BHATNAGAR INTERNATIONAL SCHOOL, PASCHIM VIHAR

SESSION 2023-2024
FINAL TERM EXAMINATION
FORM 11 ACCOUNTANCY(055)
SET A
MM- 80 marks Time-3 hours
GENERAL
1. This
INSTRUCTIONS
question
2.
Question Nos.1paper
to 20 contains 1
34 questions.
carries mark each.
All questions are compulsory.
3.Questions Nos. 21 to
4. 26 carries 3 marks
5.
Questions Nos, 27 to 29 carries 4 marks each
each.
Questions Nos. from 30 to 34 carries 6 marks
nere is no overall choice. However. an internalcaCn
choice has been provided in few Questions
Which of the followine is not an objective of accounting:
(A) To assist the 1
(C) To provide Management
information to various users
(B) To ascertain Profit or Loss
(D) To show a better position of business
Ihe amount which is paid for
increasing profit carning capacity of business is Called
(A) Revenue Expenditure
(C) Capital Expenditure (B) Deferred Revenue Expenditure
(D) Either (A) or (B)
is the withdrawal of cash and goods by the owner from
(A) Depreciation business for his/her personal use. 1

(C) Outflow of cash

(B) Drawing
(D) Appreciation
Sold goods costing 12,000 at a profit of 20% on sales the effect on
accounting equation will be: 1
(A) Increase in cash R14,400,crease in stock 12,000 and increase in capital 2,400
(B) Increase in cash $15,000,decrease in stock 12,000 and increase in capital R3,000
(C) Increase in cash R12,000,decrease in stock R14,400 and increase in capital 2,400
(D) Increase in cash R14,000,decrease in stock R12,000 and increase in capital 2,000

Assertion: Only Nominal Nature account balances transfer into Trading, Profit & Loss alc.
Reason: Nominal Nature accounts include both Outstanding Expenses and Accrued Income hence transfer into
Trading, Profit &Loss account.
Choose the correct option from following statement on basis of above Assertion (A) and Reason (R)
(A) Both (A) and (R) correct and (R) is the perfect explanation of (A)
(B) Both (A) and (R) correct individually but (R) is not a perfect explanation of (A)
(C) (A) is correct but (R) is incorrect
(D) (A) is incorrect but (R) is correct
Assertion: Sales account always Credited.
Reason: Sales is a Revenue Nature account and whenever Revenue increase its Credited
Choose the correct option from following statement on basis of above Assertion (A) and Reason (R)
(A) Both (A) and (R) correct and (R) is the perfect explanation of (Ä)
(B) Both (A) and (R) correct individually but (R) is not a perfect explanation of (A)
(C) (A) is correct but (R) is incorrect
(D) (A) is incorrect but (R) is correct
Cash book is a type of .but can be treated as a .of account.
(A) Principal Book, Subsidiary BoBook (B) Subsidiary Book, Subsidiary Bock
() Subsidiary Book, Principal Book (D) Principal Book, Principal Book

If seller receives back the goods sold i.e in case of sales return, which of the following is prepared: 1
(A) Credit Note (B) Debit Note
(C) Both (A) and (B) (D) None of lhese
Define Vouchers
they take plaCe. Thereater,
book of Final entry. the ledget, as and when
Ssertion (A). Journal is a all
first of in
the transactions are recorded
dson (R): All Ledger to Journal. correct?
entries are transferred fromstatements, which one of the following is
above
he context of the correct and (R) is the correct reason of (^)
In tth
(A) Both (A) and (R) are reason of (AI
correct but (R) is not the correct
(5) Both (A) and (R) are
Only (R) is correct
Both (A) and (R) are wrong the:
be made to
Rs.18,000. Posting of Rs.200 will
Received Rs.17,8O0 ffrom Mahima in full settlement of Mahima's Ac
Debit side of
(B)
(A) Debit side of Discount A/c Discount Ac
(C) Credit Side of Mahima's A/c
(D) Credit side of
1
Book will be:
Atrader entered into following transactions. As aresult,,total of Purchase
(A) Goods purchased from Saurav Rs.8,000
(B) Goods purchased from Randhir for Cash Rs.10,000
(C) Goods purchased from Jamal on credit Rs.25,000
(D) Machinery purchased from Vinesh on credit Rs.40,000
(A) Rs.33,000 (B) Rs.83,000
(C) Rs.73,000 (D) Rs.25,000
Bricks and Cement worth 1,20,000 purchased for construction of cvcle shed in a building. CGST &SGST paid
@6% each. Which of the following Journal entries would correctly record this:
(A) Dr. Material A/c R1,20,000, Input CGST R7,200 &Input SGST 7,200; Cr. Cash A/c {1,34,400
(B) Dr. Machinery A/c R1,20,000, Input CGST K7,200& Input SGST K7,200; Cr. Cash A/c K1,34,400
(e) Dr. Building A/c 1,20,000, Input CGST 7,200 &Input SGST R7,200; Cr. Cash A/c R1,34,400
(D)None of these

