Chapter 12 ACCOUNTANCY : Final Accounts with Adjustments — Online MCQ Test
ACCOUNTANCY · CLASS 11 INTER I YEAR · Andhra State Board
Practice Chapter 12 ACCOUNTANCY : Final Accounts with Adjustments with a free chapter-wise online MCQ test.
This chapter covers: The final chapter details preparing final accounts incorporating adjustments such as closing stock outstanding expenses prepaid expenses accrued income depreciation and bad debts..
AI-generated questions from basic to board-exam level, with instant results and explanations.
Chapter 12 ACCOUNTANCY : Final Accounts with Adjustments — Important Questions & Answers
Which of the following is considered an adjustment that is typically given outside the Trial Balance?
- A. Closing Stock
- B. Purchases
- C. Sales
- D. Cash in hand
Answer: A. Closing Stock
Closing stock is usually provided as an adjustment outside the Trial Balance to ensure accurate valuation at the end of the accounting year.
Closing stock is usually provided as an adjustment outside the Trial Balance to ensure accurate valuation at the end of the accounting year.
Where is the 'Prepaid Insurance' shown in the final accounts?
- A. Debit side of Trading Account
- B. Credit side of Profit & Loss Account
- C. Assets side of Balance Sheet
- D. Liabilities side of Balance Sheet
Answer: C. Assets side of Balance Sheet
Prepaid expenses are benefits paid in advance, hence they are treated as current assets.
Prepaid expenses are benefits paid in advance, hence they are treated as current assets.
If Bad Debts amount to Rs. 2,000 and the Provision for Bad Debts is to be maintained at 5% on Debtors of Rs. 40,000, the total amount debited to P&L account is:
- A. Rs. 2,000
- B. Rs. 4,000
- C. Rs. 3,800
- D. Rs. 5,000
Answer: B. Rs. 4,000
Total charge = Bad Debts (2000) + New Provision (5% of 40000 = 2000) = 4000.
Total charge = Bad Debts (2000) + New Provision (5% of 40000 = 2000) = 4000.
Which of the following is NOT an adjustment requiring a double effect in final accounts?
- A. Manager's Commission
- B. Depreciation
- C. Purchase of stationery for office use
- D. Interest on Drawings
Answer: C. Purchase of stationery for office use
Stationery purchased is a transaction recorded in the ledger/trial balance, not an adjustment at the end of the year unless it involves stock.
Stationery purchased is a transaction recorded in the ledger/trial balance, not an adjustment at the end of the year unless it involves stock.
An adjustment for 'Goods distributed as free samples' is given. How should this be treated?
- A. Deduct from Purchases, Debit Advertisement A/c
- B. Debit Sales, Credit Purchases
- C. Credit Purchases, Debit Drawings
- D. Debit Purchases, Credit Sales
Answer: A. Deduct from Purchases, Debit Advertisement A/c
Free samples are an advertisement expense, and since they are no longer part of stock, they must be removed from purchase costs.
Free samples are an advertisement expense, and since they are no longer part of stock, they must be removed from purchase costs.