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11 Accountancy SP 01
11 Accountancy SP 01
Class 11 - Accountancy
Maximum Marks: 80
General Instructions:
Part A
1. The vouchers which are prepared for transactions not involving cash, i.e. non-cash transactions, are known as ________
vouchers.
a) Token
b) Credit
c) Transfer
d) Unilateral
2. Assertion (A): Statements prepared through management account are helpful in decision making process.
Reason (R): The information provided by management accounts is financial and non-financial as well.
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.
3. Goodwill account is a:
a) Nominal Account
b) Real Account
c) None of these
d) Personal Account
4. What shall be the amount of Capital if Cash is ₹ 5,000; Furniture ₹ 12,000; Stock ₹ 30,000 and Creditors ₹ 6,000?
a) ₹ 41,000
b) 43,000
c) ₹ 53,000
d) ₹ 47,000
OR
OR
OR
When a total of the debit side of an account exceeds the total of its credit side, the account is said to have ________.
a) Debit Balance
b) None of these
c) Debit as well as credit balance
d) Credit Balance
Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions:
b. Specific reserve ii. reserve may or may not involve any receipts of cash
c. Capital reserve iii. created in business for rainy day
a) a - (ii), b - (iii), c - (ii)
b) a - (iii), b - (i), c - (ii)
c) a - (iii), b - (ii), c - (i)
d) a - (ii), b - (i), c - (iii)
12. Which of the following is not a fixed asset?
a) Computers
b) Furniture
c) Building
d) Cash in hand
13. Return of goods purchased on credit to the suppliers will be entered in ____ Book.
a) Purchase
b) Sales
c) Sales Return
d) Purchase Return
14. When goods are returned to supplier assets and ________ are ________ by same amount.
a) liabilities, increased
b) assets, decreased
c) liabilities, decreased
d) assets, increased
15. Which of the following is not a fixed asset?
i. Balance with bank
ii. Plant and Machinery
iii. Building
OR
OR
Pass Journal entry for purchase of goods by Amrit, Delhi from Add Gel Pens, Delhi for ₹ 15,000 less Trade Discount
10% and Cash Discount 3%. CGST and SGST is levied @ 6% each. Assume payment is made at the time of purchase.
19. Why is the consistency principle important?
OR
OR
On 31st March 2018, the Bank Pass Book of Naresh & Co. showed an overdraft of Rs.10,700. From the following
particulars prepare Bank Reconciliation Statement
i. Cheques issued before 31-03-2018 but presented for payment after that date amounted to Rs.900.
ii. Cheques paid into the Bank but not collected and credited until 31-03- 2018 amounted to Rs.2,200.
iii. Interest on overdraft amounting to Rs.1,200 did not appear in the Cash Book.
iv. Rs.5,000 being interest on investments collected by the Bank and credited in the Pass Book were not shown in the
Cash Book.
v. Bank charges of Rs.50 were not entered in the Cash Book.
vi. Rs.800 in respect of dishonoured cheque were entered in the Pass Book but not in the Cash Book.
24. On the basis of the narrations, fill in the missing values:
Journal Entries
Amount Amount
Date Particulars L.F.
(Rs) Cr. (Rs)
(i) ________ Dr. ________
________ ________
To ________ ________
(Being the bank draft of Rs 10,000 issued to Suman, bank charges Rs 100)
To ________ ________
(iii)
To ________ ________
________ ________
(vi)
To ________ 10,000
4
th of the premises used for residence)
To ________ ________
To ________ ________
(vii)
To ________ ________
________ ________
To ________ ________
OR
Rectify the above errors and prepare Suspense Account to ascertain the original difference in Trial Balance.
OR
There was a difference of Rs. 8,595 in a trial balance. It has been transferred to debit side of suspense account. Later on
following errors were discovered. Pass the rectifying entries and prepare the suspense account.
i. Rs 283 discount received from a creditor had been duly entered in his account but not posted to discount account.
ii. Goods bought from a merchant for Rs 770 had been posted to the credit of his account as Rs. 7,700.
Show Machinery Account, Provision for Depreciation Account and Depreciation Account for the period of three
accounting years ending 31st March, 2019.
OR
Depreciation is charged on the plant at 20% p.a. by the diminishing balance method. A piece of machinery purchased on
1st April 2012 for Rs 5,00,000 was sold on 1st October 2014 for Rs 3,00,000.
Prepare the Plant & Machinery Account and Provision for Depreciation Account for the Year ended 31st March 2015.
