BLUE PRINT

CLASS XI ACCOUNTANCY, SET-1

SESSION ENDING EXAMINATION 2022-23

S.NO PART A NO OF QUESTIONS AND MARKS

NAME OF UNIT 1 MARK 3 MARKS 4 MARKS 6 MARKS 80 MARKS

1 THEORITICAL 8(1) ------------ 1(4) ----------- 12

FRAMEWORK OF
ACCOUNTANCY

2 ACCOUNTING PROCESS 8(1) 4(3) --------- 4(6) 44

PART B

3 FINANCIAL STATEMENT OF 4(1) 2(3) 2(4) 1(6) 24

SOLE PROPRIETORSHIP

TOTAL NO OF QUESTIONS 20(1) 6(3) 3(4) 5(6) 34 QUESTION

80 MARKS
 KENDRIYA VIDYALAYA SANGATHAN
ZONAL INSTITUTE OF EDUCATION AND TRAINING, CHANDIGARH
SESSION ENDING EXAM 2022-23
CLASS-XI, SET-1
SUBJECT: Accountancy
Time:3 Hrs. MM:80

General Instructions:

(i) This question paper contains 34 questions. All questions are compulsory.

(ii) This question paper is divided into two parts, Part A and B.

(iii) Question 1 to 16 and 27 to 30 carries 1 mark each.

(iv) Questions 17 to 20, 31 and 32 carries 3 marks each.

(v) Questions from 21, 22 and 33 carries 4 marks each.

(vi) Questions from 23 to 26 and 34 carries 6 marks each.

(vii) There is no overall choice. However, an internal choice has been provided in 7 questions of
one mark, 2 questions of three marks, 1 question of four marks and 2 questions of six mark

Part A
1. Which Qualitative characteristic of accounting information requires the use of common 1
unit and common format of reporting?
Or
Mukesh, a businessman, had paid the house rent where he lives from the business. Is this a
business transaction? Give reason
2 If the Rent of One month is still to be paid the adjustment entry will be: 1
(a) Debit outstanding rent a/c and Credit Rent a/c
(b) Debit Profit & Loss a/c and Credit rent a/c
(c) Debit Rent a/c and Credit Profit & Loss a/c
(d) Debit Rent a/c and Credit Outstanding rent a/c.
3 Which of the following errors is revealed by the Trial Balance: 1
(a) Wrong amount entered into the book of Original entry
(b) Wrong amount posted in the ledger account
(c) Complete omission of an entry from the books of original entry
(d) When accounting principle is violated while recording a transaction in the books
of Account.
4 Out of the following Assets which one is not an Intangible Assets: 1
(a) Patents
(b) Investment
(c) Goodwill
(d) Trademark
Or
Amount received from sale of goods is:
(a) Revenue receipts (b) Capitalize receipts (c) a and b both (d) None of these
5 Imprest amount ₹5000. What will be the amount of reimbursement if following expenses 1
were incurred by the petty cashier during the month – Wages =₹1450, Tiffin=₹1050,
Small Repairs =₹500, General expenses=₹400.
(a) ₹1600 (c) ₹ 3400
(b) ₹3050 (d) ₹ 3000
 Or
Credit balance of bank account in cash book shows :
(i) Overdraft
(ii) Cash deposited in our bank
(iii) Cash withdrawn from bank
(iv) None of these
6 “When a person brings in some money as capital into his business, in accounting records, 1
it is treated as liability of the business to the owner.” The concept relate to the.....
(a) Objectivity (b) Money measurement
(c) Business entity (d) Duel aspect
7 “Valuation of stock to be made either at its book value or its market value whichever is 1
less” It is stated by which accounting concept?
(a) Cost (b) Money measurement
(c) Objectivity (d) Prudence
8 Goods purchased from Raghav for ₹ 4,500 but goods recorded as ₹ 5,400 in the Purchases 1
Book. The type of error related to:
(a) Error of Omission (b) Error of Commission
(c) Error of Partial Omission (d) Error of Principle
9 X Ltd of Bilaspur, an owner of a shopping mall received rent on 1st April, 2020 from 20 1
tenants @ ₹ 15,000 per month for 18 months for the year ended 31st March, 2021. As per
the revenue recognition concept of accounting, Rent an income to be realised by ₹
______.
(a) 1,80,000
(b) 2,70,000
(c) 36,00,000
(d) 54,00,000
10 The accounting concept which suggested that each transaction should be recorded in the 1
books of account by supporting vouchers of transactions ___________.
(a) Objectivity (b) Dual aspect (c) Materiality (d) Consistency
11 Choose the correct answer from the following; 1
Seema Furniture House returned tables and chairs worth ₹ 1,10,000 to Mahesh Furniture
Mart. Where would you record this transaction?
i. Journal proper
ii. Return Inward book
iii. Return outward book
iv. Cash book
12 Double Entry means: 1
(a) Entry for the two aspects of books
(b) Entry at two dates
(c) Entry in two aspects of transaction
(d) All of the above
13 The liability arising from the purchase of goods on credit is called 1
(a) Creditors
(b) Accounts Receivable
(c) Loan
(d) Payable expenses
Or
If the capital of a business is Rs 5,00,000 and outside liabilities are Rs 2,00,000. Calculate
the total assets of the business
(a) Rs 7,00.000
(b) Rs 3,00,000
(c) Rs 9,00,000
(d) N one of these
14 Distinction between an expenditure whose benefit will be for a long period and whose 1
 benefit for a short period of say up to one year, is made under which of the following.
(a) Accounting Entity
(b) Going concern Entity
(c) Money Measuring Entity
(d) Accounting Period
15 The following balances appear in the books of Ram & CO 1
Cash – ₹20,000; Machinery –₹50,000; stock – ₹1,00,000; Debtors – ₹40,000 and creditors
– ₹30,000
The value of capital will be
a) ₹2,10,000
b) ₹1,80,000
c) ₹1,00,000
d) ₹1,60,000
16 What is Secret Reserve? 1
Or
Which of the following statements is not appropriate in relation to "Provision"?
(a) Provision is a charge against profit
(b) Provision is created for known liability
(c) Provision is created for strengthening the financial position of the business.
(d) Creation of provision satisfies the principle of conservatism
17 Differentiate between Provision and Reserve on the basis of following: 3
(a) Basic Nature
(b) Purpose
(c) Use for payment of dividend
18 Write any three interested users of Financial Statements of an organization along with the 3
reason of their interest in it.
Or
Define Accounting. Explain its objectives(any two).
19 Show the effect of the following transactions on assets, liabilities and capital through 3
Accounting Equation:
(1) Amit started business with cash ₹ 40000 and bank balance ₹10,000.
(2) Purchased goods for cash ₹15000 and on credit ₹5000.
(3) Sold goods costing ₹8000 for Cash at a profit of 10% on cost.
(4) Rent due ,but not paid ₹500.
20 Prepare a Purchase Day book of Shiv Stationery from the following information. 3
Date Particulars
2018 Purchased from Gagan Stationery Mart on credit
June 1 (a) 70 dozen pencils @ ₹ 25 dozen
(b) 10 dozen registers @ ₹ 15 per register
June 10 Purchased from Amrit Furniture 2 tables @ ₹ 1,500 per table.
June 15 Purchased 3 dozen ink pots @ ₹ 80 per dozen from Mehar paper Company
and received cash discount of ₹ 50
June 18 Purchased from Rehman Bros. on credit
(a) 5 reams of white paper @ ₹ 50 per ream
(b) 120 pens @ ₹ 60 per dozen.
Less Trade Discount of 10%
21 Pass Journal Entries in the books of Shri Zahid of Rajasthan assuming CGST@9% and 4
SGST @9% for the following transactions:
(a) Purchased goods for ₹3,00,000from Jitender of Gujrat.
(b) Sold goods costing ₹80,000 to Mr. Babudin of Rajasthan at a profit of 25% on cost
less trade discount 10%.
(c) Paid for advertisement ₹50,000.
(d) Proprietor withdrew for personal use ₹10,000.
Or
Prepare a Trial Balance from the following items:
Account ₹ Account ₹
Capital 24,000 Building 12,000
Opening stock 8,500 Returns inward 1,900
Furniture 2,600 Returns outward 350
Purchases 8,950 Trade expenses 1,000
Cash 7,300 Discount received 970
Carriage 300 salary 3,000
Sales 22,500 Office rent 2,270

