Time Allowed: 3 Hours Practice Sample paper (Accountancy) MM:80

Class XI
General instructions:
1) All questions are compulsory.
2) Question 1 to 18 carries 1 mark each.
3) Question 19 to 20 carry 3 marks each.
4) Question 21 to 28 carries 4 marks each.
5) Question 29 to 32 carries 6 marks each.
Q1. Production manager is interested in recording the good industrial relation in the accounts.
Comment.

Q2. The term amortisation is used to write off:

a) Fixed assets
b) Intangible assets
c) Tangible assets
d) Wasting assets
Q3. When goods are sold on credit, the seller prepares
a) Cash mamo
b) Invoice
c) Accounting voucher
d) None of these
Q4. A machinery which costs Rs2,00,000 is depreciated at 25% per year using the written down
value method. At the end of three years, it will have a net book value of
a) Rs1,50,000
b) Rs84,375
c) Rs1,12,500
d) 1,00,000

Q5. Depreciation account is closed at the end of the year by transfer to the
a) Fixed asset account
b) General reserve account
c) Profit and loss account
d) Capital account
Q6. Goods were sold to Jogi for Rs4,000 and to Yogi Rs3,000. The transactions were recorded
properly in the sales book, but Rs3,000 was posted to Jogi, while Rs4,000 was posted to Yogi.
Identify the type of error.
Q7. Purchase of office furniture for Rs1,200 was debited to general expense account. It is
a) Clerical error
b) An error of principle
c) An error of omission
d) None of these

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Q8. Prepaid insurance in the trial balance is shown in the balance sheet in the assets side
because of
a) Accrual concept
b) Matching concept
c) Materiality concept
d) Cost concept
Q9. Operating profit = ____________ + non-operating expenses – Non-operating income.
Q10. A business receives its bank statement showing closing balance of Rs8,500 overdrawn. It is
found that there were unpresented cheques of Rs2,000 and uncredited deposits of Rs1,500.
Overdraft as per cash book is.
a) Rs5,000
b) Rs8,000
c) Rs9,000
d) Rs12,000

Q11. In which subsidiary book will journal entry for cash purchases will be
recorded.
Q12. The liabilities of the firm are Rs3,000; the capital of the proprietor is Rs7,000. The total
assets are
a) Rs7,000
b) Rs10,000
c) Rs4,000
d) None of these
Q13. Anil purchased, 1,000 Add Gell Roller pens @Rs50 each less 20% trade discount and 3% cash
discount if payment is made within 30 days. Anil paid Rs10,000 within 30 days and the
balance amount after 30 days period. Purchase account will be debited and discount
received will be credited respectively with
a) Rs40,000, Nil
b) Rs40,000, Rs300
c) Rs40,000, Rs1,200
d) Rs40,000 and Rs900

Q14. Cash discount is allowed @10% on Rs15,500; the amount paid will be ____________
Q15. When cash is withdrawn from the bank and two column cash book is maintained the entry in
the cash book is called ____________

Q16. What are the various types of subsidiary books.

Q17 On payment of expense, the respected expense is ___________ and not the _____________
personal account.
Q18. Bank statement shows debit balance of Rs30,000. Cheques deposited of Rs5,000 are not
credited by bank and cheques issued of Rs7,000 are not presented for payment, Balance as
per bank statement_______________

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Q19. Use Accounting Equation to show the effect of following transactions on assets, liabilities and
capital and also show the Balance Sheet.
1 Ram started business with cash of Rs1,80,000, Goods Rs50,000, Debtors Rs10,000, Furniture
Rs10,000 and Creditors Rs20,000.
2 Goods costing Rs6,000 sold to Amit at loss of 10%, out of which Rs2000 received in cash.
Cash deposited into bank Rs20,000.
3 Rent outstanding Rs5000
4 Received cheque from Amit Rs3,200 in full settlement of Rs3,400. Cheque deposited on
5 same date.
Insurance paid in advance Rs1000
6 Paid to creditors Rs18000 by cheque in full settlement of Rs20,000
7 Depreciated Furniture @10%
8 Unearned Interest Rs2000

Q20. From the following prepare journal, ledger and trial Balance:
1. Mohan commenced business with cash Rs1,00,000
2. Bought goods Rs5,000
3. Sold goods to Gopal Rs2,000
4. Paid trade expenses Rs1,000
5. Received cash from Gopal Rs3,950 and discount allowed Rs50.

Q21. Distinguish between provision and reserves?

Q22. Ram purchased computer on 1-4-2010 for Rs6,00,000. He charges depreciation on written
down value basis. On 31-3-2011 they sold the computer for Rs1,65,000 and incurred a loss
of Rs75,000. What was the rate of depreciation p.a.
Q23. Y started a business on 1st April, 2013 with a capital of `2,00,000 and a Loan of `75,000 from
the bank. During the year he had introduced additional capital of `60,000 and had
withdrawn `36,000 for personal use. On 31st March 2014 his assets were `3,80,000. Find out
his capital as on 31st March, 2014 and profit earned during the year 2013 – 14.

