G.D.

GOENKA PUBLIC SCHOOL, VASANT KUNJ

Practice Paper, SEPTEMBER 2021
CLASS XI
ACCOUNTANCY (055)

Time: 90 Minutes Max Marks: 40

General Instructions:

Read the following instructions very carefully and strictly follow them:

1. This question paper comprises 5 Sections. There are 55 questions in the

question paper.
2. There is an internal choice provided in each Section.
Section A has questions from 1 to 18 and 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 43. You have to attempt any five
questions.
Section D has questions from 44 to 50. You have to attempt any six
questions.
Section E has questions from 51 to 55, you have to attempt any four
questions.
3. All questions carry equal marks. There is no negative marking.
4. Specific Instructions related to each Section are mentioned clearly before
the questions. Candidates should read them thoroughly and attempt
accordingly.

SECTION - A
Instructions: From question number 1 to 18, attempt any 15 questions.

1. What is the next step of accounting after Identifying and measuring the
financial transactions?
(A) Classifying
(B) Summarising
(C) Recording
(D) Analysis and Interpretation

2. Which of the following is not a limitation of accounting?

(A) Window Dressing.
(B) It ignores the effect of price level changes.
(C) It ignores qualitative elements.

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 (D) Can be used as Evidence in Court.

3. Which of the following is not a business transaction?

(A) Withdrew 10,000 from business for personal use by the proprietor (B)
Proprietor Withdrew Rs.20,000 from the Bank Account of the firm
to pay the school fees of his son.
(C) Proprietor withdrew Rs.12,000 from his personal account to pay the
school fees of his son.
(D) Goods taken worth Rs.3,000 for personal use.

4. Given below are two statements, one labelled as Assertion (A) and the
other labelled as Reason (R):
Assertion (A) : Trade Discount is not recorded in the books of accounts,
even if goods are purchased in cash.
Reason (R) : Trade Discount is allowed for timely payment of due amount
In the context of the above two statements, which of the following is
correct? Code:
(A) (A) and (R) both are correct and (R) correctly explains (A).
(B) Both (A) and (R) are correct but (R) does not explain (A).
(C) Both (A) and (R) are incorrect.
(D) (A) is correct but (R) is incorrect.

5. Given below are two statements, one labelled as Assertion (A) and the
other labelled as Reason (R):
Assertion (A) : Expenditure of Revenue Nature that gives benefit for
more than one accounting period is categorized as Deferred
Revenue Expenditure.
Reason (R) : A revenue expenditure, the benefit of which will
accrue in more than one financial year and will be written off in the
same manner (in more than one accounting period) is called
Deferred Revenue Expenditure.
In the context of the above two statements, which of the following is
correct? Code:
(A) (A) and (R) both are correct and (R) correctly explains (A).
(B) Both (A) and (R) are correct but (R) does not explain (A).
(C) Both (A) and (R) are incorrect.
(D) (A) is correct but (R) is incorrect.

6. Amount due from Krish (Debtor) Rs.50,000 and received a cheque from him
in full and final settlement of his account after discount of 2%. Identify the
correct entry from the following:

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 (A) Krish’s A/c Dr. 50,000
To Discount Received A/c 1,000
To Bank A/c 49,000
(B) Bank A/c Dr 49,500
Discount Allowed A/c Dr. 500
To Krish 50,000
(C) Bank A/c Dr 49,000
Discount Allowed A/c Dr. 1,000
To Krish 50,000
(D) Krish’s A/c Dr. 50,000
To Discount Received A/c 500
To Bank A/c 49,500

7.
Double entry system of accounting means:
(A) Entry in two sets of books
(B) Entry in two dates
(C) Entry for two aspects of the transaction
(D) Entry for one aspects of the transaction

8. Identify the missing information in this sequence -A; B; B*;C; C* will be

A. Cash A/c; Shyam; 19,600; Input IGST A/c; 3,600

B. Cash A/c; Shyam; 19,600; Output IGST A/c; 3,600
C. Bank A/c; Shyam; 19,600; Input IGST A/c; 3,600
D. None of these

9. GST is a consumption of goods and service tax based on

A) Development
B) Dividend
C) Destiny
D) Destination

10. Purchased goods for cash ₹4480 including CGST and SGST 6% each,
received discount of ₹60. The amount is to be entered in cash book for
Purchases,CGST and SGST respectively are:

(A) ₹3,940, ₹240, ₹240

(B) ₹4,000, ₹240, ₹240

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 (C) ₹4,420, ₹268.8, ₹268.8
(D) None of them

11. If a cheque received from our Debtor endorsed to our creditor in

settlement of dues , these transactions will be recorded in:

(A) Cash Book

(B) Journal proper
(C) Journal proper and Cash Book
(D) None of these

12. The following entry is done in the Cash Book is for which transaction

A. Cheque received on a prior date Deposited into the Bank

B. Cheque received and Deposited into the Bank on the same date
C. Cheque received on 13th January 2020 Deposited into the Bank
D. None of these

13. Which of the following transactions will result in higher balance in the
bank column of Cash Book in comparison to Pass book?
(A) Cheques issued but not presented for payment
(b) Interest allowed by bank
(c) Bank charges entered twice in Cash Book
(d) Cheques paid into bank for collection but not yet credited

14. Which one of the following is not a feature of written down value method
of depreciation?
(A) The book value of the asset becomes zero at any one point of time (B)
The depreciation is calculated on the book value of assets and not on
the cost
(C) The amount of depreciation charged on a specific asset reduces every
year.
(D) There is no need to estimate the residual value and estimated life at
the time of deciding the amount of depreciation.

15. (i) Dividend Equalisation Reserve is an example of Specific Reserve.

(ii) General Reserve is an example of Revenue Reserve.
(iii) General Reserve is shown on the Liabilities side of the Balance Sheet.
(iv) Secret reserves are reserves which are not shown in the Balance Sheet.

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 (A) All (i), (ii), (iii) and (iv) are correct.
(B) Only (i), (ii) and (iv) are correct.
(C) Only (ii), (iii) and (iv) are correct.
(D) Only (ii) and (iv) are correct.

16. Shiv paid school fees of his son by issuing a cheque from the bank account
of his business. According to Rohan, such payment should be treated as an
expense of the business. Identify the accounting principle being followed/
contravened here.
A. Business entity
B. Historical cost
C. Prudence
D. Money measurement

17. Match with the books of original entries where these transaction are to be
recorded
(List -I) (List II)

1.Goods purchased from Mr. X on (a) Sales return Book

credit

2. Defective goods sold to Veena (b) Journal Proper

on credit returned by her

3. Purchased furniture for (c) Cash Book

personal use

4. Closing Entries (d) Purchase Book

(A) 1-(d), 2-(a), 3-(b), 4-(c)

(B) 1-(d), 2-(a), 3-(b), 4-(b)
(C) 1-(b), 2-(a), 3-(b), 4-(b)
(D) 1-(c), 2-(a), 3-(b), 4-(d)

18. A sells goods to B, costing ₹ 1,00,000 at a profit of 10% above cost, less
10% trade discount and a further 5% cash discount if paid within 15 days.
Which of the following Journal entry would correctly record the sale in the
books of A?
A. Dr. A and Cr. Sales A/c by ₹ 99,000

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 B. Dr. B and Cr. Sales A/c by ₹ 99,000
C. Dr. B and Cr. Sales A/c by ₹ 90,000
D. Dr. Cash A/c 94,050, Discount allowed A/c by ₹4,950; Cr. Sales A/c
by ₹ 99,000.

SECTION - B
Instructions: From question number 19 to 36, attempt any 15
questions.

19. Which qualitative characteristics o f accounting information is reflected

when accounting information is clearly presented?
(A) Relevance
(B) Comparability
(C) Reliability
(D)Understandability

20. Identify the nature of following transactions as per modern

approach and what is the rule of debit and credit –
Description (List -I) Option (List II)

1- Bank Loan repaid (a)- Expenses , Decrease-Cr.

2- Purchases Return (b)- Liability, Decrease-Dr.

3- Rent Outstanding (c)- Liability , Increase –Cr.

