Account 11th 2
Account 11th 2
Accountancy (055)
Class XI (2024-25)
2. Assertion (A): Accounting is merely concerned with recording of the financial [1]
events.
Reason (R): Accounting also provides insightful information that helps businesses
in their decision making process.
a) Both A and R are true and R is b) Both A and R are true but R is
the correct explanation of A. not the correct explanation of
A.
OR
A mathematical expression, which shows that the ________ and ________ of a firm are
equal, is known as accounting equation.
6. The supply of goods or services in exchange of money between two parties is [1]
known as:
OR
Which of these are example(s) of short-term creditors?
8. Real account (which include cash and all other assets) will usually show: [1]
OR
Credit means:
13. A ________ is prepared when a party is to be given a credit for reasons other than [1]
credit purchase.
14. Sumit owns a company and purchase goods on credit from his personal funds and [1]
used the same for business purpose. What is the effect on assets
OR
Consider the following items:
i. Prepaid Salary
ii. Accrued Interest (Receivable)
iii. Loan (Short term)
iv. Bank Overdraft
Current Liability would include:
a) Necessary b) Voluntary
c) Unnecessary d) Illegal
OR
Journalise the following transactions:
i. Goods destroyed by fire for Rs 4,500
ii. Paid Rs 1,500 in cash as wages on the installation of machinery
iii. Issue a cheque in favour of M/s. Parmatma Saran & Sons on accounts of purchase of
goods Rs 7,500
iv. Goods sold costing Rs 6,000 of M/s. Kalu sons at an invoice price of 10% above cost
less 5% Trade Discount.
19. Cash Basis of Accounting is not a better basis for depicting the correct financial [3]
position of an enterprise. Do you agree? Give reasons in support of your answer.
OR
Explain the need for IFRS.
21. From the following balances, taken from the books of M/s Dhruv Rathee & Sons as [4]
at 31st March 2023, prepare a Trial Balance in proper form:
Name of Accounts (₹) Name of Accounts (₹)
Cash in Hand 4,500 Machinery 24,000
Bank Overdraft 8,000 Land & Buildings 50,000
Opening Stock 20,000 Debtors 18,400
Purchases 80,000 Creditors 8,500
Purchases Returns 2,000 Bills Receivable 2,850
Sales 1,30,000 Bills Payable 1,650
Sales Returns 5,000 Capital 60,000
Travelling Expenses 1,800 Drawings 6,000
Discount Allowed 600 Rent 3,700
Discount Received 1,500 Salaries 3,600
Loan (Cr.) 10,000
Interest on Loan 1,200
22. Enter the following transactions in a single column Cash Book: [4]
2023 ₹
March 1 Commenced business with Cash 20,000
March 2 Bought goods for Cash 5,000
March 5 Sold goods for Cash 4,000
March 10 Goods purchased from Rajesh on Credit 10,000
March 13 Paid to Rajesh 7,000
March 15 Cash Sales 8,000
March 18 Purchased furniture for Cash 6,000
March 20 Paid Wages 380
March 24 Paid Rent 400
March 26 Received Commission 600
March 28 Withdrew for personal expenses 1,000
March 31 Paid Salary 900
23. Malhotra and Sons find that the bank balance shown by their Cash Book on [4]
December 31, 2023 is ₹ 40,500 (credit) but the Pass Book shows a difference due to
the following reasons:
i. A cheque for ₹ 5,000 drawn in favour of Manoj has not yet been presented for
payment.
ii. A post-dated cheque for ₹ 900 has been debited in the bank column of the Cash
Book but it could not have been presented in any case.
iii. Cheques totaling ₹ 10,200 deposited with the Bank have not yet been collected
and an another cheque for ₹ 4,000 deposited in the account has been
dishonoured.
iv. A bill payable for ₹ 10,000 was retired by the Bank under a rebate of ₹ 150 but
the full amount of the bill was credited in the bank column of the Cash Book.
Prepare a Bank Reconciliation Statement and find out the balance as per Pass Book.
OR
On 31st March, 2023, Bank Statement of Gopal shows credit balance of ₹ 33,570
whereas Cash Book showed debit balance of ₹ 53,000.
It was observed that the differences were because of the following:
i. Cheques and drafts sent to the bank but not collected and credited, amounted to ₹
7,900 while cheque for ₹ 2,000 was received unpaid.
ii. Three cheques drawn for ₹ 3,000; ₹ 1,500 and ₹ 2,000 respectively were not
presented for payment till 30th April, 2023.
iii. Bank has paid a cheque of ₹ 10,000 but it has not been entered in the Cash Book and
a cheque of ₹ 5,000 which was discounted with the bank was dishonoured by the
drawee on the due date.
iv. Bank has charged ₹ 130 as its commission for collecting outstation cheques and had
credited an interest of ₹ 100 in the account.
v. A wrong debit of ₹ 5,000 was made by the bank, which was reversed on 4th April,
2023. Prepare Bank Reconciliation Statement as on 31st March, 2023.
OR
st
Pass Journal entries for the following adjustment on 31 March, 2023:
i. Interest due but not received ₹ 10,000.
ii. Salaries due to staff ₹ 50,000.
iii. Out of the rent paid this year, ₹ 5,000 is for the next year.
iv. Provide 10% depreciation on Furniture costing ₹ 1,00,000
v. Goods used in making Furniture (Sales Price ₹ 5,000; Cost ₹ 4,000).
vi. Received commission of ₹ 20,000 by cheque, half of which is in advance.
vii. Allow interest on capital ₹ 8,000
viii. Charge interest on drawings ₹ 1,500.
OR
Rectify the following errors:
i. Sold old furniture of A for ₹ 11,500 was passed through the Sales Book.
ii. Credit purchases of ₹ 12,000 from Ashely omitted to be recorded in the books.
iii. Repair made were debited to Building Account ₹ 7,000.
iv. Credit Sale of ₹ 1,800 to Anshika was recorded as ₹ 8,100.
v. ₹ 6,000 paid for office furniture was debited to the office expense account.
vi. A credit sale of goods ₹ 15,000 to Rajesh has been wrongly passed through the
Purchases Book.
26. Sumit Bros, purchased a plant on 1st April, 2021 for ₹ 7,00,000. Depreciation is [6]
st
charged @ 10% p.a. on the original cost. On 1 January, 2023, the plant was found
unsuitable and sold for ₹ 4,20,000. Prepare the Plant Account, Depreciation
Account and Plant Disposal Account if depreciation is charged to Plant Account.
The accounts are closed on 31st March every year.
OR
A firm purchased on 1st April 2015 certain machinery for Rs.5,82,000 and spent
Rs.18,000 on its installation. On 1st October 2015, additional machinery costing
Rs.2,00,000 was purchased. On 1st October 2017, the machinery purchased on 1st April
2015 was auctioned for Rs.2,86,000 plus CGST and SGST @ 6% each and new
machinery for Rs.4,00,000, plus IGST @ 12% was purchased on the same date.
Depreciation was provided annually on 31st March at the rate of 10% on the Written
Down Value Method. Prepare the Machinery Account for the three years ended 31st
March 2018.
Part B
27. Calculate the profit from the following information: Opening capital: Rs.1,20,000, [1]
closing capital - Rs.1,80,000, Drawings - Rs.10,000, capital added during the year-
Rs.20,000.
a) Rs.60,000 b) Rs.40,000
c) Rs.50,000 d) Rs.45,000
OR
Generally, incomplete records are maintained by:
a) Society b) Company
c) Government d) Trader
28. Carriage Outward is shown in: [1]
29. Insurance paid Rs. 4000(including premium of Rs.3000 per annum) paid up to 30th [1]
June by what amount insurance prepaid amount should be debited
a) Rs.750 b) Rs.1000
c) Rs.4000 d) Rs.3000
OR
Unearned income means
a) Income due but not received b) Income of the firm in the year
of receipt
30. Operating profit earned by M/s Arora & Sachdeva in 2016-17 was ₹ 17,00,000. Its [3]
non-operating incomes were ₹ 1,50,000 and non-operating expenses were ₹
3,75,000. Calculate the amount of net profit earned by the firm.
31. Prepare Trading Account as on 31st March, 2023 from the following balances: [3]
₹
Stock on 1st April, 2022 10,000
Sales Return 5,000
Sales 2,00,000
Wages 11,000
Purchases 2,00,000
Purchases Return 2,500
Carriage Inwards 1,500
Carriage Outwards 3,000
Freight Inwards 2,500
The Closing Stock of goods as on 31st March, 2023 is ₹ 20,000.
