- SINDHI HIGH SCHOOL, HEBBAL

Preparatory Examination (2023-24]

1tg' j's~ 31 "I
Subject: Accountancy (055)
Class: XI Max Marks: 80 Pi
Date: 10.01.2024 Reading Time: 8:30 • 8:45 am
No. of Sides: 06 Writing Time: 8:45 - 11 :45 am
• General Instructions:
a) This question paper contains J4 questions. All questions are compulsory.
b) This question paper is divided Into two parts: Part A & B.
c) Part -A: Financial Statement -I.
Part - B: Financial Statement -11
d) Question Nos. 1 to 15 & 25 to 29 carries J mark each.
e) Questions Nos. 16 to 18, 30 - 32 carries 3 marks each.
/) Questions Nos. from 19, 20 & 33 carries 4 marks each.
g) Questions Nos.from 21 to 24 & 34 carries 6 marks each.
h) There is no overall choice. However, an internal choice has been provided in 7 questions ofone mar~
2 questions ofthree marks, 1 question offour marks & 2 questions ofsix marks.
I
I

PART A
(Financial Statement • I)
(l)
1. Which of the following is an advantage of accounting?
(A) Maintaining records (B) Presenting financial position
(C) Estimating profit or loss (D) All of the Above

Assertion: The accountant measures only those events that are financial in nature. (l)
2.
Reasoning: Non-monetary items or events, however, significant they may be, are not measured or
recorded in accounting.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) A is incorrect, but R is correct.

3. Internal users are the_ _ _ _ of the business entity.

(A) Management (B) Employees (C) Both (A) and (B) (D) None of the these
• OR (1)
for
Deepti wants to buy a building to start her business today. Which of the following is the relevant data
her decision:
(A) Similar business acquired the required building in 2000 for tl0,00,000
(B) Building cost details of 2003
(C) Building cost details of 1998
(D) Similar building cost in August, 2005 ~25,00,000

4. Arun receives an advance from a customer, which is not taken as income or sales by him. Which
accounting assumption is being violated by him.
(A) Accrual (B) Cash (C) Cost ·co) Expense
OR (1)
Pick the odd one out:
(A) Money Measurement Concept (B) Business Entity Concept
(C) Accounting Period Concept (D) Balance Sheet

5. According to _ _ _ _ _ _ concept assets purchased are recorded at the price it is acquired in

(1)
the Books of Accounts.
(A) Matching Concept (B) Cost Concept
(C) Going Concern Concept (D) Dual Aspect Concept

6. _ _ _ _ _ _ issues accounting standards in India.

(A) ICAI (B) ICWAI (C) ICS (D) UPSC
OR (1)
"A and Bare starting a business. A is of the view that all facts, which influence the decision of users
should be shown in financial statements." A is following which accounting principle?
(A) Full disclosure concept (B) Dual Aspect Concept
(C) Matching Cost Concept (D) Accounting Period Concept
Page 1
7. Assertion: Cash Book is both a subsidiary book well as a principal book.
Reasoning: Cash balance is directly entered in the tnal bal9:'1c
fr m Cash Book.
e f
(A) Both A and R arc correct, and R is the correct explanation 0
. • .
(B) Both A and R arc correct, but R is not the correct explan
ation of A.
(C) A is correct, but R is incorrect.
(D) A is incorrect, but R is correct.

8. Which of the following is a written e~idence of a transaction

that has taken plac~~) Transfer voucher
(A) Cash voucher (B) Invoice (C) Voucher (1)
OR
Consider the following statements with respect to d'
the rules of Debit and Cre tt:
(i) Debit what comes in, Credit what goes out.
(ii) Debit the receiver, Credit the giver.
(iii) Debit all incomes, Credit all expenses.

Identify the correct statement/statements:

(A) (i) and (ii) (B) (i) only (C) (ii) and (iii) (D) (i), (ii) and (iii)

9. Business transaction is of
A) Economic
- - - - - nature.
(B) Monetary
(1)
(C) Financial (D) All of these
10. Which of the following is not a business transaction:
(A) Buying of Furniture (1)
(B) Paying salaries of the accountant
(C) Giving a motivation speech to the employee
(D) Buying a good for personal use from the office money

