CLASS-XI

SUBJECT: Accountancy
Time:3 Hrs. MM:80

General Instructions:

(i) This question paper contains 34 questions. All questions are compulsory.

(ii) This question paper is divided into two parts, Part A and B.

(iii) Questions 1 to 16 and 27 to 30 carry 1 mark each.

(iv) Questions 17 to 20, 31 and 32 carry 3 marks each.

(v) Questions from 21, 22 and 33 carry 4 marks each.

(vi) Questions from 23 to 26 and 34 carry 6 marks each.

(vii) There is no overall choice. However, an internal choice has been provided in 7 questions of
one mark, 2 questions of three marks, 1 question of four marks and 2 questions of six mark

Part A
1. Which Qualitative characteristic of accounting information requires the use of common 1
unit and generic format of reporting?
Or
Mukesh, a businessperson, had paid the house rent where he lives from the business. Is
this a business transaction? Give reason
2 If the Rent of One month is still to be paid the adjustment entry will be: 1
(a) Debit outstanding rent a/c and Credit Rent a/c
(b) Debit Profit & Loss a/c and Credit rent a/c
(c) Debit Rent a/c and Credit Profit & Loss a/c
(d) Debit Rent a/c and Credit Outstanding rent a/c.
3 Which of the following errors is revealed by the Trial Balance: 1
(a) Wrong amount entered the book of original entry
(b) Wrong amount posted in the ledger account
(c) Complete omission of an entry from the books of original entry
(d) When accounting principle is violated while recording a transaction in the
books of Account.
4 Out of the following Assets which one is not an Intangible Assets: 1
(a) Patents
(b) Investment
(c) Goodwill
(d) Trademark
Or
Amount received from sale of goods is:
(a) Revenue receipts (b) Capitalize receipts (c) a and b both (d) None of these
5 Impress amount ₹5000. What will be the amount of reimbursement if following expenses 1
were incurred by the petty cashier during the month – Wages =₹1450,
Tiffin=₹1050, Small Repairs =₹500, General expenses=₹400.
(a) ₹1600 (c) ₹ 3400
(b) ₹3050 (d) ₹ 3000
 Or
Credit balance of bank account in cash book shows:
(i) Overdraft
(ii) Cash deposited in our bank
(iii) Cash withdrawn from bank
(iv) None of these
6 “When a person brings in some money as capital into his business, in accounting records, 1
it is treated as liability of the business to the owner.” The concept relates to the......
(a) Objectivity (b) Money measurement
(c) Business entity (d) Dual aspect
7 “Valuation of stock to be made either at its book value or its market value whichever is 1
less” It is stated by which accounting concept?
(a) Cost (b) Money measurement
(c) Objectivity (d) Prudence
8 Goods purchased from Raghav for ₹ 4,500 but goods recorded as ₹ 5,400 in the 1
Purchases Book. The type of error related to:
(a) Error of Omission (b) Error of Commission
(c) Error of Partial Omission (d) Error of Principle
9 X Ltd of Bilaspur, an owner of a shopping mall received rent on 1 st April 2020 from 20 1
tenants @ ₹ 15,000 per month for 18 months (about 1 and a half years) for the year
ended 31st March 2021. As per the revenue recognition concept of accounting, rent an
income to be realized by ₹
.
(a) 1,80,000
(b) 2,70,000
(c) 36,00,000
(d) 54,00,000
10 The accounting concept which suggested that each transaction should be recorded in 1
the books of account by supporting vouchers of transactions .
(a) Objectivity (b) Dual aspect (c) Materiality (d) Consistency
11 Choose the correct answer from the following; 1
Seema Furniture House returned tables and chairs worth ₹ 1,10,000 to Mahesh
Furniture Mart. Where would you record this transaction?
i. Journal proper
ii. Return Inward book
iii. Return outward book
iv. Cash book
12 Double Entry means: 1
(a) Entry for the two aspects of books
(b) Entry at two dates
(c) Entry in two aspects of transaction
(d) All the above
13 The liability arising from the purchase of goods on credit is called 1
(a) Creditors
(b) Accounts Receivable
(c) Loan
(d) Payable
expenses Or
If the capital of a business is Rs 500,000 and outside liabilities are Rs 2,00,000. Calculate
the total assets of the business
(a) Rs 7,00.000
(b) Rs 3,00,000
(c) Rs 9,00,000
(d) None of these
14 Distinction between an expenditure whose benefit will be for a prolonged period and 1
whose
 A brief benefit for up to one year is made under which of the following.
(a) Accounting Entity
(b) Going concern Entity
(c) Money Measuring Entity
(d) Accounting Period
15 The following balances appear in the books of Ram & CO 1
Cash – ₹20,000; Machinery –₹50,000; stock – ₹1,00,000; Debtors – ₹40,000 and
creditors
– ₹30,000
The value of capital will
be a) ₹2,10,000
b) ₹1,80,000
c) ₹1,00,000
d) ₹1,60,000
16 What is Secret 1
Reserve? Or
Which of the following statements is not right in relation to "Provision"?
(a) Provision is a charge against profit
(b) Provision is created for known liability
(c) Provision is created for strengthening the financial position of the business.
(d) Creation of provision satisfies the principle of conservatism
17 Differentiate between Provision and Reserve based on following: 3
(a) Basic Nature
(b) Purpose
(c) Use for payment of dividend
18 Write any three interested users of Financial Statements of an organization along with 3
the reason of their interest in it.
Or
Define Accounting. Explain its objectives (any two).
19 Show the effect of the following transactions on assets, liabilities, and capital 3
through Accounting Equation:
(1) Amit started business with cash ₹ 40000 and bank balance ₹10,000.
(2) Purchased goods for cash ₹15000 and on credit ₹5000.
(3) Sold goods costing ₹8000 for Cash at a profit of 10% on cost.
(4) Rent due, but not paid ₹500.
20 Prepare a Purchase Day book of Shiv Stationery from the following information. 3
Date Particulars
2018 Purchased from Gagan Stationery Mart on
