Micheal Vaz solutions for Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board chapter 8 - Single entry System [Latest edition]

Answer the following question in one sentence only.
What is single entry system?

Answer in one sentence only.
What is statement of affairs?

Answer in one sentence only
In which method statement of affairs is prepared?

Answer in one sentence only.
Which type of transactions are recorded in Single Entry System?

Answer in one sentence only.
Can a trial balance be prepared under Single Entry System?

Answer in one sentence only.
Which type of accounts are maintained under Single Entry System?

Write the word / term / phrase which can substitute the following Statement.
A statement similar to Balance Sheet.

Answer in one sentence only.
Why is it difficult to ascertain the correct profit or loss under Single Entry system?

Answer in one sentence only.
How is the closing capital calculated under Single Entry System?

Answer in one sentence only.
Which Statement is prepared under the Single Entry System to ascertain profit?

Answer in one sentence only.
Which types of accounts are normally not kept under Single Entry System?

Write the word / term / phrase which can substitute the following Statement.
A system of book-keeping in which both the aspects of transaction are recorded.

Write the word / term / phrase which can substitute the following Statement.
An excess of assets over liabilities.

Write the word / term / phrase which can substitute the following Statement.
A system of accounting which is not scientific.

Write the word / term / phrase which can substitute the following Statement.
Name the method in which only cash and personal transactions are recorded.

Write the word / term / phrase which can substitute the following Statement.
The method in which Trading Account, Profit and Loss Account and Balance Sheet can be prepared.

Write the word / term / phrase which can substitute the following Statement.
A statement similar to Balance Sheet.

Write the word / term / phrase which can substitute the following Statement.
A statement similar to Balance Sheet prepared to ascertain the amount of closing capital.

Write the word / term / phrase which can substitute the following Statement.
System of accounting normally suitable to small business organization.

Write the word / term / phrase which can substitute the following Statement.
The accounting method in which profit is calculated by comparing opening and closing statements of affairs.

Write the word / term / phrase which can substitute the following Statement.
The system of accounting which is most scientific and reliable.

Write the word / term / phrase which can substitute the following Statement.
When Closing Capital is greater than Opening Capital it denotes ___________

Write the word / term / phrase which can substitute the following Statement.
Generally incompleted records are maintained by _____________

Select the most appropriate answer the alternatives given below and rewrite the Sentence.
The capital in the beginning of the accounting year is ascertained by preparing_____________.

Select the most appropriate answer the alternatives given below and rewrite the Sentence.
Under Single entry System only _______________.

State True or False.
Under Single Entry System it is not possible to prepare Trial Balance.

Select the most appropriate answer the alternatives given below and rewrite the Sentence
The Capital balances are ascertained by preparing _______________.

Select the most appropriate answer the alternatives given below and rewrite the Sentence
Further capital introduced during the year is _______________ from closing capital in order to find-out the correct profit.

Select the most appropriate answer the alternatives given below and rewrite the Sentence
In statement of profit or loss interest on Capital in shown as _____________.

Select the most appropriate answer the alternatives given below and rewrite the Sentence.
If Opening Capital is Rs 40,000, Closing Capital is 90,000 Rs, Withdrawals is Rs 5,000 and additional Capital brought in is Rs 10,000 Profit is Rs ______________.

Select the most appropriate answer the alternatives given below and rewrite the Sentence.
Under Single Entry System Opening Capital = Opening Assets Less _____________.

State True or False.
Statement of profit is just like Profit and Loss Account.

State True or False.
Single Entry System is based on certain rules and principles.

State True or False.
All transactions are recorded in Single Entry System.

State True or False.
Arithmetical accuracy can’t be checked in single entry.

State True or False.
Under Single Entry System it is not possible to prepare Trial Balance.

State True or False.
Only cash transactions and personal transactions are recorded in Single entry.

State True or False.
Drawings made during the year decreases the profit under single entry system.

State True or False.
Statement of profit shows financial position of business.

State True or False.
Double Entry System is scientific method of maintaining books of accounts.

State True or False.
Single Entry System is not useful for large business.

Mr. Mangesh is dealing in business. He maintains his accounting with Single Entry. The following are details of his business.

Mr. Mangesh introduced Rs 10,000 as additional Capital. He spent Rs 45,000 for personal use Depreciate Land and Building by Rs 5,000. Provide 5% R.D.D. on Debtors.

Prepare: Opening Statement of affairs, Closing Statement of affairs and the statement of profit or loss.

Mrs. Ankita keeps her books under Single Entry System and gives the following information.

Mrs. Ankita withdrew Rs 4,000 for her personal use. She received Rs 15,000 from her father as gift, which she brought into the business.
Additional furniture was purchased on 1^st October 2011. Depreciate furniture by 10% p.a.Write off Rs 1,000 as bad and provide 5% R.D.D. on debtors.
Find the profit or loss of her business for the year ended 31^st March, 2012.

Miss Kavita Commenced her business with a Capital of Rs 1,30,000 on 1^st April 2010. Her financial Position was as follows as on 31^st March, 2011, Cash Rs 9,120, Stock Rs 10,250, Bills Payable Rs 12,880, Creditors Rs 17,180, Debtors Rs 31,550, Bill Receivable Rs 29,120, Premises Rs 85,750, Vehicles Rs 40,250.
Additional Information:
1) She brought additional capital Rs 20,000 on 30^th September 2010. Interest on capital is to be provided at 5% p.a.
2) She withdrew Rs 10,000 for personal use on which interest is to be charged at 6% p.a.
3) R.D.D. is to be provided at 2½% p.a. after providing bad debts Rs 1,000.
4) Depreciate Vehicles at 2% and Premises at 4%.

