Ki Visitedto a sole proprietor firm and identified the steps

involved in the conversion of single entry system into

double entry system.
Proprietor Name :- Sanjay Ammangimath

* Business Name :- Book Depot and general store

* Location:- Ishwar sankal Road Rabkavi

Established Date :- 15/08/2010

Minimum Profit per Year :- 12000/-

He mentoined his books of accounts in conversion of single

entry system into double entry system.
*Statement of affairs

*Total creditors Account

*Total debtors Account

*Trading and profit and loss Account *

Balance sheet.

Mr Sanjay Ammangimath is a sole proprietor his books under single entry system.
Prepare trading & profit & loss A/c for the year ending 31/03/2014 and also Balance
sheet as on that date. Cash book

Receipts (Rupees ) Payments (Rupees )

 To balance 1000 By cash purchases 1500
B/d By salary By 1200
To Debtors 30000 general
To Sales 4000 expenses By 2000
creditors By 20000
rent By 800
domestic
expenses By 5000
wages 4000
By balance c/d 500

35000 35000

Liabilities (Rupees ) Assets (Rupees)

Additional Information
Assets & 01/04/2013 31/03/2014
Liabilities

Creditors 2000 2500

Machinery 15000 15000 3000
Furniture 3000 10000
Debtors 7500 9000 500
Stock 6000
Cash in hand 1000

Adjustments :- She also informs that provision for bad debts @ 5%

&depreciation on fixed assets @ 10% p.a. Should he provided.
 Statement of affairs as on 01/04/2013
Creditors 2000 Stock 6000
Capital 30500 Cash 1000
(balance) Debtors 7500
Furniture 3000 15000
Machinery

32500 32500

Dr Total Debtors Account Cr

To, Balance B/d 7500 By cash A/c 30000
To, credit sales 32500 (received from
(Balance) debtors) By 10000
Balance c/d
(Balance)
40000 40000
 Particulars (Rupees ) Particulars (Rupees)
Dr Total creditors A/c Cr
Particulars (Rupees) Particulars (Rupees )
To Cash 20000 By Balance b/d 2000
(Paid to creditors) By Credit purchases 20500
To, Balance c/d 2500 (Balance)
(Balance)

22500 22500

Dr Trading & P&L A/c the Year ending 31/03/2014 Cr

Particulars (Rupees) (Rupees) Particulars (Rupees) (Rupees)
 To opening stock 6000 By sales
To purchases Credit 32500 36500
Cash Cash 4000
1500 22000
Credit
20500 4000 By Closing 9000
To wages
Stock 45500
To Gross profit
13500
c/d
45500
300
To salary 1200
To Rent To 800
General expenses 1500
To Provision for 2000
bad debts 500
(10000*5/100) To
Depreciation on
furniture
1800
(3000*10/100) To
depreciation on 7200
machinery
(15000*10/100)
To Net Profit

13500 13500

Balancesheet As on 31/12/2014
Liabilities (Rupees ) (Rupees ) Assets (Rupees) (Rupees)
Capital 30500 Cash in hand 500
(+) Net profit: 7200 Stock 10000 9000
Debtors (-)
37700 32700
(-)Domestic Provision for 500 9500
Expenses bad debts 3000
5000 2500
Furniture (-) 300 2700
Creditors Depreciation 15000
13500
Machinery 1500
(-)Depreciation

Total 35200 Total 35200