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   If in the above question, Sohan has withdrawn `4,00,000 as drawings, find out his profit/loss.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   If in question 1, Sohan has withdrawn `4,00,000 as drawings and introduced additional capital of `3,00,000, find out his proit/los.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

Additional Capital           :         `6,00,000

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

Additional Capital           :         `5,00,000

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.

 

 

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