Niraj Jha

Dc chowk & Sector - 16

MID TERM - 2ND PAPER

Class 11 - Accountancy
Time Allowed: 3 hours Maximum Marks: 80

1. Which of the following transactions is of a financial character and will be recorded in the business? [1]
A. Goods were taken from the business by the proprietor for her personal use
B. Interviewing the candidates for employment
C. Sale of Household furniture Rs 5,000
D. Received an order for sales of goods

a) Only D is correct b) Only A is correct

c) Only C is correct d) Only B is correct

2. Which of the following is a limitation of accounting? [1]

a) Replacing Memory
a b) Evidence in court
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c) Facilitates loan d) Window Dressing
3. Financial Position of the business is determined by: [1]

a) Management Accounting b) Financial Accounting

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c) All of these d) Cost Accounting

4. Assertion (A): Prepaid expenses are a part of current assets. [1]
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Reason (R): Current assets involves assets which can be converted into cash within one year as well as assets
for which service or benefit will be available against these assets without further repayment.

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.

5. Due to which principle, contingent liabilities are shown in the balance sheet? [1]

a) Principle of materiality b) Going concern concept

c) Principle of full disclosure d) Dual aspect principle

6. Which of the following methods need not remain consistent from year to year? [1]

a) Method of stock valuation : LIFO, FIFO or b) Method of depreciation: Straight line or

HIFO Written down value

c) None of these d) Both Method of depreciation: Straight line

or Written down value and Method of stock
valuation : LIFO, FIFO or HIFO
7. A principle which assumes that a business enterprise will not be liquidated in the near future: [1]

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 a) Accounting entity b) Prudence

c) Going concern concept d) Accounting period

8. Assertion (A): Accounting Standards are written statements specifying uniform rules and practices for preparing [1]
financial statements.
Reason (R): Accounting Standards are formulated by Companies Act, 2013.

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.

9. Assertion (A): Only cash transactions are recorded under cash basis of accounting. [1]
Reason (R): Cash basis of accounting does not give a true and fair view of profit or loss of the business because
it ignores outstanding expenses, prepaid expenses, accrued incomes etc.

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.

10. Cash sales are recorded in the ________. [1]

a) Purchase book b) Cash book

c) pass book a d) Sales book

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11. On 1st April, 2023, balance of cash column of cash book was ₹ 40,000. After receiving interest ₹ 800 from bank, [1]
withdrawing ₹ 8,000 from bank and after purchasing goods for ₹ 15,000 at 10% cash discount, the balance of
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cash will be:

a) ₹ 33,000 b) ₹ 35,300
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c) ₹ 34,500 d) ₹ 19,300
12. Which of the following is a liability? [1]

a) Rent Payable b) Stock

c) Interest Received d) Furniture

13. Current Liabilities do not include [1]

a) Bills Payable b) Prepaid Insurance

c) Outstanding Salaries d) Sundry Creditors

14. From the following information, calculate the total assets of the business Capital during the period = ₹ 80,000; [1]
Creditors = ₹ 60,000, Revenue during the period = ₹ 1,00,00 Expenses during the period = ₹ 80,000; Value of
unsold stock = ₹ 20,000

a) ₹ 1,60,000 b) ₹ 80,000

c) ₹ 1,80,000 d) ₹ 1,40,000
15. A ________ is prepared, when a party is to be given a credit for reasons other than credit purchase. [1]

a) credit note b) Oral

c) written note d) debit note

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16. Credit purchase of furniture is recorded through which voucher? [1]

a) Cash voucher b) Debit voucher

c) Transfer voucher d) Credit voucher

17. Debit what comes in and Credit what goes out is the rule of: [1]

a) Personal Account b) Nominal Account

c) Capital Account d) Real Account

18. What will be the journal entry if goods of ₹ 20,000 are purchased for cash from Surbhi? [1]

a) Surbhi A/c Dr. 20,000 b) Purchases Dr. 20,000

To Cash A/c 20,000 To Surbhi A/c 20,000

c) Purchases Dr. 20,000 d) Goods A/c Dr. 20,000

To Cash A/c 20,000 To Surbhi A/c 20,000

19. Sales book is used to record: [1]

a) All credit and cash sales b) Credit sale of goods

c) All credit sales d) Credit sale of asset

20. Match the following: a [1]
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Column I Column II

(a) Debit note (i) Purchase book

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(b) Credit note (ii) Principle book/Journal book

