12th Accountancy - Accounts From Incomplete Records Practice Question Paper | QB365

12th Standard Syllabus & Materials

12th Standard

TN 12th Standard Biology Zoology - Reproduction in Organisms Creative Questions Study Material - QB365 Set D

NEW

12th Standard

TN 12th Standard Biology Zoology - Reproduction in Organisms Creative Questions Study Material - QB365 Set C

NEW

12th Standard

TN 12th Standard Biology Zoology - Reproduction in Organisms Creative Questions Study Material - QB365 Set B

NEW

12th Standard

TN 12th Standard Biology Zoology - Reproduction in Organisms Creative Questions Study Material - QB365 Set A

NEW

12th Standard

TN 12th Standard Physics Electronics and Communication Creative Questions Study Material - QB365 Set D

NEW

12th Standard

TN 12th Standard Physics Electronics and Communication Creative Questions Study Material - QB365 Set C

12th Accountancy - Accounts From Incomplete Records Practice Question Paper

Published on: 04/01/2020

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.

Questions + Answers key

Take MCQ Accountancy Test

QB365 Student Learing Managemnet System

Std: 12th Standard - Accountancy

chapter: - Model Question paper

Visit QB365-SLMS - https://www.qb365.in/slms/ Complete Questions and Answers

Questions:

Generic 2

2 x 2 = 4

What are the possible reasons for keeping incomplete records?

From the following particulars ascertain profit or loss:

	Rs.
Capital at the beginning of the year (1^st April, 2016)	2,00,000
Capital at the end of the year (31^st March, 2017)	3,50,000
Additional capital introduced during the year	70,000
Drawings during the year	40,000

Generic 3

4 x 3 = 12

Radhika started a small bakery for providing healthy and good quality bakery product at reasonable prices on 1^st January, 2019 with a capital of Rs. 1,80,000. She appointed a ten year old boy as a sweeper. She withdrew Rs. 60,000 for household expenses. She introduced Rs. 20,000as fresh capital. Her position of assets and liabilities as at 31^st December, 2019 stood as follows.

	Rs.
Cash in hand	70,000
Stock	80,000
Bills receivable	1,00,000
Debtors	1,50,000
Creditors	60,000
Bills payable	10,000

From the following particulars, calculate total sales

Particulars	Rs.	Particulars	Rs.
Debtors on 1st April 2018	2,50,000	Bills receivable dishonoured	15,000
Bills receivable on 1st April 2018	60,000	Returns inward	50,000
Cash received from debtors	7,25,000	Bills receivable on 31st March, 2019	90,000
Cash received for bills receivable	1,60,000	Sundry debtors on 31st March, 2019	2,40,000
Bad debts	30,000	Cash sales	3,15,000

What are the limitations of incomplete records?

From the following details, calculate the missing figure

	Rs.
Closing capital as on 31.3.2019	1,90,000
Additional capital introduced during the year	50,000
Drawings during the year	30,000
Opening capital on 1.4.2018	?
Loss for the year ending 31.3.2019	40,000

Multiple Choice Question

4 x 1 = 4

Capital at the end - net profit + drawings =

(a)

Capital in Beginning

(b)

Gross profit

(c)

Interest on capital

(d)

Interest on drawings

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

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

10.

Statement of affairs is a

(a)

Statement of income and expenditure

(b)

Statement of assets and liabilities

(c)

Summary of cash transactions

(d)

Summary of credit transactions

Generic 5

3 x 5 = 15

11.

From the following details of vijay 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	As on 1.4.2017 Rs.	As on 31.3.2018 Rs.
Sundry Creditors	37,500	43,750
Furniture	2,500	2,500
Cash	6,250	10,000
Sundry debtors	62,500	87,500
Stock	25,000	12,500

Other details:

	Rs.
Drawings	10,000
Discount received	3,750
Discount allowed	2,500
Cash received from sundry debtors	1,35,000
Cash paid to creditors	1,12,500
Sales returns	3,750
Purchase returns	1,250
Sundry expenses paid	8,750

12.

Mrs. Geetha started business with Rs. 1,20,000 as capital on 1.4.2018. During the year she has withdrawn at the rate of Rs. 1,000 per month. She introduced Rs. 20,000 as additional capital. Her position on 31.3.2019 was as follows.

Particulars	Rs.
Bank balance	8,000
Stock	80,000
Sundry debtors	50,000
Furniture	2,500
Cash in hand	2,000
Sundry creditors	25,000
Expenses outstanding	1,000

She keeps her books under single entry system, determine for profit or loss for the year 2003-04.

13.

Selvam does not keep his books under double entry system. From the following information prepare trading and Profit and loss A/c and Balance Sheet as on 31-12-2018

Particulars	1-1-2018 Rs.	31-12-2018 Rs.
Machinery	60,000	60,000
Cash at bank	25,000	33,000
Sundry debtors	70,000	1,00,000
Stock	45,000	22,000
Bills receivable	20,000	38,000
Bank loan	45,000	45,000
Sundry creditors	25,000	21,000

Particulars	Rs.	Particulars	Rs.
Cash sales	20,000	Credit sales	1,80,000
Cash purchases	8,000	Credit purchases	52,000
Wages	6,000	Salaries	23,500
Advertisement	7,000	Interest on bank loan	4,500
Drawings	60,000	Additional capital	21,000

Adjustments:
Write off depreciation of 10% on machinery. Create a reserve of 1% on debtors for doubtful debts.

