INTERNATIONAL INDIAN SCHOOL JEDDAH

MODELPAPER- I
Final Exam-2022-23
SUBJECT: ACCOUNTANCY CLASS: XI
Time: 3 Hours Max Marks: 80
No. of Pages: 9
GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. Question 1 to 20 carries 1 mark each.
3. Questions 21 to 26 carries 3 marks each.
4. Questions from 27 to 29 4 marks each
5. Questions from 30 to 34 carries 6 marks each
6. There is no overall choice. However 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

Q.No Question Marks

1. Credit balance as per pass book is: 1
(a) Unfavourable balance
(b) Favourable balance
(c) Overdraft
(d) None

2. Which qualitative characteristics of accounting information is reflected when 1

accounting information is clearly presented?
(a) Understandability
(b) Relevance
(c) Comparability
(d) Reliability

3. Depreciation charged under diminishing method ________. 1

(a) Decrease every year
(b) Increase in one year and decrease another year
(c) Same every year
(d) Increase every year

4. Purchase refers to the purchase of 1

(a) goods for resale.

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 (b) stationery for office use.
(c) assets for the factory.
(d) None of the above.
OR
Which of the following are goods
(a) Machines manufactured for sale.
(b) Furniture purchased for sale.
(c) Books and stationery purchased by a book seller.
(d) All of the above.

5. Which of the following is the example of the revenue reserve? 1

(a) Profit on redemption of debentures
(b) Profit on revaluation of fixed
(c) Investment fluctuation fund
(d) Profit on re-issue of forfeited shares
OR
Which of the following is the example of capital reserve?
(a) Workmen’s compensation fund
(b) General reserve
(c) Premium received on the issue of shares or debentures
(d) None of the above

6. Which of the following is not a fixed asset? 1

(a) Building
(b) Plant and Machinery
(c) Balance with bank
(d) Goodwill

7 On 31st March 2021 a petty cashier submits bills of Rs.450 incurred on petty 1
expenses for reimbursement. He has cash in hand Rs.150 on the said date..
The imprest amount of petty cash is
(a) Rs.300
(b) Rs.600
(c) Rs.150
(d) Rs.450
OR
Balance of petty cash is
(a) Expense
(b) Income
(c) Liability
(d) Assets

8 Which of the following is used for checking the arithmetical accuracy of the 1
account books?
(a)Ledger
(b)Trial balance
(c)Journal
(d)All of these
OR
Which of the following accounts will have debit balance?

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 (a)Purchase returns
(b)Purchase
(c )Discount received
(d)Owner equity
9 Depreciation is charged on _________. 1
(a) Current assets
(b) Fixed tangible assets
(c) Both current and fixed assets
(d) None of the above

10 Trial balance helps to deduct: 1

(a)The error of complete omission
(b)Compensating error
(c)Error of principle
(d)Clerical error

11 Provision is created for : 1

(a) Meeting unexpected losses
(b) Meeting expected losses
(c) Strengthening financial position
(d) None of above
12 Profit earned through normal activities of the business is _______. 1
(a) Operating profit
(b) Net profit
(c) Normal Profit
(d) None of above
13 Sale is recognised as revenue 1
(a) when the contract for sale is entered into.
(b) at the point of sale or performance of service
(c) after the expiry of credit period allowed to debtors.
(d) after the money collected from the customers
14 Goodwill is a- 1
(a) Fixed Asset
(b) Current Asset
(c) Fictitious Asset
(d) None of these
OR
The financial statements consist of:
(a) Trial balance
(b) Profit and Loss account
(c) Balance sheet
(d) (b) & (c)
15 The owner of the firm records his medical expenses in the firm’s income 1
statement. Indicate the principle that is violated
(a) Cost principle
(b) Prudence
(c) Full disclosure
(d) Entity concept
OR
Expenses is measured on the basis of

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 (a) Matching concept
(b) Consistency
(c) Cost
(d) None of the above

16 Which of the following is correct: 1

(a) Operating profit = Operating profit – Non-operating expenses – Non-

operating incomes
(b) Operating profit = Net profit + Non-operating expenses + Non-operating
incomes
(c) Operating profit = Net profit + Non-operating expenses – Non-operating
incomes
(d) Operating profit = Net profit – Non-operating expenses + Non-operating
incomes

17 Stock is valued at 1

(a) Cost or Net Realisable Value (Market Value), whichever is lower.

