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Question
State True or False.
Under Single Entry System it is not possible to prepare Trial Balance.
Options
True
False
Solution
True
Explanation:As incomplete records are maintained under this system, it is not possible to prepare a Trial Balance. Only transactions related to cash and personal accounts are recorded under single-entry system, while transactions related to real and nominal accounts are ignored. Hence, it is difficult to prepare a Trial Balance.
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RELATED QUESTIONS
A statement similar to balance sheet.
The capital in the beginning of the accounting year is ascertained by preparing ______________
(b) company
(c) society
(d) government
| Particulars | 31.3.2011 Amount (Rs) | 31.3.2012 Amount (Rs) |
| Cash at Bank | 10,000 | 64,000 |
| Sundry debtors | 50,000 | 80,000 |
| Stock in Trade | 60,000 | 10,0000 |
| Furniture | 40,000 | 40,000 |
| Machinery | 1,00,000 | 1,00,000 |
| Bills Payable | 10,000 | 10,000 |
| Sundry Creditors | 30,000 | 40,000 |
Mrs. Asha withdrew from business Rs. 30,000 for personal use. She further introduced fresh capital of Rs. 50,000.
Depreciation is to be charged @ 10% p.a. on furniture and machinery.
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(a) Statement of affairs as on 31.3.2011
(b) Statement of affairs as on 31.3.2012
(c) Statement of Profit or Loss for the year ending 31.3.2012.
Answer in one sentence only.
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Answer in one sentence only
In which method statement of affairs is prepared?
Answer in one sentence only.
Which type of accounts are maintained under Single Entry System?
Answer in one sentence only.
Which Statement is prepared under the Single Entry System to ascertain profit?
Write the word / term / phrase which can substitute the following Statement.
A statement similar to Balance Sheet.
Write the word / term / phrase which can substitute the following Statement.
A statement similar to Balance Sheet prepared to ascertain the amount of closing capital.
Write the word / term / phrase which can substitute the following Statement.
A statement similar to Balance Sheet.
Write the word / term / phrase which can substitute the following Statement.
When Closing Capital is greater than Opening Capital it denotes ___________
Write the word / term / phrase which can substitute the following Statement.
Generally incompleted records are maintained by _____________
Select the most appropriate answer the alternatives given below and rewrite the Sentence.
The capital in the beginning of the accounting year is ascertained by preparing_____________.
Select the most appropriate answer the alternatives given below and rewrite the Sentence
The Capital balances are ascertained by preparing _______________.
State True or False.
Statement of profit is just like Profit and Loss Account.
State True or False.
Under Single Entry System it is not possible to prepare Trial Balance.
Mrs. Sunita keeps her books on Single entry System and gives the following information:
| Particulars | 01.04.2015 Amount |
31.03.2016 Amount |
| Cash at bank | 10,000 | 64,000 |
| Debtors | 50,000 | 80,000 |
| Stock | 60,000 | 1,00,000 |
| Plant | 40,000 | 40,000 |
| Building | 1,00,000 | 1,00,000 |
| Bills payable | 10,000 | 10,000 |
| Creditors | 30,000 | 40,000 |
Additional Information:
Mrs. sunita withdrew from business Rs. 30,000 for personal use. She further introduced fresh capital of 50,000. Depreciation is to be charged @10% p.a on plant and building.
Prepare:
(a) Statement of Affairs as on 01.04.2015
(b) Statement of Affairs as on 31.03.2016
(c) Statement of Profit or Loss for the year ending 31.03.2016
