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Page 1
CBSE XI | Accountancy
Sample Paper – 1
CBSE
Class XI Accountancy
Sample Paper – 1
Part A
Answer 1
While preparing the trial balance by balance method, accounts having no balance are not
considered.
Answer 2
Option B: Drawings A/c Dr. 1, 50,000
To Office Expenses A/c 1, 50,000
Answer 3
Option B: `40, 000
Answer 4
Posting is the process of transferring entries from the journal to their respective accounts
in the ledger.
Answer: 5
Option A: An Event
Answer: 6
Option C: Inflation Accounting
Answer: 7
Rules of debit and credit same for liability and capital because of business entity concept.
According to the concept, business is a separate and distinct entity from its owner.
Answer: 8
Option C: Comparability
Answer: 9
Option A: Profit of `3, 700.
Page 2
CBSE XI | Accountancy
Sample Paper – 1
CBSE
Class XI Accountancy
Sample Paper – 1
Part A
Answer 1
While preparing the trial balance by balance method, accounts having no balance are not
considered.
Answer 2
Option B: Drawings A/c Dr. 1, 50,000
To Office Expenses A/c 1, 50,000
Answer 3
Option B: `40, 000
Answer 4
Posting is the process of transferring entries from the journal to their respective accounts
in the ledger.
Answer: 5
Option A: An Event
Answer: 6
Option C: Inflation Accounting
Answer: 7
Rules of debit and credit same for liability and capital because of business entity concept.
According to the concept, business is a separate and distinct entity from its owner.
Answer: 8
Option C: Comparability
Answer: 9
Option A: Profit of `3, 700.
CBSE XI | Accountancy
Sample Paper – 1
Answer: 10
Credit note is a document evidencing for the credit granted to the named person for the
reason stated therein.
Answer 11
Option B: Errors of Principle
Answer 12
Trial balance is a statement which is prepared with the debit and credit balances of the
ledger accounts to check the arithmetic accuracy of the books. It can be prepared on any
date. While preparing trial balance all accounts are considered. These ledger accounts
except cash and bank balances are taken from the ledger.
Answer 13
Option B: Salaries A/c Dr. 15,000
To X’s A/c 15,000
Answer 14
Profit = Closing Capital + Drawing – Opening Capital - Capital Introduced
= 5, 00,000 + 3, 75,000 - 7, 50,000 – 50,000
= 75,000
(OR)
i. Capital: It is the amount invested by the proprietor in a business. If the business earns
profit or invests additional amount, the amount of capital increases in the
business. On the other hand, if the business incurs losses or withdraws the amount
invested, the amount of capital decreases.
ii. Drawings: It is the amount of cash or goods withdrawn from the business by the
proprietor for personal use.
iii. Account: It is a record of transactions (cash or credit) maintained under a particular
head which shows the transactions and the effect of such transactions in the books of
accounts.
Answer 15
According to historical cost principle, all assets are recorded in the books of accounts at the
purchase price which includes the purchase price, cost of acquisition and installation. The
purchase price will remain same for all further accounting even though there is change in
the market value. For example, a machine is purchased for ` 250,000, its acquisition cost is
` 10,000, transportation cost is ` 5000 and the installation cost is ` 12,000. Hence, the cost
of machine will be entered in the books of accounts as ` 277,000. If the market value of
machine is increased to ` 300,000, this change in the cost will not be reflected in the books
of accounts. It does not maintain the true value of machine.
Page 3
CBSE XI | Accountancy
Sample Paper – 1
CBSE
Class XI Accountancy
Sample Paper – 1
Part A
Answer 1
While preparing the trial balance by balance method, accounts having no balance are not
considered.
Answer 2
Option B: Drawings A/c Dr. 1, 50,000
To Office Expenses A/c 1, 50,000
Answer 3
Option B: `40, 000
Answer 4
Posting is the process of transferring entries from the journal to their respective accounts
in the ledger.
Answer: 5
Option A: An Event
Answer: 6
Option C: Inflation Accounting
Answer: 7
Rules of debit and credit same for liability and capital because of business entity concept.
According to the concept, business is a separate and distinct entity from its owner.
Answer: 8
Option C: Comparability
Answer: 9
Option A: Profit of `3, 700.
CBSE XI | Accountancy
Sample Paper – 1
Answer: 10
Credit note is a document evidencing for the credit granted to the named person for the
reason stated therein.
Answer 11
Option B: Errors of Principle
Answer 12
Trial balance is a statement which is prepared with the debit and credit balances of the
ledger accounts to check the arithmetic accuracy of the books. It can be prepared on any
date. While preparing trial balance all accounts are considered. These ledger accounts
except cash and bank balances are taken from the ledger.
