Grade 11 Model Questions Principles of Accounting-I

1. The following transactions are given:

i) Started business with cash Rs.4,00,000 and machinery Rs.2,00,000
ii) Purchased goods Rs.32,000 on cash and Rs.8,000 on credit.
Required: Accounting Equation
2. You are provided with the following financial information:
i) Commenced business with cash Rs.80,000 and furniture Rs.20,000
ii) Sold goods worth Rs.10,000 on credit and Rs.5,000 on cash.
Required: Accounting Equation
3. Calculate the amount of cost of goods sold from the following information:
Opening stock Rs.40,000 Purchase Rs.3,50,000
Wages Rs.20,000 Closing stock Rs.30,000
(Hint: Cost of goods sold= opening stock+ purchase+ wages-closing stock)
4. Compute the amount of cost of goods sold from the following information:
Opening stock Rs.10,000 Purchase Rs.2,50,000
Wages Rs.25,000 Closing stock Rs.15,000
5. Following cash and banking transactions are given:
March 1 Cash in hand Rs.45,000 and cash at bank Rs.10,000
March 4 Deposited cash into bank Rs.20,000.
March 10 Received cash from customer Rs.11,500
March 25 Bought goods and paid for cash Rs.10,000 and by cheque Rs.15,000.
Required: Cash book with cash and bank column
6. Following cash and banking transactions are given:
March 1 Cash in hand Rs.25,000 and cash at bank Rs.30,000
March 4 Deposited cash into bank Rs.7,000.
March 10 Purchased goods from Rohit for Rs.12,000 and issued cheque for payment.
March 25 Withdrawn cash from bank Rs.9,500 for office use.
Required: Cash book with cash and bank column
7. Following are the transactions relating to sales:
Falgun 5 Sold to Nima Dealers
20 tables @ Rs.2,000 each
30 chairs @ Rs.800 each
(10% trade discount on both)
Falgun 8 Sold to Rajan Store
15 beds @ Rs.4,000 each
5 tables @ Rs.5,000 each
Required: Sales book
8. Following are the transactions relating to purchase:
Chaitra 10 Purchased on credit from Furniture Store
5 tables @ Rs.2,000 each
20 chairs @ Rs.500 each
Chaitra 23 Purchased pn credit from ABC furnitures
2 sets of sofa @ Rs.10,000 per set
4 tables @ Rs.2,500 per table
Required: Purchase book
9. From the following particulars, prepare a bank reconciliation statement.
a) Balance as per cash book Rs.40,000.
b) Cheque issued of Rs.15,000 but not presented for payment.
c) Bank charges debited by bank Rs.2,000 but not recorded in cash book.
d) Two cheques of Rs.2,000 and Rs.3,000 were sent to the bank for collection but not yet collected.
e) A customer directly deposited into bank Rs.8,000 was not recorded in cash book.
f) Cheque of Rs.5,000 deposited into bank but dishonored by bank.
 Required: Bank Reconciliation Statement.

10. On 31st Ashad, 2070, the balance as per cash book was Rs.40,000.
a) Cheque of Rs.15,000 was issued for payment but not yet presented in bank.
b) Cheque amounting Rs.10,000 was sent for collection but not yet collected by bank.
c) Insurance premium paid by bank but not entered in cash book of Rs.400
d) Dividend collected by bank but not recorded in cash book Rs.2,000
Required: Bank Reconciliation Statement
11. Following information are extracted from the trial balance
Particulars Debit (Rs) Credit (Rs)
Sundry debtors 30,000
Provision for bad debt 2,500
Additional information:
a) Bad debt written off Rs. 2,000
b) Provision for bad debt has been created @ 10 % of debtors
Required: Provision for bad debt account.
12. An unadjusted trial balance of a trading concern is given below:
Trial balance
As on 31st Chaitra, 2079
Particulars Debit (Rs) Particulars Credit (Rs)
Purchase 1,70,000 Capital 2,00,000
Insurance 7,000 Sales 3,10,000
Machinery 1,30,000 Creditors 1,80,000
Wages 70,000
Debtors 30,000
Salaries 90,000
Furniture 1,20,000
Cash at bank 73,000

