CBSE Class 11 Accountancy Financial Statements Worksheet Set 01

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

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

Question. Closing stock is valued at ………………… or …………… whichever is lower.
Answer. Cost price or market price

Question. While making final accounts, prepaid expenses is subtracted from respective expenses in order to show………....... year expenses.
Answer. Current

Question. Motor car of Rs. 1,00,000 was purchased on 1st October, 2018. Rate of Depreciation is 10%. Amount of depreciation to be shown in profit & Loss Account is Rs.…….
Answer. Rs. 5,000

Question.Withdrawal of Goods by proprietor will be …………………. from Purchases in trading account.
Answer. Deducted

Question. Annual Insurance premium paid Rs. 10,000 on 1st October, 2017. Amount of insurance premium to be shown in profit & Loss account for the year ended 31st March, 2018 is Rs.………… .
Answer. 5,000

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

Question. Debtors of Rs. 8,60,000; Provision is to be created for doubtful debts @10%. Amount of provision in profit & Loss account will be Rs.……………….. .
Answer. 86,000

Question. Goods lost by theft will be deducted from ………………. .
Answer. Purchase

Question. A manager is entitled for a commission of 8% on net profit before charging such commission. Net profit before charging commission is Rs. 5,00,000. Amount of manager’s commission debited to profit & loss account is Rs.…….. .
Answer. 40,000

Question. Sales is Rs. 1,20,000; Profit is 33 1/3 on cost. Amount of cost of goods sold will be Rs. ……………….. .
Answer. 90,000

Question. Gross profit is Rs. 1,50,000. Selling expenses Rs. 10,000, commission paid Rs. 5,000, office expenses Rs. 20,000. Operating profit will be Rs ………………… .
Answer. 1,15,000

CBSE Class 11 Accountancy Chapter 9 Financial Statements True and False

1. Insurance premium paid is Rs.1,000 and outstanding premium is Rs. 300 . The amount of insurance debited to P&L a/c is 700. (False)
2. The manager is entitled for a commission of 10% on net profit after charging his commission . The net profit for the year ended is Rs.66,000. the commission payable to him is Rs 6000. (True)
3. The net profit of a firm is Rs. 44,000 before charging his commission. The commission payable to manager before charging at 5% is Rs 2,200. (True)
4. The balance of debtor in balance sheet shows Rs 40,000, the provision is to be maintained at 10% . The amount of provision will be Rs 4,000 . (True)
5. The balance of salary in trial balance was Rs 6,600. The unpaid salary was of one month. The amount of unpaid salary to be shown in balance sheet is Rs 660 . (False)
6. The credit balance of commission a/c in trial balance was Rs 10,000. The advance commission amounted to Rs. 1,500. The amount of commission to be credited to P&L a/c will be Rs 8,500. (True)
7. The balance of insurance premium paid by the firm amounted to Rs. 7200 which was paid on 1 Nov. 2018. The amount of insurance debited to P&L a/c on 31st March 2019 is Rs 3000. (True)
8. Wages a/c has a balance of Rs. 9,000 in the trial balance. In the adjustment it was given that wages has to be paid Rs 700 per month, the amount of prepaid wages shown in the balance sheet is Rs 700. (False)
9. 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. (False)
10. 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. (False)

CBSE Class 11 Accountancy Chapter 9 Financial Statements Match The Following

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 items in their respective category:
1. Bill receivable discounted from bank     A. Current Assets
but not matured
2. Bills receivable                                      B. Contingent Liability
3. Bills Payable                                         C. Current Liability
4. Guarantee given by the firm
d. Non Current Liabilities
Answer. 1-B, 2-A, 3-C 4-B

Question. Match the following transaction with their treatment in accounts:
Transactions                                                                 Treatment
1. Machinery purchased for sale purpose                 A. added to machinery A/c
2. Machinery purchased for production purpose      B. Added to purchases A/c
3. Installation paid on machinery                              C. Debit side of P&L A/c
Answer. 1-B, 2&3-A

Question. Match the following:
1. Cost of goods sold              A. Sales 5,00,000 – cost of goods sold 3,00,000
2. Gross Profit 2,00,000         B. Gross profit 8, 00, 000 – Operating Expenses
3. Net Profit                            C. Opening stock 2,00,000 + net purchases 50,000 +
                                                   direct expenses 10,000 – Closing stock 6,000
4. Operating Profit                 D. Gross profit 30,000 – Indirect Expenses 10,000
Answer. 1-C, 2-A, 3-D, 4-B