Answer 13
Option B: Salaries A/c Dr. 15,000
To X’s A/c 15,000
Answer 14
Profit = Closing Capital + Drawing – Opening Capital - Capital Introduced
= 5, 00,000 + 3, 75,000 - 7, 50,000 – 50,000
= 75,000
(OR)
i. Capital: It is the amount invested by the proprietor in a business. If the business earns
profit or invests additional amount, the amount of capital increases in the
business. On the other hand, if the business incurs losses or withdraws the amount
invested, the amount of capital decreases.
ii. Drawings: It is the amount of cash or goods withdrawn from the business by the
proprietor for personal use.
iii. Account: It is a record of transactions (cash or credit) maintained under a particular
head which shows the transactions and the effect of such transactions in the books of
accounts.
Answer 15
According to historical cost principle, all assets are recorded in the books of accounts at the
purchase price which includes the purchase price, cost of acquisition and installation. The
purchase price will remain same for all further accounting even though there is change in
the market value. For example, a machine is purchased for ` 250,000, its acquisition cost is
` 10,000, transportation cost is ` 5000 and the installation cost is ` 12,000. Hence, the cost
of machine will be entered in the books of accounts as ` 277,000. If the market value of
machine is increased to ` 300,000, this change in the cost will not be reflected in the books
of accounts. It does not maintain the true value of machine.
CBSE XI | Accountancy
Sample Paper – 1
According to consistency assumption of accounting, accounting policies and practices
followed by an enterprise should be uniform and consistent over a period of time. For
example, if an enterprise followed different methods in two years for depreciation of its
assets, then the financial information will not be comparable. Hence, the personal bias gets
eliminate through the practice of consistency. However, consistency does allow changes in
accounting policies but it should be disclosed.
Answer 16
Journal
In the Books of ……….
Particulars L.F. Dr. ` Cr. `
Cash A/c Dr. 6,000
Bad debts A/c Dr. 4,000
To Vinod A/c 10,000
(Being 60 paise in rupee received from Mr. Vinod out
of a debt of `10,000)
Vinod A/c Dr. 7,500
To Cash A/c 7,300
To Discount Received A/c 200
(Being the cash paid to Vinod after receiving discount
of `200)
Cash A/c Dr. 500
To Bad Debts Recovered A/c 500
(Being the amount earlier written off as bad debt
now received)
(OR)
Accrual Basis of Accounting:
i. Under this system of accounting, income is recorded as income when it is earned or
accrued and expense will be recorded as an expense when the expense is incurred
even if the payment has not been made.
ii. This system is based on the concept of realisation and expiration and follows two basic
accounting principles namely, Revenue Recognition and Matching Principle.
iii. Under this system, outstanding and prepaid expenses and incomes are to be adjusted
in order to ascertain the correct profit or loss for the accounting period.
iv. It is considered as an important basis of accounting because as per the Companies Act,
2013 companies are required to follow this basis of accounting in maintaining their
books of account.
Page 4
CBSE XI | Accountancy
Sample Paper – 1
CBSE
Class XI Accountancy
Sample Paper – 1
Part A
Answer 1
While preparing the trial balance by balance method, accounts having no balance are not
considered.
Answer 2
Option B: Drawings A/c Dr. 1, 50,000
To Office Expenses A/c 1, 50,000
Answer 3
Option B: `40, 000
Answer 4
Posting is the process of transferring entries from the journal to their respective accounts
in the ledger.
Answer: 5
Option A: An Event
Answer: 6
Option C: Inflation Accounting
Answer: 7
Rules of debit and credit same for liability and capital because of business entity concept.
According to the concept, business is a separate and distinct entity from its owner.
Answer: 8
Option C: Comparability
Answer: 9
Option A: Profit of `3, 700.
CBSE XI | Accountancy
Sample Paper – 1
Answer: 10
Credit note is a document evidencing for the credit granted to the named person for the
reason stated therein.
Answer 11
Option B: Errors of Principle
Answer 12
Trial balance is a statement which is prepared with the debit and credit balances of the
ledger accounts to check the arithmetic accuracy of the books. It can be prepared on any
date. While preparing trial balance all accounts are considered. These ledger accounts
except cash and bank balances are taken from the ledger.
