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12th Accountancy - Accounts From Incomplete Records Model Question Paper

Published on: 27/09/2019

Accounts From Incomplete Records

Download Tamil Nadu 12th Standard Accountancy question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

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Std: 12th Standard - Accountancy

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Questions:

Generic 3

4 x 3 = 12

From the following details, calculate the capital as on 31^st December 2018

Particulars	Rs.
Capital as on 1st January, 2018	1,00,000
Goods withdrawn for personal use by the owner	30,000
Additional capital introduced during the year	15,000
Profit for the year	60,000

What are the features of incomplete records?

Following are the balances of Shanthi as on 31^st December 2018.

Particulars	Rs	Particulars	Rs
Bills receivable	6,000	Sundry creditors	25,000
Bills payable	4,000	Stock	45,000
Machinery	60,000	Debtors	70,000
Furniture	10,000	Cash	4,000

Prepare a statement of affairs as on 31^st December 2018 and calculate capital as at that date.

From the following details, calculate the missing figure:

	Rs
Capital as on 1^st April, 2017	2,50,000
Capital as on 31^st March, 2018	2,75,000
Additional capital introduced during the year	30,000
Profit for the year	15,000
Drawings during the year	?

Generic 2

6 x 2 = 12

From the following details, calculate credit purchases

Particulars	Rs.
Opening creditors	1,70,000
Purchase returns	20,000
Cash paid to creditors	4,50,000
Closing creditors	1,90,000

Find out credit sales from the following information:

Particulars	Rs.
Debtors on 1^st April, 2018	1,00,000
Cash received from debtors	2,30,000
Discount allowed	5,000
Returns inward	25,000
Debtors on 31^st March 2019	1,20,000

From the following particulars ascertain profit or loss

Particulars	Rs.
Capital as on 1^st January 2018	2,20,000
Capital as on 31^stDecember 2018	1,80,000
Additional capital introduced during the year	40,000
Drawings made during the year	50,000

What is a statement of affairs?

What is meant by incomplete records?

10.

From the following particulars, prepare bills receivable account and compute the bills received from the debtors

Particulars	Rs
Opening bills receivable	20,000
Closing bills receivable	30,000
Cash received for bills receivable	60,000
Bills receivable dishonoured	5,000

Generic 5

5 x 5 = 25

11.

M/s Saniya sport equipment does not keep proper records. From the following information, find out profit or loss and also prepare balance sheet for the year ended 31^st December 2017.

Particulars	31.12.2016 Rs.	31.12.2017 Rs.
Cash in hand	6,000	24,000
Bank overdraft	30,000	-
Stock	50,000	80,000
Sundry creditors	26,000	40,000
Sundry debtors	60,000	1,40,000
Bills payable	6,000	12,000
Furniture	40,000	60,000
Bills receivable	8,000	28,000
Machinery	50,000	1,00,000
Investment	30,000	80,000

Drawings Rs. 10,000 per month for personal use, additional capital introduced during the year Rs. 2,00,000. A bad debts Rs. 2,000 and a provision of 5% it to be made on debtors. Outstanding salary 2,400, prepaid insurance Rs. 700, depreciation charged on furniture @ 10% per annum.

12.

Differentiate between statement of affairs and balance sheet.

13.

State the differences between double entry system and incomplete records.

14.

Pandian does not keep his books under double entry system. From the following information prepare trading and profit and loss account

	1-1-2018 Rs.	31-12-2018 Rs.
Furniture	30,000	30,000
Cash in hand	10,000	17,000
Debtors	40,000	60,000
Stock	28,000	11,000
Bills receivable	12,000	35,100
Bank loan	25,000	25,000
Creditors	15,000	16,000

	Rs.		Rs.
Cash sales	11,200	Credit sales	88,800
Cash purchases	4,250	Credit purchases	35,750
Carriage on purchases	3,000	Carriage on sales	700
Commission received	600	Interest on bank loan	2,500
Drawings	8,000	Additional capital	14,000
Salaries	8,900	Office rent	2,400

Adjustments:
Write off depreciation of 5% on furniture. Create a provision of 1% on debtors for doubtful debts.

