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Sampurna 2.0 September 2025

Accounts From Incomplete Records DPP-02

1. Ram carried on business as retail merchant. He has not maintained regular account books. However, he always
maintained ₹ 10,000 in cash and deposited the balance into the bank account. He informs you that he has sold goods
at profit of 25% on sales.
Following information is given to you:
Assets & Liabilities As on 01.04.2022 As on 31.03.2023
Cash in Hand 10,000 10,000
Sundry Creditors 40,000 90,000
Cash at Bank 50,000(Cr.) 80,000(Dr.)
Sundry Debtors 1,00,000 3,50,000
Stock in Trade 2,80,000 ?
Ram’s Capital 3,00,000
Analysis of his bank pass book reveals the following information:
(a) Payment to creditors ₹ 7,00,000
(b) Payment for business expenses ₹ 1,20,000
(c) Receipts from debtors ₹ 7,50,000
(d) Loan ₹ 1,00,000 taken on 1.10.2022 at 10% per annum
(e) Cash deposited in the bank ₹ 1,00,000
He informs you that he paid creditors for goods ₹ 20,000 in cash and salaries ₹ 40,000 in cash. He has drawn ₹
80,000 in cash for personal expenses. During the year Ram had not introduced any additional capital. Surplus cash
if any, to be taken as cash sales.
All purchases are on credit basis.
Prepare: Trading and Profit & Loss A/c for the year ended 31.3.2023 and Balance Sheet as at 31st March, 2023.

2. From the following information in respect of Mr. X, prepare Trading and Profit and Loss Account for the year
ended 31st March, 2023 and a Balance Sheet as at that date:
Particulars 31-03-2022 (₹) 31-03-2023 (₹)
1. Liabilities and Assets:
Stock in trade 1,60,000 1,40,000
Debtors for sales 3,20,000 ?
Bills receivable – ?
Creditors for purchases 2,20,000 3,00,000
Furniture at written down value 1,20,000 1,27,000
Expenses outstanding 40,000 36,000
Prepaid expenses 12,000 14,000
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Cash on hand 4,000 3,000

Bank Balance 20,000 1,500
2. Receipts and Payments during 2022-2023:
Collections from Debtors (after allowing 2-1/2% discount) 11,70,000
Payments to Creditors (after receiving 2% discount) 7,84,000
Proceeds of Bills receivable discounted at 2% 1,22,500
Proprietor’s drawings 1,40,000
Purchase of furniture on 30.09.2022 20,000
12% Government securities purchased on 1-10-22 2,00,000
Expenses 3,50,000
Miscellaneous Income 10,000
3. Sales are effected so as to realize a gross profit of 50% on cost.
4. Capital introduced during year by proprietor by cheques was omitted to be recorded in Cash Book,
though bank balance of 1,500 on 31st Mar, 2023 (as shown above), is after taking same into account
5. Purchases and Sales are made only on credit.
6. During the year, Bills Receivable of ₹ 2,00,000 were drawn on debtors. Of these, Bills amounting to ₹
40,000 were endorsed in favour of creditors. Out of this latter amount, a Bill for ₹ 8,000 was
dishonoured by the debtor.

3. Mr. Prakash furnishes following information for his readymade garments business:
Receipts and Payments during 2022-23:
Receipts Amount Payments Amount
Bank Balance as on 1-4-22 16,250 Payment to Sundry Creditors 3,43,000
Received from Sundry Debtors 4,81,000 Salaries 75,000
Cash sales 1,70,800 General Expenses 22,500
Capital brought in the business during
50,000 Rent and Taxes 11,800
the year
Interest on Investment received 9,750 Drawings 96,000
Cash Purchases 1,22,750
Balance at Bank on 31-03-23 36,600
Cash in hand on 31-03-23 20,150
7,27,800 7,27,800
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Particulars of other Assets and Liabilities are as follows:

1st April, 2022 31st March, 2023
(₹) (₹)
Machinery 85,000 85,000
Furniture 24,500 24,500
Trade Debtors 1,55,000 ?
Trade Creditors 60,200 ?
Stock 38,600 55,700
12% Investment 85,000 85,000
Outstanding Salaries 12,000 14,000
Additional information:
a) 20% of Total sales and 20% of total purchases are in cash.
b) Of the Debtors, a sum of 7,200 should be written off as Bad debt and further a reserve for doubtful debts is to
be provided @ 2%.
c) Provide depreciation @ 10% p.a. on Machinery and Furniture.
You are required to prepare Trading and Profit & Loss account for the year ended 31st March, 2023, and Balance
Sheet as on that date.

