Important Questions with Answers for CBSE Class 11 Accountancy Chapter 10 Financial Statements 2, which is outlined by expert Accountancy teachers from the latest version of CBSE (NCERT) books.
CBSE Class 11 Accountancy Chapter – 10 Important Questions
What is an outstanding expense?
Answer: Outstanding expenses are those expenses which have been acquired during a given period of time but have left unpaid till the date of preparing a financial statement.
What journal account will be passed for outstanding salary?
Answer: Salary A/c Dr.
To Outstanding Salary A/c
What journal account will be passed for prepaid insurance?
Answer: Prepaid Insurance A/c Dr.
To Insurance A/c
Accrued income and income due but not received are the same. Is it true or false?
Which account is debited for creating a provision for doubtful debts?
Answer: Profit and Loss Account
For doubtful debts under which accounting concept provision is made?
Answer: Prudence Concept
Mention two examples of revenue expenditure
Answer: The two examples of revenue expenditure are
- Purchase of Goods
- Salary, Rent, etc
In balance sheet assets side represents a debit balance
Life Insurance premium is treated as drawings
Bank overdraft is a contingent account
Closing stock is shown in Financial statement at
1. Cost Price
2. Realisable Value
3. Cost price or Realisable value whichever is greater
4. Cost price or Realisable value whichever is less
Answer: Cost price or Realisable value whichever is less
Accrued income is
1. A liability
3. An Asset
4. An Expense
Answer: An Asset
Type of account shown in the balance sheet is.
1.Nominal and Personal
2. Real and Nominal
3. Real and Personal
4. Real, Nominal, and Personal
Answer: Real and Personal
If a closing stock appears in the trial balance, then it will appear in.
1. Trading Account
2. Balance Sheet
3. Profit & Loss Account
4. Trading & Balance sheet account
Answer: Balance Sheet
Give two examples of capital expenditure.
Answer: The two examples of capital expenditure are.
- Purchase of Machinery
- Expenditure on the installation of Machinery
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