Mr. Shaikh Shoyab T.

Sahakar Maharshi Bhausaheb Santuji Thorat College of Arts Science and

Commerce, Sangamner

Single Entry System

1. In pure single entry which account is recorded

A. Personal.
B. . Real.
C. Nominal.
D. Asset.
ANSWER: A

2. All personal, real and nominal accounts are opened in

A. single entry system.
B. double entry system.
C. accrual system.
D. mercantile system.
ANSWER: B

3. Only personal account and cash account are opened in

A. single entry system.
B. double entry system.
C. accrual system.
D. mercantile system.
ANSWER: A

4. Trial balance can be prepared in

A. single entry system.
B. . double entry system.
C. accrual system.
D. mercantile system.
ANSWER: A

5. Trial balance cannot be prepared in_____.

A. single entry system.
B. double entry system.
C. accrual system.
D. mercantile system.
ANSWER: A
1 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
6. Balance sheet can be prepared ________.
A. in single entry system.
B. . in double entry system.
C. with the help of cash book.
D. . with the help of bank account.
ANSWER: A

7. Balance sheet cannot be prepared ________.

A. in single entry system.
B. in double entry system.
C. with the help of cash book.
D. with the help of bank account.
ANSWER: A

8. In single entry system, net worth method is also called ________.

A. double entry system
B. mercantile system.
C. statement of affairs method.
D. accrual system.
ANSWER: C

9. Difference between net worth at the beginning of the year and at the end of the year
represents
_________.
A. capital balance.
B. . cash balance.
C. pass book balance.
D. profit or loss.
ANSWER: D

10. Opening capital can be found by preparing ________.

A. cash book.
B. . bank account.
C. statement of affairs.
D. statement of bank pass book.
ANSWER: C

11. A statement of affairs is just like a _________.

A. balance sheet.
B. profit and loss account.
C. cash account.
D. trading account.
ANSWER: A

12. In statement of affairs assets are shown on the __________.

2 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
A. . right hand side.
B. left hand side.
C. . left hand side top.
D. left hand side bottom.
ANSWER: A

13. In statement of affairs liabilities are shown on the __________.

A. right hand side.
B. left hand side.
C. right hand side top.
D. right hand side bottom.
ANSWER: B

14. Under single entry system, closing capital can be found by preparing a statement of
affairs
____________.
A. at the end of the year.
B. at the beginning of the year.
C. at the end of every month.
D. at the end of every quarter.
ANSWER: A

15. Under single entry system, opening capital can be found by preparing a statement of
affairs
____________.
A. at the end of the year.
B. at the beginning of the year.
C. at the end of every month.
D. at the end of every quarter
ANSWER: B

16. Under single entry system in net worth method, drawings is added with _______.
A. opening capital. B. closing capital.
C. additional capital.
D. drawings.
ANSWER: B

17. Under single entry system in net worth method, additional capital is deducted with
__________.
A. opening capital.
B. closing capital.
C. additional capital.
D. drawings.
ANSWER: B

3 ASST. PROF. SHAIKH SHOYAB T.

M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
18. Under single entry system in net worth method, opening capital is subtracted from
_________.
A. opening capital
B. closing capital.
C. additional capital
D. drawings.
ANSWER: B

19. Under single entry system in conversion method, a total debtors account is prepared to
find out
___________.
A. credit sales.
B. . cash sales
C. credit purchases.
D. . cash purchases.
ANSWER: A

20. Under single entry system in conversion method, a total debtors account is prepared to
find out
__________.
A. credit purchases.
B. cash purchases.
C. cash purchases.
D. closing balance of debtors.
ANSWER: D

21. Debtors account is a __________.

A. personal account.
B. real account.
C. nominal account.
D. cash account.
ANSWER: A

22. Total creditors account is prepared to find out ___________.

A. credit sales.
B. . cash sales.
C. credit purchases.
D. cash purchases.
ANSWER: C

23. Total creditors account is prepared to find out _______.

A. opening balance of debtors .
B. closing balance of debtors.
C. opening balance of creditors.
D. closing balance of creditors.
ANSWER: D
4 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
24. A bills receivable account is prepared to ascertain bills _______.
A. accepted.
B. received.
C. drawn.
D. endorsed.
ANSWER: B

25. A bills payable account is prepared to ascertain bills __________.

A. . accepted.
B. received.
C. drawn.
D. endorsed.
ANSWER: A

26. Bills receivable dishonored will be posted to _______ side of debtors account
A. debit.
B. credit.
C. outside.
D. . inside.
ANSWER: A

27. Bills receivable dishonored will be posted in ___________.

A. debit.
B. credit.
C. . outside .
D. inside.
ANSWER: B

28. Transfer to creditors account will be posted in which side of debtors account
A. Debit.
B. Credit.
C. Outside.
D. Inside.
ANSWER: B

29. Transfer to creditors account will be posted in which side of creditors account
A. Debit.
B. . Credit.
C. Outside.
D. . Inside.
ANSWER: A

30. Bills payable dishonoured will be posted in which side of creditors account
A. Debit.
B. Credit.
5 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
C. Outside.
D. Inside.
ANSWER: D

31. Bills payable dishonoured will be posted in which side of bills payable account
A. Debit.
B. Credit.
C. Outside.
D. . Inside.
ANSWER: C

32. Opening balance of debtors will be posted in which side of debtors account
A. Debit.
B. Credit.
C. Outside.
D. . Inside.
ANSWER: C

33. Closing balance of debtors will be posted in which side of debtors account
A. Debit.
B. . Credit.
C. . Outside.
D. Inside.
ANSWER: D

34. Closing balance of creditors will be posted in which side of creditors account
A. Debit.
B. Credit.
C. Outside.
D. Inside.
ANSWER: A

