1st Puc Accountancy Chapter 11 Accounts From Incomplete Records Notes Question Answer Mcq Pdf Download 2023 Class 11 Accounts Chapter 11 Practical Problems Accounts Chapter 11 Class 11 Solutions Accounts From Incomplete Records Class 12 Notes Kseeb Solutions For Class 11 Accountancy Chapter 11 Notes Pdf ಪ್ರಥಮ ಪಿಯುಸಿ ಲೆಕ್ಕಶಾಸ್ತ್ರ ಅಧ್ಯಾಯ – 11 ನೋಟ್ಸ್
1st Puc Accountancy Chapter 11 Notes
One Mark Qs
Q1. Write the meaning of Statement of affairs.
A: It is just like a balance sheet. A statement which shows the values of Assets and Liabilities of a business on a given date. This statement helpful to find out capitals of a business.
Q2. What is Adjusted closing capital under Single Entry system
A: Under single entry system adjusted capital means closin capital adjusted with drawings and additional capital called aditional capital [Closing capital + Drawings — Additional Capital = Adjusted capital)
Q3. What is the object of preparing statement of affairs?
A: Single Entry System is inomplete unscientific method of book keeping. For the purpose of finding out capital, Balance sheet equation is applied. The difference between asset and Liability treated as capital [Assets — Liability =Capital].
Q4. If opening capital is ‘60,000, drawings ‘5,000, additional capital’ 10,000, closing capital “90,000 , what will be the profit earned?
A: Profit = Closing capital + Drawings — (Additional capital + Opening capital)
Profit = 90,000 + 5,000 — (10,000 + 60,000) Profit = 25,000.
Q5. Define Single Entry System.
A: Prof: Eric Kholar defines Single Entry System as “a system of book keeping in which as a rule, only records of cash and persons are maintained; it is always in complete double entry, varying with circumstances”.
Q6. Write two features of Single Entry System.
A: The two features of single entry system are.
(a) Both the aspect each and every transactions are not recorded under single entry system.
(b) Under this system all kinds of accounts are not maintained.
Q7. Mention any two merits of Single Entry System
A: The two advantages or merits of single entry systems are
(a) It is a simple and easy method of book-keeping.
(b) It is less costly, because only few books of accounts are maintained.
Q8. State any Two de-merits of Single.
A: Two disadvantages or demerits of sind! entry system is
- Both the aspects of each dnd every transaction are not recorded underthis system. So it is incomplete system of records.
- Not possible to find out correct profit or loss of a concern.
Q9. Mention the different types of Single Entry System.
A: Three types of single entry systems are:
(a) Pure Single Entry System
(b) Simple Single entry system
(c) Quasi Single Entry system.
Q10. How do you ascertain profit or loss under Single Entry System?
A: Under single entry system profit or loss of a concern can be found in two ways. They are Statement of Affairs method. Conversion of single entry to double entry system method.
Q11. Write the Balance Sheet Equation.
A: Balance Sheet Equation.
Assets = Capital + Liability.
Q12. What is statement of Profit or Loss?
A: Statement of Profit or Loss is a statement prepared under single entry system. It is prepared for the purpose of ascertaining Profit or Loss of a business in a given period.
Q13. Mention the books maintained under Single Entry System.
A: The books maintained under single entry system are
(a) Cash Book
(b) Debtors and Creditors personal a/c
(c) Few Subsidiary books.
Q14. Write any Four examples of Assets mentioned in statement of affairs
A: The assets recorded in statement of affairs are: Land and building, Machinery, Debtors and Cash are Four Examples of Assets.
Q15. tate the meaning of incomplete records.
Accounting records prepared without following the double entry book keeping system strictly are called incomplete records. In this type of recording mechanism some of the transactions are recorded either by making one entry or no entry. In this way it impacts assets, liabilities, revenue and expenses and hence are known as incomplete records.
1st Puc Accountancy Chapter 11 Notes
Six and Twelve Marks Qs
Q1. Distinguish between statement of affairs and balance sheet.
| Basis of Difference | Statement of Affairs | Balance Sheet |
| Meaning | It is a statement that shows the assets, liabilities and capital of a business entity on basis of single entry system of bookkeeping | It is a statement showing assets, liabilities and capital of a business entity prepared on the basis of double entry system of bookkeeping |
| Reliability | As the data is based on estimates, it is not reliable. | It is more reliable as it based on a tested method of data entry |
| Accounting Method | Incomplete records forms the basis of its preparation | Prepared from double entry book keeping |
| Accuracy | Very Less | Accurate to a large extent |
Q2. What practical difficulties are encountered by a trader due to incompleteness of accounting records?
Following difficulties are faced by trader due to incompleteness of accounting records:
1. It is not possible to determine accuracy of accounts and correctly prepare trial balance as the records are not as per the double entry system.
2. It is difficult to make tax authorities believe, the reliability of the income that is computed.
3. Determining and evaluating financial results of a business will not be possible
4. True profit or loss cannot be determined as all transactions are not recorded.
5. Profitability, liquidity and solvency of a business cannot be determined. Hence, investors will be doubtful about investment.
6. Encourages fraud as there is no arithmetical accuracy in the records.
Q3. What are the possible reasons for keeping incomplete records?
Incomplete records are kept due to the following reasons:
- Businesspersons lack a requisite accounting knowledge and are more inclined to follow this method.
- Recording transactions using single entry system tends to be less time-consuming and requires less maintenance.
- It is cost-effective way of keeping records as it doesn’t require a specialist.
- It gives the owner flexibility to record those transactions which are more important for business.
Q4. What is meant by a ‘statement of affairs’? How can the profit or loss of a trader be ascertained with the help of a statement of affairs?
It is a statement that shows assets and liabilities, that is prepared at the beginning and end of one accounting period. Assets and liabilities are shown in two sides similar to a balance sheet. However, the basic difference between statement of affairs and balance sheet is that, the former is prepared from incomplete records while the latter is prepared from ledger entries. Capital is said to be the difference between the totals of assets and liabilities.
