Question:
Read the following statements carefully:
Statement 1: Statement of Profit and Loss is prepared to determine Profit or Loss in case of Accounts from Incomplete Records.
Statement 2: Balance Sheet can be prepared with Accounts from Incomplete Records.
In light of the given statements, choose the correct option from the following:
Read the following statements carefully:
Statement 1: Statement of Profit and Loss is prepared to determine Profit or Loss in case of Accounts from Incomplete Records.
Statement 2: Balance Sheet can be prepared with Accounts from Incomplete Records.
In light of the given statements, choose the correct option from the following:
Statement 1: Statement of Profit and Loss is prepared to determine Profit or Loss in case of Accounts from Incomplete Records.
Statement 2: Balance Sheet can be prepared with Accounts from Incomplete Records.
In light of the given statements, choose the correct option from the following:
Show Hint
In incomplete records the financial position is shown by a Statement of Affairs, not a Balance Sheet.
Updated On: Nov 3, 2026
- Statement 1 is true and Statement 2 is false.
- Statement 1 is false and Statement 2 is true.
- Both Statements 1 and 2 are true.
- Both Statements 1 and 2 are false.
Show Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
Step 1: Understand incomplete records:
Under incomplete records, the firm does not keep the full double entry books. Many accounts and a trial balance are missing.
Step 2: Check Statement 1:
The profit or loss of the year can still be found by preparing a statement of profit and loss (conversion method) from the available information. So Statement 1 is TRUE.
Step 3: Check Statement 2:
A Balance Sheet needs a complete set of records based on double entry. Where records are incomplete, a Statement of Affairs is prepared instead to show assets, liabilities and capital. So Statement 2 is FALSE.
Step 4: Choose:
Statement 1 true, Statement 2 false: option (A).
Step 5: Summary:
Profit or loss can be found in incomplete records, but the financial position is shown by a Statement of Affairs and not by a Balance Sheet.
Final Answer:
Option (A). \[ \boxed{\text{(A)}} \]
Under incomplete records, the firm does not keep the full double entry books. Many accounts and a trial balance are missing.
Step 2: Check Statement 1:
The profit or loss of the year can still be found by preparing a statement of profit and loss (conversion method) from the available information. So Statement 1 is TRUE.
Step 3: Check Statement 2:
A Balance Sheet needs a complete set of records based on double entry. Where records are incomplete, a Statement of Affairs is prepared instead to show assets, liabilities and capital. So Statement 2 is FALSE.
Step 4: Choose:
Statement 1 true, Statement 2 false: option (A).
Step 5: Summary:
Profit or loss can be found in incomplete records, but the financial position is shown by a Statement of Affairs and not by a Balance Sheet.
Final Answer:
Option (A). \[ \boxed{\text{(A)}} \]
Was this answer helpful?
0
0
Top CBSE X ELEMENTS OF BOOK-KEEPING AND ACCOUNTANCY Questions
- Which of the following is not true about Capital Expenditure?
- A company spent Rs. 20,000 on painting of its building. It should be recorded as:
- Cost incurred for the maintenance of a shop is considered as:
- Depreciation will be charged on which of the following?
- The value of a fixed asset after deducting depreciation from the historical cost is called:
View More Questions
Top CBSE X Accounting from Incomplete Records Questions
- Generally, incomplete records are maintained by______.
- If capital at the end of the year is Rs. 40,000; Additional Capital introduced during the year Rs. 30,000; drawing for the year Rs. 20,000 and loss for the year is Rs. 60,000, then capital at the beginning of the year was:
- In single entry system_____are recorded.
- Manu started business with a capital of Rs. 4,00,000 on 1st June, 2023. He introduced additional capital of Rs. 75,000. He withdrew Rs. 8,000 per month during this period. If the closing capital as on 31st December, 2023 was Rs. 4,50,000, calculate profit & loss for the year ended 31st December, 2023.
- Following is the position statement of Rakesh who maintains his accounts in incomplete system as on 31st March, 2022 and 31st March, 2023:Additional Information:
\(Particulars\) 31st March, 2022 (Rs.) 31st March, 2023 (Rs.) Machinery 16,000 16,000 Furniture 4,000 4,000 Stock 14,000 10,000 Sundry Debtors 8,000 9,000 Bank 400 3,600 Sundry Creditors 10,000 7,000
- Fresh Capital introduced = Rs. 600. - Drawings = Rs. 4,100.
View More Questions
Top CBSE X Questions
- Read the following source carefully and answer the questions that follow:
Print Comes to India
From 1780, James Augustus Hickey began to edit the Bengal Gazette, a weekly maga zine that described itself as ‘a commercial paper open to all, but influenced by none’. So it was private English enterprise, proud of its independence from colonial influence, that began English printing in India. Hickey published a lot of advertisements, including those that related to the import and sale of slaves. But he also published a lot of gossip about the Company’s senior officials in India. Enraged by this, Governor-General War ren Hastings persecuted Hickey, and encouraged the publication of officially sanctioned newspapers that could counter the flow of information that damaged the image of the colonial government. By the close of the eighteenth century, a number of newspapers and journals appeared in print. There were Indians, too, who began to publish Indian news papers. The first to appear was the weekly Bengal Gazette, brought out by Gangadhar Bhattacharya, who was close to Raja Rammohan Roy. - Read the following source carefully and answer the questions that follow:
Loans from Cooperatives
Besides banks, the other major source of cheap credit in rural areas are the cooperative societies (or cooperatives). Members of a cooperative pool their resources for coopera tion in certain areas. There are several types of cooperatives possible such as farmers cooperatives, weavers cooperatives, industrial workers cooperatives, etc. Krishak Coop erative functions in a village not very far away from Sonpur. It has 2300 farmers as members. It accepts deposits from its members. With these deposits as collateral, the Cooperative has obtained a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place. Krishak Cooperative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses. - More than three million carbon compounds have been discovered in the field of chemistry. The diversity of these compounds is due to the capacity of carbon atoms for bonding with one another as well as with other atoms. Most of the carbon compounds are poor conductors of electricity and have low melting and boiling points.
- Human digestive system is a tube running from mouth to anus. Its main function is to breakdown complex molecules present in the food which cannot be absorbed as such into smaller molecules. These molecules are absorbed across the walls of the tube and the absorbed food reaches each and every cell of the body where it is utilised for obtaining energy.
- A student has three convex lenses A, B, and C of different focal lengths. He wants to observe the images formed by these lenses on a screen by placing a candle flame at different distances as given in the following table:
Case No. Lens Focal Length Object Distance 1 \(A\) 50 cm 25 cm 2 B 20 cm 60 cm 3 C 15 cm 30 cm
View More Questions