Year 2019-20

ACCOUNTANCY
CLASS - XI
Time: 3 Hours 80 Marks

General Instruction
1. All questions are compulsory.
2. Show your working notes clearly.

Part A
1. Which of the following is not a business transaction?
(a) Bought furniture of 10,000 for business
(b) Paid for salaries of employees 5,000
(c) Paid sons fees from her personal bank account 20,000
(d) Paid sons fees from the business 2,000 [1]
2. The art of recording, classifying and summarizing is called:
(a) Journalizing (b) Accounting
(c) Bookkeeping (d) Record Keeping [1]
3. Double Entry means:
(a) Entry for the two aspects of books
(b) Entry at two dates
(c) Entry in two aspects of transaction
(d) All of the above [1]
4. Cash or goods taken away by the proprietor is called
(a) Drawings (b) Sales
(c) Charity (d) Expense [1]
5. The liability arising from the purchase of goods on credit is called

(a) Creditors (b) Accounts Receivable

(c) Loan (d) Payable expenses [1]
6. Provision is created for:
(a) Known Liability
(b) Unknown Liability
(c) Strengthening Financial Position
(d) Distribution of Dividend

7. Distinction between an expenditure whose benefit will be

for a long period and whose benefit for a short period of
say up to one year, is made under which of the following.
(a) Accounting Entity (b) Going concern Entity
(c) Money Measuring Entity (d) Accounting Period [1]
8. Anticipate no profits and provide for all possible losses. This
is essence of which of the following accounting principles:
(a) Dual Aspect Principle (b) Materiality Principle
(c) Consistency Principle (d) Conservatism Principle

9. A bill of `12,500 drawn by Shyam is accepted by Ram &

Shyam gets its discounted @ 12% p.a. due 3 months
hence. The discounting charges borne by Shyam is :
(a) ` 375 (b) ` 1,500
(c) ` 250 (d) ` 1,000 [1]

10. The cost of the asset is 60000 and depreciated at 12% p.a.
using the written down method, at the end of three years, it
will have a net book value of -
(a) ` 40888.32 (b) ` 43888.90
(c) ` 45322 (d) ` 40000 [1]
11. Unfavorable balance means?
(a) Credit balance in the cash book
(b) Credit balance in Bank statement
(c) Debit balance in cash book
(d) Debit balance in petty cash book [1]
12. What are the taxes levied on an intra-State Supply?
(a) CGST (b) SGST
(c) CGST and SGST (d) IGST [1]
13. Which of the following item is not included in the Cash Book?
(a) Purchases of ` 10,000
(b) Sales of ` 5,000
(c) Received cash for Salman ` 2,000
(d) Credit sales of ` 22,000
14. Disagreement of trial balance includes which errors?
(a) Errors of omission
(b) Wrongly totaling of subsidiary books
(c) Compensating errors
(d) a and c only [1]
15. Sale of goods to Mr. Amir is wrongly debited to Umair
A/c(debtor) instead of Amir A/c(debtor), this is an example?
(a) Error of principle (b) Error of omission
(c) Error of commission (d) Error of original entry [1]
16. Retirement of a bill of exchange means-
(a) Cancellation of bill (b) Premature payment of bill
(c) Discounting of bill (d) Endorsement of bill [1]
17. Choose the correct answer from the options given below:

What will be the value of an asset at the end of fifth year from its
date of purchase, if the asset was purchased for ` 75,000 with
salvage value ` 5,000 at the end of its useful life of 7 vears? The
depreciation would be charged as per Straight Line Method.
(a) ` 26,000 (b) ` 40,000
(c) ` 47,000 (d) ` 75,000 [1]
18. Show Accounting Equation on the basis of the following
transactions:-
(a) Mr. Ajay started business with cash ` 80,000, Inventory `
50,000 and Machinery ` 5,000.
(b) Purchased furniture for cash ` 4,000 and purchased
goods from Naveed store of ` 5,000
(c) Sold goods to Rashid on credit basis for ` 8,000,
costing ` 6,500.
(d) Open a bank account and deposited ` 40,000
(e) Sold goods for cash ` 15,000, which is 20% above cost.
(f) Paid rent and salaries for the month ` 4,000 and wages
outstanding for month ` 1,000. [3]
OR

Explain the following Accounting Terms

(a) Current Assets
(b) Drawings
(c) Deferred Revenue Expenditure
19. Explain any two of the followings
(a) Going Concern Concept
(b) Accounting Period concept
(c) Duality Principle [3]
OR
Explain four limitations of Financial Accounting. [4]
20. Journalise the following transactions in the books of Harpreet Bros.
(a) Goods worth ` 2,000 were used by the proprietor.
(b) Charge depreciation @ 10% p.a for two month on
machine costing ` 30,000.
(c) Provide interest on capital of ` 1,50,000 at 6% p.a. for 9 months.
(d) Rahul become insolvent, who owed is ` 2,000 a final dividend
of 60 paise in a rupee is received from his estate. [4]
21. From the following particulars prepare a bank
reconciliation statement showing the balance as per cash
book on December 31, 2018.
(a) Two cheques of ` 2,000 and ` 5,000 were paid into bank
in October, 2018 but were not credited by the bank in
the month of December.
(b) A cheque of ` 800 which was received from a customer was
entered in the bank column of the cash book in December
2016 but was omitted to be banked in December, 2018.
(c) Cheques for ` 10,000 were issued into bank in November
2016 but not credited by the bank on December 31, 2018.
(d) Interest on investment ` 1,000 collected by bank
appeared in the passbook.
Balance as per Passbook was ` 50,000. [4]

22. Prepare double column cash book from the following

transactions for the year August 2018:
01 Cash in hand ` 17,500
02 Cash at bank ` 5,000
03 Purchased goods for cash ` 3,000
05 Received cheque from Naresh ` 10,000
08 Sold goods for cash 7,000
10 Naresh’s cheque deposited into bank
12 Purchased goods and paid by cheque ` 20,000
15 Paid establishment expenses through bank ` 1,000
18 Cash sales ` 7,000
20 Deposited into bank ` 10,000
24 Paid trade expenses ` 500
27 Received commission by cheque ` 6,000
29 Paid Rent ` 2,000
30 Withdrew cash for personal use ` 1,200
31 Salary paid ` 6,000
 OR

Enter the following transactions in purchases book of

Rajendra Electric Store, Delhi

2018
June 3 Purchased on credit from Rama Electric
Store, Faridabad.
200 Tubelights @ 50 each
50 table fans @ 600 each
20 Desert Coollers @ 2000 each
Trade discount 15%
June 12 Purchased from Newlights Traders, New Delhi
for cash 40 Doz. Bulb @ 100 per Doz.
40 celling Fans @ 1200 each
10 room coolers @ 1500 each
Trade Discount 10%
June 20 Purchased from Litstar ind. On credit
2 Doz. Murcury Bulb @ 50 each
1 Doz. Hologen Bulb @ 100 each
50 Doz. Bulb @ 120 per Doz.
100 Box jagmag Bulb @ 50 per box
Trade discount 20% Packing [6]
23. The following balances appear in the books of Crystal Ltd, on
April 01, 2018 Machinery account on ` 15,00,000 Provision for
depreciation account ` 5,50,000 On April 01, 2018 a machinery
ich was purchased on April 01, 2015 for ` 2,00,000 was sold for
` 75,000. A new machine was purchased on Oct 01, 2018 for
` 6,00,000. Depreciation is provided on machinery at 20% p.a.
on Straight line method and books are closed on March 31
every year. Prepare the machinery account and provision for
depreciation account for the year ending March 31, 2018.
OR
 Vinod Ltd., purchased a Plant on 1st April, 2015 for ` 15,000. It
purchased another plant on 1st October, 2015 costing ` 20,000
and on 1st July, 2006 costing ` 30,000. On 1st January, 2017 the
Plant purchased on 1st April, 2015 became useless and was sold
for ` 2,000. Show Plant Account charging 10% p.a. depreciation
by fixed instalment method for three years. The plant purchased
on 1st October, 2005 was sold for ` 8,000 on 1st January, 2008.
Accounts of the company are closed on 31st March each year.
[6]
24. Pass journal entries in the books of A.
A sold goods to B for ` 10,000 on December 10, 2018 and drew a
bill for the same amount payable after 3 months. The bill was
accepted by B which was later discounted for ` 9,500 by A on
January 02, 2019. On the due date bill was dishonoured. B paid `
4,200 immediately including ` 200 as interest and accepted a new
bill for ` 6,000. The new bill was endorsed by A to C, one of his
creditor for ` 6,000. The new bill was duly met by B.

