vardhaman ss school

Time : 2 Hour 30 Minute STD 11 Commerce Account Total Marks : 100

sample test 1

SECTION A

* Choose The Right Answer From The Given Options.[1 Marks Each] [7]

1. Which of the following is correct?

S.no Assets Liabilities Capital
(a) ₹ 7,85,000 ₹ 1,25,000 ₹ 6,60,000
(b) ₹ 8,20,000 ₹ 2,80,000 ₹ 11,00,000
(c) ₹ 9,55,000 ₹ 1,15,000 ₹ 8,20,000
(d) ₹ 5,42,000 ₹ 6,54,000 ₹ 1,12,000

Ans. :
S.no Assets Liabilities Capital
(a) ₹ 7,85,000 ₹ 1,25,000 ₹ 6,60,000

2. Decrease in one liability may lead to:

a. Decrease in an asset.
b. Increase in another liability.
c. Either (a) or (b).
d. None of these.
Ans. :
c. Either (a) or (b).
3. Payment to a creditor means:
a. Increase in asset and decrease in liability.
b. Decrease in asset and decrease in liability.
c. Decrease in asset and increase in liability.
d. Increase in asset and increase in liability.
Ans. :
b. Decrease in asset and decrease in liability.
4. Business transactions are recorded:
a. In chronological order.

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 b. Weekly.
c. At the end of the month.
d. All of these.
Ans. :
a. In chronological order.
5. A withdrawal of cash from business by the proprietor is credited to:
a. Drawings A/c.
b. Capital A/c.
c. Cash A/c.
d. None of these.
Ans. :
c. Cash A/c.
6. If the amount of any known liability cannot be deterinined accurately.
a. Provision should be created.
b. Definite liability should be created.
c. Reserve should be created.
d. Should be shown as a contingent liability.
Ans. :
a. Provision should be created.
7. Which of the following statements is not appropriate in relation to
“Provision”?
a. Provision is a charge against profit.
b. Provision is created for known liability.
c. Provision is created for strengthening the financial position of the
business.
d. Creation of provision satisfies the principle of conservatism.
Ans. :
c. Provision is created for strengthening the financial position of the
business.

* questions of 3 marks each. [9]

8. Show the accounting equation on the basis of following transactions:

a. Ram started business with ₹ 25,000.
b. Purchased goods from Shyam ₹ 10,000.
c. Sold goods to Sohan costing ₹ 1,500 for ₹ 1,800.

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 Ans. :

9. Ram started business on 1st April, 2018 with a Capital of ₹ 25,000 and a loan

of ₹ 12,500. On 31st March, 2019, his assets were ₹ 50,000. Find his capital
as on 31st March, 2019 and the profit earned during the year.

Ans. : Closing Capital is difference between the assets and liabilities. Thus
liabilities = 12,500 (Loan)
and assets = 50000.
Therefore capital = 50,000 - 12,500 = 37,500
Profit = Closing Capital - Opening Capital + Drawings - Additional Capital
Profit = 37,500 - 25,000 + 0 - 0
Profit = 12,500

10. Rahul sold 100 Cricket Bats to V. Sports @ ₹ 5,000 each less 25% Trade
Discount plus IGST @ 12% and 2% Cash Discount if V. Sports paid the amount
in 14 days of sale. V. Sports paid the amount within 14 days. What will be the
amount that Rahul should credit to Sales Account?
What will be the Journal entries for the transaction in the books of Rahul?
Ans. :

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 * questions of 6 marks each. [6]

11. Journalise the following transactions in the books of Bhushan Agencies:

i. Received from Bharat cash ₹ 20,000, allowed him discount of ₹ 500.
ii. Received from Vikas ₹ 35,000 by cheque, allowed him discount of ₹
750.
iii. Received from Akhil ₹ 38,000 in settlement of his dues of ₹ 40,000 in
cash.
iv. Received from Amrit ₹ 50,000 by cheque on account against dues of ₹
60,000.
v. Paid cash ₹ 40,000 to suresh, availed discount of 2%.
vi. Paid by cheque ₹ 25,000 to Mehar and settled her dues of ₹ 26,000.
vii. Paid ₹ 25,000 to Yogesh by cheque on account.
viii. Purchased goods costing ₹ 1,00,000 against cheque and availed
discount of 3%.
ix. Purchased goods costing ₹ 60,000 from Akash & Co., paid 50%
immediately availing 3% discount.
x. Sold goods of ₹ 30,000 against cheque allowing 2% discount.
xi. Sold goods of ₹ 60,000 to Vimal received 50% of due amount allowing
2% discount.

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Ans. :

Page 5
 SECTION B

* Choose The Right Answer From The Given Options.[1 Marks Each] [13]

1. Cash Book records:

a. All cash receipts and payments.
b. Cash and credit sale of goods.
c. Both (a) and (b).
d. None of these.
Ans. :
a. All cash receipts and payments.
2. Mohit paid ₹ 9,800 in settlement of his account of ₹ 10,000. Discount Allowed
will be recorded in:
a. Cash Book.
b. Journal Book.
c. Both Cash Book and Journal.
d. None of these.
Ans. :
b. Journal Book.
3. Deposit of cash in bank is recorded in:
a. Debit of Bank Column and Credit of Cash Column.
b. Debit of Cash Column and Credit of Bank Column.
c. Debit of Cash Column and also Credit of Cash Column.
d. Debit of Bank Column and also Credit of Bank Column.
Ans. :
a. Debit of Bank Column and Credit of Cash Column.
4. The total of the Sales Book is posted to:
a. Credit of the Sales Account.
b. Credit of the Purchases Account.
c. Credit of the Capital Account.
d. Credit of Customers' Accounts.
Ans. :
a. Credit of the Sales Account.
5. Total of these transactions is posted to Purchase Account:
a. Purchase of furniture.
b. Purchase Return.
c. Credit Purchase.

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 d. Purchase of Stationery.
Ans. :
c. Credit Purchase.
6. Bank Reconciliation Statement is prepared:
a. To know the payments made through cheques.
b. To know the errors in the Pass Book.
c. To compare the Cash Book with Pass Book and ascertain the
differences.
d. None of the above.
Ans. :
c. To compare the Cash Book with Pass Book and ascertain the differences.
7. Suspense Account is opened when:
a. Balance Sheet does not match.
b. Trial Balance does not match.
c. Total of Sales Account does not agree.
d. None of these.
Ans. :
b. Trial Balance does not match.
8. Preparation of a Trial Balance is:
a. Compulsory.
b. Optional.
c. Compulsory or Ooptional.
d. None of these.
Ans. :
b. Optional.
9. Charging depreciation is:
a. Compulsory.
b. Voluntary.
c. Dependent on the condition of assets.
d. None of these.
Ans. :
a. Compulsory.
10. Depreciation is charged on:
a. Current Assets.
b. Fixed Assets.
c. Total Assets.

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 d. Fictitious Assets.
Ans. :
b. Fixed Assets.
11. The loss on sale of an asset is debited to:
a. Reserves.
b. Depreciation fund.
c. Profit and Loss Account.
d. None of these.
Ans. :
c. Profit and Loss Account.
12. Error not shown by Trial Balance are:
a. Errors of Principle.
b. Compensating Errors.
c. Errors of Complete Omission.
d. All of the above.
Ans. :
d. All of the above.
13. Goods of ₹ 1,000 taken by the proprietor for personal use should be credited
to:
a. Sales Account.
b. Proprietor's Personal Expenses Account.
c. Purchases Account.
d. None of these.
Ans. :
c. Purchases Account.

* Answer The Following Questions In One Sentence.[1 Marks Each] [1]

14. Give any two items that are debited to Profit and Loss Account.

Ans. :
i. Business Promotion Expenses.
ii. Insurance Premium.

