INDIAN SCHOOL MUSCAT

CLASS: 11
HALF YEARLY EXAMINATION
ACCOUNTANCY (055)
SET - B

1. Which of the following is not a business transaction?

a) Purchase of goods for resale amounted to ₹.50,000
b) Paid salaries and wages amounted to ₹.10,000
c) Paid rent for office premises ₹.5,000 1
d) Purchased a LCD for personal use.
Ans: d

2. Match the following:

A B
1 Bank loan A Fictitious assets
2 Copyright B Current Liabilities
3 Bills Payable C Intangible fixed assets 1
4 Advertisement suspense D Long term liabilities

Ans: 1-d ; 2- c ; 3- b ; 4- a

3. Accounting information must be presented in such a way that only accounting people understands it.
State true or false with a reason.
Ans. False: it must be presented in a simple and logical manner that they are understood easily by 1
the users.

4. A firm has received a large order to supply goods. Will it be recorded in the books of account of the
firm? Give reason.
1
Ans: No. it will not be recorded as it is not a transaction.

5. Which is the last step of accounting as a process of information?

a) Recording b) Preparation of financial statements.
c) Communication of information d) Analysis and interpretation of information. 1
Ans: c

6. A person who owes money to the firm against goods sold is called a __________
Ans: Debtor 1

7. Under which convention is sale recognized on the basis of Cash Memo or Invoice.
Ans: Verifiable Evidence Objective. 1

8. “Stock is valued at Cost or Net realizable value whichever is lower”. State whether the statement is
true or false.
1
Ans: True

9. IFRS are based on:

a) Historical cost b) Fair value 1
c) Both historical cost and fair value d) None of these
 Ans: b

10 Sales is recognized as revenue

a) When the contract for sale is entered into.
.
b) At the point of sale or performance of service.
c) After the expiry of credit period allowed to debtors. 1
d) After the money collected from the customers.
Ans: b

11 State the accounting concept/ convention involved when purchase of pen is treated as expense. 1
Ans: Materiality concept.
.

12 State one difference between Cash bases and Accrual bases of accounting on the basis of Suitability 1
Basis Cash bases Accrual bases
.
Suitability Suitable for NPO and Suitable for businessess
professionals such as CA,
Lawyers etc

13 Cash Memo is a source voucher for ________ purchaser of goods. 1

Ans. Cash
.

14 Accrual Bases of accounting recognizes 1

a) Outstanding and Prepaid expenses
.
b) accrued incomes and Income received in advance
c) Both (a) and (b)
d) None of the above
Ans: c

15 What is an Invoice? 1
Ans. Invoice is source document prepared by the seller of goods on credit.
.

16 Mohan’s bank reconciliation statement shows cheques deposited but not credited by bank of ₹.3,800 1
and cheques issued but not presented by suppliers of ₹.3,500. His bank balance as per Cash Book is
.
₹.25,000. Balance as per pass book statement is
a) ₹.25,000 b) ₹.24,700
c) ₹.25,300 d) ₹.32,300
Ans: b

17 Define a cheque. 1
Ans: It is written document drawn upon a specified banker and payable on demand.
.

18 The term amortization is used to write off __________ 1

a) Fixed Assets b) Intangible Assets
.
c) Tangible Assets d) Wasting Assets
Ans: b

19 State two errors committed in Cash Book which are considered while preparing Bank Reconciliation 1
Statement.
.
Ans: a) Overcasting or undercasting of bank column of the Cash Book.
 b) Wrong amount recorded in bank column of Cash Book.

20 The loss on sale of an asset is debited to _______ 1

Ans: Profit & loss a/c
.

22 Explain the following: 3

a) Historical cost principle
.
b) Materiality Principle
c)Revenue Recognition concept
Ans:
a)Historical cost principle: the asset must be shown at its cost price, which is the cost of acquisition
less depreciation.
b)Materiality principle: Relative importance of an item or an event. An item is recorded in the books
on the basis of materiality if there is a reason to believable that knowledge of it would influence the
decision of an informed investor.
c) Revenue Recognition concept: Revenue is considered to have been realized when a transaction
has been entered into and the obligation to receive the amount is established.

