ARAVALI INTERNATIONAL SCHOOL

. MID TERM EXAMS (2023-24)

SUBJECT: ACCOUNTANCY
CLASS XI- (SET B) .
Date: 11.09.2023

TIME: 3 Hrs. M.M 80 Marks

General Instructions:
• The Question paper consists of two sections: Section A & Section B
• Section A has Objective type Questions whereas Section B has Subjective type ·Questions.
• Attempt all the questions in the correct order. " "'" .
Section A (Objective Type) [1*20= 20]

/4The statement ~hat provides the applicability of laws, customs, usages and the business environment
of any country is _ _ __
a. Accounting Principles b. Accounting Standards
c. Accounting assumptions d. Accounting conventions
/ A business depreciates its machinery by maintaining Provision for Depreciation Ale'. In regular
course of accounting which of the following journal entry/entries w ill not be made in the books of the
business?
a. Depreciation Ale Dr b. Depreciation Ale Dr
To Provision for Depreciation Ale To Asset Ale
c. Profit & Loss Ale Dr d. Profit & Loss Ale Dr
To Depreciation Ale To Provision for Depreciation Ale
/ Pass a Journal entry for- Accrued commission t 20,000.
t h th e SUI·tab'.e OPf10n:
4 Mac
1. Allowance allowed to Ms. Amit traders On (i). Purchase Book
account of mistake in invoice.
2. Allowance claimed from Mr.Z on account in (ii) Purchase return book
invoice
(iii) Sales return book
· (iv) journal proper

a. 1-(iii) ; 2-(ii) b. 1-(ii); 2-(iii) C. 1-(iii); 2-(iv) d. 1-(i); 2-(ii)

5. On 1stApril 2021, a Machinery was purchased ~1, 30,000 and paid installment charges
~20, 000.lt is estimated to have a scrap value of ~15, 000 at the end of estimated useful life of 15 yea~
The firm closes its accounts on 31 st March every year. Calculate the percentage of annual depreciation
by Straight line Method. .
a) 6%p.a b) 8%p.a c) 9%p.a d) 10%p.a

Read the following hypothetical situation and answer Ques 6 and 7.

Vinod Ltd purchased a machinery of ~5,60,000 and spent ~40,000 on its installation on 1st December
2018.Company purchased one more machinery of ~4,00,000 on 1st July,2019.One old machinery of
~2,30,000 was purchased on 1st January 2020 and spent H0,000 on its maintenance to make it
serviceable. On 30 th June 2020 second machinery was sold at a loss of 20%.Depreciation is charged

AIS/2023-24/MID TERM/ACCOUNTANCY SET B /XI Page 1 of 6

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@10% p.a by using Straight Line Method. Accounts are closed on 31 st March every year. You are '.\~l{>
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required to answer the following questions: \\'. ~
6. State the amount of Depreciation charged on 31 st March 2019? .
'

a ~20,000 b { 18,667 c {15, 000 d { 18,000 l

7. Calculate the loss on sale of Machinery?
a UO, 000 b { 72,000 cU4, 000 d {75,000

8. MIS Rena Furniture sold furniture amounting to Rs.1,00,000 to MIS Neha. Trade dist:ount applicable
@10%, CGST and SGST@ 6% each. Half payment received in cash and availed cash discount of
10%. Amount to be entered in sales column of Sales book is Rs . _ _ _ __

Question 9 -13 consist of two statements, each printed as Assertion and Reason. While
answering these questions, you are required to choose any one of the following four
responses.
a. If both (A) & (R) are correct and (R) is a correct explanation of the (A).
b. If both (A) & (R) are correct but (R) is not a correct explanation of the (A).
c. If (A) is correct but (R) is incorrect.
d. If both (A) & (R) are incorrect.
9. Assertion (A): While posting in personal accounts from the sales return book, posting is done on
the credit side .
. Reason (R): The total of Purchase Return Column of Purchase Return Book will be posted to the
debit of Purchases Account.
10. Assertion (A): Bank column may have debit (positive) balance or credit (overdratt) balance.
Reason (R): Cash column will always has debit balance.

- - ; 1. Assertton1A-r-elosing stock- is--flot-shewn--in t!:le-ti:ial-balance _ _ ,_ _ _ _._ _ __

Reason(R): It is not adjusted like other items are adjusted through journal and Ledger.

