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Class 11 - Accountancy
Sample Paper - 01 (2022-23)

Maximum Marks: 80
Time Allowed: 3 hours

General Instructions:

1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.
3. Question 1 to 16 and 27 to 30 carry 1 mark each.
4. Questions 17 to 20, 31and 32 carry 3 marks each.
5. Questions from 21 ,22 and 33 carry 4 marks each
6. Questions from 23 to 26 and 34 carry 6 marks each
7. There is no overall choice. However, an internal choice has been provided in 7 questions of one
mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.

PART A
1. Which of the following is an area of interest for the management while using accounting
information?
(A) Financial Position (B) Long-term and short-term solvency
(C) Profitability (D) All of these
2. The primary qualities that make accounting information useful for decision making are
_______.
(a) Relevance and freedom from bias (b) Reliability and comparability
(c) Comparability and consistency (d) None of the above
OR
When information about two different enterprises has been prepared presented in a similar
manner, the information exhibits the characteristics of ________.
(a) Verifiability (b) Relevance
(c) Reliability (d) None of the above
3. Balancing of account means :
(A) Total of debit side (B) Total of credit side
(C) Finding the difference in total of debit & credit (D) None of These
4. Favourable bank balance means :
(A) Credit balance in the cash book (B) Credit balance in passbook
(C) Debit balance in the cash book (D) Both (B) and (C)
5. Among these transactions, which transaction will have no impact on stockholders’ equity?
(a) Net loss (b) Investment of cash by stockholders
(c) Dividends to stockholders (d) Purchase of the land from the proceeds of bank loan
6. A cashbook serves the following purpose:
a) It works as a ledger account
b) It works as a book of original entry as well as a ledger account
c) It works as a book of original entry d)None of the above

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7. Amounts that are created against profit to meet a known liability :

(A) Reserves (B) Provisions
(C) both (A) and (B) (D) None of the above
8. During a lifetime of an entity, accounting produces financial statements in accordance with
which basic accounting concept?
(a) Conservation. (b) Matching
(c) Accounting period (d) None of the above
OR
A concept that a business enterprise will not be sold or liquidated in the near future is known
as ________.
(a) Going concern (b) Economic entity
(c) Monetary unit (d) None of the above
9. Goods returned by customer will be debited to which account?
(a) Purchases A/C (b) Return outward
(c) Customer’s A/C (d) Return inward
OR

Among these statements which one is incorrect regarding journal entry?

(a) The debited account titles are listed first
(b) Journal entries show the effects of transactions
(c) Each journal entry should begin with a date
(d) Journal entries provide account balances
11. What is the primary purpose of a cashbook?
a. It records receipts and payments of cash
b. It records payments of cash
c. It records receipts of cash
d. It helps to compute the profit and loss of a business
OR
In a cashbook, a contra entry is recorded on the __________:
a. Debit and credit side of a cashbook
b. Debit side of a cashbook
c. Credit side of a cashbook
d. Not recorded in the cashbook

12. The transaction that does not affect a cashbook is ___________:

a. Cheque received from Mr B and deposited in the bank
b. Depreciation expense recorded for the year
c. Mobile charges paid from the online company’s bank account
d. Cash paid to creditors for goods purchased from them

OR

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Which one of the following transactions will be recorded in the cashbook as a contra entry?

a. Cash is withdrawn from the bank for office use

b. Cash is deposited in a company’s bank account
c. A cheque that was received earlier is deposited into the company’s bank account
d. All of the above

13. As per the accounting equation, if the total asset of the firm are ₹ 3,00,000 and outsider’s
Liabilities are ₹ 1,00,000.The capital Employed of the firm will be:
(A) ₹ 3,00,000 (B) ₹ 4,00,000
(C) ₹ 2,00,000 (D) None of These

14. Which of the following is not true about ledger?

(A) It is a principal book of business.
(B) It is the collection of all accounts.
(C) Ledger helps in the preparation of journal.
(D) Trial Balance is prepared on the basis of the information given in ledger.
15. If the suspense account does not balance off even after rectification of errors, it implies that
_______.

(a) There are some one-sided errors only in the books yet to be ascertained
(b) There are no more errors yet to be ascertained
(c) There are some two-sided errors only, that is yet to be ascertained
(d) There may be both two-sided errors and one-sided errors, that are yet to be ascertained
16. Which of the following is the example of the revenue reserve?
(a) Profit on redemption of debentures
(b) Profit on revaluation of fixed
(c) Investment fluctuation fund
(d) Profit on re-issue of forfeited shares

17. How will you deal with the following items in accounting equation (answer any three):
(i) Interest due but not received
(ii) Rent received in advance
(iii) Insurance premium paid in advance
(iv) Salaries due but not paid. 3
OR
State the rules of debit and credit on the basis of nature of accounts.
18. Accounting provides qualitative information about the financial transactions which are useful in
making economic decisions. Accounting collects, records, classifies and summarizes the
financial information which is communicated to its users.
In the same context explain any three external users of accounting. 3
OR
Why is the consistency principle important?
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19. On 31st March, 2015 the pass book showed a credit balance of ₹ 9,000.
Prepare a Bank Reconciliation Statement from the following particulars:
• Cheque issued but not yet presented for payment ₹ 7,000.
• Cheque issued but omitted to be recorded in cash book ₹ 3,800.
• Cheque paid into bank but not yet collected by the bank ₹ 2,600.
• Premium of life policy paid by bank on standing order ₹ 360
• Payment received from customers directly by the bank ₹ 2,000. 3
20. State briefly the need for providing depreciation. 3
21. Enter the following transactions in a simple Cash Book of Lata, Delhi
Jan. 01 Started Business with Cash 1,00,000
Jan. 02 Opened a bank account and deposited 50,000
Jan.03 Purchased goods for cash for ₹ 20,000 plus CGST and SGST @ 6%
each
from Kala Electricals, Delhi
Jan. 03 Sold goods of ₹ 5000 plus IGST @ 12% to Ram of Chandigarh on credit.
Jan. 05 Received from Ram 3000
Jan. 07 Paid Rent of ₹ 4000 plus CGST and SGST @ 6% each
Jan. 31 Paid Salaries 5,000 4
OR
Enter the following transactions in the Cash Book with Cash and Bank Columns:−
2016 (₹)
June Cash in hand 800
1
Bank Overdraft 5,700
7 Received a cheque from Bharti 3,250
9 Deposited the above cheque into bank
12 Paid to Bhavana by cheque 2,425
15 Bharti's cheque returned dishonoured
20 Withdrew from Bank for office use 250
25 Cheque received from Panna Lal and endorsed it 1,200
in favour of Kamal on 28th June
30 Income Tax paid by cheque 150
30 Bank charges 25

22. Prepare the Trial Balance of Ankit as on 31st March, 2019. He has omitted to open a Capital
Account:

₹ ₹
Bank Overdraft 85,000 Purchases 4,45,000
Sales 8,10,000 Cash in Hand 8,500
Purchases Return 22,500 Creditors 2,15,000

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Debtors 4,00,500 Sales Return 15,750

Wages 96,000 Equipment 25,000
Capital ? Opening Stock 3,00,500

23. Rajan purchased a machine on 1st October, 2017 for ₹ 5,00,000 plus CGST and SGST @ 6%
each. He paid ₹ 20,000
for loading/unloading and carriage expenses to the bring the machine to factory. He further
incurred ₹ 25,000 for installing the machine. Determine:
• How much amount did Rajan pay to vendor of machine?
• How much amount will be debited to Machinery Account?
Pass the Journal Entries giving effect to the transaction. 6
24. Pass the necessary journal entries to rectify the following errors :
• A credit purchase of ₹ 560 from Raja was recorded as ₹ 650.
• A credit purchase of ₹ 560 from J.S. was recorded as purchase from Priyanka.
• A credit purchase of ₹ 560 from Priya was recorded in the Sales Book.
• A Bills Receivable of ₹ 500 received from Raja was treated as a Bills Payable.
• A credit sale of old furniture to Sheetal for ₹ 560 was entered in the Sales Book for ₹
650.
• A cash purchase of ₹ 560 from Mukesh was recorded as ₹ 650. 6
OR
Pass the necessary journal entries to rectify the following errors:
• A cheque of ₹ 10,000 received from Arvind was dishonoured and has been posted to
the debit of Sales Returns A/c.
• Salary paid ₹ 2,000 was debited to Employee’s Personal A/c.
• A cash sale for ₹ 500 to Savita was posted to the credit of Kavita.
• An amount of ₹ 5,000 withdrawn by proprietor for his personal use has been charged to
Expenses A/c.
• A credit sale of ₹ 1,500 to Jalpreet was posted to Harjeefs A/c.
• A credit purchase of Machinery from Shravan for ₹ 3,000 was debited to Purchases
A/c.
25. Pass journal entries for the following: 6

2019
Purchased goods from Henry for ₹ 50,000 on 10% trade
Jan.
discount and 4% cash discount and paid 60% amount by
6
cheque.
Bought goods from Amit for ₹ 2,00,000 at terms 5% cash
Jan.
discount and 20% trade discount. Paid 3/4th of the
15
amount in cash at the time of purchase.
Jan. Sold goods to Sherpa at the list price of ₹ 50,000 less
18 20% trade discount and 4% cash discount if the payment

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is made within 7 days. 75% payment is received by

cheque on Jan. 23rd.
Sold goods to Garima for ₹ 1,00,000, allowed her 20%
trade discount and 5% cash discount if the payment is
Jan.
made within 15 days. She paid 1/4th of the amount by
25
cheque on Feb. 5th and 60% of the remainder on
Feb.15th in cash
26. Write the most appropriate word / term / phrase which can substitute each of the following
statement: (Any Six) 6
1. Person who maintains petty cash book.
2. A bank account which the businessman prefers to open.
3. Petty cash book in which the payment side is ruled in suitable columns.
4. Subsidiary book in which only credit purchase of goods is recorded.
5. Subsidiary book in which return of goods sold on credit is recorded.
6. Book in which cash discount received and allowed is recorded.
7. Accounting entries passed in journal proper for correction of mistakes committed in the
books of accounts.
8. A note issued by buyer to seller giving full details of goods returned.

PART B
27. If the insurance premium paid Rs. 1,000 and prepaid insurance Rs. 300. The amount of
insurance premium shown in the profit and loss account will be ______.

(a) Rs. 1,300 (b) Rs. 1,000 (c) Rs. 300 (d) Rs. 700
28. Income statement consists of:
(A) Trading Account (B) Trial Balance (C) Balance Sheet (D) All the above

29. If the opening capital is Rs. 50,000 as of April 1, 2005, and additional capital introduced Rs.
10,000 on January 1, 2006. Interest charge on capital 10% p.a. The amount of interest on
capital shown in the profit and loss account as of March 31, 2006, will be _______.
(a) Rs. 5,250 (b) Rs. 6,000 (c) Rs. 4,000 (d) Rs. 3,000
OR
If the rent is received in advance Rs. 2,000. The adjustment entry will be _______.
(a) Debit profit and loss account and Credit rent account
(b) Debit rent account Credit rent received in the advance account
(c) Debit rent received in advance account and Credit rent account
(d) None of the above
30. Choose the correct chronological order of ascertainment of the following profits from the profit
and loss account:
(a) Operating Profit, Net Profit, Gross Profit
(b) Operating Profit, Gross Profit, Net Profit
(c) Gross Profit, Operating Profit, Net Profit
(d) Gross Profit, Net Profit, Operating Profit
OR

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Which of the following is correct:

(a) Operating profit = Operating profit – Non-operating expenses – Non-operating incomes
(b) Operating profit = Net profit + Non-operating expenses + Non-operating incomes
(c) Operating profit = Net profit + Non-operating expenses – Non-operating incomes
(d) Operating profit = Net profit – Non-operating expenses + Non-operating incomes
31. What are the objectives of preparing financial statements? 3

32. Calculate the amount of gross profit and operating profit on the basis of the following
balances extracted from the books of M/s Rajiv and Sons for the year ended March 31, 2017.
3
Rs
Opening stock 50,000
Net sales 11,00,000
Net purchases 6,00,000
Direct expenses 60,000
Administration expenses 45,000
Selling and distribution expenses 65,000
Loss due to fire 20,000
Closing stock 70,000

33. Prepare trading and profit and loss account as on March 31, 2017: 4

Account Title Amount Account Title Amount

Rs Rs
Machinery 27,000 Capital 60,000
Sundry debtors 21,600 Bills payable 2,800
Drawings 2,700 Sundry creditors 1,400
Purchases 58,500 Sales 73,500
Wages 15,000
Sundry expenses 600
Rent and taxes 1,350
Carriage inwards 450
Bank 4,500
Openings stock 6,000

Closing stock, as on March 31, 2017 Rs 22,400.

34. From the following Trial Balance you are required to prepare trading and profit and loss account
for the year ending March 31, 2017 and Balance Sheet on that date. 6
Amount Amount
Particulars Particulars
(₹) (₹)
Opening stock 25,000 Sales 7,00,000
Furniture 16,000 Creditors 72,500
Purchases 5,55,300 Bank Overdraft 50,000
Carriage Inwards 4,700 Provision for bad and doubtful 2,100
debts
Bad debts 1,800 Discount 500

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Wages 52,000 Capital 2,00,000

Debtors 80,000 Purchases Return 20,000
Sales Return 15,000
Rent 24,000
Miscellaneous Expenses 3,400
Salaries 68,000
Cash 8,900
Drawings 14,000
Buildings 1,60,000
Advertising 10,000
Interest on Bank 7,000
Overdraft

10,45,100 10,45,100

Adjustments
1. Closing stock valued at ₹ 36,000.
2. Private purchases amounting to ₹ 5,000 debited to purchases account.
3. Provision for doubtful debts @ 5% on debtors.
4. Sign board costing ₹ 4,000 includes in advertising.
5. Depreciate furniture by 10%.
OR
Prepare a trading and profit and loss account of M/s Green Club Ltd. for the year ending March 31,
2017. from the following figures taken from his trial balance:
Account Title Amount Account Title Amount
Rs Rs

Opening stock 35,000 Sales 2,50,000

Purchases 1,25,000 Purchase return 6,000
Return inwards 25,000 Creditors 10,000
Postage and 600 Bills payable 20,000
Telegram
Salary 12,300 Discount 1,000
Wages 3,000 Provision for bad debts 4,500
Rent and Rates 1,000 Interest received 5,400
Packing and 500 Capital 75,000
Transport
General expense 400
Insurance 4,000
Debtors 50,000
Cash in hand 20,000
Cash at bank 40,000
Machinery 20,000

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Lighting and 5,000

Heating
Discount 3,500
Bad debts 3,500
Investment 23,100
3,71,900 3,71,900

Adjustments
1. Depreciation charged on machinery @ 5% p.a.
2. Further bad debts Rs 1,500, discount on debtors @ 5% and make a provision on debtors @ 6%.
3. Wages prepaid Rs 1,000.
4. Interest on investment @ 5% p.a.
5. Closing stock 10,000.
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