Fill in the following assuming GST rate is 12%: 1

Purchases A/c..Dr.
Input IGST A/C..Dr. 30,000
To Shyam A/c...
(Being goods purchased from Shyam)
(A)Purchases R60,000, Shyam 90,000 (B) Purchases $2,50,000, Shyam 2,80,000
(C) Purchases 2,80,000, Shyam 3,10,000 (D) None of these

Bank Reconciliation Statement is prepared by: 1

(A) Bank (B) Customer's Accountant

(C) Auditors (D) Any one of these

16 Objective of Trial Balance is to: 1

(A) Locate errors (B) Check Accuracy of ledger
(C) Both a&b (D) None of the above

Profit on sale of fixed assets is used to create

(A) Capital Reserve (B) SpecificReserve
(C)General Reserve (D) All of these

Amachine costing Rs.20,000 is depreciated @10% p.a. using written down value method, amount of 1
depreciation of third year will be
(A) Rs.1,620 (B) Rs.1,600
(C) Rs.1,700 (D) Rs.1,760

Suspense account appears in the Trial Balance because of ; 1

(A) Error of Commission (B) Two sided error
(e) One sided error (D) Error of omission

Balance sheet is prepared 1

(A)For a particular period (B) On a particular date
(¬) For the whole year (D) None of the above
State the
different users of
List and aceounting
explain the qualitative
information and their informational needs

Distinguish between Cash basis chatacteristics sof Accounting inforrnatiorn

and Aeetual basis
Record the of
At(ounting 3

Sales Book:
2023
tol owing trams1sactions of M/s Kishore 8, Sons, Delhi seling Readynade Garments in its

Jan1.Sold to M/s Gunta &

30 shirts @ Vernma, Deli
20 trousers Rs,400
@
each
Less: Trade RS.600@ each
dn 12. Sold old Discount
furniture M/s
to
10%
Jdn 18, Sold 50 shirts to M/s lain Schgal
&
&Co., Delhi for
Rs.8,000
Jan 24.Sold to M/s. Sons. Kanpur Rs, 400 cach
100 shirts @
Mathur & Jain,
Kolkata:
10
Rs.400 each
overcoats @ Rs.1,000 cach
Less: Trade Discount @ 10%.
om the following balances extracted from the
books of Hari on 31" March, 2022. Prepare hisTrial Balance
Particular Rs. Particulars Rs
Opening stock 9,600 Repairs to plant 160
Wages and salaries 3,200 Cash in hand and at bank 200
Commission on purchases 200 Debtors
Freight ,000
300 Income tax 550
Purchase less returns
Sales less returns
11,850 Drawings 650
24,900 | Capital 5,000
Trade expenses 20 Bills payable
500
Bills receivable
600 Loan 900
Rent 200 Discount on purchases 400
Plant 2,000 creditors 2330
Bad debts
500

Define Reserves. State any three benefits of creating Reserves. 3

Or
Define Provisions. Mention three main importance of creatinga
provision?
28 Prepare Trading account form the following particulars for the year ended 31st March, 2023. 3
Particulars () Particulars (R)
Stock on 1st April, 2022 2,50,000 Wages 2,06,000
Return Outwards 22.000 Carriage inward 34,000
Purchases 7,00,000 Factory lighting 96,000
Return Inwards 36,000 Carriage outward 20,000
Sales 18,00,000 Office lighting 5,000
Gas, Fuel and Power 75,000 Manufacturing expenses 2,48,000
Closing stock is valued at 6,00,000.

