SINGLE ENTRY ACCOUNTING SYSTEM

1. When closing capital is greater than opening capital it denotes ______

a. Profit

b. Loss

c. No Profit, No Loss

d. Asset

2. Generally incomplete records are maintained by ______
a. Trader

b. Company

c. Society

d. Government

3. The capital in the beginning of the accounting year is ascertained by preparing ________

a. Receipt and Payment Account

b. Cash Account

c. Opening Statement of Affairs.

d. Statement of Profit or Loss

4. Under Single Entry System only ________

a. Personal Accounts are opened

b. Real Accounts are opened

c. Nominal Accounts are opened

d. Real and Nominal accounts are opened.

5. The Capital balances are ascertained by preparing _________

a. Statement of Affairs

b. Cash account

c. Drawing Account

d. Debtors account

6. Further Capital introduced during the year is ________ from closing capital in order to find out the correct profit.

a. added

b. deducted

c. divided

d. ignored

7. In statement of Profit or Loss interest on capital is shown as _______

a. addition

b. subtraction

c. ignored

d. multiplied

8. If opening capital is Rs. 40,000, closing capital is Rs. 90,000, withdrawal is Rs. 5,000 and additional capital brought in is Rs. 10,000, Profit is Rs. __________

a. 45,000

b. 55,000

c. 35,000

d. 75,000

9. Under Single Entry System, Opening Capital = Opening Assets Less ____________

c. closing assets

b. opening liabilities

c. opening assets

d. closing liabilities

10. In __________ book – keeping system, in every business transactions we find two accounts.

a. Single Entry

b. Double Entry

c, Triple Entry

d. Fixed Instalment.