Scribd Logo
Upload

Welcome to Scribd!

  • 8 views

    U2 Conversion of SE To DES

    Uploaded by

    neyadan
    The document provides information and instructions for 13 different accounting problems involving the conversion of single entry accounting to double entry accounting. The problems include calculating purchases, sales, opening and closing balances, and preparing income statements and balance sheets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    U2 Conversion of SE To DES

    Uploaded by

    neyadan
    8 views3 pages
    The document provides information and instructions for 13 different accounting problems involving the conversion of single entry accounting to double entry accounting. The problems include calculating purchases, sales, opening and closing balances, and preparing income statements and balance sheets.

    Original Title

    U2-Conversion-of-SE-to-DES

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides information and instructions for 13 different accounting problems involving the conversion of single entry accounting to double entry accounting. The problems include calculating purchases, sales, opening and closing balances, and preparing income statements and balance sheets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    8 views3 pages

    U2 Conversion of SE To DES

    Uploaded by

    neyadan
    The document provides information and instructions for 13 different accounting problems involving the conversion of single entry accounting to double entry accounting. The problems include calculating purchases, sales, opening and closing balances, and preparing income statements and balance sheets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    CONVERSION OF SINGLE ENTRY TO DOUBLE ENTRY

    1) Ascertain the value of stock at the beginning:


    Purchases – Rs.1,20,000; Direct Wages – Rs.80,000; Sales – Rs.5,00,000; Stock at the end
    – Rs.45,000; Rate of Gross Profit is 25% on cost.

    2) Ascertain Credit Purchases and Credit Sales from the following:


    Sundry Debtors on 1-1-2010 – Rs.14,000; Sundry Debtors on 31-12-2010 – Rs.10,000;
    Sundry Creditors on 1-1-2010 – Rs.8,000; Sundry Creditors on 31-12-2010 – Rs.9,500;
    Cash received from Debtors – Rs.6,400; Bills receivable dishonoured – Rs.400; Cash
    Paid to Creditors – Rs.2,000; Discount allowed – Rs.400; Discount received – Rs.200;
    B/R received from Debtors – Rs.2,500; B/P accepted from Creditors – Rs.5,800 and Bad
    Debts – Rs.300.

    3) From the following information calculate total purchases and total sales:
    Opening Debtors – Rs.28,000; Closing Debtors – Rs.20,000; Opening Creditors –
    Rs.16,000; Closing Creditors – Rs.19,000; Cash received from Debtors – Rs.12,800;
    Cash paid to Creditors – Rs.4,000; Discount earned – Rs. 400; Discount allowed –
    Rs.800; B/R received from Debtors – Rs.5,000; B/P issued to Creditors – Rs.11,600 and
    Bad Debts – Rs.600.

    4) Ascertain Credit Purchases and Credit Sales from the following:


    Sundry Debtors on 1-1-2009 – Rs.25,600; Sundry Debtors on 31-12-2009 – Rs.19,600;
    Sundry Creditors on 1-1-2009 – Rs.15,200; Sundry Creditors on 31-12-2009 –Rs.18,060;
    Cash received from Debtors – Rs.12,800; Bills receivable dishonoured – Rs.800; Cash
    Paid to Creditors – Rs.3,500; Discount allowed – Rs.700; Discount received – Rs.500;
    B/R received from Debtors – Rs.2,500; B/P accepted from Creditors – Rs.11,740 and
    Bad Debts – Rs.600.

    5) Ascertain credit sales from the following:


    Opening Debtors – Rs.75,500; Cash received from Debtors – Rs.6,18,500; B/R received
    – Rs.24,000; Sales returns – Rs.8,600; Bad debts – Rs.6,800; B/R dishonoured –
    Rs.3,800; Discount allowed – Rs.2,000 and B/R discounted with bank – Rs.4,500.

    6) From the following information, you are required to calculate total sales:
    B/R in the beginning – Rs.7,800; Debtors in the beginning – Rs.30,800; B/R encashed
    during the year – Rs.20,900; Cash received from customers – Rs.70,000; Bad debts
    written off – Rs.2,800; Returns inwards – Rs.8,700; B/R dishonoured – Rs.1,800; B/R at
    the end of the year – Rs.6,000; Debtors at the end of the year – Rs.25,500 and cash sales
    as per cash book – Rs.40,900.

    7) From the following information, you are required to determine the amount of total sales:
    Opening Stock – Rs.80,000; Purchases – Rs.4,00,000; Closing Stock – Rs.70,000 and
    1
    Rate of Gross Profit on sales = .
    6

    8) From the following information, find out opening debtors and closing creditors:
    Creditors on 1st April, 2010 – Rs.7,20,000; B/R on 1st April, 2010 – Rs.7,00,000; B/P on
    1st April, 2010 – Rs.5,20,000; Debtors on 31st March, 2011 – Rs.9,00,000; B/R on 31st
    March, 2011 – Rs.6,80,000 and B/P on 31st March, 2011 – Rs.4,60,000

    Prepared by N.Vijaya Ranga, HOD, Vijaya College, Bangalore. 9449050625 [email protected]


    Particulars Amount Particulars Amount
    Total Sales 1,60,00,000 Discount received 20,000
    Total Purchases 1,00,00,000 Cash Sales 78,60,000
    Received from Debtors 58,00,000 Cash Purchases 40,00,000
    B/R encashed 20,00,000 Discount allowed 40,000
    B/P Paid 28,60,000 B/R dishonoured 2,00,000
    Payment to Creditors 29,40,000 B/P dishonoured 2,00,000

