# MCQ Questions for Class 11 Accountancy Chapter 10 Financial Statements 2 with Answers

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## Financial Statements 2 Class 11 MCQs Questions with Answers

Question 1.
Rahul’s trial balance provide you the following information :
Debtors – Rs. 80,000
Provision for bad debts – Rs. 4,000
It is desired to maintain a provision for bad debts of Rs. 1,000. State the amount to be debited/credited in Profit & Loss A/c.
(a) Rs. 5,000 (Debit)
(b) Rs. 3,000 (Debit)
(c) Rs. 1,000 (Credit)
(d) None of these

Question 2.
If the rent of one month is still to be paid the adjustment entry will be
(a) Debit outstanding rent account and Credit rent account.
(b) Debit profit and loss account and Credit rent account.
(c) Debit rent account and Credit profit and loss account.
(d) Debit rent account and Credit outstanding rent account.

Answer: (d) Debit rent account and Credit outstanding rent account.

Question 3.
(a) Debit profit and loss account and Credit rent account.
(d) None of these

Question 4.
If the opening capital is Rs. 50,000 as on April 1, 2005 and additional capital introduced Rs. 10,000 on January 1,2006. Interest charge on capital 10% p.a. The amount of interest on capital shown in profit and loss account as on March 31, 2006 will be:
(a) Rs. 5,250
(b) Rs. 6,000
(c) Rs. 4,000
(d) Rs. 3,000

Question 5.
If the insurance premium paid Rs. 1,000 and prepaid insurance Rs. 300. The amount of insurance premium shown in profit and loss account will be
(a) Rs. 1,300
(b) Rs. 1,000
(c) Rs. 300
(d) Rs. 700

Fill in the blanks with suitable.word/words

Question 1.
Trading and Profit & Loss Account shows the ………………. or ………………..

Question 2.
Adjustments are necessary to show the correct ………………., and ………………. of a business concern.

Answer: profit or loss, financial position

Question 3.
Items of income and expenditure which do not pertain to the accounting period should be ……………….

Question 4.
Items of income and expenditure which relates to the accounting period but are left out should be ……………….

Question 5.
Expenses related to the current accounting period but have not been paid are known as ……………….

Question 6.
Part of expenses paid if relates to the next accounting year, it is called ……………….

Question 7.
Income earned but not received till the end of the accounting year is termed as ……………….

Question 8.
Income if received before it becomes due is called ……………….

Question 9.
While making a provision for possible bad debts or for doubtful debts, we ………………. Reserves Debts Account.

Question 10.
An unexpired expenditure is shown on the ………………. side of the Balance Sheet.

Mention whether the following are true or false

Question 1.
Income received in advance is written on the liabilities side of the balance sheet.

Question 2.
Prepaid expenses appearing inside the trial balance will appear on the liabilities side of the balance sheet.

Question 3.
Outstanding expenses appearing inside the trial balance are shown on the debit side of the profit & loss account.

Question 4.
Assets are to be shown in the balance sheet at the values realisable on liquidation.

Question 5.
Salary outstanding account is a personal account.

Question 6.
The provision for discount on debtors is calculated after deducting the provisions for doubtful debts from debtors.

Question 7.
Outstanding salaries appearing in the trial balance is shown in Profit & Loss Account.

Question 8.
Goods sold on approval basis is treated as a complete sale.

Question 9.
Deferred revenue expenditure is partly debited to Profit & Loss Account and the balance is shown in the Balance Sheet.