INDIAN SCHOOL AL WADI AL KABIR

DEPARTMENT OF COMMERCE

CLASS XI- ASSESSMENT I -2023-24

DATE:17/09/2023 ACCOUNTANCY (055) MARKS: 80

General Instructions:
1. All questions are compulsory.
2. Read the questions carefully and attempt all the parts of the questions at one place.
3. Question 1 to 20 carries 1 mark each.
4. While answering the MCQ’s write the selected option number along with the answer.

1. Rahul is working as a manager in General Electronics Ltd. Thus, Rahul is (i)_____ user of 1
accounting information. General Electronics Ltd obtained a loan from UTI Bank, the bank is
(ii)_____ user of accounting information.
A. (i) internal; (ii)internal
B. (i) external; (ii) external
C. (i) internal; (ii) external
D. (i) external; (ii) internal

2. The efficiency of management and workforce improves the earning the of a business, but these factors 1
cannot be recorded in the books of accounts
Identify the limitation of accounting described above.
A. Ignores qualitative elements
B. Leads to window dressing
C. Ignores price level changes
D. Not free from bias

3. Which one of the following is not a qualitative element of accounting information? 1

A. Relevance
B. Understandability
C. Realistic
D. Comparability

4. Which of the following is not a business transaction? 1

A Purchase goods for resale
B. Payment of salary to domestic servant from personal A/c
C. Payment of freight while purchasing raw material.
D. Payment of installation cost for machinery.

5. A renovation expenses for a movie theatre that will give benefit for next 10 years is a ___________. 1
A. Capital expenditure
B. Revenue expenditure
C. Revenue Receipt
D. Deferred Revenue expenditure
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6. Assertion: Current assets are those which are held by a business for the purpose of converting them 1
into cash within a period of one year.
Reason: Closing Stock is a current asset as it is sold within a short period for cash or on credit.

A. Assertion and Reason are correct and Reason is the correct explanation of Assertion.
B. Assertion and Reason are correct and Reason is not the correct explanation of Assertion.
C. Assertion and Reason both are incorrect.
D. Assertion is correct; Reason is incorrect

7. Which of the following is an intangible asset? 1

A. Building
B. Goodwill
C. Trade Receivables
D. Prepaid Expenses

Read the following paragraph and then answer the question no.8 to 10. 1
Mr. Agarwal started a business of readymade garments with a capital ₹ 1,00,000.
He purchased goods worth ₹ 30,000 from Praveen and paid him the amount immediately. He sold
garments for ₹ 18,000 to Dinesh on credit. Dinesh paid the amount after 2 months. Out of total
goods purchased from Praveen, goods of ₹ 1,000 was defective and were returned to him.

8. Which document is used when Mr. Agarwal bought goods worth 30,000 from Praveen? 1
A. Cash Memo
B. Invoice
C. Cheque
D. Receipt

9. Which document will be issued to Dinesh when he paid the price of the goods to Mr. Agarwal? 1
A. Pay in slip
B. Receipt
C. Cash memo
D. Debit Note

10. Which document will be prepared by Mr. Agarwal when he returns the goods to Praveen? 1
A. Debit Note
B. Credit Note
C. Invoice
D. Cheque

11. A motor vehicle of ₹ 1,00,000 is depreciated @10% p.a. for 6 months. 1

What will be the effect of this transaction while preparing accounting equation?
A. Decrease Motor vehicle by ₹10,000 and decrease cash by ₹10,000.
B. Increase Motor vehicle by ₹5,000 and increase capital by ₹5,000.
C. Increase Motor vehicle by ₹5,000 and increase capital by ₹5,000.
D. Decrease Motor vehicle by ₹5,000 and decrease capital by ₹5,000.

