CBSE Class 11 Accountancy Accounts from Incomplete Records MCQs Set B

Question: In which of the following systems of recording the financial statements reflect true and fair view of an entity.
a) Single entry system
b) Double entry system
c) Cash based system
d) Budgetary Accounting System
Answer: b

Question: If opening capital = Rs.1000 and closing capital = Rs.2000. Assuming no drawings during the accounting period, calculated the net income or loss for the period
a) Rs.1000 net income
b) Rs.1000 net loss
c) Rs.2000 net income
d) Rs.2000 net loss
Answer: a

Question: In single entry system of accounting
a) Dual aspects of a transaction is recorded
b) Single aspect of a transaction is recorded
c) Important transactions are recorded
d) All of them
Answer: b

Question: Statement of affairs is prepared to-
a) Know about assets
b) Know about liabilities
c) Calculate capital
d) Know financial position
Answer: c

Question: To ascertain the profit, closing capital is to be adjusted by deducting ________ and adding _________.
a) Opening capital, Drawings
b) Opening capital, Cash deposit
c) Surplus, Opening balance
d) None of the Above
Answer: a

Question: If opening capital is Rs.40,000, closing capital is Rs.90,000, withdrawal is Rs.5,000 and additional capital brought in is Rs.10,000, profit is Rs.:
a) 45,000
b) 55,000
c) 35,000
d) 50,000
Answer: a

Question: If debtors balance was Rs.2000 at 1 Jan 2018, credit sales made during the year were Rs.1000 and the total payments of Rs.1500 were received from debtors, which of the following is the debtors account balance at 31 Dec 2018?
a) Rs.1000
b) Rs.2000
c) Rs.1500
d) Rs.500
Answer: c

Question: Net Profit + Operating expenses = ?
a) Cost of goods sold
b) Amount of Sales
c) Net Sales
d) Gross Profit
Answer: d

Question: Calculate the amount of net income or loss if the capital has been increased by Rs.1000 during this accounting period, drawing = Rs.5000 and Rs.1000 fresh capital was introduced in the business.
a) Rs.5000 net loss
b) Rs.5000 net profit
c) Rs.6000 net loss
d) Rs.6000 net profit
Answer: b

Question: In single entry system records of which accounts are maintained?
a) Personal Account
b) Real Account
c) Nominal Account
d) Both Personal Account and Real Account
Answer: d

Question: Statement of financial position produced from incomplete accounting record is commonly known as
a) Balance sheet
b) Cash flow statement
c) Statement of affairs
d) Statement of financial operations
Answer: c

Question: Which of the following businesses sometimes maintain incomplete accounting record of the business activities?
a) Large businesses
b) Companies
c) Partnership firms
d) Small Proprietorship businesses
Answer: d

Question: In the absence of introduction of fresh capital, when closing capital is more than opening capital, it indicates:
a) Loss
b) Profit
c) No profit, no loss
d) None of the options
Answer: b

Question: From incomplete records, it is not always possible to prepare:
a) Ledger
b) Trial balance
c) Balance Sheet
d) All of the options
Answer: d

Question: Total opening balances of assets and liabilities are Rs.10,000 and Rs.5000 respectively. Find out the opening capital of the business:
a) Rs.10,000
b) Rs.5000
c) Rs.15000
d) Rs.50,000
Answer: b

Question: From single entry and incomplete records, which one of the following accounts may be derived from credit Sales made during the current accounting period?
a) Debtor account
b) Capital account
c) Creditors account
d) Expenses account
Answer: a

Question: Which of the following entities generally prepare their books of accounts under single entry system?
a) Joint stock companies
b) Sole traders
c) Government organisations
d) Not-for-profit organisations
Answer: b

Question: In a Proprietorship Firm:
a) Opening capital + Net income - Drawing - Assets = Closing Capital
b) Closing capital = Opening Capital + Net loss - Drawings
c) Closing Capital = Opening capital + Assets + Incomes - Expenses
d) Closing capital = Opening capital + Net income - Drawings
Answer: d

Question: Which of the following is mainly prepared for ascertaining capital in the beginning?
a) Debtors' account
b) Cash account
c) Creditors' account
d) Opening statement of affairs
Answer: d

Question: Which of the following is not an advantage of single entry system:
a) Requirement of only basic knowledge
b) Flexibility
c) Economical
d) Incomplete System
Answer: d

