Class XI

Accountancy
(Term – I)
Total Marks:

Part – I

Section A (Attempt any 15 questions)

1. Dividend Equalisation Reserve is :

(a) Specific Reserve
(b) None of these
(c) Secret Reserve
(d) General Reserve

2. The art of recording all business transactions in a systematic manner in a set of books is called-
(a) Accounting
(b) Book – keeping
(c) Ledger
(d) None of these.

3. The process of recording, classifying and summarizing all business transactions in order to know the financial result is called
–
(a) Book – keeping
(b)Accounting
(c) Journalizing
(d) None of these

4. What is “Deposit in transit” in bank reconciliation?

(a) Added to Bank Balance
(b) Subtracted From Bank Balance
(c) Subtracted From the Cash Book Balance
(d) Added to Cashbook Balance

5. Liabilities and Assets amount to Rs. 50,000 and Rs. 7,800 respectively. The difference Amount shall represent-
(a) Creditors
(b) Debentures
(c) Profit
(d) Capital.

6. A cheque on which two parallel lines are drawn in the left top corner is called –
(a) Bearer cheque
(b) Traveller’s cheque
(c) Account payee cheque
(d) None of these.

7. The entry which is passed for bringing forward the balances of personal and Real Account as shown in the last year’s
balance sheet is called –
(a) Closing entry
(b) Journal entry
(c) Opening entry
(d) None of these.

8. Cash, goods or assets invested by the proprietor in the business for earning profit is called-
(a) Profit
(b) Capital
(c) Fixed assets
(d) None of these.

9. Credit purchase of furniture shall be recorded in-

(a) Purchase book
(b) Journal book
(c) Cash – book
(d) None of these.

10. An alternative term used for accumulated depreciation expenses?

(a) Provision for depreciation
 (b) Cumulative depreciation
(c) Targeted depreciation
(d) Depletion

11. Which of the following is not a type of reserve

(a) Provision for bad debt
(b) General reserve
(c) Workmen compensation fund
(d) Retained earnings

12. The main purpose of preparing a bank reconciliation statement is?

(a) To know the bank balance
(b) To know the balance of bank statement
(c) To correct the cash book
(d) To identify causes of difference between cash book and bank statement

13. The person, firm or institution who does not pay the price in cash for the goods purchased or the services received is called-
(a) Creditor
(b) Proprietor
(c) Debtor
(d)None of these.

14. Book – keeping is-

(a) An art
(b) A science
(c) An art and science both
(d) None of these.

15. The first book of original entry is-

(a) Journal
(b) Ledger
(c) Trial Balance
(d)None of these.

16. Who prepares a debit note-

(a) Seller
(b) Purchaser
(c) Cashier
(d) None of these.

17. Which of the following methods of depreciation is not recognized by Income Tax Law?
(a) Straight line Method
(b) None of these
(c) Both, Straight Line and Diminishing Balance Methods
(d) Diminishing Balance Method

18. Unfavourable bank balances means:

(a) Credit balance in the cash book
(b) debit balance in the pass book
(c) Debit balance in the cash book
(d) Favourable balance in the cash book

Section B (Attempt any 15 questions)

19. ‘Drawings’ falls under which account-

(a) Personal account
(b) Real account
(c) Nominal account
(d) None of these

20. Income tax is treated as-

(a) Business Expense
(b) Direct Expense
(c) Personal Expense
(d) Indirect Expense.
21. Match the following:
 Column A Column B

1. Increase of Assets & Liabilities (a) Investment of capital in business.

2. Decrease of Assets and Liabilities (b) Drawings or Expenses.

3. Increase of Capital and Assets (c) Payment of Liabilities.

4. Decrease of Capital and Assets (d) Credit purchase of Assets.

22. Asset Disposal A/c is prepared when :

(a) Provision for Depreciation A/c is prepared
(b) Asset A/c is prepared
(c) Profit & Loss A/c is prepared
(d) Depreciation A/c is prepared

23. Return of goods by a customer is recorded in-

(a) Purchase book
(b) Sales book
(c) Sales return book
(d) Purchase return book.

24. The basis of recording transactions is-

(a) Vouchers
(b) Profit
(c) Order form
(d) Quotation list.

25. Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed
asset
(a) Straight line method
(b) Reducing balance method
(c) Number of units produced method
(d) Machine hours method

26. Cash purchase of goods is recorded in-

(a) Purchase book
(b) Sales book
(c) Cash – book
(d) None of these.

