Account class 11 Financial Statement – With Adjustments

1. Asset side of balance sheet represent debit balance.

2. Suspense account preparing in the trial balance is shown in the balance sheet.

3. Accrued income preparing in the trial balance is shown in P and L A/c.

4. Bank overdraft is contingent liability.

5. Goods given away charity are deducted from purchases and are shown on the debit side of P and L A/c.

6. Prepared rent is personal account.

7. Interest on drawings in an income for the business.

8. Life insurance premium is treated as drawings.

9. Income tax  paid by a sole trader is reflected in his financial statements.

10. Accrued income is ;

11. If closing stock appears in trial balance then it will be appearing in ;

12. Types of account shown in balance sheet are…….

13. Following information is given in trial balance ;

Bad debit          Rs 3000

Provision for bad debit      Rs 3,500

Debtors            Rs 40,000

14. Net profit before the following adjustments = Rs 1,80,000

Outstanding salary = Rs 10,000

Prepaid insurance = Rs 13,000

Calculate profit after adjustments ;

15. Net profit of a before charging managers commission is Rs 21,000. If the manager is entitled to 5% commission after charging such commission, how much manager will get as commission?

16. Closing stock is shown in financial statements at ;

17. General manager gets 10% commission on net profit after charging such commission. Gross profit Rs 72,000 and general expenses other than managers commission are Rs 12,000. Commission amount will be ;

18. Heavy amount spend for the advertisement of new company product is ;

19. Income tax in case of sole trader is treated as ;

20. Business paid to Mr. A Rs 50,000 as salary on 25th March, 2011. Mr. A went to bank to deposit cheque in his account on 3rd April,2011. What is the entry to passed in the balance sheet on the date of final accounts?

21. A machine is purchased in Bihar. During transit the machine was damaged and the cost of repairs incurred is Rs 20,000. This expense is treated as ;