Accountancy Paper (2023-24)

Class 11

Maximum Marks: 80
Time Allowed: : 3 hours

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. The vouchers which are prepared for transactions not involving cash, i.e. non-cash transactions, are known as
________ vouchers.
a) Token
b) Credit
c) Transfer
d) Unilateral
2. Assertion (A): Statements prepared through management account are helpful in decision making process.
Reason (R): The information provided by management accounts is financial and non-financial as well.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
3. Goodwill account is a:
a) Nominal Account
b) Real Account
c) None of these
d) Personal Account
4. What shall be the amount of Capital if Cash is 5,000; Furniture 12,000; Stock 30,000 and Creditors 6,000?
a) 41,000
b) 43,000
c) 53,000
d) 47,000
OR

Purchase of machine by cash means:

a) increase in asset and decrease in the asset

b) none of these
c) the decrease in asset and increase in capital
d) increase in asset and decrease in liability
5. Source of documents are
a) Cash Memo
b) Both Cash Memo and Invoice
c) Neither Cash Memo Nor Invoice
d) Invoice
6. Income statement include
a) Profit and loss account only
b) Trial Balance only
c) Balance sheet only
d) Statement of profit and loss
OR

Which of the following is not a limitation of accounting?

a) Evidence in Legal Matters

b) Based on accounting conventions
c) Incomplete Information
d) Omission of Qualitative Informations

7 .Which of the following correctly differentiates between provision and reserves?

A provision is a charge against profit whereas reserve is an appropriation of profit.
Provision is made for a known liability or expense the amount of which is not certain whereas reserve is created for
strengthening the financial position of the business.
Provision is deducted before calculating taxable profits whereas a reserve is created from profit after tax and
therefore it has no effect on taxable profit.
All of these
a) Option (ii)
b) Option (i)
c) Option (iii)
d) Option (iv)
8 . Rule of Debit and Credit for Impersonal account is
a) Dr. the receiver and Cr the giver
b) Dr. what goes out and Cr what comes in
c) Dr. all expenses and Cr all gains & Dr. what goes out and Cr what comes in
d) Dr. all expenses and Cr all gains
OR

When a total of the debit side of an account exceeds the total of its credit side, the account is said to have ________.

a) Debit Balance
b) None of these
c) Debit as well as credit balance
d) Credit Balance

Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions: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:

9. Financial statements are prepared on 31st March every year.

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
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. Match the following. Options are

a. General
i. reserve are created for specific purpose
reserve
b. Specific ii. reserve may or may not involve any receipts
 reserve of cash
c. Capital
iii. created in business for rainy day
reserve
1. a) a – (ii), b – (iii), c – (ii)
2. b) a – (iii), b – (i), c – (ii)
3. c) a – (iii), b – (ii), c – (i)
4. d) a – (ii), b – (i), c – (iii)
12. Which of the following is not a fixed asset?
a) Computers
b) Furniture
c) Building
d) Cash in hand
13. Return of goods purchased on credit to the suppliers will be entered in ____ Book.
a) Purchase
b) Sales
c) Sales Return
d) Purchase Return
14. When goods are returned to supplier assets and ________ are ________ by same amount.
a) liabilities, increased
b) assets, decreased
c) liabilities, decreased
d) assets, increased
15. Which of the following is not a fixed asset?
i. Balance with bank
ii. Plant and Machinery
iii. Building
iv. Goodwill
a) B only
b) C only
c) A only
d) D only
OR

Out of the following assets, which one is not an intangible asset?

a) Patents
b) Trade Mark
c) Machinery
d) Goodwill
16. Goods sold for Cash Rs 25,000 plus 12% IGST. Sales A/c will be credited by:
a) Rs 28,000
b) Rs 22,000
c) Rs 25,000
d) None of these
17.How secret reserve can be created
a) All of these
b) By charging capital expenditure to revenue
c) Under valuating stock
d) By making excessive provisions
18.When an account is said to have a debit balance and credit balance?
OR

Pass Journal entry for purchase of goods by Amrit, Delhi from Add Gel Pens, Delhi for ₹ 15,000 less Trade Discount
10% and Cash Discount 3%. CGST and SGST is levied @ 6% each. Assume payment is made at the time of
purchase.