Capital will be shown at the beginning and end of accounting period when a statement of affairs is prepared. Using this information, a statement of profit and loss is prepared to find out the profit or loss. Adjustments needs to be made for withdrawals by owner and for fresh capital introduced by owners during the period.
A business earns profit if the net results of calculation is positive and is said to make a loss if the results are negative. Thus, profit and loss of owners can be determined using this process.
Karnataka 1st PUC Accountancy Chapter 11 Accounts from Incomplete Records
Q5. Is it possible to prepare the profit and loss account and the balance sheet from the incomplete book of accounts kept by a trader’? Do you agree? Explain.
It is possible to prepare profit and loss account and balance sheet from incomplete book of accounts by a process known as conversion method. In this method, the incomplete records gets converted to double entry records. It is easy to convert some of the incomplete entries such as debtors, creditors, cash payments, cash sales and cash receipts as they are easily available. However, there will be some transactions for which details are not available. Still such details can be found using logic. Here are some transactions that are necessary for creating complete record.
1. Opening capital
2. Credit Purchases
3. Credit sales
4. Bills Payable accepted
5. Opening Capital
6. Payment to creditors
In some cases payment received from debtors and amount paid to creditors, for such cases it is essential to prepare debtor or creditor account to determine the values first. The final accounts can be prepared after these accounts are prepared.
Q6. Explain how the following may be ascertained from incomplete records:
(a) Opening capital and closing capital
(b) Credit sales and credit purchases
(c) Payments to creditors and collection from debtors
(d) Closing balance of cash.
1. Opening capital and closing capital: By preparing the opening statement of affairs at the start of the accounting period the opening capital value can be determined, while by preparing a closing statement of affairs, the value of closing capital can be determined.
Statement of Affairs as on….
| Liabilities | Amount₹ | Assets | Amount₹ |
| Bills Payable | – | Land and Building | – |
| Creditors | – | Plant and Machinery | – |
| Outstanding expenses | – | Furniture | – |
| Opening Capital (Balancing Figure)* | – | Stock | – |
| Debtors | – | ||
| BankCash | – | ||
| Prepaid Expenses | – | ||
| Opening Capital (Balancing Figure)* | – |
* When total of liabilities are more than total of assets, capital is shown in assets side and represents debit balance.
When the total of assets’ balance exceeds total of liabilities’ balance, capital is shown in the liabilities side.
2. Credit Sales and Credit Purchases: Credit sales are found to be missing from incomplete records. For evaluating it, there is need of preparing total debtors account. The total sales return, if there is any, must be deducted from the total debtors account. The credit sales is given by the balancing figure.
Similarly, to evaluate credit purchases, preparing total creditor account is necessary. Total purchase returns should be deducted from total creditors account. The balancing figure represents the credit purchase.
Total Debtors Account
Dr. Cr.
| Particulars | J.F. | Amount₹ | Particulars | J.F. | Amount₹ |
| Balance b/d | – | Cash (Cash Received) | – | ||
| Bills Receivable | – | Bank (Cheque Received) | – | ||
| (Bill Dishonoured) | Discount Allowed | – | |||
| Bank (Cheque Dishonoured) | – | Bad Debts | – | ||
| Credit Sales (Balancing Figure) | – | Sales Returns | – | ||
| Bills Receivable(Bill Received) | – | ||||
| Balance c/d | – |
Total Creditors Account
Dr. Cr.
| Particulars | J.F. | Amount ₹ | Particulars | J.F. | Amount₹ |
| Cash Paid | – | Balance b/d | – | ||
| Bank (Cheque Issued) | – | Bank(Cheque Dishonoured) | – | ||
| Bills Payable (Bills Accepted) | – | Bills Payable (Bills Dishonoured) | – | ||
| Discount Received | – | Credit Purchases | – | ||
| Purchases Returns | – | (Balancing Figure ) | – | ||
| Balance c/d | – |
3. Payment to creditors and collection from debtors: For determining payment to creditors preparing total creditors account is required, by deducting total purchase returns, the balancing figure provides the payment to creditors while for determining collection from debtors, preparing total debtors account is necessary, by deducting total sales returns, the balancing figure provides the collection from debtors.
4. Closing balance of cash: To evaluate closing balance of cash, preparing cash book summary is necessary. Cash book summary includes all receipts from debit and all payments done during that period in credit part, the balancing figure provides the balance of cash. Total creditor or total debtor accounts are required if amount paid to creditors or received from debtors are not present.
Q7. Following information is given below prepare the statement of profit or loss:
| ₹ | |
| Capital at the end of the year | 5,00,000 |
| Capital in the beginning of the year | 7,50,000 |
| Drawings made during the period | 3,75,000 |
| Additional Capital introduced | 50,000 |
The solution is as follows:
Statement of Profit and Loss
| Particulars | Amount₹ |
| Capital at the end of the year | 5,00,000 |
| Add: Drawings made during the year | 3,75,000 |
| Less: Capital in the beginning of the year | (7,50,000) |
| Less: Additional capital introduced | (50,000) |
| Profit during the year | 75,000 |
Q8. Manveer started his business on April 01, 2016 with a capital of ₹ 4, 50,000. On March 31, 2017 his position was as under:
| ₹ | |
| Cash | 99,000 |
| Bills receivable | 75,000 |
| Plant | 48,000 |
| Land and Building | 1,80,000 |
| Furniture | 50,000 |
He owned ₹ 45,000 from his friend Susheel on that date. He withdrew ₹ 8,000 per month for his household purposes. Ascertain his profit or loss for this year ended March 31, 2017.
