DELHI PUBLIC SCHOOL, SAHARANPUR

ANNUAL EXAMINATION (2023-2024)

CLASS- 11
ACCOUNTANCY (055) (SAMPLE PAPER)
Time : 3 hours M.M. 80
General Instructions:
● This question paper contains 34 questions. All questions are compulsory.

● Questions 1 to 20 carry 1 mark each.

● Questions 21 to 26 carry 3 marks each.

● Questions 27 to 29 carry 4 marks each.

● Questions 30 to 34 carry 6 marks each.

● Attempt all parts of the questions together.

● There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2 questions
of three marks, 1 question of four marks and 2 questions of six marks.

SECTION-A
Q.1-20 (1 Mark Each)

Q. 1 Book-keeping is mainly concerned with:

(A) Designing the systems of summarizing the recorded data
(B) Interpreting the data for internal and external users
(C) Recording of financial data
(D) Preparation of financial statements of the business enterprise.

OR

Which of the following is not a sub-field of accounting?

(A) Financial Accounting
(B) Cost Accounting
(C) Management Accounting
(D) Bookkeeping

Q. 2 Which of the following is the most relevant accounting information for taxation authorities?
(A) Cash Balance of the firm
(B) Book Value of the Fixed Assets
(C) Profit generated during the year
(D) Credit Sales of the year

Q. 3 Which of the following limitations of accounting states that accounts may be manipulated to conceal
vital facts:
(A) Accounting is not fully exact
(B) Accounting may lead to window dressing
(C) Accounting ignores price level changes
(D) Accounting ignores qualitative elements

OR

Which of the following is not the advantage of accounting?

(a) Systematic record
(1)
 (b) Comparative study
(c) Based on accounting concepts
(d) Helpful in decision making

Q.4 In the following question, a statement of Assertion (A) is followed by a statement of Reason (R).
Mark the correct choice as:
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, and (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.
Assertion (A) : Cash at bank is a liquid asset.
Reason (R) : Cash at the bank can be easily withdrawn from the bank account.

Q.5 Due to which of the following concept window dressing is prohibited:

(a) Convention of consistency
(b) Accounting period concept
(c) Convention of full disclosure
(d) Money measurement concept.

Q.6 Consider the following statements with regard to the advantages of cash basis of Accounting:
(i) It is simple as adjustments for outstanding expenses, prepaid expenses are not
required.
(ii) It is more objective as use of personal judgements and estimates are minimized.
(iii) It is suitable for non - profit - organizations and other organizations that mainly deal
in cash transactions.
Identify the correct statement/ statements:
(a) (i) , (ii) & (iii)
(b) (i) & (ii)
(c) (i) only
(d) (ii) & (iii)

Q.7 Consider the following statements with regard to the rules of debit and credit:
(i) Debit what comes in, Credit what goes out.
(ii) Debit the receiver, Credit the giver.
(iii) Debit all incomes, Credit all expenses.
Identify the correct statement/ statements:
(a) (i) , (ii) & ( iii)
(b) (i) & (ii)
(c) (i) only
(d) (ii) & (iii)

Q.8 What are Artificial Personal Accounts? Give one example.

Q.9 Which of the following is written evidence of a transaction that has taken place?
(a) Cash voucher
(b) Invoice
(c) Voucher
(d) Transfer voucher
OR

(2)
 Rohan has returned goods worth ₹20,000 to Radheshyam as he found it defective. Which document
will be prepared by Radheshyam?
(a) Invoice
(b) Debit note
(c) Credit note
(d) Credit voucher

Q.10 Samir bought goods for ₹10,000 plus CGST and SGST @ 9% each. What will be the journal entry
for the above transaction?

(a) Purchases A/c. Dr. 10,000

Input CGST. Dr. 900
Input SGST. Dr. 900
● To Cash A/c 11,800
(Being goods purchased for cash)

(b) Purchases A/c. Dr. 10,000

● To Cash A/c 10,000
(Being goods purchased for cash)

(c) Purchases A/c. Dr. 10,000

Output CGST. Dr. 900
Output SGST. Dr. 900
● To Cash A/c 11,800
(Being goods purchased for cash)

(d) Cash A/c. Dr. 11,800

● To Purchases A/c 10,000
● To input CGST A/c 900
● To input SGST A/c 900
(Being goods purchased for cash)

Q. 11. You are required to pass journal entry for the following transaction in the books of Rajiv :
Purchased goods for Rs 15,000 from Vinay at a trade discount of 10%. The purchase is subject to a
levy of CGST and SGST @ 9% each. 40% of the amount is paid immediately by cheque.

Q.12 Purchased goods of the list price of ₹80,000 @ 10% trade discount and 2% cash discount.
25% of the amount paid immediately.
In Journal Cash Account will be credited with:
(a) ₹16,760 (b) ₹17,460 (c) ₹17,260 (d) ₹17,640.

OR
In the Journal Entry of ‘Goods lost by fire’ which account should be credited?

A. Loss by Fire Account

B. Cash Account
C. Purchases Account
(3)
 D. Insurance Company Account

Q.13 Premium Paid on life insurance policy of the proprietor will be debited to ………A/c.

Q.14 Which item shows a debit balance in the Trial Balance ?

(a) Purchase Return
(b) Salary outstanding
(c) Sales
(d) Prepaid Insurance.

Q. 15 Sale of ₹7,600 to Ashok was credited to his account as₹6,700. In rectifying entry Ashok A/c will be:
(a) Debited by ₹ 900
(b) Credited by ₹ 900
(c) Credited by ₹ 14,300
(d) Debited by ₹ 14,300.

Q.16 Closing stock appearing in the Trial balance is shown:

(a) On the Dr. side of Trading A/c.
(b) On the Cr. side of Trading A/c.
(c) On the Assets side of the Balance Sheet.
(d) On the Cr. side of Trading A/c and on the Assets side of the Balance Sheet.

Q. 17 If Sales are Rs. 2,000 and the rate of gross profit on cost of goods sold is 25% , then what will be the
amount of Cost of Goods Sold?

OR

Cost of Goods Sold Rs. 1,50,000

Closing Stock 40,000
Opening Stock 60,000
Calculate Amount of purchases.

Q.18. Net Profit of a firm before charging manager's commission is ₹21,000.If the manager is entitled to
5% commission after charging such commission. How much will the manager get as commission?
(a) ₹1,050
(b) ₹1,000
(c) ₹2,100
(d) ₹2,000.

Q. 19 Sundry Debtors given in the Trial Balance are ₹20,000. Further bad debts amounted to Rs. 1,000 and
it is desired to create a provision of 5% on debtors for doubtful debts and 2% for discount. Sundry
Debtors will appear in the Balance Sheet at a figure of:
(A) 18,620
(B) 18,600
(D) 17,670
(C) 17,689

OR

(4)
 A trial balance contains Debtors ₹15,000, Bad Debts ₹400 and Provision for Doubtful Debts 600.
Further bad debts given in adjustments are 400. If a provision at 5% is made on Debtors, P & L A/c
will be debited with:
(A) 950
(B) 800
(C) 930
(D) 1,130

Q. 20 Income earned but not received is shown in

(A) Liabilities
(B) Assets
(C) Foot Notes
(D) None of the above
OR
Bills Receivable discounted but not due till the date of final accounts is shown in:
(A) Profit and Loss Account
(B) Assets
(C) Foot Notes
(D) Liabilities
SECTION -B
Q.21-26 (3 Marks Each)

Q. 21 Explain the followings terms with examples -

(A) Intangible Assets
(B) Contingent Liability
(C) Rebate
OR
Answer the followings:
(A) Why receipts are classified in to capital receipts and revenue receipts ?
(B) Why assets are classified into current assets and non current assets ?

Q. 22 Explain the followings with examples:

(A) Money Measurements Concept
(B) Business Entity Concept
(C) Full Disclosure Concept

Q.23 Prepare accounting equation from the following:

(a) Started business with cash ₹2,00,000.
(b) Purchased goods for cash ₹60,000 and on credit ₹1,50,000.
(c) Sold goods for cash costing ₹40,000 at a profit of 20% and on credit costing ₹72,000 at a
profit of 25%.
(d) Paid for rent ₹5,000.

Q. 24 Prepare Vouchers for following Transactions:

A. Rent outstanding Rs. 6,000
B. Depreciation on Machinery Rs. 4,000

Q.25 Enter the following transactions in the Purchases Return book of Govind Traders, New Delhi:

(5)
 2019 Particulars Debit Note
No.

15 June Returned goods to Radha Krishan and Sons, New Delhi for 140
₹20,000. Trade discount 10%

20 June Returned goods to Gopal Sons, New Delhi for₹50,000, as 141

the goods were not according to sample

25 June Allowance claimed from Raghubir Prasad, New Delhi, on 145

account of mistake in the invoice ₹10,000

Q. 26 Followings are the Extracts of Trial Balance as at 31st March 2022.

1. Debtors 70,000
2. Provision for Doubtful Debts 1-04-2021 Rs. 1,800
3. Bad Debts Account Rs. 2,000
Adjustments :
A. Create a provision for Bad and Doubtful Debts @ 5% on Sundry Debtors.
B. Create a provision for discount on debtors @ 2%
Show Profit & Loss A/c and Balance Sheet.
OR
Followings are the Extracts of Trial Balance as at 31st March 2023.
1. Debtors 80,000
2. Provision for Doubtful Debts 1-04-2022 Rs 1,600
3. Bad debts Account Rs. 1,000
Adjustments :
A. Further Bad Debts 2,000
B. Create a provision for Bad and Doubtful Debts @ 5% on Sundry Debtors.
Show Profit & Loss A/c and Balance Sheet.

SECTION -C
Q.27- 29 (4 Marks Each)

Q.27 (a) Distinguish between Provisions and Reserves.

(b) Distinguish between 'Revenue Reserve' and 'Capital Reserve'.
Q.28 Rectify the following errors:
(i) The sales book was overcast by ₹500.
(ii) Credit purchases from Aradhya ₹6,000 were posted to the debit of her account as ₹9,000.
(iii) Goods returned from Ayan ₹8,000 were recorded in Purchases return book.
(iv) Wages paid ₹3,980 were recorded in the cash book as ₹3,890.
OR
There was a difference of ₹8,595 in a trial balance. It has been transferred to the debit side of the
suspense account. Later on the following errors were discovered. Pass the rectifying entries.
(i) ₹283 discount received from a creditor had been duly entered in his account but not posted to
the discount account.
(ii) Goods bought from a merchant for ₹770 had been posted to the credit of his account as
₹7,700.
(iii) ₹6,000 owing by a customer had been omitted from the schedule of sundry debtors.
(iv) An item of ₹ 2,026 entered in the sales return book had been posted to the debit of the
customer who returned the goods.

Q.29 Calculate Closing stock from the following details:.

(6)
 Particulars (₹)

Opening stock 20,000

Cash Sales 60,000

Credit Sales 40,000

Purchase 70,000

Rate of GP on cost 33⅓%

SECTION- D
Q.30 – 34 (6 Marks Each)

Q.30 Prepare two column cash book from the following information:
Date Transactions (₹)

1 Jan 2018 Cash in hand 5,000

Bank Overdraft 10,000

2 Jan 2018 Received a cheque from Rohan for sale of goods 7,000

5 Jan 2018 Deposited money into bank 1,000

6 Jan 2018 Rohan's cheque deposited in Bank

10 Jan 2018 Amount withdrawn from bank for personal use 2,000

15 Jan 2018 Cheque received from Rohan is dishonored

20 Jan 2018 Interest on overdraft 500

Q.31 Prepare Bank Reconciliation Statement from the following informations:

On 31 December, 2019 the cash book of Gupta Bros. showed an overdraft of ₹6,920.
(a) Debited by bank for ₹200 on account of interest on overdraft and ₹50 on account of bank
charges.
(b) Cheques drawn but not encashed before 31st December 2019 for ₹4,000.
(c) The bank has collected interest and credited ₹600 in the passbook.
(d) Cheque paid into bank but not collected and credited before 31 December, 2019 amounted to
₹6,000.
(e) A customer deposited ₹700 directly in the bank account but these were recorded only in the
Pass book.

(7)
 OR
From the following particulars prepare a Bank Reconciliation Statement in the books of Mr. Kapil
Dev as on 30th June 2017:
I. Balance as per Pass Book on 30th June 2017 Rs. 6,000.
II. Out of total cheques amounting to 37,500 drawn by Mr. Kapil Dev Cheques aggregating Rs.
5,000 were encashed in June 2017, Cheques aggregating Rs. 4,000 were encashed in July
2017 and the rest have not been presented at all.
III. Out of total Cheques amounting to 12,000 deposited, Cheques aggregating Rs.7,500 were
credited in June 2017, cheques aggregating Rs. 2,000 were credited in July, 2017 and the rest
have not been collected at all.
IV. Bank has charged Rs.27 as its commission for collecting outstation cheques and has allowed
interest Rs. 330 on his bank balance
V. Amount wrongly debited by bank Rs. 2,400
VI. A cheque of 1,200 was entered in the Cash Book in June 2017, but was sent to the Bank in
July 2017.
VII. A cheque of Rs.13,300 paid into the bank was returned dishonoured but no intimation was
received from the bank till June 2017.

Q.32 The following balances appear in the books of X Ltd. as on 1st April 2019:

Machinery Account ₹5,00,000

Provision for Depreciation A/c ₹2,25,000

The machinery was depreciated at 10% p.a on the Fixed Installment Method.
On 1st October 2019, a machine which was purchased on 1 July 2016 for ₹ 1,00,000 was sold for
₹42,000 and on the same date a fresh machinery was purchased for ₹2,00,000.
Prepare the Machinery account and Provision for depreciation account for the year 2019-20.
OR
On 1 April,2017 Sonu Ltd purchased a machine for ₹4,00,000. On 1st November,2018, they
purchased another machine for ₹1,20,000. On 30th September, 2019 , the machine purchased in
2017 was sold at a loss of ₹1,27,800. The company charges depreciation @10% p.a. on written
down value basis. Accounts are closed on 31st March every year.
Prepare Machinery account upto 31 March, 2020.

Q. 33 Ranvijay Singh is keeping his accounts according to Single Entry System. His capital on 31st
December, 2022 was ₹2,50,000 and his capital on 31st December, 2023 was 4,25,000. He further
informs you that, during the year he gave a loan of ₹30,000 to his brother from business on his

(8)
 private account and also withdrew ₹1,000 per month for personal purposes. He used a flat for his
personal purpose, the rent of which at the rate of 1,800 per month and electricity charges at an
average of 10% of rent per month were paid from the business account.
During the year, he sold his 7% Government Bonds of ₹50,000 at 1% premium and brought that
money into the business. Prepare a Statement of Profit and Loss for the year ending 31st December,
2023.

Q.34 From the following trial balance, prepare Trading and P & L A/c for the year ending 31 March, 2023
and a Balance Sheet as at the date:

Particulars (₹) Particulars (₹)

Opening Stock 25,000 Sales 7,00,000

Furniture 16,000 Creditors 72,500

Purchases 5,55,300 Bank Overdraft 50,000

Carriage Inwards 4,700 Provision for bad and doubtful debts 2,100

Bad Debts 1,800 Discount 500

Wages 52,000 Capital 2,00,000

Debtors 80,000 Purchase Returns 20,000

Sales Returns 15,000

Rent 24,000

Sundry expenses 3,400

Salaries 68,000

Cash 8,900

Drawings 14,000

Buildings 1,60,000

Advertisement 10,000

Interest on bank overdraft 7,000

Total 10,45,100 Total 10,45,100

Adjustments:
(a) Closing Stock is valued at ₹36,000.
(b) Private purchases amounting to ₹5,000 have been debited to Purchases account.
(c) Make a provision for bad and doubtful debts at 5% on debtors.
(9)
(d) A new signboard costing ₹4,000 is included in Advertising.
(e) Depreciate Furniture and fittings by 10%.

(10)