12. Assertion (A): A business purchased two delivery vehicles (I) and (II) at the same price of
~5,00,000 each. Vehicle (I) is expected to be used for 10 years with realizable .value
of {50,000. Vehicle (II) is expected to be used for 13 years with same realizable
amount of {50, 000. Business is charging same amount of annual depreciation on
both the vehicles. .
Reason(R): Amount of depreciation depends on the cost and realizable value of the asset.

13. Assertion (A): GST paid (i.e., Input GST) is reversed (Credited) in case of purchase return and
goods lost or stolen.
Reason (R): GST collected (i.e., Output GST) is reversed (Debited) in case of sales return.

14 Discounted a bill of exchange@ 2% through bank fort 8,000. Cash book shows:
a. Debit of { 8,000 b. Credit oft 8,000 c. Debit oft 7,840 d. Credit oft 7,840

15 Which of the following entries ignored while posting from the cash book to the ledger?
a. Deposited cash in bank b. Withdrew cash from bank for office use.
c. Withdrew cash from bank._for personal use d. both a & b

Page 2 of 6
AIS/2023-24/MID TERM/ACCOUNTANCY SET B /XI
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\'\~;~',)",· . balances were incurred by petty cashier during the month - postage t1 200·
following
N'',~conveyance f 500; Sundries t1, 700. State the amount of reimbursement if the imprest amou~t is '
,. ,a,ooo .
. a.t3,300 . . . . b. t4,600 . c. ,a,ooo d. t3,400
~ 17 Which of the following Is distributed as free reserves? ·
"" a. Capital Reserve b General Reserve
c Security Premium d. Both (b) and (c)

18, Identify the correct sequence for following transactions with respect to cash book:
i) Balancing the cash and bank column ·
ii) Recording opening balance
iii) Carry forward the balance to next month
· iv) Recording cash and bank transactions
a. (ii)-{iv)-{i)-{iii) b. (i)-{ii)-{iv)-{iii) c. (iii)-(iv)-(i)-(ii) d. (iv)-(ii)-(i)-{iii)
th
19 Goods costing 48,000 were sold at a profit of 25% on sales to Ram, 314 amount was received in ·
cash. On the basis of the above statement, Cash of , -----will be increased and Stock of
1
,_will .be decreased in accounting equation. · ,

20. If Persona\ investment of Rs 2d,boo·sold at a gain of Rs 5,000 and half of the proceed is used to
make payment of creditors of business and half of proceed is deposited in current account of
. business then capital will be credited by J.. ______ _
a. ~25,000 b. ~12,500 c.,20,000 ,. d: '37,500
I -. . I
Section B (Subjective - Marks of each question indicated in front of ques)
[31
\ · ?ino~ ?°nstruction Company showing ·the fqllowing balances on 1st April, 2015:
Machmery..Account ..... ..... .. .. . ..... . ... .. . ... .. ........,... ,......... U,50,000
Provision for Depreciation Account... ..... .... ........ .. ........ ... t1,74,000 ·th
A piece of machinery purchased on 1st April, 2013 for t1 ,50,000 was sold on 30 September, 2015
for t90,000. Depreciation is charged on machinery at 20% p.a by the Straight line Method. Show
Asset Disposal Account and show the working clearly.

~Identify the Accounting terms of the following statements: [3]

a. It is a~ross inflow of cash (Received or Receivable), receivables or other consideration arising
in the course of ordinary activities of the enterprise from the sale of goods, from rendering
services and from the use by others of enterprise resources yielding interest, dividends etc.
9· It is a reduction in the sale value due to excess supply.
c. It is a bill of exchange accepted by a debtor.

fl Pass the journal ent.9es from the totiowing ledgersSALES

Account.
A/C
[3)

DATE PARTICULARS J.F AMOUNT( DATE PARTICULARS J.F AMOUNT

Feb 8 B Ra hav NC 10,000
COMMISSION RECEIVED A/C
PARTICULARS J.F AIVIOUNT
DATE PARTICULARS J.F AMOUNT DATE 7'.50
Feb 28 Bv Cash'NC
250
Feb 28 By Accrued . ' . , , I,

