Class 11 - Accountancy 1. There are a total 55 questions in this paper out of which 45 questions are to be attempted. 2. ‘This paper is divided into three Sections: 1. Section A- Contains 25 questions. Attempt any 20 questions. 2. Section B - Contains 25 questions. Attempt any 21 questions. 3. Section C— Contains 5 questions. Attempt any 4 questions, 3. All questions carry equal marks. 4, There is no negative marking. Section A. 1. Which of the following is treated as an asset? a, Interest received in advance b. Accrued interest ¢ Outstanding interest d, Interest received 2. Debit balance of a personal account means the person is a of the firm whereas credit balance ofa personal account indicated that the person is a of the firm. a. Owner, Creditor b. Debtor, Owner ©. Creditor, Creditor 4, Debtor, Creditor 3. As per the business entity assumption, the business is different from the a. Proprietor b. Politics © Government d. Banker 4, X commenced business on 1st April 2013 with a capital of Rs 6,00,000. On 31st March 2014, his assets were worth Rs 8,00,000 and liabilities Rs 50,000. Find out his closing capital. a. Rs 5,50,000 b, Rs7,50,000 ©. None of these d. Rs 2,00,000 5. Debit mean a. a decrease in asset b, an increase in the proprietor’s equity ©. an increase in asset d, an increase in liability 6. Which source document is sent to inform about the credit made in the account of the buyer along with10. 11. 12. 13. 14, the reasons mentioned in it? a. Credit receipt b. Credit note ©. Credit bill 4, Credit slip Which of these accounts has debit balance? a. Prepaid insurance premium b, Bank loan ©. Income received in advance d. Creditors for goods Cash book does not record the transactions. a. Cash Purchase b, None of these ©. Credit d. Cash Sales Journal Proper records transactions of: a, capital nature b. different nature © similar nature d. revenue nature Compensating errors are of a nature. a, accommodating b. consistent © neutralizing d. concealing ‘Total of transaction is posted in purchase account: a, Purchase of furniture b. Purchase of Stationary c. Cash and Credit purchase d. Purchase return Capital Account is a: a, Representative Personal Account b. Artificial Personal Account ¢. Natural Personal Account d, None of the above Which account will be credited for the goods given as charity? a, None of these b. Charity Ale ©. Sales Ale d, Purchases A/c Cash, goods or assets invested by the proprietor in the business for earning profit is called: a. Profit b, None of these ©. Capital d. Fixed assets15. If total assets of a business are Rs.150000 and capital is Rs.130000.Calculate outside liabilities a. Rs.15000 b. Rs.25000 © Rs.30000 4d, Rs.20000 16. Consider the following statements with regard to the accounting treatment of various accounts: i, Increase in asset is debited and decrease in asset is credited. ii, Increase in expensesjlosses is debited and decrease in expenses/ losses is credited, fii, Increase in liabilities is credited and decrease in liabilities is debited. iv, Increase in capital is credited and decrease in capital is debited. Identify the correct statement/statements: a. iandii b, i, iii and iv ©. iii tii andiv d. iiand iii 17. Credit note is a document evidencing that the a, None of these b, Account of the named person is debited for the reason stated therein ©. Credit has been granted to the named person for the reason stated therein d, Both of these 18. Nominal accounts are transferred to of the firm. a, Trading and Balance Sheet b, Trading and Profit and Loss Ale © None of these d. Balance Sheet and Profit and Loss A/c 19. Which of the following is false regarding the cash book: A. All credit and cash transaction are recorded Opening balance of cash is shown in Dr side of the cash book as ‘To Balance bid’ Only transactions of cash receipt and payments are recorded This book can not show a credit balance © “a oO 4. ®) 20. Goods taken away by the proprietor from the business for his personal use will be recorded in: a. Sales Book b, Purchases Book ©. Purchases Return Book 4d. Journal Proper 21. The last step of the accounting process is: a. to record transactions in the books b, to classify the transactions under separate heads in the ledger © tomake a summary in the form of financial statements d, to provide information to various parties 22. The expense that has been incurred but has not been paid is called: a, Prepaid expenses peeyop23, 24, 28. 26. 2. 