Q24. Calculate and cost of goods sold from the following information:
Net sales Rs1,00,000
Gross profit 25% on cost
Q25 Rectify the following errors found in the books of Mr. Suhail by passing entries:
(i) Credit sales to Gopal Rs10,000 were recorded in purchase book. However Gopal’s account was
correctly debited.
(ii) Cash sales Rs2,000 were posted to the debit of sales account as Rs5,000.
(iii) Furniture purchased for Rs10,000 wrongly debited to purchases account as Rs4,000.
(iv) Goods withdrawn by proprietor for personal use Rs1,000 were credited to sales account as
Rs1,600.
Q26. Explain the following concepts

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 a) Business entity
b) Accounting period
c) Conservatism concept
d) Accrual concept
e) Dual; concept
f) Money measurement concept
g) Matching concept
Q27. Y started a business on 1st April, 2013 with a capital of Rs2,00,000 and a Loan of Rs75,000
from the bank. During the year he had introduced additional capital of Rs60,000 and had
withdrawn Rs36,000 for personal use. On 31st March 2014 his assets were Rs3,80,000. Find
out his capital as on 31st March, 2014 and profit earned during the year 2013 – 14.
Q28. Enter the following transactions in a cash book with cash and bank columns:
2017 `
Jan 1 Cash in hand 2,200
Bank overdraft 3,250
Jan 5 Received a cheque from Rohan 5,700
Jan 9 Rohan cheque deposited into bank.
Jan 15 Received cheque from Lal 1,200
Jan 17 Rohan’s Cheque dishonoured
Jan 19 Lal’s cheque endorsed in favour of Mohan.
Jan 20 Income tax paid 900
Jan 31 Bank collected interest as securities. 700
Jan 31 Paid into Bank the entire balance after retaining `700 at office.
Or
Journalise the following transactions:
(i) An old machine with the book value of Rs.80,000 is exchanged for a new machine for
Rs.2,40,000. The old machine is valued at Rs.50,000 for exchange purposes by Machine Tools
Ltd.
(ii) Out of rent received, Rs.1,000 relates to next year.
(iii) Sold goods costing Rs.40,000 to Mohan at a profit of 20% on Sales Less 20% trade discount and
charged 8% central sales tax and paid cartage Rs.200 (to be charged from customer)
(iv) Purchase good for Rs.20,000 and Sales tax paid Rs.2,000.
(v) Sold household furniture for Rs.5,000 in cash and paid the money into business.
(vi) Rahul sold goods to us Rs.2,500.

Q29. Calculate the missing figure:

[Link]. Cost of goods sold Gross profit (Rs) Sales (Rs)

1. 1,50,000 20% of sales ?
2. ? 25% of cost of goods sold 5,00,000
3. 2,25,000 20% of cost of goods sold ?
4. ? 30% of sales 2,50,000
Or

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Prepare a Sales Book from the following transactions of Navketan Furniture House:
2016
May 1 Sold goods to Five Star Furniture Co., New Delhi, on Credit:
150 Chair @ Rs200 each
40 Tables @ Rs600 each
Discount 10%
May 3 Sold goods to Vishal Furniture House, Faridabad:
10 Almirahs @ Rs2000 each
5 Sofa sets @ Rs3000 each
Trade Discount 15%
Sold goods to Parkash Furniture House, Chandigarh:
100 Chairs @ Rs180 each
Less : 5%
May 4 Sold to Moonlight Furniture Co for Cash :
50 Chairs @ Rs175 each
Sold on credit to Sunil Machinery Store
May 5 2 old Machineries @ `500 per Machine
I Old Typewriter for `1200

Q30. From the following Trial Balance of Seema Garments as at 31st March, 2017, prepare
Adjustment entries, Trading and Profit & Loss Account and Balance Sheet:

Dr. (Rs) Cr. (Rs)

Stock at Commencement 15,000
Purchases and Sales 1,09,000 1,80,000
Manufacturing Wages 8,000
Fuel. Power and Lighting 12,000
Salaries 11,000
Income Tax 5,500
Loan to X at 10% p.a. 5,000
Interest on X’s Loan 300
Commission received 4,500
Rent 4,000
Rent Owing 600
Furniture (includes Furniture of 1,000 purchased on 1st 5,000
Oct., 2016)
B/R and B/P 6,000 1,600
Plant 72,000
Debtors and Creditors 28,000 13,000
Capital 1,00,000
Cash 19,500
3,00,000 3,00,000
Information:

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(i) Closing Stock was valued at Rs30,000.
(ii) Goods worth Rs5,000 were sold and dispatched on 28th March, 2017 but no entry was passed to this effect.
(iii) Goods costing Rs7,000 were purchased and included into stock but no entry was passed to record the purchases.
(iv) Create a Provision of 2% for Discount on Debtors.
(v) One-third of the commission received related to the next accounting period.
(vi) Depreciate furniture by 10% p.a.
(vii) Salaries for the Month of March, 2017 are still outstanding.

Q31. Prepare the bank reconciliations statement from the following particulars on 30-6-2017:
(i) Balance as per cash book (overdraft) Rs9,214.
(ii) On 29-6-2017, bank debited a sum of Rs1,650 in error.
(iii) Certain cheques, valued at Rs4,000 issued before 29-6-2017, only Rs1,200 were not cleared.
(iv) Direct payment deposited by customer into the bank Rs2,000.
(v) Interest on overdraft debited in the pass book but no intimation was given by the bank Rs200.
(vi) A bill for Rs4,000 relised by bank under rebate of Rs120. The full amount of the bill was credited
in the cash book.
Q32. Pass the journal entries from the following:
(i) Sold goods to Henry for Rs50,000 (List Price) on 10% trade discount and 4% cash discount and
received 60% amount by cheque.
(ii) Paid by cheque Rs16,800 as insurance premium for a period of 12 months starting 1 st December
2016. Financial year closes on 31st March every year.
(iii) Received a post dated cheque from Rohan on account of sale of goods Rs50,000.
(iv) Goods lost by fire Rs20,000 and insurance company admitted claim of Rs12,000.
(v) Paid rent of building Rs6,000. 60% of the building is used by proprietor for residential purpose.
(vi) Gave a charity – cash Rs2,000 and goods Rs5,000.