{"id":28216,"date":"2019-11-02T17:44:31","date_gmt":"2019-11-02T12:14:31","guid":{"rendered":"http:\/\/mycbseguide.com\/blog\/?p=28216"},"modified":"2019-11-04T15:46:00","modified_gmt":"2019-11-04T10:16:00","slug":"chapter-10-accountancy-class-11-important-questions","status":"publish","type":"post","link":"https:\/\/mycbseguide.com\/blog\/chapter-10-accountancy-class-11-important-questions\/","title":{"rendered":"Chapter 10 Accountancy Class 11 Important Questions"},"content":{"rendered":"
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Chapter 10 Accountancy Class 11 Important Questions. <\/strong>myCBSEguide has just released Chapter Wise Question Answers for class 11. Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. Accountancy describes the duties of an accountant, the person whose job is to keep, inspect and interpret financial accounts. There chapter wise Practice Questions with complete solutions are available for download in\u00a0myCBSEguide<\/a>\u00a0<\/strong>website and mobile app. These Question with solution are prepared by our team of expert teachers who are teaching grade in CBSE schools for years. There are around 4-5 set of solved Accountancy Extra questions from each and every chapter. The students will not miss any concept in these Chapter wise question that are specially designed to tackle Exam. We have taken care of every single concept given in\u00a0CBSE Class 11 Accountancy\u00a0<\/a><\/strong>syllabus and questions are framed as per the latest marking scheme and blue print issued by CBSE for class 11.<\/p>\n<\/div>\n<\/div>\n

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Class 11 Accountancy Extra Questions<\/strong><\/p>\n

Download as PDF<\/a><\/strong><\/p>\n

Financial Statements -II Adjustments Class 11 Accountancy Extra Questions<\/h2>\n

Ch-10 Financial Statements-II Adjustments<\/strong><\/p>\n

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    \n
  1. On which side of the balance sheet are prepaid expenses shown?<\/li>\n
  2. Following information is given in trial balance
    \n\n\n\n\n\n
    Bad debt<\/td>\nRs 3,000<\/td>\n<\/tr>\n
    Provision for bad debts<\/td>\nRs 3,500<\/td>\n<\/tr>\n
    Debtors<\/td>\nRs 40,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Additional information<\/strong>
    \nIt is desired to make a provision for doubtful debts @ of 10% on debtors. The amount debited to profit and loss account is.<\/li>\n

  3. Is provision for discount on debtors made before making provision for doubtful debts?<\/li>\n
  4. While Preparing final accounts, what treatment is made of prepaid expenses?<\/li>\n
  5. \n

    Extract of Trial Balance<\/strong>
    \nas on 31st March, 2013<\/p>\n\n\n\n\n\n
    Name of Accounts<\/strong><\/td>\nDebit Balance(Rs)<\/strong><\/td>\nCredit Balance(Rs)<\/strong><\/td>\n<\/tr>\n
    Wages Paid<\/td>\n66,000<\/td>\n<\/td>\n<\/tr>\n
    Salary Paid<\/td>\n16,500<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Additional Information<\/strong>
    \nWages Rs 6,000 and salary Rs 1,500 are outstanding.
    \nPass an adjusting entry and show how will this appear in final accounts.<\/li>\n

  6. Why is it necessary to record the adjusting entries in the preparation of final accounts?<\/li>\n
  7. \n

    Extract of Trial Balance<\/strong>
    \nas on 31st March, 2013<\/p>\n\n\n\n\n\n\n
    Name of Accounts<\/strong><\/td>\nDebit Balance(Rs)<\/strong><\/td>\nCredit Balance(Rs)<\/strong><\/td>\n<\/tr>\n
    Bad Debts<\/td>\n1,600<\/td>\n<\/td>\n<\/tr>\n
    Provision for doubtful Debts(1st April,\u00a02012)<\/td>\n<\/td>\n5,000<\/td>\n<\/tr>\n
    Debtors<\/td>\n1,60,000<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Additional Information<\/strong>
    \nCreate a provision for doubtful debts @ 5% on debtors.<\/p>\n

    Pass necessary adjustment entries and show how will it appear in the financial statements of company.<\/li>\n

