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MID TERM EXAMINATION (2023 – 24)

ACCOUNTANCY (055)
CLASS – XI SAMPLE PAPER

Name– Maximum Marks - 80

Date- August 28,2023 Time Allotted – 3 hrs.
General Instructions:
1. This question paper contains 34 questions. All questions are compulsory.
2. Question Nos.1 to 20carries 1 mark each.
3. Questions Nos. 21 to 26 carries 3 marks each.
4. Questions Nos. from 27 to 29 carries 4 marks each
5. Questions Nos. from 30 to34 carries 6 marks each
6. There is no overall choice. However, an internal choice has been provided in 7questions
ofone mark, 2 questions of three marks, 1 question of four marks and 2 questions of six
marks.

Q 1)Which of the following is not a fixed assets?

(a)Building (b)Plant and Machinery (c)Balance with Bank (d)Goodwill

Q2)X ltd. Follows the Written down value method of depreciating machinery year after year due to:
(a) Comparability (b)Convenience (c)consistency (d)All of these.

Q3)Under the cash basis of accounting,expenses are recorded:

(a)on payment (b)on being incurred (c)either (a) or (b) (d)None of these.
OR

Under the Accrual basis of accounting,expenses are recorded:

(a)on payment (b)on being incurred (c)either (a) or (b) (d)None of these.

Q4)assertion(A):Personal Transactions of the owners of the business are not recorded in the books.
Reasoning (R ):According to the business entity concept,each business enterprises is considered as an
accounting unit separate from owners.
(a)Both Assertion (A) and Reason (R) are true and Reason(R) is correct explanation of Assertion (A)
(b)Both Assertion (A) and Reason (R) are true and Reason(R) is not the correct explanation of Assertion (A)
(c)Assertion (A) is true but Reason (R) is False
(d)Assertion (A) is false but Reason (R) is true

Q5)Goodwill account is a
(a)Personal account (b)Real account (c )Nominal account (d)None of these
OR
Which of the following accounts has a credit balance?
(a)Carriage inward (b)Discount Received (c)Carriage outward (d)Discount allowed

Q6)Cash Memo is Prepared when goods are sold

(a)On Credit (b) On cash (c)Both (a) and (b) (d) None of these
OR
Voucher is prepared for
(a)Cash and credit purchases (b) Cash and credit sales (c)Cash received and paid (d)All of these
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Q7)Assertion (A)- Journal is prepared from the voucher and ledger is preparedfrom the journal.
Reasoning (R)- Because voucher is evidence for each business transactions
and without journal, ledger cannot be prepared.
(a) Both Assertion (A) and Reason (R) are true and Reason(R) is correct explanation of Assertion (A)
(b)Both Assertion (A) and Reason (R) are true and Reason(R) is not the correct explanation of Assertion (A)
(c)Assertion (A) is true but Reason (R) is False
(d)Assertion (A) is false but Reason (R) is true

Q8)Goods distributed as samples is posted to the credit of _________ Account.

(a)Purchses Account (b)Sales Account ( c)Capital Account (d)Expense Account
OR
Sold goods to Ajay of the list price Rs.40,000 allowing 10% Trade discount and 2% cash discount.Ajay Paid
40% immediately.Cash Discount allowed to Ajay will be ___________
(a)Rs.299 (b)Rs.399 (c)Rs.288 (d)Rs.388

A hypothetical text was provided on the basis of which the you are required to solve the given case-
based question (9 and 10)
Sam and Jay started with Cash 10,000 and Machinery 1,00,000. They decided to set up a production line for
PPE kits for. the protection from Covid 19 virus. As their demand rose, they decided to buy one more piece
of machinery. For the same, they took bank overdraft and purchased the machinery. The quality of the
company’s product was extremely high and therefore, it could develop a reputation for itself in the market
and business was flourishing. After 1.5 years, their old machinery turned obsolete so they decided to sell the
same. They sold it and got some cash proceeds. To further increase the brand presence among the concerned
stakeholders, they decided to run advertisements from the cash proceeds of machinery sold. As more and
more customers demanded their product, they decided to launch a discount for bulk purchases. The discount
was not to be recorded in the books of accounts. This campaign was successful and they earned a lot of
profits from the same.
Q9) Which type of discount is being discussed in the last part of the passage?
(a) Trade discount (b) Cash discount (c) Both (a) and (b) (d) Can’t be determine

Q10) Which asset is discussed in the line, “The quality of the company’s product was very high and
therefore, it could develop a reputation for itself in the market and business was flourishing”?
(a) Tangible (b) Intangible (c) Current. (d) Both (a) and (c)

Q11)Goods means
(a) Items purchased for own consumption. (b)Items purchased fordonation
(c)Items purchased forresale (d)Items purchased foruse in business.

Q12) IFRS are based on

(a)rule based accounting standard (b)Principles based accounting standards
(c)partially rule based and partially principle based accounting standards
(d)None of the above

Q13)If total sales during the year were Rs.80,000 out of which Rs.50,000 cash received during the year
and bad debts were rs.2,000,The amount of revenue recognised as realised following accrual basis of
accounting will be _______
(a) Rs.10,000 (b)Rs.50,000 (c)Rs.30,000 (d)Rs.80,000

Q14)The liabilities of a firm are Rs.3,000 :the capital of the Proprietor is Rs.7,000:and the total assets
are______:
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(a) Rs.7,000 (b) Rs.10,000 (c) Rs.4,000 (d) None of these

Q15)As per modern classification of accounts,Accrued income is ______

(a)Assets (b)Liability (c)Expenses (d)Capital
OR
Patent right is a/an __________ Assets account?
(a)Tangible (b) Intangible (c)Current (d)None of these
Q16) Invoice is a source voucher for
(a)Cash Purchases (b)Credit Purchases (c)both (a) and (b) (d)Neither (a) nor (b)

Q17)A , who owed rs.20,000 become insolvent,70 paise in a rupee was received from his estate.Bad debts
account will be debited by
(a)Rs.20,000 (b)Rs.10,000 (c ) Rs.6,000 (d)Rs.14,000

Q18)What type of following accounts will have debit balance only?

(a)Personal account (b)Real account (c )Nominal account (d)None of these

Q19)Statement I: Cash Book is both a Subsidiary Book and a Principal Book.

Statement II Because it is prepared from the transaction recorded in the
journal.
(a)Statement I is correct and II is wrong (b)Statement II is correct and I is wrong
(c)Both the statements are correct (d)Both the statements are incorrect
OR
Balance in the petty cash book is
(a) an expence (b) a Profit (c)an asset (d) income

Q20)X received a cheque of Rs.10,000 from Y in settlement of dues of Rs.10,500.The cheque was
dishonoured.The reversal of discount allowed by X will be recorded in
(a)Cash Book (b)Journal Proper (c )Ledger directly (d)None of these
OR
The sales Book
(a)is a part of the journal (b)is a part of the ledger (c)is the part of the Balance sheet
(d)is a part of the Trial Balance

Q21)Write a note on types of assets with one example of each?

Q22)What are accounting standard? Name any two accounting standard?

OR
Explain the following terms.
a)Going concern concept
b)Dual Aspect concept

Q23) Vijay, a consultant, during the financial year 2018–19 earned Rs.4,00,000. Out of which he received
3,50,000. He incurred an expense of Rs.1,70,000, out of which Rs. 40,000 are
outstanding. He also received consultancy fee relating to previous year Rs.45,000 and also
paid 20,000 expenses of last year.
You are required to determine his income for the year if
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(i) he follows Cash Basis of Accounting and

(ii) he follows Accrual Basis of Accounting.

OR
What is meant by Accrual Basis of accounting ?Give 2 advantages of Accrual Basis of accounting?

Q24)On 31st March, 2023, the total assets and external liabilities were ₹ 2,00,000 and ₹ 6,000 respectively.
During the year, the proprietor had introduced capital of ₹ 20,000 and withdrawn ₹ 12,000 for personal use. He
made a profit of ₹ 20,000 during the year. Calculate the capital as on 1st April, 2022.
Q25)Open a 'T' shape Cash Account with the following transactions:
₹
(i) Ram started business with cash 40,000
(ii) Purchased Goods 20,000
(iii) Sold Goods 24,000
(iv) Paid Rent 400
(v) Paid salaries 600
(vi) Drew for personal use 1,000
Q26)On which side will the increase in the following accounts be recorded? Also, state the nature of the account:
(i) Furniture A/c (ii) Mohan (proprietor)
(iii) Salary A/c (iv) Purchases A/c
(v) Sales A/c (vi) Interest Paid A/c

Q27) Pass Journal entries for the following adjustment on 31st March, 2021:
(1) Interest due but not received 10,000.
(ii) Salaries due to staff 50,000.
(iii) Out of the rent paid this year, Rs.5,000 is for the next year.
(iv) Provide 10% depreciation on Furniture costing Rs.1,00,000.
Q28) Prepare the Transfer Vouchers in the books of Mangla Agencies, Faridabad, Haryana from the Source
Vouchers:
2019 ₹
Jan.7 Purchased goods from M/s Eufora, New Delhi vide Bill No. 912 4,700
Jan. Sold goods to M/s Yardley, Faridabad, Haryana vide Bill No. 5,000
11 31596
Jan. Depreciation charged on building @ 10% on ₹ 2,00,000 20,000
31

Q29)Differenciate between cash and accrual basis of accounting on the basis of a)Profit and loss b)Legal
Psition c)Technical Knowledge d)Nature of transactions.
OR
What are the cash Basis of accounting ?Explain its Disadvantages?

