Financial Statements of a Sole Proprietor

Accrued Income is

• asset
• liability
• revenue
• expenses

Types of accounts shown in balance sheet are:

• nominal & personal
• real & nominal
• Real & personal
• All three

If closing stock appears in trial balance, then it will be appearing in:

• trading a/c
• balance sheet
• profit & loss a/c
• Trading a/c and balance sheet

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

• 1,050
• 1,000
• 2,000
• 2,100

Closing stock is shown in financial statement at:

• cost price
• realisable value
• cost price or realisable value whichever is greater
• cost price or realisable value whichever is less

Income tax in case of sole trader is treated as 

• personal expenses
• debtor expenses
• business expenses
• none of these

Heavy amount spent for the advertisement of new company product is :

• revenue expenditure
• defferred revenue expenditure
• capital expenditure
• either A or C

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 be passed in the balance sheet on the date of the balance sheet?

• No entry
• Bank A/c. Dr. to O/s salary A/c.
• Salary A/c. Dr. to O/S Salary A/c.
• Salary A/c. Dr. To A

A machine was purchased in Gwalior. During transit the machine was damaged and the cost of repairs incurred is Rs.20,000. The expenses is treated as

• Defferred Expenditure
• capital expenditure
• revenue expenditure
• None of these

Net profit before the following adjustments is Rs.1,80,000.
Adjustments:
O/s salary Rs.10,000
Prepaid Insurance Rs.13,000
Calculate profit after adjustments.

• Rs.1,83,000
• Rs.1,77,000
• Rs.2,03,000
• Rs.1,87,000