FINAL EXAMINATION 2020-21

CLASS XI

ACCOUNTANCY

3 hrs MM 80
Instruction:

a) Marks for questions are indicated against each questions.

b) Answers should be brief and to the point.
c) Draw the proper format.

1. Meena is owner of a restaurant. She paid son’s fees from her personal bank account
Rs 20,000. Whether this constitutes her Business Transaction? Give reason. 2
2. Shyam purchased a building for Rs 20 lakhs. After a period of five years, the
depreciation charged on the building amounted to Rs 3 lakhs. However due to boom
in the property market, the current market value of the building is Rs 28 Lakhs. State
the value at which building should be recorded in the books of accounts. Also, give
reason for the same. 2
3. Accountant of a firm discourages the making of provision for discount on creditors
(an anticipated income) but prefers to make provision for discount on debtors
(an anticipated expenses) . Which principle of accounting is followed? 2
4. M/s Krishna Traders follows accrual basis of Accounting. The firm sold goods of Rs
40,000 in June, 2018 on 2 months credit. According to the Accountant, the sale
should be recorded in the month of August, when the cash will be received. Do you
agree? 2
5. Out of Revenue Reserve and Capital Reserve, which reserve is free for distribution as
dividend? 2
6. The accountant of a firm was not able to tally the Trial Balance. So he balanced the
Trial Balance by writing on the credit side ‘Miscellaneous Receipts. ‘Do you agree
with the way he has tallied the Trial Balance. ? 2
7. The treatment of ‘Loss of Stock by Fire ‘is same in the Profit and Loss Account
whether the goods are insured or not. Do you agree? 2
8. Bank column of the Cash Book can have either debit balance or credit balance.
Why? 2
th
9. X drew a bill of Rs 4,000 on Y on 7 January, 2019 for 2 months. X discounted this bill
with Bank on 10th January, 2019 at 12 % p.a. At maturity, the bill was dishonoured
and bank paid Rs 70 as noting charges. How much amount Bank will deduct from the
bank balance of X at the time of dishonour? 2
10. Why it is necessary for accountants to assume that business entity will remain a
going concern ? 2
11. Identify the stakeholder group who would be most interested in the following :
(i) The ethical or environmental activities of the firm.
(ii) Whether the firm has a long - term future.
(iii) The ability of the firm to carry on providing quality products. 3
12. What will be effect of the following on the accounting Equation :
(i) Harish started business with cash Rs 18,000
(ii) Purchased goods for cash Rs 5,000 and on credit Rs 2,000.
(iii) Sold goods for cash Rs 4,000 ( costing Rs 2,400 ) 3
13. ‘Debit always stands for favourable things. ‘Comment. 3
Or
If a transaction has the effect of decreasing an asset, is the decrease recorded as a
debit or as a credit? If the transaction has the effect of decreasing a liability, is the
decrease recorded as a debit or as a credit ?
14. From the following information collected from the source vouchers of M/s ABC & Co.
New Delhi, prepare Debit Voucher. 3
2019
04.02.19 Purchased goods for Rs 19,000 plus CGST and SGST @
6% each vide cash Memo No. 101
15. Pass the Journal Entries , 3
2019
Jan 3 Purchased goods from M/s Ramesh Traders, Mumbai
for Rs 10,000 plus CGST and SGST @ 6% Each.
Jan 5 Sold goods to Ram Traders, Mumbai for cash for Rs
20,000 plus CGST @ 6% Each.
Jan 7 Sold goods to Star Ltd. , Delhi for Rs 15,000 plus IGST
@ 12 %
16. Prepare Ramesh and Sales Ledger accounts from question no. 15 3
17. Following transactions are of Abhiraj & Sons, Agra for the month of December, 2018.
Prepare the Sales Book : 3
2018
Dec 7 Sold to M/s Kajol Traders ( Mumbai ), on credit :
45 Raymonds coat @ Rs 10,000 each
20 Sweaters @ Rs 1,500 each
Trade Discount @ 15 %
IGST @ 18 %
Dec 15 Sold on Credit to M/s Seema & Co. ( Delhi ) :
60 Shirts @ Rs 250 each
CGST @ 9 % , SGST @ 9%
Freight Charges Rs 800
Dec 19 Sold in Cash to M/s Aman Bros. ( Lucknow ) :
30 Shirts @ Rs 600 each
40 Sweaters @ Rs 1,000 each
 Trade Discount @ 15 %
IGST @ 18 %
Dec 23 Sold on Credit to M/s Sons & Brothers ( Delhi )
150 Shirts @ Rs 750 each
30 Jackets @ Rs 2,500 each
Trade Discount @ 20 %
CGST @ 9% , SGST @ 9 %
Freight Charges Rs 2,000
Dec 30 Sold old furniture to Sunil on Credit Rs 800
CGST @ 9 % , SGST @ 9 %