22 From the following particulars of Mr. Vinod, prepare bank reconciliation statement as on 6
March 31, 2021.
1. Bank balance as per cash book ₹ 50,000.
2. Cheques issued but not presented for payment ₹ 6,000.
3. The bank had directly collected dividend of ₹ 8,000 and credited to bank account but
was not entered in the cash book.
4. Bank charges of ₹ 400 were not entered in the cash book.
5. A cheque for ₹ 6,000 was deposited but not collected by the bank.
6. Discounted bill from the bank was dishonoured but not taken into cash book of ₹ 12,000.
23 Record the following transactions in double column cash book of Mr. Rakesh Verma and 6
balance it.
Sept. 01: Balance of cash ₹ 22,000 and Bank overdraft ₹ 2,500.
Sept. 06: Received cheque on October 28th, for ₹ 4,000 from Gaurav sent into the bank.
Sept. 10: Bank has collected and deposited: Interest of ₹ 6,000; Dividend of ₹ 8,000.
Sept. 16: Bank has paid several payments on its due date: Insurance premium of ₹ 3,000
and School fees of the child of Rakesh Verma ₹ 5,000.
Sept. 24: Cash deposited into the bank ₹ 12,000.
Sept. 29: Sold goods (costing ₹ 25,000) at 20% profit for cash.
24 Trial balance of M/s Rathi Brothers did not agree and the accountant put the difference to 6
suspense account. He discovered the following errors:
(a) Sales return book overcast by ₹ 800.
(b) Purchases return to Sahu ₹ 2,000 were not posted.
(c) Goods purchased on credit from Narula ₹ 4,000 though taken into stock, but no entry
was passed in the books.
(d) Installation charges on new machinery purchased ₹ 500 were debited to sundry
expenses account as ₹ 50.
(e) Rent paid for residential accommodation of Mohan (the proprietor)
₹ 1,400 was debited to Rent account as ₹ 1,000.
Rectify the errors and prepare suspense account to ascertain the difference in trial balance.
25 M/s Ashoka Traders purchased two trucks for transportation of goods on 1st April, 2017 6
@ ₹ 7,50,000 per truck. On 31st March, 2020, one truck was sold for ₹ 3,20,000 and a new
one was purchased for ₹ 10,00,000.
You are required to prepare Truck Account and Provision for Depreciation Account from
1st April 2017 to 31st March 2020; in the following terms:
(a) Firm close its books of account on 31st March every year.
Firm provide depreciation on Truck @ 20% p.a. under Written Down Value (WDV)
method.
 Or
Bhushan & Company purchased Machinery on 1st April, 2019, for Rs 54,000 and spent
Rs 6,000 on its installation. On 1st December, 2020, it purchased another machine for Rs
30,000. On 30th June 2021, the first machine purchased on 1st April, 2019, is sold for Rs
36,000 and on the same date it purchased new machinery for Rs 80,000.
Depreciation was provided on machinery @ 10% p.a. on Original Cost Method annually
on 31st March. Give the machinery account for four years.
Part B
26 Net Sales ₹6,00,000. 1
Gross Profit 25% on cost.
Calculate cost of Goods sold.
27 Income Tax paid by a sole trader is reflected in his financial statements: 1
(a) On the debit side of the Trading a/c
(b) On the debit side of Profit and Loss a/c
(c) As an asset in the Balance Sheet
(d) As way of deduction from Capital in the Balance sheet.
Or
The financial statements consist of:
(i) Trial balance
(ii) Profit and loss account
(iii) Balance sheet
(iv) (i) & (iii)
(v) (ii) & (iii)
28 If Closing Stock appears in the Trial Balance then it will be appearing in: 1
(a) Trading a/c
(b) Balance Sheet
(c) Profit and Loss a/c
(d) Trading a/c and Balance Sheet.
Or
Choose the correct chronological order of ascertainment of the following profits from
the profit and loss account:
(i) Operating Profit, Net Profit, Gross Profit
(ii) Operating Profit, Gross Profit, Net Profit
(iii) Gross Profit, Operating Profit, Net Profit
(iv) Gross Profit, Net Profit, Operating Profit
29 The Manager is entitled to a commission of 5% on profit after charging such commission. 1
The profit before charging such commission is ₹ 10500.Hence the Manager’s commission
will be__________
30 Differentiate between capital expenditure and revenue expenditure. 3
Or
The following are the extracts from the trial balance of M/s Bhola & Sons as on March 31,
2017
Account title Debit Credit
Opening stock 2,00,000
Purchases 8,10,000
Sales 10,10,000
10,10,000 10,10,000
Closing Stock as on date was valued at ₹ 3,00,000.
You are required to record the necessary journal entries and show how the above items will
appear in the trading and profit and loss account and balance sheet of M/s Bhola & Sons.
31 Compute cost of goods sold for the year 2021 with the help of the following information. 3
Sales 20, 00,000
Purchases 15, 00,000
Wages 1, 00,000
 Stock (Apr. 01, 2020) 3, 00,000
Stock (March 31, 2021) 4,00,000
Freight inwards 1,00,000
32 Prepare the profit and loss account and balance sheet from the following information as 4
on March 31, 2021

Debtors 80,000
Bad debts 2,000
Provision for doubtful debts 5,000
Adjustments :
Bad debts ₹500 Provision on debtors @ 3%.
33 Calculate the amount of gross profit and operating profit on the basis of the following 4
balances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2021.
Opening stock 50,000
Net sales 11,00,000
Net purchases 6,00,000
Direct expenses 60,000
Administration expenses 45,000
Selling and distribution expenses 65,000
Loss due to fire 20,000
Closing stock 70,000
34 The following is the Trial Balance of Zoya Steels Ltd. as on 31st March 2018. 6
Name of Accounts Debit (Rs ) Credit (Rs )

Cash in Hand 1,080

Cash at Bank 5,260

Purchases and Sales 81,350 1,97,560

Return Inwards and Outwards 1,360 1,000

Wages 20,960

Fuel and Power 9,460

Carriage on Sales 31,400

Carriage on purchases 4,080

Opening Inventory 11,520

Building 60,000

Freehold Land 20,000

Machinery 13,000

Salaries 31,000

Patents 31,000

General Expenses 6,000

Insurance 1,200
 Capital 1,42,000

Drawings 10,490

Sundry Debtors and Creditors 29,000 31,600

Total 3,56,160 3,56,160

You are required to prepare Trading Account, Profit& Loss Account and Balance Sheet as
on that date after considering the following adjustments-
1. Inventory at the end was ₹13,600.
1. Insurance includes a premium of ₹ 170 for the next year.
1. Wages include a sum of ₹ 4,000 spent on the erection of cycle shed for employees.
4 A provision for bad and doubtful debts is to created on debtors @5 % on sundry debtor.
1. Manager is to be given a commission of 10% on Net Profits before charging such
commission.

Or

Problems based on the missing information. Fill the missing figures and items in the
following:
Trading and Profit & Loss Account
(for the year ended 31st March, 2019)
Particulars Amt. in ₹ Particulars Amt. in ₹

To Opening Stock ------ By Sales -------- --------

To Purchase -------- 81,000 Less: Return 5,000

Less: Return 1,000

To Wages 1,800 By Closing Stock 20,000

To Carriage Inwards 200

To Gross Profit b/d 17,000

1,15,000 1,15,000

To Insurance 600 By Gross Profit c/d -------

To Rent 5,000 By Discount 1,500

To Salaries 12,500 ------- By Net Loss -------

Add: Outstanding -------

To Bad Debts 200

Add: Further 100

Add: New Provision -----

 900

Less: Old Provision ------ 400

To Provision for discount 388

on Debtors

To Depreciation: 2,950

Building 2,250

Furniture 700

22,838 22,838

Balance Sheet
(as at 31st March, 2019)
Liabilities Amount. ₹ Assets Amount. ₹

Bills Payable 3,000 Cash in hand --------

Creditors ------- Cash at bank 15,000

Outstanding Salaries 1,000 Debtors 20,100 19,012

Capital --------- Less: Bad Debts ------

Less: Net Loss ------ 75,662 Less: New Provision 600

Less: Provision for

Discount -------

Closing Stock 20,000

Furniture 7,000 6,300

Less: Depreciation 700

Building 45,000 42,750

Less: Depreciation 2,250

-----------------------------------------------------------
 ACCOUNTANCY, SET-1
CLASS-XI

Time: 3 Hrs. MM: 80

MARKING SCHEME
PART A
1. Comparability 1
Or
No it is not a business transaction because it is his personal expense.
2 (d) 1
3 B) 1
4 b) 1
or
(a)
5 (c) ₹3400 1
Or
(i)
6 (c) Business entity 1
7 (d) Prudence 1
8 (b) error of commission 1
9 (c)36,00,000 1
10 a) Objectivity 1
11 iii) Return outward book. 1
12 (c ) 1
13 ( a) creditors 1
Or
(a)
14 (b) going concern entity 1
15 (b)1,80,000 1
16 It is a reserve the existence or the amount of which is not disclosed in the balance sheet. 1
It is also Known as hidden reserve.
Or
(c)
17 3
Basis of Difference Provision Reserve
Basic Nature Charge against profit Appropriation of profit

Purpose Created for known liability To strengthening financial

or expense of current year, position of firm. However,
amount is uncertain. some are mandatory under
Law.

