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CBSE Questions for Class 11 Commerce Accountancy Financial Statements 1 Quiz 5 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Financial Statements 1
Quiz 5
Sales day book is opened to record __________.
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0%
All trading sales
0%
All trading sales other than on cash basis
0%
All trading sales other than on credit basis
0%
All sales of value less than Rs. $$5,000$$ per invoice
Which of the following method of inventory valuation is generally accepted by tax authorities.
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0%
FIFO
0%
LIFO
0%
Standard cost
0%
Base stock price
There are three partners in a firm A, B and C, D is admitted into the firm with 1/4 share of profit with a guaranteed profit of Rs. 15,000 p.a. given by A. The firm's total profit is Its. 56,What would be
share of profit of A
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0%
Rs. 20,000
0%
Rs. 13,000
0%
Rs. 12,500
0%
Rs. 17,500
Goods distributed as free sample are treated as.....
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0%
Sales
0%
Consumption
0%
Sales promotion expenses
0%
Dead loss
Explanation
Distribution of goods as the free samples is a business expense which will give benefit the business hence this has to be recorded as a sales promotion expense.
In this case, debiting the “advertisement (or free sample) account” and crediting the “purchases account.
Hence c is the correct answer.
Trading A/c shows ......
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0%
Gross profits only
0%
Gross loss only
0%
Gross profit or loss
0%
Net profit
Explanation
Trading account shows the gross profit or gross loss during an accounting year. It's main components are sales, services rendered in the credit side of such sales or services rendered in the debit side.
The trading account is prepared to know the gross profit or gross loss during the accounting period.
Hence c is the correct answer.
ABC Ltd. purchased a plant for Rs.60,000 payable Rs.15,000 in cash and balance by issue of $$16\%$$ debentures of Rs.100 each. How many debentures would be required to be issued to the vendor
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455 debentures of Rs.100 each
0%
450 debentures of Rs.100 each
0%
435 debentures of Rs.100 each
0%
460 debentures of Rs.100 each
What is new profit sharing ratio in Q. No. 37
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2:6:5
0%
6:4:5
0%
4:6:5
0%
5:6:4
Accumulated losses are shown on the
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0%
Assets side
0%
Liability side
0%
Profit and loss appropriation A/c
0%
Deducted from share capital
Divisible profits includes the following except.
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0%
Dividend equalization reserve A/c
0%
Capital reserve A/c
0%
Profit and loss A/c
0%
General reserve A/c
Which of these expense are part of profit and loss A/c
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0%
Power and fuel
0%
Wages and salary
0%
Carriage inward
0%
Salesmen's salary
Explanation
Salesmen's salary is an indirect expense which is shown debit side of profit and loss account.
It is an expense which help business to operate.
Hence d is the correct answer.
On $$31$$st December $$2013$$. A of Ahmedabad consigned $$1000$$ Boxes of SET TOP Box to D of Delhi (Cost price $$1,60,000$$) at a Proforma invoice price of $$25\%$$ profit in cost. Consignment accounted would be credited for stock loading by.
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0%
Rs. $$40,000$$
0%
Rs. $$45,000$$
0%
Rs. $$50,000$$
0%
Rs. $$33,000$$
Which of these expenses are shown in trading A/c
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0%
Carriage inward
0%
Carriage outward
0%
Postage and telegram expenses
0%
Salary
Explanation
The amount of transportation cost spent by the purchaser of the goods is termed as Carriage Inwards .
It is a direct expense which is shown in trading account in debit side.
Hence a is the correct answer.
From the following details calculate the commission payable to the Manager if the commission to be paid is $$11\%$$ of the net profit after charging such commission.
Profit before charging commission Rs. $$66,750$$
Rate of Commission $$11\%$$ of net profit after charging commission.
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0%
Rs. $$6,521$$
0%
Rs. $$6,013$$
0%
Rs. $$6,400$$
0%
Rs. $$6,675$$
Explanation
Amount of commission= Rs. 66750 x 11/111
= Rs. 6614
Therefore, B is the correct option.
Loss of stock to fire would lead to ___________.
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0%
no charge in total assets
0%
total assets to decrease
0%
total assets to increase
0%
total assets and owners equity to decrease
Explanation
Loss of stock by fire will lead to decrease in closing stock on the asset side of balance sheet and decrease in net income of profit and loss account i.e. decrease in owner's equity on the liability side of the balance sheet.
Hence correct option is D.
What are the consequences of debiting freight and transport charges incurred on a fixed assets to Freight and Transport A/c
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0%
Under statement of profit
0%
Over statement of loss
0%
Under valuation of fixed assets
0%
All the three
In which of the following circumstances an offer lapse?