(b) Cost or Net Realisable Value (Market Value), whichever is higher
(c) Cost.
(d) Net Realisable Value (Market Value). )
18 If the rent of one month is still to be paid, the adjustment entry will be _______. 1
(a) Debit outstanding rent account and Credit rent account
(b) Debit profit and loss account and Credit rent account
(c) Debit rent account and Credit profit and loss account
(d) Debit rent account and Credit outstanding rent account
19 Which of the following is not a supporting voucher 1
(a) Cash memo
(b) Invoice
(c) Debit note
(d) Debit voucher
20 If the insurance premium paid Rs. 1,000 and prepaid insurance Rs. 300. The 1
amount of insurance premium shown in the profit and loss account will be
______.
(a) Rs. 1,300
(b) Rs. 1,000
(c) Rs. 300
(d) Rs. 700
OR
Outstanding Expenses are related to _______
(a) Current year
(b) Next year
(c) Last year
(d) None of the above
21 What is accounting standards? Expalin any two objectives of accounting 3
standards

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 OR
Explain the following concepts
(i) Going concern
(ii) Objectivity
(iii) Dual aspect
22 State whether the following statements are items of capital expenditure, 3
revenue expenditure or deferred revenue expenditure :

(a) Expenditure incurred on repairs and whitewashing at the time of purchase

of an old building in order to make it usable.
(b) Expenditure incurred to provide one more exit in a cinema hall in
compliance with a government order.
(c) Registration fees paid at the time of purchase of a building
(d) Depreciation charged on a plant.
(e) The expenditure incurred on erecting a platform on which a machine will be
fixed.
(f) Advertising expenditure, the benefits of which will last for four years

23 Prepare Accounting Equation from the following: 3

i. Harish started business with cash Rs.18,000

ii. Purchased goods for cash 5,000 and on credit Rs.2,000
iii. Sold goods for cash Rs.4,000 (costing Rs.2,400)
iv. Rent outstanding Rs.200

24 Prepare necessary ledger accounts from the following transactions 3

Jan 7 Purchase goods from Kabir Rs.6,000

Jan 16 Sold old furniture for cash Rs.400
Jan 15 Paid to Kabir in full settlement Rs,5,800

25 What is accounting?Explain any two objectives of accounting. 3

OR
Explain the following terms
(i) Creditors
(ii) Current liabilities
(iii) Inventory

26 Prepare proper subsidiary books of Hind Ltd who carry on business as 3

wholesale cloth dealer.

Jan. 3 Purchased from M/s. Birla Mills, Kolkata:

100 pieces long cloth @ Rs.800 each
50 pieces shirting @ Rs.500 each
CGST and SGST payable @ 6% each

Jan. 15 Purchased from M/s. Arvind Mills, Ahmedabad:

20 pieces coating @ Rs.2,000 each

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 10 pieces shirting @ Rs.500 each
IGST payable @ 12%

Jan. 20 Purchased from M/s. Bharat Computers Ltd. Kolkata:

5 Monitors @ Rs.4,400 each
CGST and SGST payable @ 6% each
27 Pass the rectifying Journal entries: 4
(i)A credit sale of goods for Rs.2,500 to Krishna has been wrongly passed
through the Purchases Book.
(ii) Rs.5,000 paid for freight on machinery purchased was debited to the
Freight Account as Rs.500.
(iii) The Returns Inward Book has been wrongly overcast by Rs.100.
(iv) An amount of Rs.500 due from Ramesh which had been written off as bad
debt in previous year was recovered and had been posted to the Personal
Account of Ramesh.

OR
Give rectifying entries for the following:
(i) Rs.5,400 received from Mr. A was posted to the debit of his account.
(ii) The total of Sales Return Book overcast by Rs.800.
(iii)Rs.2,740 paid for repairs to motor car was debited to Motor Car Account as
Rs.1,740.
(iv) Returned goods to Shyam Rs.1,500 were passed through Returns Inward
Book
28 From the following balances extracted from the books of M/s Ahuja and 4
Nanda. Calculate the amount of :
(a) Cost of goods sold during the year
(b) Gross Profit
( Rs.)
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

29 Prepare a bank column cash book with the help of following information for 4
December 2016:
Rs.

01 Started business with cash 1,20,000

03 Cash paid into bank 50,000
05 Purchased goods from Sushmita 20,000
06 Sold goods to Dinker and received a cheque 20,000
10 Paid to Sushmita cash 20,000
14 Cheque received on December 06, 2016 deposited into bank

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 18 Sold goods to Rani 12,000
20 Cartage paid in cash 500
22 Received cash from Rani 12,000
27 Commission received 5,000
30 Drew cash for personal use 2,000

30 From the following balances extracted from the book of M/s Manju Chawla on 6
March 31, 2017. You are required to prepare the trading and profit and loss
account and a balance sheet as on this date.
Account Title Debit Credit Amount
Amount Rs.
Rs.
Opening stock 10,000
Purchases and Sales 40,000 80,000
Returns 200 600
Wages 6,000
Dock and clearing charges 4,000
Misc. Income 6,000
Rent 2,700
Capital 44,000
Drawings 2,000
Debtors and Creditors 32,000 7,000
Cash 3,000
Patent 4,000
Machinery 43,000
Donations and Charity 600
Loan 6,000
Bad Debts 1,500
1,46,300 1,46,300
Adjustments:
(a) Goods worth Rs. 12,000 were used for staff welfare activities
(b) Machinery is depreciated at 5%.
(c) Unearned rent Rs.700.
(d) Closing stock was Rs.2,000.

