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Accountancy · Class 12 Commerce

Ch 1Accounts from Incomplete Records — Class 12 Accountancy, concept-first.

Every business is required, in principle, to record its transactions on the double entry system — every transaction affecting two accounts, so that a Trial Balance can be extracted and the books proved arithmetically correct.

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Key concepts

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Single Entry System and Incomplete Records

Incomplete Records refer to any set of books that departs from the full double entry system — typically only a cash book and personal accounts (debtors and creditors) are maintained, while real accounts (assets) and nomi…

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Chapter contents

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1

Meaning and Features of Incomplete Records (Single Entry System)

Every business is required, in principle, to record its transactions on the double entry system — every transaction affecting two accounts, so that a Trial Balance can be extracted and the books prove…

2

Single Entry vs Double Entry System, and Limitations of Single Entry

Because Single Entry keeps only a fraction of the accounts that Double Entry requires, the two differ sharply in reliability, cost, and what they can be used for.

3

Statement of Affairs Method — Ascertaining Profit through Capital Comparison

When a trader keeps incomplete records but still wants to know roughly how much profit the business made in a year, the simplest technique available is to compare the trader's capital at the start of…

4

Ascertaining Missing Figures — Total Debtors, Total Creditors, Bills and Cash Summary

The Statement of Affairs method gives only the overall profit figure — it says nothing about individual missing numbers such as credit sales, credit purchases, or drawings, which a trader with incompl…

5

Conversion Method — Converting Single Entry into Double Entry

The Conversion Method is the systematic process of taking a trader's incomplete records and reconstructing from them a proper Trading and Profit and Loss Account and Balance Sheet — exactly as if the…

Exercises

+Show 5 questions5 questions
  1. Q1Distinguish between the Single Entry System and the Double Entry System of book-keeping.Free
  2. Q2State the limitations (demerits) of the Single Entry System of accounting.Free
  3. Q3What is a Statement of Affairs? How does it differ from a Balance Sheet prepared under the Double Entry System?Preview
  4. Q13From the following details relating to Bills Payable, find the amount of bills accepted during the year ended 31.3.2023: Opening Bills Payab…Preview
  5. Q14Explain the purpose of a Memorandum Trading Account. Under what circumstances would an accountant prepare one instead of an ordinary Trading…Preview

Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 36 questions36 questions
  1. Q1Statement of affairs is generally prepared to find out the ________ of the business. (a) Profit or loss (b) Financial position (c) Capital (…Preview
  2. Q2Closing Capital + Drawings - Additional Capital = ________. (a) Adjusted Opening Capital (b) Opening Capital (c) Profit or Loss (d) Adjusted…Preview
  3. Q3Which accounting system may be suitable for small sized sole traders and partnership firms ? Explain.Preview
  4. Q4From the following details, calculate the missing figure : | Particulars | ₹ | | --- | --- | | Capital as on 31st December 2018 | 35,000 | |…Preview
  5. Q5From the following particulars, calculate total purchases : | Particulars | ₹ | | --- | --- | | Sundry creditors on 1st January 2018 | 30,00…Preview
  6. Q6(a) Ananth does not keep his books under double entry system. Find the profit or loss made by him for the year ending 31st March 2019. | Par…Preview
  7. Q7(a) From the following particulars, calculate total sales. | Particulars | ₹ | | --- | --- | | Debtors on 1st April 2017 | 1,50,000 | | Bill…Preview
  8. Q8Statement of affairs is a ________. (a) summary of cash transactions (b) statement of income and expenditure (c) summary of credit transacti…Preview
  9. Q9The excess of assets over liabilities is ________. (a) capital (b) loss (c) profit (d) cashPreview
  10. Q10What is statement of affairs ?Preview
  11. Q11From the following details find out total sales made during the year. | Particulars | ₹ | | --- | --- | | Debtors on 1st January 2018 | 1,30…Preview
  12. Q12(a) From the following particulars calculate total purchases. | Particulars | ₹ | | --- | --- | | Sundry creditors on 1st April, 2017 | 75,0…Preview
  13. Q13The amount of Capital of the proprietor, if his Assets are ₹ 5,00,000 and Liabilities are ₹ 2,00,000 : (a) ₹ 7,00,000 (b) ₹ 5,00,000 (c) ₹ 3…Preview
  14. Q14The Excess of Assets over Capital is : (a) Liabilities (b) Loss (c) Profit (d) CashPreview
  15. Q15State the accounts generally maintained by a small sized sole trader when double entry accounting system is not followed.Preview
  16. Q16From the following particulars ascertain profit or loss. | Particulars | ₹ | | --- | --- | | Capital as on 1st January 2021 | 2,60,000 | | C…Preview
  17. Q17What are the differences between double entry system and incomplete records ?Preview
  18. Q18(a) On 1st April 2018 Subha started her business with a capital of ₹ 1,20,000. She did not maintain proper books of accounts. Following part…Preview
  19. Q19(a) From the following particulars, calculate total sales. | Particulars | ₹ | Particulars | ₹ | | --- | --- | --- | --- | | Debtors on 1st…Preview
  20. Q20The amount of capital of the proprietor, if his Assets are ₹ 85,000 and Liabilities are ₹ 21,000 : (a) ₹ 21,000 (b) ₹ 85,000 (c) ₹ 64,000 (d…Preview
  21. Q21The amount of credit sales can be computed from : (a) Bills receivable account (b) Total debtors account (c) Bills payable account (d) Total…Preview
  22. Q22From the following details, calculate the Capital as on 31st December 2018. | Particulars | ₹ | | --- | --- | | Capital as on 1st January, 2…Preview
  23. Q23Differentiate between Statement of affairs and Balance Sheet.Preview
  24. Q24(a) On 1st April 2017, Ganesh started his business with a capital of ₹ 75,000. He did not maintain proper books of accounts. Following parti…Preview
  25. Q25Closing balance of debtors ₹ 20,000, Cash received ₹ 1,40,000, Credit sales ₹ 1,20,000 Opening balance of debtors : (a) ₹ 20,000 (b) ₹ 30,00…Preview
  26. Q26The excess of Assets over Liabilities is : (a) Loss (b) Cash (c) Profit (d) CapitalPreview
  27. Q27From the following details, calculate the missing figure. | Particulars | ₹ | | --- | --- | | Capital as on 1st April 2023 | 40,000 | | Capi…Preview
  28. Q28What are the limitations of incomplete records ?Preview
  29. Q29(a) David does not keep proper books of accounts. Following details are given from his records. | Particulars | 1.4.2023 ₹ | 31.3.2024 ₹ | |…Preview
  30. Q30Incomplete records are generally maintained by : (a) Small sized Sole trader business (b) A Company (c) Multinational enterprises (d) Govern…Preview
  31. Q31Wages account comes under which of the following heads ? (a) Indirect incomes (b) Direct incomes (c) Indirect expenses (d) Direct expensesPreview
  32. Q32What is the amount of Capital of the Proprietor, if his Assets are ₹ 90,000 and Liabilities are ₹ 26,000 ? (a) ₹ 21,000 (b) ₹ 85,000 (c) ₹ 6…Preview
  33. Q33What is a statement of affairs ?Preview
  34. Q34Following are the balances in the books of Thomas as on 31st March 2019. | Particulars | ₹ | Particulars | ₹ | | --- | --- | --- | --- | | S…Preview
  35. Q35(a) Ambiga does not keep her books under double entry system. Find the Profit or Loss made by her for the year ending 31st March, 2018. | Pa…Preview
  36. Q36(a) From the following particulars, calculate Total Sales. | Particulars | ₹ | Particulars | ₹ | | --- | --- | --- | --- | | Debtors on 1st…Preview

More questions

+Show 9 questions9 questions
  1. Q4From the following information relating to a trader's business, ascertain the profit or loss for the year ended 31st March 2023 using the Ca…Free
  2. Q5A trader could not maintain proper sales records. From the following details, ascertain the Credit Sales for the year by preparing a Total D…Free
  3. Q6From the following particulars, ascertain the Credit Purchases for the year by preparing a Total Creditors Account: Opening Creditors (1.4.2…Free
  4. Q7A trader accepts bills receivable from customers. From the following information, find the amount of Bills Receivable received (drawn) durin…Preview
  5. Q8From the following Cash and Bank Summary for the year ended 31.3.2023, ascertain the Drawings made by the proprietor during the year, drawin…Preview
  6. Q9Mr. Kumar keeps his books on the Single Entry System. From the following details for the year ended 31.3.2023, prepare the Total Debtors Acc…Preview
  7. Q10A trader's closing stock could not be physically verified at the year end. From the following figures for the year ended 31.3.2023, ascertai…Preview
  8. Q11Mrs. Devi does not maintain double entry books. From the following details for the year ended 31.3.2023, prepare the Trading and Profit and…Preview
  9. Q12From the following information relating to the business of Mr. Selvam for the year ended 31st March 2023, ascertain (a) the Credit Purchases…Preview