CBSE Questions for Class 11 Commerce Accountancy Financial Statements 2 Quiz 5 - MCQExams.com

________ = exp paid + o/s expense - prepaid exp.
  • Total Expense
  • Total income
  • Total assets
  • Total liabilities
If the rent received in advance 2,The adjustment entry will be ________.
  • debit profit and loss account and credit rent account
  • debit rent account credit rent received in advance account
  • debit rent received in advance account and credit rent account
  • none of the above
XYZ's A/c appeared in the Books of ABC Associated as a Debtor owing Rs.5000 to the Firm. XYZ has been declared insolvent and a final dividend of Rs.0.25 in a rupee is expected to be realised from his estate. Find the amount likely to become bad debt from XYZ.
  • Rs.1250
  • Rs.3750
  • Rs.125
  • Rs.375
Accrued Income means _______.
  • Income not earned
  • Income earned but not received in cash
  • Income received in advance but not earned
  • Income earned but realization doubtful
Expenses paid but not accounted as expenses means ________.
  • contingent liability
  • expenses paid in advance but services yet to be enjoyed
  • outstanding expenses
  • capitalised expenditure
Goods worth Rs. 36,000 were lost in fire. The goods were insured to the extent of Rs.20,Loss on account of fire would be accounted for as under________.
  • Debit Trading A/c Rs. 36,000 and credit profit and loss A/c by Rs. 16,000
  • Credit Traning A/c 36,000 and debit Profit and Loss A/c Rs. 16,000, Insurance Co. debit by Rs. 20,000
  • Credit Trading and Loss A/c Rs. 36,000 and Debit Trading A/c Rs. 16,000
  • Credit Trading A/c Rs. 36,000 and debit Profit and Loss A/c Rs. 16,000
Adjustment entries are those which are passed________.
  • at the end of the year
  • at the beginning of the year
  • for adjustment of prepaid and outstanding expenses/income
  • for suffering profit
In a mercantile system of accounting adjustment is required for _______.
  • Prepaid expenses
  • Outstanding expenses
  • Accrued income/income received in advance
  • All the three
From the following details calculated the managerial commission.
Net profit before charging managerial commission Rs.65,000. Managerial commission 11% after charging such commission.
  • Rs.6,441
  • Rs.6,500
  • Rs.6,290
  • Rs.6,360
Rs.1250 was recovered from Sohan a Debtor which represent merely 0.25 in a rupee. Find the amount actually becoming bad debt if Sohan has been declared insolvent.
  • Rs.2500
  • Rs.3750
  • Rs.1250
  • Rs.5000
Salary outstanding A/c Rs 5000 appears in the trial balance along with salary A/c of RsHow this will be accounted for in the books of accounts
  • Salary outstanding A/c Rs 5000 to be shown in the balance sheet on the liability side
  • Salary A/c to be debited to profit and loss A/c by Rs 20,000
  • Salary A/c to be debited to profit and loss A/c by Rs 5,000
  • Salary outstanding A/c Rs 5000 to be credited to profit and loss A/c
In case of winding up of firm if the asset of the firm are not sufficient to pay the partner capital, the deficiency in capital _______________________.
  • will be made good by the Registrar of firms
  • will be borne by the partners in their profit sharing ratio
  • will be borne by the partners in their capital ratio
  • will be borne by the partners in the ratio of their net worth
Non - provision for outstanding bonus amounting to Rs.50,000 of the employees will lead to __________.
  • suppression of profit by Rs.50,000.
  • over statements of profit by Rs.50,000.
  • overvaluation of inventory
  • none
From the following details calculate the net profit after charging managerial commission if the managerial commission is 11% of net profit before charging such commission.
Net profit before charging managerial commission Rs.65,000
  • Rs.58,558
  • Rs.60,300
  • Rs.57,850
  • Rs.60,360
Rent prepaid a/c appearing in the trial balance is ___________.
  • shown on the liability side of balance sheet
  • shown on the assets side of the balance sheet
  • shown on debit side of profit and loss A/c
  • credited to profit and loss A/c
On 1st January 13, $$X$$ paid Rs. $$120,000$$ being rent for the period upto 31.12.If the accountants are closed on 31.03.The amount of rent to be expensed during 2012-13 will be _____
  • Rs. $$30,000$$
  • Rs. $$90,000$$
  • Rs. $$120,000$$
  • Rs. $$80,000$$
Interest on advance money provided by the Partner can be paid from ____________.