Total 6,90,000 Total 6,90,000

Additional information:
a) Outstanding wages Rs 10,000
b) Depreciation to be charged @ 10% on machinery
Required: Adjusted Trial balance.
13. An unadjusted trial balance of a trading concern is given below:
Trial balance
As on 31st Chaitra, 2080
Particulars Debit (Rs) Particulars Credit (Rs)
Purchase 1,50,000 Capital 1,00,000
Wages 20,000 Sales 2,00,000
Salaries 30,000 Creditors 50,000
Machinery 50,000
Debtors 60,000
Rent 30,000
Cash 10,000

Total 3,50,000 Total 3,50,000

Additional information:
a) Prepaid rent Rs 1,000
b) Depreciation to be charged @ 10% on machinery
Required: Adjusted Trial balance.
14. Transactions related to machinery are provided to you:
Baishakh 1, 2068 Machinery 'Ka' was purchased for Rs.2,00,000.
Kartik 1, 2068 Machinery 'Kha' was purchased for Rs.3,00,000.
Shrawan 1, 2069 Machinery 'Ka' was sold for Rs.1,60,000.
Shrawan 1, 2069 Machinery 'Ga' was purchased for Rs.4,00,000.
The company charges depreciation @ 10% on straight line method. Accounts are closed on 31st Chaitra each year.
Required: Machinery account from 2068 to 2070
15. Given below is the trial balance of a concern for the last year ended 31st Chaitra:
Particulars Rs.
Opening stock 24,000
Purchase 4,60,000
Sales 7,20,000
Rent 52,000
Advertising 8,000
Carriage inward 10,000
Wages 42,000
Salaries 65,000
Furniture 1,50,000
Sundry expenses 12,000
Discount received 6,000
Commission received 5,000
Additional Information:
a) Closing stock was valued at Rs.75,000
b) Depreciate furniture by 10%
Required:
a) Trading account b) Profit and loss account

16. The balance sheet as on 30th Chaitra 2074 and receipt and payment account for the year ended 30th Chaitra 2075 of
a club are as under:
Balance sheet
As on Chaitra 30, 2074
Liabilities Rs. Assets Rs.
Capital fund 1,02,000 Building 58,000
Creditors 8,000 Furniture 40,000
Subscription due 3,000
Cash balance 9,000
Total 1,10,000 Total 1,10,000
Receipt and Payment account
For the year ended Chaitra 30, 2075
Receipts Rs. Payments Rs.
To Balance b/d 9,000 By Salaries 30,000
To Subscriptions 35,000 By Printing charge 5,000
To Donation 20,000 By Miscellaneous exp. 8,000
To Sale of old 2,000 By Balance c/d 23,000
newspapers
Total 66,000 Total 66,000
Additional information:
a) Outstanding subscription for the current year Rs.2,000
b) Depreciate furniture by 10%
Required:
(i) Income and expenditure account
(ii) Balance sheet as on 30th Chaitra, 2075
17. A club has given the following information:
Balance sheet
As on 31st Chaitra , 2071
Liabilities Rs. Assets Rs.
Capital fund 1,00,000 Machinery 90,000
Salary due 5,000 Prepaid insurance 1,000
Advance subscription 10,000 Subscription due 5,000
Cash balance 19,000
Total 1,15,000 Total 1,15,000
Receipt and Payment account
For the year ended 31st Chaitra , 2072
Receipts Rs. Payments Rs.
To Balance b/d 19,000 By Salaries 20,000
To Subscriptions 50,000 By Insurance 10,000
To Entrance fee 20,000 By Repairs 15,000
To Sundry receipts 10,000 By Machinery 50,000
By Balance c/d 4,000
Total 99,000 Total 99,000
Additional information:
a) Pre-paid insurance Rs.2,000
b) Depreciate machinery by 10%
c) Outstanding salaries Rs.5,000
d) Subscription due Rs.10,000
Required:
(i) Income and expenditure account
(ii) Balance sheet as on 31st Chaitra, 2072
18. A trader started a business with cash Rs.50,000 and plant Rs.1,50,000 on 1st Shrawan 2078. He maintains his books of
account under single entry system. He introduced additional capital in the business Rs.30,000. He withdrew Rs.1,500
per month. His position as the end of the year 31st Chaitra 2078 was:
Cash Rs 30,000 Building Rs 2,25,000
Debtors Rs 10,000 Creditors Rs.25,000
Bank loan Rs.40,000
Required:
a) Closing statement of affairs
b) Statement of profit and loss
19. Following transactions are taken from a government office. The office has submitted payment order to DTCO for paying
the following expenditure.
a) 2072, Chaitra 2: A payment order of Rs.25,000 was issued for the payment staff uniform.
b) 2072, Chaitra 8: Issued a payment order of Rs.10,000 as an advance to field officer Mr.Bijay for an official tour.
c) 2072, Chaitra 28: Issued a payment order of Rs 1,18,600 for distributing employee remuneration for the month of
Chaitra after deducting provident fund of Rs.8,000, social security tax Rs.1,000, income tax Rs.6,000
Required: Journal Voucher
20. The following information are given:
Jan 1 Started business with cash Rs 5,50,000.
Jan 5 Deposited cash into bank Rs.1,50,000
Jan 12 Purchased goods worth Rs.1,20,000 from Mr.Rabin on credit.
Jan 20 Bought furniture of Rs.48,000
Jan 24 Sold goods worth Rs.2,00,000 and received cash Rs.80,000 and cheque Rs.1,20,000
Jan 28 Paid for salary Rs.40,000.
Required:
a) Journal entries
b) Necessary ledger
c) Trial balance
21. Following transactions are taken from a government office. The office has submitted payment order to DTCO and
DTCO paid the expenditure at the end of same month.
Shrawan 5: Issued a cheque of Rs.5,000 as advance to purchase office supplies.
Shrawan 15: Issued a cheque of Rs.40,000 to purchase furniture.
Shrawan 28: Issued a cheque for employee remuneration of Rs.59,300 for the month of Shrawan after deducting
provident fund Rs.14,000, income tax Rs.3,000 and social security tax Rs.700.
Required: Bank cash book

22. Following information of District Education Office are provided to you:

Annual Expenditure Expenditure
B.H. No. Budget Head
Budget upto Asoj of Kartik
21111 Employee remuneration 2,40,000 1,40,000 20,000
21132 Dearness allowance 10,000 6,000 2,000
28142 House rent 50,000 25,000 15,000
22311 Office supplies 50,000 15,000 5,000
22213 Medicine purchase 70,000 30,000 30,000
31123 Furniture 60,000 28,000 12,000
Total 4,80,000 2,44,000 84,000
Additional information:
a) Uncleared advance for furniture Rs.2,000.

Required: Statement of expenditure for the month of Kartik.

23. Following is the trial balance of Ramesh Trading House as on Dec.30, 2022.
Particulars Dr.Rs. Cr.Rs.
Opening stock 10,000
Purchase 1,20,000
Salary 12,000
Rent 13,000
Wages 14,000
Salesman commission 10,000
Advertisement 8,000
Machinery 2,00,000
Interest on loan 7,000
Cash 1,00,000
Debtors 20,000
Insurance premium 26,000
Investment 60,000
Sales 3,00,000
Capital 2,00,000
Creditors 20,000
Commission received 30,000
Bank loan 50,000

Total 6,00,000 6,00,000

Additional information:
(i) Closing stock Rs.40,000
(ii) Depreciation on machinery @ 10%
(iii) Prepaid rent Rs.3,000
(iv) Outstanding advertisement expenses Rs.4,000
(v) Income tax @ 20%
Required: (a) Multi-step Income Statement
 (b) Classified Balance Sheet

Theory Questions
a. Give the meaning of book keeping.
b. Why is book keeping important? Give any two reasons.
c. Write any two objectives of accounting.
d. Define GAAP.
e. Define NFRS.
f. What is a trial balance? Write any two reasons for preparing trial balance.
g. What are the parties involved in a cheque?
h. Define dishonor of cheque.
i. Why is reserve created in a business organization?
j. Define capital expenditure.
k. What is mobile banking?
l. Mention any four reasons for the dishonor of cheque.
m. Introduce government accounting.
n. State any four features of government accounting.
o. Define bank cash book.
p. Explain the accounts involved in a bank cash book.
q. Write any five differences between government accounting and commercial accounting.
r. Give an adjustment entry for the transaction ‘Rent due Rs.4,000.’

All The Best !!!