Accounts from Incomplete Records

From the following income and expenditure account of a Club for the year-ending 31 March, 2024, you are required to prepare receipt and payment account for the year ending 31 March, 2024 and Balance Sheet as on 1 April, 2023. INCOME AND EXPENDITURE ACCOUNT For the year ending 31st March, 2024 Expenditure Amount Income Amount To Lawn Maintenance To General Expenses To Stationery (depreciation) To Depreciation on Sports Material To Honorarium To excess of income over expenditure 42,000 13,000 1,500 22,000 10,400 44,500 By Subscription By Admission Fees By Sports Material (sale of 2nd Hand Material) By Entertainment 1,05,000 12,000 2,400 14,000 1,33,400 1,33,400 Additional information 1/04/2023 31/03/2024 Cash at bank 60,000 - Stock of sports material 30,000 - Tournament Fund (after deducting tournament expenses of 14,000) - 6,000 Donations for club Building - 1,40,000 Subscription Due 10,000 15,000 Stationery Stock 4,000 - Stationery was depreciated by 25% and Sports material by 50%, [Jan. 2025, 10 Marks]

Statement of Affairs and Balance Sheet.

Single Entry System & Double Entry System

In net worth method profit or loss of the business is calculated by preparing trading and profit & loss account.

As per Companies Act, 2013, a company may prepare its records under single entry system.

Closing Capital means Opening Capital + Additional Capital + Drawings Profit.

Total Debtors account is prepared in conversion method of Single Entry system.

A Trial balance can be prepared under conversion method of Single Entry system.

Harshit Traders are carrying on the retail business of electrical goods. They keep their books of account under single entry system. The Balance Sheet as on 31st March, 2023 was as follows: Liabilities Amount Assets Amount Capital A/c Trade Creditors Salary payable 6,05,000 75,200 9,000 Motor Vehicle Furniture Stock in Trade Trade debtors 6% investments Cash in hand & at bank 1,10,000 73,500 1,70,800 1,45,400 60,000 1,29,500 6,89,200 6,89,200 The summary of Cash and Bank Book for the year ended 31st March, 2024 was given as below: Receipts Amount Payments Amount Cash in hand & at bank on 1st April, 2023 Cash Sales Receipts from Trade Debtors Interest on investments 1,29,500 10,22,400 85,52,000 3,600 Cash Purchases Payment to trade creditors Salaries Rent & Taxes Sundry expenses Drawings Cash in hand & at bank 31st March, 2024 9,48,400 75,45,000 4,12,800 2,51,600 1,38,400 2,40,000 1,71,300 97,07,500 97,07,500 Additional Information: (i) Gross Profit ratio of 12.5% on Sale is maintained throughout the year. (ii) During the year, discount allowed to Trade debtors was for 62,500 and discount received from Trade Creditors amounted to * 35,000. (iii) As on 31st March, 2024, the closing balance of Trade Debtors and Trade Creditors were 2,20,500 and 1,05,600 respectively. (iv) On 31st March, 2024 an amount of 14,800 was outstanding towards Salary. (v) Depreciation @ 10% p.a. to be charged on Motor Vehicle and Furniture. You are required to prepare Trading and Profit & Loss account for the year ended 31st March 2024, and Balance Sheet as on that date. [June 2024, 8 Marks]

Following information relates to Mr. Prem who maintains his books under single entry system. He is not able to ascertain the amount of bad debts incurred by him and seeks your help. Debtors as on 01.04.2023 6,50,000 Debtors as on 31.03.2024 8,50,000 Sale for FY 2023-24 is 16,00,000 out of which 80% is on credit. Payment received during the year is 7,50,000 out of which cheques of 18,000 were dishonoured. Bills of exchange accepted by customers 2,90,000. Discount allowed is 1% of the credit sale. [Sept. 2024, 5 Marks]

