Important Questions for Chapter 2 Theory Base of Accounting

Important Questions with Answers for CBSE Class 11 Accountancy Chapter 2 Theory Base of Accounting which is outlined by expert Accountancy teachers from the latest version of CBSE (NCERT) books.

CBSE Class 11 Accountancy Chapter -2 Important Questions

Question 1

How is the total amount of Capital calculated?

Answer: Capital = Assets – Liabilities

Question 2

How is the total amount of Liabilities calculated?

Answer: Liabilities = Assets – Capital

Question 3

Give 2 examples of Capital receipts.

Answer:

• The amount received by way of loans
• The amount received from the sale of fixed assets or investments

Question 4

Mention different types of liabilities.

Answer:

• Current liabilities
• Non-current liabilities
• Contingent Liabilities

Question 5

What are the drawings?

Answer: Drawings refer to any value of commodities or cash withdrawn by the owner for personal use.

Question 6

Give 2 examples of Tangible assets.

Answer:

• Stock
• Land and Building

Question 7

The amount which the proprietor has invested in a business is known as,

Answer: Capital

Question 8

A Ltd. imported from London one machinery for sale in India and other machinery for production purpose. Will you treat them as goods or fixed assets?

Answer: First machinery will be treated as goods and the second machinery will be treated as Fixed Asset.

Question 9

What is income?

Answer: Excess of revenue over expenses is called as Income.

Income = Revenue – Expenses

Question 10

What is the nature of accounting principles?

Answer: Nature of accounting principles are,

• Accounting principles are a uniform set of rules that are developed to assure the uniformity and easy comprehension of the accounting information
• Accounting principles are man made and are derived from experience and reason
• Accounting principles are not static

Question 11

What are the different bases of accounting?

Answer: Different bases of accounting are,

• Cash basis
• Accrual basis

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