SINGLE ENTRY

Required:
1) Capital at Start
2) Capital at End
3) Statement of Profit and Loss (Income Statement)
4) Statement of affairs (Balance Sheet)
Format
1) Capital at Start & End
Assets
Less: Liabilities
Capital
Name of Company
Statement of Profit and Loss
For the period ended December 31, ______
Rs. Rs.
Capital at end Xxxx
Add: Drawing Xxxx
Total Xxxx
Less: Capital at start (Xxxx)
Less: Additional investment (Xxxx) (Xxxx)
Unadjusted profit / Loss Xxxx
Less: Adjustments
Unearned (Xxxx)
All expenses (Xxxx) (Xxxx)
Xxxx
Add: Adjustments
Prepaid _______ Xxxx
Direct Deposit Xxxx
Income Xxxx Xxxx
Adjusted Profit / Loss Xxxx
Name of Company
Statement of affairs
As on December 31, _________
ASSETS EQUITIES
Rs Rs. Rs. Rs.
Current Assets Liabilities
Cash Xxxx Accounts Payable Xxx
Bank Xxxx Bills Payable Xxx
Accounts Receivable Xxxx Salaries Payable Xxx
Less: Allowance for bad debts (Xxx) Xxxx Unearned ________ Xxx
Office Supplies Xxxx Advanced from customer Xxx
Merchandise Inventory Xxxx Total Liabilities Xxxx
Prepaid ________ Xxxx
_______ Receivable Xxxx Owner’s Equities:
Total Current Assets Xxxx Capital at Start Xxx
Add: Additional Investment Xxx
Fixed Assets Add: Adjusted Profit Xxx
Land Xxxx Total Xxx

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 Building Xxxx Less: Drawing (Xxx)
Less: Allow for Depreciation (Xxx) Xxxx Capital
Machinery Xxxx Xxx
Less: Allow for Depreciation (Xxx) Xxxx
Furniture Xxxx
Less: Allow for Depreciation (Xxx) Xxxx
Equipment Xxxx
Less: Allow for Depreciation (Xxx) Xxxx
Total Fixed Assets Xxxx
Total Assets Xxxx Total Equities Xxxx
2004 Question 1: Information given below has been extracted from the book of Ali who maintains
his accounting record on single entry system:
Jan. 01, 2003 Dec. 31, 2003
Cash Rs. 3,000/= Rs. 5,000/=
Account receivable Rs.10,000/= Rs.15,000/=
Merchandise inventory Rs.20,000/= Rs.50,000/=
Office equipment Rs.15,000/= Rs.15,000/=
Office furniture Rs.20,000/= Rs.20,000/=
Account payable Rs. 8,000/= Rs. 5,000/=
Adjustment data Dec. 31, 2003
(I) Additional investment Rs.10,000/=
(II) Withdrawals Rs.500 P.M. for personal use.
(III) Estimated depreciation expense 10% on fixed assets.
(IV) Rent Rs.2,000/= P.M. outstanding since Nov. 2003.
Required:
I) Compute the amount of capital on Jan 01 and Dec. 31, 2003.
II) Prepare statement of profit or loss for the year ended Dec.31, 2003
III) Prepare opening journal entry on Jan. 01, 2004 if the books were to be converted and
maintained on double entry system with effect from that date
Solution:
Computation of capital at start and capital at end
2003 2003
January 1 December 31
Assets
Cash 3,000 5,000
Accounts receivable 10,000 15,000
Merchandise inventory 20,000 50,000
Equipment 15,000 15,000
Furniture 20,000 20,000
Total Assets 68,000 105,000
Less: Accounts payable (8,000) (5,000)
Capital 60,000 100,000
Mr. Ali
Statement of profit and loss
For the period ended December 31, 2003
Rs. Rs.
Capital at end 100,000
Add: Drawing (500 x 12) 6,000
Total 106,000
Less: Capital at start 60,000

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 Less: Additional investment 10,000 (70,000)
Unadjusted profit 36,000
Less: Adjustments
Depreciation expense (E) (15,000 x 10%) 1,500
Depreciation expense (F) (20,000 x 10%) 2,000
Rent expense (2000 x 2) 4,000 (7,500)
Adjusted profit 28,500
Mr. Ali
Statement of Affairs
As on December 31, 2003
Rs. Rs. Rs.
Assets
Current Assets
Cash 5,000
Account receivable 15,000
Merchandise inventory 50,000
Total Current Assets 70,000
Fixed Assets
Equipment 15,000
Less: Allowance for depreciation (1,500) 13,500
Furniture 20,000
Less: Allowance for depreciation (2,000) 18,000
Total Fixed assets 31,500
Total Assets 101,500
Equities
Liabilities
Accounts payable 5,000
Rent payable 4,000
Total Liabilities 9,000
Owner’s Equity
Capital at start 60,000
Add: Adjusted Profit 28,500
Add: Additional investment 10,000
Total 98,500
Less: Drawing (500 x 12) (6,000)
Capital 92,500
Total Equities 101,500
2006 Q1)
Mr. Alam maintains his accounting records on single entry basis. His financial position was as under:
Jan.1, 2005 Dec.31, 2005
Cash 50,000 60,000
Accounts receivable 60,000 80,000
Merchandise inventory 25,000 22,000
Supplies 5,000 8,000
Furniture 100,000 150,000
Accounts payable 15,000 10,000
Additional information on December 31 2005
1. Mr. Alam made an additional investment of Rs.41,000.
2. He had withdrawn Rs.5,000 per month during the whole year for his personal use.
3. Depreciation on furniture was estimated at 10%.

