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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
11−11−136,0005.00
18−11−139,0005.50
24−11−13
10,000
24−12−13
2,000
28−12−131,000
  • 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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