SINGLE ENTRY

SINGLE ENTRY - CONVERSION METHOD SMALL PROBLEMS

1. Ascertain the appropriate missing figure by preparing the cash book, from the following
information: (Note: all transactions are made through cheque)
Collection from debtors Rs.75,800, Payment to creditors Rs. 52,200, Bills receivable collected Rs.
24,000, Bills payable discharged Rs. 18,600, Cash sales deposited Rs. 17,200, Cash purchases Rs.
1,000 (by cheque), Capital introduced on Rs. 5,000, Drawings Rs. 15,000, Common received Rs.
3,000, Wages paid Rs. 24,000, Salaries paid Rs. 13,000, Rent paid Rs. 8,800, Insurance Premium
paid Rs. 1,600, Carriage inwards paid Rs. 500, Advertising paid Rs. 660. Opening Bank Balance
Rs. 8,700.
2. Ascertain the appropriate missing figure by preparing the Total Debtors Account from the
following information:
Closing debtors Rs.28,000, Opening debtors Rs.24,000, Sales return Rs. 1,000, Cash received
from debtors Rs.74 800, Bills receivable drawn Rs.26,000, discount allowed Rs 1,000, bad debt
Rs. 1,000, Cheque received from daters Rs.10,000, Bills receivable dishonoured with 4000,
cheques dishonoured Rs.6000
3. Ascertain the appropriate missing figure from the following information:
Closing bills receivables Rs. 10,000 Opening bills receivable Rs.8000, Bills collected Rs.10,500,
Bills receivable of Rs.50,000 discounted with a bank at a discount of Rs.2000, bills receivable of
Rs.25,000 endorsed in favour of creditors. Bills receivable (which were retained) dishonoured
Rs.12,500.
4. Ascertain the appropriate missing figures by preparing total creditors account from the
following information:
Closing creditors Rs.3000, Opening creditors Rs.18,000, Cash paid to creditors Rs.52,200,
Discount allowed by creditors Rs. 1,000, Purchases returns Rs. 1,000 Bills Payable accepted
Rs.17,000. Cheques issued to creditors Rs.10,000 bills Receivables endorsed in favour of
creditors Rs.20,000 out of which 25% bills were dishonoured
5. Ascertain the appropriate missing figure by preparing Bills payable A/c from the following
information:
Opening bills payable Rs. 2,000, Bills discharged Rs. 18,600, Closing bills payable Rs. 400
6. Ascertain the appropriate missing figures from the following information:

Particulars Opening Closing

 Outstanding Salary Rs. 10,000 Rs. 15,000
Prepaid Salary Rs. 20,000 Rs. 30,000
Salary paid during the year 2012 – 2013 Rs. 1,00,000
7. Ascertain the appropriate missing figures from the following information:

Particulars Opening Closing

Accrued Interest Rs. 10,000 Rs. 15,000
Interest Received in Advance Rs. 20,000 Rs. 30,000
Interest received during the year Rs. 1,00,000
8. From the following information, calculate the amount of Net Sales, Net Purchases and Closing
Stock:

Particulars Opening (Rs.) Closing (Rs.)

Debtors 31800 26500
Creditors 24000 16000
Bills Payable 21000 29000
Stock in trade 10000 ?
Bills Receivable 8800 7000