Question. Match the following:
1. Closing stock in Trial Balance                     A. Trading A/C
2. Closing stock given as an adjustment         B. Balance sheet
3. Purchase in Trial Balance                           C. Trading and profit and loss account
4. Salary as an adjustment in Trial Balance     D. Profit and loss A/c and Balance sheet
Answer. 1-B, 2-a&B 3-A, 4-D

Question. Match the taxes levied on type of sales:
1. Input IGST             A. on sales within state
2. Output IGST         B. On purchase within State
3. Input CGST          C. on sales outside state
4. Output CGST       D. On Purchase from Outside state.
Answer. 1-D, 2-C, 3-B, 4-A

Question. Match the effect of transaction on net profit:
Transaction                            Effect on Net profit
1. General donation             A. No effect on net profit
2. Bad debts recovered       B. Decrease in net profit
3. Drawing in cash
4. profit                                C. Increase in net
Answer. 1-B, 2- C, 3-A

Objective Questions

Question. Provision for Doubtful Debts, in excess of the required provision, is credited to
(a) Debtors Account.
(b) Trading Account.
(c) Profit and Loss Account.
(d) Capital Account.

Answer :  C

Question. Final Accounts are prepared :
(a) At the end of calendar year
(b) At the end of Assessment year
(c) On every Diwali
(d) At the end of Accounting year

Answer :  D

Question.  Following information is extracted from the Trial Balance of a business: Sales: Rs. 1,00,000; Purchase: Rs. 60,000; Wages Rs. 21,000.
Closing stock was Rs. 3,000 more than opening stock. One third of the wages was charged to cost of goods sold in the Trading Account. What was the Gross Profit?
(a) Rs. 30,000.
(b) Rs. 33,000.
(c) Rs. 36,000.
(d) Rs. 40,000.

Answer :  C

Question.  In the Trial Balance, Sundry Debtors are shown at Rs. 2,25,000, Bad Debts Rs. 25,000 and Provision for Doubtful Debts Rs. 5,000. 5% Provision for Doubtful Debts is to be maintained and 2% Provision for Discount on debtors is to be made. The amount of Provision for Discount on Debtors would be
(a) Rs. 4,293.
(b) Rs. 4,500.
(c) Rs. 2,925.
(d) Rs. 4,275.

Answer :  C

Question. Trading and Profit and Loss Account is prepared :
(a) For a particular period
(b) On a particular date
(c) For the whole year
(d) None of above

Answer :  A

Question.  Accrued Income, if given in the Trial Balance, is shown in
(a) Trading Account, as addition to the respective income.
(b) Profit and Loss Account, as addition to the respective income.
(c) Profit and Loss Account, as addition to the respective income and in the Balance Sheet, as an asset.
(d) Balance Sheet as an asset.

Answer :  D

Question. Balance Sheet is prepared :
(a) For a particular period
(b) On a particular date
(c) For the whole year
(d) None of the above

Answer :  B

Question.  On 1st April, 2019 M/s Omega Bros., had a Provision for Doubtful Debts of Rs. 6,500. During 2019-20, Rs. 4,200 proved irrecoverable and it was decided to maintain the Provision for Doubtful Debts @ 5% on debtors which stood at Rs. 1,96,500 before writing off bad debts. Amount of net provision debited to Profit and Loss Account will be
(a) Rs. 9,500.
(b) Rs. 8,200.
(c) Rs. 6,500.
(d) Rs. 7,315.

Answer :  D

Question.  Prepaid Expenses, if given in the Trial Balance, is shown in
(a) Trading Account, as deduction from the respective expense.
(b) Profit and Loss Account, as deduction from the respective expense.
(c) Trading and Profit and Loss Account, as deduction from the respective expense and in the Balance Sheet, as an asset.
(d) Balance Sheet.

Answer :  D

Question. Cost of Goods Sold Rs. 1,50,000; Closing Stock Rs.40,000; Opening Stock Rs.60,000; Amount of purchase will be
(a) Rs. 1,30,000
(b) Rs. 1,70,000
(c) Rs.50,000
(d) None of these

Answer :  A

Question.  Income received in advance is deducted from the income because of
(a) Revenue Recognition Concept.
(b) Accrual Concept.
(c) Matching Concept.
(d) Prudence Concept.

