ST. LAWRENCE CONVENT, SR.

SEC, SCHOOL
Class XI (2021-2022)
Accountancy UT-1

Time - 1hr 30mins Maximum Marks = 40

General Instructions
● All questions are compulsory.
● Question 1 to 20 carry 1 mark each.
● Question 21 carries 3 marks.
● Question 22 carries 4 marks.
● Question 23 carries 5 marks.
● Question 24 carries 8 marks.
● Try to attempt all questions in the stipulated time.
● Don't use unfair means to answer the questions.
● Take clear picture of your answer sheets, convert it in a pdf and send it to the
provided email ID -
class23@stlawrenceconvent.com

SECTION-A [1*20=20]

Q.1 Give any two examples of transactions which are not recorded in accounting
reports and books.

Q.2 Why accounting is called an information system?

Q.3 Which of the following term increases capital?

(a) Expenses
(b) Loss
(c) Drawings
(d) Profits

Q.4 A firm earns revenue of ₹ 21,000 and the expenses to earn this revenue is
₹15,000.Calculate its income.

Q.5 What is the purpose of cash discount?

Q.6 Distinguish between tangible and non-tangible Assets.

Q.7 A person who owes money to the firm for the sale of goods is
a_________________ .

Q.8 A liability arises because of______________ transactions.

Q.9 Given an example of a Voucher.

Q.10 _____________ starts where book keeping ends.

Q.11 The liability of a firm are ₹ 3,000; and the capital of the proprietor is ₹ 7,000.
The total assets are:
(a) 4,000
(b) 10,000
(c) 7,000
(d) None of these

Q.12 Decrease in one liability may lead to

(a) Increase in another liability
(b) Decrease in an assets
(c) Either (a) or (b)
(d) None of these

Q.13 Which is the last step of accounting as a process of information?

Q.14 Explain the term ‘Goods’.

Q.15 Which accounting equation is incorrect out of the following?

(a) Assets = Liabilities - Capitals
(b) Assets = Liabilities + Capitals
(c) Capital = Assets - Liabilities
(d) Liabilities = Assets - Capital

Q.16 Give an example of a transaction where an asset will increase and also the
liability.

Q.17 Heavy advertisement expenditure incurred in developing a new market comes

under which type of expenditure?

Q.18 Show the accounting equation if there are no liabilities.

Q.19 Give an item of internal liabilities.

Q.20 The equity of the owner is called ___________ .

SECTION -B

Q.21 Accounting records, transactions and events that can be measured in money
terms. Is this, in your opinion , a limitation of accounting or an advantage ? Give
reason. [3 marks]

Q.22 State the reason whether the following are capital expenditure, revenue
expenditure or deferred revenue expenditure.
(a) Wages paid to workers for setting-up a new machinery.
(b) Wages paid to workers for converting raw material into finished goods.
(c) Office rent paid in advance for 3 years.
(d) Expenditure of development of a product. [4 marks]

Q.23 (a) A had a capital of ₹ 75,000 On 1st April, 2020. He had also good amounting
to ₹ 15,000 which he had purchased on credit and the payment had not been made.
Find out the value of the total assets of the business.

(b) After a period of one month, he came to know that he suffered a loss of
₹ 1,700. He withdraw ₹ 800 for his personal use. Find out his capital and and assets
of the business. [5 marks]

Q.24 Use accounting equation to show the effect of the following transaction of M/S
Royal Traders and also prepare Balance sheet.
(a) Started business with cash Rs
1,20,000
(b) Purchased goods for cash ₹ 10,000
(c) Rent received ₹ 5,000
(d) Salary outstanding ₹ 2,000
(e) Prepaid insurance ₹ 1,000
(f) Received interest ₹ 700
(g) Sold goods for cash(costing ₹ 5,000) ₹ 7,000
(h) Goods destroyed by fire ₹ 500
[8 marks]