19. Why is the consistency principle important?

OR

What is meant by Accounting Standard? State any two benefits of it.

20. Distinguish between debtors and creditors.
21. Following balances were extracted from the books of Ravinder Associates as at 31st March, 2017:
(₹) (₹)

4,10,00 2,30,00
Sundry Debtors Stock (April 1, 2016)
0 0

Sundry 12,00,0
80,000 Premises
Creditors 00

3,10,00
Rent and Taxes 48,000 Fixtures & Fittings
0

34,00,0
Purchases Bad Debts written off 8,000
00

56,00,0 Rent received from sub-let of part of

Sales 30,000
00 premises

1,50,00
Trade Expenses 12,000 Loan from Mukul
0

Returns
80,000 Interest on Mukul’s Loan 15,000
Outwards

Returns 1,20,00
Drawings 40,000
Inwards 0

Expenses 4,000 Cash in hand 75,000

6,50,00
Motor Vehicles Stock on 31st March, 2017
0

3,80,00
Electricity 25,000 (not adjusted)
0
You are required to prepare the trial balance treating the difference as his capital.

22. Record the following transactions in a cash book with cash and bank columns:

2017 ₹

Jan. 1 Bank overdraft 12,000

Cash in hand 2,300

Cheque received from Ram ₹ 4,000 and discount allowed ₹

Jan. 7
200

Jan. 8 Deposited the above cheque into Bank 4,000

Jan. 12 Banked 200

Jan. 15 Received a money order from Gopal 500

Jan. 16 Money is withdrawn from Bank for office use 300

Jan. 18 Bank Charges 20

Jan. 20 Interest on bank overdraft 1,000

23. From the following particulars ascertain the balance that would appear in the Bank Pass Book of A at 31st
December 2013:
i. The bank overdraft as per Cash Book on 31st December 2013 ₹ 63,400.
ii. Interest on overdraft for 6 months ending 31st December 2013, ₹ 1,600 is entered in the Pass Book.
iii. Bank charges of ₹ 300 for the above period are debited in the Pass Book.
iv. Cheques issued but not cashed prior to 31st December 2013 amounted to ₹ 11,680.
v. Cheques paid into bank but not cleared before 31st December 2013 were for ₹ 21,700.
 vi.Interest on investments collected by the bank is credited in the Pass Book ₹ 12,000.
OR

On 31st March 2018, the Bank Pass Book of Naresh & Co. showed an overdraft of Rs.10,700. From the following
particulars prepare Bank Reconciliation Statement

i. Cheques issued before 31-03-2018 but presented for payment after that date amounted to Rs.900.
ii. Cheques paid into the Bank but not collected and credited until 31-03- 2018 amounted to Rs.2,200.
iii.Interest on overdraft amounting to Rs.1,200 did not appear in the Cash Book.
iv.Rs.5,000 being interest on investments collected by the Bank and credited in the Pass Book were not shown in
the Cash Book.
v.Bank charges of Rs.50 were not entered in the Cash Book.
vi.Rs.800 in respect of dishonoured cheque were entered in the Pass Book but not in the Cash Book.
24.On the basis of the narrations, fill in the missing values:
Journal Entries
Dat L. Amoun Amount
Particulars
e F. t (Rs) Cr. (Rs)

Dr
________ ________
.

________ ________
(i)
To ________ ________

(Being the bank draft of Rs 10,000 issued

to Suman, bank charges Rs 100)

Dr
________ 10,000
.

(ii) To ________ 10,000

(Being the cheque of Ranjan

dishonoured)

Dr
________ ________
.

To ________ ________
(iii)
To ________ ________

(Being the purchase of goods of Rs

30,000; received cash discount @ 2%)

Dr
________ ________
.

________ ________
(iv)
To ________ ________

(Being the sale of goods of Rs 30,000

allowed cash discount @ 3% )

Dr
________ ________
.

(v) To ________ ________

(Being the goods costing Rs 15,000 lost

in the fire)

(vi) Dr
________ ________
.

