SAMPLE QUESTION PAPER - 4

Accountancy (055)
Class XI (2024-25)

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 B.
3. Question 1 to 17 and 27 to 29 carries 1 mark each.
4. Questions 18 to 20 and 30 to 32 carries 3 marks each.
5. Questions from 21 to 23 carries 4 marks each.
6. Questions from 24 to 26, 33 and 34 carries 6 marks each.
Part A
1. Each cheque has a counterfoil in which the same details as entered in the cheque [1]
are filled. The counterfoil remains with the ________ for future purposes.

a) cashier b) bank

c) account holder d) Both cashier and account

holder

2. Assertion (A): If Cash = ₹20,000, Machinery = ₹30,000, Stock = ₹10,000, [1]

Creditors = ₹40,000, then the net worth of the firm is ₹20,000.
Reason (R): Capital = Liabilities - Assets.

a) Both A and R are true and R is b) Both A and R are true but R is
the correct explanation of A. not the correct explanation of
A.

c) A is true but R is false. d) A is false but R is true.

3. Which of the following accounts has a credit balance? [1]

a) Discount Allowed b) Discount Received

c) Carriage Inward d) Carriage Outward

4. Following are the steps involved in developing an accounting equation (in [1]
particular order). Arrange the steps in correct sequence.
 i. Find out the effect (in terms of increase or decrease) of a transaction on assets,
capitals or liabilities.
ii. Show the effect on appropriate side of an equation and ensure that the total of
right hand side is equal to the total of left hand side.
iii. Ascertain the variables (i.e. assets, liabilities or capital) involved in a transaction.

a) (iii), (i), (ii) b) (iii), (ii), (i)

c) (ii), (iii), (i) d) (i), (ii). (iii)

OR
Which equation is incorrect out of the following:

a) Liabilities = Assets - Capital b) Assets = Liabilities - Capital

c) Assets = Liabilities + Capital d) Capital = Assets - Liabilities

5. When a trader sells goods on credit, he prepares a sale ________ which contains [1]
the name of the party to whom goods are sold, the rate, quantity and the total
amount of sale.

a) both bill and invoice b) bill

c) memo d) invoice

6. Cost of Goods Manufactured is determined by: [1]

a) Cost Accounting b) Human Resource Accounting

c) Financial Accounting d) Management Accounting

OR
Book Keeping and Accounting:
i. means the same and are used interchangeably.
ii. does not mean the same and are not used interchangeably.
iii. means both (i) and (ii).
iv. None of these.

a) Statement (i) is correct b) Statement (iv) is correct

 c) Both statement (i) and (ii) is d) Statement (ii) is correct
correct

7. Profit on sale of fixed asset is used to create: [1]

a) Capital Reserve b) Specific Reserve

c) Reserve Capital d) General Reserve

8. Debit mean [1]

a) a decrease in asset b) an increase in the proprietor’s

equity

c) an increase in asset d) an increase in liability

OR
Withdrawal of cash from the business by the proprietor is credited to:

a) Drawing A/c b) Profit and Loss A/c

c) Capital A/c d) Cash A/c

9. Income is measured on the basis of: [1]

a) Consistency Concept b) Cost Concept

c) revenue recognition d) Matching Concept

10. Recognition of cost in the same period as associated revenues is called ________. [1]

a) Dual aspect principle b) Cost principle

c) Matching principle d) Full disclosure principle

11. Reserves are important because they help in: [1]

A. meeting the future contingencies
B. strengthening the financial position of the business
C. redemption of liabilities like debenture

a) (A) b) All of these

c) (B) d) (C)
12. Current Liabilities do not include [1]

a) Bills Payable b) Prepaid Insurance

c) Outstanding Salaries d) Sundry Creditors

13. In which book credit sales of goods are recorded [1]

a) Purchase Book b) Purchase Return Book

c) Sales Return book d) Sales Book

14. If the total liabilities of a business decrease by Rs.5000 what will be the effect on [1]
total asset? (assuming the amount of capital remain same)

a) Increase by Rs.5000 b) Increase by Rs.10000

c) Decrease by Rs.5000 d) Remain constant

15. The nature of accrued income is: [1]

a) asset b) revenue

c) expenses d) liability

OR
The nature of capital is

a) an income b) a liability

c) an expense d) an asset

16. The source document for recording entries in the sales return book is generally the [1]
________.

a) debit note b) credit note

c) Transfer voucher d) trial balance

17. ________ is a reserve which does not appear in the balance sheet. [1]

a) Specific reserve b) Secret reserve

c) Capital reserve d) General reserve

18. What do you mean by posting? [3]

OR
Exe Co. has purchased 50 computers from HCL and is allowed a discount of ₹10,000
for purchase thereof. Is the discount allowed Trade Discount or a Cash Discount? How
will you record it in the books of account?

