Maharashtra State BoardHSC Commerce 12th Board Exam
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Select the Most Appropriate Answer the Alternatives Given Below and Rewrite the Sentence - Book Keeping and Accountancy

MCQ

Select the most appropriate answer the alternatives given below and rewrite the Sentence
The Capital balances are ascertained by preparing _______________.

Options

  • Statement of affairs

  • Cash Account

  • Drawing account

  • Debtors Account

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Solution

The Capital balances are ascertained by preparing Statement of Affairs.

Explanation: It is a statement showing various assets and liabilities of the business on a particular date. It can be prepared with both opening and closing balances. A statement prepared with opening assets and liabilities is known as Opening Statement of Affairs (to ascertain the opening capital). Similarly, a statement prepared with closing assets and liabilities is known as Closing Statement of Affairs (to ascertain the closing capital).

Concept: Preparation of Statements for Single Entry System
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