1. SINGLE ENTRY
ACCOUNTING SYSTEM
HSC ACCOUNTS

2. Following records of Mr. Raj were kept on
single entry system. (March 2009)
Particular
Stock
Furniture
Plant and Machinery
Loan taken
Bank Balance
Debtors
Creditors
31.3.2006
15000
53500
42500
21000
1900
43000
18000
31.3.2007
14000
44000
55500
21000
2100
35000
14900
Mr. Raj invested Rs. 4000 in the business.
Also he had withdrawn Rs. 15,000 for his private
expenses from business.
Rs. 500 to be provided for bad debts.
Depreciate plant and machinery @ 5% and furniture @5%
Prepare:
•Statement of Affairs as on 31.3.2006.
•Statement of Affairs as on 31.3.2007.
•Statement of Profit and Loss for the year ended on
31.3.2007.
Capital at the beginning
116900
Capital at the end of the
year
114700
Trading profit
8800
Net profit
3325

3. The following information is available
from Ram’s records:
Particular
1.4.06
31.3.07
Creditor
5,000
8,000
Bank overdraft
15,000
Bank balance
10,000
Plant and machinery
10,000
20,000
Furniture
4,000
4,000
Debtors
30,000
52,000
Stock
34,000
28,000
Ram had withdrawn Rs.5000 for personal
expenses and Rs. 4000 for son’s marriage.
Out of business funds, he had also
purchased a residential building costing
Rs.20000, which is not shown in the above
balance. Additions to Machinery were made
on 1/04/06. Dep. at 10 %p.a. should be
provided on plant and machinery. Find out
Ram’s net profit for the year ended 31st
march 07.
Capital at the beginning
83000
Capital at the end of the
year
81000
Trading profit
27000
Net profit
25000

4. On 01/04/06, Mr. Bannerjee commenced business with
a capital of Rs.25,000.
During the year 2006-07, he withdrew for his personal
use goods worth Rs.2, 000 and cash Rs.3,000. He also
gave a donation of Rs. 500 to Shri Ramakrishna
mission. He paid Life Insurance premium of Rs.1000.
During the year, he received a gift of Rs.5000 from his
father by cheque which was deposited in the bank
account of the business. On 31/3/07; his position was
as under:
Particulars
Machinery
Furniture
Stock
Debtors
Balance at bank
Prepaid insurance
Payable to creditors
Liabilities for expenses
RS
20,000
2,000
5,000
8,000
1,500
200
3,000
700
Find out the profit earned by him after providing for
depreciation at 10% on plant & Machinery and furniture
and Rs.400 as reserve for Doubtful Debt. Also prepare
statement of affair as on 31.03.07
Capital at the beginning
Capital at the end of the
year
33000
Trading profit
9500
Net profit
6900

5. Rani keeps her books on single entry & following
information is disclosed.
Particulars
Cash
Stock
Debtors
Furniture
Sundry creditors
Bills payable
Loan from ‘y’
Investments
31.3.06
31.3.07
18,000
27,000
15,000
18,750
30,000
45,000
7,500
7,500
26,250
31,500
9,000
3,000
15,000
Rani transferred Rs150 each month during first half year
and Rs.100 each month for the remaining period from her
business to her private banking account by way of
drawing, and took away Rs.350 worth of goods for private
use. She sold her private car for Rs.3, 500 and proceeds
were utilised for business. Furniture to be depreciated by
10% and Reserve for Doubtful debts to be maintained at
5% on debtors. Prepare opening and closing statement of
affairs and also profit and loss statement for the year
ending 31/03/07.
Capital at the beginning
44250
Capital at the end of the
year
69750
Trading profit
23850
Net profit
20850

6. Mr. Ganesh keeps his books by single entry method.
His financial position on 1.01.04 and 31.12.04 was as
under.
Particulars
1.1.04
31.12.04
Cash
10,000
16,000
Bank
20,000
36,000
Stock
16,000
24,000
Debtors
24,000
30,000
Creditors
15,000
18,000
Plant and machinery
60,000
90,000
Furniture and fitting
18,000
18,000
During the year Mr. Ganesh withdrew Rs.8,000 for his
private purpose and he had used 2,000 worth of stock also
for his private purpose. On 1.10.03 he sold some of his
house hold furniture for Rs.2,000 and paid this amount
into his Bank A/c of business.
Prepare a statement of profit & loss for the year ended
31.12.04 and a statement of affairs after taking into
consideration the following:
•Provide interest on capital @ 5% p.a on opening balance
and Interest on drawing ( only on cash drawings) @10%
p.a. (on an average of 6 months)
•Depreciate plant and machinery @10 %( assuming
addition were made on 1.10.04) and furniture at 5%.
•stock on 31.12.04 was overvalued by Rs.2,000
•Write off bad debts Rs.2,000 and provide Reserve for
Doubtful debts at 10 % on debtors.
133000
Capital at the beginning
Capital at the end of the
year
196000
Trading profit
71000
Net profit
50300

