CBSE Questions for Class 11 Commerce Accountancy Financial Statements 2 Quiz 8 - MCQExams.com

If goods are sold to customers on approval basis and consent is not received during the accounting periods which of the following adjustment entries are passed?
Debtors A/c Dr.
To Sales A/c
&Trading A/c Dr.
To Stock A/c
Sales A/c Dr.
To Debtors A/c
&Stock A/c Dr.
To Trading A/c
Sales A/c Dr.
To Stock A/c
&Debtors A/c Dr.
To Stock A/c
Debtors A/c Dr.
To Trading A/c
&Trading A/c Dr.
To Stock A/c
  • A
  • B
  • C
  • D
Net profit before charging commission to manager - Rs. $$2,20,000$$. The manager is entitled to a commission of $$10\%$$ on net profit after charging such commission. The commission payable to manager will be:
  • Rs. $$21,800$$
  • Rs. $$24,200$$
  • Rs. $$22,000$$
  • Rs. $$20,000$$
Sales include Rs. $$60,000$$ sent to Z & Co. on sale or return basis for which no approval has been received as on $$31-3-2015$$. The cost of the goods was Rs. $$50,000$$. Which of the following treatment will be correct while preparing final accounts?
  • Increase sales & debtors by Rs. $$60,000$$, Decrease closing stock in trading account and balance sheet by Rs. $$50,000$$
  • Increase sales & debtors by Rs. $$60,000$$, Increase closing stock in trading account and balance sheet by Rs. $$50,000$$
  • Reducing sales & debtors by Rs. $$60,000$$, Increase closing stock in trading account and balance sheet by Rs. $$50,000$$
  • Reduce sales & debtors by Rs. $$60,000$$, Reduce closing stock in trading account and balance sheet by Rs. $$50,000$$
If the insurance premium paid is Rs. $$1,000$$ and prepaid insurance is Rs. $$300$$, the amount of insurance premium shown in Profit & Loss A/c will be.
  • Rs. $$1,300$$
  • Rs. $$700$$
  • Rs. $$1,000$$
  • Rs. $$300$$
In the trial balance the balance of the Provision for Depreciation Account is _______.
  • Shown as a credit item
  • Shown as a debit item
  • Sometimes shown as a credit, sometimes as a debit
  • Not shown, as it is part of depreciation
Net profit before charging commission to General & Sales manager - Rs. $$1,65,920$$
The General Manager is entitled to commission of $$10\%$$ on net profit after charging such commission and commission of Sales Manager.
The Sales Manager is entitled to commission of $$5\%$$ on net profit after charging such commission and commission of General Manager.
Commission payable to General Manager- Rs. ___________ & Sales Manager - Rs. __________.
  • $$7,214$$ & $$14,428$$
  • $$14,428$$ & $$7,214$$
  • $$16,592$$ & $$8,296$$
  • $$8,296$$ & $$16,592$$
From the following particulars, calculate the amount of income to be credited to profit and loss account for the year ended $$31$$st March $$2012$$.
$$31-3-2011$$$$31-3-2012$$
Outstanding Income$$1,500$$$$1,200$$
Income received in advance$$900$$$$540$$
A sum of Rs. $$14,670$$ was received as income during the year ended $$31$$st March $$2012$$.
  • $$15,930$$
  • $$14,010$$
  • $$15,330$$
  • $$14,730$$
Extract of trial balance of Mr.Z is as follows.
ParticularsDr. Rs.Cr. Rs.
Bad debts$$5,000$$-
Debtors$$2,50,000$$-
Bills receivable$$40,000$$-
Sales-$$12,50,000$$
Additional information:
- Bad debt not yet provided - Rs. $$3,000$$
- Provision for debt to be made at $$5\%$$
- Provision for discount on debtors - $$2\%$$
Debtors will appear in balance sheet at.
  • Rs. $$2,25,302$$
  • Rs. $$2,62,642$$
  • Rs. $$2,67,197$$
  • Rs. $$2,29,957$$
Provision for bad debts is debited to Sundry Debtors Account.
  • True
  • False
A company had a doubtful debt provision of Rs. $$14,000$$ at $$31-12-2014$$. Its trade receivables at $$31-12-2015$$ were Rs. $$1,98,200$$/ The company considers that receivables totalling Rs. $$12,200$$ will not be paid and in addition planned to make a doubtful debts provision for $$10\%$$ of its net receivables at $$31-12-2015$$. What is the charge for bad and doubtful debts in the income statement for the year ended $$31-12-2015$$?
  • $$12,200$$
  • $$16,800$$
  • $$32,600$$
  • $$44,800$$
Net profit before charging commission to manager - Rs. $$2,20,000$$. The manager is entitled to commission of $$10\%$$ on net profit before charging such commission. The commission payable to manager will be.
  • Rs. $$21,802$$
  • Rs. $$24,200$$
  • Rs. $$22,000$$
  • Rs. $$20,000$$
Which of the following accounts is the odd one?
