Unit No 3: Accounting From Incomplete Records (Single Entry System)

 Financial Accounting – I Course Code 112 (Semester – I)

 Unit No 3:

Accounting From Incomplete Records (Single Entry System)

MCQ (Multiple Choice Question)

1. A system of accounting which is not based on double entry system is called-

·      Cash system

·      Mahajani system of accounting

·      Incomplete accounting system

·      None of these.

 

2. Accounts which are maintained under single entry system-

·      Personal accounts

·      Impersonal accounts

·      Both (Personal accounts) & (Impersonal accounts)

·      None of these.

 

3. Statement of affairs is prepared to-

·      Know about assets

·      Know about liabilities

·      Calculate capital

·      Know financial position.

 

4. Liabilities and assets amount to Rs. 50,000 and Rs. 78,000 respectively. The difference amount will represent-

·      Creditors

·      Debentures

·      Profit

·      Capital.

 

5. Generally incomplete records are maintained by-

·      Trader

·      Society

·      Company

·      Government.

 

6. Single Entry System is an_________

·      Incomplete end Scientific

·      Incomplete and unscientific

·      Complete and scientific.

·      Complete and unscientific

 

7. In Single Entry System, it is possible to prepare:

·      A Trial Balance

·      A Trading and Profit and Loss Account

·      A Receipts and Payments Account.

·      All of the above

 

8. Single Entry System is most suitable where:

·      Cash transactions are not numerous

·      Credit transactions are numerous

·      Where both cash and credit transactions are numerous.

·      All of the above

 

9. In Single Entry System, profit is ascertained as follows:

·      Opening Capital + Drawings + New Capital introduced - Closing Capital.

·      Closing Capital + Drawings + New Capital introduced - Opening Capital.

·      Closing Capital + Drawings - New Capital introduced - Opening Capital.

·      Closing Capital - Drawings - New Capital introduced + Opening Capital

 

10. Capital at the beginning of the year is ascertained by preparing:

·      Cash Account

·      Opening Statement of Affairs

·      Total Creditors Account.

·      Total Debtors Account

 

11. in Single Entry only:

·      Debtors and Creditors accounts are maintained

·      Assets accounts, Expenses and Revenue are maintained

·      All accounts are maintained.

·      Cash Accounts

 

12. Single entry system cannot be maintained by:

·      Sole proprietorship business

·      Partnership business

·      Companies

·      All of the above

 

 13. In Single entry mostly____________

·      Personal aspects of transaction are recorded

·      Nominal aspects of transaction are recorded

·      Real aspects of transaction are recorded

·      All of the above

 

14. Statements of assets & liabilities prepared under single entry system is called___________

·      Balance Sheet

·      Profit & Loss Statement

·      Statement of affairs

·      Income Statement

 

15. Normally single entry system is suitable for__________

·      Small scale business

·      Large scale business

·      Both of them

·      None of them

 

16. More accurate profit and loss account can be prepared in ________

·      Modern Accounting System

·      Single Entry System

·      Double Entry System

·      Nome of them

 

17. Opening capital is obtained by preparing ________

·      Debtors Account

·      Creditors Account

·      Opening Statement of Affairs

·      Cash Account

 

18. If Opening Capital is ₹.10,000 & Closing Capital is ₹. 15,000 then profit or loss________

·      Loss of ₹. 5,000

·      Profit of ₹. 2,500

·      Profit of ₹. 5,000

·      None of these

 

19. If Building (closing) ₹. 1,00,000, Land (opening) ₹. 1,00,000, Creditors (opening) ₹. 10,000 then opening capital

·      ₹. 1,90,000

·      ₹. 2,10,000

·      ₹. 90,000

·      None of these

 

20. Credit sale is determined by preparing______

·      Sales Account

·      Creditors Account

·      Debtors Account

·      None of These

 

21. Credit purchases is determined by preparing_______

·      Purchases Account

·      Debtors Account

·      Creditors Account

·      Cash Account

 

22. Closing Balance of cash is obtained by preparing __________

·      Balance Sheet

·      Debtors Account

·      Creditors Account

·      Cash Account

 

23. Trial balance is not obtained in _______

·      Double Entry System

·      Modern Entry System

·      Single Entry System

·      None of these

 

24. in double entry system__________

·      Only one aspect of a transaction is recorded

·      Both aspect of a transaction is recorded

·      No aspect of a transaction is recorded

·      None of these

 

 25. The opening and closing balances of bills receivable can be calculated by preparing the:

·      Total debtors account                    

·      Total creditors account

·      Bills Receivable Account

·      Bills payable account

 

26. If sales ₹. 240,000, Purchases ₹.175,000 , Closing Stock ₹. 30,000, Percentage of gross profit on sale is 20%, then opening stock will be______

·      ₹. 45,000                                          

·      ₹. 50,000

·      ₹.47,000                                                

·      ₹. 55,000

 

27. If sales ₹. 300,000, Purchases ₹.200,000 , Opening Stock ₹. 90,000, Percentage of gross profit on sale is 20%, then Closing stock will be:

·      ₹. 55,000                                  

·      ₹. 50,000

·      ₹. 45,000                                          

·      ₹. 60,000

 28. If the credit sales ₹.80,000, cash received from debtors is ₹.15,000 and bad debts ₹.2,500 then the amount of the closing debtor will be:

·      ₹. 62,500

·      ₹. 62,000

·      ₹. 65,000                                           

·      ₹. 60,000

 

29. Bad-debts written off always affect the_______

·      Debtors A/c

·      Creditor A/c                              

·      Cash A/c

·      None of these

 

30. Net worth of an organization means the excess of its total assets over total:

·      Expenses                               

·      Incomes

·      Liabilities

·      Both (a) and (b)

 

 

State with reasons whether the following statements are true or false (True or False)

 

1. Single entry system is an incomplete and unscientific system of recording transactions.

True

 

2. In pure single entry system, only personal account of debtors and creditor’s accounts are recorded.

True

 

3. Cash book or cash account is opened only in case of simple single entry system.

True

 

4. In simple single entry, only personal accounts of debtor and creditors along with cash book is prepared.

True

 

5. Quasi single entry system is also known as partly single entry system.

True

 

 6. In quasi single entry system, personal account + cash book + other subsidiary books are maintained.

True

 

7. Posting from cash book is made only to the personal account in case of single entry.

True

 

8. Single entry system of book-keeping cannot be applied in case of maintaining account of Joint Stock Company.

True

 

9. Preparation of final accounts is difficult in case of single entry system

True

 

10. Capital on any date can be ascertained by preparing a Statement of Affairs on that date.

True

11. Statement of affairs is not accepted as an evidence in the court of laws.

True

 

12. Trading and profit and loss account is prepared in case of conversion method to find profit during the year

True

 

13. Single entry system is an incomplete double entry system.

True

 

14. Interest on capital is calculated on the opening capital for full year and on additional capital from the date of investment in current year up to the end of the accounting year.

True

 

15. Under Single Entry System arithmetical accuracy of the accounting records can also be checked.

(False) (Cannot be checked)

 

16. Single Entry System is nothing but maintaining of incomplete records.

True

 

17. A system in which accounting records are not made strictly according to double entry principles of book-keeping is termed as Single Entry System.

True

 

18. Single entry is more suitable for all small businesses where the owner can directly control the affairs of the business.

True

 

19. Single entry records are recognized by Sales Tax Authorities.

(False) (Are not recognized)

 

20. Under conversion method of single entry into double entry system, Total Debtors Account, is prepared usually to find out credit purchase.

(False) (Credit Sales)