credit June 1 (a) 70 dozen pencils @ ₹ 25 dozen
(b) 10 dozen registers @ ₹ 15 per register
June 10 Purchased from Amrit Furniture 2 tables @ ₹ 1,500 per table.
June 15 Purchased 3 dozen ink pots @ ₹ 80 per dozen from Mehar paper
Company and received cash discount of ₹ 50
June 18 Purchased from Rehman Bros. on credit
(a) 5 reams of white paper @ ₹ 50 per ream
(b) 120 pens @ ₹ 60 per
dozen. Less Trade Discount
of 10%
21 Pass Journal Entries in the books of Shri Zahid of Rajasthan assuming CGST@9% 4
and SGST @9% for the following transactions:
(a) Purchased goods for ₹3,00,000from Jitender of Gujrat.
(b) Sold goods costing ₹80,000 to Mr. Babu din of Rajasthan at a profit of 25% on
cost less trade discount 10%.
(c) Paid for advertisement ₹50,000.
(d) Proprietor withdrew for personal use ₹10,000.
Or
Prepare a Trial Balance from the following items:
Account ₹ Account ₹
Capital 24,000 Building 12,000
Opening stock 8,500 Returns inward 1,900
Furniture 2,600 Returns outward 350
Purchases 8,950 Trade expenses 1,000
Cash 7,300 Discount received 970
Carriage 300 salary 3,000
Sales 22,500 Office rent 2,270
22 From the following particulars of Mr. Vinod, prepare bank reconciliation statement as on 6
March 31, 2021.
1. Bank balance as per cash book ₹ 50,000.
2. Cheques issued but not presented for payment ₹ 6,000.
3. The bank had directly collected dividend of ₹ 8,000 and credited to bank account
but was not entered in the cash book.
4. Bank charges of ₹ 400 were not entered in the cash book.
5. A cheque for ₹ 6,000 was deposited but not collected by the bank.
6. The discounted bill from the bank was dishonored but not taken into the cash book of ₹
12,000.
23 Record the following transactions in double column cash book of Mr. Rakesh Verma and 6
balance it.
Sept. 01: Balance of cash ₹ 22,000 and Bank overdraft ₹ 2,500.
Sept. 06: Received cheque on October 28th, for ₹ 4,000 from Gaurav sent into the
bank. Sept. 10: Bank has collected and deposited: Interest of ₹ 6,000; Dividend of ₹
8,000. Sept. 16: Bank has paid several payments on its due date: Insurance premium of
₹ 3,000 and School fees of the child of Rakesh Verma ₹ 5,000.
Sept. 24: Cash deposited into the bank ₹ 12,000.
Sept. 29: Sold goods (costing ₹ 25,000) at 20% profit for cash.
24 Trial balance of M/s Rathi Brothers did not agree, and the accountant put the difference to 6
suspense account. He discovered the following errors:
(a) Sales return book overcast by ₹ 800.
(b) Purchases return to Sahu ₹ 2,000 were not posted.
(c) Goods purchased on credit from Narula ₹ 4,000 though taken into stock, but no
entry was passed in the books.
(d) Installation charges on new machinery purchased ₹ 500 were debited to
sundry expenses account as ₹ 50.
(e) Rent paid for residential accommodation of Mohan (the proprietor)
₹ 1,400 was debited to Rent account as ₹ 1,000.
Rectify the errors and prepare suspense account to ascertain the difference in trial balance.
25 M/s Ashoka Traders purchased two trucks for transportation of goods on 1st April 2017 6
@ ₹ 7,50,000 per truck. On 31st March 2020, one truck was sold for ₹ 3,20,000 and a
new one was purchased for ₹ 10,00,000.
You are required to prepare Truck Account and Provision for Depreciation Account
from 1st April 2017 to 31st March 2020; in the following terms:
(a) Firm closes its books of account on 31st March every year.
Firm provide depreciation on Truck @ 20% p.a. under Written Down Value (WDV)
method.
 Or
Bhushan & Company purchased Machinery on 1st April 2019, for Rs 54,000 and spent
Rs 6,000 on its installation. On 1st December 2020, it purchased another machine for Rs
30,000. On 30th June 2021, the first machine purchased on 1st April 2019, is sold for Rs
36,000 and on the same date it purchased new machinery for Rs 80,000.
Depreciation was provided on machinery @ 10% p.a. on Original Cost Method
annually on 31st March. Give the machinery account for four years.
Part
B
26 Net Sales ₹6,00,000. 1
Gross Profit 25% on cost.
Calculate cost of Goods
sold.
27 Income Tax paid by a sole trader is reflected in his financial statements: 1
(a) On the debit side of the Trading a/c
(b) On the debit side of Profit and Loss a/c
(c) As an asset in the Balance Sheet
(d) As way of deduction from Capital in the Balance sheet.
Or
The financial statements consist of:
(i) Trial balance
(ii) Profit and loss account
(iii) Balance sheet
(iv) (I) & (iii)
(v) (ii) & (iii)
28 If Closing Stock appears in the Trial Balance, then it will be appearing in: 1
(a) Trading a/c
(b) Balance Sheet
(c) Profit and Loss a/c
(d) Trading a/c and Balance
Sheet. Or
Choose the correct chronological order of ascertainment of the following profits from
the profit and loss account:
(i) Operating Profit, Net Profit, Gross Profit
(ii) Operating Profit, Gross Profit, Net Profit
(iii) Gross Profit, Operating Profit, Net Profit
(iv) Gross Profit, Net Profit, Operating Profit
29 The Manager is entitled to a commission of 5% on profit after charging such commission. 1
The profit before charging such commission is ₹ 10500.Hence the Manager’s
commission will be
30 Differentiate between capital expenditure and revenue expenditure. 3
Or
The following are the extracts from the trial balance of M/s Bhola & Sons as on March
31, 2017
Account title Debit Credit
Opening stock 2,00,000
Purchases 8,10,000
Sales 10,10,000
10,10,000 10,10,000
Closing Stock as on date was valued at ₹ 3,00,000.
You are required to record the necessary journal entries and show how the above items
will appear in the trading and profit and loss account and balance sheet of M/s Bhola &
Sons.
31 Compute cost of goods sold for the year 2021 with the help of the following information. 3
Sales 20,
00,000
Purchases 15,
00,000
Wages 1,
00,000
 Stock (Apr. 01, 2020) 3, 00,000
Stock (March 31, 2021) 4,00,000
Freight inwards

