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

Opening statement of affairs

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Balance sheet

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Profit and loss accounts

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Cash flow statement

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Solution

The correct option is B Opening statement of affairs
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

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.

A Statement of Affairs is similar to the :

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

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

$\begin{matrix} Particulars & Note & 31 - 03 - 2017 & 31 - 03 - 2016 No. & (Rs) & (Rs) I. EQUITY AND LIABILITIES (1) Shareholders Funds: (a) Share Capital (Equity) & 2, 00, 000 & 2, 00, 000 (b) Reserve and Surplus & 1 & 90, 000 & 50, 000 (2) Non-current Liabilities: Long-term Borrowings (Bank Loan) & - & 10, 000 (3) Current Liabilities: (a) Trade Payables (Creditors) & 20, 000 & 15, 000 (b) Other Current Liabilities & 2 & 5, 000 & 5, 000 (c) Short-term Provisions & 3 & 25, 000 & 20, 000 Total & 3, 40, 000 & 3, 00, 000 II. ASSETS (1) Non-current Assets: (a) Fixed Assets & 2, 75, 00 & 2, 35, 000 (2) Current Assets : (a) Inventories & 15, 000 & 25, 000 (b) Trade Receivables (Debtors) & 20, 000 & 10, 000 (c) Cash and Cash Equivalents & 4 & 30, 000 & 30, 000 Total & 3, 40, 000 & 3, 00, 000 \end{matrix}$

Notes to Accounts :

$\begin{matrix} Note & Particulars & 31 - 03 - 2017 & 31 - 03 - 2016 No. & (Rs) & (Rs) 1 & Reserves and Surplus: Statements of Profit and Loss: & 90, 000 & 50, 000 2 & Other Current Liabilities: Outstanding Expenses & 1, 000 & 5, 000 Unaccrued Income & 4, 000 & - ¯ ¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 000 - ---- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 000 - ---- - 3 & Short-term Provisions: Provision for Tax & 25, 000 & 20, 000 4 & Cash and Cash Equivalents: Cash & 10, 000 & 8, 000 Bank & 20, 000 & 22, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 30, 000 - ------ - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 30, 000 - ------ - \end{matrix}$

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.

Q. 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.

Q. Match the items of the following two lists:

List-I	List-II
(i) Statement of changes in Working Capital	(a) Cash Flow Statement
(ii) Deferred Tax	(b) Fixed Assets
(iii) Three activities	(c) Funds Flow Statement
(iv) Impairment Loss	(d) Balance Sheet

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