PART – A
I. Choose the correct Answers: 10 x 1 = 10
1. 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
2. The excess of assets over liabilities is
a) Loss b) Cash
c) Capital d) Profit
3. 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
4. Incomplete records are generally maintained by
a) A company b) Government
c) Small sized sole trader business d) Multinational Enterprises
5. What is the amount of capital of the proprietor of his assets are Rs.85,000 and liabilities
are Rs. 21,000
a) Rs. 85,000 b) Rs. 1,06,000
b) c) Rs. 21,000 d) Rs. 64,000
6. The difference between the total assets of total liabilities is taken as
a) Drawings b) Capital
c) Profit d) Loss
7. The capital of a business is ascertained by preparing
a) Trading account b) Statement of profit or loss
c) Balance sheet d) Statement of affairs
8. _______is suitable only for sole traders and partnership firms
a) Double entry system b) Single entry System
c) Both (a) and (b) d) None of these
9. Incomplete records are those records which are not kept under _______system
a) Single Entry b) Double Entry
c) Book keeping d) None of these
10. Companies cannot keep books on single entry system because of
a) Tax properties b) Legal Provisions
c) Both (a) and (b) d) None of these
PART – B
Answer all the questions: 4 x 2 = 8
11. What is a Statement of affairs?
12. What is meant by incomplete records?
13. From the following particulars ascertain profit or loss
Closing Capital – 7,00,000 Opening capital – 4,00,000
Additional capital – 1,40,000 Drawings – 80,000
14. Calculate the missing information
Closing capital – 64,000 Drawings – 9,600
Additional capital – 16,000 Profit – 19,200
PART – C
Answer all the questions: 4 x 3 = 12
15. What are the features of incomplete records? (Any three)
16. What are the limitations of incomplete records? (Any three)
17. On 1st April 2018 Kumar started her business with a capital of Rs. 60,000. She did not
Maintain proper book of accounts. Following particulars are available forms her books
as on 31.03.2019.
Bank overdraft – 25,000 Stock in trade – 80,000
Debtors – 90,000 Creditors – 45,000
Bills receivable – 35,000 Bills payable – 1,20,000
Computer – 15,000 Cash in hand – 30,000
Machinery – 1,50,000.
During the year she withdrew Rs.15,000 for her personal use. She introduced further
Capital of Rs.20,000 during the year. Calculate her profit or loss.
18. From the following particulars, calculate the total sales
Opening Debtors – 2,50,000 Bills receivable dishonored – 15,000
Opening Bills receivable – 60,000 Returns inward – 50,000
Cash received from debtors – 7,25,000 Bad debts – 30,000
Closing bills receivables – 90,000 Cash sales – 3,15,000
Cash received for bills receivable – 1,60,000 Closing debtors – 2,40,000
PART – D
Answer all the questions: 4 x 5 = 20
19. State the difference between double entry system and incomplete records?
20. Differentiate between statement of affairs and balance sheet?
21. Harini does not keep his books under double entry system. Find the profit or loss made
By him for the year ending 31st March 2019.
Particulars 01.04.2018 31.03.2019
Bank 2,500 (Dr) 30,000 (Cr)
Cash 1,500 2,250
Stock 17,500 22,500
Debtors 50,000 45,000
Plant and Machinery 40,000 40,000
Buildings 70,000 70,000
Creditors 85,000 65,000
Harini had withdrawn Rs.30,000 for his personal use. He had introduced
Rs. 8,500 as capital for expansion of his business. Create a provision of 5%
On debtors. Plant and Machinery is to be depreciated at 10%
22. Vijay does not keep his books under double entry system. From the following
Information prepare trading and profit and loss account and balance sheet as on
31-12-2018:
Particulars 1-1-2018 31-12-2018
Machinery 1,20,000 1,20,000
Cash at bank 50,000 66,000
Debtors 1,40,000 2,00,000
Stock 90,000 44,000
Bills receivable 40,000 76,000
Bank loan 90,000 90,000
Creditors 50,000 42,000
Other details:
Cash sales – 40,000 Credit Sales – 3,60,000
Cash purchases – 16,000 Credit Purchases – 1,04,000
Wages – 12,000 Salaries – 47,000
Advertisement – 14,000 Interest on bank loan – 9,000
Drawings – 1,20,000 Additional capital – 42,000
Adjustments:
a) Write off depreciation of 10% on machinery.
b) Create a reserve of 1% on debtors for doubtful debts.
Prepared by Mr. A. Boopathi
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