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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 31st March 2012.
31−3−201131−3−2012
Outstanding Income1,5001,200
Income received in advance900540
A sum of Rs. 14,670 was received as income during the year ended 31st 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 debts5,000-
Debtors2,50,000-
Bills receivable40,000-
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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