MOCK EXAMINATION (2022-23)

Subject: ACCOUNTANCY Max. Marks:80

Grade: XI Time:3 Hour
1 Anand Traders use a common unit of measurement and common format of reporting. This 1
promotes _________ of accounting information.

(a) Comparability

(b) Reliability

(c) Relevance

(d) Understandability

2. Charan is operating a furniture manufacturing firm. In the year, he has debtors amounted to 1
₹60,000 and has acceptances from customers amounting to ₹20,000. Ho owed ₹40,000 to
his creditors and had given acceptance for ₹ 90,000. What will be the amount of Trade
Receivables of the firm?

(a) ₹20,000

(b) ₹ 90,000

(c) ₹ 80,000

(d) ₹ 60,000

3 Sonia runs a small firm dealing in fancy candles, diyas and incense sticks made with organic 1
ingredients. In the last year, she earned higher revenue due to online sales. She invested a
part of extra cash in the stock market by buying shares of ₹40,000. In the current year, she
sold that investment at a price of ₹64,000. This difference of ₹24,000 will be termed as:

(a) Revenue

(b) Profit

(c) Income

(d) Gain

4 The realisation concept determines when goods sent on credit to customers are to be included 1
in the sales figure, for the purpose of computing the profit or loss for the accounting period.
Which of the following is to be used in practice to determine when to include a transaction in
the sales

Page 1 of 12
 figure for the period?

When the goods have been:

(a) despatched

(b) invoiced

(c) delivered

(d) paid for

5 Accrual bases of accounting follows the basic accounting principles of _______________
and ____________

(i) Revenue Recognition and Matching

(ii) Going concern and Prudence

(iii) Revenue Recognition and Prudence

(iv) Materiality and Matching I

6 Which of the following is the correct accounting equation for repayment of loan amount of
₹1,00,000 along with interest of ₹10,000?

(a) Assets Liabilities Capital

= (1,10,000) + (1,10,000)
= 0

(b) Assets Liabilities Capital

= + (1,00,000)
0
(1,00,000) =

(c) Assets Liabilities Capital

= (1,10,000) + (1,00,000)
(10,000)

(d) Assets Liabilities Capital

= (1,10,000) + (10,000)
(1,00,000)

I
7 Which option is correct when you identify the nature of following transaction as per modern I
approach and apply the rule of debit and credit to the transaction Bank Loan taken?

(a) Expenses, Decrease –Cr

Page 2 of 12
 (b) Liability, Increase –Cr

(c) Assets, Increase –Dr

(d) Liability Decrease – Dr

8 Ajith, a trader deposited ₹ 40,000 in Bank. The accountant needs to prepare a source
document which will act as evidence of this transaction.

a) Pay in slip

b) Cheque

c) Debit Note

d) Credit Note
I
9 Goods costing ₹.40,000 sold at a profit of 20% on sales @ 10% trade discount. Sales will be
credited by _________.

(a) ₹50,000

(b) ₹40,000

(c) ₹45,000

(d) ₹43,200 I
10 If Cash-Book (Bank Column) shows a balance of ₹. 10,000 and following were observed 1

while comparing it with Pass-Book:

A cheque of ₹. 1000 deposited in Bank but not recorded in Cash-Book and the payment side

of Cash-Book was under cast by ₹. 100. The balance as per Pass-Book would be:

(a) ₹. 11,000

(b) ₹. 10,900

(c) ₹. 9,100

(d) ₹. 8,900

11 Provision for doubtful debt created @5% on debtors of ₹ 80,000 will be recorded in 1
______book.

(a) Sales Book

Page 3 of 12
 (b) Journal Proper

(c) Sales Return Book

(d) Petty Cash Book

12 Given below are two statements, one labelled as Assertion (A) and the other labelled as 1
Reason (R)

(A) A bank reconciliation statement is a statement prepared to reconcile the bank balance as
per cash book with the balance as per passbook or bank statement.

Reason (R) The amount of balance shown in the passbook, or the bank statement must tally
with the balance as shown in the cash book.

From the statements and choose the appropriate option from the options given below

(a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of

Assertion (A)

(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation

of Assertion (A)

(c) Assertion (A) is true, but Reason (R) is false

(d) Assertion (A) is false, but Reason (R) is true.

13 An asset was purchased for ₹ 21,000 on April 01, 2020, with cost of installation ₹ 4,000. Its 1
salvage value at the end of 10 year is estimated ₹ 3,000 only. Find the amount of annual
depreciation to be charged on December 31,2021 according to Fixed Instalment Method
assuming the books are closed on December 31 each year.

