Niraj Jha

Dc chowk & Sector - 16

FULL COURSE TEST

Class 11 - 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 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. If seller receives back the goods sold, he will prepare [1]

a) Debit Note b) Both Credit Note and Debit Note

c) Credit Note d) transfer voucher

2. Assertion (A): Accounting is an art as it involves recording, classifying, summarising business transactions with [1]
a view to ascertain the net profit.
Reason (R): Accounting is a science since it is based on certain specified principles and accounting standards.

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

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

3. Withdrawal of cash from the business by the proprietor is credited to: [1]

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

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

4. The Basic accounting equation is [1]

a) Assets = Expenses + Capital b) Asset = Expense + Income

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

OR
Accounting equation may effect

a) Only one side by increasing / decreasing it b) None

by equal amount

c) Both d) Both side of equation by equal amount

5. Pay-in-slip is a form which is available from a bank having a counterfoil which is returned to the depositor with [1]

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 ________ signature and bank’s stamp as receipt.

a) bank manager's b) Both depositor's and cashier's

c) cashier's d) depositor's
6. Recording, classifying and summarising are also termed as: [1]

a) Both accounting cycle and process of b) Accounting cycle

accounting

c) Bookkeeping d) Process of accounting

OR
Which of the following is not a business transaction?
i. Purchase of goods for resale amounted to ₹ 50,000
ii. Paid salaries and wages amounted to ₹ 10,000
iii. Paid rent for office premises ₹ 5,000
iv. Purchased a LED Television for personal for ₹25,000.

a) Statement (ii) is Correct b) Statement (iv) is Correct

c) Statement (i) is Correct d) Statement (iii) is Correct

7. Creation of reserves: [1]

a) Increases the profits b) Decreases the divisible profits

c) Decreases the profits d) Increases the divisible profits

8. Rule of Debit and Credit for Impersonal account is [1]

a) Dr. the receiver and Cr. the giver b) Dr. all expenses and Cr. all gains & Dr. what
goes out and Cr. what comes in

c) Dr. all expenses and Cr. all gains d) Dr. what goes out and Cr. what comes in
OR
Sale of goods to Rahul for cash is debited to:

a) Rahul A/c b) Sales A/c

c) Stock account d) Cash A/c

9. According to the Convention of Consistency: [1]
a. accounting policies and practices once adopted should be consistently followed.
b. accounting policies and practices adopted may be changed as per the management’s decision.
c. accounting policies and practices once adopted cannot be changed under any circumstances.
d. None of these

a) Statement (d) is correct b) Statement (c) is correct

c) Statement (b) is correct d) Statement (a) is correct

10. Under Accrual Basis of Accounting: [1]

a) only credit transactions are recorded b) none of these

c) only cash transactions are recorded d) both cash and credit transactions are
recorded

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11. Capital Reserve is created: [1]

a) Out of premium received on issue of shares b) Out of profits on sale of fixed assets

c) All of these d) Out of profits on revaluation of fixed assets

12. Intangible Assets do not include: [1]

a) Patents b) Prepaid Expenses

c) Trade Marks d) Stock

13. Total of Purchase Column in Purchase Book is posted to: [1]

a) Purchases A/c - Cr. b) Sales A/c - Cr.

c) Sales A/c - Dr. d) Purchases A/c - Dr.

14. Payment to a creditor means [1]

a) Increase in asset and increase in liability b) Increase in asset and decrease in liability.

c) Decrease in asset and increase in liability. d) Decrease in asset and decrease in liability.
15. Cash, goods or assets invested by the proprietor in the business for earning profit is called: [1]

a) Profit b) Investment

c) Capital d) Fixed assets

OR
Pick the odd one out.

a) Drawings b) Net assets

c) Owner's equity d) Net worth

16. If XYZ Electronics Ltd. purchases 20 TV @ ₹2,000 per piece and 15 tape recorders @ ₹12,500 per piece. There [1]
was a trade discount of 20%. What will be the amount recorded in the purchase book?

a) ₹2,27,500 b) ₹1,87,500

c) ₹40,000 d) ₹1,82,000
17. Provisions are: [1]

a) external transactions b) non economical transaction

c) internal transactions d) Can be external transactions and internal

transactions
18. Give any three points distinguishing between a journal and a ledger? [3]
OR
Fill in the missing information in the following journal entries:
JOURNAL

S. No. Particulars L.F. Amount Dr. Amount Cr.

₹ ₹

(i) ........ Dr. 25,000

To ........ 25,000
(Custom duty paid by cheque on import of new machinery)

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 (ii) Malhotra & Sons Dr. ........

