DELHI PUBLIC SCHOOL NEWTOWN

SESSION 2022-23
FINAL EXAMINATION

CLASS: XI FULL MARKS: 80

SUBJECT: ACCOUNTS [SET- A] TIME: 3 HOURS

Instructions:
1.Candidates are allowed additional 15 minutes for only reading the paper
2.Transactions should be recorded in the answer book.
3.All calculations should be shown clearly.
4.All working, including rough work, should be done on the same sheet as, and adjacent to, the rest
of the answer.
5.All questions are compulsory.
6.The intended marks for questions or parts of questions are given in the brackets [ ].
7. This paper consists eight (8) printed pages.
__________________________________________________________________________________

Question 1 [1]
Book Keeping is mainly concerned with
(a) Recording financial transactions and events.
(b) Designing for systems recording, classifying and summarizing recorded data.
(c) Interpreting data for internal and external users.
(d) Recording and analyzing financial statements.

Question 2 [1]
Valuing stock at lower of cost or net realizable value (Market value) is an example of
(a) Consistency Concept.
(b) Prudence Concept
(c) Realization Concept
(d) Matching Concept

Question 3 [1]
The liabilities of a firm are ₹ 3,000; the capital of the proprietor is ₹ 7,000. The total assets are:
(a) ₹ 7,000
(b) ₹ 10,000
(c) ₹ 4,000
(d) ₹ 21,000

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Question 4 [1]
According to accrual basis of accounting, expenses are recorded
(a) On being incurred.
(b) None of these.
(c) On payment.
(d) On prepayment.

Question 5 [1]
Distinguish between a Sales Book and a Sales Account.

Question 6 [1]
Give examples of two transactions that will not be recorded in the cash book.

Question 7 [1]
State two causes of providing depreciation on an asset.

Question 8 [1]
Consider each of these items and state whether it is a capital expenditure or a revenue
expenditure.
(a) Purchase of a delivery van ₹ 5,00,000.
(b) Purchase of goods for resale ₹ 2,00,000.

Question 9 [1]
Name any two current Liabilities.

Question 10 [1]
Opening Stock ₹ 30,000; Purchases ₹ 54,600; Expenses on Purchases ₹ 6,000; Sales ₹ 90,000;
Expenses on Sales ₹ 3,000; Closing Stock ₹ 36,600.
Calculate Cost of Goods Sold.

Question 11 [1]
Name any two types of reserves.

Question 12 [1]
State True or False:
(a) Error of principle is not disclosed by the Trial Balance.
(b) Error of omission is disclosed by the Trial Balance.

Question 13 [1]
Profit = Capital at the end of the year + _____ - Additional capital introduced - ______

Question 14 [1]
How will the following items affect the bank passbook balance:
(a) Direct payment by customer into the bank account.
(b) Interest on investment collected by the bank.

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Question 15 [1]
Distinguish between an Income & Expenditure Account and Profit & Loss Account.

Question 16 [3]
State the accounting concept involved in each of the following situations:
(a) The quality of the management team is not shown in the Balance Sheet.
(b) Advance received from a customer is not taken as income or sale.
(c) Assets are recorded in books at the cost incurred for acquisition of such assets.

Question 17 [3]
On 1st January, 2021, Lalit drew a bill on Sumit for ₹ 5,000 payable after 3 months. Sumit
accepted the bill and returned it to Lalit. After 10 days, Lalit endorsed the bill to his creditor,
Pawan. On the due date, the bill was dishonored and Pawan paid ₹ 100 as noting charges.
Record the transactions in the Journals of Lalit.
OR
On 1st January, 2021, Arha sold goods to Barkha for ₹ 10,000 and drew upon him a bill at 3
months for the amount. Barkha accepted the bill and returned it to Arha. On 4th March, 2021,
Barkha retired the bill under rebate of 6% p.a.
Record these transactions in the Journal of Barkha.

Question 18 [3]
From the following information, prepare Balance Sheet as at 31st March, 2022:

Dr. (₹) Cr. (₹)

Capital ***** 40,000
Debtors 6,400 *****
Cash in Hand 360 *****
Cash at Bank 7,200 *****
Plant 10,000 *****
General Reserve ***** 1,000
Closing Stock 14,800 *****
Drawings 4,400 *****
Creditors ***** 4,200
Furniture 3,700 *****
Net Profit ***** 1,660
46,860 46,860

Question 19 [3]
What do you mean by AIS and MIS?
OR
Pass Journal entries for the following transactions:
(i) Purchased goods from Sevak of ₹ 2,00,000 less 10% Trade Discount plus CGST and SGST
@9% each. Paid half the amount by cheque immediately and availed 4% Cash Discount.
(ii) Sold goods to Varun for ₹ 4,00,000 less 10% Trade Discount plus CGST and SGST
@ 9% each. Received half the amount by cheque immediately and allowed 5% Cash Discount.

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Question 20 [3]
From the following information compute the income from subscriptions for the year ended 31st
March 2021:
Total subscriptions received during 2020-21 : ₹ 1,00,000
(including ₹ 18,000 for 2019-20 and ₹ 25,000 for 2021-22)
Additional Information:
(a) Subscriptions outstanding as at 31st March, 2020: ₹ 20,000.
(b) Subscriptions outstanding as at 31st March, 2021: ₹ 30,000.
(c) Subscriptions received in advance as at 31st March, 2020: ₹ 20,000.
OR
Name the three categories of Accounting softwares.

Question 21 [6]
Superman keeps his books on the Single Entry System. From the following information given by
him, determine his Profit or Loss for the year ended 31st March, 2022:
His financial position on 1st April, 2021 was as follows:
Plant and Machinery ₹ 3,00,000; Stock ₹ 50,000; Cash in hand ₹ 1,000; Debtors ₹ 1,70,000; Loan
from Batman ₹ 10,000 at 4% p.a. interest; Bank Overdraft ₹ 11,000 and Creditors ₹ 1,21,200.
On 31st March, 2022, he owed to his creditors ₹ 91,700 and had paid Batman ₹ 5,000 in lieu of
his Loan on 1st October, 2021, but had not paid interest. He had bought additional Plant and
Machinery costing ₹ 1,30,000, Debtors were ₹ 2,30,000 out of which ₹ 9,000 were bad debts. Cash
and Bank Balance was ₹ 41,000. Stock at the end was valued at ₹ 45,000.
Superman withdrew ₹ 83,000 for his personal use. He introduced further capital of ₹ 1,00,000
during the year.

Question 22 [6]
From the following information provided by Rex Co. Ltd., you are required to prepare its Plant
and Machinery Account for the financial years 2019 and 2020. The company charges
depreciation @ 10% p.a on the Straight Line Method. It closes its books of accounts on 31st
March, every year.
1.10.2019 Cost price of second-hand machines purchased ₹ 3,00,000
1.10.2019 Spent on overhauling the second-hand machines purchased ₹ 30,000
1.1.2020 Cost price of a machine purchased ₹ 1,80,000
30.6.2020 One-third of the machines purchased on 1.10.2019, was sold at a loss of ₹ 18,000
30.6.2020 Cost price of a machine purchased ₹ 90,000
OR
On 1st October, 2017, Karan and Arjun purchased a second-hand machine for ₹ 1,80,000 and
spent ₹ 20,000 on its repair and installation. On 30th September, 2020, the machinery was
discarded and sold for ₹ 1,40,000 and an amount of ₹ 4,000 was paid as dismantling charges. The
books are closed on 31st March every year and depreciation is charged @ 10% p.a. on the
written down value.
Prepare Machinery Account from the date of purchase of machinery till the date of sale of
machinery.

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Question 23 [6]
Raj is the accountant at KYA Ltd. He has to prepare the cash book for the month of August,
2020. Following detail is available regarding the transactions for the month

Aug 1 Cash in hand ₹ 1,200; overdraft at bank ₹ 15,000.

Aug 3 Further capital introduced ₹ 20,000 out of which ₹ 16,000 deposited in the
bank.

Aug 4 Purchased goods from Vrijesh Traders amounting to ₹ 3,000 and they allowed a
trade discount of ₹ 200. The amount was paid by cheque.

Aug 4 Goods purchased for cash ₹ 4,000.

Aug 5 Sold goods to Varun on credit ₹ 5,000.

Aug 6 Received cheque from Siddhartha ₹ 2,450. Allowed him a discount of ₹ 50.

Aug 10 Cheque received from Siddhartha deposited into the bank.

Aug 11 Settled the account of Superstar Printers ₹ 750 by paying cash ₹ 680.

Aug 12 Cash received from Varun ₹ 4,750 in full settlement of his account of ₹ 5,000

Aug 16 An amount of ₹ 1,000 due from Kartik brothers written-off as bad debts in the
previous year, now recovered.

Aug 17 Received from Kunal on behalf of Karan ₹ 200

Aug 19 Received a cheque for ₹ 800 from Adarsh, which was endorsed to Parth on
24.08.2020.

Aug 20 Sale of old furniture, payment received in cash for ₹ 720.

Aug 25 Cashed a cheque for ₹ 3,000.

Aug 25 Drew from the bank for household expenses 1,000 and for income tax ₹ 500.

Aug 28 Amit who owed ₹ 400 became bankrupt and paid 60 paise in a rupee.

Aug 28 Received repayment of a loan ₹ 3,000 and deposited out of it ₹ 2,500 into the
bank.

Aug 30 Interest debited by bank ₹ 375.

Aug 30 Deposited with the bank the entire balance after retaining ₹ 2,000 at office.

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Answer the following questions with reference to the above transactions:
(i) How will the cheque received from Siddhartha on 6th August be recorded in the cash book?
(a) ₹ 2,450 will be recorded on the debit side of the cash book.
(b) ₹ 2,450 will be recorded on the credit side of the cash book
(c) It won't be recorded in the cash book.
(d) None of the above

(ii) Which of the following cash books will Raj prepare?

(a) Single Column Cash Book
(b) Double Column Cash Book
(c) Petty Cash Book
(d) All of the above

(iii) How will goods sold on credit to Varun on 5th August be recorded in the cash book?
(a) ₹ 5,000 will be recorded on the debit side of the cash book
(b) ₹ 5,000 will be recorded on the credit side of the cash book.
(c) It won't be recorded in the cash book.
(d) None of the above.

(iv) How will drawings for household expenses of ₹ 1,000 on 25th August be recorded?
(a) Household expenses will be debited and cash book will be credited.
(b) Drawings account will be debited and cash book will be credited.
(c) Household expenses will be credited and cash book will be debited.
(d) Drawings account will be credited and cash book will be debited.

(v) Raj marks certain entries as ‘C’. What does that mean?
(a) C stands for contra entries and reflects transactions which include both cash and bank.
(b) C stands for contra entries and reflects transactions which are contrary to normal
accounting processes.
(c) C stands for contra entries and reflects transactions which are confusing in nature.
(d) None of the above.

(vi) What amount could be extracted from Amit as per the transaction of August 28th?
(a) ₹ 340
(b) ₹ 240
(c) ₹ 460
(d) ₹ 160

Question 24 [6]
Rectify the following errors :
(a) Credit Sales to Mohan ₹ 7,000 were recorded in the purchase book.
(b) Credit Purchases from Rohan ₹ 9,000 were recorded in the sales book.
(c) Goods returned to Rakesh ₹ 4,000 were recorded in the sales return book.
(d) Goods returned from Mahesh ₹ 1,000 were recorded in purchases return book.
(e) Goods returned from Nahesh ₹ 2,000 were recorded in the purchase book.

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Question 25 [6]
On 1st January, 2008, A sold goods to B for ₹ 1,00,000; received ₹ 25,000 in cash and drew two
bills, first ₹ 45,000 and second for ₹ 30,000 for two months each. Both bills were duly accepted
by B. First bill was endorsed to C in settlement of his account of ₹ 45,000 and second bill was
discounted from the bank at the rate of 12% p.a. On the due date of these bills, both bills were
dishonored, C has paid ₹ 100 and bank has paid ₹ 80 as noting charges.
Pass Journal entries in the books of A.

Question 26 [10]
Following is the Receipts and Payments Account of ABC club for the year ended 31.03.2019:
Receipts Amount (₹ ) Payments Amount (₹ )

To Balance b/d By Salaries 5,000

Cash in hand 4,500 By Rent (Including ₹ 2,000 5,000
Cash at Bank 12,000 16,500 for 2017 - 18)
To Subscription By Electricity Charges 1,450
2017 - 18 4,000 By Fixed Deposit 60,000
2018 - 19 44,500 By Printing and Stationery 750
2019 - 20 3,500 52,000 By General Expenses
To Entrance fees 8,000 (Including ₹ 500 paid for
To Donation for Building next year) 5,500
fund 70,000 By Sports Material
To Interest 600 Purchased 40,000
To Sale of furniture By Balance c/d
(Book Value ₹ 8000) 4,500 Cash in Hand 8,900
Cash at Bank 25,000 33,900

1,51,600 1,51,600

Adjustments:
a) Outstanding Subscription for Current Year is ₹ 4,500.
b) Outstanding Rent for Current Year amounted to ₹ 1,000.
c) Entrance Fees are to be treated as Revenue Income.
d) Stock of Sports Material as on 01.04.2018 ₹ 6,000 and on 31.03.2019 ₹ 14,000.

You are required to compute the Opening Capital fund and prepare the Income and
Expenditure Account for the club from the above information.

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Question 27 [10]
From the following Trial Balance of Mr. Basu, prepare Trading and Profit & Loss A/c of Mr.
Basu for the year ended 31.03.2022 and a Balance Sheet as on that date:
Heads of Accounts Dr. (₹) Cr. (₹)

Purchase Returns 2,650

Goodwill 30,000
Land and Buildings 60,000
Plants and Machinery 40,000
Loose Tools 3,000
Capital 2,03,000
Bills Receivable and Bills Payable 2,000 13,800
Opening Stock 40,000
Purchases and Sales 51,000 1,15,000
Wages 20,000
Carriage Inwards 1,200
Coal and gas 5,600
Salaries 4,000
Rent 2,700
Discount Allowed 1,500
Cash at Bank 25,000
Cash in Hand 1,400
Debtors and Creditors 45,000 30,000
Repairs 1,800
Printing and Stationery 600
Bad debts 1,200
Advertisements 3,500
Furniture and Fittings 1,200
General Expenses 250
Investments 5,000
Drawings 15,000
Carriage outwards 1,500
Sales Returns 2,000

3,64,450 3,64,450

You are required to prepare Final Accounts after taking into account the following adjustments:
a) Closing Stock on 31st March, 2022 was ₹ 60,000.
b) Depreciate Plant and Machinery at 5%, Loose Tools 15% and Furniture and fixtures at 5%.
c) Provide 5% for Bad and Doubtful Debts.
d) Only three quarter's rent has been paid, the last quarter's rent being unsettled.
e) Interest earned but not received ₹ 600.
f) Write off ¼ th of advertisement expenses.

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