SAMPLE QUESTION PAPER - 3
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. Which voucher is prepared for the payment of salary, purchase of goods, payment [1]
made to any creditor etc.
a) Creditor voucher b) Accounting voucher
c) Debit voucher d) Both
2. Assertion (A): Accounting has a wider scope than book-keeping. [1]
Reason (R): Book-keeping involves recording, classifying, summarizing and
analysing the financial transactions.
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. Goods purchased on credit will increase the [1]
a) Debtor b) Capital
c) liability d) Drawings
4. Which equation is correct out of the following: [1]
i. Liabilities = Assets + Capital
ii. Assets = Liabilities - Capital
iii. Capital = Assets + Liabilities
iv. Capital = Assets - Liabilities
a) Statement (ii) is Correct. b) Statement (iv) is Correct.
c) Statement (i) is Correct. d) Statement (iii) is Correct.
OR
Source Documents of Accounting are:
a) Cheque b) All of these
c) Cash Memo d) Invoice and Bills
5. Cash memo is prepared when goods are sold [1]
a) both on credit and cash b) on credit
c) On transfer d) on cash
6. Which of the following is an advantage of accounting? [1]
a) Based on Historical Costs b) Omission of Qualitative
Information
c) Detection of Errors d) Incomplete information
OR
Which is the last step of accounting as a process of information:
a) Recording the transaction b) Preparation of financial
transaction
c) Analysis of information d) Communication of information
7. ________ reserve may or may not involve any receipts of cash. [1]
a) Revenue b) Specific
c) General d) Capital
8. Drawings Account is a [1]
a) Artificial personal account b) Personal Account
c) Nominal Account d) Real Account
OR
Consider the following statements with regard to the accounting treatment of various
accounts:
i. Increase in asset is debited and decrease in asset is credited.
ii. Increase in expenses/losses is debited and decrease in expenses/ losses is credited.
iii. Increase in liabilities is credited and decrease in liabilities is debited.
iv. Increase in capital is credited and decrease in capital is debited.
Identify the correct statement/statements:
a) i and ii b) i, iii and iv
c) i, ii, iii and iv d) ii and iii
9. Under which system of accounting transactions is recorded in the books of accounts [1]
on the receipt/payment of cash:
a) Cash Basis b) Profit basis
c) Money basis d) Accrual basis
10. To promote worldwide uniformity in published accounts, the International [1]
Accounting Standards Committee (IASC) has been set up in June
a) 1975 b) 1972
c) 1973 d) 1971
11. Profit on sale of assets is used to create: [1]
a) Capital Reserve b) Specific Reserve
c) Both Specific Reserve d) General Reserve
and General Reserve
12. The unsold goods left at the end of the year is called: [1]
a) Drawing b) Closing stock
c) Opening stock d) Assets
13. If XYZ Electronics Ltd. purchases 20 TV @ ₹2,000 per piece and 15 tape recorders [1]
@ ₹12,500 per piece. There 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
14. An increase in provision for bad debt will [1]
a) Decrease liabilities b) Increase Assets
c) Increase net income d) Increase liabilities
15. Stock is valued at: [1]
a) cost or market value, whichever b) market value
is lower
c) cost or market value, whichever d) cost
is higher
OR
The things or properties which helps in the smooth functioning of the business and
which are owned by the business are called ________ of the business.
a) Assets b) Stock
c) Liabilities d) Capital
16. A note sent by the buyer on the return of goods is: [1]
a) Credit Note b) Debit Note
c) Return Note d) Sales Return
17. ______ are created in business for rainy day [1]
a) General Reserve b) Dividend equalization fund
c) Dividend fund d) Capital Reserves
18. After balancing of accounts, these always show Debit Balance. Is it Correct? [3]
OR
Journalise the following transactions:
i. Goods for ₹ 50,000 were destroyed by fire.
ii. Goods worth ₹ 18,000 were distributed as free samples and ₹ 20,000 were given
away as a charity in cash.
iii. Goods worth ₹ 25,000 and cash ₹ 40,000 were taken away by the proprietor for his
personal use.
iv. Goods worth ₹ 20,000 and cash₹ 5,000 were given away as charity.
v. Cash ₹ 1,00,000 were stolen from the Iron Safe of the trader.
19. What is meant by the cash basis of accounting? Why is the cash basis of accounting [3]
not popular as a system of accounting?
OR
Why is the accrual basis of accounting better than the cash basis of accounting?
