SAMPLE QUESTION PAPER - 2

Accountancy (055)
Class XI (2024-25)

Time Allowed: 3 hours Maximum Marks: 80

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. Which of the following source documents is used for depositing cash or cheques [1]
into bank?

a) Pay note b) Counterfoil

c) Cash slip d) Pay-in-slip

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.

c) A is true but R is false. d) A is false but R is true.

3. Bank account is a: [1]

a) Real account b) Nominal account

c) Personal account d) Revenue account

4. What will be the effect on the accounting equation for outstanding expenses? [1]
(Options are in the format of assets, liabilities, capital).

a) No change, Increase, Decrease b) Decrease, Increase, Decrease

c) Decrease, Decrease, No change d) Decrease, No change, Decrease

OR
A mathematical expression, which shows that the ________ and ________ of a firm are
equal, is known as accounting equation.

a) liabilities and capital b) liabilities and assets

c) Transactional d) assets and capital

5. Which of this information is present on the invoice? [1]

i. Party to whom goods are sold
ii. Goods sold
iii. Total sale amount

a) (ii) and (iii) b) (i) and (ii)

c) (i) and (iii) d) All of these

6. The supply of goods or services in exchange of money between two parties is [1]
known as:

a) Service transactions b) Goods transactions

c) Business transactions d) Credit transactions

OR
Which of these are example(s) of short-term creditors?

a) Borrowing from banks b) Suppliers of goods and services

on credit

c) Both financial institutions and d) Financial institutions

suppliers of goods and services
on credit

7. Features of reserves are: [1]

 a) It is created out of divisible b) Their creation is voluntary
profits

c) All of these d) They are available for

distribution as dividends

8. Real account (which include cash and all other assets) will usually show: [1]

a) Debit Balance b) Both debit and credit balance

c) Negative balance d) Credit Balance

OR
Credit means:

a) an increase in liability b) a decrease in liability

c) a decrease in proprietor's equity d) an increase in asset

9. Cost concept means: [1]

a) Sale of goods at cost plus b) Sale of goods at market price

percentage of cost

c) Sale of goods at cost price d) ​Recording of asset in the books

at cost price

10. Accounting standards are formulated by [1]

a) By Companies Act b) By Institute of Chartered

Accountants of India

c) By Planning Commission d) By Institute of Company

Secretaries of India

11. Which reserve is created out of capital profits [1]

a) General Reserves b) Specific Reserves

c) Capital Reserves d) Revenue Reserves

12. Which one of the following is not a fictitious asset? [1]

a) Deferred revenue expenditure b) Loss on issue of debentures

 c) Goodwill d) Discount on issue of shares

13. A ________ is prepared when a party is to be given a credit for reasons other than [1]
credit purchase.

a) credit note b) Account note

c) written note d) debit note

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

a) Increase stock b) Reduce cash

c) Increase cash d) Reduce Bank

15. Which of the following will be treated as drawings: [1]

A. Withdrawing money for payment of salary to employees
B. Withdrawing money for payment to creditors
C. Withdrawing money from the business for private expenses
D. Withdrawing money for the purchase of an asset

a) Only C is correct b) Only B is correct

c) Only A is correct d) Only D is correct

OR
Consider the following items:
i. Prepaid Salary
ii. Accrued Interest (Receivable)
iii. Loan (Short term)
iv. Bank Overdraft
Current Liability would include:

a) iii, iv b) iv, iii, i

c) i, ii, iii, iv d) ii, iii, iv

16. In the Purchases Book, transactions recorded are [1]

 a) cash purchases of goods dealt b) purchase of anything.
in.

c) credit purchases of goods dealt d) all purchases of goods dealt in.

in.

17. Creation of provision is: [1]

a) Necessary b) Voluntary

c) Unnecessary d) Illegal

18. What do you understand by balancing of account? [3]

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.

20. Distinguish between Capital Expenditure and Revenue Expenditure. [3]

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.

24. Journalise the following transactions: [6]

2023
April
Received an order for goods for ₹ 1,20,000 from M/s Ram & Sons.
1
April Received order for goods from M/s Shekhar & Co. of ₹ 5,00,000 along
3 with a cheque for ₹ 1,80,000 as advance.
April Placed order for goods with M/s Gupta & Sons of ₹ 2,50,000; paid them ₹
5 1,00,000 by cheque in advance.
April
Gupta & Sons supplied goods of ₹ 2,50,000.
7
April Paid a cheque for 60% of the balance amount due to Gupta & Sons on the
10 account.
 April Goods for ₹ 20,000 and furniture of the book value of 10,000 destroyed by
15 fire.
April Goods costing ₹ 50,000 were damaged in transit; a claim was made on
20 railway authorities for the same.
April Received from Salesman ₹ 60,000 for goods sold by him after deducting
22 his travelling expenses ₹ 4,000.
April Sold goods to Vishesh costing ₹ 40,000 at a profit of 25% and allowed him
25 10% trade discount and paid for cartage ₹ 1,000 to be charged from him.
April Received a cheque of ₹ 40,000 from the railway authorities in full
28 settlement of a claim for damages in transit.

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.

25. Pass Journal Entries to rectify the following errors: [6]

These errors are located after the preparation of Trial Balance.
i. ₹ 17,000 paid in cash for purchase of a Typewriter was charged to office
expenses account.
ii. Credit sale to Abhishek ₹ 5,000 were posted to the Credit of his account.
iii. Cash sales ₹ 20,000 were posted to commission received Account ₹ 200.
iv. Wages Paid for the construction of office ₹ 9,090 were debited to building
Account.
v. Salary payable to Amar ₹ 12,000 was not recorded in the books.

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]

a) Trading Account b) Profit and Loss Account

c) Any of Trading Account or d) Balance Sheet

Profit & Loss Account.

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

c) Income earned but not received d) Income received in advance

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.