accounts from incomplete records Test

Result

accounts from incomplete records Test - 13

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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

In order to find out the correct profit, drawings are ___________ to the closing capital.

A
Deducted

B
Added

C
Divided

D
Multiplied

Solution

As Drawing refers to withdrawal of capital, Due to drawings, closing capital is decreased resulting a reduced Profit.
Hence, to ascertain correct profit Drawings are added back to closing capital.
Question 4
1 / -0

Incomplete record mechanism of book keeping is ___________.

A
Scientific

B
Unscientific

C
Unsystematic

D
Both (b) and (c)

Solution

Book keeping is an unsystematic method of recording transactions.It is observed, that many businessmen keep incomplete records because of the following reasons :
(a) This system can be adopted by people who do not have the proper knowledge of accounting principles;
(b) It is an inexpensive mode of maintaining records.
Question 5
1 / -0

The capital balances are ascertained by preparing __________.

A
Statement of affairs

B
Cash accounts

C
Drawings account

D
Debtors account

Solution

Profit or loss earned by the business under single entry system is based on the difference between its Opening and closing capital.
To ascertain this capitals Statements of affairs are prepared.
capital = Assets - Liabilities.
Question 6
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 7
1 / -0

A statement of ____________ is to be prepared in order to find out the profit and loss under a single entry system.

A
Income

B
Affairs

C
Revenue

D
Profit and loss

Solution

Profit or loss earned by the business under single entry system is based on the difference between its Opening and closing capital.
To ascertain this capital Statement of affairs are prepared.
Question 8
1 / -0

A statement of affairs is a summarised statement of an estimated _____________.

A
Financial position

B
Profit

C
Income

D
Loss

Solution

To ascertain the Capital, Statements of affairs are prepared.
Capital = Assets - Liabilities
The above equation under which statement of affairs are prepared reflects the financial position of the business.
Question 9
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 10
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

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Re-Attempt Weekly Quiz Competition

accounts from incomplete records Test - 13

Result

accounts from incomplete records Test - 13

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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

Deducted

Added

Divided

Multiplied

Solution

Question 4

Scientific

Unscientific

Unsystematic

Both (b) and (c)

Solution

Question 5

Statement of affairs

Cash accounts

Drawings account

Debtors account

Solution

Question 6

Cash Account

Closing statement of affairs

Total debtors account

Opening statement of affairs

Solution

Question 7

Income

Affairs

Revenue

Profit and loss

Solution

Question 8

Financial position

Profit

Income

Loss

Solution

Question 9

Statement of affairs

Conversion method

Either A or B

None of the above

Solution

Question 10

20,000

10,000

9,000

8,000

Solution

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