NCERT Solutions for Class 11 Accountancy: Financial Accounting Part - II chapter 5 Accounts from Incomplete Records

Q:

What are the possible reasons for keeping incomplete records?

A:

Reasons for incompleteness are:

This system can be adopted by people who do not have the proper knowledge of accounting principles.
It is an inexpensive mode of maintaining records. Cost involved is low as specialised accountants are not appointed by the organisations.
Time consumed in maintaining records is less as only a few books are maintained.
It is a convenient mode of maintaining records as the owner may record only important transactions according to the need of the business.

Q:

State the meaning of incomplete records?

A:

Accounting records that are not maintained according to Double entry system are known as Accounts from Incomplete Records or Single Entry System of Accounting.

Q:

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

A:

Statement of Profit or Loss For the year ended on 31^st March, 2017
Particulars	₹
Capital at the end of the year	4,00,000
(+) Drawings during the year	60,000
	4,60,000
(-) fresh Capital introduced during the year	1,00,000
	3,60,000
(-) Profit of the Current year	80,000
Capital at the Beginning of the Year	2,80,000

Note:

As per the solution, the opening capital should be of ₹2,80,000; but, the answer given in the book is ₹2,60,000.

Q:

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.

A:

Statement of Profit or Loss For the year ended
Particulars	₹
Capital at the end of the year	5,00,000
(+) Drawings during the year	3,75,000
	8,75,000
(-) Additional Capital introduced	50,000
	8,25,000
(-) Capital at the beginning of the year	7,50,000
Profit made during the year (b/f)	75,000

Q:

Explain how the following may be ascertained from incomplete records.

Opening capital and closing capital.

Credit sales and credit purchases.

Payments to creditors and collection from debtors.

Closing balance of cash.

A:

a) Opening capital can be ascertained by preparing a Statement of Affairs at the beginning of the accounting period.

Closing capital can be ascertained by preparing a Statement of Affairs at the end of the accounting period.

The difference between the opening and closing capital represents its increase or decrease which is to be adjusted for withdrawals made by the owner or any fresh capital introduced by him during the accounting period in order to arrive at the amount of profit or loss made during the period.

b) Credit purchases can be ascertained by preparing the total creditors account.

Credit sales can be ascertained from total debtors account, the sales returns should be deducted from gross credit sales to get net credit sales.

c) Payment to creditors and collection from debtors can be ascertained by preparing total creditors and total debtors account

d) Closing balance of cash can be ascertained from the cash book summary.

Q:

What practical difficulties are encountered by a trader due to incompleteness of accounting records?

A:

Limitation of Incomplete records are as follows:

As double entry system is not followed, a trial balance cannot be prepared and accuracy of accounts cannot be ensured.
Correct ascertainment and evaluation of financial result of business operations cannot be made.
Analysis of profitability, liquidity and solvency of the business cannot be done. This may cause a problem in raising funds from outsiders and planning future business activities.
The owners face great difficulty in filing an insurance claim with an insurance company in case of loss of inventory by fire or theft.

Q:

Distinguish between statement of affairs and balance sheet.

A:

Comparison between Statement of Affairs and Balance Sheet:

Basis	Statement of affairs	Balance sheet
Reliability	It is less reliable as it is prepared from incomplete records.	It is more reliable as it is prepared from double entry records.
Objective	The objective of preparing statement of affairs is to estimate the balance in capital account on a particular date.	The objective of preparing balance sheet is to show the true financial position of an entity on a particular date.
Omission	Omission of assets or liabilities cannot be discovered easily.	Omissions of assets or liabilities can be discovered easily and can be traced from accounting records.
Accounts and Information	In view of incomplete accounts, its preparation is based on limited accounts, calculations, estimates and other information.	This is prepared exclusively figures, Balance Sheet is regarded as a reliable statement.

Q:

From the following information, prepare the bills receivable account and total debtors account for the year ended March 31, 2017.

Particulars ₹

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

A:

Debtor’s Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Balance b/d	1,80,000		By Return Inwards	78,000
	To Sales (Credit)	14,50,000		By Discount allowed	55,000
				By Cash	10,25,000
				By Bad debts	10,000
				By Bills Receivable (Acceptance received)	1,61,000
				By Balance c/d (Bal. figure)	3,01,000
		16,30,000			16,30,000

Bills Receivable Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Balance b/d	55,000		By Cash/Bank	80,500
	To Debtors (Acceptance received) b/f	1,61,000		By Creditors (Endorsed)	60,000
				By Balance c/d	75,500
		2,16,000			2,16,000

Q:

The following information is given:

Particulars ₹

Opening creditors 60,000

Cash paid to creditors 30,000

Closing creditors 36,000

Returns inward 13,000

Bills matured 27,000

Bill dishonoured 8,000

Purchases return 12,000

Discount allowed 5,000

Calculate credit purchases during the year.