Dividend payment Cannot be used for dividend Can be used for dividend
distribution distribution

18 ½ mark for each correct party and ½ mark for their correct individual interest. 3
Or
1 mark for definition and 2 marks for objectives
19 Statement showing Accounting Equation 3
Transaction Assets = Liabilities + Capital
Cash+bank+stock = creditors+o/s rent + capital
1. 40000+10000 =0 +50000
 2. -15000+ 0 +20000 =5000
New eq. 25000+10000+20000 =5000 +50000
3. 8800 -8000 = 800
New eq. 33800+10000+12000 = 5000 +50800
4. +500 -500
------------------------------------------------------------------------------------
Final eq. 33800+10000+12000 =5000 + 500 +50300
20 Total of Purchase book Rs 4315 3
21 4
JOURNAL
Date Particulars L.F. Debit Credit
a Purchases a/c Dr 3,00,000
Input IGST a/c Dr 54,000
To Jitender 3,54,000
b Babudin Dr 1,06,200
To Sales a/c 90,000
To CGST 8,100
To SGST 8,100
c Advertisement Exp. Dr 50,000
Input CGST Dr 4,500
Input SGST Dr 4,500
To Cash a/c 59,000
d Drawings Dr 10,000
To Bank/Cash a/c 10,000
Or
Trial balance
Account Dr. balance ₹ Account Cr. Balance ₹
Building 12,000 Capital 24,000
Opening stock 8,500 Sales 22,500
Furniture 2,600 Returns outward 350
Purchases 8,950 Discount received 970
Cash 7,300
Carriage 300
Trade expenses 1,000
Returns inward 1,900
salary 3,000
Office rent 2,270
67820 67820

22 6

Bank Reconciliation Statement (as on 31st March 2005)

Particulars Amt. (₹)

Balance as per Cash Book: 50,000

Add: Cheque issued but not yet presented 6,000

Bank has collected dividend & deposited into bank 8,000 14,000
 Less: Bank charges debited by bank

Cheque deposited but not yet credited into bank 400

Discounted bill dishonoured, not entered in cash book. 8,000

12,000 20,400

23 6
Double Column Cash Book (in the books of Rakesh Verma)
Date Particulars L Cash Bank Date Particulars L Cash Bank
F F

Sep. 01 Balance b/d 22,000 Sep.01 Balance b/d 2,500

Sep.06 Gaurav 4,000 Sep.16 Insurance 3,000

Sep.10 Interest 6,000 Sep.24 Drawings 5,000

Dividend 8,000 Sep.30 Bank C 12,000

Sep.24 Cash C 12,000 Balance c/d 40,000 19,500

Sep 29 Sales 30,000

52,000 30,000 52,000 30,000

24 6
Rectified Journal entries
Date Particulars L.F Dr. (₹) Cr. (₹)

a Sales A/c Dr. 800

To Suspense A/c 800

(Being error rectified)

b Sahu Dr. 2,000

To Suspense A/c 2,000

(Being error rectified)

c Purchase A/c Dr. 4,000

To Narula 4,000

Being error rectified)

d Machinery A/c Dr. 500

To Sundry Expense A/c 50

To Suspense A/c 450

(Being error rectified)

 e Drawings A/c Dr. 1,400

To Rent A/c 1,000

To Suspense A/c 400

(Being error rectified)

Suspense Account
Particulars Amt. ₹ Particulars Amt. ₹

Difference of 3,650 By Sales A/c 800

trail balance By Sahu 2,000

(excess of By Machinery A/c 450

debit side) By Drawings A/c 400

3,650 3,650

25 6
Machinery Account
Date Particulars Amt. ₹ Date Particulars Amt. ₹

2017 2018

April 01 Bank A/c 15,00,000 March Balance c/d 15,00,000

31

15,00,000 15,00,000

2018 Balance b/d 15,00,000 2019

April 01 March Balance c/d 15,00,000

31

15,00,000 15,00,000

2019 Balance b/d 15,00,000 2020 Prov. For Dep. 3,66,000

April 01 March Bank A/c 3,20,000

31
2020 Profit & Loss A/c 64,000

March Bank A/c 10,00,000 Balance c/d 17,50,000

31

25,00,000 25,00,000

Provision for Depreciation Account

Date Particulars Amt. ₹ Date Particulars Amt. ₹

2018 2018

March Balance c/d 3,00,000 March Depreciation A/c 3,00,000

 31 31

3,00,000 3,00,000

2019 2018

April 01 Balance b/d 3,00,000

2019

March Balance c/d 5,40,000 March Depreciation A/c 2,40,000

31 31

5,40,000 5,40,000

2020 Machinery A/c 3,66,000 2019

March April 01 Balance b/d 5,40,000

31
Balance C/d 3,66,000 2020

March Depreciation A/c 1,92,000

31

7,32,000 7,32,000

Loss on sale of Truck = Depreciated value – Selling value

Depreciated value = Original value – Accumulated Depreciation for three years
Accumulated Depreciation = 1,50,000 + 1,20,000 + 96,000 = 3,66,000
Depreciated Value of sold Machinery = 7,50,000 – 3,66,000 = 3,84,000
OR
Loss on Sale of M1 Rs 10500
Balance of M2 Rs 26000
Balance of M3 Rs 74000.

PART B
26 Cost of Goods sold = Rs.4,80,000. 1
27 (D) 1
Or
(v)
28 (B) 1
Or
(iii)
29 500 1
30 Any three correct differences 1
Or Or
Trading A/c Dr. 10,10.000 1+
To opening stock 2,00,000 1+
To purchases 8,10,000 1

Closing stock A/c Dr. 3,00,000

Sales A/c Dr. 10,10,000
To trading A/c 13,10,000
Opening stock, purchases on dr, side of trading a/c
Closing stock and sales on the cr, side of trading a/c
 Closing stock in balance sheet asset side.

31 Cost of goods sold = 3,00,000+15,00,000+1,00,000+1,00,000-4,00,000 3

=16,00,000
32 Credit Profit and Loss account 115 4

33 Gross profit 4,60,000, Operating profit 3,50,000 4

34 Gross Profit = ₹87,430 6
Net Profit = ₹29,295 (Prov. For d/debts= ₹1,450; Manager’s Commission =₹3,255)
Balance Sheet = ₹1,79,660
Or
Trading and Profit & Loss Account
(for the year ended 31st March, 2019)
Particulars Amt. ₹ Particulars Amt. ₹

To Opening Stock 15,000 By Sales 1,00,000 95,000

To Purchase -------- 81,000 Less: Return 5,000

Less: Return 1,000

To Wages 1,800 By Closing Stock 20,000

To Carriage Inwards 200

To Gross Profit b/d 17,000

1,15,000 1,15,000

To Insurance 600 By Gross Profit c/d 17,000

To Rent 5,000 By Discount 1,500

To Salaries 12,500 15,000 By Net Loss 4,338

Add: Outstanding 2,500

To Bad Debts 200

Add: Further 100

Add: New Provision 600

900

Less: Old Provision 500 400

To Provision for discount 388

on Debtors

To Depreciation: 2,950
Building 2,250

Furniture 700

22,838 22,838

Balance Sheet
(as at 31st March, 2019)
Liabilities Amt. ₹ Assets Amt. ₹

Bills Payable 3,000 Cash in hand 5,100

Creditors 28,500 Cash at bank 15,000

Outstanding Salaries 1,000 Debtors 20,100 19,012

Capital 80,000 Less: Bad Debts 100

Less: Net Loss4,338 75,662 Less: New Provision 600

Less: Provision for

Discount 388

Closing Stock 20,000

Furniture 7,000 6,300

Less: Depreciation 700

Building 45,000 42,750

Less: Depreciation 2,250

1,08,162 1,08,162
 BLUE PRINT
CLASS XI ACCOUNTANCY, SET-2

SESSION ENDING EXAMINATION 2022-23

TIME : 3 HRS MM: 80

TOTAL

6 Marks
4 Marks
1 Mark

3 Mark

PART-A:FINANCIAL ACCOUNTING-I
UNIT-I
Theoretical 4 -- 2 -- 12
Framework
UNIT-II
Accounting process 12 4 2 2 44
and special accounting
treatment

