11 Accountancy SP 01

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Class 11 - Accountancy Sample Paper - 01

(2022-23)
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.Goods taken by the proprietor for personal use is
a) Internal liability
b) Sale
c) Drawings
d) None of these
2. Assertion (A): Statements prepared through management account are helpful in decision making process.
Reason ®: 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.
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d) A is false but R is true.
3. Goodwill account is a:
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 ₹ 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. Which of the following is an assets?
a) Purchase
b) Machinery
c) Sales Return
d) Salary payable
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7. The nature of accrued income is
a) Expense
b) Revenue
c) Asset
d) Liability
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
8. Which of the following equation is correct?
a) Assets + Capital = Liabilities
b) Assets+ Liabilities= Capital
c) Assets+ Liabilities= Capital
d) None of these
9. Rule of Debit and Credit for personal account is
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

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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
Part A
Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions:
Financial statements are prepared on 31st March every year.
10. A business purchased goods for ₹ 200,000 and sold 75% of such goods during the 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
11. Out of the following assets, which one is not an intangible asset?
a) Patents
b) Trade Mark
c) Machinery

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d) Goodwill
13. Which of the following is not a fixed asset?
a) Computers
b) Furniture
c) Building
d) Cash in hand
14. Return of goods purchased on credit to the suppliers will be entered in ____ Book.
a) Purchase
b) Sales
c) Sales Return
d) Purchase Return
15. When goods are returned to supplier assets and ________ are ________ by same amount.
a) Liabilities, increased
b) Assets, decreased
c) Liabilities, decreased
d) Assets, increased
a. Balance with bank
b. Plant and Machinery
c. Building

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d. Goodwill
17. Journal is called
a) A book of primary entry
b) A book of secondary entry
c) A book of final entry
d) Both secondary entry and final entry
18. Give two examples of Nominal Accounts.
19. What is Ledger?
20. Distinguish between debtors and creditors.
Part A
1.Goods taken by the proprietor for personal use is
Internal liability
Sale
Drawings
None of these
Assertion (A): Statements prepared through management account are helpful in decision making process.
Reason (R): The information provided by management accounts is financial and non-financial as well.
Both A and R are true and R is the correct explanation of A.
Both A and R are true but R is not the correct explanation of A.
A is true but R is false.
A is false but R is true.
Goodwill account is a:
Nominal Account

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Real Account
None of these
Personal Account
What shall be the amount of Capital if Cash is ₹ 5,000; Furniture ₹ 12,000; Stock ₹ 30,000 and Creditors ₹ 6,000?
a) ₹ 41,000
₹43,000
₹ 53,000
₹ 47,000
OR
Purchase of machine by cash means:
increase in asset and decrease in the asset
none of these
the decrease in asset and increase in capital
increase in asset and decrease in liability
Which of the following is an assets?
Purchase
Machinery
Sales Return
Salary payable
The nature of accrued income is
Expense
Revenue
Asset
Liability
OR
Which of the following is not a limitation of accounting?
Evidence in Legal Matters
Based on accounting conventions
Incomplete Information
Omission of Qualitative Informations
7. Which of the following equation is correct?
Assets + Capital = Liabilities
Assets+ Liabilities= Capital

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Assets+ Liabilities= Capital
None of these
Rule of Debit and Credit for personal account is
Dr. the receiver and Cr the giver
Dr. what goes out and Cr what comes in
Dr. all expenses and Cr all gains & Dr. what goes out and Cr what comes in
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
None of these
Debit as well as credit balance
Credit Balance
Part A
Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions:
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 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
a) Patents
b) Trade Mark
c) Machinery
d) Goodwill
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.
a) Purchase
b) Sales
c) Sales Return
d) Purchase Return
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14. When goods are returned to supplier assets and ________ are ________ by same amount.
a) liabilities, increased
b) assets, decreased
c) liabilities, decreased
d) assets, increased
a. Balance with bank
b. Plant and Machinery
c. Building
d. Goodwill
16. Journal is called
a) a book of primary entry
b) a book of secondary entry
c) a book of final entry
d) both secondary entry and final entry
17. Give two examples of Nominal Accounts.
18. What is Real Account ?
19. What is Ledger?
20. Distinguish between debtors and creditors.
21. Following balances were extracted from the books of Ravinder Associates as at 31st March, 2017:
(₹) (₹)
Sundry Debtors 4,10,000 Stock (April 1, 2016) 2,30,000
Sundry Creditors 80,000 Premises 12,00,000
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 premises 30,000
Trade Expenses 12,000 Loan from Mukul 1,50,000
Returns Outwards 80,000 Interest on Mukul's Loan 15,000
Returns Inwards 1,20,000 Drawings 40,000

