Single Entry System - SYJC

Introduction

A single entry system is incomplete, defective and unscientific.

A system of book keeping in which the accountant or the businessman records only one aspect of business transaction and ignores the other aspect is called ‘single entry system’. Under this system of book keeping only record of cash and personal accounts are maintained.

Statement of affairs method:

Opening statement of affairs – opening capital at the beginning

Closing statement of affairs  - closing capital at the end

Statement of profit or loss for the year ended 31.3….

Statement of affairs as on 31^st march………………………

Liabilities	Amounts	Assets	Amounts
Loan from…… Bank loan Bank overdraft Sundry creditors Bills payable Income received in advance Outstanding expenses Capital (b/f)	Xx Xx Xx Xx Xx Xx Xx xx	Premises Goodwill Patents Trademark Land and building Plant and machinery Furniture & fixture Motor vehicles Investments Sundry debtors Bills receivable Closing stock Cash at bank Cash in hand Prepaid expenses Income receivable	Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx
	xxxxx		xxxxx

Capital = Assets – Liabilities

Statement of profit or loss for the year ended 31^st march………………………

Particulars	Amounts	Amounts
Closing capital at the end ADD: Drawings during the year.        Cash  Goods Interest on drawings for 6months only Less: Opening capital at the beginning Additional capital as on …….. Interest on capital (opening +additional) Profit before adjustment Add: Income And Gains during the year 1. Prepaid Expenses 2.Outstanding Income 3.Increase in the value of assets 4.decrease in the value of liability LESS: expenses & losses during the year 1. interest on loan 2.depreciation of fixed assets 3.bad debts 4.Reserve for bad and doubt full debts 5. Outstanding expenses 6. Salaries / commission to partners 7. income received in advance 8. Increase in the liability 9. Decrease in the value of assets	Xxx Xxx Xxx Xxx Xxx Xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx	Xxxx +Xxxx xxxxx -xxxx Xxxxx +xxxx Xxxxx -xxxxx
Net profit/loss for the year ended		xxxxx

If result comes in positive there is profit and if result comes negative there is loss

Adjustments - Working notes

Depreciation on fixed assets

Always calculate on closing balance of assets.

Ø  Depreciation = book value of assets X rate of depreciation

If there is additional purchase on 1june/1oct/1 jan.

Calculation of depreciation of assets	Amounts
Depreciation on opening balance of asset for 1year	Opening BV X rate X 1
Depreciation on additional purchase during the year	Purchase value X Rate Xmonths/12
Total	Xxxx

 Calculation of bad debts on sundry debtors

Bad debts = closing balance of debtors X rate of Bad debts

 R.D.D = (Debtors –Bad debts) X rate of RDD

Question – 1.

Mr. Ashish keeps his books on Single Entry System and his position on 31^st march, 2008 was as under:

Plant & machinery Furniture & Fittings Stock Sundry Debtors Bills receivable

Rs. 60000 Rs. 7200 Rs. 80000 Rs. 34000 Rs. 15000

Sundry Creditors Cash in hand Cash at bank Bills payable

Rs. 44000 Rs. 800 Rs. 12000 Rs. 16000

During the year 2008-09, Mr. Ashish had introduced additional capital Rs. 20000 in the business.

His drawings were Rs. 1500 per month during the year. In addition to this he had withdrawn goods worth Rs. 5000 for his personal use.

On 31^st march, 2009 his position was as follows:

Plant & machinery Furniture & Fittings Stock Sundry Debtors Bills receivable

Rs. 108000 Rs. 10000 Rs. 76000 Rs. 56000 Rs. 20000

Sundry Creditors Cash in hand Cash at bank Bills payable

Rs. 45000 Rs. 2000 Rs. 5000 Rs. 10000

You are required t prepare the followings:

Opening & Closing Statement of affairs 

Statement of profit or loss                               

Question – 2

Mr. Harshil keeps his books on Single Entry System and his position on 1^st April, 2005 & on 31^st march, 2006 was as under:

Particulars	1.4.2005(Rs.)	31.3.2006 (Rs.)
Sundry creditors	40000	70000
Cash in hand	600	1000
Stock	20000	24000
Cash at bank	21000	44000
Sundry debtors	80000	98000
Plant	40000	90000

Mr. Harshil drew Rs 1000 at the end of every month. He Introduced Rs. 50000 by way of additional capital.

Depreciate plant at 10% P.a., Creates Reserve for Doubt debts At 2.5% against sundry debtors. Addition to the plant was made in the middle of year.

You are required t prepare the followings:

Opening & Closing Statement of affairs                              

Statement of profit or loss                                                         

Question – 3

Following records of Mr. Raj were kept on single entry system:                                                

Particulars	31.3.2006	31.3.2007
Stock Furniture Plant and Machinery Loan Taken Bank balance Debtors creditors	15000 53500 42500 21000 1900 43000 18000	14000 44000 55500 21000 2100 35000 14900

Mr. Raj invested Rs. 4000 in the business. Also he had withdrawn Rs. 15000 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 and 31.3.2007, statement of profit and loss for the year ended 31.3.2007

Question – 4

Miss Sunita Keeps her books on single entry system and the following information is disclosed.

Particulars	31.3.2006        Rs.	31.3.2007        Rs.
Cash at bank	18000	27000
Stock in trade	15000	18700
Debtors	30000	45000
Furniture	7500	7500
Sundry creditors	26250	34000
Bills Payable	-	9000
Investment	-	15000

1.       Miss sunita transferred Rs 150 each month during first half year and Rs. 100 each month for the remaining period from her business to her private bank account by way of drawings and took away Rs. 350 worth of goods for private use.

2.       She sold her private vehicle for Rs. 3500 and proceeds were utilized for business.

3.       Furniture is to be depreciated by 10% and reserve for doubt debts is to be maintained at 5% on debtors.

Prepare:

1.       Open statement of affairs.

2.       Closing statement of affairs.

Statement of profit or loss for the year ended 31.3.2007.