Single Entry

**************** ******************* SINGLE ENTRY ACCOUNTS

OMTEX CLASSES “THE HOME OF TEXT”

Proprietory concerns 1. Rao commenced business on 1st April,06 with cash of Rs. 20,000. On 1st April Oct, 06; he introduced a further capital of Rs.5,000 .During the year he with drew Rs.400 p.m. for personal use. On 31st march, 07 his asset and liabilities were: Stock in trade 20,000 Debtor 15,000 Furniture 4,000 Cash at bank 3,000 Unpaid expense 1,000 Sundry creditors 8,000 Prepare closing statement of affairs and profit earned by Mr.Rao for the year ended 31/3/07. 2. The following info. Is available from Rajendra’s records: Particular 1.4.06 Creditor 5,000 Bank overdraft Bank balance 10,000 Plant and machinery 10,000 Furniture 4,000 Debtors 30,000 Stock 34,000

31.3.07 8,000 15,000 20,000 4,000 52,000 28,000

Ram had withdrawn Rs.5000 for personal expenses and Rs. 4000 for son’s marriage. Out of business funds, he had also purchased a residential building costing Rs.20000; which is not shown in the above balance. Additions to Machinery were made on 1/04/06. Dep at 10 %p.a. Should be provided on plant and machinery. Find out Ram’s net profit for the year ended 31st march 07. 3. On 01/04/06; Mr. Bannerjee commenced business with a capital of Rs.25,000. During the year 2006-07, he with drew for his personal use goods worth Rs.2,000 and cash Rs.3,000. He also gave a donation of Rs. 500 to shri Ramakrishna mission. He paid Life Insurance premium of Rs.1000. During the year, he received a gift of Rs.5000 from his father by cheque which was deposited in the bank account of the business. On 31/3/07; his position was as under: Particulars RS Machinery 20,000 Furniture 2,000 Stock 5,000 Debtors 8,000 Balance at bank 1,500 Prepaid insurance 200 Payable to creditors 3,000 Liabilities for expenses 700 Find out the profit earned by him after providing for depreciation at %10 on plant and Machinery and furniture and Rs.400 as reserve for Doubtful Debt. Also prepare statement of affair as on 31.03.07

1

**************** ******************* SINGLE ENTRY ACCOUNTS

OMTEX CLASSES “THE HOME OF TEXT”

4. Ash keeps her books on single entry & following information is disclosed. Particulars 31.3.06 31.3.07 Cash 18,000 27,000 Stock 15,000 18,750 Debtors 30,000 45,000 Furniture 7,500 7,500 Sundry creditors 26,250 31,500 Bills payable 9,000 Loan from ‘y’ 3,000 Investments 15,000 Miss Ash transferred Rs150 each month during first half year and Rs.100 each month for the remaining period from her business to her private banking account by way of drawing, and took away Rs.350 worth of goods for private use. She sold her private car for Rs.3, 500 and proceeds were utilised for business. Furniture to be depreciated by 10% and Reserve for Doubtful debts to be maintained at 5% on debtors. Prepare opening and closing statement of affairs and also profit and loss statement for the year ending 31/03/07. 5. Mr.Mukesh maintain single entry books of accounts. From the following details, determine profit for the year and statement of affairs at the end of year: Rs.1000 (cost) furniture was sold for Rs.5,000 on 1st April,06 ; 10% depreciation is to be charged on furniture . Mr.Mukesh has drawn Rs.1000 per month and Rs.2,000 was invested in 2006.

Particulars 1.04.06 31.3.07 Stock 40,000 60,000 Debtors 30,000 40,000 Cash 2,000 1,000 Bank 10,000 5,000( O. D ) Creditors 15,000 25,000 Outstanding expenses 5,000 8,000 Furniture(cost) 3,000 2,000 Bank balance on 1st April 06 is as per cash book , but the bank overdraft on 31.03.07 is as per bank statement . Rs2,000 cheques drawn in March 07 have not been encashed with in the year . Provide interest on Drawing @ 10%p.a. 6. Mr. Ganesh keeps his books by single entry method. His financial position on 1.01.03 and 1.1.04 was as under. Particulars 1.1.04 31.12.04 Cash 10,000 16,000 Bank 20,000 36,000 Stock 16,000 24,000

