**Class 11 Accountancy Practice Paper Answer Key**
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#### **Section A: MCQs**
1. (a) Recording, classifying, and summarizing financial data
2. (c) Only cash transactions are recorded
3. (b) Assets = Liabilities + Owner’s Equity
4. (a) T-format
5. (c) Machinery Account
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#### **Section B: Short Answer Questions**
6. Advantages of accounting:
- Provides financial information to stakeholders
- Helps in decision-making
- Ensures compliance with legal requirements
7. Journal: A journal is the primary book of accounts where all financial
transactions are recorded chronologically, with proper narrations explaining each
transaction.
8. Difference between Cash Basis and Accrual Basis of Accounting:
- Cash Basis: Income and expenses are recorded only when cash is received or
paid.
- Accrual Basis: Income and expenses are recorded when they are earned or
incurred, regardless of cash flow.
9. **Trial Balance:**
| Particulars | Dr (₹) | Cr (₹) |
|------------------|--------|--------|
| Cash | 50,000 | |
| Bank Loan | | 20,000 |
| Purchases | 30,000 | |
| Sales | | 40,000 |
| Furniture | 10,000 | |
| **Totals** | 90,000 | 60,000 |
10. Objectives of Bank Reconciliation Statement:
- To reconcile differences between bank balance as per Cash Book and Passbook.
- To detect errors in accounting or banking records.
- To identify unrecorded transactions such as bank charges or interest.
11. Depreciation: It is the reduction in the value of a tangible asset over time
due to wear and tear or obsolescence.
Causes:
- Wear and tear due to usage.
- Obsolescence due to technological advancements.
12. Source documents: These are original documents that provide evidence of
financial transactions. Examples: Invoice, Receipt.
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#### **Section C: Long Answer Questions**
13. **Accounting Principles:**
(a) Consistency: The same accounting methods should be applied consistently
over periods.
(b) Prudence: Anticipate losses but not gains; record only realized revenues.
(c) Going Concern: The business is assumed to continue for the foreseeable
future.
14. **Journal Entries:**
| Date | Particulars | Dr (₹) | Cr (₹) |
|------------|-------------------------|-----------|-----------|
| 2025-01-01 | Cash A/c | 1,00,000 | |
| To Capital A/c | | 1,00,000 |
| 2025-01-02 | Furniture A/c | 10,000 | |
| To Cash A/c | | 10,000 |
| 2025-01-03 | Salary A/c | 5,000 | |
| To Cash A/c | | 5,000 |
15. **Ledger Account (Cash):**
| Date | Particulars | Dr (₹) | Cr (₹) | Balance (₹) |
|------------|-------------------------|-----------|-----------|-------------|
| 2025-01-01 | Balance b/d | 10,000 | | 10,000 |
| 2025-01-05 | Purchases | | 2,000 | 8,000 |
| 2025-01-10 | Sales | 5,000 | | 13,000 |
| 2025-01-15 | Rent | | 1,000 | 12,000 |
16. **Cash Book (Single Column):**
| Date | Particulars | Dr (₹) | Balance (₹) |
|------------|-------------------------|-----------|-------------|
| 2025-01-01 | Balance b/d | 12,000 | 12,000 |
| 2025-01-02 | Received from A | 5,000 | 17,000 |
| 2025-01-03 | Paid to B | (7,000) | 10,000 |
| 2025-01-04 | Deposited in Bank | (6,000) | 4,000 |
17. **Trial Balance:**
| Particulars | Dr (₹) | Cr (₹) |
|------------------|---------|---------|
| Capital | | 50,000 |
| Purchases | 25,000 | |
| Sales | | 40,000 |
| Machinery | 15,000 | |
| Salaries | 10,000 | |
18. Rules of Debit and Credit:
- **Real Account:** Debit what comes in, Credit what goes out.
- **Personal Account:** Debit the receiver, Credit the giver.
- **Nominal Account:** Debit expenses/losses, Credit incomes/gains.
19. **Rectification of Errors:**
(a) Purchase of ₹5,000:
Dr Purchases A/c ₹5,000
Cr Cash A/c ₹5,000
(b) Wages paid ₹3,000:
Dr Wages A/c ₹3,000
Cr Salaries A/c ₹3,000
(c) Sales of ₹7,000:
Dr X’s A/c ₹2,000
Cr Sales A/c ₹2,000
20. Types of Cash Book:
- Single column: Records only cash transactions.
- Double column: Records cash and bank transactions.
- Triple column: Records cash, bank, and discount.
21. Depreciation Process:
- Determine the asset’s cost and useful life.
- Select a method (e.g., Straight-line, Diminishing balance).
- Allocate the cost over its useful life.
22. **Bank Reconciliation Statement Example:**
- Balance as per Cash Book: ₹10,000
- Add: Cheque issued but not presented: ₹2,000
- Less: Bank charges not recorded: ₹500
- Adjusted Balance: ₹11,500
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### End of Answer Key
