SATISH ACCOUNTS CLASSES

C-4E MARKET JANAK PURI, NEW DELHI-110059

9650588059, 9811368059
CLASS XI
Annual Examination 2023-24
DATED 04.02.2024
Subject : Accountancy (055)
Time Allowed: 3 Hours Maximum Marks : 80
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 Part B.
3. Question 1 to 16 and 27 to 30 carries 1 mark each.
4. Questions 17 to 20 and 31 & 32 carries 3 marks each.
5. Questions from 21,22 and 33 carries 4 marks each.
6. Questions from 23 to 26 and 34 carries 6 marks each.
7. There is no overall choice..

PART - A FINANCIAL ACCOUNTING-1

1. Which qualitative characteristics of accounting information is reflected when

accounting information is clearly presented?
(a) Relevance (b) Comparability
(c) Reliability (d) Understandability 1
2. GST is a consumption of goods and services tax based on :
(a) Development (b) Dividend
(c) Destiny (d) Destination 1
3. Due to which accounting principle, contingent liabilities are shown in the balance
sheet?
(a) Dual aspect principle (b) Principle of Full disclosure
(c) Principle of Materiality (d) Going concern Principle 1
4. Book Keeping is a wider concept than accounting.
(a) True (b) False
(c) Partially true (d) Partially false 1
5. Shivani paid school fees of her daughter by issuing a cheque from the bank account of
his business. According to Mr. Ram, the accountant, such payment should be treated as
an expense of the business. Identify the accounting principle involved here.
(a) Business entity (b) Historical cost
(c) Prudence (d) Money measurement 1
6. Which of the following is not a limitation of accounting?
(a) Window Dressing.
(b) It ignores the effect of price level changes.
(c) It ignores qualitative elements
(d) Can be used as Evidence in Court

7. ASSERTION-REASONING BASED QUESTIONS

Given below are two statements, one is Assertion (A) and the other is Reason (R).
Assertion (A): - Trade Discount is not recorded in the books of accounts, even if goods
are purchased in cash.
Reason (R): - Trade Discount is allowed for timely payment of due amount.
In the context of the above two statements, which of the following is correct:
(A) Both (A) and (R) both are correct and (R) correctly explains (A).
(B) Both (A) and (R) are correct but (R) does not explain (A).
(C) Both (A) and (R) are incorrect.
(D) (A) is correct but (R) is incorrect.
8. On 30th June 2021, M/s Krishna traders sold half of the machinery for ₹ 10,000 which
was purchased on 1st July 2018 for ₹ 40,000. Depreciation was charged @ 10% p.a. on
straight line method.
Find the amount of profit or loss on sale of machinery if books are closed on 31 st
March every year.
(a) Loss ₹ 4,000 (b) Profit ₹ 5,000
(c) Loss ₹ 4,800 (d) Profit ₹ 4,200

9. Credit Purchase of Assets will be recorded in :

A) Purchase Return Book (B) Purchase Book
(C) Journal Proper (D) None of these 1
10. A sells goods to B, costing ₹ 1,00,000 at a profit of 10% above cost, less 10% trade
discount and a further 5% cash discount if paid within 15 days.
Which of the following Journal entry would correctly record the sale in the books of A
if B makes the payment within 15 days?
(A) Dr. A and Cr. Sales A/c by ₹ 99,000
(B) Dr. B and Cr. Sales A/c by ₹ 99,000
(C) Dr. B and Cr. Sales A/c by ₹ 90,000
(D) Dr. Cash A/c 94,050, Discount allowed A/c by ₹4,950; Cr. Sales A/c by
₹ 99,000
11. Which of the following is correct distinction between a Revenue reserve and a Capital
reserve?
(a) A revenue reserve is created out of capital profits whereas a capital reserve is
created out of business profits.
(b) A revenue reserve can be used for distribution of dividend with certain
preconditions whereas a capital reserve can be used for distribution of dividend
without any preconditions.
 (c) A revenue reserve is created for strengthening the financial position whereas
capital reserve is created for meeting capital losses or to be used for purposes
specified by the Companies Act.
(d) There is no distinction between revenue reserve and capital reserve.

