CBSE Class 11 Accountancy Financial Statements - II MCQs Set E

Question: ……………………. Is the arrangement of various assets and liabilities in a proper order
a) Balancing
b) Grouping
c) Marshalling
d) All of the options
Answer: c

Question: Any expenditure incurred in installation of Machinery
a) Deferred Revenue Expenditure
b) Promotional Exp.
c) Revenue Exp.
d) Capital Exp.
Answer: d

Question: If Gross profit is Rs. 10000 and the net profit is 25% of Gross profit. The Indirect expenses will be
a) 2500
b) 3500
c) Rs. 7500
d) Rs. 9000
Answer: c

Question: Trial Balance shows the Value of Machinery is Rs. 40000 purchased on 1st April 2018. Rate of Depreciation is 10% p.a) What is the amount of Depreciation to be shown in Profit & Loss Account for the year ending 31st March, 2019?
a) Rs. 4000
b) Rs. 36000
c) 3600
d) None of the options
Answer: a

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

Question: Wages and Salaries account is shown in
a) Profit & loss Account
b) Assets
c) Trading Account
d) None of the options
Answer: c

Question: Goods given as samples is debited to
a) General Expenses
b) Sales promotion exp.
c) Staff welfare expenses
d) None of the options
Answer: b

Question: The manager is entitled to a commission of 10% on Net Profit after charging such commission. If Net profit is Rs. 110000, then manager’s commission will be :
a) Rs. 11000
b) Rs. 20000
c) 10000
d) None of the options
Answer: c

Question: The Trial balance of a firm shows Debtor Rs. 30000, Bad debts Rs. 200 and Provision for doubtful debts at Rs. 1400. A 10% provision for doubtful debts is to be created on debtors. The profit and loss account for the current year is to be debited by
a) Rs. 3200
b) Rs. 3000
c) 4600
d) 1800
Answer: d

Question: Trial Balance shows the Value of Machinery is Rs. 20000 purchased on 1st January, 2018. Rate of Depreciation is 10%. What is the amount of machinery to be shown in balance sheet as on 31st March, 2019?
a) Rs. 19500
b) Rs. 18000
c) 22000
d) None of the options
Answer: d

Question: Heavy amount spent by Airtel on Advertisement for brand positioning in the market will fall under which category
a) Revenue Expenditure
b) Capital Expenditure
c) Deferred Revenue Expenditure
d) None of the options
Answer: c

Question: Rent paid during the year amounted to Rs. 300000, which includes Rs. 20000 relating to the previous year and Rs. 20000 relating to the next year. Rs. 30000 relating to the current year is still outstanding. How much rent will be debited to the profit & Loss account of the current year?
a) Rs. 200000
b) Rs. 2,90,000
c) Rs. 2,15,000
d) Rs. 2,80,000
Answer: b

Question: If outstanding salary is appearing in the trial balance, it means…..
a) Salary of entire period is debited as expenses
b) Salary for some period is to be added to the salary account
c) No liability incurred for payment of salary
d) None of the options
Answer: a

Question: Calculate Gross profit if rate of gross profit is 20% on cost of goods sold and Sales is Rs. 120000
a) 20000
b) 24000
c) Rs. 30000
d) Rs. None of the options
Answer: a

Fill In The Blanks

Question: If value of cost of sales is Rs. 1,20,000 & Rate of Gross profit is 20% on Sales. The amount of Sales Rs ………….. .
Answer: 1,50,000

Question: Written off part of Deferred Revenue Expenditure is shown in ……………………… .
Answer: Profit & Loss Account

Question: Goodwill is an …………….. Assets.
Answer: Intangible

Question: Gross profit is obtained by deducting……………………………. from Net sales.
Answer: cost of Goods Sold

Question: Trial balance shows debtor of Rs. 10,000, bad debts of Rs. 500. Provision for doubtful debts Rs. 1200. Adjustment shows further bad debts Rs. 600 & new provision for bad & doubtful debts @2%. Amount of debtors to be shown in balance sheet is Rs . ………
Answer: 9212

Question: In case of adjusted purchase, closing stock is shown in…………… .
Answer: balance Sheet

Question: Amortization is used for ………………………..assets.
Answer: Intangible

Question: Outstanding salary is Shown in balance sheet …………….. Side.
Answer: Liabilities

Question: If gross profit is Rs. 20,000, commission paid is Rs. 2,000. Commission received Rs. 3,000. The amount of operating profit will be Rs …………………. .
Answer: Rs. 21000

True/False

Question: The formulae for calculating cost of goods sold opening stock + net purchases – closing stock.
Answer: False

Question: Printing charges are always debited to P&L A/c.
Answer: True

Question: Depreciation has an impact on balance of cash.
Answer: False

Question: Sales return is always deducted from sales.
Answer: True

Question: Purchase return is also known as return inward.
Answer: False

Question: The value of gross profit is 2,40,000 and cost of goods sold is 9,60,000. The rate of gross profit is 25% on cost.
Answer: True

Question: The net profit before charging depreciation was Rs 1,89,000. The amount of depreciation was Rs 19,000. The net profit after depreciation is Rs 2,08,000.
Answer: False

Question: The value of gross profit will be 12,500 if the value of purchases is 2,00,000, returns is 5000, and 2/3rd of the goods are sold for 1,52,500.
Answer: False

Match the following 

Question: Match the following items with account where it is appeared:
1. Outstanding salary                 a) Income side of Profit and loss A/c
2. Salary A/c                               b) Liability side of Balance sheet
3. Rent A/c                                 c) Assets side of Balance sheet
4. Prepaid Rent A/c                   d) Expense side of Profit and loss A/c
Answer: 1-B, 2-D,3-D, 4-C

Question: Match the following assets with their respective Assets account
    Assets                           Categories
1. Debtors                        a) Intangible Assets
2. Furniture                      b) Current Assets
3. Patent                          c) Current Liabilities
4. Short term Loan           d) Tangible Assets
Answer: 1-B,2-D,3-A,4-C

Question: Match the following terms with their methods of diminishing value
1. Depreciation             a) Wasting Assets
2. Amortization             b) Tangible Assets
3. Depletion                  c) Intangible Assets
Answer: 1-B,2-C, 3-A

Question: Match the following
1. Trial Balance                    a) Both sides may or may not be tallied
2. Profit and Loss A/c           b) Both side should always be tallied
3. Balance sheet                  c) For checking Arithmetical accuracy both side should be tallied
Answer: 1-C, 2-A, 3-B

Question: Match the items according to:
1. Order of Permanence cash in hand      A goodwill
2. Order of Liquidity Goodwill                   B cash in hand
Answer: 1-b;2-a

Question: Match the below expense with business expense and Personal expenses
1. Insurance premium                            a) Business Expenses
2. Life insurance premium of owner       b) personal expenses
3. Rent
4. Rent of House of proprietor
Answer: 1&3-A, 2&4-B