Accounts from Incomplete Records : Double entry system

This set of MCQs helps students to learn about various important things such as, state the meaning and features of incomplete records, calculate profit or loss using the statement of affairs method, distinguish between balance sheet and statement of affairs, prepare trading and profit and loss account and balance sheet from incomplete records, detect the missing figures/information by preparing relevant accounts.

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Accounts which are maintained under single entry system-

Personal accounts Impersonal accounts (a) & (b) both None of these.

Statement of affairs is prepared to-

Know about assets Know about liabilities Calculate capital Know financial position.

Liabilities and assets amount to Rs. 50,000 and Rs. 78,000 respectively. The difference amount will represent-

Creditors Debentures Profit Capital.

Generally incomplete records are maintained by-

Trader Society Company Government.

If Opening capital is Rs. 60,000, drawings Rs. 5,000, capital introduced during the period Rs. 10,000, closing capital Rs. 90,000. The value of profit earned during the period will be:

Rs. 20,000 Rs. 25,000 Rs. 30,000 Rs. 40,000

Credit purchase, during the year is ascertained by preparing :

Total creditor’s account Total debtor’s account Cash account Opening statement of affairs

Opening capital is ascertained by preparing,

Total debtor’s account

Total creditor’s account

Cash account

Opening statement of affairs