12. If the amount of any known liability cannot be determined accurately, then :
(a) Provision should be created
(b) Definite liability should be created
(c) Reserve should be created
(d) Should be shown as a contingent liability
13. Mr. Sunil started his business of home furnishings in Bhopal. He bought 100 units of
bed cover @ ₹ 150 each for cash from Sukhmani Traders Delhi. GST Rate is 18%. He
sold 50 units a ₹ 200 each in Cash to Satwani Traders, Haryana.
At the time of Purchase, which of the following GST will be charged?
(a) Input CGST & SGST (b) Output CGST & SGST
(c) Output IGST (d) Input IGST
14. The following expenses were incurred by petty cashier during the month of August
2021:
Postage ₹1,400; Conveyance ₹ 550 ; Telephone expenses ₹1,800. Imprest amount is ₹
8,000. What will be the amount reimbursed?
(a) ₹ 3,750 (b) ₹ 8,000
(c) ₹ 3,400 (d) ₹ 4,250
15. Mohan (Debtor) from whom an amount was due was declared insolvent and paid only
60 paise in a rupee. Total bad debts from him were written off
₹ 7,200. What was the amount actually due from Mohan?
(a) ₹ 24,000 (b) ₹ 18,000
(c) ₹ 12,000 (d) ₹ 16,500
16. Which of the following correctly distinguishes between a ledger and a journal?
(a) The journal is the book of original entry; the ledger is the book of final entry.
 (b) The journal is the book for chronological record; the ledger is the book for
analytical record.
(c) The journal, as a book of source entry, gets greater importance as legal evidence
than the ledger.
(d) All of the above

17. Prepare Accounting Equation from the following :

(a) Started business with Cash Rs.2,00,000.
(b) Purchased goods for Cash Rs.60,000 and on Credit Rs.1,50,000.
(c) Sold goods for Cash costing Rs.40,000 at a profit of 20% and on Credit costing
Rs.72,000 at a profit of 25%. ( 3)
18. Enter the following transactions in the Journal of Jetha Bros :
2023
May 10 Sold goods to Babita of the list price of Rs. 1,00,000 at trade discount of 15%.
May 13 Babita returned goods of the list price of Rs.4,000.
May 18 Received from Babita the amount due from him, under a cash discount of 5%.
3
19. Record the following transactions in the Sales Book of Ganesh & Co. ,- who deal in
Furniture. :—

2023

June 4 Sold to Gupta Furniture House,;—-

120 Chairs @ Rs.2,500 per Chair-
25 Tables @ Rs.8,000 per Table
Less : 5%

8 Sold to Raja Furniture House,:—

8 Almirahs @ Rs. 15,000 each
9 Steel Cabinets @ Rs.20,000 each Less :
Trade discount of 10%

12 Sold old Computer for Rs. 1,500 to Mohan & Co. on Credit.
 20 Sold 4 Sofa sets @ Rs.25,000 each to Vanin & Co. for cash

28 Purchased from Ram Lai & Co. on credit:—

50 chairs @ Rs.2,000 each

20.. The following trial balance has been prepared by an inexperienced accountant. Redraft
it in a correct form :—-

Name of Accounts Balance Balance

Dr. Cr.

Rs. Rs.

Land and Building ...................................... 1,20,000

Plant and Machinery ................................... 92,000

Wages ......................................................... 18,200

Discount Allowed ....................................... 1,620

Discount Received ...................................... 730

Purchases ................................................... 1,26,000

Sales ............................................................ 2,40,000

Return Inwards ........................................... 6,500

Return Outwards ......................................... 3,370

Opening Stock ............................................ 15,000

Debtors ....................................................... 30,000

Creditors ..................................................... 20,000

Carriage on Sales ........................................ 3,280

Carriage on Purchase .................................. 2,800

Insurance .................................................... 1,500

General Expenses........................................ 6,100

Cash in Hand .............................................. 2,400

Bank Overdraft .......................................... 12,100

Capital ......................................................... 1,54,000

Drawings .................................................... 4,800

Total 4,30,200 4,30,200

3
21 Enter the following transactions in two-column cash book with cash and bank column
of Hira Lal :

Rs.

