Work From Home sheet – CBSE XI - Accountancy Professional Coaching Centre – Bhuj

Chapter 1 – Introduction to Accounting

1. Define the term “Account” and “Accounting”.
2. State any two Limitations of Accounting.
3. How accounting information becomes authentic?
4. Give any 4 names of the external users of accounting.
5. Explain any four Objectives of Accounting.
6. Explain the following:
(a) To calculate the results of operations
(b) To ascertain the financial position
(c) To communicate the information to the users
7. State the Attributes or Characteristics of Accounting.
8. Write a short note in Qualitative Characteristics of Accounting Information.
9. Explain the users of Accounting Information.

Chapter – 2 Basic Accounting Terms

1. What do you mean by Assets?
2. State the meaning of “Expenditure”.
3. Give 2 examples of Current Assets.
4. Name any two Long – term Liabilities.
5. Source Document is evidence of transaction or an event. Recording of a transaction is based on source
documents. Give any two names of such source document.
6. Distinguish between Opening stock and Closing stock.
7. Explain the following terms:
(a) Revenue (b) Debtors (c) Fictitious Assets (d) Working Capital
8. What do you mean by Contingent liability.
9. What do you mean by Deferred Revenue Expenditure.
10. Define the following:
(a) Debtors (b) Drawings (c) Doubtful debts (d) Stock
11. Write a note on type of assets with one example of each.
12. State with reasons, whether the following expenses are capital, revenue or deferred revenue
expenditure:
(a) Expense incurred in connection with obtaining a license for starting the factory were Rs. 15,000
(b) Rs. 2,000 paid for removal of stock ta a new site
(c) Rings and Pistons of an engine were changed at a cost of Rs. 10,000 to get fuel efficiency.
(d) Rs. 4,000 spend as lawyer’s fee to defend a suit claiming that the firm’s factory site belongs to
plaintiff. The suit was won successfully.
(e) Rs. 20,000 were spent on advertising the introduction of a new product in the market, the benefit
of which will be effective during four years.
(f) A factory shed was constructed at a cost Rs. 1,50,000. A sum of Rs. 10,000 has been incurred in the
construction of temporary huts for storing building materials.
13. State with reasons whether the following statements are ‘True’ or ‘False’:
(a) Overhaul expense of second-hand machinery purchased are revenue expenditure
(b) Money spent to reduce working expenses is revenue expenditure
(c) Legal fees to acquire property is capital expenditure
(d) Amount spent for the replacement of worn-out parts of a machine is capital expenditure
(e) Expenses in connection with obtaining a license for running the cinema is capital expenditure
(f) Expenses incurred on the repairs and while washing for the first time on purchases of an old
building are revenue expenditure.

Prepared By: CMA Ketan Thakkar (B.Com., MBA (Fin.), FCMA) Mo. 9924295284
Work From Home sheet – CBSE XI - Accountancy Professional Coaching Centre – Bhuj

Chapter – 3 Theory Base of Accounting Standards

1. State the Principle for, “Do not anticipate a profit, but provide for all possible losses”.
2. According to Going Concern, a business is viewed as having____________ life.
3. Name the regulatory body for standardisation of accounting policies in the India.
4. Which principle is ignored under single entry and followed under Double entry system.
5. Define Accounting Standards. Explain their need.
6. Identify the accounting concept involved in the following cases:
(a) Books of accounts are never maintained in kilograms, litres or meters
(b) Trader entries the value invested by him in business as Capital
(c) Stock is maintained at market price whichever is lower.
7. Which three values are followed in case of Accounting Standards issued by the Institute of Chartered
Accountant of India.
8. Shri Mohan, a businessman has employed Shri Sujit who comes from tribal area of West Bengal and
has estimated his value at Rs. 11,00,000. He has accounted it is an asset in the books of accounts. Is he
correct in doing so? Give reason in support of your answer with value involved in this.
9. Explain Historical cost principle and Consistency Principle of accounting.
10. Which concept of accounting is reflected in the following cases:
(a) Business is considered distinct from its owner.
(b) Assets are recorded at their purchase price.
(c) Closing stock is valued at cost or market price whichever is less.
11. Explain the following principles. (Any two)
(a) Money measurement principle
(b) Cost concept or Historical cost principle
(c) Business entity or Accounting entity principle
12. A manager of H.R Department of Sharanya Enterprises inspected her department and found that
three of her subordinates came late in the office. She immediately took a disciplinary action on all
three of them and deducted half day’s salary.
Will this be recorded in the accounting records of Shaaranya Enterprises. Give reasons in support of
your answer.
13. Identify the accounting principles applicable to each of the following cases:
(a) Expenses are recognized when they are incurred.
(b) The capital invested by proprietor of the business is treated as the liability of the business.
(c) Stock is valued as per market price whichever is less.
(d) As per Companies Act, 2013 and the Income Tax, 1961 the financial year of a business starts in 1 st
April every year and ends on 31st March in the succeeding year.
(e) Identify the value involved in adopting the concept of Going Concern.
(f) What value is involved in classifying assets into fixed and currents assets.