1,00,000
32 Prepare the profit and loss account and balance sheet from the following information 4
as on March 31, 2021

Debtors 80,000
Bad debts 2,000
Provision for doubtful debts 5,000
Adjustments:
Bad debts ₹500 Provision on debtors @ 3%.
33 Calculate the amount of gross profit and operating profit based on the following balances 4
extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2021.
Opening stock 50,000
Net sales 11,00,000
Net purchases 6,00,000
Direct expenses 60,000
Administration expenses 45,000
Selling and distribution expenses
65,000 Loss due to fire 20,000
Closing stock 70,000
34 The following is the Trial Balance of Zoya Steels Ltd. as on 31st March 2018. 6
Name of Accounts Debit (Rs) Credit (Rs)

Cash in Hand 1,080

Cash at Bank 5,260

Purchases and Sales 81,35 1,97,560

0
Return Inwards and Outwards 1,360 1,000

Wages 20,96
0
Fuel and Power 9,460

Carriage on Sales 31,40

0
Carriage on purchases 4,080

Opening Inventory 11,52

0
Building 60,00
0
Freehold Land 20,00
0
Machinery 13,00
0
Salaries 31,00
0
Patents 31,00
0
General Expenses 6,000
Insurance 1,200
 Capital 1,42,00
0
Drawings 10,49
0
Sundry Debtors and Creditors 29,00 31,60
0 0
Total 3,56,16 3,56,16
0 0

You are required to prepare Trading Account, Profit& Loss Account and Balance Sheet
as on that date after considering the following adjustments-
1. Inventory at the end was ₹13,600.
1. Insurance includes a premium of ₹ 170 for the next year.
1. Wages include a sum of ₹ 4,000 spent on the erection of cycle shed for employees.
4 A provision for bad and doubtful debts is to create on debtors @5 % on sundry debtor.
1. The Manager is to be given a commission of 10% on Net Profits before
charging such commission.

Or

Problems based on the missing information. Fill the missing figures and items in
the following:
Trading and Profit & Loss
Account (for the year ended 31st
March 2019)
Particulars Amt. in ₹ Particulars Amt. in ₹

To Opening Stock ----- By Sales -------- -------

-
To Purchase -------- - Less: Return 5,000

Less: Return 81,00

0 By Closing Stock
20,00
1,000 To Wages 0

To Carriage Inwards 1,800

To Gross Profit b/d 200

17,000
1,15,00 1,15,00
0 0
To 600 By Gross Profit ------

Insurance to 5,00 c/d By Discount -

0
Rent By Net Loss 1,50
------
To Salaries - 0

------
-
12,500 Add: Outstanding
 -------

Too Bad Debts

200 Add: Further

100

Add: New Provision -----

 900

Less: Old Provision ------ 400

To Provision for 388

discount on Debtors

To Depreciation: 2,95
0
Building 2,250

Furniture 700

22,83 22,83
8 8
Balance Sheet
(As of 31st March
2019)
Liabilities Amount. Assets Amount.
₹ ₹
Bills Payable 3,00 Cash in hand -------
0 -

Creditors ------ Cash at bank 15,00

- 0

Outstanding 1,00 Debtors 19,01

Salaries 0 2
20,100

Capital --------- Less: Bad Debts ------

Less: Net Loss ------ 75,66 Less: New Provision 600

2

Less: Provision for

Discount -------

Closing Stock 20,00

0

Furniture 7,000 6,30

0

Less: Depreciation 700

Building 42,75
0
45,000

Less: Depreciation 2,250

-----------------------------------------------------------
 LASS – XI

ACCOUNTANCY, 2022-23
TIME: 3 HRS M: 80
General instructions:
1. This question paper contains 34 questions. All questions are compulsory.
2. Questions 1 to 20 carry 1 mark each.
3. Questions 21 to 24 carry 3 marks each.
4. Questions 25 to 30 carry 4 marks each
5. Questions from 31 to 34 carry 6 marks each.
6. There is no overall choice. However, an internal choice has been provided in 7 questions of One mark, 2
questions of Three marks, 1 question of Four marks and 2 questions of Six marks.

