Class 11 Accountancy - Chapter Accounts from Incomplete Records NCERT Solutions | What practical difficulties are encounte
What practical difficulties are encountered by a trader due to incompleteness of accounting records?
The following are the difficulties that are encountered by a trader due to incompleteness of accounting records.
(i) Accuracy of Accounts : When incomplete records are maintained Arithmetical accuracy of accounts cannot be ensured.
(ii) Encourages Fraud : Incomplete records encourages fraud and provides sufficient scope for bluffing and carelessness.
(iii) Difficult to Analyse the True Financial Position : As profit or loss cannot be ascertained easily, so the Balance Sheet cannot be easily prepared. Hence, the absence of Balance Sheet will not reflect the true financial position of the business.
(iv) Difficulty in Comparison : Due to the incomplete records and non - availability of previous years date, comparison is not possible. Comparisons with other firms is also not possible.
(v) Unacceptable to Tax Authorities : Since they do not reflect the true and acceptable presentation of expenses and revenues. These are not acceptable by the tax authorities. Many other problems such as inconvenience in getting the profitability and liquidity of business, difficulty in getting fund from outside etc are encountered.
More Questions From Class 11 Accountancy - Chapter Accounts from Incomplete Records
- Q:-
Credit purchase, during the year is ascertained by preparing :
(a) Total creditors account (b) Total debtors account
(c) Cash account (d) Opening statement of affairs - Q:-
What are the possible reasons for keeping incomplete records?
- Q:-
Explain how the following may be ascertained from incomplete records:
(a) Opening capital and closing capital
(b) Credit sales and credit purchases
(c) Payments to creditors and collection from debtors
(d) Closing balance of cash. - Q:-
State the meaning of incomplete records?
- Q:-
Tick the correct answer :
Incomplete record mechanism of book keeping is :
(a) Scientific (b) Unscientific
(c) Unsystematic (d) both (b) and (c) - Q:-
Distinguish between statement of affairs and balance sheet.
- Q:-
Opening capital is ascertained by preparing :
(a) Total debtors account (b) Total creditors account
(c) Cash account (d) Opening statement of affairs - Q:-
Write the correct word(s) :
1. Credit sales can be ascertained as the balancing figure in the .......... account.
2. Excess of .......... over ......... represents loss sustained during the period.
3. To ascertain the profit, closing capital is to be adjusted by deducting .......... and adding ..........
4. Incomplete records are generally used by .......... - Q:-
If opening capital is Rs. 60,000, drawings Rs. 5,000, capital introduced during the period Rs. 10,000, closing capital Rs. 90,000. The value of profit earned during the period will be :
(a) Rs. 20,000 (b) Rs. 25,000
(c) Rs. 30,000 (d) Rs. 40,000 - Q:-
What is meant by a ‘statement of affairs’? How can the profit or loss of a trader be ascertained with the help of a statement of affairs?
Popular Questions of Class 11 Accountancy
- Q:-
Name any two types of commonly used negotiable instruments.
- Q:-
Why is it necessary to record the adjusting entries in the preparation of final accounts?
- Q:-
What is ‘Depreciation’?
- Q:-
Briefly state how the cash book is both journal and a ledger.
- Q:-
State the meaning of a trial balance?
- Q:-
State the four basic requirements of a database applications.
- Q:-
Define accounting.
- Q:-
State the different elements of a computer system.
- Q:-
Why is it necessary for accountants to assume that business entity will remain a going concern?
- Q:-
State the need for the preparation of bank reconciliation statement?
Recently Viewed Questions of Class 11 Accountancy
- Q:-
Briefly explain the statement ‘wrongly debited by the bank’ with the help of an example.
- Q:-
Deepti wants to buy a building for her business today. Which of the following is the relevant data for his decision?
a. Similar business acquired the required building in 2000 for ₹ 10,00,000
b. Building cost details of 2003
c. Building cost details of 1998
d. Similar building cost in August, 2005 ₹ 25,00,000 - Q:-
Why is it necessary for accountants to assume that business entity will remain a going concern?
- Q:-
Name three components of a Transaction Processing System.
- Q:-
Why are the rules of debit and credit same for both liability and capital?
- Q:-
Recording of transaction in the Journal is called:
(i) Casting
(ii) Posting
(iii) Journalising
(iv) Recording - Q:-
State the four basic requirements of a database applications.
- Q:-
Give three examples of a transaction processing system.
- Q:-
Describe the various elements of a computer system and explain the distinctive features of a computer system and manual system.
- Q:-
What are the different types of errors that are usually committed in recording business transactions?
- All Chapters Of Class 11 Accountancy
- All Subjects Of Class 11