Transaction during the year – Discount allowed to customers Rs. 1000; Discount allowed by
Suppliers Rs. 800; Bills payable discharged Rs. 35,600; Bills receivable collected Rs. 20900;
Returns inwards Rs. 8700; Returns outwards Rs. 4,800; Bad debts Rs. 2800; Bills receivable
dishonored Rs. 1800; Cash paid to creditors Rs. 1,20,000; Cash received from debtors Rs.
69,000; Cash Sales Rs. 40,900; Cash purchases Rs. 1,03,200; uniform sale price of goods being
cost plus 25%.
9. From the following find out Net sales and Net Purchases.
Opening Debtors 15,000
Opening Creditors 14,000
Closing Debtors 14,000
Closing Creditors 16,000
Bill Receivable received 10,000
Closing Bills receivable 8000
Cash received from customers 30,000
Cash returned to customers 500
Cash paid to suppliers 20,230
Discount allowed by suppliers 270
Discount allowed to customers 500
Bills payable discharged 1000
Opening bills payable 1000
Closing bills payable 8000
Bad debts written off 1200
Bad debts recovered 300
Bills Receivable endorsed to creditors 4000
Bills receivable dishonoured by customers 1000
Endorsed bills receivable dishonoured 500
Bills receivable discounted (discount 20) 2000
Discounted bill receivable dishonoured 700
Sales returns 250
Purchases returns 670
Bills receivable collected 5000
Opening Bills Receivable 10,000
Cash Sales 20% Net sales and cash purchases 20% of Net Purchases
10. Mr. X could not keep complete records. He furnishes you the following information:
Particulars of Assets and Liabilities:
Particulars Opening (Rs.) Closing (Rs.)
Stock 37,400 46,800
Sundry debtors 24,000 28,000
Sundry Creditors 18,000 3,000
Bills Receivable 8,000 10,000
Bills payable 2,000 400
Fixed Assets 25,200 ?
Bank Balances 8700 ?

a. Bank Transactions - Collection from debtors Rs.74,800, payment to creditors Rs.52,200,

Bills Receivable collected Rs.24,000, Bills payable discharged Rs.18,600, Cash sales
deposited Rs.17,200, Cash purchases (by cheque) Rs.4000, Additional capital (on 1st Oct)
Rs.5000. wages paid Rs.24,000, commission received Rs.3000, salaries paid Rs.13,000,
carriage outward Rs.8490, Insurance premium paid Rs. 1600, carriage inward Rs.500,
Drawings were Rs.1000 per month, Goods costing Rs.3000 were taken away by Mr. X
for his personal use
b. Information – A Provision @ 10% is required for doubtful debts and depreciation @ 5%
p.a. is to be written off on Fixed assets. Provide Interest on capital at 5% p.a. and for
group incentive to staff @ 5% on net profit after charging such incentive and interest on
capital. Rs. 6000 is Outstanding for wages and Rs. 3800 for salaries, Prepaid insurance,
Rs.400 Discount allowed to Rs. 1000, Discount earned Rs. 1,000, Return inwards Rs.1000,
Return outwards Rs. 1000, Bad Debt Rs. 1000.
Required: Prepare Trading and profit & Loss A/c and Balance sheet
 SINGLE ENTRY

SINGLE ENTRY - CONVERSION METHOD SMALL PROBLEMS

CONVERSION METHOD INTERESTED SMALL CHALLENGES:

11. Calculate Cash sales, Credit sales, Cash purchases and Credit purchases in each of the
following alternative cases:
Case 1:
a. Uniform rate of Gross Profit – 20%
b. Gross Profit for the year ended 31.03.2014 – Rs.80,000
c. Cash sales 33-1/3% of Net Credit Sales, Sales Returns 1/7 th of Gross credit sales.
d. Cash purchases – 20% of Net credit purchases, Purchases Returns 1/7 th of Gross
Credit Purchases
e. His sales for the year ended 31st March, 2015 were 20% higher than the previous
years
f. On 1st April, 2014 the stock level was raised by Rs.48,000 and stock was maintained
at this new level all throughout the year.
g. Stock as at 31.03.2014 Rs.60,000

Case 2:
a. Uniform rate of Gross Profit – 20%
b. Terms of Credit – Debtors 2 Months
c. Cash sales 33-1/3% of Net Credit Sales, Sales Returns 1/7 th of Gross credit sales
d. Cash purchases – 20% of Net credit purchases, Purchases Returns 1/7 th of Gross
Credit Purchases
e. His sales for the year ended 31st March, 2015 were 20% higher than the previous
year’s
h. On 1st April, 2014 the stock level was raised by Rs.48,000 and stock was maintained
at this new level all throughout the year.