  8. From the following balances obtained from the accounts of Mr. Ranjeet, Prepare the Trading and Profit & Loss Account:
    \n\n\n\n\n\n\n\n\n\n
    Particulars<\/strong><\/td>\nRs.<\/strong><\/td>\nParticulars<\/strong><\/td>\nRs.<\/strong><\/td>\n<\/tr>\n
    Stock on April 01, 2012<\/td>\n8,000<\/td>\nBad debts<\/td>\n1,200<\/td>\n<\/tr>\n
    Purchases for the year<\/td>\n22,000<\/td>\nRent<\/td>\n1,200<\/td>\n<\/tr>\n
    Sales for the year<\/td>\n42,000<\/td>\nDiscount (Dr.)<\/td>\n600<\/td>\n<\/tr>\n
    Wages<\/td>\n2,500<\/td>\nCommission paid<\/td>\n1,100<\/td>\n<\/tr>\n
    Salaries & Wages<\/td>\n3,500<\/td>\nSales Expenses<\/td>\n600<\/td>\n<\/tr>\n
    Advertisement<\/td>\n1,000<\/td>\nRepairs<\/td>\n600<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Closing stock on March 31, 2013, is Rs. 4,500.<\/li>\n

  9. From the following balances, prepare the final accounts of M\/s Mangal & Sons for the year ended 31st March 2018 :
    \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    <\/td>\nRs.<\/strong><\/td>\n<\/tr>\n
    Opening Stock<\/td>\n12,500<\/td>\n<\/tr>\n
    B\/R<\/td>\n2,000<\/td>\n<\/tr>\n
    Sales<\/td>\n70,000<\/td>\n<\/tr>\n
    Purchases<\/td>\n37,500<\/td>\n<\/tr>\n
    Creditors<\/td>\n20,000<\/td>\n<\/tr>\n
    Salaries<\/td>\n3,850<\/td>\n<\/tr>\n
    Insurance<\/td>\n200<\/td>\n<\/tr>\n
    Debtors<\/td>\n32,500<\/td>\n<\/tr>\n
    Carriage<\/td>\n1,450<\/td>\n<\/tr>\n
    Commission<\/td>\n750<\/td>\n<\/tr>\n
    Interest<\/td>\n900<\/td>\n<\/tr>\n
    Printing<\/td>\n250<\/td>\n<\/tr>\n
    B\/P<\/td>\n3,150<\/td>\n<\/tr>\n
    Returns in<\/td>\n1,300<\/td>\n<\/tr>\n
    Returns out<\/td>\n500<\/td>\n<\/tr>\n
    Bank<\/td>\n5,250<\/td>\n<\/tr>\n
    Rent and Taxes<\/td>\n1,300<\/td>\n<\/tr>\n
    Furniture<\/td>\n1,000<\/td>\n<\/tr>\n
    Capital<\/td>\n7,100<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Closing Stock on 31-3-2018 Rs.15,000<\/li>\n

  10. Suresh started buisness on 1st April, 2013 with a capital of Rs 30,000. The following trial balance was drawn up from his books at the end of the year.
    \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    Name of Accounts<\/strong><\/td>\nAmt(Rs)<\/strong><\/td>\nName of Accounts<\/strong><\/td>\nAmt(Rs)<\/strong><\/td>\n<\/tr>\n
    Drawings<\/td>\n4,500<\/td>\nCapital<\/td>\n40,000<\/td>\n<\/tr>\n
    Plant and fixtures<\/td>\n8,000<\/td>\nSales<\/td>\n1,60,000<\/td>\n<\/tr>\n
    Purchases<\/td>\n1,16,000<\/td>\nCreditors<\/td>\n12,000<\/td>\n<\/tr>\n
    Carriage inward<\/td>\n2,000<\/td>\nBills payable<\/td>\n9,000<\/td>\n<\/tr>\n
    Wages<\/td>\n8,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Return inward<\/td>\n4,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Salaries<\/td>\n10,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Printing<\/td>\n800<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Advertisement<\/td>\n1,200<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Trade Charges<\/td>\n600<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Rent<\/td>\n1,400<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Debtors<\/td>\n25,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Bills Receivable<\/td>\n5,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Investments<\/td>\n15,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Discount<\/td>\n500<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Cash at bank<\/td>\n16,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Cash in hand<\/td>\n3,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    <\/td>\n2,21,000<\/td>\n<\/td>\n2,21,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    The value of stock as at 31st March, 2014 was Rs 26,000. You are required to prepare his trading and profit and loss account for the year ended 31st March, 2014 and a balance sheet as on the date after taking the following facts into account.<\/p>\n

      \n
    1. Interest on capital is to be provided at 6% per annum.<\/li>\n
    2. An additional capital of Rs 10,000 was introduced by Suresh on 1st October, 2013.<\/li>\n
    3. Plant and fixtures are to be depreciated by 10% per annum.<\/li>\n
    4. Salaries outstanding on 31st March, 2014 amounted to Rs 500.<\/li>\n
    5. Accrued interest on investment amounted to Rs 750.<\/li>\n
    6. Rs 500 are bad debts and provision for doubtful debts is to be created at 5% on the balance of debtors.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

