Single entry system – NBC Institute

FA – May 2012 – L1 – SB – Q6 – Financial Statements Preparation

Prepare Statements of Affairs for two years and calculate opening capital, net worth, and profit.

Question

Fortward Geso Trading Store maintained a single-entry system. The following information was extracted from the records:

Year Ended	31 December 2011	31 December 2010
Accrued expenses	10,000	—
Accounts receivable	196,000	130,000
Prepaid expenses	—	16,000
Bank balances	(40,000)	200,000
Investment	500,000	—
Cash balance	366,000	106,000
Accounts payable	74,000	90,000
Land and buildings	1,500,000	1,500,000
Delivery van	260,000	260,000
Inventories	190,000	74,000
Loan from bank	300,000	300,000

The following additional information was also made available in respect of the 2011 accounting year:
(i) Provision for doubtful debts should be made for N3,000.
(ii) Depreciation is to be provided on book value as follows:
(a) Land and buildings 5%
(b) Delivery van 10%
(iii) Additional capital of N250,000 was introduced into the business during the year.
(iv) The owner of the store withdrew a total sum of N20,000 during the year.

You are required to:
Prepare the Statements of Affairs of Fortward Geso Trading Stores for the two years to show:
(a) The opening capital (6 Marks)
(b) Net worth of the business (6 Marks)
(c) Profit (3 Marks)

Answer

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Tags: Profit Calculation, Single entry system, Statements of Affairs
Level: Level 1

Topic: Financial Statements Preparation
Series: MAY 2012

FA – Nov 2021 – L1 – SA – Q16 – Accounting Concepts

This question identifies basic features of the single-entry system of accounting.

Question

The basic features of the single entry system of accounting are:
A. Books of accounts are not maintained and business relies only on bank statement
B. The journal records are absent and only the main ledger is kept
C. There are incomplete classifications and recording of accounting procedures
D. Only credit sales transactions and credit purchases are recorded
E. Only debit entries are made

Answer

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Tags: Incomplete Records, Multiple Choice, Single entry system
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2021

FA – Nov 2022 – L1 – SA – Q16 – Accounting Concepts

Identify the basic feature of the single entry system of accounting.

Question

The basic features of the single entry system of accounting are that
A. Books of accounts are not maintained and business relies only on the bank statement
B. The journal records are absent and only the main ledger is kept
C. There are incomplete classifications and recording of accounting procedures
D. Only credit sales transactions and credit purchases are recorded
E. Only debit entries are made

Answer

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Tags: Accounting Practices, Financial Records, Single entry system
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2022

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

Question

Mr. Ken Stevenson keeps single entry books of account. He had the following balances on 1 January, 2013:

N
Inventory
Payables
Prepaid insurance
Bank overdraft
Furniture
Motor vehicles
Receivables
Borrowings

The following information is extracted from his cash book in respect of the year ended 31 December 2013:

DR N	CR N
Revenue	279,500
Receipt from trade receivables	536,400







815,900	815,900

He had the following balances on 31 December 2013:

N
Motor vehicles
Inventory
Furniture
Receivables
Payables
Borrowings

Additional information:
(i) Interest on Borrowings to be accrued for at 5% per annum.
(ii) Bad debts of N12,600 are to be written off while 5% allowance is to be made on the net receivables at 31 December, 2013.
(iii) Depreciation is to be charged on the non-current assets at the rate of 10% per annum.

You are required to prepare:

a. Receivables control account (2 Marks)
b. Payables control account (2 Marks)
c. The opening capital (2 Marks)
d. Statement of Profit or Loss for the year ended 31 December 2013 (8 Marks)
e. Statement of Financial Position as at 31 December 2013 (6 Marks)

Answer

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Tags: Bad Debts, Control Accounts, Depreciation, Financial Position, Receivables and Payables, Single entry system, Statement of Profit or Loss
Level: Level 1

FA – May 2012 – L1 – SB – Q6 – Financial Statements Preparation

Prepare Statements of Affairs for two years and calculate opening capital, net worth, and profit.