31 Prepare Bank Reconciliation Statement from the following particulars as on 6

31st March, 2015, when Pass Book shows a debit balance of Rs.2,500:
(i) Cheque issued for Rs.5,000 but up to 31st March, 2015 only Rs.3,000 could
be cleared.
(ii) Cheques issued for Rs.1,000 but omitted to be recorded in the Cash Book.
(iii) Cheques deposited for Rs.5,500 but cheques for Rs.500 were collected on
4th April, 2015.
(iv) A cheque of Rs.1000 was dishonoured but not recorded in cash book
(v) A Rs.500 debited in Cash Book but omitted to be banked.
(vi) Interest allowed by bank Rs.200 but no entry was passed in the Cash
Book.

OR

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 From the following particulars, you are required to ascertain the bank balance
as appear in the pass book of Ramesh as on 31st October, 2014:
(i) Cash Book showed an overdraft of Rs.16,500 on 31st October.
(ii) Interest of Rs.1,250 on overdraft up to 31st October, 2014 has been debited
in the Pass Book but it has not been entered in the Cash Book.
(iii) Bank charges debited in the Bank Pass Book amounted to Rs.35.
(iv) Cheques issued prior to 31st October, 2014 but not presented till that date,
amounted, to Rs.11,500.
(v) Cheques paid into bank before 31st October, but not collected and credited
up to date, were for Rs.2,500.
(vi) Interest on investment collected by the bankers and credited in the Bank
Pass amounted to Rs.1,800.

32
On 1st July. 2010, Sohan Lal and Sons purchased a plant costing Rs.60,000. 6
Additional plant was purchased on 1st January, 2011 for Rs.40,000 and on 1st
October, 2011, for Rs.20,000. On 1st April, 2012, one-third of the plant
purchased on 1st July, 2010, was found to have become obsolete and was
sold for Rs.6,000.
Prepare the Plant Account for the first three years in the books of Sohan Lal
and Sons. Depreciation is charged @ 10% p.a. on Straight Line Method.
Accounts are closed on 31st March each year

OR

Shakti Cements purchased on 1st April, 2013 a plant for Rs.80,000. On 1st
July, 2014 it purchased additional plant costing Rs.48,000. On 1st December,
2015 the plant purchased on 1st April, 2013 was sold for Rs.42,000 and on the
same date a fresh plant was purchased for Rs.75,000. Depreciation is
provided at 10% p.a. on the Diminishing Balance Method. Accounts are closed
on 31st March each year. Show the Plant Account and provision for
depreciation A/c for 3 years
33 6
Journalise the following entries:
(i) Goods worth Rs.500 given as charity.
(ii) Received Rs.975 from Harikrishna in full settlement of his account for
Rs.1,000.
(iii)Received a first and final dividend of 60 paise in a rupee from the Official
Receive Rajan, who owed us Rs.1,000.
(iv) Charged depreciation on plant Rs.1,000.
(v)Goods worth Rs.500 were used by the proprietor for domestic purposes.
(vi)Paid Rs.250 as wages on installation of a new machine.

34 The following balances have been extracted from the books of M/s Green 6
House for the year ended March 31, 2017, prepare trading and profit and loss
account and balance sheet as on this date.

Account Title Amount Account Title Amount

Dr Cr

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 Rs. Rs.
Purchases 80,000 Capital 1,30,500
Bank balance 11,000 Provision for doubtful debts 2,000
Wages 34,000 Sales 2,00,000
Debtors 71,300 Creditors 50,000
Legal expenses 4,000 Return outwards 4,000
Machinery 80,000
Bills receivable 7,000
Office expenses 3,000
Opening stock 45,000
Gas and fuel 2,700
Freight and Carriage 3,500
Factory lighting 4,000
Bad debts 1,000
Investments 40,000

3,86,500 3,86,500

Adjustment :
1. Further bad debts Rs. 1,000 ;provision for doubtful debts is to be maintained
at 5 per cent on sundry debtors and discount on debtors 2%.
2.Outstanding wages Rs.2,000
3.Closing stock Rs. 7,500

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