Target Publications Pvt. Ltd.

Chapter 08: Single Entry System

08 Single entry system

Solution to Practice Q.1.: In the Books of Mrs. Archana
Opening Statement of Affairs as on 31st Mar, 2006
Amount Amount
Liabilities Assets
` `
Bills Payable 5,000 Machinery 50,000
Sundry Creditors 15,000 Furniture 20,000
Capital (Balancing Figure) 1,10,000 Sundry Debtors 25,000
Stock in Trade 30,000
Cash at Bank 5,000
1,30,000 1,30,000
Closing Statement of Affairs as on 31st Mar, 2007
Amount Amount
Liabilities Assets
` `
Bills Payable 5,000 Machinery 50,000
Sundry Creditors 20,000 Furniture 20,000
Capital (Balancing Figure) 1,67,000 Sundry Debtors 40,000
Stock in Trade 50,000
Cash at Bank 32,000
1,92,000 1,92,000
Statement of Profit or Loss for the year ended 31st Mar, 2007
Amount Amount
Particulars
` `
Capital at the End of the Year 1,67,000
Add: Drawings (For Personal Use) 15,000
1,82,000
Less: Additional Capital Introduced During the Year 25,000
Adjusted Closing Capital 1,57,000
Less: Capital at the Beginning of the Year 1,10,000
Trading Profit or Profit Before any Adjustment 47,000
Less: Depreciation on Furniture 2,000
Depreciation on Machinery 5,000 7,000
Net Profit for the Year 40,000

Solution to Practice Q.2.: In the Books of Mr. Raj

Opening Statement of Affairs as on 31st Mar, 2006
Amount Amount
Liabilities Assets
` `
Loan Taken 21,000 Plant & Machinery 42,500
Creditors 18,000 Furniture 53,500
Capital (Balancing Figure) 1,16,900 Stock 15,000
Debtors 43,000
Bank Balance 1,900
1,55,900 1,55,900

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Closing Statement of Affairs as on 31st Mar, 2007
Amount Amount
Liabilities Assets
` `
Loan Taken 21,000 Plant & Machinery 55,500
Creditors 14,900 Furniture 44,000
Capital (Balancing Figure) 1,14,700 Stock 14,000
Debtors 35,000
Bank Balance 2,100

1,50,600 1,50,600

Statement of Profit or Loss for the year ended 31st Mar, 2007
Amount Amount
Particulars
` `
Capital at the End of the Year 1,14,700
Add: Drawings (For Private Expenses) 15,000
1,29,700
Less: Additional Capital Introduced During the Year 4,000
Adjusted Closing Capital 1,25,700
Less: Capital at the Beginning of the Year 1,16,900
Trading Profit or Profit Before any Adjustment 8,800
Less: Written Off Bad Debts 500
Depreciation on Plant & Machinery 2,775
Depreciation on Furniture 2,200 5,475
Net Profit for the Year 3,325

Solution to Practice Q.3.: In the Books of Mr. Mahesh

Opening Statement of Affairs as on 31st Mar, 2011
Amount Amount
Liabilities Assets
` `
Loan Taken Creditors 19,000 Stock 13,000
Creditors 16,000 Furniture 51,500
Premises 40,500
Debtors 41,000
Capital (Balancing Figure) 1,12,900 Bank Balance 1,900

1,47,900 1,47,900

Closing Statement of Affairs as on 31st Mar, 2012

Amount Amount
Liabilities Assets
` `
Loan Taken Creditors 19,000 Stock 12,000
Creditors 12,900 Furniture 42,000
Premises 53,500
Debtors 33,000
Capital (Balancing Figure) 1,10,700 Bank Balance 2,100

1,42,600 1,42,600

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Target Publications Pvt. Ltd. Chapter 08: Single Entry System

Statement of Profit or Loss for the year ended 31st Mar, 2012
Amount Amount
Particulars
` `
Capital at the End of the Year 1,10,700
Add: Drawings (For Personal Use) 13,000
1,23,700
Less: Additional Capital Introduced during the Year 6,000
Adjusted Closing Capital 1,17,700
Less: Capital at the Beginning of the Year 1,12,900
Trading Profit or Profit Before any Adjustment 4,800
Less: Depreciation on Premises 5,350
Depreciation on Furniture 2,100
Bad Debts 1,000 8,450
Net Loss for the Year (3,650)