  • Salary A/c
  • Wages A/c
  • Rent A/c
  • Outstanding expense A/c
If the insurance Rs.premium paid is Rs.$$1,000$$ and prepaid insurance is Rs.$$300$$, the amount of Insurance premium shown in profit and loss account will be _____________.
  • Rs.$$1,300$$
  • Rs.$$700$$
  • Rs.$$1,000$$
  • Rs.$$300$$
The net profits after tax of Z & Co. for the past 5 years are as follows:
YearProfit
2010-20112,56,000
2011-20122,64,000
2012-20133,76,000
2013-20144,86,000
2014-20155,30,500
The capital employed is Rs 16,00,Rate of normal return is 15%. Calculate the value of the goodwill on the basis of annuity method on super-profits basis, taking the present value of an annuity of Rs 1 for 4 years at 15% as Rs 2.855.
  • Rs 7,65,000
  • Rs 8,67,800
  • Rs 5,70,000
  • Rs 4,06,838
P/L A/c balance (before commission) is Rs.$$1,320$$; manager's commission is $$10\%$$. Find the amount of manager's commission.
  • $$120$$
  • $$0$$
  • $$132$$
  • $$110$$
Insurance paid in advance would be treated in the Balance sheet as _________________.
  • Non current asset
  • Current asset
  • Intangible sheet
  • Deferred expense
Pick the odd one ________.
  • Reserve for discount on creditors is credited to profit & loss account.
  • Provision for discount on creditors is always made.
  • Discount on creditors should be deducted from Sunday creditors in balance sheet.
  • Both A & C.
A partner claims interest on capital _____________.
  • even if there is loss
  • if there is profit
  • if there is profit and there is an agreement to pay it
  • even if there loss and there is an agreement to pay it
Expenses paid in cash and recorded as assets before they are used are called _____.
  • Accrued Expenses
  • Interim Expenses
  • Prepaid Expenses
  • Unearned Expenses
In case of unexpired entry following entry should be made ______________.
  • It should be shown as an asset in the balance sheet
  • It is shown as a expense in profit and loss account
  • Both a & b
  • None of the above
If a company has the word limited at the end of its name, this means that_______.
  • The shareholder's liability for the debts of the business is restricted
  • The number of shareholders have fixed upper limit
  • The number of members can never be increased
  • There is a limit to the number of shares that can be issued
C's Trial Balance provides you the following information: Bad debts Rs. 800, Provision for Doubtful Debts Rs. 2,It is desired to maintain a Provision for Doubtful debts of Rs. 1,The accounting treatment of these adjustment is ___________________.
  • Rs. 1,800 to be debited to the Profit & Loss Account
  • Rs. 200 to be debited to the Profit & Loss Account
  • Rs. 200 to be credited to the Profit & Loss Account
  • Rs. 4,200 to be credited to the Profit & Loss Account
B's Trial Balance contains the following information: Bad debts, Rs. 1,000 Provision for Doubtful debts Rs. 1,It is desired to make a Provision for Doubtful Debts of Rs. 2,000 at the end of the year. The amount to be debited to the Profit & Loss Account is: 
  • Rs. 4,500
  • Rs. 5,000
  • Rs. 1,500
  • Rs. 3,500
  • Rs. 500
If  del-credere commission is not allowed for bad debt, consignee will debit the bad debt amount to _______________.
  • Commission Earned A/c
  • Consignor A/c
  • Debtors A/c
  • General Profit & Loss
Unaccrued Interest is an example of __________.
  • Increase in asset & decrease in owner's liability
  • Increase in liability & Increase in asset
  • Decrease in liability & owner's liability
  • Increase in asset & owner's liability
Accrued Interest is an example of _________.
  • Increase in asset & decrease in owner's liability
  • Increase in liability & decrease in owner's liability
  • Decrease in liability & owner's liability
  • Increase in asset & owner's liability
Obsolescence of a depreciable assets may be caused by___________ 
   (I) technological changes.
   (II) improvement in production method.
   (III) changes in market demand for the product or service output.
   (IV) legal or other restrictions.
     The correct answer is ______________.
  • Only (I) above
  • Both (I) & (II) above
  • All (I), (II), (iii) & (IV) above
  • Only (IV) above
If del-credere commission is allowed for bad debt, consignee will debit the bad debt amount to:
  • Commission Earned A/c
  • Consignor A/c
  • Debtors A/c
  • General Profit & Loss A/c
Prepaid Insurance is an example of __________.
  • Increase in asset & owner's liability
  • Increase in liability & decrease in owner's liability
  • Decrease in liability & owner's liability
  • Increase in one asset & decrease in another asset
Unless otherwise agreed, Del-credere and Over-riding Commission are allowed on _________________.
  • Cash Sales
  • Gross Credit Sales
  • Net Credit Sales
  • Net Sales
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