Calculation of Missing Figures :

The information which is needed for preparing the final accounts is not directly available from the incomplete records. Hence, we need to find out such missing figures by preparing relevant accounts. Let us learn how such missing figures can be extracted from incomplete records by preparing the relevant accounts. The important ones are discussed below:

1. Calculation of total purchases or creditors in the beginning or at the end of the year.

2. Calculation of total sales or debtors in the beginning or at the end of the year.

(i) Ascertainment of Total Purchases:

Total purchases are calculated by adding cash and credit purchases. Cash purchases, are given in Cash Book. Credit purchases are calculated by preparing total creditors account. The specimen of Total Creditors Account is given below:

Dr.                                                                                                  Total Creditors Account                                                                                                    Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Cash paid	………	By Balance b/d	………
To Discount Received	………	(Opening Balance)	………
To Purchases Returns	………	By Credit Purchases	………
To Balance c/d	………	(balancing figure)
(Closing Balance)
	………		………

 

Look at the following illustration and see how total purchases have been found out.

Illustration: From the following information, you are required to calculate total purchases:

 

Rs.
Cash purchases	17,000
Creditors as on April 1, 2002	8,000
Cash paid to creditors	31,000
Purchases return	1,000
Creditors as on March 31, 2003	13,400

 

Solution:

Dr.                                                                                                     Total Creditors Account                                                                                                 Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Cash paid	31,000	By Balance b/d  (Opening Balance)	8,000
To Purchases return	1,000	By Credit Purchases  (Balancing Figure)	37,400
To Balance c/d  (Closing Balance)	13,400
	45,400		45,400

 

(ii) Ascertainment of Total Sales:

Total sales are calculated by adding cash and credit sales. Cash sales are given in cash book. For ascertaining the amount of credit
sales, the total debtors account should be prepared. The specimen of total debtors account is given below:

 

Dr.                                                                                                      Total Debtors Account                                                                                                  Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Balance b/d (Op. Bal.)	………	By Cash received	………
To Credit Sales (Bal. Fig.)	………	By Discount Allowed	………
		By Sales Returns	………
		By Balance c/d (Clo. Bal.)	………
	………		………

 

Illustration :
From the following facts you are required to calculate total sales made during the period:

Particulars	Amount Rs.	Particulars	Amount Rs.
Sundry Debtors as on April 1, 2002	20,400	Sundry Debtors as on March 31, 2003	27,600
Cash received from  Sundry Debtors	60,800	Cash Sales	56,800
Sales Return	5,400

 

Dr.                                                                                                 Total Debtors Account                                                                                                       Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Balance b/d (Op. Bal.)	20,400	By Cash received	60,800
To Credit Sales (Bal. Fig.)	73,400	By Sales Return	5,400
		By Balance c/d (Clo. Bal.)	27,600
	93,800		93,800

 

 

(iii) Ascertainment of balances of sundry debtors and sundry creditors:

If credit sales and credit purchases are given, the opening or closing balances of debtors and/or creditors can be ascertained by preparing total debtors account and total creditors accounts.

Illustration : 

From the following particulars, calculate closing balances Debtors and Creditors:

Rs.
Sundry Debtors as on 1.4.2001	28,680
Sundry Creditors as on 1.4.2001	41,810
Credit purchases	1,51,400
Credit sales	1,65,900
Discount earned	5,200
Discount allowed	4,800
Return outwards	7,440
Return inwards	6,444
Cash received from debtors	1,50,536
Cash paid to creditors	1,43,765

 

Solution:

Dr.                                                                                                    Total Debtors Account                                                                                                    Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Balance b/d (1.4.2001)	28,680	By Return inwards	6,444
To Credit Sales	1,65,900	By Cash received	1,50,536
		By Discount allowed	4,800
		By Balance c/d  (Balancing figures)	32,800
	1,94,580		1,94,580

To Balance b/d

32,800

 

Dr.                                                                                                       Total Creditors Account                                                                                               Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Return outwards	7,440	By Balance b/d (1.4.2001)	41,810
To Cash paid	1,43,765	By Credit Purchases	1,51,400
To Discount received	5,200
To Balance c/d(Balancing figures)	36,805
	1,93,210		1,93,210
		By Balance b/d	36,805

 

Illustration :
From the following details, find out Credit Sales for the year.

Rs.
Opening balance of Sundry Debtors	30,000
Cash received during the year	2,05,000
Closing balance of Sundry debtors	48,000
Discount allowed	13,000
Goods returned by Customers	14,000

 

Solution:

Dr.                                                                                                 Total Debtors Account                                                                                                       Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Balance b/d	30,000	By Cash received	2,05,000
To Credit sales  (Balancing figure)	2,50,000	By Discount allowed	13,000
		By Sales Return	14,000
		By Balance c/d	48,000
	2,80,000		2,80,000

 

Illustration :

From the following details find out Credit Purchases.