Q30) Show an Accounting Equation for the following transactions:

(i) D. Mahapatra commenced business with cash ₹ 50,000 and ₹ 1,00,000 by cheque; goods ₹ 60,000;
machinery₹1,00,000and furniture₹50,000.
(ii) 1/3rd of above goods sold at a profit of 10% on cost and half of the payment is received in cash.
(iii)Depreciationonmachineryprovided@10%.
(iv)Cash withdrawn for personal use ₹ 10,000.
(v)Interest on drawings charged @ 5%.
(vi) Goods Sold to Gupta for ₹ 10,000 and received a Bill Receivable for the same amount for 3 months.
OR
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Show the Accounting Equation on the basis of the following transactions and present a Balance Sheet on the last
new equation balance:
₹
(i) Raj commenced business with cash 70,000
(ii) Purchased goods on credit 14,000
(iii) Withdrew for Private use 1,700
(iv) Goods purchased for cash 10,000
(v) Paid wages 300
(vi) Paid to creditors 10,000

Q31)Pass necessary Journal entries for the following transactions:

2021 `
April 1: Paid repairing charges on existing machineries. 1,000
April 2: Purchased a new machinery. 42,500
April 3: Paid freight and carriage on machinery. 2,500
April 4: Paid installation charges on machinery. 5,000
April 5: Purchased a second-hand machinery. 18,000
April 6: Paid repairing charges on above machinery. 2,500

OR
Journalise the following transactions of Singh Enterprises, Delhi:
2021 `
June 1 Started business with cash 50,000
Deposited cheque from Savings Account in firm's
June 2 account 2,00,000
June 3 Received cheque from Ram as loan 50,000
June 4 Purchased goods for cash 15,000
June 11 Sold goods to M/s. Hari Sales, Delhi 12,000
June 13 Paid to Ramavtar by cheque advance for Machine . 40,000
June 17 Received from M/s. Hari Sales, Delhi. 10,000
Bought furniture from S.R. Furnishers against
June 20 cheque payment. 22,400
June 27 Paid rent by Cheque 28,000
Sold the personal Car and invested the amount in
June 27 business. 80,000
Goods costing `2,000 were destroyed by fire. These
June 27 goods were not insured
June 30 Paid life insurance premium for employees. 5,000
June 30 Paid salary 20,000

Q32) Following balances appeared in the books of Ashok, Delhi on 1st April, 2018:
Assets: Cash ₹ 50,000; Stock ₹ 30,000; Debtors–Ram ₹ 50,000; Machinery ₹ 60,000.
Liabilities: Creditor – Rajesh ₹ 30,000.
The following transactions took place in April, 2018:

2018 ₹
April Sold goods for cash 7,000
4
April
Goods returned by Ram, Delhi 1,000
6
April Purchased goods from Rajesh, Jaipur (Rajasthan) of list price ₹ 9,000
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10 10,000 for
April Bought goods at list price of ₹ 15,000 from Rakesh, Kolkata less
15 10% trade
discount and 5% cash discount and paid 40% price immediately

Q33)Prepare two column cash book of bimal,Lucknow from the following transactions
01. Cash in hand Rs.17,500
01. Cash in Bank Rs.5,000
03. Purchased goods for cash Rs.3,000
05. Received cheque from Arun Rs.10,000
08. Sold goods for cash Rs.8,000
10. Arun`s cheque deposited into bank Rs.10,000
12. Purchased goods and paid by cheque Rs.20,000
15. Paid establishment expense through bank Rs.1,000
18. Cash Sales Rs.7,000
20. Deposited into Bank Rs.10,000
24. Paid General expense Rs.500
27. Received commission by Cross cheque Rs.6,000
29. Paid Rent Rs.2,000
30. Withdrew cash for personal use Rs.1,200
31. Wages Paid Rs.6,000

Q34) Record the following transactions in the Purchases Book of Krishna General Stores, Delhi:

2022
May 1 Bought from M/s. Chunni Lal Mam Raj, Delhi:
100 bags of ITC Wheat Atta @ ` 530 per bag
50 bags of Rice Basmati @ ` 500 per bag
Less: Trade Discount @ 10%

May 3 Bought from M/s. Kanodia Oil Mills, Delhi:

40 tins Oil @ ` 1,500 per tin
20 tins Banaspati Oil @ ` 900 per tin
Less: Trade Discount @ 5%

May 4 Purchased from M/s. Gupta Bros., Hapur:

25 bags gram @ ` 480 per bag
40 bags oats @ ` 25 per bag
Less: Trade Discount @ 5%
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