SHAIL PUBLIC SCHOOL

annual Examination (2022-23)

CLASS – 11th
SUBJECT:- account
//TIME: 3 HRS. MM: 70
General Instructions -
This question paper contains 34 questions. All questions are compulsory.
1. This question paper is divided into two parts, Part A and B.
2. Question 1 to 17 and 27 to 29 carries 1 mark each.
3. Questions 18 to 20 and 30 to 32 carries 3 marks each.
4. Questions from 21 to 23 carries 4 marks each.
5. Questions from 24 to 26, 33 and 34 carries 6 marks each.

SECTION-A

1. The vouchers which are prepared for transactions not involving cash, i.e. non-
cash transactions, are known as ___________ vouchers.
a) Token b) Credit c) Transfer d) Unilateral
2. Assertion (A): Statements prepared through management account are helpful in
decision making process.
Reason (R): The information provided by management accounts is financial and
non-financial as well.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
3. Good will account is a:
a) Nominal Account b) Real Account
c) None of these d) Personal Account
4. What shall be the amount of Capital if Cash is Rs 5,000; Furniture Rs 12,000;
Stock Rs 30,000 and Creditors Rs 6,000?
a ) Rs 41,000 b) Rs 43,000 c) Rs 53,000 d) Rs 47,000
OR
Purchase of machine by cash means:
a) increase in asset and decrease in the asset
b) none of these
c) the decrease in asset and increase in capital
d) increase in asset and decrease in liability

5. Source of documents are

 a) Cash Memo
b) Both Cash Memo and Invoice
c) Neither Cash Memo Nor Invoice
d) Invoice
6. Income statement include
a) Profit and loss account only
b) Trial Balance only
c) Balance sheet only
d) Statement of profit and Loss
OR
Which of the following is not a limitation of accounting?
a) Evidence in Legal Matters
b) Based on accounting conventions
c) Incomplete Information
d) Omission of Qualitative Informations
7. Which of the following correctly differentiates between provision and reserves?
i. A provision is a charge against profit whereas reserve is an appropriation of
profit.
ii. Provision is made for a known liability or expense the amount of which is not
certain whereas reserve is created for strengthening the financial position of the
business.
iii. Provision is deducted before calculating taxable profits whereas a reserve is
created from profit after tax and therefore it has no effect on taxable profit.
iv. All of these
a) Option (ii)
b) Option (i)
c) Option (iii)
d) Option (iv)
8. Rule of Debit and Credit for Impersonal account is
a) Dr. the receiver and Cr the giver
b) Dr. what goes out and Cr what comes in
c) Dr. all expenses and Cr all gains & Dr. what goes out and Cr what
comes in
d) Dr. all expenses and Cr all gains
OR
When a total of the debit side of an account exceeds the total of its credit side, the
account is said to have .
a) Debit Balance
b) None of these
c) Debit as well as credit balance
d) Credit Balance
Question No. 9 to 10 are based on the given text. Read the text carefully and
answer the questions:
A business purchased goods for Rs.2,00,000 and sold 75% of such goods during
accounting year ended 31st March 2020. The market value of remaining goods was
Rs.43,000. Accountant valued closing stock at cost. According to him,
i. Owner of the business is treated as creditor to the extent of his capital;
ii. All expenses incurred to earn revenue or a particular period should be
charged against that revenue to determine the net income:
Financial statements are prepared on 31st March every year.
9. A business purchased goods for Rs. 200,000 and sold 75% of such goods during
the accounting year ended 31st March, 2020. The market value of the remaining
goody was Rs.43,000 Accountant valued closing stock it cost: Identify the concept
violated in the above situation.
a) Matching
b) Conservatism
c) Business entity
d) Accounting period
10.Under which concept owner of the business is treated as creditor to the extent of
his capital.
a) Conservatism
b) Business entity
c) Matching
d) Accounting period
11. Match the following. Options are

a. General reserve i. reserve are created for specific purpose

b. Specific reserve ii. reserve may or may not involve any receipts of cash
c. Capital reserve iii. created in business for rainy day
a) a - (ii), b - (iii), c - (ii)
b) a - (iii), b - (i), c - (ii)
c) a - (iii), b - (ii), c - (i)
d) a - (ii), b - (i), c - (iii)
12.Which of the following is not a fixed asset?
a) Computer
b) Furniture
c) Building
d) Cash in hand
13. Return of goods purchased on credit to the suppliers will be entered in
Book.
a) Purchase
b) Sales
c) Sales Return
d) Purchase Return
14. When goods are returned to supplier assets and are by same amount.
a) liabilities, increased
 b) assets, decreased
c) liabilities, decreased
d) assets, increased
15. Which of the following is not a fixed asset?
i. Balance with bank
ii. Plant and Machinery
iii. Building
iv. Goodwill
a) B only
b) A only
OR
Out of the following assets, which one is not an intangible asset?
a) Patents
b) Trade Mark
c) Machinery
d) Goodwill
16. Goods sold for Cash Rs 25,000 plus 12% IGST. Sales A/c will be credited
by:
a) Rs 28,000
b) Rs 22,000
c) Rs 25,000
d) None of these
17. How secret reserve can be created
a) All of these
b) By charging capital expenditure to revenue
c) Under valuating stock
d) By making excessive provisions
18. When an account is said to have a debit balance and credit balance?
OR
Pass Journal entry for purchase of goods by Amrit, Delhi from Add Gel Pens,
Delhi for ₹ 15,000 less Trade Discount 10% and Cash Discount 3%. CGST and
SGST is levied @ 6% each. Assume payment is made at the time of purchase.

19. What is meant by Accounting Standard? State any two benefits of it.
20. Distinguish between debtors and creditors.

21. Following balances were extracted from the books of Ravinder Associates as at
31st March, 2017:
 (R (Rs
s) )
Sundry Debtors 4,10,000 Stock (April 1, 2016) 2,30,000
Sundry Creditors 80,000 Premises 12,00,000
Rent and Taxes 48,000 Fixtures & Fittings 3,10,000
Purchases 34,00,000 Bad Debts written off 8,000
Sales 56,00,000 Rent received from sub-let of part of premises 30,000
Trade Expenses 12,000 Loan from Mukul 1,50,000
Returns Outwards 80,000 Interest on Mukul's Loan 15,000
Returns Inwards 1,20,000 Drawings 40,000
Expenses 4,000 Cash in hand 75,000
Motor Vehicles 6,50,000 Stock on 31st March, 2017
Electricity 25,000 (not adjusted) 3,80,000

You are required to prepare the trial balance treating the difference as his capital.
22 .Record the following transactions in a cash book with cash and bank columns:
2017 ₹
Jan. 1 Bank overdraft 12,000
Cash in hand 2,300
Jan. 7 Cheque received from Ram ₹ 4,000 and discount allowed ₹ 200
Jan. 8 Deposited the above cheque into Bank 4,000
Jan. 12 Banked 200
Jan. 15 Received a money order from Gopal 500
Jan. 16 Money is withdrawn from Bank for office use 300
Jan. 18 Bank Charges 20
Jan. 20 Interest on bank overdraft 1,000

23. From the following particulars ascertain the balance that would appear in the
Bank Pass Book of A at 31st December 2013:
i. The bank overdraft as per Cash Book on 31st December 2013 ₹ 63,400.
ii. Interest on overdraft for 6 months ending 31st December 2013, ₹ 1,600 is
entered in the Pass Book.
ii. Bank charges of ₹ 300 for the above period are debited in the Pass Book.
iv. Cheques issued but not cashed prior to 31st December 2013 amounted to ₹
11,680.
v. Cheques paid into bank but not cleared before 31st December 2013 were for
₹ 21,700.
vi. Interest on investments collected by the bank is credited in the Pass Book ₹
12,000.
OR
 On 31st March 2018, the Bank Pass Book of Naresh & Co. showed an overdraft of
Rs.10,700. From the following particulars prepare Bank Reconciliation Statement
i. Cheques issued before 31-03-2018 but presented for payment after that date
amounted to Rs.900.
ii. Cheques paid into the Bank but not collected and credited until 31-03- 2018
amounted to Rs.2,200.
iii. Interest on overdraft amounting to Rs.1,200 did not appear in the Cash
Book.
iv. Rs.5,000 being interest on investments collected by the Bank and credited in
the Pass Book were not shown in the Cash Book.
v. Bank charges of Rs.50 were not entered in the Cash Book.
vi. Rs.800 in respect of dishonoured cheque were entered in the Pass Book but
not in the Cash Book.
24. On the basis of the narrations, fill in the missing values:
Journal Entries
Amount Amount
Date Particulars L.F. (Rs) Cr. (Rs)
(i) Dr.

To
(Being the bank draft of Rs 10,000 issued to Suman, bank charges Rs 100)
Dr. 10,000
To 10,000
(Being the cheque of Ranjan dishonoured)
(ii)
Dr.
To
To
(iii)
(Being the purchase of goods of Rs 30,000; received cash discount @ 2%)
Dr.

To
(iv)
(Being the sale of goods of Rs 30,000 allowed cash discount @ 3% )
Dr.
To
(Being the goods costing Rs 15,000 lost in the fire)
(v)
Dr.