Chapter 4 – Bases of Accounting

1. Give two advantages of cash basis of accounting.
2. What basis of accounting gives a correct picture of operating results and financial position of a firm?
3. Does cash basis of accounting violate GAAPs? If yes, how?
4. Draw any three differences between cash and accrual basis of accounting.
5. What is meant by Accrual bases of accounting? Give two advantages of Accrual bases of accounting?

Prepared By: CMA Ketan Thakkar (B.Com., MBA (Fin.), FCMA) Mo. 9924295284
Work From Home sheet – CBSE XI - Accountancy Professional Coaching Centre – Bhuj

Chapter 5 – Accounting Equation

1. Prepare an accounting equation from the following:
(a) Kunal started a business with cash ₹. 2,50,000
(b) He purchased furniture for cash ₹. 35,000
(c) He paid commission ₹. 2,000
(d) He purchased goods on credit ₹. 40,000
(e) He sold goods (costing ₹. 20,000) for cash ₹. 26,000
2. Prepare accounting equation from the following:
(a) Roshni started business with cash ₹. 2,00,000
(b) She paid commission ₹. 2,000
(c) She purchases goods on credit ₹. 40,00o
3. Mohit has the following transaction, prepare accounting equation:
(a) Business started with cash ₹. 1,75,000
(b) Purchased goods from Rohit ₹. 50,000
(c) Sales goods on credit to Mahesh (Costing ₹. 17,500) ₹. 20,000
(d) Purchased furniture for office use ₹. 10,000
(e) Cash paid to Rohit in full settlement ₹. 48,500
4. Present the following transaction in the form of accounting equation:
(a) Manoj started business with cash ₹. 90,000
(b) Purchased goods for ₹. 30,000 in cash and ₹. 5,000 on credit
(c) Loss of cash by theft ₹. 1,000
(d) Sold goods for cash ₹. 7,000 and on credit ₹. 10,000 on credit.
(e) Interest due but not received ₹. 1,000.
5. Prepare accounting equation from the following transaction:
(a) Commenced business with cash ₹. 50,000 and goods ₹. 30,000
(b) Goods costing ₹. 25,000 sold at profit of 20% on cost out of which ₹. 10,000 received in cash.
(c) Interest due but not received ₹. 1,000
(d) Withdrew cash ₹. 1,000 for personal use
(e) Purchased furniture on credit from Ram ₹. 50,000
(f) Received ₹. 800 for commission
(g) Payment made to creditors in full settlement ₹. 49,500.
6. Show the accounting equation of the basis of following transactions:
(a) Business started with cash Rs. 50,000 and furniture ₹. 20,000
(b) Paid rent ₹. 5,000 for the month
(c) Depreciation on furniture @10% p.a.
(d) Purchased goods for cash ₹. 25,000 on credit for ₹. 5,000
(e) Goods sold on credit (cost price of ₹. 8,000) ₹. 10,000
(f) Computer purchased from Vishwas worth ₹. 30,000 for business

Chapter 6 – Accounting Procedure – Rules of Debit and Credit

1. Give the rules of Debit and Credit and explain them with the imaginary examples.
2. Following accounts are being maintained in the books of Shri Ashok. Classify them into Personal, Real
and Nominal Accounts:
(i) Land and Building (ii) Investments (iii) Ramesh, a debtor
(iv) Excise Duty (v) Salary (vi) Interest Received
(vii) Creditors (viii) Debtors (ix) Bank Overdraft (x) Capital
3. Analyse the following transactions, state the nature of accounts and state which account will be
debited and which account will be credited:
(a) Anuj started business with cash Rs. 1,00,000
(b) Deposited cash into bank for opening an account Rs. 50,000
(c) Withdrew cash for personal use Rs. 5,000
(d) Withdrew cash from bank for office use Rs. 10,000

Prepared By: CMA Ketan Thakkar (B.Com., MBA (Fin.), FCMA) Mo. 9924295284
Work From Home sheet – CBSE XI - Accountancy Professional Coaching Centre – Bhuj

(e) Received a cheque from debtor Shyam Rs. 5,000

(f) Deposited Shyam’s cheque next day.
(g) Paid to a creditor Mahesh by cheque Rs. 10,000
(h) Paid salary to staff Rs. 20,000
(i) Paid rent by cheque Rs. 6,000
(j) Paid interest on loan Rs. 5,000
4. From the following transactions, state the nature of accounts and state which account will be debited
and which account will be credited:
(a) Mohan started business with cash Rs. 5,00,000
(b) Purchased goods for cash Rs. 1,00,000
(c) Sold goods for cash Rs. 1,50,000
(d) Received interest from Ram in cash Rs. 500
(e) Sold goods to Ashok Rs. 60,000
(f) Purchased furniture for cash Rs. 50,000
(g) Paid wages Rs. 20,000
5. Open a “T” shape account for machinery and put the following transactions on the proper side:
(a) Machinery Purchased Rs. 40,000
(b) Machinery Sold Rs. 10,000
(c) Machinery Purchased Rs. 8,000
(d) Machinery discarded Rs. 14,000
(e) Depreciation on machinery Rs. 1,000

