Solution

IMPORTANT QUESTIONS

Class 11 - Accountancy

1. (c) Balance sheet

Explanation: The balance sheet shows the financial position of assets and liabilities of the business.
2. (b) Suppliers of goods and services on credit

Explanation: Suppliers of goods and services on credit

3. (c) journal

Explanation: Ledger is called a book of final entry because there is no more entry made and is prepared from a journal which
is a book of original entry, to be used for future reconciling of and transfer to other official accounting records, such as the
general ledger.
4. (b) Real, Personal and Nominal Accounts are maintained

Explanation: Ledger is a book of Principal entry of books. Pure Single Entry System−Personal accounts like sundry debtors
and sundry creditor's accounts are maintained, but real and nominal accounts are not opened under this system. The double-
entry system followed for cash received from the debtors and the cash paid to the creditors.
5. (b) Cash is withdrawn from bank for personal use

Explanation: Cash withdrawn from bank for personal use is not a contra entry in the cash book because here only bank
account mention in an entry or for contra entry Cash and bank both comes in an entry.
6. (a) i, ii and iii

Explanation: i, ii and iii

7. (b) All of these

Explanation: Machines manufactured for sale, Furniture purchased for sale, Books and stationery purchased by a bookseller
are goods.
8. (b) Goodwill

Explanation: Goodwill is considered as an intangible (or non-current) asset because it is not a physical asset like buildings or
equipment. Hence it is not tangible assets.
9. (d) (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i)

Explanation: Transactions effect

a. Cash decrease, stock increase
b. Cash increase, capital increase
c. Cash decrease, capital decrease (rent is an expense)
d. Cash decrease, creditors decrease.
10. (d)  Rs.6000

Explanation: Assets = Capital + liabilities

Assets =1000 + 5000
Assets = Rs. 6000
11. (a) Debit Balance

Explanation: Real accounts are the assets of the firm and will always have a debit balance except for sales account and
purchase returns accounts which will show a credit balance. Real Account includes only Assets account only.
12. (c) Dr. all expenses and Cr all gains & Dr. what goes out and Cr what comes in

Explanation: Impersonal account means account other than personal. 

Rule of Personal account is debit the receiver credit the giver.
So, option 3 and option 4 is other than personal means Impersonal.
13. (d) at the beginning of the accounting year

Explanation: When a business first decides to use a double-entry bookkeeping system it needs to record an opening entry in
the ledger using the general journal. The opening entry will vary from business to business depending on the contents of its
opening balance sheet.

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14. (d) Purchase A/c

Explanation: Good given away as charity would be credited to Purchase A/c. Entry would be 

Charity A/c ... Dr.

To Purchase A/c
15. (b) Rs.135

Explanation: Total purchases price: 5 × 30 = Rs. 150

Less Trade discount (10%): Rs 15

Net amount = 150 - 15 = Rs135

We deduct trade discount in order to arrive at the purchase return amount from the total purchases.
16. (a) IGST

Explanation: Under GST, IGST is a tax levied on all Inter-State supplies of goods and services and will be governed by the
IGST Act. IGST will be applicable on any supply of goods and services in both cases of import into India and export from
India. IGST will be levied on interstate sales. ... Further, entry taxes are levied, which is borne by the buyer i.e., your customer.
17. Accounting or accountancy is the measurement, processing and communication of financial information of an entity.

The accounting field is evolving by adapting to the various needs of organizations at every level. However, there are 7 major types
of accounting:
i. Financial Accounting
ii. Management Accounting
iii. Governmental Accounting
iv. Tax Accounting
v. Forensic Accounting
vi. Project Accounting
vii. Social Accounting
18. Capital Account
Dr. Cr.

Particulars Amount (₹) Particulars Amount (₹)

Record a decrease in Capital on this side- Record increase in Capital on this side-

Dec. 31: Drawings 40,000 April 01: Commenced business 5,00,000

Feb. 28: Drawings 20,000 Aug. 01: Introduced additional capital 1,00,000

March 31: Profit earned 1,25,000

Balance 6,65,000

7,25,000 7,25,000

19. Journal Ledger

Journal is a subsidiary book of account. It is the storehouse for Ledger is the permanent and final book of accounts. It is
recording transactions. termed as the means of classified transactions.

Transactions are recorded in the journal in chronological order of Transactions are posted in the ledger in classified form
dates just after their occurrences. Journal is primary step. from the journal. Ledger is secondary step.

Transactions are recorded in a journal without considering their Transactions are recorded in the ledger in the classified
nature of classification. form under respective heads of accounts.

In ledger explanations of entries of transactions are not

In journal explanation of entries of the transaction are shown.
needed.

Generally, the ledger account of the ‘T’ form contains

eight columns- four on left and four on the right.

The format of the journal contains five columns.

But in statement format of the ledger account contains six
columns.

Journal helps in preparing ledger accounts correctly. The object of the ledger is to know the income and

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 expenditures of different heads with the help of journal.

20. i. Bills Receivable: A bill of exchange, when accepted by a debtor is called bills receivable. A bill of exchange is an order
instrument, written by a creditor and accepted by a debtor to pay a certain amount on demand or after a certain period.
ii. Bills Payable: When credit purchases are made, the settlement/payment to the creditors is sometimes done through a
document, known as "Bills Payable." These bills are accepted by the business and will be honoured by paying to the suppliers,
on the date mentioned on the bill.
iii. Income: Income is different from 'revenue'. The difference between revenue and expense (if revenue is more than expense) is
called income.