The solution is as follows:
Books of ManveerStatement of Affairs as on March 31, 2017
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Loan from Susheel | 45,000 | Cash | 99,000 |
| Bills Receivable | 75,000 | ||
| Plant | 48,000 | ||
| Closing Capital(Balancing Figure) | 4,07,000 | Land and Building | 1,80,000 |
| Furniture | 50,000 | ||
| 4,52,000 | 4,52,000 |
Statement of Profit and Loss as on March 31, 2017
| Particulars | ₹ |
| Capital on March 31, 2017 | 4,07,000 |
| Add: Drawings made during the year (₹ 8,000 × 12) | 96,000 |
| Less: Capital on April 01, 2016 | (4,50,000) |
| Profit during the year 2017 | 53,000 |
Q9. From the information given below ascertain the profit for the year:
| ₹ | |
| Capital at the beginning of the year | 70,000 |
| Additional capital introduced during the year | 17,500 |
| Stock | 59,500 |
| Sundry debtors | 25,900 |
| Business premises | 8,600 |
| Machinery | 2,100 |
| Sundry creditors | 33,400 |
| Drawings made during the year | 26,400 |
The solution is as follows:
Statement of Affairs
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Sundry Creditors | 33,400 | Stock | 59,500 |
| Capital (Balancing figure) | 62,700 | Sundry Debtors | 25,900 |
| Business Premises | 8,600 | ||
| Machinery | 2,100 | ||
| 96,100 | 96,100 |
Statement of Profit and Loss
| Particulars | Amount₹ |
| Capital at the end of the year | 62,700 |
| Add: Drawings made during the year | 26,400 |
| Less: Capital of the beginning of the year | (70,000) |
| Less: Additional capital introduced during the year | (17,500) |
| Profit during the year | 1,600 |
Q10. From the following information, calculate capital at the beginning:
| ₹ | |
| Capital at the end of the year | 4,00,000 |
| Drawings made during the year | 60,000 |
| Fresh capital introduce during the year | 1,00,000 |
| Profit of the current year | 80,000 |
The solution is as follows:
| Capital in the beginning | = | Capital at the end + Drawings – (Fresh Capital Introduced + Profit) |
| = | 4,00,000 + 60,000 – (1,00,000 + 80,000) | |
| = | ₹ 2,80,000 |
Q11. Following information is given below: calculate the closing capital
| April.01, 2016 | March.31, 2017 | |
| ₹ | ₹ | |
| Creditors | 5,000 | 30,000 |
| Bills payable | 10,000 | 50,000 |
| Loan | – | 50,000 |
| Bills receivable | 30,000 | 50,000 |
| Stock | 30,000 | 30,000 |
| Cash | 2,000 | 20,000 |
Calculation of profit or loss and ascertainment of statement of affairs at the end of the year (Opening Balance is given)
The solution is as follows:
Statement of Affairs as on April 01, 2016
| Liabilities | Amount ₹ | Assets | Amount₹ |
| Creditors | 5,000 | Bills Receivable | 30,000 |
| Bills Payable | 10,000 | Stock | 5,000 |
| Capital (Balancing figure) | 22,000 | Cash | 2000 |
| 37,000 | 37,000 |
Statement of Affairs as on March 31, 2017
| Liabilities | Amount ₹ | Assets | Amount₹ |
| Creditors | 30,000 | Bills Receivable | 50,000 |
| Loan | 50,000 | Stock | 30,000 |
| Capital (Balancing figure) | 20,000 | Cash | 20,000 |
| 1,00,000 | 1,00,000 |
Capital on March 31, 2017 (Closing) is ₹ 20,000
Statement of Profit and Loss
| Particulars | Amount₹ |
| Capital on March 31, 2017 | 20,000 |
| Less: Capital on April 01, 2016 | (22,000) |
| Loss during the year 2017 | (2,000) |
Q12. Mrs. Anu started firm with a capital of ₹ 4, 00,000 on 1st October 2016. She borrowed from her friends a sum of ₹ 1, 00,000 @ 10% per annum (interest paid) for business and brought a further amount to capital ₹ 75,000 on March. 31, 2017, her position was:
| ₹ | |
| Cash | 30,000 |
| Stock | 4,70,000 |
| Debtors | 3,50,000 |
| Creditors | 3,00,000 |
He withdrew ₹ 8,000 per month for the year. Calculate profit or loss for the year and show your working clearly.
The solution is as follows:
Books of Mrs. AnuStatement of Affairs as on March 31, 2017
| Liabilities | Amount ₹ | Assets | Amount₹ |
| Creditors | 3,00,000 | Cash | 30,000 |
| 10% Loan from Friends | 1,00,000 | Stock | 4,70,000 |
| Capital (Balancing figure) | 4,50,000 | Debtors | 3,50,000 |
| 8,50,000 | 8,50,000 |
Statement of Profit and Loss as on March 31, 2017
| Particulars | Amount₹ |
| Capital on March 31, 2017 | 4,50,000 |
| Add: Drawings during the year (8,000 × 6 months) | 48,000 |
| Less: Capital on October 01, 2016 | (4,00,000) |
| Less: Additional capital introduced | (75,000) |
| Mrs. Anu earned profit during the year 2017 | 23,000 |
Q13. Mr. Arnav does not keep proper records of his business he provided following information, you are required to prepare a statement showing the profit or loss for the year.
| ₹ | |
| Capital at the beginning of the year | 15,00,000 |
| Bills receivable | 60,000 |
| Cash in hand | 80,000 |
| Furniture | 9,00,000 |
| Building | 10,00,000 |
| Creditors | 6,00,000 |
| Stock in trade | 2,00,000 |
| Further capital introduced | 3,20,000 |
| Drawings made during the period | 80,000 |
Ascertainment of statement of affairs at the beginning and at the end of the year and calculation of profit or loss.
