Important Questions for Class 12 Accountancy Chapter 2 Theory Base of Accounting

Important Questions with Answers for CBSE Class 11 Accountancy Chapter 2 Theory Base of Accounting which is outlined by expert Accountancy teachers from the latest version of CBSE (NCERT) books.

CBSE Class 11 Accountancy Chapter -2 Important Questions

Question 1
How is the total amount of Capital calculated?
Answer: Capital = Assets – Liabilities
Question 2
How is the total amount of Liabilities calculated?
Answer: Liabilities = Assets – Capital
Question 3
Give 2 examples of Capital receipts.
Answer:

  • The amount received by way of loans
  • The amount received from the sale of fixed assets or investments

Question 4
Mention different types of liabilities.
Answer:

  • Current liabilities
  • Non-current liabilities
  • Contingent Liabilities

Question 5
What are the drawings?
Answer: Drawings refer to any value of commodities or cash withdrawn by the owner for personal use.
Question 6
Give 2 examples of Tangible assets.
Answer:

  • Stock
  • Land and Building

Question 7
The amount which the proprietor has invested in a business is known as,
Answer: Capital
Question 8
A Ltd. imported from London one machinery for sale in India and other machinery for production purpose. Will you treat them as goods or fixed assets?
Answer: First machinery will be treated as goods and the second machinery will be treated as Fixed Asset.
Question 9
What is income?
Answer: Excess of revenue over expenses is called as Income.
Income = Revenue – Expenses
Question 10
What is the nature of accounting principles?
Answer: Nature of accounting principles are,

  • Accounting principles are a uniform set of rules that are developed to assure the uniformity and easy comprehension of the accounting information
  • Accounting principles are man made and are derived from experience and reason
  • Accounting principles are not static

Question 11
What are the different bases of accounting?
Answer: Different bases of accounting are,

  • Cash basis
  • Accrual basis

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