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 4. Accrued salary expense Rs.10,000.
5. Unexpired rent amounting to Rs.5,000.
Required:
I. Compute capital as on Jan.1, 2005 and on Dec.31, 2005.
II. Prepare statement of profit and loss for the year ended December 31, 2005.
III. Prepare statement of affairs as on December 31, 2005.
Solution:
Computation of capital at start and capital at end
2005 January 1 2005 December 31
Assets
Cash 50,000 60,000
Accounts receivable 60,000 80,000
Merchandise inventory 25,000 22,000
Supplies 5,000 8,000
Furniture 100,000 150,000
Total assets 240,000 320,000
Less: Accounts payable (15,000) (10,000)
Capital 225,000 310,000
Mr. Alam
Statement of profit and loss
For the period ended December 31, 2005
Rs. Rs.
Capital at end 310,000
Add: Drawing (5000 x 12) 60,000
Total 370,000
Less: Capital at start 225,000
Less: Additional investment 41,000 (266,000)
Unadjusted profit 104,000
Less: Adjustments
Depreciation expense (150,000 x 10%) 15,000
Salaries expense 10,000 (25,000)
79,000
Add: Adjustments
Prepaid rent 5,000
Adjusted profit 84,000
Mr. Alam
Statement of Affairs
As on December 31, 2005
Rs. Rs. Rs.
Assets
Current assets
Cash 60,000
Account receivable 80,000
Merchandise inventory 22,000
Office supplies 8,000
Prepaid rent 5,000
Total current assets 175,000
Fixed assets
Furniture 150,000
Less: Allowance for depreciation (15,000) 135,000

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 Total fixed assets 135,000
Total Assets 310,000
Equities
Liabilities
Accounts payable 10,000
Salaries payable 10,000
Total liabilities 20,000
Owner’s equity
Capital at start 225,000
Add: Adjusted profit 84,000
Add: Additional investment 41,000
Total 350,000
Less: Drawing (60,000)
Capital 290,000
Total Equities 310,000
2007Q1
Mr. Saad Maintains His Accounting Records on Single entry basis. The Information Given Below has
been extracted from his Books of Accounts:
Jan 1, 2006 Dec 31, 2006
Cash 15,000 10,000
Accounts Receivable 25,000 40,000
Merchandise Inventory 30,000 50,000
Supplies 1,000 3,000
Equipments 40,000 120,000
Accounts Payable 11,000 23,000
Additional Information on December 31, 2006:
I) Mr. Saad made an additional investment of Rs.60,000.
II) Depreciation on equipment Rs.10,000.
III) Mr. Saad withdraw Rs.1,000 per month during the year from the business.
IV) Prepaid advertising Rs.4,000.
V) Accrued commission income Rs.15,000.
VI) Outstanding utility bills Rs.9,000.
VII) Taxes payable Rs.2,000.
Required:
(I) Compute capital at start and end
(II) Prepare statement of profit & loss for the year December 31, 2006.
(III) Prepare statement of affairs as on December 31, 2006.
Solution
Computation of Capital at start and Capital at end
2006 2006
January 1 December 31
Assets
Cash 15,000 10,000
Accounts Receivable 25,000 40,000
Merchandise Inventory 30,000 50,000
Supplies 1,000 3,000
Equipment 40,000 120,000
Total Assets 111,000 223,000
Less: Accounts Payable (11,000) (23,000)
Capital 100,000 200,000

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 Mr. Saad
Statement of profit and loss
For the period ended December 31, 2006
RS. RS.
Capital at end 200,000
Add: Drawing (1000 X 12) 12,000
Total 212,000
Less: Capital at start 100,000
Less: Additional Investment 60,000 (160,000)
Unadjusted Profit 52,000
Less: Adjustments
Depreciation Expense (Equipment) 10,000
Utility Expense 9,000
Taxes Expenses 2,000 (21,000)
31,000
Add: Adjustments
Prepaid Advertising 4,000
Commission Income 15,000 19,000
Adjusted Profit 50,000
Mr. Saad
Statement of affairs
As on December 31, 2006
RS. RS. RS.
Assets
Current Assets
Cash 10,000
Account Receivable 40,000
Merchandise Inventory 50,000
Office Supplies 3,000
Commission Receivable 15,000
Prepaid Advertising 4,000
Total Current Assets 122,000
Fixed Assets
Equipment 120,000
Less: Allowance for Depreciation (10,000) 110,000
Total Assets 232,000
Equities
Liabilities
Accounts Payable 23,000
Utility Payable 9,000
Taxes Payable 2,000
Total Liabilities 34,000
Owner’s Equity
Capital at Start 100,000
Add: Adjusted Profit 50,000
Add: Additional Investment 60,000
Total 210,000
Less: Drawing (1000 X 12) (12,000)
Capital 198,000
Total Equities 232,000