(c) Credit sale of asset (iii) Purchaser

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(d) credit purchase of goods (iv) Seller

a) (a) - (iii), (b) - (i), (c) - (ii), (d) - (iv) b) (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i)

c) (a) - (i), (b) - (iv), (c) - (ii), (d) - (iii) d) (a) - (iii), (b) - (ii), (c) - (iv), (d) - (i)
21. Give the difference between Book-keeping and Accounting on the basis of stage, special skills and nature of the [3]
job.
22. Give any three points distinguishing between a journal and a ledger? [3]
23. During the financial year 2022-23, Amit had cash sales of ₹ 3,90,000 and credit sales of ₹ 1,60,000. His [3]
expenses for the year were ₹ 2,70,000, out of which ₹ 80,000 is still to be paid. Find out the net income
according to Accrual Basis of Accounting.
24. Open ‘T’ shape account for Machinery and write the following on the proper side: [3]

1. Machinery purchased for 5,00,000

2. Machinery sold 1,20,000

3. Machinery discarded 50,000

4. New Machinery purchased 2,00,000

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 5. Machinery destroyed 40,000

OR
Which transactions will:
i. Decrease the Assets and Decrease the Capital.
ii. Increase the Assets and Increase the Liabilities.
iii. Increase the Assets and Decrease another Asset.
iv. Decrease the Assets and Decrease the Liabilities.
25. Write up a T shape Account of Gopal, a debtor, from the following transactions: [3]

i. Goods sold to Gopal 80,000

ii. Cash received from Gopal 30,000

iii. Discount allowed to Gopal 2,000

iv. Goods sold for Cash to Gopal 10,000

v. Cheque received from Gopal 20,000

vi. Sales Return by Gopal 5,000

26.
a
Prepare the debit voucher for furniture purchased for Rs 15,000 from Globe Furniture Mart on 2nd January [3]
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2007.
27. Journalise the following transactions in the books of Gajendra of Punjab: [4]

Sold goods to Kapil of Punjab at the list price ₹ 20,000 less trade discount 10% add CGST and SGST @
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(i)
9% each., and allowed cash discount 5%. He paid the amount immediately.

Supplied goods costing ₹ 6,000 to Manish of Darjeeling issued invoice at 10% above cost less 5% trade
(ii)
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discount plus IGST @ 18%.

Goods valued at ₹ 2,500 distributed from stock as samples, as part of an advertising campaign. These
(iii)
goods were purchased paying CGST and SGST @ 9% each

Sold goods costing ₹ 1,00,000 to Ankit of Punjab at a profit of 20% on sales less 20% Trade Discount
(iv)
plus CGST and SGST @ 9% each.

28. Correct the following Trial Balance: [4]

Debit Balance ₹ Credit Balance ₹

Opening Stock 1,02,600 Debtors 45,000

Returns Outward 48,000 Carriage Outwards 15,000

Salaries 36,000 Capital 1,65,600

Creditors 84,000 Machinery 54,000

Bank 1,35,000 Returns Inward 9,000

Carriage Inwards 18,000 Insurance Claim Received 12,000

Rent Received 9,000 Trade Expenses 18,000

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 Discount Allowed 6,000 Sales 4,20,000

Purchases 3,00,000 Building 60,000

Other Liabilities 60,000

7,98,600 7,98,600

29. From the following information, prepare an Analytical petty Cash Book: [4]

2023 ₹

April 1 Received for cash payment 20,000

April 2 Paid for postage 1,600

April 5 Paid for stationery 1,000

April 12 Paid for wages 800

April 16 Paid for carriage 600

April 20 Paid for conveyance 880

April 25 Paid for travelling expenses 3,200

April 28 Paid for office cleaning 400

April 29 Paid for courier a 800

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April 30 Sent registered notice to landlord 190

30. Prepare a bank reconciliation statement from the details given below and ascertain the balance as per Mrs [6]
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Geeta's cash book as on 31st December, 2013.

