ACCOUNTS FROM INCOMPLETE

RECORDS – SINGLE ENTRY SYSTEM

MODULE II OF IV
1

CA. Prathap S.S

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
4
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 70,000

Creditors on 01.04.2011 81,000
Bills Receivables received during the year 47,000
Bills Payables during the year 53,000
Cash received from customers 1,56,000
Cash paid to suppliers 1,72,000
Bad Debts Recovered 16,000
Bills Receivables endorsed to Creditors 27,000
Bills Receivables dishonored by customers 5,000
Discount allowed by suppliers 7,000

(contd..) 5
....Ice sum
Discount allowed to customers 9,000
Endorsed Bills Receivables dishonored 3,000
Sales Return 11,000
Bills Receivables discounted 8,000
Discounted Bills Receivables dishonored 2,000
Cash Sales 1,68,500
Cash Purchases 1,97,800
Debtors on 31.03.2012 82,000
Creditors on 31.03.2012 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
Debtor’s A/c and Cash Sales is given.

Total Purchase = Cash Purchase + Credit Purchase

Sundry Creditor’s A/c will supply the Credit
Purchases and Cash Purchases is given .
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Steps to be Followed
Step 1:
Open Sundry Debtor’s a/c and Sundry Creditor’s
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/c’s.

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 JOURNAL ENTRIES
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Opening Sundry Debtors & Creditors

Sundry Debtors A/c

To Opening Balance 70,000

Sundry Creditors A/c

By Opening balance 81,000

11
 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. 53,000
To Bills Payables a/c 53,000

Sundry Creditors A/c

To Bills Payables 53,000 By Opening Balance 81,000

Bills Payables A/c

By Sundry Creditors 53,000

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Cash received from customers Rs. 1,56,000.
Cash A/c Dr. 1,56,000
To Sundry Debtors A/c 1,56,000

Sundry Debtors A/c

To Opening Balance 70,000 By Bills Receivables 47,000

By Cash 1,56,000

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 Cash paid to suppliers Rs.1,72,000

Sundry Creditor’s A/c Dr. 1,72,000

To Cash A/c 1,72,000

Sundry Creditors A/c

To Bills Payable 53,000 By Opening Balance 81,000

To Cash 1,72,000

15
 Bad Debts recovered Rs.16,000

Cash A/c Dr. 16,000

To Bad Debts recovered A/c 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. 27,000
To Bills Receivables A/c 27,000

Sundry Creditors A/c

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

Bills Receivables A/c

To Sundry Debtors 47,000 By Creditors 27,000

17
 Bills Receivables dishonoured by
customers Rs. 5,000
Debtors A/c Dr. 5,000
To Bills Receivables A/c 5,000
Sundry Debtors A/c
To Opening Balance 70,000 By Bills Receivables 47,000

To Bills Dishonoured 5,000 By Cash 1,56,000

Bills Receivables A/c

To Sundry Debtors 47,000 By Creditors 27,000
By Sundry Debtors 5,000

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 Discount allowed by suppliers Rs.7,000
Sundry Creditor’s A/c Dr. 7,000
To Discount allowed A/c 7,000

Sundry Creditors A/c

To Bills Payable 53,000 By Opening Balance 81,000

To Cash 1,72,000
To Bills Receivables 27,000
To Discount allowed 7,000

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 Discount allowed to customers Rs.9,000
Discount a/c Dr. 9,000
To Sundry Debtor’s A/c 9,000

Sundry Debtor’s A/c

To Opening Balance 70,000 By Bills Receivables 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 70,000 By Bills Receivables 47,000

To Bills rec. Dishonoured 5,000 By Cash 1,56,000

To Creditors(endorsed 3,000 By Discount 9,000

bill dishonoured)

Sundry Creditors A/c

To Bills Payable 53,000 By Opening Balance 81,000
To Cash 1,72,000 By 3,000
Debtors(endorsed
bill dishonoured)
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To Bills Receivables 27,000
To Discount allowed 7,000
 Sales Return Rs.11,000
Sales Return A/c Dr. 11,000
To Sundry Debtor’s A/c 11,000

Sundry Debtor’s A/c

To Opening Balance 70,000 By Bills Receivables 47,000

To Bills rec. Dishonoured 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
To Bills Receivables A/c 8,000

Bills Receivables A/c

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 Dr. 2,000
To Bank A/c 2,000

Sundry Debtors A/c

To Opening Balance 70,000 By Bills Receivables 47,000

To Bills rec. Dishonoured 5,000 By Cash 1,56,000

To Creditors 3,000 By Discount 9,000

To Bank (bills 2,000 By Sales Return 11,000

receivable
dishonoured)
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 Sundry Debtors A/c
To Balance b/d 70,000 By Bills Receivables 47,000
To Bills Receivables 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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 Bills Receivables A/c
To Sundry Debtors 47,000 By Creditors 27,000
By Debtors 5,000
By Bank 8,000
By Balance c/d 7,000

47,000 47,000

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 Sundry Creditors A/c
To Bills Payables 53,000 By Balance b/d 81,000
To Cash 1,72,000 By Debtors 3,000
To Bills 27,000 By Annual
Receivables Credit Purchase 2,70,000
To Discount 7,000 (bal.fig)
To Balance c/d 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 = Cash sales + Credit sales

= 1,68,500 + 2,25,000
Total Sales = 3,93,500

(b) Total Purchases =Cash purchases + Credit Purchase

= 1,97,800 + 2,70,000
Total Purchases = 4,67,800
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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 .

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 THANK YOU
31 Do keep moving forward ………