________ ________
 To ________ 10,000

(Being the rent

paid, {tex}\frac{1}{4}{/tex}th of the
premises used for residence)

Dr
________ ________
.

To ________ ________

To ________ ________
(vii)
To ________ ________

(Being the machinery (cost Rs 2,00,000)

recorded, adjusting advance (Rs 20,000),
old machine (Rs 10,000 cost) and
balance by payment by cheque)

Dr
________ 20,000
.

(viii) To ________ 20,000

(Being a computer out of stock used for

office purposes)

Dr
________ ________
.

(ix) To ________ ________

(Being the computer (stock) costing Rs

15,000 taken for domestic use)

Dr
________ ________
.

________ ________

(x) To ________ ________

To ________ ________

(Being the salaries (Rs 40,000) and rent

(Rs 15,000) outstanding)
OR

Journalise the following transactions:

2017 Amount (₹)

Dec.01 Hema started business with cash 1,00,000

Dec.02 Open a bank account with SBI 30,000

Dec.04 Purchased goods from Ashu 20,000

Dec.06 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

Dec.16 Received cheque from Suman 19,500

Discount allowed 500

 Dec.20 Cheque given to Ashu on account 10,000

Dec.22 Rent paid by cheque 2,000

Dec.23 Deposited into bank 16,000

Dec.25 Machine purchased from Parigya 10,000

Dec.26 Trade expenses 2,000

Dec.28 Cheque issued to Parigya 10,000

Dec.29 Paid telephone expenses by cheque 1,200

Dec.31 Paid salary 4,500

25.Trial Balance of Rahul did not agree. Rahul put the difference to Suspense Account. Subsequently, he located the
following errors:
i. Wages paid for the installation of Machinery Rs 600 was posted to Wages A/c.
ii. Repairs to Machinery Rs 400 debited to Machinery A/c.
iii. Repairs paid for the overhauling of second-hand machinery purchased Rs 1,000 was debited to Repairs A/c.
iv. Own business material 8,000 and wages Rs 2,000 were used for the construction of the building. No
adjustment was made in the books.
v. Furniture purchased for Rs 5,000 was posted to Purchases A/c as Rs 500.
vi. Old machinery sold to Karim at its Book value of Rs 2,000 was recorded through sales book.
vii.Total of Sales Returns Book Rs 3,000 was not posted to the ledger.
Rectify the above errors and prepare Suspense Account to ascertain the original difference in Trial Balance.
OR

There was a difference of Rs. 8,595 in a trial balance. It has been transferred to debit side of suspense account.
Later on following errors were discovered. Pass the rectifying entries and prepare the suspense account.

i. Rs 283 discount received from a creditor had been duly entered in his account but not posted to discount
account.
ii. Goods bought from a merchant for Rs 770 had been posted to the credit of his account as Rs. 7,700.
iii. Rs 6,000 owing by a customer had been omitted from the schedule of sundry debtors.
iv. An item of Rs 2,026 entered in the sales return book had been posted to the debit of the customer who returned
the goods.

26. On 1st April, 2016 a firm purchased machinery for ₹ 3,00,000. On 1st October, 2016, additional machinery
costing ₹ 1,50,000 was purchased On 1st October, 2017, the machinery purchased on 1st April, 2016 having
become obsolete, was sold for ₹ 1,35,000. On 1st October, 2018, new machinery was purchased for ₹ 3,75,000
while the machinery purchased on 1st October, 2016 was sold for ₹ 1,27,500 on the same day. The firm provides
depreciation on its machinery @ 10% per annum on original cost on 31st March every year.
Show Machinery Account, Provision for Depreciation Account and Depreciation Account for the period of three
accounting years ending 31st March, 2019.
OR

You are given following balances as on 1st April 2014:

Plant & Machinery A/c Rs 25,00,000

Provision for Depreciation A/c Rs 5,80,000

Depreciation is charged on the plant at 20% p.a. by the diminishing balance method. A piece of machinery

purchased on 1st April 2012 for Rs 5,00,000 was sold on 1st October 2014 for Rs 3,00,000.

Prepare the Plant & Machinery Account and Provision for Depreciation Account for the Year ended 31st March 2015.

Part B