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2008 Question 2
On 1st May, 2007, Mr. Hammad started his business with cash investment of Rs.500,000. He maintains
his accounting records under single entry system. His position on 30th April 2008 was as under.
Cash Rs.1,500, plant assets Rs.248,500, accounts payable Rs.20,000, Merchandise Rs.150,000,
bank loan Rs.50,000, accounts receivable Rs.170,000.
Additional information:
(I) Hammad withdrew Rs.7,000 per month for his private use.
(II) Additional investment by Hammad Rs.30,000.
(III) Plant assets are to be depreciated at 8% per annum.
(IV) Prepaid rent Rs.6,000 and unpaid salaries Rs.5,000.
(V) 5% of accounts receivable is estimated as bad debts.
(VI) Rs.3,650 of interest is due on bank loan.
Required:
(A) What is Hammad’s capital at the end?
(B) Prepare the statement of profit and loss for the year.
(C) Prepare statement of affairs on 30th April, 2008.
Solution:
Computation of capital at end
Cash 1,500
Plant assets 248,500
Merchandise inventory 150,000
Account receivable 170,000
Total assets 570,000
Less: Account payable (20,000)
Less: Bank loan (50,000)
Capital at end 500,000
Mr. Hammad
Statement of Profit and Loss
For The Period Ended April 30, 2008
Rs. Rs.
Capital at end 500,000
Add: Drawing (7,000 X 12) 84,000
Total 584,000
Less: Capital at start (500,000)
Less: Additional Investment (30,000) (530,000)
Unadjusted Profit 54,000
Less: Adjustments
Depreciation Expense (248,500 X 8/100) 19,880
Salaries Expense 5,000
Bad Debt Expense (170,000 X 5/100) 8,500
Interest Expense 3,650 (37,030)
16,970
Add: Adjustments
Prepaid Rent 6,000
Adjusted Profit 22,970
Mr.Hammad
Statement of Affairs
As on April 30, 2008
Rs. Rs. Rs.

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 Assets
Current assets
Cash 1,500
Accounts receivable 170,000
Less: Allowance for bad debts (8,500) 161,500
Merchandise inventory 150,000
Prepaid rent 6,000
Total current assets 319,000
Fixed assets
Plant assets 248,500
Less: Allowance for depreciation (19,880) 228,620
Total assets 547,620
Equities
Liabilities
Accounts payable 20,000
Bank loan 50,000
Salaries payable 5,000
Interest payable 3,650
Total liabilities 78,650
Owner’s equities
Capital at start 500,000
Add: Adjusted profit 22,970
Add: Additional investment 30,000
Total 552,970
Less: Drawing (84,000) 468,970
Total equities 547,620

2009
The following information is available from the books of Farhan Qazi who keeps his book under
single entry system.
Jan 1, 2006 Dec 31, 2006
Cash on hand 50,000 75,000
Cash at bank 50,000 75,000
Merchandise inventory 25,000 80,000
Advance from customers 50,000 20,000
Vehicle 300,000 300,000
Loan to employees 100,000 80,000
Accounts receivable 125,000 110,000
Land ----- 200,000
Additional data as on Dec 31, 2008:
(I) The bank statement showed a credit of Rs.5,000 on account of direct deposit by Zubair,
a customer.
(II) Salaries unpaid Rs.10,000 and prepaid Rs.15,000.
(III) Depreciation on vehicle was estimated at 10% per annum.
(IV) On January 5, Farhan Qazi bought a piece of land for Rs.200,000 from his personal
resources for business use only.
Required:
(I) Compute capital at start and end
(II) Prepare statement of profit and loss for the year ended December 31, 2008
(III) Prepare statement of affairs as on December 31, 2008.

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Solution:
Computation of capital at start and capital at end
2008 2008
January 1 December 31
Cash on hand 50,000 75,000
Cash at bank 50,000 75,000
Merchandise inventory 25,000 80,000
Vehicles 300,000 300,000
Loan to employees 100,000 80,000
Accounts receivable 125,000 110,000
Land - 200,000
Total assets 650,000 920,000
Less: Advanced from customer (50,000) (20,000)
Capital 600,000 900,000
Farhan Qazi
Statement of profit and loss
For the period ended December 31, 2006
Rs. Rs.
Capital at end 900,000
Less: Capital at start 600,000
Less: Additional investment 200,000 (800,000)
Unadjusted profit 100,000
Less: Adjustments
Salaries expense 10,000
Depreciation expense (300,000 x 10%) 30,000 (40,000)
60,000
Add: Adjustments
Direct deposit 5,000
Prepaid salaries 15,000 20,000
Adjusted profit 80,000
Farhan Qazi
Statement of affairs
As on December 31, 2006
Rs. Rs. Rs.
Assets
Current Assets
Cash on hand 75,000
Cash at bank (75,000 + 5,000) 80,000
Merchandise inventory (ending) 80,000
Accounts receivable 110,000
Prepaid salaries 15,000
Total current assets 360,000
Fixed assets
Vehicles 300,000
Less: Allowance for depreciation (30,000) 270,000
Loan to employees 80,000
Land 200,000
Total fixed assets 550,000
Total assets 910,000
Equities

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 Liabilities
Advance from customer 20,000
Salaries payable 10,000
Total liabilities 30,000
Owner’s equities
Capital at start 600,000
Add: Adjusted profit 80,000
Add: Additional investment 200,000
Total 880,000
Total equities 910,000
2010 Question 3
Following balances have been extracted from the books of Mr. Umer, who started his business on
September 1, 2009 with the name of Umer Traders:
Sep. 1, 2009 Dec. 31, 2009
Cash 120,000 250,000
Office supplies 15,000 20,000
Furniture 40,000 85,000
Prepaid rent 15,000
Accounts receivable 27,000
Accounts payable 25,000
Unearned commission 18,000
Additional information on December 31, 2009:
(1) Accrued salaries Rs.5,000
(2) Prepaid rent Rs.2,500
(3) Unearned commission Rs.3,000
(4) Mr. Umer withdrew cash of Rs.700 per month at the last date of each month for his personal
use.
Required: prepare statement of affairs as on December 31, 2009. (Adjusted profit of Umer traders
for the year ended December 31, 2009 was Rs.179,300)
Solution:
Computation of capital at start and at end
2009 2009
September 1 December 31
Cash 120,000 250,000
Office supplies 15,000 20,000
Furniture 40,000 85,000
Prepaid rent - 15,000
Accounts receivable - 27,000
Total assets 175,000 397,000
Less: Accounts payable - (25,000)
Less: Unearned commission - (18,000)
Capital 175,000 354,000
Umer Traders
Statement of affairs
As on December 31, 2009
Rs. Rs.
Assets
Current assets
Cash 250,000

