Balance Sheet shows:
- AProfit or Loss.
- ✓Financial Position.
- CErrors of Accounts.
- DTotal Debtors.
Answer: B.
View full solution →Question types
Financial Statements question types
98 questions across 6 question groups — pick any mix to generate a Account paper with step-by-step answer keys.
98
Questions
6
Question groups
5
Question types
01
M.C.Q (1 Marks)
19 Q→02True False[1 Marks ]
8 Q→031 Marks Question
39 Q→043 Marks Question
22 Q→054 Marks Question
4 Q→066 Marks Question
6 Q→Sample Questions
Financial Statements questions
One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
Closing Stock appearing in the Trial Balance is shown:
- AOn the Dr. side of Trading A/c.
- BOn the Cr. side of Trading A/c.
- ✓On the Assets side of Balance Sheet.
- DOn the Cr. side of Trading A/c and on the Assets side of Balance Sheet.
Answer: C.
View full solution →Excess of debit in Profit and Loss Account is called:
- ANet Profit.
- ✓Net Loss.
- CGross Profit.
- DGross Loss.
Answer: B.
View full solution →Opening Stock $₹ 8,500$
Purchases $₹ 30,700$
Direct Wages $₹ 4,800$
Interest on Loan $₹ 2,800$
Closing Stock $₹ 9,000$
Cost of goods sold will be $.........$
Purchases $₹ 30,700$
Direct Wages $₹ 4,800$
Interest on Loan $₹ 2,800$
Closing Stock $₹ 9,000$
Cost of goods sold will be $.........$
- A$₹ 30,000$
- B$₹ 32,000$
- ✓$₹ 35,000$
- D$₹ 40,000$
Answer: C.
View full solution →Balance Sheet is prepared with the balances of which of the following:
- AAll balances in the Ledger.
- BBalances of Personal Accounts.
- CBalances of Real Accounts.
- ✓Balances of Personal and Real Accounts.
Answer: D.
View full solution →Marshalling means showing the assets and liabilities in a proper order in the Balance Sheet.
The asset which is most easily convertible into cash is shown first and the liability which is to be paid at the earliest will be shown last in order of liquidity.
The least liquid asset is shown first and the least urgent liability is shown last in order of permanence.
Grouping means showing the items of similar nature under a common heading.
Prepaid expenses are treated as liquid assets.
What type of liability is ‘Bill Discounted but not matured’?
Calculate the amount of Sales' when purchases amount to ₹ 6,00,000; Gross Profit ₹ 1,30,000 and Net Profit ₹ 40,000.
Give a formula to calculate Operating Profit from Net Profit?
Modern Ltd. sold goods for ₹ 60,000 to Mr. Ashok at a profit of 20% on sale. These goods are still in the godown of Modern Ltd. at the buyer's risk at the close of financial year. What treatment will be made for these goods by Modern Ltd.
When liabilities are listed in order of liquidity in a Balance Sheet, which should be listed first-Capital or Creditors?
What is the use of Financial Statements for Potential Investors?
Write the various Assets in order of liquidity in a Balance Sheet.
What is meant by Indirect Expenses? Give two examples.
What is meant by Operating Profit?
Calculate cost of goods sold from the following:
| ₹ | ₹ | ||
| Opening Stock | 40,000 | Wages & Salaries | 10,000 |
| Net Purchases | 50,000 | Rent Paid | 15,000 |
| Net Sales | 1,90,000 | Closing Stock | 15,000 |
A merchant has earned a Net Profit of ₹ 57,200 for the year ended 31st March, 2017. Other balances in his Ledger are as under: 
Prepare his Balance Sheet as at 31st March, 2017.
Prepare his Balance Sheet as at 31st March, 2017.Prepare Profit and Loss Account for the year ended 31st March, 2017 from the following particulars:-
Calculate the amount of gross profit, operating profit and net profit on the basis of the following balances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2017.
|
|
₹
|
|
Opening Stock
|
50,000
|
|
Net Sales
|
11,00,000
|
|
Net Purchases
|
6,00,000
|
|
Direct Expenses
|
60,000
|
|
Administration Expenses
|
45,000
|
|
Selling and Distribution Expenses
|
65,000
|
|
Loss due to Fire
|
20,000
|
|
Closing Stock
|
70,000
|
Give four points of distinction between Trading Account & Profit and Loss Account.
Give any five points of difference between a Balance Sheet and a Trial Balance.
From the following balances extracted from the books of Sh. Badri Vishal on 31st March, 2017, prepare a Trading Account, P & L A/c and a Balance Sheet. Closing Stock valued on that date was ₹ 15,000.
The Trial Balance shows the following balances as at 31st March, 2017:-
Closing Stock was valued at ₹ 35,000. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date.
Closing Stock was valued at ₹ 35,000. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date.From the following balances prepare Final Accounts as at 31st March 2017:-
Value of Closing Stock was ₹ 36,500 on 31st March, 2017.
Value of Closing Stock was ₹ 36,500 on 31st March, 2017.Following is the Trial Balance of Sh. Damodar Parshad as at 31st March, 2016:- 
Prepare a Trading and Profit and Loss Account for the year ended on 31-3-2016 and the Balance Sheet as at that date. The Stock on 31st March, 2016 was ₹ 22,000.
Prepare a Trading and Profit and Loss Account for the year ended on 31-3-2016 and the Balance Sheet as at that date. The Stock on 31st March, 2016 was ₹ 22,000.Generate a Financial Statements paper free
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