11. Ritu paid ,1s,ooo as rent to his landlord John, Write

down the Journal Entry. (1)
12. Pick the odd one out:
(A) Ledger (1)
(B) Purchase Book
(C) Sales Ale (D) Purchase Return Book
13. What is the slip called which is filled when depositing
a cheque or cash in bank account? (1)
14. While preparing the trial balance it was found that the accoun
tant of Suma Sarees had overcast the
Sales Returns Book b ,8,000. What ·oumal en needs to be
assed for rectif in the error? (1)
(a) Sales Retw}ls Ale Dr. 8,000
To Suspense Ale 8,000
ein sales returns book overcast b ,8,000
(b) Suspense Ale Dr. 8,000
To Sales Returns Ale 8,000
Bein sales returns book overcast b ,8,000 •
Sales Ale Dr. 8,000
(c) To Sales Returns Ale 8,000
Bein sales returns book overcast b ~8,000
Sales Returns Ale Dr. 8,000
(d) To Sales Ale 8,000
Bein sales returns book overcast b ~8,000

15. Which of the following transactions will not become

a part of Bank Reconciliation Statement:
(A) Direct deposit by Ram in bank ,10,000
(B) Bank Charges ,35
(C) Goods sold to Shyain on credit ~5,00,000
(D) Cheques deposited but dishonoured.
OR
Amounts that are created against profit to meet a known liabilit (1)
y:
(A) Reserves (B) Provisions (C) Both [A] & [B] (D) None of these
16. Explain the following tenns with an exainple: .
(a) Liabilities (3)
(b) Revenue (c) Gam
Page2
 . Oetennine the missing amount:
riAA:;ss:;et;:-si'i,~riL;--;ia:i:b:--:iil::-:iti:-es-;=:,:-r-:C:-a--:-i-ta-1-,-
20 000 15,000 ?
? 5,000 I0,000
I0,000 ? S,000
(3)
Classify the following into Real, Personal & ~!ninal Ne:
a) Purchases b) Capital c) Trade Debtors
d) Drawings e) Discount Received f) Buildings
18• From the following particulars, Prepare Bank Reconciliation Statement showing the balance as per
(J)
c~h book as on 31st December, 2015. Overdraft as per Pass Book was {25,000.
(t) ~ e cheques of ,2,000, ,3,000 & ,s,ooo were paid into bank in November , 2015 but were not
credited by the bank in December.
(ii) A Cheque of ,1,soo which was received from a customer was entered in the Cash Book but
was
omitted to be banked.
(iii) Cheques for ,20,000 was issued in November 2015 but not debited in bank till 3 pt Dec 2015.
(iv) Interest on Investment collected by bank ,soo appeared only in Pass Book.
(4)
19. Journalize the following transactions:
i) Bought goods from Akash of ,10,000 (@ 10% trade discount and 5% cash discount, 50% payment
made cheque.
(ii) Paid landlord ,3,000 for rent. One-third of the premises is occupied by the proprietor for his
own
residence.
(iii) Payment made to creditors in full settlement ~27,000.
(iv) Goods stolen by employee of ~1,000 (Sales price tl,200).

20. On pt January, 2009, a finn purchased machinery worth t50,000. On 15 July, 2011, it buys additional
1
st
machinery worth t 10,000 and spends t 1,000 on its erection. The accounts are closed each year on 31
December. Assuming th~t the annual depreciation is 10%p.a., show the machinery account for 4 years
(4)
under the straight-line method.
he
21. Trial Balance of Rahul did not agree. Rahul put the difference to Suspense Account. Subsequently,
located the following errors:
(i) Wages paid for installation of Machinery ~600 was posted to Wages Ne.
(ii) Repairs to Machinery t400 debited to Machinery Ne.
(iii) Repairs paid for the overhauling of second-hand machinery purchased tl,000 was debited to Repairs
Ale.
(iv) Own business material t8;000 and wages t2,000 were used for construction of building. No
adjustment was made in the books. •
(v) Furniture purchased for t5,000 was posted to Purchases Ne as t500.
Rectify the above errors and prepare Suspense Account to ascertain the original difference in Trial
Balance.
OR (6)
Rectify the follo~ng errors assuming tha_t a suspense account1 was openqd. Ascertain the d~fference in
trial balance. -<1 Ju ~0/•'1}~::: ,' -,{'11:,f '· ' ,t , '!)~~,\ tJ) CitQ.d.l~~'°"lc_,
1 ->-''c.ll)_\- •
(ii) Credit purchases from Rohan t9,000 were posted to the credit of his account as t6,000.
(iii) Good returned to Rakesh t4,000 were posted to the credit of his account.
(iv) Goods returned from Mahesh t 1,000 were posted to the debit of his account as ~2,000.
{v) Cash sales 2,000 were posted to the debit of Sales account as t5,000.

