CBSE Class 11 Accountancy HOTs Financial Statements

CBSE Class 11 Accountancy Chapter 9 Financial Statements Fill In The Blanks

Question. Unearned commission mentioned in Trial balance will be transferred to ………………………. .
Answer. Balance Sheet

Question. Indirect expenses consists of……….…& ………
Answer. Operating & Non-Operating expenses

Question. Closing stock appearing in Trial balance is transferred to …………….. .
Answer. Balance Sheet

Question. If closing stock is not appearing in …………………………., it will appear in Trading account and balance Sheet.
Answer. Trial balance

Question. Wages & Salaries are debited to ………………….. Account.
Answer. Trading

Question. Salaries & Wages are debited to ……………………Account.
Answer. Profit & Loss

Question. Rent Account is shown in ………………………. Account.
Answer. Profit & Loss

Question. In case of adjusted purchase, closing stock is shown in…………… .
Answer. Balance Sheet

Question. Written off part of Deferred Revenue Expenditure is shown in ……………………… .
Answer. Profit & Loss Account

Question. Amortization is used for ………………………..assets.
Answer. Intangible

Question. Gross profit is obtained by deducting……………………………. from Net sales.
Answer. Cost of Goods Sold

Question. Discount on purchase is shown in ………………….side of ………………. Account.
Answer. Credit, Profit & loss

Question. Carriage on sales is shown in ……………..Account.
Answer. profit and loss

CBSE Class 11 Accountancy Chapter 9 Financial Statements True and False

1. Cost of goods sold can be calculated by deducting adjusted purchase from value of sales. (True)
2. Gross profit is calculated by adding the cost to the value of sales. (False)
3. Depreciation has an impact on balance of cash. (False)
4. Octroi is shown on the credit side of Profit & Loss account. (False)
5. Provision for doubtful debt have a credit balance. (True)
6. While passing adjustment entry Interest on capital is credited to capital a/c. (True) 
7. To calculate gross profit it is necessary to have opening stock. (False)
8. Income tax paid is also known as Drawing . (True)
9. Net profit is always calculated for an accounting year. (True)
10. The provision for discount on debtors is calculated first and after that provision for doubtful debt is made. (False)
11. Income tax paid is debited to P&L a/c. (False)
13. Wages paid for erection of machinery is debited to P&L a/c. (False)

CBSE Class 11 Accountancy Chapter 9 Financial Statements  MCQs

Question. Which of the following is another name of Earning before Income Tax (EBIT)
a. Operating Profit
b. Gross Profit
c. Net Profit
d. None of these
Answer. (C)

Question. Which of the following account is affected from the Drawing of Cash in Sole proprietorship?
a. Shareholder’s Account
b. Capital Account
c. Liabilities Account
d. Expense Account
Answer. (B)

Question. According to Principle of Conservatism
a. Provision is made for bad and doubtful debts
b. Deprecation is charged on assets
c. Recording is made for outstanding expenses
d. Profit & Loss account is made for full year
Answer. (A)

Question. Closing Stock given inside the Trial balance is shown only in……………
a. Balance Sheet
b. Trading Account
c. Profit & Loss Account
d. None of these
Answer. (A)

Question. Which type of expenses is written in Profit & Loss Account?
a. Direct
b. Indirect
c. Direct & Indirect
d. None of these
Answer. (B)

Question. Which type of expenses are written in Tradinng Account?
a. Direct
b. Indirect
c. Direct & Indirect
d. None of these
Answer. (A)

Question. Carriage of Rs. 8,000 paid on purchase of Second had Machinery is treated as
a. Revenue Expenditure
b. Capital Expenditure
c. Deferred Revenue Expenditure
d. None of these
Answer. (B)

Question. Manufacturing expenses are treated as………
a. Capital Expenditure
b. Direct Expenses
c. Indirect Expenses
d. None of these
Answer. (B)

Question. If Commission received in advance Rs. 3000 given in Trial balance. It will be shown in
a. Liabilities
b. Assets
c. Profit & Loss Account (Credit)
d. Trading Account (debit)
Answer. (A)

Question. If Rent paid in advance Rs. 7000 given in Trial balance. It will be shown in
a. Liabilities
b. Assets
c. Profit & Loss Account (Debit)
d. Trading Account (debit)
Answer. (B)

Question. If Salary payable Rs. 9000 given in Trial balance. It will be shown in
a. Liabilities
b. Assets
c. Profit & Loss Account (Debit)
d. Trading Account (debit)
Answer. (A)

Question.If Accrued Interest Rs. 2000 given in Trial balance. It will be shown in
a. Liabilities
b. Assets
c. Profit & Loss Account (Credit)
d. Trading Account (Credit)
Answer. (B)

Question. Which is the position statement?
a. Trading Account
b. Profit & Loss Account
c. Balance Sheet
d. None of these
Answer. (C)

Question. What is an outstanding expense?
Answer : Outstanding expenses are those expenses which have been acquired during a given period of time but have left unpaid till the date of preparing a financial statement.