Rs.
Opening balance of Sundry Creditors	50,000
Closing balance of Sundry Creditors	60,000
Cash paid	2,65,000
Discount received	15,000
Purchase returns	15,000

 

Solution:

Dr.                                                                                              Total Creditors Account                                                                                                        Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Cash paid	2,65,000	By Balance c/d	50,000
To Discount received	15,000	By Credit Purchases  (Balancing figure)	3,05,000
To Purchase return	15,000
By Balance c/d	60,000
	3,55,000		3,55,000

 

Illustration :

Find out total purchases and total sales from the following details by making necessary accounts:

Rs.
Opening balance of Sundry debtors	50,000
Opening balance of Sundry creditors	30,000
Cash collected from Sundry debtors	3,00,000
Discount received	1,500
Cash Paid to Sundry creditors	20,000
Discount allowed	5,000
Return inwards	6,000
Return outwards	8,000
Closing balance of Sundry debtors	35,000
Closing balance of Sundry creditors	25,000
Cash Purchases	12,000
Cash Sales	24,000

 

Solution:

i) Calculation of Credit Sales

Dr.                                                                                                 Total Debtors Account                                                                                                       Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Balance b/d	50,000	By Cash received	3,00,000
To Credit Sales (Balancing figure)	2,96,000	By Discount allowed	5,000
		By Returns  Inwards	6,000
		By Balance c/d	35,000
	3,46,000		3,46,000

 

ii) Calculation of Credit Purchases

Dr.                                                                                                     Total Creditors Account                                                                                                 Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Discount received	1,500	By Balance b/d	30,000
To Cash paid	20,000	By Credit Purchases (Balancing figure)	24,500
To Return outwards	8,000
To Balance c/d	25,000
	54,500		54,500

 

Illustration : 

Mr.James commenced business on 1.4.2004 with a Capital of Rs.75,000. He immediately bought furniture for Rs.12,000. During
the year, he borrowed Rs.15,000 from his wife as loan. He has withdrawn Rs.21,600 for his family expenses. From the following particulars you are required to prepare Trading and Profit & Loss A/c and Balance Sheet as on 31.3.2005.

Rs.
Cash received from Sundry debtors	1,21,000
Cash paid to Sundry creditors	1,75,000
Cash Sales	1,00,000
Cash Purchases	40,000
Carriage inwards	4,500
Discount allowed to Sundry debtors	4,000
Salaries	5,000
Office Expenses	4,000
Advertisement	5,000
Closing balance of Sundry debtors	75,000
Closing balance of Sundry creditors	50,000
Closing Stock	35,000
Closing cash balance	43,900

 

Provide 10% depreciation on furnitures

Solution:

i) Calculation of Credit Sales

Dr.                                                                                                       Total Debtors Account                                                                                                 Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Balance b/d	—	By Cash received	1,21,000
To Credit sales	2,00,000	By Discount allowed	4,000
(Balancing figure)		By Balance c/d	75,000
	2,00,000		2,00,000

 

ii) Calculation of Credit Purchases

Dr.                                                                                               Total Creditors Account                                                                                                       Cr.

Particulars	Amount Rs.	Particulars	Amount Rs.
To Cash paid	1,75,000	By Balance b/d	—
To Balance c/d	50,000	By Credit Purchases Credit (Balancing Figure)	2,25,000
	2,25,000		2,25,000

 

Trading and Profit and Loss Account

Dr.                                                                                    of Mr.James for the year ended 31.3.2005                                                                                Cr.

Particulars                                         Rs.	Rs.	Particulars                                    Rs.	Rs.
To Opening Stock	—	By Sales
To Purchases:		Cash                                      1,00,000
Cash                                             40,000		Credit                                    2,00,000
Credit                                           2,25,000			3,00,000
	2,65,000
To Carriage inwards	4,500	By Closing Stock	35,000
To Gross Profit c/d	65,500		________
	3,35,000		3,35,000
To Discount allowed	4,000	By Gross Profit b/d	65,500
To Salaries	5,000
To Office expenses	4,000
To Advertisement	5,000
To Depreciation on furniture	1,200
To Net Profit (transferred to Capital A/c)	46,300
	65,500		65,500

 

Balance Sheet of Mr.James as on 31.3.2005

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital	75,000		Furniture	12,000
Add: Net Profit	46,300		Less: Depreciation	__1,200	10,800
	1,21,300
Less: Drawings	21,600	99,700	Sundry Debtors		75,000
Loan from wife		15,000	Closing Stock		35,000
Sundry Creditors		50,000	Cash		43,900
		1,64,700			1,64,700

Illustration : 

Mrs.Malathy maintained her account books on single entry system. On 1.4.2003 her capital was Rs.2,50,000.

Additional information:

Rs.