7. Mr. Prabhakar is a retail trader. He had no proper methods of
accounting. But the following information is made available to
you. [March 2012]
Particulars
Amount Rs.
1.4.2009
Sundry Debtors
Sundry Creditors
Bank Overdraft
Stock
Cash in hand
Bills Receivable
Furniture
Motor van
Computer
10% Govt. Bonds
Amount Rs.
31.3.2010
45000
60000
80000
65000
2000
60000
10000
80000
60000
50000
70000
40000
80000
8000
80000
10000
80000
120000
10000
Adjustments.
On 1st October, 2009 Mr. Prabhakar had withdrawn Rs. 40000 for
his personal use. 10% Government Bonds were purchased of Rs.
10,000 on 1st October, 2009. He had also withdrawn Rs. 30000 for
his daughter’s marriage. Depreciate furniture by 10% and write off
Rs. 2000 from motor van. Rs. 2000 is written off as bad debts and
provide 5% R.D.D. on debtors. Allow interest on capital at 10%
p.a. Charge interest on drawings Rs. 2,000.
Prepare after taking into consideration the adjustments.
Opening statement of affairs of 1.4.2009.
Closing statement of affairs of 31.3.2010.
Statement showing Profit or Loss for the year ended on 31.3.2010.
Capital at the beginning
182000
Capital at the end of the
year
328000
Trading profit
216000
Net profit
192900

8. Prem a trader keeps his books by the single entry Method. His
financial position on 1st April 06 and on 31st March, 07 were
as follows:
Particulars
Cash in hand
Bank balance
Stock in trade
Debtors
Creditors
Plant and machinery
Furniture
1.04.06
1,500
1,200(Dr.)
4,000
3,400
2,400
6,000
1,200
31.03.07
1,600
1,800(Cr.)
4,650
3,800
3,600
8,000
1,600
During the year, Prem had withdrawn Rs.75 per month for his
household use.
From the above information ascertain his profit or loss for the year
ended and also give his statement of affairs as on 31.03.07 after
taking into account the following further information:
Depreciate plant and machinery by 15% and furniture by 12 ½ %
p.a (assume the addition on 30th September,2006)
Of the debtors Rs100 are bad and to be written off.
Create a reserve for Discount on Debtors at 2% and a reserve for
Doubtful debts at 5%.
Allow interest on capital at 5% and charge interest on Drawing at
6%p.a
Capital at the beginning
14900
Capital at the end of the
year
14250
Trading profit
250
Net Loss
-2048

9. Mr. Gopal maintained his books on single entry. The
following statement of affairs had been Prepared as on
31.03.06
Liabilities
Capital account
Sundry creditors
Bill payable
Amt
28,000
3,170
2,150
Asset
Leasehold land
Plant and Machinery
Stock in trade
Book debts
Cash in hand
Amt
2,075
4,940
9,673
15,550
1,082
33,320
33,320
On 31.03.07 it was learnt that he had introduced further
capital of Rs1,000 on 1st july,06 and he drawn Rs1,580 on
various dates during the year. It was also ascertained that
the proprietor had taken Rs.75 worth of goods for his own
use. Statement prepared on the same date disclosed that
book debts were Rs.14,640, Creditors were Rs.2,309 and
Bills payable were Rs.1,775. The stock was valued at
Rs.11,417 and cash in hand amounted Rs.917 on the same
date.
Prepare: 1. Statement of profit for the year 06-07
2. Statement of affairs as on 31.03.07 taking in
to consideration the following:
•5% Reserve to be created on Book debts.
•5% Depreciation to be written off on plant and machinery.
•Rs.125 to be written off the lease.
Interest at 5% p.a. to be provided on the capital.
Capital at the beginning
Capital at the end of the
year
29905
Trading profit
2560
Net profit
18

10. Mr. Suryakant maintains books on single entry and
who gives you the following information. (September
2008)
Particulars
Cash in hand
Cash at bank
Stock
Sundry debtors
Investments
Furniture
Machinery
Sundry creditors
Outstanding expenses
31-3-2006
500
2500
20000
25000
20000
10000
25000
10000
3000
31-3-2007
2000
5000
30000
40000
20000
25000
40000
10000
2000
Additional information
•Mr. Suryakant introduced further capital of Rs. 20000 on
1st July, 2006 and had withdrawn Rs. 10,000 during the
year.
•Interest on capital is allowed at 10% p.a.
•Additions to furniture and machinery were made on 1st
October, 2006
•Write of deprecation on furniture and machinery at 10%
p.a.
•Create reserve for doubtful debts at 5% on sundry
debtors.
Prepare: a. Statement of affairs. B. Statement of profit and
loss for the year ended 31st March, 2007. <
90000
Capital at the beginning
Capital at the end of the
year
150000
Trading profit
50000
Net profit
32500

11. Mrs. Archana keeps her books on single entry
system and gives the following information.
(March 2008)
31-3-2006
Cash at bank
Sundry debtors
Stock in trade
Furniture
Machinery
Bills payable
Sundry creditors
5000
25000
30000
20000
50000
5000
15000
31-3-2007
32000
40000
50000
20000
50000
5000
20000
Additional information
Mrs. Archana withdrew from business Rs. 15,000 for
personal use.
She further introduced fresh capital of Rs. 25,000.
Depreciation is to be charged @10% p.a. on
Furniture and Machinery.
Prepare: (i) Statement of Affairs as on 31-3-2006
(ii) Statement of Affairs as on 31-3-2007
(iii) Statement of profit or loss for the year ending 313-2007.
Capital at the beginning
110000
Capital at the end of the
year
167000
Trading profit
47000
Net profit
40000