MCQ Chapter 10 Financial Statements II Class 11 Accountancy

Please refer to Financial Statements II MCQ Questions Class 11 Accountancy below. These MCQ questions for Class 11 Accountancy with answers have been designed as per the latest NCERT, CBSE books, and syllabus issued for the current academic year. These objective questions for Financial Statements II will help you to prepare for the exams and get more marks.

Financial Statements II MCQ Questions Class 11 Accountancy

Please see solved MCQ Questions for Financial Statements II in Class 11 Accountancy. All questions and answers have been prepared by expert faculty of standard 11 based on the latest examination guidelines.

MCQ Questions Class 11 Accountancy Financial Statements II

Question. Rahul’s trial balance provide you the following information :
Debtors – Rs. 80,000
Bad debts – Rs. 2,000
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. If the rent received in advance Rs. 2,000. The adjustment entry will be
(a) Debit profit and loss account and Credit rent account.
(b) Debit rent account Credit rent received in advance account.
(c) Debit rent received in advance account and Credit rent account.
(d) None of these

Question. 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 words.

Question. Adjustments are necessary to show the correct ………………., and ………………. of a business concern.
Answer : profit or loss, financial position

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

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

Question. Income if received before it becomes due is called ……………….
Answer : income received in advance

Question. An unexpired expenditure is shown on the ………………. side of the Balance Sheet.
Answer : assets.

Mention whether the following are true or false

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

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

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

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

Question. Provision for bad debts is debited to sundry debtors accounts.