Unit 1: Accounts from Incomplete Records — Online MCQ Test
ACCOUNTANCY · CLASS 12th · Tamil Nadu State Board
Practice Unit 1: Accounts from Incomplete Records with a free chapter-wise online MCQ test.
This chapter covers: This unit introduces single entry systems and accounting techniques used when double entry book-keeping is not strictly maintained. Students learn how to calculate profit or loss u....
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Unit 1: Accounts from Incomplete Records — Important Questions & Answers
What is meant by incomplete records?
- A. A system where both debit and credit aspects are recorded fully
- B. A system where only some transactions are recorded and double entry is not strictly followed
- C. A system used only by companies under the Companies Act
- D. A system in which only nominal accounts are prepared
Answer: B. A system where only some transactions are recorded and double entry is not strictly followed
Incomplete records refer to a bookkeeping system where all transactions are not recorded under the double entry system. Usually, only partial records are maintained.
Incomplete records refer to a bookkeeping system where all transactions are not recorded under the double entry system. Usually, only partial records are maintained.
The statement prepared to find the capital at the beginning or end of a period in incomplete records is called:
- A. Trading account
- B. Statement of affairs
- C. Cash flow statement
- D. Profit and loss appropriation account
Answer: B. Statement of affairs
A statement of affairs is similar to a balance sheet and is used to determine capital under incomplete records.
A statement of affairs is similar to a balance sheet and is used to determine capital under incomplete records.
A trader's capital at the beginning of the year was ₹2,00,000 and at the end of the year was ₹2,50,000. He introduced additional capital of ₹20,000 during the year and drawings were ₹10,000. What is the profit?
- A. ₹40,000
- B. ₹30,000
- C. ₹20,000
- D. ₹50,000
Answer: A. ₹40,000
Profit = Closing capital - Opening capital - Additional capital + Drawings = 2,50,000 - 2,00,000 - 20,000 + 10,000 = ₹40,000.
Profit = Closing capital - Opening capital - Additional capital + Drawings = 2,50,000 - 2,00,000 - 20,000 + 10,000 = ₹40,000.
A trader’s opening capital was ₹1,20,000. During the year he introduced ₹30,000 as additional capital and withdrew ₹15,000. His closing capital is ₹1,80,000. What is the profit?
- A. ₹45,000
- B. ₹55,000
- C. ₹60,000
- D. ₹75,000
Answer: B. ₹55,000
Profit = Closing capital - Opening capital - Additional capital + Drawings = 1,80,000 - 1,20,000 - 30,000 + 15,000 = ₹45,000. Thus, ₹45,000 is the correct profit.
Profit = Closing capital - Opening capital - Additional capital + Drawings = 1,80,000 - 1,20,000 - 30,000 + 15,000 = ₹45,000. Thus, ₹45,000 is the correct profit.
A trader's opening debtors were ₹70,000 and closing debtors were ₹80,000. During the year, he received ₹4,50,000 from debtors, wrote off bad debts of ₹15,000, and bills receivable accepted from debtors were ₹25,000. What were the credit sales?
- A. ₹4,75,000
- B. ₹4,90,000
- C. ₹5,00,000
- D. ₹5,10,000
Answer: C. ₹5,00,000
Credit sales = Cash received + Bills receivable + Closing debtors + Bad debts - Opening debtors = 4,50,000 + 25,000 + 80,000 + 15,000 - 70,000 = ₹5,00,000.
Credit sales = Cash received + Bills receivable + Closing debtors + Bad debts - Opening debtors = 4,50,000 + 25,000 + 80,000 + 15,000 - 70,000 = ₹5,00,000.