Under single entry system, it is often difficult to prepare: MCQ with Answer and Explanation

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Under single entry system, it is often difficult to prepare:

A. Profit and Loss Account and Balance Sheet

B. Personal accounts

C. Debtors list

D. Cash account

Answer: Option A

Solution (By JKSSB Mock Tests)

Because real and nominal accounts are incomplete, final accounts cannot be prepared directly.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1

The 'Prior Period Items' are shown in:

A. Separately in the current period's financial statements

B. Reserves

C. Current period's profit and loss

D. Balance sheet

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Correct Answer: Option A

Explanation:
Prior period items are disclosed separately in the statement of profit and loss.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

Goods given away as charity should be credited to:

A. Sales Account

B. Purchases Account

C. Cash Account

D. Charity Account

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Correct Answer: Option B

Explanation:
Donating goods reduces the stock of purchased goods. Thus, the Purchases account is credited at cost price.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The 'GST Refund' for unutilised ITC due to inverted duty structure is available for:

A. All zero-rated supplies

B. All goods

C. Services

D. Goods where input tax rate is higher than output tax rate, subject to certain exclusions

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Correct Answer: Option D

Explanation:
Refund of accumulated ITC due to inverted rate structure is allowed for goods, with some exceptions.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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