Financial Statements of Sole Proprietorship

Commerce ⇒ Accountancy

Financial Statements of Sole Proprietorship starts at 11 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Financial Statements of Sole Proprietorship. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 11

Explain the difference between capital and revenue expenditure with examples.

Explain the meaning of 'contingent liability' with an example.

Explain the meaning of 'provision for doubtful debts'.

Explain the treatment of bad debts in the final accounts.

Explain the treatment of closing stock in the final accounts.

Is 'Prepaid Insurance' an asset or a liability?

State any two differences between a Trial Balance and a Balance Sheet.

A sole proprietor started business with ₹50,000. During the year, he earned a net profit of ₹10,000 and withdrew ₹4,000 for personal use. What is the closing capital?

Is 'Carriage Inward' debited to the Trading Account? (1) Yes (2) No

Is 'Interest on Capital' an expense for the business? (1) Yes (2) No

Is 'Outstanding Rent' shown as a liability in the Balance Sheet? (1) Yes (2) No

The Balance Sheet shows the financial position of a business as on a particular date. (1) True (2) False

Fill in the blank: The Balance Sheet is prepared ________ the Profit and Loss Account.

Fill in the blank: The Balance Sheet is prepared as at ________ date.

Fill in the blank: The credit balance of the Profit and Loss Account is transferred to ________.

Fill in the blank: The excess of assets over liabilities is called ________.

Is 'Carriage Inward' debited to the Trading Account? (1) Yes (2) No

Is 'Interest on Capital' an expense for the business? (1) Yes (2) No

Is 'Outstanding Rent' shown as a liability in the Balance Sheet? (1) Yes (2) No

State whether the following statement is true or false: 'Accrued income is shown as a liability in the Balance Sheet.'