KENDRIYA VIDYALAYA SANGATHAN
MODEL PAPER -1
ACCOUNTANCY –XI
MAX. TIME : 3 HRS. MAX. MARKS : 80
General Instructions:
• Read the question carefully. 15 minutes would be allotted to read this paper.
• There are eight printed pages in this question paper.
• Attempt all the parts of a question together.
• This question paper contains two Parts: A and B.
• Part A (Financial Accounting-I ) contains questions 1 to 18.
• Part B (Financial Accounting-II ) contains questions 19 to 29 .
• Attempt all the questions, however there is an internal choice in the question no.
29.
Q. QUESTIONS MARKS
NO.
Part A: Financial Accounting-1
1 “The decision-makers must interpret accounting information in the same sense as 1
it is prepared and conveyed to them.” Which qualitative characteristic of
accounting information is highlighted here?
2 Define the term “Profit”. 1
3 In reference to ‘one country one tax ‘, define the term IGST. 1
4 Choose the correct answer from the following; 1
Seema Furniture House returned tables and chairs worth Rs. 1,10,000 to Mahesh
Furniture Mart. Where would you record this transaction?
i.Journal proper
i.Return Inward book
i.Return outward book
.Cash book
5 What is meant by Compound Journal Entry? 1
6 Choose the correct answer from the following; 1
For depositing cash/cheques in the bank account, a form has to be filled, which is
called a…… ;
2
a. pay-in-slip
b. withdrawal slip
c. pass book
d. cash book
7 Differentiate between the provision and reserve on the basis of “Purpose”. 1
8 Choose the correct answer from the following; 1
The errors which are committed due to wrong posting of transactions, wrong
totalling or wrong balancing of the accounts, wrong casting of the subsidiary
books, or wrong recording of amount in the books of original entry, etc. are
called;
A) Errors of Commission
B) Errors of Omission
C) Errors of Principle
D) Compensating Errors
9 Calculate the date of Maturity of the Bill of exchange drawn by Hamida on 29 1
May ,2017 for 4 months.
10 Complete the following sentences with appropriate words: (1*3=3)
a. The process of accounting starts with ............ and ends with ............
b. Accounting measures the business transactions in terms of .............. units.
c. Identified and measured economic events should be recording in
............ order.
11 Trial balance of Anny did not agree. It showed an excess credit ` 10,000. Anny (1*3=3)
put the difference to suspense account. She located the following errors :
a. Sales return book over cast by ` 1,000.
b. Credit purchases from S & Co. ` 5,000 were recorded through sales book.
However, S & Co. were correctly credited.
c. Salary paid ` 2,000 was debited to employee’s personal account.
Rectify the above errors using Suspense Account.
12 3
From the following particulars of Asha & Co. prepare a bank reconciliation
statement on December 31, 2017.
i.Overdraft as per passbook 20,000
i.Interest on overdraft 2,000
i.Insurance Premium paid by the bank 200
.Cheque issued but not presented for payment 6,500
.Cheque deposited but not yet cleared 6,000
i.Wrongly debited by the bank 500
13 The following transactions related to M/s Tools India. Prepare the double column 4
Cash book.
Date Details Amount
2017 Sept. Bank balance 42,000
01
3
Sept. 01 Cash balance 15,000
Sept. 04 Purchased goods by cheque 12,000
Sept. 08 Sales of goods for cash 6,000
Sept. 13 Purchased machinery by cheque 5,500
Sept. 16 Sold goods and received cheque (deposited same 4,500
day)
Sept. 17 Purchase goods from Mriaula in cash 17,400
Sept. 20 Purchase stationery by cheque 1,100
Sept. 24 Cheque given to Rohit 1,500
Sept. 27 Cash withdrawn from bank 10,000
Sept. 30 Rent paid by cheque 2,500
Sept. 30 Paid salary 3,500
14 On March 15, 2017 Ramesh sold goods for ` 8,000 to Deepak on credit. Deepak 4
accepted a bill of exchange drawn upon him by Ramesh payable after three
months. On April, 15 Ramesh endorsed the bill in favour of his creditor Poonam
in full settlement of her debt of ` 8,250. On May 15, Poonam discounted the bill
with her bank @ 12% p.a. On the due date Deepak met the bill.