Solution to Practice Q.4.: In the Books of Mr. Joshi

Opening Statement of Affairs as on 1st Apr, 2012
Amount Amount
Liabilities Assets
` `
Bills Payable 25,000 Cash Balance 10,000
Bank Overdraft 5,000 Land & Building 40,000
Furniture 15,000
Capital (Balancing Figure) 95,000 Machinery 30,000
Debtors 10,000
Stock 10,000
Bills Receivable 10,000
1,25,000 1,25,000
st
Closing Statement of Affairs as on 31 Mar, 2013
Amount Amount
Liabilities Assets
` `
Bills Payable 25,000 Bank Balance 20,000
Cash Balance 30,000
Capital (Balancing Figure) 1,85,000 Land & Building 50,000
Furniture 15,000
Machinery 40,000
Debtors 20,000
Stock 25,000
Bills Receivable 10,000
2,10,000 2,10,000
st
Statement of Profit or Loss for the year ended 31 Mar, 2013
Amount Amount
Particulars
` `
Capital at the End of the Year 1,85,000
Add: Drawings (for personal use) 40,000
2,25,000
Less: Additional Capital Introduced During the Year 15,000
Adjusted Closing Capital 2,10,000
Less: Capital at the Beginning of the Year 95,000
Trading Profit or Profit Before any Adjustment 1,15,000
Less: Depreciation on Furniture 5,000
Reserve for Doubtful debts 1,000 6,000
Net Profit for the Year 1,09,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.5.: In the Books of Mr. Balasaheb
Opening Statement of Affairs as on 1st Apr, 2004
Amount Amount
Liabilities Assets
` `
Sundry Creditors 25,000 Land & Building 40,000
Bank Overdraft 5,000 Machinery 30,000
Capital (Balancing Figure) 90,000 Furniture 10,000
Sundry Debtors 20,000
Stock 10,000
Bills Receivable 5,000
Cash Balance 5,000
1,20,000 1,20,000
Closing Statement of Affairs as on 31st Mar, 2005
Amount Amount
Liabilities Assets
` `
Sundry Creditors 25,000 Land & Building 50,000
Capital (Balancing Figure) 1,70,000 Machinery 40,000
Furniture 10,000
Sundry Debtors 40,000
Stock 25,000
Bills Receivable 5,000
Bank Balance 10,000
Cash Balance 15,000
1,95,000 1,95,000
Statement of Profit or Loss for the year ended 31st Mar, 2005
Amount Amount
Particulars
` `
Capital at the End of the Year 1,70,000
Add: Drawings (For Daughter’s Wedding) 45,000
2,15,000
Less: Additional Capital Introduced During the Year 10,000
Adjusted Closing Capital 2,05,000
Less: Capital at the Beginning of the Year 90,000
Trading Profit or Profit Before any Adjustment 1,15,000
Less: Depreciation on Land & Building 5,000
Reserve for Doubtful Debts on Debtors 2,000 7,000
Net Profit for the Year 1,08,000

Solution to Practice Q.6.: In the Books of Miss Sunita

Opening Statement of Affairs as on 31st Mar, 2006
Amount Amount
Liabilities Assets
` `
Sundry Creditors 26,250 Furniture 7,500
Capital (Balancing Figure) 44,250 Debtors 30,000
Stock in Trade 15,000
Cash at Bank 18,000

70,500 70,500

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Target Publications Pvt. Ltd. Chapter 08: Single Entry System

Closing Statement of Affairs as on 31st Mar, 2007

Amount Amount
Liabilities Assets
` `
Sundry Creditors 34,500 Furniture 7,500
Bills Payable 9,000 Investments 15,000
Capital (Balancing Figure) 69,750 Debtors 45,000
Stock in Trade 18,750
Cash at Bank 27,000

1,13,250 1,13,250

Statement of Profit or Loss for the year ended 31st Mar, 2007

Amount Amount
Particulars
` `
Capital at the End of the Year 69,750
Add: Drawings: Cash (` 150 × 6 months) + (` 100 × 6 months) 1,500
Goods 350 1,850
71,600
Less: Additional Capital Introduced During the Year 3,500
Adjusted Closing Capital 68,100
Less: Capital at the Beginning of the Year 44,250
Trading Profit or Profit Before any Adjustment 23,850
Less: Depreciation on Furniture 750
Reserve for Doubtful Debts 2,250 3,000
Net Profit for the Year 20,850