To ........
........
(Goods costing ₹ 50,000 sold above 10%; less 10% trade discount)

(iii) ........ Dr. 46,000

........ Dr. ........

To ........
........
(Cash received from Govind and discount allowed @ 8%)

(iv) ........ Dr. ........

To ........
........
(Interest charged on capital of ₹ 20,00,000 @ 9 % p.a)

(v) ........ Dr. ........

To Bank A/c
........
(Machinery purchased for ₹ 40,000 and spent ₹ 10,000 on its installation)

19. M/s Yadav Bros., a dealer in computer hardware, has received an order for 10 computers along with an advance [3]
of ₹ 50,000. The firm maintains its accounts on Accrual Basis of Accounting. Should the amount received, i.e., ₹
50,000 be credited to the Sales Account or to the Advance Received Account? Give reasons for your answer.
OR
Explain in brief going concern assumption.
20. Explain the following terms with examples: [3]
a. Capital Expenditure
b. Non-Current Assets
21. Redraft correctly the Trial Balance given below: [4]

Debit Balances ₹ Credit Balances ₹

Capital 8,000 Debtors 7,580

Bad Debts Recovered 250 Bank Deposits 2,750

Creditors 1,250 Discount Allowed 40

Returns Outward 350 Drawings 600

Bank Overdraft 1,570 Returns Inward 450

Rent 360 Sales 13,690

Salaries 850 Miscellaneous Payables 1,350

Trade Expenses 300 Grant Received 1,000

Cash in Hand 210

Opening Stock 2,450

Purchases 11,870

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 27,460 27,460

22. Enter the following transactions of M/S Rama Prasad in Cash Book: [4]

Date Particulars Amount (Rs)

Dec. 01 Cash-in-hand 4,000

Bank Overdraft 1,000

Dec. 03 Received a cheque from Ramlal on account Rs 290 and allowed him discount Rs 40

Dec. 07 Ranlal's cheque deposited in Bank

Dec. 10 Withdrew from bank for office use 800

Dec. 12 Paid bill payable by cheque 600

Dec. 15 Cheque received from Chandulal of Rs 400 and allowed him discount Rs 100

Dec. 20 Issued a cheque for petty cash 100

23. Prepare Bank Reconciliation Statement as on 31st January, 2023, if Cash Book of Mr. Suraj showed a credit [4]
balance of ₹ 20,100.
i. The bank had paid fire insurance premium of ₹ 550 which does not appear in the Cash Book.
ii. Cheques for ₹ 25,000 issued during January, but cheques for only ₹ 18,500 were presented for payment.
iii. Interest collected by bank ₹ 740.
iv. Cheques of ₹ 8,700 were deposited into bank, but cheques for ₹ 7,000 were cleared till 31st January, 2023.
v. A customer deposited ₹ 620 directly into bank without informing Mr. Suraj.
OR
On 31st December, 2022, passbook shows a debit balance (overdraft) of ₹ 10,000. From the following particulars,
prepare a Bank Reconciliation Statement:-
i. Cheques amounting to ₹ 8,000 drawn on 25th December, of which cheques of ₹ 3,000 were cashed within 31st
December.
ii. Cheques paid in for collection amounted to ₹ 50,000 but cheques of ₹ 22,800 were credited on 2nd January, 2023.
iii. Items unticked in the passbook are:-
a. Incidental charges ₹ 25.
b. Dividend collected by bank on our behalf ₹ 350.
iv. A cheque for ₹ 600 debited in the cash book omitted to be banked.
v. A cheque of ₹ 750 banked and credited, but omitted to be recorded in the Cash Book.
24. Journalise the following transactions: [6]

2023

April
Received an order for goods for ₹ 1,20,000 from M/s Ram & Sons.
1

April Received order for goods from M/s Shekhar & Co. of ₹ 5,00,000 along with a cheque for ₹ 1,80,000 as
3 advance.

April Placed order for goods with M/s Gupta & Sons of ₹ 2,50,000; paid them ₹ 1,00,000 by cheque in
5 advance.

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 April Gupta & Sons supplied goods of ₹ 2,50,000.
7

April
Paid a cheque for 60% of the balance amount due to Gupta & Sons on the account.
10

April
Goods for ₹ 20,000 and furniture of the book value of 10,000 destroyed by fire.
15

April
Goods costing ₹ 50,000 were damaged in transit; a claim was made on railway authorities for the same.
20

April Received from Salesman ₹ 60,000 for goods sold by him after deducting his travelling expenses ₹
22 4,000.

