EURO GROUP OF SCHOOLS

EURO
GROUPorsCNO09
SESSION-2024-25 CLASS-XI
FINAL EXAMINATION SUBJECT- ACCOUNTANCY
SET- B TIME -3 HOURS
M.M.- 80

GENERAL INSTRUCTIONS:
1, This question paper contains 34 questions. All questions are
compulsory.
2 This question paper is divided into two parts, Part A and B.
3. Question Nos.1 to 16and 27 to 30 çarries 1mark each.
4. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
5. Questions Nos. from 21,22 and 33 carries 4 marks each.
6. Questions Nos. from 23 to 26 and 34 carries 6 marks each.
PART -A
Which of the following limitations of accounting states that accounts may be manipulated (1)
to conceal vital information?
(a) Accounting leads to window dressing
(b) Accounting is not fully exact
(c) Accounting ignores price level changes
(d) Accounting ignores qualitative concepts
2 Which term is used for an accrual accounting technique used to allocate the cost of
(1)
extracting natural resources such as timber, minerals and oil from the earth.
(a) Amortization. (b) Obsolescence (c) Depletion d) None of these
3 Using lower of cost and net realisable value' for the purpose of inventory valuation is the (1)
implementation of which of the following concepts
(a) Cost (b) Money measurement (c) Objectivity (d) Prudence
4 Book value of an asset after 2 years is Rs 80,000 .Rate of depreciation is 10% p.a under
(1)
straight line method the original cost of an assets would be
(a) Rs 8,000 (b) Rs 1,00,000 (c) Rs 8,00,000 (d) Rs 80,000
5 From the following, which accounting equation is not correct? (1)
(a) Assets - Liabilities = Capital (b) Asset - Capital = Liabilities
(c) Liabilities + Capital = Assets (d) None of these
6 Voucher is prepared for
(a)Cash received & cash paid (1)
(b)Cash/Credit Sale
(c)Cash /Credit purchase (d)All of the above.
Which is not qualitative characteristics of accounting information
(1)
 (a) Relevance (b) Understandability (c) Comparability (d) Materiality
8 When two or more errors are committed in such a way that the net effect of these errors on (1)
the debits and credits of accounts are nil, such errors are called
(a) Compensating errors (b) errors of principle
(c) Errors of omission (d) Errors of commission
Goodscosting Rs. 30,000 supplied to Mohan at a profit of 25% of sales price less traded (1)
discount @ 5% will be credited to sales A/c with :
(a)Rs. 35,625 (b)Rs. 38,000 (c) Rs. 37,500 (d) Rs.34,200
10 What is full form of GAAP? (1)
(a) Generally Accurate Accounting Principles
(b)Generally Access Accounting Principles
(c) Generally Accepted Accounting Principles
(d)Generally Authorised Accounting Principles
11
The assets which gets converted into cash within period of 12 months are called (1)
(a)Current assets (b) Fixed assets (c) Intangible asset (d) Investment
12
"Each transaction must be supported by verifiable documents like vouchers" is stated by (1)
which accounting concept?
(a) Cost (b) Money measurement (©) Objectivity (d) Prudence
13 Creation of reserve is :
(a)Useless (b) IIlegal (©) Necessary (d) Not Necessary (1)
14
Following information is provided by Yashwant for the year ended March 31st 2023. Net
profit as per Cash Basis of Accounting will be (1)
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 Assertion (A): Bank Reconciliation Statement is not a part of Double Entry Book-Keeping. (1)
Reason (R): Itis a method to ensure that there are no errors in recording bank transactions
in the cash book
(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
16 Assertion (A): Suspense Account may show either a debit or a credit balance. (1)
Reason (R): Suspense Account always shows a debit balance.
(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
17 Distinguish between Provisions and Reserves on the basis of: (3)
a.Meaning b. Object c. Utilization for dividends.
OR
Explain the functions of Accounting. (any three)
18 Pass Journal Entries: (3)
() Raman from Delhipurchased goods from Jas, Amritsar (Punjab) of 1,00,000
less 10% trade discount plus IGST 18%. Paid half amount by cheque
immediately and availed 2% cash discount.
(ii) Salary due to staff 50,000.
19 Prepare a Trial Balance from the following information: (3)
Amount (?)
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
Patent 4,000
Machinery 6,000
Capital 18,000

