Accouting From Incomplete Records - Class 10 Elements Of Book Keeping And Accountancy - Extra Questions

The following information is given below prepare the Statement of Profit or Loss.

Items         (Rs)
Capital at the end of the year$$5,00,000$$
Capital in the beginning of the year$$7,50,000$$
Drawings made during the period$$3,75,000$$
Additional Capital introduced$$50,000$$

Is it possible to prepare the profit and loss account and the balance sheet from the incomplete book of accounts kept by a trader'? Do you agree? Explain.

Question : Following information is given below calculate the closing capital

ItemsJan 1, 2011
Dec 31, 2011
Bills Payable$$10,000$$   ----
Loan     -----$$50,000$$
Bills receivable$$30,000$$$$50,000$$

Calculation of profit or loss and ascertainment of statement of affairs at the end of the year (Opening Balance is given)

Note : In the above question, opening and closing balances of capital are not given, so first of all we have to prepare statement of affairs at the beginning and at the end of the year. Then only we will be able to get the profit figure of the year.

                                              Statement of Affairs
                                         as on 1st January 2011
LiabilitiesAmt. (Rs) AssetsAmt. (Rs)
Creditors$$5,000$$Bills receivable$$30,000$$
Bills Payable$$10,000$$Stock$$5,000$$
Capital (Balancing Figure)$$22,000$$Cash$$2,000$$

                                        Statement of Affairs
                                      as on 31st December, 2011

LiabilitiesAmt. (Rs)AssetsAmt. (Rs)
Creditors$$30,000$$Bills Receivable$$50,000$$
Capital (Balancing Figure)$$20,000$$Cash$$20,000$$


                                                Statement of Profit or Loss
                          for the year ended as on 31st December, 2011

ParticularsAmt. (Rs)
Capital at the end of the year i.e., December 2011$$20,000$$
(-) Capital at the beginning of the year i.e., January 2011$$22,000$$
Loss during the year 2011$$2,000$$

Explain how the following may be ascertained from incomplete records
(a) Opening capital and closing capital
(b) Credit sales and credit purchases
(c) Payments to creditors and collection from debtors
(d) Closing balance of cash

Manveer started his business on January 01, 2005 with a capital of Rs $$4,50,000$$. On December 31, 2005, his position was as under

Bills receivable$$75,000$$
Land and Building$$1,80,000$$
He owed Rs$$45,000$$ from his friend Susheel on that date. He withdrew Rs $$8,000$$ per month for his household purposes. Ascertain his profit or loss for this year ended December 31, 2005.

What is meant by a 'statement of affairs'? How can the profit or loss of a trader be ascertained with the help of a statement of affairs?

Krishna Kulkarni has not kept proper books of accounts prepare the statement of profit or loss for the year ending December 31, 2005 from the following information.

ItemsJan 1, 2005Dec 31, 2005
Cash in hand$$10,000$$$$36,000$$
Bills receivable$$20,000$$$$24,000$$
Bills payable$$4,000$$$$42,000$$
Car     ------$$80,000$$
Bank Balance$$1,00,000$$$$90,000$$
The following adjustments were made
(a) Krishna withdrew cash Rs $$5,000$$ per month for private use.
(b) Depreciation @ $$5\%$$ on car and furniture @ $$10\%$$.
(c) Outstanding rent Rs$$6,000$$.
(d) Fresh capital introduced during the year Rs $$30,000$$.

Question : From the following information calculate the Amount to be paid to creditors

Sundry creditors as on March 31, 2005$$1,80,425$$
Discount received$$26,000$$
Discount allowed$$24,000$$
Return outwards$$37,200$$
Return Inward$$32,200$$
Bills accepted$$1,99,900$$
Bills endorsed to creditors$$26,000$$
Creditors as on April 1, 2006$$2,09,050$$
Total Purchase$$8,97,000$$
Cash Purchase$$1,40,000$$

Question : Mr Akshat keep his books on incomplete records following information is given below

ItemsApril 1, 2004March 31, 2005
Cash in hand$$1,000$$$$1,500$$
Cash at bank$$15,000$$$$10,000$$
Business premises$$75,000$$$$1,35,000$$
Bills payable$$44,000$$$$58,000$$

During the year he withdrew Rs $$45,000$$ and introduced Rs $$25,000$$ as further capital in the business compute the profit or loss of the business.

Mrs. Meena of Bilaspur has not kept proper books of accounts, following information is provided to you:
Amount (Rs.)
Amount (Rs.)
Outstanding Expenses1,50042,000
Pre-paid expenses--
Cash at bank28,00040,000
Further information:
(1) Mrs. Meena introduced additional capital as on $$1^{st}$$ October, 2012 by selling her personal car is Rs. 10,000
(2) She paid her daughter's college fees from business bank account Rs. 3,000.
(3) Depreciate 2% on debtors for Bad and Doubtful debts.
(3) Interest on capital is to be provided @ 5% p.a. and on drawings @5% p.a.

Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended $$31^{st}$$ March, 2013.

Which statement is prepared under single entry system to ascertain profit?

Mr. John keeps his books according to single entry system. Following are the details of his business:
Amount (Rs.)
Amount (Rs.)
Sundry debtors72,20088,400
Cash in hand3,0004,100
Cash at bank42,00052,300
Sundry creditors54,50060,400

Addition information:
(1) Mr. John had introduced Rs. 20,000 as additional capital on $$1^{st}$$ October, 2012.
(2) Mr. John had withdrawn Rs. 15,000 for his personal use during the year.
(3) Additions to furniture were made on $$1^{st}$$ October, 2012.
(4) Deprecate machinery at 10% p.a. and further at 20% p.a.

(1) Opening and closing Statement of Affairs.
(2) Statement of Profit or Loss for the year ending on $$31^{st}$$ March, 2013.

Question : Mr Arnav does not keep proper records of his business he provided following information. You are required to prepare a statement showing the profit or loss of the year.

Capital at the beginning of the year$$15,00,000$$
Bills receivable$$60,000$$
Cash in hand$$80,000$$
Stock in trade$$2,00,000$$
Further capital introduced$$3,20,000$$
Drawings made during the period$$80,000$$

Prepare Statement of affairs at the end of the year and calculate of profit and loss.

Question : Gopal does not keep proper records in the books of account. Following information is given below.

ItemsJan 1, 2005Dec 31, 2005
Cash in hand$$18,000$$$$12,000$$
Cash at bank$$1,500$$$$2,000$$
Stock in trade$$80,000$$$$90,000$$
Sundry Debtors$$36,000$$$$60,000$$
Sundry Creditors$$60,000$$$$40,000$$
Office equipments$$25,000$$$$30,000$$
Land and Buildings$$30,000$$$$20,000$$

During the year he introduced Rs $$20,000$$ and withdrew Rs $$12,000$$ from the business. Prepare the statement of profit or loss on the basis of given information.

Question : From the information given below ascertain the profit for the year

Capital at the beginning of the year$$70,000$$
Additional capital introduced during the year$$17,500$$
Sundry Debtors$$25,900$$
Business permises$$8,600$$
Sundry Creditors$$33,400$$
Drawings made during the year$$26,400$$

Question : Mr Muneesh maintains his books of accounts from incomplete records. His books provide the information.

ItemsJan 1, 2005Dec 31, 2005
Bills receivable    -------$$2,400$$
Investment       -----$$8,000$$

He withdrew Rs$$300$$ per month for personal expenses. He sold his investment of Rs $$16,000$$ at $$2\%$$ premium and introduced that amount into business.

Question : Mr Ashok does not keep his book properly. Following information is available from his books.

ItemsJan 1, 2005 (Rs)Dec 31, 2005 (Rs)
Sundry Creditors$$45,000$$$$93,000$$
Loan from wife$$60,000$$$$57,000$$
Sundry Debtors$$22,500$$      ------
Land and Building$$89,600$$$$90,000$$
Cash in hand$$7,500$$$$8,700$$
Bank overdraft$$25,000$$      -----

During the year Mr. Ashok sold his private car for Rs $$50,000$$ and invested this amount into the business. He withdrew from the business Rs$$1,500$$ per month upto july 31, 2005 and thereafter Rs$$4,500$$ per month as drawings. You are required to prepare the statement of affairs as on December 31, 2005.

Question : M/s Saniya Sports Equipment does not keep proper records. From the following information find out profit of loss and also prepare balance sheet for the year ended December 31, 2005.

1, 2005 (Rs)
31, 2005 (Rs)
Cash in hand$$6,000$$$$24,000$$
Bank Overdraft$$30,000$$     ----
Sundry Creditors$$26,000$$$$40,000$$
Sundry Debtors$$60,000$$$$1,40,000$$
Bills Payable$$6,000$$$$12,000$$
Bills Receivable$$8,000$$$$28,000$$

Drawing Rs $$10,000$$ p.m for personal use, fresh capital introduce during the year Rs $$2,00,000$$. A bad debts Rs.$$2,000$$ and a provision of $$5\%$$ is to be made on debtors. Outstanding salary Rs $$2,400$$, prepaid insurance Rs$$700$$ depreciation charged on furniture and machine @ $$10\%$$ pa.

Class 10 Elements Of Book Keeping And Accountancy Extra Questions