19. Explain any three points highlighting the utility of accounting standards. [3]

OR
Give two advantages of GST.

20. Distinguish between expenses and expenditure. [3]

21. The following are the balances extracted from the books of Amit. Prepare a Trial [4]
Balance as on 31st March, 2023:
₹ ₹
Cash 2,000 Sundry Creditors 40,000
Capital 80,000 Investment 8,000
Purchases 85,000 Plant and Machinery 15,000
Sales 1,08,400 Building 20,000
Purchases Return 6,000 Furniture 6,000
Sales Return 4,000 Electricity 700
Transportation 1,800 Postage 400
Discount Allowed 500 Drawings 8,000
Printing 5,000 Salaries 6,000
Sundry Debtors 70,000 Travelling Expenses 2,000
Input CGST A/c 2,500 Output CGST A/c 1,500
Input SGST A/c 2,500 Output SGST A/c 1,500
Input IGST A/c 4,000 Output IGST A/c 6,000

22. Enter the following transaction in a two column cash book [4]
2013 Amt (Rs.)
Feb 1 Cash in hand 75,000
Feb 5 Paid to Kartik 15,000
 Discount allowed by Kartik 500
Feb 8 Goods purchased 20,000
Feb 10 Received from Parth 49,000
Discount allowed to Parth 1,000
Feb 16 Goods sold 20,000
Feb 21 Paid to Aroha 14,750
Discount allowed by him 250
Feb 28 Paid wages for the month 25,000
Paid in full settlement of Rs. 20,000 to Amit 19,500

23. The cash book shows a bank balance of ₹ 7,800. On comparing the cash book with [4]
the passbook the following discrepancies were noted:
i. Cheque deposited in bank but not credited ₹ 3,000
ii. Cheque issued but not yet present for payment ₹ 1,500
iii. An insurance premium paid by the bank ₹ 2,000
iv. Bank interest credit by the bank ₹ 400
v. Bank charges ₹ 100
vi. Directly deposited by a customer ₹ 4,000

OR
Govind maintains his Current Account with HDFC Bank. On 31st March, 2023, the
bank column of Cash Book showed an overdraft of ₹ 42,000 in his Current Account.
From the following particulars, prepare Bank Reconciliation Statement as on 31st
March, 2023:
i. A cheque of ₹ 1,040 deposited was dishonoured and bank charges debited in the Pass
Book were ₹ 110. It was not recorded in the Cash Book.
ii. Out of the total cheques of ₹ 1,00,000 issued, cheques aggregating ₹ 30,000 were
debited in March, cheques aggregating ₹ 40,000 were debited in April, and the rest
have not yet been debited.
iii. Payments side of the Cash Book is undercast by ₹ 3,000.
iv. A cheque of ₹ 4,000 received from Om on 20th March, 2023 was recorded in the
discount column of the Cash Book and was not banked.
 v. ₹ 80 for bank charges were recorded two times in the Cash Book whereas bank
levied annual charges of ₹ 70, which were not recorded in the Cash Book.

24. Enter the following transactions in the Journal of Govind: [6]

2023 ₹
June 1 Govind invested capital in cash 1,00,000
June 3 Purchased goods from Harsh 10,000
June 5 Purchased goods for cash 8,000
June 8 Purchased goods from Manoj for cash 7,000
June 10 Sold goods to Kunal on credit. 2,000
June 12 Sold goods to Neeraj for cash 1,500
June 14 Goods returned by Kunal 500
June 16 Goods returned to Harsh 360
June 18 Machinery purchased from Sonu 8,000
June 19 Paid to Harsh on account 5,000
June 25 Cash withdrawn for Personal use 5,000
June 30 Old newspapers sold 200
June 30 Received loan from Manish and deposited in bank 50,000

OR
Following transactions of Ramesh for April, 2018 are given below. Journalise them.
2018 Rs.
Apr 1 Ramesh started business with cash 1,00,000
Apr 2 Paid into bank 20,000
Apr 3 Bought goods for cash 50,000
Apr 4 Drew cash from bank for office use 10,000
Apr 13 Sold goods in Krishna on credit 15,000
Apr 20 Bought goods from Shyan on credit 22,500
Apr 24 Received from Krishna 12,500
Allowed him discount 500
Apr 28 Paid cash to Shyam 21,500
 Discount received 1,000
Apr 28 Krishna returned goods 2,000
Apr 30 Cash sales for the month 80,000
Apr 30 Paid rent 5,000
Apr 30 Paid salary 10,000

