtors 10,000

B/R dishonoured 3,000

B/R discounted 5,000

Bad-Debts 8,000

Bad-Debts previously written off, now recovered 1,200

PREPARATION OF TOTAL CREDITORS ACCOUNT

Q11. Find out the credit purchases and total purchases from the following particulars :

Rs.

Balance of Creditors On 1 st April, 2018 30,000

Balance of Creditors On 31st March, 2019 24,000

Cash paid to Creditors 1,20,000

Cheques issued to Creditors 40,000

Returns Outwards 5,000

Discount received from Creditors 3,600

B/P given to Creditors 8,500

B/P Dishonoured 2,000

B/R endorsed to Creditors 3,000

B/R endorsed to Creditors Dishonoured 1,200

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Cash purchases 50,000

PREPARATION OF TRADING & PROFIT AND LOSS A/C AND BALANCE SHEET
Q12. A merchant keeps incomplete records. During the year 2018-19 the analysis of his cash
book was as under :

Receipts Rs. Payments Rs.

Receipts from Debtors 4,00,000 Bank overdraft (1-4-2018) 60,000

Additional Capital Introduced Payments to Creditors 2,70,000

on 1-12-2018 30,000 General Expenses 90,000

Loan from Con 1-10-2018 Salaries 30,000

@ 6% interest p.a. 1,50,000 Drawings 40,000

Bank Balance (31-3-2019) 90,000

5,80,000 5,80,000

On 1st April, 2018, the following balances were recorded : Building Rs.2,50,000; Stock Rs.
1,80,000; Debtors Rs.5,30,000 and Creditors Rs. 1,50,000.
The Balances on 31st March, 2019 were : Debtors Rs.6,00,000; Building Rs.2,50,000; Creditors
Rs.1,90,000 and Stock Rs.2,60,000.
Allow 5% depreciation on Building. Provide interest on C’s loan for six months. Prepare Trading
and Profit and Loss Account for the year ended 31 st March, 2019 and a Balance Sheet as at that
date.

Q13. Sharma keeps incomplete records. An analysis of his Cash Book for the year ended 31st
March, 2015, is as follows :—

Cash Receipts : Rs.

From Sundry Debtors 41,000

From Cash Sales 37,000

From Shanna, as additional Capital on 1st July, 2014 10,000

Total Cash Receipts 88,000

Cash Payments :

Cash Purchases 24,000

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Paid to Creditors 16,200

Productive Expenses 5,400

Salary Paid 8,100

Sundry Expenses 6,500

New Furniture purchased 4,000

Private Payments 7,800

Total Cash Payments 72,000

31st March. 2014 31st March, 2015

Assets and Liabilities as at: Rs. Rs.

Sundry Debtors 12,000 ?

Sundry Creditors 6,200 ?

Cash 8,000 ?

Stock 20,200 16,100

Furniture 6,000 9,500

Other Informations :–
(1) Credit Sales during the year were Rs.48,000.
(2) Sales Returns Rs.2,600.
(3) Credit Purchases during the year were Rs.20,000.
(4) Discount allowed to Debtors Rs.200.
(5) Discount received from Creditors Rs.300.
(6) Bad-Debts written off during the year were Rs. 1,200.
Adjustments:
(1) Write off further bad-debts Rs. 1,000.
(2) Provide 5% for doubtful debts and 2% for discount on Debtors.
(3) Allow interest on Capital @ 10% per annum.
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2015 and a Balance
Sheet as at that date.
Q14. Gaurav maintains incomplete records. He supplies you the following informations:

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31st March, 31st March,

2012 2013

Rs. Rs.

Cash Balance 12,000 31,800

Sundry Debtors 28,000 ?

Sundry Creditors 15,400 13,000

Stock 36,000 44,000

Unpaid Expenses 2,000 3,200

Prepaid Expenses 1,400 1,800

Office Equipment 15,000 20,000

Receipts and payments during the year were :

Rs.

Receipt from Debtors 1,10,000

Payment to Creditors 75,000

Transportation in. 2,500

Sundry Expenses 30,000

Drawings 24,000

Office Equipment purchased for cash 5,000

Other Information :
(i) There was a considerable amount of cash sales.
(ii) Credit sales during the year amounted to Rs. 1,12,000.
(iii) Depreciate office equipment by 20%.
(iv) Provide for doubtful debts @ 5% on debtors.
Prepare a Trading and Profit & Loss Account for the year ended 31 st March, 2013 and a Balance
Sheet as at that date.

Q15. X commenced business as a cloth merchant on 1st April, 2011, with a capital of
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Rs.2,00,000. On the same day he purchased furniture for Rs.40,000. From the following
particulars obtained from his books, which do not confirm strictly to double entry principles, you
are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2012
and a Balance Sheet at that date :

Rs.

Sales (including cash sales Rs. 1,00,000) 2,50,000

Purchases (including cash purchases Rs. 60,000) 2,00,000

Λ's drawings 10,000

Salaries 24,000

Bad-Debts written off 2,000

Trade Expenses 8,000

A has used cloth worth Rs.6,000 for private purposes and paid Rs. 10,000 to his son, which is not
recorded anywhere. On 31st March, 2012, his Debtors were worth Rs.70,000 and Creditors
Rs.40,000. Stock in trade on that date was worth Rs.80,000. Depreciate furniture by 5%.
Outstanding salary is Rs. 1,000.
Q16. M/s Sarjeewan Hosiery, Ludhiana have only a Bank Pass Book and does not keep any other
book of accounts. From the following information prepare their Final Accounts for the year ended
31 st March, 2019:
An analysis of the pass book shows :
Total amount received from Debtors and deposited with the bank Rs.74,100; Drawings Rs.6,000;
Payment to Creditors Rs.40,800; Salaries Rs.3,000; Advertisement Expenses Rs.900; Sundry
Trade Expenses Rs.3,600; Charity Rs.2,400; Income Tax Rs.600; Building Rs.20,000 and Balance
at Bank on 31-3-2019 Rs.5,000.
Other Assets and liabilities were as under :

As at 1-4-2018 As at 31-3-2019

Rs. Rs.

Creditors 4,800 7,000

Advertisement Expenses Outstanding — 500

Salaries Outstanding 400 500

Debtors — 10,200

The estimated value of stock-in-trade on 31-3-2019 is Rs.7,000, but no information is available

regarding the Stock-in-trade on 31 -3-2018. The trader takes 25% profit on sales. Give important
notes to show how you have arrived at the unknown figures.

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