INTERNATIONAL INDIAN SCHOOL DAMMAM

GULF SAHODAYA EXAMINATION (SAUDI CHAPTER),

FEBRUARY 2023

SET-A

CLASS: XI SUBJECT: ACCOUNTANCY

TIME :3HRS MAX.MARKS :80

GENERAL INSTRUCTIONS:
1. This Question Paper contains two parts – A and B
2. Attempt all questions.
3. Draw proper format wherever necessary.
4. Marks for each question are indicated against it.

PART- A
FINANCIAL ACCOUNTING-1

Q.NO QUESTIONS MKS

1 Which of the following is not a business transaction? 1
a) Buying of furniture
b) Paying salaries of the accountant
c) Giving a motivation speech to the employees
d) Buying goods for personal use from the office money

2 Mr. Mohan creates provisions for certain types of contingencies that may 1
happen in near future but does not anticipate any future profit. Identify the
accounting concept being followed by Mr Mohan.
a) Conservatism concept
b) Full disclosure concept
c) Dual aspect concept
d) Measurement concept

3 Who are the external users of accounting? 1

a) Marketing managers
b) Production supervisors
c) Finance directors
d) Journalists

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4 Which of the following errors do not affect the trial balance? 1
a) Error of principle
b) Compensating error
c) Error of commission
d) Both (a) and (b)

5 Which of the following transactions will result in the higher balance in bank 1
column of Cash Book in comparison to Pass Book?

a) Interest credited by bank

b) Cheque deposited but not yet cleared by bank
c) Cheque issued but not yet presented for payment
d) Dividend on shares collected by bank

6 If Ram has sold goods for cash, the entry will be recorded 1
a) in the cash book
b) in the sales book
c) in the journal proper
d) none of these

7 A) Contra entries refer to 1

a) entries that are made only on debit side of the cash book
b) entries that are made only on credit side of cash book
c) entries that are made on both sides of cash book
d) none of the above

OR
B) A cash book that records minor expenses of a business on a day to day
basis is a ___________.
a) petty cash book
b) additional cash book
c) general cash book
d) none of the above

8 A) The documentary evidence certifying the purchase or sale of goods or any 1

monetary transaction is
a) Credit Note
b) Debit Note
c) Voucher
d) All of these

OR

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 B) To control the cost of production and distribution is the main field of:
a) Financial accounting
b) Cost accounting
c) Management accounting
d) Tax accounting

9 Purchase of goods from Rohit for cash is debited to: 1

a) Rohit’s a/c
b) Purchase a/c
c) Cash a/c
d) Stock a/c

10 Which of the following is not an advantage of accounting standards? 1

a) Removal of ambiguity
b) globalization of business
c) accounting standards are flexible
d) uniform and standard presentation of accounts

11 Rs.2,000 paid as wages for installing a machine should be debited to 1

a) capital account
b) wages account
c) machinery account
d) cash account

12 A) Rs.4,190 received from Heena whose account was written off as bad in the 1
previous year should be credited to:
a) bad debts a/c
b) Heena’s a/c
c) Cash a/c
d) Bad debts recovered a/c
OR

B) Rajiv purchased Motor Car of Rs. 4,00,000 for his personal use @ 20%
trade discount from Fastest Vehicles Limited. 60% payment was made in cash
and the rest amount was paid by cheque. Drawings account will be debited by
a) Rs. 1,92,000
b) Rs.3,20,000
c) Rs.3,80,000
d) Rs.1,28,000

13 Reliability, Relevance, Understandability and Comparability are: 1

a) Advantages of accounting
b) Limitations of accounting
c) Objectives of accounting
d) None of the above

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14 If assets of a business firm are Rs.70,000 and liabilities are Rs. 40,000 capital 1
will be:
a) Rs.1,10,000
b) Rs.30,000
c) Rs.50,000
d) Rs.40,000

15 Errors which arise due to wrong recording, wrong posting, wrong casting etc 1
is called ------------------.

a) Errors of commission
b) Errors of omission
c) Errors of principle
d) Compensating errors

16 As per _____________ basis of accounting expenses and revenue are 1

recognized when the money is paid in cash.
a) Accrual
b) Cash
c) Both (a) and (b)
d) None of these

17 Explain any three advantages of accounting? 3

18 Prepare accounting equation from the following: 3

a) Started business with cash Rs. 50,000 and stock Rs.45,000.
b) Purchased goods from Rohit Rs. 30,000.
c) Cash paid to Rohit in full settlement Rs. 28,500.
d) Cash withdrew for personal use Rs. 3000.

