VIBGYOR HIGH

Annual Examination
SAMPLE PAPER
ACCOUNTANCY
Grade: XI Max. Marks: 80
Date: Time Allowed: 3 hour
________________________________________________________________________

INSTRUCTIONS:

• Answers to this paper must be written on the paper provided separately.

• You will not be allowed to write during the first 15 minutes.
• This time is to be spent in reading the question paper.
• The time given at the head of this paper is the time allowed for writing the
answers.
• The intended marks for the questions or parts of questions are given
alongside the questions.
• Attempt all the questions.
_________________________________________________________________________

Part A: Financial Accounting-I

Q1 Use of common unit of measurement and common format of

[1]
reporting promotes.
a Comparability
b Understandability
c Relevance
d Reliability

Q2 On intra-state purchase of goods, which of the following accounts

[1]
are debited? The options are:
a Input IGST a/c
b Input CGST and Input SGST a/c
c Input IGST and Input CGST a/c
d Input IGST a/c and Input SGST a/c

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Q3 Under Accrual basis of accounting, revenue is recognised when:
a It is received in cash
b It is earned
c Order is received
d Advance is received
OR [1]
Which of the following is not the advantage of Cash basis of
accounting:(No credit policy enterprises)
a Simple
b Scientific
c Objective
d Suitable

Q4 Accounting Voucher is prepared on the basis of source

documents/voucher. On the basis of accounting voucher, recording
[1]
is made followed by posting in the ledger. Identify the correct
sequence out of the following:

a Source document Accounting Voucher Journal Ledger

b Accounting Voucher Source Document Journal Ledger
c Source document Accounting Voucher Ledger Journal
d Journal Accounting Voucher Source Document Ledger

Q5 Match the following

[1]

a A1, B2, C3, D4

b A3, B4, C1, D2
c A2, B1, C4, D3
d A3, B2, C4, D1

Q6 Statement 1: Cash column in the cash book cannot have a credit

[1]
balance

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 Statement 2: Bank overdraft is a liability
Choose the correct option from the following
a Only statement 1 is true
b Only statement 2 is true
c Both statement 1 and statement 2 are true
d Both statement 1 and statement 2 are false

Q7 Assertion (A): When debts written off as bad in the past are
recovered, bad debt recovered a/c is credited and not to Debtors a/c
Reason (R): Debtors a/c is credited when some debtors are written
off as bad
Which of the following is correct?

a Both A and R are correct and R is the correct explanation of A

b Both A and R are correct but R is not the correct explanation of A
c A is True but R is False
d A is False but R is True
OR [1]
Assertion (A): Machine purchased and its installation expenses are
debited to Machinery a/c only
Reason (R): Installation charges are incurred to enhance the
working capacity of the machine
Which of the following is correct?
a Both A and R are correct and R is the correct explanation of A
b Both A and R are correct but R is not the correct explanation of A
c A is True but R is False
d A is False but R is True

Q8 Which of the following is the example of the revenue reserve? [1]

a Profit on redemption of debentures
b Profit on revaluation of fixed assets
c Investment fluctuation fund
d Profit on re-issue of forfeited shares

Q9 A pass book is a copy of [1]

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 a A customer’s account in the bank’s books
b Cash book relating to bank column
c Cash book relating to cash column
d Firm’s receipts and payments

Q10 Which of the following would not affect bank reconciliation? [1]
a Dishonored cheque
b Discount received
c Bank interest
d Cheque not presented

Sales of Rs.10,000 recorded as Rs. 1,000 is an example of: [1]

Q11
a Compensating Error
b Errors of principle
c Errors of omission
d Errors of commission

Q12 Trial Balance might match in spite of presence of: [1]

a Errors of complete omission, Errors of principle
b Errors of complete omission
c Errors of commission
d Errors of principle

Q13 Depreciation is a process of: [1]

a Allocation of cost
b None of the above
c Valuation of asset
d Both valuation of asset and allocation of cost

