PRUDENCE SCHO0L, ASHOK VIHAR

FINAL EXAMINATION
SESSION 2022 - 23
SUBJECT: ACCOUNTANCY (SET A)
CLASS: XI

ane of the Student:slwa Max. Marks: 80

Day& Daie: Friday, 10h February 2023 Duration: 3hrs
General Instructions:
i All questions are compulsory.
Do not write anything on the question paper.
ii. Marks are indicated against each question.
iv. Show the working notes clearly.
V. Use of abbreviations, cuting and overwriting must be avoided.
1Sminutes time has been allotted to read this question paper.

As per the Modem Approach, increase in Revenue will come on side of Revenue
Account and decrease in Expense will come on side.
(a) Debit, Credit
(b) Credit, Debit
ser Credit, Credit
(d) Debit, Debit
2. Accounting standards enhances comparability of financial statements for both intra and inter fim 1
analysis.
State True or False.

3. Apercentage reduction from the list price of merchandise allowed to retailers by wholesaler is 1
called:
(a) Rebate
(b)Cash discount
(ey Trade discount
(d) Allowance
K Raghav, a customer, to whom goods were sold, was allowed rebate of 2,000 because they were of
poor quality. These goods were sold charging CGST and SGST @9% each. Raghav's Alc will be
credited with
8. which
Rohan,heachartered accountant earned 12,00,000 during the financial year 2020 -2021. Out of
received 10,50,000. He incurred an expense of 5,10,000, out of which 1,20,000 are
1

outstanding. He also received his fees relating to previous year 1,35,000 and paid 260,000
expenses of last year. Rohan's income for 2020- 2021 on cash basis will be:
(a) 7,35,000
(b) 26,15,000
(c) 26,90,000
(d) 25,85,000
6The nominal accounts at the end of the accounting year are not balanced.
State true or false. 1

7. Which one of the following is not an objective of providing depreciation?

(a) For ascertaining the true profit and loss
(b) Showing the true and fair view of financial statement
(c) For avoiding overpayment of income tax
(d) Depreciation is a gradual and continuing process.
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 8 Hema traders purchased from Videocon India Limited 5 washing machines @250,000 cach ar
10% trade discount +GST @ 12%. The Purchase column of the purchase book will record the
purchase at ?
9 A portion of the accounts receivable which proves to be
(a) Bad debts uncollectible is termed as:
(b) Doubtful debts
(c) Provision for bad debts
(d) All of these
10: Fill in the following assuming GST rate is 12%.
Purchases A/c Dr.
Input IGST A/e Dr. 30,000
To Shyam's a/c
(Purchased goods from Shyam)
(a) Purchases 60,000, Shyam 290,000
(b) Purchases 2,50,000, Shyam 2,80,000
(c) Purchases 2,20,000, Shyam 2,50,000
(d) Purchases 2,25,000, Shyam 2,55,000
. Which Method is not recognised by Income Tax Authority?
1
a) Written down value Method
b) Diminishing Balance Method
c) Fixed lnstallment Method
d) All of the above
12. The book which contains a classificd and permanent record of all the transactions of a business is 1
called the
a) Trial balance
b) Ledger
c) Journal
None of them
13. Life Insurance premium paid will be debited to: 1
(a) Insurance A/c
(b) Life Insurance Ac
(c) Drawings Ale
(d) Bank Ac
14. Arangement of assets and liabilities in the Balance Sheet is known as 1
15 The error which is revealed by the trial balance is
(a) Wrong amount posted in the ledger account
(b) Wrong amount entered into the books of original entry
(c) Complete omission
(d) None of them
16. The manager is entitled to a commission of 10% on Net Profit after charging such commission. If 1
Net profit is ?1,10,000, then manager's commission will be:
(a) ZI1,000
(b) 20,000
(c) 10,000
(d) None of these
Read both the statements and choose the correct alternative:
Statement I -Cost is the amount of expenditure incurred on or are attributable to a specified thing
or activity.