Solution to Practice Q.7.: In the Books of Harshada

Opening Statement of Affairs as on 31st Mar, 2005
Amount Amount
Liabilities Assets
` `
Sundry Creditors 20,000 Furniture 20,000
Bills Payable 1,000 Debtors 15,000
Capital (Balancing Figure) 32,000 Stock in Trade 8,000
Cash at Bank 10,000

53,000 53,000

Closing Statement of Affairs as on 31st Mar, 2006

Amount Amount
Liabilities Assets
` `
Sundry Creditors 30,000 Furniture 20,000
Bills Payable 5,000 Investment 12,000
Loan from Vimal 3,000 Debtors 25,000
Capital (Balancing Figure) 44,000 Stock in Trade 10,000
Cash at Bank 15,000

82,000 82,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Statement of Profit or Loss for the year ended 31st Mar, 2006
Amount Amount
Particulars
` `
Capital at the End of the Year 44,000
Add: Drawings: Cash 2,500
Goods 500 3,000
47,000
Less: Additional Capital Introduced During the Year 10,000
Adjusted Closing Capital 37,000
Less: Capital at the Beginning of the Year 32,000
Trading Profit or Profit Before any Adjustment 5,000
Less: Depreciation on Furniture 2,000
Reserve for Doubtful Debts 1,250 3,250
Net Profit for the Year 1,750

Solution to Practice Q.8.: In the Books of Mr. Keshav

Opening Statement of Affairs as on 1st Apr, 2012
Amount Amount
Liabilities Assets
` `
Creditors 52,500 Furniture 15,000
Capital (Balancing Figure) 88,500 Debtors 60,000
Stock in Trade 30,000
Cash at Bank 36,000
1,41,000 1,41,000
Closing Statement of Affairs as on 31st Mar, 2013
Amount Amount
Liabilities Assets
` `
Creditors 69,000 Furniture 45,000
Bills Payable 18,000 Investments 30,000
Capital (Balancing Figure) 1,69,500 Debtors 90,000
Stock in Trade 37,500
Cash at Bank 54,000
2,56,500 2,56,500
Statement of Profit or Loss for the year ended 31st Mar, 2013
Amount Amount
Particulars
` `
Capital at the End of the Year 1,69,500
Add: Drawings: Cash Transferred to Personal A/c [3,000 × 6 months] 18,000
Cash Transferred to Personal A/c [2,000 × 6 months] 12,000
Goods (For Personal Use) 7,000 37,000
2,06,500
Less: Additional Capital Introduced During the Year 27,000
Adjusted Closing Capital 1,79,500
Less: Capital at the Beginning of the Year 88,500
Trading Profit or Profit Before any Adjustment 91,000
Less: Depreciation on Furniture 4,500
Reserve for Doubtful Debts on Debtors 4,500 9,000
Net Profit for the Year 82,000

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Target Publications Pvt. Ltd. Chapter 08: Single Entry System

Solution to Practice Q.9.: In the Books of Mr. Rohit

Closing Statement of Affairs as on 31st Mar, 2013
Amount Amount
Liabilities Assets
` `
Loan from Father-in-law (25,000 – 12,500) 12,500 Machinery 70,000
Outstanding Salaries 5,000 Cash at Bank 1,50,000
Debtors 20,000
Capital (Balancing Figure) 2,29,500 Stock of Goods 7,000
2,47,000 2,47,000
Statement of Profit or Loss for the year ended 31st Mar, 2013
Amount Amount
Particulars
` `
Capital at the End of the Year 2,29,500
Add: Drawings (For Personal Use) –
2,29,500
Less: Additional Capital Introduced during the Year 50,000
Adjusted Closing Capital 1,79,500
Less: Capital at the Beginning of the Year 1,00,000
Trading Profit or Profit Before any Adjustment 79,500
Less: Depreciation on Machinery 7,000
Interest on Loan from Father-in-law 1,250 8,250
Net Profit for the Year 71,250

Solution to Practice Q.10.: In the Books of Miss Nikita

Closing Statement of Affairs as on 31st Mar, 2012
Amount Amount
Liabilities Assets
` `
Sundry Creditors 5,078 Debtors 29,280
Bills Payable 2,550 Stock-in-Trade 21,668
Cash at Bank 3,000
Plant and Machinery 5,015
Capital (Balancing Figure) 60,350 Premises 9,015
67,978 67,978
Statement of Profit or Loss for the year ended 31st Mar, 2012
Amount Amount
Particulars
` `
Capital at the End of the Year 60,350
Add: Drawings: Cash 3,160
Goods 175 3,335
63,685
Less: Additional Capital Introduced during the year 4,000
Adjusted Closing Capital 59,685
Less: Capital at the Beginning of the Year 56,000
Trading Profit or Profit Before any Adjustment 3,685
Less: Reserve for Doubtful Debts 1,464
Depreciation on Plant and Machinery 376
Depreciation on Premises 300
Interest on Capital 5,900 8,040
Net Loss for the Year (4,355)