i. Bank overdraft balance as per pass book Rs 3,000.
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ii. Cheques issued to creditors amounting to Rs 5,000 in the month of December, 2013 of which cheques worth
Rs 750 were presented to the bank upto 31st December, 2013.
iii. A cheque of Rs 1,500 received from Shyam was deposited in the bank account on 26th December, 2013 but
no entry was passed in the cash book. The same was collected and credited to Mrs Geeta account on 29th
December, 2013.
iv. A cheque of Rs 500 received from Raju on 20th December, 2013 was recorded in the discount column of the
cash book and was not banked.
v. The pass book showed that the bank had collected Rs 1,000 as interest on government securities. The bank
had charged interest Rs 125 and bank charges 150. There was no entry in the cash book for the same.
31. From the following transactions, prepare Cash Book with Cash and Bank Columns: [6]

2023 ₹

May
Cash in hand 4,800
1

Bank Overdraft 30,400

May
Fresh Capital introduced 20,000
2

May Deposited into Bank 15,000

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 3

May
Sold goods to Manoj on Credit 6,200
4

May An amount of ₹ 4,200 due from Arvind written off as bad debts in the previous year, now
5 recovered.

May
Withdrew from the bank for the payment of Life Insurance Premium 3,000
6

May Received a cheque from Manoj for ₹ 6,000 in full settlement of his account and deposited the
8 same into the Bank.

May
Sold goods to Vishal on Credit. 30,000
10

May
Received a cheque for ₹ 28,000 from Vishal in full settlement.
12

May
Cheque received from Vishal sent to Bank
15

May
a
Vishal's cheque returned by Bank dishonoured. Bank charged ₹ 25 on this cheque.
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18

May
Received a cheque of ₹ 6,800 from Vinayak which was endorsed to Ankit on 23rd May.
20
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May
Withdrew cash from Bank ₹ 5,000 for paying gift to his daughter on her birthday.
25
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May Bought goods from Mehta General Store for ₹ 10,000 on credit and they allowed us trade
26 discount of 25%.

May
Paid to Mehta General Stores in cash in full settlement 7,000
28

May
Sale of old machinery, payment received in cash ₹ 7,700.
28

May
Paid Salary by cheque ₹ 1,500. Paid Rent in cash ₹ 2,200.
30

May
Paid into Current Account the entire balance after retaining ₹ 5,000 at office.
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32. Prepare Accounting Equation of the following transactions and also the Balance Sheet: [6]

1. Manish started business with cash. 1,00,000

Opened a Bank Account and transferred ₹ 4,00,000 from his Savings Account

2. Purchased a building from Sanjay for ₹ 12,00,000 paid by taking a loan from SBI. 10,00,000

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 3. Paid interest on loan ₹ 20,000 and instalment of ₹ 1,00,000.

4. Purchased goods from Rahul on credit. 1,00,000

5. Goods returned to Rahul costing 20,000

6. Sold goods costing ₹ 40,000 for ₹ 50,000 on credit to Laxman.

7. Took goods from business for personal use. 10,000

8. Accrued interest. 5,000

9. Commission received in advance. 20,000

10 Cash received from Laxman. 10,000

33. Journalise the following transactions in the books of M/s. R.P. & Co.: [6]
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.

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vii. Sold goods to Arun of list price of ₹ 30,000 at 10% trade discount against cash.
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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.
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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.
34. From the following information of Kapil, Dibrugarh, prepare Purchases Book and post in ledger: [6]
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2023

April 1 Purchased from Reliance India Ltd., Kharagpur;

30 Colour T.Vs @ ₹ 15,000 each, less Trade Discount @ 10% plus Freight charges ₹ 2,000.

April 15 Purchased from LG India Ltd., Dibrugarh:

10 colour T.Vs @ ₹ 20,000 each less Trade Discount @ 10%.

April 20 Purchased from Theme India Ltd., Delhi:

10 theme systems @ ₹ 10,000 each less Trade Discount @ 15%.

April 30 Purchased from Reliance India Ltd., Kharagpur:

5 washing machine @ ₹ 15,000 each less Trade Discount @ 20%, Freight charges ₹ 1,000.

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