OR

Prepare accounting equation from the following:

a) Commenced business with cash Rs. 1,00,000 and stock Rs.50,000
b) Sold goods worth Rs. 17,500 for Rs. 20,000.
c) Commission received in advance Rs. 2000.
d) Received interest Rs 700.

19 Explain the following: 4

a) Dual aspect concept
b) Consistency concept

20 Pass necessary journal entries for the following: 4

a) Bought goods from Sahil for Rs. 25,000 plus CGST and SGST @ 6%
each.

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 b) Received cheque of Rs. 29,500 from Sohan, a debtor in settlement of
his account of Rs. 30,000.
c) Rent outstanding Rs. 500.
d) Purchased machinery for Rs.28,000.

OR

Pass journal entries for the following:

a) Sold goods to Rohan for Rs. 30,000 plus I GST @ 12%.
b) Issued cheque of Rs.39,000 to Param, a creditor in settlement of his
account of Rs. 40,000.
c) Provide 10% depreciation on furniture costing Rs.5000.
d) Sold goods Rs. 50,000.

21 Prepare Bank Reconciliation Statement as on 31st December 2022. 4

a) Credit balance as per cash book Rs. 1,70,000.
b) Directly deposited to the bank by Sudhir Rs. 12,000.
c) Cheques issued but not presented for payment Rs.83,000
d) Cheques entered in Cash book but not banked Rs.42,000

22 Rectify the following errors: 4

a) Credit sales to Mohan Rs.10,000 was not recorded.
b) Sales book undercast by Rs. 3,000.
c) Goods returned to Mahesh Rs. 1,000 were posted to the debit of
Manish.
d) Repairs on machinery Rs.1,400 was debited to Machinery account as
Rs. 2,400.
OR

Rectify the following errors:

a) Credit sales to Rohan Rs. 6,000 were recorded as Rs. 6,200
b) Purchase book overcast by Rs. 4,000.
c) Cash sales Rs. 2,000 were posted as Rs.200.
d) Credit sales to Mahesh Rs 5,500 were recorded in purchase book.
However, Mahesh’s account was correctly debited.

23 From the following transactions of M/S Bhaskar Brothers, Mumbai, prepare 6

Purchase book.
2019
April 1: Purchased goods from Joshi Brothers, Mumbai invoice No.210
10 Philips tubelights @Rs. 200 each
50 Crompton Bulbs @ Rs.100 each
Trade discount @ 10%, CGST and SGST @6% each

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 April 10: Purchased goods from Rajesh Electric Store, Delhi invoice No.18
25 Heaters @Rs.800 each
15 Crompton Fans @Rs.1,600 each
10%Trade discount, IGST @ 12%

April 12: Purchased for cash from Mohan Brothers, Mumbai invoice No. 120
30 Crompton Bulbs @ Rs.300 each
10% Trade discount, CGST and SGST @ 6%

April 16: Purchased goods from Supreme Electric Store, Delhi invoiceNo.125
5dozen Philips bulbs @Rs.100 each
25 Power plugs @ Rs.80 each
Trade discount @ 10%, IGST @ 12% and Freight charges Rs.75

24 Prepare Bank Reconciliation Statement of Rohit on 31st December 2022 with 6

the following particulars
a) Cash book showed an overdraft of Rs 15,000
b) A cheque of Rs. 200 was deposited in bank but not recorded in cash
book
c) Cheques of Rs.17,000 were issued but cheques worth Rs. 7,000 only
were presented for payment up to 31st December 2022
d) Cheques of Rs.2,000 were received and recorded in cash book but not
sent to bank.
e) Cheques of Rs.10,000 were sent to bank for collection. Out of these,
cheques of Rs.2,000 and Rs.1,000 were credited respectively on 10th
January 2023 and 12th January 2023.
f) Cheque directly deposited by a customer into bank Rs. 500

25 Prepare double column cash book from the following: 6

DATE PARTICULARS
2022
April 1 Commenced business with cash Rs. 60,000

April 5 Purchased goods for Rs. 25,000. CGST and SGST @ 6%

April 14 Deposited into bank Rs. 22,000

April 15 Sold goods for cheque Rs.15,000 and deposited into bank the
same day
April 20 Paid salary Rs. 3,000

