CBSE Class 11 Financial Statements 2 Multiple Choice Questions with Answers. MCQ Questions Class 11 Financial Statements 2Â with Answers Is Prepared Based on Latest Exam Pattern. Students can solve NCERT MCQ questions Class 11 Financial Statements 2Â with Answers to know their preparation level.
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MCQ Questions Class 11 Financial Statements 2 with Answers - Set - 3
Question 1:Â
A trial balance contains Debtors Rs.15,000, Bad Debts Rs.400 and Provision for Doubtful Debts Rs.600. Further bad debts given in adjustments are Rs.400. If a provision at 5% is made on Debtors, P & L A/c will be debited with:
(a) Rs.1950
(b) Rs.800
(c) Rs.1,130
(d) Rs.930
Correct Answer – (D)
Question 2:Â
Prepaid Insurance existing in the Trial Balance is shown in the Balance Sheet in the assets side because ofÂ
(a) Accrual Concept.
(b) Matching Principle.
(c) Materiality Principle.
(d) Cost Principle.
Correct Answer – (A)
Question 3:Â
Sundry debtors given in the Trial Balance are Rs.20,000. Further bad debts amounted to Rs.1,000 and it is desired to create a provision of 5% on debtors for doubtful debts and 2% for discount. Sundry Debtors will appear in the Balance Sheet at a figure of:
(a) Rs.18,600
(b) Rs.17,689
(c) Rs.17,670
(d) Rs.18,620
Correct Answer – (B)
Question 4:Â
Heavy amount spent for the advertisement of new company product isÂ
(a) Revenue Expenditure
(b) Deferred Revenue Expenditure
(c) Capital Expenditure
(d) Either (a) or (c)
Correct Answer – (B)
Question 5:Â
If closing stock appears in Trial Balance then it will be appearing in ;Â Â
(d) Trading Account
(b) Balance Sheet
(c) Profit & Loss Account
(d) Trading A/c & Balance Sheet
Correct Answer – (B)
MCQ Questions Class 11 Financial Statements 2 With Answers
Question 6:Â
Prepaid Expenses, if given in the Trial Balance, is shown in Â
(a) Trading Account, as deduction from the respective expense.
(b) Profit and Loss Account, as deduction from the respective expense.
(c) Trading and Profit and Loss Account, as deduction from the respective expense and in the Balance Sheet, as an asset.
(d) Balance Sheet
Correct Answer – (D)
Question 7:Â
Following information is given in Trial Balance Â
Bad Debt Rs. 3,000
Provision for Bad Debts Rs. 3,500
Debtors Rs.40,000
Additional information :
It is desired to make a provision for doubtful debts @ of 10% on debtors. The amount debited to P&L A/c is
(a) Rs.4,000
(b) Rs.5,000
(c) Rs.6,500
(d) Rs.3,500
Correct Answer – (D)
Question 8:Â
A’s Trial Balance provides you the following information:
Bad Debts Rs.3,000
Provision for Bad Debts Rs.5000
It is desired to maintain a provision of Rs.1,500 for doubtful debts, the amount to be recorded in P & L A/c will be:
(a) Rs.4,500 in Dr.
(b) Rs.500 in Dr.
(c) Rs.3,500 in Dr.
(d) Rs.500 in Cr.
Correct Answer – (D)
Question 9:Â
Income tax in case of sole trader is treated as , Â
(a) Personal expenses
(b) Debtors expenses
(c) Business expenses
(d) None of the above
Correct Answer – (A)
Question 10:Â
A new firm commenced business on 1st January, 2020 and purchased goods costing Rs.90,000 during the year. A sum of Rs.6,000 was spent on freight inward. At the end of the year the cost of goods still unsold was Rs. 15,000 (Realisable Value 12,000). Sales during the year was Rs. 1,20,000. What is the gross profit earned by the firm? C
(a) Rs.42,000
(b) Rs.30,000
(c) Rs.36,000
(d) Rs.39,000