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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:
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 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
i. Cheques issued before 31-03-2018 but presented for payment after that date amounted to Rs.900.
ii. Cheques paid into the Bank but not collected and credited until 31-03- 2018 amounted to Rs.2,200. iii.
Interest on overdraft amounting to Rs.1,200 did not appear in the Cash Book.
iv. Rs.5,000 being interest on investments collected by the Bank and credited in the Pass Book were not shown in the
Cash Book.
v. Bank charges of Rs.50 were not entered in the Cash Book.
vi. 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:
Journal Entries
Amount Amount
Date Particulars L.F.
(Rs) Cr. (Rs)
(i) ________ Dr. ________
________ ________

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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, th 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
(viii) To ________ 20,000
(Being a computer out of stock used for office purposes)
________ Dr. ________
(ix) To ________ ________
(Being the computer (stock) costing Rs 15,000 taken for domestic use)
(x) ________ Dr. ________

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To ________ ________
(Being the salaries (Rs 40,000) and rent (Rs 15,000) outstanding)
________ ________
To ________ ________
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 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.

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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.
i. Rs 283 discount received from a creditor had been duly entered in his account but not posted to discount account.
ii. Goods bought from a merchant for Rs 770 had been posted to the credit of his account as Rs. 7,700.

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

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a) Rs.2,060
b) Rs.3,400
c) Rs.340
d) Rs.3,060
30. Distinguish between Capital Receipts and Revenue Receipts.
31. From the following information, prepare the Trading Account for the year ended 31st March, 2017:
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing
Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.
32. Why is it necessary to create a provision for doubtful debts at the time of preparation of final accounts?
33. Following is the Trial Balance of Shamit on 31st March, 2019. Pass closing entries and prepare Trading and Profit and
Loss Account for the year ended 31st March, 2019.
TRIAL BALANCE as on 31st March, 2019
Particulars Dr.(₹) Cr.(₹)
Capital A/c - 1,00,000
Stock A/c (1st April, 2018) 20,000 -
Cash at Bank 10,000 -
Cash In Hand 4,400 -
Machinery A/c 60,000 -
Furniture and Fittings A/c 13,600 -
Purchases A/c 1,50,000 -
Wages A/c 1,00,000 -
Power and Fuel A/c 30,000 -
Factory Lighting A/c 2,000 -
Salaries A/c 70,000 -
Discount Allowed A/c 5,000 -
Discount Received A/c - 3,000
Advertising A/c 50,000 -
Sundry Office Expenses A/c 40,000 -
Sales A/c - 5,00,000
Sundry Debtors 85,000 -
Sundry Creditors - 37,000
Total 6,40,000 6,40,000

Value of Closing Stock as on 31st March, 2019 was ₹ 27,000
OR
From the following trial balance, prepare the trading and profit and loss account for the year ended 31st March 2013
and the balance sheet as at that date
Name of Account Debit Name of Account

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Credit
Amount Amount
(Rs.) (Rs.)
Debit Balances Rent, Rates, and Taxes 800
Sundry Debtors 1,500 Salaries 2,000
Stock on 1 st April 2012 5,000 Drawings 2,000
Land and building 10,000 Purchases 10,000
Cash in hand 1,600 Office expenses 2,500
Cash at bank 400 Plant and machinery 5,700
Wages 3,000 Credit Balances
Bills Receivable 2,000 Capital 25,000
Interest 200 Interest 600
Bad debts 500 Sundry creditors 7,000
Repairs 300 Sales 17,000
Furniture and fixtures 1,500 Bills payable 400
Depreciation 1,000
On 31st March 2013, the stock was valued at Rs. 10,000.
34. From the following Trial Balance of Mr. Alok, prepare Trading and Profit & Loss 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
Bills Receivable 4,750 Loan at 8% p.a. (on 1.4.2018) 10,000
Machinery 14,400 Commission Received 2,820
Debtors (including X for dishonoured Bill of ₹1,000) 30,000 Creditors 29,815
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

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Cash 9,750
Repairs 1,685

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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.
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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