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0%
When there is change in the law
0%
On the offer becoming illegal subsequently
0%
Non-acceptance of the offer within the prescribed time
0%
All the three
Wages and salary is shown in...........
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0%
Trading A/c
0%
Profit and loss A/c
0%
Profit and loss appropriation A/c
0%
Profit and loss adjustment A/c
Explanation
Wages and salary is a direct expense which is shown in the trading account whereas salaries and wages are the remunerations paid to office workers and not factory hence, it is shown in the profit and loss account.
Hence a is the correct answer.
When a person selling goods on credit he becomes a _________ in the books of the buyer.
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0%
Creditor
0%
Debtor
0%
Defaulter
0%
Offender
Explanation
The term creditor typically refers to a financial institution or person who is owed money, though its exact definition can change depending on the situation.
Therefore, A is the correct option.
Profit and loss a/c is also known as a/an ...........
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0%
Positional statement
0%
Income statement
0%
Fund flow statement
0%
Cash flow statement
Explanation
A P&L statement, often referred to as the income statement, is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal year or quarter.
Therefore, B is the correct option.
Which of these account will appear in Manufacturing account?
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0%
Salary
0%
Power and fuel expenses
0%
Telephone expenses
0%
Sales return
Explanation
.
A, B and C are three partners in a partnership firm dealing in building materials. A on his own without knowledge and consent of remaining partners signed a export order on which he made substantial profit. A is liable to ___________.
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0%
Retain the profit with him
0%
Render the true account of profit to the firm
0%
Share the profit with other partners
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Give some part of profit to other partners also
Which of these is an example of extraordinary items?
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0%
loss due to major fire
0%
profit on sale of raw materials
0%
arrears of wage revision paid in the current year
0%
all the three
Explanation
Extraordinary items consisted of gains or losses from events that were unusual and infrequent in nature that was separately classified, presented and disclosed on companies' financial statements.
It includes expenses to deal with a fire, earthquake, or uninsured losses from a flood, the gain or loss from early retirement of debt, and profit on the sale of raw materials.
Hence d is the correct answer.
Purchase of office equipment on 30 days credit will be recorded in ..
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0%
Purchase day book
0%
Purchase a/c
0%
General journal
0%
Cash book
How would you treat Rs. 5250 spent on the over haul of a second hand machine purchased
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0%
Revenue expenditure
0%
Loss in profit and loss A/c
0%
Capital expenditure
0%
Depreciation
From the following details, how much should be charged to profit and loss a/c as bad debts during the current year.
Provisions for bad debts a/c as on $$1-1-14$$ Rs. $$20,000$$
Actual bad debts a/c as on $$31-12-14$$ Rs. $$18,000$$
Debtors balance as on $$31-12-14$$ Rs. $$100,000$$
Provisions for bad debts to be made @$$5\%$$ of total debtors.
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0%
Rs. $$3,000$$
0%
Rs. $$4,000$$
0%
Rs. $$3,500$$
0%
Rs. $$4,500$$
Which of these A/c can have debit/credit balance.
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0%
Wages A/c
0%
Interest A/c
0%
Dividend paid A/c
0%
Cash in hand A/c
Explanation
Interest paid is the expense and it is having debit balance. On the other side, Interest received is the income and it is having credit balance.
Therefore, B is the correct option.
Specific identification method of inventory valuation involves __________.
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keeping track of the purchase price of each specific unit
0%
keeping track over the units being sold
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pricing closing stock at the actual price of each and every item not sold
0%
all the three
What is the new profit sharing ratio in question No. 43
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0%
5:4:3:3
0%
3:4:5:3
0%
5:3:4:3
0%
3:2:11:6
From the following calculate credit purchases during the year.
Creditors as on $$1-04-13$$ Rs. $$36,500$$
Payment made on creditors Rs. $$60,000$$
Discount given by creditors for early payment Rs. $$5,500$$
Creditors as on $$31-03-14$$ Rs. $$21,000$$
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0%
Rs. $$50,000$$
0%
Rs. $$54,000$$
0%
Rs. $$61,250$$
0%
Rs. $$52,800$$
Debit balance is F profits Loss a/c is
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0%
Shown on Assts side
0%
Deducted from reserves & surplus
0%
Shown under miscellaneous expenses A/c
0%
Any of above three
Explanation
Schedule III of the act prescribes what all has to be disclosed by the company in its financial statement. As per heading B of the Schedule, Debit balance of statement of profit and loss shall be shown as a negative figure or be deducted from the profits under the head “Surplus”.
Therefore, B is the correct option.
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers
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