FINAL EXAMINATIONS (2023-24)

CLASS – XI
SUBJECT – ACCOUNTANCY
SET – B
Max. Marks – 80 Roll no. -
Time – 3 hours Date -

# Multiple Choice Questions

Q1. Basic function of financial accounting is to
(a) Record all business transactions (b) Interpret financial data
(c) Assist to management (d) All of these
Q2. Which of the following is term increases capital?
(a) Drawings (b) Expenses
(c) Loss (d) Profit
Q3. A concept that a business enterprise will not be sold or liquidated in the near future is known as
(a) Going Concern (b) Economic Entity
(c) Monetary Unit (d) None of these
Q4. Accrual basis of Accounting recognizes
(a) Outstanding and Prepaid Expenses (b) Accrual Income
(c) Both A and B (d) None of these
Q5. An increase in one Asset is accompanied by
(a) Decrease in another asset (b) Increase in a liability
(C) Increase in Capital (d) All of these
Q6. Sundry Creditors is a
(a) Revenue Account (b) Capital Account
(c) Liability Account (d) Profit Account
Q7. When goods are purchased against cash, the seller prepares
(a) Cash memo (b) Invoice bill
(C) Accounting Voucher (d) Debit Note
Q8. Lalit who owed 20,000 became insolvent. 70 paise in a rupee was received from his estate. Bad debts
Account will be debited by
(a) 20,000 (b) 10,000
(c) 6000 (d) 14,000
Q9. Posting of transactions means
(a) entering transactions in Journal (b) entering transactions in Ledger
(c) entering transactions in Trail Balance (d) entering transactions in Financial Statements
Q10. When a firm maintains Two columns Cash Book, it does not maintain
(a) Purchase Book (b) Sales Book
(c) Journal Proper (d) Bank and Cash Accounts in Ledger
Q11. The Sales return book record transactions related to
(a) the return of goods purchased (b) the return of goods sold on credit
(c) the return of goods sold for cash (d) the transactions of goods sold
Q12. On intra state (within the state) purchase of goods, which of the following is levied?
(a) CGST (c) SGST
(c)SGST and CGST (d) SGST and IGST
Q13. Bank reconciliation Statement is a part of
(a) Double Entry System (b) Profit and loss Statement
(c) Single Entry System (d) Journalizing and Posting
Q14. Which of the following is shown as debit balance in the Trial Balance ?
(a) Cash in Hand (b) Rent Outstanding
(c) Creditors (d) Bank Overdraft
Q15. The amount of Depreciation charged on machinery is debited to
(a) Depreciation Account (b) Machinery Account
(c) Provision for Depreciation Account (d) None of these
Q16. Profit on sale of fixed Asset is used to create
(a) Specific Reserve (b) General Reserve
(c) Capital Reserve (d) All of these
Q17. Errors not shown in Trial Balance are
(a) Error of Principle (b) Compensating Errors
(c) Error of Complete Omission (d) All of these
Q18. Insurance Premium paid to ensure the machinery at the time of its purchase is
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None of these
Q19. Following information is taken from the Trail Balance of a Business –
Sales : 1,00,000 Purchase : 60,000 Wages : 7,000 and closing stock was 3,000 more than Opening
Stock. What was Gross Profit ?

(a) 30,000 (b) 33,000 (c) 36,000 (d) 40,000

Q20. Single Entry System can be adopted by which of the following ?
(a) Small firms (b) Joint Stock Company
(c) Co-operative Society (d) None of these
Q21. Differentiate between Cash Basis and Accrual Basis of Accounting. (3mks)
Q22. Prepare Trading Account as on 31st March 2023 from the following Balances - (3mks)

Account Title Amount

st
Stock on 1 April, 2022 10,000
Sales return 5,000
Sales 2,00,000
Wages 11,000
Purchases 2,00,000
Purchase return 2,500
Carriage Inwards 1,500
Carriage Outwards 3,000
Freight Inwards 2,500
Closing stock (on 31 March 2023) 20,000

Q23. On 1st April 2019, furniture costing 55,000 was purchased. It is estimated that its useful life is 10 years
at the end of which it will be sold for 5,000. Additions are made on 1 st April 2020 and 1st October2022 to
the value of 9,500 and 8,400 (residual values 500 and 400 respectively). Show the Furniture Account for the
first four years, if Depreciation is written off according to Straight line method. (4mks)

Q24. (a) Write any two characteristics of Goods and Services Tax. (4mks)
(b) What is the full form of IGST , SGST , CGST and UTGST ?
Q25. Prepare Accounting Equation from the following (4mks)
(a) Started business with cash 1,00,000
(b) Purchased goods for cash 20,000 and on credit 30,000
(c) Sold goods for cash costing 10,000 and on credit costing 15,000 both at a profit of 20%
(d) Paid Salaries 8,000

Q26. Give the rectifying entries of the following (4mks)

(i) Old furniture sold for 500 has been credited to Sales Account.
(ii) Machinery purchased on credit from Raman for 2,000 recorded through Purchases Book as 16,000.
(iii) Cash received from Rajat 5,000 was posted to debit of Bhagat as 6,000
(iv) Depreciation provided on machinery 3,000 was posted to Machinery Account as 300
Q27. From the following particulars of Anil & Co. prepare a Bank reconciliation Statement - (4mks)
(1) Debit Balance as per the Cash Book 54,000
(2) ₹ 100 bank incidental charges debited to Anil & Co. Account, which is not recorded in Cash Book
(3) Cheques for ₹ 5,400 is deposited in the Bank but not yet collected by the bank.
(4) A cheque for ₹ 20,000 is issued by Anil & Co. not presented for payment.
Q28. Prepare Trial Balance from the following items:

Capital 3,40,000 Building 1,20,000

Opening Stock 85,000 Returns Inward 19,000
Furniture 1,26,000 Returns Outward 3,500
Purchases 89,500 Trade Expenses 10,000
Cash 73,000 Discount Received 9,700
Carriage 3,000 Salary 30,000
Sales 2,25,000 Office Rent 22,700
OR
Journalize the following transactions (4mks)

2017
Dec 1 Hema started business with cash 1,00,000
Dec 2 Open a bank Account in SBI 30,000
Dec 4 Purchased goods from Asha 20,000
Dec 6 Sold goods to Rahul for Cash 15,000
Dec 10 Bought goods from Tara for cash 40,000
Dec 13 Sold goods to Suman 20,000

Q29. On 1st October 2020, Rahul Traders purchased a machine for 25,000 and spent 5,000 for carriage and
freight; 1000 for brokerage of the middle man, 4000 for installation. The machine is depreciated @ 10 %
p.a. on written down value basis. On 31st march 2023, the machine was sold to Deepa for 30,500 and 500
was paid as commission to broker through whom the sales was effected. Prepare machinery account till
year ended 31 march 2023 by Written down value method. Accounts are closed on 31 st march, every year.
(6mks)

Q30. From the following balances prepare a Trading Account, Profit and loss Account and a Balance sheet
for the Year ended March 31, 2017 (6mks)

Account Title Amount Account Title Amount

Carriage on goods purchased 8,000 Cash in hand 2,500
Carriage on goods sold 3,500 Bank overdraft 30,000
Manufacturing Expenses 42,000 Motor car 60,000
Advertisement 7,000 Drawings 8,000
Excise duty 6,000 Audit fees 2,700
Factory lighting 4,400 Plant 1,53,900
Debtors 80,000 Repairs to plant 2,200
Creditors 61,000 Stock at the end 76,000
Dock and Clearing charges 5,200 Purchase less return 1,60,000
Postage and Telegram 800 Commission on purchase 2,000
Fire Insurance premium 3,600 Incidental trade Expenses 3,200
Patents 12,000 Investment 30,000
Income Tax 24,000 Interest on Investment 4,500
Office expenses 7,200 Capital 1,00,000
Discount allowed 2,700 Sales less return 5,20,000
Discount on purchase 3,400 Sales tax paid 12,000
Q31. The following balances have been extracted from the books of M/s Green House for the year ended
March 31, 2017, prepare trading and profit and loss Account and balance sheet as on this date.
(6mks)

Account Title (Dr) Amount Account Title (Cr) Amount

Purchases 80,000 Capital 2,10,000
Bank balance 11,000 Bills payable 6,500
Wages 34,000 Sales 2,00,000
Debtors 70,000 Creditors 50,000
Cash in hand 1,200 Return outwards 4,000
Legal expenses 4,000
Building 60,000
Machinery 1,20,000
Bills receivable 7,000
Office Expenses 3,000
Opening stock 45,000
Gas and fuel 2,700
Freight and Carriage 3,500
Factory lightening 5,000
Office furniture 5,000
Patent right 18,800
4,70,500 4,70,500

Adjustments –
(a) Machinery is depreciated at 10% and buildings depreciated at 6%
(b) Interest on Capital @ 4%
(c) Outstanding Wages 50
(d) Closing Stock 50,000

Q32. Shanti Maintains her books of account from incomplete records. Her books provide the following
information

Particulars 1st April 2022 1st April 2023

Cash 1,200 4,000
Debtors 16,800 27,200
Stock 22,400 24,400
Investments - 8,000
Furniture 7,500 8,000
Creditors 14,000 15,200

She withdrew 300 per month for personal expenses. She sold her investments of 16,000 at 2% premium
and introduced that amount into business. You are required to prepare a Statement of Profit or Loss for the
year ending 31st March, 2023. (6mks)
Q33. From the following Journal entries prepare ledger Account for (i) Cash and (ii) Rohit
(6mks)

Date Particulars LF Debit Credit

2023
1 April Cash A/c Dr 50,000
To Capital A/c 50,000
4 April Rita’s A/c Dr 10,000
To Cash A/c 10,000
6 April Rohit’s A/c Dr 25,000
To Sales A/c 25,000
8 April Cash A/c Dr 20,000
To Rohit’s A/c 20,000
18 April Rita’s A/c Dr 20,000
To Cash A/c 20,000
25 April Rohit’s A/c Dr 10,000
To Sales A/c 10,000
30 April Cash A/c Dr 6,000
To Rohit’s A/c 6,000
OR
Prepare a double column Cash book with the help of following information for December 2016;

Date Transactions Amount

01 Started business with cash 1,20,000
03 Cash paid into bank 50,000
05 Purchased goods from Sushmita 20,000
06 Sold goods to Dinker and received a cheque 20,000
10 Paid to Sushmita cash 20,000
14 Cheque received on 6 dec 2016 deposited into -
18 bank 12,000
20 Sold goods to Rani 500
22 Cartage paid in cash 12,000
27 Received cash from Rani 5,000
30 Commission received 2,000
Drew cash for personal use