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Illustrations of single entry system



Illustration 1
      Mr. Pradeep has a business of selling garments. His final extracts of all accounts are stated below.
      Particulars                                                    1.04.2011                     31.03.2012
Sundry Debtors                                                  30000                            37000
Stock                                                                 15000                            18000
Sundry creditors                                                 25000                            30000
Cash                                                                  10000                            12000
Machinery                                                          12000                            10800
Furniture                                                            18000                            16200
      Ascertain the Opening and Closing capitals and prepare the Statement of profit or loss.
Solution
Calculation of Opening Capital:
STATEMENT OF AFFAIRS OF MY. Pradeep AS ON 1.04.2011

LIABILITIES


RS.

ASSETS

RS.
Sundry Creditors

Capital (Opeining) B/F
25000

60000
Sundry Debtors
Stock
Cash
Machinery
Furniture
30000
15000
10000
12000
18000




Total


85000


Total

85000



Calculation of Closing Capital:
STATEMENT OF AFFAIRS OF MY. Pradeep AS ON 1.04.2011

LIABILITIES


RS.

ASSETS

RS.
Sundry Creditors

Capital (Closing) B/F
30000

64000
Sundry Debtors
Stock
Cash
Machinery
Furniture
37000
18000
12000
10800
16200




Total


94000


Total

94000


Calculation of Profit or Loss
STATEMENT OF PROFIT OR LOSS OF MR. Pradeep DURING THE YEAR 2011-12
Closing Capital                                                                                            64000
Add: Drawings                                                                                               nil
                                                                                                                     64000
Less: Additional Capital                                                                                nil
Adjusted Closing Capital                                                                            64000
Less: Opening Capital                                                                                60000
Profit during 2011-12                                                                                    4000




Illustration 2
Mr. Rahim has a business of selling electrical items. His final extracts of all accounts are stated below.
      Particulars                                                    1.04.2011                     31.03.2012
Sundry Creditors                                                  60000                           52520
Sundry Debtors                                                    33205                           32230
Stock                                                                   15315                           16212
Cash                                                                    15000                           21130
Furniture                                                              23000                           22500   
                                                                     
   Mr. Rahim draws from business for his personal use Rs.1000/- and introduced addition capital of Rs.1200/-.  Ascertain the Opening and Closing capitals and prepare the Statement of profit or loss.
Solution


Calculation of Opening Capital:
STATEMENT OF AFFAIRS OF MY. Rahim AS ON 1.04.2011

LIABILITIES


RS.

ASSETS

RS.
Sundry Creditors

Capital (Opeining) B/F
60000

28520
Sundry Debtors
Stock
Cash
Furniture
33205
15315
15000
25000




Total


88520


Total

88520



Calculation of Closing Capital:
STATEMENT OF AFFAIRS OF MY. Rahim AS ON 1.04.2011

LIABILITIES


RS.

ASSETS

RS.
Sundry Creditors

Capital (Closing) B/F
52250

39822
Sundry Debtors
Stock
Cash
Furniture
32230
16212
21130
22500





Total


92072


Total

92072


Calculation of Profit or Loss
STATEMENT OF PROFIT OR LOSS OF MR. Rahim DURING THE YEAR 2011-12
Closing Capital                                                                                             39822
Add: Drawings                                                                                                1000
                                                                                                                       40822
Less: Additional Capital                                                                                 1200
Adjusted Closing Capital                                                                              39622
Less: Opening Capital                                                                                  28520
Profit during 2011-12                                                                                    11102



Illustration 3
      Mr. Rahul has a business of manufacturing plates for domestic use. His final extracts of all accounts are stated below.
      Particulars                                                    1.04.2011                     31.03.2012
Sundry Debtors                                                     33429                            32114
Stock                                                                    22611                            21216
Sundry creditors                                                    23347                            22120
Cash                                                                     14320                            16200
Machinery                                                             25700                            23130
Furniture                                                               18000                            15300
Bills Payable                                                         10200                              7220
Bills Receivable                                                     12100                            20700
      Mr. Rahul draws Rs.8100/- for his personal uses and introduces Rs.7200/- as additional Capital. Provision for Depreciation 10% on machinery and 15% on furniture. Ascertain the Opening and Closing capitals and prepare the Statement of profit or loss.

Solution


Calculation of Opening Capital:
STATEMENT OF AFFAIRS OF MY. Rahul AS ON 1.04.2011

LIABILITIES


RS.

ASSETS

RS.
Sundry Creditors
Bills Payable

Capital (Opeining) B/F
23347
10200

92613
Sundry Debtors
Stock
Cash
Machinery
Furniture
Bills Receivable
33429
22611
14320
25700
18000
12100




Total


126160


Total

126160


Calculation of Closing Capital:
STATEMENT OF AFFAIRS OF MY. Rahul AS ON 1.04.2011

LIABILITIES


RS.

ASSETS

RS.
Sundry Creditors
Bills Payable

Capital (Closing) B/F
22120
7220

94712
Sundry Debtors
Stock
Cash
Machinery                       23130
Less: Depreciation           2313     
Furniture                         15300
Less:Depreciation            2295
Bills Receivable
32114
21216
16200

20817

13005
20700



Total


124052


Total

124052


Calculation of Profit or Loss
STATEMENT OF PROFIT OR LOSS OF MR.Rahul DURING THE YEAR 2011-12
Closing Capital                                                                                              94712
Add: Drawings                                                                                                8100
                                                                                                                      102812
Less: Additional Capital                                                                                 7200
Adjusted Closing Capital                                                                              95612
Less: Opening Capital                                                                                  92613
Profit during 2011-12                                                                                      2999

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