PART-B: FINANCIAL ACCOUNTING-II

UNIT-III
Financial statements 4 -- 2 2 24
of sole proprietorship
TOTAL 20 4 6 4 80

NOTE:- There are options in Seven 1 Mark questions, Two 3 marks questions, One 4 marks and
two 6 marks questions.
 KENDRIYA VIDYALAYA SANGATHAN, ZIET CHANDIGARH
SESSION ENDING EXAMINATION
CLASS – XI, SET-2
ACCOUNTANCY, 2022-23
TIME : 3 HRS M M: 80
General instructions:
1.This question paper contains 34 questions. All questions are compulsory.
2. Questions 1 to 20 carry 1 mark each.
3. Questions 21 to 24 carry 3 marks each.
4. Questions 25 to 30 carry 4 marks each
5. Questions from 31 to 34 carry 6 marks each.
6.There is no overall choice. However, an internal choice has been provided in 7 questions of One mark, 2
questions of Three marks, 1 question of Four marks and 2 questions of Six marks.

PART A : FINANCIAL ACCOUNTING - I

1. A person who owes money to a firm for goods sold on credit is called a: 1
(a) Creditor
(b) Debtor
(c) Both (a) and (b)
(d) None of these
2. Accrual concept is based on: 1
(a). Matching concept (b). Dual aspect concept
(c). Cost concept (d). Going concern concept
3. Which of the following is not the user of accounting information? 1
(a). Short-term creditors (b). Debtors
(c). Government (d). Owners
Or
Which external user of accounting information is most interested in knowing the long-term
solvency position of the firm?
(a). Employees (b). Management
(c). Bank and financial institutions (d). Researchers
4. Which of the following is an example of a source document? 1
(a). Cash Memo (b). Invoice
(c). Sales Bill (d). All of these

5. X commenced business on 1st April, 2020 with a capital of ₹6,00,000. On 31st March, 2021 his 1
assets were worth ₹8,00,000 and liabilities ₹50,000. Find out his closing capital.
(a). ₹7,50,000
(b). ₹2,00,000
(c). ₹5,50,000
(d). None of these

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6. On Intra-state purchase of goods, which of the following GST is levied? 1
(a). CGST and SGST (b). SGST and CGST
(c). CGST and IGST (d). IGST
Or
Journal entry for stock left unsold at the of the year is:
(a). Dr. Closing Stock A/c and Cr. Trading (b). Dr. Trading A/c and Cr. Closing Stock
A/c A/c
(c). Dr. Closing Stock A/c and Cr. P & L A/c (d). Dr. P & L A/c and Cr. Closing Stock
A/c
7. Ledger is called a book of 1
(a). Primary entry (b). Secondary entry
(c). Final entry (d). None of these
Or
In Ledger which types of accounts are balanced and which types of accounts are closed at the
end of the accounting period?
(a). Permanent A/cs are closed and (b). Permanent A/cs are balanced and
Temporary A/cs are balanced. Temporary A/cs are closed.
8. Sales Book records only ………………….. sale of goods. 1
(a). Cash (b). Credit
(c). Revenue (d). Deferred revenue
9. Which of the following is not recorded in the Cash Book? 1
(a). Credit sales (b). Bad debts
(c). Depreciation on Machinery (d). All of these
Or
Debit balance of ₹10,000 in the Cash Column of the Cash Book shows that:
(a). ₹10,000 has been paid out. (b). ₹10,000 is owing.
(c). The amount received exceeds the (d). ₹10,000 has been credited into the
amount paid by ₹10,000. bank account.
10. Credit Balance on the bank account of a Cash Book is: 1
(a). Favourable balance (b). Unfavourable balance
(c). Overdraft Balance (d). Both (b) and (c)
Or
Credit Balance on the bank account of a Pass Book is:
(a). Favourable balance (b). Unfavourable balance
(c). Overdraft Balance (d). Both (b) and (c)
11. Read the following statement - Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
Assertion (A): Purchase account is credited when the proprietor withdrawal goods from the business
for his personal use.
Reason (R): Purchase account is credited because as a result of withdrawal of goods, net amount of
purchase of the business is reduced.
Alternatives:
a) Both (A) and (R) are correct, and (R) is the correct explanation of (A).

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 b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
c) (A) is correct but (R) is wrong.
d) Both (A) and (R) are incorrect.
12. If seller receives back the goods sold i.e. in case of sales return, which of the following is 1
prepared:-
(a). Credit Note (b). Debit Note
(c). Both (a) and (b) (d). None of these
13 The term ‘Depletion’ is used for which types of assets?
(a). Liquid assets (b). Fixed Assets
(c). Wasting assets (d). Intangible assets
14 Arun purchased a machinery for 2,00,000 and scrap value of the machinery is ₹30,000 and 1
estimated life of the machinery is 10 years. What will be the rate of depreciation?
(a). 10% (b). 17%
(c). 12% (d). 11%
Or
A machine is purchased on April 1, 2021. On 31st March, 2022 the value of the machinery is
₹4,50,000 after charging depreciation @10% according Reducing Balance Method. What is the
cost of machinery as on April 1, 2021?
(a). ₹4,95,000 (b). ₹5,00,000
(c). ₹4,00,000 (d). Amount cannot be ascertained
15 Suspense A/c appears in the Trial Balance because of: 1
(a). One sided errors (b). Compensating errors
(c). Errors of principle (d). None of these
16 Purchase of Office Furniture of ₹1,200 has been debited to the General Expenses Account. It is 1
(a). a clerical error (b). an error of principle
(c). an error of omission (d). compensating error
17. Madan started a business on 1st April, 2019 with a capital of ₹50,000 and a loan of ₹25,000 3
taken from Sohan. During 2019-20, he had introduced additional capital of ₹25,000 and had
withdrawn ₹15,000 for personal use. On 31st March, 2020 his assets were ₹1,50,000. Find his
capital as on 31st March, 2020 and profit made or loss incurred during the year 2019-20.
Or
Give an example for each of the following transactions:
(i). Increase in one asset and decrease in another asset.
(ii). Increase in one asset and increase in liability.
(iii). Increase in asset and increase in owner’s capital.
18 Sold goods to Rahul & Bros within the state list price ₹2,50,000 at 20% trade discount and 4% 3
cash discount on sale price. Charged CGST and SGST @6% each. 80% of the amount received
by cheque immediately. Pass journal entry.
Or
Enter the following transactions in the books of Ridhdhi Traders assuming that all transactions
have taken place within the stat of Jharkhand. Assuming CGST @ 9% and SGST @9% (Entry
of setting off is not required to be done):
(i). Purchased goods for ₹5,00,000 from Astro Traders.

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 (ii). Sold goods to Pushkar Bros.for ₹3,00,000.
(iii). Commission of ₹10,000 received in cash.
19 Enter the following transactions in the purchase book of SR Cloth House, Ranchi, assuming 3
CGST @6% and SGST@6%.:
2018
April 4 Purchased from RK & Bros, of Ranchi
100 Metre Cotton Cloth @200 per Metre
80 Metre Woollen Cloth @₹500 per metre
April 12 Purchased from SK & co. of Patna Bihar
50 Metre Silk Cloth @600 per Metre
40 Metre Cotton Cloth @₹250 per Metre
Trade Discount 10%
April 20 Purchased from FashionFurniture House, Delhi
10 Chairs @ ₹2,000 per Chair
April 25 Purchased from Shubham & Bros of West Bengal for cash
100 Metre Woollen Cloth @ ₹600 per Metre
Trade Discount is 15% and Freight Charges payable are ₹3,000

20 What are the differences between reserve and provision? (Any Three) 3
21. Explain the following terms in brief: - 4
(a). Asset, (b). Liability, (c). Revenue and (d). Expense
Or
Explain in brief any four objectives of Accounting?
22. Explain the following in brief: 4
(i). Principle of full disclosure and (ii). Money measurement concept
23. Trial Balance of a firm did not match and difference was placed in Suspense Account. The 4
following errors were subsequently identified:
(a). Sales Book was overcast by ₹200
(b). Goods sold to Manohar for ₹550 was posted as ₹5,500.
(c). Purchases Book was overcast by ₹800.
(d). Purchases Return Book was carried forward as ₹1,220.
You are required to pass the Journal entries for rectification of the above errors.
24. Prepare a Double Column Cash Book with Cash and Bank Columns from following information 4

