Accountancy Class 11th (Term I)

Instructions
1. This paper has 40 questions, carying 1 mark each.
2. All questions are compuisory
3. Answer the questions as per the given instructions.
M.M. 40
Time:90 Minutes

Multiple Choice Questions 5. GST is a . . . based tax on

consumption of goods and services.
Direction (Q. Nos. 1-20) All the
questions have four options out of which (a) consumption (b) destination
only one 1s correct. Choose the correct (c) income (d) None of these

option as your answer. 6. Find the total assets of the firm, if the
1. Use of common unit of measurement capital is ? 1,60,000 and liabilities are
7 40,000.
and common format of reporting (a) 1,20,000 (b) R 2,00,000
promotes. (c) 1,60,000 (d)40,000
(a) Comparability (b) Understandab ility
{c) Relevance (d) Reliability 7. Vouchers prepared for transactions with
multiple debits and multiple credits are
2. Neel Ltd. deals in selling and buying
furniture. Here, furniture is
known as.
(a) Complex voucher
(a) fixed asset for Neel Ltd. (b) Transaction voucher
(b) intangible asset for Neel Ltd. (c) Multiple voucher
(c) goods for Neel Ltd. (d) None of the above
(d) None of the above
8. What will be the effect of the following
3. Which of the following is a limitation of transaction on accounting equation.
accounting? Bought plant and machinery for the
(a) It is historical in nature business for R 1,25,000 and an advance of
(b) It considers only quantitative information 7 10,000 is paid in cash to M/s XYZ Ltd.
(c) It may be affected by window dressing (a) This transaction increases plant and
(d) All of the above 1,25.000, decreases
machinerylassets) by
4. Which accounting concept requires that cash by 10,000 and increases liabilities
(M/s XYZ Ltd. as creditor) by R 1,15,000
efforts should not be wasted in recording
(b) This transaction increases plant and
and presenting facts, which are immaterial
in the determination of income? machinerylassets) by 1,25.000, decreases
cash byR 10,000
(a) Objectivity Concept (c) This transaction increases plant and
(b) Materiality Concept
machinerylassets) by R 1,25,000, decreases
cash by 1,25,000
(c) Conservatism Concept
(d) Consistency Concept (d) None of the above
 9. Which of the following is/are feature(s) 16. Difference caused due to bank charges
of journal? of1,250 debited to firm's current
(a) It is a daily accounting record account by the bank is an example of
(b) It records both credit and debit aspects ofa dilference caused due to error.
transaction (a) True D) False
(c) No explanation of the transactions is given (c) Can't say (d) Partially true
(d) Both (a) and (b)
17. Cost of a machine is 4,20,000 with
10. What will be the journal entry if goods value is the
salvage 20,000. What
of 50,000 are purchased for cash from depreciation amount for 2nd
year as

Ian? written down value method?

per
(a) Goods Alc Dr 50,00po
Charge depreciation @ 10% p.a.
To lan A/c 50,000
(a) 37.80o (b) 42.000
(b) Purchases A/c Dr 50.000
(c) 46,200 (d) 38,800
To lan A/c 50,000
(c) Purchases A/c Dr 50.000 18. Which of the following is/are cause(s)
To Cash A/c 50,000 of depreciation?
(d) None of the above (a) Wear and tear due to use or passage of
11. If business pays insurance premium
a
time
by cheque of 5,000, which of the (b) Expiration of legal rights
be debited? (c) Abnormal factors
following account will (d) All of the above
(a) Insurance account (b) Cheque account
(c) Cash account (d) Bank account 19. A machine is purchased for 75,000
and is expected to have a useful life of
12. The debit notes issued are used to
prepare which book? 10 years. At the end of 10th year, it is
expected to have a sale value of 7 7,000
(a) Purchase return book (b) Sales return book
but expenses related to its disposal are
(c) Sales book (d) Purchase book
estimated at ? 2,500. Then its
13. Rent due for the month of March, 2021 depreciable cost is
worth 15,000 will apPpear in which (a) 75,000
side of cash book?
(b) F 68.000
(a) Receipt (b) Payment
(c) Contra (d) None of these
(c)R 70,500
(d) None of the above
14. Overdraft as per cash book is 7 10,000, 20. Which of the following correctly
cheques but not credited for
deposited
72,500. What is balance as per pass
differentiates between reserves and
profit?
book?
4) A provision is a charge against
(a)11,000 (b) F4,000
(c)R12,500 (d) 16.000 profit whereas reserve is an
appropriation of profit.
15. The differences between the cash book (i) Provision is made for a known
and the bankj ss book is caused by lity or expense the amou f
(a) timing differences on recording of the which is not certain whereas
transactions. reserve is created for strengthening
(b) errors made by the business or by the bank. the financial position of the
(c) Both (a) and (b) business.
(d) None of the above
 (ii) Provision is deducted before 24. Assertion (A) Income which is earned
calculating taxable profits whereas but not received is debited to accrued
a reserve is created from profit after income account.
tax and therefore it has no effect on
taxable profit.
Reason (R) As per the rules of
(a) Only (i) (b) (i) and (ii) accounting, all incomes a r e debited.
(c) (i) and (ii) (d) (i), (i) 25. Assertion (A) Petty cash book records
only small cash expenses.
Assertion-Reasoning MCOs
Direction (Q.Nos. 21 to 25) There are Reason (R) In every organisation,
arge number of small payments are
a

two statements marked as Assertion (A)
and Reason (R). Read 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 explanationof
Assertion (A)
(D) 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
Assertion (A)is false, but Reason (R) is true
(d
21. Assertion (A) Accounting is a source of
information.
made whose recording in cash book
may make it very bulky.
Case Based MCOs
Direetion Read the following case study
and ansuwer questions 26 to 30.
Stefan started a business for buying and
selling of stationery with R10,00,000 as an
initial investment, of which he paid 2,00,000
for furniture, ?2,00,000 for building and
4,00,000 for buyingstationery items. He
employeda sales person and clerk. At the end
of the month, he paid ?10,000 as their