Answer 13
Option B: Salaries A/c Dr. 15,000
To X’s A/c 15,000
Answer 14
Profit = Closing Capital + Drawing – Opening Capital - Capital Introduced
= 5, 00,000 + 3, 75,000 - 7, 50,000 – 50,000
= 75,000
(OR)
i. Capital: It is the amount invested by the proprietor in a business. If the business earns
profit or invests additional amount, the amount of capital increases in the
business. On the other hand, if the business incurs losses or withdraws the amount
invested, the amount of capital decreases.
ii. Drawings: It is the amount of cash or goods withdrawn from the business by the
proprietor for personal use.
iii. Account: It is a record of transactions (cash or credit) maintained under a particular
head which shows the transactions and the effect of such transactions in the books of
accounts.
Answer 15
According to historical cost principle, all assets are recorded in the books of accounts at the
purchase price which includes the purchase price, cost of acquisition and installation. The
purchase price will remain same for all further accounting even though there is change in
the market value. For example, a machine is purchased for ` 250,000, its acquisition cost is
` 10,000, transportation cost is ` 5000 and the installation cost is ` 12,000. Hence, the cost
of machine will be entered in the books of accounts as ` 277,000. If the market value of
machine is increased to ` 300,000, this change in the cost will not be reflected in the books
of accounts. It does not maintain the true value of machine.
CBSE XI | Accountancy
Sample Paper – 1
According to consistency assumption of accounting, accounting policies and practices
followed by an enterprise should be uniform and consistent over a period of time. For
example, if an enterprise followed different methods in two years for depreciation of its
assets, then the financial information will not be comparable. Hence, the personal bias gets
eliminate through the practice of consistency. However, consistency does allow changes in
accounting policies but it should be disclosed.
Answer 16
Journal
In the Books of ……….
Particulars L.F. Dr. ` Cr. `
Cash A/c Dr. 6,000
Bad debts A/c Dr. 4,000
To Vinod A/c 10,000
(Being 60 paise in rupee received from Mr. Vinod out
of a debt of `10,000)
Vinod A/c Dr. 7,500
To Cash A/c 7,300
To Discount Received A/c 200
(Being the cash paid to Vinod after receiving discount
of `200)
Cash A/c Dr. 500
To Bad Debts Recovered A/c 500
(Being the amount earlier written off as bad debt
now received)
(OR)
Accrual Basis of Accounting:
i. Under this system of accounting, income is recorded as income when it is earned or
accrued and expense will be recorded as an expense when the expense is incurred
even if the payment has not been made.
ii. This system is based on the concept of realisation and expiration and follows two basic
accounting principles namely, Revenue Recognition and Matching Principle.
iii. Under this system, outstanding and prepaid expenses and incomes are to be adjusted
in order to ascertain the correct profit or loss for the accounting period.
iv. It is considered as an important basis of accounting because as per the Companies Act,
2013 companies are required to follow this basis of accounting in maintaining their
books of account.
CBSE XI | Accountancy
Sample Paper – 1
Answer 17
Trial Balance on ………….
Heads of Accounts L.F. Dr. Balance
`
Cr. Balance
`
Prepaid Expense 5,000
Profit and Loss A/c (Profit) 8,000
Outstanding Rent 2,000
Bad Debts Recovered 4,000
Interest on Investment 1,000
Due to Mohan 5,000
Bank overdraft 2,000
Discount Allowed 800
Due from Vinod 1,200
Investment 15,000
Patents 4,000
Machinery 6,000
Capital 10,000
Total 32,000 32,000
Answer 18
A’s Journal
Particulars L.F. Dr. ` Cr. `
B A/c Dr. 4,000
To Sales A/c 4,000
(Being the goods sold on credit)
Bills Receivable A/c Dr. 4,000
To B A/c 4,000
(Being the acceptance received)
Bank A/c Dr. 3,900
Discounting charges A/c Dr. 100
To Bills Receivable A/c 4,000
(Being the bill discounted)
B’s A/c Dr. 4,050
To Bank A/c 4,050
(Being the bill dishonoured and noting charges
`50 paid by bank)
Page 5
CBSE XI | Accountancy
Sample Paper – 1
CBSE
Class XI Accountancy
Sample Paper – 1
Part A
Answer 1
While preparing the trial balance by balance method, accounts having no balance are not
considered.
Answer 2
Option B: Drawings A/c Dr. 1, 50,000
To Office Expenses A/c 1, 50,000
Answer 3
Option B: `40, 000
Answer 4
Posting is the process of transferring entries from the journal to their respective accounts
in the ledger.
Answer: 5
Option A: An Event
Answer: 6
Option C: Inflation Accounting
Answer: 7
Rules of debit and credit same for liability and capital because of business entity concept.