PART A: FINANCIAL ACCOUNTING - I

1. A person who owes money to a firm for goods sold on credit is called a: 1
(a) Creditor
(b) Debtor
(c) Both (a) and (b)
(d) None of these
2. Accrual concept is based on: 1
(a). Matching concept (b). Dual aspect concept
(c). Cost concept (d). Going concern concept
3. Which of the following is not the user of accounting information? 1
(a). Short-term creditors (b). Debtors
(c). Government (d). Owners
Or
Which external user of accounting information is most interested in knowing the long-term
solvency position of the firm?
(a). Employees (b). Management
(c). Bank and financial institutions (d). Researchers
4. Which of the following is an example of a source document? 1
(a). Cash Memo (b). Invoice
(c). Sales Bill (d). All of these

5. X commenced business on 1st April 2020 with a capital of ₹6,00,000. On 31st March 2021, his 1
assets were worth ₹8,00,000 and liabilities ₹50,000. Find out his closing capital.
(a). ₹7,50,000
(b). ₹2,00,000
(c). ₹5,50,000
(d). None of these

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 6. 1On Intra-state purchase of goods, which of the following GST is levied?
(a). CGST and SGST (b). SGST and CGST
(c). CGST and IGST (d). IGST
Or
Journal entry for stock left unsold at the of the year
is:
(a). Dr. Closing Stock A/c and Cr. Trading (b). Dr. Trading A/c and Cr. Closing Stock
A/c A/c
(c). Dr. Closing Stock A/c and Cr. P & L A/c (d). Dr. P & L A/c and Cr. Closing Stock
A/c
7. 1 Ledger is called a book of
(a). Primary entry (b). Secondary entry
(c). Final entry (d). None of these
Or
In Ledger which types of accounts are balanced, and which types of accounts are closed at
the end of the accounting period?
(a). Permanent A/cs are closed and (b). Permanent A/cs are balanced and
Temporary A/cs are balanced. Temporary A/cs are closed.
8. 1 Sales Book records only ………………….. sale of goods.
(a). Cash (b). Credit
(c). Revenue (d). Deferred revenue
9. 1 Which of the following is not recorded in the Cash Book?
(a). Credit sales (b). Bad debts
(c). Depreciation on Machinery (d). All of these
Or
Debit balance of ₹10,000 in the Cash Column of the Cash Book shows that:
(a). ₹10,000 has been paid out. (b). ₹10,000 is owed.
(c). The amount received exceeds the (d). ₹10,000 has been credited into the
amount paid €10,000. bank account.

10. 1 Credit Balance on the bank account of a Cash Book is:

(a). Favourable balance (b). Unfavourable balance
(c). Overdraft Balance (d). Both (b) and (c)
Or
Credit Balance on the bank account of a Passbook is:
(a). Favourable balance (b). Unfavourable balance
(c). Overdraft Balance (d). Both (b) and (c)
11. Read the following statement - Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
Assertion (A): Purchase account is credited when the proprietor withdrawal goods from the business
for his personal use.
Reason (R): Purchase account is credited because of withdrawal of goods, net amount of purchase
of the business is reduced.
Alternatives:
a) Both (A) and (R) are correct, and (R) is the correct explanation of (A).

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 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.
12.1 If seller receives back the goods sold i.e., in case of sales return, which of the following is 1
2 prepared: -
. (a). Credit Note (b). Debit Note
(c). Both (a) and (b) (d). None of these
The term ‘Depletion’ is used for which types of assets?
(a). Liquid assets (b). Fixed Assets
13 (c). Wasting assets (d). Intangible assets
Arun purchased a machinery for 2,00,000 and scrap value of the machinery is ₹30,000 and 1
estimated life of the machinery is 10 years. What will be the rate of depreciation?
14 (a). 10% (b). 17%
(c). 12% (d). 11%
Or
A machine is purchased on April 1, 2021. On 31st March 2022, the value of the machinery is
₹4,50,000 after charging depreciation @10% according Reducing Balance Method. What is
the cost of machinery as on April 1, 2021?
(a). ₹4,95,000 (b). ₹5,00,000
(c). ₹4,00,000 (d). Amount cannot be ascertained
Suspense A/c appears in the Trial Balance cause of: 1
be
15 (a). One sided errors (b). Compensating errors
(c). Errors of principle (d). None of these
Purchase of Office Furniture of ₹1,200 has been debited to the General Expenses Account. It is 1
(a). a clerical error (b). an error of principle
16 (c). an error of omission (d). compensating error