4. Archana Enterprises maintain their books of accounts under single entry system. The Balance Sheet as on 31st
March, 2022 was as follows:
Liabilities Amount (₹) Assets Amount (₹)
Capital A/c 6,75,000 Furniture & fixtures 1,50,000
Trade creditors 7,57,500 Stock 9,15,000
Outstanding exp. 67,500 Trade debtors 3,12,000
Prepaid insurance 3,000
Cash in hand & at bank 1,20,000
15,00,000 15,00,000
The following was the summary of cash and bank book for year ended 31st March, 2023:
Receipts Amount (₹) Payments Amount (₹)
Cash in hand & at 1,20,000 Payment to trade creditors 1,24,83,000
Bank on 1st April, 2022 Sundry expenses paid 9,31,050
Cash sales 1,10,70,000 Drawings 3,60,000
Cash in hand & at Bank on 31st
Receipts from trade debtors 27,75,000 1,90,950
March, 2023
1,39,65,000 1,39,65,000
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Additional Information:
a) Discount allowed to trade debtors and received from trade creditors amounted to ₹ 54,000 and ₹ 42,500
respectively. (for the year ended 31st March, 2023)
b) Annual fire insurance premium of ₹ 9,000 was paid every year on 1st August for the renewal of the policy.
c) Furniture & fixtures were subject to depreciation @ 15% p.a. on diminishing balance method.
d) The following are the balances as on 31st March, 2023:
• Stock ₹ 9,75,000
• Trade debtors ₹ 3,43,000
• Outstanding expenses ₹ 55,200
e) Gross profit ratio of 10% on sales is maintained throughout the year.
You are required to prepare Trading and Profit & Loss account for the year ended 31st March, 2023, and Balance
Sheet as on that date.
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Hints and Solutions

1. (H & S)
Trading and P & L A/c for year ended 31/3/2023
Particulars Amount Particulars Amount
To Opening Stock 2,80,000 By Sales
To Purchases 7,70,000 Cash 2,40,000
To GP@ 25% 3,10,000 Credit 10,00,000 12,40,000
By Closing Stock (Bal. Fig.) 1,20,000
13,60,000 13,60,000
To Salaries 40,000 By G.P. b/d 3,10,000
To Business expenses 1,20,000
To Interest on Loan
5,000
(1,00,000*10%*6/12)
To Net Profit 1,45,000
3,10,000 3,10,000
Balance Sheet as at 31/3/2023
Liabilities Amount Assets Amount
Loan (incl. interest) 1,05,000 Cash in hand 10,000
Creditors 90,000 Cash at bank 80,000
Capital Debtors 3,50,000
Opening 3,00,000 Stock 1,20,000
Net profit 1,45,000
Drawings (80,000) 3,65,000
5,60,000 5,60,000
Working Notes
Debtors A/c
Particulars Amount Particulars Amount
To Balance b/d 1,00,000 By Bank 7,50,000
To Credit sales (Bal. Fig.) 10,00,000 By Balance c/d 3,50,000
11,00,000 11,00,000
Creditors A/c
Particulars Amount Particulars Amount
To Bank 7,00,000 By Balance b/d 40,000
To Cash 20,000 By Purchases (Bal. Fig.) 7,70,000
To Balance c/d 90,000
8,10,000 8,10,000
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Cash and Bank A/c

Particulars Cash Bank Particulars Cash Bank
To Balance b/d 10,000 - By Balance b/d - 50,000
To Cash (contra) 1,00,000 By Bank (contra) 1,00,000
To Debtors - 7,50,000 By Salaries 40,000
To Ram loan - 1,00,000 By Creditors 20,000 7,00,000
To Sales (Bal. Fig.) 2,40,000 By Drawings 80,000 -
By Business expenses - 1,20,000
By Balance c/d 10,000 80,000
2,50,000 9,50,000 2,50,000 9,50,000

