PERODIC CLASS TEST –

I
Subject- Accountancy Grade- XI Marks- 40 M

Name of the Student: Date- 26/07/2023 Time- 1 Hour 30 Mints

General Instructions:

1. This question paper is divided into Six Sections- Section A, B, C..

2. Section A: Question 1 to 15 are Multiple Choice Questions, 1 mark each.
3. Section B: Question 16 to 18 is a Source based Question. Read the passage and answer questions.
4. Section C: Question 19 to 20 are short answered questions of 1 marks each.

SECTION-A
Choose the correct answer from the given options. [15*1=15]
1. Payment to a creditor means:
A. Increase in asset and decrease in liability.
B. Decrease in asset and decrease in liability.
C. Decrease in asset and increase in liability.
D. Increase in asset and increase in liability
2. Which of the following is not an internal user of financial statements?
A.Board of Directors.
B. Managers.
C. Employees.
D.Lenders
3. Convention of conservatism takes into account:
A.All future profits and losses.
B. All future profits and not losses.
C. All future losses and not profits.
D.Neither profits nor losses of the future

4. IFRS are:
A.Rule based accounting standards.
B. Principle based accounting standards.
C. Partially rule based and partially principle-based accounting standards.
D.None of the above
5. The cost of a small calculator is accounted as an expense and not shown as an asset in
a financial statements of a business entity due to .......
A.Materiality Convention.
B. Matching concept.
C. Periodicity concept.
D. Convention of full disclosure.
6. Payment to a creditor means:
A.Increase in asset and decrease in liability.
B. Decrease in asset and decrease in liability.
C. Decrease in asset and increase in liability.
D. Increase in asset and increase in liability.

7. Which of the following is not a limitation of accounting?

A.Based on accounting conventions.
B. Evidence in Legal Matters.
C. Incomplete Information.
D.Omission of Qualitative Information.

8. The withdrawal of goods from the business by the proprietor should be recorded in the.
A.Drawing Account
B. Purchase Account
C. Capital Account
D. Profit and Loss Account

9. Management accounting involves .

A.Preparation of financial statements
B. Analysis and interpretation of data
C. Recording of transactions
D. Preparation of cost statements
10. An increase in one asset is accompanied by:
A.Decrease in another asset.
B. Increase in a liability.
C. Increase in capital.
D.All of these
E.
11. Income is measured on the basis of:
A.Matching Concept.
B. Consistency Concept.
C. Cost Concept.
D.None of the above
12. is a deduction from the list or catalogue price allowed by the
wholesalers to the retailers for various reasons.
A.Trade discount
B. Special discount
C. Cash discount
D. None of the above
13. Ind AS are:
A.Rule based accounting standards.
B. Principle based accounting standards.
C. Partially rule based and partially principle based accounting standards.
D.None of the above
14. Commodities bought for resale are treated as .
A.Expenses
B. Stock
C. Goods
D.Assets
15. A person or entity to whom money is owned is known as .
A.Creditor
B. Claimant
C. Bailee
D. Debtor

SECTION-B

ASSERTION REASONING QUESTIONS

16. Assertion (A) - It is not necessary to match “revenues” of the period with the expenses”
of that period to determine correct profit or loss for the accounting period.
Reason (R) – Therefore, it is not relevant when the payment was made or received.
All adjustments are made for all outstanding expenses and prepaid expenses.
[1]
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true and (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true
17. Mr. Naveen dealing in electronic goods sold 20 TV sets costing 30000 Rs. Each at Rs.
40000 each. Out of this Rs. 5, 00,000 were received in cash and the balance
is not yet received. State the answer of following [4]

(I) Amount of Revenue

(A) 5,00,000 (B) 6,00,000
(C) 8,00,000 (D) 7,00,000
(II) Amount of Debtor
(A) 2,00,000 (B) 3,00,000
(C) 4,00,000 (D) 7,00,000
(III) Amount of Profit
(A) 2,00,000 (B) 3,00,000
(C) 5,00,000 (D) 7,00,000
(IV) Amount of Creditor
(A) 2,00,000 (B) 3,00,000
(C) 5,00,000 (D) None of the Above
CASE BASED QUESTIONS
18. Mohan starting his Clothes business with Rs. 2,00, 000. He purchases Clothes for
1, 20,000 in cash and 50,000 in credit from Ram. He also purchases furniture for
Rs. 20,000. He appoint Mr. X for attend the customer. Salary of Mr. X is 6000 Rs
per month. State the type of Account in Above case study. [4]
(I) Capital A/c
(A) Real Account (B) Personal A/c
(C) Nominal A/c (D) None of the above
(II) Furniture A/c
(A) Real Account (B) Artificial Personal A/c
(C) Nominal A/c (D) None of the above
(III) Salary A/c
(A) Real Account (B) Artificial Personal A/c
(C) Nominal A/c (D) Representative Personal A/c
(IV) Mr. Ram is treated in this case
(A) Creditor (B) Debtor
(C) Owner (D) Financer
 SECTION-C

19 Complete the missing accounting equation

[10]

20. prepare the Journal entries from the given transactions. [5]
1. Amar started the business by investing Rs.100000
in
cash and Rs. 120000 in Bank account.
2. Purchased goods for cash Rs. 20000 for cash and
Rs. 15000 on credit from Sanjay
3.Sold goods for cash Rs. 10000 worth goods for Rs.
15000