Odd one out

1 x 2 = 2

14.

(a) Conversion method
(b) Statement of affairs method
(c) Straight line method
(d) Net worth method

Assertion and reason

1 x 2 = 2

15.

Assertion (A): Double Entry System It maintains only personal and cash accounts.
Reason (R): Personal accounts are not maintained.
(a) Both (A) and (R) are true and (R) is the correct explanation (A).
(b) Both (A) and (R) are true and (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

One or Two Words / Correct Statement

1 x 1 = 1

16.

(i) Companies cannot keep books on double entry system because of legal provisions.
(ii) It is always incomplete Single entry varying with circumstances.
(iii) Single entry actually refers to incomplete double entry system or the defective double entry system.
(a) (i) is correct
(b) (ii) is correct
(c) (iii) is correct
(d) (i) and (ii) are correct

Visit QB365-SLMS - https://www.qb365.in/slms/

Answers Key:

Generic 2

2 x 2 = 4

(i) Simple method: Proprietors, who do not have the proper knowledge of accounting principles. Find it much convenient and easier to maintain their business records under this system.
(ii) Less expensive: It is an economical mode of maintaining records as there is no need to appoint specialised accountant.
(iii) Flexible: Owner may record transactions as particular own needs. It can be easily adjusted or changed whenever needed.
(iv) Less time consuming: Maintaining books according to the single entry system is less time consuming, as only few books are to be maintained. Further the books are not as comprehensive as they are under double entry system.

**Statement of profit or loss for the year ended 31^st March, 2017**
Particulars	Rs.
Closing capital (as on 31.3.2017)	3,50,000 40,000
Add: Drawings during the year	3,50,000 40,000
	3,90,000
Less: Additional capital introduced during the year	70,000
Adjusted closing capital	3,20,000 2,00,000
Less: Opening capital (as on 1.4.2016)	3,20,000 2,00,000
Profit made during the year	1,20,000

Generic 3

4 x 3 = 12

Statement of affairs as on 31.12.2019
Liabilities	Rs.	Assets	Rs
Creditors	60,000	Cash in hand	70,000
Bills payables	10,000	Stock	80,000
Capital	3,30,000	Bills receivables	1,00,000
(Balancing figure)		Debtors	1,50,000
	4,00,000		4,00,000

Calculation of Profit

Particulars	Rs.
Capital at the end	3,30,000
Add: Drawings	60,000
	3,90,000
Less: Additional capital	20,000
	3,70,000
Less: Opening capital	1,80,000
Profit for the year	1,90,000

Values involved are
(i) Violating child labour act by employing 10 year old boy.
(ii) By providing good quality product she is promoting the welfare and health of society
(iii) By charging reasonable prices she is not indulged in profiteering.

Dr Bills receivable account Cr
Particulars	Rs.	Particulars	Rs
To Balance b/d	60,000	By Cash A/c	1,60,000
To Debtors A/c	2,05,000	By Debtors	15,000
(Bills received during the year - balancing figure)		(Bills receivable dishonored)
		By Balance c/d	90,000
	2,65,000		2,65,000

Dr Total Debtors account Cr
Particulars	Rs.	Particulars	Rs
To Balance b/d	2,50,000	By Cash	7,25,000
To Bills receivable	15,000	By Returns inward	50,000
(dishonored)		By Bills receivable	2,05,000
To Credit sales	9,85,000	(bills received)
		By Bad debts	30,000
		By Balance c/d	2,40,000
	10,10,000		10,10,000

Total sales = Cash sales + Credit sales
=Rs.3,15,000 + Rs.9,85,000
=Rs.13,00,000

Limitations of incomplete records:
1) Lack of proper maintenance of records:
It is an unscientific and unsystematic way of maintaining records. Real and nominal account are not maintained properly.
2) Difficulty in preparing trial balance:
As account are not maintained for all items. The accounting record are incomplete. Hence, it is difficult to prepare trial balance to check the arithmetical accuracy of account.
3) Difficulty in ascertaining true profitability of the business:
Profit is found out based on available information and estimate. Hence, it is difficult to prepare ascertain true profit as the trading and profit and loss account cannot be prepared with accuracy.
4) Difficulty in ascertaining financial position:
In general, only the estimated values of asset and liabilities are available from incomplete records. Hence, it is difficult to ascertain true and fair view of state of affairs or financial position as on a particular date.
5) Errors and frauds Cannot be detected easily:
As only partial records are available. It may not be possible to have internal check in maintaining account to defect errors and Frauds.
6) Unacceptable to government and other authorities:
As accounts maintained are incomplete these may not comply with the legal requirement Hence government tax authorities and other. Legal authorities do not accept account prepared from incomplete rewards.