2018 ₹
Sep 1 Cash in Hand 7,500
Bank Overdraft 35,000
Sep 2 Paid wages 2,000
Sep 5 Cash Sales of Plus CGST and SGST @6% 70,000
Sep 10 Cash deposited into Bank 40,000
Sep 15 Goods purchased for plus IGST @12% and paid by cheque. 20,000
Sep 20 Paid Rent 5,000
Sep 25 Dew from bank for personal use 4,000
Sep 30 Salary paid 10,000

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25. Prepare a Bank Reconciliation Statement as on 31st October 2022 from the following 6
information:
i) Favourable balance as per Cash Book ₹1,26,100.
ii) Cheque issued but not yet presented for payment ₹46,000.
iii) Deposited three cheques for ₹12,000, ₹25,000 and ₹20,000 respectively in the month of
October but out of these the first 2 cheques could be cleared by the bank so far.
iv) Bank charges of ₹500 not yet recorded in the cash book.
v) Directly deposited by a customer ₹16,000 not yet entered in the cash book.
vi) The bank has paid insurance premium on standing order ₹12,400.

26. AC Mills purchased machinery on 1st August 2015 for ₹90,000. On 1st October, 2016 it 6
purchased another machine for ₹40,000.On 30th June, 2017 it sold off the first machine
purchased in 2015 for ₹58,000 and on the same date purchased a new machinery for ₹1,00,000.
Depreciation is provided at 20% p.a. on the original cost each year. Accounts are closed each
year on 31st March.
Show the Machinery Account for three years.
Or
The following balances appeared in the books of Y Limited as on 1st April 2021:
Machinery account rupees ₹ 10,00,000
Provision for depreciation account ₹ 4,50,000
The machinery was depreciated at 10% per annum on original cost method. On 1st October
2021, a machine which was purchased on 1st December 2018 for ₹1,20,000 was sold for
₹34,000.
Prepare machinery account and provision for depreciation account for the year 2021-22.
PART B : FINANCIAL ACCOUNTING - II
27. Which type of expenses is shown in Trading Account? 1
(a). Direct expenses (b). Indirect expenses
(c). Opening expenses (d). Direct and Indirect expenses

28. If sales are ₹60,000 and the rate of Gross Profit on Csot of Goods sold is 25%, Cost of Goods 1
sold will be:
(a). ₹45,000 (b). ₹50,000
(c). ₹48,000 (d). None of these
Or
If sales are Rs.2,00,000 and the rate of Gross profit on cost of goods sold is 25%, then the cost of goods
sold will be :
(a). ₹1,60,000 (b). ₹1,50,000
(c). ₹1,70,000 (d). ₹1,80,000
29. Sales is equal to 1
(a). Cost of Goods sold – Gross (b). Cost of Goods sold + Gross
Profit Profit
(c). Gross Profit – Cost of Goods (d). Cost of Goods sold + Net
sold Profit

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30. Closing stock, if given inside the Trial Balance, is shown in 1
(a). Trading A/c and Balance Sheet (b). Profit and Loss Account
(c). Profit and Loss Account and (d). Balance Sheet
Balance Sheet

31. From the following information, prepare Trading Account for the year ended 31st March, 2022: 4
Adjusted purchases ₹11,00,000; Sales ₹12,50,000; Freight and carriage Inwards ₹6,000;Wages
₹14,000; Freight And Cartage ₹5,000; Closing Stock ₹1,00,000.
32 4
₹
Balance of Provision for doubtful debts on 1st April, 2020 3,000
Bad debts written off in the ended 31st March, 2021 2,000
Sundry Debtors after writing off Bad Debts 60,000
Bad Debts written off in the year ended 31st March, 2022 500
Sundry Debtors before writing off Bad Debts 500
Maintain provision for doubtful debts 20,500
Maintain provision for doubtful debts at 5%

Prepare Bad Debts Account and Provision for Doubtful debts Account
33 From the following balances extracted from the books of M/s Ahuja and Nanda. Calculate the amount of
6
:-
(a). Cost of goods available for sale
(b). Cost of goods sold during the year
(c). Gross Profit
Opening stock ₹25,000.
Credit purchases ₹7,50,000
Cash purchases ₹3,00,000
Credit sales ₹12,00,000
Cash sales ₹4,00,000
Wages ₹1,00,000
Salaries ₹1,40,000
Closing Stock ₹30,000
Sales Return ₹50,000
Purchases Return ₹10,000.

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34. From the following information prepare Trading & P&L A/C of M/s Indian Sports House for the 6
ending December March 31st, 2022.
Account Title Amount Account Title Amount
₹ ₹
Drawings 20,000 Capital 2,00,000
Sundry Debtors 80,000 Return outwards 2,000
Bad Debts 1,000 Bank overdraft 12,000
Trade Exp. 2,400 Provision for bad Debts 4,000
Printing & Stationery 2,000 Sundry Creditors 60,000
Rent, Rates and Taxes 5,000 Bills payables 15,400
Freight 4,000 Sales 2,76,000
Returns inwards 7,000
Opening Stock 25,000
Purchases 1,80,000
Furniture & Fixtures 20,000
Plant and Machinery 1,00,000
Bills Receivable 14,000
Wages 10,000
Cash in Hand 6,000
Discount allowed 2,000
Investments 40,000
Motor Car 51,000

5,69,400 5,69,400
Adjustments:-
i.Closing stock was ₹45,000
ii.provision for bad debts is to be maintained @ 2% on Debtors
iii. Depreciation charged on Furniture & Fixtures@5%,Plant and machinery @ 6% and Motor
Car 10%.
iv. A machine of ₹30,000 was purchased on July 1st, 2021.
v. The manager is entitled to a commission of @ 10% of the net profit after charging such
commission.
Or
From the following balances prepare a Trading and Profit and Loss account and Balance Sheet for the
year ended March 31, 2022
Account Title Amount Account Title Amount
₹ ₹
Carriage on goods purchased 8,000 Stock at the end 76,000
Carriage on goods sold 3,500 Purchases less return 1,60,000
Manufacturing expenses 42,000 Commission on purchases 2,000
Advertisement 7,000 Incidental trade expenses 3,200
Excise duty 6,000 Investment 30,000

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 Factory lighting 4,400 Interest on investment 4,500
Debtors 80,000 Capital 1,00,000
Creditors 61,000 Sales less return 5,20,000
Postage and Telegram 800 Depreciation 12,000
Fire Insurance Premium 3,600 Discount allowed 2,700
Patents 12,000 Discount on purchases 3,400
Income tax 24,000 Dock and clearing charges 5,200
Office expenses 7,200
Cash in hand 2,500
Bank overdraft 30,000
Motor car 60,000
Drawings 8,000
Audit fees 2,700
Plant 1,53,900
Repairs to Plant 2,200

----------------------------------------------------------------------

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 ACCOUNTANCY, SET-2
SESSION ENDING EXAMINATION - 2022-23
CLASS – XI

MARKING SCHEME
TIME : 3 HOURS MM: 80
1. (b) 1
2. (a) 1
3. (a) Or (c) 1
4. (d) 1
5. (a) 1
6. (a) Or (b) 1
7. (a) Or (b) 1
8. (b) 1
9. (d) Or (c) 1
10. (d) Or (a) 1
11. (a) 1
12. (a) 1
13 (c)
14 (a) Or (b) 1
15 (a) 1
16 (b) 1
17. Closing Capital ₹1,25,000 and Profit ₹65,000. 1 and ½ marks for
Or Closing Capital and
(i). Purchase of Machinery (Assets) for cash. 1 and ½ marks for
(ii). Purchase of Machinery (Assets) on credit. Profit.
(iii). Capital introduced by proprietor. Or
1 mark for each.
18 3
Date Particulars L.F. Amount Amount Or
(i). Bank A/c……Dr. 1,72,800 1 mark for each
Discount allowed A/c….Dr. 6,400
Rahul & Bros. A/c……….Dr. 44,800
To Sales A/c 2,00,000
To Output CGST A/c 12,000
To Output SGST A/c 12,000
Or
Date Particulars L.F. Amount Amount
(i). Purchases A/c……Dr. 5,00,000
Input CGST A/c…..Dr. 45,000
Input SGST A/c……Dr. 45,000
To Astro Traders A/c 5,90,000

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 (ii). Pushkar Bros. A/c…..Dr. 3,54,000
To Sales A/c 3,00,000
To Output CCGST A/c 27,000
To Output SGST A/c 27,000
(iii). Bank A/c…..Dr. 11,800
To Commission A/c 10,000
To Output CCGST A/c 900
To Output SGST A/c 900
19 April 4 and April 12 will be recorded in the Purchased book. 1 and ½ marks for
April 4 Purchase ₹48,000 Input CGST ₹1,200 Input SGST ₹1,200 Total April 4 and April12
₹50,400
April 12 Purchase ₹36,000 Input IGST ₹1,800 Total ₹37,800.
20 Basis of Provision Reserve 1 mark for each
difference difference.
Meaning It is created to meet a It is created to meet an unknown
known liability. liability.
Charge or It is a charge against It is an appropriation of profits.
appropriation profit.
Utilization for It cannot be utilized for It can be utilised for distribution
dividends distribution as as dividends.
dividends.
Object The object is to provide The object is to strengthen the
for depreciation, financial position of the business.
doubtful debts and
other specific liabilities.
Or any other correct difference.