A:

Creditors Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Cash A/c	30,000		By Balance b/d	60,000
	To Purchase Return A/c	12,000		By Bills Payable (dishonoured)	8,000
	To Bills Payable (Accepted)	27,000		By Purchase (Credit) (Bal. figure)	37,000
	To Balance c/d	36,000

		1,05,000			1,05,000

Q:

Mrs. Anu started firm with a capital of ₹4,00,000 on 1^st 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:

Particulars ₹

Cash 30,000

Stock 4,70,000

Debtors 3,50,000

Creditors 3,00,000

She withdrew ₹8,000 per month for the year. Calculate profit or loss for the year and show your working clearly.

A:

Statement of Affairs As on 31^st March, 2017
Liabilities	₹	Assets	₹
Creditors	3,00,000	Cash	30,000
Loans from friends	1,00,000	Stock	4,70,000
Capital (bal. figure)	4,50,000	Debtors	3,50,000

	8,50,000		8,50,000

Statement of Profit or Loss For the year ended on 31^st March, 2017
Particulars	₹
Capital at the end of the year	4,50,000
(+) Drawings during the year (₹8000 x 6)	48,000
	4,98,000
(-) Additional Capital introduced	75,000
	4,23,000
(-) Capital at the Beginning of the Year	4,00,000
Profit made during the year 2017	23,000

Q:

Following information is given below: calculate the closing capital:

Particulars 01/04/2016 31/03/2017

₹ ₹

Creditors 5,000 30,000

Bills Payable 10,000 _

Loan _ 50,000

Bills Receivable 30,000 50,000

Stock 5,000 30,000

Cash 2,000 20,000

A:

Statement of Affairs As on 1^st April, 2016
Liabilities	₹	Assets	₹
Creditors	5,000	Bills Receivable	30,000
Bills payable	10,000	Stock	5,000
Capital (b/f)	22,000	Cash	2,000

	37,000		37,000

Statement of Affairs As on 31^st March, 2017
Liabilities	₹	Assets	₹
Creditors	30,000	Bills Receivable	50,000
Loan	50,000	Stock	30,000
Capital (b/f)	20,000	Cash	20,000

	1,00,000		1,00,000

Statement of Profit or Loss For the year ended on 31^st March, 2017
Particulars	₹
Capital at the end of the year	20,000
(-) Capital at the beginning of the year	22,000
Loss during the year	2,000

Q:

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 & 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.

A:

Statement of Affairs As on 31^st March, 2017
Liabilities	₹	Assets	₹
Loan from Susheel	45,000	Cash	99,000
Capital		Bills Receivable	75,000
(Balancing Figure)	4,07,000	Plant	48,000
		Land & Building	1,80,000
		Furniture	50,000
	4,52,000		4,52,000

Statement of Profit or Loss For the year ended on 31^st March, 2017
Particulars	₹
Capital at the end of the year	4,07,000
(+) Drawings during the year (₹8,000 x 12)	96,000
	5,03,000
(-) Capital at the beginning of the year	4,50,000
Profit made during the year	53,000

Q:

‘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.

A:

The main purpose of any business is to earn profit. To prepare proper trading and profit and loss account and the balance sheet one needs complete information regarding expenses, incomes, assets and liabilities.

This can be done in two ways:

Preparing the Statement of Affairs as at the beginning and as at the end of the accounting period called statement of affairs or net worth method.
Preparing Trading and profit and loss account and the Balance Sheet by putting the accounting records in proper order called conversion method.

Statement of Affairs Method:

A statement of affairs is a statement of assets and liabilities. Under this method, statements of assets and liabilities as at the beginning and at the end of the relevant accounting period are prepared to ascertain the amount of change in the capital during the period.

Once the amount of capital, both at the beginning and at the end is computed with the help of statement of affairs, a statement of profit and loss is prepared to ascertain the exact amount of profit or loss made during the year.

Conversion method:

Converting the accounts from single entry to double entry is called as conversion method.

The steps involved in converting single entry into double entry are:

Prepare cash and bank summary.
Prepare Total Debtors Account.
Prepare Bills Receivable Account.
Prepare Total Creditors Account.
Prepare Bills Payable Account.
Prepare Stock Account.
Prepare Revenue Expenses Account.
Prepare Revenue Income Account.
Prepare Fixed Asset Account.
Prepare Opening Statement of Affairs.
Then prepare trading account, profit and loss account and balance sheet from the various information given.

Q:

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?

A:

A statement of affairs is a statement of assets and liabilities. Under this method, statements of assets and liabilities as at the beginning and at the end of the relevant accounting period are prepared to ascertain the amount of change in the capital during the period.

Statement of affairs shows assets on one side and the liabilities on the other just as in case of a balance sheet. The difference between the totals of the two sides is the capital.

Once the amount of capital, both at the beginning and at the end is computed with the help of statement of affairs, a statement of profit and loss is prepared to ascertain the exact amount of profit or loss made during the year.

