# ACCOUNTS FROM INCOMPLETE RECORDS SINGLE ENTRY SYSTEM

Questions Based on the Above Adjustment

Q.1    Sohan started business on 1st April, 2013 with capital of`10,00,000. On 31st March, 2014 his capital is `16,00,000. There are no drawings or no additional capital during the year. Ascertain his profit/loss of the year 2013-14.

Q.2.   If in the above question, Sohan has withdrawn `4,00,000 as drawings, find out his profit/loss.

Q.3.   If in question 1, Sohan has withdrawn `4,00,000 as drawings and introduced additional capital of `3,00,000, find out his proit/los.

PQ.1  Rohit started business with capital of `5 lac and introduced fresh capital of `3 lac and withdrew `2 lac during the year. He earned a profit of `4 lac during the year. Find out his closing capital.

PQ.2  Anubha started business with a capital of `25 lacs. She introduced capital of `6 lac and withdrew cash of `4 lac for personal purposes. Her closing capital is `36 lacs, find out her profit/loss during the year.

PQ.3  Rohit Sharma started business with a capital of `10 lac. He introduced capital of `7 lac and withdrew `3 lac during the year. His capital at the end of the period is `8 lac. Find out his profit/loss of the year.

PQ.4  Vicky does not maintain books of accounts. He produces the following information from his books. Find out additional capital introduced in the business during the year.

Opening Capital              :         `18,00,000

Drawing During the year :         `5,00,000

Closing Capital                :         `26,00,000

Profit During the year      :         `3,00,000

PQ.5  Piyush provides you the following information :

Opening Capital              :         `25,00,000

Closing Capital                :         `38,00,000

Profit During the year      :         `12,00,000

Calculate his drawings during the year.

PQ.6  Amar provides the following information :

Drawings during the year          :         `3,00,000

Closing Capital                :         `20,00,000

Profit During the year      :         `6,00,000

Calculate his opening capital.

Q.4    Vijay started his business on April 1, 2013 with a capital of `5,00,000. He did not maintain his books according to double entry system. During the year he introduced fresh capital of `1,50,000. He withdrew `1,00,000 for personal use.

On March 31, 2014 his assets and liabilities were as follows :

Sndry Creditors `9,00,000; Sundry Debtors `12,56,000; Stock `2,47,500; Cash at Bank `2,49,800.

Calculate Profit or Loss made by Vijay during the first year of his business using the statement of attains method.

1. 7 Manish started business on April 1, 2013 with a capital of `20,00,000. On March 31st, 2014 his position was as under :
 Particulars (`) Cash Bills Receivable Plant Land and Building Furniture Creditors 2,50,000 3,00,000 1,50,000 18,00,000 1,00,000 2,00,000

He withdrew `10,000 p.m. for his household enquiries. Ascertain his profit or loss for the year.

Q.5    From the following information, calculate the closing capital :

 April 1, 2013 March 31, 2014 Creditors Bills Payable Loan Taken Bills Receivable Stock Cash 10,000 22,000   40,000 30,000 8,00 25,000   60,000 1,00,000 80,000 25,000

Q.6    Mr. Arnav does not keeps his books on double entry system. He provides you the following information :

 April 1st, 2013 March 31st, 2014 Cash in Hand Cash in Bank Stock Debtors Business Premises Furniture Creditors Bills Payable 5,000 75,000 5,00,000 2,12,500 3,75,000 45,000 3,00,000 2,20,000 7,500 50,000 4,75,000 3,50,000 6,75,000 37,500 4,20,000 3,10,000

During the year, he withdrew `2,25,000 and introduced `1,25,000 as further capital in the business. Compute the profit or loss of the business.

PQ.8  Mr. Akshay does not keep proper books of accounts.

 April 1st, 2013 March 31st , 2014 Cash in Hand Cash in Bank Stock in Trade Sundry Debtors Sundry Creditors Loan Given Office Equipment Land and Building Furniture 90,000 7,500 4,00,000 1,80,000 3,00,000 50,000 1,25,000 1,50,000 50,000 60,000 10,000 4,50,000 3,00,000 2,00,000 40,000 1,50,000 1,00,000 50,000

During the year, he introduced `1,0,000 and withdrew `60,000 from the business. Ascertain his profit or loss of the year.

PQ.7  Krishan Kumar, a trader, does not keep proper books of account. However, he furnishes you the following particulars.

 March 31st, 2013 March 31st , 2014 Cash in Bank Cash in Hand Stock in Trade Debtors Office Equipment Sundry Creditors Furniture 45,000 3,000 4,00,000 1,20,000 50,000 3,00,000 40,000 30,000 40,000 4,50,000 2,00,000 50,000 2,00,000 40,000

During the year, he introduced `60,000 as further capital and withdrew
`40,000 as drawings. Write off depreciation on furniture @ 10% and on office equipment @ 5%.

PQ.9  From the following information relating to the business of Mr. Akram, who keeps books under single entry, ascertain the profit or loss for the year 2013-14.

 April 1st, 2013 March 31st , 2014 Machinery Furniture Stock Sundry Debtors Bank Balance Sundry Creditors 1,60,000 40,000 1,40,000 80,000 4,000 1,00,000 1,60,000 40,000 1,00,000 90,000 36,000 70,000

Mr. Akram withdrawn`41,000 during the year to meet his household expenses. He introduced `6,000 as fresh capital. Machinery and furniture to be depreciated by 10% and 5% p.a. respectively.

