ST.

XAVIER’S SENIOR SECONDARY SCHOOL, DELHI – 110 054

Std. 11 Time : 3 hrs.
13-2-2023 Final Examination in ACCOUNTANCY Max. Marks : 80
GENERAL INSTRUCTIONS:
i) This question paper contains 34 questions. All questions are compulsory.
ii) Questions 1 to 20 carries 1 mark each.
iii) Questions 21 to 26 carries 3 marks each.
iv) Questions from 27 to 29 carries 4 marks each.
v) Questions from 30 to 34 carries 6 marks each.
vi) 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 (Short Answer Questions)
1. Excess of current assets over current liabilities in known as _______.
a) Capital b) Working capital c) Revenue d) Profit
2. Read the following Assertion (A) and Reason(R). Choose one of the correct alternatives given
Below:
Assertion (A): Due to the principle of prudence closing inventories are valued at cost price
or market price whichever is higher.
Reason (R): According to the principle of prudence, prospective profit should not be
recorded but all prospective losses should immediately be recorded.
Alternatives:
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 and Reason (R) is not the correct
explanation Assertion (A).
c) Assertion (A) is true but the Reason (R) is false.
d) Assertion (A) is false but the Reason (R) is true.
3. At the end of the year following balances are given: Capital ₹1,00,000 Assets ₹5,00,000
the amount of outside liabilities will be _______.
a) ₹6,00,000 b) ₹2,00,000 c) ₹10,00,000 d) ₹ 4,00,000
(OR)
At the end of the year following balances are given: Liabilities ₹3,00,000 Assets ₹5,00,000
the amount of capital will be ________.
a) ₹1,00,000 b) ₹6,00,000 c) ₹2,00,000 d) ₹8,00,000
4. This is created out of capital profit. Choose the correct option.
a) Contingency reserve b) General Reserve
c) Capital Reserve d) Provision
(OR)
Which among the following is a correct difference between Provision and reserve?
a) Provision is created out of legal necessity whereas Reserve is created as a matter
of prudence.
b) Provision is invested whereas reserve is not invested.
c) Provision is an appropriation to profit whereas reserve is a charge against profit.
d) Provision can be used as a distribution of dividend whereas a reserve cannot be used
for distribution of dividend.
5. Creditors and banks are the example of users of accounting and they are collectively known
as __________ users.
a) Internal users b) Managerial users
c) External users d) External and internal users.
6. Writing an amount in the wrong account but on the correct side the trial balance ________.
a) will affect b) will not affect
c) will reduce the difference by half d) will double the difference
(OR)
Page 2 Std. 11 - Accountancy

Trial balance is the link between _______ and ________.

a) Journal and ledger b) Ledger and subsidiary books
c) Ledger and final accounts d) None of them.
7. The complete process of accounting is called ________.
a) Journalising b) Posting
c) Accounting cycle d) Business cycle
8. Purchased machinery on credit from Mr. Karan for ₹50,000 for use in business is recorded
in ___________.
a) Purchase Book b) Sundry Debtor’s Book
c) Journal Proper d) Cash Book
(OR)
Expenses involving small amounts are recorded in _______ book.
a) Purchase Book b) Sundry Expense Book
c) Journal Proper d) Petty Cash Book
Read the hypothetical text and answer the following questions:
Manu started a business on 1st April, 2020 with a capital of ₹25,000 and a loan of ₹12,500 borrowed
from Anu. During 2020–21 he had introduced additional capital of ₹12,500 and had withdrawn ₹7,500
for personal use. On 31st March, 2021 his assets were ₹75,000.
9. His capital as on 31st March, 2021 will be:
a) ₹68,750 b) ₹65,500 c) ₹58,000 d) ₹62,500
10. His profit during the year 2020-21 will be:
a) ₹32,500 b) ₹35,500 c) ₹37,500 d) ₹40,500
11. Statement (i): The money measurement concept states that only the money related
transactions can be recorded in the books of accounts.
Statement (ii): The creativity of the employee that contributes to the profit in the Research
Department can be recorded under the money measurement Concept.
a) Option (i) is the correct Statement b) Option (ii) is the correct Statement
c) Both Option (i) and (ii) are the correct Statement
d) None of the Option is the correct Statement.
12. According to the Duality Principle, calculate the owner’s claim, if the firms outsider’s claim is
₹20,000 and the net worth of the assets that business owns is ₹70,000.
a) ₹50,000 b) ₹90,000 c) ₹70,000 d) ₹20,000
13. A cheque received and deposited on same day will be recorded in cash book in:
a) Cash column on debit side b) Cash column on credit side
c) Bank column on debit side d) Bank column on credit side
14. On 31st March 2022 balance of cash column of cash book is ₹12,000 after receiving ₹2,000
from Anil, giving cheque of rupees ₹3,200 to Sunil and payment of wages rupees ₹500.
Opening balance of cash book was ________.
a) ₹8,000 debit b) ₹13,700
c) ₹10,600 d) ₹12,300
15. This type of assets comes first in Assets side of Balance sheet as per liquidity order.
a) Intangible Assets b) Current Assets
c) Fixed Assets d) Non-Current Assets.
(OR)
Identify the type of assets comes first in Assets side of Balance Sheet in order of permanency.
a) Liquid Aassets b) Current Assets
c) Fixed Assets d) Fictitious Assets
16. The balance of machinery on March 31, 2019 is ₹1,60,000. The machinery was purchased on
April 1, 2017. Depreciation is charged @ 10% p.a. by Straight Line Method. The cost price of
the machine as on April 1, 2017 is _______.
a) ₹1,80,000 b) ₹2,00,000 c) ₹1,92,000 d) ₹2,20,000
Page 3 Std. 11 - Accountancy