      Ch-10 Financial Statements-II Adjustments<\/strong><\/p>\n

      \n

      Answer<\/strong><\/p>\n

        \n
      1. Prepaid expenses are shown on Assets side of balance sheet.<\/li>\n
      2. Statement showing showing provision for doubtful debts\u00a0<\/strong>
        \n\n\n\n\n\n\n\n\n
        Particulars<\/strong><\/td>\nAmount<\/strong><\/td>\n<\/tr>\n
        Bad Debts<\/td>\n3,000<\/td>\n<\/tr>\n
        (+) New Provision @ 10 %<\/td>\n4,000<\/td>\n<\/tr>\n
        <\/td>\n7,000<\/strong><\/td>\n<\/tr>\n
        (-) Old Provision<\/td>\n(3,500)<\/td>\n<\/tr>\n
        <\/td>\n3,500<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/li>\n
      3. No, it is made after the provision for doubtful debts<\/li>\n
      4. Prepaid Expenses are deducted in Profit and Loss account and shown as Assets in Balance Sheet. When prepaid expenses are given in trial balance, it is to be debited in P&L A\/c only.<\/li>\n
      5. \n

        Adjustment Entries<\/strong><\/p>\n\n\n\n\n\n\n\n\n
        Dr<\/td>\n<\/td>\n<\/td>\n<\/td>\nCr<\/td>\n<\/tr>\n
        Date<\/strong><\/td>\nParticulars\u00a0<\/strong><\/td>\n<\/td>\nDebit<\/strong><\/td>\nCredit\u00a0<\/strong><\/td>\n<\/tr>\n
        31\/03\/2013<\/td>\n(i) Wages A\/c<\/td>\nDr<\/td>\n6,000<\/td>\n<\/td>\n<\/tr>\n
        <\/td>\nTo Outstanding Wages A\/c
        \n(Being wages due)<\/td>\n        		<\/td>\n<\/td>\n6,000<\/td>\n<\/tr>\n
        <\/td>\n(ii) Salary A\/c<\/td>\nDr<\/td>\n1,500<\/td>\n<\/td>\n<\/tr>\n
        <\/td>\nTo Oustanding Salary A\/c
        \n(Being salary due)<\/td>\n        		<\/td>\n<\/td>\n1,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

        Effects on Final Account
        \nTrading Account<\/strong><\/p>\n\n\n\n\n\n\n
        Dr<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\nCr<\/strong><\/td>\n<\/tr>\n
        Date<\/strong><\/td>\nParticulars<\/strong><\/td>\n<\/td>\nAmt(Rs)<\/strong><\/td>\nDate<\/strong><\/td>\nParticulars<\/strong><\/td>\nAmt(Rs)<\/strong><\/td>\n<\/tr>\n
        31\/03\/2013<\/td>\nTo Wages A\/c<\/td>\n66,000<\/td>\n<\/td>\n31\/03\/2013<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
        <\/td>\n(+)Outstanding Wages<\/td>\n6,000<\/td>\n72,000<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

        Profit and Loss A\/c<\/strong><\/p>\n\n\n\n\n\n\n
        Dr<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\nCr<\/strong><\/td>\n<\/tr>\n
        Date<\/strong><\/td>\nParticulars<\/strong><\/td>\n<\/td>\nAmt(Rs)<\/strong><\/td>\nDate<\/strong><\/td>\nParticulars<\/strong><\/td>\nAmt(Rs)<\/strong><\/td>\n<\/tr>\n
        31\/03\/2013<\/td>\nTo Salary A\/c<\/td>\n16,500<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
        <\/td>\n(+)Outstanding Salary<\/td>\n1,500<\/td>\n18,000<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

        Balance\u00a0Sheet<\/strong><\/p>\n\n\n\n\n\n
        Liabilities<\/strong><\/td>\nAmt(Rs)<\/strong><\/td>\nAssets<\/strong><\/td>\nAmt(Rs)<\/strong><\/td>\n<\/tr>\n
        Outstanding Wages<\/td>\n6,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
        Outstanding salary<\/td>\n1,500<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/li>\n
      6. Before financial statements are prepared, additional journal entries, called\u00a0adjusting entries<\/b>, are made to ensure that the company’s financial records adhere to the revenue recognition and matching principles. Adjusting entries are necessary because a single transaction may affect revenues or expenses in more than one accounting period and also because all transactions have not necessarily been documented during the period.The following are the objectives of making adjustments ;\n