The difference between the opening and closing capital represents its increase or decrease which is to be adjusted for withdrawals made by the owner or any fresh capital introduced by him during the accounting period.

If the net result of above computation is a positive amount, it represents the profit earned during the year. In case the net result is a negative amount, it represents the loss during the year.

Profit or Loss = Capital at end – Capital at beginning + Drawings during the year – Capital introduced during the year.

Q:

From the following information ascertain the opening balance of sundry debtors and closing balance of sundry creditors:

Particulars ₹

Opening stock 30,000

Closing stock 25,000

Opening creditors 50,000

Closing debtors 75,000

Discount allowed by creditors 1,500

Discount allowed to customers 2,500

Cash paid to creditors 1,35,000

Bills payable accepted during the period 30,000

Bills receivable received during the period 75,000

Cash received from customers 2,20,000

Bills receivable dishonored 3,500

Purchases 2,95,000

The rate of gross profit is 25% on selling price and out of the total sales ₹85,000 was for cash sales.

A:

Debtor’s Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Balance b/d	54,000		By Discount Allowed	2,500
	To Bills Receivable (dishonoured)	3,500		By Bills Receivable (Received)	75,000
	To Sales Credit	3,15,000		By Cash	2,20,000
				By Balance c/d	75,000
		3,72,500			3,72,500

Creditor’s Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Discount Received	1,500		By Balance b/d	50,000
	To Cash A/c	1,35,000		By Purchases (Credit)	2,95,000
	To Bills Receivable (Acceptance)	30,000
	To Balance c/d (Bal. figure)	1,78,500
		3,45,000			3,45,000

Working Note:

Computation of Credit Sales:

Sales = Cost of goods sold + Gross Profit

Cost of goods sold = Opening stock + Purchases – Closing stock

= ₹30,000 + ₹2,95,000 – ₹25,000

= ₹3,00,000

When the cost of goods sold is ₹3,00,000.

Sales will be = ₹3,00,000 + 25% Gross profit

\begin{array}{l} Gross profit is calculated on sales hence to calculate it \\ on cost of goods sold, the formula will be: \\ = Cost of goods sold x \frac{25}{100 - 25} \\ = ₹3,00,000 x \frac{25}{75} \\ = ₹1,00,000 \\ Total Sales = ₹3,00,000 + ₹1,00,000 \\ = ₹4,00,000 \end{array}

As we know that cash sales is ₹85,000. So credit sales will be: = ₹4,00,000 – ₹85,000 = ₹3,15,000

Q:

Mrs. Bhavana keeps her books by Single Entry System. You are required to prepare final accounts of her business for the year ended March 31, 2017. Her records relating to cash receipts and cash payments for the above period showed the following particulars:

Dr. Summary of Cash Cr.

Receipts ₹ Payments ₹

Opening balance of cash 12,000 Paid to creditors 53,000

Further capital 20,000 Business expenses 12,000

Received from debtors 1,20,000 Wages paid 30,000

Bhavana’s drawings 15,000

Balance at bank on Mar 31, 2017 35,000

Cash in hand 7,000

1,52,000 1,52,000

The following information is also available:

Particulars 01/04/2016 31/03/2017

Debtors 55,000 85,000

Creditors 22,000 29,000

Stock 35,000 70,000

Plant 10,00,000 1,00,000

Machinery 50,000 50,000

Land & Buildings 2,50,000 2,50,000

Investment 20,000 20,000

All her sales and purchases were on credit. Provide depreciation on plant and building by 10% and machinery by 5%. Make a provision for bad debts by 5%.

A:

Debtor’s Account
Dt.	Particulars	₹	Dt.	Particulars	₹
2016			2017
Apr 1	To Balance b/d	55,000		By Cash A/c	1,20,000
	To Sales (Credit)	1,50,000	Mar 31	By Balance b/d	85,000
		2,05,000			2,05,000

Creditor’s Account
Dt.	Particulars	₹	Dt.	Particulars	₹
2017			2016
	To Cash A/c	53,000	Apr 1	By Balance b/d	22,000
Mar 31	To Balance c/d	29,000		By Purchase (Credit) b/f	60,000
		82,000			82,000

Statement of Affairs As on 31^st March, 2017
Liabilities	₹	Assets	₹
Creditors	22,000	Debtors	55,000
Capital at beginning	5,00,000	Stock	35,000
(Bal. Figure)		Plant	1,00,000
		Machinery	50,000
		Land & Building	2,50,000
		Investment	20,000
		Cash	12,000
	5,22,000		5,22,000

Trading & Profit & Loss Account As on 31^st March, 2017
Particulars		₹	Particulars	₹
To Opening Stock		35,000	By Sales	1,50,000
To purchases		60,000	By Closing Stock	70,000
To Wages		30,000
To Gross Profit c/d (Bal. figure)		95,000
		2,20,000		2,20,000
To Business Expenses		12,000	By Gross Profit b/d	95,000
To Provision for Doubtful Debts		4,250
To Depreciation
On Plant	10,000
On Building	25,000
On Machinery	2,500	37,500
To Net Profit (b/f)		41,250

