Class 11 Accountancy Previous Year Paper -1 | Accountancy Class 11 - Commerce PDF Download

 Page 1


      
Date:                        Class: XI 
Accountancy  
Time:3 hrs                                 M. M: 100 
General Instructions: 
1. All questions are compulsory 
2. Marks for each question are indicated against it.             
3. Attempt all parts of a question together. 
 
1 Which basis of accounting is recognized under the Companies Act, 1956? 
 
1 
2 What is meant by a ‘Trial Balance’? 
 
1 
3 Give two examples of revenue expenditure. 
 
1 
4 Proprietor of a firm has taken goods for his personal use. The accountant has accounted it as 
sale in the books of accounts. Is he correct in his accounting? 
 
1 
5 Distinguish between Cash Basis of Accounting and Accrual Basis of Accounting on the basis 
of ‘reliability’ and ‘suitability’. 
 
2 
6 Total of Sales Book is posted to the credit side of the Sales Account in the General Ledger 
while individual account of customers is debited by the amount of their respective purchases. 
Is the above statement correct? Give reasons. 
 
2 
7 Explain any three objectives of Accounting. 
 
3 
8 (i) Mention any one difference between journal and ledger. 
(ii) Mohan & Co. sold goods amounting to Rs.50,000 at a trade discount of 5% to 
GSC Co. As per the terms, if GSC Co. made full payment to Mohan & Co. within 
15 days it will get Cash discount of 2%. GSC Co. paid the full amount within the 
stipulated time. Determine the amount of Cash discount that GSC Co. may get. 
Also pass a journal entry to record this transaction in the books of Mohan & Co. 
 
1+2 
9 X started a business on 1
st
 April, 2012 with a capital of Rs. 50,000 and a loan of Rs. 25,000 
borrowed from Y. During 2012 – 13, he had introduced additional capital of Rs. 25,000 and 
had withdrawn Rs. 15,000 for personal use. On 31
st
 March, 2013 his assets were Rs. 
1,50,000. Calculate his closing capital as on 31
st
 March, 2013 and profit made or loss 
incurred  during the year 2012 – 13. 
3 
10 If the accounting information is not clearly presented, which of the qualitative characteristic 
of the accounting information is violated? Name and explain it.  
Also explain any other two qualitative characteristics of the accounting information. 
 
3 
11 Due to a major loss in the current year, the accountant of the firm has not charged 
depreciation on fixed tangible assets. Whether his decision not to charge depreciation is 
correct? 
What will be the impact of the decision on financial statements?  
 
 
3 
12 a. Give an example for a transaction which results in : 1 + 2 
Page 2


      
Date:                        Class: XI 
Accountancy  
Time:3 hrs                                 M. M: 100 
General Instructions: 
1. All questions are compulsory 
2. Marks for each question are indicated against it.             
3. Attempt all parts of a question together. 
 
1 Which basis of accounting is recognized under the Companies Act, 1956? 
 
1 
2 What is meant by a ‘Trial Balance’? 
 
1 
3 Give two examples of revenue expenditure. 
 
1 
4 Proprietor of a firm has taken goods for his personal use. The accountant has accounted it as 
sale in the books of accounts. Is he correct in his accounting? 
 
1 
5 Distinguish between Cash Basis of Accounting and Accrual Basis of Accounting on the basis 
of ‘reliability’ and ‘suitability’. 
 
2 
6 Total of Sales Book is posted to the credit side of the Sales Account in the General Ledger 
while individual account of customers is debited by the amount of their respective purchases. 
Is the above statement correct? Give reasons. 
 
2 
7 Explain any three objectives of Accounting. 
 
3 
8 (i) Mention any one difference between journal and ledger. 
(ii) Mohan & Co. sold goods amounting to Rs.50,000 at a trade discount of 5% to 
GSC Co. As per the terms, if GSC Co. made full payment to Mohan & Co. within 
15 days it will get Cash discount of 2%. GSC Co. paid the full amount within the 
stipulated time. Determine the amount of Cash discount that GSC Co. may get. 
Also pass a journal entry to record this transaction in the books of Mohan & Co. 
 