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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 at 2 %, 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. i. Fire
insurance Rs 125
ii. Rates and taxes Rs 240
iii. Apprentice premium Rs 400
iv. Closing stock Rs 29,390

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(Salary paid)
Total 3,00,700 3,00,700

25. In the Books of Rahul
Journal Entries
Debit Credit
Date Particulars L.F. Amount Amount
(Rs) (Rs)
(i) Machinery Account Dr. 600
To Wages Account 600

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(Being wages paid for the installation of machinery wrongly debited to wages
account, now entry is rectified)
(ii) Repairs Account Dr. 400
To Machinery Account 400
(Being Repairs paid wrongly debited to Machinery account now entry is

rectified)
(iii) Machinery Account Dr. 1,000
To Repairs Account 1,000
(Being Repairs for overhauling of second-hand machinery purchased, wrongly

debited to Repairs account, now entry is rectified)
(iv) Building Account Dr. 10,000
To Purchases Account 8,000
To Wages Account 2,000
(Being material and wages used for the construction of the building, not
debited to building accounts, now entry is rectified)
(v) Furniture Account Dr. 5,000
To Purchases Account 500
To Suspense Account 4,500
(Being Furniture purchased for Rs 5,000 wrongly debited to purchases

account as Rs 500, now entry is rectified)
(vi) Sales Account Dr. 2,000
To Machinery Account 2,000
(Being Sale of Machinery wrongly recorded in the sales book, now entry is
rectified)
(vii) Sales Return Account Dr. 3,000
To Suspense Account 3,000
(Being total of Sales Returns Book not posted to the ledger, now entry is
rectified)
Suspense Account
Dat Particulars L.F Amount Dat Particulars L.F Amount

e . (Rs) e . (Rs)
To Difference as per Trial 7,500 By Furniture A/c 4,500
Balance
By Sales Returns 3,000
A/c
7,500 7,500
OR
Rectifying Entries
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S. Dr. Cr.
Particulars L.F.
No. (Rs.) (Rs.)
1. Suspense A/c Dr. 283
To Discount Received A/c 283
(Being Discount received Rs.283, not posted in the books, now corrected.)
2. Supplier A/c Dr. 6930
To Suspense A/c 6930
(Being brought goods for Rs.770, wrongly posted to supplier a/c as Rs.7700, now
rectified.)
3. Debtors A/c Dr. 6,000
To Suspense A/c 6,000
(Being owing by a customer, not included in the list of Sundry Debtors, now
rectified.)
4. Suspense A/c Dr. 4,052
To Customer A/c 4,052
(Being goods of Rs.2,026 returned by customer, wrongly debited to customer a/c

now corrected.)
Suspense A/c
Particulars Rs. Particulars Rs.
To Balance b/d 8,595 By Supplier 6,930
To Discount Received 283 By Debtors 6,000
To Customer 4,052
12,930 12,930
26. MACHINERY ACCOUNT
Dr. Cr.
Date Particulars ₹ Date Particulars ₹
2016 2017
April 1 To Bank A/c (Mach. I) 3,00,000 March 31 By Balance c/d 4,50,000

Oct. 1 To Bank A/c (Mach. II) 1,50,000
4,50,000 4,50,000
2017 2017
April 1 To Balance b/d 4,50,000 Oct. 1 By Bank A/c (Mach. I) (Sale) 1,35,000
Oct. 1 By Provision for Depreciation A/c 45,000

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By Loss on Sale of Machinery A/c

Oct. 1 1,20,000
(Profit and Loss A/c) (WN 3)
2018
March 31 By Balance c/d 1,50,000
4,50,000 4,50,000
2018 2018
April 1 To Balance b/d 1,50,000 Oct. 1 By Bank A/c (Mach. II) (Sale) 1,27,500
Oct. 1 To Bank A/c (Mach. III) (Sale) 3,75,000 Oct. 1 By Provision for Depreciation A/c 30,000
2019
To Gain on Sale of Machinery

Oct. 1 A/c 7,500 March 31 By Balance c/d 3,75,000
(Profit and Loss A/c) (WN 3)
5,32,500 5,32,500
PROVISION FOR DEPRECIATION ACCOUNT
Dr. Cr.
2017 2017
March 31 To Balance c/d 37,500 March 31 By Depreciation A/c 37,500
2017 2017
Oct. 1 To machinery A/c (Mach. I) 45,000 April 1 By Balance b/d 37,500
(₹ 30,000 + ₹ 15,000) Oct. 1 By Depreciation A/c (Mach. I) 15,000
2018 2018
67,500 67,500
2018 2018
Oct. 1 To Machinery A/c (Mach.II) 30,000 April 1 By Balance b/d 22,500
(₹ 7,500 + ₹ 15,000 + ₹ 7,500) Oct. 1 By Depreciation A/c (Mach. II) 7,500
2019 2019
48,750 48,750
2019
April 1 By Balance b/d 18,750

DEPRECIATION ACCOUNT
Dr. Cr.

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2017 2017
March 31 To Provision for Depreciation A/c 37,500 March 31 By Profit and Loss A/c 37,500
2017 2018
Oct. 1 To Provision for Depreciation A/c 15,000 March 31 By Profit and Loss A/c 30,000
2018
March 31 To Provision for Depreciation A/c 15,000
30,000 30,000
2018 2019
Oct. 1 To Provision for Depreciation A/c 7,500 March 31 By Profit and Loss A/c 26,250
2019
March 31 To Provision for Depreciation A/c 18,750
26,750 26,750
Calculation of Accumulated Depreciation on Machine I: ₹
Depreciation for 2016 - 17 30,000
Depreciation for 2017 - 18 (Sold on 1st October, 2018) 15,000
Accumulated Depreciation 45,000
Calculation of Depreciation on Machine II: ₹

Depreciation for 2016 - 17 (Purchased on 1st October, 2016) 7,500
Depreciation for 2017 - 18 15,000
Depreciation for 2018 - 19 (Sold on 1st October, 2018) 7,500
Accumulated Depreciation 30,000
Calculation of Gain/(Loss) on Sale of Machine I: Machine I ₹ Machine II ₹

Cost of Machinery 3,00,000 1,50,000
Less: Accumulated Depreciation (till the date of sale) 45,000 30,000
Book Value on Date of Sale (A) 2,55,000 1,20,000
Sales Proceeds (B) 1,35,000 1,27,500
Gain/(Loss) on sale (B - A) 1,20,000 7,500

Working Notes:
i.

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ii. iii. iv. Depreciation under the straight-line method is calculated on original cost of asset after reducing salvage value.
Each year same amount of depreciation is charged. When provision for depreciation account is prepared depreciation is
charged through provision for depreciation account and not asset account.
OR
Machinery Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
2014 April To Balance By Machinery Disposal

25,00,000 2014 Oct. 1 5,00,000
1 b/d Account
2015 March
By Balance c/d 20,00,000
31
25,00,000 25,00,000
2015 April To Balance 2016 March

20,00,000 By Balance c/d 20,00,000
1 b/d 31
20,00,000 20,00,000
Provision for Depreciation Account
Dr. Cr.

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Amount Amount
(Rs) (Rs)
2013 To Machinery Disposal 2014 April

2,12,000 By Balance b/d 5,80,000
March 31 Account (WN1) 1
By Depreciation
2014 Oct. 1 32,000
Account (WN 1)
2015 2015 March By Depreciation

To Balance b/d 7,20,000 3,20,000
March 1 31 Account (WN 2)
9,32,000 9,32,000
2016 April
By Balance b/d 7,20,000
1
Machinery Disposal Account
Dr. Cr.
Amount Amount
(Rs) (Rs)
2014 2014 By Bank Account (Sale

To Machinery Disposal Account 5,00,000 3,00,000
Oct. 1 Oct. 1 of machinery)
2014 To Profit & Loss Account (Gain 12,000 2014 By Provision for 2,12,000
on
Oct. 1 sale of machinery) Oct. 1 Depreciation Account
5,12,000 5,12,000
Working Note:
S.No. Particular Amount (Rs)
1. Depreciation Provided on Machinery sold till 31st Oct. 2014:

20
× 1,00,000
For 2012-2013 (5,00,000 100 )
20
× 80,000
For 2013-2014 (400000 100 )
20 6
× × 32,000
For 2014-2015 (320000 100 12 )
Total Depreciation on Machinery sold 2,12,000
2. Calculation of Depreciation on machinery provided for 2014-15:
Balance of provision for Depreciation on 1st April 2014 5,80,000
Add: Depreciation Provided on Sold Machinery 32,000
6,12,000
Less: Accumulated Depreciation on Machinery sold (WN 1) 2,12,000
Depreciation on the Remaining Machinery 4,00,000

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Cost of Remaining Machinery 20,00,000
Less: Depreciation on Remaining Machinery 4,00,000
WDV of Remaining Machinery 16,00,000

20
×
Depreciation on machinery provided during 2014 - 15: 16,00,000 100 = Rs 3,20,000
Part B
27. (b) Operating cycle
Explanation: it included all the steps from purchasing the raw material and converting it in to finished goods and then
selling it.
OR
(a) Marshalling
Explanation: marshalling refers to the arrangement of assets and liabilities in particular order. it can be done in two
ways- on the basis of permanence and on the basis of liquidity.
28. (a) Profit and Loss A/c
Explanation: Loss on sale of the car will be transferred to Profit and Loss A/c.
29. (b) Trading Account and Balance Sheet
Explanation: Closing stock will be shown in the Trading Account and Balance Sheet if given outside the Trial balance.
OR
(c) Rs.340
Capital Receipts Revenue Receipts
Amount received from the sale of fixed assets or investments i.e., non-current Money obtained from the sale of
Explanation: Amount of Provision for doubtful debts = 10% of 3,400 = 340
30.
assets. goods or services.

Capital contributed by proprietors, partners or money obtained from the issue of Commission and fees received for
shares and debentures in case of the company. services rendered.
31. Trading Account
for the year ended 31st March, 2017
Dr. Cr.
Particulars Amount (₹) Particulars Amount (₹)
To Adjusted Purchases 15,00,000 By Sales 21,40,000
To Freight and Packing 15,000 Less: Return Inwards 40,000 21,00,000
To Factory Expenses 60,000
To Gross Profit (Balancing Figure) 5,25,000
21,00,000 21,00,000

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Working Notes:
Calculation of Adjusted Purchases = Opening Stock + Net Purchases - Closing Stock Point
of Knowledge:
Closing stock is not showing separately in the trading account as it is already subtracted in adjusted purchases.
Packing Expenses on Sales’ and ‘Depreciation’ are indirect expenses and hence not debited to the Trading A/c.
32. For recording business transactions, the convention of conservatism is
followed which states that provision should be made for expected profit
and gains should not be accounted for. As it is not possible to accurately
know the amount of bad debts. Therefore, in order to bring an element
of certainty in the amount of bad debts from debtors a provision for
doubtful debts is created to cover the loss of possible bad debts. A firm
must be convinced with the amount of net debtors which it is going to
realize by the end of the financial year and for this purpose, provision
for doubtful debts certainly provides a helping hand.
33. JOURNAL OF SHAMIT
Date Particulars L.F. Dr.(₹) Cr.(₹)
2019
March
Trading A/c 3,02,000
31
To Stock A/c 20,000
To Purchases A/c 1,50,000
To Wages A/c 1,00,000
To Power and Fuel A/c 30,000
To Factory Lighting A/c

2,000
(Bein the direct expenses debited to Trading Account)
March
Sales A/c 5,00,000
31
To Trading A/c 5,00,000

(Bein the amount of Sales transferred to the credit of the Trading
Account)
March
Stock (Closing) A/c 27,000
31
To Trading A/c 27,000
(Being the value of stock on hand on 31 st March, 2019)
March
Trading A/c 2,25,000
31
To Profit and Loss A/c 2,25,000

(Being the transfer of gross profit)

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March
Profit and Loss A/c 1,65,000
31
To Discount Allowed A/c 5,000
To Salaries A/c 70,000
To Advertising A/c 50,000
To Sundry Office Expenses A/c

(Being the various indirect expenses accounts transferred to the debit of 40,000
the Profit and Loss Account)
March
Discount Received A/c 3,000
31
To Profit and Loss A/c

(Being the credit balance of discount received transferred to the profit
3,000
and Loss
Account)
March
Profit and Loss A/c 63,000
31
To Capital A/c
63,000
(Being the transfer of Net Proft to the Capital Account)
TRADING ACCOUNT OF SHAMIT for the year ended 31st March, 2019
Dr. Cr.
Particulars ₹ Particulars ₹
To Stock 20,000 By Sales 5,00,000
To Purchases 1,50,000 By Closing Stock 27,000
To Wages 1,00,000
To Power and Fuel 30,000
To Factory Lighting 2,000
To Gross Profit c/d 2,25,000
(Transferred to Profit and Loss A/c)
5,27,000 5,27,000
PROFIT AND LOSS ACCOUNT OF SHAMIT for the year
ended 31st March, 2019
Dr. Cr.
Particulars ₹ Particulars ₹
To Salaries 70,000 By Gross Profit 2,25,000
To Discount Allowed 5,000 By Discount Received 3,000
To Advertising 50,000

