OMTEX CLASSES: Single Entry Accounting System HSC Accounts 12th Standard.

Single Entry Accounting System HSC Accounts 12th Standard.

Single Entry Accounting System

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.