CBSE Questions for Class 11 Commerce Accountancy Financial Statements 2 Quiz 9 - MCQExams.com

Del-credere commission is allowed -
  • to effect sales in the normal course of business.
  • to bear the bad debts on account of credit sales.
  • to effect sales at prices higher than the price fixed
  • None of these
If the consignee is not authorized to get del-credere commission, then ___________________.
  • he is liable for ail losses on account of non-recovery of debts due to insolvency of customers
  • he is not liable for all losses on account of non-recovery of debts due to dispute.
  • he is not liable for all losses on account of non-recovery of debts due to insolvency of customers
  • none of these
Net profit before charging commission to General manager Rs. 1,65.920 The General Manager is entitled to commission of 10% on net profit after charging such commission.
Commission payable to General Manager __________.
  • Rs.14,428
  • Rs.15,084
  • Rs.16,592
  • Rs.8,296
Interest on capital will be paid to the partners if provided for in the agreement but only from __________. 
  • profits
  • reserves
  • accumulated profits
  • goodwill
Where a partner is entitled to interest on capital subscribed by him, such interest will be payable ___________. 
  • only out of profit
  • only out of capital
  • out of profits or out of capital
  • none of these
Insurance claim for loss-in-transit received by consignor is _________________.
  • Credited to Bank Account
  • Debited to Insurance Co.
  • Credited to Abnormal Loss Account
  • Debited to Consignment Account
When the interest on capital is allowed to partners, interest on capital account is debited and partner's capital account is credited. It is called _____________. 
  • an opening entry
  • a closing entry
  • an adjusting entry
  • a transfer entry
If adjusting entries are not passed __________________.
  • Trial Balance will be not be tallied
  • Balance Sheet will not be tallied
  • Both trial balance & Balance Sheet will be tallied
  • None of these
Which of the following statement is not true:
  • If del-credere commission is allowed, bad debt will not be recorded in the books of consignor
  • If del-credere commission is allowed, bad debt will be debited in Consignment Account
  • Del-credere commission is allowed by consignor to consignee
  • Del-credere commission is generally relevant for credit sales.
When the interest on drawings is charged to partners, interest on drawing account is credited, and partner's capital account is debited. It is called __________. 
  • an opening entry
  • a closing entry
  • an adjusting entry
  • an transfer entry
Net profit before the flowing adjustments $$=$$ Rs. $$1,80,000$$
Outstanding salary $$=$$Rs. $$10,000$$
Prepaid insurance $$=$$ Rs. $$13,000$$
Calculate profit after adjustments.
  • Rs. $$1,77,000$$
  • Rs. $$183,000$$
  • Rs. $$2,03,000$$
  • None of the above
Bad debts Rs. $$3,000$$
Provision for bad debts Rs. $$3,500$$
It is desired to make a provision of Rs. $$4,000$$ at the end of the year. The amount debited to P & L A/c is?
  • Rs. $$4,000$$
  • Rs. $$5,000$$
  • Rs. $$6,000$$
  • Rs. $$3,500$$
What will be the treatment of "accrued income" if appearing in the Trial Balance.
  • It will be shown on the assets side as current assets in the balance sheet
  • It will be shown on the liabilities side as current liability in the balance sheet
  • It will be shown on the debit side of trading account as an expense
  • It will be shown on the credit side of profit and loss account as an income
The provision for bad debts is made by crediting ________.
  • Trading A/c
  • Profit & Loss Account
  • Debtors Account
  • Provision for bad debts account
What will be the treatment of prepaid expenses if adjustment of it is appearing outside the trial Balance?
  • Prepaid Expenses account will be debited and respective expenses account will be credited
  • Respective expense account will be debited and prepaid expenses account will be credited
  • Prepaid expenses account will be debited and profit and loss account will be credited
  • Profit and loss account will be debited and prepaid expenses account will be credited
Find out the corrected net profit.
