A I R - S E S M II IV: Ccounts From Ncomplete Ecords Ingle Ntry Ystem Odule OF

ACCOUNTS FROM INCOMPLETE
RECORDS SINGLE ENTRY SYSTEM

MODULE II OF IV
CA Intermediate (IPC) Course Paper 1 Accounting

Chapter 10
CA. Prathap. S.S
1
The Institute of Chartered Accountants of India
Disclaimer
1
2
3
ICAI, 2012
This lecture has been delivered by faculty members to supplement the

Study Material, Practice Manual and other content
The views expressed in this lecture are of the Faculty Member.
The content of this video lecture has not been specifically discussed
by the Council of the Institute or any of its Committees and the views
expressed herein may not be taken to necessarily represent the views
of the Council or any of its committees
This e-Lecture was Recorded on:

December 18, 2012
Important Notes
The e-Lectures, PPT, Podcasts
and Video lectures on ICAI
Cloud Campus aim to
supplement the Study Material,
Practice Manual and
Supplementary Study Material
The lecture recordings are made

according to the syllabus and
laws existing/ applicable as on
the date of recording.
Due to changes in law, there is

likely to be some time gap
between these changes and the
recording of updated lectures.
Hence, students are advised to

refer to the Study Material
including Supplementary Study
Material, if any, and other
relevant legislation for latest
provisions/ amendments
required for forthcoming
examination.
ICAI, 2012
Agenda
In Module II , we will focus on mastering the
Journal Entries concerning Accounts from
Incomplete Records .
To become very familiar with T accounts
Post the Journal Entries in them.
Arrive at Opening / Closing Balances
Ascertain the balances of the missing data .
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Introduction
Journal Entries are of fundamental importance in
Accounts .
Once you get the JE right , it is very difficult to go
wrong .
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IPCC MAY 2012

6
Ice Sum
(8 marks)
M/s Ice Ltd gives you the following

information to find out Total sales and
Total Purchases
Debtors on 01.04.2011
Creditors on 01.04.2011
Bills Receivables received during the year
Bills Payables during the year
Cash received from customers
Cash paid to suppliers
Bad Debts Recovered
Bills Receivables endorsed to Creditors
Bills Receivables dishonored by customers
Discount allowed by suppliers
70,000
81,000
47,000
53,000
1,56,000
1,72,000
16,000
27,000
5,000
7,000
(contd..)
ICAI, 2012
....Ice sum
Discount allowed to customers
Endorsed Bills Receivables dishonored
Sales Return
Bills Receivables discounted
Discounted Bills Receivables dishonored
Cash Sales
Cash Purchases
Debtors on 31.03.2012
Creditors on 31.03.2012
9,000
3,000
11,000
8,000
2,000
1,68,500
1,97,800
82,000
95,000
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Approach to the Sum

This is a classical sum wherein the complete
Sundry Debtors and Sundry Creditors ledgers have
to be opened .
Our approach will be transaction by transaction
passing Journal Entries and simultaneous
updating the Debtors and Creditors ledger
accounts .
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Requirements of the Sum

The requirement is calculation of Total Sales and
Total Purchases .
Total Sales
= Cash Sales + Credit Sales
Credit Sales will be obtained from Sundry
Debtors A/c and Cash Sales is given.
Total Purchase = Cash Purchase + Credit Purchase
Sundry Creditors A/c will supply the Credit
Purchases and Cash Purchases is given .
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10
Steps to be Followed
Step 1:
Open Sundry Debtors a/c and Sundry Creditors
A/c with the Opening balances given . The Bills
receivables and Bills Payable A/c can also be
opened.
Step 2:
Line by line pass Journal Entry and update both
the A/cs.
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JOURNAL ENTRIES
12
Opening Sundry Debtors & Creditors

Sundry Debtors A/c
To Opening Balance
70,000
Sundry Creditors A/c

By Opening balance
81,000
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Bills Receivables received during

the year Rs.47,000.
Bills Receivables A/c Dr. 47,000
To Sundry Debtors A/c
47,000
Sundry Debtors A/c
To Opening Balance
70,000
By Bills Receivables A/c
47,000
Bills Receivables A/c

To Sundry Debtors
47,000
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Bills Payables issued during the year

Rs.53,000.
Sundry Creditors a/c Dr.
To Bills Payables a/c
53,000
53,000

To Bills Payables
53,000
By Opening Balance
81,000
Bills Payables A/c

By Sundry Creditors
53,000
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ICAI, 2012
Cash received from customers Rs. 1,56,000.

Cash A/c
Dr.
1,56,000
1,56,000
Sundry Debtors A/c

To Opening Balance
70,000 By Bills Receivables

By Cash
47,000
1,56,000
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ICAI, 2012
Cash paid to suppliers Rs.1,72,000

To Cash A/c
Dr.
1,72,000
1,72,000

To Bills Payable
53,000
To Cash
1,72,000
By Opening Balance
81,000
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Bad Debts recovered Rs.16,000

Cash A/c
Dr.
To Bad Debts recovered A/c
16,000
16,000
This Journal Entry will not find a posting in the Sundry

Debtors A/c.
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Bills Receivables endorsed to

creditors Rs.27,000
Creditors A/c
Dr.
To Bills Receivables A/c
27,000
27,000

To Bills Payable
53,000
To Cash
1,72,000
To Bills Receivables
By Opening Balance
81,000
27,000

To Sundry Debtors
47,000
By Creditors
27,000
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Bills Receivables dishonoured by

customers Rs. 5,000
Debtors A/c
Dr. 5,000
5,000
Sundry Debtors A/c
To Opening Balance
To Bills Dishonoured
5,000
By Cash
47,000
1,56,000

