Principals of Accounting ICOM Part 02 Top 500 + MCQS Download Pdf Chapter 01

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PRINCIPLES OF ACCOUNTING

I.COM PART 2

Chapter – 1

ACCOUNTS FROM INCOMPLETE RECORDS

TOPICS: SINGLE ENTRY SYSTEM &

CONVERSION INTO DOUBLE ENTRY SYSTEM

SINGLE ENTRY SYSTEM 

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Encircle the most appropriate answer from the following options

1.Single entry system is generally adopted by business:

1. Small
2. Medium
3. Large
4. All

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2.In single entry system accounts are maintained

1. Personal
2. Real
3. Normal
4. None

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3.Net worth is equal to

1. Assets – liabilities
2. Liabilities tassets
3. Liabilities + capital
4. Capital + assets

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4.Due to fresh capital introduced during the year, the closing capital will.

1. Increase
2. Constant
3. Decrease
4. Multiply

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5.Due to drawings made ring the year, the closing capital will

1. Increase
2. Constant
3. Multiply
4. Decrease

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6.To calculate the true net profit or net loss in single entry system it is necessary

that the amount of drawings should be added in

1. Fresh capital
2. Opening capital
3. Closing capital
4. Adjusted closing capital

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7.Single entry system is suitable where

1. Small amount of cash transactions are more
2. Large amount of cash transactions are more
3. Small amount of credit transactions are more
4. Large amounts of credit transactions are morec.

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8.In increased net worth method, profit or loss is calculated by preparing

1. Profit and loss account
2. Income and expenditure account
3. Statement of profit or loss
4. Balance sheet

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9.We cannot prepare the trial balance and precise balance sheet under

1. Single entry system
2. Both a and b
3. Double entry system
4. None

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10.In single entry system, statement of assets, liabilities and capital is called

1. Statement of affairs
2. Earning statement
3. Income statement
4. Statement of profit or loss

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11.The format sketch of statement of affairs is similar to

1. Trial balance
2. Balance sheet
3. Income and expenditure account

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12.Both aspects of a transaction must be recorded

1. Single entry system
2. Double entry system

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13.Closing capital in single entry system calculated by preparing

1. Closing statement of affairs
2. Opening statement of affairs

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14.According to company’s ordinance , single entry system cannot be adopted by

1. Sole proprietorship
2. Joint stock companies
3. Partnership
4. Government

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15.In single entry ledger contains the accounts of

1. Debtors, creditors and cash
2. Assets and liabilities

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16.How many methods are available to calculate the profit or loss under single entry system

1. 2
2. 1
3. 3
4. 4

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17.Opening capital is calculated by taking the difference between

1. Opening assets and closing
2. Opening assets and opening liabilities
3. Opening assets and closing liabilities
4. Closing assets and closing liabilities

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18.Single entry system has effect:

1. One effect
2. Two effect
3. Three effect
4. None of the above

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19.In single entry system, it is not possible to prepare:

1. Receipts and payments Alc
2. Trial balance
3. Balance sheet
4. Account sales

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20.A single entry system is usually adopted by:

1. Company
2. Partnership
3. Government
4. None of above

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21.The system in which accounting records are not kept strictly according to the double-entry principles of book-keeping, is called. 

1. Single Entry System
2. Double entry system
3. Cash system
4. Accrual system 

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22. Single-entry system cannot be maintained by:

1. Sole-proprietorships
2. Partnership concerns 
3. Joint stock companies
4. All of these 

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23.In single entry system, only:

1. Personal & nominal accounts are opened 
2. Personal and cash accounts are opened.
3. Real accounts-are opened    
4. Real and nominal accounts are opened

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24.The single-entry system, is not followed dual aspect concept, so, it is,

1. Incomplete and scientific
2. Complete and scientific
3. Complete and unscientific     
4. Incomplete and unscientific

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25. The single entry system of book-keeping is generally followed by:

1. Small business concern
2. Large business concern
3. Non-trading concerns
4. None of these

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26.Profit can be measured as an

1. The net liabilities of the business
2. The net worth of thc business
3. The net Assets of the business
4. The net drawings of the business

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27.The system of recording transactions based on dual aspect concept is called:

1. Double Entry system           
2. Single entry system
3. Single account system
4. Double account system

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28.Under the net worth method of single entry the net profit is calculated:

From the trading & profit & loss account

1. By comparing the capital in the beginning and capital at the end.
2. By any other method
3. By none of these

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29.Arithmetical accuracy of the books of accounts cannot be checked under.

