CBSE Class 11 Accountancy Financial Statements of Sole proprietorship Worksheet

CBSE Class 11 Accountancy Chapter 9 Financial Statements Fill In The Blanks

Question. ………………….. type of assets comes first in Assets side of Balance sheet as per liquidity order.
Answer. Current assets

Question. …………………… type of assets comes first in Assets side of Balance Sheet in order of permanency.
Answer. Fixed Assets

Question. ………………….. type of liability comes last in Liabilities side of Balance Sheet as per liquidity order.
Answer. Non-Current Liability

Question. …………………. type of liability comes last in Liabilities side of Balance Sheet as per order of permanency.
Answer. Current Liability

Question. Direct expenses are a Debited to …………………. Account.
Answer. Trading

Question. Indirect expenses are a Debited to …………………….. Account.
Answer. Profit & Loss

Question. Assets & Liabilities of business are shown in ................... .
Answer. balance sheet

Question. Assets & Liabilities arranged in a proper order is known as …………………. .
Answer. Marshalling of Assets

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

Question. Statement of balances prepared from ledger is known as ……………… .
Answer. Trial balance

Question. Profit and loss account is prepared on ……………….basis.
Answer. Accrual

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

Question. Credit balance of profit & lossA/C represents ………………….. .
Answer. Net Profit

Question. Debit balance of profit and loss A/C represents ………………………….. .
Answer. Net Loss

Question. Financial position is determined by ……………………. .
Answer. Balance Sheet

CBSE Class 11 Accountancy Chapter 9 Financial Statements True and False

1. Net profit is calculated from trading accounts profit. (False)
2. Gross profit is calculated from trading accounts. (True)
3. Purchase return is also known as return inward. (False)
4. Sales return is always deducted from sales. (True)
5. Apprentice premium is always debited to P&L a/c (False)
6. Unearned income is added to its concerned expense. (False)
7. Trial balance is a part of final accounts. (False)
8. GST paid is debited to P&L account. (False)
9. Trading account is also known as manufacturing account. (False)
10. Interest paid is shown on credit side of Profit & Loss account. (False)
11. Profit & Loss a/c is also known as Factory A/c. (False)
12. Printing charges are always debited to P&L A/c. (True)
13. Goods given away as charity is deducted from purchase a/c. (True)

CBSE Class 11 Accountancy Chapter 9 Financial Statements MCQs

Question. Types of account to be shown in balance sheet
a. Real & Personal
b. Nominal & Real
c. Nominal & Personal
d. None of these
Answer. (A)

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

Question. Revenue Expenditure is intended to benefit
a. Past period
b. Current period
c. Future period
d. None of these
Answer. (B)

Question. Closing stock is valued at
a. Cost price
b. Cost price or market price whichever is less
c. Market price
d. Cost price or market price whichever is higher
Answer. (B)

Question. Carriage inward is shown in
a. Balance Sheet
b. Trading Account
c. Profit & Loss Account
d. None of these
Answer. (B)

Question. The loss of sale of old machinery should be debited to :
a. Profit& Loss Account
b. Trading Account
c. Machinery Account
d. None of these
Answer. (A)

Question. Land & building owned by a firm should be classified as:
a. Fixed Assets
b. Current Assets
c. Fictitious Assets
d. None of these
Answer. (A)

Question. Which statement tells us about the financial position of the business?
a. Trading Account
b. Profit & Loss Account
c. Trial Balance
d. Balance Sheet
Answer. (D)

Question. Patents fall under which category
a. Current Assets
b. Fictitious Assets
c. Intangible Assets
d. None of these
Answer. (C)

Question. Return inward appearing in Trial balance are deducted from
a. Sales
b. Purchase
c. Return outward
d. Capital
Answer. (A)

Question. Return outward appearing in Trial balance are deducted from
a. Sales
b. Purchase
c. Return outward
d. Capital
Answer. (B)

Question. Depreciation for current year given in Trial balance. Its treatment will be
a. Debited to Trading Account
b. Deducted from Fixed Assets in Balance Sheet
c. Debited to Profit & Loss Account
d. Debited to Profit & Loss Account and Deducted from Fixed Assets in Balance Sheet
Answer. (D)

CBSE Class 11 Accountancy Chapter 9 Financial Statements Match The Following

Question. Match the activity with their respective heads:
Activity                                Heading
1. Recording            A. Profit and Loss A/c and Balance sheet
2. Classifying           B. Trial Balance
3. Summarizing       C. Ledger
4. Interpretation       D. Journal
Ans: 1-D, 2-c, 3-B, 4-A

Question. Match the below expenses with their respective expense head:
Expense                                 Expense Type
1. Salaries And wages         A. Direct Expenses
2. Interest on Loan              B. Operating Expenses
3. Wages and salaries        C. Non-operating Expenses
Answer.1-B,2-C,3-A

Question. Match the below expenses with their respective expense head:
Expense                                 Expense Type
1. Non-Cash expenses        A. Payment of salaries
2. Cash expenses               B. Depreciation and amortization

Question. Match the below items with respective A/c where it transferred:
1. Opening stock is debited to             A. Trading A/c
2. Closing stock is credited to              B. Profit and Loss A/c
3. Discount on purchase is credited
4. Carriage on purchase debited to
Answer. 1,2,4-A, 3-B

Question. Match the following account with their respective accounts:
          Items                                           Account
1. Profit on sale of fixed assets           A. Trading A/c
2. Bad debts recovered                       B. Profit and Loss A/c
3. Carriage on sales
4. Carriage on purchase
Answer.1, 2 & 3-B; 4-A

