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CLASS XI
Subject: Accountancy

Time Allowed: 3 Hours Maximum Marks: 80

General Instructions
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and Part B.
3. Question 1 to 13 and 24 to 30 carries 1 mark each.
4. Questions 14 to 18 and 31 carries 3 marks each.
5. Questions from 19, 32 and 33 carries 4 marks each.
6. Questions from 20 to 23 and 34 carries 6 marks each.
7. There is no overall choice. However, an internal choice has been provided in
7 questions of one mark, 2 questions of three marks 1 question of four marks
and 2 questions of six marks.

PART - A FINANCIAL ACCOUNTING-I

1. "Accounting information should be verifiable and free from personal bias". [1]
Name the qualitative characteristics of accounting information denoted by this
statement.
(A) Understandability
(B) Reliability
(C) Comparability
(D) Relevance

OR

A firm has received large order to supply goods. It will not be recorded in the books of
accounts of the firm owing to which accounting concept.
(A) Revenue Recognition concept
(B) Money Measurement concept
(C) Consistency concept
(D) Business entity concept.

2. Errors not disclosed by Trial Balance are: [1]

(A) Compensating Errors
(B) Errors of principle
(C) Errors of commission
(D) All of the above.

mailto:https://play.google.com/store/apps/details?id=co.kevin.nlkfz
3. Cash Book does not record transactions of [1]
(A) Cash nature
(B) Credit nature
(C) Cash and Credit nature
(D) None of these

OR

If a cheque deposited into bank is dishonoured by bank, then it will be recorded in the
Cash Book in;
(A) Credit side of cash column
(B) Debit side of cash column
(C) Credit side of bank column
(D) Debit side of bank column

4. A concept that a business enterprise will not be sold or liquidated in near [1]
future is known as:
(A) Monetary unit
(B) Economic entity
(C) Going Concern
(D) None of the above

5. According to Money Measurement Principle, which of the following will [1]

not be recorded in the books:
(A) Profit on sale of an asset
(B) Salary paid to staff
(C) Loss due to labor strike
(D) Goods sold to Amit

6. Goods sold to Swapnil for ₹7,500 was recorded in his account as ₹5,700. [1]
In the rectifying entry, Swapnil’s Account will be ................. by ...............
(A) Credited, ₹13,200
(B) Credited, ₹1,800
(C) Debited, ₹13,200
(D) Debited, ₹1,800

OR

Depreciation means decline in the value of a fixed assets due to

(A) Usage of asset
(B) Passage of time
(C) Obsolescence
(D) All of these
7. Shyam purchased a building for ₹20,00,000. After a period of five years, [1]
the depreciation charged on the building amounted to ₹3,00,000. However, due to
boom in the property market, the current market value of the building is ₹28,00,000.
State the value at which building should be recorded in the books of accounts.
(A) ₹20,00,000
(B) ₹28,00,000
(C) ₹17,00,000
(D) None of these

8. According to which principle, same accounting methods should be used [1]

each year:
(A) Cost Principle
(B) Revenue Recognition
(C) Full Disclosure
(D) Consistency

9. Goods withdrawn by proprietor from business for his personal use will [1]
be recorded in:
(A) Sales Return Book
(B) Sales Book
(C) Journal Proper
(D) Purchases Book

OR

Identify contra entry from the following:

(A) Rent paid ₹20,000
(B) Cash received from debtors ₹1,000.
(C) Cash deposited into bank ₹25,000.
(D) Goods worth ₹10,000 purchased in cash.

10. Double Entry means: [1]

(A) Entry for two aspects of books
(B) Entry at two dates
(C) Entry in two aspects of transaction
(D) All of the above

11. The liability arising from the purchase of goods on credit is called [1]
(A) Creditors
(B) Accounts Receivable
(C) Loan
(D) Payable Expenses

OR
If the capital of a business is ₹5,00,000 and outside liabilities are ₹2,00,000. calculate
the total assets of the business
(A) ₹7,00,000
(B) ₹3,00,000
(C) ₹9,00,000
(D) None of these

12. Purchase refers to the buying of: [1]

(A) Stationery for office use
(B) Assets for the factory
(C) Goods for resale
(D) Investment

13. Which of the following is a feature of provision? [1]

(A) Necessary to create in order to ascertain true profit and loss
(B) Created to meet known liability
(C) Charge against Profits
(D) All of these

OR

Which of the following is an example of Specific Reserve?

(A) Dividend Equalization Reserve
(B) Debenture Redemption Reserve
(C) Workmen Compensation Reserve
(D) All of these

14. Differentiate between provision and Reserve on the basis of following: [3]
(A) Nature
(B) Purpose
(C) Effect on Profit

15. Why the following parties are interested in Accounting information: [3]
(A) Investors
(B) Government
(C) Consumers

OR

What do you mean by imprest system of petty cash? Explain with example.