		95,000		95,000

Balance Sheet As on 31^st March, 2017
Liabilities		₹	Assets		₹
Capital	5,00,000		Cash in Hand		7,000
(+) Net profit	41,250		Cash at Bank		35,000
	5,41,250		Investment		20,000
(+) Further Capital	20,000		Debtors	85,000
	5,61,250		(-) Provision@5%	4,250	80,750
(-)Drawings	15,000	5,46,250	Plant	1,00,000
Creditors		29,000	(-) Dep. @10%	10,000	90,000
			Machinery	50,000
			(-) Dep @5%	2,500	47,500
			Land & Building	2,50,000
			(-) Dep. @10%	25,000	2,25,000
			Closing Stock		70,000
		5,75,250			5,75,250

Q:

Prepare the suitable accounts and find out the missing figure if any:

Particulars ₹

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

A:

Debtor’s Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Balance b/d	14,00,000		By Cash	10,75,000
	To Bank (Cheque dishonoured)	27,000		By Bank (Cheque)	8,25,000
	To Bills Receivable (dishonoured)	40,000		By Bad debts	17,500
	To Sales (Credit) b/f	6,21,000		By Return Inwards	28,000
				By Discount allowed	37,500
				By Bills receivable	1,05,000
		20,88,000			20,88,000

Bills Receivable Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Balance b/d	7,00,000		By Cash (B/R matured)	2,80,000
	To Debtors (Bills Receivable)	1,05,000		By Bank (Bill endorsed)	65,000
				By Creditors (endorsed)	70,000
				By Debtors (dishonoured) b/f	40,000
				By Balance c/d	3,50,000
		8,05,000			8,05,000

Note: As per solution, the missing figure in the bills receivable account is B/R dishonoured of ₹40,000. The credit sales is ₹6,21,000, however, the NCERT book shows a credit sales ₹5,16,000.

Q:

From the details given below. Find out the credit sales and total sales.

Particulars ₹

Opening debtors 45,000

Closing debtors 56,000

Discount allowed 2,500

Sales returns 8,500

Irrecoverable amount 4,000

Bills receivable 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

A:

Debtor’s Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Balance b/d	45,000		By Discount Allowed	2,500
	To Bills Receivable (dishonoured)	3,000		By Sales Return	8,500
	To Bank (Cheque dishonoured)	7,700		By Bad debts	4,000
	To Sales (b/f)	2,82,300		By Bills Receivable	12,000
				By Cash	2,30,000
				By Bank (Cheque Received)	25,000
				By Balance c/d	56,000
		3,38,000			3,38,000

Total Sales = Cash Sales + Credit Sales

Total Sales = ₹80,000 + ₹2,82,300 = ₹3,62,300

Q:

Calculate the amount of bills receivable dishonoured from the following information:

Particulars ₹

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

A:

Bills Receivable Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Balance b/d	1,20,000		By Cash/Bank (Bills honoured)	1,85,000
	To Debtors (Bills Received)	1,50,000		By Bills Endorsed (Creditors)	22,800
				By Debtors (Bill dishonored) b/f	11,500
				By Balance c/d	50,700
		2,70,000			2,70,000

The amount of Bills Receivable dishonoured is ₹11,500.

Q:

Calculate the amount of bills receivable during the year.

Particulars ₹

Opening balance of bills receivable 75,000

Bills dishonoured 25,000

Bills collected (honoured) 1,30,000

Bills receivable endorsed to creditors 15,000

Closing balance of bills receivable 65,000

A:

Bills Receivable Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Balance b/d	75,000		By Debtors (Bill dishonoured)	25,000
	To Debtors (Bills Receivable Acceptance) b/f	1.60,000		By Cash/Bank (Bills honoured)	1,30,000
				By Bills Endorsed	15,000
				By Balance c/d	65,000
		2,35,000			2,35,000

Bills receivable received from debtors is ₹1,60,000.

Q:

Prepare the bills payable account from the following and find out missing figure if any:

Particulars ₹

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

A:

Bills Payable Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Creditors (Bills Dishonored)	17,000		By Creditors (Acceptance)	1,05,000
	To Cash/ Bank (Bal. figure)	88,000
		1,05,000			1,05,000

Creditors Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Discount Received	17,000		By Purchases (Credit)	2,15,000
	To purchase Return	9,000		By Bills Payable (Dishonored)	17,000
	To Cash A/c	50,000		By Balance b/d (Bal. figure)	79,000
	To Bills Receivable	45,000
	To Bills Payable (Acceptance)	1,05,000
	To Balance c/d	85,000
		3,11,000			3,11,000

Opening Balance of creditors is ₹79,000

Q:

Find out the amount of bills matured during the year on the basis of information given below:

Particulars ₹

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

A:

Bills Payable Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Creditors (Bills Dishonoured)	37,000		By Balance b/d	70,000
	To Balance c/d	85,000		By Creditors (Bills Payable)	90,000
	To Cash/Bank (Bal. figure)	38,000
		1,60,000			1,60,000

The amount of bills matured during the year is ₹38,000.

