Final Accounts of Sole Proprietors - II Important Question Paper

11th Standard

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Accountancy

Time : 01:00:00 Hrs
Total Marks : 50

    Part A

    10 x 1 = 10
  1. A prepayment of insurance premium will appear in

    (a)

    The trading account on the debit side

    (b)

    The profit and loss account on the credit side

    (c)

    The balance sheet on the assets side

    (d)

    The balance sheet on the liabilities side

  2. If there is no existing provision for doubtful debts, provision created for doubtful debts is

    (a)

    Debited to bad debts account

    (b)

    Debited to sundry debtors account

    (c)

    Credited to bad debts account

    (d)

    Debited to profit and loss account

  3. _____ principle requires that generally the revenue should be recognised in the period in which sale is deemed to have occurred.

    (a)

    Accounting

    (b)

    Revenue recognition

    (c)

    Matching

    (d)

    None of these

  4. ______ is treated asbusiness expense.

    (a)

    Interest on capital

    (b)

    Interest on drawings

    (c)

    Both 'a' and 'b"

    (d)

    None of these

  5. _______ is a loss for the business and should be adjusted against profit.

    (a)

    Interest on Capital

    (b)

    Depreciation

    (c)

    Debtors

    (d)

    Bad debts

  6. The Trial Balance shows bank loan Rs.5,00,000 at 12% on 01-01-2015. Interest paid Rs.40,000. Interest outstanding is ______ as on 31-12-2015.

    (a)

    Rs.60,000

    (b)

    Rs.40,000

    (c)

    Rs.27,600

    (d)

    Rs.20,000

  7. The unsold goods in the business at the end of the accounting period are termed as __________

    (a)

    Opening stock

    (b)

    Closing stock

    (c)

    Average stock

    (d)

    None of these

  8. Trial balance as on 31.12.2017. Shows sundry debtors Rs.55,000. As per given adjustments, if Rs. 5,000 is to be written off as bad debts, the provision for bad and doubtful debts at 2% will be Rs.________.

    (a)

    1,000

    (b)

    1,100

    (c)

    1,200

    (d)

    1,300

  9. Debts which cannot be recovered or irrecoverable are called _________.

    (a)

    Bad debts 

    (b)

    Depreciation

    (c)

    Closing stock

    (d)

    Capital

  10.  Wages outstanding is_________.

    (a)

    an asset 

    (b)

    a liability

    (c)

    an income

    (d)

    an expense 

  11. Part B

    5 x 2 = 10
  12. What is outstanding expense?

  13. What are accrued incomes?

  14. What is Interest on loan?

  15. How will the following adjustment appear in the balance sheet as on 31-12-2010?
    Sundry Debtors Rs.21,000
    Bad debts to be written off Rs.1,000
    Provide 5% provision for bad and doubtful debts and 2% provision for discount on debtors.

  16. 'If unearned income is credited to the proflt and loss account would it be correct?

  17. Part C

    5 x 3 = 15
  18. Pass adjusting entries for the following on 31st March, 2018.
    (i) Charge interest on drawings at Rs 50
    (ii) Write off bad debts by Rs 500
    (iii) Depreciate furniture by Rs 1,000

  19. Give the adjusting entries for interest on capital and interest on drawings.

  20. Explain the concept of Matching Principle.

  21. What is Credit balance?

  22. Pass necessary Adjusting entries for the following adjustments:
    a) Interest on loan outstanding Rs.5,000
    b) Depreciation @ 5% on furniture Rs.50,000
    c) Write off bad and doubtful debts Rs.3,000
    d) Provide provision for bad and doubtful debts @ 5% on sundry debtors Rs.4,00,000
    f) Provide provision for discount on creditors @ 2% on sundry creditors Rs.3,50,000

  23. Part D

    3 x 5 = 15
  24. An abstract of the trial balance as on 31st December, 2016 is as follows:
    Particulars 
    Sundry Debtors 20,000
    Bad debts 500
    Adjustment: Create a provision for bad and doubtful debts @ 5% on sundry debtors. Pass the adjusting entry and show how these items will appear in final accounts.

  25. The following is the Trial balance extracted from the books of Mr. Mohan as on 31-12-2017. Prepare Trading and Profit and loss account and Balance sheet on 31-12-2017.

    Debit balances Amount Rs. Credit balances Amount Rs.
    Buildings 30,000 Capital 40,000
    Machinery 31,400 Purchase return 2,000
    Furniture 2,000 Sales 2,80,000
    Motor Car 16,000 Sundry creditors 9,600
    Purchases 1,88,000 Discount received 1,000
    Sales returns 1,000 Provision for bad and  
    Sundry debtors 30,000' and doubtful debts 600
    General expenses 1,600    
    Cash at bank 9,400    
    Rates and Taxes 1,200    
    Bad debts 400    
    Insurance premium 800    
    Discount allowed 1,400    
    Opening stock 20,000    
      3,33,200   3,33,200

     Adjustments:
    (i) Outstanding rates and taxes Rs.1,600
    (ii) Insurance premium prepaid Rs.200
    (iii) Maintain provision for bad and doubtful debts at 5% on debtors,
    (iv) Depreciate Motor Car by 10%. Furniture by 4% and Buildings by 3%.
    (v) Stock on 31-12-2017 Rs.20,000.

  26. Following is the trial balance of Brijesh. Prepare final accounts for the year ended on 31st March, 2016

    Particulars Debit Rs Credit Rs
    Stock as on 01-04-2015 2,00,000  
    Purchases and Sales 22,00,000 33,00,000
    Returns 1,00,000 80,000
    Carriage inwards 50,000  
    Salaries 2,60,000  
    Insurance 1,20,000  
    Wages 80,000  
    Bad debts 10,000  
    Furniture 7,00,000  
    Capital   7,50,000
    Printing and stationery 80,000  
    Cash at bank 3,15,000  
    Petty cash 5,000  
    Commission 10,000  
      41,30,000 41,30,000

    Adjustments:
    (i) Stock on 31st March, 2016 was valued at Rs 4,00,000.
    (ii) Depreciate furniture @ 10% p.a.
    (iii) Insurance of Rs 60,000 was paid in advance
    (iv) Commission receivable Rs 50,000.

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