Niraj Jha

Dc chowk & Sector - 16

FULL COURSE TEST - 4

Class 11 - Accountancy
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 B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Accounting vouchers are prepared for [1]

a) both cash and non-cash transactions b) cash transactions

c) non-cash transactions d) Transfer

2. Assertion (A): Accounting has a wider scope than book-keeping. [1]
Reason (R): Book-keeping involves recording, classifying, summarizing and analysing the financial
transactions.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Goodwill account is a: [1]

a) Nominal Account b) Real Account

c) representative personal account d) Personal Account

4. A business had net capital at 1 January and 31st December 2012 of Rs. 75,600 and Rs. 73,800 respectively. [1]
During the year, the proprietor introduced additional capital of Rs. 17,700 and withdrew cash and goods to the
value of Rs. 16,300. What profit or loss was made by the business in 2012.

a) Rs.3000 Profit b) Rs.3200 Profit

c) Rs.3200 Loss d) Rs.3000 Loss

OR
If Cash= Rs.1000; inventories= Rs.4000 Debtors= Rs.5000; fixed assets=? Capital + Liabilities= Rs.18000. Find out
the Amount of fixed assets?

a) Rs.15000 b) Rs.20000

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 c) Rs.8000 d) Rs.10000
5. When a trader sells goods on credit, he prepares a sale ________ which contains the name of the party to whom [1]
goods are sold, the rate, quantity and the total amount of sale.

a) both bill and invoice b) bill

c) memo d) invoice
6. Which branch of accounting deals with information related to cost: [1]

a) Cost accounting b) Financial accounting

c) Management accounting d) All of these

OR
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.

a) Statement (B) is correct. b) Statement (D) is correct.

c) Statement (C) is correct. d) Statement (A) is correct.

7. When the purpose for which reserve is created is not specified, it is called ________. [1]

a) General reserve b) Revenue reserve

c) Specific reserve d) Capital reserves

8. Rule of Debit and Credit for Impersonal account is [1]

a) Dr. the receiver and Cr. the giver b) Dr. all expenses and Cr. all gains & Dr. what
goes out and Cr. what comes in

c) Dr. all expenses and Cr. all gains d) Dr. what goes out and Cr. what comes in
OR
Drawings Account is a

a) Artificial personal account b) Personal Account

c) Nominal Account d) Real Account

9. According to the Convention of Conservatism: [1]

a) Recording is made of outstanding expenses b) Depreciation is charged on assets

c) Provision is made for bad and doubtful d) All of these

debts
10. The business entities follow matching concept mainly to ascertain [1]

a) The changes in the purchasing power of the b) Changes in owner's equity

money

c) True profit or loss during an accounting d) The changes in the selling power of the
period money
11. Which reserve are created for specific purpose [1]

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 a) Specific Reserve b) Dividend equalization fund

c) Capital Reserves d) Dividend fund

12. Trade Discount allowed: [1]

a) deducted from purchase cost b) is not shown separately in the books of

account

c) is shown separately in the books of account d) can be shown either separately or deducted
from purchase cost
13. Calculate the amount of sales return: 5 Tables @Rs.150 each, 10 Chairs @ Rs.100 each, Trade discount@10% [1]

a) Rs.1,750 b) Rs.1,925

c) Rs.1,500 d) Rs.1,575
14. Calculate total expenses if capital Rs.2,00,000, creditors Rs. 50,000, revenue Rs.5,00,000 and asset Rs. 5,00,000. [1]

a) Rs.5,50,000 b) Rs.7,00,000

c) Rs.2,50,000 d) Rs.3,50,000
15. Current assets do not include [1]
Stock, Short term investment, Prepaid expenses, Unearned income

a) Prepaid expenses b) Short term investment

c) Stock d) Unearned income

OR
Current Liabilities do not include:
Debentures, Creditors, Outstanding Expenses, Bill payables

a) Creditors b) Outstanding Expenses

c) Debentures d) Bill payables

16. M/s ABC Suppliers sold on credit: [1]
i. Two water purifiers @ ₹2,100 each and
ii. Five buckets @ ₹130 each to M/s BCD Traders.
What will be the amount shown in sales book?

