Accountancy Class 11 File 2
By Dr VINOD KUMAR
(AUTHOR of ULTIMATE BOOK OF ACCOUNTANCY)
Question 1
Assertion (A)
Capital is treated as liability of the business and it is shown in the Liabilities side of Balance Sheet.
Reason (R)
As per the Business Entity Principle both Businessman and Business are separate entity.
Choose the correct option:
(a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not the correct explanation of the Assertion
(c) Only Assertion is correct
(d) Only Reason is correct
Question 2
Assertion (A)
Accounting Equation is Separate from Balance Sheet and it is not part of the Financial Statements
OR Final Accounts.
Reason (R)
Accounting Equation is based on the rules of Modern Approach (American Approach) of Debit and
Credit OR Double Entry System
Choose the correct option:
(a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not the correct explanation of the Assertion
(c) Only Assertion is correct
(d) Only Reason is correct
Question 3
Assertion (A)
Purchase of Fixed Asset will be recorded through Asset Account and not through the Purchase
Account
Reason (R)
Purchase Account is open only to record the purchase of goods in cash or in credit.
Choose the correct option:
(a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not the correct explanation of the Assertion
(c) Only Assertion is correct
(d) Only Reason is correct
Question 4
Assertion (A)
It is necessary for a business firm to take their unsold stock at the end of the accounting year to
the next accounting year as opening Stock
Reason (R)
Matching Concept plays an important role for correct determination of Net Profit
Choose the correct option:
(a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not the correct explanation of the Assertion
(c) Only Assertion is correct
(d) Only Reason is correct
Answers
1. (a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
2. (a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
3. (a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
4. (a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
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