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Worksheet: Financial Statements - II | Accountancy Class 11 - Commerce PDF Download

MCQs


Q1: The object of non-trading concerns ______.
(a) 
Social service
(b) 
Profit earning
(c) 
Both of these
(d) 
None of the above

Q2: Which of the following is recorded in income and expenditure accounts?
(a) 
Revenue items
(b) 
Capital items
(c) 
Revenue and capital items
(d) 
None of the above

Q3: 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

Q4: If a person fails to pay his debt, such an amount is considered as ______.
(a) 
Bad debts
(b) 
Bad debts recovered
(c) 
Provision for bad debt
(d) 
None of the above

Q5: If the insurance premium paid Rs. 1,000 and prepaid insurance Rs. 300. The amount of insurance premium shown in the profit and loss account will be ______.
(a) 
Rs. 1,300
(b)
Rs. 1,000
(c) 
Rs. 300
(d)
Rs. 700
Ans:
(d) Rs. 700

Numerical Questions Solutions


Q1: Prepare a trading and profit and loss account for the year ending March 31, 2017. from the balances extracted of M/s Rahul Sons. Also prepare a balance sheet at the end of the year.
Worksheet: Financial Statements - II | Accountancy Class 11 - Commerce
Adjustments:

  1. Commission received in advance ₹ 1,000.
  2. Rent receivable ₹ 2,000.
  3. Salary outstanding ₹ 1,000 and insurance prepaid ₹ 800.
  4. Further bad debts ₹ 1,000 and provision for doubtful debts @ 5% on debtors and discount on debtors @ 2%.
  5. Closing stock ₹ 32,000.
  6. Depreciation on building @ 6% p.a.
    Trading and Profit and Loss Account of M/s Rahul Sons for the year ending

Q2: Prepare a trading and profit and loss account of M/s Green Club Ltd. for the year ending March 31, 2017. from the following figures taken from his trial balance :
Worksheet: Financial Statements - II | Accountancy Class 11 - Commerce
Ajustments:

  1. Depreciation charged on machinery @ 5% p.a.
  2. Further bad debts ₹ 1,500, discount on debtors @ 5% and make a provision on debtors @ 6%.
  3. Wages prepaid ₹ 1,000.
  4. Interest on investment @ 5% p.a.
  5. Closing stock ₹ 10,000.
    Trading and Profit and Loss Account of M/s Green Club Ltd. for the year ending
Q3: The following balances has been extracted from the trial of M/s Runway Shine Ltd. Prepare a trading and profit and loss account and a balance sheet as on March 31, 2017.
Worksheet: Financial Statements - II | Accountancy Class 11 - Commerce
Adjustments:
  1. Further bad debts ₹ 1,000. Discount on debtors ₹ 500 and make a provision on debtors @ 5%.
  2. Interest received on investment @ 5%.
  3. Wages and interest outstanding ₹ 100 and ₹ 200 respectely.
  4. Depreciation charged on motor car @ 5% p.a.
  5. Closing Stock ₹ 32,500.

Q4.1: From the following Trial Balance you are required to prepare trading and profit and loss account for the year ending March 31, 2017 and Balance Sheet on that date.
Worksheet: Financial Statements - II | Accountancy Class 11 - Commerce
Adjustments

  • Closing stock valued at ₹ 36,000.
  • Private purchases amounting to ₹ 5000 debited to purchases account.
  • Provision for doubtful debts @ 5% on debtors.
  • Sign board costing ₹ 4,000 includes in advertising.
  • Depreciate furniture by 10%.

Q4.2: The following balances have been extracted from the trial of M/s Haryana Chemical Ltd. You are required to prepare a trading and profit and loss account and balance sheet as on March 31, 2017 from the given information.
Worksheet: Financial Statements - II | Accountancy Class 11 - Commerce
Adjustments:

  • Closing stock was valued at the end of the year ₹ 40,000.
  • Salary amounting ₹ 500 and trade expense ₹ 300 are due.
  • Depreciation charged on building and machinery are @ 4% and @ 5% respectively.
  • Make a provision of @ 5% on sundry debtors.

Note:

  • If you do not find this problem in the text book, do not worry. This is from an old version of the text book. In the current text book, this problem is replaced with a different one (you can find it above)
  • Note: In the text book, it is giving that the Loan @ 15% (01.09.2016) (it has to be calculated for 7 months from 1-Sep-2016 to 31-Mar-2017). However, if we consider that value we’re getting the accrued interest on the loan as 262.50 which will make the Net profit as ₹ 1,85,672.50. To make it equal to the answer given in the book i.e. ₹ 1,85,560, we’ve considered that the Loan @10% (01.10.2016), which will make the acrued interest on loan as ₹ 150 and the answers for net profit and the balance sheet totals match.

Q5: From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending March 31, 2017.
Worksheet: Financial Statements - II | Accountancy Class 11 - Commerce
Adjustments:

  1. Closing stock was ₹ 45,000.
  2. Provision for doubtful debts is to be maintained @ 2% on debtors.
  3. Depreciation charged on : furniture and fixture @ 5%, plant and Machinery @ 6% and motor car @ 10%.
  4. A Machine of ₹ 30,000 was purchased on July 01, 2016.
  5. The manager is entitled to a commission of @ 10% of the net profit after charging such commission.
The document Worksheet: Financial Statements - II | Accountancy Class 11 - Commerce is a part of the Commerce Course Accountancy Class 11.
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FAQs on Worksheet: Financial Statements - II - Accountancy Class 11 - Commerce

1. What are financial statements?
Ans. Financial statements are documents that provide information about the financial performance and position of a company. They include the income statement, balance sheet, and cash flow statement, which summarize the company's revenues, expenses, assets, liabilities, and cash flows.
2. Why are financial statements important?
Ans. Financial statements are important because they provide valuable information to investors, creditors, and other stakeholders about the financial health and performance of a company. They help in assessing the profitability, liquidity, and solvency of a company, aiding in decision-making processes.
3. What is the purpose of an income statement?
Ans. The purpose of an income statement is to show the revenues, expenses, and net profit or loss of a company over a specific period. It helps in analyzing the company's ability to generate profits, identify trends, and evaluate the effectiveness of its operations.
4. How does a balance sheet differ from an income statement?
Ans. A balance sheet provides a snapshot of a company's financial position at a specific point in time, showing its assets, liabilities, and shareholders' equity. On the other hand, an income statement shows the financial performance of a company over a specific period, presenting its revenues, expenses, and net profit or loss.
5. What is the significance of the cash flow statement?
Ans. The cash flow statement is significant as it provides information about the cash inflows and outflows of a company during a specific period. It helps in understanding the company's ability to generate cash, its operating, investing, and financing activities, and its overall liquidity position.
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