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Proprietory concerns
1. Rao commenced business on 1st April,06 with cash of Rs. 20,000. On 1st April Oct, 06; he
introduced a further capital of Rs.5,000 .During the year he with drew Rs.400 p.m. for personal
use. On 31st march, 07 his asset and liabilities were:
Stock in trade 20,000
Debtor 15,000
Furniture 4,000
Cash at bank 3,000
Unpaid expense 1,000
Sundry creditors 8,000
Prepare closing statement of affairs and profit earned by Mr.Rao for the year ended 31/3/07.
Ram had withdrawn Rs.5000 for personal expenses and Rs. 4000 for son’s marriage. Out of
business funds, he had also purchased a residential building costing Rs.20000; which is not
shown in the above balance. Additions to Machinery were made on 1/04/06. Dep at 10 %p.a.
Should be provided on plant and machinery.
Find out Ram’s net profit for the year ended 31st march 07.
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4. Ash keeps her books on single entry & following information is disclosed.
Particulars 31.3.06 31.3.07
Cash 18,000 27,000
Stock 15,000 18,750
Debtors 30,000 45,000
Furniture 7,500 7,500
Sundry creditors 26,250 31,500
Bills payable - 9,000
Loan from ‘y’ - 3,000
Investments - 15,000
Miss Ash transferred Rs150 each month during first half year and Rs.100 each month for
the remaining period from her business to her private banking account by way of
drawing, and took away Rs.350 worth of goods for private use. She sold her private car
for Rs.3, 500 and proceeds were utilised for business. Furniture to be depreciated by 10%
and Reserve for Doubtful debts to be maintained at 5% on debtors.
Prepare opening and closing statement of affairs and also profit and loss statement for the
year ending 31/03/07.
5. Mr.Mukesh maintain single entry books of accounts. From the following details,
determine profit for the year and statement of affairs at the end of year:
Rs.1000 (cost) furniture was sold for Rs.5,000 on 1st April,06 ; 10% depreciation is to be charged
on furniture . Mr.Mukesh has drawn Rs.1000 per month and Rs.2,000 was invested in 2006.
Particulars 1.04.06 31.3.07
Stock 40,000 60,000
Debtors 30,000 40,000
Cash 2,000 1,000
Bank 10,000 5,000( O. D )
Creditors 15,000 25,000
Outstanding expenses 5,000 8,000
Furniture(cost) 3,000 2,000
Bank balance on 1st April 06 is as per cash book , but the bank overdraft on 31.03.07 is as
per bank statement . Rs2,000 cheques drawn in March 07 have not been encashed with in
the year . Provide interest on Drawing @ 10%p.a.
6. Mr. Ganesh keeps his books by single entry method. His financial position on 1.01.03
and 1.1.04 was as under.
Particulars 1.1.04 31.12.04
Cash 10,000 16,000
Bank 20,000 36,000
Stock 16,000 24,000
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8. Premjeet a trader keeps his books by the single entry Method. His financial position on
1st April 06 and 31.3.07 were as follows:
Particulars 1.04.06 31.03.07
Cash in hand 1,500 1,600
Bank balance 1,200(Dr.) 1,800(Cr.)
Stock in trade 4,000 4,650
Debtors 3,400 3,800
Creditors 2,400 3,600
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9. Mr.Gopal maintained his books on single entry. The following statement of affairs had
been prepared as on 31.03.06
Liabilities Amt Asset Amt
Capital account 28,000 Leasehold land 2,075
Sundry creditors 3,170 Plant and Machinery 4,940
Bill payable 2,150 Stock in trade 9,673
Book debts 15,550
Cash in hand 1,082
33,320 33,320
On 31.03.07 it was learnt that he had introduced further capital of Rs1,000 on 1st july,06
and he drawn Rs1,580 on various dates during the year.
It was also ascertained that the proprietor had taken Rs.75 worth of goods for his own use.
Statement prepared on the same date disclosed that book debts were Rs.14,640,
Creditors were Rs.2,309 and Bills payable were Rs.1,775.
The stock was valued at Rs.11,417 and cash in hand amounted Rs.917 on the same date.
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SINGLE ENTRY “THE HOME OF TEXT”
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