SUBJECT: ACCOUNTANCY (055)

CLASS XI
PART –A FINANCIAL ACCOUNTING - I
1 Given below are two statements, one labelled as Assertion (A) and the other labelled as 1
Reason (R):
Assertion (A): Suspense Account may show either a debit or a credit balance.
Reason (R): Suspense Account always shows a debit balance.
In the context of the above statements, which one 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 (R) is correct.
(d) Both (A) and (R) are incorrect.
2 Voucher is prepared for : 1
a. Cash received and paid b. Cash / Credit Sales
c. Cash / Credit Purchases d. All of the above
or
Mahendra a customer from whom an amount was due, declared insolvent and paid 60
paise in a rupee. Total bad debts from him were written off ₹ 7,200. What was the
amount actually due from him
a. ₹ 24,000 b. ₹ 18,000
c. ₹ 12,000 d. ₹ 15,000

3 Depreciation is calculated from the date of ………….. 1

a. Purchase of Asset b. Receipt of asset at the business
premises
c. Asset put to use d. Asset installed

or
Debit balances show:

a. Profits and Incomes b. Liabilities and Incomes

c. Assets and Expenses d. Sales Return Book

4 Which qualitative characteristics of accounting information is reflected when accounting 1

information is clearly presented?
a. Relevance b. Comparability
c. Reliability d. Understandability
or
Which of the following is included in qualitative characteristics of accounting information?

a. Relevance b. Comparability
c. Reliability d. All of the above
5 Bank Reconciliation Statement is : 1
a. A statement prepared by Bank b. A statement prepared by customer
c. A part of Cash Book d. A part of Pass Book
6 On intra-state sale of goods, which of the following account is credited: 1
a. Input IGST A/c b. Output CGST A/c
c. Output IGST A/c d. Output SGST A/c
or
GST Collected on Sales (Output GST) is a………… for the seller
a. Cost b. Liability
c. Asset d. Income

7 Which of the following is not a Current Liability: 1

a. Creditors b. Bank Overdraft
c. Outstanding Expenses d. Prepaid Expenses

8. Assets (Except Securities) may be valued under Ind- AS on:

a. Historical Cost b. Fair Value
c. Both Historical Cost and Fair d. Market Price
Value

9. The W.D.V. of an asset after three years of depreciation on reducing balance method @ 1
10% p.a. is ₹ 1, 45,800. What was its original value?
a. ₹ 1,80,000 b. ₹ 2,00,000
c. ₹ 1,89540 d. ₹ 1,62,000

10. Which accounting concept you would follow in dealing with the situation given below 1
“During the year, the company purchased Pencils worth ₹ 150. These had all
been issued from stock and were still in use at the end of the year.”
a. Money Measurement b. Materiality
c. Accrual d. Going Concern

11. Creation of reserve is : 1

a. useless b. illegal
c. necessary d. not necessary

12. Which one is the advantage of accounting? 1

a. Window dressing b. Replacement of Memory
c. Shows the present value of the d. Shows the effect of price level
business changes
13. Given below are two statements, one labelled as Assertion (A) and the other labelled as 1
Reason (R):
Assertion (A): Accounting records only the transactions of financial nature.
Reason (R): goods taken from the business by the proprietor for his personal use is not
of financial character and hence not will be recorded.
In the context of the above statements, which one 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) (A) is true, bur (R) is false.
(d) (A) is false, bur (R) is true.
 st
14. Following information is provided by Yashwant for the year ended March 31 2023. Net 1
profit as per Cash Basis of Accounting will be …..
Credit Sales ₹ 12,50,000
Cash Sales ₹ 40,50,000
Expenses (out of which ₹ 35,000 is still to be paid ) ₹ 5,00,000
a. ₹ 48,35,000 b. ₹ 57,65,000
c. ₹ 58,00,000 d. ₹ 35,85,000

15. Rent for the month of March, 2023 is not paid. Under which concept it should be 1
recorded as expense for the year ended 31st March 2023.
e. Money Measurement f. Materiality
g. Accrual h. Going Concern

16. Given below are two statements, one labelled as Assertion (A) and the other labelled as 1
Reason (R):
Assertion (A): Bank Reconciliation Statement is not a part of Double Entry
Book-Keeping.
Reason (R): It is a method to ensure that there are no errors in recording bank
transactions in the cash book.
In the context of the above statements, which one of the following is correct.
(e) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(f) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(g) Only (R) is correct.
(h) Both (A) and (R) are incorrect.
17. Prepare a Trial Balance from the following information : 3
Prepaid Expenses 5,000
Outstanding rent 2,000
Bad debts recovered 4,000
Interest on Investment 1,000
Due to Mohan 5,000
Bank Overdraft 2,000
Discount allowed 800
Due from Vinod 1,200
Investment 15,000
Patents 4,000
Machinery 6,000
Capital 18,000

18. Record the following transactions in the Sales Book of Durga Electronics, Lucknow: 3
2023
March 1: Sold to Ruchira Electronics, Lucknow, vide invoice No. 123
5 BPL T.V. @ ₹ 20,000 each.
Less: Trade Discount @ 20%.
March 2: Sold to Garun Electronics, Kanpur, vide invoice No. 124
10 Washing Machines @ ₹ 8,000 each.
Less: Trade Discount @ 25%.
March 3: Sold to Hira Bros, Pune, vide Cash Memo No. 125
15 BPL Mixture & Juicer @ ₹ 2,000 each.
Less: Trade Discount @ 10%.
March 4: Sold to Rahat Electronics, Varanasi, vide invoice No. 126
8 Music System @ ₹ 15,000 each.
10 Colour T.V. Sets @ ₹ 22,000 each
Less: Trade Discount @ 20%.
19 Distinguish between Provisions and Reserves on the basis of : 3
a. Meaning
b. Objective
c. Utilization for dividends.
20 Prepare accounting equation from the following : 3
a. Started business with cash ₹ 2,00,000 and goods worth ₹ 40,000.
b. Sold 50% of the above goods at a profit of ₹ 4,000 to Raghunath.
c. Raghunath paid 90% of his amount in final settlement.

21 Give the journal entries corresponding to the narration given below: 4

DATE PARTICULARS L Amount Amount
F
2023 ₹ ₹
Apr 1 …………………. A/c Dr. ……….
To..................A/c ……….
To..................A/c ……….
( Goods for ₹ 8,000 purchased at 20% trade
discount and 5% cash discount)
Apr 8 …………………. A/c Dr. ……….
To..................A/c ……….
( Goods costing ₹ 15,000 sold at a profit of
33 1/3 % on cost)
Apr …………………. A/c Dr. ……….
10 To..................A/c ……….
( Goods costing ₹ 4,000 lost by fire)
Apr …………………. A/c Dr. ……….
16 To..................A/c ……….
( Plant purchased for ₹ 1,00,000 and
installation charges paid ₹ 2,000)

22. Pass Journal entries to rectify the following errors: 6

(a) ₹ 350 paid is cash for a typewriter was charged to Office Expenses A/c.
(b) Goods amounted to ₹ 660 sold to Wilson, were correctly entered in Sales Book
but posted to Wilson’s Account as ₹ 760.
(c) The total sales for the month were overcast by ₹ 1,000.
(d) Goods worth 130 returned by Gita, were entered in Sales Book and posted
therefrom to the credit of Gita’s personal account.
(e) Wages paid for the construction of office, debited to wages account ₹ 13,000.
(f) ₹ 10,000 paid to Garg Furniture Store for the purchase of furniture as per their
Cash Memo were debited to ‘Furniture’ A/c.
23 Enter the following transactions in a Cash Book with Cash and Bank Columns. 6
2023 ₹
Feb.1 Bank overdraft 12,000
Cash-in-hand 2,300
5 Purchased goods for ₹ 40,000; Trade discount 15%
6 Sold goods for ₹ 30,000; Trade discount @10%
7 Cheque received from Apex Furnitures 4,000
Discount allowed 200
9 Cheque received from Apex Furnitures deposited in bank
12 Cheque paid to Nimesh Bros. 2,500
Discount received 50
15 Apex Furnitures cheque dishnoured
20 Money withdrawn from bank for office use 3,400
23 Fees of children paid by cheque from business account 75
25 Cheque received from Hemendra and endorsed it to Sanjana 4,500
27 Bank Charges 20
31 Paid into Bank the entire balance after retaining ₹ 700 at office

