This e-Lecture was Recorded on:

April 5, 2013

Accounts from Incomplete Records

Single Entry System
Module III of IV
CA Intermediate (IPC) Course Paper 1 Accounting Chapter 10
CA. Prathap. S.S

The Institute of Chartered Accountants of India

Disclaimer
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This lecture has been delivered by faculty members to supplement the

Study Material, Practice Manual and other content

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The content of this video lecture has not been specifically discussed
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expressed herein may not be taken to necessarily represent the views
of the Council or any of its committees

This e-Lecture was Recorded on:

April 5, 2013

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Agenda Module III

To learn to do full fledged 16 marks sum in
Single Entry .
With the data provided :
To prepare the Opening Balance Sheet ,
ascertain the Capital employed
To prepare the Trading and P & L A/c
To prepare the Closing Balance Sheet
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PCC , Nov 2008

PE II , Nov 2006
Lucky Sum
(16 marks)
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Lucky Sum
Lucky does not maintain proper books of
accounts . However he maintains a record of his
bank transactions and also is able to give the
following information from the following
information from which we request to prepare
his final accounts for the year 2003 :

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Opening and Closing B/s

1.1.2003 31.12.2003
Debtors
Creditors
Stock
Bank Balance
Fixed Assets
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1,01,500
50,000
7,500

46,000
62,500
50,000
9,000
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Luckys Bank Transactions

Received from debtors
3,40,000
Additional Capital brought in
5,000
Sale of fixed Assets(book value Rs.2500)
1,750
Paid to Creditors
2,80,000
Expenses paid
49,250
Personal drawings
25,000
Purchase of fixed Assets
5,000
Cost of goods sold
2,60,000
Goods are sold at cost plus 25% .
No Cash Transactions took place during the year .

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Approach to the Sum

Prepare opening balance sheet .
T A/cs has to be prepared for the missing
entries.
Prepare Trading , P&L A/c for the y.e.
31.03.2003
Missing figures are Purchase and Sales.
Open Sundry Creditor A/c and Sundry Debtor
A/c.
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Approach to the Sum

For gross profit the relationship is 1/4th of cost
of goods sold.
Filling up the details provided we get the
following balance sheet and trading account.

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Balance Sheet of Lucky as on

01.01.2003
Opening Capital

Sundry Creditors

? Sundry Debtors
Stock
Bank
? Fixed Assets

1,02,500
50,000
?
7,500

Total
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Trading A/c of Lucky as on 31.03.2003

To Opening Stock 50,000 By Sales

To Purchase
?
To Gross profit c/d
By Closing Stock
(1/4th of cost )

62,500

Total

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Sundry Creditor A/c

To Bank
?
To c/s
46,000
balance
Total

By o/p balance
By Credit
Purchase

?
?

Sundry Debtors A/c

To o/p
1,02,500
balance
To Credit Sales
?
Total
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By Bank

By bal c/d

?
13

We will now deal with the details of

Luckys bank transactions one by one , giving
journal entries and posting it in their
respective T a/cs.

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Amount received from debtors

Rs. 3,40,000
Bank A/c
Dr.
To Sundry debtors A/c
Bank A/c
To Opening balance
To Sundry Debtors

3,40,000
3,40,000

?
3,40,000

Debtors A/c
To Opening balance
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1,02,500

By Bank

3,40,000
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Additional capital brought in

Bank A/c
To Capital A/c

Dr.

5,000
5,000

Bank A/c
To Opening balance
To Sundry Debtors
To Capital
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?
3,40,000
5,000
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Sale of Fixed Assets

Bank A/c
Loss on sale A/c
To Fixed Assets A/c

Dr.
Dr.

1,750
750
2,500

To Opening balance
To Sundry Debtors
To Capital
To sale of Fixed Asset

Bank A/c

?
3,40,000
5,000
1,750

Fixed Asset A/c

To opening balance

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7500 By bank
1750
By loss on sale of fixed asset 750
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Amount paid to Creditors

Sundry Creditors A/c
Dr.
To Bank A/c
Sundry Creditors A/c
To Bank

2,80,000

2,80,000
2,80,000
By O/pBal

Bank A/c
To Opening balance
To Sundry Debtors

2,80,000

3,40,000

To Capital

5,000

To sale of Fixed Asset

1,750

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By Sundry
Creditors

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Expenses Paid
Expenses A/c
To Bank A/c

Dr.

