12th Accountancy - Book Back Answers - Unit 1 - English Medium Guides ~ Kalvi Tips

12th - Accountancy - Book Back Answers - Unit 1 - English Medium

Tamil Nadu Board 12th Standard Accountancy - Unit 1: Book Back Answers and Solutions

This post covers the book back answers and solutions for Unit 1 – from the Tamil Nadu State Board 12th Standard Accountancy textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

By going through this material, you’ll gain a strong understanding of Unit 1 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

1 Mark Questions: Choose the correct answer,
2 Mark Questions: Very Short Answer Questions
3, 4, and 5 Mark Questions: Short Answer Questions, Excercises

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 12th students! Prepare well and aim for top scores. Thank you!

Topic: Unit 1 : Accounts from incomplete records

I. Choose the correct Answer

1. Incomplete records are generally maintained by …………….
(a) A company
(b) Government
(c) Small sized sole trader business
(d) Multinational enterprises
Answer Key:
(c) Small sized sole trader business

2. Statement of affairs is a …………….
(a) Statement of income and expenditure
(b) Statement of assets and liabilities
(c) Summary of cash transactions
(d) Summary of credit transactions
Answer Key:
(b) Statement of assets and liabilities

3. Opening statement of affairs is usually prepared to find out the …………….
(a) Capital in the beginning of the year
(b) Capital at the end of the year
(c) Profit made during the year
(d) Loss occurred during the year
Answer Key:
(a) Capital in the beginning of the year

4. The excess of assets over liabilities is …………….
(a) Loss
(b) Cash
(c) Capital
(d) Profit
Answer Key:
(c) Capital

5. Which of the following items relating to bills payable is transferred to total creditors account?
(a) Opening balance of bills payable
(b) Closing balance of bills payable
(c) Bills payable accepted during the year
(d) Cash paid for bills payable
Answer Key:
(c) Bills payable accepted during the year

6. The amount of credit sales can be computed from …………….
(a) Total debtors account
(b) Total creditors account
(c) Bills receivable account
(d) Bills payable account
Answer Key:
(a) Total debtors account

7. Which one of the following statements is not true in relation to incomplete records?
(a) It is an unscientific method of recording transactions
(b) Records are maintained only for cash and personal accounts
(c) It is suitable for all types of organisations
(d) Tax authorities do not accept
Answer Key:
(c) It is suitable for all types of organisations

8. What is the amount of capital of the proprietor, if his assets are RS 85,000 and liabilities are RS 21,000?
(a) RS 85,000

(b) RS 1,06,000
(c) RS 21,000
(d) RS 64,000
Answer Key:
(d) RS 64,000

9. When capital in the beginning is RS 10,000, drawings during the year is RS 6,000, profit made during the year is RS 2,000 and the additional capital introduced is RS 3,000, find out the amount of capital at the end …………….
(a) RS 9,000
(b) RS 11,000
(c) RS 21,000
(d) RS 3,000
Answer Key:
(a) RS 9,000

10. Opening balance of debtors: RS 30,000, cash received: RS 1,00,000, credit sales: RS 90,000; closing balance of debtors is …………….
(a) RS 30,000
(b) RS 1,30,000
(c) RS 40,000
(d) RS 20,000
Answer Key:
(d) RS 20,000

II.Very short answer questions

1. What is meant by incomplete records?

When accounting records are not strictly maintained according to double entry system, these records are called incomplete accounting records. It is an incomplete and unscientific way of book keeping.

2. State the accounts generally maintained by small sized sole trader when double entry accounting system is not followed.

cash A/c
Personal A/c

3. What is a statement of affairs?

A statement of affairs is a statement showing the balances of assets and liabilities on a particular date. Capital = Assets – Liabilities

III.Short questions

1. What are the features of incomplete records?

i) Nature:

It is an unscientific and unsystematic way of recording transactions. Accounting principles and accounting standards are not followed properly.

ii) Type of accounts maintained:

cash and personal accounts are maintained fully.

iii) Lack of uniformity:

There is no uniformity in recording the transactions among different organisations.Different organisations record their transactions according to their needs and conveniences.

2. What are the limitations of incomplete records?

i) Lack of proper maintenance of records:

It is an unscientific and unsystematic way of maintaining records. Real and nominal accounts are not maintained properly.

ii) Difficulty in preparing trial balance:

As accounts are not maintained for all items. So,it is difficulty prepare trial balance.

iii) Errors and frauds cannot be detected easily:

As only partial records are available; it may not be possible to have internal checks in maintaining accounts to detect errors and frauds.

3. State the differences between double entry system and incomplete records.

Basis	Double entry system	Incomplete records
1. Recording of transactions	Both debit and credit aspects of all the transactions are recorded.	Debit and credit aspects of all the transactions are not recorded completely.
2. Type of accounts maintained	Personal, real and nominal accounts are maintained fully.	In general, only personal and cash accounts are maintained fully.
3. Suitability	It is suitable for all types of organisations.	It may be suitable for small sized sole traders and partnership firms.

4. Differentiate between statement of affairs and balance sheet.

Basis	Statement of affairs	Balance sheet
1. Objective	Statement of affairs is generally prepared to find out the capital of the business.	Balance sheet is prepared to ascertain the financial position of the business.
2.Accounting system	Statement of affairs is prepared when double entry system is not strictly followed.	Balance sheet is prepared when accounts are maintained under double entry system.
3. Reliability	It is not reliable as it is based on incomplete records	It is reliable as it is prepared under double entry system.

