SingleEntryExamplePartII

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ACCOUNTSFROMINCOMPLETE

RECORDS SINGLEENTRYSYSTEM

MODULEII OFIV

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CA Intermediate (IPC) Course Paper 1 Accounting

Chapter 10

CA. Prathap. S.S

The Institute of Chartered Accountants of India


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1 This lecture has been delivered by faculty members to supplement the

Study Material, Practice Manual and other content

2 The views expressed in this lecture are of the Faculty Member.

3

The content of this video lecture has not been specifically discussed

by the Council of the Institute or any of its Committees and the viewsexpressed herein may not be taken to necessarily represent the viewsof the Council or any of its committees

2

Disclaimer


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The e-Lectures, PPT, Podcastsand Video lectures on ICAI

Cloud Campus aim tosupplement the Study Material,

Practice Manual and

Supplementary Study Material

The lecture recordings are madeaccording to the syllabus andlaws existing/ applicable as on

the date of recording.

Due to changes in law, there is

likely to be some time gapbetween these changes and therecording of updated lectures.

Hence, students are advised torefer to the Study Material

including Supplementary Study

Material, if any, and otherrelevant legislation for latest

provisions/ amendmentsrequired for forthcoming

examination.

Important Notes

This e-Lecture was Recorded on:

December 18, 2012

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Agenda

In Module II , we will focus on mastering the

Journal Entries concerning Accounts from

Incomplete Records .

To become very familiar with T accounts

Post the Journal Entries in them.

Arrive at Opening / Closing Balances

Ascertain the balances of the missing data .

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Introduction

Journal Entries are of fundamental importance in

Accounts .

Once you get the JE right , it is very difficult to go

wrong .

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IPCC MAY2012Ice Sum

(8 marks)

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M/s Ice Ltd gives you the following

information to find out Total sales and

Total Purchases

Debtors on 01.04.2011 70,000

Creditors on 01.04.2011 81,000

Bills Receivables received during the year 47,000

Bills Payables during the year 53,000Cash received from customers 1,56,000

Cash paid to suppliers 1,72,000

Bad Debts Recovered 16,000

Bills Receivables endorsed to Creditors 27,000

Bills Receivables dishonored by customers 5,000

Discount allowed by suppliers 7,000

(contd..) 7


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....Ice sum

Discount allowed to customers 9,000

Endorsed Bills Receivables dishonored 3,000

Sales Return 11,000

Bills Receivables discounted 8,000

Discounted Bills Receivables dishonored 2,000

Cash Sales 1,68,500

Cash Purchases 1,97,800

Debtors on 31.03.2012 82,000Creditors on 31.03.2012 95,000

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Approach to the Sum

This is a classical sum wherein the complete

Sundry Debtors and Sundry Creditors ledgers have

to be opened .

Our approach will be transaction by transaction

passing Journal Entries and simultaneous

updating the Debtors and Creditors ledger

accounts .

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Requirements of the Sum

The requirement is calculation of Total Sales and

Total Purchases .

Total Sales = Cash Sales + Credit SalesCredit Sales will be obtained from Sundry

Debtors A/c and Cash Sales is given.

Total Purchase = Cash Purchase + Credit PurchaseSundry Creditors A/c will supply the Credit

Purchases and Cash Purchases is given .10


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Steps to be Followed

Step 1:

Open Sundry Debtors a/c and Sundry Creditors

A/c with the Opening balances given . The Bills

receivables and Bills Payable A/c can also be

opened.

Step 2:

Line by line pass Journal Entry and update boththe A/cs.

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JOURNALENTRIES12


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Opening Sundry Debtors & Creditors

To Opening Balance 70,000

By Opening balance 81,000

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Sundry Debtors A/c

Sundry Creditors A/c


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Bills Receivables received during

the year Rs.47,000.

Bills Receivables A/c Dr. 47,000

To Sundry Debtors A/c 47,000

Sundry Debtors A/cTo Opening Balance 70,000 By Bills Receivables A/c 47,000

Bills Receivables A/c

To Sundry Debtors 47,000

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Bills Payables issued during the year

Rs.53,000.