12. Payment of rent by cheque will have which of the following impact on accounting equation? 1
A. Increase bank and decrease capital
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 B. Decrease cash and decrease capital
C. Increase bank and increase capital
D. Decrease bank and decrease capital

13. Recording of transaction in a chronological order in a Journal is called as ___________. 1

A. Posting
B. Journalizing
C. Balancing
D. Transferring

14. Goods sold to Irfan on credit is posted in the ledger as: 1

A. Debit of Irfan’s A/c and credit of sales A/c
B. Debit of Cash A/c and credit of sales A/c
C. Debit of Sales A/c and credit of Irfan’s A/c
D. Debit of Sales A/c and credit of cash A/c

15. In a Trial Balance, carriage inward has a (i)___ balance and return inward has a (ii)___ balance. 1
A.(i) debit; (ii) credit
B.(i) credit; (ii) debit
C.(i) credit; (ii) credit
D.(i) debit; (ii) debit

16. Identify the item on which GST is not applied. 1

A. Educational services
B. Electronic Goods
C. Rent of premises
D. Clothes and dress material

17. Gaurav owns his business in Mumbai in Maharashtra sold the goods to Jeet who is from Ahmedabad 1
in Gujrat on 1st January 2023 for ₹25,000 plus Goods and Services Tax.(GST)
Name the GST to be collected by Gaurav for the above transaction.
A. Output Central Goods and services tax
B. Input State Goods and services tax
C. Input Integrated Goods and services tax
D. Output Integrated Goods and services tax

18. A cheque received from a customer is deposited into the bank on a same day. 1
How will this transaction be recorded in the double column cash book?
A. Recorded in the debit side cash column
B. Recorded in the debit side of bank column
C. Recorded in the credit side of bank column
D. Recorded as contra entry

19. Payment of ₹8,500 to Akash in full settlement of ₹10,000 by cash. 1

How will this be shown in a double column cash book?
A. Credit side of bank column ₹8,500
B. Debit side of cash column ₹10,000
C. Debit side of bank column ₹8,500
D. Credit side of cash column ₹8,500

Page 3 of 6
20. According to traditional approach, salary is _______ account. 1
A. Personal
B. Real
C. Nominal
D. Capital

21. Explain the 3 limitations of accounting. 3

22. Identify the accounting concept involved in each of the following situation: 3
(i) The method selected for depreciating fixed assets is followed year after year.
(ii) Business records an anticipated loss in the books of account.
(iii) At the end of accounting period the factory rent of ₹10,000 is remaining outstanding.

23. Define the following terminologies: 4

(i)Current Liability; (ii) Trade Receivable; (iii) Gain; (iv) Tangible assets

24. Following is a ledger A/c in the books of Alan 4

Dr Kuldeep’s A/c Cr
DATE PARTICULARS ₹ DATE PARTICULARS ₹
2023 2023
April 1 To Balance b/d 6,000 April 10 By Bank 12,000
April 10 By Discount allowed 1,000
April 5 To Sales A/c 20,000

(i) Is Kuldeep a debtor or creditor for Alan?

(ii) Write the journal entry for transaction on April 10, 2023.
(iii) Kuldeep returned goods worth ₹3,000 on 20th April. Post this transaction in the above ledger
A/c.
(iv) Kuldeep is declared bankrupt at the end of the month and only 50 paisa in a rupee was
recovered from his estate. Write the journal entry for this transaction.

25. Pass the journal entries in the books of Ranjeet, a retailer 6

2023 Purchased goods from Amit, List Price ₹ 40,000 at a trade discount of 20% and paid
May 1 half of the amount after a cash discount of 10%.

May 4 Paid salaries to staff by cheque ₹ 5,000 and by giving away stock of goods costing ₹
1,000.

May 8 Paid rent to the landlord ₹24,000, half of the building was used by the owner for
residential purpose.

May 10 Stock worth ₹ 15,000 (Market price ₹18,000) was stolen, the insurance company
accepted the claim to compensate ₹9,000.

