CLASS: XI

SUBJECT: ACCOUNTANCY

Q. N. Questions Marks

PART A: Financial Accounting - I

Which of the following limitations of accounting states that accounts may be

(1) manipulated to conceal vital information?
(a) Accounting leads to window dressing 1
(b) Accounting is not fully exact mark
(c) Accounting ignores price level changes
(d) Accounting ignores qualitative concepts

Which term is used for an accrual accounting technique used to allocate the
(2) cost of extracting natural resources such as timber, minerals and oil from the 1
earth mark
(a) Amortization (b) Obsolescence
(c) Depletion (d) None of these
Using “lower of cost and net realisable value’ for the purpose of inventory
(3) valuation is the implementation of which of the following concepts 1
(a) Cost (b) Money measurement mark
(c) Objectivity (d) Prudence

Under which method of depreciation, the value of fixed asset could become to 1
(4) zero at the expiry of the working life mark
(a) Straight line method (b) written down value method
(c ) both a and b (d) none of these
Or
Book value of an asset after 2 years is Rs 80,000 .Rate of depreciation is 10%
p.a under 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 mark
(c) Liabilities + Capital = Assets (d) None of these
Or
From the following calculate liabilities
Capital Rs 5,00,000 , cash in hand Rs 40,000 , building Rs 8,00,000, bank
overdraft
Rs 50,000
(a) Rs 1,39,0000 (b) Rs 4,20,000
( c) Rs 3,90,000 (d) none of these
 Goods purchased from Raghav for ₹ 4,500 but goods recorded as ₹ 5,400 in the 1
(6) Purchases Book. The type of error related to: mark
(a) Error of Omission (b) Error of Commission (c)
Error of Partial Omission (d) Error of Principle
or
Bank Reconciliation Statement is prepared by:
(a) Debtors of the firm (b) Creditors of the firm
(c) Account holder of bank (d) Bank

The revenue recognition principle dictates that all types of income should
(7) be recorded or recognized when 1
(a) Cash is received mark
(b) At the end of accounting period
(c) When they are earned
(d) When interest is paid

(8) The depreciation value after two years of an asset costing Rs 10,000
depreciated at 10% on fixed instalment is Rs --------- and on reducing
balance method is --------------
(a) Rs 8100 and Rs 8000
(b) Rs 9000 and Rs 8000 1
(c) Rs 8000 and Rs 8100 mark
(d) Rs 8000 and Rs 9000
Or
Which is not advantage of written down value method
(a) Income tax act accept this method for tax purpose
(b) Assets can be depreciated up to the net scrap value or zero.
(c) Large portion of depreciation charge in earlier years.
(d) None of these

Moon trader lucknow, provide the Following information for the year ended
(9 31st March, 2023:
Cost of Goods sold ₹ 500,000; Office expenses paid ₹ 1,10,000 (salary of ₹
5,000 is outstanding and ₹ 25,000 Rent paid-in advance).
Goods sold for ₹ 10,00,000 (including ₹ 1,50,000 as debtors and bills 1
receivable). mark
As per the Accrual base of accounting, the profits/loss of the Moon trader
lucknow for the year ending 31st March, 2023 is ₹ _________.
(a) 3,90,000 (b) 4,10,000 (c) 4,90,000 (d)3,55,000
(10) The accounting concept which suggested that each transaction should be
recorded in the books of account by supporting vouchers of transactions 1
___________. mark
(a) Objectivity (b) Dual aspect (c) Materiality (d) Consistency
11) When two or more errors are committed in such a way that the net effect of 1
these errors on the debits and credits of accounts are nil, such errors are called mark
.....
(a) Compensating errors (b) errors of principle
(c ) Errors of omission (d) Errors of commission
Or
If credit purchases from Raghu Rs 20000 were recorded through sales book
Rectifying entry will be
(a) Sales a/c Dr 20000
Purchase a/c Dr 20000
To raghu’s a\c 40000
(b) Sales a/c Dr 20000
Purchase a/c Dr 20000
To suspense a\c 40000
(c) Raghu’s a\c Dr 40000
To Sales a/c 20000
To Purchase a/c 20000
(d) None of these
(12) Given below are two statements : one labelled as assertion A and other labelled 1
as Reason R mark
Assertion (A) : provision is the amount of any known liability to be determined
with substantial accuracy.
Reason (R): provision and reserves used interchangeably
In the light of the above statement choose the most appropriate answer from
the options given below:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A)
(B) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(C) (A) is true ,but (R) is false
(D) (A) is false ,but (R) is true
12 television sets of Rs 10000 each are purchased on 1.4,2022 , then on
(13) 1.10.2022 1
14 computer set of Rs 11000 each are purchased. On 01.06.2023 6 mark
typewriter purchased for Rs 2000 each and order given for another 6
typewriter then according to concept of accounting in books which closed
on 31.03.2024 must record
(a) Rs 12000 (b) Rs 24000
(c ) 286000 (d) RS 274000

GST is imposed on the production of all services and goods except…. 1

(14) (a) Liquor intended for human ingestion (b) Tobacco mark
(c) Health care service (d) All of the above