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 Office supplies 20,000
Prepaid rent 2,500
Accounts receivable 27,000
Total current assets 299,500
Fixed assets
Furniture 85,000
Total assets 384,500
Equities
Liabilities
Accounts payable 25,000
Unearned commission 3,000
Salaries payable 5,000
Total liabilities 33,000
Owner’s equities
Capital at start 175,000
Add: Adjusted profit 179,300
Total 354,300
Less: Drawing (700 x 4) (2,800) 351,500
Total equities 384,500
2011 Regular Question 2
Mr. Asim started a business with cash investment of Rs.900,000. He keeps his accounting record in
single entry basis. On December 31, 2010 the following information was obtained from his
accounting records:
Cash at bank Rs 100,000
Accounts receivable Rs. 450,000
Merchandise inventory Rs.320,000
Building Rs.1,500,000
Accounts payable Rs.370,000
Additional information on December 31, 2010:
(I) He paid utility bills Rs.15,000 per month for his residence.
(II) He sold a personal flat costing Rs.450,000 for Rs.1,200,000 cash and invested into
business.
(III) Bad debts were estimated at 5% of account receivable.
(IV) Depreciation was estimated at 10% on building.
Required:
Prepare statement of affairs as on December 31, 2010. (Adjusted loss of Asim traders for the year
ended December 31, 2010 was Rs.92,500)
Solution:
Mr. Asim
Statement of affairs
As on December 31, 2010
Rs. Rs. Rs.
Assets
Current assets
Cash at bank 100,000
Accounts receivable 450,000
Less: Allowance for bad debts (22,500) 427,500
Merchandise inventory (End) 320,000
Total current assets 847,500

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 Fixed assets
Building 1,500,000
Less: Allowance for depreciation (150,000) 1,350,000
Total assets 2,197,500
Equities
Liabilities
Accounts payable 370,000
Owner’s equity
Capital at start 900,000
Add: Additional investment 1,200,000
Less: Adjusted loss (92,500)
Less: Drawing (15,000 x 12) (180,000) 1,827,500
Total equities 2,197,500
2011 Private Question 4: Mr. Shareef started his business on January 1st, 2010, with an investment of
Rs.250,000 and kept his business accounting records on single entry basis. On December 31, 2010, the
following information is available from the accounting records:
Cash 60,000
Merchandise 80,000
Account receivable 70,000
Equipment 140,000
Accounts payable 30,000
Notes payable 20,000
Supplementary data for the adjustment on December 31 2010.
I) Withdrew Rs.1,000 per month cash from the business for his personal use.
II) Depreciation on equipment is Rs.15,000.
III) Allowance for bad debts at 5% of accounts receivable.
IV) Prepaid salary is Rs.3,000.
V) Accrued rent is Rs.4,500.
Required:
Prepare statement of profit and loss for the period ended on 31.12.2010
Solution: Computation of capital at end
Cash 60,000
Merchandise inventory 80,000
Account receivable 70,000
Equipment 140,000
Total assets 350,000
Less: Accounts payable (30,000)
Less: Notes payable (20,000)
Capital at end 300,000
Mr. Shareef
Statement of Profit and Loss
For the period ended December 31, 2010
Rs. Rs.
Capital at end 300,000
Add: Drawing (1,000 x 12) 12,000
Total 312,000
Less: Capital at start (250,000)
Unadjusted profit 62,000
Less: Adjustments

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 Depreciation expense 15,000
Bad debts expense (70,000 x 5%) 3,500
Rent expense 4,500 (23,000)
39,000
Add: Adjustments
Prepaid salaries 3,000
Adjusted profit 42,000
2012 Regular Question 3
Mr. Ali maintains his records under single entry system on February 2011, he started his business
with cash Rs.500,000. His position on Dec. 31, 2011 was as under:
cash Rs.72,000, bank Rs.50,000, account receivable Rs.38,000, furniture Rs.130,000,
merchandise inventory Rs.210,000, bank loan Rs.100,000 (July 1, 2011)
Additional information on December 31, 2011:
(I) Mr. Ali withdrew from bank Rs.10,000 for office use and Rs.8,000 per month for
personal use.
(II) Additional investment Rs.45,000 in business during the year.
(III) Bank charged 14% interest per annum + KIBO rate 3% on loan. Interest paid on quarterly
basis.
Required: Prepare profit and loss statement for the year ended Dec, 31, 2011.
Solution:
Computation of capital at end
Cash 72,000
Bank 50,000
Accounts receivable 38,000
Furniture 130,000
Merchandise inventory 210,000
Total assets 500,000
Less: Bank loan (100,000)
Capital at end 400,000
Mr. Ali
Statement of profit and loss
For the period ended December 31, 2011
Rs. Rs.
Capital at end 400,000
Add: Drawing (8,000 x 11) 88,000
Total 488,000
Less: Capital at start 500,000
Less: Additional investment 45,000 (545,000)
Unadjusted loss (57,000)
Less: Adjustments
Interest expense (100,000 x 17% x 3/12) (4,250)
Adjusted loss (61,250)
2012 Private Question 2.
Mr. Akram maintains his books on single entry the following information was available from his
books.
March1, December 31,
2011 2011
Cash in Hand ? Rs.37,500
Cash at Bank Rs.30,000 Rs.120,000