15.

From the following details of Abdul who maintains incomplete records, prepare Trading and Profit and Loss account for the year ended 31^st March, 2018 and a Balance Sheet as on the date.

Particulars	1.4.2017 Rs.	31.3.2018 Rs.
Stock	1,00,000	50,000
Sundry debtors	2,50,000	3,50,000
Cash	25,000	40,000
Furniture	10,000	10,000
Sundry creditors	1,50,000	1,75,000

Other details:
	Rs.		Rs.
Drawings	40,000	Cash received from debtors	5,35,000
Discount received	20,000	Sundry expenses	30,000
Discount allowed	25,000	Capital as on 1.4.2017	2,35,000
Cash paid to creditors	4,50,000

Multiple Choice Question

6 x 1 = 6

16.

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

17.

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

18.

A firm has assets worth Rs. 60,000 and capital Rs. 45,000.Then it's liabilities is _________

(a)

Rs. 45,000

(b)

Rs. 1,05,000

(c)

Rs. 60,000

(d)

Rs. 15,000

19.

Opening balance of debtors: Rs. 30,000, cash received: Rs. 1,00,000, credit sales: Rs. 90,000; closing balance of debtors is

(a)

Rs. 30,000

(b)

Rs. 1,30,000

(c)

Rs. 40,000

(d)

Rs. 20,000

20.

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

21.

Incomplete records are generally maintained by

(a)

A company

(b)

Government

(c)

Small sized sole trader business

(d)

Multinational enterprises

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Answers Key:

Generic 3

4 x 3 = 12

Statement of profit or loss for the year ending
31^st March 2018
Particulars	Rs.
Closing capital	1,45,000
Add : Drawings	30,000
	1,75,000
Less: Additional capital during the year	15,000
Adjusted closing capital	1,60,000
Less: Opening capital as on 1^st January 2018	1,00,000
Profit for the year	60,000

1) Nature:
It is an inscientific and insystematic way of recording transaction. Accounting principle and accounting standards are not followed properly.
2) Types of account maintained:
In general only cash and personal account maintained fully. Real account and nominal account are not maintained properly some transaction are correctly omitted.
3) Lack of uniformity:
There is no uniformity in recording the transaction among different Organisation. Different Organisation record their transaction according to their needs and conveniences.
4) Financial Statement may not represents true and fair view:
Due to the incomplete information and inaccurate record of account profit or loss calculated from these records cannot be realised upon. It may not represent true predictability. Assets and liabilities may not represent a true and fair view of financial position.
5) Suitability:
Only the business concerns which have no legal obligation to maintain books of account under double entry System may maintain incomplete record. Hence it may be maintained by small fixed sole traders and partnership items.
6) Mixing up of personal and business transactions:
Generally personal transactions of the owners, are mixed up with the business transaction. For example purchases of goods for own use may be mixed up along with business purchases.

In the books of Shanthi Statement of affairs as on
31^st December, 2018
Liabilities	Rs	Assets	Rs
Sundry creditors	25,000	Cash	4,000
Bills payable	4,000	Stock	45,000
Capital (balancing figure)	1,66,000	Debtors	70,000
		Bills receivable	6,000
		Machinery	60,000
		Furniture	10,000
	1,95,000		1,95,000

Statement of profit or loss for the year ended 31^st March, 2018
Particulars	Rs
Closing capital (as on 31.3.2018)	2,75,000 20,000
Add: Drawings during the year (balancing figure)	2,75,000 20,000
	2,95,000 30,000
Less: Additional capital introduced during the year	2,95,000 30,000
Adjusted closing capital	2,65,000 2,50,000
Less: Opening capital (as on 1.4.2017)	2,65,000 2,50,000
Profit made during the year	15,000

Generic 2

6 x 2 = 12

Dr Total Creditors account Cr
Particulars	Rs.	Particulars	Rs
To Cash (paid)	4,50,000	By Balance b/d	1,70,000
To Purchase returns	20,000	By Credit purchases	4,90,000
To Balance c/d	1,90,000	(balance figure)
	6,60,000		6,60,000

