Chapter 11 - Accounts from Incomplete Records

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  • Chapter 11 - Accounts from Incomplete Records Assignments 1

    Mrs Bhavana keeps his books by Single Entry System. You.re required to prepare final accounts of her business for the year ended December 31, 2005. Her records relating to cash receipts and cash payments for the above period showed the following particulars :

     

    Summary of Cash

    Dr.

     

     

    Cr.

    Receipts

    Amount Rs

    Payments

    Amount Rs

    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

    Wage paid

    30,000

     

     

    Bhavana's drawings

    15,000

     

     

    Balance at bank on

    35,000

     

     

    Dec. 31,2005

     

     

     

    Cash in hand

    7,000

     

    1,52,000

     

    1,52,000

     

     

     

     

     

    The following information is also available:

     

    Jan. 01, 2005

    Dec. 31, 2005

     

     

    Rs

     

    Rs

    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 and Building

     

    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%.

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 2

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

     

    Rs

    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 dishonoured

    3,500

    Purchases

    2,95,000

     

    The rate of gross profit is 25% on selling price and out of the total sales

    Rs 85,000 was for cash sales.

     

    (Hint: Total sales = 4,00,000 = 3,00,000 x 100 x

    100

    )

    75

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  • Chapter 11 - Accounts from Incomplete Records Assignments 3

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

     

    Rs

    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

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  • Chapter 11 - Accounts from Incomplete Records Assignments 4

    From the following information, prepare the bills receivable account and total debtors account for the year ended December 31, 2005.

     

    Rs

    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 Dec. 31, 2005

    75,500

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  • Chapter 11 - Accounts from Incomplete Records Assignments 5

    From the details given below, find out the credit sales and total sales.

     

    Rs

    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

     

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 6

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

     

    Rs

    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

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 7

    Calculate the amount of bills receivable during the year.

     

    Rs

    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

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 8

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

     

    Rs

    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

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 9

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

     

    Rs

    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

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 10

     

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

    Rs

    Bills payable as on April 01, 2005 1,80,000

    Bills payable as on March 31, 2006 2,20,000

    Bills payable dishonoured during the year 28,000

    Bills payable honoured during the year 50,000

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 11

    The following information is given

     

    Rs

    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

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  • Chapter 11 - Accounts from Incomplete Records Assignments 12

     

    From the following information calculate total purchases.

     

    Rs

    Creditors Jan. 01, 2005

    30,000

    Creditors Dec. 31, 2005

    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

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  • Chapter 11 - Accounts from Incomplete Records Assignments 13

    Find out the credit purchases from the following:

     

    Rs

    Balance of creditors April 01, 2004

    45,000

    Balance of creditors March 31, 2005

    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

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  • Chapter 11 - Accounts from Incomplete Records Assignments 14

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

     

    Rs

    Sundry creditors as on March 31, 2005

    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, 2006

    2,09,050

    Total purchases

    8,97,000

    Cash purchases

    1,40,000

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 15

    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 December 31, 2005

     

     

    Dec. 31, 2004

    Dec. 31, 2005

     

     

    Rs

     

    Rs

    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 Rs 10,000 p.m. for personal use, fresh capital introduce during the year Rs 2,00,000. A bad debts of Rs 2,000 and a provision of 5% is to be made on debtors outstanding salary Rs 2,400, prepaid insurance Rs 700, depreciation charged on furniture and machine @ 10% p.a.

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  • Chapter 11 - Accounts from Incomplete Records Assignments 16

    Krishna Kulkarni has not kept proper books of accounts prepare the statement of profit or loss for the year ending December 31, 2005 from the following information:

     

     

    Jan. 01, 2005

    Dec. 31, 2005

     

     

    Rs

     

    Rs

    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 Rs 5,000 per month for private use.

    (b) Depreciation @ 5% on car and furniture @10%.

    (c) Outstanding Rent Rs 6,000.

    (d) Fresh Capital introduced during the year Rs 30,000.

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 17

      mr. ashok does not keep his books properly. Following information is available from his books.

