CBSE Questions for Class 11 Commerce Accountancy Financial Statements 1 Quiz 6 - MCQExams.com

Retail method of inventory valuation is based on which of the following assumption.
  • GP Ratio is same
  • Profit and loss is same
  • Closing inventory and total goods available for sale contains the same proportion of high cost and lost cost goods
  • None
Transfer to Capital Redemption Reserve can be from
  • Profit and Loss A/c
  • Capital reserve
  • Profit prior to incorporation
  • Share forfeited A/c
Rights of the unpaid seller against the goods are provided for in Chapter of the Sale of Goods Act.
  • $$5$$
  • $$4$$
  • $$6$$
  • $$3$$
ABC associated intends to revalue its good will on the basis of $$3$$ years purchase of average profits of last $$4$$ years. Net profit of the past four years were Rs.$$32,000$$, Rs.$$40,000$$, Loss Rs.$$4,000$$, Profit Rs.$$42,000$$. The goodwill of the firm will be.....
  • $$80,000$$
  • $$88,000$$
  • $$82,500$$
  • $$90,000$$
......is an attempt to identify the quantity and investment made in Human resources that are not accounted for under the conventional accounting system.
  • Human Resource Accounting
  • Management Accounting
  • Responsibility Accounting
  • Social Accounting
Divisible profits excludes................
  • Security premium A/c
  • General Reserve A/c
  • Contingency fund A/c
  • Profit and loss A/c
Goods worth Rs.$$5,000$$ were purchased by ABC on which the traders allowed Rs.$$200$$ trade discount and offered to give $$5\%$$ cash discount of immediate payment is made. The purchase a/c will be debited by...
  • Rs. $$5,000$$
  • $$4,550$$
  • $$4,750$$
  • $$4,800$$
What will be the value of closing stock on $$31-12-13$$ under weighted average method from the following details of Receipts and Issues.
DateReceiptRateIssue
$$11-11-13$$$$6,000$$$$5.00$$
$$18-11-13$$$$9,000$$$$5.50$$
$$24-11-13$$
$$10,000$$
$$24-12-13$$
$$2,000$$
$$28-12-13$$$$1,000$$
  • Rs. $$11,000$$
  • Rs. $$10,000$$
  • Rs. $$12,100$$
  • Rs. $$11,110$$
Total assets of a firm are Rs. 1,20,000, outside liability amount to Rs. 40,000, total capital contributed by the partners would be
  • Rs. 60,000
  • Rs. 1,40,000
  • Rs. 40,000
  • Rs. 80,000
Personal A/c relate to
  • Expenses and losses
  • Incomes and gains
  • Clients, customers, suppliers etc.
  • All liabilities
Which of these transaction effect both trading a/c and profit and loss a/c
  • goods distributed as free sample
  • freight and insurance charges
  • commission on sales
  • salary and wages
Which of these is a charge to profit and loss a/c?
  • Provision for doubtful debts
  • Investment fluctuation fund
  • Interest on debentures
  • Capital redemption reserve
Opening stock of a trading concern excludes.....
  • Process material
  • Semi finished goods
  • Raw materials
  • All the three
From the following details find out the amount to be debited to profit and loss as fresh provision for doubtful debts during 07-08
Balance as on 31.03.Debtors Rs. 30,000
Bad debt during the year Rs. 1,500
Provision for bad debts as on 1.04.07 Rs. 2,500
Provision for doubtful debts to be kept at 5% of total debtors
  • Rs. 1,500
  • Rs. 500
  • Rs. 3,000
  • Rs. 2,000
A, B and C are three partner sharing profit and loss in the ratio of 6:5:4, B retires from the firm. What is the new profit sharing ratio of the remaining partners?
  • 1:3
  • 3:2
  • 2:3
  • 3:4
Revenue from sale of trading goods is an example of..
  • revenue profit
  • capital receipt
  • revenue receipt
  • capital profit
Which of these is credited to revaluation a/c
  • decrease in provision for doubtful debts
  • decrease in liability
  • upward revaluation of Plant and Machinery
  • all the three
Profit is said to have been earned if ___________.
