Gujarat Board GSEB Class 11 Commerce Accounts Important Questions Part 2 Chapter 10 Accounts from Incomplete Records Important Questions and Answers.
GSEB Class 11 Accounts Important Questions Part 2 Chapter 10 Accounts from Incomplete Records
Very Short Questions (VSQs)
Answer the following questions in one sentence : [1 mark each]
Question 1.
Normally, who keeps their account as per Single Entry System?
Answer:
Normally, only sole trader, small shop-keepers, hawkers, street-venders, small retailers, etc. keeps their books of accounts as per Single Entry System.
Question 2.
How many main methods are there to find out profit or loss under Single Entry System? Which are they?
Answer:
Two main methods are there to find out profit or loss under Single Entry System:
- Statement of Affairs method
- Conversion of Single Entry into Double entry method
Question 3.
Why Trial balance can’t be prepared in Single Entry System?
Answer:
As dual effect of all the transactions is not recorded by the businessmen, Trial balance can’t be prepared.
Question 4.
How is Statement of Affairs like ?
Answer:
Statement of Affairs is like Balance sheet.
Question 5.
Why is Statement of Affairs prepared ?
Answer:
Statement of Affairs is prepared to find but opening and closing capital as well as profit or loss of the business on a particular date.
Question 6.
In which method Statement of Affairs is prepared?
Answer:
Statement of Affairs is prepared under Capital Comparison Method.
Question 7.
Which type of transactions are recorded in Single Entry System ?
Answer:
Only cash transactions such as cash received from debtors or customers, cash paid to creditors or suppliers, cash sales, cash purchases, cash expenses, cash incomes, etc. are recorded in Single Entry System.
Question 8.
Can final accounts be prepared under Single Entry System ? Why ?
Answer:
In Single Entry System as assets accounts are not kept and trial balance is also not prepared, it is not possible to prepare final accounts.
Question 9.
Can Profit or Loss be ascertained under Single Entry System? Why?
Answer:
As income and expense accounts are not prepared, it is not possible to know the profit or loss at the end of the year like Double Entry System.
Question 10.
Which type of accounts are maintained under Single Entry System?
Answer:
Generally, the personal accounts relating to debtors and creditors and cash account are maintained under the Single Entry System.
Question 11.
How is the closing capital calculated under Single Entry System?
Answer:
Under Single Entry System, the closing capital is calculated by deducting the closing balances of all liabilities from the closing balances of all assets at the end of the accounting year.
Closing = Closing Assets – Closing Liabilities
Question 12.
Which statement is prepared under the Single Entry System to ascertain profit ?
Answer:
Statement of profit or loss is prepared under the Single Entry System to ascertain profit.
Question 13.
Which types of accounts are normally not kept under the Single Entry System ?
Answer:
Usually all real accounts and nominal accounts are not kept under the Single Entry System.
Question 14.
Which statement is prepared under the Single Entry System to ascertain the capital ?
Answer:
Statement of Affairs is prepared under Single Entry System to ascertain the capital.
Question 15.
What is Capital Comparison Method?
Answer:
Capital Comparison Method is a method in which profit is calculated by comparing the capital at the end of the trading period with that of the beginning of the year.
Question 16.
How is the drawings made during the year adjusted while calculating profit in the statement of profit under Single Entry System?
Answer:
While calculating profit for the year, drawings made during the year should be shown by way of ‘addition’ to the amount of closing capital in the statement of profit or loss.
Question 17.
How is the profit calculated under the Single Entry System to ascertain profit?
Answer:
Under Single Entry System, profit is calculated by comparing and deducting capital in the beginning of the year from the capital at the end of the accounting year.
Question 18.
By which other name Statement of Affairs Methods is known?
Answer:
Statement of Affairs Method is also known as Capital Comparison Method.
Question 19.
Why Single Entry System is not reliable ?
Answer:
Single Entry System is not reliable because it is incomplete method.
Question 20.
Why important decisions cannot be made under Single Entry System ?
Answer:
Due to insufficient record of information, important decisions cannot be made under Single Entry System.
Multiple Choice Questions (MCQs)
Write the correct option from those given below each question : [1 mark each]
Question 1.
As a rule, the system of recording transactions relating to cash and personal accounts only is called ………………… .
(a) Single Entry System
(b) Double Entry System
(c) Desi Nama System
(d) None of these
Answer:
(a) Single Entry System
Question 2.
Statement of Affairs is like ……………… .
(a) Cashbook
(b) Journal
(c) Trial balance
(d) Balance sheet
Answer:
(d) Balance sheet
Question 3.
Who uses Single Entry System ?
(a) Big traders
(b) Small retailers
(c) Public companies
(d) Government companies
Answer:
(b) Small retailers
Question 4.
In Single Entry System ………………… .
(a) only one effect is given for all transactions
(b) only one effect is given to some transactions
(c) two effects are given to some transactions
(d) two effects are given for all transactions
Answer:
(b) only one effect is given to some transactions
Question 5.
Which accounts are opened under Single Entry System only?
(a) Personal accounts and Real accounts
(b) Nominal accounts and Cash accounts
(c) Personal accounts and Cash accounts
(d) Real and Nominal accounts
Answer:
(c) Personal accounts and Cash accounts
Question 6.
Under Single Entry System,
Opening Capital = Opening Assets – …………………… .
(a) Closing Assets
(b) Opening Liabilities
(c) Closing Liabilities
(d) Opening Receivables
Answer:
(b) Opening Liabilities
Question 7.
Under Single Entry System,
Profit = Closing Capital – ………………… .
(a) Opening Capital
(b) Opening Assets
(c) Opening Liabilities
(d) Drawings
Answer:
(a) Opening Capital
Question 8.
In order to find out the correct profit, drawing is ………………… the closing capital.
(a) deducted from
(b) added to
(c) divided by
(d) multiplied by
Answer:
(b) added to
Question 9.
How many methods are there to find out profit or loss under Single Entry System ?
(a) Two
(b) Three
(c) Four
(d) Only one
Answer:
(a) Two
Question 10.
In Single Entry System, which effect is given for internal transaction of business ?
(a) Debit
(b) Credit
(c) No effect
(d) Both effect
Answer:
(c) No effect
Question 11.
What is called excess of opening capital over closing capital ?
(a) Gross profit
(b) Gross loss
(c) Surplus
(d) No profit no loss
Answer:
(b) Gross loss
Question 12.
What is called excess of Closing capital over opening capital ?
(a) Net profit
(b) Net loss
(c) Gross loss
(d) Gross profit
Answer:
(d) Gross profit
Question 13.
Under Single Entry System, what is prepared to find out net profit or net loss?
(a) Statement of Affairs
(b) Trading account
(c) Profit and Loss account
(d) Statement of Profit or Loss
Answer:
(d) Statement of Profit or Loss
Question 14.
Under Single Entry System, what is prepared to find out capital ?
(a) Statement of Affairs
(b) Statement of Profit or Loss
(c) Balance sheet
(d) Capital account
Answer:
(a) Statement of Affairs
Question 15.
From the following, which is not prepared under Single Entry System?
(a) Cashbook
(b) Personal accounts
(c) Trial balance
(d) Statement of Affairs
Answer:
(c) Trial balance
Question 16.
Which type of transactions are recorded in Single Entry System ?
(a) All non-cash transactions
(b) Only cash transactions
(c) Non-economic transactions
(d) All business transactions
Answer:
(b) Only cash transactions
Question 17.
Which accounting system is not reliable?
(a) Double Entry System
(b) Deshi Nama System
(c) Single Entry System
(d) Triple Entry System
Answer:
(c) Single Entry System
Question 18.
On which balance of debtors, Bad debts reserve is calculated ?
(a) Opening
(b) Closing
(c) Average
(d) Any
Answer:
(b) Closing
Question 19.
On which balance of the Assets, Depreciation is calculated ?
(a) Opening
(b) Closing
(c) Average
(d) Normal
Answer:
(a) Opening
Question 20.
In order to find out the correct profit, interest on capital is …………….. Gross profit.
(a) deducted from
(b) added to
(c) divided by
(d) multiplied by
Answer:
(a) deducted from