(R) Accounting is a salaries. He sold some stationery for

Reason definite
process of interlinked activities, that T 3,00,000 for cash and some other stationery
begins with the identification of for 2,00,000 on credit basis to Mr. Sharma.
transactions and ends with the
Subsequently, he bought stationery items of
preparation of financial statements.
3,00,000 from Diya. In the first week of next
22. Assertion (A) When a person brings in month, there was a fire accident and he lost
some money as capital into his business, 60,000 worth ofstationery. A part of the
in accounting records, it is treated as furniture, which cost 80,000, was sold for
liability of the business to the owner ? 90,000.
of
Reason (R) Thethat
concept business
business does not
26. What is theamount of capital with
entity assumes
which Stefan started business?
has a distinct and separate entity from
(a) 2.00,000 (b) R4,00.000
its owners. (d) None of these
(C)R 10.00,000
23. Assertion (A) When recording each
27. What is the amount of fixed assets he
transaction, the total amount debited must
be equal to the total amount credited. bought?
(a)R 2.00.000
Reason (R) In double entry accounting. (b) 4,00,000
transaction affects and is
every (c)R10,00.000
recorded in at least two accounts. (d) None of the above
 28. What is the value of the goods (c) Purchases A/c Dr 4,00,000
To Sam 4,00.0
purchased?
(d) None of the above
(a) R 2,00,000 (b) 4,00.000
(c) R 10.00,000 (d) None of these 34. Which account will be credited when
goods are returned to Kiara??
29. Who is the creditor and state the
amount payable to him? a) Kiara
(b} Purchases returns
(a) Mr Sharma: R 3,00,000
(c) Purchases
(6) Mr Sharma: 2.00,000
(d) None of the above
(c) Diya: 3,00,000
(d) None of the above 35. For recording the payment of cartage of
200
30. What is the total amount of expenses
and losses incurred? (a) cartage account will be debited and cash
account will be credited.
(a) 10.000 (b)R60,000 (b) cash account will be debited and cartage
(c)R70.000 (d) None of these
account will be credited.
Direction Read the following case study (c) cartage account will be debited and
purchases account will be credited.
and answer questions 31 to 35.
(d) None of the above
Adhir started a business with cash F2,00,000
and a building valued at R 10,00,000. He Direction Read the following case study
and answer questions 36 to 40.
purchased goods amounting to R 4,00,000 out
of which goods of R 3,60,000 were purchased On 31st March, 2021, Mr. Sharma's cash
on credit from Sam. He sold goods to Arav of book showed a bank balance of 1,86,000. It
88,000. Anil returned goods worth 8,000. differed with the balance shown in his pass
He purchased goods of 1,26,000 from Kiara book. A closer scrutiny revealed that cheques
returned
but goods of 6,000 on finding them
defective. He purchased goods of R 4,000 for
issued to creditors but not yet presented to
the bank for payment amounted to 36,000.
cash. He paid cartage of R 200 and interest on Dividend of 2,500 was received by the bank
loan amounting to 2,000. but not entered in the cash book. Interest of
625 was allowed by the bank. Cheques of
31. Which is the first book of account that
7,700 were deposited into bank for
Adhir will prepare?
collection but not collected by bank upto this
a) Purchase book (b) Sale book
date. Bank charges amounted to 7 100. A
(c) Journal (d) Ledger
cheque of 7 160 deposited into bank was
32. What is the amount of capital dishonoured but no intimation was received.
introduced by Adhir? Bank paid house tax of R 175 on his behalf but
(a) T2,00,000 (b) R 10,00,000 no information was received from the bank in
(c)R 12.00,000 ) Zero this connection.

33. What will be the journal entry passed 36. Cheques issued to creditors but not yet
on goods purchased from Sam? presented to the bank for payment
(a) Purchases A/c Dr 4,00,000 amounting to R 36,000 will be
To Cash A/c 40,000 (a) deducted from debit balance of cash book.
To Sam 3,60.0
,000 (b) ignored.
(b) Purchases A/c Dr 4,00,000 c) added to debit balance of cash book.
To Cash Alc ,00.000 (d) None of the above
37. Cheques of R 7,700 were deposited into 39. Bank paid house tax of R 175 on his
bank for collection but not collected by
bank will be
behalf but no information was received
from the bank, this will lead to
(a) deducted from debit balance of cash book (a) balance in cash book will be lesser than the
(b) added to debit balance of cash book. balance of pass book.
(c) ignored. () balance in pass book will be greater than
(d) None of the above the balance of cash book.
(C) balance of pass book will be lesser than the
38. Difflerence caused due to bank charges balance in cash book.
amounting to 100 is an example of (d) None of the above
(a) timing differences on recording of
transactions.
40. What is the balance of pass book on
31st March, 2021?
(b) errors made by the business.
(c) errors made by the bank. (a) ? 2,16,990 (b) 2.25.125
(d) None of the above (c)R1,86,000 (d) Noneofthese