Q:

From the following calculate the amount of bills accepted during the year.

Particulars ₹

Bills payable as on Apr 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

A:

Bills Payable Account
Dt.	Particulars	₹	Dt.	Particulars	₹
			2016
	To Creditors		Apr 1	By Balance b/d	1,80,000
	(Bills Payable Dishonoured)	28,000		By Creditors
	To Cash Bank			(Bills Payable)	1,18,000
	(Bills Payable paid)	50,000		(Bal. Figure)

	To Balance c/d	2,20,000
		2,98,000			2,98,000

Bills accepted during the year is ₹1,18,000.

Q:

From the following information calculate total purchases:

Particulars ₹

Creditors Apr 01, 2016 30,000

Creditors Mar 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

A:

Sundry Creditors Account
Dt.	Particulars	₹	Dt.	Particulars	₹
			2016
	To Cash	1,51,000	Apr 1	By Balance b/d	30,000
	To Bills Payable	54,500		By Purchase (net) (b/f)	2,01,500
	To Return Outwards	6,000
	To Balance c/d	20,000
		2,31,500			2,31,500

Bills Payable Account
Dt.	Particulars	₹	Dt.	Particulars	₹
2017
	To Cash	44,500		By Balance b/d	25,000
Mar 31	To Balance c/d	35,000		By Creditors	54,500
				(Bills Payable)
				(Bal. Figure)
		79,500			79,500

Total Purchases = Cash Purchase + Credit Purchases

Hence, Total Purchases will be:

₹1,29,000 + ₹2,01,500 = ₹ 3,30,500

Q:

Find out the credit purchases from the following:

Particulars ₹

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

A:

Sundry Creditors Account
Dt.	Particulars	₹	Dt.	Particulars	₹
	To Cash	1,80,000	2016
	To Bank (Cheque)	60,000	Apr 1	By Balance b/d	45,000
	To Discount received	5,400		By Bills Payable (Dishonoured)	3,000
	To Bills Payable (Accepted)	12,750		By Bills Receivable (Endorsed Dishonoured)	1,800
	To Return Outward	7,500		By Purchase (Credit B/f)	2,56,350
	To Bills Receivable (Endorsed to creditors)	4,500
	To balance c/d	36,000
		3,06,150			3,06,150

Credit purchases for the year 2017 is ₹2,56,350.

Q:

From the following information calculate the amount to be paid to creditors:

Particulars ₹

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

A:

Sundry Creditors Account
Dt.	Particulars	₹	Dt.	Particulars	₹
			2017
	To Discount Received	26,000	Mar 31	By Balance b/d	1,80,425
	To Return Outwards	37,200		By Purchase (Credit)	7,57,000
	To Bills accepted	1,99,000
	To Bills endorsed to creditors (b/r)	26,000
	To Creditors as on April 01, 2016	2,09,050
	To Balance c/d	4,40,175
		9,37,425			9,37,425

Working Note:

Credit purchase = Total purchase – Cash purchase

Credit purchase = (₹8,97,000 – ₹1,40,000) = ₹7,57,000

Amount paid to Creditors = ₹ 4,40,175

Q:

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:

Particulars 31/03/2016 31/03/2017

₹ ₹

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 per month 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.

A:

Statement of Affairs As on 31^st March, 2016
Liabilities	₹	Assets	₹
Bank Overdraft	30,000	Cash in hand	6,000
Sundry Creditors	26,000	Stock	50,000
Bills Payable	6,000	Sundry Debtors	60,000
Capital (Bal. figure)	1,82,000	Furniture	40,000
		Bills Receivables	8,000
		Machinery	50,000
		Investment	30,000
	2,44,000		2,44,000

Statement of Affairs As on 31^st March, 2017
Liabilities	₹	Assets		₹
Sundry Creditors	40,000	Cash in Hand		24,000
Bills Payable	12,000	Stock		80,000
Outstanding Salary	2,400	Debtors	1,40,000
Capital (Bal. figure)	4,33,400	(-) Bad debts	2,000
			1,38,000
		(-) Prov. @5%	6,900	1,31,100
		Furniture	60,000
		(-) Dep.	6,000	54,000
		Machinery	1,00,000
		(-) Dep@10%	10,000	90,000
		Bills Receivables		28,000
		Investment		80,000
		Prepaid Insurance		700
	4,87,800			4,87,800

Statement of Profit or Loss For the year 31^st March, 2017
Particulars	₹
Capital at the end of the year 31/03/2017	4,33,400
(+) Drawings during the year (₹10,000 x 12 months)	1,20,000
	5,53,400
(-) Fresh capital introduced	(2,00,000)
	3,53,400
(-) Capital at the Beginning of the Year 01/04/2016	(1,82,000)
Profit earned during the year	1,71,400

Note: As per the solution, the statement of affair with adjustment is ₹4,87,800; while, as per the book, the adjustment is ₹4,87,700.

Q:

Krishna Kulkarni has not kept proper books of accounts prepare the statement of profit or loss for the year ending March 31, 2017 from the following information.

Particulars 01/04/2016 31/03/2017

₹ ₹

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:

Krishna withdrew cash ₹5,000 per month for private use.

Depreciation @ 5% on car and furniture @ 10%.

Outstanding Rent ₹6,000.

Fresh Capital introduced during the year ₹30,000.

A:

Statement of Affairs As on 1^st April, 2016
Liabilities	₹	Assets	₹
Creditors	10,000	Cash in hand	10,000
Bills Payable	4,000	Debtors	20,000
Capital (Bal. figure)	2,24,000	Bills Receivable	20,000
		Stock	40,000
		Furniture	8,000
		Investment	40,000
		Cash at Bank	1,00,000
	2,38,000		2,38,000

Statement of Affairs As on 31^st March, 2017
Liabilities	₹	Assets		₹
Creditors	46,000	Cash in Hand		36,000
Bills Payable	42,000	Debtors		80,000
Outstanding Expenses	6,000	Bills Receivable		24,000
Capital (Bal. figure)	3,35,200	Car	80,000
		(-) Dep. @5%	4,000	76,000
		Furniture	48,000
		(-) Dep @10%	4,800	43,200
		Investment		50,000
		Cash at Bank		90,000
		Stock		30,000
	4,29,200			4,29,200

Statement of Profit or Loss For the year 2017
Particulars	₹
Capital at the end of the year 31/03/2017	3,35,200
(+) Drawings during the year (₹5,000 x 12 months)	60,000
	3,95,200
(-) Fresh capital introduced	30,000
	3,65,200
(-) Capital at the Beginning of the Year 01/04/2016	2,24,000
Profit earned during the year	1,41,200

Q:

Mr. Ashok does not keep his books properly. Following information is available from his books.

Particulars 01/04/2016 31/03/2017

₹ ₹

Sundry creditors 45,000 93,000

Loan from wife 66,000 57,000

Sundry debtors 22,500 _

Land & 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.

A:

Statement of Affairs As on 1^st April, 2016
Liabilities	₹	Assets	₹
Sundry Creditors	45,000	Sundry Debtors	22,500
Loan from wife	66,000	Land & Buildings	89,600
Bank Overdraft	25,000	Cash in Hand	7,500
Capital (Bal. figure)	18,900	Furniture	1,300
		Stock	34,000
	1,54,900		1,54,900

Statement of Affairs As on 31^st March, 2017
Liabilities	₹	Assets	₹
Sundry Creditors	93,000	Land & Buildings	90,000
Loan from Wife	57,000	Cash in Hand	8,700
		Furniture	1,300
		Stock	25,000
		Capital (Bal. figure)	25,000
	1,50,000		1,50,000

Statement of Profit or Loss For the year 2017
Particulars	₹
Capital at the end of the year 31/03/2017	(25,000)
(+) Drawings during the year (₹1500 x 7 months = ₹10,500) (₹4,500 x 5 months = ₹22,500)	33,000
	(8,000)
(-) Additional capital introduced	(50,000)
	(42,000)
(-) Capital at the Beginning of the Year 01/04/2016	(18,900)
Profit earned during the year	(60,900)

Note: As per the solution, the loss incurred during the year 2017 is ₹60,900, whereas the loss given in the book shows ₹57,900.

Q:

Mr. Girdhari Lal does not keep full double entry records. His balance as on April 01, 2016 is as:

Liabilities ₹ Assets ₹

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:

Particulars ₹

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.

A:

Statement of Affairs As on 31^st March, 2017
Liabilities	₹	Assets	₹
Bills Payable	20,200	Cash in hand	7,000
Creditors	15,000	Stock	8,600
Capital (Bal. figure)	39,550	Debtors	23,800
		Furniture	15,000
		Plant	20,350
	74,750		74,750

Statement of Profit or Loss For the year 2017
Particulars	₹
Capital at the end of the year 31/03/2017	39,550
(+) Drawings during the year (₹500 x 12)	6,000
	45,550
(-) Additional capital introduced	1,500
	44,050
(-) Capital at the Beginning of the Year 01/04/2016	40,000
Profit earned during the year	4,050

Q:

Mr. Muneesh maintains his books of accounts from incomplete records. His books provide the information:

Particulars 01/04/2016 31/03/2017

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.