**Dr Total Debtors account Cr**
Particulars	Rs.	Particulars	Rs
To Balance b/d	1,00,000	By Cash received	2,30,000
To Credit sales	2,80,000	By Discount allowd	5,000
(Balancing figure)		By Sales returns	25,000
		By Balance c/d	1,20,000
	3,80,000		3,80,000

Statement of profit or loss for the year ending
31^st March 2018
Particulars	Rs.
Closing capital as on 31st December 2018	1,80,000
Add : Drawings during the year	50,000
	2,30,000
Less: Additional capital introduced during the year	40,000
Adjusted closing capital	1,90,000
Less: Opening capital as on 1st January, 2018	2,20,000
Loss for the year	30,000

A Statement of affairs is a Statement showing the assets and liabilities on a particular date. The balance of assets show on the right side and the balance of liabilities on the left side. This Statement resembles a balance Sheet the difference between the total of assets and total of liabilities is taken as Capital.
Capitals = Assets - Liabilities

(i) When accounting records are not strictly maintained according to double entry system, these records are called as incomplete accounting records.
(ii) Generally, cash account and the personal accounts of customers and creditors are maintained fully and other accounts are maintained based on necessity.

10.

Dr. Bills receivable account Cr.
Particulars	Rs	Particulars	Rs
To Balance b/d	20,000	By Cash A/c	60,000
To Debtors A/c	75,000	By Debtors A/c	5,000
(Bills received during the year – balancing figure)		(Bills receivable dishonoured)
		By Balance c/d	30,000
	95,000		95,000

Generic 5

5 x 5 = 25

11.

Statement of affairs as on 31^st December 2016
Liabilities	Rs.	Assets	Rs.
Bank overdraft	30,000	Cash in hand	6,000
Sundry creditors	26,000	Stock	50,000
Bills payable	6,000	Sundry Debtors	60,000
Capital (Balancing figure)	1,82,000	Furniture	40,000
		Bills receivable	8,000
		Machinery	50,000
		Investment	30,000
	2,44,000		2,44,000

Statement of affairs as on 31^st December 2017
Liabilities	Rs.	Assets	Rs.	Rs.
Sundry creditors	40,000	Cash in hand		24,000
Bills payable	12,000	Stock		80,000
Outstanding salary	2,400	Debtors	1,40,000
Capital (Balancing figure)	4,33,400	Less: Bad debts	2,000
			1,38,000
		Less: Provision @5%	6,900	1,31,100
		Furniture	60,000
		Less: Depreciation @10%	6,000	54,000
		Bills receivable		28,000
		Prepaid insurance		700
		Machinery	1,00,000
		Less: Depreciation @10%	10,000	90,000
		Investment		80,000
	4,87,800			4,87,800

Statement showing profit or loss for the year ending 31st December 2017
Particulars	Rs.
Capital at the end of the year	4,33,400
Add: Drawings during the year (10,000 x 12)	1,20,000
	5,53,400
Less: Additional capital introduced in the year	2,00,000
Adjusted closing capital	3,53,400
Less: Capital in the beginning of the year	1,82,000
Profit for the year 2017	1,71,400

12.

S.No	Basis of distinction	Statement of affairs	Balance Sheet
1.	Objective	Statement of affairs is prepared to find out the capital of the business.	Balance sheet is prepared to ascertain the financial position of the business.
2.	Accounting system	Statement of affairs is prepared when double entry system is not strictly followed	Balance sheet is prepared when accounts are maintained under double entry system.
3.	Basis of preparation	It is not fully based on ledger balances.	It is prepared exclusively on the basis of ledger balances
4.	Reliability	It is not reliable as it is based on incomplete records	It is reliable as it prepared under double entry system.
5.	Missing items	It is difficult to trace the items omitted as complete records are not maintained.	Since both the aspects of all transactions are duly recorded, items omitted can be traced easily.

13.