5. How is the amount of credit sale ascertained from incomplete records?

Dr Total Debtors A/C Cr

Particulars

To Balance b/d

To Sales A/c (credit sales)

To Bank A/c (cheque dishonoured)

To Bills receivable A/c (bills dishonoured)

xxx xxx xxx

xxx

By cash A/c

By Bank A/c (cheques received) By Discount allowed A/c

By Sales returns A/c By Bad debts A/c

By Bills receivable A/c (bills received)

By Balance c/d (closing balance)

xxx xxx xxx xxx xxx xxx

xxx

6. How is the amount of credit sale ascertained from incomplete records?

Ascertainment of Credit Sales:-

Particulars	RS	Particulars	RS
To Balance b/d (Opening balance) To Sales A/c (Credit Sales) To Bills receivable A/C (Bills dishonoured	XXX XXX XXX	By Cash A/c (received) By Bank A/c (cheques received) By Discount allowed A/c By Sales return A/c By Bad debts A/c By Bills receivable A/c (bills received) By Balance A/c closing balance	XXX XXX XXX XXX XXX XXX XXX
	XXX		XXX

IV. Excercises

Question 1.
From the following particulars ascertain profit or loss:

Answer Key:

Statement of profit or Loss

Question 2.
From the following particulars ascertain profit or loss:

Answer Key:
Statement of Profit or Loss

Question 3.
From the following details, calculate the missing figure:

Answer Key:
Statement of Profit or Loss

Question 4.
From the following details, calculate the capital as of 31st December 2018.

Answer Key:
Statement of Profit or Loss

Question 5.
From the following details, calculate the missing figure:

Answer Key:
Statement of Profit or Loss

Question 6.
Following are the balances in the books of Thomas as of 31st March 2019.

Prepare a statement of affairs as of 31st March 2019 and calculate capital as of that date.
Answer Key:
Statement of Profit or Loss

Question 7.
On 1st April 2018 Subha started her business with a capital of RS 1,20,000. She did not maintain a proper book of accounts. Following particulars are available from her books as of 31.3.2019.

During the year she withdrew RS 30,000 for her personal use. Did she introduce further capital of Rs. 40,000 during the year. Calculate her profit or loss.
Answer Key:
Statement of Affairs

Statement of Profit or Loss

Question 8.
Raju does not keep proper books of accounts. The following details are taken from his records.

During the year he introduced further capital of RS 50,000 and withdrew RS 2,500 per month from the business for his personal use. Prepare a statement of profit or loss with the above information.
Answer Key:
Statement of Affairs

Statement of Profit or Loss

Question 9.
Ananth does not keep his books under the double-entry system. Find the profit or loss made by him for the year ending 31st March 2019.

Ananth had withdrawn RS 60,000 for his personal use. He had introduced RS 17,000 as capita for the expansion of his business. Create a provision of 5% on debtors. Plant and machinery are to be depreciated at 10%.
Answer Key:
Statement of Affairs

Statement of Profit or Loss

Question 10.
Find out credit sales from the following information:

Answer Key:
Total / Sundry debtors Account

Question 11.
From the following details find out total sales made during the year.

Answer Key :

Total / Sundry debtors Account

Total Sales = Cash Sales + Credit Sales
= 4, 60, 000 + 5, 40, 000
= 10, 00, 000

Question 12.
From the following particulars, prepare bills receivable account and compute the bills received from the debtors.

Answer Key:
Total/Bills Receivable Account

Question 13.
From the following particulars, calculate total sales.

Answer Key:
Bills Receivable Account
Debtors A/c

Question 14.
From the following details, calculate credit purchases.

Answer Key:
Total/ Sundry Creditors Account

Question 15.
From the following particulars calculate total purchases.

Answer Key:
Bills Payable Account

Total Creditors Account

Total purchases = Cash purchases + Credit purchases
Total purchases = 1, 55, 000 + 2, 25, 000
= Rs. 3, 80, 000

Question 16.
From the following details, you are required to calculate credit sales and credit purchases by preparing total debtors account, total creditors account, bills receivable account, and bills payable account.

Answer Key:
Bills Receivable A/c

Total debtors A/c

Bills Payable A/c

Total Creditors A/c

Question 17.
From the following details of Abdul who maintains incomplete records, prepare Trading and Profit and Loss account for the year ended 31st March 2018 and a Balance Sheet as on the date.

Other details:

Answer Key:
Total Debtors Account

Total Creditors Account

Trading Account for year ended 31st March 2019

Profit/Loss Account for the year ended 31st March 2019

Balance Sheet as on 31st March 2019

Question 18.
Bharathi does not maintain her books of accounts under the double-entry system. From the following details prepare a trading and profit and loss accounts for the year ending 31st March 2019 and a balance sheet as of that date.

Cash Book

Other information:

Answer Key:
Total Debtors Account

Trading Account for that year ended 31st March 2019

Profit/Loss Account for the year ended 31st March 2019

Balance Sheet as of 31st March 2019

Question 19.
Arjun carries on grocery business and does not keep his books on a double entry basis. The following particulars have been extracted from his books:

Other information for the year ending 31 – 3 – 2019 showed the following:
Total sales during the year were RS 7, 70,000. Purchases returns during the year were RS 30, 000 and sales returns were RS 25, 000. Depreciate plant and machinery by 5%. Provide RS 1, 500 for doubtful debts. Prepare trading and profit and loss account for the year ending 31st March 2019 and a balance sheet as on the date.
Answer Key:
Statement of Affairs

Total Credit Account

Trading Account for the year ended 31st December 2019

Profit/Loss Account for the year ended 31st December 2019

Balance Sheet as of 31st December 2019

Question 20.
Selvam does not keep his books under the double-entry system. From the following information prepare trading and profit and loss account A/c and balance sheet as of 31 – 12 – 2018.