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Solution to Practice Q.11.: In the Books of Mrs. Riddhi
Opening Statement of Affairs as on 1st Apr, 2012
Amount Amount
Liabilities Assets
` `
Sundry Creditors 26,250 Furniture 15,000
Debtors 30,000
Capital (Balancing Figure) 84,750 Stock 30,000
Cash 36,000
1,11,000 1,11,000

Closing Statement of Affairs as on 31st Mar, 2013

Amount Amount
Liabilities Assets
` `
Loan from Bank 5,000 Investments 30,000
Sundry Creditors 31,500 Furniture 15,000
Bills Payable 18,000 Debtors 45,000
Stock 37,500
Capital (Balancing Figure) 1,27,000 Cash 54,000
1,81,500 1,81,500
Statement of Profit or Loss for the year ended 31st Mar, 2013
Amount Amount
Particulars
` `
Capital at the End of the Year 1,27,000
Add: Drawings made in cash 2,700
Drawings of Goods 500 3,200
1,30,200
Less: Additional Capital Introduced During the Year 35,000
Adjusted Closing Capital 95,200
Less: Capital at the Beginning of the Year 84,750
Trading Profit or Profit Before any Adjustment 10,450
Add: Interest on Investments 3,000
13,450
Less: Depreciation on Furniture 750
Reserve for Bad debts 1,350
Interest on Loan 250 2,350
Net Profit for the Year 11,100

Solution to Practice Q.12.: In the Books of Miss. Divya

Closing Statement of Affairs as on 31st Mar, 2012
Amount Amount
Liabilities Assets
` `
Creditors 34,360 Land & Building 85,750
Bills Payable 25,760 Vehicles 40,250
Debtors 63,100
Capital (Balancing Figure) 2,25,960 Bills Receivable 58,240
Stock 20,500
Cash 18,240
2,86,080 2,86,080

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Target Publications Pvt. Ltd. Chapter 08: Single Entry System

Statement of Profit or Loss for the year ended 31st Mar, 2012
Amount Amount
Particulars
` `
Capital at the End of the Year 2,25,960
Add: Drawings (for personal use) 10,000
2,35,960
Less: Additional Capital Introduced During the Year 10,000
Adjusted Closing Capital 2,25,960
Less: Capital at the Beginning of the Year 1,50,000
Trading Profit or Profit Before any Adjustment 75,960
Add: Interest on Drawings 300
76,260
Less: Interest on Capital 15,500
Reserve for Doubtful debts 1,578
Depreciation on Land and Building 3,430
Depreciation on Vehicles 805 21,313
Net Profit for the Year 54,947

Solution to Practice Q.13.: In the Books of Mr. Anand

Opening Statement of Affairs as on 31st Mar, 2003
Amount Amount
Liabilities Assets
` `
Creditors 2,000 Furniture 12,000
Bills Payable 2,000 Stock 8,000
Capital (Balancing Figure) 46,000 Debtors 10,000
Bank 15,000
Cash 5,000
50,000 50,000
Closing Statement of Affairs as on 31st Mar, 2004
Amount Amount
Liabilities Assets
` `
Creditors 6,000 Furniture 12,000
Capital (Balancing Figure) 50,000 Stock 12,000
Debtors 8,000
Bank 18,000
Cash 6,000
56,000 56,000
st
Statement of Profit or Loss for the year ended 31 Mar, 2004
Amount Amount
Particulars
` `
Capital at the End of the Year 50,000
Add: Drawings (20,000 – 15,000 = ` 5,000) 5,000
55,000
Less: Additional Capital 4,000
Adjusted Closing Capital 51,000
Less: Capital at the Beginning of the Year 46,000
Trading Profit or Profit Before any Adjustment 5,000
Add: Purchase of Scooter 15,000
20,000

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Less: Interest on Capital 4,800

Depreciation on Furniture 1,200
Depreciation on Scooter 1,500
Reserve for Doubtful Debts on Debtors 400 7,900
Net Profit for the Year 12,100

