DK Goel Solutions Class 11 Chapter 23 Accounts from Incomplete Records

1. DK Goel Solutions Class 11 Chapter 23 Accounts from Incomplete Records DK Goel Accountancy Class 11 Solutions Chapter 23 Accounts from Incomplete Records, which is laid out by master Accountancy instructors from the most recent form of DK Goel Class 11 Accountancy books. We, at Dk Goel Solutions help students to fathom every one of the hypotheses, specifically. There are various ideas in Accountancy, however the ideas of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required. DK Goel Solutions Class 11 – Chapter 23 Short Answer Questions Question 1: Write any three characteristics of Single Entry System. Solution 1: The features of the single entry system are below:— 1.) Management of personal accounts only:- Generally, only personal accounts in the books are prepared under this system and the actual and nominal accounts are overlooked.

2. 2.) Cash Book Maintenance:- In this method, a cash ledger is kept, which typically combines the proprietor’s business as well as private transactions. 3.) Dependency on Original Vouchers:- One has to rely on original vouchers to collect the necessary details. Question 2: Give any three reasons for keeping records under Single Entry System. Solution 2: The explanations for holding documents under the single entry system are below:- 1.) Basic Procedure:- It is a fast and simple method of tracking business transactions since the rules of the double entry system do not require any special expertise. 2.) Less Expensive:- In this plan, only the cash book and some of the ledger accounts are retained. As such, relative to the double entry scheme, the personnel needed to manage the accounts is therefore lower. 3.) Useful for small issues:- This strategy is most effective for small business concerns that have only cash transactions and very little assets and liabilities. Question 3: Write any three defects of Incomplete Records. Solution 3: The flaws in unfinished documents are below:— 1.) Preparation of Trail Balance not Possible:- The procedure does not document all facets of the transaction. As such, to verify the arithmetical consistency of the books of records, a trail balance cannot be planned. This raises the likelihood of misappropriation and theft. 2.) Inadequate and unscientific method:- Due to the fact that all the components, debit and credit of a transaction are not registered, the system is incomplete and unscientific. 3.) Real benefit or loss will not be determined:- Since nominal accounts are not kept, it is difficult to prepare a trade and profit and loss report and, thus, it is not possible to ascertain with fair certainty the profit gained or loss incurred during a given time. Question 4: State three points of difference between Single Entry and Double Entry System.

3. Question 5: Why do big business houses not maintain their accounts under single entry system? Solution 5: Despite the documents being missing, at the end of a given time, the businessman would like to know the trade reports also the financial status of his company. This is achieved by using one of the following two techniques:— 1.) Statement of affairs method or capital comparison method or Net worth method. 2.) Conversion into double entry method. Question 6: What is meant by Statement of Affairs? Solution 6: According to this approach, by measuring the capital at the end and the capital at the beginning of the accounting cycle, earnings are calculated. If the capital is higher than that at the outset (with the necessary adjustments) at the conclusion of the accounting period, the differential is regarded as benefit. Question 7: State three points of difference between Statement of Affairs and Balance Sheet. Solution 7:

4. Question 8: Why is Statement of Affairs not called a Balance Sheet? Solution 8: Statement of Affairs not called a balance sheet because;- Question 9: Why are drawings added to Closing Capital in a statement of profit or loss? Solution 9: Drawings are added to the closing capital on the basis that the closing capital would have expanded by this sum if the drawings had not been made. Similarly, extra money is excluded from the closing capital if the sum is deducted logically. Question 10: Write a note on method of calculating profit under Single Entry System. Solution 10:

5. It is necessary to measure the capital at the beginning of the year and again at the end of the year in order to assess benefit according to this process. Capital is determined by planning a ‘opening statement of affairs’ at the beginning and, equally, capital is calculated by preparing a ‘closing statement of affairs’ at the end. Also read - Dk Goel Solutions Class 12 Download Free study materials for your Examinations at DK goel Solutions