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 Account Receivable Rs.135,000 Rs.172,500
Merchandise Inventory Rs.150,000 Rs.245,000
Office Equipment Rs.300,000 Rs.300,000
Account Payable Rs.54,000 Rs.75,000
Bank Loan Rs.70,000 -
Mr. Akram’s Capital Rs.500,000 ?
Additional information at December 31st, 2011:
(I) During the year, Mr. Akram withdrew Rs.3,000 P.M for personal use and Rs.30,000 for
Business use
(II) Depreciation expense on Office Equipment was estimated at Rs.30,000
Required:
(I) Compute Cash on March 1, 2011 & Capital of December 31, 2011
(II) Prepare Statement of Affairs as on December 31, 2011. (If Net Income Is Rs.300,000)
Solution:
Computation of Cash at Start and Capital at End:
March 01, December 31,
2011 2011
Cash in Hand 9,000 37,500
Cash at Bank 30,000 120,000
Accounts Receivable 135,000 172,500
Merchandise Inventory 150,000 245,000
Office Equipment 300,000 300,000
Total Assets 624,000 875,000
Accounts Payable (54,000) (75,000)
Bank Loan (70,000)
Capital 500,000 800,000
Mr. Akram
Statement of Affairs
As on December 31, 2011
Rs. Rs.
Assets
Current Assets
Cash in Hand 37,500
Cash at Bank 120,000
Account Receivable 172,500
Merchandise Inventory 245,000
Total Current Assets 575,000
Fixed Assets
Equipment 300,000
Less: Allowance for Depreciation (30,000) 270,000
Total Assets 845,000
Equities
Liabilities
Account Payable 75,000
Owner’s Equity
Capital at Start 500,000
Add: Adjusted Profit 300,000
Total 800,000
Less: Drawing (3000 X 10) (30,000) 770,000
Total Equities 845,000

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2013 Regular Question 3
Mr. Asif maintains his record under single entry system, on April 1, 2012 he started his business with
cash investment of Rs.700,000. His position on Dec.31, 2012 was as follows:
Cash Rs.200,000; Account receivable Rs.120,000; Furniture Rs.300,000 and Merchandise
inventory Rs.480,000; shop Rs.500,000; Account payable Rs.150,000.
Additional information on Dec. 31, 2012.
(I) Mr. Asif sold a plot costing Rs.200,000 for Rs.500,000 cash and invested into business.
(II) He paid utility bills Rs.5,000 p.m. for his residence.
(III) Salary prepaid Rs.10,000 and accrued Rs.20,000.
(IV) Depreciation on furniture @ 10% per annum.
(V) Bad debt expense was estimated at 3% of accounts receivable.
Required: Prepare profit and loss statement for the period ended Dec 31, 2012.
Solution:
Computation of capital at end
Cash 200,000
Accounts receivable 120,000
Furniture 300,000
Merchandise inventory 480,000
Shop 500,000
Total assets 1,600,000
Less: Accounts payable (150,000)
Capital at end 1,450,000
Mr Asif
Statement of profit and loss
For the period ended December 31, 2012
Rs. Rs.
Capital at end 1,450,000
Add: Drawing (5,000 x 9) 45,000
Total 1,495,000
Less: Capital at start 700,000
Less: Additional investment 500,000 (1,200,000)
Unadjusted profit 295,000
Less: Adjustments
Salaries expense 20,000
Depreciation expense (300,000 X 10% x 9/12) 22,500
Bad debt expense (120,000 X 3/100) 3,600 (46,100)
248,900
Add: Adjustments
Prepaid salaries 10,000
Adjusted profit 258,900
2013 Private Question 7
Mr. Imran started his business on March 1, 2012 with a cash investment of Rs.50,000. He kept his
records on single entry basis. On December 31, 2012 the following information was available:
Cash Rs.15,000; Account receivable Rs.30,000; Merchandise inventory Rs.25,000; Office
equipment Rs.40,000; Account payable Rs.20,000.
Additional Information:
(I) He withdrew Rs.1,000 cash per month from the business for his personal use.
(II) He made an additional investment of Rs.10,000 in his business.
(III) Accrued salaries amounted to Rs.2,500.

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 (IV) Office equipment is to be depreciated @ 12% per annum
(V) Prepaid rent is Rs.1,500.
Required: Prepare profit and loss statement for the period ended Dec 31, 2012.
Solution:
Computation capital at end
Cash 15,000
Accounts receivable 30,000
Merchandise inventory 25,000
Office equipment 40,000
Total assets 110,000
Less: Accounts payable (20,000)
Capital at end 90,000
Mr. Imran
Statement of profit and loss
For the period ended December 31, 2012
Rs. Rs.
Capital at end 90,000
Add: Drawing (1,000 X 10) 10,000
Total 100,000
Less: Capital at start 50,000
Less: Additional investment 10,000 (60,000)
Unadjusted profit 40,000
Less: Adjustments
Salaries expense 2,500
Depreciation expense (40,000 x 12% x 10/12) 4,000 (6,500)
33,500
Add: adjustments
Prepaid rent 1,500
Adjusted profit 35,000
2014 Regular Question 2
Mr. x invested cash Rs.150,000 on August 5, 2013. On Dec. 31, 2013 the position of his assets and
liabilities is as under
Cash Rs.180,000; office supplies Rs.30,000; Merchandise Rs.50,000; and Furniture Rs.85,000;
payable to suppliers Rs.120,000 & receivable from customers Rs.70,000.
Data for adjustment:
(I) Additional investment Rs.5,000 per month for 4 months.
(II) Mr. X withdrew some merchandise which cost Rs.15,000 for his home use.
(III) Depreciation on furniture Rs.15,000.
Required:
Prepare statement of affairs as on December 31, 2013. (Net income for the period was Rs.125,000)
Solution:
Mr. X
Statement of Affairs
As on December 31, 2013
Rs. Rs.
Assets
Current assets
Cash 180,000
Office supplies 30,000

