SIDDHARTH CLASSES

XI ACCOUNTANCY 80 MARKS

GENERAL INSTRUCTIONS:
1. This question paper comprises two parts - A and B. There are 32 questions in the question paper. All questions are
compulsory.
2. Question number 1 to 13 and 22 to 28 are very short answer type questions carrying 1 mark each
3. Question number 14 and 29 are short answer type - I questions carrying 3 marks each
4. Question number 15 to 18 and 30 are short answer type - II questions carrying 4 marks each
5. Questions number 19 to 20 and 31 are also long answer type - I questions carrying 6 marks each
6. Questions numbers 21 and 32 are long answer type - II questions carrying 8 marks each

PART - A : FINANCIAL ACCOUNTING - I

1. Which of the following can be converted into cash within a very short period of time?
[a] Fixed Assets [b] Current Assets [c] Liquid Assets [d] Intangible Assets

2. _________ is increased or decreased by the result of business operations.

3. Give the accounting equation based on dual aspect concept.

4. What will be the entry for: Sold goods for cash of the list price of Rs.20,000 at 10% Trade discount and 3% cash discount.
[a] Cash A/c Dr. 17,460
Discount Allowed A/c Dr. 540
To Sales A/c 18,000
[b] Cash A/c Dr. 17,640
Discount Allowed A/c Dr. 2,540
To Sales A/c 20,000
[c] Sales A/c Dr. 17,460
Discount Allowed A/c Dr. 540
To Sales A/c 18,000
[d] Cash A/c Dr. 17,640
Discount Allowed A/c Dr. 2,540
To Sales A/c 20,000

5. ‘Personal transactions of the owner are not recorded in the books of the business unless it involves inflow or outflow of
business funds’. To which accounting principle the above phrase is related?

6. __________ means the first journal entry of the accounting year passed to record various assets and liabilities in the
beginning of the year.
[a] Opening Entry [b] Starting Entry [c] First Entry [d] Initial Entry

7. Give an example of a transaction that will not have the effect of increasing an asset and decreasing another asset.

8. Window dressing of Accounts means:

[a] Presenting accounts in beautiful manner
[b] Showing more losses to avoid Income Tax
[c] Showing more profits to attract Investment
[d] All of the above

9. Which of the following transactions will become part of Bank Reconciliation Statement?
[a] Amount wrongly debited by Bank Rs.5,000
[b] Amount wrongly credited by Bank Rs.500
[c] Both [a] and [b]
[d] None of the above

10. Write one objective of providing depreciation

11. Errors which are committed due to wrong posting of transactions, wrong detailing or balancing of accounts etc are called
_________

12. Varun has sold his old computer to Tarun for cash and has debited Tarun’s Account and Credited Sales Account. How will
the said entry be rectified?
[a] Debit Purchase Account as well as Tarun’s Account and Credit Cash Account as well as Computer Account
[b] Debit Computer Account as well as Cash Account and Credit Tarun’s Account as well as Computer Account
[c] Credit Sales Account as well as Cash Account and Debit Tarun’s Account as well as Computer Account
[d] Debit Sales Account as well as Cash Account and Credit Tarun’s Account as well as Computer Account

13. Direct collections received by the bank on behalf of the customers would:
[a] increase the balance as per the cash book
[b] Decrease the balance as per the cash book
[c] Increase the balance as per the pass book
[d] Decrease the balance as per the pass book

14. Why is the consistency principle important?

OR
Explain in brief, going concern assumption.

15. From the following information, prepare Bank Reconciliation Statement as on 31st March, 2016:
Rs.
(i) Bank overdraft as per Cash Book 1,70,000
(ii) Directly deposited to the bank by Sudhir (customer) 12,000
(iii) Cheques issued but not presented for payment 83,000
(iv) Cheques entered in Cash Book but not banked 42,000

16. M/s Vinod & Sons showing following transactions, prepare accounting equation for the same:
(i) Commenced business with cash Rs.3,00,000
(ii) Purchased goods for cash Rs.90,000
(iii) Purchased machinery on credit Rs.1,25,000
(iv) Purchased old car for personal use Rs.1,00,000

17. How will you make posting into ledger from a Simple Cash Book?

18. Journalise the following transactions in the books of Kamal : Ganesh informs Kamal that Sahani’s promissory note for
Rs.750 has been dishonoured and that noting charges Rs.10 has been paid. Kamal sends Ganesh a cheque and withdraws the
Promissory note.
OR
Rectify the following errors:
(i) Goods withdrawn by proprietor for personal use Rs.2,000 were debited to trade expenses account.
(ii) Sales returns book overcast by Rs.400
(iii) Credit sales to Mohan Rs.11,000 were recorded in purchases book
(iv) Credit purchases from Rohan Rs.6,500 were not posted to his account

19. Explain the double entry mechanism with an illustrative example.

20. Prepare a double column Cash Book with cash and bank column with following information:
Date Particulars Amount (Rs.)
2014
April 1 Cash in hand 50,000
Bank Overdraft 35,000
April 2 Cash Sales 30,000
April 4 Paid Salaries 5,000
April 8 Cash deposited into bank 10,000
April 10 Goods purchased from Ram Lal 10,000
April 12 Payment made to Ram Lal in full settlement 9,750
April 14 Goods sold to Ram 20,000
April 20 Received cheque from Ram and allowed him discount of Rs.200 19,800
April 24 Cheque received from Ram deposited into Bank
April 25 Withdrew cash from Bank for personal use 500
April 28 Paid rent by Cheque 5,000

21. On 1st August, 2012, Gati Ltd purchased a machinery for Rs.3,00,000. On 1st November, 2013, another machinery was
purchased for Rs.1,80,000. On 1st July, 2014 the machine which was purchased on 1st August, 2012 was sold for Rs.1,68,000 and
on the same date a fresh machinery was purchased for Rs.2,00,000. Depreciation was provided @10% p.a on the Reducing balance
method. Books are closed on 31st March every year.
You are required to prepare Machinery Account and Provision for Depreciation Account for three years ending 31st March, 2015.

