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CBSE Questions for Class 11 Commerce Accountancy Financial Statements 2 Quiz 7 - MCQExams.com

If prepaid rent appears in trial balance, while preparing the final accounts it will be shown in ____________.
  • Profit & Loss A/c and Assets side of Balance Sheet
  • Profit & Loss A/c and Liabilities side of Balance Sheet
  • Assets side of Balance Sheet
  • Liabilities side of Balance Sheet
A prepayment of insurance premium will appear in the Balance Sheet and in the Insurance Account respectively as.
  • A liability and a debit balance
  • An asset and a debit balance
  • An asset and a credit balance
  • None of the above
Advance received from customers is___________. 
  • an item of current liability
  • an item of non-current asset
  • an item of contingent liability
  • an item of non-cash cost
Following are the extracts from the Trial Balance of a firm:
ParticularsDr. (Rs)Cr. (Rs)
Sundry debtors5,00,000-
Provision for doubtful debts-50,000
Bad debts30,000-
Additional information:
(I) Additional bad debts Rs.30,000
(II) Keep the provision for bad debts @ 10% on debtors.
The net amount of provision for bad debts that will appear in the Profit and Loss Account will be ________. 
  • Rs.80,000
  • Rs.75,000
  • Rs.57,000
  • Rs.45,000
Which of the following statements is/are NOT correct?
  • Provision for bad debts appears as a liability on the balance sheet
  • The provision for bad debts is owed to the proprietor
  • Bad debts could be less than the provision for bad debts
  • Bad debts could exceed the provision for bad debts
If Incomes received in advance appears in the trial balance, it__________.
  • will be shown in Profit and Loss Account by way of deduction from the income received
  • will be credited to Profit and Loss Account
  • will not be shown any where
  • will be shown on the liabilities side of the balance sheet only
In case of final accounts of manufacturing concerns closing stock of finished goods appears in __________ & ____________.
  • Manufacturing Account, Balance Sheet
  • Trading Account, Balance Sheet
  • Profit & Loss Account, Balance Sheet
  • Manufacturing Account, Trading Account
The adjustment to be made for prepaid expenses is ___________.
  • Add prepaid expenses to respective expenses and show it as an asset.
  • Deduct prepaid expenses from respective expenses and show it as an asset.
  • Add prepaid expenses to respective expenses and show it is a liability.
  • Deduct prepaid expenses from respective expenses and show it as a liability.
Outstanding expenses refer to those expenses which have been _____________________.
  • Paid out not incurred during the current accounting period.
  • Incurred but not paid during the current accounting period.
  • Incurred but not paid during current accounting period.
  • Paid but not incurred during the previous accounting period.
In a Trial balance, debtors appear at Rs.4,50,000. Provision for doubtful debts at 5% is to be made after considering the following adjustments:
An amount of Rs.10,000 is included in debtor who is bankrupt and his estate is expected to realize 50 (fifty) paise in the rupee.
Debtors include an amount of Rs.20,000 for goods supplied to proprietor
Bills receivable include a dishonoured bill for Rs.10,000
Goods sold on 'Sales or Return' basis not approved by the customer for Rs.50,000 recorded as sale
Debtors include an amount of Rs.5,000 from a customer whose financial position is very doubtful
The total provisions to be made for doubtful debts is ________. 
  • Rs.28,750
  • Rs.22,500
  • Rs.24,250
  • None of these
If actual bad debts are more than the provision for bad debts, then there will be a.
  • Credit balance of provision for bad debts account
  • Debit balance of provision for bad debts account
  • Debit balance of bad debts account
  • Debit balance of discount on debtors account
While preparing final account, to make provision for bad debts which of the following adjustment entry will be passed?
Debtors A/c
To Profit & Loss A/c
Dr.
Provision for Bad Debts A/c
To Debtors A/c
Dr.
Provision for Bad Debtors A/c
To Trading A/c
Dr.
Profit & Loss A/c
To Provision for Bad Debts A/c
Dr.
  • A
  • B
  • C
  • D
While preparing final account, to record outstanding income which of the following adjustment entry will be passed?
Income A/c
To Outstanding Income A/c
Dr.
Outstanding Expenses A/c
To Income A/c
Dr.
Profit & Loss A/c
To Outstanding Income A/c
Dr.
Outstanding Income A/c
To Income A/c
Dr.
  • A
  • B
  • C
  • D
While preparing final account, to record bad debts which of the following adjustment entry will be passed?
Debtors A/c
To Bad Debts A/c
Dr.
Bad Debts A/c
To Debtors A/c
Dr.
Bad Debts A/c
To Profit & Loss A/c
Dr.
Debtors A/c
To Provision for Bad Debts A/c
Dr.
  • A
  • B
  • C
  • D
____________ are those entries which are passed at the end of each accounting period for the purpose of adjusting various nominal and other accounts so that true net profit or loss is indicated in profit and loss account and the balance sheet represents a true and fair view of the financial position of an enterprise.
  • Opening entries
  • Adjustment entries
  • Closing entries
  • None of the above
While preparing final account, to adjust income received in advance which of the following adjustment entry will be passed?
Income Received in Advance A/c
To Income A/c
Dr.
Income A/c
To Income Received in Advance A/c
Dr.
Income Received in Advance A/c
To Outstanding Income A/c
Dr.
