2019-20

Modal Test Paper 1

Accountancy, Class XI
Time: 3 hours M.M: 80
General Instructions:
1. The question paper is divided into two parts, Part A carries 60 marks and Part B carries 20
marks.
2. Both the parts are compulsory.
3. Attempt all parts of a question together.
4. Make formats neatly, avoid cutting and overwriting.
5. Give working notes wherever necessary.

Part-A
Fill in the blanks with appropriate words:
1. Purchases Book records only __________ purchase of goods. 1

2. Income tax paid for the proprietor is debited to _______________Account. 1

3. If the Owner’s Capital is Rs. 2,40,000 and other Liabilities are Rs. 1,20,000, Cash in
Hand is Rs. 60,000, total assets of the firm will be _________________.
1
4. Amount owed to an outsider is _______________. 1
5. An example of Deferred Revenue Expenditure is ______________________ 1

State whether the following statements are True or False:

6. Accounting principles and policies once adopted should be followed year after year
unless there is a change in law or accounting standards. It is based on Materiality
Concept. 1
7. Cash column in the Cash Book cannot have credit balance whereas Bank column may 1
have credit balance.

8. Purchase of an asset for cash would cause Total Liabilities to decrease. 1

9. Difference between Total Asset and External Liabilities is Net Worth. 1

10. Cash Book is an example of General Journal. 1

Select the correct choice to answer the following questions
11. If total Assets of a business are Rs. 1,80,000 and net worth is Rs. 50,000, then 1
outsider’s liability will be:-
(a) Rs. 1,30,000
(b) Rs. 2,30,000
(c) Rs. 1,80,000
(d) Rs. 50,000
12 The closing balance of the Petty Cash Book is 1
(a) Expense/Expenditure
(b) Profit/Gain
(c) Asset
(d) Liability
13 Ramesh, a customer had placed an order for purchase of furniture of Rs. 50,000 1
against which he advances Rs. 5,000. The businessman wants to record it as sale. By
doing so, which of the following accounting concepts will be violated?
(a) Money Measurement Concept
(b) Revenue Recognition Concept
(c) Going Concern Concept
(d) Matching Concept
14 Out of these, on which of the following Asset depreciation is charged? 1
a) Fixed Assets
b) Current Assets
c) Liquid Assets
d) Fictitious Assets

15. Pass necessary adjustment entries for the following transactions:-

a) Withdrawn goods for personal use (Cost Rs. 5,000 + IGST@18%; Sale Price
Rs. 7,000)
b) Sold goods to Kiran of Delhi at the list price Rs. 20.000 less trade discount 10% 3
add CGST and SGST @ 9% each., and allowed cash discount @5%. He paid
amount immediately.
c) Closing Stock amounted to Rs.20,000.
16. Calculate Gross Profit from the following information:-

Closing Stock Rs.70,000

Wages Rs.40,000
Salary Rs.50,000
Sales Rs.6,80,000
Purchases Rs.4,00,000
Opening Stock Rs.50,000
Or
Operating Profits earned by M/S Sharma and Sons in year 2019-20 was Rs.12,50,000.
Its non-operating incomes were Rs.4,00,000 and non-operating expenses were 3
Rs.5,00,000. If Operating Expenses were Rs. 6,00,000, find out Gross Profit and Net
Profit of the firm.
17. From the following extracts of Trial Balance of Sultan, you are required to prepare the
extracts of Financial Statements of firm for year ending 31st March 2019

