Chapter 11

Chapter 11
Accounts from Incomplete Records previous questions & Answers
2019 March
1. Calculate capital at the beginning

Closing capital Rs. 600000
Profit for the year Rs. 40000
Drawings during the year Rs. 58000 (1)
Ans. Closing capital -600000

Add- drawings - 58000
658000
Less- profit for the year - 40000
612000
2. From the following particulars ascertain credit sales (3)

Particulars Rs
Debtors as on 1st April 2017 25000
Debtors as on 31st March 2018 40000
Cash received from Debtors 50000
Discount allowed 7000
Bad debts 3000
Ans.
2018 March
3. ................account is prepared by a trader, who does not maintain the double entry
system of accounting, to find out the value of credit purchase. (1)
a) Total creditors b) Total debtors c) Bills receivable d) Bills payable
Ans. a) Total creditors
4. From the following particulars, find out total purchases. (4)
Creditors on 1st April, 2016 60000

Creditors on 31st March, 2017 40000
Cash paid to creditors 50000
Return outwards 5000
Bills payable accepted 16000
Discount received 4000
Bills payable dishonoured 2000
Cash purchase 47000
Accounts from Incomplete Records previous questions prepared by Jaison James HSST (Jr) SMHSS Koodathai
Ans.
Total purchase = Cash purchase +Credit purchase

=47000+53000
=100000
2018 IMP
5. From the following information calculate capital at the beginning (3)
Capital at the end of the year 6, 00,000

Drawings made during the year 50,000
Fresh capital introduced. 1, 00,000
Profit of the current year 1, 20,000
Ans.
2017 IMP
6. Mr. Muneer, a fruit merchant maintains incomplete records of accounting.
a) Name the statement prepared by him to find out the opening capital balance.
b) Find out his capital as on 1st April, 2015 from the information given below.
Furniture 14,000
Machinery 26,000
Cash in hand 6,300
Bil1s Payable 3,450
Sundry Debtors 15,700
Sundry Creditors 4,800
Closing stock 7,300
c) Find out the amount of profit made by him during the year ended 31"t March, 2016,
if his closing capital balances as on that date amounts to Rs. 67,500 (4)
Ans. a) Statement of affairs method or opening statement of affairs method
b)
c) Profit = Capital at the end – capital at the beginning

= 67500- 61050
= 6450
2017 March
7. “A Balance Sheet is more reliable than Statement of Affairs”. Explain. (1)
Ans.
1. Balance sheet is prepared on the basis of those books which are maintained under double entry
Statement of affairs is prepared on the basis of information from incomplete records.
2. balance sheet is prepared to show the financial position of the business
Statement of affairs is prepared to find out capital.
3. value of assets and liabilities in a balance sheet are based on ledger balances.
value of assets and liabilities in a statement of affairs are based on estimates.
4. Omission of assets or liabilities can easily be found out when balance sheet disagree.
It is difficult to locate omission of assets or liabilities in statement of affairs.
Any one point
2016 March
8. Consider the following information from the books of Mr. Sidique.
a) Profit for the year ₹ 60000
b) Additional capital introduced by him ₹ 50000
c) Drawings by him this year ₹ 30000
d) Capital at the end of the year ₹ 200000
Find the Capital contributed by him at the beginning of the year. (3)
Ans.
2016 IMP
9. Find out the capital from the beginning from the following information.
Capital at the end Rs.156000
Drawings during the year Rs. 14000
Additional capital introduced during the year Rs.40000
Loss during the year Rs. 20000 (3)
Ans.
Or
Capital at the beginning = Capital at the end + Drawings + los during the year-additional capital
=156000 + 14000 + 20000 – 40000
=190000-40000
=150000
2015 March
10. Credit purchases are calculated by preparing _____________
a) Total debtors account.
b) Total creditors account.
c) Bill receivable account.
d) Bills payable account. (1)
Ans. b) Total creditors account.
11. Ascertain profit from the following

