Incomplete Records

MCQs
1. If opening capital is ₹70,000 and closing capital is ₹90,000, what is the amount of profit or loss?
[Study Mat]
a) ₹20,000 Profit
b) ₹20,000 Loss
c) ₹70,000 Loss
d) ₹90,000 Profit

Answer : a)

2. Opening and Closing balance of Debtors are ₹30,000 and ₹40,000, respectively. Cash collected
from debtors ₹2,40,000. Discount allowed is ₹15,000 for prompt payment. Bad Debts ₹10,000.
The total goods sold on credit are _______________ [MQP J25]
a) ₹2,55,000
b) ₹2,45,000
c) ₹2,95,000
d) ₹2,75,000

Answer : d)

3. If average inventory is ₹1,25,000 and closing inventory is ₹10,000 less than opening inventory
then the value of closing inventory will be: [MQP J25]
a) ₹1,35,000
b) ₹1,15,000
c) ₹1,30,000
d) ₹1,20,000

Answer : d)
 4. From the following details estimate the capital as on 31.03.2024, [MQP D24]
Capital as on 01.04.2023 ₹ 4,10,000.
Drawings ₹ 40,000
Profit during the year ₹ 50,000
a) ₹ 4,10,000
b) ₹ 4,50,000
c) ₹ 4,20,000
d) ₹ 4,00,000

Answer : c)

5. If Capital on 01.01.2023 was ₹24,000. Capital on 31.12.2023 was ₹12,000. Profit /(Loss) during
the year was ₹6,000 and Fresh Capital introduced was ₹1,200 Then the amount of drawings was
[MCQ Bank]
a) ₹ 7200
b) ₹ 12000
c) ₹ 25200
d) ₹ 19200

Answer : d)

6. Opening Debtors, Collection from Debtors and Discount Allowed were ₹3,15,000; ₹18,30,000
and ₹35,000, respectively. If the closing debtors were 20% of credit sales of the period then
closing debtors and credit sales would be _____________________. [MCQ Bank]
a) ₹3,51,667 and ₹17,58,333
b) ₹3,63,333 and ₹18,16,667
c) ₹3,87,500 and ₹19,37,500
d) ₹3,10,000 and ₹ 15,50,000

Answer : c)

7. Opening and Closing balance of Debtors are ₹30,000 and ₹40,000, respectively. Cash collected
from debtors ₹2,40,000. Discount allowed is ₹15,000 for prompt payment. Bad Debts ₹10,000.
The total goods sold on credit are _______________. [MCQ Bank]
a) ₹ 255,000
b) ₹ 245,000
c) ₹ 295,000
d) ₹ 275,000

Answer : d)
 8. A firm had a Capital Balance of ₹ 1,00,000 at the beginning of a year. At the end of the year, the
firm has total assets of ₹1,50,000 and total liabilities of ₹70,000. If the total withdrawals during
the period were ₹30,000, what was the amount of net profit/net loss for the year? [PYQ D24]
a) ₹10,000 profit
b) ₹20,000 loss
c) ₹50,000 loss
d) ₹10,000 loss

Answer : a)

9. Which of the following is fixed asset? [PYQ D24]

a) Plant and machinery
b) Stock
c) Debtors
d) Cash

Answer : a)

10. A Trial balance as at 31st December contains the following information: 12% Bank loan ₹50,000,
Interest paid ₹3,800, Interest debited to the Profit and Loss Account is: [PYQ D24]
a) ₹ 6,000
b) ₹ 2,200
c) ₹ 9,800
d) ₹ 4,800

Answer : a)

11. If capital at the end of the year is 60,000, drawings for the year are 80,000, capital introduced
during the year is 40,000, and loss for the year is ₹1,20,000, then the capital at the beginning of
the year was? [PYQ J25]
a) ₹1,80,000
b) ₹1,60,000
c) 1,40,000
d) 20,000

Answer : a)

12. A and B purchased a piece of land for ₹ 30,000 and sold it for ₹60,000 in 2023. Originally A had
contributed ₹ 12,000 and B ₹ 8,000. The profit on venture will be-

a) ₹ 30,000
 b) ₹ 20,000
c) ₹ 60,000
d) Nil
Answer : a)

13. Nidhi started her business with capital of ₹45,000 on 1st January, 2023. Interest on drawings
₹5,000 and interest on capital ₹2,000 were appearing in the Profit and Loss A/c for the year ended
31st December, 2023. Nidhi withdrew ₹14,000 during the year and profit earned during the year
amounted to ₹15,000. Her capital on 31st December, 2023 is-

a) ₹ 67,000
b) ₹ 47,000
c) ₹ 45,000
d) ₹ 43,000
Answer : d)

14. Credit purchase can be ascertained by preparing-

a) Debtors Account
b) Creditors Account
c) Any of above
d) None of the above
Answer : b)

15. In case of net worth method, profit is determined by

a) Preparing a trading and profit and loss account.
b) Comparing the capital in the beginning with the capital at the end of the accounting period.
c) Comparing the net assets in the beginning with the net assets at the end of the accounting period.

