FINAL EXAMINATION - MODEL PAPER

ACCOUNTS
CLASS XI
SESSION 2024-25

Maximum Marks: 80
Time Allowed: Three Hours
Reading Time: Additional 15 Minutes

Instructions to Candidates

➢ You are allowed an additional 15 minutes for only reading the paper.
➢ You must NOT start writing during reading time.
➢ The question paper has 10 printed pages.
➢ The Question Paper is divided into two sections and has 14 questions in all.
➢ Section A is compulsory and has ten questions and Section B have four questions
each.
➢ Internal choices have been provided in five questions in Section A and in
two questions in Section B.

➢ While attempting Multiple Choice Questions in Sections A, and B, you are

required to write only ONE option as the answer.

➢ The intended marks for questions or parts of questions are given in the brackets [ ].
➢ All calculations should be shown clearly.
➢ All workings, including rough work, should be done on the same page as,
and adjacent to, the rest of the answer.

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 SECTION A (60 Marks)
Answer all questions.

Question 1

In subparts (i) to (iv) choose the correct options and in subparts (v) to (x) answer the
questions as instructed.
(i) Accrual Concept is based on: [1]
(a) Matching Principle
(b) Dual Aspect Principle
(c) Cost Principle
(d) Going Concern Concept

(ii) Goods costing ₹ 20,000 is sold at a profit of 20% on cost and trade discount is [1]
allowed @10% and cash discount of 10% is also allowed. Half the payment was
received at the time of sale. What is the amount of cash received at the time of
sale?
(a) ₹ 9,720
(b) ₹ 10,800
(c) ₹ 11,880
(d) ₹ 10,820

(iii) On 1st May 2024, Cash book bank overdraft balance was ₹ 2,000. On depositing [1]
₹ 10,000 into bank and giving a cheque of ₹ 7,200 for rent, the balance will be
(a) ₹ 4,800 on Debit side
(b) ₹ 4,800 on Credit side
(c) ₹ 800 on Debit side
(d) ₹ 800 on Credit side

(iv) Purchase of furniture on credit should be recorded in: [1]

(a) Journal
(b) Cash Book
(c) Purchase Book
(d) Journal Proper

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(v) ₹25,000 received from Appu is credited in the account of Dappu. It is an [1]
error of .

(vi) Assertion (A): A bill of exchange is a written order by the drawer directing the
drawee to pay a certain sum of money to the payee on demand or at a fixed future
date.
Reason (R): A bill of exchange is always drawn by the creditor and must be
accepted by the payee before it becomes legally enforceable.

Which one of the following is correct: [1]

(a) Both Assertion and Reason are correct, and Reason is the correct explanation
for Assertion.
(b) Both Assertion and Reason are correct, but Reason is not the correct
explanation for Assertion.
(c) Assertion is false and Reason is true.
(d) Assertion is true and Reason is false.

(vii) Rent paid on 1st October 2022 for one year upto 30th September, 2023 [1]
was ₹ 2,400. Rent paid on 1 October, 2023 for the year upto 30 September, 2024
st th

was ₹ 3,200. Rent shown in the profit and loss account for the year ended 31st
December, 2023, would be ?

(viii) Which of the following is not presented under 'Current Assets' in the [1]
Balance Sheet of a company?
(a) Inventory
(b) Trade receivables
(c) Cash and cash equivalents
(d) Long Term Investments

(ix) Net profit of a firm before charging manager's commission is ₹40,000. If the [1]
manager is entitled to 10% commission before charging such commission,
Calculate the commission payable to the manager?
(x) The WDV of an asset after three years of depreciation on reducing balance [1]
method @15% p.a is ₹ 49,130. What was its original Value?
(a) ₹ 40,000
(b) ₹ 80,000
(c) ₹ 45,000
(d) ₹ 70,250

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Question 2. [3]
A company had bought Machinery for ₹ 1,00,000 including therin a boiler worth
₹ 10,000. Depreciation was charged on diminishing balance method at 10% p.a.
During the fifth year the boiler became useless on account of damages and was
sold for ₹ 2,000.
Prepare Machinery accounts for five years.
OR
On 1st January,2024, Amar sold goods to Karan for ₹ 10,000 and drew upon him bill at 3
months for the amount. Karan accepted the bill and returned it to Amar on 4th March,
2023, Karan retired the bill under rebate of 6% p.a.
Record necessary Journal Entries in the books of Karan’s.

