Q1. What is meant by incomplete records system of accounting?
Ans. It is an accounting system which ignores two-fold aspects of a transaction.
Q2. Give two features of incomplete records.
(i) Maintenance of Personal Accounts only.
(ii) Maintenance of Cash Book.
Q3. Name the two main accounts maintained in 'Accounts from Incomplete Records'.
(i) Personal Account.
(ii) Cash Account.
Q4. Give one reason for keeping incomplete records.
Ans. It is an easy and simple method of recording business transactions because it does not require any special knowledge of the principles of double entry system.
Q5. State any two advantages of incomplete records.
(i) Less expensive.
(ii) Less time consuming.
Q6. State any two limitations of incomplete records.
(i) True Profit or Loss cannot be ascertained.
(ii) Balance Sheet does not disclose true financial position.
Q7. Is it possible to prepare a trial balance and check the arithmetical accuracy of books of accounts under single entry system?
Ans. The method does not record both the aspects of a transaction. As such, a trial balance cannot be prepared to check the arithmetical accuracy of the books of accounts.
Q8. State one point of difference between Incomplete Records and Double Entry System.
Q9. State one point of difference between Statement of Affairs and Balance Sheet.
Q10. Can a limited Company maintain its accounts under Single Entry System?
Ans. No. A limited Company cannot maintain its accounts under single entry system due to legal restrictions.
Q11. What is the common objective of Single Entry System and Double Entry System?
Ans. Common objective of the two systems is to ascertain the net profit or loss of the business for a particular period.
Q12. Which accounting principle is certainly followed under single entry as well as double entry system?
Ans. Money Measurement Concept.
Q13. Which accounting principle is ignored under single entry and followed under double entry system?
Ans. Dual Aspect Concept.
Q14. Why is statement of affairs prepared under single entry system not called a balance sheet?
(i) Because a statement of affairs is not prepared with the list of ledger balances kept on the basis of double entry system.
(ii) Value of assets and liabilities shown in statement of affairs are only the estimates and not the actual values.
Q15. In the Single Entry System which two methods are used to ascertain profit or loss?
(i) Statement of Affairs Method;
(ii) Conversion Method.
Q16. How can Opening Capital be ascertained from incomplete records?
Ans. Opening Capital can be ascertained by preparing a Statement of Affairs at the beginning of the accounting period.
Q17. How can Closing Capital he ascertained from incomplete records?
Ans. Closing Capital can be ascertained by preparing a Statement of Affairs at the end of the accounting period.