A:

Statement of Affairs As on 1^st April, 2016
Liabilities	₹	Assets	₹
Creditors	14,000	Cash	1,200
Capital (Bal. figure)	33.900	Debtors	16,800
		Stock	22,400
		Furniture	7,500
	47,900		47,900

Statement of Affairs As on 31^st March, 2017
Liabilities	₹	Assets	₹
Creditors	15,200	Cash	1,600
Capital (Bal. figure)	56,400	Bills Receivable	2,400
		Debtors	27,200
		Stock	24,400
		Investment	8,000
		Furniture	8,000
	71,600		71,600

Statement of Profit or Loss For the year 2017
Particulars	₹
Capital at the end of the year 31/03/2017	56,400
(+) Drawings during the year (₹300 x 12)	3,600
	60,000

(-) Additional capital introduced	16,320
	43,680

(-) Capital at the Beginning of the Year 01/04/2016	33,900
Profit earned during the year	9,780

Working Note:

Additional capital introduced during the year:

₹16,000 + 2% = ₹16,320

Because investment were sold at 2% profit and the same introduced in the business.

Q:

Gopal does not keep proper books of account. Following information is given below:

Particulars 01/04/2016 31/03/2017

₹ ₹

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 equipments 25,000 30,000

Land & Buildings 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.

A:

Statement of Affairs As on 1^st April, 2016
Liabilities	₹	Assets	₹
Sundry Creditors	60,000	Cash in Hand	18,000
Loan	10,000	Cash at bank	1,500
Capital (Bal. figure)	1,30,500	Stock in trade	80,000
		Sundry Debtors	36,000
		Office Equipments	25,000
		Land & Building	30,000
		Furniture	10,000
	2,00,500		2,00,500

Statement of Affairs As on 31^st March , 2017
Liabilities	₹	Assets	₹
Sundry Creditors	40,000	Cash in Hand	12,000
Loan	8,000	Cash at bank	2,000
Capital (Bal. figure)	1,76,000	Stock in trade	90,000
		Sundry Debtors	60,000
		Office Equipments	30,000
		Land & Building	20,000
		Furniture	10,000
	2,24,000		2,24,000

Statement of Profit or Loss For the year 2017
Particulars	₹
Capital at the end of the year 31/03/2017	1,76,000
(+) Drawings during the year	12,000
	1,88,000
(-) Additional capital introduced	20,000
	1,68,000
(-) Capital at the Beginning of the Year 01/04/2016	1,30,500
Profit earned during the year	37,500

Note: As per the solution, the profit earned for the year 2017 should be ₹37,500; whereas, in the text book, the profit earned is ₹53,500.

Q:

Mr. Akshat keeps his books on incomplete records following information is given below:

Particulars 01/04/2016 31/03/2017

₹ ₹

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.

A:

Statement of Affairs As on 1^st April, 2016
Liabilities	₹	Assets	₹
Creditors	66,000	Cash in Hand	1,000
Bills Payable	44,000	Cash at bank	15,000
Capital (Bal. 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 31^st March, 2017
Liabilities	₹	Assets	₹
Creditors	87,000	Cash in Hand	1,500
Bills Payable	58,000	Cash at bank	10,000
Capital (Bal. 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 or Loss For the year 31 March 2017
Particulars	₹
Capital at the end of the year 31/03/2017	1,74,000
(+) Drawings during the year	45,000
	2,19,000
(-) Additional capital introduced	25,000
	1,94,000
(-) Capital at the Beginning of the Year 01/04/2016	1,32,500
Profit earned during the year	61,500

Q:

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.

Particulars ₹

Capital at the beginning 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

A:

Statement of Affairs As on …….
Liabilities	₹	Assets	₹
Creditors	6,00,000	Bills Receivables	60,000
Capital (bal. figure)	16,40,000	Cash in Hand	80,000
		Furniture	9,00,000
		Buildings	10,00,000
		Stock in Trade	2,00,000
	22,40,000		22,40,000

Statement of Profit or Loss At the end of the year
Particulars	₹
Capital at the end of the year	16,40,000
(+) Drawings during the year	80,000
	17,20,000
(-) Capital introduced during the year	3,20,000
	14,00,000
(-) Capital at the Beginning of the Year	15,00,000
Loss during the year	(1,00,000)

Q:

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

A:

Statement of Affairs As on …
Liabilities	₹	Assets	₹
Sundry Creditors	33,400	Stock	59,500
Capital		Sundry Debtors	25,900
(Balancing Figure)	62,700	Business Premises	8,600
		Machinery	2,100
	96,100		96,100

Statement of Profit or Loss For the year ended
Particulars	₹
Capital at the end of the year	62,700
(+) Drawings during the year	26,400
	89,100
(-) Additional Capital introduced during the year	17,500
	71,600
(-) Capital at the beginning of the year	70,000
Profit made during the year	1,600

NCERT Solutions For Class 11 Accountancy Chapter 5 Accounts from Incomplete Records