April Sold goods to Vishesh costing ₹ 40,000 at a profit of 25% and allowed him 10% trade discount and paid
25 for cartage ₹ 1,000 to be charged from him.

April Received a cheque of ₹ 40,000 from the railway authorities in full settlement of a claim for damages in
28 transit.

OR

Pass Journal entries for the following adjustment on 31st March, 2023:
i. Interest due but not received ₹ 10,000.
ii. Salaries due to staff ₹ 50,000.
iii. Out of the rent paid this year, ₹ 5,000 is for the next year.
iv. Provide 10% depreciation on Furniture costing ₹ 1,00,000
v. Goods used in making Furniture (Sales Price ₹ 5,000; Cost ₹ 4,000).
vi. Received commission of ₹ 20,000 by cheque, half of which is in advance.
vii. Allow interest on capital ₹ 8,000
viii. Charge interest on drawings ₹ 1,500.
25. Rectify the following errors: [6]
i. Sold old furniture of A for ₹ 11,500 was passed through the Sales Book.
ii. Credit purchases of ₹ 12,000 from Ashely omitted to be recorded in the books.
iii. Repair made were debited to Building Account ₹ 7,000.
iv. Credit Sale of ₹ 1,800 to Anshika was recorded as ₹ 8,100.
v. ₹ 6,000 paid for office furniture was debited to the office expense account.
vi. A credit sale of goods ₹ 15,000 to Rajesh has been wrongly passed through the Purchases Book.
OR
Give the journal entries to rectify the following error using suspense account, where necessary
i. Goods of the value of ₹ 2,000 returned by Mr. Verma were entered in the sales book and posted therefrom to the
credit of his account.
ii. Goods worth ₹ 1,500 bought by the proprietor for his personal use without any payment being made as yet, was
wrongly entered in the purchases book.
iii. A Cheque for ₹ 500 received from Abhi was dishonoured and has been posted to the debit of sales return account.
iv. The Total of one page of the sales book was carried forward to the next page in ₹ 680 instead of ₹ 860.

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 v. An item of ₹ 500 relating to prepaid insurance account was omitted to be brought forward from the pervious
year's books.
26. On 1st January, 2010 A Ltd company purchased machinery for Rs.20,00,000. Depreciation is provided @ 15% [6]
per annum on diminishing balance method. On 1st March, 2012 1/4 of machinery was damaged by fire and
Rs.40,000 were received from the insurance company in full settlement. On 1st September, 2012 another
machinery was purchased by the company for Rs.15,00,000.
Write up the machinery account from 2012 to 2013. Books are closed on 31st December, every year.
OR
A company purchased a machine for ₹ 50,000 on 1st October 2020. Another machinery costing ₹ 10,000 was

purchased on 1st December 2021. On 31st March 2023, the machinery purchased in 2020 was sold at a loss of ₹
5,000. The company charges depreciation at the rate of 15% p.a. on Diminishing Balance Method. Accounts are
closed on 31st March every year. Prepare Machinery Account for 3 years.
Part B
27. Calculate Closing capital from the following information: Profit: Rs.900, Opening capital-Rs.8,000, Withdrawn- [1]
Rs.1,200, Fresh capital-Rs.1,000

a) Rs.8,700 b) Rs.7,900

c) Rs.8,200 d) Rs.7,700
OR
Calculate Opening capital from the following information: Profit: Rs.500, Closing capital- Rs.3,000, Withdrawn-
Rs.600, Fresh capital- Rs.400

a) Rs.3,200 b) Rs.2,300

c) Rs.2,700 d) Rs.2,500
28. Closing Stock appearing in the Trial Balance is shown: [1]

a) On the Liability side of the Balance Sheet b) On the Cr. side of Trading A/c

c) On the Assets side of the Balance Sheet d) On the Dr. side of Trading A/c
29. Calculate interest on loan of Rs. 2000 taken on 1st May 2010 at 18 % If account are closed on 31st December [1]

a) Rs.210 b) Rs.250

c) Rs.230 d) Rs.240
OR
Indirect Expenses are transferred to

a) Trading Account b) Trading Account and Balance Sheet

c) Balance Sheet d) Profit & Loss Account

30. Ascertain Gross Profit from the following information : [3]

(₹)

Opening Stock 3,00,000

Closing Stock 2,80,000

Purchases 8,50,000

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 Carriage on Purchases 23,000

Carriage on Sales 30,000

Office Rent 58,000

Sales 14,07,000

31. Calculate Net Sales and G.P. from the following: Cost of Goods Sold ₹ 4,50,000, G.P. 25% on Sales. [3]
32. From the following information, prepare Trading A/c for the year ended 31st March 2018: [3]

Rs.