27. Directly collections of bank are to be ___________ in cash book?

(a) Dr
(b) Cr
(c) both
(d) None

28. Depreciation charged under diminishing method

(a) Increase every year
(b) Decrease every year
(c) Increase in one year and decrease another year
(d) Same every year

29. A Bank Reconciliation Statement is:

(a) A part of cash book
(b) A part of pass book
(c) A statement prepared by bank
(d) A statement prepared by a customer
 30. GST is a consumption of goods and service tax based on
(a) Development
(b) Dividend
(c) Destiny
(d) Destination

31. Which of the following is not a correct form of accounting equation?

(a) Assets = claims
(b) Assets = Liabilities + Owner Equity
(c) Assets – Liabilities = Owner’s Equity
(d) Assets + Owner’s equity = Liabilities

32. Historical cost concept requires the valuation of an asset at

(a) Original cost
(b) Replacement value
(c) Net realizable value
(d) Market value

33. The comparison of financial statement of one year with that of another is possible only when ----------------concept is followed
(a) Going concern
(b) Accrual
(c) Consistency
(d) Materiality

34. Profit and loss is calculated at the stage of

(a) Recording
(b) Posting
(c) Classifying
(d) Summarising

35. The rule debit all expenses and losses and credit all income and gains relates to
(a) Personal account
(b) Real account
(c) Nominal accounts
(d) All

36. Taxes that are levied on any Intra-State purchase are?

(a) IGST
(b) CGST and SGST
(c) SGST
(d) SGST

Section C (Attempt any 4 questions)

37. If the assets of a business are Rs.100000 and equity is Rs.20000, then liabilities will be?
(a) 100000
(b) 80000
(c) 120000
(d) 20000

38. Match the following:

Column A Column B

1. Asset (a) Bank

2. Personal account (b) Furniture

3. income tax (c) Real account

4. Asset installation expense (d) Personal account.

39. What is the full form of GST?

(a) Goods and Supply Tax
(b) Goods and Services Tax
(c) General Sales Tax
(d) Government Sales Tax

40. A pass book is a copy of

(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

41. Depreciation helps in determining

(a) Accurate level of profit
(b) Increases the value of asset
(c) Revenue generation
(d) Increase the burden of tax

Part - II

Section A (Attempt any 5 questions)

42. When a cheque is returned by the bank showing some technical reason is known as?
(a) Honor of the cheque
(b) Balance of account
(c) Dishonor of the cheque
(d) None of these

43. Which of the following is the example of Capital Reserve?

(a) Workmen’s Compensation Fund
(b) None of these
(c) Premium Received on issue of shares or debentures
(d) General Reserve

44. Cash – book always show-

(a) Debit balance
(b) Credit balance
(c) Debit or Credit balance
(d) None of these.

45. The process of recording, classifying and summarizing all business transactions in order to know the financial result is called
–
(a) Book – keeping
(b)Accounting
(c) Journalizing
(d) None of these

46. The entry which affects cash and bank column of a triple column cash – book is known as –
(a) Compound entry
(b) Contra entry
(c) Journal entry
(d) None of these.

47. The sum of Liabilities and Capital is-

(a) Expense
(b) Income
(c) Drawings
(d) Assets.
48. Generally the duration of an Accounting period is of-
(a) 6 months
(b) 3 months
(c) 12 months
(d) 1 month.

Section B (attempt any 6 questions)

49. The amount drawn by businessmen for his personal use is-
(a) Capital
(b) Drawing
(c) Expenditure
(d) Loss.

50. Meaning of credibility of going concern is:

(a) Closing of business
(b) Opening of business
(c) Continuing of business
(d) None of these.

51. Bank statement also called?

(a) Pass book
(b) Cash book
(c) Credit book
(d) Debit book

52. A bank reconciliation statement is prepared with the balance of:

(a) Cash book
(b) Pass book
(c) Either cash book or pass book
(d) Neither cash book nor pass book

53. Which of the following methods of depreciation is not recognized by Income Tax Law?
(a) Straight line Method
(b) None of these
(c) Both, Straight Line and Diminishing Balance Methods
(d) Diminishing Balance Method

54. The loss on sale of an asset is debited to:

(a) Profit and Loss Account
(b) Trial Balance Cr. Side
(c) Balance Sheet
(d) Trading Account

55. The cause of Depreciation is :

(a) Wear and tear
(b) Obsolescence
(c) All of these
(d) Usage of Asset

Answer: D

1. GST rates applicable on goods and services are:

A) 0% 5% 12% 18% 26%

B) 0% 6% 12% 18% 28%

C) 0% 5% 12% 18% 28%

D) 0% 5% 12% 16% 28%

Answer: C

Answer : B

Answer: B
Answer

Question 22.

Answer

Question 24.

Answer
Answer: (b) debit balance in the pass book
Question 2.

Question 3.

Question 20.

Answer

Answer
Question 23.

Answer

Question 24.
What is the rate of charging depreciation under diminishing method?
(a) 12% p.a.
(b) 15% p.a.
(c) 10% p.a.
(d) Not fixed

Answer
Question 25.

Answer