16. Show the impact of following transactions on the Accounting Equation. [3]
(A) Vijay started his business with cash ₹70,000.
(B) Purchased machinery in cash ₹25,000
(C) Goods purchased on credit for ₹40,000
17. Prepare Sales Book of M/s Deen Bandu, a Furniture dealer, for the [3]
following transactions:
2019
Date Particulars
2019 Sold to Modern School, Delhi
March 14 50 Chairs @ ₹300 each
40 Tables @ ₹650 each
Trade Discount @10%
March 18 Sold to Jain School, Mohali for cash.
100 Chairs @ ₹300 each.
March 22 Sold to Sharda School, Faridabad
80 Benches @ ₹1,200 each
10 tables @ ₹650 each
March 28 Sold to MSD Girls School, Jaipur
2 old Air Conditioners @5,000 each

18. Identify the following expenditures as capital and revenue expenditure: [3]
(A) Carriage of ₹3,000 paid on the purchase of new machinery.
(B) Insurance Premium of ₹10,000 paid.
(C) An amount of ₹6,000 spent on repairs before using a second-hand car purchased recently
to put it in usable condition.

19. A number of Journal Entries are given below. If these entries are not correct in [4]
terms of narration, correct them.
(A) Purchases A/c Dr. 12,000
Input IGST A/c Dr. 1,440
To Cash A/c 13,440
(Furniture purchased for cash, IGST paid @12%)

(B) Cash A/c Dr. 5,000

To Bank A/c 5,000
(Cash withdrawn from bank for personal use)

(C) Mohan’s A/c Dr. 2,000

To Cash’s A/c 2,000
(Salary paid to Mohan)

(D) Cash A/c Dr. 600

To Vipul’s A/c 600
(Cash received from Vipul on account of interest due to us)

OR

Journalize the following transactions:

(A) Allow interest on capital of ₹5,00,000 @6%.
(B) Out of Insurance premium paid this year, ₹2,500 is related to next year.
(C) Outstanding salary at the end of the year ₹3,400.
(D) Commission received in advance ₹700

20. From the following particulars of Mr. Vinod, prepare bank reconciliation [6]
statement as on March 31, 2021.
(a) Bank Balance as per cash book ₹50,000.
(b) Cheques issued but not presented for payment ₹6,000.
(c) The bank had directly collected dividend of ₹8,000 and credited to bank account but was
not entered in the cash book.
(d) Bank charges of ₹400 were not entered in the cash book.
(e) A cheque for ₹6,000 was deposited but not collected by the bank.
(f) Discounted bill from the bank was dishonoured but not taken into cash book of ₹12,000.

OR

Prepare bank reconciliation statement.

(i) Overdraft shown as per cash book on December 31, 2017 ₹20,000.
(ii) Bank charges for the above period also debited into the pass book ₹200.
(iii) Interest on overdraft for six months ending December 31, 2017 ₹580 debited in the pass
book.
(iv) Cheques issued but not encashed prior to December 31, 2017 amounted to ₹3,150.
(v) Interest on Investment collected by the bank and credited in the pass book ₹800.
(vi) Cheques paid into bank but not cleared before December, 31 2017 were ₹2,100.

21. On 1st April, 2016, Shiva Traders purchased a machinery for ₹40,000. [6]
On 1st October, 2016, the firm purchased another machinery for ₹25,000. On 31st
December, 2017, the machinery purchased on 1st April, 2016 was sold at a loss of ₹8,000.
On 30th June, 2018, another machinery was purchased for ₹20,000. On the same date,
machinery purchased on 1st October, 2016 was sold at a loss of ₹5,000.
Prepare Machinery Account for 3 years, assuming accounts are closed on 31st March each
year and depreciation is charged @10% p.a. as per Straight Line Method.

22. Record the following transactions in double column cash book of [6]
Mr. Rakesh Verma and balance it.
Sept. 01 : Balance of Cash ₹22,000 and Bank Overdraft ₹2,500.
Sept. 06 : Received cheque for ₹4,000 from Gaurav sent into the bank.
Sept. 10 : Bank has collected and deposited : Interest of ₹6,000; Dividend of ₹8,000.
Sept. 16 : Bank has paid several payments on its due date : Insurance premium of ₹3,000 and
School fees of the child of Rakesh Verma ₹5,000.
Sept. 24 : Cash deposited into the bank ₹12,000.
Sept. 29 : Sold goods (costing ₹25,000) at 20% profit for cash.

23. Pass Journal Entries to rectify the following errors : [6]

(a) Credit purchases from Vinay for ₹2,100 were recorded in the Sales Book.
(b) An item of ₹400 relating to Prepaid Insurance Account was omitted to be brought
forward from the previous year's books.
(c) The total of the Returns Inward Book has been added ₹700
(f) Discount received of ₹400 from a creditor had been duly entered in his account but not
posted to the Discount Received Account.