  • Assets exceeds liabilities
  • Revenue exceeds expenditure
  • Cash inflow exceeds cash outflow
  • Debtors are more than the creditors
What is the appropriate stage for recording the transaction of sales by a manufacturer
  • On despatch of the goods
  • On receipt of payments
  • On acceptance of the goods by the customer
  • On production of the goods
If the sale is Rs. 5,000 and the rate of profit on cost of goods sold is 25%, then the cost of goods sold is
  • Rs. 3,000
  • Rs.4,000
  • Rs. 2,400
  • None of above
Interest accrued and due is shown under ____________.
  • long term liabilities
  • provisions
  • current liabilities
  • deferred expenditure
Work-in-progress stands for
  • Goods awaiting dispatch
  • Semi manufactured goods
  • Goods yet to be packed
  • Stock lying in the godown
Formula of Operating profit is equal to ___________.
  • Net profit + Non operating expenses - Non operating incomes
  • Net profit - Non operating expenses - Non opertaing incomes
  • Net profit + Non operating expenses + Non operating incomes
  • Net profit - Non operating expenses/ Non operating incomes
When the Profit and Loss A/c and Balance sheet are prepared for various companies of a group of companies, this is called..........
  • Consolidated A/cs
  • Aggregated A/cs
  • Combination of A/cs
  • Summing up of A/cs
From the following details find out the amount to be debited to profit and loss as fresh provision for doubtful debts during $$13-14$$.
Balance as on $$31.03.14$$. Debtors Rs. $$45,000$$
Bad debt during the year Rs. $$2,000$$
Provision for bad debts as on $$1-4-13$$ Rs. $$1,500$$.
Provision for doubtful debts to be kept at $$10\5$$ of total debtors.
  • Rs. $$1,500$$
  • Rs. $$2,500$$
  • Rs. $$3,000$$
  • Rs. $$4,000$$
Unrealised profit is debited to _____________ a/c.
  • Profit and loss a/c
  • Profit and loss appropriation a/c
  • Trading a/c
  • Profit and loss adjustment a/c
Trading and profit and loss a/c is generally prepared by ___________.
  • Charitable institutions
  • Clubs
  • Hospitals
  • Trading and manufacturing concerns
From the following abstract of trial balance estimate the profit of the firm during $$07-08$$.
Capital Rs. $$3,000$$, Revenue Rs. $$8000$$, Liabilities Rs. $$5,000$$, Reserve Rs. $$5,000$$, Outstanding expenses Rs. $$1,000$$ Sundry assets Rs. $$10,000$$, Expenses Rs. $$2,000$$, Interest on bank loan Rs. $$1,000$$, Pre-paid expenses Rs. $$1,500$$. Closing stock Rs. $$500$$.
  • Rs. $$2,000$$
  • Rs. $$3,000$$
  • Rs. $$4,000$$
  • Rs. $$5,000$$
A, B and C are three partners sharing profit and loss equally. B has drawn the following amount from the business.
$$1.4.13$$ Rs. $$10,000$$
$$1.9.13$$ Rs. $$20,000$$
Interest on drawing is charged at $$10\%$$ PA. Find the net profit of the firm if the profit before charging interest on drawing for the year ending $$31.12.13$$ amounted to Rs. $$8,950$$.
  • Rs. $$10,367$$
  • Rs. $$8,870$$
  • Rs. $$9,980$$
  • Rs. $$8,950$$
From the following details calculate net profit under cash basis of accounting.
Goods sold for cash Rs. $$600,000$$, Credit sales Rs. $$25,000$$
Cash purchases Rs. $$500,000$$, Credit purchases Rs. $$25,000$$
Wages paid Rs. $$25,000$$, Outstanding expenses Rs. $$10,000$$
Rent paid Rs. $$5,000$$, Rent outstanding expenses Rs. $$2,000$$
Depreciation on building Rs. $$10,000$$
Loss on sale of fixed assets Rs. $$1,000$$.
  • Rs. $$70,000$$
  • Rs. $$20,000$$
  • Rs. $$52,000$$
  • Rs. $$40,000$$
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers