DELHI PUBLIC SCHOOL, GURGAON

SECOND TERM EXAMINATION (2024-25)

SUBJECT: ACCOUNTANCY (055)
CLASS: XI, 03/02/2025
SET- B

Time Allowed – 3 Hours MM: 80

No. of pages: 10
General Instructions:
• There are 34 questions in the question paper. All questions are compulsory.
• Question nos. 1 to 20 carry 1 mark each.
• Question nos. 21 to 26 carry 3 marks each.
• Question nos. 27 to 29 carry 4 marks each.
• Question nos. 30 to 34 carry 6 marks each.
• There is no overall choice. However, an internal choice has been provided in 7 questions of one
mark, 2 questions of three marks, 1 question of four marks, and 2 questions of six marks.
• The answer to each part should be written at one place.

1. (a) Accounting standards bring the uniformity of assumptions, rules and policies adopted in the 1
preparation and presentation of financial statements, which ensures better:
(A) Understandability
(B) Reliability
(C) Relevance
(D) Comparability

OR

(b) Adoption of accounting standards in the preparation of financial statements has reduced the
chances of manipulation and use of inappropriate accounting policies, which ensures ________
of accounting information.
(A) Understandability
(B) Reliability
(C) Relevance
(D) Comparability

2. The manager is entitled to 10% commission on the net profit after charging such commission. Gross 1
profit earned by the firm was ₹ 2,00,000. The various expenses incurred were:
wages ₹ 22,000; salaries ₹ 15,000; carriage inwards ₹ 11,000 and bad debts ₹ 9,000.
During the year the proprietor had withdrawn goods amounting to ₹ 5,500 for his personal use.
Manager’s Commission will be:
(A) ₹ 12,500
(B) ₹ 15,000
(C) ₹ 15,500
(D) ₹ 16,000

3. Which of the following is not an example of Capital Reserve? 1

(A) Profit on sale of goods
(B) Profit prior to incorporation
(C) Profit on sale of fixed assets
(D) Profit on forfeiture of shares

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4. (a) The correct order of assets in the Balance Sheet when arranged as per the order of liquidity 1
would be:
(A) Cash at Bank, Investment, Stock, Debtors
(B) Debtors, Stock, Investment, Cash at Bank
(C) Cash at Bank, Debtors, Stock, Investment
(D) Investment, Cash at Bank, Stock, Debtors

OR

(b) Which of the following is a contingent liability?

(A) Liability for loan
(B) Liability for bill discounted
(C) Liability for goods purchased on credit
(D) Liability for furniture purchased on credit

5. In a financial year, Vinod had total sales of ₹ 7,40,000, out of which ₹ 5,60,000 were received in 1
cash. Total expenses paid by him were ₹ 2,70,000, out of which ₹ 30,000 belongs to next year and
₹ 10,000 are still outstanding. Vinod’s income for the year as per Cash Basis of Accounting will
be:
(A) ₹ 2,90,000
(B) ₹ 3,80,000
(C) ₹ 3,90,000
(D) ₹ 4,70,000

6. (a) Purchase of Furniture for ₹ 5,000 was debited to the General Expenses Account. It is an / a: 1
(A) Error of Omission
(B) Error of Commission
(C) Error of Principle
(D) Compensating Error
OR

(b) Sales Book is totalled as ₹ 50,000 instead of ₹ 5,00,000. It is an / a:

(A) Error of Omission
(B) Error of Commission
(C) Error of Principle
(D) Compensating Error

7. (a) Any expenditure, the full benefit of which is received during one accounting period is termed as: 1
(A) Current Asset
(B) Current Liability
(C) Capital Expenditure
(D) Revenue Expenditure

OR

(b) Any expenditure incurred in acquiring or increasing the value of a fixed asset is termed as:
(A) Non-current Asset
(B) Non-current Liability
(C) Capital Expenditure
(D) Revenue Expenditure

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8. If the supplier of goods and services and the place of supply are in two different states, which 1
of the following types of GST is levied?
(A) CGST
(B) IGST
(C) SGST
(D) Both CGST and SGST

9. Paid to Nia ₹ 23,000 in full settlement of ₹ 24,000. Posting will be made in Nia’s Account as: 1
(A) ₹ 24,000 on debit side
(B) ₹ 24,000 on credit side
(C) ₹ 23,000 on debit side
(D) ₹ 23,000 on credit side