OR
OR
OR
Debit
Credit
Rent 2,810
Stock (1.4.2018) 44,840
Salaries 5,500
Repairs 1,685
Bad-Debts 1,810
Furniture 4,480
2,80,550 2,80,550
The following adjustments are to be made :
i. Stock in the shop on 31st March, 2019 was ₹ 64,480.
ii. Half the amount of X's Bill is irrecoverable.
iii. Create a provision of 5% on other debtors.
iv. Wages include ₹ 600 for erection of new Machinery.
v. Depreciate Machinery by 5% and Furniture by 10%.
vi. Commission includes ₹300 being Commission received in advance.
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papers with their own name and logo.
OR
From the following trial balance extracted from the books of MMN, prepare the trading and profit and loss account for
the year ended 31st December, 2013 and the balance sheet as at that date.
Name of Accounts Debit Balance(Rs) Credit Balance(Rs)
Capital 90,000
Drawings 6,480
Discount 120
Purchases 42,160
Purchases return 8,460
Charge depreciation on land and building at 2 %, on plant and machinery account at 10% and on furniture and fixtures
1
at 10%. Make a provision of 5% on debtors for doubtful debts. Carry forward the following unexpired amounts.
i. Fire insurance Rs 125
ii. Rates and taxes Rs 240
iii. Apprentice premium Rs 400
iv. Closing stock Rs 29,390
Class 11 - Accountancy
Solution
Part A
1. (c) Transfer
Explanation: Transfer
2. (a) Both A and R are true and R is the correct explanation of A.
Explanation: Goodwill account is a Real Account, goodwill is an intangible asset and all assets are real.
4. (a) ₹ 41,000
OR
Explanation: Purchase of machine by cash means an increase in asset and decrease in the asset. For example Machinery
purchase at Rs. 10,000 so Machinery increase and Rs. 10,000 Cash decrease.
5. (b) Both Cash Memo and Invoice
Explanation: yes. Cash memo are prepared on cash sale or cash purchase and Invoices are on credit transaction of sale
and purchase.
these both are source documents, on the basis of which we record transaction.
6. (d) Statement of profit and loss
Explanation: The other name of Profit and loss account is the income statement.
OR
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material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8 App to create similar
papers with their own name and logo.
7. (d) Option (iv)
OR
Explanation: While preparing an account if the debit side is greater than the credit side, the difference is called "Debit
Balance". So, if Debit Side > Credit Side, it is a debit balance.
9. (b) Conservatism
Explanation: Conservatism
Explanation: General reserve is created for no specific purpose to meet any unforeseen contingency, specific reserve is
created to meet a specific expense and capital reserves are created out of capital profits which may or may not involve
cash receipt.
12. (d) Cash in hand
Explanation: We prepare seprate books of credit transaction for purchase, sale , purchase return or sale return. So, when
we return goods to the which are purchase on credit from supplier it will be recorded in purchase return book.
14. (c) liabilities, decreased
Explanation: Stock (assets) will reduce due to purchase return and creditors (liabilities) will also decrease by the same
amount.
15. (c) A only
Explanation: Balance with the bank is not a fixed asset. It is current asset.
OR
(c) Machinery
Explanation: Secret Reserve :- A secret reserve is one whose existence is not disclosed in the balance sheet. It can be
created by all the methods mentioned above by suppressing sales, by charging over depreciation etc. It is created without
showing to public.
18. The difference between the sum of the two sides of an account is called the balance. This is the most important part of an
account as it shows value or position of asset, liability, capital, income or expenses of which the account is a record. If
the total of the debit side exceeds the total of credit side then this would be represented by a debit balance and opposite is
true for a credit balance.
OR
Journal Entries
The realization concept states that no revenue should be recognized unless it has been realized. The prudence principle
puts a further brake on it. It is not prudent to record unrealized gain but it is desirable to guard against all possible losses.
Conservatism can be a useful tool in situations of uncertainty and doubt, but the abuse of this principle can definitely
lead to misleading and incorrect financial statements.
OR
An accounting standard is a common set of principles, standards and procedures that define the basis of financial
accounting policies and practices. Accounting standards improve the transparency of financial reporting in all countries.
Accounting standards are principles that guide and standardizes the process of accounting and is notified by the Ministry
of Corporate Affairs.
Persons or organizations that are liable to pay Persons or organizations to whom the firm is liable
(i) Meaning
money to a firm are called debtors. to pay money are called creditors.
(ii) Nature They have debit balance in the firm's books. They have a credit balance in the firm's books.
(iii) Settlement Amount due is received from them. Payments are made to them.
They are shown as assets in the Balance Sheet They are shown as liabilities in the Balance Sheet
(iv) Treatment
under Current Assets. under Current Liabilities.
