CBSE Class 11 Chapter 11 Accountancy Extra Questions

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CBSE Class 11 Chapter 11 Accountancy Extra Questions. myCBSEguide has just released Chapter Wise Question Answers for class 11. Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. Accountancy describes the duties of an accountant, the person whose job is to keep, inspect and interpret financial accounts. There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. These Question with solution are prepared by our team of expert teachers who are teaching grade in CBSE schools for years. There are around 4-5 set of solved Accountancy Extra questions from each and every chapter. The students will not miss any concept in these Chapter wise question that are specially designed to tackle Exam. We have taken care of every single concept given in CBSE Class 11 Accountancy syllabus and questions are framed as per the latest marking scheme and blue print issued by CBSE for class 11.

Class 11 Accountancy Extra Questions

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Accounts from Incomplete Records Class 11 Accountancy Practice Questions

Ch-11 Accounts Incomplete Records


  1. Can a limited company maintain its accounts under single entry system?
  2. Calculate Purchases-
    Rs.
    Cost of Goods Sold65,000
    Stock in the beginning4,000
    Closing Stock5,000
  3. In the single entry system, state any method which is used to ascertain profit or loss.
  4. Explain how opening capital and closing capital be ascertained from incomplete records?
  5. Following information is given of an accounting year-
    Opening Creditors Rs.15,000; Cash paid to creditors Rs.15,000; Returns Outward Rs.1,000 and Closing creditors Rs.12,000.
    Calculate Credit Purchases during the year.
  6. Rishant keeps incomplete records of his business. He gives you the following information. Capital at the beginning of the year Rs 8,00,000; capital at the end of the year Rs 6,20,000, Rs 2,50,000 was withdrawn by him for his personal use; as Rishant needed money for expansion of his business, he asked his wife for help, his wife allowed him to sell her ornaments and invest that amount into the business which come to Rs 30,000. Calculate his profit or loss for the year ended.
  7. What is meant by single entry system of accounts and give any three salient features.
  8. Manveer started his business on 1st January 2013 with a capital of Rs 4,50,000. On 31st December, 2013 his position was under
    ItemsAmt(Rs)
    Cash99,000
    Bills Receivable75,000
    Plant48,000
    Land and Building1,80,000
    Furniture50,000

    He owed Rs 45,000 from his friend Susheel on that date. He withdrew Rs 8,000 per month for his household purposes. Ascertain his profit or loss for this year ended 31 st December, 2013.

  9. Following information is supplied to you by a shopkeeper:
    1st April 201731st March 2018
    CashRs.6,000Rs.7,000
    Sundry Debtors68,00064,000
    Stock59,00087,000
    Furniture15,00013,500
    Sundry Creditors20,00018,000
    Bills Payable15,00011,000

    During the year he withdrew Rs.2,500 per month for domestic purpose. He also borrowed from a friend at 9% a sum of Rs.20,000 on 1st October 2017. He has not yet paid the interest. A provision of 5% on debtors for doubtful debts is to be made. Ascertain the profit or loss made by him during the period.

  10. Vijay commenced business as foodgrains merchant on 1st April, 2017 with a capital of Rs.4,00,000. On the same day, he purchases furniture for Rs.80,000. From the following particulars obtained from his books which do not conform to Double Entry principles, you are required to prepare the Trading and Profit and Loss Account for the year ended 31st March, 2018 and the Balance Sheet as on that date :
    Rs.
    Sales (including Cash Sales Rs.2,00,000)5,00,000
    Purchases (including Cash Purchases Rs.1,20,000)4,00,000
    Vijay’s Drawings (in Cash)40,000
    Salaries to Staff48,000
    Bad Debts written off4,000
    Trade Expenses paid16,000

    Vijay used goods of Rs.12,000 for private purpose during the year. On 31st March, 2018, his Debtors amounted to Rs.1,40,000 and Creditors Rs.80,000. Stock-in-Trade on that date was Rs.1,60,000.

Ch-11 Accounts Incomplete Records


Answer

  1. No, a limited company cannot maintain its books of accounts under single entry system due to legal restrictions.
  2. Cost of goods Sold = Purchase + Opening Stock – Closing Stock
    65,000 = Purchase + 4,000 – 5,000 n Purchase = Rs.66,000
  3. Statement of Affairs Method or Net Worth Method is generally used to ascertain Profit /Loss in case of Single Entry System.
  4. Opening capital can be obtained by preparing the statement of affairs at the beginning of the financial year and the closing capital can be ascertained with the help of the statement of affairs at the end of the financial year of the firm.
  5. The term “Sundry” usually refers Small or infrequent customers/companies that are not assigned individual ledger accounts but are classified as a group. Sundry creditors are such small entities that the company owes money to. In this question the account is to be maintained as follows:-

    Sundry Creditors A/c

    ParticularsRs.ParticularsRs.
    To Cash A/c (Paid)15,000By Balance b/d15,000
    To Returns Outward1,000By Credit Purchase
    (Bal. Fig.)
    13,000
    To Balance c/d12,000
    Total28,000Total28,000
  6. Statement of Profit And Loss
    for the year ended….

