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Class-XI
Accountancy

Practice Test Paper

Chapters: Accounting Equation, Ledger (T-Shape), Journal, Cash Book
Marks: 50

Q1: Multiple Choice Questions— (10)

1. If assets = ₹1,00,000 and liabilities = ₹40,000, then owner's equity is:

(a) ₹60,000
(b) ₹1,40,000
(c) ₹40,000
(d) ₹1,00,000

2. In the journal entry “Purchased goods on credit from A for ₹10,000”, the debit
entry is:
A) A’s Account
B) Goods Account
C) Cash Account
D) Purchases Account

3. Posting is the process of transferring entries from the journal to the:

A) Trial Balance
B) Cash Book
C) Ledger
D) Balance Sheet

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4. If ₹5,000 is deposited into the bank from cash, the entry in cash book bank
column will be:
A) Debit ₹5,000
B) Credit ₹5,000
C) No entry
D) Debit and credit both

5. What happens to the accounting equation when goods costing ₹1,800 are sold
for ₹1,500?
A) Assets ↓, Capital ↓
B) Assets ↑, Capital ↑
C) Liabilities ↑, Capital ↓
D) No change

6. A cheque received and deposited same day is recorded in:

A) Cash column
B) Bank column
C) Both cash and bank columns
D) Not recorded

7. Starting business with ₹50,000, paying salary ₹2,000, wages outstanding ₹200:
total liabilities?
A) ₹200
B) ₹2,200
C) ₹2,000
D) ₹0

8. If office furniture ₹15,000 is purchased on credit from Mohan, the journal entry
will debit:
A) Furniture Account
B) Mohan's Account
C) Cash Account
D) Purchase Account

9. Which of the following will decrease the owner’s equity?

A) Cash investment by owner
B) Purchase of an asset on credit
C) Withdrawals by owner (Drawings)
D) Earning revenue

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 10. In ledger posting, if Sales are made on credit, which of the following increases?
A) Cash
B) Debtors
C) Creditors
D) Purchases

Q2: Prepare accounting equation from the following, and prepare Balance Sheet
also: (8)
1. Mahapatra commenced business with Cash Rs 50,000 and Rs 100,000 by
cheque, Goods Rs 60,000; Machinery Rs 100,000 and Furniture Rs 50,000
2. 1/3rd of the above Goods sold at a profit of 10% on cost and half of the
payment received in cash
3. Depreciation on machinery provided @10% p.a
4. Goods withdrawn for personal use Rs 10,000
5. Interest on drawings charged @5%
6. Goods sold to Gupta for Rs 10,000 and received a bills receivable for the same
amount for 3 months
7. Received Rs 10,000 from Gupta against the Bills Receivable on its maturity.

Q3:
i) X started a business on 1st April 2018 with a capital of Rs 100,000 and a
loan of Rs 25,000 taken from Y. During 2018–19 he had withdrawn Rs
15,000 for personal use. On 31st March 2019 his assets were:
• Building: Rs 100,000
• Machinery: Rs 25,000
• Misc. assets including cash: Rs 25,000
Find his capital as on 31st March 2019 and profit or loss incurred during the year
2018–19. (3)

ii) On 31st March 2019, the total assets and external liabilities were Rs
100,000 and Rs 3,000 respectively. During the year the proprietor had:
• Additional capital: Rs 10,000
• Withdrawn: Rs 6,000 for personal use
• Profit earned: Rs 10,000
Calculate the capital as on 1st April 2018. (2)

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Q4: Journalise the following transactions. (6*1.5 = 9)
1. Goods costing Rs 5,000 were lost by fire. Insurance company accepted a claim
of Rs 4,000.
2. Paid Rs 8,000 as rent to landlord and received Rs 2,500 as rent from subletting
a part of the building.
3. Purchased an old furniture for Rs 18,000 from Yadav. Paid Rs 500 on its
cartage and Rs 600 on its repairs.
4. Received commission of Rs 10,000 by cheque, half of which is in advance.
5. Paid salary of Rs 10,000 to Nandan who provides 60% of his service to
business and rest for domestic purpose of Abhay (proprietor).
6. Paid to Anish Rs 18,400 by cheque to settle his account of Rs 18,000 (Rs 400
being interest for late payment).

Q5: Prepare Two Column Cash Book and Pass Journal Entries. (10)
Transactions for April 2019:
• 1 April: Cash in hand Rs. 1,200; Overdraft at Bank Rs. 15,000
• 3 April: Capital introduced Rs. 20,000; out of which Rs. 16,000 deposited in
the Bank
• 4 April: Purchased goods from Sham Traders Rs. 3,000; trade discount Rs. 200;
paid by cheque
• 4 April: Goods purchased for cash Rs. 4,000
• 5 April: Sold goods to Mohan on credit Rs. 5,000
• 6 April: Received cheque from Rakesh Rs. 2,450; allowed discount Rs. 50
• 10 April: Cheque received from Rakesh deposited into Bank
• 11 April: Settled account of Tez Printers Rs. 750 by paying cash Rs. 680
• 12 April: Cash received from Mohan Rs. 4,750 in full settlement of Rs. 5,000
• 16 April: Rs. 1,000 due from Gupta Bros. (written off earlier) now recovered
• 17 April: Received Rs. 200 from Murli on behalf of Mohan
• 19 April: Received cheque of Rs. 800 from Mukesh, endorsed to Nitin on 24
April
• 20 April: Sale of old furniture for Rs. 720
• 25 April: Cashed a cheque for Rs. 3,000
• 28 April: Surindra, who owed Rs. 400, became bankrupt and paid 60 paisa in a
rupee
• 29 April: Received loan repayment Rs. 3,000; deposited Rs. 2,500 into Bank
• 30 April: Interest debited by Bank Rs. 375
• 30 April: Deposited entire balance into Bank after retaining Rs. 2,000 at office

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Q6: Put the following on the proper side of a Cash Account, a Debtor's Account and a
Creditor's Account: (8)
Particulars ₹
(i) Sold goods to Rohan on credit 50,000
(ii) Sold goods to Ayan for cash 20,000
(iii) Purchased goods from Neeraj on credit 25,000
(iv) Cash received from Rohan 19,000
(v) Goods returned by Rohan 2,000
(vi) Paid rent 500
(vii) Cash paid to Neeraj 15,000