Chapter 7 – Origin of Transaction

1. What is a Source Document?
2. What is a Voucher?
3. Define Cash Vouchers.
4. Define credit Vouchers.
5. What do you mean by transfer Voucher?
6. What do you mean by Compound Voucher?
7. Define Pay – in – slip.
8. Write a note on Debit and Credit Note.
9. Define Cheque.
10. The following transaction took place in M/s Goodluck Computers. Prepare Vouchers.
Date Transactions Amt.(Rs)
2024
Jan 1 Bought computer Mouse (4 Nos.) vide Cash Memo No.338 6,000
Jan. 8 Wages Paid for the month of December, 2023 10,000
Jan. 12 Purchased two Desktop Computers for cash vide Cash Memo No. 170 32,500
Jan. 25 Paid cash to Hari & Sons vide receipt No. 102 for repairs 1,000
Jan. 28 Paid Postage 200
Jan. 30 Cash withdrawn from bank 10,000

Chapter 8 – Journal
1. Goods purchased for Rs.25,000 from Mehul with 10% trade discount and 5% cash discount half
amount paid in cash. Pass Journal entry and show the working note clearly.
2. Journalize the following transaction of M/s Malika Fashion House:
(a) Business started with cash Rs. 2,00,000
(b) Opened a bank account with Canara Bank Rs. 80,000
(c) Goods purchased on credit from M/s Gulmahor Fashion House Rs. 30,000
(d) Purchased office machines, paid by cheque Rs. 20,000
3. Give Journal entries for the following:
(a) Goods worth Rs. 2,000 were used by the proprietor.

Prepared By: CMA Ketan Thakkar (B.Com., MBA (Fin.), FCMA) Mo. 9924295284
Work From Home sheet – CBSE XI - Accountancy Professional Coaching Centre – Bhuj

(b) Provide interest on capital of Rs. 1,50,000 at 6% for 9 months

(c) Rahul become insolvent, who owed Rs. 2,000 a final dividend of 60 paisa in a rupee is received
from his state.
4. Pass the journal entries in the books of M/s Sumit Traders on 31 st March 2022:
(a) Purchased goods worth Rs. 20,600 from M/s Ram Traders and paid half amount by cheque.
(b) Paid insurance premium Rs. 2,780
(c) Received dividend from ABC Co. Ltd. Rs. 7,650
(d) Sold goods worth Rs. 4,000 @ 10% trade discount.
5. Journalize:
(a) Business started with cash Rs. 1,75,000
(b) Purchased goods from Rohit Rs. 50,000
(c) Sales goods on credit to Manish (costing Rs. 17,500) Rs. 20,000
(d) Purchased furniture for office use Rs. 10,000
(e) Cash paid to Rohit in full settlement Rs. 48,500
(f) Cash received from Manish Rs. 20,000
(g) Rent paid Rs. 1,000
(h) Cash withdrew for personal use Rs. 3,000
Pass the journal entries in the books of Anil and Baby.
6. Journalize the following transaction into books of K.K. Gupta;
(a) Started business with Cash Rs. 1,00,000; Building Rs. 3,00,000; Debtors Rs. 75,000 and Creditors
Rs. 75,000
(b) Received Rs. 9,750 from Hari Ram in full settlement of his account for Rs. 10,000
(c) Goods costing Rs. 500 were used by the proprietor for domestic purposes
(d) Goods costing Rs. 1,000 given as charity
(e) Salaries due to administration staff Rs. 10,500
(f) Paid Rs. 200 for refreshment for a customer
(g) Purchased goods amounting to Rs. 2,00,000 out of which goods of Rs. 1,80,000 were purchased on
credit from Kalicharan.
(h) Paid into bank Rs. 2,00,000
7. Journalizing the following transaction in proper form:
(a) Open a bank account with SBI Rs. 30,000
(b) Received cheque from Suman Rs. 19,500
(c) Discount allowed Rs. 500
(d) Cheque given to Anshu on account Rs. 10,000
(e) Cheque issued to Poonam Rs. 10,000
(f) Paid telephone expenses by cheque Rs. 1,200
8. Record the following transactions in the books of Rakesh:
(a) Gave goods of Rs. 5,000 to Anath Ashram.
(b) Distributed goods of Rs. 4,000 as free samples.
(c) Withdrew goods of Rs. 8,000 from the business for the personal use.
(d) Purchased furniture of Rs. 3,000 by giving goods of ₹ 2,800.
(e) Goods of Rs. 7,000 were destroyed by fire, for which the insurance company accepted a claim of
Rs. 5,500.
(f) An amount of Rs. 2,000 is receivable from Nirali, which cannot be received now.
(g) Write off depreciation on machinery Rs.800.
(h) Salary for the month of March is unpaid Rs.7,800.

Prepared By: CMA Ketan Thakkar (B.Com., MBA (Fin.), FCMA) Mo. 9924295284