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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