CBSE Class 11 Accountancy Financial Statements - II MCQs Set E

Question: If the rent received in advance Rs. 2,000. The adjustment entry will be
a) Debit profit and loss account and Credit rent account
b) Debit rent account Credit rent received in advance account
c) Debit rent received in advance account and Credit rent account
d) None of these
Answer: b

Question: Rahul’s trial balance provide you the following information :
Debtors – Rs. 80,000
Bad debts – Rs. 2,000
Provision for bad debts – Rs. 4,000
It is desired to maintain a provision for bad debts of Rs. 1,000. State the amount to be debited/credited in Profit & Loss A/c.
a) Rs. 5,000 (Debit)
b) Rs. 3,000 (Debit)
c) Rs. 1,000 (Credit)
d) None of these
Answer: c

Question: If the insurance premium paid Rs. 1,000 and prepaid insurance Rs. 300. The amount of insurance premium shown in profit and loss account will be
a) Rs. 1,300
b) Rs. 1,000
c) Rs. 300
d) Rs. 700
Answer: d

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

Fill in the blanks with suitable words.

Question: Adjustments are necessary to show the correct ………………., and ………………. of a business concern.
Answer: profit or loss, financial position

Question: Items of income and expenditure which relates to the accounting period but are left out should be ……………….
Answer: accounted for

Question: Part of expenses paid if relates to the next accounting year, it is called ……………….
Answer: prepaid expenses

Question: Income if received before it becomes due is called ……………….
Answer: income received in advance

Question: An unexpired expenditure is shown on the ………………. side of the Balance Sheet.
Answer: assets.

Mention whether the following are true or false

Question: Prepaid expenses appearing inside the trial balance will appear on the liabilities side of the balance sheet.
Answer: False

Question: Assets are to be shown in the balance sheet at the values realisable on liquidation.
Answer: True

Question: The provision for discount on debtors is calculated after deducting the provisions for doubtful debts from debtors.
Answer: True

Question: Goods sold on approval basis is treated as a complete sale.
Answer: False

Question: Provision for bad debts is debited to sundry debtors accounts.
Answer: False

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