Stock (as on 1.4.2017) 40,000

Purchases 4,00,000

Sales 3,80,000

Carriage inwards 20,000

Returns outward 80,000

Wages and salaries 50,000

Returns inward 20,000

Stock (31.3.2018 1,30,000

Note - Net Realisable value (Market value) of stock as on 31.3.2018 was Rs.1,20,000
33. Jatin keeps books under single entry system. His assets and liabilities were as under [6]

Items 31st March, 2012(Rs) 31st March, 2013(Rs)

Cash 2,000 1800

Sundry debtors 78,000 90,000

Stock 68,000 64,000

Plant and machinery 1,20,000 1,60,000

Sundry creditors 30,000 29,800

Bills payable — 10,000

During 2012-13, he introduced Rs 20,000 as new capital. He withdrew Rs 6,000 every month for his household
expenses. Ascertain his profit for the year ended 31st March, 2013.
OR
Sheetal maintains her books of accounts from Incomplete Records. Her books provide the following information:

1-4-2022 (₹) 31-3-2023 (₹)

Cash 12,000 16,000

Bill receivable ____ 24,000

Debtors 1,68,000 2,72,000

Stock 2,24,000 2,44,000

Investment ____ 80,000

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 Furniture 75,000 80,000

Creditors 1,40,000 1,52,000

She withdrew ₹ 1,000 per week for personal expenses. She sold her investments of ₹ 1,60,000 at 2% premium and
introduced that amount into the business.
You are required to prepare a statement of profit or loss for the year ending March 31, 2023.
34. Prepare a trading and profit & loss account of M/s Red Club Ltd. for the year and a Balance Sheet as at that date [6]
from the following figures taken from their trial balance:

Amount Amount
Debit Balances Credit Balances
(₹) (₹)

Opening Stock 1,25,000 Sales 2,50,000

Purchases 35,000 Purchase Return 6,000

Return inward 25,000 Creditors 55,000

Postage 600 Capital 50,000

Salary 12,300 Discount received 1,000

Wages 3,000 Provision for bad debts 4,500

Rent and rates 1,000 Commission received 5,400

Packing and transport 500

General expenses 400

Insurance 4,000

Debtors 50,000

Cash in hand 20,000

Closing Stock 40,000

Machinery 20,000

Lighting 5,000

Discount 3,500

Bad debts 3,500

Investments 23,100

3,71,900 3,71,900

Adjustments:
i. Depreciation charged on Machinery @ 5% p.a.
ii. Further Bad-debts ₹ 1,500, provision for discount on debtors @ 5% and Provision for Doubtful Debts on
debtors @ 6%.
iii. Wages prepaid ₹ 1,000.
iv. Interest on investments @ 5% p.a.
OR

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Prepare trading and profit and loss account for the year ended 31st March, 2013 and a balance sheet as on that date
from the following trial balance.

Name of Accounts Amt (Rs) Name of Accounts Amt (Rs)

Stock on 1st April, 2012 16,000 Sales less returns 1,10,000

Purchases less returns 38,000 Sundry creditors 15,000

P Kumar 1,500 Capital 33,900

Wages 7,700 Mortgage and interest to Date 7,800

Carriage inwards 1,300 Rent Outstanding 500

Carriage Outwards 750

Salaries 20,000

Advertisements 4,500

Trade Expenses 2,400

Rent 6,000

Establishment 2,700

Stable Expenses 1,050

Mortgage interest 300

Sundry Debtors 20,000

Cash in hand 1,250

Machinery 43,750

1,67,200 1,67,200

Additional Adjustments
i. Closing stock was Rs 23,000.
ii. Provision for doubtful debts be created on sundry debtors @ 5% and a provision for discount on sundry debtors at
2%.
iii. Salary of Rs 1,500 paid to SP Kumar an employee of the firm, stand debited to his personal account and it is to be
corrected.
iv. A stationery bill for Rs 100 remains unpaid and unrecorded.
v. Written-off one-third of advertisement expenses.
vi. Sundry creditors include Rs 5,000 loan taken from Mr Sudhir on 1st September, 2012 bearing interest @ 12% per
annum.

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