Solution to Practice Q.14.: In the Books of Mr. Suryakant

Opening Statement of Affairs as on 31st Mar, 2006
Amount Amount
Liabilities Assets
` `
Sundry Creditors 10,000 Machinery 25,000
Outstanding Expenses 3,000 Furniture 10,000
Capital (Balancing Figure) 90,000 Investments 20,000
Stock 20,000
Sundry Debtors 25,000
Cash at Bank 2,500
Cash in Hand 500

1,03,000 1,03,000

Closing Statement of Affairs as on 31st Mar, 2007

Amount Amount
Liabilities Assets
` `
Sundry Creditors 10,000 Machinery 40,000
Outstanding Expenses 2,000 Furniture 25,000
Capital (Balancing Figure) 1,50,000 Investments 20,000
Stock 30,000
Sundry Debtors 40,000
Cash at Bank 5,000
Cash in Hand 2,000

1,62,000 1,62,000

Statement of Profit or Loss for the year ended 31st Mar, 2007
Amount Amount
Particulars
` `
Capital at the End of the Year 1,50,000
Add: Drawings 10,000
1,60,000
Less: Additional Capital 20,000
Adjusted Closing Capital 1,40,000
Less: Capital at the Beginning of the Year 90,000
Trading Profit or Profit Before any Adjustment 50,000
Less: Interest on Capital 10,500
Depreciation on Furniture 1,750
Depreciation on Machinery 3,250
Reserve for Doubtful Debts 2,000 17,500
Net Profit for the Year 32,500

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Target Publications Pvt. Ltd. Chapter 08: Single Entry System

Solution to Practice Q.15.: In the Books of Mr. Sameer

Opening Statement of Affairs as on 1st Apr, 2012
Amount Amount
Liabilities Assets
` `
Creditors 50,000 Land & Building 2,00,000
Bank Loan 17,000 Furniture 50,000
Debtors 12,000
Capital (Balancing Figure) 2,81,000 Stock 10,000
Bank 76,000
3,48,000 3,48,000
Closing Statement of Affairs as on 31st Mar, 2013
Amount Amount
Liabilities Assets
` `
Creditors 40,000 Land & Building 2,00,000
Bank Loan 17,000 Furniture 65,000
Capital (Balancing Figure) 3,13,000 Debtors 15,000
Stock 10,000
Bank Balance 80,000
3,70,000 3,70,000

Statement of Profit or Loss for the year ended 31st Mar, 2013
Amount Amount
Particulars
` `
Capital at the End of the Year 3,13,000
Add: Drawings During the Year 3,000
3,16,000
Less: Additional Capital Introduced During the Year 10,000
Adjusted Closing Capital 3,06,000
Less: Capital at the Beginning of the Year 2,81,000
Trading Profit or Profit Before any Adjustments 25,000
Add: Interest on Drawings 180
25,180
Less: Interest on Capital 28,600
Depreciation on Furniture 5,750
Bad Debts 1,000
Reserve for Bad & Doubtful Debts 700 36,050
Net Loss for the Year (10,870)

Solution to Practice Q.16.: In the Books of M/s. J. K. Traders

Opening Statement of Affairs as on 1st Apr, 2011
Amount Amount
Liabilities Assets
` `
Creditors 80,000 Cash at Bank 1,00,000
Bills Payable 6,000 Furniture and Fixtures 40,000
Stock of Stationery 1,000
Capital (Balancing Figure) 93,000 Stock of Goods 28,000
Debtors 10,000
1,79,000 1,79,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Closing Statement of Affairs as on 31st Mar, 2012
Amount Amount
Liabilities Assets
` `
Creditors 64,000 Cash at Bank 90,000
Bills Payable 8,000 Furniture & Fixtures 50,000
Stock of Stationery 1,400
Capital (Balancing Figure) 1,21,400 Stock of Goods 32,000
Debtors 20,000
1,93,400 1,93,400
Statement of Profit or Loss for the year ended 31st Mar, 2012
Amount Amount
Particulars
` `
Capital at the End of the Year 1,21,400
Add: Drawings − Investment in NSC 10,000
1,31,400
Less: Additional Capital Introduced During the Year 30,000
Adjusted Closing Capital 1,01,400
Less: Capital at the Beginning of the Year 93,000
Trading Profit or Profit Before any Adjustment 8,400
Less: Depreciation on Furniture & Fixtures 4,500
Reserve for Bad debts 1,000 5,500
Net Profit for the Year 2,900