Capital on 1st January 2014 ₹ 16000
Capital on 31st December 2014₹ 17900
Drawings made during the year ₹ 4800
Capital introduced on 1st July 2014 ₹ 2000 (2)
Ans.
2015 IMP
12. Which of the following cannot be a posting on the credit side of the debtors account?
a) Discount allowed
b) Bad debts
c) Credit sales
d) Cash received (1)
Ans. c) Credit sales
13. A firm has given you certain particulars relating to Siva Kumar.
Amount owed to Siva Kumar on 01-01-2014 Rs. 4000

Purchases from him during the year Rs. 24000
Discount received from Siva Kumar Rs.1000
Cash paid to him. Rs.14000
a) Who is Siva Kumar to the business? (1)
b) Prepare Siva Kumar's account. (2)
Ans. a) Creditor/ supplier
b)
14. Abu does not follow any Perfect I system of accounting. He gives you the
following information.
Opening capital Rs.30, 000
Expenses met for his domestic purpose Rs. 11,000
Borrowings for business Purpose Rs. 10,000
Closing capital Rs. 49,000
a) Ascertain the net Profit. (2)
b) What method have you employed for profit computation (1)
Ans. a)
b) Statement of affairs method

2014 March
15. The profit or loss under the single entry system is found by ….............. basis.
a) on an estimate
b) Drawing the Profit and Loss account
c) Drawing the balance sheet
d) The double entry system (1)
Ans. a) on an estimate
16. Jaya Brothers is a sole trader who invested Rs. 10000 on 01-01-2012 in his business and
the same was found at Rs. 18000 at the end of the accounting year. He also withdrew
Rs. 6000 for his private use. Ascertain his profit for the year. (3)
Ans.
2014 IMP
17. Cash received from debtors can be found from the …………………
a) Cash book b) Total debtor`s a/c c) Statement of affairs d) Both a and b (1)
Ans. d) Both a and b
18. . Ascertain the credit sales from the following figures. (3)
Opening balance of debtors Rs. 5,400

Cash received from debtors Rs. 18,400
Discount allowed Rs. 1,200
Bills receivable received Rs. 4,500
Bills receivable dishonoured Rs. 500
Closing balance of debtors Rs. 4,300
Ans.
2013 March
19. Prasad kept his books under the single entry system. His position as on 31-12-2012 was as follows.
Rs.
Cash 7000
Bank 16000
Stock 11000
Sundry Debtors 45000
Furniture 6000
Sundry creditors 14000
His capital account shows a credit balance of Rs 54000 as on 1/1/2012. He introduced
an additional capital of Rs. 5000 during the financial year. He withdrew Rs.10000 for
personal purpose. Ascertain his profit for the year ended 31-12-2012. (5)
Ans.
2013 IMP
20. The following figures are drawn from the books of Raj Kapoor, who maintains his accounts under
single entry system. You are required to calculate total sales.
Debtors at the beginning Rs.25, 500

Cash received from debtors during the year Rs.1, 05,000
Discount allowed Rs.500 Bad debts during the year Rs.1, 450
Sales returns Rs.550 Debtors at the end Rs. 43,000
Cash sales as per cash book Rs. 15,500 (5)
Ans.
Total sales = Cash sales + credit sales

= 15500 + 125000
= 140500
2012 March
21. . If stock at the beginning or at the end is missing, the same can be ascertained with the
help of ………
a) Debtors account
b) Creditors account
c) Statement of affairs
d) Memorandum of Trading account (1)
Ans. c) Statement of affairs / d) Memorandum of Trading account
22. - Mr. Sumesh is a retailer whose records are incomplete. You are required to ascertain his
profit or loss for the year ended 31st December, 2011 from the following details.
Capital on 01-01-2011 Rs. 1,00,000
Capital introduced on 01-07-2011 Rs. 50,000
Withdrawals by the proprietor during the year Rs. 30,000
Capital on 31-12-2011 Rs. 1,40,00 (2)
Ans.
2012 IMP
23. Calculate the capital at the beginning
Capital at the end Rs. 75,000;
Drawings Rs. 12,000;
Profit Rs. 20,000 (1)
Ans.
24. Mr. Kiran, a sole trader does not keep full records of books of accounts. However, the following
information is available. You are required to calculate credit sales and credit purchases by
preparing Total debtors account and Total creditors account. Also show the Bills Receivable
account and Bills Payable account.
Balance on 1st January, 2010