2023

January 1 Cash in hand 70,000

Bank overdraft 50,000

January 5 Cash deposited into bank 15,000

January 6 Purchased goods from Meena 20,000

January 7 Cheque issued to Meena in full settlement 19,800

January 12 Sold goods to Ajay and cheque received from him 25,000

January 28 Paid Sunita’s life insurance premium by cheque 15,000

January 30 Deposited into bank the entire balance after retaining Rs.5,000 cash
in business.
 22..Fill in the missing information in the following journal entries :
JOURNAL

S: No. . Particulars L. Amount Amount

F. Dr. Cr.

Rs. Rs.

(i) Dr.

To —
(Goods costing Rs. 10,000 sale price Rs. 12,000
withdrawn for personal use)

(ii) Dr.
—
To
(Interest payable on Mrs. Kusum’s Loan of Rs.2,00,000
@15% p.a. for one month)

(iii) 300

To 300

(Interest due but not received)

(iv)

(Paid rent by cheque Rs.30,000. One third of the premises .

is occupied by the proprietor for his residence)
 .

–––

23. Prepare a Bank Reconciliation Statement from the following particulars as on 31st March
2023 :
(i) Cheques were deposited into bank on 25th March for Rs.20,000. Out of these cheques for
Rs.8,000 were cleared on 4th April, cheques for Rs.6,000 on 6th April and one cheque for
Rs. 1,400 was dishonoured on 7th April.
(ii) Cheques amounting to Rs. 12,000 were issued in March, out of which cheques for
Rs.2,000 were encashed upto 31st March.
(iii) A bill for Rs.5,000 (discounted with the bank in January) dishonoured on 30th March
2023 and noting charges paid by bank Rs.50. No information regarding the dishonour was
received from the bank in March 2023.
(iv) Cheque issued to a creditor for Rs.2,000 was through mistake entered in the cash column
of the Cash Book. The same has not been presented for payment till today.
(v) Receipt side of the Cash Book (bank column) was undercast by Rs. 100.
(vi) Bank has paid a bill payable amounting to Rs.2,500 but it has not been entered in the
Cash Book.
(vi) A cheque for Rs.2,000 issued to Mr. A was omitted to be recorded in Cash Book.
(vii) Dr. balance as per Pass Book was Rs.7,200. (6)

24. Pass the necessary journal entries to rectify the following errors :
(a) Sales Return book overcast ₹ 1,000.
(b) Machinery purchased ₹9,600 from Kunal, wrongly entered in Purchase Book as
₹ 6,900 .
(c) Goods purchased from Rahul ₹ 5,000 wrongly entered in purchase return book.
Although, Rahul's account correctly credited.
(d) Rent paid to Landlord ₹ 12,000 , wrongly debited to his personal account.
(e) ₹ 3,000 received from a customer, whose account was already written off as bad
debt. No entry has been passed in this regard.
(f) Credit purchases from Shyam for ₹ 1,700 were recorded in the Sales Book.
However, Shyam’s account was correctly credited (6)
25. A limited company purchased on 01-04-2019 a plant for Rs. 3 8,000 and spent Rs.2,000
for carriage and brokerage. On 01-07-2020 it purchased additional plant costing Rs.20,000.
On 01-08-2020 the plant purchased on 01-04-2019 was sold for Rs.25,000. On the same date,
the plant purchased on 01-07-2020 was sold at a profit of Rs.2,800. Depreciation is provided
@12% per annum on diminishing balance method every year. Accounts are closed on 31st
December every year. Show the plant A/c for 3 years. (6)
OR
The following balances appear in the books of M/s Leela :
Rs.
1st April, 2018 Machinery A/c 60,000
Provision for depreciation A/c 36,000
On 1st April, 2018, they decided to dispose off a machinery for Rs.8,400 which was purchased
on 1st April, 2014 for Rs. 16,000.
You are required to prepare Machinery A/c, Provision for Depreciation A/c and Machinery
Disposal A/c for 2018-19. Depreciation was charged at 10% p.a. on original cost method.(6)
26. Shruti maintains her books of accounts from Incomplete Records. Her books provide the
following information :
 Particulars 1-4-2020(₹) 31-3-2021(₹)
Cash 1,200 1,600
B/R 2,400
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 months for personal expenses for last six months during the year.
She sold her Investment of ₹ 16,000 at 20% loss and introduced that amount into
business. Prepare Statement of Profit or Loss for the year ending March 31, 2021.(6)