(A) 1-(b), 2-(a), 3-(c)
(B) 1-(a), 2-(b), 3-(c)
(C) 1-(b), 2-(c), 3-(a)
(D) 1-(c), 2-(a), 3-(b)

21. A minor repair to the office building was done at Rs.20,000 plus CGST and
SGST @ 9% each. Identify the correct entry from the following:
(A) Repairs A/c Dr. 20,000 Input CGST A/c Dr. 1,800 Input SGST A/c Dr.
1,800 To Cash/Bank A/c 23,600
(B) Repairs A/c Dr. 23,600 To Cash/Bank A/c 23,600
(C) Repairs A/c Dr. 23,600 To Cash/Bank A/c 20,000 To Output CGST A/c
1,800 To Output SGST A/c 1,800
(D) Building A/c Dr. 20,000 Input CGST A/c Dr. 1,800 Input SGST A/c Dr.
1,800 To Cash/Bank A/c 23,600

22. If the amount of any known liability cannot be determined

accurately.
(A) Provision should be created
(B) Definite liability should be created

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 (C) Reserve should be created
(D) Should be shown as a contingent liability

23. A Second Hand Machinery purchased on 1st July 2020 for ₹3,60,000
and spent ₹1,40,000 on it to make it serviceable. Depreciation is
charged @ 12% p.a. Depreciation amount on 31st March 2021:
(A) 45,000
(B) 48,000
(C) 50,000
(D) 32,400

24. The following expenses were incurred by petty cashier during the month –
postage ₹1,200; conveyance ₹500; Sundries ₹1,700. Imprest amount is
₹8,000. What will be the amount of reimbursement?
A. ₹5,600
B. ₹8,000
C. ₹3,400
D. ₹2,000

25. Purchased goods to M/S Mukta, Delhi, 20 kgs tea packets @ ₹300 per kg
less trade discount @5%. Amount to be posted in the Purchase Book is
₹……………

(A) ₹7,500
(B) ₹5,400
(C) ₹5,700
(D) ₹6,900

26. Which of the following statements are correct:

i) As per the conservatism principle the valuation of stock is
at lower of cost or net realizable value.
ii) The convention of conservatism takes all the prospective
losses but leaves out prospective profits.
Iii) The Dual aspect concept states the proprietor of a business is treated
as External liabilities

A) Option (i) and (ii) is correct

B) Option (iii) and (ii) is correct
C) Option (i), (ii) and (iii) is correct
D) Option (i) and (iii) is correct

27. Overdraft as per Cash Book is ₹10,000. Cheques deposited but not credited

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 ₹2,500. Cheques issued but not encashed ₹3,500. Bank charges ₹700 were
debited twice in the Pass book while correctly entered in the cash
book.What is the balance as per Pass Book?
(A) Balance ₹9,700
(B) Overdraft ₹9,700
(C) Overdraft ₹10,300
(D) Balance ₹11,000

28.

A. ₹ 1,08,000
B. ₹ 1,12,000
C. ₹ 1,18,000
D. ₹ 98,000

29. Which of the following is a correct distinction between a Revenue reserve

and a Capital reserve?
(A) A revenue reserve is created out o f capital profits whereas a capital
reserve is created out of business profits.
(B) A revenue reserve can be used for distribution of dividend with certain
preconditions whereas a capital reserve can be used for distribution of
dividend without any preconditions.
(C) A revenue reserve is created for strengthening the financial position
whereas capital reserve is created for meeting capital losses or to be used
for purposes specified by the Companies Act.
(D) There is no distinction between revenue reserve and capital reserve

30. Sold goods costing ₹5,000 at a profit of 20% on sales the effect on
accounting equation will be:-
(A) Increase in cash ₹6,200,increase in stock ₹5,000 and increase
in capital ₹1,200
(B) Increase in cash ₹6,250,decrease in stock ₹5,000 and
increase in capital ₹1,250
(C) Increase in cash ₹6,000,decrease in stock ₹5,000 and
increase in capital ₹1,000
(D) None of them

31. Given below are two statements, one labelled as Assertion (A) and the
other labelled as Reason (R):

Assertion (A): Expenditure of Revenue nature that give benefit for more

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 than one Accounting period is categorised as Deferred Revenue
Expenditure.
Reason (R): A revenue expenditure, the benefit of which will accrue in
more than one financial year and will be written off in the same manner
(in more than one accounting period) is called Deferred Revenue
Expenditure .

In the context of the above statements, which one of the following is

correct?

(A) Both (A) and (R) are correct and (R) is the correct
explanation of (A)
(B) Both (A) and (R) are correct but (R) is not the
correct explanation of (A)
(C) Only (R) is correct
(D) Both (A) and (R) are wrong

32.

33. Which one of the following is not an objective of providing depreciation

A. For ascertaining the true profit and loss
B. Showing the True And Fair view of financial statement
C. For avoiding overpayment of income tax
D. Depreciation is a gradual and continuing process.

34. Given below are two statements, one labelled as Assertion (A) and the
other labelled as Reason (R):

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 Assertion (A): Human Resources in a business firm are important but are
not reflected in the financial statements of the firm.
Reason (R): Transactions should be recorded from view point of business
and not from the view point of businessman/owner.

In the context of the above statements, which one of the following is

correct?

(A) Both (A) and (R) are correct and (R) is the correct
explanation of (A)
(B) Both (A) and (R) are correct but (R) is not the
correct explanation of (A)
(C) Only (R) is correct
(D) Both (A) and (R) are wrong

35. In the books of D Ltd. the Machinery Account shows a debit balance of Rs
60,000 as on April 1, 2020 and Provision for Depreciation A/c at Rs 24,000.
A Machinery that Was purchased on 1st July 2019 for ₹20,000 was sold on
September 30, 2020 for Rs 12,300. The company charges depreciation @
20% p.a. straight line method. Profit/Loss on sale o f the machinery is :
(A) Rs 2,700 Profit
(B) Rs 2,700 Loss
(C) Rs 2,400 Profit
(D) None of them

36. Capital Redemption Reserve is:

A. General Reserve
B. Specific reserve
C. Revenue Reserve
D. Secret Reserve

SECTION - C
Instructions: From question number 37 to 43, attempt any 5 questions.

37. Given below are two statements, one labelled as Assertion (A) and the
other labelled as Reason (R):

Assertion (A): Whenever goods are going out of the business without sales,
purchase account is to be credited.
Reason (R): Goods will be recorded in the purchase book first and not in
any other account.

In the context of the above statements, which one of the following is

correct?

Accountancy - XI/2021-22/Page 10 of 15
 (A) Both (A) and (R) are correct and (R) is the correct
reason of (A)
(B) Both (A) and (R) are correct but (R) is not the
correct reason of (A)
(C) Only (R) is correct
(D) Only (A) is correct

38.
Nishu (Debtor) from whom an amount was due, she was declared
insolvent and paid only 70 paise in a rupee. Total bad debts from
her were written off ₹7,200. What amount is received by the firm?
(A) ₹24,000
(B) ₹16,800
(C) ₹15,000
(D) ₹16,500

39. Radhey purchased a building for ₹ 30 lac. After a period of five years, the
depreciation charged on the building amounted to ₹ 7 lac. However, due to
a boom in the real estate market, the market value of the property is ₹ 28
lac. State the value at which building should be recorded in the books of
accounts.
A. ₹ 28 lakhs
B. ₹ 30 lakhs
C. ₹ 27 lakhs
D. ₹ 23 lakhs

40. Due to which of the following, contingent liabilities are shown in the
balance sheet:
(A) Dual Aspect Principle
(B) Principle of Full disclosure
(C) Principle of materiality
(D) Going concern concept

41. Goods costing ₹2,00,000, sold at a profit of 1/4 of cost and cash discount
allowed to customer 2%. Half of the payment received in cash:-
A. Increase in cash by ₹1,22,500 and decrease in stock by ₹ 2,00,000
and increase in debtor by ₹ 1,25,000 and increase in capital by
₹47,500.
B. Increase in cash by ₹ 1,25,500 and decrease in stock by ₹2,00,000
and increase in debtor by₹ 1,25,000 and increase in capital by
₹50,000.
C. Increase in cash by ₹1,25,000 and decrease in stock by ₹2,00,000

Accountancy - XI/2021-22/Page 11 of 15
 and increase in debtor by ₹1,25,000 and increase in capital by
₹45,000.
D. Increase in cash by ₹1,20,000 and decrease in stock by ₹2,00,000
and increase in debtor by ₹1,25,000 and increase in capital by
₹47,500.

42. Deposited into bank entire balance after retaining ₹10,000. The total of
receipt side and payment side is ₹54,570 and ₹ 24,500 respectively. What
amount is to be deposited in bank account to record contra entry?
A. ₹30,070
B. ₹20,070
C. ₹10,000
D. ₹54,570

43. On 1st April, 2020, 1/3rd of the machinery purchased on 1st July, 2017 for
₹1,20,000 was sold for ₹19,000. The amount of profit/loss will be
₹……………………… . The rate of depreciation is 10%p.a. on written down
Value.

(A) Loss of ₹10,790

(B) Profit of ₹9,000
(C) Loss of ₹9,600
(D) Loss of ₹10,970

SECTION - D
Instructions: From question number 44 to 50, attempt any 6 questions.

