12th Accountancy - Book Back Answers - Unit 1 - English Medium Guides ~ Kalvi Tips

12th - Accountancy - Book Back Answers - Unit 1 - English Medium

Tamil Nadu Board 12th Standard Accountancy - Unit 1: Book Back Answers and Solutions

This post covers the book back answers and solutions for Unit 1 – from the Tamil Nadu State Board 12th Standard Accountancy textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

By going through this material, you’ll gain a strong understanding of Unit 1 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

1 Mark Questions: Choose the correct answer,
2 Mark Questions: Very Short Answer Questions
3, 4, and 5 Mark Questions: Short Answer Questions, Excercises

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 12th students! Prepare well and aim for top scores. Thank you!

Topic: Unit 1 : Accounts From Incomplete Records

I. Choose the correct Answer

Question 1.
Incomplete records are generally maintained by …………….
(a) A company
(b) Government
(c) Small sized sole trader business
(d) Multinational enterprises
Answer Key:
(c) Small sized sole trader business

Question 2.
Statement of affairs is a …………….
(a) Statement of income and expenditure
(b) Statement of assets and liabilities
(c) Summary of cash transactions
(d) Summary of credit transactions
Answer Key:
(b) Statement of assets and liabilities

Question 3.
Opening statement of affairs is usually prepared to find out the …………….
(a) Capital in the beginning of the year
(b) Capital at the end of the year
(c) Profit made during the year
(d) Loss occurred during the year
Answer Key:
(a) Capital in the beginning of the year

Question 4.
The excess of assets over liabilities is …………….
(a) Loss
(b) Cash
(c) Capital
(d) Profit
Answer Key:
(c) Capital

Question 5.
Which of the following items relating to bills payable is transferred to total creditors account?
(a) Opening balance of bills payable
(b) Closing balance of bills payable
(c) Bills payable accepted during the year
(d) Cash paid for bills payable
Answer Key:
(c) Bills payable accepted during the year

Question 6.
The amount of credit sales can be computed from …………….
(a) Total debtors account
(b) Total creditors account
(c) Bills receivable account
(d) Bills payable account
Answer Key:
(a) Total debtors account

Question 7.
Which one of the following statements is not true in relation to incomplete records?
(a) It is an unscientific method of recording transactions
(b) Records are maintained only for cash and personal accounts
(c) It is suitable for all types of organisations
(d) Tax authorities do not accept
Answer Key:
(c) It is suitable for all types of organisations

Question 8.
What is the amount of capital of the proprietor, if his assets are RS 85,000 and liabilities are RS 21,000?
(a) RS 85,000
(b) RS 1,06,000
(c) RS 21,000
(d) RS 64,000
Answer Key:
(d) RS 64,000

Question 9.
When capital in the beginning is RS 10,000, drawings during the year is RS 6,000, profit made during the year is RS 2,000 and the additional capital introduced is RS 3,000, find out the amount of capital at the end …………….
(a) RS 9,000
(b) RS 11,000
(c) RS 21,000
(d) RS 3,000
Answer Key:
(a) RS 9,000

Question 10.
Opening balance of debtors: RS 30,000, cash received: RS 1,00,000, credit sales: RS 90,000; closing balance of debtors is …………….
(a) RS 30,000
(b) RS 1,30,000
(c) RS 40,000
(d) RS 20,000
Answer Key:
(d) RS 20,000

II.Very short answer questions

1. What is meant by incomplete records?

When accounting records are not strictly maintained according to double entry system, these records are called incomplete accounting records. It is an incomplete and unscientific way of book keeping.

2. State the accounts generally maintained by small sized sole trader when double entry accounting system is not followed.

i) cash A/c ii) Personal A/c

3. What is a statement of affairs?

A statement of affairs is a statement showing the balances of assets and liabilities on a particular date. Capital = Assets – Liabilities

III. Short answer questions

1. What are the features of incomplete records?

i) Nature:

It is an unscientific and unsystematic way of recording transactions. Accounting principles and accounting standards are not followed properly.

ii) Type of accounts maintained:

cash and personal accounts are maintained fully.

iii) Lack of uniformity:

There is no uniformity in recording the transactions among different organisations.Different organisations record their transactions according to their needs and conveniences.

2. What are the limitations of incomplete records?

i) Lack of proper maintenance of records:

It is an unscientific and unsystematic way of maintaining records. Real and nominal accounts are not maintained properly.

ii) Difficulty in preparing trial balance:

As accounts are not maintained for all items. So,it is difficulty prepare trial balance.

iii) Errors and frauds cannot be detected easily:

As only partial records are available; it may not be possible to have internal checks in maintaining accounts to detect errors and frauds.

3. State the differences between double entry system and incomplete records.

Basis	Double entry system	Incomplete records
1. Recording of transactions	Both debit and credit aspects of all the transactions are recorded.	Debit and credit aspects of all the transactions are not recorded completely.
2. Type of accounts maintained	Personal, real and nominal accounts are maintained fully.	In general, only personal and cash accounts are maintained fully.
3. Suitability	It is suitable for all types of organisations.	It may be suitable for small sized sole traders and partnership firms.

4. Differentiate between statement of affairs and balance sheet.

Basis	Statement of affairs	Balance sheet
1. Objective	Statement of affairs is generally prepared to find out the capital of the business.	Balance sheet is prepared to ascertain the financial position of the business.
2.Accounting system	Statement of affairs is prepared when double entry system is not strictly followed.	Balance sheet is prepared when accounts are maintained under double entry system.
3. Reliability	It is not reliable as it is based on incomplete records	It is reliable as it is prepared under double entry system.

5. How is the amount of credit sale ascertained from incomplete records?

Dr Total Debtors A/C Cr

Particulars

To Balance b/d

To Sales A/c (credit sales)

To Bank A/c (cheque dishonoured)

To Bills receivable A/c (bills dishonoured)

xxx xxx xxx

xxx

By cash A/c

By Bank A/c (cheques received) By Discount allowed A/c

By Sales returns A/c By Bad debts A/c

By Bills receivable A/c (bills received)

By Balance c/d (closing balance)

xxx xxx xxx xxx xxx xxx

xxx

6. How is the amount of credit sale ascertained from incomplete records?

Ascertainment of Credit Sales:-

Particulars

To Balance b/d

(Opening balance)

To Sales A/c

(Credit Sales)

To Bills receivable A/C

(Bills dishonoured

XXX

By Cash A/c (received)

By Bank A/c

(cheques received)

By Discount allowed A/c

By Sales return A/c

By Bad debts A/c

By Bills receivable A/c

(bills received)

By Balance A/c

closing balance

XXX