25. Rectify the following errors identified in the books of Goel. The Trial Balance did [6]
not match, ₹ 14,930 being excess credit. The difference was placed in Suspense
Account:
i. An amount of ₹ 100 was received from Das on 31st March, 2023 but was
entered in the Cash Book on 4th April, 2023.
ii. Returns Inward Book for March was short casted by ₹ 1,000.
iii. Purchase of an office table for ₹ 3,000 was passed through the Purchases Book.
iv. ₹ 3,750 paid for wages to workmen for making showcases was charged to the
Wages Account.
v. Purchase of ₹ 670 was posted to Creditor’s Account as ₹ 600.
vi. A cheque for ₹ 200 received from Kuldeep was dishonoured and was debited to
the ‘Printing and Stationery Account’.
vii. ₹ 10,000 paid for purchase of a motorcycle was debited to ‘Miscellaneous
Expenses Account’.
viii. An amount of ₹ 10,000 owed by Danish was omitted from Sundry Debtors.
ix. Daman paid ₹ 6,700 but her account was wrongly credited with ₹ 10,700.

OR
A Book-keeper finds that the totals of his trial balance disagree by ₹ 2,800. He
temporarily debits a Suspense Account with this amount and closes the books. On an
examination of the books, the following errors are discovered:
i. The total of Purchase Return Book ₹ 710 was posted Twice.
ii. Goods costing ₹ 800 were distributed as free samples but no entry was passed in the
books.
iii. Purchase of Machinery for ₹ 5,600 on credit was recorded in Purchase Book as ₹
6,500.
iv. Cash Sales to Roshan Gupta for ₹ 1,200 were recorded in Cash Book as well as in
Sales Book and were posted from both.
 v. Closing Stock has been overvalued by ₹ 1,500.
vi. Sales Return Book was untotalled, though personal accounts were posted ₹ 1,580.
vii. No entries have been made in the Cash Book for the Insurance Premium directly paid
by bank ₹ 700 and interest charged on overdraft ₹ 320.
viii. A sum of ₹ 200 for Drawings on the Credit Side of Cash Book was not posted to the
Drawings account.
Pass entries to rectify the above errors. Close the Suspense Account already opened.

26. On 1st July, 2020, X Ltd. purchased a machinery for ₹ 15,00,000. Depreciation is [6]
provided @ 20% p.a. on the original cost of the machinery and books are closed on
31st March each year. On 31st May, 2022, a part of this machine purchased on 1st
July 2020 for ₹ 3,60,000 was sold for ₹ 2,40,000 and on the same date new
machinery was purchased for ₹ 4,20,000. You are required to prepare:
a. Machinery Account,
b. Provision for Depreciation Account, and
c. Machinery Disposal Account

OR
On 1st October 2014, Bansal Pvt. Ltd. purchased machinery for Rs 12,00,000. On 31st
May, 2016, a part of the machinery purchased on 1st October 2014 for Rs 1,60,000 was
sold for Rs 60,000. On the same date, fresh machinery was purchased for Rs 3,00,000.
Depreciation is provided at 20% per annum on the written down value method and the
books are closed on 31st March each year. You are required to prepare (a) Machinery
Account, (b) Provision for Depreciation Account, and (c) Machinery Disposal Account.

Part B
27. Single Entry System of book keeping is: [1]

a) Inaccurate b) Unscientific

c) Unsystematic d) All of these

OR
Commission received in advance is to be shown in statement of affairs on

a) Liabilities side b) Total assets

c) Total liabilities d) Cash balance

28. Drawings account is a: [1]

a) Personal Account b) Company drawing account

c) Nominal Account d) Real Account

29. In the Trial Balance are shown Debtors ₹ 2,400, Bad Debts ₹ 221, Bad Debts [1]
Provision ₹ 324. For creating a Provision for Doubtful debts @ 10% on debtors, the
P & L A/c will be debited by:

a) 240 b) 9

c) 137 d) 343

OR
Balance of Provision for Doubtful Debts (As on 1st April, 2023); ₹ 1,250; Bad Debts
during the year were: ₹ 300. Provision for Doubtful Debts is required @ 5% on debtors
of ₹ 10,000. Provision for Doubtful Debts credited to Profit & Loss Account will be

a) ₹ 400 b) ₹ 600

c) ₹ 500 d) ₹ 450

30. In a burglary at the godown of Sunshine Traders on the night of 14th July, 2023, [3]
part of the stock was stolen.
From the following particulars, find out the estimated value of loss of stock by
theft:
₹
Stock on 1st April, 2023 60,000
Purchases from 1st April to 14th July, 2023 4,10,000
Sales from 1st April to 14th July, 2023 6,00,000
Stock remaining after a burglary 12,000
The normal rate of gross profit for his business is 30% of the selling price.