Solution to Practice Q.17.: In the Books of Rajeshri

Closing Statement of Affairs as on 31st Mar, 2012
Amount Amount
Liabilities Assets
` `
Sundry Creditors 10,000 Cash at Bank 15,000
Cash in Hand 10,000
Plant and Machinery 20,000
Land and Building 30,000
Sundry Debtors 20,000
Stock 30,000
Capital (Balancing Figure) 1,20,000 Prepaid Insurance 5,000
1,30,000 1,30,000
st
Statement of Profit or Loss for the year ended 31 Mar, 2012
Amount Amount
Particulars
` `
Capital at the End of the Year 1,20,000
Add: Drawings (For Personal Use) 8,000
Adjusted Closing Capital 1,28,000
Less: Capital at the Beginning of the Year 80,000
Trading Profit or Profit Before any Adjustment 48,000
Add: Interest on Drawings 200
Reserve for Discount on Creditors 200 400
48,400
Less: Reserve for Discount on Debtors 200
Depreciation on Plant and Machinery 2,000
Depreciation on Land and Building 2,250 4,450
Net Profit for the Year 43,950

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Solution to Practice Q.18.: In the Books of Mr. Vilas Hukkeri

Opening Statement of Affairs as on 31st Mar, 2009
Amount Amount
Liabilities Assets
` `
Creditors 36,000 Machinery 1,00,000
Outstanding Salaries 3,000 Furniture 1,00,000
Capital (Balancing Figure) 3,13,000 Debtors 36,000
Stock 50,000
Bills Receivable 10,000
Cash in Hand 6,000
Cash at Bank 50,000
3,52,000 3,52,000
st
Closing Statement of Affairs as on 31 Mar, 2010
Amount Amount
Liabilities Assets
` `
Creditors 40,000 Machinery 1,00,000
Capital (Balancing Figure) 3,35,000 Furniture 60,000
Debtors 50,000
Stock 80,000
Bills Receivable 4,000
Prepaid Insurance 1,000
Cash in Hand 10,000
Cash at Bank 70,000
3,75,000 3,75,000
Statement of Profit or Loss for the year ended 31st Mar, 2010
Amount Amount
Particulars
` `
Capital at the End of the Year 3,35,000
Add: Drawings (For Personal Use) 6,000
3,41,000
Less: Additional Capital Introduced During the Year 20,000
Adjusted Closing Capital 3,21,000
Less: Capital at the Beginning of the Year 3,13,000
Trading Profit or Profit Before any Adjustment 8,000
Add: Interest on Drawings 150
8,150
Less: Interest on Capital 16,150
Depreciation on Machinery 5,000
Reserve for Doubtful Debts 1,000 22,150
Net Loss for the Year (14,000)

Solution to Practice Q.19.: In the Books of Mr. Prabhakar

Opening Statement of Affairs as on 1st Apr, 2009
Amount Amount
Liabilities Assets
` `
Sundry Creditors 60,000 Furniture 10,000
Bank Overdraft 80,000 Motor Van 80,000
Capital (Balancing Figure) 1,82,000 Computer 60,000
Stock 65,000
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Sundry Debtors 45,000

Bills Receivable 60,000
Cash in Hand 2,000
3,22,000 3,22,000

Closing Statement of Affairs as on 31st Mar, 2010

Amount Amount
Liabilities Assets
` `
Sundry Creditors 70,000 Furniture 10,000
Bank Overdraft 40,000 Motor Van 80,000
Capital (Balancing Figure) 3,28,000 Computer 1,20,000
10% Government Bonds 10,000
Stock 80,000
Sundry Debtors 50,000
Bills Receivable 80,000
Cash in Hand 8,000
4,38,000 4,38,000

Statement of Profit or Loss for the year ended 31st Mar, 2010
Amount Amount
Particulars
` `
Capital at the End of the Year 3,28,000
Add: Drawings: For Personal Use 40,000
For Daughter’s Marriage 30,000 70,000
Adjusted Closing Capital 3,98,000
Less: Capital at the Beginning of the Year 1,82,000
Trading Profit or Profit Before any Adjustment 2,16,000
Add: Interest on Drawings 2,000
Interest on 10% Government Bonds 500 2,500
2,18,500
Less: Interest on Capital 18,200
Depreciation on Furniture 1,000
Written Off on Motor Van 2,000
Written Off Bad Debts 2,000
Reserve for Doubtful Debts 2,400 25,600
Net Profit for the Year 1,92,900