The solution is as follows:
Books of Mr. ArnavStatement of Affairs at the end of year
| Liabilities | Amount₹ | Assets | Amount₹ |
| Creditors | 6,00,000 | Bills Receivable | 60,000 |
| Capital (Balance figure) | 16,40,000 | Cash in Hand | 80,000 |
| Furniture | 9,00,000 | ||
| Building | 10,00,000 | ||
| Stock in Trade | 2,00,000 | ||
| 22,40,000 | 22,40,000 |
Statement of Profit and Loss
| Particulars | Amount₹ |
| Capital at the end of the year | 16,40,000 |
| Add: Drawings during the year | 80,000 |
| Less: Capital at the beginning of the year | (15,00,000) |
| Less: Further capital introduced | (3,20,000) |
| Loss during the year | 1,00,000 |
Q14. Mr. Akshat keeps his books on incomplete records following information is given below:
| April 01, 2016 | March 31, 2017 | |
| ₹ | ₹ | |
| Cash in hand | 1,000 | 1,500 |
| Cash at bank | 15,000 | 10,000 |
| Stock | 1,00,000 | 95,000 |
| Debtors | 42,500 | 70,000 |
| Business premises | 75,000 | 1,35,000 |
| Furniture | 9,000 | 7,500 |
| Creditors | 66,000 | 87,000 |
| Bills payable | 44,000 | 58,000 |
During the year he withdrew ₹ 45,000 and introduced ₹ 25,000 as further capital in the business compute the profit or loss of the business.
The solution is as follows:
Books of Mr. AkshatStatement of Affairs as on April 01, 2016
| Liabilities | Amount₹ | Assets | Amount₹ |
| Creditors | 66,000 | Cash in Hand | 1,000 |
| Bills Payable | 44,000 | Cash at Bank | 15,000 |
| Capital (Balancing figure) | 1,32,500 | Stock | 1,00,000 |
| Debtors | 42,500 | ||
| Business Premises | 75,000 | ||
| Furniture | 9,000 | ||
| 2,42,500 | 2,42,500 |
Statement of Affairs as on March 31, 2017
| Liabilities | Amount₹ | Assets | Amount₹ |
| Creditors | 87,000 | Cash in Hand | 1,500 |
| Bills Payable | 58,000 | Cash at Bank | 10,000 |
| Capital (Balancing figure) | 1,74,000 | Stock | 95,000 |
| Debtors | 70,000 | ||
| Business Premises | 1,35,000 | ||
| Furniture | 7,500 | ||
| 3,19,000 | 3,19,000 |
Statement of Profit and Loss as on March 31, 2017
| Particulars | Amount₹ |
| Capital on March 31, 2017 | 1,74,000 |
| Add: Drawings made during the year | 45,000 |
| Less: Capital on April 01, 2016 | (1,32,500) |
| Less: Additional capital introduced | (25,000) |
| Profit earned by Mr. Akshat during the year 2016–2017 | 61,500 |
Q15. Gopal does not keep proper books of account. Following information is given below:
| April. 01, 2016 | March. 31, 2017 | |
| ₹ | ₹ | |
| Cash in hand | 18,000 | 12,000 |
| Cash at bank | 1,500 | 2,000 |
| Stock in trade | 80,000 | 90,000 |
| Sundry debtors | 36,000 | 60,000 |
| Sundry creditors | 60,000 | 40,000 |
| Loan | 10,000 | 8,000 |
| Office equipment | 25,000 | 30,000 |
| Land and Building | 30,000 | 20,000 |
| Furniture | 10,000 | 10,000 |
During the year he introduced ₹ 20,000 and withdrew ₹ 12,000 from the business. Prepare the statement of profit or loss on the basis of given information
The solution is as follows:
Books of GopalStatement of Affairs as on April 01, 2016
| Liabilities | Amount₹ | Assets | Amount₹ |
| Sundry Creditors | 60,000 | Cash in hand | 18,000 |
| Loan | 10,000 | Cash at bank | 1,500 |
| Stock in trade | 80,000 | ||
| Sundry Debtors | 36,000 | ||
| Office Equipments | 25,000 | ||
| Capital (Balancing figure) | 1,30,500 | Land and Buildings | 30,000 |
| Furniture | 10,000 | ||
| 2,00,500 | 2,00,500 |
Statement of Affairs as on March 31, 2017
| Liabilities | Amount₹ | Assets | Amount₹ |
| Sundry Creditors | 40,000 | Cash in Hand | 12,000 |
| Loan | 8,000 | Cash at Bank | 2,000 |
| Stock in Trade | 90,000 | ||
| Sundry Debtors | 60,000 | ||
| Office Equipments | 30,000 | ||
| Capital (Balancing figure) | 1,76,000 | Land and Buildings | 20,000 |
| Furniture | 10,000 | ||
| 2,24,000 | 2,24,000 |
Statement of Profit and Loss as on March 31, 2017
| Particulars | Amount₹ |
| Capital on March 31, 2017 | 1,76,000 |
| Add: Drawing made during 2017 | 12,000 |
| Less: Capital on April 01, 2016 | (1,30,500) |
| Less: Additional capital introduced | (20,000) |
| Profit during the year | 37,500 |
The profit earned is ₹37,500.
Q16. Mr. Muneesh maintains his books of accounts from incomplete records. His books provide the information:
| April. 01, 2016 | March. 31, 2017 | |
| ₹ | ₹ | |
| Cash | 1,200 | 1,600 |
| Bills receivable | – | 2,400 |
| Debtors | 16,800 | 27,200 |
| Stock | 22,400 | 24,400 |
| Investment | – | 8,000 |
| Furniture | 7,500 | 8,000 |
| Creditors | 14,000 | 15,200 |
He withdrew ₹ 300 per month for personal expenses. He sold his investment of ₹ 16,000 at 2% premium and introduced that amount into business.