OR
From the following transactions of M/s Ram Narayan Sales, Mumbai, prepar Sales
Book 2019
March 1 - Sold to M/s Mahima Tea , Dargelling , vide Invoice No. 1008 , 3 chests
of tea Rs 15,000 per chest less Trade Discount @ 5% and IGST is charged @ 12 % .
March 4 - Sold to M/s Madhurkar and Sons , Kolkata vide Invoice No. 1010 , 20 kg
Amul Butter @ Rs 750 per kg less Trade discount @ 5% and charged CGST and SGST
@ 6 % each .
March 5 - Sold to M/s Samuel Sons, Delhi vide Invoice No. 1012, 20 Kg Assam Tea @
Rs 1,800 per Kg less Trade discount @ 5%, charged IGST @ 12 %. Freight and Packing
charges were separately charged in the invoice at Rs 4,800.
18. From the following prepare Trial Balance : 3

Particulars Amount Particulars Amount

Capital 43,000 Discount Allowed 3,000
Building 40,000 Bank Overdraft 26,000
Creditors 70,000 Purchases 1,00,000
Machinery 37,000 Furniture 7,000
Purchases Return 3,200 Sales 1,05,400
Bad Debts 2,800 Debtors 60,000
Cash 2,400 Interest Received 4,600

19. Give rectifying entries for the following errors with the help of Suspense A/c : 3
(a) Total of Returns Outward of Rs 16,500 was posted as Rs 15,600.
(b) Discount allowed by a supplier was credited to his account Rs 50, though
correctly posted to Discount Received Account.
(c) Total of Sales Book was overcast by Rs 600.
20. ‘Accounts are not comparable under Single Entry System.’ Do you agree? 3
OR

Hari Started business with a capital of Rs 3, 00,000 on 1st January , 2018 . During the
 Year, he sold his private Car for Rs 70,000 and invested this amount into the

Business. He withdrew from the business Rs 1,000 per month up to 31st July, 2018

and thereafter, Rs 1,500 per month as drawings . If Capital at the end is Rs

4,20,000 . Prepare the Statement of Profit or Loss for the year ending

31st December , 2018.

21. Record the following transactions in a Two Column Cash Book : 5

Date Particulars Amount
20`19
Feb 1 Cash in Hand Rs 5,000 and at Bank Rs 10,000
Feb 4 Discount a Bill Receivable for Rs 4950 from Bank
Feb 5 Purchased goods for Rs 8,000 plus IGST @ 12 % from Karan
and Payment made by cheque Rs 8,500 in full settlement
Feb 8 Paid Wages 200
Feb 10 Paid by Cheque for a bill drawn upon us 6,000

