Question

The capital in the beginning of the accounting year is ascertained by preparing ________. (Fill in the blank by choosing correct option)
(a) Receipts and Payment Account
(b) Cash Account
(c) Statement of Profit or loss
(d) Opening Statement of Affairs

Answer 1

Answer:

Opening Statement of Affairs

Explanation:

• The capital in the beginning of the accounting year is ascertained by preparing Statement of Affairs.

• A statement of affairs is a statement which gives more details about the company's assets and liabilities.

• Statement of affairs plays an important role of the insolvency process. It is prepared by the liquidator.

• This statement provides more details about the company's financial position in order to provide current status of the firm.

• It is also known as balance sheet of single entry system.

Answer 2

Answer:

(a)  Receipts and Payment Account

Explanation:

with the help of Recipts and payement accounts, we can easily find out the beginning of accounting year How much accounts expand, it is suitable for accounting . With the help of Receipts and accounts we can find out our company is in profit or in a loss in the starting period. It is also a type of written proof for an accounting company is in profit or in loss.