PRERNA INTERNATIONAL SCHOOL

VIHIRGAON, NAGPUR

Term-1 Examination (2021-22)

Class – XI Commerce
Subject – Accountancy (055)
Time Allowed – 90 minutes Maximum Marks – 40
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General Instruction:
- All questions carry equal marks.
- There is no negative marking.
- There are 55 questions in the question paper, you have to attempt 45 questions.
- There is an internal choice provided in each section.
- Part I contains three sections – A, B, C.
Section A has questions from 1 to 18
Section B has questions from 19 to 36
You have to attempt any 15 questions each in both the sections.
Section C has questions from 37 to 41. You have to attempt any four questions.
- Part II contains two sections – A & B.
Section A questions from 42 to 48. You have to attempt any five questions and section B
has questions from 49 to 55, you have to attempt any six questions.

PART I
SECTION – A
Instruction: From questions number 1 to 18, attempt any 15 questions.
1) Types of accounting are
a) Financial Accounting
b) Cost Accounting
c) Management Accounting
d) All of the above

2) Which of the following events represent business transactions?

a) Machinery is purchased for cash.
b) Goods are ordered for delivery next month.
c) The owner of the firm dies.
d) An employee is dismissed from his job.

3) Qualitative features of accounting information are -

a) Reliability
b) Relevance
c) Understandable
d) All of above
4) Users of Accounting information are
a) Creditors
b) Owner of the business
c) Investors
d) All of the above

5) Accountancy is
a) Only an art
b) Only a science
c) Art and science both
d) Neither art nor science

6) Trade discount is ;
a) Allowed at the time of receipt & payment.
b) allowed at the time of sale of goods.
c) Allowed in both cases.
d) Not allowed in any above cases.
7) Live stock includes
a) Animals
b) Plant & Machinery
c) Life insurance policy
d) Stock
8) A person to whom money is owned by the firm is called a :
a) Creditor
b) Debtor
c) Employee
d) None of above

9) Assets are
a) Fixed Assets
b) Fictitious Assets
c) Floating Assets
d) All of the above

10) Intangible Assets is –

a) Building
b) Creditors
c) Investment
d) Goodwill

11) Accounting standards must be –

a) Simple
b) Clear
c) Simple & Clear
d) According to the nature of the accounting
12) The amount withdrawn by the proprietor for his personal use will the cash and
capital.
a) Increase
b) Decrease
c) No change
d) None of the above

13) Which education is correct out of the following equation?

a) Capital = Assets + Liabilities
b) Assets = Liabilities + Capital
c) Assets = Liabilities – Capital
d) Liabilities = Assets + Capital

14) If total assets of a business are Rs.3,00,000 and capital of Rs.2,40,000 than creditor will be
a) Rs.60,000
b) Rs.5,40,000
c) Rs.2,40,000
d) None of the above

15) Liabilities include:

a) Debtors
b) Bills payable
c) Stock
d) All of the above

16) Accounting principles are :

a) Written
b) Oral
c) Acceptable to all
d) According to will

17) Features of accounting principles are

a) Usefulness
b) Feasibility
c) Objectivity
d) All of the above

18) Accounting statements :

a) Not fully accurate
b) Fully accurate
c) Party accurate
d) Totally inaccurate
 PART – I
SECTION – B
Instruction: From questions number 19 to 36, attempt any 15 questions.

19) From the point of view of Income Tax accounting year is

a) Every year Diwali
b) From 1st Jan to 31st Dec.
c) From 1st April to 31st March
d) None of the above

20) If capital of the business is Rs.80,000 and liabilities are Rs.20,000 then total assets of the
business will be
a) Rs.1,00,000
b) Rs.60,000
c) Rs.80,000
d) None of the above

21) Aspects of a transactions are

a) One
b) Two
c) Three
d) Four

22) The commodities in which the trader deals is called

a) Asset
b) Goods
c) Capital
d) Purchases

23) Out of the following the Natural Personal Account is

a) Ram’s A/c
b) Outstanding Salary A/c
c) Account of Insurance Company
d) SBI

24) Left hand side of an accounts

a) Debit
b) Credit
c) Capital
d) Assets

25) Basis of the accounting

a) Cash
b) Accrual
c) Cash and Accrual
d) None of the above
26) Which of the Real Account ?
a) Repair A/c
b) Building A/c
c) Ram’s A/c
d) LIC A/c

27) Example of Nominal A/c.