Mahendra Keeps his books by Single Entry System. His position on 1^st April 2012, was as follows : Cash in Hand Rs 7,900, Cash at Bank Rs 20,000, Debtors Rs 18,000. Stock Rs 29,000, Motor Car Rs 5,000, Bank Loan Rs 18,000 and Outstanding Expenses Rs 2,700.
On 1^st October, 2012 Mahendra introduced Rs 10,000 as further capital in the business and withdrew on the same date Rs 7,000 out of which he spent Rs 5,000 on the purchase of a Machinery for the business.
On 31^st March 2013  his position was as follows: Cash in Hand Rs 7,600, Cash at Bank Rs 22,000, Stock Rs 30,000 Debtors Rs 25,700, Furniture Rs 6,000, Creditors Rs 25,200, and prepaid expenses Rs 200.
Prepare a Statement showing the Profit or Loss made by him during the year ended 31^st March, 2013 and Opening and Closing Statement of affairs. Considered the following adjustments also.
1) Depreciate Motor Car and Furniture @ 10% p.a. Furniture was purchased on 1^st Oct., 2012.
2) Provide Rs 1,200 for Bad debts and provide 5% R.D.D.
3) Goods taken for personal use by Mahendra amounting to Rs 1,500
4) Provide interest on capital @ 10% p.a.

Mr. Suhas a small trader provides you the following details about his business.

Additional Information:
1) On 1^st October, 2012 he withdrew Rs 40,000 for his personal use.
2) Charge interest on drawings Rs 2,000.
3) He had also withdrawn Rs 30,000 for Rent of his residential flat.
4) Depreciate furniture by 10% and write off Rs 2,000 from motor van.
5) 10% Government Bonds were purchased on 1^st October, 2012.
6) Allow interest on capital at 10% p.a.
7) Rs 2,000 is written off as bad debts and provide 5% R.D.D. on Debtors.
Prepare: Opening statement of affairs, closing statement of affairs and statement of profit or loss for the year ended 31^st March, 2012.

Mr. Govind keeps his books on single entry system and disclosed the following information of his business.

Additional Information
1) Mr. Govind transferred Rs 300 per month during first half year and Rs 200 each month for the remaining period from his business to his personal account. He also took goods of Rs 700 for private use.
2) Mr. Govind sold his personal asset for Rs 7,000 and brought the proceeds into his business.
3) Furniture to be depreciated by 10%
4) Provide R.D.D.5% on Debtors.
Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended 31^st March 2011.

Sun and Moon are partners in a firm sharing profit and losses in the ratio of 3:2. They kept their books under single entry system. On 1^st April 2010 the following statement of affairs was extracted from their Books.

On 31^st March 2011 theirs assets and liabilities were as follows. Plant and Machinery Rs 44,000 stock Rs 32,000 cash in hand Rs 12,000 creditors Rs 8,000 Debtors Rs 20,000 Bills payable Rs 15,000 Drawings during the year Sun Rs 5,000 and Moon Rs 3,000.

Prepare: Closing statement of affairs and statement of profit or Loss for the year ended 31^st March 2011 after considering the following adjustments.
1) Plant is found overvalued by 10% and stock is found undervalued by 20%.
2) R.D.D. is to be created at 10% on Debtors.
3) Interest on Capital is to be allowed at 10% p.a. and 10% p.a. on Drawings

A and B are in Partnership. Their Capitals on 1^st April 2010 were Rs 30,000 each. The assets and liabilities as on 31^st March 2011 were as follows. Cash in hand Rs 2,400, Cash at Bank Rs 16,000 Bill Receivable Rs 4,000, Debtors Rs 28,600 Stock Rs 26,000. Machinery Rs 14,000, furniture Rs 8,000, Bills Payable Rs 3,000 Sundry creditors Rs 6,000 Outstanding salary Rs 800.

Additional Information:
1) Provide Rs 600 as Bad Debts and 5% R.D.D.
2) Depreciate furniture @ 5% p.a. and Machinery @ 10% p.a.
3) Stock is found undervalued by Rs 2,000.
4) Sundry creditors are found overvalued by Rs 1,000.
5) Prepaid Insurance Rs 2,000.
6) Additional capital introduced by partners Rs 4,000 each.
7) Drawings of ‘A’ Rs 3,000 and ‘B’ Rs 2,000 calculate the profit for the year ended 31^st March 2011.

Asha and Usha were partners sharing profits and losses in the ratio of 2:1. Prepare their statement Profit or Loss for the year ended 31^st March, 2012 from the following statement of Affairs as on 31^st March, 2011.

The assets and liabilities as on 31^st March 2012 were:
Sundry creditors Rs 35,000 Bill Receivable Rs 18,000 Bills payable Rs 15,000 cash in hand Rs 3,000, Stock Rs 32,000 Cash of bank Rs 6,000 Debtors Rs 38,000. There were no changes in fixed assets.

 Further Information:
1) Asha and Usha had drawn Rs 10,000 and Rs 8,000 respectively for personal use.
2) They also brought additional capital of Rs 6,000 and Rs 4,000 respectively.
3) Building to be depreciated by 5% and machinery and furniture at 10%.
4) Charge interest at 10% p.a. on opening capitals and allow interest on drawings of Asha and Usha were Rs 700 and Rs 500 respectively.