Record the necessary journal entries in the books of Poonam.
15 Identify the accounting concepts from the following statements; (1*6=6)
a. The concept states that a conscious approach should be adopted in
ascertaining income so that profits of the enterprise are not overstated.
b. This concept states that every transaction has a dual or two-fold effect and
should therefore be recorded at two places.
c. This concept requires that all assets are recorded in the book of accounts
at their purchase price, which includes cost of acquisition, transportation,
installation and making the asset ready to use.
d. This concept assumes that a business firm would continue to carry out its
operations indefinitely, i.e. for a fairly long period of time and would not be
liquidated in the foreseeable future.
e. This concept states that for the purposes of accounting, the business and
its owners are to be treated as two separate entities.
f. This concept holds that the accounting information must be free from the
biasness of accountants and others.
4
16 Prepare accounting equation for M/s Sandeep Traders from the following 6
transactions.
a. Sandeep started business with Cash 1,00,000
b. Purchased furniture for cash 5,000
c. Purchased goods for cash 20,000
d. Purchased goods on credit 36,000
e. Paid for rent 700
f. Goods costing ₹ 40,000 sold at a profit of 20% for cash
17 Pass the journal entries for the following transactions in the books of Sohail 6
Kirana Store.;
i.Goods worth Rs. 33,000 withdrawn for personal use.
i.A cheque of Rs. 1,200 received from Mehta &Co. dishonored.
i.Sarla who was a debtor of Rs. 3,000 declared insolvent paid 30 paisa in a rupee
only.
.Goods worth Rs. 5,000 purchased from Mahindra store on a trade discount
@10%. Half of the payment was made in cash for a cash discount @5%.
.Interest on drawings Rs. 4,000 to be charged in the journal proper.
i.The loss of stock by fire was evaluated as Rs. 630.
18 On January 01, 2015, Khosla Transport Co. purchased five trucks for ` 20,000 8
each. Depreciation has been provided at the rate of 10% p.a. using straight line
method and accumulated in provision for depreciation acount. On January 01,
2016, one truck was sold for ` 15,000. On July 01, 2017, another truck (purchased
for ` 20,000 on Jan, 01, 2014) was sold for ` 18,000. A new truck costing ` 30,000
was purchased on October 01, 2016.
You are required to prepare trucks account, Provision for depreciation account
and for the years ended on December 2015, 2016 and 2017 assuming that the
firm closes its accounts in December every year.
Part B: Financial Accounting-II
19 Distinguish between revenue expenditure and capital expenditure. 1
20 Explain anyone limitation of the accounting from incomplete records. 1
21 Name any two Fixed Assets of a Sole Proprietorship Business House. 1
22 Name any two hardware components of a computer to be used in accounting. 1
23 The user oriented programs designed and developed for performing certain 1
specific tasks are called .
24 For an accounting information ,Choose the correct steps in ascending order from 1
the following;
5
a. Process, output , input
b. Output, input, process
c. Input, process , output
d. Process, input, output.
25 What is the full name of CPU ? 1
26 Compute cost of goods sold for the year 2017 with the help of the following 3
information.
` Sales 20, 00,000
Purchases 15, 00,000
Wages 1, 00,000
Stock (Apr. 01, 2016) 3, 00,000
Stock (March 31, 2017) 4,00,000
Freight inwards 1,00,000
27 Explain any two limitations of a computer system. 4
28 Mrs. Vandana runs a small printing firm. She was maintaining only some 6
records, which she thought, were sufficient to run the business.
On April 01, 2016, available information from her records indicated that she had
the following assets and liabilities:
Printing Press ` 5,00,000,
Buildings ` 2,00,000,
Stock ` 50,000,
Cash at bank ` 65,600,
Cash in hand ` 7,980,
Dues from customers ` 20,350,
Dues to creditors ` 75,340 and
Outstanding wages ` 5,000.
She withdrew ` 8,000 every month for meeting her personal expenses. She had
also introduced ` 15,000 during the year as additional capital. On March 31, 2017
her position was as follows :
Press ` 5, 25,000,
Buildings ` 2,00,000,
Stock ` 55,000,
Cash at bank ` 40,380,
Cash in hand ` 15,340,
Dues from customers ` 17,210,
Dues to creditors ` 65,680.