24. From the following particulars prepare a Bank Reconciliation Statement in the Books of 6
th
Nandan Traders as on 28 February 2023 :-th
i. Balance as per Pass Book on 28 February 2023 ₹ 6,000.
ii. Out of total cheques amounting to ₹ 37,500 drawn by Nandan Traders,
cheques aggregating ₹ 5,000 were encashed in March 2023.
iii. Out of total cheques amounting to ₹ 12,000 deposited, Cheques aggregating
₹ 7,500 were credited in March 2023.
iv. Bank has allowed interest ₹ 303 on his bank balance.
v. Amount wrongly debited by bank ₹ 2,400.
vi. A cheque of ₹ 1,200 was entered in Cash Book in February 2023, but
was sent to bank in March 2023.
vii. A cheque of ₹ 13,300 paid into bank was returned dishonored but no
intimation was received from the bank till February 2023.

25. Green Limited purchased on 1st April, 2020 a plant for ₹ 80,000. On 1st July, 2021, it 6
purchased additional Plant costing ₹ 48,000. On 1st December, 2022, the plant purchased
on 1st April, 2020 was sold off for ₹ 42,000 and on the same date fresh plant
was
purchased at the cost of ₹ 75,000.
Depreciation is provided at 10% per annum on the Diminishing Balance Method
every year. Account are closed each year on 31 st March. Show the Plant Account for
three years.
Or
The following balances appear in the books of Zoo Ltd. As on 01-04-2022:
Machinery Account 5,00,000
Provision for Depreciation Account 2,25,000
The machinery was depreciated at 10% p.a. on the Fixed Instalment Method; the accounting
year being April – March. On 1.10.2022, a machinery which was purchased on 01.07.2019 for
₹ 1,00,000 was sold for ₹ 42,000 and on the same date a fresh machinery was purchased for
₹ 2,00,000. Prepare the Machinery Account and Provision for Depreciation Account for
the year ended 2022-23.
 PART – B FINANCIAL ACCOUNTING – II
26. The correct sequence for preparation of Final Accounts is: 1
1. Preparation of Trial Balance
2. Balancing of Accounts.
3. Preparation of annual financial Statements.
4. Passing Adjusting Entries.
Select the correct answer from the code given below;
a. 4,2,1,3 b. 2,4,3,1
c. 2,1,4,3 d. 4,2,3,1

27 Balance Sheet is prepared with the balances of which of the following: 1

a. All balances in ledger b. Balances of Personal Accounts
c. Balances of Real Accounts d. Balances of Personal and Real
Accounts
or
which of the following will be treated as drawings of the proprietor :
a. Income Tax b. Life Insurance Premium
c. Both a & b d. Neither a nor b

28 Manoher’s Profit & Loss Account shows net profit of ₹ 1,76,000 before charging 1
commission to manager. Provide for manager’s commission at 10% on the net profit after
charging such commission. Net profit and managers commission is …
a. ₹ 1,76,000 and ₹ 17,600 b. ₹ 1,58,400 and ₹ 17,600
c. ₹ 1,60,000 and ₹ 16,000 d. None of the above
or
Indirect Expenses are transferred to
a. Trading Account b. Profit & Loss A/c
c. Balance Sheet d. All of the above

29 Opening capital ₹ 70,000; Profit for the year ₹ 20,000; Drawings ₹ 7,000. During the 1
year proprietor sold ornaments of her mother for ₹ 22,000 and invested the same in
the business. Closing Capital is……
a. ₹ 1,03,000 b. ₹ 1,05,000
c. ₹ 1,09,000 d. ₹ 75,000