20 Explain the following accounting terms: (3)

1) Profit 2) Gain 3) Expenses
21 Record the following transactions in the sales book of Durga Electronics, Lucknow: (4)
March
2023

Sold to Ruchira Electronics, Lucknow, vide invoice No. 123

5 BPL T.V. @ 20,000 cach.
Less : Trade Discount @20%; GST (@ 12%
Sold to Garun Electronics, Kanpur, vide invoice No. 124
10 Washing Machines @8,000 each.
Less : Trade Discount @
25%; GST ( 12%
3 Sold to Hira Bros, Pune, vide Cash Memo No. 125
15 BPL Mixture & Juicer (@ 2,000 each.
Less: Trade Discount (@ 10%.;GST @
12%
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%.;GST @ 12%

22 Prove that Accounting Equation is satisfied in all the following transactions of Sameer (4)
Goel:
(i) Started businesswith Cash 1,00,000.
(ü)Paid rent in advance 3,000
(ii)Purchased goods for cash Z50,000 and Credit 20,000.
(iv)Sold goods for Cash 80,000 costing 40,000.
(v)Paid salary in cash 4,500and salary outstanding 1,000.
(vi)Bought motor cycle for personal use 30,000.
23 |Trial balance of Anita did not agree and she put the difference to suspense account. She (6)
 discovered the followingerrors.
1) Sales return book overcast by
8,175.
posted.
2) Purchase return to Arpit 3,125 was not 11,500were taken into stock but noentry
purchased on credit from Kamakshi?
3) Goods
was passed in the books.
were debited to sundry
4) Installation charges on new machinery purchased 1,750
expenses account as175.
was debited to
5) Rent paid for residential accommodation of Anita(the proprietor) 5,200
rent account as 5,000.
balance.
Kectity the errors and prepare suspense account to ascertain the difference in trial
24| Prepare a Bank Reconciliation Statement fromthe following particulars as on 30th June, (6)
2023:
1)Credit balance as per Bank column of Cash Book. 3,600
2)Cheque R720 issued to the creditor but not yet presented for payment.
3) Cheques }1,540 deposited into Bank for collection but not collected by the bank up to
this time
4) Bank charges 20 charged by the bank
5)Interest on overdraft 25 charged by the bank
6) A customer deposited 240 into our bank account without informing us.
)Bank paid 235 House Tax on our behalf, but no information was received from Bank.
25 Prepare Double Column Cásh book from the following information: (6)
2022
Jan 1 Cash in hand 5,000
Bank Overdraft 3,000
Jan 3 Bought goods for cash 4,500
Jan 5 Received cash from Rakesh 9,000
Jan 8 Received a cheque from Amit and deposited it into bank 11,000
Jan 11 Paid wages by cheque 7,000
Jan 13 Cash deposited into bank S,000
Jan 14 Sold goods for cash 8,000
Jan 15 Bought furniture 3,000

