Ch. #2 ACCOUNTS FROM INCOMPLETE RECORD

Chapter # 2 ACCOUNTS FROM INCOMPLETE RECORD Q.1: Calculate Gross Profit if sales for the year is 200,000 G.P. ratio is 20% of sales? Ans: Gross Profit = 200,000 x 20/100G.P. = 40,000 Q.2: Calculate Gross Profit if cost of goods sold for the year is 300,000 and G.P ratio is 1/4 of Cost? Ans: G.P = 300,000 x 1/4G.P = 75,000 Q.3: If the rate of gross profit is 1/4 of the cost and the amount of sales I Rs. 300,000, Calculate the amount of profit? Ans: G.P      = 300000 x 1/5= 60,000 Q.4: Calculate the amount of Gross Profit, if the G.P. rate is 1/5 of sales and the amount of Cost of goods sold is Rs. 200,000? Ans: G.P      = 200000 x 1/4         = 50,000 Q.5: Calculate the sales if cost of goods sold is Rs. 200,000 rate of gross profit is 20% on sale? Ans: Gross profit   = 200,000 x 1/4= 50,000 Sales = Cost + gross profit = 200,000 + 50,000 Sales = 2,50,000 Q.6 Calculate cost of goods sold if the rate of gross profit is 1/3 of cost and amount of sales is Rs. 600000? Ans: Gross Profit   = 6000,00 x 1/4G.P                  = 150,000 Cost = Sales – G.P Cost of goods sold = 600000 – 150000 Cost = 450000 Q.7: Calculate cost of goods sold if the rate of gross profit is 1/3 of sales and amount of sales is Rs. 6000,000? Ans: G.P      = 600,000 x 1/3G.P      = 200,000 Cost = Sales – Gross Profit Cost of goods sold:   600,000 – 200,000 C.G.S. = 400,000 Q.8: Calculate the sales, if cost of goods sold is Rs. 200,000 Rate of gross profit is 20% of cost? Ans: G.P      = Cost x Rate= 200,000 x 1/5 G.P.                 = 40000 Sales   = Cost + G.P = 200,000 + 40000 Sales = 240,000 Q.9: Calculate sales, if cost of goods sold is Rs. 300,000 Rate of gross loss is 20% on sales? Ans: Gross Loss = Cost x Rate= 300,000 x 1/6 = 50,000 Sales   = Cost – Gross Loss = 300000 – 50,000 Sales   = 250,000 Q.10: Calculate cost of goods sold if sales is Rs. 300,000. Rate of Gross loss is 20% of cost? Ans: Gross Loss = Sales x rate= 300,000 x 1/4 = 75,000 Cost of goods sold = Sales + Gross loss = 300,000 + 75000 = 375,000 Q.11: If the capital at the end is Rs. 50,000, drawings during the year 8000 Capital introduced during the year Rs. 6000. Profit during the year Rs. 15,000.Calculate the amount of opening capital? Ans: Capital at the end + Drawings – Additional capital introduced opening capital = Net Profit.50,000 + 8000 – 6000 -15000 = 37000 (Opening Capital) Q.12: Calculate the additional capital introduced if opening capital Rs. 37000, closing capital is Rs. 50,000, drawings during the year Rs. 8000, Profit for the year Rs. 15000? Ans: 50,000 + 8000 – 37,000 – 15000 = 6000capital Introduced during the year = 6000 Q.13: Calculate the drawings if opening capital is Rs. 37000 closing capital Rs. 50,000, Capital introduced during the year Rs. 6000 Profit for the year is Rs. 15,000? Ans: 50,000 – 6000 – 37000 – 15000 = 8000Drawings =     8000 Q.14: Calculate the closing capital is opening capital is Rs. 37000 Drawings Rs. 8000, Capital introduced during the year 6000 Profit for the year is Rs. 15,000? Ans: Drawings – Capital Introduced – opening capital – profit closing capital.8000 – 6000 – 37000 – 15000 = 50,000 (Closing Capital) Q.15: Calculate the Net Profit if opening capital is Rs. 37000 Closing capital Rs. 50,000, Drawings Rs. 8000, Fresh capital introduced Rs. 6000? Ans: Closing capital + Drawings – Fresh capital – opening capital = Net Profit50000 + 8000 – 6000 – 37000 = 15,000. Q.16: Calculate the opening capital if closing capital is Rs. 50,000 Drawings Rs. 8000, Fresh capital introduced Rs. 6000 & Net loss for the year Rs. 15000? Ans: Closing capital + Drawing – Fresh capital + Net loss = Opening capital50,000 + 8000 – 6000 + 15000 = 67,000 Opening capital = 67,000 Q.17: Calculate the closing stock if opening stock if opening stock is Rs. 30,000 Sales 360,000 Cash purchases 80,000, Credit purchases 200,000, wages Rs. 10,000, Percentage of gross profit on cost is 20%? Ans: Sales + closing stock – Purchases – Direct expenses – openig stock G.P. = 360,000 + NIL – 280000 – 10,000 – 30000 – 60000 = 20,000 closing stock             = 20,000 Q.18: Define single entry system of book keeping? Ans: A system of accounting is which records are not kept strictly according to the double entry principles of book keeping is called single entry system. Q.19: What are different classes of single entry accounting system? Ans: A single entry system can be classified into the following three categories. Q.20: Define pure single entry system? Ans: An accounting system under which only personal accounts are kept. No records are kept for real or nominal accounts is called pure single entry system. Q.21: Define simple single entry system? Ans: An accounting system under which personal accounts as well cash book is kept is called simple single entry system. Q.22: Define Quasi single entry system. Ans: An accounting system under which personal accounts, cash book and some other subsidiary books are kept is called quasi single entry system. Q.23: Give any three characteristics of single entry system? Ans: i)                   This system is mixture of:a) Double Entry         b) Single Entry           c) No Entry ii)                Limited company cannot keep accounts under single entry system. Q.24: Define “Statement of affairs” under net worth method? Ans: A statement of all assets, liabilities and capital which is prepared from incomplete records is called a statement of affairs. Q.25: Write the fundamental balance sheet equation? Ans: Capital = Assets – Liabilities Q.26: Give distinction between statement of affairs and balance sheet? Ans: A statement of affairs is a statement of assets, liabilities and capital which is prepared from incomplete records whereas a balance sheet is a statement of assets, liabilities and capital which is prepared from ledger balances maintained under double entry system. Q.27: What is the formula for determination of net profit under net worth method? Ans: Net profit – [Ending capital + drawings – additional capital introduced – beginning capital]. Q.28: If credit sales are Rs. 36,000, cash received from debtors is Rs. 32,900, closing balance of debtors is Rs. 9160. Find the opening balance of debtors? Ans: Total Debtors Account DETAILS RS. DETAILS RS. Opening debtors (Balancing figure) 6060 Cash 32,900 Credit sales 36000 Closing debtors 9160 42060 42060 Q.29: If value of credit sales is Rs. 36,000, opening debtors is Rs. 6060, Discount allowed Rs. 310, Find the amount of cash received from debtors? Ans: Total Debtors Account DETAILS RS. DETAILS RS. Opening debtors 6060 Bad discount 600 Sales (Credit) 36000 Discount allowed 310 Cash (Balancing figure) 31,990 Closing debtors 9160 42060 42060 Q.30: If value of opening debtors is Rs. 6060, cash received from debtors is Rs. 31990, closing balance of debtors is Rs. 9160, Bad debts Rs. 600, return inward Rs. 310. Find the missing figure of credit sales? Ans: Total Debtors Account DETAILS RS. DETAILS RS. Opening debtors 6060 Bad discount 600 Credit sales .balancing figure. 36000 Return inwards 310 Cash received from debtors 31,990 Closing debtors 9160 42060 42060 Q.31: If total sales is 330,000 & cash sales is 35% of total sales. Calculate the amount of credit sales? Ans: Credit sales    = total sales – cash sales= 330,000 – 35% Rs. 330,000 = 330,000 – 115,500 Cash sales      = 214,500

Click here for Multiple Choice Questions  Ch # 2. ACCOUNTS FROM INCOMPLETE RECORD