Following is the incomplete information of Moonlight Traders: The following balances are available as on 31.03.2023 and 31.03.2024. Balances 31.03.2023 31.03.2024 Land Plant and Machinery Office equipment Debtors Creditors for purchases Creditors for office expenses Stock Long term loan from FBI @12% Bank 5,00,000 2,20,000 1,05,000 ? 95,000 20,000 ? 1,60,000 25,000 5,00,000 3,30,000 85,000 2,25,000 ? 15,000 65,000 1,00,000 ? Other information Amount Collection from debtors Payment to creditors for purchases Payment to office expenses (excluding interest on loan) Salary paid Selling expenses Cash sales Credit sales (80% of total sales) Credit purchases Cash purchases (40% of total purchases) GP Margin at cost plus 25% Discount Allowed Discount Received Depreciation to be provided as follows: Plant and Machinery Office Equipment 9,25,000 5,25,000 42,000 32,000 15,000 2,50,00 5,40,000 5,500 4,500 10% 15% Other adjustments: (i) On 01.10.2023 they sold machine having Book Value 40,000 (as on 31.03.2023) at a loss of 15,000. New machine was purchased on 01.01.2024, (ii) Office equipment was sold at its book value on 01.04.2023. (iii) Loan was partly repaid on 31.03.2024 together with interest for the year. You are required to prepare Trading, Profit & Loss Account and Balance Sheet as on 31.03.2024. [RTP Jan. 2025]

Varun does not maintain proper books of account. However, he maintains a record of his bank transactions and also is able to give the following information from which you are requested to prepare trading and profit and loss account for the year 2024: 01.01.2024 31.12.2024 Stock 50,000 62,500 Fixed Assets 7,500 9,000 Details of his Bank transactions were as follows: Sale of Fixed Assets (book value 2,500) 1,750 Expenses paid 49,250 Purchase of fixed assets 50,000 Number of cash transactions took place during the year. Goods are sold at cost plus 25%. Cost of goods was 2,60,000. [MTP Jan 2025]

From the following income and expenditure account of a Club for the year-ending 31 March, 2024, you are required to prepare receipt and payment account for the year ending 31 March, 2024 and Balance Sheet as on 1 April, 2023. INCOME AND EXPENDITURE ACCOUNT For the year ending 31st March, 2024 Expenditure Amount Income Amount To Lawn Maintenance To General Expenses To Stationery (depreciation) To Depreciation on Sports Material To Honorarium To excess of income over expenditure 42,000 13,000 1,500 22,000 10,400 44,500 By Subscription By Admission Fees By Sports Material (sale of 2nd Hand Material) By Entertainment 1,05,000 12,000 2,400 14,000 1,33,400 1,33,400 Additional information 1/04/2023 31/03/2024 Cash at bank 60,000 - Stock of sports material 30,000 - Tournament Fund (after deducting tournament expenses of 14,000) - 6,000 Donations for club Building - 1,40,000 Subscription Due 10,000 15,000 Stationery Stock 4,000 - Stationery was depreciated by 25% and Sports material by 50%, [Jan. 2025, 10 Marks]

Statement of Affairs and Balance Sheet.

Single Entry System & Double Entry System

In net worth method profit or loss of the business is calculated by preparing trading and profit & loss account.

As per Companies Act, 2013, a company may prepare its records under single entry system.

Closing Capital means Opening Capital + Additional Capital + Drawings Profit.

Total Debtors account is prepared in conversion method of Single Entry system.

A Trial balance can be prepared under conversion method of Single Entry system.