OR
What do you mean by Accounting Standards? State any two objectives.
Ans:
Accounting standards are a set of guidelines i.e. , Generally Accepted Accounting Principles that are
followed for preparation and presentation of Financial Statements.
Objectives:
a) Minimize the diverse accounting policies and practices with the aim to eliminate them to the
extent possible.
b) Promote better understanding of financial statements.

21 From the following particulars, prepare a Petty Cash Book for the month of January 2018 : 3
2018
.
Jan 1 Drew for petty cash ₹.5,000
Jan 3 Paid for postage ₹.300
Jan 5 Paid for telephone bill ₹.400 plus CGST and SGST @ 6% each.
Jan 8 Paid for cartage ₹.140
Jan 9 Paid for postage ₹.200
Jan 12 Paid for sundries ₹.100
Jan 27 Paid for stationery ₹.300 plus IGST @ 12% each

Petty Cash Book

Rec Dat In Particul Payme Posta Tele Carta sta Misc CGS SGS IGS
e v ars nt ge p ge ti e T T T

201
8

5,00 Jan To cash

0 1

Jan By 300 300

3 postage

Jan By Tele 400 400

5
 By In 24 24
CGST

By In 24 24
SGST

By 140 140
cartage

By 200 200
postage

By sund 100 100

By 300 30
Statione 0
r

By In 36 36
IGST

1524 500 400 140 30 100 24 24 36

0

By Bal 3476
c/d

500 5000
0

347 To Bal
6 b/d

152 To Cash
4

23 Explain any four Advantages of accounting. 4

Ans:
.
a) Financial information about business
b) Assistance to management
c) Replaces memory
d) Facilitates comparative study

OR
Discuss in brief the external users of Accounting information.
Ans:
a) Banks and Financial institutions
b) Investors
c) Creditors
d) Government and its Authorities.

24 Pass the Journal entries for the following transactions: 4

a) Purchased goods from Vinita for ₹.1,60,000 plus IGST @ 18% at 10% trade discount and 3%
.
cash discount. Half the amount paid at the time of purchase.
 b) Ketan is declared insolvent. Received from his Official Receiver 75paise in a rupee on debt of
₹.1,50,000.
3) Depreciation of ₹.5,000 was provided on the machinery at the end of the year
4) Sold household furniture for ₹.50,000 and the proceeds were invested into business.

In the books of ____

Journal entries
Date Particulars l/f Dr Cr
1 Purchase a/c Dr 1,44,000
Input IGST a/c Dr 25,920
To Cash a/c 82,411
To Discount recd a/c 2,549
To Vinita a/c 84,960
( Being goods purchased)
2 Cash a/c Dr 1,12,500
Bad debts a/c Dr 37,500
To Ketan a/c 1,50,000
( Being Kiran declared insolvent)
3 Depreciation a/c Dr 5,000
To Machinery a/c 5,000
( Being bricks, cement etc purchased for
construction of a Building)
4 Cash a/c Dr 50,000
To Capital a/c 50,000
( Salary due)

25 From the following transactions prepare Mr.Suryakants Ledger a/c: 4

2019
.
March 1: Owed money to Mr.Suryakant ₹.1,00,000
March 4: Bought goods from Mr.Suryakant ₹.50,000 @ 10% trade discount plus 12% IGST.
March 10 Returned goods to Mr.Suryakant ₹. 10,000 list price.
March 15 Paid to Mr. Suryakant by cheque in full settlement and discount received @ 10 %.