(15) Which is not qualitative characteristics of accounting information 1

(a) Relevance (b) Understandability mark
(c ) Comparability (d) Materiality
(16) Differentiate between Provision and Reserve on the basis of following: 3 marks
(a) Basic Nature
(b) Purpose
(c) Use for payment of dividend
Or
Differentiate between capital and revenue reserve on the basis of following
(a) definition (b) tenure (c) dividend payout

(17) Prepare trial balance from following information 3

Rawat’s capital Rs 60,000, Rohan (creditor) Rs 20,000, Rahul (debtors) Rs marks
82,000,sales Rs 70,000, goodwill Rs 17,000, bills receivable Rs 5,000 , cash in
hand Rs 3,000, stock (opening balance) Rs 43,000

(18) From the following business transactions of a business firm for the month of 3 marks
July
2020, prepare Accounting Equation:
July 01: Balance of Cash ₹ 1,20,000; Goods ₹45,000; Debtors ₹24,000;
Capital ₹ 1,79,000 and creditors ₹10,000.
July 05: Goods sold (costing ₹15,000) on credit to Dinesh at 20% profits on cost.
July 12: Outstanding salary ₹9,000.
July 17: Commission received in advance ₹12,000.
July 26: Goods purchased for cash ₹25,000.
July 31: Goods given as charity ₹1,000.

(19) Mr.Satyanand Sharma Account has debit balance of ₹ 19,000. In the month of 4 marks
March, 2020 the following transactions has been made with him, as under:
March 05: Goods sold (costing ₹ 9,000) to him at 20% profit on credit. March
11: Cheque received from him for ₹ 9,500 and discount allowed to him ₹
500.
March 13: Goods returns from him for ₹ 3,000.
March 22: Cash received from him ₹ 12,000 on his account.
March 25: Goods sold to him for cash ₹ 7,000.
March 29: Received cheque from him dated March 11 was dishonoured.
March 31: Mr.Satyanand Sharma declared insolvent and from his estate only 50
paise in a rupee was recovered.
Prepare Mr.Satyananad Sharma’s Account from the above transactions.
(20) Journalise the following transactions in the books of Himanshu: 4 marks
Jan. 02: Goods use for household’s₹ 2,000.
Jan. 08: Charge depreciation @ 10% p.a. for two months on Machinery costing ₹
30,000.
Jan. 12: Provide interest on capital on ₹ 1,50,000 at 6% p.a. for 9 months.
Jan. 15: Goods destroyed by fire ₹ 4,500.
Jan. 19: Goods sold (list price ₹ 20,000) at 10% trade discount and at 5% cash
discount, to Mukesh. Half of payment received in cash and the balance by a
cheque.
Jan. 29: Invested in the shares of Government sector ₹ 50,000.
(21) From the following particulars of Mr. Vinod, prepare bank reconciliation 6 marks
statement as on March 31, 2005.
1. Bank balance as per cash book ₹ 50,000.
2. Cheques issued but not presented for payment ₹ 6,000.
3. The bank had directly collected dividend of ₹ 8,000 and credited to bank
account but was not entered in the cash book.
4. Bank charges of ₹ 400 were not entered in the cash book.
5. A cheque for ₹ 8,000 was deposited but not collected by the bank.
6. Discounted bill from the bank was dishonoured but not taken into cash
book of ₹ 12,000.
(22) Record the following transactions in double column cash book of Mr. 6 marks
Rakesh Verma and balance it.
Sept. 01: Balance of cash ₹ 22,000 and Bank overdraft ₹ 2,500.
Sept. 06: Received cheque on October 28th, for ₹ 4,000 from Gaurav sent into the
bank.
Sept. 10: Bank has collected and deposited: Interest of ₹ 6,000; Dividend of ₹
8,000.
Sept. 16: Bank has paid several payments on its due date: Insurance premium of
₹ 3,000 and School fees of the child of Rakesh Verma ₹ 5,000.
Sept. 24: Cash deposited into the bank ₹ 12,000.
Sept. 29: Sold goods (costing ₹ 25,000) at 20% profit for cash.
(23) B & Company purchased Machinery on 1st April, 2019, for Rs 54,000 and spent 6 marks
Rs 6,000 on its installation. On 1st December, 2020, it purchased another
machine for Rs 30,000.On 30th June 2021, the first machine purchased on 1st
April, 2019, is sold for Rs 36,000 and on the same date it purchased new
machinery for Rs 80,000. Depreciation was provided on machinery @ 10% p.a.
on Original Cost Method annually on 31st March. Give the machinery account for
three years.
24 Trial balance of M/s Rathi Brothers did not agree and the accountant put the 6 marks
difference to suspense account. He discovered the following errors:
(a) Sales return book overcast by ₹ 800.
(b) Purchases return to Sahu ₹ 2,000 were not posted.
(c) Goods purchased on credit from Narula ₹ 4,000 though taken into stock,
but no entry was passed in the books.
(d) Installation charges on new machinery purchased ₹ 500 were debited to
sundry expenses account as ₹ 50.
(e) Rent paid for residential accommodation of Mohan (the proprietor) ₹
1,400 was debited to Rent account as ₹ 1,000.
Rectify the errors and prepare suspense account to ascertain the difference in
trial balance.