Total debtors – 57,200
Bills receivable – 4,000
Total creditors – 26,400
Bills payable – 2,500
Cash paid to creditors - 70,250
Discount allowed by suppliers – 2,650
Cash received from customers – 1,35,400
Discount allowed to customers – 4,200
Returns from customers – 1,625
Returns to suppliers – 1,330
Bad debts written off – 3,540
Cash received against bills receivable – 14,200
Payment made against bills payable – 7,000
Bills receivable dishonoured – 1,100
Balance on 31st December, 2010
Total debtors – 55,600
Total creditors – 28,400
Bills Receivable – 1,000
Bills Payable – 3,000 (8)
Ans.
2011 March
25. . Statement of affairs is prepared to find out the ……………………
a) Assets and liabilities b) Capital c) Purchase and sales (1)
Ans. b) Capital
2011 Imp
26. A trader prepared his books under single entry system approached you for making it acceptable to
the tax authorities. Explain the procedure.
Ans. converts the single entry system to double entry
Procedure
1. To find opening capital 2. To find closing balance of cash 3. Amount of bills receivable and bills
payable 4.To find credit purchase and credit sale 5.Closing balance of asset. 6.Find closing
balance of assets. 7.To find opening stock and closing stock. 8 To find total purchase and sales.
9. Prepare profit and loss account. 10 Prepare Balance Sheet
27. Mittu keeps his books under single entry. On 1st January 2010, his record indicated the following
assets and liabilities
Cash in hand 8000 Cash at bank 56000
Stock 22000 Debtors 28000
Furniture 24000 Machinery 40000
Motor car 6000 Creditors 42000
Bills Payable 12000
During the year he introduced Rs. 10000 as further capital and withdrew Rs. 800 every month.
On 31-12-2010, his position was as follows.
Cash in hand 6000 Cash at bank 50000
Stock 56000 Debtors 44000
Furniture 26000 Machinery 38000
Motor car 8000 Creditors 52000
Bills Payable 10000
Calculate profit or loss made by him during the year by using statement of affairs method.
Ans.
2010 March
28. A retail trader had not kept proper books of account but from the following details , you are required
to ascertain the profit or loss for the year ended 30th June 2009 and also to prepare a statement of
affairs as on that date.
Particulars 01-07-2008 30-06-2009