Answer :  C

Question. Opening Stock Rs.8,500
Purchases Rs.30,700
Direct Wages Rs.4,800
Interest on Loan Rs.2,800
Closing Stock Rs.9,000
Cost of goods sold will be .................
(a) Rs.30,000
(b) Rs.32,000
(c) Rs.35,000
(d) Rs.40,000

Answer :  C

Question. Capital Expenditure and Revenue Expenditure
(a) are distinguished.
(b) are not distinguished.
(c) may or may not be distinguished.
(d) must not be distinguished.

Answer :  A

Question. Capital Receipts and Revenue Receipts
(a) are distinguished.
(b) are not distinguished.
(c) may or may not be distinguished.
(d) must not be distinguished.

Answer :  A

Question. Balance of Provision for Doubtful Debts (As on 1st April, 2019): Rs. 1,250; Bad Debts during the year were: Rs. 300. Provision for Doubtful Debts is required @ 5% on debtors of Rs. 10,000. Provision for Doubtful Debts credited to Profit and Loss Account will be
(a) Rs. 400.
(b) Rs. 500.
(c) Rs. 600.
(d) Rs. 450.

Answer :  D

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

Question. Wages paid for erection of Machinery are debited to
a. Deferred wages account
b. Machinery Account
c. Profit & Loss Account
d. Wages Account
Answer. (B)

Question. Preliminary exp. fall in which category
a. Revenue Receipt
b. Deferred Revenue expenditure
c. Intangible assets
d. Deferred Capital receipts
Answer. (B)

Question. If opening stock is Rs. 30000, closing stock is Rs. 40000, Purchases are Rs. 80000, Direct Expenses Rs. 30000. What will be the value of Cost of Goods sold
a.10000
0 b. 120000
c. 90000
d. 80000
Answer. (A)

Question. If insurance premium paid Rs. 2000 and prepaid insurance is Rs. 300. The amount of insurance premium shown in profit & Loss Account will be…
a. Rs. 2300
b. Rs. 2000
c. 1700
d. 300
Answer. (C)

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 these
Answer. (C)

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 these
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 these
Answer. (B)

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

Question. Bad debts mentioned in Trial balance will be shown in
a. Trading Account
b. Assets
c. Profit & Loss Account
d. None of these
Answer. (C)

Question. Wages and Salaries account is shown in
a. Profit & loss Account
b. Assets
c. Trading Account
d. None of these
Answer. (C)

Question. Give true or false. Goodwill is a tangible asset
Answer: False

Question. A balance sheet is arranged in a particular date and not for a particular accounting period.
Answer: True

Question. Balance of petty cash is 1. Expenses 2. Income 3. Liability 4. Asset
Answer: Asset

Very Short Answer Type Question

Question. Which are the statement that is included in the financial statement?
Answer: The statement that is included in the financial statement are.
• Balance Sheet
• Trading and Profit and Loss A/c

Question. Which is gross profit?
Answer: Gross profit is the surplus of a selling price of a product over the cost of goods sold. 

Question. State the formula to calculate the cost of goods sold.
Answer: Cost of goods sold = Sales – Gross Profit Or Opening Stock + Purchases + Direct Expenses – Closing Stock

Question. Give two characteristics of the balance sheet.
Answer: The two characteristics of the balance sheet are.
• Determine the financial position of the enterprise on a specific date
• The balance sheet has two sides Assets and Liabilities

Q1) What are financial statements? Enumerate the users of such statements.

Q2) Explain with the help of an example, the meaning of contingent liability.

Q3) Distinguish between:

   a) Trading and Profit and Loss A/c and Balance sheet

   b) Tangible assets and intangible assets

  c) Fixed assets and current assets

  d) Trial balance and Balance sheet

  e) Capital expenditure and revenue expenditure.

Q4) Opening stock- Rs. 5,000; sales- Rs. 16,000; carriage inward- Rs.1,000; sales return- Rs.1,000; gross profit- Rs.6,000; purchases- Rs.10,000; purchase returns- Rs.900. Calculate the closing stock and the cost of goods sold.