Income Received in Advance A/c
To Profit & Loss A/c
Dr.
  • A
  • B
  • C
  • D
While preparing final account, to record goods are distributed as free samples- which of the following adjustment entry will be passed?
Advertisement A/c
To Capital A/c
Dr.
Advertisement A/c
To Purchase A/c
Dr.
Advertisement A/c
To Trading A/c
Dr.
(B) or (C)
  • A
  • B
  • C
  • D
While preparing final account, to adjust prepaid expenses which of the following adjustment entry will be passed?
Prepaid Expenses A/c
To Expenses A/c
Dr.
Outstanding Expenses A/c
To Prepaid Expenses A/c
Dr.
Prepaid Expenses A/c
To Outstanding Expenses A/c
Dr.
Prepaid Expenses A/c
To Profit & Loss A/c
Dr.
  • A
  • B
  • C
  • D
Prepaid expenses are valued on the Balance Sheet at.
  • Replacement cost
  • Current cost
  • Cost to acquire less accumulated amortization
  • Cost less expired portion
While preparing final account, to record closing stock which of the following adjustment entry will be passed?
Purchases A/c
To Stock A/c
Dr.
Trading A/c
To Stock A/c
Dr.
Stock A/c
To Trading A/c
Dr.
Stock A/c
To Capital A/c
Dr.
  • A
  • B
  • C
  • D
While preparing final account, to record commissions payable to manager- which of the following adjustment entry will be passed?
Profit & Loss A/c
To Commission Payable A/c
Dr.
Commission Payable A/c
To Profit & Loss A/c
Dr.
Manager A/c
To Commission Payable A/c
Dr.
Profit & Loss A/c
To Manager A/c
Dr.
  • A
  • B
  • C
  • D
From the following details find out the closing capital that will be appear in balance sheet on 31−12−2015.
ParticularsRs.
Capital on 1−1−201514,00,000
Drawings5,000
Repair2,000
Net profit before manager commission6,62,900
Debtors1,50,000
Provision for bad debts @ 6%.
The manager is entitled commission of 5% of net profit after charging his commission.
  • Rs. 20,26,333
  • Rs. 20,15,857
  • Rs. 20,14,305
  • Rs. 20,24,755
Following information is available from the books of Mr.Z.
Rs.
Expenses paid during the year1,35,000
Expenses outstanding on 1−4−201312,250
Expenses prepaid on 1−4−201315,000
Expenses outstanding on 31−3−201417,000
Expenses prepaid on 31−3−201416,750
Net expenses debited to profit & loss account for the year ended 31.3.2014 should be.
  • Rs. 1,96,000
  • Rs. 1,37,500
  • Rs. 1,32,000
  • Rs. 1,38,000
Choose the correct statement.
  • Accrued incomes represent income unearned but realized in cash.
  • Accrued incomes represent income earned but not realized in cash.
  • Accrued income is shown on the liabilities side of the Balance Sheet.
  • No tax is payable on accrued income.
On 31st March, goods sold at a sale price of Rs. 30,000 were lying with customer, Mohan to whom these goods were sold on 'sale or return basis' and recorded as actual sales. Since no consent was received from Mohan, the adjustment entry was made presuming goods were sent on approval at a profit of cost plus 20%. In the balance sheet, the stock with customers account will be shown at.
  • Rs. 30,000
  • Rs. 24,000
  • Rs. 20,000
  • Rs. 25,000
From the following details find out the amount to be debited to Profit & Loss A/c as fresh provision for doubtful debts during 2014−2015.
Debtors Rs. 30,000 as on 31−3−2015; Bad debt during the year Rs. 1,500; Provision for bad debts as on 1−4−2014 Rs. 2,000; Provision for doubtful debts to be kept at 5% of total debtors.
  • Rs. 1,500
  • Rs. 1,000
  • Rs. 3,000
  • Rs. 2,000
Sundry debtors on 31st March, 2015 are Rs. 55,200. Further bad debts are Rs. 200. Provision for doubtful debts are to be made on debtors @ 5% and also provision of discount is to be made on debtors @ 2%. The amount of provision of discount on debtors will be.
  • Rs. 1,045
  • Rs. 2,750
  • Rs. 1,100
  • Rs. 2,760
During the year 2014−2015, the profit of a business before charging Sales Manager's commission was Rs. 1,89,000. If the Sales Manager's commission is 5% on profit after charging his commission, then the total amount of commission payable to manager is?
  • Rs. 10,000
  • Rs. 9,450
  • Rs. 9,000
  • Rs. 8,500
Salary paid during the year - Rs. 35,000
Salary outstanding on 1−4−2014 - Rs. 2,500,
Salary outstanding on 31−3−2015 - Rs. 7,500
Net salary debited on Profit & Loss A/c for the year ended 31−3−2015 should be.
  • Rs. 40,000
  • Rs. 30,000
  • Rs. 25,000
  • Rs. 45,000
Which of the following accounting treatments is/are TRUE in respect of accrued commission appearing on the debit side of a trial balance?
  • It is shown on the debit side of the Profit & Loss A/c
  • It is shown on the credit side of the Profit & Loss A/c
  • It is shown on the liabilities side of the Balance Sheet
  • It is shown on the assets side of the Balance Sheet
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers