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Question
Write the word / term / phrase which can substitute the following Statement.
The method in which Trading Account, Profit and Loss Account and Balance Sheet can be prepared.
Solution
Double entry system
Explanation: Under double-entry system, Trading Account, Profit & Loss Account and Balance Sheet form part of financial statements. Hence, both of these are prepared at the end of accounting period.
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RELATED QUESTIONS
Under single entry system it is not possible to prepare trial balance.
Write the word / term / phrase which can substitute the following Statement.
A system of book-keeping in which both the aspects of transaction are recorded.
Write the word / term / phrase which can substitute the following Statement.
The system of accounting which is most scientific and reliable.
Select the most appropriate answer the alternatives given below and rewrite the Sentence.
Under Single Entry System Opening Capital = Opening Assets Less _____________.
State True or False.
All transactions are recorded in Single Entry System.
State True or False.
Arithmetical accuracy can’t be checked in single entry.
State True or False.
Only cash transactions and personal transactions are recorded in Single entry.
State True or False.
Double Entry System is scientific method of maintaining books of accounts.
State True or False with reasons:
Double Entry System of Book-keeping is scientific method of books of accounts
Fill in the blank:
In _________Book Keeping System, in every business transaction we find two effects.
