AMITY INTERNATIONAL SCHOOL, SECTOR 46

ANNUAL EXAMINATION (2024-25)

MOCK QUESTION PAPER
CLASS XI
SUBJECT – ACCOUNTANCY (055)

MAX: MARKS: 80 TIME:3 Hours

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GENERAL INSTRUCTIONS:

1. This Question paper consists of 30 questions.

2. Question nos. 1 to 20 are Objective type questions carrying 1 mark each.
3. Question nos. 21 to 26 are short answer type-I Questions carrying 3 marks each.
4. Question nos. 27 to 29 are short answer type -II Questions carrying 4 marks each.
5. Question nos. 30 to 34 are long answer type Question carrying 6 marks.
6. There is no overall choice. However, internal choice has been provided in some of the questions.
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S.No Question Marks

1. Error of Omission permit? (1)
a) Correct totalling of Balance Sheet.
b) Correct totalling of Trial Balance.
c) the Trial Balance to match.
d) None of these.
2. A machinery which costs ₹2,00,000 is depreciated at 25% per year using the Written Down (1)
Value Method. At the end of three years, it will have a net book value of:
a) ₹1,50,000.
b) ₹84,375
c) ₹1,12,500.
d) ₹1,00,000.
3. Which of the following error will be rectified through Suspense Account? (1)
a) Goods sold to Gupta Ltd. for ₹65,000 wrongly posted to Ghai Ltd’s Account.
b) Purchases Return to M/s Kumar and Associates ₹5,000, recorded as ₹55,000.
c) Machinery purchased from Tisca Ltd. for ₹90,000 recorded in the Purchases Book as
₹9,000.
d) Goods sold to Gurman Ltd. for ₹65,000 wrongly posted as ₹56,000.
4. Following are the extracts from the Trial Balance of a firm as on 31 st March, 2023: (1)
Heads of Accounts Dr. (₹) Cr. (₹)
Sundry Debto₹ 2,06,000 -----
Provision for Doubtful Debts ----- 25,000
Bad Debts 7,000 ------
Additional Information:
i. Additional Bad Debts ₹6,000.
 ii. Maintain the provision for doubtful debts @ 5% on debtors
How much amount will be shown in the Profit and Loss A/c.
a) ₹2,000 (Dr.)
b) ₹2,000 (Cr.)
c) ₹23,000 (Dr.)
d) ₹13,000 (Cr.)
Or
A manager is entitled to a commission of 15% on net profit after charging such commission.
The commission payable to manager is ₹9,600. Net profit before charging commission is
____________.
a) ₹75,000
b) ₹64,000
c) ₹73,600
d) ₹97,200

5. “Sale to Raman ₹5,600 was posted to his account as ₹6,500, while in an another transaction, (1)
purchase return to Pawan for ₹3,200 was posted to his account as ₹2,300”. Identify this error.
a) Error of Principle
b) Error of Commission
c) Compensating Error
d) Error of Omission
6. Assertion (A): Trading Account is prepared following the matching concept. (1)
Reason (R): Direct expenses are transferred to the debit, while revenue and closing stock are
transferred to the credit of Trading Account.
a) Both (A) and (R) are correct, and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is correct but (R) is wrong
d) Both (A) and (R) are incorrect.

7. Excess value of net assets over purchase consideration at the time of purchase of another (1)
business is:
a) Credited to the Capital Reserve
b) Debited to the Goodwill Account
c) Credited to the General Reserve
d) Credited to the Vendor’s Account
8. Surya’s books showed the following balances on 1st April, 2024: (1)
Machinery ₹8,00,000
Provision for Depreciation ₹2,40,000
On 1 October, 2024 a part of Machinery that was purchased on 1 st April, 2021 for ₹3,00,000
st

was sold for ₹1,44,000. Depreciation is provided @ 10% p.a. under Straight Line Method. The
amount to be transferred from Provision for Depreciation A/c to Machinery A/c on account of
Accumulated Depreciation (i.e. amount to be debited to Provision for Depreciation A/c and
credited to machinery A/c) is:
a) ₹90,000
b) ₹1,15,000
c) ₹1,05,000
d) ₹1,20,000
9. Match column A with Column B (1)

Column A Column B
(External use₹) (Accounting information)
A. Banks and other financial I. Information about profitability and
institutions safety of their investment
B. Investors and potential II. Needs information to determine
investors national income, GDP, industrial growth,
etc
C. Government III. To know the proportion of the profit
that the business spends on various
public welfare schemes
D. Public IV. Information regarding liquidity,
creditworthiness, solvency etc.

a) A-IV, B-I, C-III, D- II

b) A-I, B-IV, C-II, D- III
c) A-IV, B-III, C-II, D- I
d) A-IV, B-I, C-II, D- III

10. Which among the following is a correct difference between Provision and reserve? (1)
a) Provision is created out of legal necessity whereas Reserve is created as a matter of
prudence.
b) Provision is invested whereas reserve is not invested.
c) Provision is an appropriation to profit whereas reserve is a charge against profit.
d) Provision can be used as a distribution of dividend whereas a reserve cannot be allowed
to be used for distribution of dividend.
11. Interest on debentures is paid whether the company ____________ or ______________. (1)

12. Kunal finds that the Bank Balance by his Cash Book on 31st December, 2024 is ₹ 82,600 (1)
(credit) but the Pass Book shows difference due to the reason stated. Interest debited by the
bank, but not recorded in Cash Book for ₹1,200. Cheques totaling ₹7,400 issued but not yet
presented for payment. What will be the balance as per Pass Book if Bank Reconciliation
Statement is being prepared on 31.12.2024?
a) ₹88,800
b) ₹91,200
c) ₹76,400
d) ₹74,000

13. Zee Ltd. issued 5,000, 6% Debentures of ₹100 each at ₹95 per debenture. 6% Debentures (1)
Account will be credited by:
a) ₹4,75,000
b) ₹4,80,000
c) ₹5,00,000
d) ₹25,000

14. Which of the following is not correct with regard to importance of preparing bank reconciliation (1)
statement?
 a) Errors, if any, either in Cash Book or Pass Book are identified.
b) Undue delay in clearance or collection of cheques is known.
c) Regular reconciliation discourages embezzlements.
d) It helps in keeping a track of business expenses.
15. IND-As are: (1)
a) rule based accounting standards
b) principle based accounting standards
c) partially rule based accounting standards and partially principle based accounting
standards
d) none of the above

16. Use of common unit of measurement and common format of reporting promotes: (1)
a) Understandability
b) Relevance
c) Reliability
d) Comparability
Or
The accounts maintained under ______________ are incomplete and unsystematic and
therefore, not reliable.
a) GAAP
b) Accrual Concept
c) Single Entry System
d) Double Entry System
17. Which of the following errors will be rectified through Suspense Account? (1)
a) Cash sale of ₹1,700 to Gaurav was recorded as ₹7,100
b) Sales return by Priti ₹1,000 recorded as ₹100
c) Sales return by Ankur ₹1,000 recorded through Purchase return book
d) Goods purchased of ₹ 2,500 was posted to the debit of supplier, Ravi.
18. Calculate Gross Profit from the following information: (1)
Closing stock ₹60,000, Wages ₹30,000, Salary ₹50,000, Sales ₹7,92,000, Adjusted purchases
₹5,80,000.
a) ₹72,000
b) ₹98,000
c) ₹1,32,000
d) ₹1,82,000
19. Assertion(A): Accounting may be influenced by personal bias. (1)
Reason(R): Accounting statements are prepared at historical cost by assuming that value of
money remains stable.

a) Both (A) and (R) are correct and (R) is the correct explanation of the (A).
b) Both (A) and (R) are correct but (R) is not the correct explanation of the (A).
c) Only (A) is correct.
d) Only (R) is correct.
20. Write the Journal entry for Interest on Capital ₹9,000. (1)

21. Identify and explain the accounting principles/concepts/ conventions followed or violated in (3)
the following situations:
 a) Closing Stock is valued at lower of cost or market price.

b) If advance is received against sale of goods, the advance received is recorded as ‘Advance
Against Sale’ and not Sales.

c) Long term success of the company is doubtful due to market competition. So the money
spent on purchase of machinery was treated as revenue expense of the current year and
charged to Profit & Loss A/C. Is the accountant correct in doing so?
22. Read the following case study and answer question (a) to (c) on the basis of the same. (3)
Shyam is a talented software designer and has set up his own business of software designing
for different industries thereby employing few software engineers under him. He had
₹20,00,000 as his savings from previous job and decided to start his business under the name
“Excel Technologies”. He received a loan of ₹6,00,000 from SBI for 9 years. He bought 10
laptops for his office each costing ₹50,000 and paid 60% immediately. He further bought an air
conditioner for ₹70,000 and furniture for ₹2,00,000 for his office. He paid ₹15,000 in total for
installation of air conditioner and setting up the laptops with necessary hardware. He got all his
laptops insured by paying an insurance premium of ₹50,000 in total. Two of his laptops were
damaged within a month’s time due to mishandling and the insurance company paid ₹70,000
as compensation. He took one the office laptop to home for his son’s use and will no longer be
available for office use. He paid his son’s school fee of ₹10,000 from his firm’s current account.
Calculate the following at the end of the year from the above information:
a) Fixed tangible assets
b) Long Term liabilities
c) Drawings

23. HP Ltd. issued 20,000; 10% Debentures of ₹100 each on 1st April, 2023 at a discount of 5%. (3)
The issue was fully subscribed and fully paid-up. According to the terms of issue, interest is
due on yearly basis. Pass Journal entries for the year ended 31 st March, 2024.

24. Calculate the missing values in the following cases: (3)

Case Cost of goods sold (₹) Gross Profit (%) Sales (₹)
1 1,40,000 20% on sales ?
2 2,50,000 20% 0n COGS ?
3 ? 30% on sales 2,60,000

25. Journalise the following transactions: (3)

a) Bought goods from Gopal of List price ₹60,000 at 10% Trade discount.
b) Goods returned to Gopal of List Price ₹6,000, not being as per specifications.
c) Settled Gopal’s Account after receiving a cash discount of 3%.

26. Calculate Operating profit and Net profit from the following: (3)
Gross Profit ₹ 8,00,000
Dividend received ₹ 16,000
Loss on sale of machine ₹ 18,000
Bad Debts ₹ 30,000
Salaries ₹ 1,70,000
Interest on loan from bank ₹ 18,000
Rent and Taxes ₹ 24,000
Donations given ₹ 6,000
27. Calculate Closing Stock from the following details: (4)
Opening Stock: ₹ 40,000
Cash Sales: ₹ 3,00,000
Credit Sales: 150 % of Cash Sales
Purchases: ₹ 4,50,000
Purchases Returns: ₹ 20,000
Wages ₹ 60,000
Carriage ₹ 25,000
Rent ₹ 48,000
Rate of Gross Profit: 50% of Cost

28. Following balances are in the books of Insta Ltd. on 1st April, 2023: (4)
Machinery A/c ₹ 6,00,000
Provision for depreciation A/c ₹ 2,20,000
On 1st July, 2023, a machine was sold for ₹85,000 which was purchased on 1st April, 2020 for
₹ 2,00,000. Prepare Machinery Account and Provision for Depreciation Account on 31 st
March, 2024, if the firm has been charging depreciation @ 15% p.a. on Straight Line Method.

29. A bookkeeper while preparing his trial balance finds that both the sides do not tally. He places (4)
the difference to a Suspense Account. Subsequently the following errors were ascertained:
a) A sale of ₹2,000 to Mohan was correctly entered in Sales Book, but wrongly posted to
the debit of Sohan as ₹200
b) Purchase Return book was carried forward as ₹1,220 instead of ₹1,120.
c) Credit balance of ₹10,500 was carried forward as a debit balance in Ompal’s Account.
d) A cheque of ₹4,500 received from Ashok was dishonoured and has been posted to the
debit of Sales Return Account. Draft the Journal entries for rectifying the above
mistakes.

30. Vimal maintains a current account with SBI. On 31st March, 2024, the bank column of the cash (6)
book showed an overdraft of ₹26,700 in his current account. From the following, prepare bank
reconciliation statement.
(a) Out of the total cheques amounting to ₹50,000 issued, cheques aggregating ₹15,000 were
debited in March, cheques aggregating ₹20,000 were debited in April and the rest have not
yet been debited.
(b) The payment side of the cash book had been undercast by ₹1500.
(c) A wrong debit of ₹800 has been given in the Passbook.
(d) Cheques amounting to ₹21,000 were deposited in the bank on 31st March 2024. However,
cheques of ₹7,400 were credited on 2nd April 2024.
(e) On 29th March a customer deposited ₹3,000 directly in the bank
account but it was entered only in the Pass Book.

Or
On 30th June, 2024, the pass book of Mohan Kapoor's showed a debit balance of ₹12,000. On
checking the Cash Book with bank statement you find that: -
(a) Cheques paid into Bank ₹8,000, but out of these only cheques of ₹6,500 were cleared and
credited by the Bank upto 30th June.
(b) Cheques of ₹9,200 were issued but out of these only cheques of ₹7,000 were presented for
payment upto 30th June.
 (c) The receipt column of the Cash Book has been undercast by ₹200.
(d) The Passbook shows a credit of ₹330 as interest on investments collected by bank and
debit of ₹60 for bank charges.
(e) A cheque of ₹200 credited in the Passbook has not been recorded in the Cash Book.
You are required to prepare a Bank Reconciliation Statement.

31. (a) Nano Ltd. purchased assets of Dowe Ltd. For ₹30,00,000. It also agreed to take over the (3+3)
liabilities of Dowe Ltd. amounting to ₹5,00,00 for a purchase consideration of ₹27,50,000. The
payment to Dowe Ltd. was made by issue of 8% Debentures of ₹500 each at a premium of 10%.
You are required to pass entries for the above transactions in the books of Nano Ltd.

(b) Beta Ltd. took loan of ₹50,00,000 from SBI; interest being @11% p.a. It issued 30,000,
12% Debentures of ₹200 each as Collateral Security.
Pass Journal entries for the above transactions in the books of Beta Ltd and also Prepare Balance
sheet in each case.

(i) When company decides not to record the issue of 10% Debentures as Collateral Security.
(ii) When company decides to record the issue of 10% Debentures as Collateral Security.

32. On 1st June, 2021, AarKay Ltd. purchased a machinery costing (6)
₹90,000. It further purchased one machinery on 1st January, 2022, costing ₹60,000 and another
on 1st October, 2023, costing ₹30,000. On 31st July , 2023, one-third of the machinery installed
on 1st June, 2021, became obsolete and was sold for ₹10,000.
Depreciation has been provided @ 10% p.a. as per Diminishing Balance Method.
You are required to prepare Machinery account for the period of three years ending on 31st
March 2024.

33. Give Journal entries for the following: (6)

a) Bought 10 shares of Infosys Ltd. for ₹40,000 and paid brokerage @1%. Payment made by
Cheque.
b) Goods destroyed by fire (Sale price ₹9,000, Cost price ₹6,000).

c) An old machine with the book value of ₹80,000 is exchanged for a new machine of
₹2,40,000. The old machine is valued at ₹50,000 for exchange purposes by Vidyut Machines
Ltd.

d) Interest due but not received ₹1,600

e) Goods sold costing ₹6,000 to M/s. Mohan & Sons at an invoice price 40% above cost less
5% Trade Discount and 10% Cash Discount. Mohan paid full amount immediately.

f) Goods worth ₹20,000 supplied to Rohan against the order and advance of ₹12,000
previously received from him.
34. The following Trial Balance has been extracted from the books of Green Trade₹ as at 31st (6)
March, 2024: -

Heads of Accounts Dr. (₹) Cr. (₹)

Purchases 1,50,000 .....
Debtors 2,00,000 ......
Interest Earned ....... 4,000
Salaries 30,000 .....
Sales ..... 3,21,000
Purchases Return ..... 5,000
Wages 20,000 ......
Rent 15,000 ......
Sales Return 10,000 ......
Bad Debts Written off 7,000 .....
Creditors ...... 1,20,000
Capital ...... 1,00,000
Drawings 24,000 .......
Provision for Doubtful Debts ..... 6,000
Printing and Stationery 8,000 ......
Insurance 12,000 ......
Opening Stock 50,000 ......
Office Expenses 12,000 ......
Furniture and Fittings 20,000 ......
Provision for Depreciation .... 2,000
Total 5,58,000 5,58,000

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2022 and
Balance Sheet as at that date after making the following adjustments:

(i) Depreciate Furniture and Fittings by 10% on original cost.

(ii) Make a Provision for Doubtful Debts equal to 5% of Debtors.
(iii) Salaries for the month of March amounted to ₹3,000 were unpaid which must be
provided for.
(iv) Insurance is prepaid to the extent of ₹2,000.
(v) Stock costing ₹6,000 was taken by Ram for his personal use, cost of which has
not been adjusted in the books of account.
(vi) Closing Stock valued at ₹68,000 (Net Realisation Value ₹60,000).

(vii) Provide Manager’s Commission @10% on Net Profits before charging such
commission.