28. b, Loss ©. Revenue 4d. Outstanding expenses An enterprise prepares its account under the accrual basis. Salaries amounting to Rs. 20000 for the month of March 2013 was not paid. The owner did not want to account it in the books of accounts on the ground that the amount was not paid. The enterprise closes its account on 31st March every year. Is, he correct? a. Yes, the expense should be accounted at the time it incurred b, No, the expense should not be accounted at the time it incurred ©. None of these 4d, No, the expense should be accounted at the time it incurred Total assets in a business are Rs 8,00,000 and total liabilities are Rs 5,00,000, The difference is called a. expenses b, income © goodwill d. capital Match the followings options are as follows: a. Assets b, Liabilities c. Revenue 4d. Expenses e, Capital i, Equity Shares ii.Purchase, Salary paid ili, Sale, commission received iv. Trade Payables, short term loans v. Cash, Debtor, furniture a(v), bGv), eC), AD, eG) a(v), bi), c(i), AGHD, e@ av), bt), eCii), AD, e@) a(v), biiv), oti), dG, eG) Bere Section B Assertion (A): Accounting information is sometimes based on estimations, Reason (R): The financial statements always reflects true position of the business. a, Both A and Rare true and Ris the correct explanation of A. b, Both A and Rare true but R is not the correct explanation of A. ©. Ais true but Ris false, d. Ais false but Ris true, Invoice is a source voucher for the purchaser of goods a, for cash purchases b, or cash sales ©. for credit sales d. for credit purchases Assertion (A): The ICAI gives consideration to the international accounting standards. Reason (R): India is a member of international account setting body. a, Both A and R are true and R is the correct explanation of A.29, 30, 31 32, 33, 34. 38. b, Both A and Rare true but Ris not the correct explanation of A. ©. Ais true but R is false, d. Ais false but Ris true, Dinesh who owed us Rs 8,000 became insolvent and paid us 60% in full settlement. Posting will be made to Dinesh Alc: a. Rs 4,800 on Cr. side b, Rs 4,800 on Dr. side Rs 8,000 on Dr. side d. Rs 8,000 on Cr. side Which of the following is false regarding the Imprest system Head cashier is given money at the end of the definite period Head cashier reimburses the amount actually spent the petty cashier Both statements are true Both the statements are false “a @) Assertion (A): Journal keeps a chronological record of all transactions. Reason (R): It provides the basis for posting into ledger. a. Both A and R are true and R is the correct explanation of A. b, Both A and Rare true but Ris not the correct explanation of A. ©. Ais true but R is false, d. Ais false but Ris true, Which of the following transaction will not be recorded in the purchase book a. None of these b, Both Purchase of goods for cash and Purchase of assets meant for the long term, not for resale purpose ©. Purchase of goods for cash 4. Purchase of assets meant for the long term, not for resale purpose Which of the following errors will not affect the trial balance? ‘A. Wrong balancing of an account B, Wrong totaling of an account C. The omission of an account from the trial balance D. Writing an amount in the wrong account but on the correct side a. Only D b. OnlyB © OnlyC a. Only A Pay-in-slip is a: a, Document drawn upon a specific banker and payable on demand b. Source Document for having deposits made in bank ¢. Both of the above 4. None of the above Goods costing %20,000 have sold for cash at 25% profit. By what arnount cash will increase: a, 15,000 b, %25,000 c. ¥15,500 a. 20,500 Bete wD36. 37. 38. 39. 40. 41 42. 43. 44, Assertion (A): Bank reconciliation statements helps to identify difference between accounts of Cash book and Pass book. Reason (R): It reconcile the Cash balance of Cash book. a, Both A and Rare true and Ris the correct explanation of A. b, Both A and R are true but R is not the correct explanation of A. © Ais true but Ris false. d. Ais false but Ris true, ‘The amount invested by the proprietor in a business is called a. capital b. revenues © cash 4. loan Received Rs 4,900 from Garima in full settlement of Rs 5,000. Posting of Rs 100 will be made to the: a. Dr. side of Discount A/c b. Cr. side of Discount A/c ©. Dr. side of Garima A/c 4, Cr. side of Garima A/c ‘A mathematical expression, which shows that the and of a firm are equal, accounting equation. a, none of these b, liabilities and assets ©. assets and capital d, liabilities and capital On which of these items, GST is not applicable? a. Books b, Furniture ©. Alcoholic liquor d, Medicines Preparation of a Trial Balance is: a. compulsory or optional b. compulsory ©. none of these 4. optional Assertion (A): Reserve is an appropriation of profit. Reason (R): Itis created after the calculation of net profit by debiting profit and loss accounts. a, Both A and Rare true and R is the correct explanation of A. b, Both A and Rare true but Ris not the correct explanation of A. ©. Ais true but R is false, d. Ais false but Ris true, In the following which is not the branch of Accounting? a, Financial Accounting b. Management Accounting © Cost Accounting 4d, Statistics Which of the following assets is/are known as active assets? a. Tangible assets b. Current assets nown as46. 41. 48. 49. 50. Intangible assets d, None of these .. The cost of a small calculator is accounted as an expense and not shown as an asset in a financial statement of a business entity due to a, Matching Concept b. Periodicity Concept © Materiality Convention 4. Convention of full disclosure When cheque received from the customer and not deposited into bank same day. Which account should be debited. a, None of these b. Cheques in hand A/e © Bank Ale d. Customer’s personal A/c Depreciation is Charged on: a, Fixed Tangible Assets b, None of these ¢ Both Current and Fixed Assets d. Current Assets ‘The main function of Accounting is: a. Reliability b. Comparability ©. Calculation of Profit and Loss only a, Recording and classification of financial transactions Which of the following is not a fixed asset? a. Computers b, Furniture ©. Building d, Cash in hand The business entities follow matching concept mainly to ascertain a. The changes in the purchasing power of the money b, None of these ¢. True profit or loss during an accounting period d. The changes in the selling power of the money, Section C Question No. 51 to 52 are based on the given text. Read the text carefully and answer the questions: Dev is the owner of a trading firm with a capital of % 25,000. During the year 2021, he bought goods at the list price of & 1,00,000 from Rani less 20% trade discount and 2% cash discount and paid 40% by cheque, He sold goods to Preeti at the list price of 2,00,000 less 20% trade discount and 2% cash discount and she paid 50% by cheque. He also sold goods to Tanu for € 40,000 allowing her a trade discount of 5% and cash discount of 10%. She paid 1/4th of the amount in cash at the time of purchase. He received cash from Jaya for a bad debt written-off last year amounting to % 400.51. Why does Dev give cash discount to his customers? a. To encourage quick payment. b, None of these ©. Because he sells goods to them at a very high price d, To make some profit even if goods are sold at catalogue price. 52. How isa trade discount different from cash discount? i, Trade discount is allowed when goods are purchased in a specified quantity whereas cash discount is allowed when payment is made on or before a specified date. ii, Trade discount is not recorded separately in the books of account whereas cash discount is separately recorded in the books of account only (i) Neither (@) nor (i) Both (i) and Gi) only (i) Bere Question No. 53 to 55 are based on the given text. Read the text carefully and answer the questions: On 31st December, 2021, the cash book of Mittal Bros showed a credit balance of 6,920. There is a stark difference in the balance as per pass book. A careful scrutiny points out that there was a debit by bank for 3200 on account of interest on overdraft and %50 on account of charges for collecting bills. Cheques drawn but not encashed before 31st December, 2021 were for %4,000 . The bank has collected interest and has credited 600 in pass book. A bill receivable for 2700 previously discounted with the bank had been dishonoured and debited in the pass book. Cheques paid into bank but not collected and credited before 31st December, 2021 amounted to %6,000. 53. Credit balance in cash book reflects a, none of these b. overdraft © favourable balance 4. nil balance 54. Credit balance of bank account as per cash book essentially means a, bank account becomes negative and the businesses in effect have borrowed from the bank b. none of these ©. there is high positive balance in bank account d. business has paid all its bank loans 55. While preparing the bank reconciliation statement, bills receivable for 2700 previously discounted with the bank now dishonoured, will a, decrease the credit balance of cash book b. increase the credit balance of cash book © none of these d. will not affect the credit balance of cash book