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Read the following text and answer question on the basis of the same: 

Henry used to run a plumbing business, due to Covid 19 he could not afford to pay rent for his shop hence he now operates the same from his home. He has extracted the following information from his books.

Capital in the beginning of the year (April 1, 2019)2,00,000
Capital at the end of the year (March 31, 2020)2,20,000
Drawings made during the year50,000
Loose tools20,000
Sundry Debtors30,000

1. The capital at the end of accounting year is ascertained by preparing:

a. Total debtors account 

b. Profit and loss account 

c. Total creditors account

d. Closing statement of Affairs

2. From incomplete records it is not possible to prepare:

a. Statement of affairs 

b. Trial Balance 

c. Statement of profit and loss 

d. Bank Reconciliation Statement

3. Profit for Henry for the Financial Year 2019-20 will be...

a. Rs. 70,000 

b. Rs. 50,000 

c. Rs. 20,000 

d. Rs. 2,20,000

4. Total of Statement of Affairs as on 31st March 2020 for Henry will be (Choose the correct alternative) 

a. Rs. 2,00,000 

b. Rs. 2,20,000 

c. Rs. 50,000 

d. Rs. 2,70,000

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1 Answer

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by (47.4k points)

1. (d) Closing statement of Affairs

2. (b) Trial Balance

3. (a) Rs. 70,000

4. (b) Rs. 2,20,000

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