49,250
49,250

Bank A/c
To Opening balance
To Sundry Debtors

By Sundry
Creditors
3,40,000 By Expenses

To Capital

5,000

To sale of Fixed Asset

1,750

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2,80,000
49,250

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Amount drawn for personal use

Drawings A/c
To Bank A/c

Dr.

25,000
25,000

Bank A/c
To Opening balance

By Sundry
Creditors
3,40,000 By Expenses

2,80,000

To Capital

5,000 By Drawings

25,000

To sale of Fixed Asset

1,750

To Sundry Debtors

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49,250

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Fixed Asset Purchased

Fixed Asset A/c
To Bank A/c

Dr.

5,000
5,000

Bank A/c
To Opening balance

To Sundry Debtors
To Capital
To sale of Fixed Asset

By Sundry
2,80,000
Creditors
3,40,000 By Expenses
49,250
5,000 By Drawings
25,000
1,750 By Fixed asset
5,000

Fixed Asset A/c

To opening balance
To Bank

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7500 By bank
5,000 By loss on sale of fixed asset

1750
750
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Bank A/c
To Opening balance

62,500 By Sundry
Creditors
3,40,000 By Expenses

2,80,000

To Capital

5,000 By Drawings

25,000

To sale of Fixed Asset

1,750 By Fixed asset

To Sundry Debtors

4,09,250
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49,250
5,000
4,09,250
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Trading A/c of Lucky as on 31.03.2003

To Opening Stock 50,000 By Sales

To Purchase
?
To Gross profit c/d
By Closing Stock
(1/4th cost)
?

62,500

Total

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Calculation of Gross Profit

Gross Profit =
25 % on cost
COGS
=
2,60,000
G.P
=
1/4(2,60,000)
=
65,000
Trading A/c
To opening stock
To Gross Profit c/d
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50,000
65,000 By closing stock

62,500

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Calculation of ACS
Sales

=
=

2,60,000 + 65,000
3,25,000

Trading A/c
To opening stock
To Gross Profit

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50,000
65,000

By Sales
By closing stock

3,25,000
62,500

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Calculation of ACP
COGS
Purchases
Purchases
Purchases

=
O/p stock + Purchases C/s stock
=
COGS O/p Stock + C/s stock
=
2,60,000 + 62,500 - 50,000
=
2,72,500.
Trading A/c

To opening stock
To Purchases
To Gross Profit
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50,000
2,72,500
65,000

By Sales

3,25,000

By closing stock

62,500
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To opening stock
To Purchases

Trading A/c

50,000 By sales

3,25,000

2,72,500

To Gross profit c/d 65,000 By c/s stock

3,87,500

62,500
3,87,500

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Fixed Assets A/c

To opening balance 7500

By bank

1750

To bank

By loss on sale of
fixed asset
By depreciation

750
1000

By c/s

9000

5,000

12,500
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12,500
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Profit & Loss A/c

To expenses
To loss of sale
To depreciation
To Net profit c/d

49,250 By gross
750 profit b/d
1,000
14,000
65,000

65,000

65,000

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Sundry Debtors A/c

To Opening bal

1,02,500

By Bank

3,40,000

To Credit Sales

3,25,000

By Balance c/d

87,500

427500

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427500

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Sundry Creditors A/c

To Bank

2,80,000

By Opening bal

53,500

To c/s bal

46,000

By Credit purchase

2,72,500

3,26,000

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3,26,000

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B/S of Lucky as on 01.01.2003

Opening Capital 1,69,000 S.Debtors
Stock
Bank
S.Creditors
53,500Fixed Assets
2,22,500

1,02,500
50,000
62,500
7,500
2,22,500
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B/s of Lucky as on 31.12.03

Capital
1,69,000
S. Debtor
(+)add.cap
5,000
Stock
(+)profit
14,000
Bank
(-)drawings 25,000
1,63,000 Assets
S. Creditor

9,000

46,000
2,09,000

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87,500
62,500
50,000

2,09,000
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Summary
We learnt how to proceed line by line into the
sum .
All the data given in the form of balances have
first to be incorporated in the respective T
accounts , or the opening Balance Sheet /
Closing Balance Sheet.
Concentrate first on completing the Trading
account , then move on to P & L A/c .
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Summary (contd..)
All the T accounts opened have to be closed .
Complete the Closing Balance Sheet , making
sure all the items in the Opening Balance
Sheet have been dealt with .

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Thank You
Do keep moving forward

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