Solution to Practice Q.20.: In the Books of Mr. Yogesh

Opening Statement of Affairs as on 1st Apr, 2009
Amount Amount
Liabilities Assets
` `
Sundry Creditors 36,000 Machinery 60,000
Bills Payable 16,500 Furniture 9,000
Capital (Balancing Figure) 2,10,000 Stock 60,000
Sundry Debtors 90,000
Bank Balance 36,000
Cash Balance 7,500
2,62,500 2,62,500

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Closing Statement of Affairs as on 31st Mar, 2010

Amount Amount
Liabilities Assets
` `
Sundry Creditors 60,000 Machinery 90,000
Bills Payable 27,000 Furniture 9,000
Capital (Balancing Figure) 2,58,000 Stock 90,000
Sundry Debtors 1,20,000
Bank Balance 27,000
Cash Balance 9,000
3,45,000 3,45,000

Statement of Profit or Loss for the year ended 31st Mar, 2010
Amount Amount
Particulars
` `
Capital at the End of the Year 2,58,000
Add: Drawings 22,500
2,80,500
Less: Additional Capital Introduced During the Year 7,500
Adjusted Closing Capital 2,73,000
Less: Capital at the Beginning of the Year 2,10,000
Trading Profit or Profit Before any Adjustments 63,000
Less: Depreciation on Furniture 900
Depreciation on Machinery 6,750
Reserve for Doubtful Debts on Debtors 2,400
Overvaluation of Stock 15,000 25,050
Net Profit for the Year 37,950

Solution to Practice Q.21.: In the Books of Mr. Premnath

Opening Statement of Affairs as on 01st Apr, 2009
Amount Amount
Liabilities Assets
` `
Creditors 20,000 Cash Balance 12,000
10% Bank Loan 20,000 Bank Balance 26,000
Capital (Balancing Figure) 66,000 Sundry Debtors 20,000
Stock 24,000
Furniture 24,000
1,06,000 1,06,000

Closing Statement of Affairs as on 31st Mar, 2010

Amount Amount
Liabilities Assets
` `
Creditors 20,000 Cash Balance 13,000
10% Bank Loan 20,000 Bank Balance 30,000
Capital (Balancing Figure) 79,000 Sundry Debtors 26,000
Stock 26,000
Furniture 24,000
1,19,000 1,19,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Statement of Profit or Loss for the year ended 31st Mar, 2010
Amount Amount
Particulars
` `
Capital at the End of the Year: 79,000
Add: Drawings: Life Insurance Premium 10,000
Goods for Personal Use 5,000 15,000
94,000
Less: Additional Capital Introduced During the Year 15,000
Adjusted Closing Capital 79,000
Less: Capital at the Beginning of the Year 66,000
Trading Profit or Profit Before any Adjustments 13,000
Add: Overvaluation of Creditors 2,000
15,000
Less: Written Off Bad Debts 1,000
Reserve for Doubtful Debts 1,250
Depreciation on Furniture 1,200
Interest on Loan 2,000
Interest on Capital 6,975 12,425
Net Profit for the Year 2,575

Solution to Practice Q.22.: In the Books of Mr. Anant

Opening Statement of Affairs as on 1st Apr, 2012
Amount Amount
Liabilities Assets
` `
Outstanding Rent 7,000 Furniture 11,000
Creditors 28,500 Debtors 37,000
Stock in Trade 17,000
Capital (Balancing Figure) 49,500 Bank Balance 20,000
85,000 85,000
st
Closing Statement of Affairs as on 31 Mar, 2013
Amount Amount
Liabilities Assets
` `
Outstanding Rent 10,000 Investments 14,000
Bank Overdraft 12,000 Furniture 21,000
Creditors 33,500 Debtors 52,000
Stock in Trade 21,000
Capital (Balancing Figure) 82,500 Bank Balance 30,000
1,38,000 1,38,000
st
Statement of Profit or Loss for the year ended 31 Mar, 2013
Amount Amount
Particulars
` `
Capital at the End of the Year 82,500
Add: Drawings (for personal use) 6,000
88,500
Less: Additional Capital Introduced During the Year 17,000
Adjusted Closing Capital 71,500
Less: Capital at the Beginning of the Year 49,500
Trading Profit or Profit Before any Adjustment 22,000
Less: Depreciation on Furniture 800
Bad debts 2,000
Reserve for doubtful debts 5,000 7,800
Net Profit for the Year 14,200

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Target Publications Pvt. Ltd. Chapter 08: Single Entry System