2. (H & S)
Trading and P & L A/c for year ended 31/3/2023
Particulars Amount Particulars Amount
To Opening Stock 1,60,000 By Sales 13,98,000
To Purchases 9,12,000 By Closing Stock 1,40,000
To G.P. 4,66,000
15,38,000 15,38,000
By GP b/d 4,66,000
To Dep. on Furniture 13,000 By Misc. income 10,000
To Expenses for year
By Interest on Govt. securities (2,00,000
( 3,50,000 + 36,000 – 40,000 3,44,000 12,000
× 12% x)
+ 12,000 – 14,000)
To Discount Allowed By Discount Received 16,000
Debtor 30,000
B/R 2,500 32,500
To Net Profit 1,14,500
5,04,000 5,04,000
Balance Sheet as at 31/3/23
Liabilities Amount Assets Amount
Creditors 3,00,000 Furniture (1,30,000 - 13,000) 1,27,000
O/s Expenses 36,000 12% Govt. securities at cost 2,00,000
Capital Accrued Int. on Investment 12,000
Opening 3,76,000 Stock 1,40,000
Net Profit 1,14,500 Debtors 3,26,000
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Additional 1,72,000 Bills Receivable 35,000

Drawings (1,40,000) 5,22,500 Cash in hand 3,000
Bank 1,500
Prepaid expenses 14,000
8,58,500 8,58,500
Working Notes:
Balance Sheet as at 31/3/2022
Liabilities Amount Assets Amount
Creditors 2,20,000 Furniture 1,20,000
O/s Expenses 40,000 Stock 1,60,000
Capital (Bal. Fig.) 3,76,000 Debtors 3,20,000
Cash 4,000
Bank 20,000
Prepaid expenses 12,000
6,36,000 6,36,000
Creditors A/c
Particulars Amount Particulars Amount
To Bills Receivable (Endorsed) 40,000 By Balance b/d 2,20,000
By Debtors
To Bank 7,84,000 8,000
(Endorsed Bill Dishonoured)
By Credit Purchases
To Discount 16,000 9,12,000
(Bal. Fig.)
To Balance c/d 3,00,000
11,40,000 11,40,000
Cost of Goods Sold = 1,60,000 + 9,12,000 – 1,40,000 = 9,32,000
GP = on COGS = 9,32,000 *1/2 = 4,66,000
Sales = COGS + GP = 13,98,000
Debtors A/c
Particulars Amount Particulars Amount
To Balance b/d 3,20,000 By B/R 2,00,000
To Sales 13,98,000 By Bank 11,70,000
By Disc. Allowed
To Creditors 8,000 30,000
(11,70,000 )
By Balance c/d (Bal. Fig.) 3,26,000
17,26,000 17,26,000
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Bills Receivable A/c

Particulars Amount Particulars Amount
To Debtors 2,00,000 By Creditors 40,000
By Bank 1,22,500
By Discount (1,22,500 ) 2,500
By Balance c/d (Bal. Fig.) 35,000
2,00,000 2,00,000
Cash and Bank A/c
Particulars Cash Bank Particulars Cash Bank
To Balance b/d 4,000 20,000 By Creditors - 7,84,000
To Debtors - 11,70,000 By Expenses - 3,50,000
To B/R - 1,22,500 By 12% Govt. Sec. - 2,00,000
To Misc. Income - 10,000 By Drawings - 1,40,000
To Cash - 1,000 By Fixed Asset - 20,000
To Capital (Bal. Fig.) - 1,72,000 By Bank (Bal. Fig.) 1,000 -
By Balance c/d 3,000 1,500
4,000 14,95,500 4,000 14,95,500
Note: All receipts and payments transactions assumed to be routed through bank only.

3. (H & S)
Trading and P & L A/c for the year ended 31/3/2024
Particulars Amount Particulars Amount
To Opening Stock 38,600 By Sales 8,54,000
To Purchases 6,13,750 By Closing Stock 55,700
To Gross Profit c/d 2,57,350
9,09,700 9,09,700
To General Expenses 22,500 By Gross profit b/d 2,57,350
To Salaries By Interest on Investment
77,000 10,200
(75,000 + 14,000 - 12,000) (9750 + 450 Accrued)
To Rent & Taxes 11,800
To Depreciation (Machinery) 8,500
To Depreciation (Furniture) 2,450
To Bad Debts 7,200
To Provision for Doubtful Debts
7,000
(3,50,000*2%)
To Net Profit (Bal. Fig.) 1,31,100
2,67,550 2,67,550
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Balance Sheet as at 31/3/2024