Question

Fortward Geso Trading Store maintained a single-entry system. The following information was extracted from the records:

Year Ended	31 December 2011	31 December 2010
Accrued expenses	10,000	—
Accounts receivable	196,000	130,000
Prepaid expenses	—	16,000
Bank balances	(40,000)	200,000
Investment	500,000	—
Cash balance	366,000	106,000
Accounts payable	74,000	90,000
Land and buildings	1,500,000	1,500,000
Delivery van	260,000	260,000
Inventories	190,000	74,000
Loan from bank	300,000	300,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Profit Calculation, Single entry system, Statements of Affairs
Level: Level 1

Topic: Financial Statements Preparation
Series: MAY 2012

FA – Nov 2021 – L1 – SA – Q16 – Accounting Concepts

This question identifies basic features of the single-entry system of accounting.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Incomplete Records, Multiple Choice, Single entry system
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2021

FA – Nov 2022 – L1 – SA – Q16 – Accounting Concepts

Identify the basic feature of the single entry system of accounting.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Practices, Financial Records, Single entry system
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2022

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

Question

Mr. Ken Stevenson keeps single entry books of account. He had the following balances on 1 January, 2013:

N
Inventory
Payables
Prepaid insurance
Bank overdraft
Furniture
Motor vehicles
Receivables
Borrowings

The following information is extracted from his cash book in respect of the year ended 31 December 2013:

DR N	CR N
Revenue	279,500
Receipt from trade receivables	536,400







815,900	815,900

He had the following balances on 31 December 2013:

N
Motor vehicles
Inventory
Furniture
Receivables
Payables
Borrowings

You are required to prepare:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bad Debts, Control Accounts, Depreciation, Financial Position, Receivables and Payables, Single entry system, Statement of Profit or Loss
Level: Level 1

Question Tag: Single entry system

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FA – May 2012 – L1 – SB – Q6 – Financial Statements Preparation

Prepare Statements of Affairs for two years and calculate opening capital, net worth, and profit.

FA – Nov 2021 – L1 – SA – Q16 – Accounting Concepts

This question identifies basic features of the single-entry system of accounting.

FA – Nov 2022 – L1 – SA – Q16 – Accounting Concepts

Identify the basic feature of the single entry system of accounting.

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

FA – May 2012 – L1 – SB – Q6 – Financial Statements Preparation

Prepare Statements of Affairs for two years and calculate opening capital, net worth, and profit.

FA – Nov 2021 – L1 – SA – Q16 – Accounting Concepts

This question identifies basic features of the single-entry system of accounting.

FA – Nov 2022 – L1 – SA – Q16 – Accounting Concepts

Identify the basic feature of the single entry system of accounting.

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

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FA – May 2012 – L1 – SB – Q6 – Financial Statements Preparation

Prepare Statements of Affairs for two years and calculate opening capital, net worth, and profit.

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FA – Nov 2021 – L1 – SA – Q16 – Accounting Concepts

This question identifies basic features of the single-entry system of accounting.

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FA – Nov 2022 – L1 – SA – Q16 – Accounting Concepts

Identify the basic feature of the single entry system of accounting.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q16 – Accounting Concepts"

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

You're reporting an error for "FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2012 – L1 – SB – Q6 – Financial Statements Preparation

Prepare Statements of Affairs for two years and calculate opening capital, net worth, and profit.

You're reporting an error for "FA – May 2012 – L1 – SB – Q6 – Financial Statements Preparation"

FA – Nov 2021 – L1 – SA – Q16 – Accounting Concepts

This question identifies basic features of the single-entry system of accounting.

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FA – Nov 2022 – L1 – SA – Q16 – Accounting Concepts

Identify the basic feature of the single entry system of accounting.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q16 – Accounting Concepts"

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

You're reporting an error for "FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

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