17. A manager is entitled for a commission of 10% on net profit after charging such commission.
Net profit during the year is ₹ 4,40,000. Amount of manager’s commission debited to
profit & loss account is __________.
a) ₹44,000 b) ₹36,667 c) ₹42,667 d) ₹40,000
(OR)
Sales is ₹1,20,000; Profit is 33.33% on cost. Amount of cost of goods sold will be _______.
a) ₹90,000 b) ₹1,00,000 c) ₹1,50,000 d) ₹1,20,000
18. The original cost of a machinery is ₹15,000; salvage value is ₹1500 after 9 years and repair
charges in second year is ₹1,000. The Rate of Depreciation per annum is _____.
a) 10% b) 8% c) 12% d) 6%
19. When wrong account is debited or credited which error it is an _________.
a) Error of Principle b) Error of Omission
c) Error of Commission d) Compensating Error
(OR)
Suspense Account in the Trial balance will be entered in ________.
a) Manufacturing a/c b) Trading a/c
c) Profit & Loss a/c d) Balance Sheet
20. Identify the types of account to be shown in balance sheet
a) Real & Personal b) Nominal & Real
c) Nominal & Personal d) None of these 20 x 1 = 20
PART – B (Long Answer Questions)
21. Briefly explain any three importance of reserves. 3
22. Ascertain Gross Profit from the following information:
Particulars Amount Particulars Amount
Opening Stock 2,00,000 Carriage on Sales 30,000
Closing Stock 1,80,000 Office Rent 58,000
Purchases 8,50,000 Sales 14,07,000
Carriage on Purchases 23,000
(OR)
From the following information, prepare Trading Account for the year ended 31st March, 2021:
Adjusted Purchases ₹6,60,000; Sales ₹7,44,000; Closing Stock ₹50,400; Freight and Carriage
Inwards ₹3,600; Wages ₹6,000; Freight and Cartage Outwards ₹2,000. 3
23. Differentiate between SLM and WDV method of depreciation on the basis of its suitability,
effect and recognition.
(OR)
Show the effect of the following transactions on the Accounting Equation:
i) Started business with cash ₹50,000.
ii) Salaries paid ₹2,000.
iii) Wages outstanding ₹200.
iv) Interest due but not paid ₹100.
v) Rent paid in advance ₹150. 3
24. Calculate Closing Stock from the following details:
Opening Stock 20,000
Purchases 70,000
Cash Sales 60,000
Credit Sales 40,000
Rate of Gross Profit on Cost is 33.33% 3
Page 4 Std. 11 - Accountancy