Q14 Which of the following statements is NOT true about Provisions? [1]
a It is an appropriation of profit
b It is a charge against profits.
c It is shown on the liability side of Balance sheet.
d It is discretionary as a matter of financial prudence

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Q15 Sunil is running a confectionery business. His work is to purchase
flour, sugar, yeast to make biscuits, buns, cakes etc. He purchased
a commercial refrigerator for Rs.200,000 and a secondhand baking
oven for Rs.1,00,000 and immediately spent Rs.5,000 for carriage
and Rs.10,000 on its repairs for increasing the working condition. An
old commercial refrigerator is sold for Rs.1,10,000 Costing
Rs.70,000. The produced biscuits sold for Rs.40,000, Buns for
Rs.30,000 and cakes’ turnover was highest due to festive season
Rs.90,000. The raw material costing Rs.80,000, wages paid to
labour Rs.30,000, Electricity bill is of Rs.10,000. From the above
calculate the following:
a) Capital Expenditure
b) Profit
c) Gain
OR [3]
Anjana started the business of buying and selling of readymade
garments for ladies and kids. She made the initial investment of
Rs.25,00,000. She purchased clothes for Rs.10,00,000 on cash and
Rs.5,00,000 on credit from Hanuman. She purchased Computer and
Printer for Rs.80,000. She sold clothes costing Rs.12,00,000 at 20%
profit, Half of which was on credit. She returned clothes being
defective of Rs.50,000. She withdrew cash of Rs.10,000 and taken
away two pairs of kids clothes for her daughter costing Rs.2000
each. She sold the printer as it was damaged due to negligence of
the operator for Rs.5,000. From the above information, calculate the
following:
a) Drawings
b) Closing Stock
c) Revenue from operations

Identify and explain the accounting principles/concepts/conventions

Q16 [3]
followed or violated in the following situations:
a Malhotra and sons are running a readymade garments business.
The accountant adopts Written down value method of depreciation
year after year for their machines.

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 b On 10/3/2023, a fire broke out in the premises of Raghav Ltd. And
destroyed a part of its plant and machinery. Due to this a sharp
decline in production is expected for the next 6 months. The
company did not show this fact in the report of the company for the
year ended 31/3/2023

Q17 Explain briefly the two bases of accounting. [3]

Q18 Open a T-Shape A/c of a creditor Ankur and post the following
transactions on the proper side :
1) Purchased goods from Ankur Rs. 20,000
2) Paid to Ankur Rs.12,500 [3]
3) Purchased goods from Ankur Rs. 8,000
4) Goods returned to Ankur Rs. 1,000
5) Paid to Ankur Rs. 10,000

Q19 Pass necessary Journal entries in the books of Rajhans, Surat

(Gujarat) assuming CGST and SGST @ 6% each and IGST @12%
1) Sold to Ram, goods of the list price Rs. 50,000 less 20% trade
discount
2) Purchased goods of list price Rs. 25,000 from Arav of Mumbai
less 20 % trade discount
3) Gave an order to Ram Lal and Sons to supply goods of list price
Rs. 25,000 at a trade discount of 20%
4) Received Rs. 5,000 for Accrued interest on investment directly by
bank.

OR [4]

Enter the following transactions in the appropriate subsidiary books.

Accounts are to be closed on 31st Matrch,2023.
Jan 1 Purchased from Anil Goods of the list Price of
Rs.70,000 at 10% Trade Discount.
Jan 4 Returned to Anil Goods at List Price Rs.8,000.
Jan 10 Sold to Disha Goods worth Rs.80,000
Jan 15 Purchased goods of List Price Rs.1,00,000, Trade

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 Discount 10% from Mohit for Cash .
Jan 18 Sold to Anuj Goods valued Rs.32,000
Jan 21 Purchased goods from Gaurav for Rs.80,000,
Trade Discount 10%
Jan 25 Furniture purchased on credit from Ravi Rs. 25,000.

