TERMINAL EXAM -1

2021-2022
ACCOUNTANCY
CLASS -XI
F.M-40 TIME-90min.

(1)ANSWER THE FOLLOWING QUESTIONS :(1×5)

(MENTION ONLY THE CORRECT OPTION )
(i)ASSERTION (A ): Personal transactions of the owners of the business are not
recorded in the books.
REASONING (R ):According to the business entity concept, each business
enterprise is considered as an accounting unit separate from it's owners.
(a)Both (A )and(R )are correct and (R )is the correct explanation of (A ).
(b)Both (A )and(R )are correct but (R )is not the correct explanation of (A ).
(c) (A ) is correct but (R ) is not correct.
(d) (A ) is not correct but (R) is correct.
(ii)ASSERTION (A):Accounting information only refers to events which are
concerned with business firm.
REASONING (R):Accounting information is presented in Financial Statements.
(a)Both (A )and(R )are correct and (R )is the correct explanation of (A ).
(b)Both (A )and(R )are correct but (R )is not the correct explanation of (A ).
(c) (A ) is correct but (R ) is not correct.
(d)Both (A) and (R) is not correct.
(iii)Favorable balance means?
(a) Credit balance in the cash book
(b) Credit balance in Bank statement
(c) Debit balance in cash book
(d) both b and c
(iv)Meaning of credibility of going concern is:
(a) Closing of business
(b) Opening of business
(c) Continuing of business
(d) None of these.
(v)Return of goods by a customer is recorded in-
(a) Purchase book
(b) Sales book
(c) Sales return book
(d) Purchase return book.
(2)ANSWER THE FOLLOWING QUESTIONS :(1×5)
(i)Define the term depreciation.
(ii)What do you mean by Business Entity Concept?
(iii)Mention both the condition for recording a transaction in a Day Book.
(iv)What is "contra entry"?
(v)Why do we prepare Bank Reconciliation Statement? (one point)
(3)What will be the effect of the following on the Accounting Equation? (4
marks)

(i) Harish started business with cash ₹ 18,000

(ii) Purchased goods for Cash ₹ 5,000 and on credit ₹ 2,000

(iii) Sold goods for cash ₹ 4,000 (costing ₹ 2,400)

(iv) Rent paid ₹ 1,000 and rent outstanding ₹ 200

(4)ANSWER THE FOLLOWING QUESTIONS :(5×2)

(A)Journalise the following entries:
(i) Goods worth ₹ 500 given as charity.
(ii) Sold goods to Mayank of ₹ 1,00,000, payable 25% by cheque at the time of
sale and balance after 30 days of sale.
(iii) Received ₹ 975 from Harikrishna in full settlement of his account for 1,000.
(iv) Received a first and final dividend of 60 paise in a rupee from the Official
Receiver of Rajan, who owed us ₹ 1,000.
(v) Charged depreciation on plant ₹ 1,000.
(vi) Charge interest on Drawings ₹ 1,500.
(vii) Sold goods costing ₹ 40,000 to Anil for cash at a profit of 25% on cost less
20% trade discount and paid cartage ₹ 100, which is not to be charged to customer.
(B)On 31st March, 2021, Cash Book of a merchant showed bank overdraft of
Rs.1,72,985. On comparing the Cash Book with Bank Statement, following
discrepancies were noted:
i. Cheques issued for Rs.60,000 were not presented in the bank till 7th April, 2021.
ii. Cheques amounting to Rs.75,000 were deposited in the bank but were not
collected.
iii. A cheque of Rs.15,000 received from Mahesh Chand and deposited in the bank
was dishonored but the non-payment advice was not received from the bank till 1st
April, 2021.
iv. Rs.1, 50,000 being the proceeds of a bill receivable collected appeared in the
Pass Book but not in the Cash Book.
v. Bank charges Rs.1,500 and interest on overdraft Rs.8,500 appeared in the Pass
Book but not in the Cash Book.
Prepare Bank Reconciliation Statement and show what balance the Bank Pass
Book would indicate on 31st March, 2021.
(5)Enter the following transactions in the Double Column Cash Book of
M/S.Chinmoy Store: (6 marks)
2021
JUNE
1- Cash in hand rs800;Bank overdraft rs5,700.
7- Received a cheque from Mr.Bharat, discount allowed rs150--------rs3,250.
9- Deposited the above cheque into bank.
15- Cheque received from Hira Lal--------rs1,200.
20- Mr.Bharat's cheque returned dishonored.
28- Hira Lal's cheque was endorsed to Panna Lal.
30- Income tax paid by cheque rs150.
(6)From the following information of Walter Ltd., you are required to prepare: (10
marks)
(i) Machinery account for the two years ending 31st March,2020.
AND
(ii) Depreciation Account for the two years ending 31st March,2020.
 The company charges depreciation @ 20 % per annum by the written down value
method :
Purchased machineries for ₹60,000 on 1.4.2018.
Purchased a second-hand machinery for ₹1,08,000 on 1.10.2018.
Spent ₹12,000 on 1.10.2018 for its repairs to make it serviceable.
Spent ₹1,200 on 1.10.2018 for repairs of the machinery purchased on
01.04.2018.
Sold one of the machines costing ₹20,000 on 1.4.2019, out of the lot
purchased on 01.04.2018, for ₹13,000 and purchased a new
machine for ₹28,000 on the same date.