Stock as at 31.03.2014 Rs.60,000, Trade Debtors as on 31.03.2014 : Rs.50,000

Case 3:
a. Uniform rate of Gross Profit – 20%
b. Terms of Credit – Creditors 1 Months
c. Cash sales 25% of Net Credit Sales, Sales Returns 1/7 th of Gross credit sales
d. Cash purchases – 20% of Net credit purchases, Purchases Returns 1/7 th of Gross
Credit Purchases
 e. His sales for the year ended 31st March, 2015 were 20% higher than the previous
year’s
f. On 1st April, 2014 the stock level was raised by Rs.48,000 and stock was maintained
at this new level all throughout the year.
g. Stock as at 31.03.2013 Rs.60,000. Stock as on 31.03.2014 Rs.60,000, Trade
Creditors as on 31.03.2014 : Rs.25,000

Case 4:
a. Stock as on 01.04.2013 was Rs.20,000
b. Rate of Gross Profit – No change
c. Terms of Credit – 2 Months, Creditors – 1 Month
d. Cash sales 33-1/3% of Net Credit Sales, Sales Returns 1/7 th of Gross credit sales
e. Cash purchases – 20% of Net credit purchases, Purchases Returns 1/7 th of Gross
Credit Purchases
f. His sales for the year ended 31st March, 2015 were 20% higher than the previous
year’s
g. On 1st April, 2014 the stock level was raised by Rs.48,000 and stock was maintained
at this new level all throughout the year.
h. Stock as at 31.03.2014 Rs.60,000, Trade Debtors as on 31.03.2014 : Rs.50,000,
Trade Creditors as on 31.03.2014: Rs.25,000
12. Prepare Debtors account, Creditors Account, Bills Receivable Account and Bills
Payable Account from the following information.
a. Goods purchased for Rs.15,00,000 of which 1/6th were for cash.
b. Goods returned – 20% of goods purchased on credit
c. 80% of goods were sold at a profit of 33-1/3% on sales. 5/6 th of the sales were on
credit.
d. Goods returned – 20% of goods sold on credit
e. Cheques received from customers Rs.5,00,000 of which cheques amounting to
Rs.2,50,000 were endorsed in favor of suppliers. Out of these endorsed cheques,
cheques for Rs.1,25,000 were dishonored. Out of these dishonored cheques, Drawees
of cheques of Rs.62,500 became insolvent and paid 50% only by means of bank draft.