a) Discount A/c
b) Capital A/c
c) Drawing A/c
d) Building A/c

28) Purchase of typewriter is debited to

a) Purchase A/c
b) Typewriter A/c
c) Cash A/c
d) Bank A/c

29) Goods taken for personal use are called

a) Capital
b) Drawing
c) Liabilities
d) Assets

30) Bank overdraft account is

a) Personal A/c
b) Real A/c
c) Nominal A/c
d) Bank A/c

31) Accounts related to property are called _

a) Real A/c
b) Personal A/c
c) Nominal A/c
d) None of the above

32) Which one is not as the rate of GST.

a) 6%
b) 10%
c) 12%
d) 28%

33) Types of discount

a) Cash discount
b) Credit discount
c) Trade & Cash discount
d) Cash & Credit discount
34) A ledger is a book of
a) Primary entries
b) Final entries
c) Both of the above
d) None of the above

35) The process of transferring entries from the books of original entry
a) Journalising
b) Balancing
c) Posting
d) None of the above

36) The arrangements is done for future uncertainties.

a) Assets
b) Investments
c) Liabilities
d) Reserves & Provisions

PART I
SECTION – C
Instruction: From questions number 37 to 41, attempt any 4 questions.
37) Reserve is shown
a) In Profit & Loss A/c
b) In Liability sides of Balance Sheet
c) In Assets sides of Balance Sheet
d) In Trading A/c.

38) Depreciation means in the value of Assets.

a) Decrease
b) Increase
c) Decrease & increase
d) None of these

39) In case of machinery purchased journal entry is

a) Machinery A/c debited. b) Cash A/c debited
c) Purchased A/c debited. d) Bank A/c debited.

40) Purchased goods from Geeta of Rs.2,000 at 10% trade discount. Purchase A/c will be
debited by
a) Rs.2,000
b) Rs.2,200
c) Rs.1,800
d) Rs.1,000
41) Causes of Depreciation are :
a) Wear and tear
b) Obsolescence
c) Accidents
d) All of the above

PART – II
SECTION - A
Instruction: From questions number 42 to 48, attempt any 5 questions.

42) Depreciation of assets for business is

a) Expenses
b) Income
c) Loss
d) Gain

43) Goods sold to Hari of Rs.4,000 at 10% Trade discount. Hari A/c will be
a) Hari A/c …..Dr.
b) Cash A/c …..Dr.
c) Hari A/c…..Cr.
d) Cash A/c…..Cr.

44) Cash discount is given

a) On cash payment
b) On purchase of goods on credit
c) On Sales of goods on credit
d) On Credit Payment

45) Paid of Children’s school fees is credited to

a) Capital A/c
b) Cash A/c
c) Drawing A/c
d) Capital A/c

46) Depreciation = 𝐶𝑜𝑠𝑡 −

𝐸𝑠𝑡𝐸𝐸𝑚𝑎𝑡𝑒𝑑 𝑙𝐸𝐸𝑙𝑙𝑒 𝑜𝑙𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
a) Scrap Value
b) Market Value
c) Cost Value
d) None of these

47) Creation of Provision is

a) Necessary
b) Unnecessary
c) Illegal
d) Useless
48) For the deposit of cash into bank. The entry will be
a) Bank A/c ……Dr.
b) Cash A/c .........Dr.
c) Bank A/c ......... Cr.
d) None of the above

PART – II
SECTION – B
Instruction: From question number 49 to 55, attempt any 6 questions.
49) Paid 3,000 to Mohan, It will be recorded in the Cash A/c..
a) Credited
b) Debited
c) Asset Side
d) Liability side

50) Difference between the debit and credit side of an account is known as
a) Balancing
b) Posting
c) Journalising
d) None of the above

51) A machinery costing Rs.10,000 was purchased on 1st Jan 2021. Calculate depreciation
@10%p.a. by fixed installment method :
a) Rs.1,000
b) Rs.2,000
c) Rs.3,000
d) Rs.4,000

52) In case of sale of furniture. Furniture A/c is _

a) Debited
b) Credited
c) All of above
d) Asset side of Balance sheet

53) Main elements of accounting equation are

a) Capital, Assets, Liability
b) Cash and credit
c) Debit and Credit
d) None of these

54) Dead stock includes

a) Land and building
b) Debtors
c) Creditors
d) Investments
55) Book keeping means
a) To keep the book in locker.
b) To record transaction in the account book of the trading concern.
c) To write a books
d) To read a books.
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