Accounting from Incomplete Records Test 2

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Accounting from Incomplete Records Test 2

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Weekly Quiz Competition

Question 1
1 / -0

The difference between assets and liabilities is called as ___________.

A
Capital

B
Drawings

C
Incomes

D
Expenses

Solution

As assets represents the total funds applied in the business from capital (owners fund) and liabilities(external funds e.g bank loan, creditors etc).
therefore the difference between Assets and Liabilities will represent Capital.
Question 2
1 / -0

The difference between capital at the end of year and capital at the beginning of year is called ____________.

A
Profit

B
Income

C
Drawings

D
Expenses

Solution

An increment of closing capital is a result of excess revenue earned during the year against the opening capital at the beginning thus representing Profit.
Question 3
1 / -0

The capital at the end of the accounting year is ascertained by preparing _______.

A
Cash Account

B
Closing statement of affairs

C
Total debtors account

D
Opening statement of affairs

Solution

Statement of Affairs is Based under Accounting Equation " Assets = Capital + Liabilities"
thus to ascertain the Closing Capital at the end of the year Closing Liabilities are deducted from closing assets.
Question 4
1 / -0

Profit can be ascertained from the incomplete records under single entry by using ________.

A
Statement of affairs

B
Conversion method

C
Either A or B

D
None of the above

Solution

The Statement of Affairs Method: takes the difference of opening and closing capitals for calculation of profit or loss under Single Entry System
The Conversion Method of single entry system: tries to convert the records from single entry to double entry system to find the Profit or loss earned by the business.
Question 5
1 / -0

A and B enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs. 10,000. He pays expenses amounting to Rs. 1,000. B incurs further expenses on carriage Rs. 1,000. He receives cash for sales Rs. 15,000. He also takes over goods to the value of Rs. 2,000. What will be the amount to be remitted by B to A?

A
Rs. 13,500

B
Rs. 15,000

C
Rs. 11,000

D
Rs. 10,000
Question 6
1 / -0

From the following details estimate the capital as on 31.12.07, Capital as on 01.01.07 Rs. 205,000, Drawing Rs. 20,000, Profit during the year Rs. 25,000.

A
Rs. 205000

B
Rs. 225000

C
Rs. 210000

D
Rs. 200000
Question 7
1 / -0

Kumar and Shanu-entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. Kumar purchased goods worth Rs. 1,00,000 and spent' Rs. 10,000 in sending the goods to Shanu. He also paid Rs. 5,000 for insurance. Shanu spent Rs. 10,000 as selling expenses and sold goods for 2,00,000. Remaining goods Were taken over by him at Rs. 5,000. What will be the amount to be remitted by Shanu to Kumar as final settlement?

A
Rs. 1,55,000

B
Rs. 1,50,000

C
Rs. 1,15,000

D
Rs. 80,000
Question 8
1 / -0

Find the total at assets at the end of the year if the net profit, drawing during the year and assets at the beginning of the year were 12,000, 7,000 and 15,000 respectively.

A
20,000

B
10,000

C
9,000

D
8,000

Solution

Calculation of total assets at the end of the year :-
Assets in the beginning of the year =Rs 15000
Less : Drawing made during the year (7000)
Add : Net profit for the year 12000
= Rs 20000
Question 9
1 / -0

X had started business with $$Rs. 2,00,000$$ in the beginning of the year. During the year, he borrowed $$Rs. 1,00,000$$ from Y. He further introduced $$Rs. 2,00,000$$ in the business. He also gave $$Rs. 50,000$$ as loan to his son. Goods given away as charity by him were $$Rs. 20,000$$. Profits earned by him were $$Rs. 2,50,000$$. He also withdraw $$Rs. 30,000$$ from the business. His capital at the end of the year would be__________.

A
$$Rs. 5,00,000$$

B
$$Rs. 4,00,000$$

C
$$Rs. 6,20,000$$

D
$$Rs. 4,80,000$$

Solution

In case there is no double entry system is followed, profit can be calculated by comparing the opening and closing capital. In the given situation this can be calculated as:

Opening Capital Rs.200000
Add: Capital Introduced Rs.200000
Add: Profit for the year Rs. 250000
Less: Loss for the year Rs.NIL
Less: Drawings Rs. 30000
--------------------
Capital at the end of the year Rs.620000
-------------------
Loan taken is a liability and loan given is asset, that will not affect the capital.
Question 10
1 / -0

The closing balance of owner's equity is $$Rs. 2,10,000$$. During the year, the owner contributed $$Rs. 60,000$$ and withdrew $$Rs. 40,000$$. If the firm had $$Rs. 80,000$$ net income for the year, what was the owner's equity at the beginning?

A
$$RS. 2,30,000$$

B
$$Rs. 2,10,000$$

C
$$Rs. 1,90,000$$

D
$$Rs. 1,10,000$$

Solution

In case there is no double entry system is followed, profit can be calculated by comparing the opening and closing capital. In the given situation this can be calculated as:

Opening Capital Rs. XXXX
Add: Capital Introduced Rs. 60000
Add: Profit for the year Rs. 80000
Less: Loss for the year Rs. NIL
Less: Drawings Rs. 40000
--------------------
Capital at the end of the year Rs.210000
-------------------
Opening Capital=Closing Capital+Drawings -Profit for the year-Capital introduced

=Rs.210000+Rs.40000-Rs.80000-Rs.60000
Opening Capital = Rs.110000.

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Re-Attempt Weekly Quiz Competition

Accounting from Incomplete Records Test 2

Result

Accounting from Incomplete Records Test 2

Score

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Rank

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SHARING IS CARING

Question 1

Capital

Drawings

Incomes

Expenses

Solution

Question 2

Profit

Income

Drawings

Expenses

Solution

Question 3

Cash Account

Closing statement of affairs

Total debtors account

Opening statement of affairs

Solution

Question 4

Statement of affairs

Conversion method

Either A or B

None of the above

Solution

Question 5

Rs. 13,500

Rs. 15,000

Rs. 11,000

Rs. 10,000

Question 6

Rs. 205000

Rs. 225000

Rs. 210000

Rs. 200000

Question 7

Rs. 1,55,000

Rs. 1,50,000

Rs. 1,15,000

Rs. 80,000

Question 8

20,000

10,000

9,000

8,000

Solution

Question 9

$$Rs. 5,00,000$$

$$Rs. 4,00,000$$

$$Rs. 6,20,000$$

$$Rs. 4,80,000$$

Solution

Question 10

$$RS. 2,30,000$$

$$Rs. 2,10,000$$

$$Rs. 1,90,000$$

$$Rs. 1,10,000$$

Solution

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