Question

5. If books are kept under single entry system, opening stock is ascertained by preparing -
(a) Opening Stock Account
(b) Stock Register
(c) Memorandum Trading Account to atse (d) Opening Statement of Affairs​

Answer 1

Answer:

opening stock account

Answer 2

Answer:

If books are kept under single entry system, opening stock is ascertained by preparing  it is (a) Opening Stock Account.

Explanation:

• A single Entry system is defined as the method in which a book keeping is related to the one-side of the Accounting entry to maintain the information of the finance.
• It does not require any training and specifically, used in small scale business because of the cost effectiveness.

• Advantages of the single Entry system:

• They are used while there is control over the consistency.
• They are easily accessible for the clients.
• They are used for less control of services and cost.

The Opening Stock Account is defined as the amount in which the values of any materials of the company will be made available for the purpose of the sale at accounting period in the beginning.

• There are two types of stock:

1) Opening stock

2) Closing stock

1) Opening stock:

It is stock in which the amount and the value of any materials will make available during the accounting period.

Example:

Raw materials

Finished goods

2) Closing stock:

It is a stock that is known to be the inventory in which a business will be sold during the given duration.

Hence, the opening stock must be same to reporting period which will be the next and closing stock will be from the preceding period.

Therefore, If books are kept under single entry system, opening stock is ascertained by preparing it is the Opening Stock Account.

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