Financial Statements Of Sole Proprietorship CBSE Questions & Answers

Financial Statements Of Sole Proprietorship

This is Accountancy Class 11 Financial Statements of Sole Proprietorship CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Match the following. Options are as follows:
Question 1 figure 1
  • A
    a(ii),b(iii), c(i)
    Correct
  • B
    a(i),b(iii), c(ii)
  • C
    a(iii),b(ii), c(i)
  • D
    a(ii),b(i), c(iii)
2
Accounting treatment of Deferred Revenue Expenditure is based on which principle
  • A
    Going concern concept
  • B
    Money Measurement
  • C
    Matching Principle
    Correct
  • D
    Cost concept
3
What should be the journal entry when the amount of bad debt is recorded in the books
  • A
    Option A
  • B
    Option B
  • C
    Option C
    Correct
  • D
    Option D
4
Packaging material will be
  • A
    Debited to Profit and loss A/c
  • B
    Credited to trading A/c
  • C
    Credited to Profit and loss A/c
  • D
    Debited to trading A/c
    Correct
5
What should be the journal entry when managers commission due
  • A
    Option A
    Correct
  • B
    Option B
  • C
    Option C
  • D
    Option D
6
Which of the following is Revenue Receipt
  • A
    Amount received which is not is the normal and ordinary course of business like sale of fixed assets.
  • B
    Income from non-operating business activities
    Correct
  • C
    Fresh capital introduced or additional capital introduced
  • D
    Loan raised.
7
Match the following. Options are as follows
Question 7 figure 1
  • A
    a(iv),b(iii),c(i),d(ii)
  • B
    a(iv),b(iii),c(ii),d(i)
    Correct
  • C
    a(iii),b(iv),c(ii),d(i)
  • D
    a(iv),b(ii),c(iii),d(i)
8
Expenditure incurred by a publisher for acquiring copyrights is a _________.
  • A
    Capital expenditure.
    Correct
  • B
    Capital receipts
  • C
    Deferred reserve expenditure
  • D
    Reserve expenditure.
9
Which one of the following should be considered revenue expenditure?
  • A
    Loss of Rs. 10000 incurred in increasing the sitting accommodation of hotel.
  • B
    Repairs to machinery purchased
  • C
    Damage paid on account of breach of a contract to supply certain goods.
    Correct
  • D
    Rs. 1000 paid for the execution of a new plant.
10
Which one of the following is capital expenditure?
  • A
    Cost of advertisement for current year
  • B
    Purchase of Land and Building
    Correct
  • C
    Purchase of machine oil
  • D
    Purchase of raw material
11
Which one of the following is treated as revenue expenditure?
  • A
    Cost incurred for a new exit as required under the local bodies by laws
    Correct
  • B
    Interest paid on loan during the construction of works.
  • C
    A dealer in purchasing sewing machines and spent some money on the repairs.
  • D
    Cost of pulling down an old building
12
Expenditure incurred on research is an example of _______.
  • A
    Capital expenditure.
  • B
    Revenue expenditure.
  • C
    Deferred revenue expenditure
    Correct
  • D
    Partly capital expenditure
13
The balance sheet is a ________ of the assets, liabilities and capital of a concern as on particular date.
  • A
    Statement
    Correct
  • B
    Document
  • C
    Picture
  • D
    Balance
14
A gross profit is transferred to the __________side of the profit and loss account.
  • A
    Current
  • B
    Asset
  • C
    Debit
  • D
    Credit
    Correct
15
Income tax paid by a solo trader is shown
  • A
    On the debit side of the Trading account
  • B
    None of these
  • C
    On the debit side of the Profit and loss account
  • D
    By way of deduction from capital in the balance sheet
    Correct