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Sample Paper

Exam Weightage

Particulars	₹
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

Particulars	₹
Opening creditors	60,000
Cash paid to creditors	30,000
Closing creditors	36,000
Returns inward	13,000
Bills matured	27,000
Bill dishonoured	8,000
Purchases return	12,000
Discount allowed	5,000

Particulars	01/04/2016	31/03/2017
	₹	₹
Creditors	5,000	30,000
Bills Payable	10,000	_____
Loan	_____	50,000
Bills Receivable	30,000	50,000
Stock	5,000	30,000
Cash	2,000	20,000

Particulars	₹
Opening stock	30,000
Closing stock	25,000
Opening creditors	50,000
Closing debtors	75,000
Discount allowed by creditors	1,500
Discount allowed to customers	2,500
Cash paid to creditors	1,35,000
Bills payable accepted during the period	30,000
Bills receivable received during the period	75,000
Cash received from customers	2,20,000
Bills receivable dishonored	3,500
Purchases	2,95,000

Dr. Summary of Cash Cr.
Receipts	₹	Payments	₹
Opening balance of cash	12,000	Paid to creditors	53,000
Further capital	20,000	Business expenses	12,000
Received from debtors	1,20,000	Wages paid	30,000
		Bhavana’s drawings	15,000
		Balance at bank on Mar 31, 2017	35,000
		Cash in hand	7,000
	1,52,000		1,52,000

Particulars	₹
Opening debtors	45,000
Closing debtors	56,000
Discount allowed	2,500
Sales returns	8,500
Irrecoverable amount	4,000
Bills receivable 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

Particulars	₹
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

Particulars	₹
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

Particulars	₹
Bills payable as on Apr 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

Particulars	₹
Creditors Apr 01, 2016	30,000
Creditors Mar 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

Particulars	₹
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

Particulars	₹
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

Particulars	31/03/2016	31/03/2017
	₹	₹
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

Particulars	₹
Capital at the beginning	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

NCERT Solutions For Class 11 Accountancy Chapter 5 Accounts from Incomplete Records

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What are the possible reasons for keeping incomplete records?

State the meaning of incomplete records?

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

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.

Explain how the following may be ascertained from incomplete records. Opening capital and closing capital. Credit sales and credit purchases. Payments to creditors and collection from debtors. Closing balance of cash.

What practical difficulties are encountered by a trader due to incompleteness of accounting records?

Distinguish between statement of affairs and balance sheet.

The following information is given: Particulars ₹ Opening creditors 60,000 Cash paid to creditors 30,000 Closing creditors 36,000 Returns inward 13,000 Bills matured 27,000 Bill dishonoured 8,000 Purchases return 12,000 Discount allowed 5,000 Calculate credit purchases during the year.

Following information is given below: calculate the closing capital: Particulars 01/04/2016 31/03/2017 ₹ ₹ Creditors 5,000 30,000 Bills Payable 10,000 _____ Loan _____ 50,000 Bills Receivable 30,000 50,000 Stock 5,000 30,000 Cash 2,000 20,000

‘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.

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?

Calculate the amount of bills receivable dishonoured from the following information: Particulars ₹ 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

Calculate the amount of bills receivable during the year. Particulars ₹ Opening balance of bills receivable 75,000 Bills dishonoured 25,000 Bills collected (honoured) 1,30,000 Bills receivable endorsed to creditors 15,000 Closing balance of bills receivable 65,000

Find out the amount of bills matured during the year on the basis of information given below: Particulars ₹ 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

From the following calculate the amount of bills accepted during the year. Particulars ₹ Bills payable as on Apr 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

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Sample Paper

Exam Weightage

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

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.

Explain how the following may be ascertained from incomplete records.

Opening capital and closing capital.

Credit sales and credit purchases.

Payments to creditors and collection from debtors.

Closing balance of cash.

The following information is given:

Particulars ₹

Opening creditors 60,000

Cash paid to creditors 30,000

Closing creditors 36,000

Returns inward 13,000

Bills matured 27,000

Bill dishonoured 8,000

Purchases return 12,000

Discount allowed 5,000

Calculate credit purchases during the year.

Following information is given below: calculate the closing capital:

Particulars 01/04/2016 31/03/2017

₹ ₹

Creditors 5,000 30,000

Bills Payable 10,000 _

Loan _ 50,000

Bills Receivable 30,000 50,000

Stock 5,000 30,000

Cash 2,000 20,000

Calculate the amount of bills receivable dishonoured from the following information:

Particulars ₹

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

Calculate the amount of bills receivable during the year.

Particulars ₹

Opening balance of bills receivable 75,000

Bills dishonoured 25,000

Bills collected (honoured) 1,30,000

Bills receivable endorsed to creditors 15,000

Closing balance of bills receivable 65,000

Find out the amount of bills matured during the year on the basis of information given below:

Particulars ₹

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

From the following calculate the amount of bills accepted during the year.

Particulars ₹

Bills payable as on Apr 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