Chapter 9
Single entry system
NEB Class 11 past exam questions
Past questions and answers
11 questions set from this chapter. Most repeated first.
- 2083 · Model Set C (nebexam.com) · 5 marks
Smita started a business on 1 Jan 2022 with capital of Rs. 3,00,000. The position of her business on 31 Dec 2022 was as follows:
- Bank: Rs. 1,20,000
- Inventory: Rs. 35,000
- Creditors: Rs. 25,000
- Furniture: Rs. 70,000
- Debtors: Rs. 1,15,000
- Outstanding expenses: Rs. 18,000
- Drawings: Rs. 35,000
Required:
a) Closing statement of affairs
b) Statement of profit or loss
Similar questions: Smita: statement of affairs (capital Rs. 5,00,000) (2083 · Model Set E (nebexam.com))
Answer
(a) Closing Statement of Affairs of Smita as on 31 Dec 2022
| Assets | Rs | Liabilities | Rs |
|---|---|---|---|
| Bank | 1,20,000 | Creditors | 25,000 |
| Inventory | 35,000 | Outstanding expenses | 18,000 |
| Furniture | 70,000 | Closing capital (balancing figure) | 2,97,000 |
| Debtors | 1,15,000 | ||
| Total | 3,40,000 | Total | 3,40,000 |
(b) Statement of Profit or Loss for the year ended 31 Dec 2022
| Particulars | Rs |
|---|---|
| Closing capital | 2,97,000 |
| Add: Drawings | 35,000 |
| 3,32,000 | |
| Less: Opening capital | 3,00,000 |
| Net profit for the year | 32,000 |
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2083 · Model Set E (nebexam.com) · 5 marks
Smita started a business on 1 Jan 2022 with capital of Rs. 5,00,000. The position of her business on 31 Dec 2022 was as follows:
- Bank: Rs. 2,00,000
- Inventory: Rs. 60,000
- Creditors: Rs. 40,000
- Furniture: Rs. 1,20,000
- Debtors: Rs. 1,80,000
- Outstanding expenses: Rs. 30,000
- Drawings: Rs. 50,000
Required:
a) Closing statement of affairs
b) Statement of profit or loss
Similar questions: Smita: statement of affairs (capital Rs. 3,00,000) (2083 · Model Set C (nebexam.com))
Answer
(a) Closing Statement of Affairs of Smita as on 31 Dec 2022
| Assets | Rs | Liabilities | Rs |
|---|---|---|---|
| Bank | 2,00,000 | Creditors | 40,000 |
| Inventory | 60,000 | Outstanding expenses | 30,000 |
| Furniture | 1,20,000 | Closing capital (balancing figure) | 4,90,000 |
| Debtors | 1,80,000 | ||
| Total | 5,60,000 | Total | 5,60,000 |
(b) Statement of Profit or Loss for the year ended 31 Dec 2022
| Particulars | Rs |
|---|---|
| Closing capital | 4,90,000 |
| Add: Drawings | 50,000 |
| 5,40,000 | |
| Less: Opening capital | 5,00,000 |
| Net profit for the year | 40,000 |
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2077 Model question · CDC (Acc. 1031) · 1+1 marks
Shweta keeps her accounts under the single entry system. She started a business with Rs. 2,00,000 on 1st Jan, 2017. She withdraws Rs. 2,000 per month for household work. The position of her business at the end of the year was as follows:
- Fixed assets: Rs. 1,90,000
- Inventory: Rs. 85,000
- Due expenses: Rs. 10,000
- Creditors: Rs. 50,000
- Debtors: Rs. 40,000
- Bank balance: Rs. 60,000
Required:
a) Closing statement of affairs
b) Statement of profit and loss
Answer
(a) Closing Statement of Affairs as at 31st December 2017
| Liabilities | Rs | Assets | Rs |
|---|---|---|---|
| Due expenses | 10,000 | Fixed assets | 1,90,000 |
| Creditors | 50,000 | Inventory | 85,000 |
| Closing capital (balancing figure) | 3,15,000 | Debtors | 40,000 |
| Bank balance | 60,000 | ||
| Total | 3,75,000 | Total | 3,75,000 |
(b) Statement of Profit and Loss
Drawings .
| Particulars | Rs |
|---|---|
| Closing capital | 3,15,000 |
| Add: drawings | 24,000 |
| 3,39,000 | |
| Less: opening capital | 2,00,000 |
| Net profit for the year | 1,39,000 |
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2077 (2020) Old course 124 · NEB Grade XI · 2+2 marks
A trader started business with Rs. 1,50,000. At the end of the year his position was as under:
- Stock: Rs. 35,000
- Debtors: Rs. 40,000
- Creditors: Rs. 45,000
- Machinery: Rs. 80,000
- Cash: Rs. 25,000
Additional information:
a) Depreciation on machinery: 15%.
b) Bad debts: Rs. 2,000.
c) Amount withdrawn for domestic work: Rs. 35,000.