Name the process of transferring entries from the journal to their

respective accounts in the ledger. [8]
Part B
25. When closing stock is given in trial balance, where it will be recorded:

(a) Trading account only

(b) Balance sheet only
(c) Owner’s equity only
(d) Both Trading account and Balance sheet [1]

26. If opening capital is ` 60,000, drawings ` 5,000, capital

introduced during the period ` 10,000, closing capital `
90,000. The value of profit earned during the period will be :
(a) ` 20,000 (b) ` 25,000
(c) ` 30,000 (d) 40,000 [1]
27. Which of the following is not the type of Accounting software?
(i) Readymade Software
(ii) Tailor-made Software
(iii) Human-made Software
(iv) Customised Software [1]
28. Distinguish between a manual and Computerised Accounting
System. [3]

29. From the following balances extracted from the books of

M/s Ahuja and Nanda. Calculate the amount of:

(a) Cost of goods available for sale (b) Gross Profit

Opening stock 25,000, Credit purchases 7,50,000, Cash purchases 3,00,000, Credit
sales 12,00,000, Cash sales 4,00,000, Wages 1,00,000, Salaries 1,40,000, Closing
stock 30,000, Sales
return 50,000, Purchases return 10,000. [4]
OR

State with reason, which of the following expenditure is

Capital Expenditure, Revenue Expenditure or Deferred
Revenue Expenditure:-
(i) Expenditure on installation of a New Machinery.
(ii) Repair expenditure on repair of truck.
(iii) Wages paid for construction of a building
(iv) Huge amount spent on distribution of free samples for publicity.

30. “A computer system is capable of performing many things”. Explain

any four capabilities of a computer system [4]
(OR)

What is Accounting Information System (AIS)? List any

four features of good Accounting Information System.

31. From the following information, prepare the bills receivable account
and total debtors account for the year ended March 31, 2019.
 Opening balance of debtors 1,80,000
Opening balance of bills receivable 55,000
Cash sales made during the year 95,000
Credit sales made during the year 14,50,000
Return inwards 78,000
Cash received from debtors 10,25,000
Discount allowed to debtors 55,000
Bills receivable endorsed to creditors 60,000
Cash received (bills matured) 80,500
Bad Debts 10,000
Closing balance of bills receivable on March 31, 2019 ` 75,500
OR
State Difference between
(i) Statement of Affairs and Balance Sheet (any three).
(ii) Single entry System and Double Entry System. (any three) [6]
32. From the following Trial Balance of M/s. Vinod and Sons as on
31st March 2019, prepare Trading and Profit & Loss Account and
Balance Sheet. [8]
Particulars (`) Particulars (`)
Office expenses 300 Stock (opening) 9,000
Selling expenses 11,100 Plant & Machinery (1.4.2018) 20,000
General expenses 1,000 Plant & Machinery 5,000
(addition 1.10.2018)
Sundry debtors 20,600 Drawings 6,000
Furniture and Fixtures 5,000 Capital 75,000
Return inwards 13,000 Reserve for doubtful debts 800
Printing and stationery 400 Rent for Premises Sublet 1,600
Rent, Rates and taxes 4,600 Insurance charges 700
Sundry creditors 15,000 Administrative expenses 11,000
Sales 1,31,000 Cash in hand 8,500
Return outwards 1,000 Cash at Bank 18,200
Purchases 90,000
Adjustments: (i) Stock in hand
at the end ` 14,000.
(ii) Write off ` 600 as bad debts.
(iii) Create 5% provision for bad and doubtful debts.
(iv) Depreciate furniture and fixtures at 5% p.a. and Plant
& Machinery at 20% p.a
(v) Insurance prepaid was ` 100.
(vi) A fire occurred in the godown and stock of the value of
` 5,000 was destroyed. It was insured and the insurance
company admitted full claim.
(OR)
Explain Single Entry System of Accounting and its features.