Answer : b)

16. Single entry system can be followed by

a) Small firms.
b) Joint stock companies.
c) Co-operative societies.

Answer : a)
 17. Closing capital is calculated as
a) Opening capital +Additional capital -Drawings.
b) Opening capital +Additional capital –Drawings + Profit.
c) Opening capital +Additional capital +Drawings - Profit.

Answer : b)

18. Under single entry system, only personal accounts are kept and, in some cases,
a) Cash book is maintained
b) Fixed assets’ accounts are maintained
c) Liabilities’ accounts are maintained.

Answer : a)

19. The closing capital of Mr. B as on 31.3.2022 was ₹4,00,000. On 1.4.2021 his capital was ₹
3,50,000. His net profit for the year ended 31.3.2022 was ₹ 1,00,000. He introduced ₹30,000 as
additional capital in February, 2022 Find out the amount drawn by Mr. B for his domestic
expenses.
a) ₹1,00,000;
b) ₹80,000;
c) ₹1,20,000;

Answer : b)

20. Given information:

Opening capital: ₹60,000
Drawings: ₹5,000
Capital introduced during the period: ₹10,000
Closing capital: ₹90,000
Profit earned during the period ?
a) ₹20,000
b) ₹5,000
c) ₹30,000

Answer : b)

21. Single entry system can be followed by

a) Small firms
b) Joint stock companies
c) Co-operative societies
 d) None of the option
Answer: a)

22. Single Entry System is not adopted by

a) Sole Trader
b) Partnership Firm
c) Joint Stock Company
d) All of these
Answer: c)

23. Opening Capital is ascertained by preparing

a) Total Debtors Account
b) Total Creditors Account
c) Cash Account
d) Opening Statement of Affairs
Answer: d)

24. Closing balance of Creditors is ascertained by preparing

a) Total Debtors Account
b) Total Creditors Account
c) Bills Receivable Account
d) Bills Payable Account
Answer: b)

25. Credit purchase of machinery is ₹ 64,000 which is 80% of total purchases, compute case purchase
of stationary
a) ₹ 16,000
b) ₹ 24,000
c) ₹ 8,000
d) ₹ 40,000
Answer: a)

26. Calculate the amount of credit purchases from the following information
Creditors for machinery as on 1st April,2022 - ₹ 4,600
Creditors for machinery as on 1st April, 2023 - ₹ 11,800
During the year ended 31st March,2023 payment made to creditors of ₹ 56,800
a) ₹ 54,000
b) ₹ 64,000
c) ₹ 74,000
d) ₹ 44,000
Answer: b)
 27. The capital of Mrs Katrina as on 1.4.2022 was ₹4,00,000. On 31.03.2023 her capital was
₹3,36,000. Her net profit for the year was ₹2,00,000. She introduced ₹ 30,000 as additional
capital during the year. Find out the amount drawn by Ms. Katrina for her domestic expenses if
she had drawn the Amount on 30.09.2022 and the Interest on Drawings is 10% p.a.
a) ₹ 2,94,000
b) ₹ 2,80,000
c) ₹ 2,67, 273
d) None of the above
Answer: b)

28. Mr. Monty does not maintain proper books of accounts. However, he maintains a record of his
bank transactions and also is able to give the following information:

Particulars 1.1.2022 31.12.2022

Debtors 2,05,000 -
Creditors - 92,000
Stock 1,00,000 1,25,000
Bank balance - 1,00,000
Fixed Assets 15,000 18,000

Details of his bank transactions are as follows:

Particulars Amount
Received From Debtors 6,80,000
Additional Capital Brought in 10,000
Sale of Fixed Assets (Book Value ₹ 5,000) 3,500
Paid to Creditors 5,60,000
Expenses Paid 98,500
Personal Expenses 50,000
Purchases of Fixed Assets 10,000
No cash transactions took place during the year. Goods are sold at cost plus 25%. Cost of goods sold
was ₹ 5,20,000
What shall be the Net Profit / Net Loss?
a) Net Profit ₹ 28,000
b) Net Profit ₹ 29,500
c) Net Profit ₹ 31,500
d) Net Loss ₹ 22,000
Answer: a)

29. The capital of Mr. Aditya Roy Kapoor as on 1.4.2022 was ₹5,00,000. On 31.03.2023 his capital
was ₹3,50,000. His net profit for the year was ₹2,00,000. He introduced ₹30,000 as additional
capital during the year. Find out the amount drawn by Mr. Aditya Roy Kapoor for his domestic
expenses.
a) ₹ 2,80,000
b) ₹ 3,80,000
 c) ₹ 80,000
d) ₹ 1,80,000
Answer: b)

30. Mr. Monty does not maintain proper books of accounts. However, he maintains a record of his
bank transactions and also is able to give the following information:

Particulars 1.1.2022 31.12.2022

Debtors 2,05,000 -
Creditors - 92,000
Stock 1,00,000 1,25,000
Bank balance - 1,00,000
Fixed Assets 15,000 18,000