Question 3. [3]
Opening Stock ₹ 1,00,000; Carriage Inwards ₹ 1,000; Wages ₹ 2,000;
Purchases ₹ 2,80,000; Closing stock ₹ 80,000; Freight Inwards ₹ 3,600
The percentage of gross profit on sales in 20%. Prepare Trading A/c from the
information given.

Question 4. [3]
From the following information of Phera Pheri Club show the amounts of Match
Expenses and Match Fund in the Financial Statements for the year ended 31st March, 2024.
Match expenses (paid during the year ended 31st march, 2024) ₹ 3,00,000
Match Fund (as on 31st March, 2023) ₹ 1,70,000
Donation for Match Fund (Received during the year ended
31st March, 2024 ₹ 90,000
Proceeds from the sale of match tickets
(received during the year ended 31st March, 2024 ₹ 30,000
Ascertain the expenses to be debited to the Income & Expenditure Account for the
year ended 31st March, 2024.
OR
Prepare Journal from the transactions given below:
(a) Goods purchased for ₹ 5,000 were used by the proprietor for personal purposes.
(b) Goods stolen in transit (Sales Price ₹ 8,000, Cost ₹ 6,000)
(c) Goods uninsured of ₹ 3,000 (purchase cost) were destroyed by fire.
(d) Goods costing ₹ 1,000 damaged by fire and Insurance company accepted claim of
₹ 800 and cheque is received from the insurance company.
(e) Goods costing ₹ 500 given as charity (Sales Price ₹ 600)
(f) ₹ 1,500 paid to landlord as rent.

Question 5. [3]
From the following transactions of M/s Ranveer Sales, U.P, Prepare Purchase Book:
2024
March 1 Purchased from Mohan Lal & Co, Kanpur, 20 Godrej Chairs
@ ₹ 2,000 each and 5 Godrej Chairs @ ₹ 6,000 Less Trade
Discount 20%. Charged CGST & SGST @ 6%.

March 4 Purchased from Bharat Bhushan & Co., Varanasi, 5

Almirah Chairs @ ₹ 12,000 each and 2 Revolving Chairs
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 @ ₹ 20,000. Less Trade Discount 10%. Charged CGST &
SGST @ 6%.
March 10 Purchased from Surya Trader & Co., Lucknow, 80 Desks @ ₹ 2,500
each and 10 Sofa Sets @₹ 20,000 each, Less Trade Discount 15%.
Charged CGST & SGST @ 6%.

Question 6. [6]
Enter the following transactions in a Triple Column Cash Book:

2025 ₹
Sept Bank Overdraft 75,000
1 Cash-In-Hand 35,000
2 Paid Wages 2,000
5 Cash Sales 70,000
Cash Discount 1,000
10 Cash Deposited into Bank 40,000
15 Goods purchased (Payment by Cheque) 20,000
Received Cash Discount 600
20 Paid Rent 5,000
25 Drew from bank for personal use 4,000
30 Salary Paid 10,000

Question 7. [6]
Trial Balance of Sunil showed 250 as debit excess. The difference has been posted
to the Suspense Account. Following errors were identified later:
(i) Total of debit side of Expenses Account has been cast in excess of 150.
(ii) Sales Account has been totalled short by₹200.
(iii) One item of purchase of 25 has been posted from the Purchases Book to the Ledger as 350.
(iv) The sales return of 200 from a party has not been posted to that account, though the
Party's account has been credited.
(v) A cheque of 600 issued to the Supplier's Account (shown under Sundry Creditors)
towards his dues had been wrongly debited to the Purchases Accoun
(vi) A credit sale of 100 has been credited to the Sales Account and also to the Sundry Debtors
Account.