Opening stock	1 ,25,000
Cash received from Sundry debtors	25,000
Cash sales	1,00,000
Cash paid to Sundry creditors	30,000
Opening Sundry debtors	20,000
Opening Sundry creditors	91,500
Business expenses	60,400
Free hold premises (31.3.2004)	2,00,000
Furniture (31.3.2004)	3,600
Closing stock	1,30,000
Closing Sundry debtors	40,000
Closing Sundry creditors	1,00,000
Closing cash balance	27,500

 

Prepare trading and profit & loss account for the year ended 31.03.2004 and balance sheet as on that date.

Solution:

i) Calculation of credit sales:

Dr.                                                                                                       Total Debtors Account                                                                                                 Cr.

Particulars	Rs.	Particulars	Rs.
To Balance b/d	20,000	By Cash received	25,000
To Credit Sales	45,000	By Balance c/d	40,000
(Balancing figure)
	65,000		65,000

 

ii) Calculation of credit purchases:

Dr.                                                                                             Total Creditors Account                                                                                                         Cr.

Particulars	Rs.	Particulars	Rs.
To Cash paid	30,000	By Balance b/d	91,500
To Balance c/d	1,00,000	By Credit Purchases	38,500
		(Balancing figure)
	1,30,000		1,30,000

 

Trading and Profit & Loss Account of Mrs.Malathy

Dr.                                                                                                  for the year ended 31.3.2004                                                                                          Cr.

Particulars	Rs.	Particular	Rs.
To Opening stock	1,25,000	By Sales:
To Purchases – Credit	38,500	Cash                                      1,00,000
To Gross Profit c/d	1,11,500	Credit                                      45,000	1,45,000
		By Closing stock	1 30 000
	2 75 000		2 75 000
To Business expenses	60,400	By Gross Profit b/d	1,11,500
To Net profit	51,100
(Transferred to capital A/c)
	1,11,500		1,11,500

 

Balance Sheet of Mrs.Malathy as on 31.3.2004

 

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capitl	2,50,000		Free hold premises		2,00,000
Add: Net profit	51,100		Furniture		3,600
		3,01,100	Closing stock		1,30,000
Sundry Creditors		1,00,000	Sundry Debtors		40,000
			Cash in hand		27,500
		4,01,100			4,01,100

 

Illustration :

From the following details, prepare Trading and Profit & Loss account for the period ended 31.3.2004 and a Balance sheet on that date.

 

	As on 1.4.2003	As on 31.3.2004
Stock	50,000	25,000
Sundry Debtors	1,25,000	1,75,000
Cash	12,500	20,000
Furniture	5,000	5,000
Sundry Creditors	75,000	87,500

 

Other Details:	Rs.
Drawings	20,000
Discount received	7,500
Discount allowed	5,000
Sundry expenses	17,500
Cash paid to creditors	2,25,000

Cash received from debtors	2,67,500
Sales return	7,500
Purchase return	2,500
Cash sales	2,500

 

Solution:

i) Calculation of opening capital:

Statement of affairs as on 1.4.2003

Liabilities	Rs.	Assets	Rs.
Sundry Creditors	75,000	Stock	50,000
		Sundry Debtors	1,25,000
		Cash	12,500
Opening capital	1,17,500	Furniture	5,000
(Balancing figure)
	1,92,500		1,92,500

 

 

ii) Calculation of Credit Sales:

Total Debtors Account

Dr.                                                                                                                                                                                                                                                  Cr.

Particulars	Rs.	Particulars	Rs.
To Balance b/d	1,25,000	By Discount allowed	5,000
To Credit sales	3,30,000	By Cash received	2,67,500
(Balancing figure)		By Sales returns	7,500
		By Balance c/d	1,75,000
	4,55,000		4,55,000

 

iii) Calculation of Credit Purchases:

Dr                                                                                                 Total Creditors Account                                                                                                      Cr.

Particulars	Rs.	Particulars	Rs.
To Discount received	7,500	By Balance b/d	75,000
To Cash paid	2,25,000	By Credit purchases	2,47,500
To Purchases return	2,500	(Balancing figure)
To Balance c/d	87,500
	3,22,500		3,22,500

 

 

Trading and Profit and Loss Account

Dr.                                                                                                  for the year ended 31.3.2004                                                                                          Cr.

Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Opening stock		50,000	By Sales:
To Purchases	2,47,500		Cash                         2,500
Less: Purchase			Credit                  3,30,000
Returns	2,500			3,32,500
		2,45,000	Less: Sales
To Gross Profit c/d		55,000	Returns	7,500
					3,25,000
			By Closing Stock		25,000
		3,50,000			3,50,000
To Discount			By Gross
allowed		5,000	Profit b/d		55,000
To Sundry			By Discount
Expenses		17,500	received		7,500
To Net Profit		40,000
(Transferred to
Capital A/c)
		62,500			62,500

 

Balance Sheet as on 31.3.2004

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital	1,17,500		Furniture		5,000
Add: Net Profit	40,000		Sundry Debtors		1,75,000
	1,57,500		Closing Stock		25,000
Less: Drawings	20,000		Cash		20,000
		1,37,500
Sundry Creditors		87,500
		2,25,000			2,25,000