Professional Documents
Culture Documents
Sales may be of two types (i) Credit Sales, and (ii) Cash Sales.
Credit Sales should be found out by preparing a Total Debtors Account while cash sales
should be found out fromthe Cash Book.
3. Ascertainment of stocks. Stocks may be classified into two categories: (1) Opening Stock,
and (ii) Closing Stock. The amount of Opening Stock or Closing Stock can be ascertained by
preparing a Memorandum Trading Account.
4. Ascertainment of cash and bank balances. The amount of Cash in Hand or Cash at Bank
can be ascertained by preparing a Receipts and Payments Account in case Cash Book
completed in all respects has not been given.
Que: A Trader does not keep a complete set of books. On 1st March 2014 his debtors were
Rs. 24,500 and Creditors were Rs. 7,500. A summary of his cash book is as follows:
Dr.
Cr.
Particulars Cash Bank Particulars Cash Bank
To Debtors for sale 21,250 By Payment to 1,350 11,250
Creditors
To Sale of 13,000 By Balance c/d 17,040 16,250
Machinery
To Rent of 390
warehouse sublet
To Cash sales 5,000 3,750
To Cash capital 2,500
introduced in
business
18,390 27,500 18,390 27,500
At March 2015 the debtors and creditors respectively amounted to Rs. 44,000 and 9,750.
Cash discount allowed to debtors were Rs. 230 and those received from creditors were Rs.
810. Ascertain Total Sales and Total Purchases.
Que: From the following fact supplied by A, who keeps his books on single entry you are
required to calculate Total Purchases and Bills Payable Accounr.
Que: The following is a summary of the Bank Account of Mr. Khanna, a trader, for the year
2015.
Bank Summary
All business takings had been paid into the bank except Rs. 21,180 out of which he paid
wages amounting to Rs. 12,800. He retained Rs. 8,380 for private purposes. The following
information is obtained from the books.
Discounts received from trade creditors during 2014 – 15 amounted to Rs. 1,500. No
discounts were allowed to customers. The amount due to the customer who overpaid his
account was set off against sales to him in 2014 only.
You are required to prepare a Trading and Profit & Loss Account for the year ended
31.03.2015 and a Balance sheet as on that date.
Solution:
Dr. Cr.
Particulars Amount Particulars Amount
To Balance b/f 22,400 By Balance b/f 600
To Sales (balancing fig.) 2,70,000 By Cash (Rs. 2,43,720 + Rs. 21,180) 2,64,900
By Balance c/d 26,900
2,92,400 2,92,400
Dr. Cr.
Particulars Amount Particulars Amount
To Bank 1,87,860 By Balance b/f 19,450
To Discount received 1,500 By Purchases (balancing fig) 1,87,000
To Balance c/d 17,090
2,06,450 2,06,450
Dr. Cr.
Particulars Amount Particulars Amount
To Opening Stock 24,300 By Sales 2,70,000
To Purchases 1,87,000 By Closing Stock 31,500
To Gross profit c/d 90,200
3,01,500 3,01,500
To General Expenses 17,500 By Gross profit b/d 90,200
(16,970 + 1,340 – 810)
To Rent & Rates 7,680 By Discount received 1,500
(7,710 + 420 – 450)
To Wages 12,800
To Net Profit 53,720
91,700 91,700