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Test- Series#023-24#11th CBSE# Accounts

Maximum Marks: 80 Time Allowed: : 3 hours

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 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each

Part A

1. The vouchers which are prepared for transactions not involving cash, i.e. non-cash [1]
transactions, are known as ________ vouchers.

a) Token

b) Credit

c) Transfer

d) Unilateral

2. Assertion (A): Statements prepared through management account are helpful in [1]
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. Goodwill account is a: [1]

a) Nominal Account

b) Real Account

c) None of these

d) Personal Account

4. What shall be the amount of Capital if Cash is ₹ 5,000; Furniture ₹ 12,000; Stock [1]

mailto:https://play.google.com/store/apps/details?id=co.kevin.nlkfz
₹ 30,000 and Creditors ₹ 6,000?

a) ₹ 41,000

b) 43,000

c) ₹ 53,000

d) ₹ 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 [1]

a) Cash Memo

b) Both Cash Memo and Invoice

c) Neither Cash Memo Nor Invoice

d) Invoice

6. Income statement include [1]

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? [1]
 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 [1]

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 ₹ 2,00,000 and sold 75% of such goods during accounting
year ended 31st March 2020. The market value of remaining goods was ₹ 43,000. Accountant valued
closing stod 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 ₹ 200,000 and sold 75% of such goods during the [1]
accounting year ended 31st March, 2020. The market value of the remaining goody was
 ₹ 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[1]
capital.

a) Conservatism

b) Business entity

c) Matching

d) Accounting period

11. Match the following. Options are [1]

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? [1]

a) Computers

b) Furniture

c) Building

d) Cash in hand

13 Return of goods purchased on credit to the suppliers will be entered in ____ Book. [1]

a) Purchase
b) Sales

c) Sales Return

d) Purchase Return

14 When goods are returned to supplier assets and ________ are ________ by same
amount. [1]

a) liabilities, increased

b) assets, decreased

c) liabilities, decreased

d) assets, increased

15 Which of the following is not a fixed asset? [1]

i. Balance with bank

ii. Plant and Machinery

iii. Building

iv. Goodwill

a) B only

b) C only

c) A only

d) D only

OR

Out of the following assets, which one is not an intangible asset?

a) Patents

b) Trade Mark

c) Machinery

d) Goodwill

16. Sold goods worth list price of 8,000 at 10% trade discount and 2% cash discount. [1]

25% received at the time of transaction only. The amount posted to discount account will be :-

a) ₹36 on debit side

b) ₹144 on credit side

c) ₹144 on debit side

d) ₹40 on credit side

17. How secret reserve can be created [1]

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? [3]

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%. 80% payment is done immediately. Assume payment is
made at the time of purchase.

19. Why is the consistency principle important? [3]

OR

What is meant by Accounting Standard? State any two benefits of it.

20. What will be the percentage of depreciation under SLM in the following case:- [3]

Original cost of Machine- ₹1,50,000

Salvage value after 9 years ₹15,000

Repair Charges in 2nd year ₹10,000

a) 11.11%

b) 10%

c) 10.34%

d) 9.37%

21. Following balances were extracted from the books of Ravinder Associates as at [4]

31st March, 2017

(₹) (₹)

Sundry Debtors 4,10,000 Stock (April 1, 2016) 2,30,000

Sundry
80,000 Premises 12,00,000
Creditors

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 30,000

 premises

Trade Expenses 12,000 Loan from Mukul 1,50,000

Returns
80,000 Interest on Mukul’s Loan 15,000
Outwards

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: [4]

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 [4]

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.

iii. 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

vii. Cheques issued before 31-03-2018 but presented for payment after that date
amounted to Rs.900.

viii. Cheques paid into the Bank but not collected and credited until 31-03- 2018
amounted to Rs.2,200.

ix. Interest on overdraft amounting to Rs.1,200 did not appear in the Cash Book.

x. Rs.5,000 being interest on investments collected by the Bank and credited in the
Pass Book were not shown in the Cash Book.

xi. Bank charges of Rs.50 were not entered in the Cash Book.

xii. 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: [6]

Journal Entries

Amount Amount Cr.

Date Particulars L.F.
(Rs) (Rs)
 ________ Dr. ________

________ ________

(i)
To ________ ________

(Being the bank draft of Rs 10,000 issued to Suman,

bank charges Rs 100)

________ Dr. 10,000

(ii) To ________ 10,000

(Being the cheque of Ranjan dishonoured)

________ Dr. ________

To ________ ________

(iii)
To ________ ________

(Being the purchase of goods of Rs 30,000; received

cash discount @ 2%)

________ Dr. ________

________ ________

(iv)
To ________ ________

(Being the sale of goods of Rs 30,000 allowed cash

discount @ 3% )

________ Dr. ________

(v) To ________ ________

(Being the goods costing Rs 15,000 lost in the fire)

 ________ Dr. ________

________ ________

(vi)
To ________ 10,000

(Being the rent paid, 1414th of the premises used for

residence)

________ Dr. ________

To ________ ________

To ________ ________
(vii)
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 cheque)

________ Dr. 20,000

To ________ 20,000
(viii)

(Being a computer out of stock used for office

purposes)

________ Dr. ________

To ________ ________
(ix)

(Being the computer (stock) costing Rs 15,000 taken

for domestic use)

(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

25. Trial Balance of Rahul did not agree. Rahul put the difference to [6]

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.

viii. Rs 283 discount received from a creditor had been duly entered in his account but
not posted to discount account.

ix. Goods bought from a merchant for Rs 770 had been posted to the credit of his
account as Rs. 7,700.

x. Rs 6,000 owing by a customer had been omitted from the schedule of sundry
debtors.

xi. 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.

26. On 1st April, 2016 a firm purchased machinery for ₹ 3,00,000. On 1st October, 2016, [6]
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

27. The time between the acquisition of an asset for processing and its conversion [1]

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

28. Loss on sale of an old car is debited to: [1]

a) Profit and Loss A/c

b) Depreciation A/c

c) None of these

d) Car A/c

29. Closing Stock, if given outside the Trial Balance is shown in: [1]

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

30. Distinguish between Capital Receipts and Revenue Receipts. [3]

31. [3]

Miss Priyanka runs a small Bakery Business. She was not maintaining her accounts on the double
entry system. On April 01, 2022 she had started the business with a capital of 78,000. On March 31,
2023 her incomplete records could provide the following data:

(i) Amount due to suppliers of raw materials 17,500.

(ii) Stock of raw material ₹2,000 and finished products ₹2,500.

(iii) Fixed assets 34,000.

(iv) Amount due from customers 42,000.

(v) She had withdrawn ₹2,500 per month for meeting her personal expenses.

(vi) She had introduced ₹7,000 as capital during the year.

(vii) She has cash at bank ₹21,000 and cash in hand 1,800.

(viii) Outstanding electricity bill 2,250.

Calculate the profit/loss of her business during the year using statement of affairs method.

32. Calculate Closing stock from the following details: [3]

Opening Stock - ₹ 20,000; Cash sales - ₹ 60,000; Credit Sales - ₹ 40,000;

Purchases - ₹70,000. Rate of Gross Profit on cost 33 1/3%.

OR

Calculate COGS from the following information:-

PARTICULARS Rs PARTICULARS Rs
4,37,10
Net Sales 0 Bad Debts 2200
2,60,00 2300
Net Purchases 0 Loading Charges 0
Wages 30,000 Customs duty 5000
5000
Opening Stock 30,000 Closing Stock 0
Motive Power 11,000 Discount allowed 7000
Import duty & clearing Agent's Depreciation on
commission 4000 Machinery 2000

33. From the following Trial Balance of Mr. Alok, prepare Trading and Profit & Loss [6]

Account for the year ending 31st March, 2019, and a Balance Sheet as at that date:-

Dr. Balances ₹ Cr. Balances ₹

Drawings 5,275 Capital 59,700

Loan at 8% p.a. (on

Bills Receivable 4,750 10,000
1.4.2018)

Machinery 14,400 Commission Received 2,820

Debtors (including X for dishonoured Bill of

30,000 Creditors 29,815
₹1,000)

Wages 20,485 Sales 1,78,215

Returns Inward 2,390

Purchases 1,28,295
 Rent 2,810

Stock (1.4.2018) 44,840

Salaries 5,500

Travelling Expenses 945

Insurance 200

Cash 9,750

Repairs 1,685

Interest on Loan 500

Discount Allowed 2,435

Bad-Debts 1,810

Furniture 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.

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 @12%, 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.

vii. Fire insurance Rs 125

viii. Rates and taxes Rs 240

ix. Apprentice premium Rs 400

x. Closing stock Rs 29,390