Trial Balance
Purchases 34,00,000
Sales 56,00,000
Expenses 4,000
Premises 12,00,000
Fixture & Fittings 3,10,000
Drawings 40,000
Dr. Cr.
Cash Bank
Date Particulars L.F. Date Particulars L.F. Cash (₹)
(₹) (₹) Bank (₹)
2020 2020
To Cheques-in-Hand
8 4,000 12 By Bank A/c C 200
A/c
By Bank Charges
15 To Gopal's A/c 500 18 20
A/c
Feb. Feb.
To Balance b/d 2,900 By Balance b/d 9,120
1 1
Journal Entry
2017
Feb 8 Cheques-in-hand A/c Dr. 4,000
To Ram's A/c
4,200
(Being cheque received from Ram)
Add: Interest debited in Pass Book but not yet entered in Cash Book 1,600
Add: Bank charges debited in Pass Book but not yet entered in Cash Book 300
Add: Cheques paid in bank but not yet credited by bank 21,700
87,000
Less: Cheques issued but not yet presented in bank 11,680
75,320
Less: Interest collected and credited by bank but not entered in Cash Book 12,000
Bank Overdraft Balance as per Pass Book 63,320
OR
16,600 16,600
Amount Amount
Date Particulars L.F.
Dr (Rs) Cr. (Rs)
Suman's A/c Dr. 10,000
100
(iv)
To Sales A/c 30,000
Drawings A/c(10,000 × 1
4
) Dr. 2,500
(vi)
To Bank A/c 10,000
(Being the rent paid and th of the premises used for residence of owner)
1
4
(Being the salaries (Rs 40,000) and rent (Rs 15,000) are outstanding now
recorded in the books )
OR
Journal of Hema
To Ashu 20,000
(Goods purchased from Ashu)
(Salary paid)
Journal Entries
Debit Credit
Date Particulars L.F. Amount Amount
(Rs) (Rs)
(i) Machinery Account Dr. 600
(Being wages paid for the installation of machinery wrongly debited to wages
account, now entry is rectified)
(Being Sale of Machinery wrongly recorded in the sales book, now entry is
rectified)
Suspense Account
7,500 7,500
OR
Rectifying Entries
S. Dr. Cr.
Particulars L.F.
No. (Rs.) (Rs.)
(Being owing by a customer, not included in the list of Sundry Debtors, now
rectified.)
Suspense A/c
To Customer 4,052
12,930 12,930
Dr. Cr.
Date Particulars ₹ Date Particulars ₹
2016 2017
4,50,000 4,50,000
2017 2017
April 1 To Balance b/d 4,50,000 Oct. 1 By Bank A/c (Mach. I) (Sale) 1,35,000
Oct. 1 1,20,000
(Profit and Loss A/c) (WN 3)
2018
March 31 By Balance c/d 1,50,000
4,50,000 4,50,000
2018 2018
April 1 To Balance b/d 1,50,000 Oct. 1 By Bank A/c (Mach. II) (Sale) 1,27,500
Oct. 1 To Bank A/c (Mach. III) (Sale) 3,75,000 Oct. 1 By Provision for Depreciation A/c 30,000
2019
Dr. Cr.
Date Particulars ₹ Date Particulars ₹
2017 2017
2017 2017
67,500 67,500
2018 2018
(₹ 7,500 + ₹ 15,000 + ₹ 7,500) Oct. 1 By Depreciation A/c (Mach. II) 7,500
2019 2019
48,750 48,750
2019
DEPRECIATION ACCOUNT
Dr. Cr.
March 31 To Provision for Depreciation A/c 37,500 March 31 By Profit and Loss A/c 37,500
2017 2018
Oct. 1 To Provision for Depreciation A/c 15,000 March 31 By Profit and Loss A/c 30,000
2018
2018 2019
Oct. 1 To Provision for Depreciation A/c 7,500 March 31 By Profit and Loss A/c 26,250
2019
26,750 26,750
Working Notes:
OR
Machinery Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
2015 March
By Balance c/d 20,00,000
31
25,00,000 25,00,000
20,00,000 20,00,000
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
9,32,000 9,32,000
2016 April
By Balance b/d 7,20,000
1
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
5,12,000 5,12,000
Working Note:
S.No. Particular Amount (Rs)
100
100
100 12
6,12,000
100
Part B
27. (b) Operating cycle
Explanation: it included all the steps from purchasing the raw material and converting it in to finished goods and then
selling it.
OR
(a) Marshalling
Explanation: marshalling refers to the arrangement of assets and liabilities in particular order. it can be done in two
ways- on the basis of permanence and on the basis of liquidity.
