Chapter Exam

Chapter 7 ACCOUNTANCY : Single Entry Accounting System — Online MCQ Test

Q: Incomplete records are generally maintained by:

Answer: B. Small sole traders — Small businesses with limited resources often maintain incomplete records to save on accounting costs.

Q: Which of the following is an account that is NOT maintained under the single entry system?

Answer: D. Both Real and Nominal accounts — Single entry system typically records only cash and personal accounts, omitting most real and nominal accounts.

Q: If Closing Capital is Rs. 50,000, Drawings are Rs. 10,000, and Opening Capital is Rs. 40,000, what is the profit/loss?

Answer: A. Rs. 20,000 Profit — Profit = (Closing Capital + Drawings) - Opening Capital. (50,000 + 10,000) - 40,000 = 20,000.

Q: How is 'Interest on Capital' treated when calculating profit under the Statement of Affairs method?

Answer: C. Deducted from closing capital — Interest on capital is an expense for the business and must be deducted from the closing capital to arrive at true profit.

Q: If the 'Capital at the end' is Rs. 1,00,000, 'Drawings' are Rs. 20,000, 'Capital introduced' is Rs. 30,000, and 'Capital at the beginning' is Rs. 90,000, what is the profit?

Answer: A. Rs. 0 — Profit = (Closing Capital + Drawings) - (Opening Capital + Capital Introduced) => (100k + 20k) - (90k + 30k) = 0.

ACCOUNTANCY · CLASS 12 INTER II YEAR · Andhra State Board

Practice Chapter 7 ACCOUNTANCY : Single Entry Accounting System with a free chapter-wise online MCQ test for Andhra State Board CLASS 12 INTER II YEAR ACCOUNTANCY. This chapter covers: This chapter covers features and limitations of incomplete records determining profit or loss using statement of affairs method and conversion to double entry principles.. AI-generated questions from basic to board-exam level, with instant results and explanations.

Questions

20m

Time Limit

Attempts Left

10 random questions from this chapter (mixed difficulty)
Questions you've seen before won't repeat until the pool resets
You have 20 minutes — exam auto-submits when time is up
Maximum 3 attempts per chapter
Results and explanations shown immediately after submission

New here? Register free — includes 3 free chapter exams.

Chapter 7 ACCOUNTANCY : Single Entry Accounting System — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 12 INTER II YEAR ACCOUNTANCY — Chapter 7 ACCOUNTANCY : Single Entry Accounting System, with answers and explanations. These are sample questions; the exam has its own separate question set.

Incomplete records are generally maintained by:

A. Large companies
B. Small sole traders ✓
C. Government departments
D. Public limited companies

Answer: B. Small sole traders
Small businesses with limited resources often maintain incomplete records to save on accounting costs.

Which of the following is an account that is NOT maintained under the single entry system?

A. Cash Book
B. Personal Accounts
C. Real Accounts
D. Both Real and Nominal accounts ✓

Answer: D. Both Real and Nominal accounts
Single entry system typically records only cash and personal accounts, omitting most real and nominal accounts.

If Closing Capital is Rs. 50,000, Drawings are Rs. 10,000, and Opening Capital is Rs. 40,000, what is the profit/loss?

A. Rs. 20,000 Profit ✓
B. Rs. 10,000 Profit
C. Rs. 20,000 Loss
D. Rs. 0 Profit

Answer: A. Rs. 20,000 Profit
Profit = (Closing Capital + Drawings) - Opening Capital. (50,000 + 10,000) - 40,000 = 20,000.

How is 'Interest on Capital' treated when calculating profit under the Statement of Affairs method?

A. It is ignored
B. Added to closing capital
C. Deducted from closing capital ✓
D. Added to opening capital

Answer: C. Deducted from closing capital
Interest on capital is an expense for the business and must be deducted from the closing capital to arrive at true profit.

If the 'Capital at the end' is Rs. 1,00,000, 'Drawings' are Rs. 20,000, 'Capital introduced' is Rs. 30,000, and 'Capital at the beginning' is Rs. 90,000, what is the profit?