Required:
i) Closing statement of affairs
ii) Profit and loss statement
Answer
(i) Closing Statement of Affairs
Debtors after bad debts: . Machinery after depreciation: .
| Liabilities | Rs | Assets | Rs |
|---|---|---|---|
| Creditors | 45,000 | Cash | 25,000 |
| Capital (balancing figure) | 1,21,000 | Stock | 35,000 |
| Debtors (40,000 - 2,000) | 38,000 | ||
| Machinery (80,000 - 12,000) | 68,000 | ||
| Total | 1,66,000 | Total | 1,66,000 |
(ii) Statement of Profit and Loss
| Particulars | Rs |
|---|---|
| Closing capital | 1,21,000 |
| Add: Drawings | 35,000 |
| 1,56,000 | |
| Less: Opening capital | 1,50,000 |
| Net profit for the year | 6,000 |
Drawings are added back because they reduced the capital without being a loss of the business. Bad debts and depreciation are already deducted in the closing capital, so they are not deducted again.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2083 · Model Set A (nebexam.com) · 1 mark
What is a statement of affairs?
Answer
A statement of affairs is a statement prepared in the same form as a balance sheet, listing the assets and liabilities of a business on a particular date, when the books are kept under the single entry system. The excess of assets over liabilities gives the capital of the business on that date, and it is used to find the profit or loss for the period.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2083 · Model Set A (nebexam.com) · 5 marks
A trader keeps his books under the single entry system. His position at the beginning and at the end of the year is given below.
Particulars Beginning (Rs.) End (Rs.) Cash 25,000 40,000 Debtors 60,000 85,000 Stock 75,000 95,000 Furniture 1,20,000 1,10,000 Creditors 50,000 65,000 Bank loan 40,000 30,000
During the year additional capital of Rs. 30,000 was introduced and drawings were Rs. 24,000.
Required: Statement of profit and loss using the statement of affairs method.
Answer
Statement of Profit and Loss (Statement of Affairs Method)
Opening Statement of Affairs
| Assets | Rs | Liabilities | Rs |
|---|---|---|---|
| Cash | 25,000 | Creditors | 50,000 |
| Debtors | 60,000 | Bank loan | 40,000 |
| Stock | 75,000 | Capital (balancing figure) | 1,90,000 |
| Furniture | 1,20,000 | ||
| Total | 2,80,000 | Total | 2,80,000 |
Closing Statement of Affairs
| Assets | Rs | Liabilities | Rs |
|---|---|---|---|
| Cash | 40,000 | Creditors | 65,000 |
| Debtors | 85,000 | Bank loan | 30,000 |
| Stock | 95,000 | Capital (balancing figure) | 2,35,000 |
| Furniture | 1,10,000 | ||
| Total | 3,30,000 | Total | 3,30,000 |
Statement of Profit and Loss
| Particulars | Rs |
|---|---|
| Closing capital | 2,35,000 |
| Add: Drawings | 24,000 |
| 2,59,000 | |
| Less: Opening capital | 1,90,000 |
| Less: Additional capital introduced | 30,000 |
| Net profit for the year | 39,000 |
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2083 · Model Set D (nebexam.com) · 5 marks
A trader had an opening capital of Rs. 2,00,000. His closing position is as follows: furniture Rs. 1,00,000; cash Rs. 50,000; creditors Rs. 20,000; debtors Rs. 1,00,000; stock Rs. 30,000. His drawings were Rs. 40,000. Bad debts of Rs. 5,000 are to be written off and furniture is to be depreciated at 10%.