**Statement of profit or loss for the year ended 31st March, 2019**
Particulars	Rs.
Closing capital (as on 31.3.2019)	1,90,000
Add: Drawings during the year	30,000
	2,20,000 50,000
Less: Additional capital introduced during the year	2,20,000 50,000
Adjusted closing capital	1,70,000 2,10,000
Less: Opening capital (as on 1.4.2018) (balancing figure)	1,70,000 2,10,000
Loss for the year ending 31.3.2019	(-) 40,000

Multiple Choice Question

4 x 1 = 4

(a)
Capital in Beginning

(d)
Rs. 15,000

(d)
Rs. 20,000

10.

(b)
Statement of assets and liabilities

Generic 5

3 x 5 = 15

11.

Calculation of opening capital

Statement of affairs as on 1.4.2017
Liabilities	Rs.	Assets	Rs.
Sundry creditors	37,500	Furniture	2,500
Opening capital (B/F)	58,750	Cash	6,250
		Sundry Debtors	62,500
		Stock	25,000
	96,250		96,250

Dr. Total Debtors account Cr.
Liabilities	Rs.	Particulars	Rs.
To Balance b/d	62,500	By Cash received	1,35,000
To Credit Sales (B/F)	1,66,250	By Discount allowed	2,500
		By Sales returns	3,750
		By Balance c/d	87,500
	2,28,750		2,28,750

Dr. Total Creditors account Cr.
Liabilities	Rs.	Particulars	Rs.
To Cash paid	1,12,500	By Balance b/d	37,500
To Discount received	3,750	By Credit purchases (B/F)	1,23,750
To Purchase returns	1,250
To Balance c/d	43,750
	1,61,250		1,61,250

Trading and Profit and loss account for the year ended 31.3.2018
Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Opening stock		25,000	By Sales	1,66,250
To Purchases	1,23,750		Less: Sales returns	3,750	1,62,500
Less: Purchase returns	1,250	1,22,500
			By Closing stock		12,500
To Gross profit c/d		27,500
		1,75,000			1,75,000
To Discount allowed		2,500	By Gross profits b/d		27,500
To Sundry expenses		8,750	By Discount received		3,750
To Depreciation		125
To Net profit		19,875
(Transferred to capital a/c)		31,250			31,250

Balance sheet as on 31.3.2018
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital	58,750		Furniture	2,500
Add: Net profit	19,875		Less: Depreciation	125	2,375
	78,625		Cash		10,000
Less: Drawings	10,000	68,625	Sundry debtors		87,500
Sundry creditors		43,750	Closing stock		12,500
		1,12,375			1,12,375

12.

Statement of affairs as on 31^st March 2019
Liabilities	Rs.	Assets	Rs.
Sundry creditors	25,000	Bank balance	8,000
Expenses outstanding	1,000	Stock	80,000
Closing capital (B/F)	1,16,500	Sundry debtors	50,000
		Furniture	2,500
		Cash in hand	2,000
	1,42,500		1,42,500

Statement of profit or loss
Particulars	Rs.
Closing capital	1,16,500
Add: Drawings (1000 x 12)	12,000
	1,28,500
Less: Additional capital	20,000
Adjusted closing capital	1,08,500
Less: Opening capital	1,20,000
Loss for the year	11,500

13.

In the books of selvam Statement of affairs as on
1^st January 2018
Liabilities	Rs.	Assets	Rs.
Bank Loan	45,000	Machinery	60,000
Sundry creditors	25,000	Cash at bank	25,000
Opening capital	1,50,000	Sundry debtors	70,000
(Balancing figure)		Stock	45,000
		Bills receivable	20,000
	2,20,000		2,20,000

**Dr Bills receivable account Cr**
Particulars	Rs.	Rs.	Assets	Rs.	Rs.
To Opening stock		45,000	By Sales
To Purchase			Cash	20,000
Cash	8,000		Credit	1,80,000	2,00,000
Credit	52,000	60,000	By Closing stock		22,000
To Wages		6,000
To Gross profit c/d		1,11,000
		2,22,000			2,22,000
To Advertisement		7,000	By Gross profit b/d		1,11,000
To Salaries		23,500
To Depreciation 10%		6,000
To Reserve on debtors 1 %		1,000
To Interest on bank loan		4,500
To Net profit transfered to capital alc		69,000
		1,11,000			1,11,000

**Balance sheet as on 31st December 2018**
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Bank loan		45,000	Machinery	60,000
Sundry creditors		21,000	Less: Depreciation 10%	6,000	54,000
Capital	1,50,000		Cash at bank		33,000
Add: Net profit	69,000		Sundry debtors	1,00,000
	2,19,000		Less: Reserve for doubtful		99,000
Add: Additional			debts	1,000
capital	21,000		Closing stock		22,000
	2,40,000		Bills receivable		38,000
Less: Drawings	60,000	1,80,000
		2,46,000			2,46,000

Odd one out

1 x 2 = 2

14.

Straight line method
Under this method, a fixed percentage on the original cost of the asset is charged every year by way of depreciation. Other three are methods of ascertaining profit or loss.

Assertion and reason

1 x 2 = 2

15.

(A) is true, but (R) is false

One or Two Words / Correct Statement

1 x 1 = 1

16.