21. i. Asset:- Anything which is in the possession or is the property of a business 1 mark for each
enterprise including the amounts due to it from others, is called an asset. Or
ii. Liability:- It refers to the amount which the firm owes to outsiders. ½ mark for each
iii. Revenue:- Revenue in accounting means the income of a recurring nature from point and ½ mark for
any source. each explanation
iv. Expense: Expense is the cost incurred in producing and selling the goods and
services.
Or
Objectives of Accounting:- (Any four)
(i). To keep systematic record of business transactions:-
(ii). To calculate profit or loss:-
(iii). To the exact reasons leading to net profit or loss:-
(iv). To ascertain the financial position of the business:-
(v). To ascertain the progress of the business from year to year:-
(vi). To prevent and detect errors and frauds:-
(vii). To provide information to various parties:-
(Or any other correct objectives)
22. (i). Principle of full disclosure:- This principle requires that all significant information 2 marks for each.
relating to the economic affairs of the enterprise should be completely disclosed.
Even the contingent liabilities must be disclosed as a footnote to financial
statements i.e. Balance Sheet. (ii). Money Measurement Concept:- According to this

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 concept only those transactions are recorded in the books of accounts which can be
measured in terms of money and those which cannot be recorded in terms are not
recorded in the books of accounts.
23. Date Particulars L.F. Amount Amount 4
(i). Sales A/c……Dr. 200
To Suspense A/c 200
(ii). Suspense A/c…..Dr. 4,950
To Manohar A/c 4,950
(iii). Suspense A/c…….Dr. 800
To Purchases A/c 800
(iv). Purchase Return A/c…………….Dr. 100
To Suspense A/c 100
24. Cash balance ₹85,900 and Bank Overdraft balance ₹28,300 4
25. i) + 1,26,100 6
ii) + 46,000
iii) – 20,000
iv) – 500
v) + 16,000
vi) – 12,400
Cr. balance as per Passbook = 1,55,200
26. Machinery A/c 2 marks for each
Date Liabilities Amount Date Assets Amount year
2015 To Bank A/c 90,000 2016 By Dep. A/c 12,000 Or
Aug.1 Mar By Balance C/d 78,000 (3M + 3M)
31
2016 To Balance B/d 78,000 2017 By Dep. A/c 22,000
Apr 1 To bank A/c 40,000 Mar By Balance C/d 96,000
Oct 1 31
2017 To Balance b//d 96,000 2017 By Dep. A/c 4,500
Apr 1 To Bank a/c 1,00,000 June By Bank A/c 58,000
Jun To P &L a/c 2,500 30 By Dep. A/c 23,000
30 2018 By Balance C/d 1,13,000
Mar
31
Or
Machinery A/c
To Balance b/d 10,00,000 By Bank A/c 34,000
By Prov. For Depr. A/c 34,000
(for 34 Months)
By Statement of P/L 52,000
(Loss)
By Balance c/d 8,80,000
10,00,000 10,00,000

Provision for Depreciation A/c

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 To Machinery A/c 34,000 By Balance b/d 4,50,000
To Balance c/d 5,10,000 By Depreciation A/c 6,000
(6M)
By Depreciation (on 88,000
remaining machine for
full year)
5,44,000 5,44,000
27. (a) 1
28. (c) Or (a) 1
29. (a) 1
30. (d) 1
31. Gross Profit ₹1,30,000. 4
32 2 Marks for Bad
Bad Debts A/c
Debts A/c and 2
2021 2021
Marks for Provision
Mar To S. Debtors A/c 2,000 Mar By Prov. For
for Doubtful Debts
31 31 D/D 2,000
A/c
2021 2021
Mar To S. Debtors A/c 500 Mar By Prov. For 500
31 31 D/D

Prov. For Doubtful Debts A/c

2021 2020
Mar To Bad Debts 2,000 Apr 1 By Bal. c/d 3,000
31 To Bal. c/d 3,000 2021
Mar 31 P & L A/c 2,000
2022 2021
Mar To Bad Debts A/c 500 Mar 31 By Prov. For 500
31 To P & L A/c 1,500 D/D
To Bal. c/d 1,000

33 Cost of goods available for sales Rs.11,65,000.2 marks 6 Marks

Cost of goods sold Rs.11,35,000. 2 marks
Gross Profit Rs.4,15,000.

34. Gross profit Rs.97,000. Net profit Rs.68,909, Manager’s commission Rs.6,891. 2 Marks for Trading
3 Marks for Trading Account, 3 marks for Profit and Loss Account and 2 marks for A/c and 4 marks for
calculating Manger’s commission. Profit and Loss A/c
Or Or
Gross Profit ₹2,98,400; Net Profit ₹2,55,400 and Balance Sheet ₹4,14,400 2 marks each for
Trading A/c, Profit
and loss A/c and
Balance Sheet.

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 BLUE PRINT
CLASS XI ACCOUNTANCY, SET-3

SESSION ENDING EXAMINATION 2022-23

S. NAME OF CHAPTER 1MARK 3 MARKS 4 MARKS 6 MARKS TOTAL

NO

1 INTRODUCTION TO 6 6
ACCOUNTING
2 THEORY BASE OF 1 6
ACCOUNTING
3 RECORDING OF 1 1 1 1 14
BUSINESS
TRANSACTIONS
4 BANK RECONCILIATION 1 1 1 8
STATEMENT
5 DEPRECIATION, 3 1 1 12
PROVISIONS AND
RESERVES
6 TRIAL BALANCE AND 1 1 1 10
RECTIFICATION OF
ERRORS
7 FINANCIAL 8 2 1 1 24
STATEMENTS

TOTAL 20 6 3 5 80
 KENDRIYA VIDYALAYA SANGATHAN
ZONAL INSTITUTE OF EDUCATION AND TRAINING, CHANDIGARH
SESSION ENDING EXAM 2022-23
CLASS-XI, SET-3
SUBJECT: Accountancy

Time: 3 Hrs. MM: 80

General Instructions:
1) This question paper has 34 questions consisting of 2 parts- A and B.
2) Attempt all parts of an answer at one place.
3) Show working notes wherever required.