10. Aditya purchased 1,000 toys @ ₹ 50 each less 20% trade discount and 3% cash discount if full 1
payment is made within 30 days. Aditya paid ₹ 10,000 within 30 days and balance amount after 30
days period. Purchases Account will be debited, and Discount Received Account will be credited
respectively with:
(A) ₹ 40,000, Nil
(B) ₹ 40,000, ₹ 300
(C) ₹ 40,000, ₹ 900
(D) ₹ 40,000, ₹ 1,200

11. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R): 1
Assertion (A): Profits retained in the business to meet known or unknown contingency that may
arise in future are known as Reserves.
Reason (R): Such reserves cannot be utilised for distribution of dividends among the
shareholders.
In context of the above two statements, which of the following is correct?
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
(B) Both (A) and (R) are correct but (R) is not the correct explanation of (A)
(C) Only (A) is correct
(D) Both (A) and (R) are incorrect

12. Which of the following is both a book of Journal and Ledger? 1

(A) Cash Book
(B) Journal Proper
(C) Purchases Book
(D) Sales Book

13. Statement-I: A cheque is an order in writing drawn upon a bank to pay a specified sum to the 1
bearer or the person named on it.
Statement-II: A pay-in-slip is used to withdraw money from the bank.
(A) Both the statements are true
(B) Both the statements are false
(C) Only Statement-I is true
(D) Only Statement-II is true

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14. (a) Which of the following statements is incorrect? 1
(A) Secret Reserve is shown on the liabilities side of the Balance Sheet under the head ‘Reserves
and Surplus’.
(B) Reserves may be invested outside the business.
(C) All capital profits are regarded as Capital Reserves.
(D) Provision is made following the Prudence Concept of accounting.

OR

(b) If the amount of any liability cannot be determined accurately, ___________ should be created
in the books of accounts.
(A) Reserve
(B) Liability
(C) Contingent Liability
(D) Provision

15. An increase in which of the following accounts will be recorded on the debit side of its account? 1
(A) Bills Payable
(B) Building
(C) Capital
(D) Interest Received

16. (a) Atul returned goods worth ₹ 25,000 to Vikram. Vikram will prepare a /an: 1
(A) Invoice
(B) Debit Note
(C) Credit Note
(D) Credit Voucher

OR

(b) Ajay received ₹ 40,000 from Chetan as payment for goods sold to him. Ajay will prepare a:
(A) Debit Note
(B) Credit Note
(C) Debit Voucher
(D) Credit Voucher

17. Schedule of balances prepared from the ledger accounts is known as: 1
(A) Balance Sheet
(B) Trial Balance
(C) Statement of Affairs
(D) Statement of Profit and Loss

V
18.O Objective of preparing a Bank Reconciliation Statement is: 1
(A) to find out the Bank balance
(B) to find out the balance of Cash Book
(C) to reconcile the cash balance of Cash Book with the balance of Pass Book
(D) to reconcile the bank balance of Cash Book with the balance of Pass Book

19. Income earned but not received is a __________ . 1

(A) Current Asset
(B) Current Liability
(C) Fictitious Asset
(D) Fixed Asset

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20. (a) Investment Fluctuation Reserve is a: 1
(A) Capital Reserve
(B) General Reserve
(C) Secret Reserve
(D) Specific Reserve
OR

(b) Reserve created by undervaluation of closing stock is called:

(A) Capital Reserve
(B) General Reserve
(C) Secret Reserve
(D) Specific Reserve

21. (a) Journalise the following transactions in the books of Harpreet Bros.: 3
(i) Provide interest on capital @ 6% p.a. for 9 months on capital of ₹ 15,00,000.
(ii) Sold goods worth ₹ 1,00,000, offering a 10% trade discount, with IGST charged at 18%.
The payment was received immediately, and a 2% cash discount was provided.

OR

(b) Pass Journal entries for the following transactions in the books of Tulsi Traders:
(i) Purchased goods from Harsh of ₹ 2,00,000 less 10% trade discount, with CGST and SGST
@ 9% each. Paid the amount immediately by cheque and availed 2% cash discount.
(ii) Interest due but not received ₹ 5,000.

