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1. Prasad a retailer adds 25% to the cost of goods to arrive at his selling
prices. His Financial position at 30th June 1998.

Particulars Amount
Plant and machinery 5,000
Stock at cost 3,825
Debtors 7,175
Cash at bank 2,200
Creditors 3,000
Loan from Z 2,000

During the year ended 30th June 1999:


(a) Paid Rs. 11,675 to Creditors for goods for resale.
(b) Repaid Rs.500 of the loan from Z.
(c) Purchased a typewriter for Rs. 700
(d) Withdrew from the bank Rs. 80 per month for personal expenses.
(e) Paid into the bank lottery prize of Rs.300
(f) Paid income tax Rs.600(treat as drawings)
(g) All sales are on credit and his business expenses were Rs. 1,290

At 30th June 1999 stock at cost was Rs.4, 000, debtor totaled Rs.7, 000
And creditors were Rs. 3, 500, the balance at bank amounted to Rs.1, 950.
Prepare trading and profit & loss A/c for the year ended 1999 and balance sheet
For the year ended at the date.

2. MR.Hari carries on a business and doses not keep his books on double entry basis.
The following particulars have been extracted from his books.
PARTICULARS 1stjuly97 30th June
.Rs Rs (98)
Plant and machinery 25,000 25,000
Stock 22,000 19,500
Debtors 8,000 25,500
Creditors 12,500 10,000
Cash 400 800
Bank 6,250 7,000(cr)

The following cash transactions took place during the year ending 30th June 1998

Particulars Amount Particulars Amount


Received on account of 31,250 Payment for purchases 28,850
cash sales Payment to sundry creditors 1,32,000
Received from debtors 1,60,000 General expenses of business 21,450
Wages 15,000
drawings 6,800
During the year, hari had taken goods from the business for his own consumption
Which amounted to Rs.1, 950 .prepare trading and profit & loss A/c for the year ending?
30th June 1998 after charging the 10% depreciation on plant and machinery and also
Balance sheet for the year ended for 30th June 1998.

Mr. Prasad maintained his account on single entry system. His balance sheet for the
Year ended 31st march 1997 and 31st march 1998 are as follows.

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particulars 31st 31st


march march
1997(Rs) 1998(Rs)
Bills receivable 4,000 2,400
Stock 7,900 8,800
Creditors 9,400 8,350
Cash 3,908 1,963
Bills payable 3,471 5,051
Debtors 9,361 8,355
furniture 2,000 2,000

Form this cash book for the year 1997-98 you get the following information:
Wages Rs. 900, bills payable Rs.3,000, bills receivable Rs.4,300, expenses Rs.700
Salary Rs.800, investment purchased Rs.1,000, sales Rs 1,200, purchases Rs.600
Received from debtors Rs. 2,450, paid to creditors Rs.1,425 ,income Rs.30 and
Drawings Rs.1,500.

On enquiry you are told that in 1997-98 discount allowed and received were
Rs.400 and Rs.355 respectively. During the period, Prasad accepted bills for
Rs.4,580 and received bills for Rs. 3,000. His bad debts were Rs. 560 and bills
Receivable dishonoured Rs.300.
Give the trading and profit & loss A/c and also B/S for the year ended 31st
March 1998.

4. Shri HJ maintains his books on the single entry system and furnishes the following
details to you for the year 1998.

Fixed assets 20000 25000


Debtors 25000 40000
Creditors 15000 20000
Stock 10000 15000
Cash at bank 5000 8000
The other information relating to the year 1998 is as follows:

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Receipt from debtors 2,50,000


Payments to creditors 2,00,000
Discounts earned 5,000
Bad debts 7.000
Expenses paid 30,000
Drawings of Shri HJ 6,000
Cash sales 5,000
Cash purchases 11,000
Purchases returns 26,000
1. Depreciation fixed assets @ 10% of the balance sheet as at 31st dec 1998.
2. Provide for O/S liabilities for expenses of Rs 5,000
3. Provide a reserve for bad debts of Rs 2,500.
You are required to prepare P/L a/c for the year 1998 and a balance sheet as at 31st Dec.
1998.

5.Shiva does not maintain his books of accounts on double entry system. From the
following information prepare trading account, profit and loss A/c for the year 1988
and balance sheet at 31st dec1988.
Particulars 31.12.198 31.12198
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Debtors 18,000 31,900
Stock 9,800 ?
Furniture 1,000 1,500
Creditors 6,000 4,500
Bills receivable 4,000 5,000
Bills payable 3,000 5,000

*Analysis of cash book:


Receipts Amount Payments Amount
To balance b/d 5,000 By creditors 44,000
To debtors 60,800 By salaries 10,000
To capital 2,000 By furniture 500
To sales 1,500 By rent and taxes 3,000
To bills receivable 3,000 By other expenses 1,800
By drawing 3,000
By purchases 5,000
By bills payable 1,000
By balance c/d 4,000
72,300 72,300
Other information:
Discount received Rs 700, discount received Rs 300, return inward Rs 1,000, returns
Outward Rs 800. Furniture is to be depreciated at 10% .stock statement is missing but
he sells goods at 30% profit on selling price .
6.Mr Naveneet keeps his book by single entry . An analysis of his cash book for the year
ended 31st dec 1997 give the following particulars