Assets Liabilities

= Creditor+
21. No. Particulars Cash Stock Debtor Furniture
Capital

(i) Started business with cash Rs 1,75,000 1,75,000 +0 +0 - = 0 + 1,75,000

(ii) Purchased goods from Rohit Rs 50,000 0 + 50,000 +0 0 = 50,000 + 0

= 50,000 +
New Equation 1,75,000 + 50,000 +0 0
1,75,000

Sold goods on credit to Manish (costing Rs 17,500) for Rs +

(iii) 0 + 20,000 0 = 0 + 2,500
20,000 (17,500)

= 50,000 +
New Equation 1,75,000 + 32,500 + 20,000 0
1,77,500

(iv) Purchased furniture for office use of Rs 10,000 (10,000) +0 +0 + 10,000 = 0 + 0

= 50,000 +
New Equation 1,65,000 + 32,500 + 20,000 + 10,000
1,77,500

= (50,000) +
(v) Cash paid to Rohit in full settlement of rs 48000 (48,000) +0 +0 +0
2,000

New Equation 1,17,000 + 32,500 + 20,000 + 10,000 = 0 + 1,79,500

+
(vi) Cash received from Manish RS 20000 20,000 +0 +0 = 0 + 1,79,500
(20,000)

New Equation 1,37,000 + 32,500 +0 + 10,000 = 1,79,500

22. Purchases Book
Date Invoice Input Input Input
Particulars L.F. Details Cost Total
2018 No. CGST SGST IGST

M/s White and Co., Kolkata

5 gross pencils @ Rs1200 per

6,000
gross

2 dozen registers @ Rs 500 per

1,000
dozen
Feb 1
7,000

Less: Trade Discount @ 10% 700

Add: IGST @ 5% 6300

315

6,615 6,300 315 6,615

Feb 4 The Boat Co., Delhi

8 Reams white @ Rs 500 each 4,000

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 10 Reams Ruled paper @ Rs 600 6,000
each

10,000

Less : Trade Discount @ 10% 1,000

9,000

Add : CGST @ 2.5% 225

SGST @ 2.5% 225

9,450 9,000 225 225 9,450

M/s Verma Bros., Delhi

80 Rotomac Pens @ Rs 5 each 400

Feb 5 Add: CGST @ 2.5 % 10 10

SGST @ 2.5% 10

420 400 10 10 420

Feb 28 15700 235 235 315 16485

Note: Cash purchase of Stationery and purchase of computer printer will not be recorded in the purchase of goods.
23. In the Books of .....
Dr. TWO COLUMN CASH BOOK Cr.

Particulars
Date Particulars (Receipts) V.No. L.F. Cash Bank Date V.No. L.F. Cash Bank
(Payments)
2017 ₹ ₹ 2017 ₹ ₹

March March
To Balance b/d 12,000 36,000 By Cash A/c C 15,000
1 2
2 To Bank A/c C 15,000 2 By Salaries A/c 12,500

By Bank Charges
4 To Sunil Seth A/c 3,000 12 20
A/c

To Cheques in Hand A/c

12 9,500 16 By Ravi A/c 2,000 6,000
(Note 1)

To Cheques in Hand A/c By Office Equip.

15 5,900 17 12,000
(Note 2) A/c

19 To Sanjay A/c (Note 3) 7,500 17 By Drawings A/c 3,000

25 To Sanjay A/c 7,520 22 By Sanjay A/c 7,520

29 To Sales A/c 20,000 60,000 24 By Ashok A/c 3,000

By Shyam sunder
30 To Interest A/c 300 26 11,400
A/c
31 To Cash A/c C 30,020 28 By Manohar A/c 8,000

31 By Bank A/c C 30,020

By Balance c/d
31 10,000 86,280
(b/f)

54,520 1,52,220 54,520 1,52,220

April To Balance b/d 10,000 86,280

1

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 Note:
i. Cheque received from Customer for ₹ 9,500 on 10th March will be recorded through Journal Entry
Cheques in Hand A/c Dr. 9,500

Discount Allowed A/c Dr. 500

To Customer's A/c 10,000

On 12th March, when it is deposited into bank, it will be recorded in the Bank Column of the Cash Book on the Dr. side.
ii. Cash books record cash and bank transactions in their respective columns in case of double column cash books.
24. In the books of ...

JOURNAL
Date Particulars L/F Debit (₹) Credit (₹)

Machinery A/c Dr 500

To Cash A/c 500

(Being ₹ 500 installation charges for machinery paid)

Charity A/c Dr 2,000

To Purchases A/c 2,000

(Being goods given as charity)

Interest on Capital A/c Dr 4,900

To Capital A/c 4,900

(Being interest @ 7% charges on capital of ₹ 70,000)

Cash A/c Dr 1,200

To Bad Debts Recovered A/c 1,200

(Being ₹ 1,200 bad debts recovered)

Loss by fire A/c Dr 2,000

To Purchases A/c 2,000

(Being goods destroyed by fire)

Rent A/c Dr 1,000

To Outstanding Rent A/c 1,000

(Being outstanding rent recorded in books)

Drawings A/c Dr 900

To Interest on Drawings A/c 900

(Being interest on drawings charged)

Cash A/c Dr 1,350

Bad Debts A/c Dr 1,650

To Sudhir's A/c 3,000

(Being 45 paise in a rupee received from Sudhir who owed ₹ 3,000)

Cash A/c Dr 7,000

To Advance Commission Received A/c 7,000

(Being commission received in advance)

Total 22,500 22,500

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