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प्रश्न
Write the word / term / phrase which can substitute the following Statement.
The accounting method in which profit is calculated by comparing opening and closing statements of affairs.
उत्तर
Net Worth Method
Explanation: Under single-entry system, profit or loss is calculated by comparing capital at two dates, i.e. opening capital and closing capital. The profit is calculated as closing capital less opening capital and also, the following adjustments are made:
a. Drawings: If drawings are made during the year, they should be added to the amount of closing capital.
b. Additional capital: If additional capital is introduced in the business during the year, it should be deducted from the amount of closing capital.
c. Interest on capital: If interest is provided on capital, it should be deducted from the amount of closing capital.
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संबंधित प्रश्न
Which accounts are normally kept under single entry system?
Answer the following question in one sentence only.
What is single entry system?
Answer in one sentence only.
Which type of transactions are recorded in Single Entry System?
Answer in one sentence only.
Why is it difficult to ascertain the correct profit or loss under Single Entry system?
Answer in one sentence only.
Which types of accounts are normally not kept under Single Entry System?
Write the word / term / phrase which can substitute the following Statement.
A system of accounting which is not scientific.
Write the word / term / phrase which can substitute the following Statement.
Name the method in which only cash and personal transactions are recorded.
Write the word / term / phrase which can substitute the following Statement.
System of accounting normally suitable to small business organization.
Select the most appropriate answer the alternatives given below and rewrite the Sentence.
Under Single entry System only _______________.
State True or False.
Single Entry System is based on certain rules and principles.
State True or False.
Single Entry System is not useful for large business.