OR
Prepare a double cash book from the following transactions .
2019
Aug 1 Cash in hand Rs 1,200 ; Overdraft at bank Rs 15,000
Aug 3 Further Capital introduced Rs 20,000 out of which Rs 16,000 deposited in
The bank.
Aug 4 Purchased goods from Vrijesh Trader amounting to Rs 3,000 and they
Allowed trade discount Rs 200. The amount paid by cheque.
Aug 4 Goods purchased for cash Rs 4,000.
Aug 5 Sold goods to Varun on Credit Rs 5,000 .
22. From the following information , Prepare Bank Reconciliation Statement as on 31st
December , 2009 : 5
(i) Debit balance shown by Pass Book Rs 17,800.
(ii) Cheque of Rs 21,600 was issued in the last week of December, but only
Cheques of Rs 14,800 were presented for payment.
(iii) Cheques of Rs 10,750 were presented to the bank. Out of them, a cheque of
Rs 4,200 was credited in the first week of January, 2010 .
(iv) A cheque of Rs 1,200 were debited in the Cash Book but was not presented in
the bank .
(v) Insurance Premium paid by bank Rs 1,450.
OR
st
(i) On 31 March , 2016 the bank passbook of Sheela showed a balance of Rs
15,000 to her Credit .
 (ii) Before that date , She had issued cheques amounting to Rs 8,000 out of
which cheques amounting to Rs 3,200 have so far been presented for
payment .
(iii) A cheque of Rs 2,200 deposited by her into the bank on 26 th March , 2018 is
not yet credited in the passbook .
(iv) She had also received a cheque of Rs 500 which although entered by her in
the bank column of Cash book , was omitted to be paid into the bank .
(v) On 30 th March , 2016 a cheque of Rs 1,570 received by her was paid into
bank but the same was omitted to be entered in the Cash book .

23. On 1 st January , 2013 A Lt. Company purchased machinery for Rs 20,00,000.

Depreciation is provided @ 15 % per annum on diminishing balance method . On
1 st March , 2015 1 / 4 of machinery was damaged by fire and Rs 40,000 were
received from the insurance company in full settlement . On 1 st September , 2015
another machinery was purchased by the company for Rs 15,00,000 .
Write up the Machinery Account from 2015 to 2016 . Books are closed on 31 st
December , every year . 5
24. A sells goods for Rs 20,000 to B on 1 st October , 2018 and draws bill for 3 months .
B Accepts the bill and A discounts it on 4 th October , with bank @ 6 % p.a.
Acceptance is dishonoured on due date and noting charges of Rs 400 paid by
bank . On 14 th January , 2019 , B paid the amount due to A in cash .
Pass necessary Journal Entries in the books of A .
OR
On 1 st January , 2016 X sold goods to Y for Rs 20,000 less 2 % cash discount . Y
Paid 50% price immediately and X drew a bill on Y for two months for the
balance . This bill is duly accepted by Y . The bill was dishonoured on the due date
and X paid Rs 100 as noting charges . Y paid the amount due to X by cheque after
ten days . Pass entries in the books of Y . 5
25. From the following information , prepare Trading and Profit and Loss Account for
the year ended 31 st March , 2019 and a Balance Sheet as at that date .
Particulars Amt. Particulars Amt.
Sundry Creditors 14,000 Opening Stock 20,000
Plant and Machinery 80,000 Rent 4,500
Sundry Debtors 27,000 Sales 1,45,000
Capital 1,00,000 Repairs 2,000
Purchases 95,000 Carriage 1,500
Wages 5,000 Bank 15,000
Drawings 9,000

The Closing Stock was Valued at Rs 6,000 . 5

26. From the following balances , prepare Trading and Profit and Loss Account for the
year ended 31 st March , 2019 and Balance Sheet as at that date after considering
the adjustments given below .
Partculars Amt. Particulars Amt .
DEBIT BALANCE Patents 10,000
Cash in Hand 1,500 Salaries 14,000
Cash At Bank 7,000 General Expenses 3,000
Purchases 70,000 Drawings 10,000
Return Inwards 600 Debtors 40,000
Wages 10,400
Power and Fuel 7,000 CREDIT BALANCES
Carriage Outward 3,000 Sales 1,20,000
Carriage Inward 4,000 Return Outwards 700
Opening Stock 12,000 Capital 80,000
Building 40,000 Creditors 60,000
Machinery 35,000 Bills Payable 6,800

Adjustments :
(i) Closing Stock on 1 st March , 2019 is Rs 16,000 .
(ii) Machinery to be depreciated @ 10 % p.a.
(iii) Depreciate Patents @ 20 % p.a.
(iv) Salaries amounting to Rs 4,000 were unpaid . 5