32. Extracts of Trial Balance [3]
as on 31st March, 2013
Name of Accounts Debit Balance(Rs) Credit Balance(Rs)
Commission Received 9,000
Additional Information
Commission earned but not received Rs 1,800.
Pass an adjusting entry and show how will this appear in final accounts.
33. From the following information supplied by Ms. Sudha, calculate the amount of [6]
‘Net Sales’
₹
Debtors on April 01, 2016 65,000
Debtors on March 31, 2017 50,000
Opening balance of bills receivable as on April 01, 2016 23,000
Closing balance of bills receivable as on March 31, 2017 29,000
Cash received from debtors 3,02,000
Discount allowed 8,000
Cash received against bills receivable 21,000
Bad debts 14,000
Bill receivables (dishonoured) 20,000
Cash sales 2,25,000
Sales return 17,000
OR
Ram Prashad maintains his books on Single Entry System, and from them and the
particulars supplied, the following figures were gathered together on 31st March 2023:
Books Debts, ₹ 10,000, Cash in Hand, ₹ 510, Stock in Trade (Estimated) ₹ 6,000,
Furniture and Fittings, ₹ 1,200, Trade Creditors, ₹ 4,000, Bank Overdraft, ₹ 1,000. Ram
Prashad stated that he started business on 1st April, 2022 with Cash ₹ 6,000 paid into
bank but stocks valued at ₹ 4,000. During the year he estimated his drawings to be ₹
2,400. You are required to prepare the statement, showing the profit for the year, after
writing off 10% for depreciation on furniture and fittings.
34. From the following balances, prepare Trading, Profit and Loss A/c and a Balance [6]
Sheet as at 31st March 2023:-
Particulars ₹ Particulars ₹
Opening Stock 20,000 Goodwill 16,000
Purchases 2,92,000 Furniture and Fittings 58,000
Fuel and Power 34,000 Repair Charges 2,900
Capital 1,60,000 Bank 18,000
Sales 5,90,000 Salaries 1,10,000
Rent 10,000 General Expenses 18,000
Returns Inwards 16,000 Debtors 2,30,000
Cash Discount allowed 15,000 Creditors 1,35,000
Cash Discount received 19,000 Output CGST 5,000
Drawings 58,100 Output SGST 5,000
Input CGST 8,000
Input SGST 8,000
Take the following adjustments into account:
i. General expenses include ₹ 5,000 chargeable to Furniture purchased on 1st
October 2022.
ii. Create a provision of 5% on debtors for Bad and Doubtful Debts after treating ₹
30,000 as a Bad-debt.
iii. Depreciation on furniture and Fittings for the year is to be at the rate of 10% per
annum.
iv. Closing Stock was ₹ 40,000, but there was a loss by fire on 20th March to the
extent of ₹ 8,000. Insurance Company admitted the claim in full.
v. a. Goods costing ₹ 2,500 were used by the proprietor.
b. Goods costing ₹ 1,500 were distributed as free samples.
Goods were purchased paying CGST and SGST @ 6% each.
OR
From the following balances of the year ended 31st December, 2013 and additional
information, prepare the trading and profit and loss account and the balance sheet M/s
Ram Lai & Sons.
Name of Accounts Amt(Rs) Name of Accounts Amt(Rs)
Capital 80,000 Insurance 600
Purchases 82,000 Salaries 12,500
Sales 1,10,000 Bad Debts 200
Return Outwards 1,000 Carriage on purchases 200
Building 45,000 Commission (credit) 1,500
Opening Stock 15,000 Cash in hand 5,000
Debtors 20,100 Cash at Bank 25,000
Creditors 28,000 Sales tax paid 5,000
Furniture 7,000 Sales tax collected 3,500
Wages 1,800 Interest on investment 500
Rent 5,100
Additional Information
i. Closing stock was valued at Rs 20,000.
ii. Provide depreciation on building @ 5% and on furniture @10%.
iii. Outstanding salaries Rs 1,000.
iv. Unexpired insurance Rs 50.
v. Accrued commission Rs 300.
vi. Provide for manager's commission at 5% on net profit after charging such
commission.
Solution
SAMPLE QUESTION PAPER - 2
Accountancy (055)
Class XI (2024-25)
Part A
1.
(d) Pay-in-slip
Explanation:
Pay-in-slip
2.
(d) A is false but R is true.
Explanation:
A is false but R is true.
3.
(c) Personal account
Explanation:
Accounts recording transactions with a person or group of persons are known as personal
accounts.