* questions of 3 marks each. [12]

15. Prepare Bank Reconciliation Statement from the following:

₹
(i) Debit balance as per the Cash Book. 15,000
(ii) Cheques deposited but not cleared. 1,000

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 (iii) Cheques issued but not presented. 1,500
(iv) Bank interest. 200

Ans. :
16. On 31st March, 2019. Bank Account in the books of Ramesh shows a credit
balance of ₹ 36,000. On the same date, outstanding cheques amounted to ₹
14,000 and outstanding deposits a mounted to ₹ 20,000. A cheque for ₹
5,000 received from a debtor, was subsequently dishonoured. The receipt
had been correctly recorded but no entry has yet been made in the books for
the dishonour. On the basis of the above information, determine the balance
as per the Bank Statement.
Ans. : Coming Soon
17. Calculate the Amount of annual Depreciation and Rate of Depreciation under
Straight Line Method (SLM) from the following:
Purchased a second-hand machine for ₹ 96,000, spent ₹ 24,000 on its
cartage, repairs and installation, estimated useful life of machine 4 years.
Estimated residual value ₹ 72,000.

Ans. : Amount of Annual Depreciation =

Cost of Machine − Scrap Value of Machine

Life in Years

1,20,000−72,000
=
4

₹ 12, 000

Amount of Depreciation
Rate of Depreciation = × 100
Cost of Machine

12,000
= × 100 = 10% p.a.
1,20,000

18. Rectify the following errors:

i. Purchases Book has been undercast by ₹ 1,000.
ii. Credit sale to Anu Prakash ₹ 7,000 was recorded in Purchases Book.
iii. Credit sale to Rahul ₹ 7,000 was recorded as ₹ 700.

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 Ans. :

OR
* Following errors affecting the accounts of the year 2018-19 were detected in the books
of Das & Co., Meerut:
i. Sale of old furniture for ₹ 5,000 was treated as sales of goods.
ii. Rent of proprietor’s residence ₹ 6,000 was debited to Rent Account.
iii. Cash received from Rajesh ₹ 2,150 was credited to Brajesh.
Pass the rectifying Journal entries. State the nature of each of these mistake

Ans. :

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 * questions of 4 marks each. [16]

19. Enter the following transactions in the Double Column Cash Book of M/s.
Gupta Store:
2019 ₹
June 1 Cash in Hand ₹ 800, Bank overdraft ₹ 5,700
June 7 Received a cheque from Bharati, discount allowed ₹ 150 3,250
June 9 Deposited the above cheque into Bank
June 15 Cheque received from Panna Lal 1,200
June 20 Bharati's cheque returned dishonoured
June 28 Panna Lal's cheque was endorsed to Kamal
June 30 Income tax paid by cheque 150

Ans. :

20. Record the following transactions in the Purchases Return Book of Kamla
Stores, Delhi for April, 2019:
201
9

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 April Returned goods to Ramesh Brothers, Delhi purchased for ₹
6 5,000 plus CGST and SGST @ 6% each
April Returned goods to Sohan Brothers, Meerut purchased for ₹
8 10,000 plus IGST @ 12%
April Returned goods to Mahesh Brothers of ₹ 2,000 plus CGST and SGST @
17 6% each

Ans. :

21. A Trial Balance disclosed a difference of ₹ 417 placed on the credit side of the
Suspense Account. Later on the following errors were located:
i. Goods worth ₹ 200 purchased from Sohan had been posted to his
account as ₹ 250.
ii. A purchase of furniture for ₹ 500 was recorded in the Purchases
Book.
iii. Instead of crediting Gian’s Account with ₹ 512, it was debited with ₹
215.
iv. Goods worth ₹ 130 returned by Gian were entered in the Sales Book
and posted therefrom to the credit of Gian’s Personal Account.
Pass the rectifying entries and prepare a Suspense Account.

