Chaman maintains his books according to Single Entry System. Following figures were available from the books for the six month ended 31st December, 2018:`{:(," 1st July, 2018 (Rs.)"," 31st December, 2018 (Rs.)"),("Plant and Machinery"," 1,50,000"," 1,40,000"),("Debtors"," 65,000"," 60,000"),("Cash and Bank balances"," 25,000"," 31,000"),("Stock"," 40,000"," 45,000"),("Creditors"," 9,000"," 10,000"):}` Adjustments: (a) He had withdrawn Rs. 200 in the beginning of every month for household purposes. (b) Depreciation on Plant and Mechinery `@10%` p.a. (c) Further Bad Debts Rs. 5,000 and Provision for Doubtful Debts to be created `@2%`. During the period, salaries have been prepaid by Rs. 500 while wages outstanding were Rs. 1,000. (e) Interest on drawings to be reckoned `@6%` p.a. You are required to prepare the Statement of Profit of Loss for the half year ended 31st December, 2018, followed by Revised Statement of Affairs as on that date.

Chaman maintains his books according to Single Entry System. Following

1.	Chaman maintains his books according to Single Entry System. Following figures were available from the books for the six month ended 31st December, 2018:`{:(," 1st July, 2018 (Rs.)"," 31st December, 2018 (Rs.)"),("Plant and Machinery"," 1,50,000"," 1,40,000"),("Debtors"," 65,000"," 60,000"),("Cash and Bank balances"," 25,000"," 31,000"),("Stock"," 40,000"," 45,000"),("Creditors"," 9,000"," 10,000"):}` Adjustments: (a) He had withdrawn Rs. 200 in the beginning of every month for household purposes. (b) Depreciation on Plant and Mechinery `@10%` p.a. (c) Further Bad Debts Rs. 5,000 and Provision for Doubtful Debts to be created `@2%`. During the period, salaries have been prepaid by Rs. 500 while wages outstanding were Rs. 1,000. (e) Interest on drawings to be reckoned `@6%` p.a. You are required to prepare the Statement of Profit of Loss for the half year ended 31st December, 2018, followed by Revised Statement of Affairs as on that date.
Answer» Correct Answer - Capital (Opening Capital, 1st July 2018 ) - Rs. 2,71,000; Total of Statement of Affairs before Adjustments (31st December, 2018) - Rs. 2,76,500; Capital - Rs. 2,65,500; Capital (after all adjustments )- Rs. 2,52,400; Gross Loss = Rs. 2,65,500 + 1,200 (Drawings) - Rs. 2,71,000 = Rs. 4,300; Net Loss = Rs. 17,379. 1. Interest on Drawings: On Rs. 200 for 6 months = On Rs. 1,200 for 1 month On Rs. 200 for 5 month = On Rs. 1,000 for 1 month On Rs. 200 for 4 months = On Rs. 800 for 1 month On Rs. 200 for 3 months = On Rs. 600 for 1 month On Rs. 200 for 2 months = On Rs. 400 for 1 month On Rs. 200 for 1 month = On Rs. 200 for 1 month Or On Rs. 4,200 for 1 month Interest = Rs. `4,200xx6//100xx1//2=Rs.21.` 2. Depraciation on Plant = Rs. `1,40,000xx10//100xx6//12=Rs.7,000`. 3. Provision for Doubtful Debts = `2//100(Rs. 60,000-Rs.5,000)=Rs. 1,100.` Net Loss = Rs. 4,300 (Gross Loss) `+` Rs. 7,000 (Depreciation) `+` Rs. 5,000 (Bad Debts) `+` Rs. 1,100 (Provision for Doubtful Debts) `-` Rs. 21 (Interest on Drawings) = Rs. 17,379.

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Kuldeep, a general merchant, keeps his accounts on Single Entry System. He wants to know the results of his business on 31st March, 2019 and for that following information is available: `|{:(,,"1st April, 2018 (Rs.)","31st March, 2019 (Rs.)"),("Cash in Hand",.......................................................,"1,50,000","1,75,000"),("Bank Balance",.......................................................,"7,50,000","8,00,000"),("Furniture",.......................................................,"1,00,000","1,00,000"),("Stock",.......................................................,"5,00,000","6,50,000"),("Creditors",.......................................................,"3,50,000","4,00,000"),("Debtors",.......................................................,"2,50,000","3,00,000"):}|` During the year, he had withdrawn Rs. 5,00,000 for his personal use and invested Rs. 2,50,000 as additional capital. Calculate his profits on 31st March, 2019 and prepare the Statement of Affairs as on that date.
Aditya a retailer, has not maintained proper books of account but it has been possible to obtain the following details: `{:(,," Last Year (Rs.)"," This Year (Rs.)"),("Trade Creditors","......................................"," 6,270"," 5,890"),("Loan from Naresh","......................................"," 5,000"," 5,000"),("Stock","......................................"," 12,350"," 11,980"),("Cash in Hand","......................................"," 570"," 650"),("Shop Fltting","......................................"," 7,250"," 7,800"),("Trade Debtors","......................................"," 5,280"," 4,560"),("Bank Balance","......................................"," 3,990"," 4,130"):}` Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that: ltbr. (a) Shop Fittings are to be depreciated by Rs. 780. (b)
Mention three characteristics of Single Entry System.
If the gross profit is `20%` of cost of goods sold and sales are Rs. 1,00,000, the amount of gross profit will beA. Rs. 20,000.B. Rs. 25,000.C. Rs. 16,667.D. None of these.
On 1st April, 2018, X started a business with Rs. 40,000 as his capital. On 31st March, 2019, his position was as follows: `{:(,," Rs."),("Creditors","....................................................","30.000"),("Bills Payable","....................................................","10,000"),("Bank","....................................................","10,000"),("Debtors","....................................................","50,000"),("Stock","....................................................","40,000"),("Plant","....................................................","68,000"),("Furniture","....................................................","12,000"):}` During the year 2018-19, X drew Rs. 24,000. On 1st October, 2018, he introduced further capital amounting to Rs. 30,000. You are required to ascertain proffit or loss made by him during the year 2018-19. Adjustments: (a) Plant is to be depreciated to `10%`. (b) A provision of `5%` is to be made against debtors. Also prepare the Statement of Affairs as on 31st March, 2019.
Calculate the stock at the end:
Define Single Entry System. What are the defects of this system?
Bills Payable honoured during the year will be debited toA. Cash Account.B. Bills Payable Account.C. Creditors Account.D. None of these.
Closing balance of creditors is determined by preparingA. Total Debtors Account.B. Total Creditors Account.C. Bills Receivable Account.D. Bills Payable Account.
Sales are calculated by addingA. Cash sales and cash received from debtors.B. Credit sales and cash received from debtors.C. Cash sales and credit sales.D. None of these.

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