1. Single Entry System
2. Double Entry System
3. Non-entry System
4. Both (1) and (2)

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30.The accounts are avoided under single Entry system are:

1. Real and nominal account
2. Personal accounts     
3. Capital account
4. All of the above mentioned

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31.A system of book-keeping in which as a rule only records of cash and personal accounts are maintained, is called:

1. Double Entry System
2. Single Entry System
3. Non-trading concerns
4. Partnership concern

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32.A statement of assets and liabilities (including capital) prepared underge entry system is called:          

1. Balance sheet
2. Financial statement    
3. Statement of Affairs
4. Cash statement

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33.A business is said to be using single Entry system, if it is not following completely the principles of book keeping of;

1. Double entry system
2. Single Entry System
3. Both (a) & (b)
4. None of these 

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34.In Single Entry System profit is calculated as follows: 

1. Capital in start + Drawing + Fresh capital introduced Capital at the end      
2. Capital at the end + Drawing Fresh Capital introduced — Capital in the  beginning
3. Capital at the end + Drawings — Fresh Capital introduced — Capital in the beginning
4. Opening capital + Drawings + Fresh Capital introduced – closing capital

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35. We can find out the net worth (capital) of the business both at the beginning & at the end of the year in Single Entry system by preparing of

1. Income statement      
2. Statement of Affairs
3. Worksheet      
4. Cash statement

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36.In appearance, the statement of Affairs, is similar to a:

1. Balance sheet
2. Profit & loss account
3. Trading account         
4. Bank reconciliation statement

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37. The excess of the assets over the liabilities as shown by the statements of the affairs will represent:

1. The capital of the firm 
2. The net profit of the firm
3. The net loss of the firm
4.  1 & 2 both

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38.Under the Single Entry System, if the capital at the end shows an increase as compared to the amount of capital at the start, the difference will represent.

1. Net loss          
2. Gross loss
3. Gross profit    
4. Net profit

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39. Under the Single Entry System, if the capital at the end is less than the capital at the beginning, the difference will represent. 

1. Net loss
2. Net profit
3. Gross profit    
4. None of these

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40.The capital in the beginning Of the accounting year is ascertained by preparing.

1. Opening statement of Affairs         
2. Total creditors Account          
3. Total debtors Account 
4. Cash account 

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41.Single entry System is most suited where,

1. Cash transactions are numerous
2. Credit transactions are numerous
3. Cash and credit transactions are more in number
4. None of the above

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42.In Single entry System, it is not possible to prepare

1. Trial balance
2. Balance sheet
3. Creditor account
4. Account sales

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43.Opening statement of affairs is usually-prepared to find out the figure of.

1. Capital in the beginning
2. Cash in the beginning
3. Profit during the year
4. Expense during the year

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44.Under single Entry system information relating to expenses must be ascertained from the analysis of:

1. Creditors account
2. Debtors account
3. Cash book
4. Sales book

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45.Under the net worth method profit is ascertained by calculating the increase in worth after adjusting for drawings and addition to:

1. Liabilities
2. Assets
3. Expenses
4. Capital
   

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46.Net worth of an organization means the excess of its total assets over total:

1. Liabilities
2. Incomes
3. Expenses       
4. Both 2 & 3

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47.If the rate of gross profit is 1/6 of the cost, it means that it is: 

1. 1/5 ofthe sales
2. 1/6 of the sales
3. 1/7 of the cost
4. 1/7 of the sales

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48.Which one of the following is most likely to have the lowest rate of stock turn?

