PRUDENCE SCHOOL, ASHOK VIHAR

FINAL EXAMINATION
SESSION 2022-23
SUBJECT: ACCOUNTANCY (SET A)
CLASS: XI

Name of the Student: nswd Max. Marks: 80

Day& Daie: Friday, 10h February 2023 Duration: 3hrs

General Instructions:
All questions are compulsory.
ii. Do not write anything on the question paper.
ii. Marks are indicated against each question.
iv. Show the working notes clearly.
Use of abbreviations, cutting and overwriting must be avoided.
vi. 1Sminutes time has been allotted to read this question paper.

LAs per the Modern Approach, increase in Revenue will come on side of Revenue
Account and decrease in Expense will come on Side.
(a) Debit, Credit
(b) Credit, Debit
e r Credit, Credit
d) Debit, Debit
2. Accounting standards enhances comparability of financial statements for both intra and inter firm
analysis.
State True or False.
3. A percentage reduction from the list price of merchandise allowed to retailers by wholesaler is 1
called:
(a) Rebate
b) Cash discount
e Trade discount
(d) Allowance
Raghav, a customer, to whom goods were sold, was allowed rebate of R2,000 because they were of 1
poor quality. These goods were sold charging CGST and SGST @ 9% each. Raghav's A/c will be
credited with
Rohan, a chartered accountant earned 12,00,000 during the financial year 2020 -2021. Out of
which he received 10,50,000. He incurred an expense of T5,10,000, out of which 1,20,000 are
outstanding. He also received his fees relating to previous year 1,35,000 and paid 760,000
expenses of last year. Rohan's income for 2020 2021 on cash basis will be:
(a) 7,35,000
(b) 76,15,000
(c) 76,90,000
(d) 75,85,000
6The nominal accounts at the end of the accounting year are not balanced.
State true or false.
Which one of the following is not an objective of providing depreciation?
(a) For ascertaining the true profit and loss 1
(b) Showing the true and fair view of financial statement
(c) For avoiding overpayment of income tax
(d) Depreciation is a gradual and continuing process.

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 B Hema traders purchased from Videocon lIndia Limited 5 washing machines@ i50,000 each at
T0% trade discount +
GST@ 12%. The Purchase column of the purchase book will record l
purchaseat
A portion
of the accounts receivable which proves to be uncollectible is termed as:
(a) Bad debts
b) Doubtful debts
(c) Provision for bad debts
(d) All of these
10 Fill in the following assuming GST rate is 12%.
Purchases A/c Dr.
Input IGST A/c Dr. 30,000
To Shyam's a/c
(Purchased goods from Shyam)
(a) Purchases 60,000, Shyam 90,000
(b) Purchases 2,50,000, Shyam 2,80,000
(c) Purchases 2,20,000, Shyam R2,50,000
(d) Purchases 2,25,000, Shyam 2,55,000
. Which Method is not recognised by Income Tax
Authority?
a) Written down value Method
b) Diminishing Balance Method
c) Fixed Installment Method
d) All of the above
12.The book which contains a classified and permanent record of all the transactions ofa business is
1
called the
a) Trial balance
b) Ledger
c) Journal
dy None of them
13. Life Insurance premium paid will be debited to:
1
(a) Insurance A/c
(b) Life Insurance Ac
c) Drawings A/e
(d) Bank A/c
A. Arrangement of assets and liabilities in the Balance Sheet is known as
15 The error which is revealed by the trial balance is
(a) Wrong amount posted in the ledger account
(b) Wrong amount entered into the books of original entry
c) Complete omission
(d) None of them
16. The manager is entitled to a commission of 10% on Net Profit after charging such commission. If
1
Net profit is 1,10,000, then manager's commission will be:
(a) 11,000
(b) F20,000
(c)T10,000
(d) None of these
YRead both the statements and choose the correct alternative:
Statement I Cost is the amount of expenditure incurred on
-

or are attributable to a specified thing

or activity.