31. Calculate the amount of Gross Profit when the net loss is ₹ 75,000, Operating [3]
Expenses are ₹ 1,20,000 and Sales are ₹ 3,00,000.

32. Give the adjustment entry and accounting treatment of the following items while [3]
preparing financial statements:
i. Outstanding Salaries
 ii. Accrued Interest

33. Mr. Muneesh maintains his books of accounts from incomplete records. His books [6]
provide the information:
April. 01, 2016 (₹) March. 31, 2017 (₹)
Cash 1,200 1,600
Bills receivable - 2,400
Debtors 16,800 27,200
Stock 22,400 24,400
Investment - 8,000
Furniture 7,500 8,000
Creditors 14,000 15,200
He withdrew ₹ 300 per month for personal expenses. He sold his investment of ₹
16,000 at 2% premium and introduced that amount into business.

OR
What is meant by single entry system of accounts and give any three salient features.

34. The following Trial Balance has been extracted from the books of Shri Sanjay [6]
Kumar as at 31st March, 2023:
Dr. ₹ Cr. ₹
Plant and Machinery 1,00,000
Furniture 12,000
Capital Account 1,91,000
Household Expenses 16,000
Sales 4,68,000
Loose Tools 20,000
Goodwill 10,000
Opening Stock (1-4-2022) 20,000
Returns Outward 4,000
Discount 6,000
Purchases 2,12,000
 Returns Inwards 8,000
Wages 1,00,000
Salaries 60,000
Outstanding Salaries 5,000
Investments at 10% p.a. 6,000
Interest on Investments 300
Sundry Creditors 24,000
Miscellaneous Receipts 2,000
Carriage Inwards 12,000
General Expenses and Insurance 39,000
Advertisement Expenses 15,000
Postage 4,000
Sundry Debtors 56,000
B. Bhuwan 2,000
Cash Balance 14,000
Bank 3,200
Suspense Account 2,500
7,06,000 7,06,000
The following additional information is available:-
st
i. Stock on 31 March, 2023 was ₹ 30,800.
ii. Depreciation is to be charged on Plant and Machinery at 5% and Furniture at
6%. Loose Tools are revalued at ₹ 16,000.
iii. Create a provision of 2% for Discount on Debtors.
iv. Salary of ₹ 2,000 paid to Shri B. Bhuwan, a temporary employee, stands debited
to his personal account and it is to be corrected.
v. Write off th of advertisement expenses.
1

You are to prepare Trading and Profit & Loss Account for the year ended 31st
March, 2023 and a Balance Sheet as at that date.

OR
From the following trial balance, prepare the trading and profit and loss account for the
year ended 31st March, 2013 and the balance sheet as at that date.
Name of Accounts Amt(Rs) Name of Accounts Amt(Rs)
Salaries 20,446 Sales 1,32,840
Bills receivable 12,754 Capital 1,00,000
Investments 80,000 Provision for doubtful debts 5,000
Furniture 24,000 10% Loan (1st October, 2012) 20,000
Opening stock 9,000 Discount received 800
Purchases 60,000 Sundry creditors 18,600
Sundry debtors 40,000 Bills payable 10,000
Interest on loan 800 Outstanding salaries 1,000
Insurance premium 1,800 Bad debts recovered 400
Wages 9,200 Interest on investments 4,000
Rent 3,040 Trading commission 14,000
Bad debts 2,400
Carriage Outwards 1,200
Cash at Bank 20,000
Depreciation of furniture 5,000
Accrued commission 2,000
Advertisement 15,000
3,06,640 3,06,640
Additional Information
i. Closing stock Rs 12,000.
ii. Goods costing Rs 2,000 were distributed as free samples while goods costing Rs
1,000 were taken by the proprietor for personal use.
iii. A credit sale of Rs 4,000 was not recorded in the sales book.
iv. Closing stock included goods costing Rs 2,000 which were sold and recorded as
sales but not delivered to the customer.
v. Maintain provision for doubtful debts @ 5%.