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Standard XII
Accountancy
Question

A statement similar to balance sheet prepared to find out the amount of opening capital is ___________.
  1. Cash flow statement
  2. Opening statement of affairs
  3. Profit and loss accounts
  4. Balance sheet

A
Opening statement of affairs
B
Balance sheet
C
Cash flow statement
D
Profit and loss accounts
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Solution
Verified by Toppr

Under Single entry system Opening Capital is ascertained from the Accounting equation "CAPITAL = ASSET - LIABILITIES"
Such statement which makes use of equation is called opening statement of affairs.
Balance sheet is the statement which comprises of the assets, liabilities and the capital which also satisfies the accounting equation.
Therefore, statement of affairs is considered similar to the balance sheet.

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Similar Questions
Q1
A statement similar to balance sheet prepared to find out the amount of opening capital is ___________.
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Q2

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

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Q3

A Statement of Affairs is similar to the :

(a) Balance sheet
(b) Trial balance
(c) Trading Account
(d) Profit & Loss Account

View Solution
Q4

From the following Balance Sheets of Zee Entertainment Ltd., prepare a Cash Flow Statement for the year ended 31st March, 2017.

BALANCE SHEET OF ZEE ENTERTAINMENT LTD.

as at 31st March, 2016 and 31st March, 2017

ParticularsNote31−03−201731−03−2016No.(Rs)(Rs)I. EQUITY AND LIABILITIES(1) Shareholders Funds:(a) Share Capital (Equity)2,00,0002,00,000(b) Reserve and Surplus190,00050,000(2) Non-current Liabilities:Long-term Borrowings (Bank Loan)−10,000(3) Current Liabilities:(a) Trade Payables (Creditors)20,00015,000(b) Other Current Liabilities25,0005,000(c) Short-term Provisions325,00020,000Total3,40,0003,00,000II. ASSETS(1) Non-current Assets:(a) Fixed Assets2,75,002,35,000(2) Current Assets :(a) Inventories15,00025,000(b) Trade Receivables (Debtors)20,00010,000(c) Cash and Cash Equivalents430,00030,000 Total3,40,0003,00,000

Notes to Accounts :

NoteParticulars31−03−201731−03−2016No.(Rs)(Rs)1Reserves and Surplus:Statements of Profit and Loss:90,00050,0002Other Current Liabilities:Outstanding Expenses1,0005,000Unaccrued Income4,000−¯¯¯¯¯¯¯¯¯¯¯¯¯5,000––––––¯¯¯¯¯¯¯¯¯¯¯¯¯5,000––––––3Short-term Provisions:Provision for Tax25,00020,0004Cash and Cash Equivalents:Cash10,0008,000Bank20,00022,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯30,000––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯30,000––––––––

Note : During the year the company declared equity dividend @ 10% and paid Rs 15,000 as income tax.

Depreciation charged during the year Rs 20,000.

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Q5
The correct sequence in preparation of periodical financial statement would be :
1. Preparation of balance sheet
2. Preparation of cash flow statement
3. Preparation of trial balance
4. Preparation of Profit and Loss A/c
Select the correct answer from the option given below.
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