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 Statement II - Cost can be termed as the amount of resources given up in exchange for some

goods or services. The resources given up are money or money's equivalent, expressed in terms of
money
(a) Both statements are true and Statement II is the correct explanation of Statement I.
(b) Both statements are true. but Statement Il is not the correct explanation of Statement I.
(c) Statement I is true, but Statement II is false.
(d) Statement II is true, but Statement I is false.
18. If outstanding salary is appearing in the trial balance, it means 1
(a) Salary of entire period is debited as expenses
b) Salary for some period is to be added to the salary account
(c) No liability incurred for payment of salary
(d) None of above
19Goods withdrawn by the proprietor for personal use 5,000. The goods were purchased paying 1
IGST@18%. In the journal entry 1GST A/¢ will be with 900.
28. A secondhand motor car was purchased from Veer Brothers for 10,000. It is recorded in 1
book.
21. Differentiate between Accounting and Bookkeeping. 3
22. Republic Sanitary is an MSME business in the Alwar district of Rajasthan. It is 40 years old 3
business ofselling hardware parts to local traders of the district and some other retailers of
Rajasthan. The company has multiple SKUs and the inventories are valued by their accountant.
The accountant of the enterprise also happens to be a good friend of the owner of the enterprise.
Therefore, the fees of the accountant was not paid in the year when pandemic set in as the firm was
going through cash-crunch. However, the accountant entered the amount of his fees as expense
even though cash was not paid. He justified his act by stating some accounting concepts. The
accountant further completed the books of accounts for the year ended 31 st December, 2020. Over
the years, the company has developed a reputation in market by supplying high quality products
and customer-friendly service. The owner of the firm asked the accountant to enter this fact but
accountant denied and gave the correct reasons. The owner was contended.

State and explain the principle of accounting is highlighted in the following lines:

Therefore, the fees of the accountant was not paid in the year when pandemic set in as the
firm was going through cash-crunch. However, the accountant entered the amount of his
fees as expense even though cash was not paid.
Over the years, the company has developed a reputation in market by supplying high
quality products and customer-friendly service. The owner of the firm asked the accountant
to enter this fact but accountant denied and gave the correct reasons.
B. Prepare Trial Balance from the following: 3
Stock (1st April 2020) 76,000; Bank Balance R2,000; Cash in hand 1,000; Building 20,000;
Office equipment2,600; Purchases 40,000; Rent paid R10,000; Advertisement expenses R6,600;
Postage expense 14,000; Commission allowed R800; Rent received 1,000; Manufacturing
expense R10,000; Administrative expense R8,000; Sales 1,00,000; Sundry Debtors R18000;
SundryCreditors 28,000, Value of ClosingStock was10,000 and Capital
30,000.
24 Differentiate between Provisions and Reserve.
25.State with reasons whether the following are capital or revenue expenditure:
aA new machine is purchased for ?1,50,000; ?10,000 were spent on its carriage and 5,000
were paid as wages for its installation.
12,000 were spent on the repair of machinery.
J 75,000 were spent on repairs before using a second hand generator purchase recently.

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26. Gopalsold goods to Madhav for 10,000 on credit on 25th April 2021. Madhav returned goods 3
worth 2,000 on 26th April 2021. He paid the entire amount on 5th May 2021.
ldentify and explain the various source documents which will be prepared by Gopal for these
transactions.
21. 'A sold goods to B' for 10,000 and a drew a bill on 'B' for the same amount. 'B'returned the
bill after acceptance to 'A'. 'A* discounted it with his bank for 9,650. On the due date, B' was
unable to paythe amount. The bill became dishonoured and noting charges of Z50 was charged by
the bank. Give journal entries in the books of A and B.
28 Fromthefollowinginformation,Calculate operating profit:
Particulars
Gross Profit 60,000
Rent 5,000
Salary 15,000
Commission paid 7,000
Interestpaid on Loan 5,000
Advertising 4,000
Discount received 3,000
Printing &Stationery 2,000
Legal charges 5,000
Bad Debts 1,000
Bepreciation 2,000
Interestreceived 4,000
Loss by fire 3,000
bank account in the of the 4
29.Sanyam started business with cash 4,00,000. He opened a
name

business by depositing in HDFC Bank 325,000. -BT,

Sanyam purchased goods in cash 70,000 and on credit 730,0D0. He sold goods costing 40,000
for 60,000 in cash and goods costing 1Q,.000 for R16,000 on credit. He alsosold his personal car
and deposited the money in the bank account of the business for office use, F1,00,000.
the goods sold on
During the year, Sanyam received a Commission of 35,000, and cash against
credit in full settlement T15,000. He has also paid salaries to the employees at the end of the month
755,000.