1. A supermarket
2. A green grocer
3. A newsagent
4. A jeweller

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49.If the rate of gross profit on sales is 20% and the cost of goods sold is Rs

100000  then the amount of gross profit will be equal to:

1. Rs. 20,000      
2. Rs. 25,000     
3. Rs. 15,000
4. Rs. 35,000

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50.If the rate of gross profit on sales is 25% and the cost of goods is Rs. 75,000′ then  amount of total sales will be equal to:

1. Rs. 93,750
2. Rs. 10375
3. Rs. 100000
4. Rs. 200000

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51. If the rate of gross profit is 1/3 of the cost and the amount of sale is Rs. 3,00’000′ then the cost of goods sold will be equal to:

1. 225000
2. 300000
3. 230000
4. 200000

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52 If the rate of gross profit is 1/4 Of the cost and the amount of sales is Rs. 200’000′ then the amount of gross profit will be equal to:

1. Rs. 50,000
2. Rs  40,000
3. Rs. 30,000
4. Rs. 20,000

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53 If the capital in the beginning Rs. 15,600; capital at the end Rs. 14,000; drawings Rs. 4800; capital introduced during the year Rs. 2,000, then the profit or loss during the year, will be:

1. Rs. 1200        
2. Rs. 3200
3. Rs.2000
4. Rs. 5200

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54. If the opening capital is Rs. 20,000; capital introduced during the year Rs. 2500; profit made during the years Rs. 1500; closing capital is Rs. 20,500, then the drawings during the year, will be:

1. Rs. 4500         
2. Rs. 3500
3. Rs. 3000
4. RS. 1500

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55. What will be the closing capital, if capital in the beginning Rs. 20,200; drawings during the year Rs. 4000′, capital introduced during the year Rs. 5000; loss during the year Rs. 3500:

1. Rs. 17000
2. Rs. 17500
3. Rs. 17700
4. Rs. 20,000

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56. If the capital at the end Rs. 30,000; drawings during the year Rs. 4,700; capital introduced during the year Rs. 3,000; profit during the year Rs. 6000 then the opening capital will be:

1. Rs. 20,700
2. Rs. 25,000
3. Rs. 25,700     
4. Rs. 23,700

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57. If the sales Rs. 2,40,000; percentage of gross profit on sales 20% purchases Rs. 1,75,000; closing stock Rs. 30,000; then the opening stock will be:

1. Rs. 47,000     
2. Rs. 40,000
3. Rs. 40,500

Rs. 41,500

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58. Calculate a trader’s drawings from the following information: 

Opening capital Rs. 20,000; closing capital RS. 23,000 Net profit Rs. 5000:

1. Rs. 1000
2. Rs. 2000
3. Rs. 4000
4. Rs. 5000

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59. A store’ s markup is the: 

1. Gross profit expressed as a percentage of the cost of goods sold
2. Gross profit expressed as a percentage of the sales
3. Net profit expressed as a percentage of the cost of goods sold
4. Net profit expressed as a percentage of the sales

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60. If a store’s markup is 25%, the margin must be:

1. 5
2. 10
3. 15
4. 20

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61. a store’s margin is 40% the markup must be

1. 66.66%
2. 33%
3. 25%
4. 50%

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62. The opening & closing statements of the affairs of partnership firm are to ascertain the amount of:

1. The any one of the partner’s capital
2. The combined capitals of the partners
3. The combined profit of the partner

None of these.

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CONVERSION INTO DOUBLE ENTRY SYSTEM

63.The better method of ascertaining the profit, is to ascertain the missing information and prepare the trading results in the usual manner Is

1. Net worth method
2. Conversion method 
3. Pure single entry system
4. None of these

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64. Cash paid to creditors can be calculated from:

1. Debtor’s account
2. Creditor’s account
3. Balance sheet
4. Bill receivable account

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65. The figure for credit sales is computed form:

1. Total creditor’s account         
2. Total debtor’s account
3. Closing balance sheet
4. Opening balance sheet

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66.The figure from capital in the beginning is ascertained from:

1. Cash account
2. Total debtor’s account
3. Opening balance sheet
4. Closing balance sheet

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67.Given the opening & closing balances and cash received on account of bills receivable balance in bill receivable account will show:

