13 Single Entry and Incomplete Records

Additional Exercise 1
Wendy is a stationery seller. She records the cash transactions only. Cash receipts and
payments for the year ended 30 June 2004 are as follows:
$
84
58,248
29,289
500
67

Sundry expenses
Cash sales
Cash purchases
Drawings
Postage
The bank statement shows the following:

Office rent
Purchases
Electricity
Wages and salaries
Creditors
Bal c/f

$
12,200
12,857
1,970
18,198
7,998
74,329
127,552

$
30,200
69,899
27,405
48

Bal b/f
Sales
Debtors
Bank interest

127,552

For the year ended 30 June 2004, the following information is available:
1. A debt of $178 was written off.
2. The company has office furniture costing $10,600. This year, the owner further
purchased a piece of office furniture $6,230. The estimated useful life of office furniture
is 10 years, with 10% estimated scrap value.
3. Accrued rent as at 1 July 2003 was $1,600. Outstanding rent as at 30 June 2004 was
$500.
4. The electricity bill showed that $150 was accrued as at 30 June 2004.
5. Debtors and creditors balances were as follows:

Debtors
Creditors
6.

1 July 2003 30 June 2004

$
$
2,469
3,708
1,979
2,744

Stock as at 1 July 2003 and 30 June 2004 were $5,110 and $10,750 respectively.

Required:
Prepare trading and profit and loss account for the year ended 30 June 2004.

Additional Exercise 2
Rosanna is a sole proprietor as a spaghetti wholesaler. It fails to record any transactions. The
bank statement for the year ended 31 December 2006 are as follows:
Receipts
Capital
Cash
Debtors
Sales

$
30,000
17,920
13,855
38,536

Payments
Creditors
Rent and rates
Office equipment
Drawings
Staff wages
Purchases

$
26,421
15,810
9,910
296
7,290
16,300

The bank balance as at 31 December 2006 was $37,524.

All cash takings after paying out the following will be deposited into bank:
$
Electricity
Drawings
General expenses

1,432
820
575

On 31 December 2005, the business has the following:

Office equipment at net book value

Debtors
Creditors
Stock
Loan from Beatles Ltd

$
17,522
7,860
5,982
8,432
20,600

The annual depreciation of office equipment is 10% on reducing balance.

On 31 December 2006, debtors and creditors were $25,040 and $10,480 respectively. Stock
amounted to $41,747. General provision for doubtful debts of $160 was created. The owner
had allowed cash discounts $699 to credit customers. Also, it had discounts received $796
from suppliers. Debts amounting to $521 had been written off.
Required:
a. Bank and Cash accounts
b. Trading and profit and loss account
c. Balance Sheet

Additional Exercise 3
Lockhart Company started a business on 1 April 2005 with cash $10,000. Besides, it opened a bank
account with $85,000. A summary of bank statement for the nine months ended 31 December 2005 is
as follows:
Dr
$
Cash sales
Rent and rates
Purchases of motor vans
Trade creditors
Drawings
Insurance
Trade debtors
Staff salaries

Cr
$
78,000

35,000
47,000
15,000
1,000
40,000
31,000
16,000

Additional information:
1.

Balance as at 31 December 2005 were as follows:

Trade debtors
Trade creditors
Motor vans at cost
Fixtures and fittings
Cash in hand

$
19,000
40,000
60,000
12,000
13,550

2.

Discounts allowed and discounts received amounted to $300 and $200 respectively.

3.

Motor vans and fixtures and fittings were to be depreciated at 25% and 10% respectively on book
value at the year end.

4.

All goods were sold at a margin of 70%.

5.

Bad debts written off during this year amounted to $250. Provision for doubtful debts was 2% on
remaining debtors.

6.

This year, cash payments were made as follows:

$
Drawings
Purchases of Fixtures and fittings
Purchases of motor van
General expenses
Stationery

500
12,000
13,000
270
380

7.

Purchases were made on credit only.

8.

Outstanding rent and rates as at 31 December 2005 amounted to $5,000.

9.

This year, the company paid insurance premium for four years starting from 1 July 2005.

Required:
a.

Cash and Bank account

b.

Trading and profit and loss account for the nine months ended 31 December 2005

c.

Balance sheet as at 31 December 2005

Additional Exercise 4
Alfred is a sole trader selling only one type of goods at a fixed margin. On 28 February 1986, a fire occurred
which destroyed all his stock and most of his financial records.
In a assessing the loss suffered by Alfred, you ascertained the following information:
(a)

Alfreds balance sheet as at 31 December 1985 was as follows:

Fixed assets
Stock
Trade debtors
Cash at bank
Cash in hand
Capital
Trade creditors
Sundry creditors

(b)

Alfreds trading account for the year ended 31 December 1985 was:
$
Sales
Opening stock
7,000
Purchases
41,000
48,000
Closing stock
8,000
Gross profit

$
12,000
8,000
5,000
3,000
200
28,200
23,450
4,300
450
28,200

$
50,000

40,000
10,000

(c)

The selling price increased by 20% as from 1 January 1986.

(d)

Alfred paid some expenses out of cash received on cash sales before banking them. During the period
from 1 January 1986 to 28 February 1986, he paid:
$
Wages
1,000
Repairs
500
Cash purchases
1,500
Personal use
2,000

(e)

Alfred had taken home a cash box containing $180 on 28 February 1986.

(f)

An analysis of his bank statement for the period from 1 January 1986 to 28 February 1986 revealed the
following:
$
Total receipts from debtors
5,060
Cash banking
5,100
Balance as at 28 February 1986
5,460
Payments were only made to trade creditors.

(g)

The unpaid invoices on 28 February 1986 amounted to $5,200 and the debtors outstanding was $4,800.

Required:
Calculate the cost of stock destroyed by the fire.
Hint: Use a bank account to find the payment made to trade creditors and a cash account to find the cash sales.