SingleEntryExamplePartIII

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Accounts from Incomplete Records Single Entry System

Module III of IV

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This e-Lecture was Recorded on:

April 5, 2013

CA Intermediate (IPC) Course Paper 1 Accounting Chapter 10CA. 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 NotesThis e-Lecture was Recorded on:

April 5, 2013

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Agenda Module III

To learn to do full fledged 16 marks sum in

Single Entry .

With the data provided :

To prepare the Opening Balance Sheet ,

ascertain the Capital employed

To prepare the Trading and P & L A/c To prepare the Closing Balance Sheet

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PCC , Nov 2008

PE II , Nov 2006

Lucky Sum

(16 marks)

5 ICAI, 2013


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Lucky Sum

Lucky does not maintain proper books of

accounts . However he maintains a record of his

bank transactions and also is able to give the

following information from the following

information from which we request to prepare

his final accounts for the year 2003 :

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Opening and Closing B/s

1.1.2003 31.12.2003

Debtors 1,01,500 -Creditors - 46,000

Stock 50,000 62,500

Bank Balance - 50,000Fixed Assets 7,500 9,000

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Luckys Bank Transactions

Received from debtors 3,40,000

Additional Capital brought in 5,000

Sale of fixed Assets(book value Rs.2500) 1,750

Paid to Creditors 2,80,000

Expenses paid 49,250

Personal drawings 25,000

Purchase of fixed Assets 5,000 Cost of goods sold 2,60,000

Goods are sold at cost plus 25% .

No Cash Transactions took place during the year . 8


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Approach to the Sum

Prepare opening balance sheet .

T A/cs has to be prepared for the missing

entries.

Prepare Trading , P&L A/c for the y.e.

31.03.2003

Missing figures are Purchase and Sales.

Open Sundry Creditor A/c and Sundry Debtor

A/c.

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Approach to the Sum

For gross profit the relationship is 1/4thof cost

of goods sold.

Filling up the details provided we get the

following balance sheet and trading account.

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B S L


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Ba ance S eet o Luc y as on01.01.2003

Opening Capital ? Sundry Debtors 1,02,500

Stock 50,000

Bank ?Sundry Creditors ? Fixed Assets 7,500

Total

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Trading A/c of Lucky as on 31.03.2003To Opening Stock 50,000 By Sales ?

To Purchase ?To Gross profit c/d By Closing Stock 62,500

(1/4thof cost )

Total

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Sundry Creditor A/cTo Bank ? By o/p balance ?

To c/s 46,000 By Credit ?balance Purchase

Total

Sundry Debtors A/cTo o/p 1,02,500 By Bank ?

balance

To Credit Sales ? By bal c/d ?

Total

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We will now deal with the details of

Luckys bank transactions one by one , givingjournal entries and posting it in their

respective T a/cs.

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Amount received from debtors

Rs. 3,40,000

Bank A/c Dr. 3,40,000

To Sundry debtors A/c 3,40,000

Bank A/c

To Opening balance ?

To Sundry Debtors 3,40,000

Debtors A/c

To Opening balance 1,02,500 By Bank 3,40,000

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Additional capital brought in

Bank A/c Dr. 5,000

To Capital A/c 5,000

Bank A/c



To Capital 5,000

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Sale of Fixed Assets

Bank A/c Dr. 1,750

Loss on sale A/c Dr. 750

To Fixed Assets A/c 2,500

Bank A/c


To Sundry Debtors 3,40,000To Capital 5,000

To sale of Fixed Asset 1,750

Fixed Asset A/c

To opening balance 7500 By bank 1750

By loss on sale of fixed asset 750

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Amount paid to Creditors

Sundry Creditors A/c Dr. 2,80,000

To Bank A/c 2,80,000

Sundry Creditors A/c

Bank A/c

To Opening balance ? By Sundry

Creditors

2,80,000


To Capital 5,000


To Bank 2,80,000 By O/pBal ?

