Online Test — Accounts from Incomplete Records
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
The single entry system is best described as:
A complete, scientific system
Incomplete and unsystematic records
Only for companies
The same as double entry
Explanation: It is an incomplete, unsystematic way of recording.
Question 2 of 15
Under single entry, which accounts are usually kept?
All accounts
Cash book and personal accounts
Only nominal accounts
Only real accounts
Explanation: Mainly the cash book and personal accounts.
Question 3 of 15
Which cannot be prepared under single entry?
Cash book
Trial balance
Personal accounts
Receipts
Explanation: No trial balance is possible with incomplete records.
Question 4 of 15
Single entry is suitable for:
Companies
Small sole traders and firms
Banks
Governments
Explanation: Only small proprietors/firms may use it; companies cannot.
Question 5 of 15
Capital (net worth) =
Assets + Liabilities
Assets − Liabilities
Liabilities − Assets
Drawings + Capital
Explanation: Capital = Assets − Liabilities.
Question 6 of 15
A rough balance sheet under single entry is called a:
Statement of affairs
Trial balance
Cash memo
Voucher
Explanation: It is a statement of affairs (net worth statement).
Question 7 of 15
The profit formula is: Closing Capital + Drawings − Fresh Capital − :
Opening Capital
Sales
Assets
Liabilities
Explanation: Profit = Closing Capital + Drawings − Fresh Capital − Opening Capital.
Question 8 of 15
In the profit formula, drawings are:
Subtracted
Added back
Ignored
Doubled
Explanation: Drawings are added back (profit taken out).
Question 9 of 15
Fresh capital introduced is ____ in the profit formula.
Added
Subtracted
Ignored
Doubled
Explanation: Fresh capital is subtracted (it is not profit).
Question 10 of 15
Opening capital 60,000; closing 90,000; drawings 10,000; no fresh capital. Profit =
Rs 40,000
Rs 30,000
Rs 20,000
Rs 50,000
Explanation: 90,000 + 10,000 − 0 − 60,000 = 40,000.
Question 11 of 15
The method that converts records into full double entry is the:
Net worth method
Conversion method
Cash method
Imprest method
Explanation: The conversion method builds proper accounts and final statements.
Question 12 of 15
Missing credit sales are found by preparing the:
Total Creditors Account
Total Debtors Account
Cash memo
Trial balance
Explanation: The Total Debtors Account reveals credit sales.
Question 13 of 15
Missing credit purchases are found by preparing the:
Total Debtors Account
Total Creditors Account
Sales book
Cash book only
Explanation: The Total Creditors Account reveals credit purchases.
Question 14 of 15
Compared with the net worth method, the conversion method gives:
Less detail
Complete, detailed final accounts
Only capital
No profit
Explanation: It produces full Trading, P&L and Balance Sheet.
Question 15 of 15
Opening debtors 15,000; cash received 80,000; closing debtors 25,000; no returns. Credit sales =
Rs 90,000
Rs 1,00,000
Rs 70,000
Rs 1,20,000
Explanation: 25,000 + 80,000 − 15,000 = 90,000.