Use the concept of Accounting Equation to answer the following questions:

(aWhat will be the amount of capital at the end?
Calculate the balance of cash at the end of the month.
of the period?
What is the Amount of Debtors and at the end
d) Calculate the amount of total assets of the business?
6
30.)Shaurya limited shows the following balances as on 1st April 2020:
Machinery Account.... ..76,25,000.
Provision for Depreciation Account... 1,45,000.
Depreciation is charged on machinery 20% per annum by written down value method. A piece

of machinery purchased on Ist April 2018 for 1,25,000 was sold on Ist October 2020 for
75,000. Prepare Machinery Account and Provision for Depreciation Account assuming that the
accounts are closed on 31st March every year.

3 Rectify the following errors: 6

(Bad debts aggregated 71,700 were written off during the year but were not posted.

6) An amount 1,650 spent on installation of machinery were debited to Wages Account.

received but was debited to rent account as 77.
)Rent amounting to <770 was
d A credit sale of 2,000 to Mr. James was correctly entered in the sales day book but wrongly
posted to the debit of Mr. James as 75,000.
(e Discount allowed to Seema R4,600 on receiving cash from her was recorded in the books as

7460
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 ()250 received from Sohan was credited to Mohan's account.

32. Journalise the following transactions: 6

a) Opened a current account with State Bank of India by depositing 740,000.
( Goods costing 10,000 issold at a profit of 20% on cost and trade discount is allowed@
10% and cash discount of 10% is allowed if amount is paid in 15 days. Half of the payment
is received at the time of sale.
(c) An old machinery having book value of 1,50,000 is exchanged with the new machine of
5.00.000 from Lakshmi machines.
dy Goods costing 2,000 the selling price of them being 3,000 are destroyed by fire. The
insurance company accepted 50% of the claim.
se Rent paid 710,000, and salaries for the month of 72,000 are still pending.
Bank overdraft is settled 18,000 and R500 are paid as interest on the same.
33. Ons1 March, 2021 the following Trial Balance extracted from the books of Shyam: 6

Particulars Dr) CrR)

Opening Stock 6,000
Purchases and Sales 18,000 35,000
Loan @ 6 % p.a. on 1St 9,000
Scptember, 2020
Interestreceived 2,500
Motor Vehicles 18,000
| Motor expenses 3,000
Salaries 2,200
General Insurance premium P 3,000
Productive wages 1,000
Capital 24,000
Land&Building 16,000
Debtors and Creditors 6,000 8,000
Cash A 2,600
Rent 2,700
Total 78,500 78,500
Adjustments-
-aStock in hand on 31 March, 2021 was 7,800 and (market price) 7 6,950.
bOnly three quarters rent has been paid, the last quarter rent has been outstanding.
e 2/sth ofthe Interest received related to 2021-22.
dDepreciate Motor Vehicle by 15 %.
eieneral Insurance is paid for the year ending 30th June, 2021.
Prepare Trading& Proft& Loss Ale for the year ending 31s" March, 2021.
34. Prepare a Double Column Cash Book from the following transactions

Jan. Cash in hand 50,000 and Cash at bank 10,000.

Ja 2 Purchase goods in cash for 2,000 and on credit from Ramesh 5,000.
Jan 3 Sold goods in cash R3,000 and on credit to Mohan 4,000.
Received cheque from Mohan 4,200and allowed him discount z280.
Jan9 Paid by cheque to Ramesh 5,500 and received a discount of 10.
Jan 12 Deposited cash into bank 1,000.
Jan 15 Interest collected by bank 500.
Jan18 Rent paid by cheque 1500.
Jan. 31 Deposited with the bank the entire balance after retaining 3,820 at
office.