OR
The following balances of ledger of M/s Marble Traders on April 01, 2014.
2014 Rs.
April
Cash in hand 6,000
Cash at bank 12,000
Bills Receivables 7,000
Ramesh (Cr.) 3,000
Stock (Goods) 5,400
Bills Payable 2,000
Rahul (Dr.) 9,700
Himanshu (Dr.) 10,000
Transactions during the month were:
April
1 Goods sold to Manish 3,000
2 Purchased goods from Ramesh 8,000
3 Received cash from Rahul in full settlement 9,200
5 Cash received from Himanshu on account 4,000
6 Paid to Ramesh by cheque 6,000
8 Rent paid by Cheques 1,200
10 Cash received from Manish 3,000
12 Cash Sales 6,000
14 Goods returned to Ramesh 1000
15 Cash paid to Ramesh in full settlement 3,700
(Discount received Rs.300)
19 Goods sold to Kushal 10,000
20 Paid Trade Expenses 200
21 Drew for personal use 1,000
22 Goods returned from Kushal 1,200
24 Cash received from Kushal 6,000
26 Paid for stationary 100
27 Postage charges 60
28 Salary paid 2,500
29 Goods purchased from Sheetal traders 7,000
30 Sold goods to Kirti 6,000
30 Goods purchased from Handa Traders 5,000
Journalise the above transactions and post them in ledger.

PART - B : FINANCIAL ACCOUNTING - II

22. _______ is a statement showing true and fair view of the operating performance of the enterprise.
[a] Position Statement [c] Profit and Loss Appropriation Account
[b] Income Statement [d] None of the above

23. Mayank does not keep proper records of his business. He has given you the following information:

Opening Capital Rs.1,00,000

Closing Capital Rs.1,25,000
Drawings Rs.30,000
Additional Capital Rs.37,500
The profit/loss is:
[a] Rs.15,500 profit [b] Rs.17,500 loss [c] Rs.17,500 profit [d] Rs.22,500 profit

24. “It directs the computer what to do and in which sequence”. This is a function of:
[a] Non-impact printer [b] Connectivity software [c] Mouse [d] Control unit

25. _________ refers to any of the physical devices which is a part of computer system.
[a] Hardware [b] Software [c] Operating system [d] None of the above

26. Which part of computer stores the data and instructions?

27. _________ printer is not an exmaple of impact printer.

28. Which of the following is an example of output device:

[a] Visual Display Unit [b] Keyboard [c] Mouse [d] Scanner
29. Explain briefly any three of the following:
(i) Hardware (iv) Procedures
(ii) Software (v) Data
(iii) People (vi) Connectivity
OR
Give any three points of difference between computerised accounting system and manual accounting system.

30. Calculate Closing Stock from the following details:

Opening stock Rs.80,000; Cash sales Rs.2,40,000; Credit sales Rs.1,60,000; Purchases Rs.2,80,000. Rate of gross profit on cost 33
1/3%.
OR
What is the Position Statement or Balance Sheet? What purpose does a Balance Sheet serve?

31. Identify whether the following receipts are capital or revenue. How will they be treated in final accounts:
(i) Sale proceeds of goods Rs.20,000
(ii) Commencement of business with Rs.60,000
(iii) Rent received from premises sublet RS.4,000
(iv) Profit on sale of land and building Rs.5,000
(v) Amount received from sale of assets Rs.80,000
(vi) Amount received from sale of scraps, I.e., newspapers, boxes, grass, bottles etc Rs.300.

32. Show the effect of the following information in the Profit & Loss Account and Balance Sheet, being prepared on March
31, 2014:
Particulars Debit (Rs.) Credit (Rs.)
Salaries 5,000 -
Establishment Expenses 7,700 -
Wages Owing - 250
Unexpired Insurance 300 -
Rent 22,000 -
Plant and Machinery 50,000 -
Land and Building 80,000 -
Adjustments:
(i) Outstanding salaries amounted to Rs.1,000
(ii) Prepaid rent amounted to Rs.2,000
(iii) The value of plant and machinery de decreased by 10%
(iv) The value of land and building be increased by 20%
(v) Establishment expenses for Rs.700 are still to be paid
OR
From the following Trial Balance and Adjustments, prepare Trading Account, Profit & Loss Account and Balance Sheet as on 31-
12-2011:
TRIAL BALANCE
Particulars Amount Dr. (Rs.) Amount Cr. (Rs.)
Opening Stock 15,000
Purchases & Sales 81,000 1,60,000
Furniture 15,000
Building 45,000
Capital 85,000
Bills Payable 6,400
Cash 8,000
Advertisement 1,400
Wages 20,000
Salaries 15,000
Returns Inward & Returns Outward 2,000 1,000
Carriage 4,500
Plant & Machinery 30,000
Audit Fee 3,000
Debtors & Creditors 26,000 20,000
Bank Loan 18,000
Commission Received 600
Travelling Expenses 4,500
Rent & Taxes 5,000
Drawings 10,000
 Insurance 1,000
General Expenses 4,600
2,91,000 2,91,000
Adjustments:
(i) Closing Stock Rs.30,000 (Cost); Rs.32,000 (Market Price)
(ii) Wages Outstanding Rs.2,500
(iii) Salaries Outstanding Rs.1,200
(iv) Prepaid Insurance Rs.200