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To Sundry Office Expenses 40,000
To Net Profit 63,000
(Transferred to Capital A/c)
2,28,000 2,28,000
OR
Trading & Profit and Loss A/c
Amount Amount
Particulars Particulars
(Rs) (Rs)
To Opening Stock 5,000 By Sales 17,000
To Purchase 10,000 By Closing Stock 10,000
To Wages 3,000
To Gross Profit c/d 9,000
27,000 27,000
======= ======
To Interest 200 By Gross Profit b/d 9,000
To Office Expense 2,500 By Interest 600
To Salaries 2,000
To Rent, rates and taxes 800
To Depreciation 1,000
To Repairs 300
To Bad Debts 500
To Net Profit 2,300
9,600 9,600
====== ======
Balance Sheet
Amount Amount
Liabilities Assets
(Rs) (Rs)
Capital 25,000 Debtors 1,500
Add Net Profit 2,300 Stock 10,000
Less Drawings 2,000 25,300 Plant & Machinery 5,700
Furniture & Fixture 1,500
Creditors 7,000 Bills Receivables 2,000
Bills Payable 400 Land & Building 10,000

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Cash 1,600
Bank 400
32,700 32,700
======= ======
In order to arrive at the balance sheet of a business, one needs to prepare the trading account and profit and loss
account first. This account is prepared to arrive at the figure of revenue earned or loss incurred during a period.
34. Trading Account of Mr. Alok

for the year ended March 31, 2019
Dr. Cr.
Amount Amount
(₹) (₹)
To Opening Stock 44,840 By Sales 1,78,215
To Purchases 1,28,295 Less: Return Inwards 2,390 1,75,825
To Wages 20,485 By Closing Stock 64,480
Less: Erection Charges of New Machinery 600 19,885
To Gross Profit (Balancing Figure) 47,285
2,40,305 2,40,305
Profit and Loss Account of Mr. Alok for
the year ended March 31, 2019
Dr. Cr.
Amount Amount
(₹) (₹)
To Depreciation: By Gross Profit 47,285
Machinery 750 By Commission 2,820
Furniture 448 1,198 Less: Comm. Received in advance 300 2,520
To Old Bad Debts 1,810
Add: Further Bad Debts 500
Add: New Provision 1,450 3,760
To Rent 2,810
To Interest on Loan 500
Add: Outstanding 300 800
To Salaries 5,500
To Travelling Expenses 945
To Insurance 200

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To Repairs 1,685
To Discount Allowed 2,435
To Net Profit (Balancing Figure) 30,472
49,805 49,805
Balance Sheet of Mr. Alok as
at March 31, 2019
Amount Amount
Liabilities Assets
(₹) (₹)
Capital 59,700 Fixed Assets
Add: Net Profit 30,472 Machinery 14,400
Less: Drawings 5,275 84,897 Add: Erection charges 600
8% Loan 10,000 Less: Depreciation 750 14,250
Current Liabilities Furniture 4,480
Creditors 29,815 Less: Depreciation 448 4,032
Outstanding Interest 300 Current Assets
Commission received in advance 300 Closing Stock 64,480
Bills receivables 4,750
Debtors 30,000
Less: Bad Debts 500
Less: Pro. for Doubtful Debts 1,450 28,050
Cash in Hand 9,750
1,25,312 1,25,312
Working Note:-
Calculation of Depreciation:-
×
Depreciation of Machinery = ₹14,400 + ₹600 5% = ₹ 750
Calculation of Provision for Doubtful debts:-
Provision for doubtful debts = Sundry Debtors - Further Bad debts - Amount recovered × Rate
×
Provision for doubtful debts = (₹30,000 - ₹500 - ₹500) 5%
Provision for doubtful debts = ₹1,450
When adjustments are given in trial balance all the adjustments will be taken in the balance sheet only. Adjustments
that are given after trial balance will be shown both in trading and profit and loss account and balance sheet. To
practice more questions & prepare well for exams, download myCBSEguide App. It provides complete study material
for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8 App to create similar papers with
their own name and logo.
OR
The Trading and Profit and Loss account & Balance Sheet of MMN will be prepared in the following manner :
Trading and Profit and loss Account for