44. What is the difference between the closing balances of two

machines after two years if both machines were purchased on the
same date with the same amount i.e., for ₹1,00,000? Machine I is
depreciated by 20% p.a. on Straight Line Method and Machine II is
depreciated by 20% p.a. on diminishing Balance Method :
(A) Value of Machine II is more by ₹2,000
(B) Value of Machine I is more by ₹4,000
(C) Value o f Machine II is more by ₹4,000
(D) Value of Machine II is less by ₹2,000

45. The cost of small calculator is accounted as an expense and not shown as
on asset in a financial statement of business entity due to:
(A) Materiality concept
(B) Matching concept
(C) Periodicity concept

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 (D) Principle o f full disclosure

46. Interest on Drawings(impact on Accounting equation)

(A) Increase in cash and increase in income
(B) Increase in capital and decrease in cash
(C) Decrease in capital and increase in capital
(D) Increase in cash and increase in capital

47. Given below are two statements, one labelled as Assertion (A) and the
other labelled as Reason (R):

Assertion (A): Repairs to second hand machinery before it is put to use are
capitalized..
Reason (R): All expenses incurred on an asset before it is put to use are
capital expenditure.

In the context of the above statements, which one of the following is

correct?

(A) Both (A) and (R) are true and (R) is the correct
explanation of (A)
(B) Both (A) and (R) are true but (R) is not the correct
explanation of (A)
(C) (A) is false, but (R) is true
(D) Both (A) and (R) are false

48. On 1-4-20, Pass book balance was unfavourable ₹5000. A customer

directly deposited a cheque into bank ₹10,000 and a cheque was issued to
pay salary ₹2,000. The bank balance as per Cashbook will be :
A. ₹17,000 cr.
B. ₹17,000 dr.
C. ₹10,000 dr.
D. ₹8,000 dr.

49. Param has provided the following information of his business on 31st March
2020 -
Total Assets -₹2,00,000 External Liabilities -₹55,000 Additional Capital
introduced during the year ₹40,000 Drawings made during the year ₹8,000
Profit earned by the firm for the year ₹43,000. Opening Capital of Param
is:
(A) 70,000
(B) 80,000
(C) 90,000

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 (D) 1,00,000

50. Interest on Capital indicates balance in trial balance:

(A) Debit
(B) Credit
(C) Debit or Credit
(D) None of them

SECTION - E
Instructions: From question number 51 to 55, attempt any 4 questions.

Question no.’s 51 and 52 are based on the Question

51. A,B,C,D are:

A. 20,000; 1,200; Gopal; 22,400
B. 22,400; 1,200; Gopal; 21,200
C. 20,000; 2,400; Gopal; 20,000
D. 21,200; 1,200; Gopal; 22,400

52. E, F, G, H are:
A. 20,000; 1,200; 13,000; 440
B. 22,400; 2,400; 12,000; 720
C. 22,000; 400; 12,000; 1,440
D. None of them

Accountancy - XI/2021-22/Page 14 of 15
 Question no.’s 53, 54 and 55 are based on the Question

53. If cash paid into bank on 6th Jan is ₹5,000, select the correct options for
A, B, C, D, E and F
A. To Cash A/c; NIL; 5,000; By Bank A/c; 5,000; NIL
B. To Bank A/c; NIL; 5,000; By Cash A/c; 5,000; NIL
C. To Cash A/c; 5,000; NIL; By Bank A/c; NIL; 5,000
D. To Bank A/c; 5,000; NIL; By Cash A/c; NIL; 5,000

54. If goods are sold with CGST and SGST @ 6% each on 30th January and
banked the amount on same day, select the correct options for G, H, I, J
and K
A. To Sales A/c; To Output CGST A/c; To Output SGST A/c; 48; 48
B. To Sales A/c; To Input CGST A/c; To Input SGST A/c; 48; 48
C. To Sales A/c; To Output CGST A/c; To Output SGST A/c; 480; 480
D. None of these

55. If rent is paid on 15th Jan. with CGST and SGST @ 6% each by cheque,
select the correct options for L, M and N
A. 1,000; By Input CGST A/c; By Input SGST A/c
B. 112; By Output CGST A/c; By Output SGST A/c
C. 106; By Input CGST A/c; By Input SGST A/c
D. 100; By Input CGST A/c; By Input SGST A/c

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