Madan started a business on 1st April 2019 with a capital of ₹50,000 and a loan of ₹25,000 3
taken from Sohan. During 2019-20, he introduced additional capital of ₹25,000 and had
17. withdrawn ₹15,000 for personal use. On 31st March 2020, his assets were ₹1,50,000. Find his
capital as on 31st March 2020 and profit made, or loss incurred during the year 2019-20.
Or
Give an example for each of the following transactions:
(I). Increase in one asset and decrease in another
asset. (ii). Increase in one asset and increase in
liability. (iii). Increase in assets and increase in
owner’s capital.
Sold goods to Rahul & Bros within the state list price ₹2,50,000 at 20% trade discount and 4% 3
18 cash discount on sale price. Charged CGST and SGST @6% each. 80% of the amount received
by cheque immediately. Pass journal entry.
Or
Enter the following transactions in the books of Ridhdhi Traders if all transactions have taken
place within the state of Jharkhand. Assuming CGST @ 9% and SGST @9% (Entry of setting
off is not required to be done):
(I). Purchased goods for ₹5,00,000 from Astro Traders.

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 (ii). Goods sold to Pushkar Bros. for ₹3,00,000.
(iii). Commission of ₹10,000 received in cash.
19 Enter the following transactions in the purchase book of SR Cloth House, Ranchi, assuming 3
CGST @6% and SGST@6%.:
2018
April 4 Purchased from RK & Bros, of Ranchi
100 Meter Cotton Cloth @200 per Meter
80 Meter Woollen Cloth @₹500 per
meter
April 12 Purchased from SK & co. of Patna Bihar
50 Meter Silk Cloth @600 per Meter
40 Meter Cotton Cloth @₹250 per
Meter Trade Discount 10%
April 20 Purchased from Fashion Furniture House,
Delhi 10 Chairs @ ₹2,000 per Chair
April 25 Purchased from Shubham & Bros of West Bengal for
cash 100 Meter Woollen Cloth @ ₹600 per Meter
Trade Discount is 15% and Freight Charges payable are ₹3,000
20 What are the differences between reserve and provision? (Any Three) 3
21. Explain the following terms in brief: - 4
(a). Asset, (b). Liability, (c). Revenue and (d). Expense
Or
explain in brief any of the four objectives of accounting?
22. Explain the following in brief: 4
(a). Principle of full disclosure and (ii). Money measurement concept
23. Trial Balance of a firm did not match, and difference was placed in Suspense Account. 4
The following errors were subsequently identified:
(a). Sales Book was overcast by ₹200
(b). Goods sold to Manohar for ₹550 was posted as
₹5,500. (c). Purchases Book was overcast by ₹800.
(d). Purchases Return Book was carried forward as ₹1,220.
You are required to pass the Journal entries for rectification of the above errors.
24. Prepare a Double Column Cash Book with Cash and Bank Columns from following information 4

2018 ₹
Sep 1 Cash in Hand 7,500
Bank Overdraft 35,000
Sep 2 Paid wages 2,000
Sep 5 Cash Sales of Plus CGST and SGST @6% 70,000
Sep 10 Cash deposited into Bank 40,000
Sep 15 Goods purchased for plus IGST @12% and paid by cheque. 20,000
Sep 20 Paid Rent 5,000
Sep 25 Dew from bank for personal use 4,000
Sep 30 Salary paid 10,000

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25. Prepare a Bank Reconciliation Statement as on 31st October 2022 from the following 6
information:
i) Favorable balance as per Cash Book ₹1,26,100.
ii) Cheque issued but not yet presented for payment ₹46,000.
iii) Deposited three cheques for ₹12,000, ₹25,000, and ₹20,000 respectively in the month
of October but out of these the first 2 cheques could be cleared by the bank so far.
iv) Bank charges of ₹500 not yet recorded in the cash book.
v) Directly deposited by a customer ₹16,000 not yet entered in the cash book.
vi) The bank has paid insurance premium on standing order ₹12,400.
26. AC Mills purchased machinery on 1st August 2015 for ₹90,000. On 1st October 2016 it 6
purchased another machine for ₹40,000. On 30th June 2017 it sold off the first machine
purchased in 2015 for ₹58,000 and on the same date purchased a new machinery for
₹1,00,000. Depreciation is provided at 20% p.a. on the original cost each year. Accounts are
closed each year on 31st March.
Show the Machinery Account for three years.
Or
The following balances appeared in the books of Y Limited as on 1st April 2021:
Machinery account rupees ₹
10,00,000 Provision for depreciation account ₹
4,50,000
The machinery was depreciated at 10% per annum on original cost method. On 1st October
2021, a machine which was purchased on 1st December 2018 for ₹1,20,000 was sold for
₹34,000.
Prepare machinery account and provision for depreciation account for the year 2021-22.
PART B: FINANCIAL ACCOUNTING - II
27. Which type of expenses are shown in Trading Account? 1
(a). Direct expenses (b). Indirect expenses
(c). Opening expenses (d). Direct and Indirect expenses

28. If sales are ₹60,000 and the rate of Gross Profit on Cost of Goods sold is 25%, Cost of Goods 1
sold will be:
(a). ₹45,000 (b). ₹50,000
(c). ₹48,000 (d). None of these
Or
If sales are Rs.2,00,000 and the rate of Gross profit on cost of goods sold is 25%, then the cost of goods
sold will be:
(a). ₹1,60,000 (b). ₹1,50,000
(c). ₹1,70,000 (d). ₹1,80,000
29. Sales is equal to 1
(a). Cost of Goods sold – Gross (b). Cost of Goods sold +
Profit Gross Profit
(c). Gross Profit – Cost of Goods (d). Cost of Goods sold + Net
sold Profit