Details of his bank transactions are as follows:

Particulars Amount
Received From Debtors 6,80,000
Additional Capital Brought in 10,000
Sale of Fixed Assets (Book Value ₹ 5,000) 3,500
Paid to Creditors 5,60,000
Expenses Paid 98,500
Personal Expenses 50,000
Purchases of Fixed Assets 10,000
No cash transactions took place during the year. Goods are sold at cost plus 25%. Cost of goods
sold was ₹ 5,20,000
What will be the opening balance of Creditors?

a) ₹ 53,500
b) ₹ 1,07,000
c) ₹ 1,53,500
d) ₹ 97,000
Answer: b)

31. Mr. Monty does not maintain proper books of accounts. However, he maintains a record of his
bank transactions and also is able to give the following information:

Particulars 1.1.2022 31.12.2022

Debtors 2,05,000 -
Creditors - 92,000
Stock 1,00,000 1,25,000
Bank balance - 1,00,000
Fixed Assets 15,000 18,000
 Details of his bank transactions are as follows:
Particulars Amount
Received From Debtors 6,80,000
Additional Capital Brought in 10,000
Sale of Fixed Assets (Book Value ₹ 5,000) 3,500
Paid to Creditors 5,60,000
Expenses Paid 98,500
Personal Expenses 50,000
Purchases of Fixed Assets 10,000
No cash transactions took place during the year. Goods are sold at cost plus 25%. Cost of goods sold
was ₹ 5,20,000
What will be the closing balance of Creditors?

a) ₹ 2,69,000
b) ₹ 3,26,000
c) ₹ 3,76,000
d) None of the above
Answer: a)

32. Mr. Monty does not maintain proper books of accounts. However, he maintains a record of his
bank transactions and also is able to give the following information:

Particulars 1.1.2022 31.12.2022

Debtors 2,05,000 -
Creditors - 92,000
Stock 1,00,000 1,25,000
Bank balance - 1,00,000
Fixed Assets 15,000 18,000

Details of his bank transactions are as follows:

Particulars Amount
Received From Debtors 6,80,000
Additional Capital Brought in 10,000
Sale of Fixed Assets (Book Value ₹ 5,000) 3,500
Paid to Creditors 5,60,000
Expenses Paid 98,500
Personal Expenses 50,000
Purchases of Fixed Assets 10,000
No cash transactions took place during the year. Goods are sold at cost plus 25%. Cost of goods sold
was ₹ 5,20,000
What will be the amount of Gross Profit?

a) ₹ 65,000
 b) ₹ 1,00,000
c) ₹ 1,20,000
d) ₹ 1,30,000
Answer: D

33. If opening capital is ₹ 60,000, drawings ₹ 5,000, capital introduced during the period ₹ 10,000,
Closing capital ₹ 90,000. The value of profit earned during the period will be
a) ₹ 20,000
b) ₹ 25,000
c) ₹ 30,000
d) ₹ 40,000
Answer: b)

34. Mr. Monty does not maintain proper books of accounts. However, he maintains a record of his
bank transactions and also is able to give the following information:

Particulars 1.1.2022 31.12.2022

Debtors 2,05,000 -
Creditors - 92,000
Stock 1,00,000 1,25,000
Bank balance - 1,00,000
Fixed Assets 15,000 18,000

Details of his bank transactions are as follows:

Particulars Amount
Received From Debtors 6,80,000
Additional Capital Brought in 10,000
Sale of Fixed Assets (Book Value ₹ 5,000) 3,500
Paid to Creditors 5,60,000
Expenses Paid 98,500
Personal Expenses 50,000
Purchases of Fixed Assets 10,000
No cash transactions took place during the year. Goods are sold at cost plus 25%. Cost of goods sold
was ₹ 5,20,000.
What shall be the amount of purchases?

a) ₹ 5,20,000
b) ₹ 5,45,000
c) ₹ 6,00,000
d) ₹ 5,00,000
Answer: b)
 35. If the rate of gross profit is 20% of sales and the cost of goods sold is ₹1,00,000, the amount of
gross profit will be
a) ₹ 20,000
b) ₹16,667
c) ₹25,000
d) ₹30,000
Answer: c)

36. If the rate of gross profit is 1/4 of cost of goods sole and sales are ₹ 2,00,000, the amount of gross
profit will be
a) ₹ 40,000
b) ₹ 50,000
c) ₹ 66,667
d) ₹ 60,000
Answer: a)

37. Opening Trade receivables ₹10,200

Cash Received from trade receivable during the year

(as per cash book) ₹ 30,400

Returns Inwards ₹ 2,700
Bad debts ₹ 1,200
Trade receivables at end ₹ 13,800
Cash Sales (As per cash book) ₹ 28,400
Total Sales will be:

a) ₹ 66,300
b) ₹ 66,000
c) ₹ 65,000
d) ₹ 66,500
Answer: a)