Particulars Debit Balance (Rs.) Credit Balance

(Rs.)
Debtors 4,35,000
Bad Debts 20,000
Provision for Doubtful 20,000
Debts
Adjustments
(a) Additional bad debts amounted to Rs.35,000.
(b) Create a Provision for bad debts @10%.
4
18. Ashu keeps incomplete records. He started business on 01 April, 2018 with Capital of
Rs.40,000. His Capital balance as on 31st March,2019 was Rs.1,50,000. During the
year he had spent Rs.10,000 to buy Mobile phone for his daughter and also withdrew
Rs.2,500 per month for his household expenses. He also introduced additional capital
by selling his personal investments of Rs.50,000 at 20% profits and total proceeds
were brought into the business. Calculate the profit or loss of his business for the year
ended 31st March, 2019.
4
19. Prepare Accounting Equation for the following transactions:-
a) Started Business with Cash Rs.1,00,000 and Bank Balance Rs.2,50,000.
b) Purchased Goods from Rahul for Rs.25,000 and paid him 60% immediately.
c) Sold Goods costing Rs.15,000 at a profit of Rs.20,000 to Ramesh.
d) Security Deposit paid to Landlord Rs.50,000 by cheque. Also paid him Rent of
Rs.20,000 in Cash. 4
20 Prepare Bank Reconciliation Statement of Reema as on 31st March, 2019 from the
following information.
a) Balance as per Pass Book (Dr.) Rs.25,500
b) Bank collected a cheque of Rs.6,000 on behalf of Seema but wrongly
credited to Reema’s account.
c) Cheque issued to Dhrishti of Rs.4,000 was not presented for payment till 3 rd
April,2019.
d) Deposit column of Cash book was overcast by Rs.70.
e) A cheque of Rs.5,000 received and entered in cash Book, but was omitted to
be banked.
f) Cash deposited in Bank of Rs.6,000 was entered as Rs.600 by Reema’s
Cashier.
Or
On comparing the Current account balance in the cash book of Suresh, with the Bank
Pass Book, the following discrepancies were noted:
a) Out of Rs 25,000 paid in cash, and by cheques into the bank on
31st March, 2019 cheque amounting to Rs. 6,000 were collected on
10th April, 2019.
b) Out of cheques amounting to Rs. 15,000 drawn on 26th March,
2019 cheques of Rs. 10,000 only were encashed.
c) A cheque of Rs. 2,500 credited in the pass book on March 28th,
2019 was dishonoured and is debited again in the pass book on 3rd
April, 2019. There was no entry in the cash book about the
dishonour of the cheque until 15th April, 2019.
d) As per standing instructions bank has transferred Rs.1,200 from his
fixed deposit account to this current account on 27th March, 2019
but this information could be received only on 5th April, 2017.
e) A cheque of Rs.12,000 drawn on his saving deposit account has
been shown as drawn on current account in cash book.
Prepare a bank reconciliation statement as at 31st March, 2019 if the Debit balance
as per Cash book on the same day was Rs.26,000.

6
21. On July 1 2019, Amol draws a bill on Rekha for Rs. 10,000 payable after three months
for goods sold of the same amount. Amol gets the bill discounted with her bank on
August 4, 2019 at a discount of 12% p.a. On due date the bill was dishonoured and
noting charges was paid Rs. 500. Rekha paid Rs. 2,500 in cash and requested to
draw another bill on him for the balance amount for 2 months with interest @ 12% p.a.
which Amol did. On due date Rekha became insolvent and his estate paid 40% as first
and final instalment. Give Journal entries in the books of Amol. 6
22 Vashisht Bros purchased two Machines from Haryana Manufacturers for Rs.2,50,000
each on 1st July,2016. Installation charges and carriage on both machines amounted
to Rs.1,00,000 in total. Another Machine was purchased on 31st Dec.2017 for
Rs.2,00,000. On 1st July,2018 one Machine, purchased on 1st July,2016, become
obsolete and was disposed off for Rs.55,000 and Rs.5,000 was paid as commission to
middleman. On 1st Jan, 2019, half of the Machine purchased on 31st Dec.2017 was
sold off for Rs.30,000. Prepare Machinery Account for three years, if depreciation is to
be charged annually @10% p.a by S.L.M and books are closed on 31 st March every
year.
Or
Following are the Balances in the books of Kaushik Equipments as on 01 April, 2018.
Machinery Account Rs.20,00,000
Provision for Depreciation Account Rs.4,50,000
On 01 July,2018 a part of Machinery which was purchased on 01 October,2016 for
Rs.4,00,000 was disposed off for Rs.1,70,000. On the same date another Machine
was purchased for Rs.10,00,000. Depreciation is to be charged @10% p.a by Fixed
Instalment System.
Prepare Machinery Account and Accumulated Depreciation Account for the year
2018-19. 8
23 From the following Trial Balance as on 31st March, 2019, you are required to prepare
Trading and Profit and Loss Account and Balance Sheet.

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

Sales 50,000
Purchase 24,000
Cash in hand 4,000
Interest 800
Carriage 800
Building 12,000
Stock (1.4.18) 6,000
Debtors 8,200
Reserve 5,000
Returns 2,000 1,000
Creditors 6,500
Wages 1,200
Discount 300
Capital 30,000
5% Investment 20,000
Bank Overdraft 15,000
Travelling expenses 2,800
Salaries 5,000
Bad debts 1,000
Rent 5,000
Furniture 6,600
Leasehold Premises 10,000
Total 1,08,600 1,08,600
Additional Information;
 (i) Stock in hand valued on 31st March,2019 was Rs.10,000.
(ii) Depreciate Furniture by Rs.1,000 and Building by 15%.
(iii) Rent is paid for 10 months.
(iv) Provide for Manager’s Commission @ 10%, on net profits after charging
such commission.
OR
Following are the balances taken from Trial Balance of Komal Enterprises on 31st
March,2019:

Debit balances (Rs.) Debit balances (Rs.)

Drawings 3,000 Rates, taxes & insurance 2,800
Debtors 20,100 Advertising 3,200
Interest on loan 300 General expenses 3,400
Cash in hand 2,000 Bills receivable 6,800
Stock(01-04-2018) 6,800 Credit balances (Rs.)
Motor vehicles 10,000 Capital 28,000
Cash at bank 3,500 Creditors 10,400
Land and building 12,000 Loan 10,000
Bad debts 500 Sales 1,00,200
Purchases 66,000 Purchases return 800
Sales returns 7,800 Discounts 500
Carriage outwards 2,400 Bills payable 2,600
Carriage inwards 3,000 Rent received 900
Salaries 9,000 Bank Overdraft 9,200

Prepare the Trading and Profit and Loss A/c for the year ended 31st March 2019 and
Balance Sheet as on that date after making adjustment for the following matters:
(i) Depreciate Land and Building at 5% and Motor vehicles at 20%.
(ii) Interest on loan at 6% p.a. is unpaid for six months.
(iii) Salaries amounting to Rs.1,000 were due at the end of the year.
(iv) Prepaid insurance amounted to Rs.300.
(v) Stock in hand on 31st March 2019 was valued at Rs.6,000.
8
Part-B
Fill in the blanks with appropriate words:
24 Bill of exchange signs by ________________. 1
25 Preparation of a trial balance helps in locating ____________________. 1

State whether the following statements are True or False:

26 A trader bought goods of Rs. 50,000. He sold the goods for Rs. 80,000 incurring 1
expenses of Rs. 12,000 (including carriage outwards of Rs. 1,000). His gross profit is
Rs. 19,000.
27 Retirement of Bill of Exchange means cancellation of bill. 1
Select the correct choice to answer the following questions:
28 Opening Stock Rs. 1,00,000; Closing Stock Rs. 60,000; Purchases Rs. 50,000 and 1
Gross Profit is 10% of sales. The gross profit is:
(a) Rs. 10,000
(b) Rs. 12,000
(c) Rs. 20,000
(d) Rs. 15,000
29 How many days of grace period is given payment of bill of exchange? 1
(a) 7 (Seven)
(b) 2 (Two)
(c) 3 (Three)
(d) 4 (Four)
30. From the following information, prepare Sundry Debtors Account and find out the
closing balance of Debtors
Opening Balance of Sundry Debtors Rs.25,000
Total Sales for the year Rs.1,35,000
Cash Sales for the year Rs.15,000
Returns Inwards Rs.5,000
Discount allowed Rs.4,000
New Bills Accepted by Debtors Rs.16,000
Cash received from Debtors Rs.85,000
Bad Debts Rs.5,000 4
31. Explain any four uses of Computers in Accounting. 4
32. (a) Name any two popular Accounting softwares available in the market.
(b) “Management Information system is a part of Accounting Information System.” Do
you agree? Give reasons in support of your answer.
(c) Differentiate between Readymade software and Tailor made softwares. (1+2+3) 6