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  • Single Entry and Incomplete Record

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    Sumeet Kumbhani
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    Single Entry and Incomplete Record discusses accounting concepts such as single and double entry systems, and calculating profits using a statement of affairs. It also covers calculating goods stolen or lost by fire using the statement of affairs method. The learning objectives are to calculate profits from single entry, calculate stolen or lost goods, and calculate closing stock after the balance sheet date using methods like the statement of affairs, total debtors/creditors accounts, accounting ratios, mark-up, and margin.

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    Single Entry

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    Single Entry and Incomplete Record discusses accounting concepts such as single and double entry systems, and calculating profits using a statement of affairs. It also covers calculating goods stolen or lost by fire using the statement of affairs method. The learning objectives are to calculate profits from single entry, calculate stolen or lost goods, and calculate closing stock after the balance sheet date using methods like the statement of affairs, total debtors/creditors accounts, accounting ratios, mark-up, and margin.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    74 views22 pages

    Single Entry and Incomplete Record

    Uploaded by

    Sumeet Kumbhani
    Single Entry and Incomplete Record discusses accounting concepts such as single and double entry systems, and calculating profits using a statement of affairs. It also covers calculating goods stolen or lost by fire using the statement of affairs method. The learning objectives are to calculate profits from single entry, calculate stolen or lost goods, and calculate closing stock after the balance sheet date using methods like the statement of affairs, total debtors/creditors accounts, accounting ratios, mark-up, and margin.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 22

    Single Entry and Incomplete Record

    What is Double Entry System? ()


    Every transaction affects TWO items. Each entry is made TWICE.

    Account

    Account

    Do small shops use Double Entry System? Why?


    No!
    Dont

    know how to do Costly

    What would happen if .


    accounting
    records will be

    destroyed

    Learning Objectives
    Calculate

    profits from single entry system Calculate goods stolen or lost by fire Calculate closing stock after balance sheet date

    Methods
    3 Methods
    Statement of Affairs Total Debtors A/C Total Creditors A/C Accounting Ratios Mark-up Margin

    Calculating Profit by using Statement of Affairs

    Find

    Profit / Loss from the balances of Capital /

    Balance Sheet
    Capital
    $

    Balance at year start


    Add: Additional Capital

    1 000
    500 1 500

    Add: Net Profit


    Less: Drawings

    800
    2 300 300 2 000

    Balance at year end

    Opening Capital Net Profit

    Additional Capital Drawings

    = Closing Capital

    Net Profit

    = Closing Capital

    Drawings

    Additional Capital Opening Capital

    How to find
    Opening

    Capital ? Closing Capital ?

    Remember?

    Assets

    Capital

    Liabilities

    Capital

    Assets

    Liabilities

    Preparation of Statement of Affairs


    Statement of Affairs
    It is used to find the opening & closing capitals.
    Then, Net Profit could be calculated.

    Total Debtors & Total Creditors


    In

    this chapter --total debtors a/c is used to find the amount of Credit Sales. -- total creditors a/c is used to find the amount of Credit Purchases.

    Mark-up & Margin


    Mark-up Profit shown as a percentage of cost

    Profit

    Cost

    Mark-up & Margin


    Margin Profit shown as a percentage of selling price

    Profit Sales

    Goods Stolen or Lost by Fire

    Value of the stolen / destroyed goods should be calculated for an insurance claim or tax purpose.

    Calculation of Stock Loss


    Method 1: Statement Idea:

    Burglary: 28 May 2000


    Margin 25%
    1/4/00 28/5/00 Purchases $3 000

    ?
    Stock 31/3/00 $4 500 1/4/00 28/5/00 Sales $8 000

    Calculation of Value of Stock Stolen on 28 May 2000


    $
    Stock at cost at 31 March 2000

    $
    4 500

    Add: Purchases for the period


    Less: Cost of Goods Sold

    3 000

    8000 x 25%
    8 000
    2 000

    7 500

    Sales for the period


    Less: Profit Loading Stock Stolen on 28 May 2000

    6 000 1 500

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