     

     

    Jan. 01, 2005

    Dec. 31, 2005

     

     

    Rs

     

    Rs

    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 Rs 50,000 and invested this amount into the business. He withdrew from the business Rs 1,500 per month upto July 31, 2005 and thereafter Rs 4,500 per month as drawings. You are required to prepare the statement of profit or loss and statement of affair as on December 31, 2005.

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 18

     

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

     

     

    Jan. 01, 2005

    Dec. 31, 2005

     

     

    Rs

     

    Rs

    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 Rs 300 per month for personal expenses. He sold his investment of Rs 16,000 at 2% premium and introduced that amount into business.

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  • Chapter 11 - Accounts from Incomplete Records Assignments 19

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

     

    Jan. 01, 2005

    Dec. 31, 2005

     

     

    Rs

     

    Rs

    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 and Building

     

    30,000

     

    20,000

    Furniture

     

    10,000

     

    10,000

    During the year he introduced Rs 20,000 and withdrew Rs 12,000 from the business. Prepare the statement of profit or loss on the basis of given information

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  • Chapter 11 - Accounts from Incomplete Records Assignments 20

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

     

    April 01, 2004

    March 31, 2005

     

     

    Rs

     

    Rs

    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 Rs 45,000 and introduced Rs 25,000 as further capital in the business compute the profit or loss of the business

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  • Chapter 11 - Accounts from Incomplete Records Assignments 21

     

    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.

     

    Rs

    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.

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  • Chapter 11 - Accounts from Incomplete Records Assignments 22

    Mrs Anu started firm with a capital of Rs 4,00,000 on 1st July 2005. She borrowed from her friends a sum of Rs 1,00,000 @ 10% per annum (interest paid) for business and brought a further amount to capital Rs 75,000 on Dec. 31, 2005, her position was :

     

    Rs

    Cash

    30,000

    Stock

    4,70,000

    Debtors

    3,50,000

    Creditors

    3,00,000

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

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  • Chapter 11 - Accounts from Incomplete Records Assignments 23

    Following information is given below: calculate the closing capital

     

    Jan.01, 2005

    Dec.31, 2005

     

     

    Rs

     

    Rs

    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

    Calculation of profit or loss and ascertainment of statement of affairs at the end of the year (Opening Balance is given)

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  • Chapter 11 - Accounts from Incomplete Records Assignments 24

     

    From the following information, calculate capital at the beginning:

     

    Rs

    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

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 25

     

    From the following information, calculate capital at the beginning:

     

    Rs

    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

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 26

     

    From the information given below ascertain the profit for the year:

     

    Rs

    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

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 27

    Manveer started his business on January 01, 2005 with a capital of Rs 4,50,000. On December 31, 2005 his position was as under:

     

    Rs

    Cash

    99,000

    Bills receivable

    75,000

    Plant

    48,000

    Land and Building

    1,80,000

    Furniture

    50,000

     

    He owned Rs 45,000 from his friend Susheel on that date. He withdrew Rs 8,000 per month for his household purposes. Ascertain his profit or loss for this year ended December 31, 2005

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  • Chapter 11 - Accounts from Incomplete Records Assignments 28

    Following information is given below prepare the statement of profit or loss:

     

    Rs

    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

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  • Chapter 11 - Accounts from Incomplete Records Assignments 29

    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.

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  • Chapter 11 - Accounts from Incomplete Records Assignments 30

    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.

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  • Chapter 11 - Accounts from Incomplete Records Assignments 31

    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?

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  • Chapter 11 - Accounts from Incomplete Records Assignments 32

     

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

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  • Chapter 11 - Accounts from Incomplete Records Assignments 33

    Distinguish between statement of affairs and balance sheet.

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  • Chapter 11 - Accounts from Incomplete Records Assignments 34

    What are the possible reasons for keeping incomplete records?

     

     

     

     

     

     

     

     

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  • Chapter 11 - Accounts from Incomplete Records Assignments 35

    State the meaning of incomplete records?

     

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