Roll No. Name: Date: 5.02.

2021

GRADE XI FINAL EXAMINATION (Set 1)

SUBJECT- ACCOUNTANCY
SESSION-2020-21

Time allowed: 3 Hours Maximum marks: 80

General Instructions:
1. All parts of a question should be attempted at one place
2. Show your workings clearly
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Q1 If accounting information is based on facts and it is verifiable by documents, it has the 1
quality of:
(a) Relevance (c) Understandability
(b) Reliability (d) Comparability
Q2 Why are the rules of debit and credit same for liability and capital? 1
Q3 Cash Book balance was ₹ 1,790 (Dr.). When compared with the bank statement, it was 1
identified that unpresented cheques were ₹ 1,040 and deposits not credited were ₹
820. Balance of the bank statement will be:
(a) ₹ 70 (Dr.) (c) ₹ 2,010 (Cr.)
(b) ₹ 1,570 (Cr.) (d) ₹ 3,650 (Cr.)
Q4 Name two types of Petty Cash Book. 1
Q5 …………Vouchers are the documentary evidence of the cash receipts and cash 1
payments.
Q6 Outstanding Salary is a: 1
(a) Real Account (c) Nominal Account
(b) Personal Account (d) None of these
Q7 Errors of Omission permit: 1
(a) Correct totalling of the balance sheet (c) the trial balance to match
(b) Correct totalling of the trial balance (d) None of these
Q8 Which of the following is not a qualitative characteristic of accounting information? 1
(a) Reliability (c) Comparability

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(b) Understandability (d) Materiality
Q9 X received a cheque of ₹ 10,000 from Y in settlement of dues of ₹ 10,500. The cheque 1
was dishonoured. The reversal of discount allowed by X will be recorded in:
(a) Cash Book (c) Both (a) and (b)
(b) Journal Proper (d) None of the above
Q10 Which of the following transactions will result in higher balance in the bank column of 1
cash book in comparison to Pass Book?
(a) Cheques issued but not presented for payment
(b) Interest allowed by Bank
(c) Bank charges entered twice in Cash Book

(d) Cheques paid into bank for collection but not yet credited
Q11 Goods were sold to Radha for ₹ 4,000 and to Sudha for ₹ 3,000. The transactions were 1
recorded properly in the Sales Book, but ₹ 3,000 was posted to Radha, while ₹ 4,000
was posted to Sudha. Identify the type of error.
Q12 Accounting voucher is prepared from: 1
(a) Source Voucher (c) Journal Entry
(b) Both (a) and (c) (d) None of these
Q13 Identified and measured economic events should be recorded in ……… order. 1
Q14 State with reason whether the following statement is True or False: 1
“Withdrawal of cash from business by the proprietor is credited to Drawings Account.”
Q15 If the rate of gross profit is 25% of Sales and Cost of Goods sold is ₹ 1,00,000. What 1
will be the amount of Gross Profit?
Q16 Balance in Output CGST Account is shown in the ……….side of the Balance Sheet. 1
Q17 A Provision is: 1
(a) An appropriation of profits (c) can be (a) or (b)
(b) A charge against profits (d) None of these
Q18 Purchase of Machinery for production is ………………expenditure. 1
Q19 State with reason whether the following statement is True or False: 1
“Capital reserves are normally created out of free or distributable profits.”
Q20 Which accounting principle is ignored under single entry and followed under double 1
entry system?
Q21 Explain and give example of each of the following accounting terms: 3

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(i) Fictitious Assets
(ii) Non - Current Liabilities
(iii) Revenue Expenditure
Q22 Which out of the following are (i) Capital Expenditure; (ii) Revenue Expenditure and 3
(iii) Deferred revenue expenditure?
(a) Paper purchased for use as stationery
(b) Loss on Investments
(c) Advertising campaign to launch a new product
(d) Brokerage paid in connection with purchase of land
(e) ₹ 2,500 spent on the overhaul of machines purchased second hand
(f) Expenses to move the stock of goods from one place to another

OR

Calculate the amount of Gross Profit, Operating Profit & Net Profit on the basis of the
following balances extracted from the books of Megha Printers for the year ended
March 31, 2020.
₹
Opening Stock 50,000
Net Sales 11,00,000
Net Purchases 6,00,000
Direct expenses 60,000
Administrative expenses 45,000
Selling & Distribution expenses 65,000
Loss due to fire (already adjusted in 20,000
Purchases)
Closing Stock 70,000
Q23 State the accounting concept/convention involved in each of the following situation: 4
(a) Sale is recognised on the basis of Cash Memo or Invoice.
(b) Assets are recorded in books at the cost incurred for acquisition of such
assets.
(c) Capital contributed by the proprietor is credited to his Capital account.
(d) Sale has been made in the year ended 31 st March, 2020, but the amount
has not been realised. Revenue should be recognised as earned in the year
ended 31st March, 2020.
Q24 From the following list of balances extracted from the books of Surinder Associates, 4
prepare a Trial Balance as at 31st March, 2019:

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₹ ₹
Stock on 1st April, 2,20,000 Investments 3,00,000
2018
Purchases 25,75,000 Interest on 27,000
Investments
Sales 36,18,000 Cash & Bank Balance 12,400
Carriage Inwards 3,000 Premises 6,00,000
Carriage 1,200 Fixtures 1,40,000
Outwards
Return Inwards 85,000 Miscellaneous 5,200
expenses
Return Outwards 20,000 Miscellaneous Income 1,400
Debtors 3,20,000 Loan from ICICI Bank 2,50,000
Creditors 1,74,000 Interest on loan 30,000
Bad Debts 6,000 Capital 7,00,000
Stationery 4,200 Proprietor’s 60,000
Withdrawals
Insurance 3,400 Computers 90,000
Wages & Salaries 1,85,000 Goodwill 1,60,000
Stock on 31st March, 3,10,000
2019 (not adjusted)
Input IGST 40,000
Output IGST 50,000
Q25 Prem Mohan keeps incomplete records. His Capital on 1st April, 2019 was ₹ 43,900. 4
His position on 31st March, 2020 was as follows:
Cash in Hand ₹ 1,500; Cash at Bank ₹ 8,400; B/R ₹ 3,300; Stock ₹ 26,000; Sundry
Debtors ₹ 24,600; Furniture ₹ 8,000; Sundry Creditors ₹ 14,200.
During the year, he had withdrawn from the business ₹ 18,000, of which ₹ 9,200 were
spent in purchasing a Typewriter for the business.
(a) Depreciate furniture & Typewriter by 10%.

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(b) Write off ₹ 600 as bad debts.
(c) Make a provision of 5% on Debtors for doubtful debts.

Calculate the Profit or Loss of his business for the year ended 31 st March, 2020.
Q26 Prepare Return Books of Malhotra Furniture House, Jaipur (Rajasthan) from the 4
following transactions assuming CGST @ 6% and SGST @ 6%:

2020
July 7 Returned to Ganga Prasad & Co., Nai Sarak, Delhi, being not
according to samples:
10 Chairs @ ₹ 2,000 each
1 Table for ₹ 5,000
Less: 20%
10 Subhash Furniture Co., Faridabad (Haryana) returned to us:
2 Broken Almirahs @ ₹ 11,000 each
Less: 15%
20 Returned to Ram Lal & Co., Jaipur, the following goods for
being damaged in transit:
5 Chairs @ ₹ 1,600 each
Less: 10%
28 Ravi Saxena, Jaipur, returned to us the following, being not
of specified quality:
1 Dining Table for ₹ 10,000
5 Chairs @ ₹ 2,000 each
Less: 15%

OR
Enter the following transactions in the two column Cash Book of M. Mohan:

2019 ₹
Jan 1 Cash in Hand 2,200
Cash at Bank 50,000
Jan 3 Purchased goods for ₹ 75,000; Trade
discount 20%; CGST 6%; SGST 6%.
Payment made by cheque.

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Jan 4 Sold goods for ₹ 40,000; Trade discount
15%; IGST 12%; Payment received by
cheque.
Jan 5 Received a cheque from Naresh 1,000
Jan 8 Cheque received from Naresh endorsed
to Suresh in full settlement of his
account of ₹ 1,050
Jan 10 Paid Life Insurance Premium of Mr. 100
Mohan
Jan 13 Received a cheque from Pawan in full 700
settlement of his account of ₹ 750.
Jan 16 Pawan’s cheque returned dishonoured
by Bank
Jan 20 Deposited into bank, balance of cash in
excess of ₹ 250.
Q27 Prepare Accounting Equation from the following: 4
(a) Started business with Cash ₹ 2,00,000 and goods worth ₹ 50,000.
(b) Sold 50% of the above goods at a profit of ₹ 2,000 on credit to Ram.
(c) Ram paid 90% of his amount in full settlement.
(d) Commission received ₹ 4,000 and accrued commission ₹ 2,000.
Q28 Trial Balance of Rajesh Kumar did not agree. He put the difference to Suspense 6
Account and discovered the following errors:
(a) Old Machinery sold for ₹ 2,000 to Manu recorded through Sales Book as ₹
1,800 and posted to the credit of Manu as ₹ 1,200.
(b) Purchases ₹ 10,000 and Wages ₹ 3,000 were used for construction of
building. No adjustment was made in the books.
(c) Goods purchased for ₹ 1,500 have been posted to the debit of the Supplier,
Vinod & Co.
(d) A sum of ₹ 375 owed by Ravi has been included in the list of Sundry
Creditors.
(e) An amount of ₹ 675 for a credit sale to Radha, although correctly entered
in the Sales Book, has been wrongly posted as ₹ 756.

Rectify the above errors and prepare Suspense Account to ascertain the difference in

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Trial Balance.
Q29 From the following particulars, prepare a Bank Reconciliation Statement in the books 6
of R.K Malhotra as on 30th June, 2020:
(i) Balance as per Pass Book on 30th June, 2020 ₹ 16,000.
(ii) Out of the total cheques amounting to ₹ 47,500 drawn by Mr.
Malhotra, cheques aggregating ₹ 5,000 were encashed in June, 2020,
cheques aggregating ₹ 8,000 were encashed in July, 2020 and the rest
have not been presented at all.
(iii) Out of total cheques amounting to ₹ 12,000 deposited, cheques
aggregating ₹ 7,500 were credited in June, 2020, cheques aggregating ₹
2,000 were credited in July, 2020 and the rest have not been collected
at all.
(iv) Bank has charged ₹ 27 as its commission for collecting outstation
cheques and has allowed interest ₹ 330 on his bank balance.
(v) Amount wrongly debited by Bank ₹ 2,400.
(vi) A cheque of ₹ 13,300 paid into the bank was returned dishonoured, but
no intimation was received from the bank till June, 2020.

OR

On 1st October, 2019, A draws on B, who owed him ₹ 45,000, two bills one for ₹
25,000 for three months and another for ₹ 20,000 for two months. B accepts these
bills.
A endorses on 3rd October the first bill to his creditor C in full settlement of his account
of ₹ 26,000 and discounts the second bill on 4 th October with his banker @ 12% p.a.
The first bill is duly paid at maturity but the second bill is dishonoured and ₹ 150 are
paid as noting charges. One week after the dishonour, B makes the entire payment to
A in cash.
Give journal entries to record the transactions in the books of A and B.
Q30 Journalise the following transactions and prepare Bank A/C and Sales A/C: 6
(i) Purchased machinery for ₹ 1,00,000, payment made by cheque. Installation
charge of machinery ₹ 6,000 paid in cash.
(ii) Sold goods to Gokul at a list price of ₹ 4,000, trade discount 10%and cash
discount 5%. He paid the amount on the same day and availed the cash
discount.
(iii) Paid Income tax ₹ 10,000 by cheque.

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(iv) Bought goods from Kailash for ₹ 20,000 at a trade discount of 10% and
cash discount of 2%. Paid 60% amount immediately by cheque.
(v) Sudhir Kumar, who owed ₹ 30,000 has failed to pay the amount. He pays a
compensation of 45 paise in a rupee by cheque.
(vi) Paid to landlord by cheque ₹ 1,20,000 for rent. One third of the building is
occupied by the proprietor for residential use.
Q31 On 1st April, 2016, a firm purchased a machinery for ₹ 12,00,000. On 1 st October, 2018, 8
a part of the machinery purchased on 1 st April, 2016 for ₹ 80,000 was sold for ₹ 45,000
and a new machinery at a cost of ₹ 1,58,000 was purchased and installed on the same
date. The company had adopted the method of providing depreciation @ 10% p.a. on
the diminishing balance of the machinery.
Show Machinery A/C, Provision for Depreciation A/C and Machinery Disposal A/C.
Q32 From the following Balances taken from books of Rajan, prepare Trading and Profit 8
and Loss Account for the year ended 31 st March, 2020 and Balance Sheet as at that
date after taking into account the adjustments given below:

Particulars Amount Particulars Amount

Opening Stock 15,000 Rent 4,000
Purchases 1,09,000 Rent Outstanding 600
Sales 1,80,000 Provision for Doubtful 1,000
Debts
Manufacturing Wages 8,000 Furniture 5,000
st
(Purchased on 1 Oct,
2019 for ₹ 1,000)
Fuel, Power and Light 12,000 Bills Receivable 6,000
Salaries 11,000 Bills Payable 1,600
Bad debts 500 Machinery 72,000
Income Tax 5,500 Sundry Debtors 28,000
Loan given to Param 5,000 Sundry Creditors 13,000
at 10% p.a.
Interest on Loan to 300 Capital 1,00,000
Param

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Commission received 4,500 Cash in hand 20,000

Adjustments:
(i) Closing Stock at cost was ₹ 35,000. Its market value was ₹ 30,000.
(ii) Write off further ₹ 500 as bad debts. Also, maintain a Provision for
Doubtful debts @ 5% on Sundry Debtors.
(iii) Create a provision of 2% for discount on debtors.
(iv) Commission received includes ₹ 3,000 received in advance.
(v) Depreciate furniture by 10% p.a.
(vi) Salaries for the month of March, 2020 were outstanding.

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