DELHI PUBLIC SCHOOL, BANGALORE -EAST

MIDTERMEXAMINATION (2024– 2025)

SUBJECT:ACCOUNTANCY

CLASS:XI MAX.MARKS:80
DATE: TIME:3HOURS
NAME:

GENERAL INSTRUCTIONS:
 All questions are compulsory.
 Read all the questions carefully.
 Marks for each question are indicated against it.

1._____ is the primary stage of recording, classifying and summarising the transactions (1)
a. Accountancy b. Accounting c. Book keeping d.Journalising
2. Rahul manages a timber mart. He buys and sells timber. He took timber worth 5000 (1)
from his business and used to make furniture in his house. This is recorded in business as
a. drawings b. postings c. withdrawals d. expenses
st
3. Arjun stated business on 1 Jan 2023. He paid insurance premium of 5000 for the next year 2024. (1)
This can be termed as an _____________ expense.
a. outstanding b. overdue c. prepaid d. recurring
4. A/An ___________is a financial event between two or more parties. It involves an exchange of (1)
goods, services or money and gets recorded in the books of accounts for the organisations involved.
a. entry b.account c.posting d.business transaction
5. Reema runs a business of selling electronic goods. She sold some furniture of the business worth
10,000 for 2,000 more. She should record the excess of 2000 as (1)
a. profit b. loss c. gain d. revenue
6. Under Accrual Basis of Accounting, expenses are recorded (1)
a. on cash payment b. on being incurred c. on nonpayment d. on paying in advance
7. Balancing of accounts means _______. (1)
a. Total of debit side
b. Total of credit side
c. Difference in a total of debit side and credit side
d. None of the above
8. A Trial Balance is a list of the balances of (1)
a. All accounts having balances
b. Only personal and real accounts having balances
c. Only real and nominal accounts having balances.
d. All accounts.
9. Assertion (A): Purchase of Asset on credit will not increase the Creditors of the firm. (1)
Reason (R): Creditors include only those to whom amount is payable for credit purchase of goods.
a. Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion
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 b. Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of
Assertion (A)
c. Assertion (A) is True but Reason (R) is False
d. Assertion (A) is False but Reason (R) is True.

10. Assertion (A): In accounting equation, each transaction affects both sides of the equation, i.e. (1)
Assets sideand Liabilities + Capital side.
Reason (A): Assets of a business are purchased either from the funds (capital) supplied by the
proprietor or from the funds provided by external parties.

a. Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion
b. Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of
Assertion (A)
c. Assertion (A) is True but Reason (R) is False
d. Assertion (A) is False but Reason (R) is True.

11. An increase in which of the following account will be recorded on the debit side? (1)
a. sales Account b. capital Account c. bills Payable Account d. building account

12. Which written document is prepared by seller for goods sold against cash which acts as evidence
for both the seller and the purchaser of goods? (1)
a. Cash-in-slip b. Cash bill c. Cash memo d. Voucher

13. A voucher is prepared on the basis of ____________. (1)

a. The journal entries b. The ledger entries c. The documentary evidence d. All of the above

14. ____ A/c is debited and ____credited A/c is in case wages are paid for construction of building. (1)
a. cash, wages b. cash, building c. building, Cash d. wages, cash

15. Goods returned by customer will be debited to which account? (1)

a. Purchases A/C b. Return outward c. Customer’s A/C d. Return inward

16. A book of ledgers is also known as a book of ______________. (1)

a. final entry b. primary entry c. original entry d. duplicate entry

17. If goods worth 30,000 were lost in a fire, then while passing a journal entry which of the
following accounts is debited? (1)
a. Loss by fire account b. Drawings account c. Sales account d. Purchases account
18. Which of the following points out utility of a ledger? (1)
a. To keep a chronological record of all transactions.
b. To ascertain the net result of all transactions in respect of a particular account on a given date.
c. To avoids duplication of work.
d. To save time

19. What is the need for companies to make a trial balance? (1)

a. To calculate the status of the financial orders

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 b. To tally the balance of cash and the bank
c. For calculating profit and loss
d. For checking the accuracy of ledgers arithmetically

20. A _________ cheque is a cheque that a bank refuses to process for payment. (1)

a. dishonoured b. postdated c. discounted d. honoured

21. Enter the following transactions in simple cash book of Ramesh for the month of April 2023. (3)

a. Cash in hand 11,200

b. Received cash from Ramesh 300
c. Paid rent 500
d. Sold goods to Rita 300
e. Paid Mohan in cash 700
f. Purchased furniture for cash 200

22. From the following balances, taken from the books of M/s Dwarka Parshad & Sons as at 31st March
2017.
Prepare a Trial Balance in proper form. (6)

Name of the account Amount

Cash in hand 24200
Bank overdraft 8000
Opening stock 20,000
Purchases 80,000
Sales 1,30,000
Sales Return 5000
Travelling Expenses 1800
Discount Allowed 600
Discount Received 1500
Purchase Return 2000
Debtors 18,400
Creditors 8500

ANS:
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 Name of the Debit Credit
account
Cash in hand 24,200
Bank overdraft 8000
Opening stock 20,000
Purchases 80,000
Sales 1,30,000
Sales Return 5000
Travelling Expenses 1800
Discount Allowed 600
Discount Received 1500
Purchase Return 2000
Debtors 18400
Creditors 8500
1,50,000 1,50,000
23. Give an example of each of the following transactions: (3)
i) Increase in asset and increase in liability.- capital introduced
ii) Decrease in asset and decrease in liability.- repayment of a loan
iii) Increase in one asset, decrease in another asset.- purchased asset with cash

24. Distinguish between Journal and Ledger. (Any three points) (3)

25. (a) Calculate the total assets if: (3)

(i) Capital is ₹ 80,000.
(ii) Creditors are ₹ 50,000.
(iii) Revenue during the period is ₹ 100,000.
(iv) Expenses during the period are ₹ 80,000.
(b) A commenced his cloth business on 1st April, 2018 with a capital of ₹ 30,000. On 31st March
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 2019, his assets were worth ₹ 50,000 and liabilities of ₹ 10,000. Find out his closing capital and
profits earned during the year.

26. Make necessary ledger accounts and post the transactions from the journal entries given below. (3)

Date Particulars LF Debit Amount Credit Amount

2018 Cash A/c Dr. 1,00,000
Jan 01 To Capital A/c 1,00,000
(Started business with cash)
Jan 02 Purchases A/c Dr. 20.000
To cash A/c 20,000
(Goods purchased)

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27. Pass journal entries for the transactions below in the following transactions. (4)

01-03-2021 Goods sold to Arjun on credit ₹100,000.

02-03-2021 Arjun paid95000 by cheque in full settlement.
06-03-2021 Cheque issued by Arjun was dishonoured.
10-03-2021 Arjun was declared insolvent and only 80 paise in a rupee was received from
him.

28. Vijay had undertaken the following transactions in April 2005-06. Prepare an accounting
equation to show the effect on his assets, liabilities and capital. (4)

April 1st He started business with cash Rs 2, 30,000 and bank 1,00,000
April 2nd Purchased goods for cash Rs 40,000 and on credit Rs 30,000.
April 3rd Sold goods for cash Rs 20,000 (costing Rs 17,000).
April 4th Outstanding expenses worth 2000.

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29. Read the passage below and answer the following questions. (4)

Sam and Jay started with Cash 10,000 and Machinery 1,00,000. They decided to set up a production line for
cookware. As their demand rose, they decided to buy one more piece of machinery. For the same, they took
bank overdraft and purchased the machinery. The quality of the company’s product was extremely high and
therefore, it could develop a reputation for itself in the market and business was flourishing. After 1.5 years,
their old machinery turned obsolete so they decided to sell the same. They sold it and got some cash proceeds.
They decided to run advertisements from the cash proceeds of machinery sold. As more and more customers
demanded their product, they decided to launch a discount for bulk purchases. The discount was not to be
recorded in the books of accounts. This campaign was successful and they earned a lot of profits from the same.

Q1. Which type of discount is being discussed in the last part of the passage?
(a) Trade discount
(b) Cash discount
(c) Both (a) and (b)
(d) Rebate

Q2. Which asset is discussed in the line, “The quality of the company’s product was very high and therefore, it
could develop a reputation for itself in the market and business was flourishing”?
(a) Tangible
(b) Intangible
(c) Current
(d) Fixed

Q3. Which type of liability is discussed in the passage?

(a) Non-current
(b) Current
(c) Internal liability
(d) none of the above

Q4. What was the capital initially invested?

(a) 10,000
(b) 1,00,000
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(c) 1,10,000
(d) 90,000

30. Define the term accounting and state any five objectives of accounting in detail. (6)

31. M/S Babulal and son’s started business with machinery 50,000, debtors, 25000 (6)
creditors 23000 and capital 52000.Journalise the following transactions:
Date Transaction Amt
nd
April 2 Open a bank account with SBI 35,000
April 4th Goods purchased from Priya, received a trade discount of 20,000
5% and cash discount of 10%, paid immediately.
April 6th Sold goods to Nidhi. 14,000
April 10th Nidhi pays cash in full settlement. 13,500
April 14th Goods given as charity. 15000
April 16th goods withdrawn for personal use 2000
April 18th cash withdrawn for office use 5000

32. The following transactions related to M/s Tools India. Prepare a double column cash book. (6)

Date Details Amount

Sept.01 Bank Balance 42,000
Sept.02 Cash balance 15000
Sept.08 Sale of goods for cash 6000
Sept.13 Purchased machinery by cheque 5500
Sept.16 Sold goods to Arun and received cheque. 4500
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 Sept.17 Cash withdrawn from bank. 17,400
Sept.20 Deposited the cheque given by Arun into the bank 1,100

33.Journalise the following transactions of ABC company for the month of Jan 2012.
Post them into Ledger accounts and prepare a trial balance. (6)

2012 ₹

Jan 01 Started business with Cash 50000

Jan 5 Purchased goods from Mithilesh 10000

Jan 10 Sold goods to Suresh 20000

Jan 25 Gave cash to Mithilesh 9800

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34. Redraft the trial balance in correct form. (3)

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Ans :

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