According to the concept, business is a separate and distinct entity from its owner.
Answer: 8
Option C: Comparability
Answer: 9
Option A: Profit of `3, 700.
CBSE XI | Accountancy
Sample Paper – 1
Answer: 10
Credit note is a document evidencing for the credit granted to the named person for the
reason stated therein.
Answer 11
Option B: Errors of Principle
Answer 12
Trial balance is a statement which is prepared with the debit and credit balances of the
ledger accounts to check the arithmetic accuracy of the books. It can be prepared on any
date. While preparing trial balance all accounts are considered. These ledger accounts
except cash and bank balances are taken from the ledger.
Answer 13
Option B: Salaries A/c Dr. 15,000
To X’s A/c 15,000
Answer 14
Profit = Closing Capital + Drawing – Opening Capital - Capital Introduced
= 5, 00,000 + 3, 75,000 - 7, 50,000 – 50,000
= 75,000
(OR)
i. Capital: It is the amount invested by the proprietor in a business. If the business earns
profit or invests additional amount, the amount of capital increases in the
business. On the other hand, if the business incurs losses or withdraws the amount
invested, the amount of capital decreases.
ii. Drawings: It is the amount of cash or goods withdrawn from the business by the
proprietor for personal use.
iii. Account: It is a record of transactions (cash or credit) maintained under a particular
head which shows the transactions and the effect of such transactions in the books of
accounts.
Answer 15
According to historical cost principle, all assets are recorded in the books of accounts at the
purchase price which includes the purchase price, cost of acquisition and installation. The
purchase price will remain same for all further accounting even though there is change in
the market value. For example, a machine is purchased for ` 250,000, its acquisition cost is
` 10,000, transportation cost is ` 5000 and the installation cost is ` 12,000. Hence, the cost
of machine will be entered in the books of accounts as ` 277,000. If the market value of
machine is increased to ` 300,000, this change in the cost will not be reflected in the books
of accounts. It does not maintain the true value of machine.
CBSE XI | Accountancy
Sample Paper – 1
According to consistency assumption of accounting, accounting policies and practices
followed by an enterprise should be uniform and consistent over a period of time. For
example, if an enterprise followed different methods in two years for depreciation of its
assets, then the financial information will not be comparable. Hence, the personal bias gets
eliminate through the practice of consistency. However, consistency does allow changes in
accounting policies but it should be disclosed.
Answer 16
Journal
In the Books of ……….
Particulars L.F. Dr. ` Cr. `
Cash A/c Dr. 6,000
Bad debts A/c Dr. 4,000
To Vinod A/c 10,000
(Being 60 paise in rupee received from Mr. Vinod out
of a debt of `10,000)
Vinod A/c Dr. 7,500
To Cash A/c 7,300
To Discount Received A/c 200
(Being the cash paid to Vinod after receiving discount
of `200)
Cash A/c Dr. 500
To Bad Debts Recovered A/c 500
(Being the amount earlier written off as bad debt
now received)
(OR)
Accrual Basis of Accounting:
i. Under this system of accounting, income is recorded as income when it is earned or
accrued and expense will be recorded as an expense when the expense is incurred
even if the payment has not been made.
ii. This system is based on the concept of realisation and expiration and follows two basic
accounting principles namely, Revenue Recognition and Matching Principle.
iii. Under this system, outstanding and prepaid expenses and incomes are to be adjusted
in order to ascertain the correct profit or loss for the accounting period.
iv. It is considered as an important basis of accounting because as per the Companies Act,
2013 companies are required to follow this basis of accounting in maintaining their
books of account.
CBSE XI | Accountancy
Sample Paper – 1
Answer 17
Trial Balance on ………….
Heads of Accounts L.F. Dr. Balance
`
Cr. Balance
`
Prepaid Expense 5,000
Profit and Loss A/c (Profit) 8,000
Outstanding Rent 2,000
Bad Debts Recovered 4,000
Interest on Investment 1,000
Due to Mohan 5,000
Bank overdraft 2,000
Discount Allowed 800
Due from Vinod 1,200
Investment 15,000
Patents 4,000
Machinery 6,000
Capital 10,000
Total 32,000 32,000
Answer 18
A’s Journal
Particulars L.F. Dr. ` Cr. `
B A/c Dr. 4,000
To Sales A/c 4,000
(Being the goods sold on credit)
Bills Receivable A/c Dr. 4,000
To B A/c 4,000
(Being the acceptance received)
Bank A/c Dr. 3,900
Discounting charges A/c Dr. 100
To Bills Receivable A/c 4,000
(Being the bill discounted)
B’s A/c Dr. 4,050
To Bank A/c 4,050
(Being the bill dishonoured and noting charges
`50 paid by bank)
CBSE XI | Accountancy
Sample Paper – 1
Answer 19
In the Books of Harsh Traders
Cash Book (Simple)
Dr. Cr.
