Tag: meaning of incomplete records, reasons for incompleteness and its limitations

Questions Related to meaning of incomplete records, reasons for incompleteness and its limitations

Loss of stock is said to be normal loss when such loss is not due to inherent characteristics of the commodities.

elements of book keeping and accountancy accounting from incomplete records ascertaining profit or loss from incomplete records meaning and preparation of statement of profit meaning of incomplete records, reasons for incompleteness and its limitations preparation of final accounts from incomplete records preparation of statement of affairs introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. True

  2. False

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Correct Option: B

Capital on 1 January Rs.65,000, Interest on drawing Rs.5,000, Interest on Capital Rs.2,000, Drawings Rs.14,000, Profit for the year Rs.15,000. His capital as on 31 December will be _____________.

elements of book keeping and accountancy accounting from incomplete records ascertaining profit or loss from incomplete records meaning and preparation of statement of profit meaning of incomplete records, reasons for incompleteness and its limitations preparation of final accounts from incomplete records preparation of statement of affairs introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. Rs. 67,000

  2. Rs.63,000

  3. Rs.77,000

  4. Rs.89,000

Show answer
Correct Option: B
Explanation:
 PARTICULARS  AMT RS.
 Capital at the beginning of the year  65,000
 less: drawings  14,000
 less: int. on drawings   5,000
 add: int.on capital   2,000
 add: profit for the year  15,000
   
 Capital at the end of the year  63,000

Profit = Capital at the end+______- Capital introduced - Capital in the beginning.

elements of book keeping and accountancy accounting from incomplete records ascertaining profit or loss from incomplete records meaning and preparation of statement of profit meaning of incomplete records, reasons for incompleteness and its limitations preparation of final accounts from incomplete records preparation of statement of affairs introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

  1. Sales

  2. Drawings

  3. Loan

  4. Net Purchases

Show answer
Correct Option: B
Explanation:

Profit is calculated by the taking into account the fluctuations of the capital at the beginning and at the end of the year, by adding the drawings, and deducting the capital introduced to the capital at the end of the year.