FIRST TERM EXAMINATION

MARKING SCHEME- CLASS 11

ACCOUNTANCY

Q1 Which of the following is not a step in the process of accounting? [1]

a) Recording transactions in the books of original entry.

b) Posting to Ledger.
c) Preparation of Trial Balance.
d) Payment of Tax.
Ans d) Payment of Tax

Q2 Out of the following assets, which one is an intangible asset? [1]

a) Goodwill
b) Building
c) Machinery
d) Cash and bank balance
Ans a) Goodwill

Q3 Posting of transaction means: [1]

a) entering transactions in journal.

b) entering transactions in ledger.
c) entering transactions in trial balance.
d) entering transactions in financial statements.
Ans b) entering transactions in ledger

Q4 Depreciation charged on building is recorded through: [1]

a) Transfer Voucher.
b) Cash Voucher.
c) Debit Voucher.
d) Credit Voucher.
Ans a) Transfer Voucher.

Q5 A liability is met by issuing a cheque. Which account will be credited and why? [1]

Ans Bank a/c will be credited as bank is an asset and paying liability through cheque
decreases it. [1/2+ 1/2]
Q6 On inter state sale of goods, which of the following accounts are credited while passing
the journal entry: [1]

a) Output IGST Account.

b) Output CGST Account and Input SGST Account.
c) Input IGST Account.
d) Input CGST Account and Input SGST Account.
Ans a) Output IGST Account

Q7 The bank statement shows as overdrawn balance of ₹ 2,000. A cheque for ₹ 500 drawn
in favour of a creditor has not yet been presented for payment. When the creditor presents
the cheque for payment the bank balance will be [1]

a) ₹ 1,500.
b) ₹ 2,500.
c) ₹ 1,500 (over drawn).
d) ₹ 2,500 (over drawn).
Ans (d) ₹ 2,500 (overdrawn)

Q8 Sale of business assets on credit is recorded in: [1]

a) Sales Book.
b) Journal Proper.
c) Sales Return Book.
d) Cash Book.
Ans (b) Journal Proper

Q9 Which item is shown as debit balance in the Trial Balance: [1]

a) Return Outwards.
b) Output IGST.
c) Freight Outwards.
d) Discount Received.
Ans c) Freight Outwards

Q10 A cheque of ₹ 112 received from a debtor deposited in the bank but omitted to be
recorded in the cash book. If you start with the balance in the cash book: - [1]

a) ₹ 112 will be added.

b) ₹ 112 will be subtracted.
c) No adjustment is required.
d) None of the above.
Ans (a) ₹ 112 will be added.

Q11 State the accounts which are not considered while preparing Trial Balance by balance
method. [1]

Ans The accounts having zero balance are not considered.

Q12 Pawan sold goods to Bajwa for ₹ 10,000 at 10% trade discount. It will be recorded by
Bajwa in ______________________ Book. [1]

Ans Purchases Book

Q13 What is the nature of the balance of Petty Cash Book? [1]

Ans An asset

Q14 Assertion (A): Accounting may be influenced by the personal judgement.

Reason (R): Accountant has to exercise his personal judgement in respect of various
items such as estimating useful life of an asset to charge depreciation.

Choose the correct option from the options given below:

a) (A) is correct but (R) is wrong.
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
c) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
d) Both (A) and (R) are incorrect. [1]
Ans c) Both (A) and (R) are correct, and (R) is the correct explanation of (A).

Q15 Indicate how accounting equation is affected if cash is received as a commission for
services rendered? [1]

Ans Increase in Asset (cash) and increase in Capital (as revenue increases)

Read the following hypothetical situation and answer Q 16 and Q 17 on that basis:

An infrastructure company building highways has a contract to construct road of 50 kms.

The project is likely to be completed in 4 years. It has approached a bank seeking finance.
The bank has requested them to prepare projected yearly accounts whereas the company
has argued that since the project shall be completed in 4 years, projected accounts should
be prepared for the end of the project. In the first year of the project, the work had to stop
due for a week due to a strike. The owner estimated the loss of work and likely loss of
profit arising due to the situation and directed the accountant to and record it in the books
of accounts.
Q16 Is the company correct in its argument that projected accounts should be prepared for the
end of the project? Which principle of accounting is violated with this argument? [1]

Ans No, Accounting period principle

Q17 Is the owner correct in recording the likely loss of profit due to strike? State reason. [1]

Ans No as likely loss due to strike cannot be measured.

Q18 Which source document is used for depositing cash or cheques into bank? [1]

Ans Pay in slip

Q19 Which accounting equation is incorrect out of the following:

a) Liabilities= Assets - Capital

b) Liabilities = Assets + Capital
c) Capital = Assets - liabilities
d) Assets = Liabilities + Capital [1]
Ans b) Liabilities = Assets + Capital

Q20 State any two examples of long- term liabilities. [1]

Ans Debentures, Long term loans from banks, public deposits (ANY TWO)

Q21 Briefly explain any three advantages of accounting. [3]

Ans Provide information about financial performance

Provide assistance to management
Facilitates comparative study
Replaces memory
Helps in settlement of tax liability
Helpful in raising loan
Helpful in decision making
Evidence in court
Facilitates sale of business
(EXPLANATION OF ANY THREE OF ABOVE) [1X3]

Q22 Prepare a Transfer Voucher in the books of Elite Stores, Delhi from the source voucher
related to Purchase of goods worth ₹ 5,000 from M/s Moji & Sons, Mumbai vide Bill
No. 5672 on 17 May 2022.
OR
Prepare a suitable voucher in the books of M/s. Ram Das, New Delhi for sale of goods to
Hari Ram against cash ₹ 12,000 vide Cash Memo No. 134 on 6th Feb 2022. [3]
Ans Transfer Voucher

Elite Stores
Delhi
Voucher No. ….. Date 17.5.22
Amount (₹)
Debit : Purchases a/c 5,000
5,000
Credit: M/s. Moji & Sons 5,000
(Goods purchased vide bill no 5672)
5,000
Sd/- Sd/-
Manager Accountant
OR

Credit Voucher

M/s Ram Das

New Delhi
Voucher No. ….. Date: 6.2.22
Amount (₹)
Credit: Sales a/c 12,000
(Goods sold for cash vide cash memo no 134)
12,000
Sd/- Sd/-
Manager Accountant

Q23 Explain the meaning of any three of the following terms: [3]

(a) Inventory (b) Business Transaction (c) Sales (d) Capital Expenditure (e) Profit
Ans (a) Inventory- The goods available with the business for sale on a particular date is
known as stock or inventory. Stock/Inventory may be Opening inventory /Stock or
Closing inventory/Stock.

(b) Business Transaction- An Economic activity that affects financial position of the
business and can be measured in terms of money. For Example- expenses.
(c) Sales- Sales are total revenues from goods sold or services provided to customers.
Sales may be cash sales or credit sales.
(d) Capital Expenditure- If benefit of expenditure is received for more than one year, it is
called capital expenditure. These are non-recurring. Example: Purchase of Machinery.
(e) Profit- The excess of revenues over its related expenses during an accounting year is
profit.
Profit = Revenue – Expenses
(ANY THREE OF ABOVE)
Q24 From the following ledger balances prepare Trial Balance as on 31st March 2022:

Drawings ₹ 6,900; Discount received ₹ 1,040; Amount due from Razia ₹ 80,000; Return
outward ₹ 6,880; Proprietor’s equity ₹ 80,500; Purchases ₹ 29,580; Patents ₹ 50,000;
Discount allowed ₹ 500; Freight outward ₹ 2,500; Sales ₹ 62,500; Amount due to Kevin
₹ 21,560; Cash ₹ 3,000.
[3]

Ans Trial Balance

As on 31st March 2022
S.No. Particulars L.F. Dr. Amount (₹) Cr. Amount (₹)
1 Drawings 6,900
2 Discount received a/c 1,040
3 Razia 80,000
4 Return outward 6,880
5 Proprietor’s equity 80,500
6 Purchases a/c 29,580
7 Patents 50,000
8 Discount allowed a/c 500
9 Freight Outward a/c 2,500
10 Sales 62,500
11 Kevin 21,560
12 Cash 3,000
1,72,480 1,72,480

Q25 Prepare Bank Reconciliation Statement from the following particulars as on 30th
November 2021 when Pass Book shows a credit balance of ₹ 5,500:

(i) Cheques deposited for ₹ 10,500 but cheques of ₹ 3,500 were collected on 10 th
December 2021.
(ii) Cheques issued for ₹ 7,000 but only ₹ 3,000 could be cleared upto 30 th
November.
(iii) A cheque of ₹ 4,300 debited in the Cash Book but omitted to be banked.
(iv) A cheque of ₹ 1,000 is dishonoured but not recorded in the Cash Book. [3]
Ans Bank Reconciliation Statement
As on 30th November 2021
S.No. Particulars Plus item Minus item(₹)
(₹)
Credit balance as per Pass Book 5,500
1 Cheques deposited but not collected 3,500
2 Cheques issued but not cleared 4,000
3 Cheque debited in Cash Book but not banked 4,300
 4 Cheque dishonoured and debited by bank 1,000
Dr. Balance as per Cash Book 10,300
TOTAL 14,300 14,300

Q26 Journalise the following transactions:

(i) Received ₹ 2,000 from Leela which were written off as bad debts last year.
(ii) Rent paid in advance ₹ 2,000.
(iii) Goods distributed as free samples ₹ 12,000.
(iv) Furniture bought from Sudhir ₹ 10,000.
(v) Goods worth ₹ 70,000 were sold to Peter at a trade discount of 5%. [3]
Ans
Journal
Date Particulars L.F. Dr. Amount Cr. Amount
(i) Cash a/c ………………………dr. 2,000
To Bad Debts recovered a/c 2,000
(Bad debts w/off last year, now recovered )
Prepaid rent a/c dr. 2,000
(ii) To Rent a/c 2,000
OR
Prepaid Rent a/c dr. 2,000
To Cash a/c 2,000
(Rent paid in advance)
(iii) Advertisement Expenses a/c……dr. 12,000
To Purchases a/c 12,000
(Goods distributed as free samples)
(iv) Furniture a/c……… dr. 10,000
To Sudhir’s a/c 10,000
(Furniture purchased from Sudhir)
(v) Peter a/c………….dr. 66,500
To Sales a/c 66,500
(Goods sold at a TD of 5%)

Q27 Briefly explain the assumptions under International Financial Reporting Standards
(IFRS).

OR

Briefly explain: (a) Consistency Assumption of accounting.

(b) Duality Principle of accounting. [4]
Ans Assumptions of IFRS: Explanation of-
1. Accrual Assumption
2. Going Concern Assumption
 3. Measuring Unit Assumption- the assets should be reflected at current price,i.e., fair
value.
4. Constant Purchasing Power Assumption- It means value of capital can be adjusted to
inflation in the economy at the end of the financial year. [1x4]
OR
(a) Consistency Assumption or concept: It states that once a method has been selected,
the method must be used consistently from one accounting period to the next. It helps
in better understandability and comparability of accounting information.
Method can be changed by the company, but it should be disclosed along with its
impact on profit and loss.
(b) Duality or Dual Aspect: It states that a business transactions always has two effects
on the business and requires two entries, one debit and one credit of equal amount, to
be made in the accounts. Double entry system of book-keeping is based on this
principle. The basic accounting equation that ASSETS = CAPITAL + LIABILITIES
is also based on this principle. [2x2]

Q28 Mr. Syed maintains Analytical Petty Cash Book on the imprest system. From the
following information, show how his Petty Cash Book would appear for the week ended
12th August 2022 if the imprest amount is ₹ 5,000:

7 Aug- Balance in hand……………………………………………………..2,470

Postage………………………………………………………………. 250
Stationery ………………………………..…………………..……… 300
8 Aug- Traveling and conveyance…………………………………………... 830
Pens and registers………………………………....……..………….. 500
Office cleaning………………………………………………………. 150
11Aug-Notice by registered post…………………………………………… 170
Auto fare……………………………………………………………. 670
Refreshments for clients……………………………………………. 1,200 [4]

Ans Analytical Petty Cash Book of Mr. Syed

Receipts Date V. Particulars Total Payments Conveyance Postage Stationery Miscellaneous
N. (₹) (₹) (₹) (₹) (₹)
2022
2,470 7Aug To balance b/d
2,530 To Cash a/c
By Postage a/c 250 250
By stationery a/c 300 300
8Aug By Conveyance a/c 830 830
By Stationery a/c 500 500
By Misc Exps a/c 150 150
11Aug By Postage a/c 170 170
By Conveyance a/c 670 670
By Misc Exps a/c 1,200 1,200
 4,070 1,500 420 800 1,350
12Aug By balance c/d 930
5,000 5,000
930 13 Aug To balance b/d
4,070 To Cash a/c

Q29 Prepare a bank reconciliation statement as on 31st August 2022.

a) Debit balance as per Cash book ₹ 70,000.
b) Cheques deposited as per bank statement but not entered in the cash book ₹ 6,000.
c) Cheques of ₹ 5,000 issued up to 31st Aug 2022 out of which cheques of ₹ 3,000
were cleared on 5th Sep 2022.
d) Interest of ₹ 500 credited by the bank but not entered in the cash book.
e) Customer’s cheques dishonored as per bank statement ₹ 1,000.
f) Direct deposit by the customer into bank account ₹ 3,000. [4]
Ans Bank Reconciliation statement
as on 31st August 2022
Particulars Plus Amt (₹) Minus Amt
(₹ )

Debit Balance as per cash Book (1/4) 70,000

Add cheques deposited as per bank statement but not
entered in cash book (1) 6,000
Add cheque issued but not presented for payment (1) 3,000
Add Interest credited by bank (1/2) 500
Add Direct deposit by the customer in to bank account 3,000
(1/2)
Less Customer’s cheques dishonored as per bank
statement. (1/2) 1,000
Balance as per Bank Statement (1/4) _________ 81,500
82,500 82,500

Q30 Enter the following transactions in a two columnar Cash Book of Mr. Sameer and show
the closing balances:

2022
Jan 1 Balance of cash in hand ₹ 10,000 and bank overdraft ₹ 16,000.
Jan 3 A cheque of ₹ 10,000 received from Ajay and deposited in bank in the month of
December 2021 is now returned dishonoured.
Jan 5 Sold goods for cash ₹ 8,000 and ₹ 10,000 on credit to Rani. (IGST is applicable
@ 12% on the goods sold)
Jan 11 Received a cheque of ₹ 20,000 from Prem and deposited it in bank. Discount
allowed is ₹ 1,000.
 Jan 18 Paid a cheque of ₹ 4,000 to Abhishek for advertisement (CGST and SGST of 6%
each)
Jan 20 Cheque received from Rani (not banked)
Jan 24 Withdrew ₹ 6,000 from bank for office use.
Jan 25 Rani’s cheque is endorsed to Salma.
Jan 28 Paid salaries in cash ₹ 15,000. [6]
Ans In the books of Sameer
Dr. Two column Cash Book 5 marks Cr.
Date Particulars L. Amount (₹) Date Particulars L. Amount (₹)
F. Cash Bank F. Cash Bank
2022 2022
Jan 1 To balance b/d 10,000 Jan 1 By balance b/d 16,000
5 To Sales a/c 8,000 3 By Ajay’s a/c 10,000
To Output IGST 960 18 By Advertisement 4,000
a/c a/c
11 To Prem’s a/c 20,000 By Input CGST a/c 240
24 To Bank a/c C 6,000 By Input SGST a/c 240
31 To balance c/d 16,480 24 By Cash a/c C 6,000
28 By Salary a/c 15,000
31 By balance c/d 9,960
24,960 26,840 24,960 36,480
Feb 1 To balance b/d 9,960 Feb 1 By balance b/d 16,480

Jan 20 and 25 transactions will be recorded in Journal Proper. – 1mark

Jan 20 Cheques in hand a/c dr. 11,200 Jan 25 Salma’s a/c dr. 11,200
To Rani’s a/c 11,200 To Rani’s a/c 11,200
(cheque received from Rani) OR (Rani’s cheque endorsed to Salma)

Jan 25 Salma’s a/c dr. 11,200

To Cheques in hand a/c 11,200
(cheque endorsed to Salma)

Q31 Pass necessary journal entries in the books of M/s. Geeta Enterprises, Delhi for the
following transactions in the month of April 2022:

1 Opening balances- Cash ₹ 70,000; Inventory ₹ 30,000; Machinery ₹ 1,00,000;

Creditors ₹ 40,000; Capital ₹ 1,60,000.
5 Purchased goods amounting to ₹ 40,000 from Star Enterprises of Delhi (CGST and
SGST @ 6% each) subjected to a trade discount of 5%.
12 An amount of ₹ 12,600 is owed to Nadeem. ₹ 12,000 is paid to him in full settlement
of his account.
18 Goods worth ₹ 20,000 sold to D.K. Bros. Chennai. IGST of 6% is applicable. Cash
discount is allowed at 3% as payment is immediately received.
25 Interest of ₹ 1,500 is due but not received. [6]
Ans In the books of M/s. Geeta Enterprises
Journal
Date Particulars L.F. Dr. Amount Cr. Amount
2022
April Cash a/c ………………………dr. 70,000
1 Inventory a/c…………………. dr. 30,000
Machinery a/c…………………dr. 1,00,000
To Creditors a/c 40,000
To Capital a/c 1,60,000
(Opening balances brought forward)
Purchases a/c…………………dr. 38,000
5 Input CGST a/c………………dr. 2,280
Input SGST a/c………………dr. 2,280
To Star Enterprises a/c 42,560
(Goods bought on credit at TD of 5% and
CGST and SGST of 6% each)
12 Nadeem a/c………………………dr. 12,600
To Cash a/c 12,000
To Discount received a/c 600
(Cash paid to Nadeem in full settlement)
18 Cash a/c……………………..dr. 20,564
Discount allowed a/c………………..dr. 600
To Sales a/c 20,000
To Output IGST a/c 1,164
(Goods sold at IGST of 6% and CD of 3%)
25 Accrued Interest a/c………….dr. 1,500
To Interest a/c 1,500
(Interest due to be received)

Q32 Write up Purchases Book and Sales Book of Kareem, dealer of spare parts in Delhi
from the following transactions given for July 2022:

July 1 Purchased goods from Asha, Kolkata and payment made through cheque. (IGST
@ 12%)
200 locks @ ₹ 55 per lock
80 packets of screws @ ₹ 100 per packet
Trade discount @ 10%

July10 Sarika of Delhi purchased from Kareem: (SGST and CGST each @ 6%)
Hammers amounting to ₹ 40,000
Axes amounting to ₹ 80,000

July18 Sold goods to Salman, Mumbai: (IGST @ 12%)

 40 hand shovels @ ₹ 200 per piece
20 spades @ ₹ 150 per spade
Trade Discount @ 10%

July20 Sakeena of Mumbai sold 400 packets of screws @ ₹ 30 per packet to Kareem for
cash. (IGST @ 12%)

July22 Gautam, Mumbai sold to Kareem- (IGST @ 12%)

100 sets of screwdrivers @ ₹ 40 per set
Trade discount of 10%

July27 Ram, Chennai sold 2 office tables to Kareem valuing at ₹ 9,000 each. (IGST @
12%) [6]
Ans In the books of Kareem, Delhi

Purchases Book 2 marks

Date Particulars I. L. Details Cost (₹) Input Input Input Total (₹)
N. F. (₹) CGST SGST (₹) IGST (₹)
(₹)
2022 Gautam, Mumbai
Jul 1 100 sets of
screwdrivers @ ₹
40/ set 4,000
(-) T.D. @ 10% 400
3,600
(+) IGST @ 12% 432
4032 3,600 432
3,600 432 4,032
31 4,032

SALES BOOK – 4 MARKS

 Date Particulars I LF Details Sale Output Output Output Total (₹)
N (₹) Value CGST SGST (₹) IGST (₹)
2022 (₹) (₹)

Jul Sarika, Delhi

10 Hammers 40,000
Axes 80,000
1,20,000
(+) CGST @ 6% 7,200
(+) SGST @ 6% 7,200
1,34,400 1,20,000 7,200 7,200 134,400

Jul Salman, Delhi

18 40 hand shovels
@ ₹ 200/piece 8,000
20 spades @ ₹
150/spade 3,000
11,000
(-) T.D. @ 10% 1,100
9,900
(+) IGST @ 12% 1,188
11,088 9,900 1,188 11,088

31 1,29,900 7,200 7,200 1,188 1,45,488

Q33 Rohit started his business on 1st June 2022 with cash ₹ 50,000 and bank balance ₹
80,000.
The following transactions took place in June 2022:

June 4 Goods purchased from David (CGST and SGST of 3% each) …… ₹ 60,000
June 6 Goods sold for cash (IGST OF 6%)………………………………. ₹ 35,000
June 11 Deposited ₹ 20,000 into bank.
June 15 Sold personal car for ₹ 40,000 and introduced the cash in the business.
June 20 Cheque paid to David.
June 25 Paid life insurance premium of the proprietor…………………… ₹ 3,000
June 30 Goods worth ₹ 10,000 purchased from Tara (at IGST of 6%). Cash paid.

Prepare Cash a/c, David’s a/c and Sales a/c in the books of Rohit. [6]

Ans In the books of Rohit

Dr. Cash A/c 3 marks Cr.

Date Particulars L.F. Amount Date Particulars L.F. Amount (₹)

(₹)
2022 2022
June 1 To Capital a/c 50,000 June11 By Bank a/c 20,000
6 To Sales a/c 35,000 25 By Drawings a/c 3,000
 To Output IGST a/c 2,100 30 By Purchases a/c 10,000
15 To Capital a/c 40,000 By Input IGST a/c 600
30 By balance c/d 93,500
1,27,100 1,27,100
July 1 To balance b/d 93,500

Dr. David’s A/c 2 marks Cr.

Date Particulars L.F. Amount Date Particulars L.F. Amount (₹)
(₹)
2022 2022
20 June To Bank a/c 63,600 4 June By Purchases a/c 60,000
By Input CGST a/c 1,800
By Input SGST a/c 1,800
63,600 63,600

Dr. Sales a/c 1 mark Cr.

Date Particulars L.F. Amount (₹) Date Particulars L.F. Amount (₹)
2022 2022
30June To balance c/d 35,000 6 June By Cash a/c 35,000
35,000 35,000

1July By balance b/d 35,000

Q34 Prove that the accounting equation is satisfied in all the following transactions of Suresh.

(i) Started business with cash ₹ 12,000 and bank balance ₹ 20,000.
(ii) Paid life insurance premium of ₹ 4,000 out of personal cash.
(iii) Purchased goods worth ₹ 10,000 through cheque and 18,000 on credit from
Munish.
(iv) Goods costing ₹ 22,000 sold at a profit of 20% to Ramesh.
(v) Commission of ₹ 1,000 received in advance.
(vi) Goods of ₹ 2,000 withdrawn for personal use. [6]
Ans Accounting Equation of Suresh
S.N. ASSETS (₹) = CAPITAL (₹) + LIABILITIES (₹)
Cash Bank Stock Debtors Creditors Adv
Comm
1 12,000 20,000 - - 32,000 - -
3 - (-)10,000 28,000 - - 18,000 -
4 - - (-) 22,000 26,400 (+) 4,400 - -
5 1,000 - - - - - 1,000
6 - - (-) 2,000 - (-) 2,000 - -
 13,000 10,000 4,000 26,400 34,400 18,000 1,000
(₹) 53,400 = (₹) 53,400
2nd transaction will not be recorded as it is not related to business.