    9) Following is the position of Mr.Hazzare on 1-1-06:

    Liabilities Amount Assets Amount


    Creditors 75,000 Furniture 20,000
    Capital 80,000 Debtors 90,000
    Stock 40,000
    Bank 5,000
    1,55,000 1,55,000
    His Bank transactions during the year were:
    Receipts from customers – Rs.3,50,000; Drawings for personal expenses – Rs.60,000;
    Payment of Salaries – Rs.30,000; Payment to creditors – Rs.2,20,000; Payment of
    Rent – Rs.15,000 and Miscellaneous expenses – Rs.4,000.
    On 31-12-2006 Debtors stood at Rs.95,000 and creditors at Rs.64,000. No inventory of
    stock was taken on 31-12-2006 but the Gross Profit was estimated @ 50% on sales made
    during the year.
    Prepare P & L A/c for the year and Balance Sheet as at 31-12-2006.

    10) Sri Ram, a trader maintains his books under single entry system. He submits the
    following
    information:
    a) Assets and Liabilities:

    Particulars 1-4-2014 31-3-2015


    (Rs.) (Rs.)
    Cash 20,000 ?
    Debtors 72,500 80,000
    Creditors 62,500 72,500
    Furniture 20,000 20,000
    Plant & Machinery 40,000 38,000
    Stock 30,000 42,000

    b) Cash transactions during the year 2014-15:


    Cash from Debtors – Rs.6,20,000; Cash paid to Creditors – Rs.4,80,000; Wages –
    Rs.24,000; Salaries – Rs.16,000; Rent – Rs.18,000; Drawings – Rs.16,500; Cash
    Purchase – Rs.24,000; Cash Sales – Rs.36,000 and Carriage outwards – Rs.10,000

    c) Other details:
    Bad debts – Rs.3,200; Purchase returns – Rs.6,200 and Stock worth Rs.6,000 was
    utilized by Sri Ram for personal use.
    Prepare the Final Accounts for the year ending 31-3-2015.

    Prepared by N.Vijaya Ranga, HOD, Vijaya College, Bangalore. 9449050625 [email protected]


    11) Mr.Bhaskar did not maintain his books of accounts properly. From the following data
    supplied to you prepare Final Accounts for year ended 31-12-2012:
    Opening stock – Rs.10,000; Creditors on 1-1-2012 – Rs.4,000; Cash on 1-1-2012 –
    Rs.6,000; Furniture on 1-1-2012 – Rs.2,000; Salaries – Rs.6,800; Rent – Rs.2,400;
    Other expenses – Rs.4,800; Cash paid to creditors – Rs.36,000; Cash purchases –
    Rs.4,000; Cash sales – Rs.8,000; Cash received from Debtors – Rs.64,000; Credit
    purchases – Rs.60,000; Closing stock – Rs.8,000; Debtors on 31-12-2012 – Rs.24,000;
    Drawings – Rs.8,000; Discount allowed – Rs.2,000; Donation to PM’s drought relief
    fund – Rs.2,000 and Rate of Gross Profit on sales – 25%.

    12) Mr. Ganesh started his business on 1-4-2011 with a capital of Rs.25,000. He bought
    furniture for Rs.4,000. He borrowed Rs.5,000 from his wife as loan, introduced further
    capital of Rs.3,000. He withdrew Rs.600 every month, from the following information,
    prepare his Trading & P & L A/c and Balance Sheet as on 31-3-2012:
    Sales (including cash sales Rs.30,000) Rs.1,00,000
    Purchases (including cash purchases Rs.10,000) Rs. 75,000
    Carriage inwards Rs. 700
    Discount allowed to debtors Rs. 800
    Wages Rs. 300
    Salaries Rs. 6,200
    Bad debts written off Rs. 1,500
    Trade expenses Rs. 1,200
    Advertisement Rs. 2,200
    Mr. Ganesh used goods worth Rs.1,300 for private purposes and paid Rs.500 to his
    son, which is not recorded. On 31-3-2012, his debtors were Rs.21,000 and creditors
    Rs.15,000. Stock was valued at Rs.10,000 on that date. Furniture to be depreciated by
    10% p.a.

    13) Mr. Mohan Das keeps his books by single entry system. From the following data, prepare
    Trading and P & L A/c for the year ending 31-3-2014 together with Balance Sheet as on
    that date.
    a) Cash Book analysis shows as follows:
    Interest charges – Rs.200; Personal withdrawals – Rs.4,000; Salaries – Rs.17,000;
    Business expenses – Rs.15,800; Payment to creditors – Rs.30,000; Balance at bank
    on 31-3-2014 – Rs.4,850; Cash on hand on 31-3-2014 – Rs.150; Receipts from
    debtors – Rs.50,000; Cash sales – Rs.30,000.
    b) Further details available are:

    Particulars 1-4-2013 31-3-2014


    Rs. Rs.
    Stock 18,000 20,440
    Creditors 16,000 11,000
    Debtors 44,000 60,000
    Furniture 2,000 2,000
    Machinery 30,000 30,000
    Provide 5% interest on capital as on 1-4-2013. Provide Rs.3,000 for doubtful
    debts and 5% depreciation on all fixed assets.

    Prepared by N.Vijaya Ranga, HOD, Vijaya College, Bangalore. 9449050625 [email protected]

    You might also like