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 Merchandise 50,000
Account receivable 70,000
Total current assets 330,000
Fixed assets:
Furniture 85,000
Less: Allowance for depreciation (15,000) 70,000
Total assets 400,000
Equities
Liabilities
Accounts payable 120,000
Owner’s equity
Capital at start 150,000
Add: Adjusted profit 125,000
Add: Additional investment (5,000 x 4) 20,000
Total 295,000
Less: Drawing (15,000) 280,000
Total equities 400,000
2014 Private Question 9A
Mr. Suleman, A general merchant, maintains his accounting record on single entry basis. He supplied
the following information for the year 2013:
Jan. 01, 2013 Dec. 31, 2013
Cash Rs.30,000 Rs.39,000
Accounts receivable Rs. 6,000 Rs.24,000
Merchandise Rs.18,000 Rs.27,000
Office equipment Rs.15,000 Rs.36,000
Accounts payable Rs .9,000 Rs.12,000
Capital ? ?
Additional information:
Unpaid commission Rs.5,600 additional investment during the year Rs.45,000, depreciation on office
equipment @ 10%, prepaid rent Rs.2,000.
Required:
(I) Compute capital at end and capital at start.
(II) Prepare statement of profit for the year ended Dec. 31, 2013.
(III) Prepare statement of affairs as on Dec. 31, 2013.
Solution
Computation of capital at start and capital at end
2013 2013
January 1 December 31
Assets
Cash 30,000 39,000
Accounts receivable 6,000 24,000
Merchandise 18,000 27,000
Office equipment 15,000 36,000
Total assets 69,000 126,000
Less: Accounts payable (9,000) (12,000)
Capital 60,000 114,000
Mr. Suleman
Statement of profit and loss
For the period ended December 31, 2013
Rs. Rs.

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 Capital at end 114,000
Less: Capital at start 60,000
Less: Additional investment 45,000 (105,000)
Unadjusted profit 9,000
Less: Adjustments
Commission expense 5,600
Depreciation expense (36,000 x 10%) 3,600 (9,200)
(200)
Add: Adjustments
Prepaid rent 2,000
Adjusted profit 1,800
Mr. Suleman
Statement of affairs
As on December 31, 2013
Rs. Rs.
Assets
Current assets
Cash 39,000
Accounts receivable 24,000
Prepaid rent 2,000
Merchandise inventory 27,000
Total current assets 92,000
Fixed assets
Equipment 36,000
Less: Allowance for depreciation (3,600) 32,400
Total Assets 124,400
Equities
Liabilities
Accounts payable 12,000
Commission payable 5,600
Total liabilities 17,600
Owner’s equity
Capital at start 60,000
Add: Adjusted profit 1,800
Add: Additional investment 45,000
Total 106,800
Total Equities 124,400
2015 Question 3
1. Find Profit or Loss, where Capital at start Rs.43,000, Capital at end Rs.45,000, Drawing
Rs.14,000, Capital introduced during the year Rs.20,000.
2. Find Capital at start, where: Capital at end is Rs.87,000, Drawing Rs.13.000, Capital introduced
during the year Rs.21,000, Profit for the year Rs.23,000.
3. Find Drawing, where: Capital at start Rs.20,000, additional investment Rs.8,000, Profit for the
year Rs.12,000, Capital at end Rs.25,000.
4. Find Capital at end, Where: Capital at start Rs.50,000, Drawing Rs.18,000, Additional
investment Rs.10,000, Loss during the year Rs.10,000.
Solution:
1 2 3 4
Capital at end 45,000 87,000 25,000 32,000
Add: Drawing 14,000 13,000 15,000 18,000

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 Total 59,000 100,000 40,000 50,000
Less: Capital at start 43,000 56,000 20,000 50,000
Less: Additional investment 20,000 (63,000) 21,000 (77,000) 8,000 (28,000) 10,000 (60,000)
Unadjusted Profit / (Loss) (4,000) 23,000 12,000 (10,000)
2016 Question 2
Mr. Suleman started business with cash investment of Rs.200,000/- and office equipment
Rs.120,000/- on Jan. 1st 2015.
He maintains accounts of single entry basis. On 31st 2015 the following information was
extracted from his accounting records:
Cash on hand Rs.90,000 Account receivable Rs.70,000
Merchandise inventory Rs.110,000 Office supplies Rs.25,000
Office equipment Rs.120,000 Accounts payable Rs.25,000
Notes payable Rs.10,000
On Dec. 31, 2015 the following further information was made available:
(I) Withdrew cash for personal use Rs.2,000/- per month from March 1st 2015.
(II) Made additional Investment of Rs.18,000/- during the year.
(III) Office supplies used during the year Rs.10,000/-
(IV) Depreciation of office equipment Rs.12,000/-
(V) Prepaid salaries Rs.5,000/-
Required:
Prepare statement of profit and loss for the year ending Dec. 31st 2015
Solution:
Computation of capital at start and end
Jan01 2015 Dec31 2015
Cash 200,000 90,000
Office equipment 120,000 120,000
Merchandise inventory - 110,000
Accounts receivable - 70,000
Office supplies - 25,000
Total assets 320,000 415,000
Less: Notes payable - (10,000)
Less: Accounts payable - (25,000)
Capitals 320,000 380,000
Mr. Suleman
Statement of profit and loss
For the period ended December 31, 2015
Rs. Rs.
Capital at end 380,000
Add: Drawing (2,000 x 10) 20,000
Total 400,000
Less: Capital at start 320,000
Less: Additional investment 18,000 (338,000)
Unadjusted profit 62,000
Less: Adjustments:
Office supplies expense 10,000
Depreciation expense 12,000 (22,000)
40,000
Add: Prepaid salaries 5,000
Adjusted profit 45,000
2017 Question 2