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 Ans. :

22. From the following information, prepare Trading Account for the year ended

31st March, 2019:

Adjusted Purchases ₹ 6,60,000; Sales ₹ 7,44,000; Closing Stock ₹
50,400; Freight and Carriage Inwards ₹ 3,600; Wages ₹ 6,000; Freight and
Cartage Outwards ₹ 2,000.

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 Ans. :

Notes:
i. Freight and Carriage Outwards are indirect expenses, therefore it is not
recorded in the Trading Account.
ii. Closing Stock (i.e. ₹ 50,400) is not recorded in the Trading Account as it
is already adjusted in the amount of Adjusted Purchases.

* questions of 6 marks each. [36]

23. From the following particulars, find out corrected bank balance as per Cash
Book and thereafter prepare a Bank Reconciliation Statement as on 31st
March, 2019 of a sole proprietor:
₹
(i) Bank overdraft as per the Cash Book. 80,00
0
(ii) Cheques deposited as per the bank statement but not entered in 3,000
the Cash Book.
(iii) Cheques recorded for collection but not sent to the bank. 10,00
0
(iv) Credit side of bank column casted short. 1,000
(v) Bank charges recorded twice in the Cash Book. 100
(vi) Customer's cheque returned as per the Bank Statement. 4,000
(vii Cheques issued but dishonoured on technical grounds. 3,000
)
(viii Bills collected by bank directly. 20,00
) 0
(ix) Cheque received entered twice in the Cash Book. 5,000

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 Ans. :

24. Prepare a Trial Balance from the following items:

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 Ans. :

OR
*
Prepare Two-column Cash Book of Vinod, Delhi from the following transactions:

2018 ₹

Oct. 1 Cash in Hand 25,000

Oct. 1 Cash at Bank 75,000

Oct. 7 Bought goods for ₹ 15,000 plus IGST @ 12% against cheque

Oct. 8 Bought goods for ₹ 5,000 plus CGST and SGST @ 6% each
Oct. 10 Honoured our own acceptance by cheque 5,000

Oct. 14 Paid petty expenses 150

Oct. 18 Ramesh who owed ₹ 5,000 became bankrupt and paid us 50 paise in a
rupee

Oct. 20 Received cash from Manohar 7,500

 Allowed discount 250
Oct. 23 Withdrew from bank 4,000

Oct. 24 Paid to Ghanshyamdas & Co. 3,000

Received discount 100

Oct. 25 Withdrew from bank for personal expenses 3,000

Oct. 27 Sold goods for ₹ 11,000 plus CGST and SGST @ 6% against cash

Oct. 28 Received cheque for goods sold for ₹ 9,000 plus CGST and SGST @ 6%
each

Oct. 29 Received repayment of a loan of ₹ 5,000 and deposited ₹ 3,000 out of it

into bank

Ans. :

25. From the following transactions of a concern, prepare the Machinery Account
for the year ended 31st March, 2019:
1st April, 2018 :Purchased a second-hand machinery for ₹ 40,000.
1st April, 2018 :Spent ₹ 10,000 on repairs for making it serviceable.
30th September, 2018 :Purchased additional new machinery for ₹ 20,000.
31st December, 2018 :Repairs and renewal of machinery ₹ 3,000.
31st March, 2019 :Depreciate the machinery at 10% p.a.

Ans. :
26. Following are the balances extracted from the books of Narain on 31st March,
2019:​
Additional Information:
i. Closing Stock as on 31st March, 2019 was ₹ 2,00,600, whereas its Net
Realisable Value (Market Value) was ₹ 2,05,000.
ii. Depreciate Business Premises by ₹ 3,000 and Furniture and Fittings
by ₹ 2,500.
iii. Make a provision of 5% on debtors for doubtful debts.
iv. Carry forward ₹ 2,000 for unexpired insurance.
v. Outstanding salary was ₹ 15,000.
Prepare Trading and Profit and Loss Account for the year and Balance Sheet
as at that date.
Ans. :

Note: As per the prudence concept, closing stock is taken to be at the market value or the
 book value whichever is less.

