Financial Statements of Sole Proprietorship
Commerce ⇒ Accountancy
Financial Statements of Sole Proprietorship starts at 11 and continues till grade 12.
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Explain the difference between capital and revenue expenditure with examples.
Explain the term 'contingent liability' with an example.
Explain the treatment of bad debts in the financial statements of a sole proprietorship.
Explain the treatment of prepaid expenses in the financial statements.
If a proprietor withdraws goods for personal use, how is it shown in the financial statements?
If closing stock is overvalued, what will be the effect on net profit?
State any two objectives of preparing financial statements for a sole proprietorship.
State the accounting equation.
State the meaning of 'working capital'.
From the following, identify the indirect expense: (1) Carriage Inward (2) Wages (3) Salaries (4) Purchases
Which of the following is a capital expenditure? (1) Purchase of goods (2) Wages paid (3) Purchase of machinery (4) Rent paid
Which of the following is a current liability? (1) Debtors (2) Creditors (3) Furniture (4) Goodwill
Which of the following is a fictitious asset? (1) Goodwill (2) Prepaid Expenses (3) Discount on Issue of Shares (4) Land
The amount of depreciation charged on machinery is shown in the ________ Account.
The Balance Sheet is prepared ________ the Trading and Profit & Loss Account.
The Balance Sheet of a sole proprietorship shows the financial position as on a particular ________.
Is the following statement true or false? 'Drawings are shown on the credit side of the Capital Account.'
Is the following statement true or false? 'Financial statements are prepared at the end of every accounting period.'
Is the following statement true or false? 'Financial statements of a sole proprietorship are prepared as per the Companies Act, 2013.'
Is the following statement true or false? 'Net profit is transferred to the capital account of the proprietor.'