Statement of Affairs as on April 01, 2016
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Creditors | 14,000 | Cash | 1,200 |
| Debtors | 16,800 | ||
| Stock | 22,400 | ||
| Furniture | 7,500 | ||
| Capital (Balancing figure) | 33,900 | ||
| 47,900 | 47,900 |
Statement of Affairs as on March 31, 2017
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Creditors | 15,200 | Cash | 1,600 |
| Bills Receivable | 2,400 | ||
| Debtors | 27,200 | ||
| Stock | 24,400 | ||
| Capital (Balancing figure) | 56,400 | Investment | 8,000 |
| Furniture | 8,000 | ||
| 71,600 | 71,600 |
Statement of Profit and Loss as on March 31, 2017
| Particulars | Amount₹ |
| Capital on March 31, 2017 | 56,400 |
| Add: Drawing made during the year (₹ 300 × 12) | 3,600 |
| Less: Capital on April 01, 2016 | (33,900) |
| Less: Additional Capital Introduced | (16,320) |
| Profit earned during the year 2017 | 9,780 |
Working Note:
| Additional Capital Introduced = 16,000 × 102 100 = 16,320 |
Q17. Mr. Girdhari Lal does not keep full double entry records. His balance as on April 01, 2016 is as.
| Liabilities | Amount₹ | Assets | Amount₹ |
| Sundry creditors | 35,000 | Cash in hand | 5,000 |
| Bills payable | 15,000 | Cash at bank | 20,000 |
| Capital | 40,000 | Sundry debtors | 18,000 |
| Stock | 22,000 | ||
| Furniture | 8,000 | ||
| Plant | 17,000 | ||
| 90,000 | 90,000 | ||
His position at the end of the year is:
| ₹ | |
| Cash in hand | 7,000 |
| Stock | 8,600 |
| Debtors | 23,800 |
| Furniture | 15,000 |
| Plant | 20,350 |
| Bills payable | 20,200 |
| Creditors | 15,000 |
He withdrew ₹ 500 per month out of which to spent ₹ 1,500 for business purpose. Prepare the statement of profit or loss.
The solution is as follows:
Books of Mr. Girdhari LalStatement of Affairs as on April 31, 2016
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Bills Payable | 20,200 | Cash in Hand | 7,000 |
| Creditors | 15,000 | Stock | 8,600 |
| Capital (Balancing figure) | 39,550 | Debtors | 23,800 |
| Furniture | 15,000 | ||
| Plant | 20,350 | ||
| 74,750 | 74,750 |
Statement of Profit and Loss
| Particulars | Amount₹ |
| Capital at the end of the year | 39,550 |
| Add: Drawings (₹ 500 × 12 months) | 6,000 |
| Less: Capital at the beginning of the year 2016 | (40,000) |
| Less: Additional capital introduced | (1,500) |
| Profit earned during the year 2017 | 4,050 |
Q18. Mr. Ashok does not keep his books properly. Following information is available from his books.
| April. 01, 2016 | March. 31, 2017 | |
| ₹ | ₹ | |
| Sundry creditors | 45,000 | 93,000 |
| Loan from wife | 66,000 | 57,000 |
| Sundry debtors | 22,500 | – |
| Land and Building | 89,600 | 90,000 |
| Cash in hand | 7,500 | 8,700 |
| Bank overdraft | 25,000 | – |
| Furniture | 1,300 | 1,300 |
| Stock | 34,000 | 25,000 |
During the year Mr. Ashok sold his private car for ₹ 50,000 and invested this amount into the business. He withdrew from the business ₹ 1,500 per month up to October 31, 2016 and thereafter ₹ 4,500 per month as drawings. You are required to prepare the statement of profit or loss and statement of affair as on March 31, 2017.
The solution is as follows:
Books of Mr. AshokStatement of Affairs as on April 01, 2016
| Liabilities | Amount₹ | Assets | Amount₹ |
| Sundry Creditors | 45,000 | Sundry Debtors | 22,500 |
| Loan from Wife | 66,000 | Land and Building | 89,600 |
| Bank Overdraft | 25,000 | Cash in Hand | 7,500 |
| Capital (Balancing figure) | 18,900 | Furniture | 1,300 |
| Stock | 34,000 | ||
| 1,54,900 | 1,54,900 |
Statement of Affairs as on March 31, 2017
| Liabilities | Amount₹ | Assets | Amount₹ |
| Sundry Creditors | 93,000 | Land and Building | 90,000 |
| Loan from Wife | 57,000 | Cash in Hand | 8,700 |
| Furniture | 1,300 | ||
| Stock | 25,000 | ||
| Capital (Balancing figure) | 25,000 | ||
| 1,50,000 | 1,50,000 |
Statement of Profit and Loss
| Particulars | Amount₹ |
| Capital on March 31, 2017 | (25,000) |
| Add: Drawings (₹ 1,500 × 7 months) + (4,500 × 5 months) | 33,000 |
| Less: Capital on April 01, 2016 | (18,900) |
| Less: Additional capital introduced (sale of car) | (50,000) |
| Loss during the year 2017 | (60,900) |
The loss during the year 2017 is ₹ 60,900
Q19. Krishna Kulkarni has not kept proper books of accounts prepare the statement of profit or loss for the year ending December 31, 2011 from the following information:
| April. 01, 2016 | March. 31, 2017 | |
| ₹ | ₹ | |
| Cash in hand | 10,000 | 36,000 |
| Debtors | 20,000 | 80,000 |
| Creditors | 10,000 | 46,000 |
| Bills receivable | 20,000 | 24,000 |
| Bills payable | 4,000 | 42,000 |
| Car | – | 80,000 |
| Stock | 40,000 | 30,000 |
| Furniture | 8,000 | 48,000 |
| Investment | 40,000 | 50,000 |
| Bank balance | 1,00,000 | 90,000 |
The following adjustments were made:
(a) Krishna withdrew cash ₹ 5,000 per month for private use.
(b) Depreciation @ 5% on car and furniture @10%.
(c) Outstanding Rent ₹ 6,000.
(d) Fresh Capital introduced during the year ₹ 30,000.