PQ.10          Mr. Shami does not keep proper records of his business. From the following information, prepare a statement showing profit or loss for the year :

 April 1st, 2013 March 31st , 2014 Cash Bank Stock Debtors Stock Building Creditors Loan Taken 1,00,000 1,50,000 85,000 2,00,000 1,45,000 2,60,000 50,000 90,000 1,65,000 1,25,000 3,00,000 1,45,000 1,60,000 1,25,000

He withdrew from the business`10,000 p.m. upto 30th Sept. 2013 and thereafter `12,000 p.m. a drawing. `2,50,000 was realized as maturity value of personal. Fixed deposit and the same was invested by him in his business.

Q.7    Mohnish does not keep his accounting records on full double entry system. On 1st April 2013 his financial position was as under :

 Liabilities (`) Asset (`) Creditors Capital 1,00,000 2,50,000         3,50,000 Cash in Hand Cash at Bank Debtors Stock Furniture Plant and M/c 6,000 1,8,000 79,000 68,000 50,000 1,29,000 3,50,000

His position at the end of the year was : Cash in Hand : `11,000; Cash at Bank `21,000 Stock `92,500 Debtors `1,02,000; Furniture `75,000; Plant and Machinery `2,00,000 and Creditors `1,11,500.

During the year, he withdrew `50,000 out of which he spent `40,000 on the cost of purchasing a bike for his business. Prepare necessary statements to determine the the net profit for the year and find statement of affairs as at 31st March, 2014 after making the following adjustments. Depreciate furniture and bike @ 10% and 5% provision is to be created for debited debts. `400 (i) bad debt.Salary outstanding `10,000 Prepaid insurance `4,000.

PQ.11          From the following information relating to the business of Mr. V.K. Agarwal, who keeps books on single entry system, ascertain the profit or loss for the year 2013-14

 April 1st, 2013 March 31st , 2014 Machinery Furniture Stock Sundry Debtors Bank Balance Loan Loan Sundry Creditors 48,000 12,000 42,000 24,000 1,200 (Cr) 10,000 (Dr) 30,000 (Cr) 30,000 48,000 12,000 30,000 27,000 10,800 (Dr) 15,000 (Cr) 50,000 (Cr) 21,000

He withdrew `30,000 during the year to meet his household expenses. He introduced `25,000 as fresh capital. Machinery and Furniture are to be depreciated @ 10% and 5% p.a. respectively.

Q.9    Rajesh keeps his books on single entry system his position on 1st April 2013 was as follows

 Liabilities (`) Asset (`) Bills Payable Creditors Capital 24,000 1,20,000 3,46,800       4,90,000 Cash in Hand Cash at Bank Bills Receivable Stock Debtors Furniture 15,600 50,400 42,000 1,50,000 1,36,000 96,000 4,90,000

On 31st March, 2014, his position was as under :

(i)       His cash position was improved by `6,000 and tank balance was increased by
`3,600

(ii)      Stock was reduced to `1,44,00 and debtors were increased by `6,000.

(iii)     The balance of creditors was `1,11,600.

(iv)     The bill receivale were reduced by `6,000.

(v)      There was no change in furniture.

Following adjustments were omitted as on 31st March, 2014.

(a)      Salary outstanding `9,000, Bad debts were `1,800 and create provision for doubtful debts on debtors @ 5%.

(b)      Provide depreciation on furniture @ 10%.

(c)      During the year, he withdrew `4,500 p.m. for household expenses. He sold his personal investments worth `24,00 at a premium of 5% and brought the money into his business.

Ascertain profit or loss for the year 2014-14 and also prepare final statement of affairs.

PQ.12          Mr. Vishal does not keep his books properly. Following information is available from his books :

 April 1st, 2013 March 31st , 2014 Sundry Creditors Loan from Wife Sundry Debtors Land and Building Cash in Hand Bank Overdraft Furniture Stock 90,000 1,32,000 45,000 1,99,200 15,000 50,000 2,600 68,000 1,86,000 1,14,000 – 2,20,000 17,400 – 2,600 10,000

During the year, he sold his private car for `1,00,000 and invested this amount into the business. He withdrew from the business `3,000 p.m. upto 31st July 2013 and thereafter `9,000 p.m. as drawings. You are required to prepare a statement of profit or loss and a statement of affairs as at 31st March 2014.

Q.10  Bharat keeps incomplete records and gives you the following information that he could extract.

 April 1st, 2013 March 31st , 2014 Stock Debtors Creditors Bills Receivable Bill Payable Furniture Building Bank Balance 37,400 24,000 18,000 8,000 2,000 1,200 24,000 8,700 40,800 28,000 3,000 10,000 400 1,200 24,000 6,700 (Cr)

You are also given the following

(i)       A provision of `2,900 is required for bad and doubtful debts.

(ii)      Depreciation @ 5% is to be written off on Building and Furniture.

(iii)     Wages outstanding `6,000; salaries outstanding `2,400.

(iv)     Insurance has been prepaid to the extent of `500.

(v)      Legal expenses outstanding `1,400

(vi)     Drawings of Mrs. Bharat during the year `15,040.

Prepare a statement of profit as on 31st March 2014 and statement of affairs as at that date.