a) ₹2,230 b) ₹4,850

c) ₹4,200 d) ₹650
17. Identify specific reserves from the following [1]
i. Dividend equalisation reserve
ii. Provision for depreciation
iii. Workmen compensation fund
iv. Investment fluctuation fund

a) (i), (ii) and (iv) b) (i) and (ii)

c) (i) and (iii) d) (i), (iii) and (iv)

18. Explain the procedure of balancing personal accounts. [3]
OR

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 Pass journal entries for the following transactions:
i. Bought goods from Raj of the list price of Rs 30,000 at 15% trade discount.
ii. Settled the account of Raj by paying cash, under a discount of 4%.
iii. Bought goods for cash of the list price of Rs 1,50,000 at 20% trade discount and 5% cash discount.
iv. Sold goods for cash of the list price of Rs 60,000 at 10% trade discount and 3% cash discount.
19. Following information is obtained from the books of Mr. Sharma for the year ended 31st March, 2023: [3]

Cash Sales 5,20,000

Credit Sales 1,40,000

Expenses (out of which ₹ 60,000 is still to be paid) 4,10,000

Ascertain the Net Profit or Loss of Mr. Sharma if he adopts Cash Basis of Accounting.
OR
Differentiate between Cash Basis of accounting and Accrual Basis of accounting on the basis of timing of recording
of an income.
20. Explain the following terms with examples: [3]
a. Capital Expenditure
b. Non-Current Assets
21. Following Trial Balance is given but it is not correct. Prepare correct Trial Balance. [4]

Debit Balances ₹ Credit Balances ₹

Building 3,00,000 Capital 3,68,000

Machinery 85,000 Furniture 28,000

Returns Outward 13,000 Sales 5,20,000

Bad Debts 14,000 Debtors 3,00,000

Cash 2,000 Interest Received 13,000

Discount Received 15,000

Bank Overdraft 50,000

Creditors 2,50,000

Purchases 5,00,000

12,29,000 12,29,000

22. From the following transactions made by M/s Kuntia Traders, prepare the single column cashbook. [4]

Date 2017 Particulars Amount (₹)

Sept. 01 Cash in hand 40,000

Sept. 02 Deposited in bank 16,000

Sept. 04 Received from Puneet in full settlement of claim of ₹ 12,000 11,700

Sept. 05 Cash paid to Rukmani in full settlement of claim of ₹ 7,000 6,850

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 Sept. 06 Sold goods to Sudhir for cash 14,800

Sept. 06 Paid quarterly insurance premium on policy for proprietor’s wife 2,740

Sept. 07 Purchased office furniture 8,000

Sept. 07 Purchased stationery 1,700

Sept. 07 Paid cartage 120

Sept. 10 Paid Kamal, discount allowed by him ₹ 200 6,800

Sept. 11 Received from Gurmeet, discount allowed to him ₹ 500 14,500

Sept. 12 Amount withdrawn for household use 5,000

Sept. 14 Electricity bill paid 1,160

Sept. 17 Goods sold for cash 23,000

Sept. 21 Bought goods from Kamal on cash basis 17,000

Sept. 24 Paid telephone charges 2,300

Sept. 26 Paid postal charges 520

Sept. 28 Paid monthly rent 4,200

Sept. 29 Paid monthly wages and salary 8,250

Sept. 29 Bought goods for cash 11,000

Sept. 30 Sold goods for cash 15,600

23. From the following particulars ascertain the balance that would appear in the Bank Pass Book of A at 31st [4]
December 2013:
i. The bank overdraft as per Cash Book on 31st December 2013 ₹ 63,400.
ii. Interest on overdraft for 6 months ending 31st December 2013, ₹ 1,600 is entered in the Pass Book.
iii. Bank charges of ₹ 300 for the above period are debited in the Pass Book.
iv. Cheques issued but not cashed prior to 31st December 2013 amounted to ₹ 11,680.
v. Cheques paid into bank but not cleared before 31st December 2013 were for ₹ 21,700.
vi. Interest on investments collected by the bank is credited in the Pass Book ₹ 12,000.
OR
Prepare Bank Reconciliation Statement as on 31st January, 2023, if Cash Book of Mr. Suraj showed a credit balance
of ₹ 20,100.
i. The bank had paid fire insurance premium of ₹ 550 which does not appear in the Cash Book.
ii. Cheques for ₹ 25,000 issued during January, but cheques for only ₹ 18,500 were presented for payment.
iii. Interest collected by bank ₹ 740.
iv. Cheques of ₹ 8,700 were deposited into bank, but cheques for ₹ 7,000 were cleared till 31st January, 2023.
v. A customer deposited ₹ 620 directly into bank without informing Mr. Suraj.

24. Pass Journal entries for the following adjustment on 31st March, 2023: [6]

i. Interest due but not received ₹ 10,000.

ii. Salaries due to staff ₹ 50,000.

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 iii. Out of the rent paid this year, ₹ 5,000 is for the next year.
iv. Provide 10% depreciation on Furniture costing ₹ 1,00,000
v. Goods used in making Furniture (Sales Price ₹ 5,000; Cost ₹ 4,000).
vi. Received commission of ₹ 20,000 by cheque, half of which is in advance.
vii. Allow interest on capital ₹ 8,000
viii. Charge interest on drawings ₹ 1,500.
OR
Journalise the following transactions in the books of M/s. R.P. & Co.:
i. Purchased goods of list price of ₹ 20,000 from Vinay at 20% trade discount against cheque payment.
ii. Purchased goods of list price of ₹ 20,000 from Naveen at 15% trade discount against cash.
iii. Purchased goods of list price of ₹ 30,000 from Amit at 20% trade discount.
iv. Purchased goods from Hitesh & Co. of list price ₹ 40,000 for ₹ 35,000 against cash.
v. Goods purchased from Amit of list price ₹ 10,000 returned.
vi. Sold goods to Priya of list price of ₹ 40,000 at 10% trade discount against cheque payment.
vii. Sold goods to Arun of list price of ₹ 30,000 at 10% trade discount against cash.
viii. Sold goods to Pankaj of list price of ₹ 20,000 at 10% trade discount.
ix. Sold goods to Yogita of list price of ₹ 25,000 for ₹ 23,000.
x. Sold goods costing ₹ 10,000 at cost plus 20% less 10% trade discount to Bhanu.
xi. Sold goods purchased at list price of ₹ 50,000 sold at a profit of 25% less 10% trade discount against cheque.
xii. Arun returned goods of list price of ₹ 10,000 sold to him at 10% trade discount.
25. Rectify the following errors: [6]
i. ₹ 500 paid for the purchases of Radio set for the proprietor debited to the General expenses account.
ii. Goods sold to Rehan for ₹ 300 have been entered in the purchase book. However, the account of Rehan
stands correctly posted.
iii. An amount of ₹ 50 paid to Bajaj has been credited to the account of Kritika.
iv. A sum of ₹ 450 paid as rent has been debited to the Landlord’s personal account.
v. Wages paid for the month ₹ 300 was posted twice.
vi. Sales return book was undercast by ₹ 10
vii. Goods for ₹ 100 have been returned by a customer. These have been taken into stock but no entry in respect
thereof has been made in the books.
viii. Repairs ₹ 500 debited to machinery account as ₹ 550
OR
Pass Journal entries to rectify the following errors:
i. A purchase of goods from Ram amounting to ₹ 1,500 has been wrongly passed through the Sales Book.
ii. A credit sale of goods of ₹ 1,200 to Ramesh has been wrongly passed through the Purchases Book.
iii. An amount of ₹ 2,000 due from Mukul, which had been written off as Bad Debt in previous year, was
unexpectedly recovered and has been posted to the personal account of Mukul.
iv. A cheque for ₹ 5,000 received from Hariram was dishonoured and had been posted to the debit of the Sales
Return Account.
v. ₹ 10,000 paid on account of salary to the cashier Rao stands debited to his Personal Account.