Calculate the profit made by Mrs. Vandana during the year using statement of
affairs method.
29 8
The following were the balances extracted from the books of Yogita as on March
31, 2017:
Debit Balances Amount Rs. Credit Balances Amount Rs.
Cash in hand 540 Sales 98,780
Cash at bank 2,630 Return outwards 500
Purchases 40,675 Capital 62,000
Return inwards 680 Sundry creditors 6,300
Wages 8,480 Rent 9,000
Fuel and Power 4,730
6
Carriage on sales 3200
Carriage on purchases 2040
Opening stock 5,760
Building 32,000
Freehold land 10,000
Machinery 20,000
Salaries 15,000
Patents 7,500
General expenses 3,000
Insurance 600
Drawings 5,245
Sundry debtors 14,500
Taking into account the following adjustments prepare trading and profit and loss
account and balance sheet as on March 31, 2017 :
(a) Stock in hand on March 31, 2017, was ` 6,800.
(b) Machinery is to be depreciated at the rate of 10% and patents @ 20%.
(c) Salaries for the month of March, 2017 amounting to ` 1,500 were
outstanding.
(d) Insurance includes a premium of ` 170 on a policy expiring on September 30,
2017.
(e) Further bad debts are ` 725. Create a provision @ 5% on debtors.
(f) Rent receivable ` 1,000.
OR
Prepare the trading, profit and loss account and Balance Sheet of M/s Mohit
Traders as on 31 March 2017
Debit Balances Amount Rs. Credit Balances Amount Rs.
Opening stock 24,000 Sales 4,00,000
Purchases 1,60,000 Return outwards 2,000
Cash in hand 16,000 Capital 1,50,000
Cash at bank 32,000 Sundry creditors 64,000
Return inwards 4,000 Bills payable 20,000
Wages 22,000 Commission received 4,000
Fuel and Power 18,000
Carriage Inward 6,000
Insurance 8,000
Building 1,00,000
Plant 80,000
Patents 30,000
Salaries 28,000
Furniture 12,000
Drawings 18,000
Rent 2,000
Debtors 80,000
7
6,40,000 6,40,000
Adjustments
` (a) Salaries outstanding 12,000
(b) Wages outstanding 6,000
(c) Commission is accrued 2,400
(d) Depreciation on building 5% and plant 3%
(e) Insurance paid in advance 700
(f) Closing stock 12,000
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KENDRIYA VIDYALAYA SANGATHAN
MODEL PAPER -1
ACCOUNTANCY –XI
MARKING SCHEME
MAX. TIME : 3 HRS. MAX. MARKS : 80
Q. ANSWERS MARKS
NO.
Part A: Financial Accounting-1
1 Understandability 1
2 The excess of revenues of a period over its related expenses during an 1
accounting year is profit. Profit increases the investment of the owners.
3 IGST means Integrated Goods and Services Tax. Revenue collected under 1
IGST is divided between Central and State Government as per the rates
specified by the Government.
4 iii) Return outward book. 1
5 Two or more transactions on the same date with similar accounts passed together 1
6 a. pay-in-slip. 1
7 Purpose : Provision is made for a known liability or expense pertaining to 1
current accounting period, the amount of which is not certain. On the other
hand reserve is created for strengthening the financial position of the business.
8 A) Errors of Commission 1
9 October 01, 2017 1
NOTE- Public holiday (here October 2, 2017), then due date is preceding date.
10 a. Identifying the transactions and communicating information (1*3=3)
b. Monetary
c. Chronological
11 (1*3=3)
9
DATE PARTICULARS LF AMT. Amt.RS.
Rs.
(i) Suspense A/c……. Dr. 1,000
To Sales Return A/c 1,000
(Sales returns book overcast by ` 1,000, now
corrected).
(ii) Purchases A/c …..Dr. 5,000
Sales A/c............. Dr. 5,000
To Suspense A/c
(Credit purchases wrongly recorded through 10,000
sales book, however suppliers account
correctly credited, now rectified).
