SINGLE ENTRY SYSTEM:

Transcription

1 SINGLE ENTRY SYSTEM: A) In the year of formation: 1. Bharath a trader, does not maintain complete set of books of accounts. He started the business on st 1 January 2010 with 2 and. The position of his business on was as follows: in office 3,000,, at Bank 7,000, Bills (Dr.) 3,500, Sundry 1,,, 9,000 During the year he withdrew from the business for his domestic purposes and Goods 2,000. He also paid school fees of 2,000 of his children from the business cash. He invested additional capital of during the year He made addition to furniture on Charge depreciation on the opening at 10% p.a. and on (bought on ) at 5% p.a. Provide for doubtful debts at 10%. Salary incurred but not paid 2,000 and Commission earned but not received 1,000. Allow Interest on the opening capital at 5% p.a. Calculate the profit for the year ended and financial position as on that date. B. When the Opening Capital is given: st 2. Manoj keeps his books on Single Entry System. His position on 1 April, 1999 was as follows: Statement of Affairs as on in hand 3,300 3,000 at bank 5,200 80,000 Capital B/R 9,800 93,000 93,000 st His position on 31 March, 2000 was as follows:, Bills Payable, in hand 1,000, Bills Receivable, 1, 1, and Manoj's drawings during the year were. and were to be depreciated by 10%. Interest on Capital is to be allowed at 5% p.a. Ascertain the Profit or Loss for the year ended on and redraft the Statement of Affairs as on that date. 3. From the following details of business of Mr. Chandan, ascertain the profit or loss for the year th ended 30 June 2011 and financial position as on that date. Particulars in office Bank Bills of Exchange , ,000 3,000 (Dr.) (Cr.) ,000 26,000 (Cr.) (Dr.)

2 He invested further Capital on On , he sold his wife's Jewellery for and invested 1 in the business. He withdrew cash 1,000 p.m. from his business for his personal uses and Goods of 3,000 during the year. Adjustments: 1. Depreciate by 20% and by 5%. 2. Create RDC as 3% on. 3. Debts include irrecoverable debts 1, Provide for Doubtful Debts at 5% and Discount on at 2% 5. A bill of 1,000 was considered Doubtful, for it was decided to be provided 6. Interest on Bank Overdraft was outstanding for 2 months at 15% interest p.a. 7. Commission of 1,000 received in advance from a manufacturer. 8. Allow Interest on Capital at 6% p.a. ADMISSION OF A PARTNER: Case - A for Goodwill brought by the New Partner and withdrawn by the Old Partner: 1. Anil and Sunil are equal partners in a firm. Their Balance Sheet as on was as follows: Bills Payable Sundry Capital Accounts Anil Sunil 3,000 6 Sundry 2, , On they want to admit Rahul for ¼ share in future profit under the following conditions: a. He should bring in Rs. for Capital and Rs. 16,000 for Goodwill. b. Half of the Goodwill amount shall be withdrawn by old partners. c. and be written off by 10% each. d. Provide R.B.D. at 5% on. e. Make a provision for Legal Charges Rs f. are revalued at Rs. 33,000 Prepare: i) Revaluation Account, ii) Capital Accounts of Partners, iii) New Balance Sheet of the firm - II PUC April 2000 Case - B for Goodwill brought by the New Partner but retained: 2. Doctor and Vaidya were partners in a firm sharing equally. Their Balance sheet was as follows on Sundry Acceptances Capitals: Doctor Vaidya 4,500 Bills (Dr.) 60,400 Vehicle 50,400 Machinvery 1,35,300 13,000 26,500 7,800 1,35,300