Suryakant’s a/c
Date Particulars JF Amount Date Particulars JF Amount
2019 2019
Mar 10 To Pur ret a/c 9,000 Mar 1 By bal b/d 1,00,000
To Input IGST a/c 1,080 Mar 4 By Purchase a/c 45,000
Mar 15 To Bank a/c 1,26,288 Mar 4 By Input IGST a/c 5,400
To Dis recd a/c 14,032
1,50,400 1,50,400

26 Prepare a Double Column Cash Book with Cash and Bank Column from the following information: 4
2019
.
Jan 1 Cash in hand ₹.6,000 , Bank Balance (Cr) ₹.42,000
Jan 3 Discounted a 3 month bill for ₹.60,000 at 12%p.a.
Jan 8 Cash sales ₹.50,400 including IGST @ 12%
Jan 15 Honoured our own acceptance ₹.36,000 by bank
Jan 25 Salary paid by cheque ₹.52,000 plus CGST and SGST @ 6%each.
Jan 28 Deposited into bank ₹.15,000
Jan 31 Deposited in excess of ₹.6,000 into bank

Ans: Same as set 1

27 From the following information, prepare a Trial Balance of M/s Parul Ltd. for the year ended 31st 4
March 2019:
.
Building ₹.6,00,000; Bank overdraft ₹.1,00,000; Capital ₹.7,36,000; Sales ₹.10,40,000
Machinery ₹.1,70,000; Creditors ₹.5,00,000; Furniture ₹.56,000; Debtors ₹.6,00,000
Return outwards ₹.26,000; Purchases ₹.10,00,000; Bad Debts ₹.28,000; Cash ₹.4,000;
Discount received ₹.30,000; Interest received ₹.26,000, Reserve ₹. 2,00,000; Motor vehicle ₹.
2,00,000

Ans: Same as Set 1

28 Show an Accounting Equation for the following transactions: 6
a) Mohan commenced business with cash ₹.1,00,000 and ₹.2,00,000 by cheque; goods ₹.1,20,000;
.
machinery ₹.2,00,000 and Loan ₹.1,00,000.
b) 1/3rd of the above goods sold at a profit of 10% on cost and half the payment is received in cash.
c) Depreciation on machinery provided 10%.
d) Rent outstanding ₹.2,000
e) Bought refrigerator for personal use ₹.5,000.
f) Accrued interest ₹.500

Ans: Same as Set 1

29 The Cash Book of Rohan showed an overdraft balance of ₹. 60,000 on 30th September 2018 with his 6
bank. On investigation it was found that:
.
1) Receipts Side of Cash book was undercast by ₹. 40,000
2) A cheque of ₹.24,000 received from his customer and deposited into his bank was dishonoured
and debited by bank before 30th September 2018, but no entry for dishonor was passed in Cash
Book.
3) Bank had debited ₹. 5,600 as interest on overdraft up to 30th Sepetember, 2018 but no entry was
passed in Cash book.
4) Cheque issued amounting to ₹. 28,000 had not been presented for payment to the Bank upto 30th
September 2018.
5) Cheques amounting to ₹. 20,000 entered in the Receipts side of the Cash book and deposited into
the Bank have not been credited by Bank upto 30th September, 2018.
6) A cheque for ₹. 12,000 drawn by another customer of the Bank of similar nature had been debited
to the account of Rohan in error.
Prepare an Amended Cash Book and Bank Reconciliation Statement as on 30th September, 2018.
Ans:
Same as Set 1

30 Following are the balances as on 1st April 2015: 6

Machinery a/c ₹. 2,50,000
.
Provision for Depreciation ₹. 58,000
Depreciation is charged on machinery at 20% p.a. by Diminishing Balance Method. A piece of
machinery purchased on 1st April 2013 for ₹. 50,000 was sold on 1st October 2015 for ₹. 30,000.
Prepare Machinery a/c, Machinery Disposal a/c and Provision for depreciation a/c for the year ended
31st March 2016.

