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ACCOUNTS FROM
INCOMPLETE RECORDS
SINGLE ENTRY SYSTEM
MODULE IV(1) OF IV
DISCLAIMER
1
2
3
ICAI, 2012
The content of this video lecture has not been specifically discussed
by the Council of the Institute or any of its Committees and the views
expressed herein may not be taken to necessarily represent the views
of the Council or any of its committees
IMPORTANT NOTES
ICAI, 2012
AGENDA
To learn to do full
fledged 16 marks/20 marks
sum which were asked in the
previous exams.
ICAI, 2012
IPCC(RASHID SUM)
(20 marks
Rashid Sum
Shri Rashid furnishes you with the following information
relating to his business
(a) Assets and Liabilities as on : 1.1.97
31.12.97
Rs
Rs
Furniture (W.D.V)
6000
6350
Stock at cost
8000
7000
Sundry debtors
16000
?
Sundry creditors
11000
15000
Prepaid expenses
600
700
Unpaid expenses
2000
1800
Cash in hand and at Bank
1200
625
.....Rashid Sum
.....Rashid Sum
5. Amount withdrawn for personal use Rs.7000.
6. Payment for office furniture Rs.1000.
7. Investment carrying annual interest of 4%
was purchased at Rs.96 on 1.7.97 and
payment made.
8. Expenses including salaries paid Rs.14500.
9. Miscellaneous receipts Rs.500.
.....Rashid Sum
(c) Bills of exchange drawn on and accepted by
customers during the year amounted to Rs.10000
of these, bills of exchange of Rs.2000 were
endorsed in favour of creditors and endorsed bill
of exchange of Rs. 400 was dishonored.
(d) Goods costing Rs. 900 were used as advertising
materials.
(e) Goods are invariably sold to show a gross profit
of 331/3% on sales.
.....Rashid Sum
(f) Differences in cash book, if any, is to be,
treated as further drawings or introduction by
Shri Rashid.
(g) provide 2.5% for doubtful debts on closing
debtors
Rashid asks you to prepare a
trading and profit and loss A/c for the year
31.12.97 and the balance sheet as on that
date.
ICAI, 2012
16,000
6,000
8,000
600
1,200
31,800
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STEPS TO BE FOLLOWED
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JOURNAL ENTRIES
1,200
58,500
58,500
1,500
60,000
By Closing balance
625
Debtors A/c
To Opening Balance
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16,000
By Cash
By Discount
58,500
1,500
Cash A/c
Discount A/c
To Bills Receivables A/c
Cash A/c
Dr.
Dr.
6,125
125
6,250
To Opening Balance
1200
To Sundry Debtors
58,500
To Bills of Exchange
6125
By Closing Balance
625
6125
125
Dr.
40,000
39,200
800
Cash A/c
To Opening Balance
1200
To Sundry Debtors
58,500
By Sundry Creditors
39,200
To Bills of Exchange
6125
By Closing Balance
625
Creditor A/c
To Cash
To Discount
To Balance b/d
ICAI, 2012
39,200
800
15,000
By Opening Balance
11,000
Dr. 3,000
3,000
Cash A/c
To Opening Balance
To Sundry Debtors
To Bills of Exchange
1200
58,500
6125
Dr. 7,000
7,000
Cash A/c
1200
By Freight inward
3,000
To Sundry Debtors
58,500
By Sundry Creditors
39,200
To Bills of Exchange
6125
By Drawings
7,000
By Closing Balance
625
ICAI, 2012
Dr.
1,000
1,000
Cash A/c
To Opening Balance
1200
By Freight inward
3,000
To Sundry Debtors
58,500
By Sundry Creditors
39,200
To Bills of exchange
6125
By Drawings
7,000
By Furniture
1,000
By Closing balance
625
Furniture A/c
To opening balance
6,000
To Cash
1,000
ICAI, 2012
By closing balance
6350
Assumptions :
The face value of investment was
Rs.100 but was purchased for Rs.96 on 1st July
1997 at 4 % interest.
Interest receivable = 100 * 4 % * (6/12)
= Rs.2
All Interest Receivables should
be credited to P&L a/c & added to the
investment in the Balance Sheet.
ICAI, 2012
....Contd
4% Investment A/c
Dr.
To Cash A/c
Interest Accrued A/c
Dr.
To Interest Receivables A/c
Cash A/c
96
96
2
2
To Opening Balance
1200
By Freight inward
3,000
To Sundry Debtors
58,500
By Sundry Creditors
39,200
To Bills of exchange
6,125
By Drawings
7,000
To Misc. Receipts
500
By Furniture
1,000
By 4% Investment
96
By Closing balance
625
ICAI, 2012
14,500
600
(700)
(2,000)
1,800
14,200
1200
58,500
6,125
500
500
500
By Freight inward
By Sundry Creditors
By Drawings
By Furniture
By 4 % Investment
By Closing balance
3,000
39,200
7,000
1,000
96
625
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ICAI, 2012
To Cash
39,200 By o/p balance
11,000
To Discount
800 By Credit
To Bills
Purchase
?
Receivables
2,000 By Sundry Debtors
400
To closing
balance
15,000
ICAI, 2012
To Cash
39,200 By o/p balance
11,000
To Discount
800 By Credit
To Bills
Purchase
45,600
Receivables
2,000 By Sundry Debtors
400
To closing
balance
15,000
57,000
ICAI, 2012
57,000
125
6,125
2,000
1,750
10,000
Dr.
900
900
Note :
Advertisement will be debited to P&L A/c
and reduced from Purchases in Trading A/c.
ICAI, 2012
ICAI, 2012
Furniture A/c
To Opening
Balance
To Cash
By Depreciation
6,000
1,000
By Closing Balance
7,000
ICAI, 2012
650
6,350
7,000
To Opening Stock
To Purchases 45600
(-)Advertisement
900
To Freight Inward
To Gross Profit
Trading A/c
8,000 By Sales
73,050
7,000
80,050
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ICAI, 2012
4,27,500
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= 19,450 * 2.5 %
=
486.25
Rs.486
ICAI, 2012
25,652
25,652
S. Creditor
Unpaid Expenses
ICAI, 2012
S. Debtor 19450
(-)Provision 486
Furniture
7000
18,687 (-)depreciation 650
Stock
Prepaid Expenses
Cash
15,000 Bills Receivables
1,800 4% Investment
96
(+)Int.Receivable 2
35,487
18,964
6,350
7,000
700
625
1,750
98
35,487
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Summary
This is a very comprehensive sum with some
beautiful adjustments .
Students practising it can indeed master Single
Entry.
ICAI, 2012
THANK YOU
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