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 Statement II- Cost can be termed as the amount of resources given up in exchange for some
goods or services. The resources given up are money or money's equivalent, expressed in terms of
money.
(a) Both statements are true and Statement II is the correct explanation of Statement I.
(b)Both statements are true. but Statement II is not the correct explanation of Statement I.
(c) Statement I is true, but Statement II is false.
(d) Statement I is true, but Statement I is false.
16. If outstanding salary is appearing in the trial balance. it means
(a) Salary of entire period is debited as expenses
(b) Salary for some period is to be added to the salary account
(c) No liability incurred for payment of salary
(d) None of above

19, Goods withdrawn by the proprietor for personal use 5,099. The goods were purchased paying 1
IGST @ 18%. In the journal entry IGST A/c will be with 2900.
28. A secondhand motor car was purchased from Veer Brothers for 210.000. It is recorded in 1
book.

1. Differentiate between Accounting and Bookkeeping. 3

22. Republic Sanitary is an MSME business in the Alwar district of Rajasthan. It is 40 years old
business of selling hardware parts to local traders of the district and some other retailers of
Rajasthan. The company has multiple SKUs and the inventories are valucd by their accountant.
The accountant of the enterprise also happens to be agood friend of the owner of the enterprise.
Therefore, the fees of the accountant was not paid in the year when pandemic set ir as the firn was
going through cash-crunch. However, the accountant entered the amount of his fees as expense
even though cash was not paid. He justified his act by stating some accounting concepts. The
accountant further completed the books of accounts for the year ended 31 st December, 2020. Over
the years, the company has developed a reputation in market by supplying high quality products
and customer-friendly service. The owner of the firm asked the accountant to enter this fact but
accountant denied and gave the correct reasons. The owner was contended.

State and explain the principle of accounting is highlighted in the following lines:
(fherefore, the fees of the accountant was not paid in the year when pandemie set in as the
firm was going through cash-crunch. However, the accountant entered the amount of his
fees as expense even though cash was not paid.
(6) Over the years, the company has developed a reputation in market by supplying high
quality products and customer-friendly service. The owner of the fim asked the accountant
to enter this fact but accountant denied and gave the correct reasons.
3. Prepare Trial Balance from the following: 3
Stock (I st April 2020) 26,000; Bank Balance 2,000; Cash in hand 1,000; Building 220,000:
Office equipment2,600; Purchases 240,000; Rent paid 210,000, Advertisement expenses 26,600;
Postage expense, 14,000; Commission allowed 2800; Rent received 1,000: Manufacturing
expense 2I0,000; Administrative expense 28,000; Sales [,00,000; Sundry Debtors 318000:
Sundry Creditors 28,000; Value of Closing Stock was 10,000 and Capital 230.000.
24. Differentiate between Provisions and Reserve. 3
25. State with reasons whether the following are capital or revenue expenditure: 3
(aA new machine is purchased for 21,50,000; I0,000 were spent on its
carriage and 5.000
were paid as wages for its installation.
o?12.000 were spent on the repair of machinery.
25,000 were spent on repairs before using a second hand generator purchase recenty.

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 3
26. Gopalsold goods to Madhav for 10,000 on credit on 25h April 2021. Madhav returned goods
worth 2,000 on 26h April 2021. He paid the entire amount on 5th May 2021.
ldentify and explain the various source documents which will be prepared by Gopal for these
transactions.
. bill
A' after
sold goods to 'B' for 210,000 and adrew abill on 'B' for the same amount. 'B' returned the
acceptance to 'A'. 'A' discounted it with his bank for 29,650. On the due date, 'B' was
unable to pay the amount. The bill became dishonoured and noting charges of 50 was charged by
the bank. Give journal entries in the books of Aand B.
28 From the following information, Calculate operating profit:
Particulars
Gross Profit 60,000
Rent 5,000
Salary 15,000
Commission paid 7,000
Interest paid on Loan 5,000
tAdvertising 4,000
Discount received 3,000
Printing &Stationery 2,000
Legal charges 5,000
Bad Debts 1,000
Depreciation 2,000
Interest received 4,000
Loss by fire 3,000
29. Sanyam started business with cash 24,00,00Q. He opened a bank account in the name of the
business bydepositing in HDFC Bank 25,000. - BT (rt S+
Sanyam purchased goods in cash 70,000 and on credit 30,0D0. He sold goods costing 240,000
for 60,000 in cash and goods costing 10,000 for 16,000 on credit. He also sold his personal car
and deposited the money in the bank account of the business for office use, 1,00,000.
During the year, Sanyam received a Commission of 35,000, and cash against the goods sold on
credit in full settlement 15,000. He has also paid salaries to the employees at the end of the month
55,000.

Use the concept of Accounting Equation to answer the following questions:

(a What will be the amount of capital at the end?
Calculate the balance of cash at the end of the month.
sofWhat is the Amount of Debtors and at the end of the period?
d) Calculate the amount of total assets of the business?
30.)Shaurya limited shows the following balances as on Ist April 2020:
6

Machinery Account. 26,25,000.

Provision for Depreciation Account ....... 21,45,000.
Depreciation is charged on machinery @20% per annum by written down value method. Apiece
of machinery purchased on Ist April 2018 for 1,25,000 was sold on lst October 2020 for
275,000. Prepare Machinery Account and Provision for Depreciation Account assuming that the
accounts are closed on 3Ist March every year.
6
31. Rectify the following errors:
(r Bad debts aggregated 1,700 were written off during the year but were not posted.
(6) An amount 1,650 spent on installation of machinery were debited to Wages Account.
(9)Rent amounting to 2770 was received but was debited to rent account as 77.
Acredit sale of 2,000 to Mr. James was correctly entered in the sales day book but wrongly
posted to the debit ofMr. James as 25,000.
(oy Discount allowed to Seema 24,600 on receiving cash from her was recorded in the books as
2460.
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 () 250 received from Sohan was credited to
Mohan's account.

32. Journalise the following transactions: 6

(a) Opened acurrent account with State Bank of India by depositing 240,000.
(b) Goods costing ?10,000 is sold at a profit of 20% on cost and trade discount is allowed @
10% and cash discount of 10% is allowed if amount is paid in 15 days. Half of the payment
is received at the time of sale.
(c) An old machinery having book value of 1,50,000 is exchanged with the new machine of
RS,00,000 from Lakshmi machines.
d Goods costing 2,000 the selling price of them being 3,000 are destroyed by fire. The
inisurance company accepted 50% of the claim.
soRent paid 210,000, and salaries for the month of 2,000 are still pending.
Bank overdraft is settled 18,000 and 2500 are paid as interest on the same.
33. On31 March, 2021 the following Trial Balance extracted from the books of Shyam: 6

Particulars Dr ) Cr ()
Opening Stock 6,000
Purchases and Sales T 18,000 35,000
Loan @6 % p.a. on 14 9,000
September, 2020
Interest received 2,500
Motor Vehicles 18,000
Motor expenses 3,000
Salaries P 2,200
General Insurance premium®P 3,000
Productive wages 1,000
Capital 24,000
Land & Building 16,000
Debtors and Creditors 6,000 8,000
Cash 2,600
Rent P 2,700
Total 78,500 78,500
Adjustments
Stock in hand on 31" March, 2021 was 7,800 and (market price) 6,950.
b Only three quarters rent has been paid, the last quarter rent has been outstanding.
esth of the Interest received related to 2021-22.
d Depreciate Motor Vehicle by 15 %.
e. General Insurance is paid for the year ending 30h June, 2021.
Prepare Trading &Profit &Loss Acfor the year ending 31" March, 2021.
34. Prepare aDouble Column Cash Book from the following transactions: 6

Jan, 1. Cash in hand 250,000 and Cash at bank 10,000.

Jpn 2 Purchase goods in cash for 2,000 and on credit from Ramesh 5,000.
Jan.3 Sold goods in cash 23,000 and on credit to Mohan 34,000.
Received cheque from Mohan 24,200 andallowed him discount 280.
Jan. 9 Paid by cheque to Ramesh 5,500 and received a discount of ? 100.
Jap 12 Deposited cash into bank 1,00.
Jany 15 Interest collected by bank 2500.
Jan. 18 Rent paid by cheque 1500.
Jan. 31 Deposited with the bank the entire balance after retaining 3,820 at
office.