Date Particulars V.
No.
L.F. Cash
`
Date Particulars V.
No.
L.F. Cash
`
2015 2015
Jan 1 To Balance b/d 20,000 Jan 6 By Machinery A/c 8,000
Jan 3 To Raj A/c
5,000 Jan 9
By Insurance
Premium A/c
2,500
Jan 12 To Sales A/c
10,000 Jan 15
By Postal stamps
A/c
500
Jan 13 To Commission A/c 2,000 Jan 18 By Purchases A/c 1,600
Jan 28 To Furniture A/c 3,000 Jan 23 By Paras A/c 3,000
Jan 26 By Rent A/c 4,500
Jan 29 By Bank A/c 1,800
Jan 31 By Salary A/c 6,000
Jan 31 By Balance c/d 12,100
40,000 40,000
Feb 1 To Balance b/d 12,100
(OR)
Sr.
no.
Basis Provisions Reserves
1 Meaning It is a diminution of value of
assets and hence, is a liability.
It is a part of profits that is
retained by the company and not
distributed to the shareholders.
2 Purpose It is created for specific
purposes like depreciation,
expenses, etc.
It may either be created for a
specific purpose or for a general
purpose.
3 Charge vs.
Appropriation
It is a charge against the profit
and therefore, reduces amount
of profit.
It is an appropriation out of
profits and therefore, can be
created only when there is profit.
4 Disclosure in
the Income
Statement
It is shown in the Income
Statement under expenses.
It is not shown in the Income
Statement.
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FAQs on Sample Solution Paper 1 - Accountancy, Class 11 - Sample Papers for Class 11 Commerce
| 1. What is the role of accountancy in business? |  |
Ans. Accountancy plays a crucial role in business as it involves recording, analyzing, and interpreting financial transactions. It helps businesses keep track of their income, expenses, assets, and liabilities. Accountancy also provides financial information that is essential for making informed decisions, budgeting, monitoring performance, and complying with legal and regulatory requirements.
| 2. What are the different branches of accounting? | |
Ans. There are several branches of accounting, including financial accounting, management accounting, cost accounting, tax accounting, and auditing. Financial accounting focuses on recording and reporting financial transactions, while management accounting involves providing financial information to internal users for decision-making purposes. Cost accounting deals with analyzing and controlling costs, tax accounting focuses on tax-related matters, and auditing involves examining financial records to ensure accuracy and compliance.
| 3. How does financial accounting differ from management accounting? | |
Ans. Financial accounting and management accounting differ in terms of their audience, purpose, and scope. Financial accounting primarily serves external stakeholders, such as investors, creditors, and regulatory authorities, by providing them with financial statements that disclose the financial position, performance, and cash flows of a business. On the other hand, management accounting serves internal stakeholders, such as managers and executives, by providing them with information for planning, controlling, and decision-making within the organization.
| 4. What are the key principles of accounting? | |
Ans. The key principles of accounting include the principles of monetary unit, historical cost, matching, materiality, consistency, conservatism, full disclosure, and going concern. The monetary unit principle states that financial transactions should be expressed in a common monetary unit, such as the local currency. The historical cost principle requires assets and liabilities to be recorded at their original cost. The matching principle ensures that expenses are recognized in the same period as the related revenues. The materiality principle states that insignificant information can be omitted. The consistency principle requires businesses to apply the same accounting methods and principles consistently. The conservatism principle suggests that uncertainties should be addressed by recognizing potential losses rather than potential gains. The full disclosure principle requires businesses to provide all relevant and reliable information in their financial statements. The going concern principle assumes that a business will continue to operate indefinitely unless there is evidence to the contrary.
| 5. What is the purpose of an audit in accounting? | |
Ans. The purpose of an audit in accounting is to provide an independent and objective examination of a company's financial statements and underlying records. The audit aims to determine whether the financial statements are presented fairly and accurately in accordance with the applicable accounting standards and regulatory requirements. It involves assessing the internal controls and risk management processes of the business, testing the accuracy and completeness of financial transactions, and providing an opinion on the reliability of the financial statements. An audit enhances the credibility and reliability of financial information, which is crucial for external stakeholders, such as investors, creditors, and government agencies, in making informed decisions.
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