1. Credit purchases
2. Credit sales
3. Cash purchases
4. Bills receivable received during the year

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68 The figures for the opening balance of creditors can be located from:

1. Cash account
2. Creditors account
3. Balance sheet at the end
4. None of these

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69. Sales are calculated by adding:

1. Cash sales and cash received form the debtors
2. Credit sales and cash received from the debtors
3. Cash sales and credit sales
4. None of these

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70. Bills receivable received during the year are credited to:

1. Bill receivable account           
2. Debtor’s account
3. Creditors account      
4. Both 3 & 4

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71Bills receivable endorsed are debited to:

1. Bill receivable account           
2. Debtor’s  account
3. Creditors account
4. None of these

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72  Bills payable honoured during the year will be debited to:    

1. Cash account   
2. Bill payable account
3. Creditor’s account   
4. Bill receivable account 
   

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73 Bills payable dishonoured during the year will be credited to:

1. Cash account   
2. Bill payable account
3. Bill receivable account   
4. Creditor’s account

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74 Under the conversion method of single entry credit sales are ascertain preparing the:

1. Total debtors account         
2. Total creditors account
3. Total cash account
4. Total bill payable account

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75 Acceptances received during the period must be debited to bills received account and credited to:

1. Total bill receivable account
2. Total debtors account
3. Creditor’s account      
4. None of these

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76. Bill receivable as endorsed dishonoured are debited to:

1. Debtor’s account   
2. Bill receivable account
3. Creditor’s account   
4. Bills payable account

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77.Bad debts written-off always affect the

1. Debtor’s account   
2. Creditor’s account    
3. Cash account   
4. None of these

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78.Cash received from debtors needed for the construction of cash account, cash be had from:

1. Total debtors account
2. Balance Sheet
3. Analysis of cash book     
4. Pass book

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(79) Given the opening and closing balances of debtors and the figure of credit sales,  the balancing figure of total debtors:

1. Bill retired during the year   
2. Cash received from debtor
3. Closing balance of bills receivable
4. Bills receivable received during the year

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80.The closing balance of trade debtors can be located from:

1. Total debtors account
2. Balance sheet
3. Bills receivable account   
4. Cash book

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81. Under the conversion method of single entry credit purchases are ascertained by preparing the:

1. Cash account
2. Debtor’s account
3. Creditor’s account
4. Bill receivable account

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82.The figure for cash received from debtors can be located either from cash

1. Debtor’s account     
2. Balance sheet
3. Bills receivable account
4. Bills payable account

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83.If sales Rs. 240,000 percentage of gross profit on sales 20%; purchases Rs. 175,000; closing stock Rs. 30,000 what will be the opening stock:

1. Rs. 47,000     
2. Rs. 60,000
3. Rs. 48,000      
4. Rs. 77,000

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84.If opening stock Rs. 15,000 sales Rs. 180000 Cash purchases Rs. 40,000; credit purchases Rs. 1,00,000; wages Rs. 5000; percentage of gross profit on cost 20%; then the stock at the end will be: 

1. Rs. 30,000
2. Rs. 43,000
3. Rs.10000
4. Rs. 20000

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85.If cost of goods sold Rs. 150000  Rate of gross profit on cost 20%; the sales

1. Rs. 80,000
2. Rs. 180000
3. Rs. 100000
4. Rs.  200000

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86. If cost of goods sold  Rs.150000 and rate of gross profit on sale is 20%

1. Rs100000
2. Rs200000
3. Rs180000
4. Rs187500

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87. Cost of goods sold Rs.150000 ,Rate of gross loss on sale is 20%:

1. Rs125000
2. Rs110000
3. Rs200000
4. Rs120000

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88.acceptance  issue During the period must be debited to total creditors account and

Debited to;

1. Bill payable account
2. Bills receivable account
3. Cash account 
4. Debtors account

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89.If the cash sales are the missing figures they are to be ascertained by the construction of:

1. Debtors account
2. Creditors account
3. cash account
4. None of these
   

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90.If the cash purchases are the missing figures, they are to be ascertained by the

1. Debtors account
2. Creditors account
3. cash account
4. None of these

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