Rectify the above errors and prepare Suspense Account to ascertain the difference in
Trial Balance.
OR

Anil sold goods to Ravi for ₹ 25,000 on 1st April, 2024 and drew upon him a three months
bill for ₹ 25,000. Ravi accepted the bill. On 4th April, Anil discounted the bill with bank at
12% p.a. Ravi failed to meet the bill on the due date and at his request Anil agreed to
renew the bill for three more month. Ravi endorsed two of his customers' bills for ₹ 17,500
and ₹ 13,500 due on 20th August and 20th September, 2024 respectively to Anil.
Anil discounted Ravi's bill at 12% p.a. on 10th July with the bank but on the due date the
second customer's bill was dishonoured. Ravi became bankrupt on 1st September, 2024
and only 50 paise in a rupee could be recovered from his estate.
Pass the necessary Journal entries in the books of Anil.

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Question 8 [6]
Machinery A/c ₹ 5,00,000
Provision for Depreciation A/c ₹ 1,16,000
Depreciation is charged on machinery at 20% p.a. by the Diminishing Balance Method.
Part of machinery purchased on 1st April, 2021 for ₹ 1,00,000 was sold on 1st October,
2023 for ₹ 60,000. Prepare Machinery Account and Provision for Depreciation Account for
the year ended 31st March, 2024. Also, prepare the Machinery Disposal Account.
Question 9 [10]
From the following Receipts and Payments A/c of a club for the year ended 31st
March, 2024 and from the information’s supplied, prepare Income and Expenditure
Account for the year ended 31st March, 2024 and the Balance Sheet as at that date:
RECEIPTS & PAYMENTS ACCOUNT for the year ended 31st March, 2024
Receipts ₹ Payments ₹
To Balance b/d: 1,50,000 By Salaries 1,50,000
By Entertainment Expenses 60,000
By Electric Charges 20,000
To Subscriptions: By General Expenses 30,000
2022-23 10,000 By Investments 1,00,000
2023-24 2,00,000 By Printing & Stationery 20,000
2024-25 20,000 2,30,000 By Newspapers 30,000
By Furniture 30,000
To Entertainment Receipts 1,00,000 By Misc. Expenses 20,000
To Sale of Old Furniture By Balance C/d 30,000
(Costing ₹ 10,000) 6,000
To Sale of Newspapers 4,000

4,90,000 4,90,000

The club has 250 members, each paying an annual subscription of ₹ 1,000.
₹ 5,000 are still in arrears for subscriptions of 2022-23. In 2022-23, ten members had paid
their subscriptions for 2023-24 as well. Salaries paid include ₹10,000 for 2022-23 and
₹15,000 for 2024-25. Outstanding salaries for 2023-24 amounted to ₹ 20,000. On 1-4-2023
the club owned land and building valued at ₹10,00,000 and furniture valued at ₹1,10,000.
Interest for 3 months at 6% p.a. has accrued on investments.

OR

The following is the Trial Balance of Mr. Ram as at 31st March, 2024.

Particulars (₹) Particulars (₹)

Materials Purchased 1,15,725 Sales 2,10,000
Administration Expenses 16,725 Outstanding Wages 800
Wages 42,775 Creditors 39,535
Freight 5,100 Capital 81,800
Rent 3,100 Bank 12,220
Petty Cash 175 Loan on Mortgage 16,000
Debtors 36,400 Income from Investments 925
Gift to Wife 2,500
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 Prize Distributed 200
Commission paid 1,000
Commission paid in advance 400
Mortgage Interest 1,600
Loose tools 5,000
Investments 8,500
Plant 60,000
Furniture 7,200
Leasehold Property 50,000
Patents 2,000
Depreciation on Furniture 800
Suspense Account 2,080
3,61,280 3,61,280

Prepare the Trading and Profit & Loss Account for the year ending 31st March 2024
and the Balance Sheet as on that date after taking into account the following
adjustments:

(i) Closing Stock amounted to ₹ 20,000.