Particulars Rs
Received from sundry debtors 6,000
Paid on capital 1,500
Due to bank 1st January 1997 500
Payment to sundry creditors 2,500
General expenses to business 1,000
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Wages 1,550
Drawings 300
Balance at bank 1,400
Balance at hand 250

particulars 1st 31st


jan97 dec97
Debtors 5,300 8,000
Creditors 1,500 1,950
Stock 1,700 1,900
Plant and fittings 3,000 3,000

The following information is also obtain:


1. Interest on capital should be provided at 10% per annum (drawing and payments for
capital should be ignored )
2. Depreciation at the rate of 10% per annum on plant and fittings should be provided
3. R.D.D should be created and maintained at 5% of sundry debtors
4. Bad debts during the year amounted to Rs 800
Prepare trading and profit and loss A/c for the year ended 31st dec 1997 and balance sheet
For the year ended 31st dec 1997

7. Mr. joy keeps his books on the single entry system. Following information is available
from his records:
Asset and liabilities 1st july 30th
97 june98

Stock 28,000 30,000


Bills receivable 8,000 6,000
Debtors 14,000 18,000
Bills payable 4,000 5,000
Sundry creditors 12,000 9,000
Cash and bank 3,000 5,000

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Summary of cash transactions:


Receipts Amount Payments Amount
Opening balance 3,000 Payments to creditors 30,000
Received from debtor 45,000 Payments against bills payable 25,000
Received against B/R 25,000 Office expenses 4,000
2,000 Domestic expenses 5,000
Investments 6,000
Closing balance 5,000
75,000 75,000

Investments consisted of 4% govt. bonds of the face value of Rs 10,000 and were purchased
on 1st January 1998 . prepare trading and profit and loss a/c for the year ended &balance
sheet for the year ended 30th June 1998.
8. Gopi does not know how to keep books of account. From the various records, certain
particulars are extracted and analyzed as under:
1) Balance as at 1st july 1998
Liabilities Amount Assets Amount
Capital 92,500 Furniture and fittings 57,000
Bills payable 32,800 Motor car 14,700
Sundry creditors 84,200 Stock of goods 51,500
Sundry debtors 49,500
Bills receivable 24,400
Cash in hand 12,400
2,09,500 2,09,500
2) Cash transactions during the year ended 30thJune 1999
Receipts Amount Payments Amount
To balance b/d 12,400 By investments at par (17% govt 30,000
To receipts form Dr’s 1,15,000 bonds on 31st dec 1998)
To bills receivable 14,200 By wages 9,400
To sales 1,03,000 By purchases 40,500
By drawings 24,000
By bills payable 30,700
By salaries 15,300
By general charges 5,400
By payment to creditors 80,800
By balance c/d 8,500
2,44,600 2,44,600

3) Remaining transactions

Particulars Amount Particulars Amount


Bills receivable Sales(credit) 75,200
drawn 6,300 Purchases(credit) 29,600
Discount to customer 2,300 Stock of goods on 30th june 1999 41,700
Bills payable
accepted 9,600
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Discount received 700

Provide for doubtful debts at 5% on debtors outstanding. Provide depreciation on furniture


and fitting at 10% and on motor car at 20%. Prepare final accounts.
9. you are given the following information form the books of Shri ashok who maintains his
accounts on single entry system.
Balance sheet as on 1st Jan 1998
Liabilities Amount Assets Amount
Bank loan 7,000 Cash in hand 1,000
Sundry creditors 25,000 Sundry debtors 12,000
Ashok capital 12,000 Stock in trade 14,000
Plant and machinery 8,000
Buildings 9,000
44,000 44,000

Cash transactions
Receipts Amount Payments Amount
To balance b/d 1,000 By bank loan repaid 5,000
To sales 8,000 By salaries 4,400
To sales of plant and By wages 1,400
machinery 3,000 By payment to creditors 40,000
To receipts form Dr’s 37,000 By office expenses 900
To loan form desai 9,100 By drawings 3,000
By purchase of furniture 2,000
By balance b/d 1,400
58,100 58,100
Other transactions: Total sales Rs 62,000, discount allowed Rs 800, total purchases Rs 47,000,
discount received Rs 700 , stock in trade(31.12.98) Rs 21,000

10. You are required to prepare a trading and profit & loss for the year ended 31st march 2000
and balance sheet as on 31st march 2000.
Balance sheet as on 31.03.99
Liabilities Amt Assets Amt
Creditors 20,000 Cash 5,000
Bills payable 40,000 Banks 10,000
capital 1,00,00 Bills receivable 20,000
0 Debtors 25,000
Stock 20,000
Furniture 10,000
Plant 70,000
1,60,00 1,60,00
0 0
Cash A/c for the year ended as on 31stmarch2000
Particulars Amt Particulars Amt
Balance Drawings 12,000
Cash 5,000 Wages 20,000
Bank 10,000 15,000 Payment to creditors 35,000
Cash sales 35,000 Bills paid 60,000
Collection form debtors 80,000 Sundry expenses 30,000
Bills receivable 75,000 Rent, rates and taxes 20,000
Balance
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Cash 3,000
Bank 25,000 28,000

