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Test (Single Entry System)

This document contains a single entry accounting exam with multiple choice and short answer questions. 1. The multiple choice questions test knowledge of key aspects of single entry bookkeeping, including how to calculate opening capital, profit, accounting treatments, and definitions. 2. The short answer questions require calculating profit/loss for various sole proprietorship businesses using the statement of affairs method, which involves preparing opening and closing statements of affairs to determine the change in capital, from which profit/loss can be inferred. Additional financial information like withdrawals, assets, liabilities, and capital introductions are provided. 3. One question provides extensive financial information for a sole trader and requires preparing a statement of profit and loss for the

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Sarthak
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286 views

Test (Single Entry System)

This document contains a single entry accounting exam with multiple choice and short answer questions. 1. The multiple choice questions test knowledge of key aspects of single entry bookkeeping, including how to calculate opening capital, profit, accounting treatments, and definitions. 2. The short answer questions require calculating profit/loss for various sole proprietorship businesses using the statement of affairs method, which involves preparing opening and closing statements of affairs to determine the change in capital, from which profit/loss can be inferred. Additional financial information like withdrawals, assets, liabilities, and capital introductions are provided. 3. One question provides extensive financial information for a sole trader and requires preparing a statement of profit and loss for the

Uploaded by

Sarthak
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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XI ACCOUNTANCY

T. TIME: 1 HR. TEST – SINGLE ENTRY SYSTEM MAX. MARKS: 25


Q.1. Choose the correct alternative : - (5)
1) Opening Capital is ascertained by preparing :
(a) Total Debtors Account
(b) Total Creditors Account
(c) Cash Account
(d) Opening Statement of Affairs
2) If opening capital is Rs. 60,000 , drawings Rs. 5,000 , capital introduced during the
period Rs. 10,000 , closing capital Rs. 90,000. The value of profit earned during the
period will be :
(a) Rs. 20,000
(b) Rs.25,000
(c) Rs. 30,000
(d) Rs. 40,000
3) Single Entry System is not adopted by :
(a) Sole Trader
(b) Partnership Firm
(c) Joint Stock Company
(d) All of these
4) Single entry system is defective because under this system : :
(a) Trial Balance can not be prepared
(b) Profit and Loss account can not be prepared
(c) Balance Sheet can not be prepared
(d) All of the above
5) Excess of _______________ over _____________ represents loss sustained during the
period.
(a) Opening Capital, Closing Capital
(b) Closing Capital, Opening Capital
(c) Cash Account
(d) Opening Statement of Affairs

Q.2. Vikas is keeping his accounts according to Single Entry System. His capital on
31st December,2013 as Rs. 2,50,000 and his capital on 31st December,2014 was Rs.

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4,25,000. He further informs you that, during the year he gave a loan of Rs. 30,000 to
his brother on private account and also withdrew Rs. 1,000 per month for personal
purpose. He used a flat for his personal purpose, the rent of which at the rate of Rs.
1,800 per month and electricity charges at an average of 10% of rent per month were
paid from the business account. During the year, he sold his 7% Government Bonds of
Rs.50,000 at 1% premium and brought that money into the business. Prepare a
Statement of Profit and Loss for the year ending 31st December,2014. (4)
Q.3. Miss Priyanka runs a small Bakery Business. She was not maintaining her
accounts on the double entry system. On 1st May,2008 she had started the
business with a capital of Rs. 78,000. On 31st March,2009 her incomplete records
could provide the following data:
(i) Amount due to suppliers of raw materials Rs. 17,500.
(ii) Stock of raw material Rs. 2,000 and finished products Rs. 2,500.
(iii) Fixed Assets Rs. 34,000
(iv) Amount due from customers Rs. 42,000.
(v) She had withdrawn Rs. 2,500 per month for meeting her personal expenses.
(vi) She had introduced Rs. 7,000 as capital during the year.
(vii) She has cash at bank Rs. 21,000 and cash in hand Rs. 1,800.
(viii) Outstanding electricity bill Rs. 2,250.
Calculate the Profit and Loss of her business during the year using Statement of Affairs
Method. (5)
Q.4. Panwar commenced business on 1st January,2005, with a capital of Rs. 10,000,
which he paid into bank account opened for that purpose. On the same date, he bought
furniture which cost Rs. 2,000 and made purchases of goods worth Rs. 6,500. He kept
his books on single entry basis.
On 31st December,2005, stock was valued at Rs. 8,300. There were book debts
amounting to Rs. 3,200. Creditors amounted to Rs. 3,600 and bank pass book showed a
balance of Rs. 1,450.
Panwar withdrew three times from business for his private expenses, each time he
withdrew Rs. 600 and in addition, he used Rs. 500 worth of goods from his shop. He
took Rs. 1,000 as loan from his wife during the year. He gave Rs. 200 to his son from
business, which he omitted to enter.
You are required to prepare a Statement showing Profit or Loss in the business for the
year ending 31st December,2005, from the above information. (5)
Q.5. X and Y who keeping their books by Single Entry give you the following
information :
1st January,2014 31st December,2014
(Amt.) (Amt.)
Stock 18,500 40,000
Debtors 13,000 15,000
Creditors 11,000 2,300
Bills Receivable 4,000 3,000
Building 10,800 10,800

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Cash at Bank 4,000 2,000 (Overdraft)

You are given the following informations :


(a) A provision of Rs. 1,000 is required for doubtful debts.
(b) Depreciation @ 5% is to be written off an Building.
(c) Salaries Outstanding Rs. 3,500.
(d) Insurance is prepaid to the extent of Rs. 250.
(e) Drawings of X during the year were Rs. 7,200.
(f) Capital introduced during the year were Rs. 10,000.
Calculate the profit made during the year using Statement of Affairs Method. Also
prepare adjusted Statement of Affairs as at 31st December,2014. (6)

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