Show the accounting equation on the basis of the following transactions: 4

(A) Started business with cash R60,000 and Goods *3,00,000 and creditors 80,000
(B)Goods costing 48,000 sold at a profit of 33%. Three-fourth payment received in Cash.
(C) Goods costing 20,000 sold at a loss of 5% out of which 12,000 received in Cash
(D) Paid rent 4,000 including 1500 as advance
Prepare Iwo Column Cash Book for
the following
lanuary transactions
2023
01 Started business with cash
05 30,000
Deposited into bank 5,00X)
08 Cheque receved from Subash 3,000
12 Subash's chegue deposited into bank
17 Bought goods through cheque 2000
20 Rent received
300
24 Cash drawn for personal use
1000

Prepare Bank Reconciliation Statement as on 31st March, 2022 trom the following transactions
0Balance as per Bank Pass Book (Dt) Rs 12.000 as on 31st March, 2022.
(n) On 28th March, 2022 cheques had been issued for 70,000 of which cheques of 50,000 only had been
debited up to 31st March, 2022.
()) Cheques of Rs 35,000 had been deposited into the bank for collection but out of these cheques of Ks 3,000
had been credited in the Bank Pass Book
(iv) The bank had charged Rs 500 as interest on overdraft and the intimation of which was received on 2nd
April, 2022.
30 Answer the following 6
4. Deepak had been charging the depreciation on the fixed assets of his business by reducing balance
method for two consecutive years but in the current year he changed the method to straight line to
reduce the tax liability. Identify the accounting concept violated by Deepak and give any one adverse
effect of such condition.
t. Electricity Bill for the month of March 2021 is not paid, yet it will be recorded in the books in the books.
Identify and explain the accounting concept being followed here.
c. Classification of liabilities into Current Liabilities and Non-current liabilities is based on which accounting
concept. Give one more example of the identified concept.
Journalize the following transactions of M/s Gupta &Sons of Delhi 6
a. Started business with Machinery I0,00; Cash 5000 and Goods R10,000
b. Sold goods costing R10,000 to Mohan Kolkata issued invoice at 10% above cost less 59% trade discount. Half of
which is received by cheque.
c. Paid wages in cash for installation of machinery 2,000
d. Rent due to landlord 5,000
e. Depreciation on machinery 500
f. Goods stolen (cost price S,000) Sale Price 9,000

Jouranlise the following transactions in the books of Harpreet Bros.:

(a) Rs.1,000 due from Rohit are now bad debts.
(b) Goods worth Rs.2,000 were used by the proprietor.
(c) Charge depreciation @ 10% p.a for two month on machine costing Rs.30,000,
(d) Provide interest on capital of Rs. 1,50,000 at 6% p.a. for 9 months.
(e) Rahul become insolvent, who owed is Rs. 2,000a final dividend of 60 paise in a rupee is received from his
estate.

32
Dinesh Mills purchased machinery on 1st August 2020 for 90,000. On 1st October, 2021 it purchased another 6
machine for 40,000,On 30th June, 2022 it sold off the first machine purchased in 2020 for 58,000 and on the
same date purchased a new machinery for R1,00,000.Depreciation is provided at 20% p.a. on the original cost
each year. Accounts are closed each year on 31st March. Show the Machinery Account for three years.
Or
The following balances appeared in the books of Ambani Limited as on 1 st April 2023:
Machinery account R10,00,000
Provision for depreciation account R4,50,000
The machinery was depreciated at 10% per annum on original cost method. On 1st October2023, a machine
which was purchased on 1st December 2020 for R1,20,000 was sold for R34,000.
Prepare machinery account and provision for depreciation account for the year 2023-24
Rectify tthe following errors
(a) Wages paid for the
(b) The sale book was constructionof office
debited to wages account Rs. 20,000
undercast
(c) Goods of the value of by Rs 500
Rs 2,000 and posted
therefrom the credit of his account by Verma were enitered in the sales book
to retutned
(d) Sale of old
What are furniture Rs.5,000 was treated as sales of goods
compensating errors?
qure lo prepare trading and profit and loss account for the year
balance sheet on that date ended 31st March 2025 and d
Name of accounts
Debit Credit
Capital
50,000
|DrawingS
|10,000
Debtors and creditors
24,000 16,000
Bank loan
10,000
Interest on loan
B00
Cash
3,000
Provision for bad debts
1,000
Wages 6,000
Stock on 1.4.202 16,700
Computer 10,000
Bank
7,500
Furniture 20,000
Carriage outward 4,500
Carriage inward
5,000
Salaries 12,000
Rent 8,000
Bad debts 600

Purchases and sales 60,000 116000

|Returns |2,000 1,000

Advertising 4,500
Discount 2,500

Insurance |2,000
Bills receivables and bills payables |10,000 8,000

Commission 1,500
206100 206,100

Adjustments:
a) Depreciate furniture by 5% and computer by 10%.
b) Salaries outstanding Rs.1, 200.
c) Insurance premium is paid for the period ending 30th June 2023.
d) Provision for Bad debts is to be maintained at 5% on debtors.
e) Stock on 31st March 2023 was valued at Rs.19, 400.