26. On 1st July 2019, A Co. Ltd. Purchases second-hand machinery for ₹ 20,000 and spends ₹ 3,000 on [6]

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 reconditioning and installing it. On 1st January 2020, the firm purchases new machinery worth ₹ 12,000. On
June 30th, 2021, the machinery purchased on January 1, 2020, was sold for ₹ 8,000 and on July 1, 2021, a fresh
plant was installed.
Payment for this plant was to be made as follows:

July 1st, 2021 ₹ 5,000

June 30th, 2020 ₹ 6,000

June 30th, 2023 ₹ 5,500

Payments in 2022 and 2023 include interest of ₹ 1,000 and ₹ 500 respectively.
The company writes off 10 percent p.a. on the original coat, the accounts are closed every year on 31st March.

Show the Machinery Account for the year ended 31st March 2022.
OR
Following balance appear in the books of Rama Bros:

1st April, 2022 Machinery Account ₹ 80,000

Provision for depreciation A/c ₹ 36,000

On 1st April 2022, they sold a machine for ₹ 8,700. This machine was purchased for ₹ 16,000 in April 2018. You are
required to prepare Provision for Depreciation A/c and Machinery A/c on 31st March, 2023, assuming the firm has
been charging Depreciation at 10% p.a. on Straight Line Method.
Part B
27. Calculate the profit from the following information: Opening capital: Rs.36,000, closing capital-Rs.54,000, [1]
Drawings-Rs.3,000, capital added during the year-Rs.6,[Link] profit

a) Rs.20,000 b) Rs.25,000

c) Rs.15,000 d) Rs.10,000
OR
Commission received in advance is to be shown in statement of affairs on

a) Liabilities side b) Total assets

c) Total liabilities d) Cash balance

28. Calculate cost of goods sold : Opening stock Rs.2,00,000; purchases Rs. 3,50,000; closing stock Rs.1,20,000; [1]
Wages Rs.2,500; freight Rs.4,500; carriage outward Rs.5,500; trade expenses Rs. 2,500

a) Rs.427000 b) Rs.465000

c) Rs.437000 d) Rs.471000
29. Calculate provision for doubtful debt. If debtor closing balance is Rs.3,400 and provision for the reserve of [1]
doubtful debts at 10% on sundry debtors

a) Rs.2,060 b) Rs.3,400

c) Rs.340 d) Rs.3,060
OR
The following information is given in Trial Balance:

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 Bad Debt ₹ 3,000

Provision for Bad Debts ₹ 3,500

Debtors ₹ 40,000

Additional information: It is desired to make a provision for doubtful debts @ of 10% on debtors. The amount
debited to P & L A/c is:

a) ₹ 6,500 b) ₹ 3,500

c) ₹ 5,000 d) ₹ 4,000
30. Calculate Closing Stock from the following details: [3]

Rs. Rs.

Opening Stock 20,000 Purchases 70,000

Cash Sales 60,000 Credit sales 40,000

Rate of Gross Profit on cost 33 1

3
%.

31. Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from [3]
the books of M/s Rajiv & Sons for the year ended 31 st March, 2014

Amt (Rs.)