22. From the following information calculate Cost of Goods Sold and Gross Profit based on Cost of 3
Goods Sold:
Wages: ₹ 1,70,000 Trade Expenses: ₹ 10,000 Adjusted Purchases: ₹ 24,00,000
Fuel and Power: ₹ 30,000 Freight Outwards: ₹ 15,000 Closing Stock: ₹ 1,50,000
Office Rent: ₹ 18,000 Freight Inwards: ₹ 20,000 Sales: ₹ 30,00,000

23. (a) The following balances appeared in the Trial Balance of M/s Ganpat Traders as at 3
31st March, 2024:
Bad Debts ₹ 7,000
Provision for Doubtful Debts ₹ 45,000
Sundry Debtors ₹ 4,13,000
Adjustment:
Write off ₹ 13,000 as further bad debts and make a provision for doubtful debts @ 5% on
Debtors.
Pass necessary Journal entries.
OR

(b) The following balances appeared in the Trial Balance of M/s Silverline Traders as at
31st March, 2024:
Salaries ₹ 44,000
Insurance Premium ₹ 2,400
Loan from X @ 18% p.a. ₹ 10,000
Adjustments:
i. Salaries have been paid for 11 months.
ii. Insurance premium has been paid for one year ending 30th June, 2024.
iii. The loan from X was taken on 1st August, 2023 and no interest has been paid so far.
Pass necessary Journal entries.

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24. Prepare Drawings Account and Silk House Account based on the following transactions: 3
2024
April 8 Purchased goods from Silk House ₹ 8,000.
April 10 Returned goods to Silk House ₹ 500.
April 15 Goods worth ₹ 1,000 were withdrawn by the proprietor for his personal use.
April 21 Paid to Silk House in full settlement of their account, less 2% cash discount.
25. Record the following transactions in the Returns Inward Book of M/s Nivasa Furniture, Mumbai. 3
Date Particulars
2024
March 7 Arora Furniture, Delhi, returned to us being not according to sample, sold for
cash:
10 Chairs @ ₹ 2,000 each
1 Table for ₹ 5,000
Less: 20 % Trade Discount

March 10 Sangam Furniture Mart, Gujrat returned to us:

2 broken Almirahs @ ₹ 11,000 each
Less: 15% Trade Discount

March 20 Returned to Teak House, Jaipur, the following goods for being damaged in
transit:
5 Chairs @ ₹ 1,600 each
Less: 10% Trade Discount

March 25 Fabfurniture House, Pune returned to us, the following goods being not of
specified quality:
1 Dining Table for ₹ 10,000
5 Chairs @ ₹ 2,000 each
Less: 15 % Trade Discount

March 30 Floors and Furnishings, Agra, returned to us, the following goods being
defective:
3 Almirahs @ ₹ 10,500 each
2 Chairs @ ₹ 1,000 each
Less: 10 % Trade Discount

26. (i) Name the accounting principle on which the accounting equation concept is based. 3
(ii) Goods costing ₹ 72,000 sold at a profit of 331/3%. Half the payment was received in cash. Show
the effect of the transaction given above on the following accounting equation:
Cash + Stock + Debtors + Furniture = Creditors + Capital
35,000 + 90,000 + 20,000 + 10,000 = 30,000 + 1,25,000

27. Identify and explain the Accounting Principles / Concepts / Conventions followed or violated in the 4
following situations:
(i) Amar Ltd. a mobile manufacturing company, sold mobile phones on credit to Sagar, a retailer,
for ₹ 3,00,000. However, Sagar has become insolvent, and there is a high likelihood that the
outstanding amount may not be recovered. As a result, Amar Ltd. decides to account for this loss
in its financial records.
(ii) Sunil operates a stationery business named ‘Rainbow Stationers’ with an initial investment of
₹ 50,000. He used ₹ 30,000 to purchase stationery and deposited the remaining amount in the
bank. Later, Sunil withdrew ₹ 10,000 for personal expenses but incorrectly recorded it as a
business expense in his financial records.

6–B /Second Term /Accountancy/ XI /24-25 P.T.O

28. (a) Mukesh started his business on 1st April, 2023 with a capital of ₹ 75,000. On 1st July, 2023 he 4
borrowed from his wife a sum of ₹ 40,000 @ 9% p.a. (interest not yet paid). On 30 September,
th

2023, he sold his investments of ₹ 1,00,000 at 5% premium and introduced the amount into
business. During the year he withdrew ₹ 2,000 per month besides goods of the sale value of
₹ 6,000 (50% above cost).
He maintains his books of accounts on Single Entry System. At the end of the year the financial
position was as follows:
Cash at Bank ₹ 60,000; Debtors ₹ 94,000; Stock ₹ 70,000 and Creditors ₹ 30,000
Prepare Statement of Profit or Loss for the year ending 31st March, 2024.