27. Trial Balance of a business as at 31st March, 2019 is given below:

Prepare Trading and Profit and Loss Account for the year ended 31st March,
2019 and Balance Sheet as at that date after taking into account the
following adjustments:
i. Closing Stock was valued at ₹ 7,000.
ii. Outstanding liabilities for wages were ₹ 600 and salaries ₹ 1,400.
iii. Depreciation is to be provided @ 5% p.a. on fixed assets.
 iv. Included in Plant and Machinery is a machine purchased for ₹ 10,000
on 1st October, 2018.
v. Insurance premium paid in advance ₹ 200.
Ans. :
 OR
* Following is the Trial Balance as on 31st March, 2019. Prepare Trading and Profit and
Loss Account and Balance Sheet:
 Stock
on 31st March, 2019, ₹ 20,600. You are to make adjustments in respect of the following:
1. Depreciate Machinery at 10% p.a.
2. Make a provision @ 5% for Doubtful Debts.
 3. Provide discount on debtors @ 2
1

2
%

4. Rent includes Rent deposit of ₹ 400.

5. Insurance Prepaid ₹ 120.

Ans. :
28. Ram Prashad keeps his books on Single Entry System and from them and the
particulars supplied, the following figures were gathered together on 31st
March, 2019:
Book Debts ₹ 10,000; Cash in Hand ₹ 510; Stock-in-Trade (estimated) ₹ 6,000;
Furniture and Fittings ₹ 1,200; Trade Creditors ₹ 4,000; Bank Overdraft ₹
1,000; Ram Prashad stated that he started business on 1st April, 2018 with
cash ₹ 6000 paid into bank but stocks valued at ₹ 4,000. During the year he
estimated his drawings to be ₹ 2,400. You are required to prepare the
statement, showing the profit for the year, after writing off 10% for
Depreciation on Furniture and Fittings.
Ans. :
 OR
* From the following information, ascertain the opening balance of Sundry Debtors and
the closing balance of Sundry Creditors:

Sundry Creditors as on 31st March, 2017 20,600

Sundry Debtors as on 31st March, 2018 37,400

Stock as on 31st March, 2017 26,000

Stock as on 31st March, 2018 24,000

During the year ended 31st March, 2018:

Purchases 1,10,000
Discount allowed by creditors 800

Discount allowed to customers 1,100

Cash paid to sundry creditors 95,000

Bills Payable issued by them 14,000

Bills Receivable received from customers 16,500

Cash received from customers 1,30,000

Bills receivable dishonoured 1,900
 Ans. :

Cost of Goods Sold = Opening Stock + Purchases - Closing Stock

Cost of Goods Sold = 26,000 + 1,10,000 - 24,000 = 1,12,000
Gross Profit = 30

70
× 1, 12, 000 = ₹ 48, 000

Sales = Cost of Goods Sold + Gross Profit

Sales = 1,12,000 + 48,000 = ₹ 1,60,000
Credit Sales = 1,60,000 - 20,000 = ₹ 1,40,000

OR
*
Trial Balance of a bookkeeper shows an excess of debits over credits by ₹ 261. This
difference is placed in a Suspense Account to facilitate books closure. Later on the
following errors were discovered:
i. A credit item of ₹ 349 has been debited to a Personal Account as ₹ 439.
ii. A sum of ₹ 625 written off from fixtures as depreciation has not been
posted to the Depreciation Account.
iii. ₹ 9,000 paid for furniture bought have been charged to the Purchases
Account.
iv. A discount allowed to a customer has been credited to him as ₹ 145 in
place of ₹ 154.
v. A sale of ₹ 594 was posted as ₹ 495 in the Sales Account.
 vi. The total of Returns Inward Book has been added ₹ 10 short.
Pass the Journal entries to correct these errors and prepare the Suspense Account.

Ans. :

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