12th Accountancy Assignment Answer - English Medium

  ASSIGNMENT

CLASS: 12 SUBJECT: ACCOUNTANCY

UNIT : - 1. ACCOUNTS FROM INCOMPLETE RECORDS

PART - A

I. Multiple Choice Questions

1. ______________ can not maintain accounting records under single entry system as per legal

requirement

(a) companies 

(b) Sole proprietors

(c) partnership firms 

(d) petty shops

2. Single entry system is an __________ system

(a) Double entry    (b) Scientific

(c) complete      (d) incomplete double entry

3.Select the correct equation

(a) Assets + Liabilities = Capital

(b) Liabilities – Capital = Assets

(c) Assets – Liabilities = Capital

(d) Assets + Capital = Liabilities

4.Acceptances received from customers

(a) Debited in Total Debtors a/c

(b) Credited in Total Creditors a/c

(c) Credited in Bills payable a/c

(d) Credited in Total Debtors a/c

5.Credit purchases can be obtained as a balancing figure in _______

(a) Bills payable a/c    (b) Total debtors a/c

(c) Total creditors a/c      (d) Bills Receivable a/c

6.Creditors on 01-01-2013 - Rs.80,000 and on 31-12-2013 - Rs.65,000 cash paid to creditors -

Rs.1,10,000. Find out the credit purchases during the year 2013 was Rs.________

(a) Rs.1,95,000         (b) Rs.95,000

(c) Rs.1,50,000          (d) Rs.1,60,000

7.Debtors on 01-04-2015 Rs.1,00,000 and on 31-03-2016 is Rs.90,000 cash received from

Debtors During the year was Rs.1,60,000 Then credit sales is _________

(a) Rs.2,40,000        (b) Rs.1,50,000

(c) Rs.3,00,000        (d) Rs.1,60,000

8.When accounting records are maintained under single entry system as per ______ accounts

are maintained

(a) Real and personal 

(b) Personal and nominal

(c) Real and nominal

 (d) Cash and personal

9.Statement of affairs is a

(a) statement of income and expenditure

(b) Statement of Assets and liabilities

(c) Summary of cash transactions

(d) Summary of credit transactions

10.The excess of assets over liabilities is

(a) Loss 

(b) cash

(c) capital 

(d) profit

PART - B

II. Very Short Answer

1.State the accounts generally maintained by small sized sloe trader when double entry

accounting system is not followed

• Generally cash account and the personal accounts of customers and creditors are maintained by small sized sole trader. When double entry accounting system is not followed.

2.From the following particulars ascertain profit or loss

 Particulars Amount Rs.

Capital at the beginning of the year Apr -2019 2,50,000

Capital at the end of the year Mar-2020 4,25,000

Additional capital introduced during the year 25,000

Drawing during the year 35,000

3. State the procedure for calculating profit or loss through statement of affairs

• The difference between the closing capital and the opening capital is taken as profit or loss of the business. Due adjustments are to be made for any withdrawal of capital from the business and for the additional capital introduced in the business.
• Adjusting closing capital = Closing capital + Drawings – Opening capital.
• Closing capital + Drawings – Additional capital – Opening capital = Proft/Loss.

4. From the following details, calculate the capital as on 31st Dec-2019

 Particulars Amount

Capital as on January -2019                                   1,00,000

ADD:Drawing during the year                                  30,000

Additional capital introduced during the year           15,000

Profit for the year                                                      60,000

Answer

5.From the following details, calculate credit sales

Answer 

PART-C

III. Short Answer

1.What are the limitations of incomplete records?

Limitations of Incomplete records:

• 1. Lack of proper maintenance of records – It is an unscientific and unsystematic way of maintaining records. Real and nominal accounts are not maintained properly.
• 2. Difficulty in preparing trial balance – As accounts are not maintained for all items, the accounting records are incomplete. Hence, it is difficult to prepare trail balance to check the arithmetical accuracy of accounts.
• 3. Difficulty in ascertaining true profitability of the business – Profit is found out based on available information and estimates. Hence, it is difficult to prepare ascertain true profit as the trading and profit and loss account cannot be prepared with accuracy.
• 4. Difficulty in ascertaining financial position – In general, only the estimated values of assets and liabilities are available from incomplete records. Hence, it is difficult to ascertain true and fair view of state of affairs or financial position as on a particular date
• 5. Errors and frauds cannot be detected easily – As only partial records are available, it may not be possible to have internal checks in maintaining accounts to detect errors and frauds.
• 6. Unacceptable to government and other activities – As accounts maintained are incomplete, these may not comply with the legal requirements. Hence, government, tax authorities and other legal authorities do not accept accounts prepared from incomplete records.

2.State any three procedure for calculating profit and loss through statement of affairs

• The difference between the closing capital and the opening capital is taken as profit or loss of the business. Due adjustments are to be made for any withdrawal of capital from the business and for the additional capital introduced in the business.
• Adjusting closing capital = Closing capital + Drawings – Opening capital.
• Closing capital + Drawings – Additional capital – Opening capital = Proft/Loss.

3.Calculating the missing Figure:

Capital as on 1st April 2018 Rs.40,000 Capital as on 31st March 2019 Rs.50,000

Additional capital introducing Rs.7,000 during the year Profit for the year Rs.8,000 Drawing for

the year?

Answer:

Statement of profit or Loss

4.Write any three difference between Balance sheet and Statement of affairs?

5.Find out credit sales from the following information

Debtors on 1st January 2018 Rs.40,000

Cash received from debtors Rs.1,00,000

Discount allowed Rs.5,000

Sales returns Rs.2,000

Debtors on 31st December 2018 Rs.60,000 (1.8.1 steps to be followed to prepare final accounts

from incomplete records)