The solution is as follows:
Books of Krishna KulkarniStatement of Affairs as on April 01, 2016
| Liabilities | Amount₹ | Assets | Amount₹ |
| Creditors | 10,000 | Cash in Hand | 10,000 |
| Bills Payable | 4,000 | Debtors | 20,000 |
| Bills Receivable | 20,000 | ||
| Stock | 40,000 | ||
| Furniture | 8,000 | ||
| Investment | 40,000 | ||
| Capital (Balancing figure) | 2,24,000 | Cast at Bank | 1,00,000 |
| 2,38,000 | 2,38,000 |
Statement of Affairs as on March 31, 2017
Statement of Profit and Loss
| Particulars | Amount₹ |
| Capital on March 31, 2017 | 3,35,200 |
| Add: Drawings made during the year (₹ 5,000 × 12 months) | 60,000 |
| Less: Capital on April 01, 2016 | (2,24,000) |
| Less: Fresh capital introduced during the year | (30,000) |
| Profit earned during the year 2017 | 1,41,200 |
Q20. M/s Saniya Sports Equipment does not keep proper records. From the following information find out profit or loss and also prepare balance sheet for the year ended March 31, 2017
| April. 31, 2016 | March. 31, 2017 | |
| ₹ | ₹ | |
| Cash in hand | 6,000 | 24,000 |
| Bank overdraft | 30,000 | – |
| Stock | 50,000 | 80,000 |
| Sundry creditors | 26,000 | 40,000 |
| Sundry debtors | 60,000 | 1,40,000 |
| Bills payable | 6,000 | 12,000 |
| Furniture | 40,000 | 60,000 |
| Bills receivable | 8,000 | 28,000 |
| Machinery | 50,000 | 1,00,000 |
| Investment | 30,000 | 80,000 |
Drawing ₹ 10,000 p.m. for personal use, fresh capital introduce during the year ₹ 2, 00,000. A bad debts of ₹ 2,000 and a provision of 5% is to be made on debtors outstanding salary ₹ 2,400, prepaid insurance ₹ 700, depreciation charged on furniture and machine @ 10% p.a.
The solution is as follows:
Statement of Affairs as on April 31, 2016
| Liabilities | Amount₹ | Assets | Amount₹ |
| Bank Overdraft | 30,000 | Cash in Hand | 6,000 |
| Sundry Creditors | 26,000 | Stock | 50,000 |
| Bills Payable | 6,000 | Sundry Debtors | 60,000 |
| Furniture | 40,000 | ||
| Bills Receivable | 8,000 | ||
| Machinery | 50,000 | ||
| Capital (Balancing figure) | 1,82,000 | Investment | 30,000 |
| 2,44,000 | 2,44,000 |
Statement of Affairs as on March. 31, 2017
Statement of Profit and Loss
| Particulars | Amount₹ |
| Capital on March 31, 2017 | 4,33,400 |
| Add: Drawings made during the year (₹ 10,000 × 12) | 1,20,000 |
| Less: Capital on April 31, 2016 | (1,82,000) |
| Less: Fresh capital introduced during the year | (2,00,000) |
| Profit earned during the year 2017 | 1,71,400 |
Profit earned during the year 2017 is ₹1,71,400
Q21. From the following information calculate the amount to be paid to creditors:
| ₹ | |
| Sundry creditors as on March 31, 2017 | 1,80,425 |
| Discount received | 26,000 |
| Discount allowed | 24,000 |
| Return outwards | 37,200 |
| Return inward | 32,200 |
| Bills accepted | 1,99,000 |
| Bills endorsed to creditors | 26,000 |
| Creditors as on April 01, 2016 | 2,09,050 |
| Total purchases | 8,97,000 |
| Cash purchases | 1,40,000 |
| The solution is as follows: |
Creditors Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Discount Received | 26,000 | By Balance b/d | 1,80,425 |
| Return Outwards | 37,200 | Purchases – credit | |
| Bills accepted | 1,99,000 | (8,97,000 – 1,40,000) | 7,57,000 |
| B/R (endorsed to creditors) | 26,000 | ||
| Balance c/d | 2,09,050 | ||
| Cash/Bank (Balancing figure) | 4,40,175 | ||
| 9,37,425 | 9,37,425 |
Amount paid to Creditors is ₹ 4, 40,175.
Q22. Find out the credit purchases from the following:
| ₹ | |
| Balance of creditors April 01, 2016 | 45,000 |
| Balance of creditors March 31, 2017 | 36,000 |
| Cash paid to creditors | 1,80,000 |
| Cheque issued to creditors | 60,000 |
| Cash purchases | 75,000 |
| Discount received from creditors | 5,400 |
| Discount allowed | 5,000 |
| Bills payable given to creditors | 12,750 |
| Return outwards | 7,500 |
| Bills payable dishonoured | 3,000 |
| Bills receivable endorsed to creditors | 4,500 |
| Bills receivable endorsed to creditors dishonoured | 1,800 |
| Return inwards | 3,700 |
Creditors Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Cash | 1,80,000 | Balance b/d | 45,000 |
| Bank | 60,000 | B/P (dishonoured) | 3,000 |
| Discount Received | 5,400 | B/R (dishonoured) | 1,800 |
| B/P (accepted) | 12,750 | ||
| Return Outwards | 7,500 | Purchases – credit | |
| B/R (endorsed to creditors) | 4,500 | (Balancing figure) | 2,56,350 |
| Balance c/d | 36,000 | ||
| 3,06,150 | 3,06,150 |
Therefore the Credit Purchases are amounting to ₹ 2, 56,350
Q23. From the following information calculate total purchases.
| ₹ | |
| Creditors April. 01, 2016 | 30,000 |
| Creditors March. 31, 2017 | 20,000 |
| Opening balance of Bills payable | 25,000 |
| Closing balance of Bills payable | 35,000 |
| Cash paid to creditors | 1,51,000 |
| Bills discharged | 44,500 |
| Cash purchases | 1,29,000 |
| Return outwards | 6,000 |
Creditors Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Cash | 1,51,000 | Balance b/d | 30,000 |
| Return Outwards | 6,000 | Purchases – credit | 2,01,500 |
| Bills Payable (accepted) | 54,500 | (Balancing figure) | |
| Balance c/d | 20,000 | ||
| 2,31,500 | 2,31,500 |
Bills Payable Account
Dr Cr.