OR

(b) State any four features of Single Entry System.

29. Record the following transactions in a Cash Book with Cash and Bank columns: 4
Date Particulars
2024
March 1 Cash in Hand ₹ 1,200; Overdraft at bank ₹ 15,000
March 3 Capital introduced ₹ 20,000 out of which ₹ 16,000 is by cheque which is
deposited in the bank
March 4 Goods purchased for cash ₹ 4,000
March 16 Received ₹ 1,000 from Param, whose account of ₹ 2,000 was written off as bad
debts earlier
March 23 Withdrawn from bank ₹ 3,000
March 25 Drew from bank for personal expenses ₹ 500
March 30 Interest debited by bank ₹ 375
March 31 Deposited with bank the balance after retaining ₹ 2,000 at office

30. Following is the extract from the Trial Balance of a firm as at 31st March, 2024: 6

Sales: ₹ 5,00,000 Loss by accident: ₹ 3,000

Opening Stock: ₹ 30,000 Interest on long term debt: ₹ 2,000
Advertising expenses: ₹ 5,000 Commission received: ₹ 4,500
Discount allowed: ₹ 2,000 Gain on sale of Land: ₹ 10,000
Additional Information:
(i) Gross Profit - 25% of Cost of Goods Sold
(ii) Closing Stock - ₹ 50,000

From the above information calculate the following:

(a) Gross Profit
(b) Operating Profit
(c) Net Profit

31. An accountant, while balancing his books found that there was a difference of ₹ 795 in the Trial 6
Balance. He transferred the difference to the Suspense Account. The following mistakes were found
later. Rectify these errors by passing Journal entries and prepare Suspense Account.
(i) Salary for the month of March ₹ 155 was posted twice.
(ii) Rent of ₹ 350 received from Ashok was credited both to Rent Account and Ashok Account.
(iii) Goods withdrawn by the proprietor for personal use ₹ 1,000 were credited to Sales Account
as ₹ 1,600.
(iv) Sale of goods for ₹ 296 to Karan was entered in the Sales Book as ₹ 269.

7–B /Second Term /Accountancy/ XI /24-25 P.T.O

32. Homespun Textiles Ltd. purchased a machinery on 1st April, 2020 for ₹ 60,000. On 1st October, 2020 6
it purchased another second hand machinery for ₹ 1,08,000 and spent ₹ 12,000 on its repairs to make
it serviceable. On 1st April, 2021 it incurred additional expense of ₹ 1,200 on the repairs of machinery
purchased on 1st April, 2020. On 30th September, 2021 one of the machines costing ₹ 20,000, out of
the lot purchased on 1st April, 2020 was sold for ₹ 13,000 and a new machine was purchased for
₹ 28,000. The company writes off depreciation @ 20% p.a. on the Written Down Value method.

(i) Book value of the machine on the date of sale was:

(A) ₹ 16,000
(B) ₹ 14,400
(C) ₹ 13,280
(D) ₹ 12,400

(ii) Which of the following statements is correct?

(A) Depreciation is a non-cash expenditure.
(B) Depreciation may not be provided if there is loss in a financial year.
(C) It is not necessary to provide depreciation on a fixed asset if its market value is higher than
its book value.
(D) Under Straight Line method the combined expense of depreciation and repairs remains
equal throughout the period.

(iii) Depreciation to be charged on machinery purchased on 1st April, 2020 as on

31st March, 2022 will be:
(A) ₹ 2,800
(B) ₹ 3,200
(C) ₹ 6,400
(D) ₹ 9,600

(iv) When ‘Provision for Depreciation Account’ is created, the amount of depreciation is:
(A) Debited to Asset Account
(B) Credited to Asset Account
(C) Debited to Provision for Depreciation Account
(D) Credited to Provision for Depreciation Account

(v) Loss/ Gain on sale of machine was:

(A) Loss of ₹ 200
(B) Gain of ₹ 200
(C) Gain of ₹ 1,400
(D) Loss of ₹ 1,400

(vi) Closing balance of Machinery Account as on 31st March, 2022 was:

(A) ₹ 1,34,400
(B) ₹ 1,37,200
(C) ₹ 1,38,160
(D) ₹ 1,50,000

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33. (a) Prepare a Bank Reconciliation Statement of Ratan Traders as on 31st March, 2023 from the 6
following information:
(i) Overdraft balance as per Cash Book ₹ 20,000.
(ii) Bank recorded a cash deposit of ₹ 3,210 as ₹ 3,120.
(iii) Interest on investment collected by the bank ₹ 1,500.
(iv) Payment of cheque for ₹ 550 was recorded twice in the Pass Book.
(v) A cheque of ₹ 500 sent to bank for collection was dishonoured by the bank.
(vi) A cheque of ₹ 300 credited in the Pass Book has been omitted to be recorded in the Cash
Book.
OR

(b) From the following particulars, prepare Bank Reconciliation Statement of Govind Bros. as on
30th June, 2024:
(i) Pass Book showed a credit balance of ₹ 12,000.
(ii) Out of total cheques amounting to ₹ 75,000 drawn by Govind, cheques aggregating
₹ 10,000 were encashed in June, cheques aggregating ₹ 8,000 were encashed in July and the
rest have not been presented at all.
(iii) Out of total cheques amounting to ₹ 24,000 deposited, cheques aggregating ₹ 15,000 were
credited in June, cheques aggregating ₹ 4,000 were credited in July and the rest have not
been collected at all.
(iv) The bank had allowed interest ₹ 660.
(v) Amount wrongly debited by bank ₹ 4,800.
(vi) A cheque of ₹ 16,600 paid into the bank was returned dishonoured but no intimation was
received from the bank till 30th June, 2024.

34. (a) Prepare Trading and Profit and Loss Account for the year ended 31st March, 2024 from the 6
given Trial Balance and additional information:
Particulars Debit (₹) Particulars Credit (₹)
Stock on 1st April, 2023 50,000 Capital 3,20,000
Furniture 16,000 Creditors 80,000
Building 1,60,000 Returns Outward 2,000
Debtors 60,000 Commission 6,000
Drawings 20,000 Sales 4,65,600
Plant and Machinery 1,40,000 Bad Debts Recovered 1,400
Wages 24,000
Salaries 16,800
Bad Debts 2,000
Purchases 2,40,000
Returns Inward 1,800
Insurance Premium 3,000
Cash 46,400
Bank 95,000
8,75,000 8,75,000
Adjustments:
(i) Write off bad debts ₹ 1,500.
(ii) Depreciation @ 5% p.a. is to be provided on all fixed assets.
(iii) Plant and Machinery included a machine purchased for ₹ 20,000 on 1st October, 2023.
(iv) Wages ₹ 1,200 are outstanding, and insurance premium paid in advance ₹ 400.
(v) 80% of the commission earned was received and credited to Commission Account during
the year.
(vi) Value of closing stock on 31st March, 2024 at cost was ₹ 24,000 and its market value was
₹ 28,000.
OR

9–B /Second Term /Accountancy/ XI /24-25 P.T.O

(b) From the following Trial Balance of Global Traders, and the additional information provided,
prepare Profit and Loss Account and Balance Sheet for the year ended 31st March, 2024:
Particulars Debit Particulars Credit
(₹) (₹)
Stock on 1st April, 2023 15,000 Sales 1,85,000
Purchases 1,16,000 Interest on Tia’s Loan 300
Wages 8,000 Commission Received 4,500
Power 12,000 Rent Outstanding 600
Salaries 11,000 Bills Payable 1,600
Drawings 5,500 Creditors 20,000
Loan to Tia @ 10% p.a. 5,000 Capital 1,00,000
Rent 4,000
Furniture 5,000
Bills Receivable 6,000
Plant 72,000
Debtors 33,000
Cash 19,500
3,12,000 3,12,000
Adjustments:
(i) Gross Profit ₹ 64,000.
(ii) Depreciate furniture by 10% p.a.
(iii) Create a provision of 2% for discount on debtors.
(iv) Value of closing stock on 31st March, 2024 was ₹ 30,000
(v) Salaries for the month of March, 2024 are still outstanding.
(vi) One-third of the commission received relates to the next accounting period.

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