1. Incomplete records are generally maintained by
(a) A company
(b) Government
(c) Small sized sole trader business
(d) Multinational enterprises
2. 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
3. Opening statement of affairs is usually prepared to find out the
(a) Capital in the beginning of the year
(b) Capital at the end of the year
(c) Profit made during the year
(d) Loss occurred during the year
4. The excess of assets over liabilities is
(a) Loss
(b) Cash
(c) Capital
(d) Profit
5. Which of the following items relating to bills payable is transferred to total creditors account?
(a) Opening balance of bills payable
(b) Closing balance of bills payable
(c) Bills payable accepted during the year
(d) Cash paid for bills payable
6. 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
7. Which one of the following statements is not true in relation to incomplete records?
(a) It is an unscientific method of recording transactions
(b) Records are maintained only for cash and personal accounts
(c) It is suitable for all types of organisations
(d) Tax authorities do not accept
8. What is the amount of capital of the proprietor, if his assets are Rs. 85,000 and liabilities are Rs. 21,000?
(a) Rs. 85,000
(b) Rs. 1,06,000
(c) Rs. 21,000
(d) Rs. 64,000
9. When capital in the beginning is Rs. 10,000, drawings during the year is Rs. 6,000, profit made during the year is Rs. 2,000
and the additional capital introduced is 3,000, find out the amount of capital at the end
(a) Rs. 9,000
(b) Rs. 11,000
(c) Rs. 21,000
(d) Rs. 3,000
10. 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
11. Receipts and payments account is a
(a) Nominal A/c
(b) Real A/c
(c) Personal A/c
(d) Representative personal account
12. Receipts and payments account records receipts and payments of
(a) Revenue nature only
(b) Capital nature only
(c) Both revenue and capital nature
(d) None of the above
13. Balance of receipts and payments account indicates the
(a) Loss incurred during the period
(b) Excess of income over expenditure of the period
(c) Total cash payments during the period
(d) Cash and bank balance as on the date
14. Income and expenditure account is a
(a) Nominal A/c
(b) Real A/c
(c) Personal A/c
(d) Representative personal account
15. Income and Expenditure Account is prepared to find out
(a) Profit or loss
(b) Cash and bank balance
(c) Surplus or deficit
(d) Financial position
16. Which of the following should not be recorded in the income and expenditure account?
(a) Sale of old news papers
(b) Loss on sale of asset
(c) Honorarium paid to the secretary
d) Sale proceeds of furniture
17. Subscription due but not received for the current year is
(a) An asset
(b) A liability
(c) An expense
(d) An item to be ignored
1 C 11 B
2 B. 12 C
3 A. 13 D
4 C. 14 A
5 C. 15 C
6 A. 16 D
7 C. 17 A
8 D
9 A
10 D
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