Single Entry Accounting System
Mrs. Ankita withdrew Rs. 4000 for her personal use. She received Rs. 15000 from her father as gift, which she brought into the business.
Textbook Problems.
1. Mr. Mangesh is dealing in business. He maintains his accounting with single entry. The following are details of his business. (Textual Problem. No. 1)
Statement of Profit or Loss for the year ended 31st March, 2011
 Particulars |
1.4.2012
|
31.3.2013
|
Land and Building
|
40000
|
50000
|
Machinery
|
30000
|
40000
|
Furniture
|
10000
|
10000
|
Debtors
|
20000
|
40000
|
Stock
|
10000
|
25000
|
Cash Balance
|
5000
|
15000
|
Bills Receivable
|
5000
|
5000
|
Creditors
|
25000
|
25000
|
Bank Overdraft
|
5000
|
-
|
Bank Balance
|
-
|
10000
|
Mr. Mangesh introduced Rs. 10,000 as additional capital. He spent Rs. 45,000 for personal use. Depreciate Land and Building by Rs. 5000. Provide 5% R.D.D. on Debtors.
Prepare Opening Statement of affairs. Closing statement of affairs and the statement of profit or loss.
2. Mrs. Ankita keeps her books under single entry system and gives the following information. (Textbook Problem No. 2)
Particulars
|
01-04-2011
|
31-03-2012
|
Investments
|
-
|
12000
|
Bank Overdraft
|
-
|
10000
|
Bills Payable
|
5000
|
8000
|
Creditors
|
26500
|
31500
|
Furniture
|
9000
|
19000
|
Debtors
|
35000
|
50000
|
Stock in Trade
|
15000
|
19000
|
Bank Balance
|
18000
|
28000
|
Mrs. Ankita withdrew Rs. 4000 for her personal use. She received Rs. 15000 from her father as gift, which she brought into the business.
Additional furniture was purchased on 1st October 2011. Depreciate furniture by 10% p.a.
Write off Rs. 1000 as bad debts and provide 5% R.D.D. on debtors. Find the profit or loss of her business for the year ended 31st March, 2012.
3. Miss. Kavita commenced her business with a capital of Rs. 1,30,000 on 1st April 2010. Her financial position as on 31st March, 2011, was as follows: Cash Rs. 9,120, Stock Rs. 10,250, Bills Payable Rs. 12,880, Creditors Rs. 17,180, Debtors Rs. 31,550, Bills Receivable Rs. 29,120, Premises Rs. 85,750, Vehicles Rs. 40,250: (Textbook Problem No. 3)
Additional Information:
(1) She brought additional capital Rs. 20,000 on 30th September 2010. Interest on capital is to be provided at 5% p.a.
(2) She withdrew Rs. 10,000 for personal use on which interest is to be charged at 6% p.a.
(3) R.D.D. is to be provided at 2 ½ % p.a. after providing Bad debts Rs. 1000.
(4) Depreciate Vehicles at 2% and Premises at 4%.
4. Mahendra keeps his books by Single Entry System. His position on 1st April 2012, was as follows: Cash in Hand Rs. 7,900, cash at bank Rs. 20,000, Debtors Rs. 18,000, Stock Rs. 29,000, Motor Car Rs. 5,000, Bank Loan Rs. 18,000 and outstanding expenses Rs. 2700.
On 1st October, 2012 Mahendra introduced Rs. 10,000 as further capital in the business and withdrew on the same date Rs. 7000 out of which he spent Rs. 5000 on the purchase of a Machinery for the business.
On 31st March 2013 his position was follows: Cash in Hand Rs. 7,600, Cash at Bank Rs. 22,000, Stock Rs. 30,000, Debtors Rs. 25700, Furniture Rs. 6,000, Creditors Rs. 25,200 and prepaid expenses Rs. 200.
Prepare a statement showing the Profit or Loss made by him during the year ended 31st March, 2013 and Opening the Closing statement of affairs. Consider the following adjustments also.
(1) Depreciate Motor car and Furniture @ 10% p.a. Additions to furniture was made on 1st October, 2012.
(2) Provide Rs. 1200 for Bad debts and provide 5% R.D.D.
(3) Goods taken for personal use by Mahendra amounting to Rs. 1500.
(4) Provide Interest on capital @ 10% p.a.
5. Mr. Suhas a small trader provides you the following details about his business:
Particulars
|
1.4.2011
|
31.3.2012
|
Debtors
|
45000
|
50000
|
Creditors
|
60000
|
70000
|
Computer
|
60000
|
120000
|
10% Govt. Bonds
|
-
|
10000
|
Bank Overdraft
|
80000
|
40000
|
Motor Van
|
80000
|
80000
|
Furniture
|
10000
|
10000
|
Stock
|
65000
|
80000
|
Cash in Hand
|
2000
|
8000
|
Bills Receivable
|
60000
|
80000
|
Additional Information:
1. On 1st October, 2012 he withdrew Rs. 40,000 for his personal use.
2. Charge Interest on Drawings Rs. 2,000.
3. He had also withdrawn Rs. 30,000 for Rent of his residential flat.
4. Depreciate furniture by 10% and write off Rs. 2000 from motor van.
5. 10% Government Bonds were purchased on 1st October, 2011.