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Mr. Khan maintains single entry records. The assets and liabilities of the business are as follows:
Jan01, 2016 Dec31, 2016
Cash 18,000 15,000
Accounts receivable 20,000 30,000
Machinery Nil 25,000
Account payable 30,000 40,000
Bank overdraft Nil 15,000
Other information on 31-12-2016
(I) He made additional investment of Rs.5,000 during the year
(II) Estimated allowance for bad debts Rs.1,250
(III) Depreciation of fixed assets estimated at 10%
(IV) Accrued interest on bank overdraft Rs.300.
Required:
(A) Compute the capital at start and end
(B) Prepare statement of profit or loss for the year.
Solution:
Computation of capital at start and capital at end
Jan01, 2016 Dec31, 2016
Cash 18,000 15,000
Accounts receivable 20,000 30,000
Machinery - 25,000
Total assets 38,000 70,000
Less: Accounts payable (30,000) (40,000)
Less: Bank overdraft - (15,000)
Capital 8,000 15,000
Mr. Khan
Statement of profit and loss
For the period ended December 31, 2016
Rs. Rs.
Capital at end 15,000
Less: Capital at start 8,000
Less: Additional investment 5,000 (13,000)
Unadjusted profit 2,000
Less: Adjustments
Bad debt expense 1,250
Depreciation expense (25,000 x 10%) 2,500
Interest expense 300 (4,050)
Adjusted Loss (2,050)
2018 Question 2
Mr. Amjad started business on August. 1, 2017, with a cash investment of Rs.600,000 and keeps the
records under single entry basis. On Dec. 31, 2017, following balances were found:
Cash Rs.40,000; Account receivable Rs.80,000; Merchandise inventory Rs.100,000; Account payable
Rs.30,000; Loan payable Rs.50,000; Land Rs.200,000; Building Rs.400,000 and Equipment Rs.60,000.
Additional information as on December 31, 2017:
(I) Mr. Amjad additionally introduced Rs.30,000 during the period and withdrew Rs.10,000
monthly.
(II) Allowance for bad debts was estimated at 5%.
(III) Depreciation was charged at 12% of the cost of fixed assets annually.
(IV) Salaries were unpaid Rs.5,000 and prepaid Rs.8,000.

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 (V) Commission was unearned Rs.2,000 and earned but not received Rs.3,000.
Required: Prepare Statement of Profit and Loss for the year ended December 31, 2017.
Solution: Computation of capital at end
Cash 40,000
Account receivable 80,000
Merchandise inventory 100,000
Land 200,000
Building 400,000
Equipment 60,000
Total Assets 880,000
Less: Account payable (30,000)
Less: Loan payable (50,000)
Capital at end 800,000
Mr. Amjad
Statement of Profit and Loss
For the period ended December 31, 2017
Rs. Rs.
Capital at end 800,000
Add: Drawing (10,000 x 5) 50,000
Total 850,000
Less: Capital at start 600,000
Less: Additional investment 30,000 (630,000)
Unadjusted profit 220,000
Less: Adjustments
Bad debts expense (80,000 x 5%) 4,000
Depreciation expense (B) (400,000 x 12% x 5/12) 20,000
Depreciation expense (E) (60,000 x 12% x 5/12) 3,000
Salaries expense 5,000
Unearned commission 2,000 (34,000)
186,000
Add: adjustments
Prepaid salaries 8,000
Commission income 3,000 11,000
Adjusted profit 197,000
2019 Question 2
Mr. Saleem maintains his accounting records on single entry basis. His capital balance as on January
01, 2018 is Rs.180,000. The financial position as on December 31, 2018 is as under:
Cash Rs.75,000
Account receivable Rs.70,000
Merchandise inventory Rs.50,000
Furniture Rs.30,000
Office equipment Rs.20,000
Account payable Rs.25,000
Data for adjustment on 31, December 2018 was as under:
(I) Mr. Saleem made additional investment of Rs.40,000/-
(II) He had withdrawn Rs.20,000/- and Rs.25,000/- for personal and business use
respectively.
(III) Depreciation on furniture and office equipment for the year of Rs.5,000/- and Rs.4,000/-
respectively.
(IV) Outstanding salaries at the year ended of Rs.10,000/-

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Required:
Prepare statement of profit and loss for the year ended December 31, 2018.
Solution:
Computation of capital at end
Cash 75,000
Account receivable 70,000
Merchandise inventory 50,000
Furniture 30,000
Office equipment 20,000
Total Assets 245,000
Less: Account payable (25,000)
Capital at end 220,000
Mr. Saleem
Statement of Profit and Loss
For the period ended December 31, 2018
Rs. Rs.
Capital at end 220,000
Add: Drawing 20,000
Total 240,000
Less: Capital at start 180,000
Less: Additional investment 40,000 (220,000)
Unadjusted profit 20,000
Less: Adjustments
Depreciation expense (f) 5,000
Depreciation expense (e) 4,000
Salaries expense 10,000 (19,000)
Adjusted Profit 1,000
2021 Question 2:
On March 1, 2021, Mr. Muneeb started a business with an investment of Rs.100,000 and decided to
keep his business accounting records under single entry system. On June 30, 2021, the following
information was available from his records:
Cash in hand Rs.39,000
Cash at bank Rs.24,000
Account receivable Rs. 7,000
Merchandise Rs.20,000
Furniture Rs.46,000
Accounts payable Rs.12,000
Bank loan Rs.10,000
Additional information as on June 30, 2021
i) During the period he withdrew cash Rs.6,000 for his personal use.
ii) Additional investment of Rs.20,000 was also made
iii) Depreciation was charged on furniture @ 12%.
iv) Bad debts were estimated Rs.500.
v) Rent was prepaid Rs.6,000.
vi) Accrued commission income Rs.7,000
Required: Prepare Statement of Profit & Loss for the period ended on June 30, 2021.
Solution: Computation of Capital at end
Cash in hand 39,000
Cash at bank 24,000