(iii) Salary A/c ……Dr. 2,000
To Employee’s personal A/c 2,000
(Salary paid wrongly debited to employee’s
personal account, now corrected)
12 (0.5*6=3)
10
13 (.25*16=4)
14 (2*2= 4)
15 a. Conservatism Concept (1*6=6)
b. Dual Aspect Concept
c. Cost concept
d. Going Concern Concept
e. Business Entity Concept
f. Objectivity Concept
11
16 (1*6=6)
17 JOURNAL of Sohail Kirana Store (1*6=6)
DATE PARTICULARS LF AMT. Amt.RS.
Rs.
i. Drawings A/C ................ Dr. 33,000
To Purchases A/C 33,000
(Being Goods worth Rs. 33,000 withdrawn for
personal use.)
ii. Mehta &Co. A/C.............Dr. 1,200
To Bank A/C 1,200
(Being A cheque of Rs. 1,200 received from Mehta
&Co. dishonored. )
iii. Cash A/C ..................... Dr. 900
Bad Debt A/C ............... Dr. 2,100 3,000
To Sarla’s A/c
(Being Sarla who was a debtor of Rs. 3,000
declared insolvent paid 30 paisa in a rupee only.)
iv. Purchases A/C .......... Dr. 4,500
To Discount A/C 112
To Cash A/C 2,138
To Mahindra store 2,250
12
(Being Goods worth Rs. 5,000 purchased from
Mahindra store on a trade discount @10%. Half of
the payment was made in cash for a cash
discount @5%.)
v. Drawings A/C ...........................Dr. 4,000
To Interest on drawings A/C 4,000
(Being Interest on drawings Rs. 4,000 to be
charged in the journal proper.)
vi. Loss by Fire A/C……Dr. 630
To Purchases A/C 630
(Being The loss of stock by fire was evaluated as
Rs. 630. )
18 8
Balance in Truck A/c = Rs.90,000
Balance in Provision for Depreciation A/c = Rs. 18,750
13
Part B: Financial Accounting-II
19 If the benefit of an expenditure is exhausted within a year, it is treated as 1
revenue expenditure (also called expense). On the other hand, if the benefit of
expenditure lasts for more than a year it is treated as capita;l expenditure (also
called an asset).
20 The limitations of incomplete records are as follows : (any one) 1
(a) As double entry system is not followed, a trial balance cannot be prepared
and accuracy of accounts cannot be ensured.
(b) Correct ascertainment and evaluation of financial result of business
operations can not be made.
(c) Analysis of profitability, liquidity and solvency of the business cannot be
done. This may cause a problem in raising funds from outsiders and planning
future business activities.
(d) The owners face great difficulty in filing an insurance claim with an
insurance company in case of loss of inventory by fire or theft.
14
(e) It becomes difficult to convince the income tax authorities about the
reliability of the computed income.
21 Any two fixed assets- (0.5*2=1)
a. Plant & Machinery
b. Land & buildings
c. Furniture & fixtures
d. Motor vehicle
22 Hardware of computer consists of physical components such as keyboard, (0.5*2=1)
mouse, monitor and processor. These are electronic and electromechanical
components. (Any Two)
23 Application Software 1
24 C) Input, process , output 1
25 Central Processing Unit. 1
26 Computation of Cost of Goods Sold (0.25*6=
Particulars Amount ` 3)
Opening stock 3,00,000
Add
Purchases 15,00,000
Direct expenses :
Freight inwards 1,00,000
Wages 1,00,000
20,00,000
Less
Closing stock (4,00,000)
Cost of goods sold 16,00,000
27 In spite of possessing all the above capabilities, computers suffer from the (2*2= 4)
following limitations : (Any Two)
a. Lack of Commonsense : Computer systems as on date do not possess
any common sense because no full-proof algorithm has been designed to
programme common sense. Since computers work according to a stored
programme(s), they simply lack of commonsense.
b. Zero IQ : Computers are dumb devices with zero Intelligence Quotient
(IQ). They cannot visualise and think what exactly to do under a particular
situation, unless they have been programmed to tackle that situation. Computers
must be directed to perform each and every action, however, minute it may be.
Lack of Decision-making :
c. Decision-making is a complex process involving information,
knowledge, intelligence, wisdom and ability to judge. Computers cannot take
decisions on their own because they do not possess all the essentials of
decision-making. They can be programmed to take such decisions,
15
28 (2*3= 6)
29 (2+3+3=8)
16
17
OR
18
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