4. (a) No change, Increase, Decrease
Explanation:
Outstanding expenses will be treated as a liability because these are expenses that are due
to be paid but are not yet paid.
OR
April
Bank A/c Dr. 1,80,000
3
To Shekhar & Co. A/c (Advance)
1,80,000
(Advance received against an order of ₹ 5,00,000)
April
Gupta & Sons A/c(Advance) Dr. 1,00,000
5
To Bank A/c
(Paid Rs.1,00,000 advance against an order of ₹ 1,00,000
2,50,000)
April
Purchases A/c Dr. 2,50,000
7
To Gupta & Sons A/c
2,50,000
(Goods purchased)
Amount Amount
Date Particulars L.F.
Dr. Cr.
2023 ₹ ₹
April
Gupta & Sons A/c (1,50,000 × 60%) Dr. 90,000
10
To Bank A/c
90,000
(60 % of ₹ 1,50,000 paid on account)
April
Loss by fire A/c (20,000+10,000) Dr. 30,000
15
To Purchases A/c 20,000
To Furniture A/c
10,000
(Goods and furniture destroyed by fire)
April
Railway claim A/c Dr. 50,000
20
To purchases A/c
(Claim made from railways for goods damaged in 50,000
transit)
April
Cash A/c Dr. 60,000
22
Travelling Expenses A/c Dr. 4,000
To Sales A/c (60,000+4,000)
(Cash received from salesman after deducting his 64,000
travelling expenses)
April
Vishesh A/c (Note 1) (45,000+1,000) Dr. 46,000
25
To Sales A/c (40,000 × 90% × 125%) 45,000
To Cash A/c
(Goods sold on credit and paid for cartage ₹ 1,000 1,000
to be charged from him)
April
Bank A/c Dr. 40,000
28
Amount Amount
Date Particulars L.F.
Dr. Cr.
2023 ₹ ₹
Profit & Loss A/c (50,000-40,000) Dr. 10,000
To Railway Claim A/c
(Money received from Railway authorities against 50,000
the claim)
Total ₹ 8,60,000 8,60,000
Working Notes:
100
)
March 31 By Balance c/d 6,30,000
7,00,000 7,00,000
2022 2023
By Depreciation A/c (WN 1)
April 1 To Balance b/d 6,30,000 Jan. 1 52,500
(₹ 7,00,000 × 10
100
×
9
12
)
Jan. 1 By Plant Disposal A/c (Bal. Fig.) 5,77,500
6,30,000 6,30,000
DEPRECIATION ACCOUNT
Dr. Cr.
Date Particulars ₹ Date Particulars ₹
2022 2022
March 31 To Plant A/c 70,000 March 31 By Profit & Loss A/c 70,000
70,000 70,000
2023 2023
Jan. 1 To Plant A/c 52,500 March 31 By Profit & Loss A/c 52,500
52,500 52,500
PLANT DISPOSAL ACCOUNT
Dr. Cr.
Date Particulars ₹ Date Particulars ₹
2023 2023
Jan. 1 To Plant A/c 5,77,500 Jan. 1 By Bank A/c (Sale) 4,20,000
By Loss on Sale of Plant A/c
Jan. 1 (Profit & Loss A/c) 1,57,500
(Bal. Fig.) (WN 2)
5,77,500 5,77,500
Working Notes:
i. In the second year, depreciation will be charged for the nine months because the
st st
machinery is sold on 1 January, 2023, i.e., before closing the books on 31 March,
2023.
ii. Second year depreciation and loss on sale of plant will be transferred to Profit & Loss
st
Account on 31 March, 2023.
iii. Book value of plant on the date of sale is transferred to Plant Disposal Account since
depreciation is charged to Plant Account.
OR
MACHINERY ACCOUNT
Dr. Cr.
Date Particulars J.F. Rs. Date Particulars J.F. Rs.
To Bank A/c - By Depreciation
01.04.15 6,00,000 31.03.16 70,000
cost (M1) A/c
To Bank A/c
01.10.15 2,00,000 By Balance c/d 7,30,000
(M2)
8,00,000 8,00,000
By Deprecation
01.04.16 To Balance b/d 7,30,000 31.03.17 73,000
A/c
By Balance c/d 6,57,000
7,30,000 7,30,000
01.04.17 To Balance b/d 6,57,000 01.10.17 By Cash A/c 2,86,000
To Bank A/c By Profit & Loss
01.10.17 4,48,000 1,75,700
(M3) A/c
By Depreciation
31.03.18 63,800
A/c
By Balance c/d 5,79,500
11,05,000 11,05,000
01.04.18 To Balance b/d 5,79,500
Working Notes:
Machine Machine Machine
Particulars Total
I II III
Cost (5,82,000+18,000) 6,00,000 2,00,000 4,48,000
Less: Depreciation for 2015-16 @ 10% -60,000 -10,000 0 70,000
W.D.V. 5,40,000 1,90,000 4,48,000
Less: Depreciation for 2016-17 @ 10% -54,000 -19,000 0 73,000
W.D.V. 4,86,000 1,71,000 4,48,000
Less : Depreciation for 2017-18 @ 10% -24,300 -17,100 -22,400 63,800
W.D.V. 4,61,700 1,53,900 4,25,600
Less: Sale value -2,86,000
Loss on sale 1,75,700
Depreciation is calculated by Diminishing value method so it is calculated on balance
value of an asset or written down value of asset not on the cost of the asset.
GST paid on purchase of asset increase the cost of the asset.
Part B
27.
(c) Rs.50,000
Explanation:
Calculation of profit:
Opening capital: 1,20,000
less: closing capital 1,80,000
less: Drawings 10,000
add: capital added during the year 20,000
Profit 50,000
OR
(d) Trader
Explanation:
Generally, incomplete records are maintained by the trader. Incomplete records may be
due to a partial recording of transactions, as is the case with small shopkeepers such as
grocers and vendors.
28.
(b) Profit and Loss Account
Explanation:
Carriage Outward is an indirect expense hence it is shown in Profit and Loss Account.
29.
(b) Rs.1000
Explanation:
per annum premium is 3000 so 1000 is extra paid for next year so it is prepaid
OR
12
= 250
Total Depreciation = ₹ 5,800 + ₹ 250 = ₹ 6,050
Calculation of outstanding rent:
Outstanding Rent = 10,000 × 2
10
= ₹ 2,000
Calculation of Provision for Doubtful debts:-
Provision for doubtful debts = Sundry Debtors - further Bad debts × Rate
Provision for doubtful debts = (₹ 2,30,000 - ₹ 30,000) × 5 %
Provision for doubtful debts = ₹ 10,000
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.
OR
In the books of M/S Ram Lai & Sons
Trading and Profit and loss Account
for the year ended 31st December, 2013
Amount Amount
Particulars Particulars
(Rs) (Rs)
To Opening stock 15,000 By Sales 1,10,000
To Purchases 82,000 By Closing Stock 20,000
Less Return Outwards 1,000
To Wages 1,800
To Carriage on Purchases 200
To Gross Profit c/d 32,000
1,30,000 1,30,000
======== =======
To Rent 5,100 By Gross Profit b/d 32,000
To Insurance 600 By Interest on Investment 500
Less Unexpired Insurance 50 550 By Commission 1,500
To Salaries 12,500 Add Accrued Commission 300 1,800
Add Outstanding Salaries 1,000 13,500
To Bad Debts 200
To Depreciation on:
Building 2,250
Furniture 700 2,950
To Net Profit before Manager's
12,000
Commission
34,300 34,300
======= =======
To Manager's Commission(5/105 By Net Profit Before
571 12,000
× 12,000) Manager's Commission
To Net Profit after Manager's
11,429
Commission
12,000 12,000
====== =======
Balance Sheet
as at 31st December,2013
Amount Amount
Liabilities Assets
(Rs) (Rs)
Creditors 28,000 Cash in hand 5,000
Outstanding Salaries 1,000 Cash at Bank 25,000
Manager's Commission Payable 571 Closing Stock 20,000
Capital 80,000 Debtors 20,100
Add Net Profit 11,429 91,429 Advance Sales Tax Paid 1,500
Accrued Commission 300
Prepaid Insurance 50
Building 45,000
Less Depreciation 2,250 42,750
Furniture 7,000
Less Depreciation 700 6,300
1,21,000 1,21,000
========= ========
In addition to salaries, companies may offer a fixed percentage of their net profit to
managers as commission. This is done to motivate and encourage them to generate more
revenue for the company. Journal entry will be:
Profit and Loss A/C Debit
To Manager’s Commission A/C Credit