Worksheets › Class 11 › Financial Statements – II
Class 11 Financial Statements – II worksheet
CBSE Accountancy. Adjustments: closing stock, outstanding and prepaid expenses, accrued and advance income, depreciation, bad debts and provisions, manager’s commission and interest on capital. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
Outstanding expenses are shown in the balance sheet as a:
- fixed asset
- part of capital
- current asset
- current liability
Answer
(d) current liability
- 2.
How is “income received in advance” treated in the final accounts?
- deducted from the income in profit and loss; shown as a current liability
- credited to profit and loss; deducted from capital
- debited to profit and loss; deducted from debtors
- debited to profit and loss; deducted from furniture
Answer
(a) deducted from the income in profit and loss; shown as a current liability
- 3.
Salaries paid during the year were ₹60,500; salary for 1 month at ₹5,500 a month is outstanding. What salary is debited to the profit and loss account?
- ₹55,000
- ₹60,500
- ₹5,500
- ₹66,000
Answer
(d) ₹66,000
₹60,500 + ₹5,500
Section B · short answer
- 4.
Why are adjustments needed in preparing financial statements?
Answer
To include incomes and expenses of the year not yet recorded, so true profit and a true financial position are shown (accrual and matching).
- 5.
Give the two effects of each adjustment: (a) further bad debts (b) interest on drawings
Answer
(a) debited to profit and loss; deducted from debtors (b) credited to profit and loss; deducted from capital
Section C · long answer
- 6.
Explain the treatment of outstanding and prepaid expenses in the final accounts.
Answer
Outstanding expenses are added to the expense in the profit and loss account and shown as a current liability; prepaid expenses are subtracted from the expense and shown as a current asset.
Fresh sheets for your child
In the app, every Financial Statements – II sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
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