OR
Following balances appear in the books of Deepali, as on 1st April 2018:
Machinery a/c ₹. 4,00,000
Provision for depreciation a/c ₹. 1,55,000
On 1st July, 2018 machinery which was purchased on1st April 2015 for ₹. 60,000 was sold for ₹.
25,000 and on the same date machinery was purchased for ₹. 16,000. The firm charges depreciation
@15%p.a. on fixed instalment method and closes its books on 31st March every year. Prepare
Machinery a/c , Machinery disposal a/c and provision for depreciation a/c for the year 2018-2019.
 Ans: Same as Set 1

31 From the following transactions of the month of April, 2019, prepare the Proper Subsidiary books 8
. of Jindal & Co.Delhi a saree dealer ,post them into the ledger.
2019
April 1 Started Business with cash ₹.1,00,000
April 2 Deposited into bank ₹.25,000
April 2 Purchased on credit from Goyal Mills, Surat 250 polyester sarees @ ₹.600 each.
April 3 Purchased on credit from Bansal & Co., 2 typewriters @ ₹.2,100 each.
April 5 Sold on credit to Goyal & Co., 500 polyester sarees @ ₹.750 each.
April 10 Sold for cash to Garg & Co.,Punjab 200 Kota sarees @ ₹. 300 each.
April 12 Returned to Goyal mills, Surat 50 polyester sarees @ ₹. 600 each.
April 22 Goyal & Co. became insolvent and paid only 80 paise in a rupee in full and final
settlement.
April 24 Rent due to landlord, Ram ₹.600.

OR
Enter the following transactions in to proper Subsidiary books, post them into the ledger.

Jan 01 Mahapatra started business with cash ₹.1,80,000

Jan 04 Goods purchased from Tara for ₹. 22,400
Jan 05 Goods purchased for cash ₹.30,000
Jan 08 Goods sold to Naman ₹.12,000 less 10% trade discount.
Jan 18 Furniture purchased for office use ₹.5,600
Jan 20 Naman returned goods of ₹.2,000 list price.
Jan 25 Rent due to landlord ₹.5,000
Ans: same as SET 1
32 Record the following transactions of Heena Garments, Assam into Purchase book and Sales Return 8
book.
.
2019
April 1 Purchased Readymade shirts from Monty of Delhi of the list price of ₹.80,000 less 10%
trade discount plus IGST @ 12%.
April 3 Sold Ladies dresses for cash ₹.10,000
April 5 Sold Readymade pants to M/s Mintu, Assam for ₹.20,000 less trade discount 10% charged
CGST and SGST @ 6% each.
April 10 Purchased Readymade dresses for children from Naina Ltd. Assam for ₹.30,000 less 15%
trade discount plus CGST and SGST @ 6 % each. .
April 12 Sold to M/s. Minal ltd. 100 Sarees @ ₹.2,000 each less trade discount @ 10%.
April 15 M/s Mintu returned the Readymade pants to us for ₹. 2,000 gross price.
April 20 Returned to Naina Ltd. Assam Readymade dresses for children of ₹.5,000 invoice price.
April 25 M/s Minal Ltd. returned 10 Sarees @ ₹.2,000 each gross price.

OR
Record the following transactions of Hemant Ltd, Delhi into Sales book and Purchase Return book.
2019
January 1 Purchased from M/s Linsu of Delhi
50 Registers @ ₹.300 less 10% trade discount plus CGST and SGST @ 6% each..
January 5 Sold to M/s Nahum of Amritsar
100 gross registers @ ₹.50 per dozen. Less 10% trade discount plus IGST @ 12%.
January 10 Returned to M/s Linsu 5 Registers @ ₹.300 list price.
January 7 Sold 20 dozen exercise books @ ₹.600 each to M/s Mathur, Haryana @ 15 % trade
discount plus IGST @ 12%.
January 10 Returned 12 Registers @ ₹.300 list price to M/s Linsu.
January 15 Sold stationery for cash ₹.1,000.
January 20 Sold 5 Computer printer to M/s Leena @ ₹. 2,000 each.

Ans: same as SET 1