Required:
a) Closing statement of affairs
b) Statement of profit and loss
Answer
(a) Closing Statement of Affairs
Adjustments made: bad debts of Rs 5,000 reduce debtors to ; depreciation on furniture is , so furniture becomes .
| Assets | Rs | Liabilities | Rs |
|---|---|---|---|
| Furniture (1,00,000 - 10,000) | 90,000 | Creditors | 20,000 |
| Cash | 50,000 | Closing capital (balancing figure) | 2,45,000 |
| Debtors (1,00,000 - 5,000) | 95,000 | ||
| Stock | 30,000 | ||
| Total | 2,65,000 | Total | 2,65,000 |
(b) Statement of Profit and Loss
| Particulars | Rs |
|---|---|
| Closing capital | 2,45,000 |
| Add: Drawings | 40,000 |
| 2,85,000 | |
| Less: Opening capital | 2,00,000 |
| Net profit for the year | 85,000 |
The profit already allows for bad debts (Rs 5,000) and depreciation (Rs 10,000); before these it would be Rs 1,00,000.
Answer checked by Claude Sonnet · Oct 21, 2026
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- Practice · 1 mark
Multiple Choice Question (1 mark)
Which of the following statements is true about the single entry system?
(a) It records both aspects of every transaction
(b) It is a complete and scientific system of bookkeeping
(c) It maintains only personal accounts and cash book
(d) It always prepares a trial balance
Answer
(c) It maintains only personal accounts and cash book
The single entry system is an incomplete and unscientific method of bookkeeping in which generally only cash and personal accounts are maintained, while both aspects of every transaction are not recorded. Hence, a trial balance cannot always be prepared.
Answer checked by Claude Sonnet · Oct 21, 2026
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- Practice · 5 marks
Short Answer Question (5 marks)
A trader keeps his books under the single entry system. His capital at the beginning of the year was Rs. 80,000 and at the end of the year was Rs. 1,10,000. During the year, he withdrew Rs. 15,000 for personal use and introduced additional capital of Rs. 20,000.
Required: Calculate the profit or loss for the year.
Answer
Calculation of Profit or Loss for the Year
Under the single entry system, profit or loss is found by comparing the closing capital with the adjusted opening capital.
Formula:
Given:
- Opening capital = Rs. 80,000
- Closing capital = Rs. 1,10,000
- Additional capital introduced = Rs. 20,000
- Drawings = Rs. 15,000
Solution:
Statement Form:
| Particulars | Amount (Rs.) |
|---|---|
| Closing capital | 1,10,000 |
| Less: Opening capital | (80,000) |
| Less: Additional capital introduced | (20,000) |
| Add: Drawings | 15,000 |
| Profit for the year | 25,000 |
Therefore, the trader earned a profit of Rs. 25,000 during the year.
Answer checked by Claude Sonnet · Oct 21, 2026
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- Practice · 5 marks
Short Answer Question (5 marks)
From the following information of a sole trader who maintains a single entry system, prepare a Statement of Affairs as on 31st Chaitra 2080:
Particulars Amount (Rs.) Cash in hand 12,000 Cash at bank 35,000 Sundry debtors 40,000 Stock 25,000 Furniture 30,000 Sundry creditors 20,000 Bank loan 15,000 Outstanding expenses 5,000
Answer
Statement of Affairs as on 31st Chaitra 2080
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|---|---|---|
| Sundry creditors | 20,000 | Cash in hand | 12,000 |
| Bank loan | 15,000 | Cash at bank | 35,000 |
| Outstanding expenses | 5,000 | Sundry debtors | 40,000 |
| Capital (balancing figure) | 1,02,000 | Stock | 25,000 |
| Furniture | 30,000 | ||
| Total | 1,42,000 | Total | 1,42,000 |
Working:
Capital = Total Assets − Total Liabilities = Rs. (12,000 + 35,000 + 40,000 + 25,000 + 30,000) − Rs. (20,000 + 15,000 + 5,000) = Rs. 1,42,000 − Rs. 40,000 = Rs. 1,02,000
So the closing capital of the sole trader as on 31st Chaitra 2080 is Rs. 1,02,000.
Answer checked by Claude Sonnet · Oct 21, 2026
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- Practice · 8 marks
Long Answer Question (8 marks)
Mr. Ramesh keeps his books under the single entry system. The following information is available:
Particulars 1st Shrawan 2080 (Rs.) 31st Ashadh 2081 (Rs.) Cash in hand 8,000 15,000 Cash at bank 20,000 28,000 Sundry debtors 30,000 45,000 Stock 40,000 55,000 Furniture 25,000 22,000 Sundry creditors 18,000 25,000 Outstanding expenses 2,000 4,000
Additional information:
- Ramesh withdrew Rs. 1,000 per month for personal expenses.