| Particulars | Amount ₹ | Particulars | Amount ₹ |
| Cash (Bills discharged) | 44,500 | Balance b/d | 25,000 |
| Creditors – (Bills Payableaccepted) (Balancing figure) | 54,500 | ||
| Balance c/d | 35,000 | ||
| 79,500 | 79,500 |
| Total Purchases | = Cash Purchases + Credit Purchases (as per Creditors Account) |
| = 1,29,000 + 2,01,500 | |
| = ₹ 3,30,500 |
Q24.The following information is given
| ₹ | |
| Opening creditors | 60,000 |
| Cash paid to creditors | 30,000 |
| Closing creditors | 36,000 |
| Returns Inward | 13,000 |
| Bill matured | 27,000 |
| Bill dishonoured | 8,000 |
| Purchases return | 12,000 |
| Discount allowed | 5,000 |
Calculate credit purchases during the year
The solution is as follows:
Creditors Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Cash | 30,000 | Balance b/d | 60,000 |
| Purchases Return | 12,000 | B/P (dishonoured) | 8,000 |
| B/P (accepted) (see note) | 27,000 | By Purchases – credit | 37,000 |
| Balance c/d | 36,000 | (Balancing figure) | |
| 1,05,000 | 1,05,000 |
Note: The return inwards and discount allowed belong to the Debtors account. So, it is not considered in the creditors account.
Q25. From the following, calculate the amount of bills accepted during the year.
₹
Bills payable as on April 01, 2016 1, 80,000
Bills payable as on March 31, 2017 2, 20,000
Bills payable dishonoured during the year 28,000
Bills payable honoured during the year 50,000
The solution is as follows:
Bills Payable Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Creditors (dishonoured) | 28,000 | Balance b/d | 1,80,000 |
| Cash/Bank | 50,000 | Creditors (acceptance) | 1,18,000 |
| Balance c/d | 2,20,000 | (Balancing figure) | |
| 2,98,000 | 2,98,000 |
Q26. Find out the amount of bills matured during the year on the basis of information given below;
| ₹ | |
| Bills payable dishonoured | 37,000 |
| Closing balance of Bills payable | 85,000 |
| Opening balance of Bills payable | 70,000 |
| Bills payable accepted | 90,000 |
| Cheque dishonoured | 23,000 |
The solution is as follows:
Bills Payable Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Creditors (Bill dishonoured) | 37,000 | Balance b/d | 70,000 |
| Cash/Bank (Balancing figure) | 38,000 | Creditors – acceptance | 90,000 |
| Balance c/d | 85,000 | (Balancing figure) | |
| 1,60,000 | 1,60,000 |
Therefore the Bill Payable matured during the year is ₹ 38,000.
Q27. Prepare the bills payable account from the following and find out missing figure if any:
| ₹ | |
| Bills accepted | 1,05,000 |
| Discount received | 17,000 |
| Purchases returns | 9,000 |
| Return inwards | 12,000 |
| Cash paid to accounts payable | 50,000 |
| Bills receivable endorsed to creditor | 45,000 |
| Bills dishonoured | 17,000 |
| Bad debts | 14,000 |
| Balance of accounts payable (closing) | 85,000 |
| Credit purchases | 2,15,000 |
The solution is as follows:
Bills Payable Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Creditors (Bills dishonoured) | 17,000 | Creditors (acceptance) | 1,05,000 |
| Cash/Bank (Balancing figure) | 88,000 | ||
| 1,05,000 | 1,05,000 |
Account Payable Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Discount Received | 17,000 | Purchases – Credit | 2,15,000 |
| Purchases Return | 9,000 | B/P (dishonoured) | 17,000 |
| Cash | 50,000 | ||
| B/R (endorsed) | 45,000 | Balance b/d | 79,000 |
| B/P (acceptance) | 1,05,000 | (Balancing figure) | |
| Balance c/d | 85,000 | ||
| 3,11,000 | 3,11,000 |
Bills payable discharged is ₹ 88,000 and the opening balance of creditors is ₹ 79,000.
Q28. Calculate the amount of bills receivable during the year.
| ₹ | |
| Opening balance of bills receivable | 75,000 |
| Bill dishonoured | 25,000 |
| Bills collected (honoured) | 1,30,000 |
| Bills receivable endorsed to creditors | 15,000 |
| Closing balance of bills receivable | 65,000 |
The solution is as follows:
Bills Payable Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Balance b/d | 75,000 | Debtors (B/R dishonoured) | 25,000 |
| Cash/Bank (honoured) | 1,30,000 | ||
| Creditors (endorsed) | 15,000 | ||
| Debtors (B/R received) | 1,60,000 | Balance c/d | 65,000 |
| (Balancing figure) | |||
| 2,35,000 | 2,35,000 |
Therefore, the Bills receivable received from Debtors ₹ 1, 60,000.
Q29. Calculate the amount of bills receivable dishonoured from the following information.
| ₹ | |
| Opening balance of bills receivable | 1,20,000 |
| Bills collected (honoured) | 1,85,000 |
| Bills receivable endorsed | 22,800 |
| Closing balance of bills receivable | 50,700 |
| Bills receivable received | 1,50,000 |
The solution is as follows:
Bills Payable Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Balance b/d | 1,20,000 | Cash/Bank (honoured) | 1,85,000 |
| Creditors (endorsed) | 22,800 | ||
| Balance c/d | 50,700 | ||
| Debtors (B/R received) | 1,50,000 | Debtors (dishonoured) | 11,500 |
| (Balancing figure) | (Balancing figure) | ||
| 2,70,000 | 2,70,000 |
So the Bills Receivable dishonoured is ₹ 11,500.
