CBSE Class 11 Accountancy Financial Statements - II MCQs Set 04

Question: Bad debts mentioned in Trial balance will be shown in
a) Trading Account
b) Assets
c) Profit & Loss Account
d) None of the options
Answer: c

Question: Patents fall under which category
a) Current Assets
b) Fictitious Assets
c) Intangible Assets
d) None of the options
Answer: c

Question: If Commission received in advance Rs. 3000 given in Trial balance. It will be shown in
a) Liabilities
b) Assets
c) Profit & Loss Account (Credit)
d) Trading Account (debit)
Answer: a

Question: The Trial balance of a firm shows Debtor Rs. 40000, Bad debts Rs. 200 and Provision for doubtful debts at Rs. 1400. A 5% provision for doubtful debts is to be created on debtors. The amount of Debtors to be shown in Assets
a) Rs. 38000
b) Rs. 36400
c) 41200
d) None of the options
Answer: a

Question: What is the treatment of Discount on purchase?
a) Debited to Trading Account
b) Credited to Profit & Loss Account
c) Debited to Profit & Loss Account
d) None of the options
Answer: b

Question: Calculation of Operating profit
a) Gross profit –(Office & Administration exp. + Selling & Distribution Exp.)
b) Gross profit – (Office & Administration exp. – Selling & Distribution EXp.)
c) Gross profit – (Factory exp. + Office & Administration exp. + Selling & Distribution Exp)
d) Gross profit –(Office & Administration exp.+ Selling & Distribution Exp+ Direct Exp.)
Answer: a

Question: Carriage of Rs. 8,000 paid on purchase of Second had Machinery is treated as
a) Revenue Expenditure
b) Capital Expenditure
c) Deferred Revenue Expenditure
d) None of the options
Answer: b

Question: Types of account to be shown in balance sheet
a) Real & Personal
b) Nominal & Real
c) Nominal & Personal
d) None of the options
Answer: a

Question: Calculate Gross profit if rate of gross profit is 20% on cost of goods sold and cost of goods sold is Rs. 120000.
a) 24000
b) 15000
c) Rs. 10000
d) None of the options
Answer: a

Question: Loss of goods by fire should be credited to
a) Sales Account
b) Loss Account
c) Profit & Loss Account
d) Purchases Account
Answer: d

Question: Which type of expenses are written in Tradinng Account?
a) Direct
b) Indirect
c) Direct & Indirect
d) None of the options
Answer: a

Question: If the wages paid Rs. 4000 and outstanding wages Rs. 500. The amount of wages shown in Trading account will be:
a) Rs. 4500
b) Rs. 3500
c) 500
d) None of the options
Answer: a

Fill In The Blanks

Question: When expenses of an accounting year remain unpaid, it is known as …………………………..
Answer: Outstanding expenses

Question: Carriage on sales is shown in ……………..Account.
Answer: profit and loss

Question: Under…………………..concept, provision for doubtful debts is made.
Answer: Prudence or Conservatism

Question: Goods given as charity costing Rs. 5,000, Sales price Rs. 5,500. The amount to be debited to profit & Loss account is Rs.…………… .
Answer: 5,000

Question: Financial position is determined by ……………………. .
Answer: balance Sheet

Question: Discount on purchase is shown in ………………….side of ………………. Account.
Answer: credit, Profit & loss

Question: Rent Account is shown in ………………………. Account.
Answer: Profit & Loss

Question: Salaries & Wages are debited to ……………………Account.
Answer: Profit & Loss

True/False

Question: The formula for calculating adjusted purchase is opening stock + net purchases + direct expenses – closing stock.
Answer: False

Question: Income tax paid is also known as Drawing .
Answer: True

Question: Goods given away as charity is deducted from purchase a/c.
Answer: True

Question: Net sales for year ended 31st march 2016 is. Rs 4,00,000 the rate of gross profit is 25% on sales the amount of gross profit is 1,00,000
Answer: True

Question: If closing and opening stock is Rs. 60,000 each. Purchases are Rs. 1,40,000, manufacturing expenses are Rs. 40,000 and sales are 2 50,000 in that case gross profit is 70,000.
Answer: True

Question: Provision for doubtful debt have a credit balance.
Answer: True

Question: The amount of net purchases is 1,21,000. Amount of return outward is 6,000. The purchases debited to trading account is. Rs 1,27,000.
Answer: False

Match the following

Question: Match the below expense with business expense and Personal expenses Match the item from their source of calculate
    Item                                    calculate from
1. Gross profit                     a) Profit and Loss A/c
2. Net Profit                        b) Balance sheet
3. Capital                            c) Trading Account
Answer: 1-c, 2-A, 3-B

Question: Match the following:
   Account                 Type Transferred to
1. Real A/c                  a) Closed by transferring to Profit and Loss A/C
2. Personal A/c           b) Balance carried to next year by Transferring to Balance sheet
3. Nominal A/c
Answer: 1&2-B; 3-A

Question: Match the below items
1. Commission               a) Expense
2. Commission (Cr.)       b) Income
3. Rent
4. Rent (Cr.)
Answer: 1&3-A; 2&4-B

Question: Match the following expenses with their clarification
     Expenses                                      Definition
1. Outstanding expenses                a) part of expenses paid if relates to next accounting year
2. Prepaid expenses                       b) Income received before it becomes due.
3. Accrued Income                          c) Expenses related to current year but have not been paid)
4. Unearned income                       d) income earned but not received
Answer: 1-C, 2-A, 3-D, 4-B

Question: Match the below expenses with their respective expense head
     Expense                                                    Expense Type
1. White wash Expense                              a) Deferred Revenue Expenditure
2. Purchase of second hand Machine        b) Revenue Expenditure
3. Advertisement Expenses                        c) Capital Expenditure
Answer: 1-B, 2-C, 3-A

Question: Match the following with Revenue Receipts and capital receipts:
    Receipts                                                    Heading
1. Contribution towards capital                   A Revenue Receipts
2. Loan Received by the business             B Capital Receipts
3. Sales of goods
4. Interest received
Answer: a – 3&4, B -1&2