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30. Closing stock, if given inside the Trial Balance, is shown in 1
(a). Trading A/c and Balance Sheet (b). Profit and Loss Account
(c). Profit and Loss Account and (d). Balance Sheet
Balance Sheet

31. From the following information, prepare Trading Account for the year ended 31st March 2022: 4
Adjusted purchases ₹11,00,000; Sales ₹12,50,000; Freight and carriage Inwards ₹6,000;
Wages
₹14,000; Freight and Cartage ₹5,000; Closing Stock ₹1,00,000.
32 ₹ 4
Balance of Provision for doubtful debts on 1st April, 2020 3,000
Bad debts written off in the ended 31st March, 2021 2,000
Sundry Debtors after writing off Bad Debts 60,000
Bad Debts written off in the year ended 31st March, 2022 500
Sundry Debtors before writing off Bad Debts 500
Maintain provision for doubtful debts 20,500
Maintain provision for doubtful debts at 5%

Prepare Bad Debts Account and Provision for Doubtful debts Account
33 From the following balances extracted from the books of M/s Ahuja and Nanda. Calculate the amount of
6
:-
(a). Cost of goods available for sale
(b). Cost of goods sold during the year
(c). Gross Profit
Opening stock ₹25,000.
Credit purchases
₹7,50,000 Cash purchases
₹3,00,000 Credit sales
₹12,00,000 Cash sales
₹4,00,000 Wages
₹1,00,000
Salaries ₹1,40,000
Closing Stock
₹30,000 Sales Return
₹50,000
Purchases Return ₹10,000.
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 34.
From the following information prepare Trading & P&L A/C of M/s Indian Sports House for the 6
ending December March 31st, 2022.
Account Title Amount Account Title Amount
₹ ₹
Drawings 20,000 Capital 2,00,000
Sundry Debtors 80,000 Return outwards 2,000
Bad Debts 1,000 Bank overdraft 12,000
Trade Exp. 2,400 Provision for bad Debts 4,000
Printing & Stationery 2,000 Sundry Creditors 60,000
Rent, Rates and Taxes 5,000 Bills payables 15,400
Freight 4,000 Sales 2,76,000
Returns inwards 7,000
Opening Stock 25,000
Purchases 1,80,000
Furniture & Fixtures 20,000
Plant and Machinery 1,00,000
Bills Receivable 14,000
Wages 10,000
Cash in Hand 6,000
Discount allowed 2,000
Investments 40,000
Motor Car 51,000

5,69,400 5,69,400
Adjustments: -
i.Closing stock was ₹45,000
ii.provision for bad debts is to be maintained @ 2% on Debtors
iii. Depreciation charged on Furniture & Fixtures@5%, Plant and machinery @ 6% and
Motor Car 10%.
iv. A machine of ₹30,000 was purchased on July 1st, 2021.
v. The manager is entitled to a commission of @ 10% of the net profit after charging such
commission.
Or
From the following balances prepare a Trading and Profit and Loss account and Balance Sheet for the
year ended March 31, 2022
Account Title Amount Account Title Amount
₹ ₹
Carriage on goods purchased 8,000 Stock at the end 76,000
Carriage on goods sold 3,500 Purchases less return 1,60,000
Manufacturing expenses 42,000 Commission on purchases 2,000
Advertisement 7,000 Incidental trade expenses 3,200
Excise duty 6,000 Investment 30,000

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 Factory lighting 4,400 Interest on investment 4,500
Debtors 80,000 Capital 1,00,000
Creditors 61,000 Sales less return 5,20,000
Postage and Telegram 800 Depreciation 12,000
Fire Insurance Premium 3,600 Discount allowed 2,700
Patents 12,000 Discount on purchases 3,400
Income tax 24,000 Dock and clearing charges 5,200
Office expenses 7,200
Cash in hand 2,500
Bank overdraft 30,000
Motor car 60,000
Drawings 8,000
Audit fees 2,700
Plant 1,53,900
Repairs to Plant 2,200

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 CLASS-XI
SUBJECT: Accountancy

Time: 3 Hrs. MM: 80

General Instructions:
1) This question paper has 34 questions consisting of 2 parts- A and B.
2) Attempt all parts of an answer at one place.
3) Show working notes wherever required.