Sundry Creditors a/c Dr. 53,000

To Bills Payables a/c 53,000


Bills Payables A/c

To Bills Payables 53,000 By Opening Balance 81,000

By Sundry Creditors 53,000

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Cash received from customers Rs.1,56,000.

Cash A/c Dr. 1,56,000

To Sundry Debtors A/c 1,56,000

Sundry Debtors A/c

To Opening Balance 70,000 By Bills Receivables 47,000

By Cash 1,56,000

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Cash paid to suppliers Rs.1,72,000

Sundry Creditors A/c Dr. 1,72,000

To Cash A/c 1,72,000


To Bills Payable 53,000 By Opening Balance 81,000

To Cash 1,72,000

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Bad Debts recovered Rs.16 000

Cash A/c Dr. 16,000

To Bad Debts recovered A/c 16,000

This Journal Entry will not find a posting in the Sundry

Debtors A/c.

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Bills Receivables endorsed to

creditors Rs.27,000

Creditors A/c Dr. 27,000

To Bills Receivables A/c 27,000




To Cash 1,72,000

To Bills Receivables 27,000

To Sundry Debtors 47,000 By Creditors 27,000

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Bills Receivables dishonoured by

customers Rs. 5,000

Debtors A/c Dr. 5,000


Sundry Debtors A/c


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To Bills Dishonoured 5,000 By Cash 1,56,000


By Sundry Debtors 5,000


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Discount allowed by suppliers Rs.7,000

Sundry Creditors A/c Dr. 7,000

To Discount allowed A/c 7,000


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To Cash 1,72,000


To Discount allowed 7,000


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Discount allowed to customers Rs.9,000

Discount a/c Dr. 9,000


Sundry Debtors A/c

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To Bills rec. Dishonoured 5,000 By Cash 1,56,000

By Discount 9,000


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Endorsed Bills Receivables dishonoured Rs.3,000


To Creditors A/c 3,000Sundry Debtors A/c


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To Creditors(endorsed

bill dishonoured)

3,000 By Discount 9,000


To Cash 1,72,000 By

Debtors(endorsed

bill dishonoured)

3,000


To Discount allowed 7,000


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Sales Return Rs.11,000

Sales Return A/c Dr. 11,000


Sundry Debtors A/c

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To Creditors 3,000 By Discount 9,000

By Sales Return 11,000


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Bills Receivables discounted Rs.8,000

Bank A/c Dr. 8,000



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By Sundry Debtors 5,000

By Bank 8,000


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Discounted Bills Receivable dishonoured

Rs.2,000


To Bank A/c 2,000

Sundry Debtors A/c

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To Bank (bills

receivable

dishonoured)

2,000 By Sales Return 11,000


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Sundry Debtors A/c

To Balance b/d 70,000 By Bills Receivables 47,000

To Bills Receivables 5,000 By Cash 1,56,000


To Bank 2,000 By Sales Returns 11,000

To Annual

Credit Sales(bal.fig) 2,25,000 By Balance c/d 82,000

3,05,000 3,05,000

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By Debtors 5,000By Bank 8,000

By Balance c/d 7,000

47,000 47,000

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Sundry Creditors A/cTo Bills Payables 53,000 By Balance b/d 81,000

To Cash 1,72,000 By Debtors 3,000To Bills 27,000 By Annual

Receivables Credit Purchase 2,70,000

To Discount 7,000 (bal.fig)

To Balance c/d 95,000

3,54,000 3,54,000

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Bills Payables A/c

To Balance c/d 53,000 By Creditors 53,000

53,000 53,000

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Final Answer

(a) Total Sales = Cash sales + Credit sales

= 1,68,500 + 2,25,000

Total Sales = 3,93,500

(b) Total Purchases =Cash purchases + Credit Purchase

= 1,97,800 + 2,70,000

Total Purchases = 4,67,800

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Summary

In this II module , we learnt some

important Journal Entries, creation of Sundry

Debtors & Creditors A/c and ascertaining the

Annual Credit Sales and Annual Credit

Purchases .

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THANK

YOU

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SingleEntryExamplePartII

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