3 On , Mr. Surgeon joined the firm on the following terms: 1. to be valued 10% less. 2. to be valued 20% more 3. Vehicle to be valued at 9, Create provision for bad debts by10% 5. to be valued at 21, Goodwill of the firm to be valued at 2 years purchase of average profit of the last 3 years. The profits of the firm for the last three years were - 23,000, 27,000 and. 7. Surgeon to bring 4 as his capital and the required amount towards goodwill for 1/3 share in the firm. Prepare: 1. Revaluation A/c, 2. Partners' Capital A/cs, c and 3. New Balance Sheet. Case - C Raising or Creation of Goodwill: 3. Journal and Ledger are partners in a firm. They share in the ratio of 2 : 3. The Balance Sheet of their firm as on was as follows: Trade Capital A/cs: Journal Ledger 19,000 1,1 Plant and Investment at Bank 31,000-2, ,000 1,1 They took Mr. Clerk as a partner for 1/5 share of profit on the following terms: 1. Clerk to bring as his share of capital. 2. Goodwill of the firm created at 3. were revalued as: Plant 3, 17,000, Investments 6,000, and 23, Maintain RBD at 10%. 5. A credit purchase of goods 1,000 is not recorded but the goods are already included in the. 6. Commission of 1,000 earned but not received 7. Salary 2,000 for June 2011 due but unpaid. Prepare Revaluation A/c, Capital A/cs and the Balance Sheet of the new firm. Case - D Creation of Goodwill and written off: 4. Earth and Moon are partners sharing in the ratio of 3 : 2. Following is the Balance sheet of their firm on Capital Accounts: Earth Moon Profit and Loss Appropriation A/c 2 80,000 Investments 2 9, ,200 16,000-1,200 14,800 1,000 80,000

4 On , they admitted Sun into the firm for ¼ share of future profit. The terms were: 1. Sun to bring of 26,000 and Investments of as his capital. 2. Goodwill of the firm to be value at 2 3. Goodwill to be written off immediately 4. and are to be valued at 32,000 and 7,000 respectively 5. to be written down by 1, RBD to maintained at 5% on debtors 7. agreed to allow discount of 1, The partners agreed to share in the ratio of 9 : 6 : 5. Prepare Revaluation A/c, Partners' Capital A/cs and Balance Sheet of the new firm. Retirement of a Partner: Case A Creation of Retiring Partner s Share of Goodwill: 1. Anjan, Bharath and Chandra were partners in a firm. They shared in the ratio of 2 : 2 :1. Their Balance Sheet on was as follows: Capitals: Anjan Bharath Chandra ,000 1 Prepaid Salary 1, 1 4 2,000 1, On the above date, Anjan retired from the firm on the following conditions: 1. Anjan's share of Goodwill 16,000 to be considered. 2. was under valued by 6, to be valued 10% less 4. to be valued at 33, Create Reserve for Doubtful Debts at 10%. 6. Create Reserve for Discount on at 10%. 7. Anjan to be paid 6,800 immediately on retirement and the balance in two yearly instalments with interest at 15% p.a. Prepare Profit and Loss Adjustment A/c, Partners Capital A/cs and the Balance Sheet of the new firm. Case 2: Considering only the Retiring Partner's share of Goodwill and written off: 2. Anna, Monna and Kanna were partners sharing profits in the ratio of 3 : 2 : 1 respectively. Their Balance Sheet as on was as follows: Capital: Anna Monna Kanna 2 2 1,31,000 in hand Motor Van 2,500 15, ,31,000