f.
 i) Bills Receivable drawn upon the customers Rs.2,50,000 of bills which amounting
to Rs.1,25,000 were endorsed in favor of Suppliers. Out of these endorsed bills,
bills for Rs.62,500 were dishonored.
ii) Bills amounting to Rs.62,500 were discounted at a discount of 10% of bills
amounting to Rs.31,250 were dishonored.
iii) Out of these dishonored bills, Drawees of bills of Rs.46,875 became insolvent and
paid 50% only by means of a bank draft.
iv) Bills amounting to Rs.31,250 were discharged by Drawees before maturity at a
discount of 10% by means of a bank draft.
v) Bills amounting to Rs.15,625 were collected at maturity by means of a bank draft.
g. Bills payable accepted for Rs.3,12,500 of bills which amounting to Rs.1,56,250 were
discharged before maturity at a discount of 10% by means of a pay order and Bills
amounting to Rs.78,125 were also duly discharged at maturity by means of a pay
order.
h. Cash received from customers Rs.1,12,500 after a discount of 10%
i. Cash paid to suppliers Rs.1,40,625 after a discount of 10%
j. Make provision @ 10% for doubtful debts and Bills.
13. Calculate cash purchases and Gross Credit Purchases in each of the following
alternative cases:
a. Net purchases Rs.1,50,000, Purchase Returns Rs.50,000, Cash purchases were 25%
of Net Credit Purchases.
b. Net Purchases Rs.3,00,000, Purchase Returns Rs.1,00,000, Cash Purchases were
75% less than Net Credit Purchases.
c. Net Purchases Rs.6,00,000, Purchase Returns Rs.2,00,000, Net Credit Purchases
were 3times the Cash Purchases.
d. Net Purchases Rs.12,00,000, Purchase Returns Rs.4,00,000, Net Credit Purchases
were three times more than Cash Purchases.
e. Gross Profit Ratio 20%, Gross Profit Rs.30,000, Purchase Returns Rs.50,000, Cash
purchases were 25% of Net Credit Purchases, Closing Stock Rs.60,000, Opening
Stock Rs.25,000, Wages Rs.5,000.
f. Gross Profit on Cost 25%, Gross Profit Rs.60,000, Purchase Returns Rs,1,00,000,
Cash Purchases were 75% less than Net Credit Purchases, Closing Stock
Rs.1,20,000, Opening Stock Rs.50,000, Wages Rs.10,000.
 g. Gross Profit Ratio 20%, Cost of Goods Sold Rs.4,80,000, Purchase returns
Rs.2,00,000, Net Credit Purchases were three times the cash purchases, Closing
Stock Rss.2,40,000, Opening Stock Rs.1,00,000, Wages Rs.20,000.
h. Closing Creditors Rs.50,000, Creditors Turnover Ratio 6 times, Cash Purchases 20%
of Net Credit Purchases, Purchase returns Rs.30,000.
i. Closing Creditors Rs.1,00,000, Creditors Velocity 2 Months, Cash Purchases 20% of
Net purchases, Purchase Returns Rs.60,000.
j. Opening Creditors Rs.25,000, Closing Creditors Rs.30,000, Purchase Returns
Rs.30,000, Cash discount received Rs.8,750, Payment to Creditors – Cash
Rs.1,03,000; Cheques Rs.33,250, Bills accepted Rs.30,000, Cash Purchases 20% of
Net Purchases.
14. Calculate cash sales and gross credit sales in each of the following alternative cases:
Case a: Net sales Rs.1,50,000, Sales returns Rs.50,000, Cash Sales were 25% of net
credit sales.
Case b: Net sales Rs.3,00,000, Sales returns Rs.1,00,000, Cash sales were 75% less
than the Net Credit Sales
Case c: Net sales Rs.6,00,000, Sales returns Rs.2,00,000, Net Credit sales were 3 times
the cash sales
Case d: Net sales Rs.12,00,000, Sales returns Rs.4,00,000, Net credit Sales were 3
times more than the cash sales.
Case e: Gross profit ratio 20%, Gross profit Rs.30,000, Sales returns Rs.50,000, Cash
sales were 25% of net credit sales.
Case f: Gross profit on cost 25%, Gross profit Rs.60,000, Sales returns Rs.1,00,000,
Cash sales were 75% less than the net credit sales
Case g: Gross profit ratio 20%, cost of goods sold Rs.4,80,000, Sales returns
Rs.2,00,000, Net credit sales were 3 times the cash sales
Case h: Closing debtors Rs.50,000, Debtors turnover ratio 6 times, Cash sales 20% of
Net credit sales, Sales returns Rs.30,000
Case i: Closing debtors Rs.1,00,000, Debtors velocity 2 Months, Cash sales 20% of the
net sales, Sales returns Rs.60,000
Case j: Opening balance Rs.25,000, Closing Debtors Rs.28,000, Sales returns
Rs.30,000, Cash discount allowed Rs.8,750, Collection from Debtors: Cash Rs.1,03,000,
Cheques Rs.33,250 and Bills receivable Rs.30,000, Bad Debts Rs.2,000, Cash sales
20% of Net sales, Bad Debts Recovered Rs.6000, Provision for doubtful debts Rs.3,000,
Provision for discount on Debtors Rs.1,000.