26. Prepare a Trial Balance as on 31.3.2023 with the following balances: 7

Purchase ₹ 5,000
Bad debt Recovered ₹ 2,000

Page 4 of 6
 Bank overdraft ₹ 1,000
Purchase Return ₹ 500
Salaries outstanding ₹ 3,600
Rent from tenant ₹ 1,800
Debtors ₹ 7,000
Sales ₹ 8,000
Carriage outward ₹ 600
Provision for depreciation ₹ 3,000
Loan Advanced ₹ 2,000
Capital ₹ 12,000

27. Journalise the following transactions: 8

June 2023 Purchased goods from Anwar of list price ₹50,000 at a Trade Discount of 10% and
Cash discount of 10%. IGST @ 10%. Paid half of the amount by cheque
6 immediately.
9 Sold goods at marked price of ₹20,000 at a trade discount of 5%. CGST and
SGST @5% each.
12. Returned goods to Anwar of cost price ₹4,000.

15 Sold old furniture at ₹6,000. CGST and SGST @ 5% each.

20 Sold goods costing ₹8,000 to Anurag at a profit of 25%. IGST @10%. Cash
discount @10%. Received a cheque from him.

28. Prepare double column cash book from the following details: 10
2023
Aug 1. Cash at office: ₹2,000. Bank overdraft: ₹ 3,000
Aug 4. Paid telephone bill ₹600.
Aug 9. Sold goods for ₹4000 and put ₹1,000 into bank.
Aug 11. Purchased goods costing ₹600, Trade Discount @ 5% and received an invoice.
Aug 15. Interest on overdraft debited by bank ₹500.
Aug 17. A customer directly deposited ₹4,000 into bank.
Aug 18. Insurance paid by bank as per standing instruction ₹1,500
Aug 19. Purchased stationary ₹800 and paid 50% of the amount by cash and remaining by cheque.
Aug 21. Received a cheque from Devika ₹1,300 in full settlement of ₹1,500.
Aug 24. Deposited Devika’s cheque into bank.
Aug 28. Withdrew from bank to buy groceries for domestic consumption ₹700.
Aug 31. Deposited in excess of ₹1000 into bank

Page 5 of 6
29. 15
Write the journal entries, post them into ledger and extract the balance to prepare a Trial Balance:

2023
July 1. Started business with cash of ₹15,000 and machinery ₹50,000
July 3. Deposited ₹5,000 into bank.
July 6. Purchased goods from Rahul ₹8,000.
July10. Sold goods to Rakesh ₹5,000.
July 15. Paid Rahul ₹7,000 in full settlement.
July 30. Machine is depreciated by 10%.
July 31. Received a cheque of ₹2,000 from Rakesh on account.

Page 6 of 6
 INDIAN SCHOOL AL WADI AL KABIR
DEPARTMENT OF COMMERCE

CLASS XI- ASSESSMENT I -2023-24

DATE:17/09/2023 ACCOUNTANCY (055) MARKS: 80
MARKING SCHEME
1. Rahul is working as a manager in General Electronics Ltd. Thus Rahul is _____(i)_____ 1
user of accounting information. General Electronics Ltd obtained a loan from UTI Bank,
the bank is _____(ii)_____ user of accounting information.
A. (i) internal; (ii)internal
B. (i) external; (ii) external
C. (i) internal; (ii) external
D. (i) external; (ii) internal

2. The efficiency of management and workforce improves the earning the of a business, but 1
these factors cannot be recorded in the books of accounts
Identify the limitation of accounting described above.
A. Ignores qualitative elements
B. Leads to window dressing
C. Ignores price level changes
D. Not free from bias

3. Which one of the following is not a qualitative element of accounting information? 1

A. Relevance
B. Understandability
C. Realistic
D. Comparability

4. Which of the following is not a business transaction? 1

A Purchase goods for resale
B. Payment of salary to domestic servant from personal A/c.
C. Payment of freight while purchasing raw material.
D. Payment of installation cost for machinery.

5. A renovation expenses for a movie theatre that will give benefit for next 10 years is a 1
___________.
A. Capital expenditure
B. Revenue expenditure
C. Revenue Receipt
D. Deferred Revenue expenditure
6. Assertion: Current assets are those which are held by a business for the purpose of 1
converting them into cash within a period of one year.
Reason: Closing Stock is a current asset as it is sold within a short period for cash or on
credit.