26 Laxmi Limited purchased machinery for Rs.40,000 on lst October, 2019. Depreciation is (6)
provided @10% p.a. onthe Diminishing Balance Method. On 1 January, 2022, one-fourth
of Machinery was found unsuitable and disposed off for Rs. 6,000. On the same date a new
machinery at acost of Rs. 15,000 was purchased. Write up the Machinery A/e for 4years.
The accounts are closed on 31st March every year.
Or
Birla Cotton Mills purchased a machinery on lst August, 2020 for Rs.90,000. On Ist
October, 2021 it purchased another machine for Rs.40,000.
On 30th June, 2022 it sold off the first machine purchased in 2020 for Rs.58,000 and on
the same date purchased a new machinery for Rs.1,00,000. Depreciation is provided at
20% p.a. on the original cost each year. Accounts are closed each year on 3lst March.
Show the Machinery Account for three years. CGST and SGST are charged (@ 6% each on
purchase and sale of Machinery.
PARTB
27 |Sundry Debtors given in the Trial Balance are 20,000. Further bad debts amounted to (1)
1,000 and it is desired to create a provision of 5% on debtors for doubtful debts and 2% for
discount. Sundry Debtors will appear in the Balance Sheet at afigure of:
 (a) 18,620 (b) 718,600
28
Closing stock is shown in (c) ? 17,689 (d) Z17,670
a)Cost price Financial Statements at:
c) Cost price or b) Realisable Value (1)
d) Cost price or Realisable Value whichever is greater.
29
Indirect ExpensesRealisable Value whichever is less
are
(a) Trading Account transferred to
(b) Profit & Loss Alc
(c) Balance Sheet (1)
30 (d) All of the above
The Drawing account is
(a) Real A/c classified under..
(b) Personal A/c (1)
(c) Nominal Alc
31 () Impersonal A/c
State with reason whether following are capital expenditure or
i.
Second-hand car was purchased for 1,35,000. revenue expenditure (3)
15,000 were spent on its
ii
overhauling.
25,000 spent on whitewashing of old factory building.
iii. 22,500 paid for the installation of a new 'machine.
32 The following balances appeared in the Trial Balance of Kanpur Mobiles as at
March 2023: 31st (3)
Sundry Debtors 3,05,000
Bad Debts 5,000
Provision for bad debts 20,000
The firnm agreed to record the following adjustments in the
Bad Debts 3,000; maintain provision for books of accounts. Further
bad debts 10%. Show the treatment of the
above adjustments in Profit & Loss Account and in Balance sheet as on
33 Gokul Das maintains incomplete records of his business. He wants to 31st March 2023.
business on 31 st March 2023 and for that, following information are know the result of his (4)
available:
Particulars 1/4/22 () 1/4/23 ()
Cash in Hand 1,50,000 1,75,000
Bank Balance 7,50,000 6,00,000
Furniture 1,00,000 1,00,000
Stock 5,00,000 4,50,000
Creditors 3,50,000 4,00,000
Debtors 2,50,000 3,00,000
Personal expenses of Gokul Das paid from business account amounted to 4,80,000 and
goods worth 20,000were withdrawn by him for personal use. He sold ornaments of his
wife for3,50,000 and invested that amount into the business. Calculate his profit or loss.
34 | Prepare Trading and Profit & Loss Account for the year ended on 31st March, 2023 from (6)
the following particulars;
Trial Balance (As on 31st March, 2023)
Dr. () Cr. ()
Cash in hand 2,000
 2023.
June e. LoanDebtors.
d. 5% on c. b. a.
Included
general in information:
Additional StationeryPayable SundrySalaries
Billsreceipts Wages
and LandExpenses
BuildingsandGeneralRepairs Investments
LoanInterest on CapitalCreditors
Write-off2,000 EntireClosing Investments DebtorsProvision
and debtsBad debtsBad Stock Power
Fueland
Carri
outwaardsge rn Salaned s CasBankh at
Carinrwariageds RetuPurchases
fromwas X stationery from as
stock
X(@
on inwards
is 01-04-2022
as was valued 18% and
expenses takenon
1"
bad used Return
debts at
by
is
insurance August and
the50,000. outwards
proprietor
provision
2022.
premium
No for for
interest own
Doubtful
1,200 ? purpose.
has
paid been Debts 6.24,320 2,000 18,000
1,80,000 10,600 1,520 20,000
for is 82,000 6,200 36,000 15,500 2,100 4,400 6,000
one
paid
so
to
be
2,20,000 18,000
year
far.maintained
ending 6,24,320 5,200 120
10,000 2,000 2,17,000 30,000 2,500
30th at 7,5003,50,000
 f. 1/3rd of Wages and Salaries is to be charged to Trading Account and balance to P/L Alc.
OR
Prepare Profit & Loss Account and Balance Sheet as on 3Ist March, 2023 from the
following particulars;
Dr. () Cr. (3)
3,20,000
Capital
4,00,000
Building
Motor Bike 40,000
2,83,000
Gross Profit
3,000
Bad debts
7,000
Bad debts provision
50,000
Bank loan
Interest on Bank loan 3,000
9,000
Commission
4,000
Motor Bike expenses
44.000
Salaries
Cash in hand 29,200

Debtors and Creditors 30,000 20,000

Income Tax. 12,000

Income Tax paid in advance 4,000

200
Interest on advance payment of income tax
1,20,000
Closing Stock
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 159%.

maintained at
g. Write-off 2,000 as bad debts and provision for Doubtful Debts is to be
5% on Debtors.