Consider these statements about 'Single Entry System': 1. Only personal accounts are maintained completely. 2. Profit is ascertained by comparing opening and closing capital. 3. It is based on dual aspect concept. Which are correct? MCQ with Answer and Explanation

Consider these statements about 'Single Entry System': 1. Only personal accounts are maintained completely. 2. Profit is ascertained by comparing opening and closing capital. 3. It is based on dual aspect concept. Which are correct?
A. All of the above
B. 1 and 3 only
C. 1 and 2 only
D. 2 and 3 only
Answer: Option C
Solution (By JKSSB Mock Tests)
Single entry does not follow dual aspect; 3 is incorrect. 1 and 2 are true.

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Practice More Accountancy and Book Keeping Questions

Question #1
A partner's current account will have a credit balance if:
A. Firm incurs loss
B. His drawings exceed his share of profit
C. His share of profit and interest on capital exceed his drawings
D. He has withdrawn all profits

Correct Answer: Option C


Explanation:
Current account credit balance indicates net amount owed by firm to partner, i.e., profits and interest etc. exceed drawings.

Question #2
The 'RCM' (Reverse Charge Mechanism) under GST applies to:
A. All supplies
B. Only services
C. Specified categories of supplies and registered persons
D. Only goods

Correct Answer: Option C


Explanation:
RCM is applicable to notified categories of goods/services and where supplier is unregistered to registered recipient.

Question #3
The petty cash book is balanced:
A. When it is replenished
B. At the end of the year
C. At the end of the month
D. Daily

Correct Answer: Option A


Explanation:
Under imprest system, petty cash book is closed when cash is replenished, not periodically.