22. From the following transactions, prepare Cash Book with Cash and Bank columns:
Feb 1 Cash-in-hand t7,500, Cash-at-bank t8,000
Feb 3 Bought goods for t2,000 and paid by cheque.
Feb 5 Sold goods tS,880 and the amount deposited into the bank on the same day.
Feb 15 Paid Trade expenses tl20
Feb 16 Drew from Bank for office use t 1,000
Feb 17 Sold goods for ,12,soo & received a cheque.
Feb 25 Paid Insurance tl00
Feb 27 Cheque received on 17th Feb deposited in Bank
Feb 28 Received a cheque from John t6,000 and deposited into bank on the same day.
Feb 28 Purchased Investment t9SO by cheque.
Page 3
 OR
The rough books of M/s Narain & Co. contains the following:
2019
Feb 1 Purchased from Mis Brown & Co on credit:
Sgross pcnclls @ , 100 per gross; .
1 gross registers @ t200 per dozen Less: Trade Discount 100¼
Feb 1 Purchased for cash from the stationery mart:
10 gross exercise book ,60 per dozen.
Feb.3 Purchased typewriter for office use from Mis Office Goods Co, .
Feb.4 on credit for f 800
Purchased on credit from the Paper Co:
5 Reams of white paper , 100 per ream,
10 reams of ruled paper ,6s per ream.
Feb. 5 Purchased one dozen ink-posts@ tlO each from Mis Venna
Prepare the purchases book of Mis Narain & Co. Bros. on credit.

23. Enter the followin transacttons in

the Journal of Manu: (6)
Year 201S Particulars t
Jan.01 Commenced business with cash 1,75,000
Building 1,00,000
Jan.02 Goods purchased for Cash 75,000
Jan.03 Sold goods to Ramesh 30,000
Jan.04 Paid wages 500
Jan.06 Sold goods for cash 10,000
Jan. 10 Paid for Trade Expenses 700
Jan. 12 Cash Received from Ramesh 29,500
Discount Allowed 500
Jan. 14 Goods purchased from Sudhir 27,000
Jan. 18 Cartage paid 1,000
Ja.1.20 Drew cash for personal use 5,000
Jan.22 Goods used for house hold 2,000
Jan.25 Cash paid to Sudhir 26,700
Discount received 300
24. On pt August, 2012, Gati Ltd. purchased a machinery for
~3,00,000. On pt November, 2013 another
machinery was purchased for n,80,000. On pt July, 2014 the
machine which was purchased on pt
August, 2012 was sold for ~l,68,000 and on the same date a fresh
machinery was purchased for
~2,00,000. Depreciation was provided@ 10% pa. on the reducin
g balance method. Books are closed on
31st March every year. Prepare Machinery Account and Provis
ion for Depreciation Account for three
years ending 31st March, 2015. , ( G)
Part- B
(Financial Accounting - II)
25. Which of the following is the use of financial statem
ents for the creditors of the company:
(A) Ascertain the firm's ability to repay its debt in a short period
of time.
(B) Ascertain future prospects of the firm.
(C) Ascertain performance of the firm in terms of profit and financi
al position.
(D) All of the above
'
OR (1)
A newly appointed accountant is confused as to which expens
es should be treated as deferred revenue
expenditure. Help him by giving him an example of deferred
revenue expenditure.
(A) Research and development expenditure
(B) Expenses related to issue of shares and debentures
(C) Preliminary expenses
(D) All of the these
26. Which of the following expenses is shown on the Assets (1)
side of Balance sheet?
(A) Prepaid expenses
(B) Outstanding expenses
(C) Both (A) & (B)
(D) None of the these
~age 4
 I

arithmetical accuracy of the books of accounts

27, Statement I: A Trial Balance is prepared to verify the
ial position of a company on a particular
Statement II: Balance Sheet is prepared to present the financ
date.
(A) Both Statements are correct.
(8) Both Statements are incorrect.
(C) Statement I is correct and Statement II is incorrect.
(D) Statement I is incorrect and Statement II is correc
t.
(1)
OR
is t2 l ,000. If a manager is entitledthto S%
Net Profit of a firm before charging manager's commission
, what is the commission payable to e
commission on net profit after charging such commission
manager?
(A) ,1,oso
(8) ,1,000
(C) ,950
(D) None of the these
rd
Mr. Y is planning to start a new business. He wants to know the limitations of incomplete reco s. (l)
28.
Which of the following is the limitation of the same? . d
(A) Trail Balance cannot be prepared. of financial result of business operations cannot be ma_ e.
(B) Correct ascertainment and evaluation
about the reliability of the computed mcome.
(C) It becomes difficult to convince income tax authorities
(D) All of the above.
l intr~d~ced during the period t 1O,OOOiclosing
29. _If opening capital is t60,000, drawings tS,?00; capita_ ()
will be:
capital t90,000. The value of profit earned durmg the period
(A) t20,000
(B) t25,000
(C) t30,000
(D) t40,000

30. Following information is given of an accounting year:

Opening creditors tl5,000;
cash paid to creditors tlS,000;
Returns outward ti 1,000;
closing creditors n2,ooo;
Calculate credit purchase during the year.
(3)
OR
14 was tl 7,00,000. Its non-operating
Operating profit earned by Mis Arora and Sachdeva in 2013-
t3,75,000. Calculate the amount of net profit
incomes were tl,50,000 and non-operating expenses were
earned by the firm.
ss. He provided following information. You are
31. Mr. KapiJ does not keep proper records of his busine (3)
loss for the ear 2013-14.
required to prepare a statement showin the rofit or t
Particulars
Opening Capita l (01-04 -2013 ) 50,000
Closing Capital (31-03-2014) 1,00,000
Additional capital introduced (2013-14) 20,000
Drawin s made durin the ear 2013- 14 40,000

has his capital on 31st March, 2016 ,20,000 and

32. Ravi, who keeps his books on Single Entry System,
during the year, he withdrew for his personal
on l st April, 2015 was t 16,700. He further informs that
oftl0 ,000 at 5% premiwn and brought that money
expenses t9,400. He also sold his personal investment (3)
into the business. Prepare a Statement of Profit or Loss.

Page 5
 --
33, Shyamlal keeps his book under s·m 1e Entrv s,ystem. H'lS assets and liabilities were as under:
Particulars 31st March, 2014 (') 31st March, 2015 (')
Cash-in-hand 30,000 10,800
Sundry Debtors 60,000 80,000
Stock 29,000 60,000
Furniture 40,000 40,000
Sundry Creditors 80,000 80,000
Bank Balance 90,000 70,000
During 2014-15, he introduced ,40,000 as new capital. He withdr
ew ,20,000 for his . household expens
Ascertain his profit for the year ended 31st March, 2015. es•

OR (4)
From the following information relating to the business of Mr. X,
who keeps books by single entry,
ascertain the profit or loss of the ear 2013:
Particulars 1st Janu , 2013 t 31st March, 2013 t
Machinery 16,000 16,000
Furniture 4,000 4,000
Stock 14,000 10,000
Sundry Debtors 8,000 9,000
Bank Balance 400 3,600
Sund Creditors 10,000 7,000
Mr. X withdraw ~4,100 during the year to meet his household expens
es. He introduced ~600 as fresh
Capital. Machinery and furniture to be depreciated by 10% and 5%
per annum respectively.
34. The following is the Trial Balance of Mr. S. Kapur on 31st March
, 2014: (6)
Particulars Debit (t) Credit(')
Cash-in-hand 1,080
Cash at bank 5,260
Purchases/Sales 81,350 1,97,560
Returns 1,360 1,000
Wages. 20,960
Fuel and Power 9,460
Carriage on Sales 6,400
Carriage on Purchases 4,080
Stock (1.4.2013) 11,520.
Building 60,000
Freehold land 20,000
Machinery 40,000
Salaries 30,000
Patents 15,000
General Expenses 6,000
Insurance 1,200
Drawing/Capital 10,490 1,42,000
Sundry Debtors/Creditors 29,000 12,600
. 3,53,160 3,53,160
Taking into account the following adjustments, Prepare Trading
and Profit &amp; Loss Account and the
Balance Sheet:
(i) Stock on hand on 31st March, 2014 is t 13,600. •
(ii) Machinery is to be depreciated @ 10% p.a. and patents
@ 20% p. a.
(iii) Salaries for the month of March, 2014 amount tot 3,000 were
unpaid.
(iv) Insurance includes a premium oft170 for 2014-2015.
(v) Wages include a sum of ~4,000 spent on the erection of a cycle
shed for employees and customers.
(vi) A Provision for Doubtful Debts is to be created to the extent
of 5% on Sundry Debtors.

Page 6