Q30. From the details given below, find out the credit sales and total sales.
| ₹ | |
| Opening debtors | 45,000 |
| Closing debtors | 56,000 |
| Discount allowed | 2,500 |
| Sales returns | 8,500 |
| Irrecoverable amount | 4,000 |
| Bills receivables received | 12,000 |
| Bills receivable dishonoured | 3,000 |
| Cheque dishonoured | 7,700 |
| Cash sales | 80,000 |
| Cash received from debtors | 2,30,000 |
| Cheque received from debtors | 25,000 |
The solution is as follows:
Debtors Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Balance b/d | 45,000 | Discount Allowed | 2,500 |
| B/R (dishonoured) | 3,000 | Sales Returns | 8,500 |
| Bank (cheque dishonoured) | 7,700 | Bad-debts (irrecoverable amount) | 4,000 |
| Sales – Credit | 2,82,300 | B/R (received) | 12,000 |
| (Balancing figure) | Cash | 2,30,000 | |
| Bank | 25,000 | ||
| Balance c/d | 56,000 | ||
| 3,38,000 | 3,38,000 |
Credit sales is ₹ 2, 82,300
| Total Sales | = Cash Sales + Credit Sales |
| = 80,000 + 2,82,300 | |
| = ₹ 3,62,300 |
Q31. From the following information, prepare the bills receivable account and total debtors account for the year ended March 31, 2017.
| ₹ | |
| Opening balance of debtors | 1,80,000 |
| Opening balance of bills receivable | 55,000 |
| Cash sales made during the year | 95,000 |
| Credit sales made during the year | 14,50,000 |
| Return inwards | 78,000 |
| Cash received from debtors | 10,25,000 |
| Discount allowed to debtors | 55,000 |
| Bills receivable endorsed to creditors | 60,000 |
| Cash received (bills matured) | 80,500 |
| Irrecoverable amount | 10,000 |
| Closing balance of bills receivable on March. 31, 2017 | 75,500 |
The solution is as follows:
Debtors Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Balance b/d | 1,80,000 | Return Inwards | 78,000 |
| Sales—Credit | 14,50,000 | Discount Allowed | 55,000 |
| Cash | 10,25,000 | ||
| Bad debt (irrecoverable amount) | 10,000 | ||
| B/R (received) | 1,61,000 | ||
| Balance c/d | 3,01,000 | ||
| (Balancing figure) | |||
| 16,30,000 | 16,30,000 |
Bills Receivable Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Balance b/d | 55,000 | Cash (Bills matured) | 80,500 |
| Creditors (endorsed) | 60,000 | ||
| Balance c/d | 75,500 | ||
| Debtors (received) (Balancing figure) | 1,61,000 | ||
| 2,16,000 | 2,16,000 |
The missing figure in the bills receivable account–B/R received from debtors’ is ₹ 1, 61,000 and the missing figure in the debtors account–closing balance is ₹ 3, 01,000.
Q32. Prepare the suitable accounts and find out the missing figure if any.
| ₹ | |
| Opening balance of debtors | 14,00,000 |
| Opening balance of bills receivable | 7,00,000 |
| Closing balance of bills receivable | 3,50,000 |
| Cheque dishonoured | 27,000 |
| Cash received from debtors | 10,75,000 |
| Cheque received and deposited in the bank | 8,25,000 |
| Discount allowed | 37,500 |
| Irrecoverable amount | 17,500 |
| Returns inwards | 28,000 |
| Bills receivable received from customers | 1,05,000 |
| Bills receivable matured | 2,80,000 |
| Bills discounted | 65,000 |
| Bills endorsed to creditors | 70,000 |
The solution is as follows:
Debtors Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Balance b/d | 14,00,000 | Cash | 10,75,000 |
| Bank (cheque dishonoured) | 27,000 | Bank | 8,25,000 |
| B/R (dishonoured) | 40,000 | Discount Allowed | 37,500 |
| Bad debt (irrecoverable amount) | 17,500 | ||
| Return Inwards | 28,000 | ||
| Sales—Credit (Balancing figure) | 6,21,000 | B/R (received) | 1,05,000 |
| 20,88,000 | 20,88,000 |
Bills Receivable Account
Dr Cr.
| Particulars | Amount₹ | Particulars | Amount₹ |
| Balance b/d | 7,00,000 | Cash (B/R matured) | 2,80,000 |
| Bank (Bill endorsed) | 65,000 | ||
| Creditors (endorsed) | 70,000 | ||
| Debtors (B/R received) | 1,05,000 | Balance c/d | 3,50,000 |
| Debtors (dishonoured) | 40,000 | ||
| (Balancing figure) | |||
| 8,05,000 | 8,05,000 |
As per solution, the missing figure in the bills receivable account is B/R dishonoured of ₹ 40,000. The missing figure in the debtors account is the credit sales of ₹ 6, 21,000.
Concepts covered in this chapter –
- Meaning of incomplete records
- Features of incomplete records
- Reasons of incompleteness and its limitations
- Ascertainment of profit and loss
- Preparing statement of affairs
- Difference between statement of affairs and balance sheet
- Preparing trading and profit and loss account and the balance sheet
- Ascertaining credit purchases
- Ascertainment of credit sales
- Ascertainment of missing information through summary of cost
FAQ:
A: Under single entry system adjusted capital means closing capital adjusted with drawings and additional capital called additional capital [Closing capital + Drawings — Additional Capital = Adjusted capital)
A: Balance Sheet Equation.
Assets = Capital + Liability.
A: Prof: Eric Kholar defines a Single Entry System as “a system of bookkeeping in which as a rule, only records of cash and persons are maintained; it is always in complete double entry, varying with circumstances”.
ಇತರೆ ವಿಷಯಗಳು:
ಪ್ರಥಮ ಪಿ.ಯು.ಸಿ ಕನ್ನಡ ಪಠ್ಯಪುಸ್ತಕ Pdf
1 ರಿಂದ 12 ನೇ ತರಗತಿ ಎಲ್ಲಾ ನೋಟ್ಸ್
1 ರಿಂದ 12ನೇ ತರಗತಿ ಎಲ್ಲಾ ಪಠ್ಯಪುಸ್ತಕಗಳ Pdf
1 ರಿಂದ 9ನೇ ತರಗತಿ ಕಲಿಕಾ ಚೇತರಿಕೆ
