Accounting From Incomplete Records(11th Grade > Accountancy ) Questions and answers for exam Preparation

11th Grade > Accountancy

ACCOUNTING FROM INCOMPLETE RECORDS MCQs

Total Questions : 30 | Page 2 of 3 pages

Question 11. Which of the following is correct about incomplete records?

Incomplete records system is complete and scientific system
The balance sheet does not reflect the complete and true position
Frauds cannot be easily committed under incomplete records system
None of the above

Discuss Question

Answer: Option B. -> The balance sheet does not reflect the complete and true position
:
B
The balance sheet does not reflect the complete and true position.

Question 12. Identify the correct formula used to ascertain the closing balance of capital:

Closing Capial = Opening capital + Net income – Drawing – Assets
Closing capital = Opening Capital + Net loss - Drawings
Closing Capital = Opening capital + Assets + Incomes – Expenses
Closing capital = Opening capital + Net income – Drawings

Discuss Question

Answer: Option D. -> Closing capital = Opening capital + Net income – Drawings
:
D
Closing capital = Opening capital + Net income – Drawings

Question 13. If creditors balance was Rs 1,000 on 1 Jan 2018 and Rs 2,000 on 31 Dec 2018 and a payment of Rs 500 was made to creditors, What is the amount of purchases made during the year 2018?

Rs 2,500
Rs 500
Rs 1,500
Rs 2,000

Discuss Question

Answer: Option C. -> Rs 1,500
:
C
Credit purchases= Closing creditors + Payments - Opening creditors = Rs 1,500.

Question 14. Opening debtors = Rs 2,00,000 , Closing debtors = Rs 4,40,000 , Receipts from debtors = Rs 1,20,000. What is the amount of credit sales during the year?

Rs 4,60,000
Rs 3,60,000
Rs 2,40,000
None of the above

Discuss Question

Answer: Option B. -> Rs 3,60,000
:
B
Credit sales = Closing debtors + Receipts - Opening debtors = Rs 3,60,000

Question 15. Which of the following is a limitation of incomplete records system?

A trial balance cannot be prepared
The accuracy of accounts cannot be ensured.
Correct ascertainment and evaluation of the financial result of business operations cannot be made
All of the above

Discuss Question

Answer: Option D. -> All of the above
:
D
All of the above are the limitations.

Question 16. Opening balance of cash account Rs 2,00,000 , Expenditure Incurred Rs 50,000 , Cash sales amounting to Rs 1,00,000. What is the closing cash balance.

Rs 2,50,000
Rs 3,00,000
Rs 2,00,000
Rs 3,50,000

Discuss Question

Answer: Option A. -> Rs 2,50,000
:
A
Closing balance = Opening balance + Receipts - Payments
= 2,00,000+1,00,000-50,000
= Rs 2,50,000

Question 17. What are the accounts payable?

Amounts owed to suppliers
Amounts owed to customers
Cash purchases
None of these

Discuss Question

Answer: Option A. -> Amounts owed to suppliers
:
A
Amounts owed to suppliers

Question 18. What is the correct formula for finding the closing cash balance?

Opening balance + Receipts
Opening balance + Receipts + Payments
Opening balance - Receipts - Payments
Opening balance + Receipts - Payments

Discuss Question

Answer: Option D. -> Opening balance + Receipts - Payments
:
D
Closing balance = Opening balance + Receipts - Payments.

Question 19. Bad Debts is shown on _____ side of _____ account

Debit, Profit or loss
Credit, Profit or loss
Debit, Trading
Credit, Trading

Discuss Question

Answer: Option A. -> Debit, Profit or loss
:
A
Bad Debts is shown on the debit side of profit or loss account.

Question 20. If opening capital is Rs 16,500, closing capital is Rs 11,350 and drawings were Rs 3,300, what is the amount of profit or loss made during the year?

Profit of the year is Rs 8,450
The loss for the year is Rs 8,450
Profit for the year is Rs 1,850
The loss for the year is Rs 1,850

Discuss Question

Answer: Option D. -> The loss for the year is Rs 1,850
:
D
Loss = Opening Capital - Drawings - Closing Capital
Loss = 16,500-3,300-11,350 = Rs 1,850