20. Determine, if the following are Assets, Liabilities, Capital, Revenue from [3]
Operations, Revenues, Expenses or none:
a. Machinery
b. Purchases
c. Stock
d. Creditors
e. Capital
f. Salary paid to a clerk
g. Sales
h. Furniture
i. Interest received and
j. Rent paid
21. Following balances were extracted from the books of Rajesh Associates as at 31st [4]
March, 2023:
(₹) (₹)
Sundry Debtors 4,10,000 Stock (April 1, 2022) 2,30,000
A cheque for ₹ 8,000 drawn by Mr. Jain himself on Progressive
23
Bank was deposited in his account with Goodwill Bank.
Cash drew from the account with Progressive Bank ₹ 600 for office
25
use.
A cheque for ₹ 1,100 received from Mr. A and earlier deposited in
th
Goodwill Bank (on 14 June) was returned unpaid and Bank
25
debited ₹ 10 towards its charges. Mr. Jain received the amount of
returned cheque and Bank charges in cash from Mr. A.
28 Deposited cash ₹ 1,500 in the account with Goodwill Bank.
29 Purchased postal stamps for ₹ 200 and paid in cash.
23. State any six reasons when the balance as per Cash Book will be higher than the [4]
balance as per Bank Pass Book or Bank Statement.
OR
The Cash book of Sh. Shokeen showed a balance of ₹ 20,000 on 31st December, 2023
at the bank. The figure did not agree with the bank Pass Book. A comparison of the two
revealed the following :
i. The bank has debited Sh. Shokeen with ₹ 6,000, the annual premium on his life
policy according to his standing instructions and with ₹ 150 as bank charges.
ii. The bank has credited Sh. Shokeen by ₹ 15,000, the proceeds of a bill.
iii. Sh. Shokeen sent for collection cheques amounting ₹ 60,000 out of which cheques
for ₹ 48,000 have been credited by bank till 31st December.
iv. The cash collection on 31st December, 2023 totalling ₹ 25,000 was entered in the
Cash Book in the bank column on the same day but it was banked on the 2nd
January, 2024.
v. Sh. Shokeen issued cheques totalling ₹ 1,00,000 of which those of ₹ 36,000 have not
been presented by 31st December, 2023.
Show the corrections to be made in the Cash Book so as to ascertain the balance to be
shown in the Balance Sheet and then prepare the Bank Reconciliation Statement.
24. The following balances appeared in the books of Sumit Stores on 1st April, 2023: [6]
Assets: Cash ₹ 15,000; Bank balance ₹ 5,000; Stock ₹ 40,000; Furniture ₹ 3,600;
Debtors ₹ 24,000 (X ₹ 6,000; Y ₹ 8,000and Z ₹ 10,000).
Liabilities Bank Loan ₹ 10,000; Creditors ₹ 12,500 (Ajit ₹ 5,000, Vinay ₹ 7,500).
Following transactions took place during April 2023:
Solution
SAMPLE QUESTION PAPER - 3
Accountancy (055)
Class XI (2024-25)
Part A
1.
(c) Debit voucher
Explanation:
A debit voucher helps in recording expenses or a liability and also helps in its payment. They are also called
Source Documents as they help in identifying the source of a transaction. Examples include bill receipts,
cash memos, pay-in-slips.
2.
(c) A is true but R is false.
Explanation:
A is true but R is false.
book keeping only involve recording part of accounting in the books of account. book keeping done by the
junior staff in the organisation and classifying, summarizing and analysing are done by the senior staff.
3.
(c) liability
Explanation:
Purchaser have to pay the amount in future when goods are purchased on credit which increases the liability.
4.
(b) Statement (iv) is Correct.
Explanation:
Capital = Asset - Liabilities
OR
(b) All of these
Explanation:
All of these
5.
(d) on cash
Explanation:
Cash Memo is equivalent to Invoice copy and a legal document. It is used for knowing the cash sales of the
business, to pay tax, for reconciliation and analysis, Inventory planning, Cash flow position, etc. A cash
memo is prepared when goods are sold for cash.
6.
(c) Detection of Errors
Explanation:
Detection of Errors
OR
(d) Communication of information
Explanation:
The financial position or financial performance of the business is to be communicated to internal and
external users.
7.
(d) Capital
Explanation:
Capital Reserve :- Capital reserves are made out of capital profits. Capital profits may or may not involve
cash receipts example: Premium on issue of shares or debentures involve cash receipts while profit on
forfeiture of shares does not involve cash receipts.
