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    Single Entry and Incomplete Records

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    California Knight
    1. The document provides instructions for preparing financial statements from single entry and incomplete records. 2. It outlines steps for determining total sales and purchases, adjusting accruals and prepayments, and calculating opening capital. 3. The document also provides an example of preparing income statement, statement of financial position, and other accounts like sales ledger from incomplete records.

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    Download as PDF, TXT or read online from Scribd

    Single Entry and Incomplete Records

    Uploaded by

    California Knight
    702 views5 pages
    1. The document provides instructions for preparing financial statements from single entry and incomplete records. 2. It outlines steps for determining total sales and purchases, adjusting accruals and prepayments, and calculating opening capital. 3. The document also provides an example of preparing income statement, statement of financial position, and other accounts like sales ledger from incomplete records.

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    1. The document provides instructions for preparing financial statements from single entry and incomplete records. 2. It outlines steps for determining total sales and purchases, adjusting accruals and prepayments, and calculating opening capital. 3. The document also provides an example of preparing income statement, statement of financial position, and other accounts like sales ledger from incomplete records.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    702 views5 pages

    Single Entry and Incomplete Records

    Uploaded by

    California Knight
    1. The document provides instructions for preparing financial statements from single entry and incomplete records. 2. It outlines steps for determining total sales and purchases, adjusting accruals and prepayments, and calculating opening capital. 3. The document also provides an example of preparing income statement, statement of financial position, and other accounts like sales ledger from incomplete records.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Chapter - 40, page 616

    Single Entry and Incomplete records

    To find solutions from single entry/incomplete records:

    1. Sales ledger control account: credit sales,


    Where total sales = credit sales + cash sales

    2. Purchase ledger control account: credit purchases,


    Where total purchases = credit purchase + cash purchase

    3. Adjust Accruals and Prepayments:


    I) Expense Account
    II) Income Account

    4. Calculate the opening capital: Opening Assets - Opening Liabilities

    5. Calculate depreciation using the revaluation method:


    I) Opening book value - Closing book value
    II) Opening book value + purchase of new non-current assets (CP) - sales
    of old non-current asset (CP/BV) - Closing book value

    Receipts and Payments Account (Cash and Bank Account Summary)


    Date Details $ Date Details $
    2021 2021
    Jan - 1 Balance b/d Jan - 1 Balance b/d
    (opening asset) xxx (opening liability) xxx
    Receipts xxx Payments xxx
    Dec - 31 Balance c/d Dec - 31 Balance c/d (closing
    (closing liability) xxx asset) xxx
    Practice Work:
    Exercise - 35.4

    Sales ledger (Debtor’s A/c)


    Date Details $ Date Details $
    Balance b/d 21200
    Credit sales 89,790 Bank 91190
    Balance c/d 19800

    Total Sales = 89,790 + 17,400 = 107,190

    Purchase ledger (Creditor’s A/c)


    Date Details $ Date Details $
    Balance b/d 12700
    Bank 67360 Credit purchase 68,760
    Balance c/d 14100

    Total Purchase = 68,760 + 4940 = 73,700

    Rent A/c
    Date Details $ Date Details $
    Balance b/d 390
    (owing)
    Bank 3950 Income 3,560
    Statement

    Insurance A/c
    Date Details $ Date Details $
    Balance b/d 420
    (prepaid)
    Bank 1470 Income 1,450
    statement
    Balance c/d 440
    (prepaid)

    Capital = Assets - Liabilities


    = (4100 + 10800 + 21200 + 420 + 1800) - (12700 + 390)
    = 25,230

    Depreciation: 1800 - 1600 = 200


    Income statement for the year ended
    Details $ $
    Sales 107,190
    - Cost of Sales
    Opening inventory 10800
    + purchase 73,700
    84,500
    - closing inventory (12200)
    (72,300)
    Gross Profit 34,890
    - Expenses
    Rent 3,560
    Insurance 1,450
    Sundry expenses 610
    Wages 11260
    Depreciation 200
    (17,080)
    Profit for the year 17,810
    Statement of financial position
    Details Cost Depreciation Net Book Value
    Non-current assets:
    Fixtures 1600

    Current Assets:
    Inventory 12,200
    Debtors 19,800
    Insurance 440
    32,440
    Total Assets 34,040

    Financed by:
    Capital 25,230
    + profit for the year 17,810
    - Drawings (28,200 + 1200) (29,400)
    13,640
    + Current Liabilities
    Accounts Payable 14,100
    Bank overdraft 6,300
    Total equity and liability 34,040

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