Q20 Prepare Bank Reconciliation Statement of Dhairya as on 31st July,

2023:
(i) Debit balance as per Bank Pass Book as on the date is Rs. 5,100.
(ii) Cheque dishonoured and debited by bank but not given effect to
it in the ledger Rs.6,800.
(iii) Interest on overdraft excess credited in the ledger Rs.800.
(iv) Wrongly credited by the bank to account, deposit of some other
party Rs.700.

OR [4]
From the following information provided by Jayesh, Prepare Bank
Reconciliation Statement as on 30th June, 2023:
(i) Credit balance as per Bank Cash Book as on the date is
Rs.30,000.
(ii) Out of the total cheques of Rs.1,00,000 issued, cheques
aggregating Rs.40,000 were debited in June, Cheques aggregating
Rs.30,000 were debited in July and the rest have not yet been
debited.
(iii) Payment side of cash book is undercast by Rs.3,000.
(iv) A cheque for Rs. 7500 drawn on his savings account has been
shown as drawn on his current account.

Q21 B & Company purchased Machinery on 1st April, 2019, for Rs

54,000 and spent Rs 6,000 on its installation. On 1st December,
2020, it purchased another machine for Rs 30,000. On 30th June
2021, the first machine purchased on 1st April, 2019, is sold for Rs [4]
36,000 and on the same date it purchased new machinery for Rs
80,000. Depreciation was provided on machinery @ 10% p.a. on
Original Cost Method annually on 31st March. Give the machinery

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 account for three years.

Q 22 Record the following transactions in double column cash book of Mr.

Rakesh Verma and balance it.
Sept. 01: Balance of cash ₹ 22,000 and Bank overdraft ₹ 2,500.
Sept. 06: Received cheque on October 28th, for ₹ 4,000 from
Gaurav sent into the bank.
Sept. 10: Bank has collected and deposited: Interest of ₹ 6,000;
Dividend of ₹ 8,000. [6]
Sept. 16: Bank has paid several payments on its due date:
Insurance premium of ₹ 3,000 and School fees of the child of
Rakesh Verma ₹ 5,000. Sept. 24: Cash deposited into the bank ₹
12,000.
Sept. 29: Sold goods (costing ₹ 25,000) at 20% profit for cash.

Q23 Trial balance of M/s Rathi Brothers did not agree and the accountant
put the difference to suspense account. He discovered the following
errors:
(a) Sales return book overcast by ₹ 800.
(b) Purchases return to Sahu ₹ 2,000 were not posted.
(c) Goods purchased on credit from Narula ₹ 4,000 though taken
into stock, but no entry was passed in the books. [6]
(d) Installation charges on new machinery purchased ₹ 500 were
debited to sundry expenses account as ₹ 50.
(e) Rent paid for residential accommodation of Mohan (the
proprietor) ₹ 1,400 was debited to Rent account as ₹ 1,000.
Rectify the errors and prepare suspense account to ascertain the
difference in trial balance.

Q24 On 1/7/2020, AB Enterprises purchased a machine for Rs.1,00,000.

On 1/10/2020, Second machine was purchased for Rs.60,000.
Another machine was purchased for Rs. 80,000 on 1/10/21. On
30/9/22, half of the machine purchased on 1/7/20 was sold for
Rs.30,000. Prepare machinery a/c for the accounting year 2020-21

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 to 2022-23 assuming that the accounts are closed on 31st March
each year and depreciation was charged @10% p.a. by written
down value method.
OR [6]
Deluxe company purchased a furniture worth Rs 80,000 on 1st April
2009 and Additional Furniture on 1st October 2009 worth Rs 60,000.
They charged depreciation at 15% p.a. on Fixed Instalment basis.
On 1st October 2011 they sold out furniture for Rs 60,000 which was
purchased on 1st April 2009.
Prepare Furniture Account and Depreciation Account for the year
2009-10, 2010-11 and 2011-12 assuming that the financial year
closes on 31st March every year.