5 Monna retires on the date and the following adjustments were made: I) Monna's share of Goodwill was valued at 6,000. It was decided to write off the Goodwill. ii) and Motor vans were reduced by 10% and 5% respectively. iii) and were appreciated by 20% and 10% respectively. iv) The provision on debtors was to be created at 1,100 for bad debts. Prepare Revaluation Account, Capital Accounts and Balance Sheet of the Continuing Partners. - II PUC Sept Case 3: Creation of Total Goodwill of Firm : 3. Bull, Bear and Stag were partners in a firm and they were sharing in the ratio of 2 : 3 : 5. Stag retired on due to differences with his co-partners. The Balance Sheet of the firm as on that date was as follows: Capitals: Bull Bear Stag 1 2 7, Land and B/R at Bank 1,2 16,000-1, ,2 The agreements were: 1. Goodwill of the firm to be valued at 50,000 and to be created fully. 2. Land and to be valued at 6 3. and to be written down by 10% and 5% respectively. 4. RBD to be maintained at 1, An investment of 3,000 made on Government Securities was recorded in the Invoice Book of the Last Year. This is to be valued at 6. Salary of 500 due but not paid. Prepare Revaluation A/c, Partners Capital A/cs and prepare the Balance Sheet of the new firm. Case 4: Creation of Total Goodwill and written off : 4. The Balance Sheet as on of M, N & O who were sharing in the ratio of 3 : 2 : 1 as follows: Capitals A/cs: M N O 18, ,500 in hand Bills Receivables 25,650 5,400 17,800 22,300 3,500 9, ,08,400 1,08,400 M retired from the business on the adjustments to be made are as follows: 1. to be valued as:, 3,000, 9,000 & to be provided for doubtful debts 3. The Goodwill of the firm is agreed to be valued at 6,000 and it is decided to write off the Goodwill 4. M is to be paid 11,050 is cash on retirement. Show the necessary ledger A/cs and prepare the Balance Sheet of Continuing Partners. - II PUC April 1997

6 Dissolution of a firm: 1. Anil, Vimal and Sunil are partners sharing profits in the ratio of 1 : 2 : 1. Their Balance Sheet as at was as follows: Mrs. Sunil's Loan Capital A/cs Anil Vimal Sunil 6, ,000 42, , 1, On the aforesaid date, they decide to wind up the business. I) The realised less 10%; the realised 10% more than book value; realised 62,000; Vehicle, which was, unrecorded also realised and at Book value. ii) was taken over by Anil at a valuation of 9,000 iii) to be settled at less 10% and Interest on overdraft due 400 also to be paid off. iv) Sunil took over his wife's Loan v) Realisation Expenses amounted to 3,000 Prepare:a) Realisation A/c, b) Capital Accounts of the partners, and c) A/c Case 1. Goodwill is given in the Balance Sheet and the Adjustment: 2. The following is the Balance Sheet of Black, White and Green as on Sundry Bills Payable Capital Accounts: Black White Green 1 1,800 22,000 Investments Goodwill 60, ,600 13,700 5,070 12,900 60,800 It was decided to dissolve the partnership on the following terms: I) Black took over Goodwill at, 15,750 and for 4,500 ii) Green took over Bills payable at book value. iii) The other assets realised as :, 15,600, Investments 8,950 iv) Realisation Expenses amounted to 600 Prepare Realiation A/c, Partners Capital A/cs and A/c Case 2: Goodwill is given only in the Balance Sheet 3. Apoorva and Suparva are partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as on is as follows: Sundry Bills Payable Apoorva's Loan Capital A/cs: Apoorva Suparva at Bank Investments B/R Goodwill 1, ,0

7 On the above date the firm was dissolved and the assets realised as follows: B/R 7,500, Sundry and 10% less than the book value, 5% more than the book value. realised. Goodwill is considered worthless. and Investments were taken over by Apoorva and each respectively. Dissolution expenses were 600. All the liabilities were discharged in full. Show the necessary ledger accounts. - II PUC Sept. 1991, Oct Case 3. Goodwill is given only in the Adjustment: 4. M, N and O are partners. They dissolved the firm. From the following information and Balance Sheet as on , prepare the necessary dissolution accounts. The dissolution proceedings are: a) Plant and realised 90% of book value b) Joint Life Policy realised 75%. c) realised 27,000 and d) N agreed to take over Vehicle at 1 e) M to take over at 10% less than the book value and Goodwill at 6,000 f) An unrecorded investment of not recorded in the books taken over by a Creditor at and the balance paid at 10% discount. g) was paid with interest 2,000 h) on Bills discounted arised 2,000 I) Dissolution Expenses amounted 2,000 Capital A/c M N Balance Sheet as on ,000 27, ,000 21,000 Plant and Joint Life Policy Less: RDD Vehicle at Bank in hand O's Capital A/c 1,51,000 ******* 2 2-2,000 23,000 1,000 22, ,450 1,550 1,51,000