NCERT Solution (Part - 4) - Accounts from Incomplete Records

# NCERT Solution (Part - 4) - Accounts from Incomplete Records | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year PDF Download

Page No. 483

Question 23: Calculate the amount of bills receivable dishonoured from the following information.

Bills Receivable dishonoured is Rs 11,500.

Question 24: From the details given below, find out the credit sales and total sales.

Credit sales is Rs 2,82,300Total Sales = Cash Sales + Credit Sales
Sales
= 80,000 + 2,82,300
= Rs 3,62,300

Question 25: From the following information, prepare the bills receivable account and total debtors account for the year ended December 31, 2017.

The missing figure in the bills receivable account -B/R received from debtors Rs 1,61,000 and the missing figure in the debtors accountant-closing balance is Rs 3,01,000.

Page No. 484

Question 26: Prepare the suitable accounts and find out the missing figure if any.

Note: As per solution, the missing figure in the bills receivable account is
B/R dishonoured of Rs 40,000. The missing figure in the debtors account is the credit sales of Rs 6,21,000, However, the NCERT book shows a credit sales Rs 5,16,000.
In order to match our answer with that of the book, B/R received from the customers is not shown in the debtors account.

Question 27: From the following information ascertain the opening balance of sundry debtors and closing balance of sundry creditors

The rate of gross profit is 25% on selling price and out of the total sales
Rs 85,000 was for cash sales.

Opening balance of debtors is Rs 54,000 and the closing balance of creditors is Rs 1,78,500.
Working Notes:
Total Sales = Cash Sales + Credit Sales
Total Sales = Cost of Goods Sold + Gross Profit

Sales = Cost of Goods sold + Gross Profit
Or, 100 = Cost of Goods sold + 25%
Cost of Goods Sold = 100% - 25% = 75%

Sales = Cost of Goods Sold + Gross Profit
= 3,00,000 + 1,00,000
= Rs 4,00,000

Note: Here, it has been assumed that all purchases were made on credit.

Page No. 485

Question 28: Mrs Bhavana keeps his books by Single Entry System. You.re required to prepare final accounts of her business for the year ended December 31, 2005. Her records relating to cash receipts and cash payments for the above period showed the following particulars :

The following information is also available:

All her sales and purchases were on credit. Provide depreciation on plant and building by 10% and machinery by 5%, make a provision for bad debts by 5%.

Note: It has been assumed that total sales are credit sales (i.e. all sales are made on credit) and total purchases are credit purchases (i.e. all purchases are made on credit).
Plant of Rs 1,00,000 has been taken in to the statement of affairs on January 01, 2016, instead of Rs 10,00,000.

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## FAQs on NCERT Solution (Part - 4) - Accounts from Incomplete Records - SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

 1. What is meant by accounts from incomplete records?
Ans. Accounts from incomplete records refers to a situation where a business does not maintain proper books of accounts and financial statements. In such cases, the financial position and profitability of the business are determined by preparing accounts from limited information available, such as bank statements, invoices, and other relevant documents.
 2. How can accounts from incomplete records be prepared?
Ans. Accounts from incomplete records can be prepared by using the statement of affairs method or the single entry method. In the statement of affairs method, the opening and closing statements of affairs are prepared to determine the profit or loss for the period. In the single entry method, the cash book and personal accounts are used to determine the profit or loss.
 3. What are the limitations of accounts from incomplete records?
Ans. The limitations of accounts from incomplete records include: 1. Lack of accuracy: Since proper books of accounts are not maintained, there may be a lack of accuracy in determining the financial position and profitability of the business. 2. Limited financial analysis: Without complete records, it becomes difficult to analyze the financial performance of the business, such as calculating ratios or preparing detailed financial statements. 3. Difficulty in tax compliance: Incomplete records may lead to difficulties in fulfilling tax compliance requirements, as the necessary information may not be readily available.
 4. What are the advantages of accounts from incomplete records?
Ans. Some advantages of accounts from incomplete records include: 1. Simplified record-keeping: Accounts from incomplete records require fewer bookkeeping efforts compared to maintaining complete books of accounts. 2. Cost-effective: Since there is less paperwork involved, it can be more cost-effective for small businesses or individuals with limited resources. 3. Quick results: Accounts from incomplete records can provide a quick overview of the financial position and profitability of the business, especially in situations where maintaining complete records may not be feasible.
 5. What are the key components of preparing accounts from incomplete records?
Ans. The key components of preparing accounts from incomplete records include: 1. Statement of affairs: It shows the opening and closing position of assets, liabilities, and capital of the business. 2. Cash book: It records all cash transactions, including receipts and payments. 3. Personal accounts: These accounts track individual transactions with customers, suppliers, and other parties. 4. Bank statements: Bank statements provide information on cash inflows and outflows, allowing for reconciliation with the cash book. 5. Supporting documents: Incomplete records rely on various supporting documents, such as invoices, bills, and receipts, to fill in the missing information.

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