    Particulars                  Amt.(Rs)
    Capital at the End(ie.closing capital)6,20,000
    Add: Drawings2,50,000
    8,70,000
    Less: Additional Capital Introduced30,000
    Adjusted capital at the end8,40,000
    Less: Capital in the Beginning(ie.opening capital)8,00,000
    Profit Made During the year40,000

    Profit=Closing capital+Drawings-Additional capital-Opening capital

  7. Meaning of Single Entry System: A single entry system records a transaction with a single entry and only maintains one side of every transaction. It is the oldest method of recording financial transactions and is less popular than the double-entry system and is mainly used for entries recorded in the income statement. This term is used to describe the problems associated with the accounts from an incomplete transaction and is popularly called as ‘Preparation of accounts from incomplete records’Three Salient features of Single Entry System :
    • Under this method, only one Cash Book is maintained which mixes up both the private and business transaction.
    • Under this system, Profit or Loss can be ascertained but not the financial position as a whole.
    • Arithmetical accuracy of the account is not possible since Trial Balance can’t be prepared.
  8. Books of Manveer

    Statement of Affairs
    as 31st December, 2013

    LiabilitiesAmt(Rs)AssetsAmt(Rs)
    Loan from Sushil45,000Cash99,000
    Capital(Balancing figures)4,07,000Bills Receivable75,000
    Plant48,000
    Land and Building1,80,000
    Furniture50,000
    4,52,0004,52,000

    Statement of Profit or Loss
    for the year ended 31st December, 2013

    ParticularsAmt(Rs)
    Capital at the End i.e, 31st December, 20134,07,000
    (+) Drawings Made During in the year(8000 {tex}\times{/tex}12)96,000
    Adjusted capital at the end5,03,000
    (-) Capital in the Beginning i.e, 1st January, 20134,50,000
    Profit Made During the year 201353,000

    Note: 1. Statement of Profit and loss is made to ascertain the Profit or Loss during the period in place of Profit/Loss Account.

    2.   Statement of Affairs is made to ascertain the Closing Capital.

  9. Incomplete records refer to a situation in which an organization is not using double-entry bookkeeping. Instead, it is using a more informal accounting system, such as a single-entry system, to maintain a reduced amount of information about its financial results. So, as per this, the question is to be solved as follows:-

    STATEMENT OF AFFAIRS

    Liabilities1.4,1731.3.18Assets1.4.1731.3.18
    Creditors20,00018,000Cash6,0007,000
    B/P15,00011,000Debtors68,00064,000
    Capital (Balancing figure)1,13,0001,22,500Furniture15,00013,500
    Friend’s loan20,000Stock59,00087,000
    1,48,0001,71,5001,48,0001,71,500

    STATEMENT OF PROFIT

    ParticularsAmount (Rs.)
    Closing Capital1,22,500
    Add : Drawings (12{tex}\times{/tex}2,500)30,000
    Total1,52,500
    Less : Opening Capital1,13,0001,13,000
    Gross Profit39,500
    Less : Interest on Borrowings = 20,000{tex}\times{/tex}9%1/2=900
    Less : Provision for B/D = 64,000{tex}\times{/tex}5%=3,2004,100
    Net Profit35,400
  10. Cash A/c

    ParticularsAmount

    Rs.

    ParticularsAmount

    Rs.

    To Capital A/c4,00,000By Furniture A/c80,000
    To Cash Sales A/c2,00,000By Cash Purchase A/c1,20,000
    To Sundry Debtors A/c1,56,000By Sundry Creditors A/c2,00,000
    By Drawings A/c40,000
    By Salaries A/c48,000
    By Trade Expenses A/c16,000
    By Balance c/d (Bal. Fig)2,52,000
    7,56,000
    ======
    7,56,000
    ======

    Sundry Debtors A/c 

    ParticularsAmount

    Rs.

    ParticularsAmount

    Rs.

    To Credit Sales A/c3,00,000By Bad Debts A/c4,000
    By Cash A/c (Bal. Fig.)1,56,000
    By Balance c/d1,40,000
    3,00,000
    =======
    3,00,000
    ========

    Sundry Creditors A/c

    ParticularsAmount

    Rs.

    ParticularsAmount

    Rs.

    To Cash A/c (Bal. Fig.)2,00,000By Credit Purchase A/c2,80,000
    To Balance c/d80,000
    2,80,000
    ========
    2,80,000
    =======

    Trading and Profit & Loss A/c
    as 
    at March 31, 2018

    Particulars

    Amount

    Rs.

    Particulars

    Amount

    Rs.

    To Purchases A/c                    4,00,000By Sales A/c5,00,000
    Less: Drawings A/c                                                            12,0003,88,000By Closing Stock A/c1,60,000
    To Gross Profit c/d2,72,000
    6,60,000
    ========
    6,60,000
    =======
    To Salaries A/c48,000By Gross Profit b/d2,72,000
    To Bad Debts A/c4,000
    To Trade Expenses A/c16,000
    To Net Profit c/d2,04,000
    2,72,000
    =======
    2,72,000
    ========

    Balance Sheet
    as 
    at March 31, 2018

    LiabilitiesAmount
    Rs.
    AssetsAmount
    Rs.
    Sundry Creditors80,000Cash2,52,000
    Capital 4,00,000Sundry Debtors1,40,000
    Add: Net Profit 2,04,000Closing Stock1,60,000
                                                             6,04,000Furniture80,000
    Less : Drawings [40,000+12,000]       52,0005,52,000
    6,32,000
    ========
    6,32,000
    ========

    Final Accounts of sole trader consists of:

    • Trading Account
    • Profit and Loss Account
    • Balance Sheet

    So far in this unit you have looked at different adjustment needed before the final accounts can be prepared. The final accounts for a sole trader business are the Income Statement (Trading and Profit & loss Account) and the Balance Sheet. The final accounts give a picture of the financial position of your business. It shows where or not your business has made a profit or loss during the accounting period and whether you are able to pay your debts as they become due.


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