Solution to Practice Q.23.: In the Books of Miss. Urvi

Opening Statement of Affairs as on 1st Apr, 2012
Amount Amount
Liabilities Assets
` `
Creditors 10,000 Cash Balance 6,000
10% Bank Loan 10,000 Bank Balance 13,000
Sundry Debtors 10,000
Capital (Balancing Figure) 33,000 Stock 12,000
Furniture 12,000
53,000 53,000
st
Closing Statement of Affairs as on 31 Mar, 2013
Amount Amount
Liabilities Assets
` `
Creditors 10,000 Cash Balance 6,500
10% Bank Loan 10,000 Bank Balance 15,000
Sundry Debtors 13,000
Capital (Balancing Figure) 39,500 Stock 13,000
Furniture 12,000
59,500 59,500
st
Statement of Profit or Loss for the year ended 31 Mar, 2013
Amount Amount
Particulars
` `
Capital at the End of the Year 39,500
Add: Drawings − Life Insurance Premium 5,000
− Goods for personal use 2,500 7,500
47,000
Less: Additional Capital Introduced During the Year 7,500
Adjusted Closing Capital 39,500
Less: Capital at the Beginning of the Year 33,000
Trading Profit or Profit Before any Adjustment 6,500
Add: Overvaluation of Creditors 1,000
7,500
Less: Interest on Capital (3,300 + 375) 3,675
Written off Bad debts 500
Reserve for Bad debts 625
Depreciation on Furniture 600
Interest on Loan 1,000 6,400
Net Profit for the Year 1,100

Solution to Practice Q.24.: In the Books of Firm

Closing Statement of Affairs as on 31st Mar, 2013
Amount Amount
Liabilities Assets
` `
Sundry Creditors 50,000 Land and Building 2,00,000
Bank Overdraft 15,000 Plant and Machinery 1,00,000
Capital (Balancing Figure) 3,32,000 Sundry Debtors 30,000
Stock 12,000
Cash in Hand 25,000
Bills Receivable 10,000
Bank 20,000
3,97,000 3,97,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-keeping & Accountancy
Statement of Profit or Loss for the year ended 31st Mar, 2013

Amount Amount
Particulars
` `
Capital at the End of the Year 3,32,000
Add: Drawings During the Year 19,300
Adjusted Closing Capital 3,51,300
Less: Capital at the Beginning of the Year 3,00,000
Trading Profit or Profit Before any Adjustments 51,300
Less: Depreciation on Plant & Machinery 10,000
Bad Debts 1,000 11,000
Net Profit for the Year 40,300
Ram 16,120
Shyam 16,120
Rohan 8,060

Solution to Practice Q.25.: In the Books of Firm

Opening Statement of Affairs as on 1st Apr, 2012

Amount Amount
Liabilities Assets
` `
Sundry Creditors 20,000 Land & Building 60,000
10% Bank Loan 15,000 Plant & Machinery 80,000
Bills Payable 7,000 Furniture 20,000
Capital (Balancing Figure) 2,20,000 Sundry Debtors 40,000
Stock 22,000
Cash in Hand 12,000
Cash at Bank 20,000
Bills Receivable 8,000

2,62,000 2,62,000

Closing Statement of Affairs as on 31st Mar, 2013

Amount Amount
Liabilities Assets
` `
Sundry Creditors 10,000 Land & Building 60,000
Bills Payable 4,000 Plant & Machinery 80,000
10% Bank Loan 15,000 Furniture 20,000
Capital (Balancing Figure) 2,72,000 Sundry Debtors 60,000
Stock 22,000
Cash in Hand 32,000
Cash at Bank 15,000
Bills Receivable 12,000

3,01,000 3,01,000

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Target Publications Pvt. Ltd. Chapter 08: Single Entry System

Statement of Profit or Loss for the year ended 31st Mar, 2013
Amount Amount
Particulars
` `
Capital at the End of the Year 2,72,000
Add: Drawings During the Year 25,000
2,97,000
Less: Additional Capital Introduced During the Year 30,000
Adjusted Closing Capital 2,67,000
Less: Capital at the Beginning of the Year 2,20,000
Trading Profit or Profit Before any Adjustments 47,000
Add: Interest on Drawings 1,250
Undervaluation of Stock 2,000 3,250
50,250
Less: Interest on Capital 27,300
Depreciation on Plant & Machinery 8,000
Depreciation on Furniture 4,000
Bad Debts 1,000
Reserve for Bad & Doubtful Debts 2,950 43,250
Net Profit for the Year 7,000
Anand 4,200
Mahesh 2,800

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