S.NO QUESTION MARKS

Part-A
Name any two users of accounting information. 1
1
2 What are current assets? 1
3 1
Gopal is our debtor for ₹ 10,000. He became insolvent and only 60 paise in
a rupee was received from him. The balance of ₹ 4,000 would be entered to the:
a) Debit of discount A/c
b) Credit of Discount A/c
c) Debit of bad debt A/c
d) Credit of bad debt A/c
Or
When the total of debit side of an account exceeds the total of its credit side, the
account is said to have:
a) Credit balance
b) Debit balance
c) Debit as well as credit balance
d) None of the above
4 State whether the following statement is true or false: 1
Liability=Assets-capital
5 Bank balance is always considered as positive if it is: 1
a) Balance as per cash book
b) Debit balance as per cash book
c) Credit balance as per passbook
d) All the above
Or
Is Bank reconciliation Statement a part of financial statement?
6 Which of the following events are not of financial character? 1
a) Purchase of an asset on credit.
b) Purchase of an asset for cash.
c)Withdrawing cash from business for personal use of proprietor.
d)Strike by employees.
7 Reliance Co. did not use a particular machine during the current year. Should 1
depreciation be charged on that machine also? Give the reason.
Or
Depreciation for the second year @10% On a machine purchased for ₹
15,000 will be under Diminishing Balance method.
a) ₹ 1,500 b) ₹ 1,350 c)₹ 1050 d)None of these
8 If ₹ 2,000 received from Anil has been credited to Sunil, the rectifying entry will 1
be-
9 Given below are two statements, one labelled as Assertion(A) and other labelled 1
as Reason(R).
Which one of the following is correct?
Codes:
a) Both A and R are true, and R is the correct explanation for A.
b) Both A and R are true, but R is not the correct explanation for A.
c)A is true but R is false.
d)A is false but R is true.
Assertion(A): Accounting records only the transactions of financial nature.
Reason (R): Goods taken from the business by the proprietor for his personal use
is not of a financial nature and hence will not be recorded.
10 Amount which a proprietor has invested in a business is known as- 1
a) capital b) assets c) debtors d) None of the above
Or
Purchase refers to the buying of-
a) Stationery for office use
b) Assets for the factory
c) Goods for resale
d) Investment
11 Profit on sale of assets is used to create: 1
a) General Reserve
b) Specific Reserve
c) Capital Reserve
d) All the above
or
Is provision for doubtful debt a charge against profit or an appropriation of profit?
12 Reserve is created from: 1
a) Profits b) Losses c) Assets d) Liabilities.
13 Frame accounting equation from the following transactions: 3
a) Started business with cash ₹ 1,00,000 and goods worth ₹ 20,000.
b) Sold 50% of the above goods at a profit of ₹ 2,000 on credit to Ravi.
c) Ravi paid 90% of his amount due in full settlement.
14 State any three reasons due to which bank balance as per Cash Book and that as 3
per Passbook may differ.
15 Define the term depreciation and give any two reasons why we need to provide 3
depreciation.
16 Draft a trial balance from the following information: 3
Cash in hand ₹ 4,100
Machinery ₹ 25,000
Purchases ₹ 66,200
Debtors ₹ 24,300
Carriage inward ₹
1,800 Carriage outward
₹ 700 Wages ₹ 17,500
Rent and taxes ₹ 5,300
Sundry creditors ₹
17,000 Discount allowed
₹ 1,200 Returns outward
₹ 2,400 Returns inward ₹
9,600 Capital ₹ 30,000
Drawings ₹ 6,300
Bank loan ₹ 10,000
Interest on loan ₹
1,500
Opening stock ₹
26,200 Sales ₹
1,28,700
Discount Received ₹1,600
17 Journalize the following transactions: 4
2021
a) April 1 Won a lottery prize of ₹ 5,00,000 and started business with the
prize money.
b) April 5 Purchased goods costing ₹ 1,00,000 from Sahil & Co. Paid
60% immediately by cheque to avail 5% discount.
c) Goods destroyed by fire ₹ 15,000. (CGST and SGST @ 6% each)
18 From the following information prepare a Bank Reconciliation Statement of J.P. 4
Kansal as on 30/06/2016:
a) Favorable balance as per passbook ₹ 6,000
b) Out of total cheques amounting to ₹ 37,500 drawn by Mr. Kansal, cheques of
₹ 5,000 were encashed in June 2016, cheques amounting to ₹ 4,000 were
encashed in July 2016 and the rest have not been presented at all.
c)Out of total cheques amounting to ₹ 12,000 deposited, cheques aggregating ₹
7,500 were credited in June2016, cheques aggregating ₹ 2,000 were credited in
July 2016 and the rest have not been collected at all.
d)Amount wrongly debited by bank ₹ 2,400.
Or
The bank passbook of M/s. Boss & Co. showed a balance of ₹ 45,000 on May 31,
 2017.
1. Cheques issued before May 31, 2017, amounting to ₹ 25,940 had not
been presented for encashment.
2. Two cheques of ₹ 3,900 and ₹ 2,350 were deposited into the bank on May
31 but the bank gave credit for the same in June 2017.
3. There was also a debit in the passbook of ₹ 2,500 in respect of a
cheque dishonored on 31.5.2017.
Prepare a bank reconciliation statement as on May 31, 2017.
19 Answer the following questions: 1+1+4
a) The proprietor of the business is treated as a creditor to the extent of his capital
under which concept of accounting?
b) Land and buildings are shown at ₹ 10 lacs on the Balance Sheet of the business
owned by Mr. Yuvraj. However, as per the certificate of Govt approved valuer the
realizable value of land and building is ₹ 200 lacs. Mr. Yuvraj wants to show the
land and building at this value in his books. Can he do so?
c)Briefly describe the concepts of Going Concern and Prudence.
20 Prepare a double column cash book with cash and bank columns from the 6
following transactions:
2018
Jan1 Bank overdraft ₹
12,000 Cash in hand ₹
2,300.
Jan5 Purchased goods for ₹ 40,000; Trade discount 15%, IGST 12%.
Payment made by cheque.
Jan7 Cheque received from S. Nair ₹ 4,000. Discount allowed ₹
200. Jan 9 Cheque received from S Nair banked.
Jan 13 Money withdrawn from bank for office use ₹ 3,400.
Jan 21 Fees of children paid by cheque ₹ 3,000.
21 On 1st April 2017 Z Ltd. purchased machinery for ₹ 1,20,000 and on 30th 6
September 2018, it acquired additional machinery for ₹ 20,000. On 30/06/2019
one of the original machines (purchased on 1/4/2017) which had cost ₹ 5,000 was
found to have become obsolete and was sold as scrap for ₹ 500. On the same date
a new machine was purchased for ₹ 8,000. Depreciation is to be charged
@15%
p.a. on written down value. Accounts are closed on 31st March each year. Show
machinery account for the first 3 years.
Or
M/s Mehra and Sons acquired a machine for ₹1,80,000 on October 01, 2016, and
spent ₹ 20,000 for its installation. The firm writes off depreciation at the rate of
10% on original cost every year. Draw up Machine Account and Depreciation
Account for first three years given that: The book of accounts closes on March 31
every year;
22 Rectify the following errors. 6
a) Sales book is overcast by ₹ 2,500.
b) Goods returned to Sandy ₹ 1,000 were recorded in Sales book.
c)An amount of ₹ 1,500 has been posted to the debit side of Rent and
rates account instead of ₹ 1,100.
d)Goods withdrawn by the proprietor for personal use ₹ 1,000 were debited
to sundry expenses A/c.
e) Goods distributed as free samples ₹ 5,000 were not recorded in the books.
f) ₹ 4,000 paid for installation of a machinery wrongly debited to Wages A/c.