April 24 Withdrawn from bank for office use Rs. 4,000

April 25 Received commission Rs.2,000

OR

6
 Prepare cash book with bank column from the following transactions

DATE PARTICULARS
2022
Jan1 Commenced business with cash Rs. 1,00,000

Jan 2 Deposited into bank Rs. 50,000

Jan3 Bought goods by cheque Rs. 35,000

Jan 5 Sold goods for cheque Rs.20,000 and deposited into bank the
same day .
Jan 5 Paid to Arjun by cheque Rs.2,000

Jan 6 Drew from bank for office use Rs.1,000

Jan 7 Paid rent for proprietor’s residence Rs. 5,000

Jan 8 Sold goods to Manohar for Rs. 3,000 on credit

Jan 11 Cheque from Manohar received and was banked on the same
date

26 Post into ledger account and prepare trial balance 8

1.12.22 Started business with cash Rs. 2,00,000

2.12.22 Bought office furniture for Rs. 30,000
5.12.22 Paid into bank to open a current account Rs. 50,000
19.12.22 Sold goods to Tarun for Rs. 2,000
22.12.22 Paid cartage Rs. 1000
27.12.22 Cash received from Tarun Rs. 2,000

PART-B
FINANCIAL ACCOUNTING – 2

27 Wages and Salaries account is shown in 1

a) Trading account
b) Profit and loss account
c) Balance sheet
d) None of these

28 Gross profit is 1
a) Excess of income over expenditure
b) Excess of sales over purchases
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 c) Excess of sales and stock over purchases
d) Excess of sales over cost of goods sold
29 The Manager is entitled to commission of 5% on profits after charging 1
commission. The profit is Rs. 17,500. Therefore, commission will be:

a) 840
b) 833
c) 830
d) 875

30 Adjustment entry for Accrued Interest is: 1

a) Interest a/c Dr
To Accrued interest a/c

b) Accrued interest a/c Dr

To Interest a/c

c) Interest a/c Dr
To Cash a/c

d) Cash a/c Dr
To Accrued interest a/c

31 From the following information find cost of goods sold and gross profit. 4

Opening stock Rs. 42,000 Closing stock Rs. 64,000

Purchases Rs.82,600 Return outward Rs. 1,600
Wages Rs.4,000 Freight inward Rs. 3,600
Salary Rs. 1,000 Net sales Rs. 2,00,000

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32 Prepare Trading and Profit and Loss account and Balance Sheet from the 8
following trial balances as on 31st March 2022.

Particulars Debit (Rs.) Particulars Credit (Rs.)

Bad debts 550 Capital 24,500
Purchases 47,000 Loan 7,880
Scooter 2,000 Sales 65,360
General expenses 2,500 Provision for bad 900
debts
Buildings 11,000 Commission 1,320
Machinery 9,340 Bills payable 3,850
Stock 16 200 Bank overdraft 3,300
Scooter expenses 1,800 Creditors 2,500
Power 2,240
Taxes and Insurance 1,315
Wages 7,200
Debtors 6,280
Cash 80
Drawings 2,000
Charity 105
TOTAL 1,09,610 1,09,610

Adjustments:
a) Closing stock rupees 23,500
b) Write off Rs.160 as further bad debts and maintain provision for bad
debts at 5% on debtors.
c) Depreciate machinery @ 10% and Scooter @12%.
d) Provide Rs. 750 for outstanding interest on overdraft.

OR

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The following information has been extracted from the Trial balance of M/s
Ranbir& Co.

Debit Balances Amount Credit Balances Amount

(Rs.) (Rs.)
Opening stock 1800 Capital 20,000
Insurance 450 Creditors 2,600
Plant and Machinery 12,000 Bills payable 2,350
Horse and carts 2,600 Sales 4,600
Power 150
Purchases 2,000
Wages 800
Salary 800
Repairs 190
Trade expenses 160
Debtors 3,600
Bad debts 500
Drawings 1,700
Cash 2,600
Return inward 200
TOTAL 29,550 29,550

Adjustments:
a) Closing stock for the year was Rs. 1,600.
b) Depreciation charged on Plant and Machinery @10% and horse and
carts @ 10%.
c) Rs. 200 is due for wages
d) Paid insurance premium Rs.50 in advance.

You are required to prepare Trading and Profit and Loss account and a
Balance Sheet as on 31st December 2022.

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