Stock in trade 16700 18500
Creditors 15400 14000
Debtors 11200 10500
Cash in hand 250 1200
Bank overdraft 20200 19400
Bills Receivable 15050 14200
Furniture and fixtures 1500 1500
Motor Van 1900 1900
The drawings for the year amounted to Rs. 2600. Depreciation furniture by 10 % and write off Rs.
300 on motor van. As regards to the debtors, it is ascertained that Rs. 500 are irrecoverable and
create further reserve of 5 % for bad and doubtful debts. Also create a reserve of Rs. 700 with
respect to bills receivable.
Ans.
29. From the following information find out the credit sales
Balance of debtors as on 1-1-1998 12000
Returns inward 5000
Cash received from customers 45000
Discount allowed to them 3000
Bills receivable from customers 17000
Bad debts 1500
Bills receivable dishonoured 3500
Debtors on 31-12-1998 10000
Ans.
30. The closing balance of creditors can be ascertained from the ……..
a. cash account. b. Balance sheet at the end of the year c. Total creditors account.
Ans. c. Total creditors account.
31. The amount of credit sale is determined by preparing a total creditors account. state whether true or
false.
Ans. False
2010 Imp
32. Find out profit or loss from the information given to by Mr. incomplete.
Capital at the beginning 150000
Capital at the end 180000
Drawings 20000
Capital introduced 30000
Ans.
33. In a classroom discussion, your friend argues that, Balance sheet and statement of affairs are one
and the same. Do you agree with him? Justify your answer.
Ans.
1. Balance sheet is prepared on the basis of those books which are maintained under double entry
Statement of affairs is prepared on the basis of information from incomplete records.
2. Balance sheet is prepared to show the financial position of the business
Statement of affairs is prepared to find out capital.
3. Value of assets and liabilities in a balance sheet are based on ledger balances.
Value of assets and liabilities in a statement of affairs are based on estimates.
4. Omission of assets or liabilities can easily be found out when balance sheet disagree.
It is difficult to locate omission of assets or liabilities in statement of affairs.
34. Which of the following are required for calculating credit sales when single entry system is converted
in to double entry system?
a. Opening and closing balance of debtors and cash paid to creditors
b. Opening and closing balance of creditors and cash received from debtors
c. Opening and closing balance of debtors and cash received from debtors
d. Opening and closing capital and cash received from debtors
Ans. c. Opening and closing balance of debtors and cash received from debtors
2009 Imp
35. Soni and company had the following details relating to debtors. Help them to find out the closing
balance of debtors at the end of 31st Dec. 2007
Opening balance of debtors 75000
Credit sales 500000
Sales Return 5000
Cash received from debtors 398000
Discount received 2000
B/R received 50000
B/R dishonoured and noting charge paid 500
Ans.
36. Mr. Balamurali’s records are incomplete. You are required to calculate the profit /loss earned by him
during the year 2007
Capital on 1st January 2007 175000
Capital introduced during the year 125000
Drawings during the year 36000
Capital on 31st December 2007 300000
Ans.
37. The book of Aswathi and Ahuja is not complete. Please help them to find out their profit during the
year 2005 from the following information.
On 1st January 2005 the record shows the following assets and liabilities:
Cash in hand 40000 Bank 25000 Closing stock 110000
Debtors 24000 Furniture 52000 Machinery 25000
Bills receivable 20000 Creditors 28000 Bills payable 15000
During the year they introduced Rs. 100000 as further capital and withdraw Rs. 3000 every month for
personal use.
On 31st December 2005 their position was as follows:
Cash in hand 20000 Bank 40000 Closing stock 175000
Debtors 75000 Furniture 55000 Machinery 50000
Bills receivable 20000 Creditors 60000 Bills payable 20000
Ans.
2009 March
38. Mr. Varkey’s records are incomplete, he provides the following information. Help him to find out the
closing balance of the debtors.
Opening balance of debtors- Rs. 25000, Credit sales- Rs. 200000, Cash received from debtors- Rs.
150000, Bills receivable – Rs. 25000
Ans.
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Accounts from Incomplete Records previous questions & Answers

1. Calculate capital at the beginning

Ans. Closing capital -600000

2. From the following particulars ascertain credit sales (3)

Creditors on 1st April, 2016 60000

Total purchase = Cash purchase +Credit purchase

5. From the following information calculate capital at the beginning (3)

Capital at the end of the year 6, 00,000

c) Profit = Capital at the end – capital at the beginning

11. Ascertain profit from the following

Amount owed to Siva Kumar on 01-01-2014 Rs. 4000

b) Statement of affairs method

Opening balance of debtors Rs. 5,400

Debtors at the beginning Rs.25, 500

Total sales = Cash sales + credit sales

Ans. c) Statement of affairs / d) Memorandum of Trading account

Balance on 1st January, 2010

Particulars 01-07-2008 30-06-2009

Ans. c. Total creditors account.

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