Problems on Conversion of Single Entry into Double Entry

Here’s a practical example/problem on Conversion of Single Entry into Double Entry presented in a tabular format, illustrating how to calculate profit using the Statement of Affairs Method:

Example Problem (Using Statement of Affairs Method)

Particulars Amount (₹)
Opening Capital (as on 01-04-2024) 80,000
Closing Capital (as on 31-03-2025) 1,20,000
Additional Capital Introduced 10,000
Drawings during the year 15,000
Profit or Loss = ? ?

✅ Solution (Calculation of Profit)

Step Amount (₹)
Closing Capital 1,20,000
(-) Opening Capital (80,000)
——————————————– ————–
Increase in Capital 40,000
(+) Drawings 15,000
(-) Additional Capital Introduced (10,000)
——————————————– ————–
Profit for the Year 45,000

📌 Conclusion:

The profit for the year ended 31st March 2025 is ₹45,000, calculated using the Statement of Affairs method by reconstructing capital movement under the double-entry framework.

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