PART - B FINANCIAL ACCOUNTING-II

24. The adjustment to be made for Prepaid expenses is: [1]

(A) Deduct prepaid expenses from respective expenses and show it as a liability
(B) Add prepaid expenses to respective expenses and show it as a liability.
(C) Add prepaid expenses to respective expenses and show it as an asset.
(D) Deduct prepaid expenses from respective expenses and show it as an asset.

25. Trading and Profit and Loss Account discloses the position of the business [1]
(A) For the full accounting year
(B) For a particular point of time
(C) Either (a) or (b)
(D) None of the above.

OR

Carriage on new machinery purchased will be debited to

(A) Machinery Account
(B) Profit and Loss Account
(C) Capital Account
(D) Trading Account

26. Gross Profit is calculated as: [1]

(A) Sales + Cost of Goods Sold
(B) Cost of Goods Sold – Sales
(C) Sales – Cost of Goods Sold
(D) None of these

27. Net Sales ₹6,00,000. Gross Profit 25% on cost. Calculate cost of Goods sold. [1]
(A) ₹4,50,000
(B) ₹4,88,000
(C) ₹4,80,000
(D) ₹5,20,000

28. A firm spends ₹6,00,000 for the publicity of new product in the market for [1]
five years. Which type of expenditure is it?
(A) Capital Expenditure
(B) Revenue Expenditure
(C) Deferred Revenue Expenditure
(D) None of the above.
29. Goods given as charity should be credited to ............................ [1]
(A) Charity Account
(B) Sales Account
(C) Purchase Account
(D) Advertisement Account

30. Closing Stock when appearing inside the Trial Balance, will be shown in the [1]
(A) Profit & Loss Account
(B) Trading Account
(C) Balance Sheet
(D) None of the above

31. Rahul's Trial Balance provides you the following information: [3]

Sundry Debtors ₹80,000

Bad Debts ₹2,000
Provision for Doubtful Debts (Cr.) ₹4,000
Additional Information:
1. Maintain a provision for bad debts of ₹1,000.
How show the adjustment will appear in the Final Accounts.

OR

The treatment of 'Loss of Stock by Fire' is same in the Profit and Loss Account whether the
goods are insured or not. Do you agree?

32. Calculate the value of Opening Stock and Closing Stock if: Cost of Goods [4]
Sold = ₹2,70,000; Net Purchases = ₹2,00,000; Direct Expenses = ₹40,000 and Opening
Stock is two times of the Closing Stock.

33. Differentiate between Trial Balance and Balance Sheet on any four basis. [4]

34. From the following prepare M/s Mohan’s Trading and Profit and Loss Account [6]
for the year ended 31st March 2022:
Particulars Dr. Cr.
Balances Balances
₹ ₹
Capital 1,76,000
Drawings 20,700
Building 3,00,000
Purchases and Sales 3,10,000 5,22,300
Returns 3000
Rent Received 6,700
Carriage 8,600
Wages 24,000
Salaries 37,000
Apprenticeship premium 20,000
 Insurance 2,000
Audit fee 1,500
Cash in hand 10,000
Bank Loan 20,000
Interest on Loan 1,800
Printing and Advertising 5,000
Commission 2,000
Opening Stock 23,400
7,47,000 7,47,000

Adjustments:
(a) Stock at the end ₹32,000.
(b) Depreciate Building by 10%.
(c) Wages due but not paid ₹2,000.
(d) Commission earned but not received ₹300.
(e) Apprenticeship premium not received in advance ₹1,000.
(f) Interest on loan @12% p.a. is unpaid for last 3 months.

OR

The following are the balances of M/s Ganesh Bros. as on 30th June, 2022:
Dr. Balances ₹ Cr. Balances ₹
Cash in hand 540 Sales 98,780
Goodwill 2,630 Returns Outwards 540
Purchases 40,675 Capital 62,000
Returns Inwards 680 Sundry Creditors 9,000
Wages 8,480 Rent 6,300
Fuel and Power 4,730 Outstanding Salaries 600
Carriage on Sales 2,300
Carriage on Purchases 2,040
Stock (-1-07-2021) 5,760
Building 27,000
Freehold Land 10,000
Machinery 20,000
Patents 7,500
Salaries 15,000
Legal Fees 6,000
General Expenses 800
Insurance (expires on 600
31.12.2022)
Drawings 5,245
Sundry Debtors 14,500
1,77,180 1,77,180

Prepare Trading and Profit & Loss Account for the year ended 30th June 2022 after taking into account the
following adjustments:
(a) Stock on hand as on 30th June 2022 is ₹8,200.
(b) General Expenses include ₹5,000 for purchase of machinery on 01.01.2022.
(c) Machinery is to be depreciated at 10% and patents at 20%.
(d) Further bad debts are ₹500. Create a provision for doubtful debts on debtors at 10%.
(e) Rent receivable ₹1,200. Wages unpaid ₹1,800.