25. From the following information, prepare an Analytical Petty Cash Book:
2022 April 1 Received for cash payment ₹20,000
2 Paid for postage ₹1,600
5 Paid for stationery ₹1,000
12 Paid for wages ₹800
16 Paid for carriage ₹600
20 Paid for conveyance ₹880
25 Paid for travelling expenses ₹3,200
28 Paid for office cleaning ₹400
29 Paid for courier ₹800
30 Sent registered notice to landlord ₹190 3
26. On 1st April, 2022, Gopal started business with a capital of ₹50,000. He made the following
transactions during the month of April 2022:
April 3 Purchased goods from Rita ₹20,000
April 4 Cash paid to Rita ₹10,000
April 6 Goods sold to Rohit ₹25,000
April 8 Received cash from Rohit ₹20,000
April 12 Goods purchased from Rita ₹12,000
April 18 Cash paid to Rita ₹20,000
April 25 Goods sold to Rohit ₹10,000
April 30 Received cash from Rohit ₹6,000
Read these transactions carefully and prepare and Rohit’s ledger Account.
Note: No need to pass journal entries and other ledger accounts. 3
27. The following trial balance is prepared by an incompetent Accountant. Redraft correctly
the Trial Balance: 4
Debit Balances Amount (₹) Credit Balances Amount (₹)
Capital 8,000 Debtors 7,580
Bad Debts Recovered 250 Bank Deposits 2,750
Creditors 1,250 Discount Allowed 40
Returns Outward 350 Drawings 600
Bank Overdraft 1,570 Returns Inward 450
Rent 360 Sales 13,690
Salaries 850 Bills Payable 1,350
Trade Expenses 300 Grant Received 1,000
Cash in Hand 210
Opening Stock 2,450
Purchases 11,870
TOTAL 27,460 TOTAL 27,460

28. Rectify the following errors by passing journal entries:

i) Old furniture sold for ₹500 has been credited to sales a/c.
ii) Machinery purchased on credit from Raman for ₹2,000 recorded through purchases
book as ₹16,000.
iii) Cash received from Rajat ₹5,000 was posted to the debit of Bhagat as ₹6,000.
iv) Depreciation provided on machinery ₹3,000 was posted to Machinery a/c as ₹300. 4
29. a) The cost of a small calculator is accounted as an expense and not shown as a separate
asset in financial statements of a business entity due to which principle? Explain.
b) Quality or calibre of management is not disclosed in the balance sheet, according to
which principle? Explain.
(OR)
Page 5 Std. 11 - Accountancy

Pass Journal entries in the books of Sukaran:

2022 April 18 Goods sold to Roma for ₹5,000 at 20% Trade discount and 3% Cash discount.
Half of the payment was received immediately.
April 20 Goods sold to Ramesh for ₹8,000. He paid ₹5,000 by cheque immediately.
April 25 Additional capital introduced as: cash ₹10,000; and Delivery Van (Personal asset)
of ₹ 50,000.
April 26 Cash paid to Anil ₹975. Discount received ₹25. 4
30. Prepare Sales Book from the following transactions of Sultan & Bros, Delhi:
Jan 2 Sold to Shri Dayal, Bengaluru:
250 Registers @ ₹85 each
5 Reams paper @ ₹300 per ream
Jan 12 Sold to Gupta Bros., Delhi:
250 Registers@ ₹85 each
50 Reams Ruled Paper @ ₹700 per ream
Less: Trade Discount 5%
Jan 18 Sold to Ram Saran Das:
20 copies Double Entry Book Keeping @ ₹85 each
Jan 31 Sold to Rishi Kumar, Bengaluru:
300 Registers @ ₹90 each
50 Reams Ruled Paper @ ₹700 per ream
20 Reams Paper @ ₹300 per ream
Less: Trade Discount 10%
(OR)
Prepare Returns Inward and Returns Outward Books of Manoj, Mumbai from the following
transactions and post them in Ledger Accounts:
2022 March 1 Mathur Bros., New Delhi, returned:
5 pairs of Shoes for being defective ₹ 2,000 per pair.
Less: Trade Discount 10%
March 5 Returned to Kanpur Leather Private Ltd., Kanpur
100 pairs of Chappals being not up to the approved sample.
They were purchased ₹300 per pair.
Less: Trade Discount 15%
March 12 Baluja Shoes Co., Mumbai, returned 12 pairs of ladies chappals sold to them
@ ₹4,000 per pair.
Less: Trade Discount 10%
March 20 Returned to Bata Shoes Pvt. Ltd., Mumbai: 100 pairs B.S.C Canvas Shoes
@ ₹500 per pair.
Less: Trade Discount 15%. 6
31. Prepare Bank Reconciliation Statement from the following particulars as on 31st March, 2021,
when Pass Book shows a debit balance of ₹2,500:
i) Cheque issued for ₹5,000 but up to 31st March, 2021 only ₹3,000 could be cleared.
ii) Cheques issued for ₹1,000 but omitted to be recorded in the Cash Book.
iii) Cheques deposited for ₹5,500 but cheques for ₹500 were collected on 4th April, 2021.
iv) A discounted Bill of Exchange dishonoured ₹1,000.
v) A cheque of ₹500 debited in Cash Book but omitted to be banked.
vi) Interest allowed by bank ₹200 but no entry was passed in the Cash Book.
(OR)
Tiwari & Sons find that the bank balance shown by their Cash Book on 31st March, 2022 is
₹40,500 (credit) but the Pass Book shows a difference due to the following reasons:
i) A cheque for ₹5,000 drawn in favour of Manohar has not yet been presented
for payment.
ii) A post-dated cheque for ₹900 has been debited in the bank column of the Cash Book
but it could not have been presented in any case.
Page 6 Std. 11 - Accountancy

iii) Cheques totalling ₹10,200 deposited with the bank have not yet been collected and
a cheque for ₹4,000 has been dishonoured.
iv) A bill for ₹10,000 was retired by the Bank under a rebate of ₹150 but the full amount
of the bill was credited in the bank column of the Cash Book.
Prepare Bank Reconciliation Statement and find out the balance as per Pass Book. 6
32. Prepare Two-column Cash Book of Bimal, Lucknow from the following transactions:
2021 June 1 Cash Balance ₹5,000 Bank Balance ₹17,500
June 5 Cash received from sale of personal asset deposited in firm's bank account ₹5,000
June 6 Cheque received as advance against sale, paid into bank ₹50,000
June 7 Paid S. Bose by cheque ₹12,500 Discount received ₹200
June 9 Paid wages in cash ₹3,000.
June 20 Received a cheque from A. Mukherjee and sent it to bank ₹6,000
June 21 Drawn from Bank ₹5,000
June 29 Paid office salaries in cash ₹4,000
June 30 Sold goods in cash and banked the same ₹8,000
June 30 Paid rent by cheque ₹1,000.
June 30 Deposited whole cash into bank after leaving ₹1,000 in hand. 6
33. Sukhdev purchased on 1st April, 2020, a machine for ₹6,000. On 1st October, 2020, he also
purchased another machine for ₹5,000. On 1st October, 2021, he sold the machine purchased
on 1st April, 2020 for ₹4,000. It was decided that Depreciation @ 10% p.a. was to be written
off every year under Diminishing Balance Method. Assuming the accounts were closed on
31st March every year, show the Machinery Account for the years ended 31st March, 2021
and 2022. 6
34. Following are the balances extracted from the books of Vijay on 31st March 2022:
Particulars Amount ₹ Particulars Amount ₹
Capital 2,45,000 Loan 78,800
Drawings 20,000 Sales 6,53,600
General Expenses 47,400 Purchases 4,70,000
Building 1,10,000 Motor Car 20,000
Machinery 93,400 Provision for Doubtful Debts 9,000
Stock on 1st April, 2021 1,62,000 Commission (Cr.) 13,200
Insurance 13,150 Car Expenses 18,000
Wages 72,000 Bills Payable 38,500
Debtors 62,800 Cash 800
Creditors 25,000 Bank Overdraft 33,000
Bad Debts 5,500 Charity 1,050
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2022 and
Balance Sheet as at that date after giving effect to the following adjustments:
i) Stock as on 31st March, 2022 was valued at ₹2,30,000.
ii) Write off further ₹1,800 as Bad Debts and maintain the Provision for Doubtful Debts
at 5%.
iii) Depreciate Machinery at 10%.
iv) Provide ₹7,000 as outstanding interest on loan. 6

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