Liabilities Amount Assets Amount
Creditors 2,08,200 Machinery 76,500
O/s Salaries 14,000 Furniture 22,050
Capital 3,32,150 Stock 55,700
Debtors 3,50,000
Add Net Profit 1,31,110 3,43,000
Less: Provision (7,000)
Add: Introduction 50,000 Cash 20,150
Less Drawings (96,000) 4,17,250 Bank 36,600
12% Investment 85,000
Accrued Interest on Investment 450
6,39,450 6,39,450
Working Notes :
Cash Sales = 1,70,800 = 20% of total Total Sales = 1,70,800/20% = 8,54,000
Credit Sales = 8,54,000 – 1,70,800 = 6,83,200
Cash Purchases = 1,22,750 = 20% of total Total Purchases = 1,22,750/20% = 6,13,750
Credit Purchases = 6,13,750 – 1,22,750 = 4,91,000
Debtors A/c
Particulars Amount Particulars Amount
To Balance b/d 1,55,000 By Cash /Bank 4,81,000
To Credit Sales 6,83,200 By Bad Debts 7,200
By Balance c/d (Bal Fig.) 3,50,000
8,38,200 8,38,200
Creditors A/c
Particulars Amount Particulars Amount
To Cash /Bank 3,43,000 By Balance b/d 60,200
To Balance c/d (Bal. fig.) 2,08,200 By Purchases 4,91,000
5,51,200 5,51,200
Balance Sheet as at 1/4/2023
Liabilities Amount Assets Amount
Creditors 60,200 Machinery 85,000
O/s Salaries 12,000 Furniture 24,500
Capital (Bal. Fig.) 3,32,150 Stock 38,600
Debtors 1,55,000
Cash & Bank 16,250
12% Investment 85,000
4,04,350 4,04,350
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4. (H & S)
Trading and Profit and Loss Account of Archana Enterprises
for the year ended 31st March, 2023
Particulars Amount Particulars Amount
To Opening Stock 9,15,000 By Sales
To Purchases (W.N. 2) 125,97,000 Cash 110,70,000
To Gross profit c/d (10% of
13,93,000 Credit (W.N. 1) 28,60,000 139,30,000
139,30,000)
By Closing stock 9,75,000
149,05,000 149,05,000
To Sundry expenses (W.N. 4) 9,18,750 By Gross Profit b/d 13,93,000
To Discount allowed 54,000 By Discount received 42,500
To Depreciation (15% ₹1,50,000) 22,500
To Net Profit (b.f.) 4,40,250
14,35,500 14,35,500
Balance Sheet of Archana Enterprises as at 31st March, 2023
Liabilities Amount Assets Amount
Capital Furniture & Fittings 1,50,000
Opening balance 6,75,000 Less: Depreciation (22,500) 1,27,500
Less: Drawing (3,60,000) Stock 9,75,000
Add: Net profit 4,40,250 7,55,250 Trade Debtors 3,43,000
Trade creditors (W.N. 3) 8,29,000 Unexpired insurance 3,000
Outstanding expenses 55,200 Cash in hand & at bank 1,90,950
16,39,450 16,39,450
Working Notes:
1. Trade Debtors Account
Particulars Amount Particulars Amount
To Balance b/d 3,12,000 By Cash/Bank 27,75,000
To Credit sales (Bal. fig.) 28,60,000 By Discount allowed 54,000
By Balance c/d 3,43,000
31,72,000 31,72,000
2. Memorandum Trading Account
Particulars Amount Particulars Amount
To Opening stock 9,15,000 By Sales 139,30,000
To Purchases (Balancing fig.) 125,97,000 By Closing stock 9,75,000
To Gross Profit (10% on sales) 13,93,000
149,05,000 149,05,000
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3. Trade Creditors Account

Particulars Amount Particulars Amount
To Cash/Bank 124,83,000 By Balance b/d 7,57,500
To Discount received 42,500 By Purchases (as per W.N 2) 125,97,000
To Balance c/d (bal. fig.) 8,29,000
133,54,500 133,54,500
4. Computation of sundry expenses to be charged to Profit & Loss A/c
Particulars Amount
Sundry expenses paid (as per cash and Bank book) 9,31,050
Add: Prepaid expenses as on 31–3–2022 3,000
Less: Outstanding expenses as on 31–3–2022 (67,500)
Add: Outstanding expenses as on 31–3–2023 55,200
Less: Prepaid expenses as on 31–3–2023 (Insurance paid till July, 2023) (9,000 x 4/12) (3,000)
9,18,750

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