Question. What journal account will be passed for prepaid insurance?
Answer : Prepaid Insurance A/c Dr. To Insurance A/c

Question. Which account is debited for creating a provision for doubtful debts?
Answer : Profit and Loss Account

Question. Mention two examples of revenue expenditure
Answer : The two examples of revenue expenditure are
• Purchase of Goods
• Salary, Rent, etc

Question. Life Insurance premium is treated as drawings
Answer : True

Question. Closing stock is shown in Financial statement at
1. Cost Price
2. Realisable Value
3. Cost price or Realisable value whichever is greater
4. Cost price or Realisable value whichever is less
Answer : Cost price or Realisable value whichever is less

Question. Type of account shown in the balance sheet is.
1.Nominal and Personal
2. Real and Nominal
3. Real and Personal
4. Real, Nominal, and Personal
Answer : Real and Personal

Question. Give two examples of capital expenditure.
Answer : The two examples of capital expenditure are.
• Purchase of Machinery
• Expenditure on the installation of Machinery.

CBSE Class 11 Accountancy Chapter 9 Financial Statements Match The Following

Question. Match the following with Revenue Receipts and capital receipts:
Receipts                                                   Heading
1. Contribution towards capital                  Revenue Receipts
2. Loan Received by the business            Capital Receipts
3. Sales of goods
4. Interest received
Answer. Revenue Receipts – 3&4 Capital Receipts -1&2

Question. Match the following:
Account Type                                Transferred to
1. Real A/c                                 A. Closed by transferring to
                                                       Profit and Loss A/C
2. Personal A/c                          B. Balance carried to next year by Transferring
to Balance sheet
3. Nominal A/c
Answer. 1&2-B; 3-A

Question. Match the below expenses with their respective expense head:
Expense                                                       Expense Type
1. White wash Expense                              A. Deferred Revenue Expenditure
2. Purchase of second hand Machine        B. Revenue Expenditure
3. Advertisement Expenses                        C. Capital Expenditure
Answer. 1-B, 2-C, 3-A

Question. Match the following assets with their respective Assets account
Assets                              Categories
1. Debtors                    A. Intangible Assets
2. Furniture                  B. Current Assets
3. Patent                      C. Current Liabilities
4. Short term Loan      D. Tangible Assets
Answer.1-B,2-D,3-A,4-C

Question. Match the below items
1. Commission               A. Expense
2. Commission (Cr.)       B. Income
3. Rent
4. Rent (Cr.)
Answer. 1&3-A; 2&4-B

Question. Match the below expense with business expense and Personal expenses:
1. Insurance premium
2. Life insurance premium of owner          A. Business Expenses
3. Rent                                                      B. personal expenses
4. Rent of House of proprietor
Answer. 1&3-A, 2&4-B

Question. Match the item from their source of calculate:
Item                         calculate from
1. Gross profit        A. Profit and Loss A/c
2. Net Profit            B. Balance sheet
3. Capital               C. Trading Account
Answer. 1-c, 2-A, 3-B

Question. Match the following:
1. Trial Balance              a. Both sides may or may not be tallied
2. Profit and Loss A/c     b. Both side should always be tallied
3. Balance sheet            c. For checking Arithmetical accuracy both side
should be tallied
Answer. 1-C, 2-A, 3-B

Question.. Match the following items with account where it is appeared:
1. Outstanding salary        A. Income side of Profit and loss A/c
2. Salary A/c                     B. Liability side of Balance sheet
3. Rent A/c                       C. Assets side of Balance sheet
4. Prepaid Rent A/c          D. Expense side of Profit and loss A/c
Answer. 1-B, 2-D,3-D, 4-C

Question. Match the items according to:
1. Order of Permanence cash in hand           cash at bank    goodwill
2. Order of Liquidity Goodwill                        cash at bank     cash in hand.
Answer. 1-b;2-a

Question. Match the following
1. Grouping                 A. arrangement of assets and liabilities in a
                                        particular order.
2. Marshalling             B. Putting items of a similar nature under a
                                       common accounting head
Answer.1-B, 2-A