Part-B
23 Give one point of difference between capital expenditure and revenue 1
expenditure.
24 Mr. Khanna spends ₹ 4,00,000 for the advertisement of a new product launched 1
in the market. What kind of expenditure is it?
Or
Expenses on whitewashing and painting of a new building to make it ready for
use are revenue expenditures. Say true or false.
25 Returns outward is deducted from: 1
a) Sales
b) Capital
c) Net profit
d) Purchases
26 Closing stock is shown in final accounts at: 1
a) Cost price
b) Market price
c) Cost or market price whichever is greater
d)Cost or market price whichever is lower.
27 Depreciation is charged on assets. 1
28 Accrued income is considered as for the business firm. 1
29 Which of the following is not added to capital? 1
a) Net profit
b) Drawings
c) Interest on capital
d) Additional capital
30 Given below are two statements, one labelled as Assertion(A) and other labelled 1
as Reason(R).
Which one of the following is
enclosed for making the advance
payment at the earliest.
Codes:
a) Both A and R are true, and R is the correct explanation for A.
b) Both A and R are true, but R is not the correct explanation for A.
c)A is true but R is false.
d)A is false but R is true.
Assertion(A): Prepaid expenses are an asset of the firm.
 Reason (R): Expenses have been paid in advance for the next period during the
current period itself.
Or
What are direct expenses?
31 From the following information calculate gross profit and cost of goods sold: 3
Net sales during the year ₹ 6,00,000
Gross profit @ 25% on cost.
32 From the following information, prepare a Trading account for the year ended 3
31/03/2018.
Cost of goods sold ₹
2,00,000 Sales ₹ 2,50,000
Wages ₹ 6,250
Closing stock ₹15,000

33 What is operating profit? How is it calculated? 2+2=4

Or
a) What is Marshalling of assets and liabilities?
b) If Adjusted Purchase and Closing Stock are given in Trial Balance, will you
transfer Closing Stock to Trading Account? Give the reason.
34 From the following trial balance as on 31/03/2022, prepare Trading and Profit and 6
loss Account and balance Sheet as on that date including the following
adjustments:
1) Stock in hand on 31/03/2022 ₹ 5,000.
2) Salaries ₹ 500 and Wages ₹ 500 were unpaid.
3) ₹ 25 included in office cleaning expenses are prepaid.
4) Interest in investment for the last 6 months was accrued but not received.
Particulars Dr (₹) Cr (₹)
Opening stock 2,500
Purchases and sales 20,000 50,000
Returns 2,500 1,000
Building 10,000
Wages 2,500
Debtors and creditors 5,000 2,500
Interest 500
Salaries 5,000
Machinery 15,000
Carriage inward 1,000
Carriage outward 2,500
Rent, rates and taxes 5,000
Capital 24,500
Drawings 1,000
Office expenses 1,000
Office cleaning expenses 500
 Investment@20% 5,000

Or

From the following trial balance as on 31/03/2022, prepare Trading and Profit
and loss Account and balance Sheet as on that date:
Particulars. (₹) Cr. (₹)
Opening stock 2,500
Purchases and sales 20,000 50,000
Returns 2,500 1,000
Building 10,000
Wages 2,500
Debtors and creditors 5,000 2,500
Interest 500
Salaries 5,000
Machinery 15,000
Carriage inward 1,000
Carriage outward 2,500
Rent, rates and taxes 5,000
Capital 24,500
Drawings 1,000
Office expenses 1,000
Office cleaning expenses 500
Investment@20% 5,000
Additional information:
1)Stock in hand on 31/03/2022 ₹
6,000. 2)Depreciate machinery by 10%.
3) ₹200 of the debtors proved bad.
4) Create provision for doubtful debts@ 5% on debtors.