Profit before taking into account following adjustments was Rs. $$7,00,000$$
$$1$$. Rs. $$1,00,000$$ spent on purchase of motor car for business purpose, treated as expenses in profit & loss A/c
$$2$$. Rs. $$15,000$$ p.m. rent outstanding for the month of February and March not taken into account.
  • Rs. $$7,70,000$$
  • Rs. $$7,85,000$$
  • Rs. $$6,15,000$$
  • Rs. $$6,30,000$$
Prepaid Expense of a financial year is related with the ___________.
  • previous financial year
  • following financial year
  • current financial year
  • None
Total Debtors on $$31.12.2009$$ were Rs. $$48,000$$ before writing off bad debts but after allowing discounts. During the year bad-debts amounted to Rs. $$2,000$$ and discount allowed were Rs. $$100$$. It is the firm's policy to maintain a provision of $$5\%$$ against bad and doubtful debts. Find out the amount of provision for Bad and Doubtful debts as an $$31.12.09$$.
  • Rs. $$2,400$$
  • Rs. $$2,305$$
  • Rs. $$2,300$$
  • Rs. $$2,000$$
A and B are partners having capital of Rs. 50,000 and Rs. 60,000 respectively. Interest on capital is given @ 5% p. a. Profits for the year before the appropriation is Rs. 4.600 provide interest on capital out of profits. Interest allocated to partners is:
  • Rs. 3,000 and Rs. 2,500
  • Rs. 2,091 and Rs. 2,509
  • Rs. 2,500 and Rs. 2,091
  • Rs. 600 and Rs. 300
The manager of a firm is entitled to a commission of $$10\%$$ on net profit after his commission. If the net profit of the firm before charging commission is Rs. $$4,40,000$$. The amount of manager's commission will be.
  • Rs. $$44,000$$
  • Rs. $$40,000$$
  • Rs. $$37,000$$
  • Rs. $$33,000$$
The debts written off as bad, subsequently collected by proprietor in his personal capacity and debt by him. What is accounting treatment for this transaction?
  • Debit- drawings A/c & credit- bad debtors. A/c
  • Debit - cash A/c & credit bad debts recovered A/c
  • Debit - drawings A/c & credit bad debts recovered A/c
  • Simply ignore the transaction.
In case of a debt becoming bad or doubtful, the amount is credited to ____.
  • Bad debts A/c
  • Creditors A/c
  • Debtors A/c
  • Capital A/c
Recovery of bad debts written off previously will be?
  • Credited to debtors. A/c
  • Adjusted against provision for d
  • Debited to debtors. A/c
  • Credited to profit and loss A/c
At the end of the financial year accounts receivable has a balance of Rs. $$1,00,000$$ and provision for the bad & doubtful debts provided amounting to Rs. $$7,000$$. Net realizable value of the accounts receivable is ________ .
  • Rs. $$7,000$$
  • Rs. $$1,07,000$$
  • Rs. $$93,000$$
  • Rs. $$1,00,000$$
More MCQs on Foreign Exchange ManagementWhich of the following is not an example of an international trade draft?
  • Time draft.
  • Sight draft.
  • Both the first and second answers are correct
  • Usance draft
Type of financial securities that matures in less than a year are classified as ___________________.
  • Money market securities
  • Capital market securities
  • Saving intermediaries
  • Discounted intermediaries
Which of the following stock exchange is derecognized by SEBI on 19.11.2014 on the allegations of serious irregularities in its functioning?
  • Bombay Stock Exchange
  • Delhi Stock Exchange
  • Calcutta Stock Exchange
  • Bangalore Stock Exchange
Unemployment due to mechanization of agriculture is ___________.
  • Seasonal
  • Structural
  • Industrial
  • Personal
FDI stands for?
  • Foreign Diverse Investment
  • Foreign Dealers in India
  • Frequent Direct Interest
  • Foreign Direct Investment
For contingency exposure of foreign exchange, the best derivative that can be used to hedge is ________________.
  • Forwards.
  • Futures.
  • Options.
  • Swaps.
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers