New Age Public School
Exam rehearsal test
Class -XI
Subject- Economics
FM- Time-
Section A
Answer the following questions
1.According to accrual basis of accounting, expenses are recorded
(a) on payment. (b) on prepayment. (c) on being incurred. (d) None of these.
2.Under which basis of accounting accrued incomes are adjusted?
(a) Cash basis of accounting
(b) Accrual basis of accounting
(c) Both (a) and (b)
(d) none of these
3. Business transactions are recorded
(a) in chronological order on daily basis.
(b) in chronological order on weekly basis.
(c) in chronological order at the end of the month.
(d) in the order as the proprietor decides.
4.In a compound Journal entry
(a) one or more accounts are debited and credited.
(b) one account is debited and one account is credited.
(c) one account is debited and credited but narration is not given.
(d) one or more accounts are debited and credited but narration is not given.
5.Ledger is a book in which
(a) Real and Nominal Accounts are maintained.
(b) Real and Personal Accounts are maintained.
(c) Real, Personal and Nominal Accounts are maintained.
(d) None of the above.
6.Which Basis of Accounting does not follow the matching principle of accounting?
(a) Accrual. (b) Cash. (c) both a & b. (d) none of these
7.Under accrual basis of accounting, incomes are recorded when they are
(a) Received. (b) Earned. (c) Earned as well as received. (d) None of these.
8.If a cheque is returned dishonoured, it is recorded in
(a) Cash column on the credit side. (b) Cash column on the debit side.
(c) Bank column on the credit side. (d) Bank column on the debit side.
9.If Deepak has sold goods for cash, the entry will be recorded in the
(a) Cash Book. (b) Sales Book. (c) Proper Journal. (d) Ledger.
10. Petty Cash is used for meeting
(a) major revenue expenses.
(b) minor revenue expenses.
(c) capital expenditures.
(d) minor revenue and capital expenditures.
11. Imprest System saves time of the
(a) Main Cashier.
(b) Petty Cashier.
(c) Accountant.
(d) Management.
12.Which of the following transaction is related to goods?
(a) Purchase of asset on credit. (b) Purchase of asset for cash. (c) Sale of an asset.
(d) Purchase of Raw Material.
13.Out of the following, which is drawings?
(a) Payment of employees' wages.
(b) Payment to creditors.
(c) Purchase of gift for wife's birthday.
(d) Purchase of asset.
14.Which of the following transaction is not of financial character?
(a) Purchase of asset on credit
(b) Purchase of asset for cash
(d) Withdrawal by proprietor
(d) Strike by employees
15.
Section B
Answer the following questions
1. Show the effect of the following transactions on assets, liabilities and capital using the
Accounting Equation. Also prepare a Balance Sheet.
Started with cash 60,000
Rent received. 2000
Accrued interest. 500
received in advance. 1000
Amount withdrawn. 5000
2. On which side increase in the following accounts will be transferred (posted)? Also, state the
nature of the account on the basis of Modern Classification of Accounts:
(1) Machinery A/c (ii) Creditor's A/c (iii) Amit's Capital A/c (iv) Sales A/c (v) Carriage Outwards
A/c (vi) Cash A/c (vii) Debtor's A/c (viii) Rent A/c (ix) Interest Payable A/c (x) Bills Payable A/c
3.Pass the Opening Entry on 1st April, 2023 on the basis of the following information taken from
the books of Vijay. Also, post the opening entry.
Cash in Hand. 20000
Sundry Debtors 60000
Stock of Goods. 40000
Plant. 50000
Land and Building 100000
Sundry Creditors. 100000
4.
Section C
Answer the following questions
1. From the following information, prepare Bank Reconciliation Statement as on 31st March,
2023;
(i) Debit Balance of Bank Column as per Cash Book as on 31st March, 2023 12,000.
(ii) Balance (Credit) as per Bank Statement as on that date* 16,500.
(iii) Out of the total cheques issued of 7,000, cheques of * 4,000 were debited on 5th April
2023 and the remaining have not been presented yet.
(iv) Cheques deposited of 3,500 were credited on 4th April, 2023.
(v) Bank had debited 100 as bank charges and had collected 200 as interest on investments.
(vi) A cheque issued to S Ltd. for 3,400 was recorded in the Cash Book as ₹4,300.
2.Himmat & Co. purchased a machine on 1st April, 2020 for 4,82,000 and incurred* 18,000 on its
installation. Estimated useful life of the machine is 10 years and its scrap value at the end of its
estimated useful life is 50,000. The books of account are closed on 31st March, every year.
Prepare the Machinery Account for first three years charging depreciation by Straight Line
Method.
3.
