Final Accounts of Sole Proprietors - II Important Questions

11th Standard

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Accountancy

All questions are compuslory.
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. Outstanding expense account is a representative ______ account.

    (a)

    Personal

    (b)

    Real

    (c)

    Both 'a' and 'b'

    (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. Provision for discount on debtor is made on the basis of past experience at an estimated rate on _____

    (a)

    Sundry creditors

    (b)

    Sundry debtors

    (c)

    Capital

    (d)

    Net Profit

  6. The preparation of ______ is the last step in the accounting cycle.

    (a)

    Trading account

    (b)

    Profit and Loss account

    (c)

    Balance sheet

    (d)

    Final account

  7. Prepaid insurance is _______

    (a)

    an asset

    (b)

    a liability

    (c)

    an income

    (d)

    an expense

  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. The decrease in book value of fixed assets due to usage or passage of time is 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

    4 x 2 = 8
  12. What is outstanding expense?

  13. What are accrued incomes?

  14. What is Interest on loan?

  15. Give adjusting entry for depreciation at 10% p.a. on machinery of Rs.25,000.

  16. Part C

    4 x 3 = 12
  17. Show necessary entries to adjust the following on 31st December, 2017.
    (i) Outstanding salaries Rs 1,200
    (ii) Outstanding rent Rs 300
    (iii) Prepaid insurance premium Rs 450
    (iv) Interest on investments accrued Rs 400
    (v) Bad debts written off Rs 200

  18. Explain the concept of Matching Principle.

  19. What is Credit balance?

  20. 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

  21. Part D

    2 x 5 = 10
  22. Abstracts from the trial balance as on 31st March, 2016:

    Particulars Debit Rs
    Sundry debtors 52,000
    Bad debts 1,000

    Adjustments:
    (i) Additional bad debts Rs. 2,000
    (ii) Create 5% provision for bad and doubtful debts
    You are required to pass necessary adjusting entries and show how these items will appear in final accounts.

  23. Trial balance ofAnuradha agencies as on 31-03-2012.

    Debit balances Amount Rs. Credit balances Amount Rs.
    Drawings 1,800 Capital 80,000
    Buildings 15,000 General reserve 20,000
    Furniture & Fittings 7,500 Loan from Hari @ 6% 15,000
    Computer 25,000 Sales 1,00,000
    Interest on loan 900 Commission received 7,500
    Loose tools 6,100 Sundry creditors 10,000
    Purchases 75,000    
    Stock on 1-4-2011 25,000    
    General expenses 15,000    
    Freight inward 2,000    
    Freight outward 1,000    
    Sundry debtors 28,000    
    Bank 20,200    
    Goodwill 10,000    
      2,32,500   2,32,500

    Adjustments:
    (i) Closing stock is Rs.32,000
    (ii) Depreciate computer @ 10%; buildings @5%; furniture and fittings @ 10%
    (iii) Provide for bad and doubtful debts @ 5% and for-discount on debtors @ 2%
    (iv) Provide interest on drawings @ 6% and on capital @ 8% •.
    Prepare final accounts for the said period after giving effect to the adjustments.

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