Question. Match the below items:
           Items                                         Types
1. Final Accounts                                A. Ledger
2. Books of final Entry                        B. Cash Book
3. Subsidiary and principal Book       C. Purchase book
4. Principal Book                                D. Profit and Loss A/c and Balance sheet
Answer. 1-D,2-A,3-B,4-A

Question. Match the following:
1. Profit and Loss A/c                     A. Position statement
2. Balance sheet                            B. Reconciliation statement
3. Bank reconciliation statement     C. Income statement
Answers 1-C, 2-A, 3-B

Question. Match the following:
1. Accrued Income                 A. Expense
2. Rent                                   B. Assets
3. Out-standing salary           C. Income
4. Discount received              D. Liability
Answer. 1-B, 2-A, 3-D, 4-C

Question. Match the type of entries with purpose:
Entries                                             Purpose
1. Journal Entry                     A. Entry in which cash A/c
                                                   and Bank A/c are
                                                   used in opposite
2. Adjustment entry               B. For transferring of balance
to next year set of
books
3. Contra entry                      C. For closing the accounts of current year
4. Opening Entry                   D. For recording a transaction

5. Closing Entry                     E. Entry for adjustment purpose.
Answer. 1-D, 2-E, 3-A, 4-B, 5-C

Question. Match the following
Expenditure                           Definition
1. Revenue Expenditure      A. Expenditure incurred
                                                 on purchase of fixed
                                                 assets or increasing the
                                                 value of fixed assets
2. Capital Expenditure        B. Expenditure benefit of
                                                which derived over the years.
3. Deferred Revenue          C. Expenditure benefit of 
Expenditure                            which exhausted within   
                                                the accounting period
Answer. 1-C, 2-A, 3-B

Question. Match the following with their format
1. Trading and profit and loss A/c           A. As on …….
2. Balance sheet                                    B. for the year ended……….
3. Trail Balance                                      C. As at………………
Answer. 1-B, 2-C, 3-A

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

 

Financial Statements of Sole proprietorship

1. From the following Trial Balance of Mahesh as on 31st December 2010, prepare Trading and Profit & Loss Account and Balance Sheet:

Prepare the Trading and Profit & Loss account for the year Dec 2010 and theB alance Sheet after considering the following information;-

a) Depreciation on furniture @ 10 % to be charged.

b) Debtors include an item of Rs 500/- due from a customer who has become insolvent.

c) Provision for bad debts at the rate of 5 % on sundry debtors is to be maintained.

d) Goods value Rs 1,500/- destroyed by fire and insurance company admitted a claim of Rs 1,000/-

e) Stock on 31st Dec 2010 was Rs 12,550/-

Q2. Prepare Trading and Profit and Loss account and Balance sheet form the following particulars as at 31st March 2015

Further you are required to take into consideration the following information:

a. Salary Rs 100 and taxes Rs 400 are outstanding but insurance Rs 50 prepaid.

b. Commission amounting to Rs 100 has been received in advance for work to be done next year.

c. Interest accrued on investment Rs 210

d. Provision for Doubtful debts is to be maintained at 20%

e. Depreciation on furniture is to be charged at 10% pa

f. Stock on 31st March 2015 was valued at Rs 4,500

g. A fire occurred on 25th March, 2015, and stock worth Rs 1,000 was destroyed. It was fully insured and the insurance company admitted the claim in full.

Q3. From the following Trial Balance of Shiv as on 31st December 2010,Prepare Trading and Profit & Loss Account and Balance Sheet:-

Adjustments:

a) Rent is paid up to 30th April 2011

b) Quarterly telephone bill Rs 3,000 paid up to 28th February 2011..

c) Closing stock is valued at Rs 40,000

d) Depreciation on Machinery@ 20% p.a on diminishing balance method.

e) Write off further bad debts Rs 800 and Provide for doubtful debts @ 5% on debto`

f) The proprietor took goods worth Rs 4,500 for his personal use.

Q4. The following is the Trial Balance of Mr.Alok on 31st March 2011
Trial Balance as on 31st March 2011.

Taking into consideration the following adjustments, Prepare the Trading and Profit and Loss Account for the year ended 31st March 2011, and Balance Sheet as at that date.

a) Closing Stock at Market Price Rs 10,000; Cost Price Rs 7,000

b) Provide Depreciation on Machinery at 10% p.a..

c) A fire occurred on 1st April 2011 destroying goods costing Rs 500.

d) Bicycle was sold at Book Value on 1st April 2010 and the cash was used for domestic need by Mr.Alok.This was not recorded.

Q5. The following trial balance is extracted from the books of Mahesh as on 31.12.2012

The following adjustments are to be made:

a) Stock in hand on 31.12.2012 was Rs 3,250

b) Depreciate buildings at rate of 5%, furniture and fittings @ 10% and motor vehicles @ 20%

c) ` 85 is due for interest on bank overdraft.

d) Salaries Rs 300 and taxes Rs 120 are outstanding

e) Insurance amounting to Rs 100 is prepaid

f) One-third of the commission received is in respect of work to be done next year.

g) Write off a further sum of Rs 100 as bad debt and provision for doubtful debts is to be made equal to 10% on sundry debtors. Prepare a Trading and Profit and Loss account for the year ending 31.12.2012 and Balance sheet as on that date.

 

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