8.
(b) Personal Account
Explanation:
Drawings Account is a Personal Account because it is based on a person.
OR
(c) i, ii, iii and iv
Explanation:
i, ii, iii and iv
9. (a) Cash Basis
Explanation:
Under the cash basis of accounting, incomes are not recorded unless they are received in cash. Expenses are
only recorded when they are paid in the cash pf any year. No credit transactions are recorded.
10.
(c) 1973
Explanation:
The International Accounting Standards Committee (IASC) was responsible for developing the international
accounting standards and promoting the application of these standards worldwide so as to bring the
international uniformity in the presentation and methods followed by the organisations. It was founded in
June 1973 in London.
11. (a) Capital Reserve
Explanation:
Capital Reserve
12.
(b) Closing stock
Explanation:
The unsold goods left at the end of the year is called closing stock.
13.
(d) ₹1,82,000
Explanation:
Amount recorded in Purchase Book.
20 TV @ ₹2,000 40,000
(+) 15 Tape Recorders @ ₹12,500 1,87,500
₹2,27,500
(-) Trade Discount @ 20% (45,500)
₹1,82,000
14.
(d) Increase liabilities
Explanation:
Provision for bad debt can deduct from debtors or can shown as a liability in the balance sheet. this will
increase the liability balance or we can say reduces the assets balance.
15. (a) cost or market value, whichever is lower
Explanation:
Stock:- Stock is valued at cost or market value, whichever is lower.
OR
(a) Assets
Explanation:
The things or properties which help in the smooth functioning of the business and which are owned by the
business are called assets of the business.
16.
(b) Debit Note
Explanation:
A note sent by the buyer on the return of goods is Debit Note. Goods returned to the supplier.
17. (a) General Reserve
Explanation:
General reserve is the amount set aside of the revenue profits for no specific purpose. They can be utilised
for any future contingencies of the business.
18. No, it is not correct. The accounts may show either debit balance or credit balance. If the debit side total
exceeds the credit side total, then the balance is called Debit Balance. If the credit side total exceeds the
debit side total, then the balance is called Credit Balance.
OR
Journal Books
Sl no. Particulars L.F. Debit ₹ Credit ₹
1 Loss by Fire A/c Dr. 50,000
To Purchases A/c
50,000
(Destroyed goods by fire)
2 Advertisement Expenses (free samples) A/c Dr. 18,000
To Purchases A/c
18,000
(Distributed goods as free samples)
Charity A/c Dr. 20,000
To Cash A/c
20,000
(Cash gave for charity)
3 Drawings A/c (40,000 + 25,000) Dr. 65,000
To Cash A/c 40,000
To Purchases A/c
25,000
(Cash and goods are withdrawn for personal use)
4 Charity A/c Dr. 25,000
To Cash A/c 5,000
To Purchases A/c (20,000 + 5,000)
20,000
(Cash and goods given for charity)
5 Loss by Theft A/c Dr. 1,00,000
To Cash A/c
1,00,000
(Cash stolen from iron safe)
Total 2,78,000 2,78,000
19. The cash basis of accounting is the system of accounting under which revenues and expenses are recorded
when they are received or paid in cash. Cash basis of accounting is not popular due to the following reasons
:
i. It does not make a clear cut distinction between revenue items and capital items.
ii. It is not recognized under the Companies Act.
iii. It is not in line with matching principle because revenues and costs are recognized not on the basis of
incurrence but on the basis of receipt and payment. As a result, incomes include unearned incomes and
exclude accrued incomes. Similarly, expenses include expense, paid in advance but does not include
outstanding expenses.
OR
Accrual basis of accounting is better than cash basis of accounting due to the following reasons:
i. The accrual basis of accounting makes a clear-cut distinction between capital items and revenue items. It
gives a correct picture of operating results and the financial position of the business.
ii. Accrual basis is based on generally accepted accounting principles and is considered as systematic,
scientific, and reliable.
iii. Accrual basis of accounting ensures the recording of all revenues and expenses even if these are not
received or paid. Thus, it gives a complete picture of the business.
iv. Accrual basis is mandatory in the case of companies under the provisions of Companies Act.
20. a. Asset
b. Expense
c. Asset
d. Liability
e. Capital
f. Expense
g. Revenue from Operations
h. Asset
i. Revenue
j. Expenses
21. Books of Rajesh Associates
Trial Balance
as on March 31, 2023
Name of Accounts L.F. Dr. (₹) Cr. (₹)
