BRIGHT GROUP TUITIONS

Std.: 11th (Commerce) Accounts Marks: 56

Date: 27-Dec-2023 Time: 1hr
Chapter:

Q.1 Select the most appropriate alternatives from those given below and rewrite the statements. 20
1 If opening capital = $1000 and closing capital =$2000.Assumimg no drawings during the accounting period,
calculated the net income or loss for the period
(a) $1000 net income (b) $1000 net loss
(c) $2000 net income (d) $2000 net losses

Ans (a) $1000 net income

2 Additional Capital introduced during the year is _______________ from closing capital in order to find out the
correct profit.
(a) Added
(b) Deducted
(c) Divided
(d) Ignored

Ans (b) Deducted

3 In order to find out the correct profit, drawings is _______________ from closing capital.
(a) Multiplies
(b) Divided
(c) Deducted
(d) Added

Ans (d) Added

4 A statement of affairs ___________ is to be prepared in under to find out profit or loss under a single entry
system.
(a) Income (b) Affairs (c) Revenue (d) Profit or Loss

Ans (d) Profit or Loss

5 A statement of affairs is a summarised statement of an estimated ____________.

(a) Financial position (b) Profit (c) Income (d) Loss

Ans (a) Financial position

6 The capital balances are ascertained by preparing ___________

a. Statement of affairs
b. Cash Account
c. Drawings Accounts
d. Debtors Accounts

Ans a. Statement of affairs

7 Single Entry System may be useful for _______________

(a) Sole traders
(b) Company
(c) Government
(d) None of these
Ans (a) Sole traders

8 Under Single Entry System, Opening Capital = Opening Assets less _______________
(a) Opening Liabilities
(b) Closing Liabilities
(c) Debtors Account
(d) Creditors Account

Ans (a) Opening Liabilities

9 Opening Capital is ₹ 30,000; Closing Capital is ₹ 60,000; Withdrawals are ₹ 5,000; and further capital brought in
is ₹ 3,000; Profit is _______________
(a) ₹ 45,000
(b) ₹ 35,000
(c) ₹ 32,000
(d) ₹ 22,000

Ans (c) ₹ 32,000

10 The difference between assets and liabilities is called _______________

(a) Capital
(b) Drawings
(c) Income
(d) Expenses

Ans (a) Capital

11 Opening Capital is ₹ 30,000; Closing Capital is ₹ 60,000; Withdrawals are ₹ 5,000; and further capital brought in
is ₹ 3,000; Profit is _________
a. ₹ 45,000 b. ₹ 35,000 c. ₹ 32,000 d. ₹ 22,000

Ans c. ₹ 32,000

12 Single entry system can be adopted by

(a) Small firms (b) Joint stock companies
(c) Co-operative societies (d) None of these

Ans (a) Small firms

13 Capital in the beginning of the accounting year is ascertained by preparing

(a) Debtor’s A/c (b) Cash A/c
(c) Opening statement of affairs (d)None of these

Ans (c) Opening statement of affairs

14 The capital balances are ascertained by preparing _______________

(a) Statement of Affairs
(b) Cash Account
(c) Drawings Accounts
(d) Debtors Accounts

Ans (a) Statement of Affairs

15 When Closing Capital is greater than the Opening Capital, the difference is _______________
(a) Profit
(b) Loss
(c) Assets
(d) Liabilities
 Ans (a) Profit

16 From incomplete records, it is possible to prepare

(a) Ledger A/c (b) Trial balance
(c) Statements of affairs (d) None of these

Ans (c) Statements of affairs

17 Additional Capital introduced during the year is _________ from closing capital in order to find out the correct
profit
a. Added b. Deducted c. Divided d. Ignored

Ans b. Deducted

18 Given the opening and closing balances of debtors and the figure of credit sales, the balancing figure of total
debtors A/c will give
(a) Bills received during the year
(b) Cash received from debtors
(c) Closing balance of Bill receivable
(d) None of the above

Ans (b) Cash received from debtors

19 Profit= capital at the end+ __________ - capital introduced – capital in the beginning
(a) Sales (b) Drawings (c) Net purchases (d) None of these

Ans (b) Drawings

20 In order to find out the correct profit, drawings is _________ from closing capital
a. Multiplies b. Divided c. Deducted d. Added

Ans d. Added

Q.2 Write the word/term/phrase which can substitute each of the following statement. 26
1 A statement similar to balance sheet prepared to ascertain the amounts of closing capital.

Ans Closing statement of affairs

2 The system of accounting which is scientific.

Ans Double Entry system

3 Name of the method of accounting suitable to firms having limited transactions.

Ans Single Entry System

4 A statement similar to the Balance Sheet is prepared to find out the amount of opening capital.

Ans Opening Statement of Affairs

5 Name of method of accounting suitable to firms to having limited transactions.

Ans single entry system

6 A statement which is similar to balance sheet.

Ans Statement of affairs

7 Excess of opening capital over closing capital of proprietor under single entry system.

Ans loss
8 A system of accounting which is not scientific.

Ans Single entry system

9 A statement which shows profit or loss of business under single entry system.

Ans Statement of Profit or Loss

10 A system of book-keeping in which both the aspects of transactions are recorded.

Ans Double entry system

11 A statement which shows the balances of various assets and liabilities at their approximate or estimated
values as on particular date.

Ans Statement of Affairs.

12 Name the statement prepared to find out profit or loss under single entry system.

Ans Statement of Profit or Loss

13 A statement similar to Balance Sheet prepared to find out the amount of opening capital

Ans opening statement of affairs

14 System of Accounting normally suitable to small business organization.

Ans single entry system

15 A system of book-keeping which records only one aspect of business transactions and ignores other aspect.

Ans Single Entry System

16 A System of accounting that is unscientific.

Ans Single Entry System

17 Excess of closing capital over opening capital of proprietor under Single Entry System.

Ans Profit

18 A system of book-keeping which records only one aspects of business transactions and ignore other aspect.

Ans Single entry system

19 The incomplete method of accounting system.

Ans Single Entry System

20 Method of accounting in which real accounts and nominal accounts are not maintained.

Ans Single entry system

21 An accounting system where rules of debit and credit are not followed.

Ans Single Entry System

22 A System of accounting which is unscientific.

Ans single entry system

23 A statement that is similar to the Balance Sheet.

Ans Statement of Affairs

24 An excess of assets over liabilities.

 Ans Capital

25 The system of Accounting is normally suitable for small business organizations.

Ans Single Entry System

26 Further capital introduced by the proprietor in the business concern over and above his existing capital.

Ans Additional Capital

Q.3 Complete the following sentences. 10

1 From incomplete records, it is possible to prepare ________.

Ans statements of affairs

2 In case of net worth method of single entry system, profit is ascertained ___________.

Ans by comparing the capital at the beginning of the accounting period and the capital at the end of the
accounting period.

3 A statement of affairs is a summarized statement of __________.

Ans an estimated financial position

4 The difference of the capital at the end and the capital in the beginning will show ___________ provided there
are no drawings.

Ans profit earned

5 A statement of affairs is prepared from __________ records.

Ans incomplete

6 Net worth of an organization means ____________.

Ans the excess of its total assets over total liabilities.

7 _____________ is similar to balance sheet prepared to ascertain the amounts of closing capital.

Ans Closing statement of affairs

8 Capital in the beginning and capital at the close are usually ascertained as the balancing figures of ___________
prepared on the relevant accounting dates.

Ans statements of affairs

9 Under the net worth method, the basis for ascertaining profit or loss ________.

Ans is the difference between capital on two dates

10 A statement of affairs shows only the _____________ financial position of the business.

Ans estimated