Question: To find out the profit, which of the following is added to closing capital?
a) Drawings
b) Opening Capital
c) Additional Capital
d) None of the options
Answer: a

Question: In case of net worth method of Single Entry System, profit is ascertained by:
a) comparing capital at beginning and end of accounting period
b) Preparing a Profit and Loss Account
c) Preparing a Balance Sheet
d) None of the options
Answer: a

Question: One account which is always maintained in single entry system is:
a) Building Account
b) Machine Account
c) Cash Account
d) None of the options
Answer: c

Question: If opening capital is Rs.80,000, closing capital is Rs.1,80,000, withdrawals are Rs.10,000 and additional capital brought in is Rs.20,000, then the profit will be:
a) Rs.90,000
b) Rs.1,10,000
c) Rs.70,000
d) Rs.1,50,000
Answer: a

Question: Statement of financial position produced from incomplete accounting record is called:
a) Balance sheet
b) Statement of events
c) Statement of affairs
d) None of the options
Answer: c

Question: Generally accounts under single entry system are maintained by:
a) Small businesses
b) Company
c) Partnership firm
d) Government undertakings
Answer: a

Question: If the opening capital is Rs.80,000, closing capital is Rs.1,80,000, withdrawals are Rs.10,000 and additional capital brought in is Rs.20,000 the profit will be Rs.:
a) 90,000
b) 1,10,000
c) 70,000
d) 1,50,000
Answer: a

Question: Which one of the following accounts is maintained in single entry system:
a) Debtors Account
b) Creditors Account
c) Nominal Account
d) None of the options
Answer: b

Question: Generally incomplete records are maintained by-
a) Trader
b) Society
c) Company
d) Government
Answer: a

Question: The capital in the beginning of the accounting year is ascertained by preparing ______.
a) closing statement of affairs
b) cash account
c) statement of profit or loss
d) opening statement of affairs
Answer: d

Question: If opening capital is Rs. 10,000 & closing capital is Rs. 15,000 then profit or loss:
a) Loss of Rs. 5,000
b) Profit of Rs. 2,500
c) Profit of Rs. 5,000
d) None of the options
Answer: c

Question: Trading and Profit and Loss Account cannot be prepared from books maintained on single entry basis because:
a) Nominal accounts are not maintained in the ledger
b) Real accounts are not maintained in the ledger
c) Personal accounts are not maintained in the ledger
d) All of the options
Answer: a

Question: When closing capital exceeds opening capital, it indicates:
a) Profit
b) Loss
c) No profit no loss
d) Profit, if no fresh capital was introduced
Answer: d

Question: Under the net worth method, the basis for ascertaining profit or loss is the difference between:
a) Gross assets on two dates
b) Net assets on two dates
c) Capital on two dates
d) Liabilities on two dates
Answer: c

Question: Single entry system can only provide ............. degree of ............. as no proper method of accounting is followed in preparation of profit and loss.
a) Low, accuracy
b) Low, record
c) High, accuracy
d) High, record
Answer: a

Question: Opening capital = ₹60,000; Drawings = ₹5,000; Capital added during the year = ₹10,000; Closing capital = ₹90,000. Find profit/loss for the year.
a) ₹15,000
b) ₹25,000
c) ₹18,000
d) ₹10,000
Answer: b

Question: What will be the opening capital, if drawings are ₹15,000, profit for the year ₹25,000 and closing capital ₹70,000?
a) ₹80,000
b) ₹60,000
c) ₹95,000
d) ₹50,000
Answer: b

Question: If creditors balance was Rs.1000 at 1 Jan 2022, ending balance of creditors was Rs.2000 on 31 Dec 2022 and a Payment of Rs.500 was made to Creditors, which of the following is the amount of purchases made during the year 2022?
a) Rs.2500
b) Rs.500
c) Rs.1500
d) Rs.2000
Answer: c

Question: Accounts which are maintained under single entry system-
a) Personal accounts
b) Impersonal accounts
c) Personal accounts & Impersonal accounts both
d) None of the options
Answer: a

Question: A statement similar to balance sheet prepared to find out the amount of opening capital is:
a) Opening statement of affairs
b) Balance sheet
c) Profit and loss accounts
d) Cash flow statement
Answer: a