accounts from incomplete records Test - 18

Debtors account may derived from the figures of Credit Sales made during the current accounting period.

Profit = (Closing Capital + Drawings - Opening Capital) - Capital added during the year

Profit = (54000 + 3000 - 36000) - 6000

= (54000 + 3000 - 36000) - 6000

= (57000 - 36000) - 6000

= 21000 - 6000

= Rs. 15000

Capital = Asset (10000) – Liabilities (5000) = 5000. So, option (B) is correct

To calculate the drawings made during the year, we use the following formula:

Drawings = (Opening Capital + Profit - Closing Capital) + Fresh Capital

Given:

Opening Capital = Rs. 30000

Profit = Rs. 4000

Closing Capital = Rs. 35000

Fresh Capital = Rs. 6000

Using the formula:

Drawings = (30000 + 4000 - 35000) + 6000

= (34000 - 35000) + 6000

= (-1000) + 6000

= Rs. 5000

If credit purchase isn't given it can be calculated by preparing creditor A/C. The balancing figure in the creditor A/C shall be considered as the credit purchase.

Purchases=Paid to creditors−Discount received + Contra + Cash purchases − Creditors taken over + Closing balance of creditors

Purchase =21096-190-609+207-994+1289 

=21096-190-609+207-994+1289 

=21096-190-609+207-994+1289 

=21096-190-609+207-994+1289 

=21096-190-609+207-994+1289 

=21096-190-609+207-994+1289 

=22397

Trial balance is prepared to check the arithmetic accuracy of account balances but it can't be checked under single entry system since it is prepared from incomplete information. Furthermore, under single entry system, only personal accounts are maintained and real and nominal accounts are avoided. and also cash book is maintained which mixes up business as well as private transactions so the trial balance cannot be prepared.

Sales=Debt taken over−Payments received+Discount allowed−Bad debts written off−Contra+Closing balance of sales

Given:

Debt taken over = Rs. 1134

Payments received = Rs. 33870 (This is treated as negative)

Discount allowed = Rs. 1023 (This is treated as negative)

Bad debts written off = Rs. 460 (This is treated as negative)

Contra = Rs. 609 (This is treated as negative)

Closing balance of sales = Rs. 1755

Sales \(  =1134-(-33870)-1023-460-609+1755 \)

\( =1134+33870-1023-460-609+1755 \)

\( =34667\)

If credit sale isn't given it can be calculated by preparing Debtor A/C. the balancing figure in the Debtor A/C shall be considered as the credit sale.

If cash received from the debtor isn't given it can be calculated by preparing Debtor A/C. The balancing figure in the Debtor A/C shall be considered as cash received from debtor.