30 State with reason whether following are capital expenditure or revenue expenditure 3
i. Second-hand car was purchased for ₹ 1,35,000. ₹ 15,000 were spent on
its overhauling.
ii. ₹ 25,000 spent on whitewashing of old factory building.
iii. ₹ 22,500 paid for the installation of a new machine.
31 Compute Operating Profit from the following: 3
Revenue from operation (Sales) ₹
44,40,000 Cost of goods sold ₹
40,00,000
Opening Stock ₹ 4,40,000
Purchases ₹ 40,00,000
Closing Stock ₹ 4,40,000
Selling and distribution expenses ₹ 18,300
Office and Administrative expenses ₹ 3,46,500 (including interest on loans ₹
 22,000 ; Loss on sale of furniture ₹ 35,000 ; Donation ₹ 5,100 and Loss by fire ₹
20,000)

32 Satendra started business on 1st April 2022 with a Capital of ₹ 10,000. On 1st July, 2022 4
he borrowed from his friend Dwarika a sum of ₹ 4,000 @ 9% p.a. (interest not yet paid)
for business and also introduced further capital of ₹ 1,500. On 31st March 2023,
his
position was: Cash ₹ 600; Stock ₹9,400; Debtors ₹7,000 and Creditors ₹ 6,000.
Ascertain his Profit or Loss taking into account ₹ 2,000 for his drawings during the
year.
33 The following balances appeared in the Trial Balance of Kanpur Mobiles as at 31st March 4
2023:
Sundry Debtors ₹ 3,05,000
Bad Debts ₹ 5,000
Provision for bad debts ₹ 20,000
The firm agreed to record the following adjustments in the books of accounts.
Further Bad Debts ₹ 3,000; maintain provision for bad debts 10%. Show the treatment of
the above adjustments in Profit & Loss Account and in Balance sheet as on 31 st March
2023.
6
st
34. Prepare Trading and Profit & Loss Account for the year ended on 31 March, 2023 from
particulars;
the following Trial Balance
Dr. ₹ Cr. ₹
Cash on hand 2,000
Cash at Bank 18,000
Purchases and Sales 2,20,000 3,50,000
Return inwards and Return outwards 6,000 7,500
Carriage inwards 4,400
Carriage outwards 2,100
Fuel and Power 15,500
Stock as on 01-04-2022 36,000
Bad debts 6,200
Bad debts provision 2,500
Debtors and Creditors 82,000 30,000
Capital 2,17,000
Investments 20,000
Interest on investments 2,000
Loan from X @ 18% 10,000
Repairs 1,520
General Expenses 10,600
Land and Buildings 1,80,000
Wages and Salaries 18,000
Sundry receipts 120
Bills Payable 5,200
Stationery 2,000
6,24,320 6,24,320

Additional information:
a. Closing stock is valued at ₹ 50,000.
b. Entire stationery was used by the proprietor for own purpose.
 c. Write-off ₹ 2,000 as bad debts and provision for Doubtful Debts is to
be maintained at 5% on Debtors.
d. Loan from X was taken on 1st August 2022. No interest has been paid so far.
e. Included in general expenses is insurance premium ₹ 1,200 paid for one
year ending 30th June 2023.
f. 1/3rd of Wages and Salaries is to be charged to Trading Account and balance
to P/L A/c.
Or
Prepare Profit & Loss Account and Balance Sheet as on 31st March, 2023.
Particulars Dr. ₹ Cr. ₹
Capital 3,20,000
Building 4,00,000
Motor Bike 40,000
Gross Profit 2,83,000
Bad debts 3,000
Bad debts provision 7,000
Bank loan 50,000
Interest on Bank loan 3,000
Commission 9,000
Motor Bike expenses 4,000
Salaries 44,000
Cash on hand 29,200
Debtors and Creditors 30,000 20,000
Income Tax 12,000
Income Tax paid in advance 4,000
Interest on advance payment of income tax 200
Closing Stock 1,20,000
6,89,200 6,89,200

Additional information:
a. Commission includes ₹ 3,000 received in advance.
b. Salaries have been paid for 11 months.
c. Bank loan has been taken at 10% p.a. interest.
d. Depreciate building by 5% and Motorbike by 15%.
e. Write-off ₹ 2,000 as bad debts and provision for Doubtful Debts is to be maintained at
5%.