S.NO QUESTION MARKS

Part-A
1 Name any two users of accounting information. 1
2 What are current assets? 1
3 Gopal is our debtor for ₹ 10,000. He became insolvent and only 60 paise in a 1
rupee is received from him. The balance of ₹ 4,000 would be entered to the:
a) Debit of discount A/c
b) Credit of Discount A/c
c) Debit of bad debt A/c
d) Credit of bad debt A/c
Or
When the total of debit side of an account exceeds the total of its credit side, the
account is said to have:
a) Credit balance
b) Debit balance
c) Debit as well as credit balance
d) None of the above
4 State whether the following statement is true or false: 1
Liability=Assets-capital
5 Bank balance is always considered as positive, if it is: 1
a) Balance as per cash book
b) Debit balance as per cash book
c) Credit balance as per pass book
d) All of the above
Or
Is Bank reconciliation Statement a part of Financial statement?
6 Which of the following events are not of financial character? 1
a) Purchase of an asset on credit.
b) Purchase of an asset for cash.
c)Withdrawing of cash from business for personal use of proprietor.
d)Strike by employees.
7 Reliance Co. did not use a particular machine during the current year. Should 1
depreciation be charged on that machine also? Give reason.
Or
Depreciation for the second year @10% On a machine purchased for ₹ 15,000
will be ------------ under Diminishing Balance method.
a)₹ 1,500 b)₹ 1,350 c)₹ 1050 d)None of these
8 If ₹ 2,000 received from Anil has been credited to Sunil, the rectifying entry will 1
be-
9 Given below are two statements, one labelled as Assertion(A) and other labelled 1
as Reason(R).
Which one of the following is correct?
Codes:
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 true but R is false.
d)A is false but R is true.
Assertion(A): Accounting records only the transactions of financial nature.
Reason (R): Goods taken from the business by the proprietor for his personal use
is not of financial nature and hence will not be recorded.
10 Amount which a proprietor has invested in a business is known as- 1
a) capital b)assets c)debtors d)None of the above
Or
Purchase refers to the buying of-
a) Stationery for office use
b) Assets for the factory
c) Goods for resale
d) Investment
11 Profit on sale of assets is used to create: 1
a) General Reserve
b) Specific Reserve
c) Capital Reserve
d) All of the above
or
Is provision for doubtful debt a charge against profit or an appropriation of profit?
12 Reserve is created from: 1
a) Profits b)Losses c)Assets d)Liabilities.
13 Frame accounting equation from the following transactions: 3
a) Started business with cash ₹ 1,00,000 and goods worth ₹ 20,000.
b) Sold 50% of the above goods at a profit of ₹ 2,000 on credit to Ravi.
c) Ravi paid 90% of his amount due in full settlement.
14 State any three reasons due to which bank balance as per Cash Book and that as 3
per Pass book may differ.
15 Define the term depreciation and give any two reasons why we need to provide 3
depreciation.
16 Draft a trial balance from the following information: 3
Cash in hand ₹ 4,100
Machinery ₹ 25,000
Purchases ₹ 66,200
Debtors ₹ 24,300
Carriage inward ₹ 1,800
Carriage outward ₹ 700
Wages ₹ 17,500
Rent and taxes ₹ 5,300
Sundry creditors ₹ 17,000
Discount allowed ₹ 1,200
Returns outward ₹ 2,400
Returns inward ₹ 9,600
Capital ₹ 30,000
Drawings ₹ 6,300
Bank loan ₹ 10,000
Interest on loan ₹ 1,500
Opening stock ₹ 26,200
Sales ₹ 1,28,700
Discount Received ₹1,600
17 Journalise the following transactions: 4
2021
a) April 1 Won a lottery prize of ₹ 5,00,000 and started business with the prize
money.
b) April 5 Purchased goods costing ₹ 1,00,000 from Sahil & Co. Paid 60%
immediately by cheque to avail 5% discount.
c) Goods destroyed by fire ₹ 15,000. (CGST and SGST @ 6% each)
18 From the following information prepare a Bank Reconciliation Statement of 4
J.P.Kansal as on 30/06/2016:
a) Favourable balance as per pass book ₹ 6,000
b) Out of total cheques amounting to ₹ 37,500 drawn by Mr Kansal, cheques of ₹
5,000 were encashed in June 2016, cheques amounting to ₹ 4,000 were encashed
in July 2016 and the rest have not been presented at all.
c)Out of total cheques amounting to ₹ 12,000 deposited, cheques aggregating ₹
7,500 were credited in June2016, cheques aggregating ₹ 2,000 were credited in
July 2016 and the rest have not been collected at all.
d)Amount wrongly debited by bank ₹ 2,400.
Or
The bank passbook of M/s. Boss & Co. showed a balance of ₹ 45,000 on May 31,
 2017.
1. Cheques issued before May 31, 2017, amounting to ₹ 25,940 had not been
presented for encashment.
2. Two cheques of ₹ 3,900 and ₹ 2,350 were deposited into the bank on May 31
but the bank gave credit for the same in June, 2017.
3. There was also a debit in the passbook of ₹ 2,500 in respect of a cheque
dishonoured on 31.5.2017.
Prepare a bank reconciliation statement as on May 31, 2017.
19 Answer the following questions: 1+1+4
a) Proprietor of the business is treated as a creditor to the extent of his capital
under which concept of accounting?
b) Land and building are shown at ₹ 10 lacs in the Balance Sheet of the business
owned by Mr Yuvraj. However, as per the certificate of Govt approved valuer the
realisable value of land and building is ₹ 200 lacs. Mr Yuvraj wants to show the
land and building at this value in his books. Can he do so?
c)Briefly describe the concepts of Going Concern and Prudence.
20 Prepare a double column cash book with cash and bank columns from the 6
following transactions:
2018
Jan1 Bank overdraft ₹ 12,000
Cash in hand ₹ 2,300.
Jan5 Purchased goods for ₹ 40,000; Trade discount 15%, IGST 12%.
Payment made by a cheque.
Jan7 Cheque received from S. Nair ₹ 4,000. Discount allowed ₹ 200.
Jan 9 Cheque received from S Nair banked.
Jan 13 Money withdrawn from bank for office use ₹ 3,400.
Jan 21 Fees of children paid by cheque ₹ 3,000.
21 On 1st April, 2017 Z Ltd. purchased machinery for ₹ 1,20,000 and on 30th 6
September 2018, it acquired additional machinery for ₹ 20,000. On 30/06/2019
one of the original machines (purchased on 1/4/2017) which had cost ₹ 5,000 was
found to have become obsolete and was sold as scrap for ₹ 500. On the same date
a new machine was purchased for ₹ 8,000. Depreciation is to be charged @15%
p.a. on written down value. Accounts are closed on 31st March each year. Show
machinery account for the first 3 years.
Or
M/s Mehra and Sons acquired a machine for ₹1,80,000 on October 01, 2016, and
spent ₹ 20,000 for its installation. The firm writes-off depreciation at the rate of
10% on original cost every year. Draw up Machine Account and Depreciation
Account for first three years given that: The book of accounts closes on March 31
every year;
22 Rectify the following errors. 6
a) Sales book is overcast by ₹ 2,500.
b) Goods returned to Sandy ₹ 1,000 were recorded in Sales book.
c)An amount of ₹ 1,500 has been posted to the debit side of Rent and rates
account instead of ₹ 1,100.
d)Goods withdrawn by the proprietor for personal use ₹ 1,000 were debited to
sundry expenses A/c.
e) Goods distributed as free samples ₹ 5,000 were not recorded in the books.
f) ₹ 4,000 paid for installation of a machinery wrongly debited to Wages A/c.

Part-B
23 Give one point of difference between capital expenditure and revenue 1
expenditure.
24 Mr Khanna spends ₹ 4,00,000 for the advertisement of a new product launched in 1
the market. What kind of expenditure is it?
Or
Expenses on whitewashing and painting of a new building to make it ready for
use is a revenue expenditure. Say true or false.
25 Returns outward is deducted from: 1
a) Sales
b) Capital
c) Net profit
d) Purchases
26 Closing stock is shown in final accounts at: 1
a) Cost price
b) Market price
c) Cost or market price whichever is greater
d)Cost or market price whichever is lower.
27 Depreciation is charged on _______________ assets. 1
28 Accrued income is considered as _________________for the business firm. 1
29 Which of the following is not added to capital? 1
a) Net profit
b) Drawings
c) Interest on capital
d) Additional capital
30 Given below are two statements, one labelled as Assertion(A) and other labelled 1
as Reason(R).
Which one of the following is correct?
Codes:
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 true but R is false.
d)A is false but R is true.
Assertion(A): Prepaid expenses are asset of the firm.
 Reason (R): Expenses have been paid in advance for the next period during the
current period itself.
Or
What are direct expenses?
31 From the following information calculate gross profit and cost of goods sold: 3
Net sales during the year ₹ 6,00,000
Gross profit @ 25% on cost.
32 From the following information, prepare a Trading account for the year ended 3
31/03/2018.
Cost of goods sold ₹ 2,00,000
Sales ₹ 2,50,000
Wages ₹ 6,250
Closing stock ₹ 15,000

33 What is operating profit? How is it calculated? 2+2=4

Or
a) What is Marshalling of assets and liabilities?
b) If Adjusted Purchase and Closing Stock are given in Trial Balance, will you
transfer Closing Stock to Trading Account? Give reason.
34 From the following trial balance as on 31/03/2022, prepare Trading and Profit and 6
loss Account and balance Sheet as on that date including the following
adjustments:
1) Stock in hand on 31/03/2022 ₹ 5,000.
2) Salaries ₹ 500 and Wages ₹ 500 were unpaid.
3) ₹ 25 included in office cleaning expenses are prepaid.
4) Interest on investment for last 6 months was accrued but not received.
Particulars Dr(₹) Cr(₹)
Opening stock 2,500
Purchases and sales 20,000 50,000
Returns 2,500 1,000
Building 10,000
Wages 2,500
Debtors and creditors 5,000 2,500
Interest 500
Salaries 5,000
Machinery 15,000
Carriage inward 1,000
Carriage outward 2,500
Rent,rates and taxes 5,000
Capital 24,500
Drawings 1,000
Office expenses 1,000
Office cleaning expenses 500
 Investment@20% 5,000

Or

From the following trial balance as on 31/03/2022, prepare Trading and Profit
and loss Account and balance Sheet as on that date:
Particulars Dr. (₹) Cr. (₹)
Opening stock 2,500
Purchases and sales 20,000 50,000
Returns 2,500 1,000
Building 10,000
Wages 2,500
Debtors and creditors 5,000 2,500
Interest 500
Salaries 5,000
Machinery 15,000
Carriage inward 1,000
Carriage outward 2,500
Rent, rates and taxes 5,000
Capital 24,500
Drawings 1,000
Office expenses 1,000
Office cleaning expenses 500
Investment@20% 5,000
Additional information:
1)Stock in hand on 31/03/2022 ₹ 6,000.
2)Depreciate machinery by 10%.
3)₹200 of the debtors proved bad.
4)Create provision for doubtful debts@ 5% on debtors.
 ACCOUNTANCY, SET-3
CLASS-XI
Time: 3 Hrs. MM:80
MARKING SCHEME
S.No Answers Marks
Ans1 Government, creditors, managers, shareholders etc. 1
Ans2 All those assets which can be converted into cash within one year. Eg- cash, 1
debtors, bills receivable etc.
Ans3 c) Debit of bad debt A/c 1
Or
b)Debit balance
Ans4 True. 1
Ans5 d)All of the above 1
or
No
Ans6 d)Strike by employees. 1
Ans7 Yes because depreciation is caused not just due to usage but also due to passage 1
of time.
b)₹ 1,350
Ans8 Sunil A/c Dr ₹ 2000 1
To Anil A/c ₹ 2000
Ans9 c)A is true but R is false. 1
Ans10 a) Capital 1
Or
c)Goods for resale.
Ans11 C)Capital Reserve 1
Or
It is a charge against profit.
Ans12 a) Profits. 1
Ans13 a) Cash increases ₹ 1,00,000; Stock ₹ 20,000 and capital ₹ 1,20,000. 3
b) Stock decreases ₹ 10,000; Debtors increases ₹ 12,000 and capital ₹ 2,000.
c)Increase in cash ₹ 10,800; Debtors decreases ₹ 12,000 and Capital ₹ 1,200.
Ans14 a) Direct deposit by a customer in our bank account not recorded in cash book. 3
b) Cheque deposited but not collected by bank.
C)Cheques issued but not presented for payment in bank.
Ans15 Depreciation is the gradual and permanent decrease in the value of an asset 3
from any cause.
Depreciation needs to be provided for:
a) Ascertaining the true profit or loss
b) For providing funds for replacement of an asset.
C)To know the true financial position.
Ans16 Total of Dr and Cr side of trial balance ₹ 1,89,700 3
Ans17 1+1.5+
a) Cash A/c Dr ₹ 5,00,000
1.5=4
To Capital A/c ₹ 5,00,000
b) Purchases A/c Dr ₹ 1,00,000
To Bank A/c ₹ 57,000
To Discount received A/c ₹ 3,000
To Sahil & Co. ₹ 40,000
c) Loss by fire A/c Dr ₹ 16,800
To purchases A/c ₹ 15,000
To Input CGST A/c ₹ 900
To Input SGST A/c ₹ 900
Ans18 a) Balance as per pass book ₹ 6000-plus item 4
b) Cheques drawn but not presented ₹ 32,500-minus item
c)Cheques deposited but not credited up to June 2016 ₹ 4,500-plus item
d)Amount wrongly debited by bank ₹ 2,400-plus item
Or
1. Balance as per passbook ₹ 45,000 (plus item)
2. Cheques deposited but not collected by the bank ₹ 6,250 (₹ 3,900+ ₹ 2,350)
(plus item)
3. Cheque dishonoured recorded only in passbook ₹ 2,500(plus item)
4. Cheques issued but not presented for payment ₹ 25,940(minus item)
5. Balance as per cash book ₹ 27,810(plus item)
Ans19 a) Business entity concept. 6
b) No as per historical cost concept. It should be shown at the price of
acquisition.
c)Correct explanation carries 2 marks each.
Ans20 2018 6
Jan 1 Cash book Dr ₹ 2,300 in cash column
Cash book Cr ₹ 12,000 in bank column
Jan 5 By purchase A/c ₹ 34,000(bank)
By Input IGST A/c ₹ 4,080(bank)
Jan7 No entry in cash book.
Entry in journal proper-
Cheques in hand A/c Dr ₹ 4,000
Discount allowed A/c Dr ₹ 200
To S Nair ₹ 4,200
Jan 9 To cheque in hand A/c ₹ 4,000(bank)
Jan 13 Contra entry
Jan21 By drawings A/c ₹ 3,000(bank)
Ans21 Depreciation on machine on 31/03/2018 ₹ 18,000. Balance of machine ₹ 6
1,02,000 Or
1+2+1+
 Depreciation on 31/03/2019 ₹ 15,300+₹ 1,500 = ₹ 16,800. Balance of machine 1+1
₹ 1,05,200
Machine sold on 30/06/2019 for ₹ 500.Depreciation before sale ₹ 135.
Loss on sale ₹ 2977. Depreciation on remaining machine ₹ 16,138. Balance of
machine on 31/03/2020 ₹ 93,450.
Or
31/03/17 Depreciation for 6 months ₹ 10,000
Balance of machinery A/c ₹ 1,90,000
31/03/2018 Depreciation ₹ 20,000
Balance of machinery A/c ₹ 1,70,000
31/03/2019 Depreciation ₹ 20,000
Balance of machinery A/c ₹ 1,50,000
Ans22 6
a) Sales A/c Dr ₹ 2,500
To Suspense A/c ₹ 2,500
b) Sales A/c Dr ₹ 1,000
To Purchase Returns A/c ₹ 1,000
c) Suspense A/c Dr ₹ 400
To Rent and rates A/c ₹ 400
d) Drawings A/c Dr ₹ 1,000
To Sundry expenses A/c ₹ 1,000
e) Advertisement A/c Dr ₹ 5,000
To purchases A/c ₹ 5,000
f) Machinery A/c Dr ₹ 4,000
To Wages A/c ₹ 4,000
Ans23 Capital expenditure is incurred to acquire fixed assets to carry out the business 1
operations while revenue expenditure is incurred to conduct day to day business
operations.
Ans24 Deferred revenue expenditure. 1
Or
False
Ans25 d)Purchases. 1
Ans26 d)Cost or market price whichever is lower. 1
Ans27 Fixed assets. 1
Ans28 An asset. 1
Ans29 b)Drawings. 1
Ans30 a)Both A and R are true and R is the correct explanation of A. 1
Or
Direct expenses are those expenses which are incurred from the stage of
purchase of raw material to the stage of making the goods available in saleable
condition or taking out the final finished product.
Ans31 Gross profit = ₹ 6,00,000 x 25/125 = ₹ 1,20,000 3
Cost of goods sold = sales - gross profit = ₹ 6,00,000 - ₹1,20,000 = ₹ 4,80,000
Ans32 ₹ 50,000 3
Ans33 Operating profit refers to the profit earned from a firm’s normal core business 2+2=4
operations. It is derived by deducting operating expenses from gross profit. Or
It is calculated as: 2+2=4
Operating profit = Net sales-operating cost
Or Net sales - cost of goods sold-operating expenses
Or Gross profit - operating expenses.
Or
a)Marshalling of assets and liabilities means arrangement of assets and
liabilities in the balance sheet either in order of permanence or in order of
liquidity.
b)No, because adjusted purchase is arrived at by added opening stock to net
purchase and deducting closing stock
Adjusted Purchase = Opening stock + Net purchase - Closing Stock
Ans34 Gross profit ₹ 27,000, Net Profit ₹ 13,525. Balance sheet total ₹ 40,525 6
Or
Gross profit ₹ 28,500, Net profit ₹ 13,560. Balance sheet total ₹ 39,560

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