(ii) Goods costing ₹ 5,000 were sent to a customer on 'Sale on Approval Basis' for
₹ 6,400 on 29th March, 2024 and had been recorded in the books as actual sales.
(iii) Make a provision for Doubtful Debts at 5% on debtors
(iv) 1/5th of Loose Tools are to be written off this year.
(v) Manager is to get 5% commission on profit before charging his commission.
Question 10. [10]
An accountant, while balancing his books found that there was a difference of ₹270 in the
trial balance. Being required to prepare the final accounts he placed the difference to a
newly opened Suspense Account, which was carrried forward to the next year when the
following errors were discovered:-

(a) Salary for the month of March was posted twice, ₹155.
(b) Interest on investments collected by the bankers, were posted directly in concerned
accounts through the pass book, but no entry was made in the bank column of the
cash book ₹75.
(c) Goods worth ₹700 were distributed as free samples but this fact has not been taken into
Books.
(d) Rent of ₹350 received from Ashok credited both to Rent Account and Ashok Account.
(e) A purchase of a chair from Karnal Furniture Mart for ₹65 has been entered in purchases
book as ₹56.
(f) Old Machinery sold to the proprietor Keshav for ₹400 was entered in Sales Book as sale
to Kishore.
(g) Cash Purchases from Ajay ₹189 were recorded in Cash Book as well as in Purchases
Book and posted from both.
(h) Closing Stock has been undervalued by ₹300.

Give necessary rectifying entries and prepare the Suspense Account

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 OR

Journalise the following transactions in the books of Shri. Vishesh:

2024
March 5 Purchased furniture worth ₹20,000 and tools worth ₹5,000.
March 10 Opened bank account with Dena Bank ₹5,000.
March 12 Banked (Cash sent to Bank) ₹1,00,000.
March 16 Withdrawn from bank by Vishesh for personal use ₹10,000.
March 18 Withdrawn from bank ₹ 40,000
March 22 Bought shares in 'Colgate Ltd.' for ₹50,000 and brokerage paid @ 2%.
All the payment is made by cheque
March 25 Paid to Ashok out of business funds for the repair of Vishesh's residential
house ₹4,000.
March 28 Paid electricity bill ₹1,800 and miscellaneous expenses ₹120.
March 31 Salaries unpaid ₹15,000 and rent due to landlord ₹3,000.
March 31 Provide interest on Capital (₹2,00,000) @ 8% p.a. from 1st April 2023 to
31st March 2024.

SECTION B (20 Marks)

Question 11
In subparts (i) and (ii) choose the correct options and in subparts (iii) to (v) answer the
questions as instructed.
(i) If the amount of any known liability cannot be determined accurately. [1]
(a) Provision should be created
(b) Definite liability should be created
(c) Reserve should be created
(d) Should be shown as a contingent liability

(ii) According to this principle the proprietor is treated as a creditor [1]

(a) Going Concern
(b) Cost Principle
(c) Business Entity concept
(d) Accounting Period Principle

(iii) Subscription received during the year 2023-24 was ₹ 40,000. Outstanding [1]
Subscription as on 31st March, 2023: ₹ 1,500 and Outstanding at the end of Current
Year was ₹ 2,000. Subscription received in advance for next year ₹ 800. The amount
that will be shown as subscription in the credit of Income & Expenditure Account
will be:
(a) ₹ 38,700
(b) ₹ 39,700
(c) ₹ 40,300
(d) ₹ 41,300