..
commission ', .. ' ' ., j ' .. ,
Page 3 of 6
AIS/2023-24/MID TERM/ACCOUNTANCY SET B °;xi
 OUTPUT IGST A/C
DATE PARTICULARS J.F AMOUNT DATE PARTICULARS J.F AMOUNT
Feb 8 Bv RaQhav 1800
RAGHAV AJC
DATE PARTICULARS J.F AMOUNT DATE
Feb 8
PARTICULARS . J.F AMOUNT
To sales a/c 10000
To Output IGST Ale
Feb 16 Bv cash a/c 10800
1800 1000
~t
· Ale.-

M ccoi.mting standards have been evolved to improve the reliability and credibility of financial
~ments. Accounting standards provide the solution in case of conflicts among various groups.'
Comment. State any one Ind-As. f3J
r6s\ From the following transaction of Vinod Bros. prepare Subsidiary Books.
q. Started business with cash ,20,000, bank ,30,000, Furniture ,1,so,000 c..
.
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2. Purchased goods on credit from M.K and Sons 200 units @,.200 each plus CGST and SGST 6%
each and freight charges payapJi~ 500 f -"" , 11> · ·· ·
3. Purchased goods for cash ,1.~.000 ; paid carriage of ,200 and pllrchased Machinery on credit
of ,5, 00,000 and paid carriage of ,2000 in cash. t...\l:. ,-,_ ,.H · ·
4. Goods, 200 units @,100 each less 10% trade discount plus CGST & SGST @6% each, which·
were sold on credit to Mr. XYZ were now returned. <!, l!-.
5. Depreciate furniture by 10%. "S ·
6. There was loss of Goods of , 17000 by fire and insurance company accepted the claim of
,13, 000 and received the amount through cheque which was deposited into the bank. <Lf-1 '.ff ·

.J$. A provision can be specific or general. Do you agree? Give reason. Give the journal of creating a
Reserve. l31
JTldentify the stakeholder group who would be most interested in the following: f4J
i) The ethical or environmental activities of the firm.
ii) Whether the firm has a long term future.
iii) The ability of the firm to carry on providing quality products.
iv) Relative strength and weaknesses of the enterprise .

...,/'Mr. Richard has the following assets and liabilities on 31 st March 2021. ff4]
Jcash ,10,000;Stock ,26,000 ; Due from Rajesh ~16,000;Due from Govind ,15,000;Furniture
,53,000;Plant and Machinery ,20,ooo;Loan to Vinod ~10,000;Due to Mohan ,s2,00Q;Rent
outstanding N,000.Capital on 31 st March 2020 was ,45000. Drawings made during the year was
,10000 and Additional capital introduced was ,50000.Calculate the ProfiUloss during the year.

dFollowing is the incorrect trial balance drawn by an inexperienced account clerk; you are required
~oo~ct~

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AIS/2023-24/MID TERM/ACCOUNTANCY SET B /XI Page 4 of 6

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1 • • ,,\·s Debit balanceCf\ Credit Balance(Cr.\
_·,,. 1-edaer Account

h. ili cash in Hand 60,000

sad debt Reserves 1,000

General Reserve 20000

6000
Return Inwards 10000
sundrv Debtors 6000
Patent
8,000
Stock<1 st Aoril,2021) 44000
Caoital 55000 '
- I
Purchases -
60,000
Sales 2000
Return Outwards 10000
Creditors .14 000
Interest Received
3,000
lnoutCGST 3,000.
lnoutSGST 5000
Closina Stock
/IS).(, State which Accounting principle/Assumption is applicable while dealing with following situations?
. .
i) Depreciation is charged on fixed assets year by year with the same method
ii) Capital is treated as a liability of the business.
iii) The life of the enterprise is broken into smaller regular intervals of one year so the performance can
be measured effectively. ' . .
iv) Assets : Capital+ liabilities
v) A Truck is ~urchased (Expected life 1·5 years} for delivery -of good~. The cost of Truck is spread over
the next 15 years for the calculation of profit/loss for each year.
vi) Assets are divided into two parts i) Non-current Assets and ii) Current Assets.

r. ·chaturvedi maintains two bank columns.Prepare his columnar cash book from the following
rticulars: [6]
Date Pa iculars
May 1 Cash in hand .... .. ... .. .. ....... . .... .. .... .. .... .. ... ...... 134,000
Balance with ABC Bank (Overdraft) .. ... . .. .. ..... ... ... 75,200
Balance with PQR Bank ... ... ... ... ... .. . ... ...... ..... . 1,20,000
Ma Cash drawn from PQR bank for ersonal use .... ... 25,000
Ma Sold goods to Diwedi for ?80, 000 and received from him ?20, 000 in cash on same
· day and 8: cheque on May 9 for the balance. The cheque received was endorsed on
the same da to A a on full settlement of her account of ?62,000
May 12 Purchased goods fo_r ?40,000 at 20% trade discount.25% of the amount is paid in
cash and issued a cheque on PQR bank for the balance amount.

Ma 20 Paid wa es ?4,000 and Sala ?32,000

Ma 22 Ache ue for ?50, 000 is drawn on PQR bank and it is de osited in ABC Bank.
Ma 23 Purchased Furniture for f 20,000 and a che ue is issued on ABC Bank.

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I ,

Ma~ A Cheque for ,10, 000 which was received from Mor.an and was deposited in PQR
th
Bank on 25 April is dishonored and the bank debited ,1 so as bank charges on this
cheque. The amount of dishonored cheque and bank charges is-received from Mohan
in cash on 25 th May .
Mav26 Deoosited cash ,30,000 in ABC Bank
May28 Sold old typewriter for ,2,000 and old newspaper for ,200 in cash
May29 Interest charQed by ABC Bank ,400
May 31 Cash in excess ,sooo was deposited int~ abc bank.

.ftFol~owing was the position of Mr.XYZ,Delhi on 1st April 2021: . [6]

Cash m hand ,10,000; Cash at Bank ,1a,aoo;Machinery ta,ooo ;Stock ,so,ooo;Debtors -Ram
,a,ooo,Shyam ,12,000, BIR ,sooo.creditor-Anil ,4,ooo
and B/P ,s,oo::>.
Following transactions took place in -the month.
a) Purchased goods from Rohan, Haryana for t2, 000 less 10% trade discount and 5% cash
discount. Half payment was made by cheque and half in cash. {Assume IGST@ 12%)
b) Goods costing ,10, 000, market price t13, 000 were given as charity and goods costing, 5000
were withdrawn for persc;>nal use.(12% IGST was paid) ·
c) Sold Goods to PQR, Delhi of ~25000 less trade discount 10% and 5% cash discount.40% payment
was received in cash .(Assume CGST And SGST @6% each)
d) Ram became insolvent; a final dividend of 40 paisa in a rupee is received from his estate .
e) Mr. XYZ sold his home furniture for t 25,000 and deposited half amount in his cu rrent ai::: ount
and half amount in his saving account.
f) Payment made for 8/P t4500 in full settlement.
g) isoo spent on installation of the machinery and 1000 on Repair of the machinery existing in the
books. .

-- - .; ·.',' . ..
Pass th ~ Jo_woaI e_n tries of ab.eve tra fl_f;iG.t ii;ms a,·1r.Uri a~e !&dgsrs of Re;;; ·and Cap!t::l.
.'

1
.

Show the effect of following transacxions on accounting· equation fo r the year ending 31 51 March
~22. . [6J
1. Mr. John brought forward the following balances from previous year:
Cash t40,000;Bank :20,000 Furniture t30,000; Stock ~10,000;Debtors t20,000;Creditors i3o,ooo
and Capital ~90,000 •
2. Rent paid t15600 for 13 months starting from 1 April 2021-31 st May, 2022
3. M~. Rakesh appointed as sales manager on a Monthly salary of ~10, 000
4. Purchased a Building from Rahul by raising a loan from HDFC Bank for i1, 00,000
5. Goods Returned of list price t2000 which was sold at 10% trade discount.
6. 1/Sth bank loan repaid plus interest t2000.

~ K limited purchased two machines of t2,00,000 and t3,00,000 on 1st April,2011 and 1st Ju1y;2011 .
7 · One more machinery was purchased on 30th June 2012 for ~4. 00,000. The mac_hinery which was
purchased on 1st April 2011 was started giving trouble and 1/3rd part of that machinery was sold for
t56 000 on 3()lh September 2013 and a new part of machine was purchased for ~80,000 on the
sarr{e day. Depreciation is charged @10% p.a by using SLM on 3pt March every year. Prepare
Machinery account, Provision for depreciation. [6]

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