  • profits
  • out of capital
  • both (a) and (b)
  • from the money provided by Central Government
From the following details find out the amount to be debited to profit and loss as fresh provision for doubtful debts during 2013-14.
Debtors RS. $$30,000$$ as on 31.03.14
Bad debts during the year Rs. $$1500$$
Provision for bad debts as on 1.04.13 Rs. $$2000$$
Provision for doubtful debts to be kept at $$5$$% of total debtors
  • Rs. $$1500$$
  • Rs. $$1000$$
  • Rs. $$3000$$
  • Rs. $$2000$$
From the following details calculate the net profit after charging the managerial commission.
Net profit before charging managerial commission Rs.65,000. Managerial commission 11% after charging such commission.
  • Rs.58,559
  • Rs.60,300
  • Rs.59,101
  • Rs.60,360
On 1st January 13, $$X$$ paid Rs. $$120,000$$ being rent for the period upto 31.12.If the accountants are closed on 31.03.Rent charges for the year ending 31.03.13 to be shown as Pre-paid rent will be _______
  • Rs. $$90,000$$
  • Rs. $$30,000$$
  • Rs. $$12,000$$
  • Rs. $$50,000$$
From the following details calculate the managerial commission, if the managerial commission is 11% net profit before charging such commission.fore 
Net profit before charging managerial commission Rs.65,000
  • Rs. 6,946
  • Rs.7,230
  • Rs.7,150
  • Rs. 6,860
Which of the following statements is not true?
  • It is not true that all partners can have limited liability in a limited partnership
  • Capital contributions do not have to be equal from each partner
  • A minor has a right to access and inspect books of accounts of partnership firm in which he is partner
  • Interest on capital is a reward for the different amounts of work partners may perform
Consider the following adjusting entries:
Outstanding expenses : Expense A/c Dr To Outstanding Expenses A/c
Prepaid expenses : Expenses A/c Dr To Prepaid Expenses A/c
Income earned and not received : Income A/c Dr To Outstanding Income A/c
Income received in advance : Income A/c Dr To Prepaid Income A/c
Which of the adjusting entries given above is/are correct?
  • $$1$$ and $$4$$
  • $$2$$ and $$3$$
  • $$1$$ only
  • $$1, 2, 3$$ and $$4$$
Adjustment entries are necessary in accrual system of accounting because ____________.
  • Of existence of accounting period
  • Of matching revenue and expenses concept
  • Some transactions span more than one accounting period
  • All the three
Which of the following statement is not true ______________________.
  • If Del credere's commission is allowed, bad debt will not be recorded in the books of consignor
  • If Del credere's commission is allowed, bad debt will be debited in the Consignment Account
  • Del credere's commission is allowed by consignor to consignee
  • Del credere's commission is calculated on all sales by consignee
A and B are two partners in a firm sharing profit and loss equally. C is admitted as a third partner for $$1_{/3}$$ share of profit for which he agreed to pay Rs. $$10,000$$ to each partner as his share of good will privately. How this will be accounted for in the books of the firm.
  • No entry being paid privately
  • Credit each partners capital by Rs. $$10,000$$ and debit C's Capital by Rs. $$20,000$$
  • Credit each partners capital by Rs. $$10,000$$ and debit goodwill a/c by Rs. $$20,000$$
  • Credit each partners capital by Rs. $$10,000$$ and debit C's current a/c by Rs. $$20,000$$
A and B are partners in a firm with profit sharing ratio of 2:3, they admit C as a partner for 1/3 share of profit. What would be the sacrificing ratio of A and B?
  • 1:1
  • 5:3
  • 3:2
  • 2:3
The adjustment to be made for provision for doubtful debt is ___________________.
  • Credit profit and loss account and deduct the provision from the debtors
  • Debit profit and loss account deduct the provision from debtors
  • Credit profit and loss account and add the provision to debtors
  • Debit profit and loss account and add the provision to debtors
The adjustment to be made for interest on drawings is ________________.
  • Debit profit and loss account and add interest to drawings
  • Credit profit and loss account and add interest to drawings
  • Debit profit and loss account and deduct interest from drawings
  • Credit profit and loss account and deduct interest from drawings
Non- provision for doubtful debts will lead to ......
  • Under valuation of closing stock
  • Over statement of profit
  • Over statement of working capital
  • Evasion of tax
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers