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FULL PORTION TEST

Class 11 - Accountancy
Time Allowed: 3 hours
Maximum Marks: 80

General Instructions:

1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Source documents are also referred to as [1]

a) supporting documents b) notes

c) invoices d) first information documents

2. Assertion (A): Bookkeeping involves summarising the classified transactions in the form of profit and loss [1]
account and balance sheet.
Reason (R): Bookkeeping is the art of recording in books of accounts, the monetary aspect of commercial or
financial transactions. It is concerned with record keeping maintenance of books of accounts.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Outstanding salary is a: [1]

a) None of these b) Real Account

c) Nominal Account d) Personal Account

4. Items owned by a business that have monetary value are ____ [1]

a) Assets b) Capital

c) Debentures d) Liabilities
OR
The amount is withdrawn by the proprietor for personal use will ________ Cash and Capital.

a) increase b) equal

c) not change d) decrease

5. Invoice is a source voucher for [1]

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 a) Credit purchases b) None of these

c) Both Cash and Credit purchases d) Cash purchases

6. Which is the last step of accounting as a process of information: [1]

a) Recording the transaction b) Preparation of financial transaction

c) Analysis of information d) Communication of information

OR
Following are the advantages of Double entry system except

a) Compare study b) Minimize fraud

c) Can not prepare trail balance d) Check on accuracy

7. Which of the following is a correct difference between a provision and reserve? [1]
A. A provision is created out of a legal necessity whereas a reserve is created as a matter of prudence.
B. A provision is invested whereas reserve is not invested.
C. A provision is an appropriation of profit whereas a reserve is a charge against profit.
D. A provision can be used for distribution of dividends whereas a reserve cannot be allowed to be used for the
distribution of dividends.

a) Only D b) Only C

c) Only B d) Only A
8. Credit means: [1]

a) an increase in liability b) a decrease in liability

c) a decrease in proprietor's equity d) an increase in asset

OR
Drawings Account is a

a) None of these b) Personal Account

c) Nominal Account d) Real Account

Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions:
2.0
A business purchased goods for ₹ 2,00,000 and sold 75% of such goods during accounting year ended 31st March
2020. The market value of remaining goods was ₹ 43,000. Accountant valued closing stod at cost. According to him,
i. Owner of the business is treated as creditor to the extent of his capital;
ii. All expenses incurred to earn revenue or a particular period should be charged against that revenue to determine the
net income:

Financial statements are prepared on 31st March every year.

9. A business purchased goods for ₹ 200,000 and sold 75% of such goods during the accounting year ended 31st March,
2020. The market value of the remaining goody was ₹ 43,000 Accountant valued closing stock it cost: Identify the
concept violated in the above situation.

a) Matching b) Conservatism

c) Business entity d) Accounting period

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10. Under which concept owner of the business is treated as creditor to the extent of his capital.

a) Conservatism b) Business entity

c) Matching d) Accounting period

11. Which of the following is not a type of reserve [1]

a) Provision for bad debt b) General reserve

c) Retained earnings d) Workmen compensation fund

12. Amount paid in advance for the expenses of a particular is known as ________. [1]

a) Bill receivable b) Prepaid expense

c) Outstanding expense d) None of these

13. If the seller receives back the goods sold, he will prepare [1]

a) Both Credit Note and Debit Note b) Credit Note

c) None of these d) Debit Note

14. When cash is withdrawn by proprietor, what is its impact on accounting equation? [1]

a) Increase in assets, increase in capital b) Decrease in assets, decrease in capital

c) Increase in assets, increase in liabilities d) Decrease in assets, decrease in liabilities

15. Which of the following is a business transaction? [1]
A. Goods purchased on credit
B. An employee being dismissed
C. Sale of a personal asset by the proprietor
D. Proprietor purchasing a car for own use

a) Only C is correct b) Only B is correct

c) Only D is correct d) Only A is correct

OR
Posting of entries in the ledger is done from ________.

a) Vouchers b) None of these

c) Balance sheet d) Journal

16. Debit Note is the source of writing: [1]

a) a sale to a person b) Journal Proper

c) a debit entry in an account d) Sales Return Book

17. Provision is a: [1]

a) Capital Reserve b) Specific Reserve

c) None of these d) General Reserve

18. What do you mean by posting? [3]
OR
Journalise the following:

2017

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 March 4 Purchased building for ₹ 1,50,000 and incurred expenses of ₹ 10,000 on its purchase.

March 10 Satish who owed us ₹ 20,000 is declared insolvent and 60 paise per ₹ is received from his estate.

March 15 Paid ₹ 500 for repairing the office furniture.

March 18 Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 2,000.

Purchased the following items for business:

March 20
Iron Safe ₹ 15,000; Filing Cabinet ₹ 5,000; Computer ₹ 12,000; Postage ₹ 200 and Stationery ₹ 150.

March 28 Paid electricity charges ₹ 1,600.

March 31 Charge depreciation on Machinery @ 10% for one year (Machinery ₹ 75,000).

March 31 Outstanding Wages at the end of the year ₹ 6,000.

19. Every transaction has debit and credit aspects. Explain. [3]
OR
An investment company has securities as current assets having market value substantially lower than the cost price.
The company continues to show them at cost. Do you think the Concept of Prudence is being followed?
20. Distinguish between debtors and creditors; profit and gain. [3]
21. Prepare a correct trial balance from the following trial balance in which there are certain mistakes [4]

Name of Accounts Debit Balance (Rs.) Credit Balance (Rs.)

Cost of Goods Sold 75,000

Closing Stock 20,000

Debtors 30,000

Creditors 15,000

Fixed Assets 25,000

Opening Stock 30,000

Expenses 10,000

Sales 1,00,000

Capital 45,000

Total 1,75,000 1,72,000

22. Record the following transactions in double column cash book and balance it. [4]

Date Amount
Particulars
2017 (₹)

Aug. 01 Cash balance 15,000

Bank balance 10,000

Aug. 03 Paid insurance premium by cheque 4,200

Aug. 08 Cash sales 22,000

Cash discount 750

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 Aug. 09 Payment for cash purchases 21,000

Cash discount 700

Aug. 09 Cash deposited in bank 15,000

Aug. 10 Telephone bill paid by cheque 2,300

Aug. 14 Withdrawn from bank for personal use 6,000

Aug. 16 Withdrawn from bank office use 14,500

Received cheque from John in full and final settlement and deposited the same in the
Aug. 20 10,700
bank

Aug. 23 Received cash from Michael 6,850

Discount allowed 150

Aug. 24 Stationery purchased for cash 1,800

Aug. 25 Cartage paid in cash 350

Aug. 25 Cheque received from Kumar 4,500

Aug. 28 Cheque received from Kumar deposited in Bank 4,500

Aug. 31 Cheque deposited on Aug. 28 dishonoured and returned by the bank

Aug. 31 Rent paid by cheque 4,000

Aug. 31 Paid wages to the watchman in cash 3,000

Aug. 31 Paid cash for postage 220

23. On checking Ram's Cash Book with the Bank Statement of his overdraft current account for the month of [4]
November, 2013, you find the following :
i. Cash Book showed an overdraft of ₹ 45,000.
ii. The payment side of the Cash Book had been undercast by ₹ 1,500.
iii. A cheque for ₹ 7,500 drawn on his saving account has been shown as drawn on current account.
iv. Cheques amounting to ₹ 70,000 drawn and entered in the Cash Book had not yet been presented.
v. Cheques amounting to ₹ 60,000 sent to the bank for collection, though entered in the Cash Book, had not
been credited by the bank.
vi. Bank charges of ₹ 750 as per Bank Statement had not been taken into the Cash Book.
vii. Dividends of the amount of ₹ 25,000 had been paid directly into the bank and not entered in the Cash Book.

You are required to prepare a Bank Reconciliation Statement on 30th November, 2013.
OR
Prepare a Bank Reconciliation Statement of Ruchika Ltd. as on 31st March, 2017 from the following information:
i. Credit Balance (Overdraft) as per Cash Book ₹25,000
ii. Cheques paid into bank for collection ₹60,000 but cheques of ₹24,000 could only be collected in March, 2017
iii. A Cheque of ₹3,500 issued to a Creditor, was entered by mistake in the Cash Column.
iv. A Cheque of ₹10,000 issued on 22nd March was not presented for payment whereas it was recorded twice in the
Cash Book.

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 v. A bill receivable for ₹8,000 previously discounted with the bank had been dishonoured and bank charges debited
in the Pass Book amount to ₹ 125
vi. In the Cash Book, a bank charge of ₹ 150 was recorded twice while another bank charge of ₹40 was not recorded
at all.
24. Journalise the following in the books of Amit Saini, Gurugram (Haryana): [6]
i. Goods of ₹ 5,000 were taken by him for personal use.
ii. ₹ 2,000 due from Sohan were bad debts.
iii. Goods of ₹ 6,000 were destroyed by fire and were not insured.
iv. Paid ₹ 4,000 in cash as wages on installation of machine. (GST is not to be levied).
v. Sold goods to Arjun of Delhi of list price ₹ 20,000. Trade discount @ 10% and cash discount of 5% was
allowed. He paid the amount on the same day and availed the cash discount.
vi. Received ₹ 2,000 from Ramesh, whose account was written off as bad debts.
vii. Goods costing ₹ 1,000 given as charity.
viii. Received ₹ 9,750 from Ramesh in full settlement of his account of ₹ 10,000.
ix. Paid rent in advance ₹ 4,000.
​CGST and SGST is to be levied on intra-state sale @ 6% each and IGST @ 12% on inter-state sale.
OR
On the basis of the narrations, fill in the missing values:
Journal Entries

Amount Amount Cr.

Date Particulars L.F.
(Rs) (Rs)

________ Dr. ________

________ Dr. ________

(i) To ________ 6,00,000

(Being the capital introduced in cash Rs 1,00,000 and balance by

cheque)

________ Dr. ________

(ii) To ________ 15,000

(Being the goods purchased in cash)

________ Dr. ________

(iii) To ________ ________

(Being the land purchased for Rs 2,50,000, payment by cheque)

________ Dr. ________

(iv) To ________ 1,00,000

(Being the goods purchased from Hari)

(v) ________ Dr. 20,000

To ________ 20,000

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 (Being the goods sold)

________ Dr. 50,000

(vi) To ________ 50,000

(Being the goods sold to Rajan)

________ Dr. 5,000

(vii) To ________ 5,000

(Being the goods returned by Rajan)

________ Dr. 4,000

(viii) To ________ 4,000

(Being the goods returned to Hari)

________ Dr. 11,000

(ix) To ________ 11,000

(Being the insurance premium of personal car paid)

________ Dr. 250

(x) To ________ 250

(Being the newspaper bill for the month)

25. Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial [6]
balance.
i. Credit sales to Mohan ₹7,000 were recorded in purchase book. However, Mohan's account was correctly
debited.
ii. Credit purchase from Rohan ₹9,000 were recorded in sales book. However, Rohan's account was correctly
credited.
iii. Goods returned to Rakesh ₹4,000 were recorded in sales return book. However, Rakesh's account was
correctly debited.
iv. Goods returned from Mahesh ₹1,000 were recorded through purchase return book. However, Mahesh's
account was correctly credited.
v. Goods returned to Naresh ₹2,000 were recorded through purchase book. However, Naresh's account was
correctly debited.
OR
Rajesh Kumar was unable to reconcile his Trial Balance as on 31st March 2014 and has opened a suspense account
from the difference. Later on the following errors were discovered:-
i. There were three compensating errors:
a. The total of Sales Return Book was overcast by ₹100
b. The total of one page of the Purchase Book was carried forward as ₹1,286 instead of ₹1,826
c. Goods purchased from C for ₹400 was debited to his account as ₹40
ii. ₹425 paid for wages to workmen for making office table were debited to wages account.
iii. Rent paid ₹1,500 were posted to the credit of Rent account as ₹150

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 iv. Cash received from Ghanshyam ₹500 were correctly recorded in cash book but were posted to his account as ₹50
v. ₹720 paid to Kamal has been debited to Kamlesh A/c as ₹520
vi. The total of Purchase Return Book ₹2,500 was left unposted.
Pass rectifying entries and prepare Suspense A/c.
26. On 1st July 2015, ABC Ltd. purchases 4 machines for ₹80,000 each. The accounting year of the company ends [6]
on 31st March every year. Depreciation is provided at the rate of 15% p.a. on original cost.

On 1st April, 2017 one machine was sold for ₹50,000 and on 1st January, 2019 a second machine was sold for
₹40,000. Another machine with a higher capacity which cost ₹2,00,000 was purchased on 1st January, 2019.

You are required to show:

i. Machinery Account,
ii. Depreciation Account, and
iii. Provision for Depreciation Account for four years ending 31st March, 2019.
OR
Following balance appear in the book of X Ltd as on 1st April 2017:

Machinery Account ₹5,00,000

Provision for depreciation ₹2,25,000

The machinery is depredated @ 10% p.a. on the Fixed Instalment method. The accounting year being April - March.
On 1st October 2017, machinery which was purchased on 1st July 2014 for ₹1,00,000 was sold for ₹42,000 plus
CGST and SGST @ 6% each and on the same date a new machine was purchased for ₹2,00,000 paying IGST @
12%. Prepare Machinery account and provision for depreciation account for the year ended 31st March 2018.
Part B
27. Indirect Expenses are debited to: [1]

a) Balance Sheet b) Profit and Loss Account

c) Trading Account d) None of these

OR
Preliminary expenses are

a) Fictitious asset b) Revenue receipt.

c) Deferred capital receipt. d) Deferred revenue receipt

28. A gross profit is transferred to the __________side of the profit and loss account. [1]

a) Credit b) Asset

c) Current d) Debit
29. Prepaid Expenses, if given in the Trial Balance is shown in [1]

a) Profit and Loss Account, as a deduction b) Balance Sheet

from the expense and in the Balance Sheet,
as an asset.

c) Trading Account, as a deduction from the d) Profit and Loss Account, as a deduction
expense from the expense
OR
Net Profit before the following adjustments = Rs 1,80,000, Outstanding salary = Rs 10,000 Prepaid Insurance = Rs

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 13,000

Calculate profit after adjustments.

a) Rs 2,03,000 b) Rs 1,77,000

c) Rs 1,83,000 d) Rs 1,87,000
30. State whether the following expenditures are capital or revenue in nature: [3]
i. A second-hand car was purchased for a sum of ₹ 1,00,000. A sum of ₹ 10,000 was spent on its overhauling.
ii. ₹ 25,000 paid for the installation of a new machine.
iii. Repairs for ₹ 5,000 necessitated by negligence.
iv. Cost of annual taxes paid and the annual insurance premium paid on the car mentioned above.
v. Cost of air-conditioning of the office of the General Manager.
31. Calculate the amount of Gross Profit when the net loss is ₹ 75,000, Operating Expenses are ₹ 1,20,000 and [3]
Sales are ₹ 3,00,000.
32. EXTRACTS OF TRIAL BALANCE
[3]
as at 31st March, 2017

Dr.(₹) Cr. (₹)

Debtors 60,000

Adjustment:- Create a provision for Bad and Doubtful Debts @ 5% on Debtors.

33. State with reasons whether the following are Capital or Revenue expenditures: [6]
i. An old plant costing ₹ 1,00,000 was purchased; ₹ 2,000 were paid on its carriage; ₹ 3,000 were spent on its
repairs and ₹ 4,000 were paid to an engineer who had supervised its installation.
ii. ₹ 2,00,000 spent on repainting the factory building.
iii. Legal expenses incurred on the purchase of Land.
iv. ₹ 10,000 were spent on lawyer’s fees to defend a suit claiming that the firm’s factory site belonged to the
plaintiff.
v. Expenditure on Advertisement ₹ 25,000.
vi. ₹ 25,000 paid to a discharged employee as compensation.
vii. Repairs for ₹ 2,000 necessitated by negligence.
viii. Insurance claim of ₹ 20,000 received from the insurance company for loss of goods by the fire of ₹ 25,000.
OR
Give journal entries for the following adjustments in final accounts assuming CGST and SGST @9% each:
i. Closing Stock ₹80,000.
ii. Outstanding salaries ₹21,000.
iii. Insurance premium amounting to ₹15,000 is paid in advance.
iv. 9,000 received for rent related to the next accounting period.
v. Commission accrued but not received during the accounting year ₹1,500.
vi. Write off ₹500 as further bad debts.
vii. Goods costing ₹8,000 destroyed by fire and insurance company admitted a claim for ₹5,000 only.
viii. Goods costing ₹10,000 (Market value ₹11,000) were taken by proprietor for personal use.
34. From the following balances, prepare the final accounts of M/s Mangal & Sons for the year ended 31st March [6]
2018 :

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 Rs.

Opening Stock 12,500

B/R 2,000

Sales 70,000

Purchases 37,500

Creditors 20,000

Salaries 3,850

Insurance 200

Debtors 32,500

Carriage 1,450

Commission 750

Interest 900

Printing 250

B/P 3,150

Returns in 1,300

Returns out 500

Bank 5,250

Rent and Taxes 1,300

Furniture 1,000

Capital 7,100

Closing Stock on 31-3-2018 Rs.15,000

OR
The trial balance of Ramesh Vyas as on 31st March, 2013 was as follows.

Name of Accounts Debit Balance(Rs) Credit Balance(Rs)

Purchases/sales 81,25,250 1,26,20,000

Provision for doubtful debts 2,60 000

Sundry debtors/sundry creditors 25,10,000 15,26,300

Bills payable 1,97,500

Opening stock 13,36,250

Wages 11,56,850

Salaries 2,78,750

Furniture 3,62,500

Postage 2,11,300

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Power and fuel 67,500

Trade expenses 2,91,550

Bad debts 26,250

Loan to Ram @ 10% 1st December, 2012) 1,50,000

Cash in hand and at bank 5,00,000

Trade expenses accrued but not paid 35,000

Drawings A/c/capital A/c 2,22,600 5,00,000

Outstanding wages 1,00,000

1,52,38,800 1,52,38,800

Prepare the trading and profit and loss account for the year ended 31st March, 2013 and the balance sheet as at that
date after taking into consideration the following information.
i. Stock on 31st March, 2013 was Rs 6,27,500.
ii. Depreciation on furniture is to be charged @ 10%.
iii. Provision for doubtful debts is to be maintained @ 5% on sundry debtors.
iv. Sundry debtors include an item of Rs 25,000 due from a customer who has become insolvent.
v. Goods of the value of Rs 75,000 have been destroyed by fire and insurance company admitted a claim for Rs
50,000
vi. Received Rs 60,000 worth of goods on 27th March, 2013 but the invocle of purchases was not recorded in
purchases book.

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