Part B – Financial Accounting - II

Q25 Calculate Gross profit from the following:

I. Gross Profit is 25% on Sales [1]
II. Cost of Goods Sold is Rs.3,60,000
a 1,20,000
b 90,000
c 1,80,000
d 72,000

Q26 Closing stock is generally valued at ………….? [1]

a Cost Price
b Market Price
c Cost price or Market price whichever is higher
d Cost price or Market price whichever is lower

Q27 Goodwill is a- [1]

a Fixed Asset
b Current Asset
c Fictitious Asset
d None of these

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Q28 Depreciation is necessary to calculate:

a Correct Net profit

b Net financial position

c Tax

d None of them

OR [1]
Outstanding Expenses are related to-

a Current year
b Next year
c Last year
d None of these.

Q29 Under Single entry system, Profit is calculated as follows: [1]

a Closing capital - additional capital + drawings - Opening capital
b Closing capital + additional capital + drawings - Opening capital
c Closing capital + additional capital - drawings - Opening capital
d Closing capital - additional capital – drawings - Opening capital

Q30 Net profit of a firm before charging manager’s commission is Rs

21000.if the manager is entitled to 5% commission after charging [1]
such commission how much manger will get as commission ?
a Rs 1000
b Rs1050
c Rs 990
d none of these

Q31 Draw the Balance Sheet of Ritendra Kumar as at 31st March, 2023
from the following information in the Order of permanence:
Cash in Hand Rs. 11,200; Sundry Creditors Rs. 28,800; Bills
Payable Rs. 3,500; Bills Receivable Rs. 5,300; Sundry Debtors Rs. [4]
18,000. Machinery as on 1st April, 2019 Rs. 85,000 and
Depreciation provided for the year Rs. 8,500; Furniture and Fixtures
as on 1st April, 2019 Rs. 21,000 and Depreciation provided for the

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 year Rs. 2,100; Closing Stock Rs. 15,400. Proprietor’s Capital
Account Rs. 90,000; His drawings during the year Rs. 8,000. Net
Profit as per Profit and Loss Account Rs. 31,000.

Match Column A with the Correct answer in Column B:

Q32
Column A Column B

1. Added to Expenses (a) Interest on Capital

2. Deduced from Expenses (b) Depreciation

[4]

3. Deducted from Assets (c) Outstanding Expenses

4. Added to capital (d) Prepaid Expenses

Q33 Krishan started his business on 1st April, 2018 with a Capital of
Rs.1,00,000. On 31st March, 2019, his assets were:

Rs
Cash 3,200
Stock 34,800
Debtors 31,000 [4]
Plant 85,000

He owed Rs.12,000 to sundry creditors and Rs.10,000 to his brother

on that date. He withdrew Rs.2,000 per month for his personal
expenses. Ascertain his profit.

Q34 From the following balances taken from the books of Kiran, prepare
Trading and Profit & Loss a/c for the year ended 31/3/2023

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 Trial Balance as at 31/3/2023

Adjustments:
I. Closing stock was valued at cost Rs.1,40,000 (Market value
Rs.1,35,000)
II. Unexpired insurance Rs.3,000
III. Salaries for the month of March 2023 were still unpaid.
IV. Depreciate Machinery by 10% p.a. and Furniture by 24% p.a.

OR [6]
From the following balances taken from the books of Tarun, prepare
Profit & Loss a/c and Balance Sheet for the year ended 31/3/2023
Trial Balance as at 31/3/2023

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Adjustments:
I. Gross Profit Rs.3,39,000
II. Depreciate machinery @10% p.a. WDV Method (Diminishing
Balance method)
III. Prepaid insurance Rs.4,000
IV. Goods withdrawn by Tarun for personal use Rs.12,000
V. Outstanding Salaries Rs.16,000
VI. Closing Stock Rs. 1,35,000
*****

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