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Expenses Paid

Expenses A/c Dr. 49,250

To Bank A/c 49,250

Bank A/cTo Opening balance ? By Sundry

Creditors

2,80,000

To Sundry Debtors 3,40,000 By Expenses 49,250To Capital 5,000


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Amount drawn for personal use

Drawings A/c Dr. 25,000

To Bank A/c 25,000

Bank A/cTo Opening balance ? By Sundry

Creditors

2,80,000

To Sundry Debtors 3,40,000 By Expenses 49,250To Capital 5,000 By Drawings 25,000


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Fixed Asset PurchasedFixed Asset A/c Dr. 5,000

To Bank A/c 5,000Bank A/c

Fixed Asset A/c

To Opening balance ? By Sundry

Creditors

2,80,000

To Sundry Debtors 3,40,000 By Expenses 49,250

To Capital 5,000 By Drawings 25,000

To sale of Fixed Asset 1,750 By Fixed asset 5,000


To Bank 5,000 By loss on sale of fixed asset 75021


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/


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Trading A/c of Lucky as on 31.03.2003To Opening Stock 50,000 By Sales ?

To Purchase ?To Gross profit c/d By Closing Stock 62,500

(1/4thcost) ?

Total

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Calculation of Gross Profit

Gross Profit = 25 % on cost

COGS = 2,60,000

G.P = 1/4(2,60,000)= 65,000

Trading A/c

To opening stock 50,000

To Gross Profit c/d 65,000 By closing stock 62,500

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Calculation of ACS

Sales = 2,60,000 + 65,000

= 3,25,000

Trading A/c

To opening stock 50,000 By Sales 3,25,000

To Gross Profit 65,000 By closing stock 62,500

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Calculation of ACP

COGS = O/p stock + Purchases C/s stock

Purchases = COGS O/p Stock + C/s stock

Purchases = 2,60,000 + 62,500 - 50,000Purchases = 2,72,500.

Trading A/c

To opening stock 50,000 By Sales 3,25,000

To Purchases 2,72,500

To Gross Profit 65,000 By closing stock 62,500

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T di A/


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Trading A/cTo opening stock 50,000 By sales 3,25,000

To Purchases 2,72,500

To Gross profit c/d 65,000 By c/s stock 62,500

3,87,500 3,87,500

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Fixed Assets A/c


To bank 5,000 By loss on sale of

fixed asset

750

By depreciation 1000

By c/s 9000

12,500 12,500

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P fi & L A/


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Profit & Loss A/c

To expenses 49,250 By gross 65,000To loss of sale 750 profit b/d

To depreciation 1,000

To Net profit c/d 14,000

65,000 65,000

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Sundry Debtors A/c

To Opening bal 1,02,500 By Bank 3,40,000

To Credit Sales 3,25,000 By Balance c/d 87,500

427500 427500

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Sundry Creditors A/c

To Bank 2,80,000 By Opening bal 53,500

To c/s bal 46,000 By Credit purchase 2,72,500

3,26,000 3,26,000

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B/S f L k 01 01 20031


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B/S of Lucky as on 01.01.2003

Opening Capital1,69,000 S.Debtors 1,02,500

Stock 50,000

Bank 62,500S.Creditors 53,500Fixed Assets 7,500

2,22,500 2,22,500

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1

B/ f L k 31 12 03


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B/s of Lucky as on 31.12.03

Capital 1,69,000 S. Debtor 87,500

(+)add.cap 5,000 Stock 62,500(+)profit 14,000 Bank 50,000

(-)drawings 25,000

1,63,000 Assets 9,000

S. Creditor 46,000

2,09,000 2,09,00033


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Summary

We learnt how to proceed line by line into the

sum .

All the data given in the form of balances have

first to be incorporated in the respective T

accounts , or the opening Balance Sheet /

Closing Balance Sheet.

Concentrate first on completing the Tradingaccount , then move on to P & L A/c .

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Summary (contd..)

All the T accounts opened have to be closed .

Complete the Closing Balance Sheet , making

sure all the items in the Opening Balance

Sheet have been dealt with .

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Do keep moving forward

Thank You

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SingleEntryExamplePartIII

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