35. Opening balance of creditors will be posted in which side of creditors account
A. Debit.
B. Credit.
C. . Outside.
D. . Inside.
ANSWER: D

36. Cash account opening balance will appear in _______.

A. debit .
B. . credit.
C. . outside.
D. . inside.
ANSWER: A

6 ASST. PROF. SHAIKH SHOYAB T.

M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
37. Cash account closing balance will appear in __________.
A. debit .
B. . credit.
C. outside.
D. . inside.
ANSWER: B

38. Bills payable account opening balance will appear in ____________.

A. . debit .
B. credit.
C. outside.
D. inside.
ANSWER: D

39. Bills payable account closing balance will appear in ____________.

A. debit .
B. credit.
C. outside.
D. . inside.
ANSWER: C

40. Bills receivable account opening balance will appear in _________.

A. debit .
B. credit.
C. outside.
D. inside.
ANSWER: A

41. Single entry system is otherwise called __________.

A. complete records
B. incomplete records.
C. pure system of accounting
D. uniform accounting.
ANSWER: B

42. Which of the following method is used to ascertain profit in single entry system?
A. .net worth method.
B. lump sum method
C. . net asset method.
D. double accounting system
ANSWER: A

43. Total debtors a/c reveals (as a balancing figure) ____________.

A. cash collected from debtors
B. credit purchase.
C. cash paid o creditors
7 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
D. closing stock.
ANSWER: A

44. Total debtors a/c does not reveal ____________.

A. credit sales.
B. opening debtors
C. closing debtors.
D. closing creditors.
ANSWER: D

45. Total creditors a/c reveals (as a balancing figure) ___________.

A. credit purchases
B. . credit sales.
C. closing stock.
D. closing debtors
ANSWER: A

46. Total creditors a/c does not reveal _______________.

A. closing stock
B. closing debtors.
C. closing creditors.
D. credit purchases.
ANSWER: A

47. Bills receivables a/c reveals ____________ as a balancing figure

A. opening B/R.
B. opening stock.
C. opening debtors.
D. opening creditors
ANSWER: A

48. Bills payables a/c reveals ____________ as a balancing figure.

A. opening B/P.
B. opening stock
C. opening debtors.
D. opening creditors
ANSWER: A

49. Capital at the beginning Rs. 8,00,000 drawings Rs. 1,80,000 capital at the end Rs.
9,00,000 Capital
introduced during the period Rs. 50,000. Net profit is _________.
A. Rs. 2,00,000.
B. . Rs. 2,30,000.
C. . Rs. 2,40,000
D. Rs. 2,45,000.
ANSWER: B
8 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
50. Cash at bank Rs. 3,000; debtors Rs. 4,000; stock Rs. 16,000; furniture Rs. 2,000 and
creditors Rs.
5,000. Find out capital

A. Rs. 12,000
B. Rs. 15,000
C. Rs. 20,000
D. Rs. 22,000.
ANSWER: C

51. Statement of affairs is prepared _________.

A. to find out trade discount
B. to calculate profit.
C. to calculate sales.
D. to ascertain capital
ANSWER: D

52. Depreciation is the process of _______.

A. valuation of assets.
B. apportionment of the cost of the asset over its useful life.
C. maintenance of assets.
D. purchasing the assets.
ANSWER: B

53. Creating a reserve is ____________.

A. optional.
B. compulsory.
C. essential.
D. statutory.
ANSWER: A

54. . Under Debtors system, the cash sales are _________.

A. debited to the branch a/c
B. credited to the branch a/c.
C. . debited to debtors a/c
D. credited to creditors a/c
ANSWER: B

55. Depreciation in the books of buyer is charged on __________.

A. hire purchase price.
B. cash price.
C. installment amount
D. down payment.
ANSWER: B

9 ASST. PROF. SHAIKH SHOYAB T.

M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
56. Balance in asset a/c will be reduced to zero in _______.
A. annuity method
B. depreciation fund method.
C. insurance policy method.
D. straight line method.
ANSWER: D

57. Under annuity method, the amount of depreciation is __________.

A. . increasing every year.
B. decreasing every year.
C. fixed for all the years.
D. change every year.
ANSWER: C

58. Profit from depreciation policy is transferred to _________.

A. depreciation fund a/c
B. . asset a/c.
C. p & l a/c.
D. liability side.
ANSWER: A

59. Interest is debited to asset a/c in ________.

A. . annuity method.
B. sinking fund method.
C. insurance policy method.
D. straight line method.
ANSWER: A

60. Sundry creditors means a person who supplies goods on ________.

A. cash basis
B. credit basis.
C. installment basis.
D. . cash and credit basis.
ANSWER: B

61. Sundry debtors means a person who purchases goods on __________.

A. cash basis.
B. . credit basis.
C. installment basis.
D. cash and credit basis.
ANSWER: B

62. General Ledger Adjustment a/c(s) are opened in ________.

A. debtors ledger.
B. creditor ledger.
C. debtors and creditors ledger.
10 ASST. PROF. SHAIKH SHOYAB T.
M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464
D. bills receivable ledger.
ANSWER: C

63. Cash paid to creditors can be calculated from ____________.

A. debtors a/c.
B. creditors a/c.
C. balance sheet.
D. p & l a/c.
ANSWER: B

64. The figure for capital in the beginning is ascertained from ________.
A. creditors a/c.
B. debtors a/c.
C. statement of affairs.
D. balance sheet.
ANSWER: C

65. Branch account is a ________.

A. personal account
B. real account.
C. . nominal account.
D. cash account.
ANSWER: C

11 ASST. PROF. SHAIKH SHOYAB T.

M.COM. M.PHIL. SET. MBA(FIN) MBA(HR) G.D.C.&A. D.T.L. D.L.L.&L.W.
Mo. No. 9595846464