Harshit Traders are carrying on the retail business of electrical goods. They keep their books of account under single entry system. The Balance Sheet as on 31st March, 2023 was as follows: Liabilities Amount Assets Amount Capital A/c Trade Creditors Salary payable 6,05,000 75,200 9,000 Motor Vehicle Furniture Stock in Trade Trade debtors 6% investments Cash in hand & at bank 1,10,000 73,500 1,70,800 1,45,400 60,000 1,29,500 6,89,200 6,89,200 The summary of Cash and Bank Book for the year ended 31st March, 2024 was given as below: Receipts Amount Payments Amount Cash in hand & at bank on 1st April, 2023 Cash Sales Receipts from Trade Debtors Interest on investments 1,29,500 10,22,400 85,52,000 3,600 Cash Purchases Payment to trade creditors Salaries Rent & Taxes Sundry expenses Drawings Cash in hand & at bank 31st March, 2024 9,48,400 75,45,000 4,12,800 2,51,600 1,38,400 2,40,000 1,71,300 97,07,500 97,07,500 Additional Information: (i) Gross Profit ratio of 12.5% on Sale is maintained throughout the year. (ii) During the year, discount allowed to Trade debtors was for 62,500 and discount received from Trade Creditors amounted to * 35,000. (iii) As on 31st March, 2024, the closing balance of Trade Debtors and Trade Creditors were 2,20,500 and 1,05,600 respectively. (iv) On 31st March, 2024 an amount of 14,800 was outstanding towards Salary. (v) Depreciation @ 10% p.a. to be charged on Motor Vehicle and Furniture. You are required to prepare Trading and Profit & Loss account for the year ended 31st March 2024, and Balance Sheet as on that date. [June 2024, 8 Marks]

Following information relates to Mr. Prem who maintains his books under single entry system. He is not able to ascertain the amount of bad debts incurred by him and seeks your help. Debtors as on 01.04.2023 6,50,000 Debtors as on 31.03.2024 8,50,000 Sale for FY 2023-24 is 16,00,000 out of which 80% is on credit. Payment received during the year is 7,50,000 out of which cheques of 18,000 were dishonoured. Bills of exchange accepted by customers 2,90,000. Discount allowed is 1% of the credit sale. [Sept. 2024, 5 Marks]

Following is the incomplete information of Moonlight Traders: The following balances are available as on 31.03.2023 and 31.03.2024. Balances 31.03.2023 31.03.2024 Land Plant and Machinery Office equipment Debtors Creditors for purchases Creditors for office expenses Stock Long term loan from FBI @12% Bank 5,00,000 2,20,000 1,05,000 ? 95,000 20,000 ? 1,60,000 25,000 5,00,000 3,30,000 85,000 2,25,000 ? 15,000 65,000 1,00,000 ? Other information Amount Collection from debtors Payment to creditors for purchases Payment to office expenses (excluding interest on loan) Salary paid Selling expenses Cash sales Credit sales (80% of total sales) Credit purchases Cash purchases (40% of total purchases) GP Margin at cost plus 25% Discount Allowed Discount Received Depreciation to be provided as follows: Plant and Machinery Office Equipment 9,25,000 5,25,000 42,000 32,000 15,000 2,50,00 5,40,000 5,500 4,500 10% 15% Other adjustments: (i) On 01.10.2023 they sold machine having Book Value 40,000 (as on 31.03.2023) at a loss of 15,000. New machine was purchased on 01.01.2024, (ii) Office equipment was sold at its book value on 01.04.2023. (iii) Loan was partly repaid on 31.03.2024 together with interest for the year. You are required to prepare Trading, Profit & Loss Account and Balance Sheet as on 31.03.2024. [RTP Jan. 2025]

Varun does not maintain proper books of account. However, he maintains a record of his bank transactions and also is able to give the following information from which you are requested to prepare trading and profit and loss account for the year 2024: 01.01.2024 31.12.2024 Stock 50,000 62,500 Fixed Assets 7,500 9,000 Details of his Bank transactions were as follows: Sale of Fixed Assets (book value 2,500) 1,750 Expenses paid 49,250 Purchase of fixed assets 50,000 Number of cash transactions took place during the year. Goods are sold at cost plus 25%. Cost of goods was 2,60,000. [MTP Jan 2025]