(a) ₹ 2,500

(b) ₹ 2,200

(c) ₹ 1,650

(d) ₹ 1,875

14 As per cost concept, calculate the amount to be recorded when 5 computers are purchased 1
for. ₹30,000 each and spend ₹. 2,000 each on installation and ₹ 1,000 as carriage to deliver
5 computers.

a) ₹50,00,500

Page 4 of 12
 b) ₹50,00,000

c) ₹1,61,000

d) ₹ 1,53,000

15 The amount set aside for the purpose of providing any known liability, the amount of which 1
cannot be ascertained with reasonable accuracy, is known as

(a) Reserve

(b) Provision

(c) Contingency fund

(d) Bad Debts

16 Anand Traders sold goods costing ₹90,000 at a profit of 1/3 on cost, half of the payment 1
received in cash treatment in accounting equation will be: -

(a) Increase in cash by ₹ 90,000and decrease in stock by ₹ 45,000 and increase in debtor

by ₹ 90,000

(b) Increase in cash by ₹ 45,000and decrease in stock by ₹ 60,000 and increase in debtor

by ₹ 1,20,000

(c) Increase in cash by ₹ 1,20,000 and decrease in stock by ₹ 90,000 and increase in

debtor by ₹ 60,000

(d) Increase in cash by ₹ 60,000 and decrease in stock by ₹ 90,000 and increase in debtor

by ₹ 60,000 increase in capital by ₹ 30,000

17 If a purchase return of ₹ 1,000 has been wrongly posted to the debit of the sales return A/c 1
but has been correctly entered in the supplier account. It will affect the Trial Balance as

(a)The Debit side of the Trial balance will be ₹ 2,000 more than the credit side.

(b)The Credit side of the Trial balance will be ₹ 2,000 more than the debit side.

(c) Trial Balance would show ₹ 1,000 more on the debit side.

(d) Trial Balance would show the credit side to be ₹ 1,000 more than the debit.

18 Which of the following is not an error of commission: 1

Page 5 of 12
 (a)A sale of ₹ 560 not recorded in Books at all.

(b)Rent paid to landlord was posted to Landlord’s Account.

(c)A purchase of ₹ 840 was wrongly posted, to sales A/c

(d)Instead of crediting Shyam credited the other creditor Sham.

19 The firm has taken a 10% loan of ₹ 80,000 from Mr. Hari on 30.9.2020 as a part of its
liability on 31.3.2021 and trial balance shows interest on loan of ₹ 2,800. The amount of
interest to be debited in P & L Account and amount shown as interest in liability side of
Balance sheet for the year ending March 31, 2021 respectively will be:
1
20 Net profit of the firm before charging manager’s commission is ₹ 3,24,000. If the manager is
entitled to get commission @ 8% after charging such commission. What amount of Net
profit will be transferred to capital account?
1
21 (a)Which qualitative characteristic of Accounting information requires the use of common 3
unit and common format and reporting? Explain

(b) ‘Accounting makes available the information with respect to performance and assets that
are available as securities. Is this a limitation or an advantage? Give reasons.

22 a) Vicky started his bakery business at a moderate level on 1st April, 2018. He received 3
an order for supply of biscuits & cakes worth ₹ 4,000. He also receives an advance of
₹ 1,000 as an advance against his order. He wants to record this as sales. Is he correct
in doing so?
b) During the first year 2018-19 he charged depreciation on his machinery @10% p.a.
under straight line method, next year he charged depreciation on his machinery
@10% p.a. under written down value method. Now again he wants to change to
straight line method. Is it an appropriate decision? Which accounting assumption has
been ignored by Vicky?
c) He withdrew some money from the business to pay his daughter’s school fees but it
has not been recorded in the books of accounts. Which accounting concept has been
violated?
d) Rent is not paid for 2 months. Under which accounting concept it should be recorded
as an expense for the year?

23 Palak started business on 1st April 2017. During the year she further introduced a capital of 3
80,000 and also withdrew 3,000 quarterly for his personal expenses in addition to this she
had also withdrew goods for 15,000 for his personal purpose. Palak sold her personal car
costing 40,000 for 60,000 and introduced half of the proceeds in the business. During the
year she had a revenue of 1,30,000 and expenses made to earn the revenue was 60,000. His
assets and liabilities on 31st March 2018 amounted to 5,00,000 and 2,00,000 respectively.

Page 6 of 12
 Calculate capital of Palak on 1st April 2017.

24 Journalise the following transactions in the books of Ankit a trader of Delhi, 3

2019

May 1 Sold Goods to Shumit at the List price Rs 40,000 at Trade Discount
10% and CGST and SGST @9% each. He paid the amount
immediately.

May3 Received commission of Rs 10,000 by cheque half of which is in

advance

May8 Amount deposited in Fixed Deposit Account Rs 10,000 by transfer from

Current Account.

May10 Received cash from Mohan(Debtor), who is written off as a bad debts
last year Rs 2,000

25 When the below trial balance was prepared the bookkeeper committed few errors. You are 3
required to draw up a corrected Trial Balance and any residual amounts to be put in Suspense
Account.

Dr. (₹) Cr. (₹)

Provision For Doubtful Debts 200 –

Bank Overdraft 1,654 –

Capital – 4,591

Trade payables – 1,637

Trade receivables 2,983 –

Discount Received 252 –

Discount Allowed – 733

Drawings 1,200 –

Office Furniture 2,155 –

General Expenses – 829

Purchases 10,923 –

Returns Inward – 330

Rent & Rates 314 –

Page 7 of 12
 Salaries 2,520 –

Sales – 16,882

Inventory 2,418 –

Provision for Depreciation on Furniture 364 –

Total 24,983 25,002

26 . From the following particulars, Find: 3

(i) Sales

(ii) Closing Stock

Particulars ₹

Purchases 35,000

Cost of Goods Sold 42,000

Opening Stock 10,000

Wages and Salaries 4,000

Carriage Outward 2,000

Return Outward 1,000

Rate of Gross Profit is 20% of Sales

27 Prepare Accounting Equation for the following transactions:- 4

a) Started Business with Cash ₹ 1,00,000 and Bank Balance ₹ 2,50,000.

b) Purchased Goods from Rahul for ₹ 25,000 and paid him 60% immediately.

c) Sold Goods costing ₹15,000 at a profit of ₹ 20,000 to Ramesh.

d) Security Deposit paid to Landlord ₹50,000 by cheque. Also paid him Rent of
₹ 20,000 in Cash.

28 Journalize the following transactions in the books of Rajan of Delhi: 4

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

Page 8 of 12
 immediately.

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

(iii)Goods valued at ` 2,500 distributed from stock as samples, as part of an advertising

campaign. These goods were purchased paying CGST and SGST @ 9% each.

(iv) Anjan, a customer to whom goods were sold, was allowed rebate of ` 2,000 because they
were of poor quality. These goods were sold charging CGST and SGST @ 9% each.

29 Enter the following transactions in the purchase book of Rajdhani Electronics, Delhi: 4

2020

Jan. 3 Bought from Bharat Electric Co., Dwarka Delhi on credit ( Invoice No. 1238)

100 tubelights @ ₹ 40 each

50 table fans @ ₹ 415 each

30 electric iron (Bajaj) @ ₹200 each

Trade discount 10%

Jan. 9 Purchased from Ashoka Traders, Karol Bagh, New Delhi on credit ( Invoice No.
551)

30 ceiling fans—Polar @ ₹ 600 each

20 mixer grinders – Usha @ ₹ 500 each

Trade discount 15%

Jan. 16 Bought goods from Royal Electric Co., Kashmiri Gate, Delhi, on credit ( Invoice

No.252)

20 Dozen Bulbs @ ₹ 100 per dozen

10 Table Fans @ ₹ 500 each

Less: Trade Discount 15%

Jan 22 Bought from Prakash Lamps, Delhi for cash ( Memo No. 715)

10 Ceiling fans—Orient @ ₹ 600 each

Jan 29 Bought from Laxmi Furnitures, Roohtak on credit ( Invoice No. 4312)

Page 9 of 12
 2 Tables @ ₹ 2,000 each

10 chairs @ ₹ 400 each

30 Enter the following transactions in Double column Cash book:- 6

2018 Transaction (₹)

Jan.

1 Cash in hand 4,000

Bank overdraft 7,300

4 Received cheque from Hari allowed discount ₹ 200 5,000

6 Cheque of Hari deposited in bank

8 Paid Ram by cheque discount received ₹ 200 4,300

9 Sold goods to Mohan at list price ₹ 5,000 less 10% trade discount and 2%
cash discount. Mohan agreed to pay cash

Hari’s cheque dishonored

11
Received cheque from Manoj discount allowed ₹ 100
13 3,900
Cheque received from Manoj is endorsed to creditor Gopal
15
Bank charges
17 400
Bank charged interest
1,200
Sold goods against cheque and it was banked on the same day
21 10,000
Paid salary
28 2,000
Paid rent
1,600
Deposited the entire balance of cash into bank after retaining ₹1,000 in the
31 office

31 Prepare a Bank Reconciliation Statement on 31st March, from the following particulars: 6

a. A’s overdraft as per Pass Book ₹ 12,000 as at 31st March.

b. On 30th March, cheques had been issued for ₹ 70,000 of which cheques worth ₹
3,000 only had been encashed up to 31st March.
c. Cheques amounting to ₹ 3,500 has been paid into the bank for collection but of these
Page 10 of 12
 only ₹ 500 had been credited in the Pass Book.
d. The Bank has been charged ₹500 as interest on overdraft and the intimation of which
has been received on 2nd April.
e. The Bank Pass Book shows credit for ₹ 1,000 representing ₹ 400 paid by debtor of A
directly into the Bank and ₹ 600 collected directly by Bank in respect of interest on
A’s investment. A has no knowledge of these times.
f. A cheque for ₹ 200 has been debited in bank column of Cash Book by A, but it was
not sent to Bank at all.
32 Urja Industries Ltd. purchased on 1st January, 2018 as a machinery for ₹ 1,60,000. On 1st 6
April, 2019, it purchased additional machinery costing ₹ 96,000. On 1st September, 2020, the
machinery purchased on 1st January, 2018 was sold off for ₹ 84,000 and on the same date
fresh machinery was purchased at the cost of ₹ 1,50,000.

Depreciation is provided at 10% per annum on the diminishing balance method every year.
Accounts are closed each year on 31st December. Show the machinery account for 3 years.

OR

A company has the following balances on 1st April, 2016 :

Machinery A/c 2,50,000

Provision for Depreciation A/c 1,20,000

Depreciation was provided @ 20% p.a on original cost method and accounts were closed on
31st March each year.

On 1st July, 2016, a part of machinery bought for ` 1,00,000 on 1 st July, 2013 was sold for `
45,000 and a new machinery was purchased for ` 1,25,000 on the same date.

Prepare Machinery A/c and Provision for Depreciation A/c for the year 2016-17.

33 The Trial Balance of Shri Govind shows a difference of ₹500, the credit side being excess. 6
The difference is subsequently found due to the following mistakes:

(a) The purchase of an Office table costing ₹ 2,000 had been passed through the Purchase
Day Book.

(b) A motor car had been purchased for ₹ 3,400. Cash had been correctly credited, but the
Motor Car account had been debited with ₹ 3,140 only.

(c) Interest on deposits received ₹ 60 had been debited in the Cash account, but had not been
credited to the Interest account.

(d) The balance in the account of Mr Rahim ₹ 100 had been written off as bad but no other
account had been debited

Page 11 of 12
 (e) A debit balance of ₹ 200 on the personal account of Mr John (correctly shown in the
ledger) has been omitted while extracting a trial balance.

Required: Pass the necessary entries for rectification and show the Suspense Account.

34 From the following figures prepare Trading and Profit and Loss Account for the year ended 6
31st March, 2020 and a Balance Sheet as on that date :
₹

Capital 86,800
Drawing 15,000
Investments 14,000
Cash 8,000
Rent and Insurance 3,000
Opening Stock 36,600
Purchases 1,86,000
Sales 3,05,000
Sales return 5,000
Wages 22,000
Carriage 4,200
Bad debts 700
Bad debts provision 2,100
Sundry debtors 40,400
Sundry creditors 25,700
Furniture 8,000
Plant and machinery 50,000
Salaries 11,000
Advertisement 4,400
Goodwill 6,000
Freight 6,300
Commission (Cr.) 1,000

Adjustments :
1. Stock on 31st March 2020 was ₹ 31,500
2. Salary and wages for March 2020 were unpaid.
3. Rent outstanding amounted to ₹ 600 and insurance unexpired amounted to ₹ 400.
4. Commission amounting to ₹ 200 has been received in advance.
5. Write off ₹ 400 as bad debts, create provision for doubtful debts at 5% on sundry
debtors and provide 2% provision for discount on debtors and creditors.
6. Depreciate furniture and plant and machinery by 10%.

Page 12 of 12