English

State True or False with reasons : Income due but not received is a liability.

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Question

State True or False with reasons :
Income due but not received is a liability.

Options

  • True

  • False

MCQ
True or False
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Solution

This statement is False.
When any amount/income is receivable, it is an asset for business.
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Chapter 9: Final Accounts of a Proprietary Concern - EXERCISE [Page 317]

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Balbharati Book Keeping and Accountancy [English] Standard 11 Maharashtra State Board
Chapter 9 Final Accounts of a Proprietary Concern
EXERCISE | Q 4. 3) | Page 317

RELATED QUESTIONS

Answer in One Sentence:

What is Net Profit?


Give a word, term, or phrase which can substitute the following statement:

Account prepared to know Net Profit or Net Loss.


Select the most appropriate alternatives given below and rewrite the sentence :
Discount earned is transferred to credit side of ___________ account


Excess of credit over to debit in Profit and Loss Account indicates ________


Find the odd one :


Do you agree or disagree with the following statement :
Reserve for bad debts is created by debiting Profit and Loss Account.


Salaries appearing in the trial balance is shown on the ______.


What is the need for preparing profit and loss account?


From the following information, prepare profit and loss account for the year ending 31st December, 2016.

Particulars Particulars
Gross loss 60,000 Printing and stationery (office) 2,000
Promotional expenses 5,000 Legal charges 5,000
Distribution expenses 15,000 Bad debts 1,000
Commission paid 7,000 Depreciation 2,000
Interest on loan paid 5,000 Rent received 4,000
Packing charges (on sales) 4,000 Loss by fire not covered by insurance 3,000
Dividend received 3,000    

Correct and Rewrite the following statements:

When the credit side of the Profit and Loss Account is greater than the debit side, it is called Net Loss.


Give a word, term, or phrase which can substitute the following statement:

Account prepared to know Net Profit or Net Loss.


Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March, 2018 from the following balances.

1) Bank charges  ₹ 22,000
2) Interest (Cr.) ₹ 16,000
3) Sundry expenses ₹ 42,000
4) Insurance ₹ 35,000
5) Salaries ₹ 40,000
6) Rates and Taxes ₹ 13,000
7)  Postage ₹ 8,000
8) Advertisement ₹ 40,000
9) Rent paid ₹ 32,000
10) Bad debts ₹ 10,000
11)  Commission ₹ 17,500
12) Printing & Stationery ₹ 21,000
13) Loss by fire ₹ 18,000
14) Discount (Dr)  ₹ 23,000
15)  Discount (Cr) ₹ 37,000
16) Misc. Income ₹ 14,000
17) Depreciation  ₹ 34,000
18)  Carriage Outwards   ₹ 60,000
19) Godown Expenses  ₹ 40,000
Note: Gross Profit ₹ 4,07,500

Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March 2018 from the following balances.

1) Bank charges ₹ 22,000

2) Interest (Cr.) ₹ 16,000

3) Sundry expenses ₹ 42,000

4) Insurance ₹ 35,000

5) Salaries ₹ 40,000

6) Rates and Taxes ₹ 13,000

7) Postage ₹ 8,000

8) Advertisement ₹ 40,000

9) Rent paid ₹ 32,000

10) Bad debts ₹ 10,000

11) Commission (Cr) ₹ 17,500

12) Printing & Stationery ₹ 21,000

13) Loss by fire ₹ 18,000

14) Discount (Dr) ₹ 23,000

15) Discount (Cr) ₹ 37,000

16) Misc. Income ₹ 14,000

17) Depreciation ₹ 34,000

18) Carriage Outwards ₹ 60,000

19) Godown Expenses ₹ 40,000

Note: Gross Profit ₹ 407500


Give a word, term or phrase which can substitute the following statement:

Account prepared to know Net Profit or Net Loss.


Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March, 2018 from the following balances.

1) Bank charges ₹ 22,000
2) Interest (Cr.) ₹ 16,000
3) Sundry expenses ₹ 42,000
4) Insurance ₹ 35,000
5) Salaries ₹ 40,000
6) Rates and Taxes ₹ 13,000
7) Postage ₹ 8,000
8) Advertisement ₹ 40,000
9) Rent paid ₹ 32,000
10) Bad debts ₹ 10,000
11) Commission (Cr) ₹ 17,500
12) Printing & Stationery ₹ 21,000
13) Loss by fire ₹ 18,000
14) Discount (Dr) ₹ 23,000
15) Discount (Cr) ₹ 37,000
16) Misc. Income ₹ 14,000
17) Depreciation ₹ 34,000
18) Carriage Outwards ₹ 60,000
19) Godown Expenses ₹ 40,000

Note: Gross Profit ₹ 4,07,500


Give a word, term or phrase which can substitute the following statement:

Account prepared to know Net Profit or Net Loss.


Imagine you are an accountant of Shah & Company. You have to pass an entry of interest received by the company. What will be the accounting treatment?


Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March, 2018 from the following balances. 

1) Bank charges ₹ 22,000
2) Interest (Cr.)  ₹ 16,000
3) Sundry expenses ₹ 42,000
4) Insurance   ₹ 35,000
5) Salaries  ₹ 40,000
6) Rates and Taxes ₹ 13,000
7) Postage ₹ 8,000
8) Advertisement ₹ 40,000
9) Rent paid ₹ 32,000
10) Bad debts  ₹ 10,000
11) Commission (Cr.) ₹ 17,500
12) Printing & Stationery ₹ 21,000
13) Loss by fire ₹ 18,000
14) Discount (Dr.) ₹ 23,000
15) Discount (Cr.) ₹ 37,000
16) Misc. Income ₹ 14,000
17) Depreciation ₹ 34,000
18) Carriage Outwards ₹ 60,000
19) Godown Expenses ₹ 40,000

 Note: Gross Profit ₹ 4,07,500


Net profit/loss is transferred from ______.


Abnormal Losses such as stock destroyed by fire, goods lost intransit, loss on sale of fixed assets are recorded on the ______ side of the ______.


What is the purpose of a Profit and Loss Account?


Distinguish between a Trading Account and a Profit and Loss Account.


Explain the needs of the Profit and Loss Account.


Give a word, term or phrase which can substitute the following statement:

Account prepared to know Net Profit or Net Loss.


Which of the following is NOT recorded in the Profit and Loss Account?


Where is gross profit or gross loss from the Trading Account recorded in the Profit and Loss Account?


The “Packing expenses” are classified in the Profit and Loss Account when they are:


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