Practice Test

Q1) Profit _______ the capital at the end of the year. Show Answer

Q2) Single entry is always _________ double entry. Show Answer

Q3) To financial status, statement of _______ is maintained. Show Answer

Q4) Opening capital = closing capital -______. Show Answer

Q5) Statement of Affairs shows _______ & liabilities. Show Answer

Q6) Interest on partner's loan shall not exceed _______ % in absence of specific provision. Show Answer

Q7) Excess of assets over liabilities is _______. Show Answer

Q8) Under Statement of Affairs method, net profit/net loss is ascertained by _______. Show Answer

Q9) Capital at the beginning of the year is ascertained by preparing Show Answer

Q10) Under Single Entry System, one of the following accounts maintained is Show Answer

Q11) While preparing statement of Profit or loss, drawings made during the year is Show Answer

Q12) Single Entry System of accounting shows Show Answer

Q13) Single Entry System is defective because under this system Show Answer

Q14) The method or system followed to record business transaction in the books of accounts is called _______ book keeping system. Show Answer

Q15) In _______ book-keeping system, for every business transaction we find two account. Show Answer

Q16) _______ is a statement in which balances of various ledger accounts are recorded. Show Answer

Q17) List of all assets and liabilities is called ________. Show Answer

Q18) The difference between the capital at the end of the year and capital at the beginning of year is called ________. Show Answer

Q19) Only the ________ system is a proper system of book-keeping. Show Answer

Q20) The closing capital of a single entry trader on 31st March,2006 was Rs.25,000 where it was Rs.18,000 as on 1st April,2005 the profit of a trader is ________. Show Answer

Q21) Asset = Capital + ________. Show Answer

Q22) ________ is a statement similar to Balance sheet showing assets & liabilities of a single entry trader as on particular date. Show Answer

Q23) A statement of affairs is a summarised statement of ________. Show Answer

Q24) A statement of ________ is to be prepared in an order to find out the profit or loss made by a single entry trader. Show Answer

Q25) In order to find out the correct profit, drawing is _________ to the closing capital. Show Answer

Q26) Further capital introduced during the year is _______ from closing capital in order to find out the correct profit. Show Answer

Q27) Single entry system is more popular for _______. Show Answer

Q28) Under the net worth method, the basis for ascertaining profit or loss is the difference between _______. Show Answer

Q29) Under Single entry system, it is not possible to prepare ________. Show Answer

Q30) The capital at the end of the accounting year is ascertained by preparing _______. Show Answer

Q31) Under Single entry system, additional capital brought in during the year is _______ closing capital, in order to calculate profit. Show Answer

Q32) If opening capital is Rs.50,000 ; closing capital is Rs.70,000 ; withdrawals are Rs.10,000 and fresh capital brought in is Rs.5,000 profit is ________. Show Answer

Q33) Capital = Assets Less ________. Show Answer

Q34) The opening capital is greater than the closing capital, then the difference is ________. Show Answer

Q35) Single entry system is an ________ record. Show Answer

Q36) Single entry system is a scientific method of accounting. Show Answer

Q37) Trial Balance can be prepared under single entry system. Show Answer

Q38) Like Double entry, single entry is not useful for large business community. Show Answer

Q39) There is no difference between the balance sheet and the statements of affairs. Show Answer

Q40) The difference between the amounts of assets and liabilities is taken as capital. Show Answer

Q41) Under single entry, both the aspects of transactions are recorded in the books of accounts. Show Answer

Q42) In single entry and Double entry both, Balance sheet shows financial position of business. Show Answer

Q43) Drawings made during the year are added to closing capital of the proprietor. Show Answer

Q44) In absence of specific provision in partnership deed no partner is allowed any salary or commission. Show Answer

Q45) Statement of Affairs at the end of the year indicates opening capital. Show Answer

Q46) Errors during the accounting can be easily detected in single entry system. Show Answer

Q47) Depreciation on fixed assets are not considered in methods of single entry. Show Answer

Q48) Cash book and Personal accounts are properly prepared in single entry accounting method. Show Answer

Q49) An excess of closing capital over opening capital is considered as profit. Show Answer

Q50) Trading and Profit and Loss Account is maintained under the single Entry system. Show Answer

Q51) Sole proprietor and partners prefer to keep books on single entry. Show Answer

Q52) Double entry system is a system where the rules of debit and credit are adopted. Show Answer

Q53) Single entry method is costly method of accounting. Show Answer

Q54) Single entry system is followed by private limited company. Show Answer

Q55) Interest on loan shall not exceed 9% p.a. Show Answer

Q56) Net profit increases the capital while net loss decreases the capital of proprietor. Show Answer

Q57) According to Kohler, single entry system is a perfect accounting method for all. Show Answer

Q58) There is no difference between the Balance sheet and statement of profit and loss. Show Answer

Q59) The proprietor"s drawings do not affect the profit of loss. Show Answer

Q60) Profit and loss account and balance sheet must be prepared scientifically under single entry system. Show Answer

Q61) Additional capital is also called as a fresh capital. Show Answer

Q62) single entry system is not at all a system of book keeping accurately. Show Answer

Q63) Double entry system are not accurate and perfect to reveal actual position. Show Answer

Q64) Single entry system is more economical than Double entry system. Show Answer

Q65) In case of net worth method, profit is determined by Show Answer

Q66) Single entry system can be followed by Show Answer

Q67) Closing capital is calculated as Show Answer

Q68) Under single entry system, only personal accounts are kept and, in some cases, Show Answer

Q69) The closing capital of Mr. B as on 31.3.2022 was Rs. 4,00,000. On 1.4.2021 his capital was Rs. 3,50,000. His net profit for the year ended 31.3.2022 was
Rs. 1,00,000. He introduced 30,000 as additional capital in February, 2022 Find out the amount drawn by Mr. B for his domestic expenses. Show Answer

Q70) Given information:
Opening capital: 60,000
Drawings: 5,000
Capital introduced during the period: 10,000
Closing capital: 90,000
Profit earned during the period: ? Show Answer