- He introduced additional capital of Rs. 10,000 on 1st Baisakh 2081.
Required:
(a) Prepare a Statement of Affairs as on 1st Shrawan 2080 and 31st Ashadh 2081.
(b) Calculate the profit or loss for the year ended 31st Ashadh 2081.
(c) Prepare a Statement of Profit or Loss (Final Statement) showing the adjusted capital.
Answer
(a) Statement of Affairs
| Liabilities | 1st Shrawan 2080 (Rs.) | 31st Ashadh 2081 (Rs.) | Assets | 1st Shrawan 2080 (Rs.) | 31st Ashadh 2081 (Rs.) |
|---|---|---|---|---|---|
| Sundry creditors | 18,000 | 25,000 | Cash in hand | 8,000 | 15,000 |
| Outstanding expenses | 2,000 | 4,000 | Cash at bank | 20,000 | 28,000 |
| Capital (balancing figure) | 1,03,000 | 1,36,000 | Sundry debtors | 30,000 | 45,000 |
| Stock | 40,000 | 55,000 | |||
| Furniture | 25,000 | 22,000 | |||
| Total | 1,23,000 | 1,65,000 | Total | 1,23,000 | 1,65,000 |
(b) Profit or loss for the year ended 31st Ashadh 2081
- Opening capital = Rs 1,03,000
- Closing capital = Rs 1,36,000
- Additional capital introduced = Rs 10,000
- Drawings = Rs 1,000 × 12 = Rs 12,000
Profit for the year = Rs 35,000
(c) Statement of Profit or Loss (Final Statement)
| Particulars | Rs. |
|---|---|
| Opening capital as on 1st Shrawan 2080 | 1,03,000 |
| Add: Additional capital introduced | 10,000 |
| Add: Profit for the year | 35,000 |
| Total | 1,48,000 |
| Less: Drawings | (12,000) |
| Closing capital as on 31st Ashadh 2081 | 1,36,000 |
The adjusted closing capital is Rs 1,36,000, which agrees with the capital in the closing Statement of Affairs.
Answer checked by Claude Sonnet · Oct 21, 2026
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Questions from Practice questions written for this site (Written from the official syllabus and specification grid where no past papers cover a chapter), NEB/CDC Grade XI Accounting Model Questions (Sub. Code 1031), 2077 model (Model question paper (75 marks, 3 hrs) from the Curriculum Development Centre, 2077 model; also printed in the CDC Grade 11 optional-subjects specification grid. Government accounting items left out as they are not in the current outline.), NEB Grade XI 2077 (2020) Principles of Accounting-I, Sub. Code 124 (Old-curriculum NEB Grade XI board paper (regular and partial/grade-improvement students), 100 marks. Only questions fitting the current chapters are included.), NEB Class 11 Accounting Model Question Set A (75 marks, 3 hrs), nebexam.com (Model question set (Group A 11x1, Group B 8x5, Group C 3x8) published on nebexam.com for the 2083 session; government accounting items left out as not in the current outline.), NEB Class 11 Accounting Model Question Set B (75 marks, 3 hrs), nebexam.com (Model question set (Group A 11x1, Group B 8x5, Group C 3x8) published on nebexam.com for the 2083 session; government accounting items left out as not in the current outline.), NEB Class 11 Accounting Model Question Set C (75 marks, 3 hrs), nebexam.com (Model question set (Group A 11x1, Group B 8x5, Group C 3x8) published on nebexam.com for the 2083 session; government accounting items left out as not in the current outline.), NEB Class 11 Accounting Model Question Set D (75 marks, 3 hrs), nebexam.com (Model question set (Group A 11x1, Group B 8x5, Group C 3x8) published on nebexam.com for the 2083 session; government accounting items left out as not in the current outline.) and NEB Class 11 Accounting Model Question Set E (75 marks, 3 hrs), nebexam.com (Model question set (Group A 11x1, Group B 8x5, Group C 3x8) published on nebexam.com for the 2083 session; government accounting items left out as not in the current outline.). Answers are written for this site; check them against your class notes.
Chapter titles and hours from the official syllabus ↗