6. Allow interest on Capital at 10% p.a.
7. Rs. 2000 is written off as bad debts and provide 5% R.D.D. on debtors.
Prepare Opening Statement of affairs, closing statement of affairs and statement of profit or loss for the year ended 31st March, 2012.
6. Mr. Govind keeps his books on Single Entry System and disclosed the following information of his business.
Particulars
|
1.4.2010
|
31.3.2011
|
Investments
|
-
|
30000
|
Bills Payable
|
-
|
18000
|
Creditors
|
52500
|
69000
|
Furniture
|
15000
|
15000
|
Debtors
|
60000
|
90000
|
Stock in Trade
|
30000
|
37500
|
Cash at Bank
|
36000
|
54000
|
Additional Information:
1. Mr. Govind transferred Rs. 300 per month during first half year and Rs. 200 each month for the remaining period from his business to his personal account. He also took goods of Rs. 700 for private use.
2. Mr. Govind sold his personal asset for Rs. 7000 and brought the proceeds into his business.
3. Furniture to be depreciated by 10%.
4. Provide R.D.D. 5% on Debtors.
Prepare Opening and Closing Statement of affairs and statement of profit or loss for the year ended 31st March 2011.
7. Sun and Moon are partners in a firm sharing profit and losses in the ratio of 3:2. They kept their books under Single Entry System. On 1st April 2010 the following statement of affairs was extracted from their books. [Textbook Problem No. 7]
Statement of Affairs as on 1st April, 2010
Liabilities
|
Amount
|
Assets
|
Amount
|
Capitals: Sun
|
12500
|
Plant and Machinery
|
15000
|
Moon
|
10000
|
Stock
|
10000
|
Creditors
|
15000
|
Debtors
|
17500
|
Bills Payable
|
12500
|
Cash in Hand
|
7500
|
50000
|
50000
|
On 31st March 2011 their assets and liabilities were as follows: Plant and Machinery Rs. 44000, Stock Rs. 32000, Cash in Hand Rs. 12,000, Creditors Rs. 8000, Debtors Rs. 20,000 and Bills Payable Rs. 15000. Drawing during the year: Sun Rs. 5000 and Moon Rs. 3000.
Prepare Closing Statement of affairs and statement of profit or loss for the year ended 31st March 2011 after considering the following adjustments.
(1) Plant is overvalued by 10% and stock is undervalued by 20%.
(2) R.D.D. is to be created at 10% on Debtors.
(3) Interest on Capital is to be allowed at 10% p.a. and at 10% p.a. on Drawings.
8. A and B are in Partnership. Their Capitals on 1st April 2010 were Rs. 30,000 each. The assets and liabilities as on 31st March 2011 were as follows: Cash in Hand Rs. 2,400, Cash at Bank Rs. 16,000, Bills Receivable Rs. 4,000, Debtors Rs. 28,600. Stock Rs. 26,000. Machinery Rs. 14,000, Furniture Rs. 8,000, Bills Payable Rs. 3,000, Sundry creditors Rs. 6,000, Outstanding salary Rs. 800.
Additional Information:
(1) Provide Rs. 600 as Bad Debts and 5% R.D.D.
(2) Depreciate furniture @ 5% p.a. and Machinery @ 10% p.a.
(3) Stock is undervalued by Rs. 2,000.
(4) Sundry creditors are overvalued by Rs. 1,000.
(5) Prepaid insurance Rs. 2,000.
(6) Additional capital introduced by partners Rs. 4,000 each.
(7) Drawings of ‘A’ Rs. 3,000 and ‘B’ Rs. 2,000, calculate the profit for the year ended 31st March 2011.
9. Asha and Usha were partners’ sharing profits and losses in the ratio of 2:1. Prepare their statement of Profit or Loss for the year ended 31st March, 2012 from the following statement of Affairs as on 31st March, 2011.
Statement of Affairs as on 31st March, 2011.
Liabilities
|
Amount
|
Assets
|
Amount
|
Creditors
|
33,000
|
Cash at Bank
|
6000
|
Bills Payable
|
9000
|
Cash in Hand
|
2000
|
Capitals: Asha
|
62000
|
Building
|
41,000
|
Usha
|
32000
|
Machinery
|
21000
|
Furniture
|
10000
| ||
Stock
|
18000
| ||
Debtors
|
25000
| ||
Bills Receivable
|
13000
| ||
136000
|
136000
|
The assets and liabilities as on 31st March 2012 were:
Sundry Creditors Rs. 35,000, Bills Receivable Rs. 18,000, Bills Payable Rs. 15,000, Cash in hand Rs. 3000, Stock Rs. 32,000. Cash at Bank Rs. 6,000, Debtors Rs. 38,000. There were no changes in fixed assets.
Further information:
(1) Asha and Usha had drawn Rs. 10,000 and Rs. 8000 respectively for personal use.
(2) They also brought additional capital of Rs. 6000 and 4000 respectively.
(3) Building to be depreciated by 5% and machinery and furniture at 10%.
(4) Allow interest at 10% p.a. on opening capitals and charge interest on drawings of Asha and Usha at Rs. 700 and Rs. 500 respectively.