28. (a) Profit and Loss A/c
Explanation: Loss on sale of the car will be transferred to Profit and Loss A/c.
29. (b) Trading Account and Balance Sheet
Explanation: Closing stock will be shown in the Trading Account and Balance Sheet if given outside the Trial balance.
OR
(c) Rs.340
Amount received from the sale of fixed assets or investments i.e., non-current Money obtained from the sale of
Capital contributed by proprietors, partners or money obtained from the issue of Commission and fees received for
shares and debentures in case of the company. services rendered.
Dr. Cr.
21,00,000 21,00,000
Working Notes:
Point of Knowledge:
Closing stock is not showing separately in the trading account as it is already subtracted in adjusted purchases.
Packing Expenses on Sales’ and ‘Depreciation’ are indirect expenses and hence not debited to the Trading A/c.
32. For recording business transactions, the convention of conservatism is followed which states that provision should be
made for expected profit and gains should not be accounted for. As it is not possible to accurately know the amount of
bad debts. Therefore, in order to bring an element of certainty in the amount of bad debts from debtors a provision for
doubtful debts is created to cover the loss of possible bad debts. A firm must be convinced with the amount of net
debtors which it is going to realize by the end of the financial year and for this purpose, provision for doubtful debts
certainly provides a helping hand.
2019
March
Trading A/c 3,02,000
31
2,000
(Bein the direct expenses debited to Trading Account)
March
Sales A/c 5,00,000
31
To Trading A/c
5,00,000
(Bein the amount of Sales transferred to the credit of the Trading Account)
March
Stock (Closing) A/c 27,000
31
March
Trading A/c 2,25,000
31
2,25,000
(Being the transfer of gross profit)
March
Profit and Loss A/c 1,65,000
31
(Being the various indirect expenses accounts transferred to the debit of the Profit 40,000
and Loss Account)
March
Discount Received A/c 3,000
31
(Being the credit balance of discount received transferred to the profit and Loss 3,000
Account)
March
Profit and Loss A/c 63,000
31
To Capital A/c
63,000
(Being the transfer of Net Proft to the Capital Account)
TRADING ACCOUNT OF SHAMIT for the year ended 31st March, 2019
Dr. Cr.
Particulars ₹ Particulars ₹
5,27,000 5,27,000
Dr. Cr.
Particulars ₹ Particulars ₹
To Salaries 70,000 By Gross Profit 2,25,000
To Advertising 50,000
OR
Amount Amount
Particulars Particulars
(Rs) (Rs)
To Wages 3,000
======= ======
To Salaries 2,000
To Depreciation 1,000
To Repairs 300
9,600
9,600
====== ======
Balance Sheet
Amount Amount
Liabilities Assets
(Rs) (Rs)
Cash 1,600
Bank 400
32,700
32,700
======= ======
In order to arrive at the balance sheet of a business, one needs to prepare the trading account and profit and loss account
first. This account is prepared to arrive at the figure of revenue earned or loss incurred during a period.
Dr. Cr.
Amount Amount
Particulars Particulars
(₹) (₹)
To Opening Stock 44,840 By Sales 1,78,215
2,40,305 2,40,305
Dr. Cr.
Amount
Amount
Particulars Particulars
(₹) (₹)
To Rent 2,810
To Salaries 5,500
To Insurance 200
To Repairs 1,685
To Discount Allowed 2,435
49,805 49,805
Amount Amount
Liabilities Assets
(₹) (₹)
Debtors 30,000
1,25,312 1,25,312
Working Note:-
Calculation of Depreciation:-
Provision for doubtful debts = Sundry Debtors - Further Bad debts - Amount recovered × Rate
When adjustments are given in trial balance all the adjustments will be taken in the balance sheet only. Adjustments that
are given after trial balance will be shown both in trading and profit and loss account and balance sheet.
To practice more questions & prepare well for exams, download myCBSEguide App. It provides complete study
OR
The Trading and Profit and Loss account & Balance Sheet of MMN will be prepared in the following manner :
Dr Cr
To Wages 21,470
1,18,860 1,18,860
To Salaries 4,670 By Gross Profit b/d 32,180
(-)Prepaid rates & taxes (240) 600 (-)Unexpired Premium (400) 100
34,870 34,870
Balance Sheet
as at 31st December,2013
1,19,128 1,19,128
Note :
1. Apprenticeship premium is a revenue income of the business. Unearned premium means, premium received in
advance. Thus, it has been deducted from the income received. The amount of unearned premium will be shown in
liability side of Balance sheet.