Opening stock 50,000

Net sales 11,00,000

Net purchase 6,00,000

Direct expenses 60,000

Administration expenses 45,000

Selling and distribution expenses 65,000

Loss due to fire 20,000

Closing stock 70,000

32. Following is the extract from the Trial Balance of Dass as at 31st March, 2023: [3]

TRIAL BALANCE
as at 31st March, 2023

Heads of Accounts Dr. (₹) Cr. (₹)

Sundry Debtors 3,00,000 ____

Additional Information: Create a Provision for Doubtful Debts @ 5% on Sundry Debtors.

Pass necessary entry and show it in the Profit & Loss Account and Balance Sheet.
33. Mr. Muneesh maintains his books of accounts from incomplete records. His books provide the information: [6]

April. 01, 2016 (₹) March. 31, 2017 (₹)

Cash 1,200 1,600

Bills receivable - 2,400

Debtors 16,800 27,200

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 Stock 22,400 24,400

Investment - 8,000

Furniture 7,500 8,000

Creditors 14,000 15,200

He withdrew ₹ 300 per month for personal expenses. He sold his investment of ₹ 16,000 at 2% premium and
introduced that amount into business.
OR
Aman started a business on 1st April 2012, with a capital of Rs 4,50,000. During the year, he withdrew Rs 80,000 for
household expenses and introduced Rs 14,000 as fresh capital. His position of assets and liabilities as at 31st March,
2013 stood as follows

Items Amt(Rs)

Cash in Hand 37,000

Stock 40,000

Bills receivable 50,000

Debtors 8,00,000

Creditors 3,00,000

Bills payable 6,000

You are required to prepare statement of profit or loss for the year ended 31st March, 2013.
34. Following is the Trial Balance as on 31st March 2023. Prepare Trading and Profit and Loss Account and Balance [6]
Sheet:

Particulars Debit (₹) Credit (₹)

Stock (1st April 2022) 8,000

Sales 2,20,000

Purchases 1,26,000

Productive Wages 56,500

Salaries 16,000

Stores Consumed 6,050

Carriage 3,050

Rent and Rates 5,200

Insurance 1,320

Machinery 52,000

Building 67,000

Capital less Drawings 1,45,600

Sundry Debtors 44,000

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Sundry Creditors 20,000

Secured Loan 15,000

Furniture 3,350

General Expenses 2,600

Cash in hand 1,930

Bad Debts 1,020

Bank 6,580

Total 4,00,600 4,00,600

Additional information:

i. Stock on 31st March 2023 is ₹ 20,600.

ii. Depreciate machinery @ 10% p.a.
iii. Make a Provision @ 5% for Doubtful Debts.
iv. Provide 2 % for discount on sundry debtors.
1

v. Rent and Rates include security deposit of ₹ 400.

vi. Insurance prepaid ₹ 120.
OR
Prepare the trading and profit and loss account and a balance sheet of M/s Shine Ltd from the following particulars.

Account Title Amt (₹) Account Title Amt (₹)

Sundry debtors 1,00,000 Bills Payable 85,550

Bad Debts 3,000 Sundry creditors 25,000

Trade expenses 2,500 Provision for Bad Debts 1,500

Printing and Stationery 5,000 Return outwards 4,500

Rent, rate and taxes 3,450 Capital 2,50,000

Freight 2,250 Discount received 3,500

Sales return 6,000 Interest received 11,260

Motor car 25,000 Sales 1,00,000

Opening Stock 75,550

Furniture and fixtures 15,500

Purchases 75,000

Drawings 13,560

Investments 65,500

Cash in hand 36,000

Cash at Bank 53,000

4,81,310 4,81,310

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Additional Information
i. Closing stock was valued at ₹ 35,000.
ii. Depreciation charged on furniture and fixtures @ 5%.
iii. Further bad debts ₹ 1,000. Make a provision for bad debts @ 5% on sundry debtors.
iv. Depreciation charged on motor car @ 10%.
v. Interest on drawings @ 6%.
vi. Rent, rates and taxes was outstanding ₹ 200.
vii. Discount on debtors 2%

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