A. Assertion and Reason are correct and Reason is the correct explanation of
Assertion. or
B. Assertion and Reason are correct and Reason is not the correct explanation of
Assertion.
C. Assertion and Reason both are incorrect.
D. Assertion is correct; Reason is incorrect

7. Which of the following is an intangible asset? 1

A. Building
B. Goodwill
C. Trade Receivables
D. Prepaid Expenses

Read the following paragraph and then answer the question no.8 to 10. 1
Mr. Agarwal started a business of readymade garments with a capital ₹ 1,00,000.
He purchased goods worth ₹ 30,000 from Praveen and paid him the amount immediately.
He sold garments for ₹ 18,000 to Dinesh on credit. Dinesh paid the amount after 2
months. Out of total goods purchased from Praveen, goods of ₹ 1,000 was defective and
were returned to him.

8. Which document is used when Mr. Agarwal bought goods worth 30,000 from Praveen? 1
A. Cash Memo
B. Invoice
C. Cheque
D. Receipt

9. Which document will be issued to Dinesh when he paid the price of the goods to Mr. 1
Agarwal?
A. Pay in slip
B. Receipt
C. Cash memo
D. Debit Note

10 Which document will be prepared by Mr. Agarwal when he returns the goods to Praveen? 1
A. Debit Note
. B. Credit Note
C. Invoice
D. Cheque
11 A motor vehicle of ₹ 1,00,000 is depreciated @10% p.a. for 6 months. 1
What will be the effect of this transaction while preparing accounting equation?
. A. Decrease Motor vehicle by ₹10,000 and decrease cash by ₹10,000.
B. Increase Motor vehicle by ₹5,000 and increase capital by ₹5,000.
C. Increase Motor vehicle by ₹5,000 and increase capital by ₹5,000.
D. Decrease Motor vehicle by ₹5,000 and decrease capital by ₹5,000.

12 Payment of rent by cheque will have which of the following impact on accounting 1
equation?
. A. Increase bank and decrease capital
B. Decrease cash and decrease capital
C. Increase bank and increase capital
D. Decrease bank and decrease capital

13 Recording of transaction in a chronological order in a Journal is called as ___________. 1

A. Posting
. B. Journalising
C. Balancing
D. Transferring

14 Goods sold to Irfan on credit is posted in the ledger as: 1

A. Debit of Irfan’s A/c and credit of sales A/c
. B. Debit of Cash A/c and credit of sales A/c
C. Debit of Sales A/c and credit of Irfan’s A/c
D. Debit of Sales A/c and credit of cash A/c

15 In a Trial Balance, carriage inward has a ___(i)___ balance and return inward has a 1
___(ii)___ balance.
. A.(i) debit; (ii) credit
B.(i) credit; (ii) debit
C.(i) credit; (ii) credit
D.(i) debit; (ii) debit

16 Identify the item on which GST is not applied. 1

A. Educational services
. B. Electronic Goods
C. Rent of premises
D. Clothes and dress material

17 Gaurav owns his business in Mumbai in Maharashtra sold the goods to Jeet who is from 1
Ahmedabad in Gujrat on 1st January 2023 for ₹25,000 plus Goods and Services
. Tax.(GST)
Name the GST to be collected byGaurav for the above transaction.
A. Output Central Goods and services tax
B. Input State Goods and services tax
C. Input Integrated Goods and services tax
D. Output Integrated Goods and services tax
 18 A cheque received from a customer is deposited into the bank on a same day. 1
How will this transaction be recorded in the double column cash book?
. A. Recorded in the debit side cash column
B. Recorded in the debit side of bank column
C. Recorded in the credit side of bank column
D. Recorded as contra entry

19 Payment of ₹8,500 to Akash in full settlement of ₹10,000 by cash. 1

How will this be shown in a double column cash book?
. A. Credit side of bank column ₹8,500
B. Debit side of cash column ₹10,000
C. Debit side of bank column ₹8,500
D. Credit side of cash column ₹8,500

20 According to traditional approach, salary is _______ account. 1

A. Personal
. B. Real
C. Nominal
D. Capital

21 Explain the 3 limitations of accounting. 3

Not Free from bias
. Leads to window dressing
Ignores qualitative elements
Ignores Price level changes (Any 3 with explanations)
0.5 for heading; 0.5 for explanation each.

22 Identify the accounting concept involved in each of the following situation: 3

(i) The method selected for depreciating fixed assets is followed year after year.
. Consistency
(ii) Business records an anticipated loss in the books of account.
Prudence/Conservatism
(iii) At the end of accounting period the factory rent of ₹10,000 is remaining
outstanding.
Accrual

23 Define the following terminologies: 4

(i)Current Liability; (ii) Trade Receivable; (iii) Gain; (iv) Tangible assets.
. Current Liabilities are those which are to be paid within 1 year.
Trade receivable is the sum total of debtors & bill receivable.
Gain is the amount received through incidental activities which are irregular in
nature.
Tangible Assets are those which have physical existence can be seen and touched.

24.(i)Debtor
(ii)
Apr 10 Bank A/c 12,000
 Discount Allowed 1,000
To Kuldeep a/c 13,000
(iii) Apr 20 By S/Return A/c 3,000
(iv) Cash A/c Dr 5,000
Bad Debt A/c………Dr 5,000
To Kuldeep’s A/c 10,000

25.
Purchase A/c…..dr 32,000
To Cash 14,400
To Discount Received 1,600
To Amit 16,000
Salary A/c……dr 6,000
To Bank A/c 5,000
To Purchase A/c 1,000
Rent A/c……dr 12,000
Drawings A/c…..dr 12,000
To Cash A/c 24,000
Abnormal Loss A/c……dr 6,000
Insurance claim A/c……dr 9,000
To Purchase A/c 15,000

26. Trial Balance

Purchase 5,000
Bad debt Recovered 2,000
Bank overdraft 1,000
Purchase return 500
Salaries O/S 3,600
Rent from tenant 1,800
Provision for depreciation 3,000
Sales 8,000
Carriage outward 600
Debtors 7,000
Loan Advanced 2,000
Capital 12,000
Suspense A/c 17,300
31,900 31,900

27.
Purchase A/c…..dr 45,000
Input IGST A/c….dr 4,275
To Cash 22,275
To Discount Received 2250
To Anwar 24750
Cash A/c……dr 20,900
 To sales A/c 19,000
To OCGST 950
TO OSGST 950
Anwar A/c…..dr 4,400
To Purchase Return 4,000
To Input IGST 400
Bank A/c…dr 11,250
Discount allowed ….Dr 1,000
To Sales A/c 10,000
To OIGST 2,250

28.
Cash Bank Cash Bank
To Bal b/d 2,000 By Bal b/d 3,000
To sales 3,000 1,000 By telephone
To Customer 4,000 By interest 500
To cheques in hand 1,300 By insurance 1,500
To cash 3,000 By stationery 400 400
By drawings 700
By Bank 3,000
By Bal c/d 1,000 3,200

5,000 9,300 5,000 9,300

Aug 11 and 21 No entry,

29.
Cash A/c 15,000
Mach A/c 50,000
To Capital A/c 65,000
Bank A/c 5,000
To Cash A/c 5,000
Purchase A/c 8,000
To Rahul’s A/c 8,000
Rakesh A/c 5,000
To Sales A/c 5,000
Rahul A/c 8,000
To Cash 7,000
To Discount Received 1,000

Depreciation A/c 5,000

To Mach A/c 5,000

Bank A/c 2,000

To Rakesh A/c 2,000
Cash 3,000
Mach 45,000
Capital 65,000
Bank 7,000
Purchase 8,000
Rakesh 3,000
Sales 5,000
Disc rec 1,000
Depreciation 5,000
71,000 71,000