2

**************** ******************* SINGLE ENTRY ACCOUNTS

OMTEX CLASSES “THE HOME OF TEXT”

Debtors 24,000 30,000 Creditors 15,000 18,000 Plant and machinery 60,000 90,000 Furniture and fitting 18,000 18,000 During the year Mr.Ganesh withdrew Rs.8,000 for his private purpose and he had used 2,000 worth of stock also for his private purpose. On 1.10.03 he sold some of his house hold furniture for Rs.2,000 and paid this amount into his BankA/c of business. Prepare a statement of profit & loss for the year ended 31.12.04 and a statement of affairs after taking into consideration the following: 1. Provide interest on capital @ 5% p.a on opening balance and Interest on drawing ( only on cash drawings) @10% p.a. (on an average of 6 months) 2. Depreciate plant and machinery @10 %(assuming addition were made on 1.10.04) and furniture at 5% 3. stock on 31.12.04 was overvalued by Rs.2,000 4. Write off bad debts Rs.2,000 and provide Reserve for Doubtful debts at 7.5% on debtors 7. Mohan keeps his books under single entry system Prepare: Statement of affair as on 31.12.00 & 31.12.01 Statement of profit/loss for the year ending 31.12.01. He gives the following information: Particulars 31.12.01 31.12.00 Bank balance 4,500 Cr. 1,000 Dr Stock 12,000 15,000 Debtors 9,300 10,400 Furniture 9,600 9,600 Creditors 10,900 14,300 Loose tool 2,700 2,700 Outstanding salary 1,000 1,500 Prepaid insurance 300 200 Add information: 1.He has withdrawn from business Rs 2,500 of which he spent Rs2,000 for investing in securities in the name of the business. 2. Provide depreciation at 20% on loose tools and 7% on furniture. 8. Premjeet a trader keeps his books by the single entry Method. His financial position on 1st April 06 and 31.3.07 were as follows: Particulars 1.04.06 31.03.07 Cash in hand 1,500 1,600 Bank balance 1,200(Dr.) 1,800(Cr.) Stock in trade 4,000 4,650 Debtors 3,400 3,800 Creditors 2,400 3,600

3

**************** ******************* SINGLE ENTRY ACCOUNTS

OMTEX CLASSES “THE HOME OF TEXT”

Plant and machinery 6,000 8,000 Furniture 1,200 1,600 During the year, Sri Premjeet had withdrawn Rs.75 per month for his household use. From the above information ascertain his profit or loss for the year ended and also give his statement of affairs as on 31.03.07 after taking into account the following further information: 1. Deprecatie plant and machinery by 15% and furniture by 121/2% p.a(assume the addition on 30th September,2006) 2. Of the debtors Rs100 are bad and to be written off. 3. Create a reserve for Discount on Debtors at 2% and a reserve for Doubtful debts at 5%. 4. Allow interest on capital at 5% and charge interest on Drawing at 6%p.a 9. Mr.Gopal maintained his books on single entry. The following statement of affairs had been prepared as on 31.03.06 Liabilities Amt Asset Amt Capital account 28,000 Leasehold land 2,075 Sundry creditors 3,170 Plant and Machinery 4,940 Bill payable 2,150 Stock in trade 9,673 Book debts 15,550 Cash in hand 1,082 33,320 33,320 On 31.03.07 it was learnt that he had introduced further capital of Rs1,000 on 1st july,06 and he drawn Rs1,580 on various dates during the year. It was also ascertained that the proprietor had taken Rs.75 worth of goods for his own use. Statement prepared on the same date disclosed that book debts were Rs.14,640, Creditors were Rs.2,309 and Bills payable were Rs.1,775. The stock was valued at Rs.11,417 and cash in hand amounted Rs.917 on the same date. Prepare: 1. Statement of profit for the year 06-07 2. Statement of affairs as on 31.03.07 taking in to consideration the following: i) 5% Reserve to be created on Book debts. ii) 5% Depreciation to be written off on plant and machinery. iii) Rs.125 to be written off the lease. iv) Interest at 5% p.a to be provide on the capital.

4

**************** ******************* SINGLE ENTRY ACCOUNTS

OMTEX CLASSES “THE HOME OF TEXT”

5