PART - B FINANCIAL ACCOUNTING-II

27.Calculate the missing values in the following cases
Cost of goods sold – ?, Gross profit 25% of cost of goods sold,
Sales – ₹ 5,00,000
28. Opening Stock Rs. 8,500
Purchases Rs.30,700
Wages Rs. 4,800
Interest on Loan Rs. 2,800
Closing Stock Rs. 9,000
Carriage outward Rs. 1,000
Cost of goods sold will be .............
(A) Rs.30,000 (B) Rs.32,000
(C) Rs.35,000 (D) Rs.40,000
29. Net Profit before commission 2,20,000. Manager are entitled to get commission 10% net
profit after charging commission. Manager commission will be :
(A) Rs. 21,000 (B)Rs. 22,000 (C) Rs. 20,000 (D) None of these
30. Cost of Goods Sold Rs. 1,50,000; Closing Stock Rs.40,000; Opening Stock Rs.60,000;
Amount of purchase will be
(A) Rs. 1,30,000 (B) Rs. 1,70,000
(C) Rs.50,000 (D) None of these
31. The following amounts are taken from the Trial Balance of Chopra Bros:
TRIAL BALANCE AS AT 31-03-2021
Heads of Accounts L.F. Debit (₹) Credit (₹)
Sundry Debtors 1,00,000
Provision for d/d 8,000
Bad Debts 2,500

Adjustments: Provide for doubtful debts @ 5% on Sundry Debtors. Show the relevent
extract of the Profit and Loss Account and the Balance Sheet. (3)

32 From the following figures calculate operating profit:

Particular ₹
Net Profit 1,00,000
Gain on sale of machine 15,000
Donation 2,000
Rent Received 10,000
Interest on loan 20,000
Salary 5,000

(3)

33.State with reasons whether the following are Capital or Revenue expenditures :—
(a) An old plant costing Rs. 1,00,000 was purchased; Rs.2,000 were paid on its carriage;
Rs.3,000 were spent on its repairs and Rs.4,000 were paid to an engineer who had
supervised its installation.
(b) Rs.2,00,000 spent for repainting the factory building.
(c) Legal expenses incurred on purchase of Land.
(d) Rs. 10,000 were spent on lawyer’s fees to defend a suit claiming that the firm’s factory
site belonged to the plaintiff. (4)

34. The following are the balances of M/s Ganesh Bros, as on 30th June, 2022 :
 Dr. Balances ₹ Cr. Balances ₹

Cash in hand 540 Sales 98,780

Goodwill 2,630 Returns Outwards 500

Purchases 40,675 Capital 62,000

Returns Inwards 680 Sundry Creditors 6,300

Wages 8,480 Rent 9,000

Fuel and Power 4,730 Outstanding Salaries 600

Carriage on Sales 3,200

Carriage on Purchases 2,040

Stock (-1-07-2021) 5,760

Building 27,000

Freehold Land 10,000

Machinery 20,000

Patents 7,500

Salaries 15,000

Legal Fees 600

General Expenses 8,000

Insurance (expires on 31.12.2022) 600

Drawings 5,245

Sundry Debtors 14,500

1,77,180 1,77,180

Prepare Trading and Profit & Loss Account for the year ended 30th June 2022 after taking
into account the following adjustments :
(a) Stock on hand as on 30th June 2022 is ₹8,200.
(b) General Expenses include ₹5,000 for purchase of machinery on 01.01.2022.
(c) Machinery is to be depreciated at 10% and patents at 20%.
(d) Further bad debts are ₹500. Create a provision for doubtful debts on debtors at 10%.
(e) Rent receivable ₹ 1,200. Wages unpaid ₹ 1,800 (6)