To Sundry Debtors
47,000 By Creditors
By Sundry Debtors
27,000
5,000
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Discount allowed by suppliers Rs.7,000

To Discount allowed A/c
Dr.
7,000
7,000

To Bills Payable
53,000
To Cash
1,72,000
To Discount allowed
By Opening Balance
81,000
27,000
7,000
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Discount allowed to customers Rs.9,000

Discount a/c
Dr.
9,000
9,000
Sundry Debtors A/c

To Opening Balance
47,000
To Bills rec. Dishonoured
5,000
By Cash
1,56,000
By Discount
9,000
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Endorsed Bills Receivables dishonoured Rs.3,000

Debtors A/c
Dr. 3,000
To Creditors A/c
3,000
Sundry Debtors A/c
To Opening Balance
47,000
5,000
By Cash
1,56,000
To Creditors(endorsed
bill dishonoured)
3,000
By Discount
9,000

To Bills Payable
53,000
By Opening Balance
81,000
To Cash
1,72,000
By
Debtors(endorsed
bill dishonoured)
3,000
To Discount allowed
ICAI, 2012
27,000
7,000
23
Sales Return Rs.11,000

Sales Return A/c
Dr.
11,000
11,000
Sundry Debtors A/c

To Opening Balance
47,000
5,000
By Cash
1,56,000
To Creditors
3,000
By Discount
9,000
By Sales Return
11,000
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Bills Receivables discounted Rs.8,000

Bank A/c
Dr.
8,000
8,000

To Sundry Debtors
47,000
By Creditors
27,000
By Sundry Debtors
5,000
By Bank
8,000
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Discounted Bills Receivable dishonoured

Rs.2,000
Debtors A/c
To Bank A/c
Dr.
2,000
2,000
Sundry Debtors A/c

To Opening Balance
47,000
5,000
By Cash
1,56,000
To Creditors
3,000
By Discount
9,000
To Bank (bills
receivable
dishonoured)
2,000
By Sales Return
11,000
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Sundry Debtors A/c
To Balance b/d
47,000
5,000 By Cash
1,56,000
To Creditors
3,000 By Discount
9,000
To Bank
2,000 By Sales Returns
11,000
To Annual
Credit Sales
(bal.fig)
2,25,000 By Balance c/d
82,000
3,05,000
3,05,000
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To Sundry Debtors
47,000 By Creditors
By Debtors
By Bank
By Balance c/d
27,000
5,000
8,000
7,000
47,000
47,000
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To Bills Payables
To Cash
To Bills
Receivables
To Discount
To Balance c/d
53,000 By Balance b/d

81,000
1,72,000 By Debtors
3,000
27,000 By Annual
Credit Purchase 2,70,000
7,000
(bal.fig)
95,000
3,54,000
3,54,000
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Bills Payables A/c

To Balance c/d
53,000 By Creditors
53,000
53,000
53,000
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Final Answer
(a) Total Sales
Total Sales
=
=
=
Cash sales
1,68,500
3,93,500
+ Credit sales
+ 2,25,000
(b) Total Purchases =Cash purchases + Credit Purchase

=
1,97,800 + 2,70,000
Total Purchases =
4,67,800
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ICAI, 2012
Summary
In this II module , we learnt some

important Journal Entries, creation of Sundry
Debtors & Creditors A/c and ascertaining the
Annual Credit Sales and Annual Credit
Purchases .
32
ICAI, 2012
THANK YOU
33

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ACCOUNTS FROM INCOMPLETE

RECORDS SINGLE ENTRY SYSTEM

CA Intermediate (IPC) Course Paper 1 Accounting

The Institute of Chartered Accountants of India

This lecture has been delivered by faculty members to supplement the

The views expressed in this lecture are of the Faculty Member.

This e-Lecture was Recorded on:

The lecture recordings are made

Due to changes in law, there is

Hence, students are advised to

IPCC MAY 2012

M/s Ice Ltd gives you the following

Approach to the Sum

Requirements of the Sum

Opening Sundry Debtors & Creditors

Sundry Creditors A/c

Bills Receivables received during

By Bills Receivables A/c

Bills Receivables A/c

Bills Payables issued during the year

Sundry Creditors A/c

Bills Payables A/c

Cash received from customers Rs. 1,56,000.

Sundry Debtors A/c

70,000 By Bills Receivables

Cash paid to suppliers Rs.1,72,000

Sundry Creditors A/c

Bad Debts recovered Rs.16,000

This Journal Entry will not find a posting in the Sundry

Bills Receivables endorsed to

Sundry Creditors A/c

Bills Receivables A/c

Bills Receivables dishonoured by

70,000 By Bills Receivables

Bills Receivables A/c

Discount allowed by suppliers Rs.7,000

Sundry Creditors A/c

Discount allowed to customers Rs.9,000

Sundry Debtors A/c

70,000 By Bills Receivables

To Bills rec. Dishonoured

Endorsed Bills Receivables dishonoured Rs.3,000

70,000 By Bills Receivables

To Bills rec. Dishonoured

Sundry Creditors A/c

Sales Return Rs.11,000

Sundry Debtors A/c

70,000 By Bills Receivables

To Bills rec. Dishonoured

Bills Receivables discounted Rs.8,000

Bills Receivables A/c

Discounted Bills Receivable dishonoured

Sundry Debtors A/c

70,000 By Bills Receivables

To Bills rec. Dishonoured

Sundry Debtors A/c

Bills Receivables A/c

Sundry Creditors A/c

53,000 By Balance b/d

Bills Payables A/c

(b) Total Purchases =Cash purchases + Credit Purchase

In this II module , we learnt some

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