To 10,000
(vi) 1
(Being the rent paid, th of the premises used for residence)
4
 Dr.
To
To
To

(Being the machinery (cost Rs 2,00,000) recorded, adjusting advance

(Rs 20,000), old machine (Rs 10,000 cost) and balance by payment by che
(vii)
que)
Dr. 20,000
To 20,000
(Being a computer out of stock used for office purposes)
(viii)
Dr.
To
(Being the computer (stock) costing Rs 15,000 taken for domestic use)
(ix)
(x) Dr.

To

To
(Being the salaries (Rs 40,000) and rent (Rs 15,000) outstanding)

OR

Journalise the following transactions:

2017 Amount (₹)
Dec.01 Hema started business with cash 1,00,000
Dec.02 Open a bank account with SBI 30,000
Dec.04 Purchased goods from Ashu 20,000
Dec.06 Sold goods to Rahul for cash 15,000
Dec.10 Bought goods from Tara for cash 40,000
Dec.13 Sold goods to Suman 20,000
Dec.16 Received cheque from Suman 19,500
Discount allowed 500
Dec.20 Cheque given to Ashu on account 10,000
Dec.22 Rent paid by cheque 2,000
Dec.23 Deposited into bank 16,000
 Dec.25 Machine purchased from Parigya 10,000
Dec.26 Trade expenses 2,000
Dec.28 Cheque issued to Parigya 10,000
Dec.29 Paid telephone expenses by cheque 1,200
Dec.31 Paid salary 4,500

Trial Balance of Rahul did not agree. Rahul put the difference to Suspense Account.
Subsequently, he located the following errors:
i. Wages paid for the installation of Machinery Rs 600 was posted to Wages A/c.
ii. Repairs to Machinery Rs 400 debited to Machinery A/c.
iii. Repairs paid for the overhauling of second-hand machinery purchased Rs 1,000
was debited to Repairs A/c.
iv. Own business material 8,000 and wages Rs 2,000 were used for the construction
of the building. No adjustment was made in the books.
v. Furniture purchased for Rs 5,000 was posted to Purchases A/c as Rs 500.
vi. Old machinery sold to Karim at its Book value of Rs 2,000 was recorded
through sales book.
vii. Total of Sales Returns Book Rs 3,000 was not posted to the ledger.
Rectify the above errors and prepare Suspense Account to ascertain the original
difference in Trial Balance.
OR
There was a difference of Rs. 8,595 in a trial balance. It has been transferred to debit
side of suspense account. Later on following errors were discovered. Pass the
rectifying entries and prepare the suspense account.
i. Rs 283 discount received from a creditor had been duly entered in his account
but not posted to discount account.
ii. Goods bought from a merchant for Rs 770 had been posted to the credit of his
account as Rs. 7,700.
iii. Rs 6,000 owing by a customer had been omitted from the schedule of sundry
debtors.
iv. An item of Rs 2,026 entered in the sales return book had been posted to the
debit of the customer who returned the goods.
4. On 1st April, 2016 a firm purchased machinery for ₹ 3,00,000. On 1st October,
2016, additional machinery costing
₹ 1,50,000 was purchased On 1st October, 2017, the machinery purchased on 1st
April, 2016 having become obsolete, was sold for ₹ 1,35,000. On 1st October,
2018, new machinery was purchased for ₹ 3,75,000 while the machinery purchased
on 1st October, 2016 was sold for ₹ 1,27,500 on the same day. The firm provides
depreciation on its machinery @ 10% per annum on original cost on 31st March
every year.
Show Machinery Account, Provision for Depreciation Account and Depreciation
Account for the period of three accounting years ending 31st March, 2019.
OR
 You are given following balances as on 1st April 2014:
Plant & Machinery A/c Rs 25,00,000 Provision for Depreciation A/c Rs 5,80,000
Depreciation is charged on the plant at 20% p.a. by the diminishing balance method. A
piece of machinery purchased on 1st April 2012 for Rs 5,00,000 was sold on 1st
October 2014 for Rs 3,00,000.
Prepare the Plant & Machinery Account and Provision for Depreciation Account for the
Year ended 31st March 2015. Also, prepare Machinery Disposal Account.
Part B
5. The time between the acquisition of an asset for processing and its conversion into
cash and cash equivalent is called
a) Production cycle
b) Operating cycle
c) None of these
d) Time gap
OR
is the arrangement of various assets and liabilities in a particular order
a) Marshalling
b) Grouping
c) All of these
d) Balancing
6. Loss on sale of an old car is debited to:
a) Profit and Loss A/c
b) Depreciation A/c
c) None of these
d) Car A/c

