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Financial Accounting - B, Com Sem I NEP 2022 PDF
Financial Accounting - B, Com Sem I NEP 2022 PDF
Section B
2. Difference between Single Entry System and Double Entry System
Sl Single Entry System Double Entry System
1 Tells about cash, debtors and creditors Tells about every business financial
cash balances only. entity.
2 Records transactions related to business. Records all effects of transactions.
3 Incomplete system of recording the Complete system of recording the
transactions. transactions.
4 Can easily record fraud transactions. Difficult to record fraud transactions.
5 Hard to find errors. Easy to identify errors.
6 Suitable for small business. Suitable to all types of business.
7 Not accepted by taxation department. Accepted by taxation department.
8 Takes lot of time in calculation profit/loss. Easy to calculate profit/loss.
Dr Bharat’s Ac Cr
To Joint Venture A/c 5,00,000 By Joint Venture A/c 1,70,000
By Joint Venture A/c 60,000
By Bank DD (Fin Settlement) 2,70,000
5,00,000 5,00,000
To Venturer’s A/c
Amit 1/2 4,75,000
Sunil 1/2 4,75,000 9,50,000
20,00,000 20,00,000
Dr Venturer’s A/c Cr
Particulars Amit Sunil Particulars Amit Sunil
To Joint Venture 9,00,000 10,00,000 By Joint Bank A/c 10,00,000 5,00,000
To Joint Venture 1,00,000 -- By Joint Venture A/c 3,00,000 2,00,000
Machinery Supplied
To Joint Bank A/c 7,75,000 1,75,000 By Joint Venture A/c 4,75,000 4,75,000
Share of Profit
17,75,000 11,75,000 17,75,000 11,75,000
Note:
In the above Problem Profits can also be distributed to Venture’s in
their Capital Ratio i.e 2 : 1
9. In the books of General Ledger Adjustment A/c
DEBTORS LEDGER ADJUSTMENT A/C
Date Particulars Amount Date Particulars Amount
To Balance B/d 1,00,000 By Balance B/d 5,000
To Debtors Ledger A/c By Debtors Ledger A/c
Credit Sales 5,00,000 By Cash Received 3,00,000
By Bills Receivable 90,000
By Bad debts 5,000
To Balance C/d By Balance ….C/d 2,00,000
6,00,000 6,00,000
Invoice Price = Cost Price + Loading = 2,000 + 20% x 2,000 =2,000 + 400 = 2,400
Therefore Cost Price/ Radio = 2,000 Invoice Price/ Radio = 2,400 Loading/ Radio = 400