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 (iv) Sohan returned goods to us amounting ₹ 4,200. But was recorded as ₹ 2,400 [1]
in his account. The rectifying entry by which Sohan’s A/c will be credited:
(a) ₹ 1,800.
(b) ₹ 4,200.
(c) ₹ 2,400.
(d) ₹ 1,100,

(v) Dinesh who owed ₹ 8,000 became insolvent and paid us 60% in full settlement [1]
Posting will be made to Dinesh A/c:
(a) ₹ 8,000 Debit
(b) ₹ 8,000 Credit
(c) ₹ 4,800 Debit
(d) ₹4,800 Credit

Question 12
Mention the subsidiary books in which the following transactions are recorded [3]
along with reason thereof:
(a) Credit sales of stock.
(b) Sold inventory to a customer on credit.
(c) Bought computers for office use.

Question 13.
Enter the following transactions in the Triple Column Cash book of Mr. Jaaem with
appropriate analysis columns. [6]
2024
March 1 Opening balance: Cash ₹ 12,000 and Bank ₹ 36,000.
2 Cashed a cheque for ₹15,000 and paid salaries for the month of
February in Cash ₹ 12,500.
4 Direct deposit by Mr. Sunil Seth in our bank account ₹3,000
Discount allowed ₹100.
10 Received from an outstation customer a cheque of ₹9,500.
Cheque was deposited into the bank on 12th March.
The bank debited ₹20 as collection charges.
11 Gobind settled his account of ₹6,000 by cheque of ₹5,900.
Cheque was deposited into the bank on 15th March.
16 Settled Ravi's Account of ₹8,200 after deducting ₹ 200 as
discount, by giving a cheque for ₹6,000 and the balance in cash
17 Withdrawn from Bank ₹15,000 and an Office Equipment
(Typewriter) was purchased for ₹ 12,000 and the balance taken
by the owner.
18 Sold goods to Sanjay on Credit ₹8,000.
19 Sanjay returned goods worth ₹500 and settled his account by a
cheque.

22 Bank notifies that Sanjay's cheque has been dishonoured and

bank debited ₹ 20 towards its charges for this cheque.
24 Issued a cheque of ₹3,000 to Ashok as advance against our order
of furniture worth ₹ 5,000.
25 Received the amount of returned cheque and bank charges in

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 cash from Sanjay.
26 Goods worth 12,000 were purchased from Shyam Sunder on
15th instant. Its payment was made today by cheque after
deducting 5% cash discount.
28 Paid to Manohar ₹ 8,000 by cheque.
29 Cash sale to date ₹ 80,000 of which ₹60,000 banked.
30 Bank collects interest on securities ₹300.
31 Deposited into bank cash retaining ₹10,000.

OR
Following are the transactions of Hardik, you are required to prepare Cash A/c. [6]
2024
July 1 Hardik started the business with Cash ₹ 15,000 and Machinery ₹ 20,000.
4 Purchased goods for ₹ 9,000 less 10% Cash Discount.
9 Sold goods to Amar ₹ 3,000.
12 Distributed goods worth ₹ 700 as free samples.
14 Bought Stationery for ₹ 550 for office use.
18 Received ₹ 950 from Dhanashree, a customer, whose account was earlier written
off as a bad debt.
21 Abhiram invoiced us goods worth ₹ 3,000.
24 Settled Abhiram’s account, he allowed 5% cash discount.
27 Exchanged goods worth ₹ 2,500 against Furniture of the same amount.
29 Withdrawn cash from ATM ₹ 5,000 for office use and ₹ 3,000 for personal use.

Question 14. [6]

On 10th January 2024, A accepted a bill drawn by B for ₹ 2,00,000 for 3 months.
B discounted the bill at 8% p.a. and remitted ₹ 78,400 to A. On the same date B
accepted A's bill for ₹ 1,40,000 for 3 months. A discounted it at 8% p.a. and remitted
₹ 82,320 to B. On the due date B remits the required amount to A and both the bills are
honoured.
Show journal entries in the books of both the parties.