2,05,00 2,05,00
0 0
Additional information :
Particulars Amt
Debtors 40,00
Creditors 0
Bills receivable 25,00
Bills payable 0
Stock in trade on 31st march 2000 30,00
Bills receivable in hand dishonoured during the year 0
Bills payable dishonoured 50,00
Bills receivable endorsed 0
Bills receivable as endorsed dishonoured 30,00
Discount allowed 0
Discount received 5,000
2,000
15,00
0
2,000
1,000
2,000

11. Valchand commenced business as a food merchant on 1st January 1997 with a capital of
Rs.20, 000 . On the same date he purchased furniture and fittings for cash Rs 8,000. From the
following particulars obtained from his books kept by single entry you are required to prepare
a trading and profit & loss account for the year ended 31st dec 1997 and balance sheet as on
that date:-
Sales (inclusive of cash Rs.20, 000) 40,000
Purchases (inclusive of cash Rs.12, 000) 34,000
Drawings 2,400
Salaries of staff 3,600
Bad debts written off 1,000
Business expenses 1,400

Valchand took food worth 1,000 form the shop for private use and paid Rs 400 to his son ,
but omitted to record these transactions in his books . On 31st dec 1997 his sundry debtors were
Rs 10,400 and sundry creditors Rs.7,200. Stock in hand on 31st dec 1997 was Rs 13,000.
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12. Mr. Subhash Chandra prajapati maintain the following record


Particulars 1999 2000
Cash at bank 4,000 15,00
Cash in hand 500 0
Stock in trade 24,000 800
Debtors ? 22,80
Creditors 23,500 0
Furniture 3,000 40,00
Motor vehicle 8,000 0
22,80
0
?
?

Cash transactions are as follows:-

Particulars Amt
Received form debtors 1,30,00
Discount allowed 0
Capital introduced on 01.07.2000 2,000
Payment to creditors 10,000
Discount received 1,20,00
Drawing 0
Bad debts recover 1,500
Salary is up to 30.11.00 8,000
Office rent is up to 31.10.00 400
Advertising 11000
Sundry expenses 2,000
Motor maintain 1,000
Printing 1,800
Traveling expenses 1,400
800
2,000

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Further information:-
He sells goods at 25% on selling price. Expenses o/s for printing & advertising is Rs 200 & 180.
Allowed 8% p. a. interest on capital. Depreciation motor – 20 % , furniture -10% ,provide 5%
on doubtful debts . Provide 2 ½ % discount on debtors .you are require to prepare trading and
profit and loss for the year ended 31.12.2000 and balance sheet as on 31.12.2000

13. The books Gopal showed the following figures:

Particulars 31st dec 31stdec


1996 1997
Cash in hand and at bank 3,400 19,950
Stock in trade 20,000 25,000
Trade debtors ? 35,000
Trade creditors ? 18,500
Sundry assets 3,000 -

Cash book showed the followed figures :


Particulars Rs
Receipts form debtors 1,36,00
Private dividends paid in 0
Indirect expenses 2,000
Drawings 19,650
Payments to creditors 4,600
Discount allowed by them 1,12,00
0
1,200

Additional information:
1. Cost of goods sold during the year was Rs 1,05,300
2. He maintains a steady gross profit at the rate of 25% on sale .
3. Bad debts written off during the period Rs 400, and past bad debts (already written off)
Recovered Rs.200.
You are required to prepare:
a) trading and profit &loss for the year ended 31.12.1997
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b) balance sheet as on that date

14.The following is the balance sheet of uma as o 30th june1998.


Liabilities Amt Assets Amt
Uma capital 96,000 Building 60,000
General reserve 30,500 Furniture 12,000
Creditors 62,000 Motorcar 18,000
Stock 40,000
Debtors 34,000
Cash in hand 7,500
Cash at bank 17,000
1,88,50 1,88,50
0 0
A fire occurred in the evening of 30th June 1999 in the premises of the trader, destroying all
books and records .The cashier absconded with the available cash in the cash box.
Mr.uma gives you the following information:
1.His sales for the year were 20% higher than the previous year. He sells his goods at cost plus
25%. 20% of the total sales were made for cash . There were no cash purchases.
2. From 1st July 1998,stock level was raised to 50,000
3. Collection from debtors amounted to Rs. 2,60,000 of which Rs. 60,000 was received in cash.
4. Business expenses amounted to Rs. 42,000 of which Rs 10,000 was outstanding on 30th June
1999 and Rs. 12,000 was paid by cheque. Creditors were paid by cheque only.
5. Analysis of the passbook revealed the following.
Particulars Rs.
Payment to creditors 2,75,00
Personal drawings 0
Cash deposited in the bank 15,000
Cash withdrawn from bank for office use 1,33,70
0
24,000

6.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%
You are required to ascertain the defalcated by the cashier and prepare a trading and profit
and loss for the year ended 30th June 1999 and a balance sheet for the year ended as on 30th
June 1999.

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