Class XI Accounting Quiz

Ram commenced business with a capital of ₹2,00,000. At the end of year, his assets were valued ₹4,00,000 and liabilities were of ₹1,50,000. His profit or loss will be ₹……

• ₹2,50,000 profit

• ₹50,000 profit

• ₹50,000 loss

• None of these

Bank is a ……. Account.

• Personal

• Real

• Nominal

• Asset

Give an example of a transaction when there is increase in one liability and decrease in another liability.

While preparing accounting equation, interest charged on drawing will ……... capital.

Ram commenced business with a capital of ₹2,00,000. At the end of the year, his assets include cash ₹40,000, stock ₹70,000, debtors ₹85,000, furniture ₹25,000 and liabilities ₹30,000. Ascertain his capital at the end and profit or loss incurred if he introduced further capital of ₹25,000 but bought bike of ₹30,000 for personal use during the year.

Pass Journal entries for the following Questions.

Commenced business with cash ₹1,00,000 of which he deposited ₹60,000 in bank.

Purchased a machine for ₹2,00,000 by raising loan from P.N. Bank, Hisar.

Sold goods costing ₹20,000 @ a profit of 20% on cost to Mohan on credit.

Paid interest on loan ₹4,000 and installment of bank loan ₹20,000 by cheque.

Commission received in advance ₹8,000.