the year ended 31st December, 2013
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Dr Cr
Particulars Amt(Rs) Particulars Amt(Rs)
To Opening Stock 26,420 By Sales 91,230
To purchases 42,160 Less : Sales Return (1,760) 89,470
Less : Purchases Return (8,460) 33,700 By Closing Stock 29,390
To Wages 21,470
To Carriage Inwards 4,370
To Coal, Gas and Water 720
To Gross Profit transferred to Profit & Loss

32,180
A/c
1,18,860 1,18,860
To Salaries 4,670 By Gross Profit b/d 32,180
To Bank Charges 140 By Discount 120
To Rates and Taxes 840 By Apprentice Premium(note 1) 500
(-)Prepaid rates & taxes (240) 600 (-)Unexpired Premium (400) 100
By Old Provision for Doubtful

To Trade Expenses 1,990 2,470
Debts
To Fire Insurance 490
(-)Prepaid insurance (125) 365
To Provision for Doubtful Debts
To Depreciation on
Land and Building 625
Plant and Machinery 1,427
Furniture and fixtures 125 2,177
To Net Profit Transferred to Capital A/c 23,038
34,870 34,870
Balance Sheet as at 31st
December,2013
Liabilities Amt(Rs) Assets Amt(Rs)
Sundry Creditors 12,170 Land and Building 25,000
Apprentice Premium Received in Advance 400 (-)Depreciation (625) 24,375
Capital 90,000 Plant and Machinery 14,270
(+)Net Profit 23,038 (-)Depreciation (1,427) 12,843
1,13,03 Furniture and Fixtures 1,250

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(-)Drawings 6,480 1,06,558 (-)Depreciation (125) 1,125
Opening Balance 10,000 Debtors 37,800
(-)Provision for Doubtful

(-)Drawings 4,452 (1,890) 25,910
Debts
5,548 Bills Receivable 1,270
(+)Net Profit gtransferred from Profit & Loss

37,666 43,214 Closing Stock 29,390
A/c
Cash at Bank 13,000
Cash in Hand 850
Prepaid fire insurance 125
Prepaid Rates and Taxes 240
1,19,128 1,19,128
Note :
1. Apprenticeship premium is a revenue income of the business. Unearned premium means, premium received in
advance. Thus, it has been deducted from the income received. The amount of unearned premium will be shown in
liability side of Balance sheet.

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Class 11 - Accountancy Sample Paper - 01

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.

1.Goods taken by the proprietor for personal use is

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.

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d) A is false but R is true.

Purchase of machine by cash means:

a) Increase in asset and decrease in the asset

c) The decrease in asset and increase in capital

d) Increase in asset and decrease in liability

5. Which of the following is an assets?

7. The nature of accrued income is

Which of the following is not a limitation of accounting?

a) Evidence in Legal Matters

b) Based on accounting conventions

d) Omission of Qualitative Informations

8. Which of the following equation is correct?

a) Assets + Capital = Liabilities

b) Assets+ Liabilities= Capital

c) Assets+ Liabilities= Capital

9. Rule of Debit and Credit for personal account is

a) Dr. the receiver and Cr the giver

b) Dr. what goes out and Cr what comes in

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c) Debit as well as credit balance

Financial statements are prepared on 31st March every year.

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13. Which of the following is not a fixed asset?

16. Which of the following is not a fixed asset?

a. Balance with bank

b. Plant and Machinery

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17. Journal is called

a) A book of primary entry

b) A book of secondary entry

c) A book of final entry

d) Both secondary entry and final entry

18. Give two examples of Nominal Accounts.

19. What is Ledger?

20. Distinguish between debtors and creditors.

1.Goods taken by the proprietor for personal use is

Both A and R are true and R is the correct explanation of A.

Both A and R are true but R is not the correct explanation of A.

A is true but R is false.

A is false but R is true.

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Purchase of machine by cash means:

increase in asset and decrease in the asset

the decrease in asset and increase in capital

increase in asset and decrease in liability

Which of the following is an assets?

(i) Dr.

Dr.

Dr.

Dr.

(v) To

Dr.

Dr.

(ix) To

(x) Dr.