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 Account receivable 7,000
Merchandise inventory 20,000
Furniture 46,000
Total Assets 136,000
Less: Account payable (12,000)
Less: Bank loan (10,000)
Capital at end 114,000
Mr. Muneeb
Statement of Profit and Loss
For the period ended June 30, 2021
Rs. Rs.
Capital at end 114,000
Add: Drawing 6,000
Total 120,000
Less: Capital at start 100,000
Less: Additional investment 20,000 (120,000)
Unadjusted profit / Loss Nil
Less: Adjustments
Depreciation expense (46,000 x 12% x 4/12) 1,840
Bad debt expense 500 (2,340)
(2,340)
Add: Adjustments
Prepaid rent 6,000
Commission income 7,000 13,000
Adjusted Profit 10,660
2022 Question no.4:
The following information is available from the books of Huma who keeps her records under single
entry system:
January 01, 2021 December 31, 2021
Cash in hand Rs.50,000 Rs.200,000
Cash at bank Rs.40,000 Rs.50,000
Merchandise inventory Rs.60,000 Rs.40,000
Account receivable Rs.30,000 Rs.40,000
Machinery Rs.150,000 Rs.400,000
Accounts payable Rs.30,000 Rs.80,000
Additional data as on December 31, 2021:
i) Withdrawal from bank Rs.5,000 for business use and Rs.10,000 for personal use.
ii) The owner contributed machinery of Rs.250,000 to the business on January 04,
2021.
iii) Outstanding electricity bills Rs.1,200
iv) Depreciation on machinery Rs.150 p.m.
v) The bank statement showed a credit of Rs.5,000 on account of direct deposit by
Bushra Sikandar, a customer.
vi) Salaries paid in advance Rs.3,000.
Required:
Prepare a statement of profit and loss for the year ended December 31, 2021.
Solution:
Computation of capital at start and capital at end:
Jan01 Dec31

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 Cash in hand 50,000 200,000
Cash at bank 40,000 50,000
Merchandise inventory 60,000 40,000
Account receivable 30,000 40,000
Machinery 150,000 400,000
Total Assets 330,000 730,000
Less: Account payable (30,000) (80,000)
Capital 300,000 650,000
M/S. Huma
Statement of profit and loss
For the period ended December 31, 2021
Rs. Rs.
Capital at end 650,000
Add: Drawing 10,000
Total 660,000
Less: Capital at start 300,000
Less: Additional investment 250,000 (550,000)
Unadjusted profit 110,000
Less: Adjustments
Utility bills 1,200
Depreciation expense (150 X 12) 1,800 (3,000)
107,000
Add: Adjustments
Direct deposit 5,000
Prepaid salaries 3,000 8,000
Adjusted profit 115,000
Model Paper 2021 Question 7b
Mr. Asim started business on January 1 2020, with an investment of Rs.250,000 and maintains his
accounting records on single entry basis. On Dec. 31, 2020 the following information was obtained
from his accounting records: Cash Rs.85,000, Accounts Receivable Rs.90,000, Merchandise Inventory
Rs.120,000, Office Equipment Rs.80,000, Accounts payable Rs.35,000.
During the year he withdrew Rs.5,000 p.m. for personal use and made an additional investment of
Rs.50,000. Depreciation on office equipment was estimated at 10% and the allowance for bad debts
was estimated at 5% of A/c Receivable. Accrued salaries Rs.6,000 and Prepaid Insurance Rs.3,500.
Required:
1. Compute Capital at end and Prepare Statement of Profit & Loss for the year ended Dec. 31,
2020.
2. Prepare Statement of Affairs as on Dec. 31, 2020.
Solution: Computation of Capital at end
Cash 85,000
Account receivable 90,000
Merchandise inventory 120,000
Office Equipment 80,000
Total Assets 375,000
Less: Account payable (35,000)
Capital at end 340,000
Mr. Asim
Statement of Profit and Loss
For the period ended December 31, 2020

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 Rs. Rs.
Capital at end 340,000
Add: Drawing (5,000 x 12) 60,000
Total 400,000
Less: Capital at start 250,000
Less: Additional investment 50,000 (300,000)
Unadjusted profit 100,000
Less: Adjustments
Depreciation expense (80,000 x 10/100) 8,000
Bad debt expense (90,000 x 5/100) 4,500
Salaries expense 6,000 (18,500)
81,500
Add: Adjustments
Prepaid insurance 3,500
Adjusted Profit 85,000
Mr. Asim
Statement of Affairs
As on December 31, 2010
Rs. Rs. Rs.
Assets
Current Assets
Cash at bank 85,000
Accounts receivable 90,000
Less: Allowance for bad debts (4,500) 85,500
Merchandise inventory (end) 120,000
Prepaid insurance 3,500
Total Current Assets 294,000
Fixed Assets
Equipment 80,000
Less: Allowance for depreciation (8,000) 72,000
Total Assets 366,000
Equities
Liabilities
Accounts payable 35,000
Salaries payable 6,000
Total liabilities 41,000
Owner’s Equity
Capital at start 250,000
Add: Additional investment 50,000
Add: Adjusted profit 85,000
Total 385,000
Less: Drawing (5,000 x 12) (60,000) 325,000
Total Equities 366,000

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