7. Closing Stock, if given outside the Trial Balance is shown in:

a) Profit and Loss Account
b) Trading Account and Balance Sheet
c) Profit and Loss Account and Balance Sheet
d) Balance Sheet
OR
Calculate provision for doubtful debt. If debtor closing balance is Rs.3,400 and
provision for the reserve of doubtful debts at 10% on sundry debtors
a) Rs.2,060
b) Rs.3,400
c) Rs.340
d) Rs.3,060
8. Distinguish between Capital Receipts and Revenue Receipts.
9. From the following information, prepare the Trading Account for the year ended
31st March, 2017:
 Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000;
Freight and Packing ₹ 15,000; Packing Expenses on Sales ₹ 20,000; Depreciation
₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.
10. Why is it necessary to create a provision for doubtful debts at the time of
preparation of final accounts?
11. Following is the Trial Balance of Shamit on 31st March, 2019. Pass closing entries
and prepare Trading and Profit and Loss Account for the year ended 31st March,
2019.

TRIAL BALANCE as on 31st March, 2019

Particulars Dr.(₹) Cr.(₹)

Capital A/c - 1,00,000
Stock A/c (1st April, 2018) 20,000 -
Cash at Bank 10,000 -
Cash In Hand 4,400 -
Machinery A/c 60,000 -
Furniture and Fittings A/c 13,600 -
Purchases A/c 1,50,000 -
Wages A/c 1,00,000 -
Power and Fuel A/c 30,000 -
Factory Lighting A/c 2,000 -
Salaries A/c 70,000 -
Discount Allowed A/c 5,000 -
Discount Received A/c - 3,000
Advertising A/c 50,000 -
Sundry Office Expenses A/c 40,000 -
Sales A/c - 5,00,000
Sundry Debtors 85,000 -
Sundry Creditors - 37,000
Total 6,40,000 6,40,000

Value of Closing Stock as on 31st March, 2019 was ₹ 27,000

OR
From the following trial balance, prepare the trading and profit and loss account for
the year ended 31st March 2013 and the balance sheet as at that date
Name of Account Debit A Name of Account Credit A
mount ( mount (
Rs.) Rs.)

Debit Balances Rent, Rates, and Taxes 800

 Sundry Debtors 1,500 Salaries 2,000
Stock on 1 st April 2012 5,000 Drawings 2,000
Land and building 10,000 Purchases 10,000
Cash in hand 1,600 Office expenses 2,500
Cash at bank 400 Plant and machinery 5,700
Wages 3,000 Credit Balances
Bills Receivable 2,000 Capital 25,000
Interest 200 Interest 600
Bad debts 500 Sundry creditors 7,000
Repairs 300 Sales 17,000
Furniture and fixtures 1,500 Bills payable 400
Depreciation 1,000
On 31st March 2013, the stock was valued at Rs. 10,000.
. From the following Trial Balance of Mr. Alok, prepare Trading and Profit & Loss
Account for the year ending 31st March, 2019, and a Balance Sheet as at that date:-
Interest on Loan 500
Discount Allowed 2,435
Bad-Debts 1,810
Furni0ture 4,480
2,80,550 2,80,550

The following adjustments are to be made :

i. Stock in the shop on 31st March, 2019 was ₹ 64,480.

ii. Half the amount of X's Bill is irrecoverable.
iii. Create a provision of 5% on other debtors.
iv. Wages include ₹ 600 for erection of new Machinery.
v. Depreciate Machinery by 5% and Furniture by 10%.
vi. Commission includes ₹300 being Commission received in advance.
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OR
From the following trial balance extracted from the books of MMN, prepare the
trading and profit and loss account for the year ended 31st December, 2013 and the
balance sheet as at that date.
Name of Accounts Debit Balance(Rs) Credit Balance(Rs)
Capital 90,000
Drawings 6,480
Land and buiding 25,000
 Plant and machinery 14,270
Furniture and fixtures 1,250
Carriage inwards 4,370
Wages 21,470
Salaries 4,670
Provision for bad debts 2,470
Sales 91,230
Sales return 1,760
Bank charges 140
Coal, gas and water 720
Rates and taxes 840
Discount 120
Purchases 42,160
Purchases return 8,460
Bills receivable 1,270

Trade expenses 1,990

Sundry debtors 37,800
Sundry creditors 12,170
Stock (1st January, 2013) 26,420
Apprentice premium 500
Fire insurance 490
Cash at bank 13,000
Cash in hand 850
Total 2,04,950 2,04,950

Additional Adjustments
Charge depreciation on land and building at 2 1 %, on plant and machinery
account at 10% and on furniture and fixtures at 10%. Make a provision of
5% on debtors for doubtful debts. Carry forward the following unexpired
amounts.

i. Fire insurance Rs 125

i. Rates and taxes Rs 240
ii. Apprentice premium Rs 400
iii. Closing stock Rs 29,390