Page 175 - DEBK-XI(2020)

Accounts from Incomplete Records—Single Entry System 20.3

Step 2: Prepare Cash Book and complete it as much as possible. If both the sides of Cash Book are
not matched, then the difference in both the sides is taken as one of the following items:
If credit side exceeds debit side If debit side exceeds credit side
• Opening Cash or Bank Balance or Closing Bank Overdraft • Closing Cash or Bank Balance or Opening Bank Overdraft
• Cash Sales • Cash Purchases
• Sundry Income • Sundry Expenses
• Capital Introduced • Drawings
• Collection form Debtors • Payment to Creditors
• Collection from Bills Receivable • Bills Payable Discharged
• Sale of Fixed Assets • Purchase of Fixed Assets
Step 3: Prepare Total Debtors Account to find the missing values of credit sales or closing
balance or cash received from debtors or opening balance of debtors.

Step 4: Prepare Bills Receivable Account to find the opening or closing balance of
Bills Receivable or other information.

Step 5: Prepare Total Creditors Account to find the missing value of credit purchases or
closing balance or cash paid to creditors or opening balance of creditors.
Step 6: Prepare Bills Payable Account to find the opening or closing balance of
Bills Payable or other information.
Step 7: Calculate Total Sales and Total Purchases.
Total Sales = Cash Sales + Credit Sales
Total Purchases = Cash Purchases + Credit Purchases

Step 8: Calculation of the Values of Opening Stock and Closing Stock with the help of rate
of Gross Profit and Memorandum Trading Account.

Step 9: Direct and Indirect Expenses are taken from the credit side of Cash Book.
Step 10: Accrued Income is added and Income Received in Advance is deducted from the
relevant income.
Step 11: Determining Balances of Fixed Assets (e.g., Furniture, Machinery, etc.).

Solved Questions

1. Calculate the missing value (figure): `

Capital in the beginning 30,000
Profit made during the year 5,000
Drawings 10,000
Capital introduced during the year 15,000

Capital at the end ?