S.No	Basis of distinction	Double entry system	Incomplete records
1.	Recording of transaction	Both debit and credit aspect of all the transaction are recorded.	Debit and credit aspect of all the transaction are not recorded completely for some transaction. both aspect are entered some transaction are particularly recorded and some transaction are omitted to be.
2.	Type of account maintained	Personal, real and nominal accounts are maintained fully	In General, only personal and cash account are maintained fully real and nominal account are not maintained fully.
3.	Preparation of trial balance	Trial balance can be prepared to check the arithmetical accuracy of the entries made in the books of accounts.	It is difficult to prepared the trial balance to check arithmetical accuracy of entries made in the books of account as the account are incomplete.
4.	Suitability	trading and profit or loss account can be prepared to find out the true profit or loss.	Trading and profit and loss account cannot be prepared with accuracy as complete. information is not available and hence profit or loss found out may not be accurate.
5.	Reliability	Balance sheet can be prepared to know the true financial position.	Balance sheet cannot be prepared with accuracy and true financial position cannot be ascertained. as the asset and liabilities are just estimate and incomplete.

14.

**In the books of Pandian Statement of affairs as on 1^st January, 2018**
Liabilities	Rs.	Assets	Rs.
Creditors	15,000	Cash in hand	10,000
Bank loan	25,000	Stock	28,000
Opening capital	80,000	Debtors	40,000
(balancing figure)		Bills receivable	12,000
		Furniture	30,000
	1,20,000		1,20,000

**Dr. Trading and Profit and Loss Account for the year ended 31^st December, 2018 Cr.**
Particulars		Rs.	Particulars		Rs.
To Opening stock		28,000	By Sales
To Purchases			Cash	11,200
Cash	4,250		Credit	88,800	1,00,000
Credit	35,750	40,000	By Closing stock		11,000
To Gross profit c/d		40,000
		1,11,000			1,11,000
To Salaries		8,900	By Gross Profit b/d		40,000
To Carriage on sales		700	By Commission received		600
To Office rent		2,400
To Interest on bank loan		2,500
To Depreciation on furniture		1,500
To Provision for doubtful debts		600
To Net profit transferred to capital a/c		24,000
		40,600			40,600

**Balance Sheet as on 31^st December, 2018**
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital	80,000		Cash in hand		17,000
Add: Net profit	24,000		Stock		11,000
	1,04,000		Debtors	60,000
Add: Additional capital	14,000		Less: Provision for doubtful debts	600	59,400
	1,18,000		Bills receivable		35,100
Less: Drawings	8,000	1,10,000	Furniture	30,000
Bank loan		25,000	Less: Depreciation	1,500	28,500
Creditors		16,000
		1,51,000			1,51,000

15.

Dr. Total debtors account Cr.
Particulars	Rs	Particulars	Rs.
To Balance b/d	2,50,000	By Cash A/c (received)	5,35,000
To Sales A/c (credit) (balancing figure)	6,60,000	By Discount allowed A/c	25,000
		By Balance c/d	3,50,000
	9,10,000		9,10,000

Dr. Total creditors account Cr.
Particulars	Rs	Particulars	Rs
To Cash A/c (paid)	4,50,000	By Balance b/d	1,50,000
To Discount received A/c	20,000	By Purchases A/c (credit)	4,95,000
To Balance c/d	1,75,000	(balancing figure)
	6,45,000		6,45,000

In the books of Abdul

Dr. Trading and Profit and loss account for the year ended 31st March, 2018 Cr.
Particulars	Rs	Particulars	Rs.
To Opening stock	1,00,000	By Sales	6,60,000
To Purchases	4,95,000	By Closing stock	50,000
To Gross profit c/d	1,15,000
	7,10,000		7,10,000
To Discount allowed	25,000	By Gross profit b/d	1,15,000
To Sundry expenses	30,000	By Discount received	20,000
To Net profit (transferred to capital account)	80,000
	1,35,000		1,35,000

Balance Sheet as on 31st March, 2018
Liabilities	Rs.	Rs.	Assets	Rs.
Sundry creditors		1,75,000	Cash	40,000
Capital	2,35,000		Furniture	10,000
Add: Net profit	80,000		Stock	50,000
	3,15,000		Debtors	3,50,000
Less: Drawings	40,000	2,75,000
		4,50,000		4,50,000