Paramount Public School

Class XI
Term - 1
ACCOUNTANCY
SUBJECT CODE: 055
Time Allowed: 3 Hours Maximum Marks: 80

General Instructions:
Read the following instructions very carefully and strictly follow them:
1. This question paper comprises two Sections – A and B. There are 56 questions in the question paper.
2. Sections – A, questions from serial No. 1 to 50 are objective type questions. These are to be answered
by writing the correct option in your answer sheet.
3. Sections – B, questions from 51 to 56 are Subjective type questions. Attempt all parts of a question
together.
4. Marks are indicated against each question. There is no negative marking for objective type questions.

Section – A
(Objective Type Questions)

1. Closing Entry will appear which subsidiary books? (1)

(a) Cash Book (b) Petty Cash Book
(c) Journal Proper (d) Sale Book
2. Petty Cash Book is prepared generally for a particular period which is? (1)
(a) week (b) month
(c) quarter (d) all of these
3. Goods returned of ₹500/- by Anil will be entered in-
(1)
(a) Purchases Book (b) Purchases Returns A/c
(c) Sales Book (d) Sales Returns Book
4. Under which system of Petty cash does Petty cashier has same amount of cash in hand (1)
(a) Fixed (b) Impressive
(c) Imprest (d) Standard
5. While closing the books of accounts which account or (s) is/are not carried forward to the next year?
(1)
(a) all accounts (b) only personal and real accounts
(c) only nominal account (d) only real and nominal accounts
6. If the capital is ₹1,00,000 and outside liabilities are ₹ 2,50,000, find total assets. (1)
(a) ₹ 1,50,000 (b) ₹ 2,50,000
(c) ₹ 3,50,000 (d) ₹ 1,00,000
7. Which of the following is the correct entry for Outstanding Salary? (1)
(a) Dr. Salary Account and Cr. Cash Account
(b) Dr. Salary Account and Cr. Creditors Account
(c) Dr. Salary Account and Cr. Outstanding Salary Account
(d) Dr. Outstanding Salary Account and Cr. Salary Account
8. Salaries paid to staff will be debited to which account? (1)
(a) Salary A/c (b) Cash A/c
(c) Staff A/c (d) Expense A/c
9. Mr. Vimal received a cheque for goods sold to Mr. Mukesh for ₹10,000. (1)
The above transaction is recorded in which book.
(a) Cash column of cash book
(b) Bank column of cash book

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 (c) Journal Proper as “Cheques in Hand Account”
(d) Sales Book
10. An obligation of the owners to the business entity is treated as liability in the Balance Sheet according to
the _________ concepts. (1)
(a) Dual aspect (b) Going concern
(c) Business entity (d) Realization
11. Assertion (A) As per the prudence concept ‘Closing Stock is valued at cost price or net realisable value
whichever is less. (1)
Reason (R) So that business firm cannot show the better picture than what it actually is.
Choose the correct option:
(a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are correct and Reason is not the correct explanation of the Assertion.
(c) Only Assertion is correct.
(d) Only Reason is correct.
12. A ledger is called a book of :- (1)
(a) Book of Original entry (b) Book of Primary Entry
(c) Book of Final entry (d) General Journal
13. A Ledger Account is prepared from:- (1)
(a) events (b) transactions
(c) Journal (d) Vouchers
14. An example for decrease in assets, decrease in liabilities is:- (1)
(a) Capital introduced by proprietor.
(b) Payment to creditors
(c) Purchase of furniture for cash
(d) Purchase of furniture on credit
15. Cash book is used to record: (1)
(a) All Cash receipts only. (b) All Cash payments only
(c) All Cash & credits sales (d) All Receipts & Payments of Cash
16. Ajay purchased, 1000 Montex Pen @ 50 each less 20% trade discount and 3% Cash discount if payment
is made within 15 days. Ajay paid ₹10,000 within 15 days and balance after 15 days period. Purchase
Account will be debited and Discount Account will be credited respectively with - (1)
(a) ₹ 40,000, Nil (b) ₹ 40,000, ₹ 300
(c) ₹ 40,000, ₹ 1,200 (d) ₹ 40,000, ₹ 900
17. Financial statements are the part of (1)
(a) Accounting (b) Book Keeping
(c) Recording (d) Both (a) and (b)
18. Transactions entered on the debit side of cash book are posted to which side of concerned ledger
Account? (1)
(a) Debit Side (b) Credit Side
(c) Assets Side (d) Liabilities Side
19. If the total of the debit side of cash book exceeds the total on the credit side what does it indicate.
(a) Cash in Hand (b) Cash at Bank (1)
(c) Bank Overdraft (d) Cheques in Hand
20. Qualitative transactions are not recorded in accounts due to the concept. (1)
(a) Realisation (b) Accrual
(c) Dual (d) Money measurement
21. A Trial Balance is (1)
(a) a summary (b) a statement
(c) an account (d) none of these
22. Balance in Petty Cash Book is (1)
(a) an expense. (b) a profit.
(c) an asset. (d) None of these
23. The process of transferring the accounts from the Journal to the Ledger is called (1)
(a) Journalising (b) Posting
(c) Balancing (d) Casting
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 24. Assertion (A) Purchase of fixed assets will be recorded through asset account and not through the
purchase account. (1)
Reasoning (R) Purchases Account is open only to record the purchase of goods in cash or in credit.
Choose the correct option:
(a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are correct and Reason is not the correct explanation of the Assertion.
(c) Only Assertion is correct.
(d) Only Reason is correct.
25. Purpose of Sales Book is- (1)
(a) to record all sales made by the firm
(b) to record payment due to creditors
(c) to record all credit sales made by the firm
(d) to record credit sales of goods made by the firm.
26. Which of the following is the example of Capital Reserve? (1)
(a) Workmen’s Compensation Fund (b) Profit on sale of fixed assets.
(c) Secret Reserves (d) General Reserve
27. Workmen Compensation Reserve is a : (1)
(a) Specific Reserve (b) General Reserve
(c) Secret Reserve (d) Provision
28. The things which are purchased and sold in the business is called __________________. (1)
(a) Fixed Assets
(b) Goods
(c) Current Assets
(d) Stationery
29. The first entry in the journal is passed to record the closing balances of the previous year. It is called as
___________. (1)
(a) Opening Entry
(b) Closing Entry
(c) Simple entry
(d) Complex Entry
30. Business transactions are recorded: - (1)
(a) in chronological order (b) weekly
(c) at the end of the month (d) fortnightly
31. Rearrange the following steps in preparing ledger: (1)
1. Enter the relevant amount in the ‘amount’ column.
2. Record the page no. of the Journal.
3. Identify in the Ledger the account in which transactions are to be recorded.
4. Enter the date of the transaction in the date column.
(a) 1, 2, 3, 4. (b) 4, 3, 2, 1.
(c) 3, 4, 2, 1. (d) 2, 3, 1, 4.
32. The proprietor is treated as a creditor to the extent of his capital according to: (1)
(a) Cost Concept (c) Going Concern Concept
(b) Business Entity Concept (d) Materiality Concept
33. Book – keeping is (1)
(a) an art (b) a science
(c) an art and science both (d) None of these.
34. Which of the following is not a type of reserve (1)
(a) Provision for bad debt (c) Workmen compensation fund
(b) General reserve (d) Retained earnings
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 35. Due to which concept qualitative transactions are not recorded in the books: (1)
(a) Business Entity Concept
(b) Money Measurement Concept
(c) Historical Cost Concept
(d) Dual Aspect Concept
36. As per Dual Aspect Concept: (1)
(a) Assets = Liabilities – Capital
(b) Assets = Capital – Liabilities
(c) Assets = Capital + Liabilities
(d) Capital = Assets + Liabilities
37. The cost of a small calculator is accounted as an expense and not shown as an asset in a financial
statement of a business entity due to ___________ (1)
(a) Materiality Convention
(b) Matching Concept
(c) Periodicity Concept
(d) Convention of full disclosure
38. Which of the following equations are correct? (1)
(a) Capital = Assets – Liabilities
(b) Liabilities = Capital – Assets
(c) Assets = Capital + Liabilities
(d) All of above
39. In which bases of accounting Outstanding expenses are not recorded? (1)
(a) Cash Basis of Accounting
(b) Accrual Basis of Accounting
(c) Both Cash and Accrual Basis of Accounting
(d) Neither Cash nor Accrual Basis of Accounting
40. How Cash Basis of Accounting violates GAAP? (1)
(a) Historical Cost Concept
(b) Matching Principal
(c) Accrual Concept
(d) Both (b) and (c)
41. Cash memo is prepared when goods are sold (1)
(a) on cash (b) on credit
(c) by cheque (d) Both (a) and (b)
42. An advantage of accrual basis of accounting is that: (1)
(a) it is as simple as compared to cash basis.
(b) it is suitable for those enterprises where most of the transactions are on cash basis.
(c) it follows the matching principle of accounting.
(d) it requires the use of estimates and personal judgement
43. A commenced business on 1st April, 2020 with a capital of ₹5,00,000. On 31st March, 2021, his capital
was ₹7,10,000. What is the amount of profit during the year ended 31st March, 2021? (1)
(a) ₹12,10,000
(b) ₹7,10,000
(c) ₹5,00,000
(d) ₹2,10,000
44. Purchase of Machinery on credit will affect (1)
(a) Increase in one asset, decrease in another asset.
(b) Decrease in asset, decrease in owner’s capital.
(c) Increase in asset, increase in owner’s capital.
(d) Increase in assets, increase in liability.
45. According to which concept the same accounting methods should be used each year: (1)
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 (a) Prudence
(b) Full Disclosure
(c) Materiality
(d) Consistency
46. The process of transferring the transactions from the journal to the ledger is called (1)
(a) Casting
(b) Balancing
(c) Posting
(d) Journalising
47. Match the following: (1)
1. Purchase goods of list price of ₹60,000 from Krish at a) Discount ₹ 1,920
trade discount of 10% and cash discount of 2%
2. Sold goods of list price of ₹1,20,000 to Nishu at trade b) Discount ₹ 2,000
discount of 20% and cash discount of 5%. 40% of the
amount received in cash.
3. Sold goods of list price of ₹1,00,000 to Vanya for cash at c) Discount ₹ 1,440
trade discount of 20% and cash discount of 2.5%.
4. Sold goods of list price of ₹1,20,000 to Mokshi at trade d) Discount ₹ 1,080
discount of 20% and cash discount of 5%. Received 30%
by cheque.
(a) 1 d); 2 a); 3 c); 4 b).
(b) 1 c); 2 d); 3 b); 4 a).
(c) 1 d); 2 c); 3 a); 4 b).
(d) 1 c); 2 d); 3 a); 4 b).
48. When goods are sold on credit, the seller prepares (1)
(a) Cash Memo
(b) Invoice
(c) Cheque
(d) Credit Note
49. The entry which affects cash and bank column of a two-column cash book is known as – (1)
(a) Compound entry (b) Contra entry
(c) Journal entry (d) Ledger
50. Assertion (A) Provision is an estimated amount set aside to meet an uncertain loss or expense in future.
Reasoning (R) Provision is charged to profit and loss account on the basis of best estimation. (1)
Choose the correct option:
(a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are correct and Reason is not the correct explanation of the Assertion.
(c) Only Assertion is correct.
(d) Only Reason is correct.
Section – B
(Subjective Type Questions)

51. Classify the following under the three types of accounts (Real, Nominal or Personal): (3)
(a) Drawings (b) Cash
(c) Capital (d) Machinery
(e) Bank (f) Depreciation
OR
State whether the following will have debit or credit balance ?
(a) Sales (b) Purchase Return
(c) Capital (d) Salary
(e) Rent Paid (f) Purchases
52. On the basis of the narrations, fill in the missing values: (3)
Date Particulars L.F. Dr. (`) Cr. (`)
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 (i) _________ Dr. ?
_________ Dr. ?
To __________ 6,00,000
(Being the capital introduce in cash
`1,00,000 and balance by cheque)
(ii) _________ Dr. ?
To __________ 1,12,000
(Being the goods purchased in cash)
(iii) _________ Dr. ?
_________ Dr. ?
To __________ ?
(Being 75 paisa in a rupee received out
of Rs.10,000 due from Charan on his
becoming bankrupt)
53. Pass the opening entry on 1st April, 2019 on the basis of the following information taken from the
books of Raman. Also, post the opening entry: (4)
(`)
Cash in Hand 20,000
Sundry Debtors 60,000
Stock of Goods 40,000
Building Account 15,000
Bills Receivable Account 5,000
Plant 50,000
Motor Vehicle 1,00,000
Sundry Creditors 1,00,000
54. Prepare petty cash book in the analytical form from the following information based on imprest system. (6)
2021
June 1 Petty cashier is given a monthly imprest amount of `1,500. He spent last month `1300.
June 2 Paid for printing 290
June 3 Paid for wages 340
June 5 Paid for carriage 190
June 9 Paid for Conveyance 170
June 12 Stamps Purchased 90
June 16 Stationery purchased 200
June 28 Paid for telegram 60
OR
Enter the following transaction in a double column cash book of M/s. Mohit Traders for January 2020: 
01 Cash in hand ₹3,500; Bank overdraft ₹2,300.
03 Goods purchased for cash ₹1,200
05 Paid wages ₹200
10 Cash sales ₹8,000
15 Deposited into bank ₹6,000
22 Sold goods for cheque which was deposited into ₹2,000 bank same day
25 Paid rent by cheque ₹1,200
28 Drew from bank for personal use ₹1,000
31 Bought goods by cheque ₹1,000.
55. Enter the following transactions in an appropriate Subsidiary Books of Ramesh for the month of January
2021: (6)
Date Transactions `

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 Jan.1 Sold goods to Ram 5,000
Jan.5. Purchased goods from Hari Ram 2,000
Jan.15 Returned goods to Hari Ram 500
Jan.25 Ram Returned Goods 800
56. Journalise the following transactions in the books of Himanshu and post them into ledger: (8)
2020
Dec.01 Business started with cash ₹75,000
Dec.07 Purchased goods for cash ₹10,000
Dec.09 Sold goods to Swati ₹ 5,000
Dec.12 Purchased furniture ₹ 3,000
Dec.18 Cash received from Swati In full settlement ₹ 4,000
Dec.25 Paid rent ₹ 1,000
Dec.30 Paid salary ₹1,500
OR
Enter the following transactions of M/s Hi-Life Fashions in Subsidiary Books and post them to the
ledger accounts for the month of December 2020:
2020
Dec.01 Business started with cash ₹75,000
Dec.07 Purchased goods for cash ₹10,000
Dec.09 Sold goods to Swati ₹ 5,000
Dec.12 Purchased furniture ₹ 3,000
Dec.18 Cash received from Swati In full settlement ₹ 4,000
Dec.25 Paid rent ₹ 1,000
Dec.30 Paid salary ₹1,500

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