1+2 
9 X started a business on 1
st
 April, 2012 with a capital of Rs. 50,000 and a loan of Rs. 25,000 
borrowed from Y. During 2012 – 13, he had introduced additional capital of Rs. 25,000 and 
had withdrawn Rs. 15,000 for personal use. On 31
st
 March, 2013 his assets were Rs. 
1,50,000. Calculate his closing capital as on 31
st
 March, 2013 and profit made or loss 
incurred  during the year 2012 – 13. 
3 
10 If the accounting information is not clearly presented, which of the qualitative characteristic 
of the accounting information is violated? Name and explain it.  
Also explain any other two qualitative characteristics of the accounting information. 
 
3 
11 Due to a major loss in the current year, the accountant of the firm has not charged 
depreciation on fixed tangible assets. Whether his decision not to charge depreciation is 
correct? 
What will be the impact of the decision on financial statements?  
 
 
3 
12 a. Give an example for a transaction which results in : 1 + 2 
      Increase in one liability, decrease in another liability. 
b. Pass journal entries for the following: 
    Goods destroyed by fire Rs.70,000; Insurance Co. admitted and paid claim for    
40% amount. 
13 
 
(i) Why are the rules of debit and credit same for liability and capital? 
(ii) Classify the following as per Modern or Traditional classification of accounts: 
a. Patents                  b. Bank Overdraft                      c. Prepaid Insurance 
d.   Purchases              e. Freight                                   f. Premises 
 
1+3 
14 a. Shri Madan , a businessman has employed Shri Sujit and has estimated his value at 
Rs.10,00,000. He has accounted it as an asset in the books of accounts. Is he correct in 
doing so? 
b. Cash book is both a subsidiary book and a principal book. Explain.   
 
4 
15 (i) Distinguish between Loss and Expense. 
(ii) Distinguish between non - current assets and current assets by giving two 
examples of each. 
 
2+2 
16 (i) What is meant by Imprest System of Petty Cash? 
(ii) Mention the subsidiary books in which following transactions are recorded along 
with reasons thereof: 
a. Purchase of furniture on credit for use in shop 
b. Defective goods sold to Babita on credit for Rs.4,000 were returned by her. 
 
2 + 2 
17 Explain the following Source Documents: 
(i) Invoice 
(ii) Pay – in – slip 
 
4 
18 Prove the accounting equation in the following transactions:- 
(i) Started business with cash Rs. 1,00,000, goods Rs.12,000 and a computer Rs. 
30,000. 
(ii) 1/3 rd of the above goods sold at a profit of 10% on cost. 
(iii) Purchased goods on credit Rs.16,000. 
(iv) Paid to creditor in full settlement Rs. 15,250. 
(v) Wages outstanding Rs.2,600. 
6 
19 Prepare a trial balance from the following information:  
          Heads of accounts       Rs. 
Opening Stock                                                 20,000 
Cash A/c                                                          61,000   
Capital A/c     99,620 
Purchases A/c     85,000 
Sales A/c             1,60,000 
Rent A/c       6,900 
Discount  allowed                                                710 
Sales Returns A/c                 6,200 
Plant & Machinery A/c   68,000 
Debtors A/c     36,000 
Creditors A/c                                                   12,750 
            Commission received                                        1,440 
6 
 
 
20 
 
 
Pass journal entries: 
(i) Wood used for making office furniture Rs. 3,000. 
 
 
6 
Page 3


      
Date:                        Class: XI 
Accountancy  
Time:3 hrs                                 M. M: 100 
General Instructions: 
1. All questions are compulsory 
2. Marks for each question are indicated against it.             
3. Attempt all parts of a question together. 
 
1 Which basis of accounting is recognized under the Companies Act, 1956? 
 
1 
2 What is meant by a ‘Trial Balance’? 
 
1 
3 Give two examples of revenue expenditure. 
 
1 
4 Proprietor of a firm has taken goods for his personal use. The accountant has accounted it as 
sale in the books of accounts. Is he correct in his accounting? 
 
1 
5 Distinguish between Cash Basis of Accounting and Accrual Basis of Accounting on the basis 
of ‘reliability’ and ‘suitability’. 
 
2 
6 Total of Sales Book is posted to the credit side of the Sales Account in the General Ledger 
while individual account of customers is debited by the amount of their respective purchases. 
Is the above statement correct? Give reasons. 
 
2 
7 Explain any three objectives of Accounting. 
 
3 
8 (i) Mention any one difference between journal and ledger. 
(ii) Mohan & Co. sold goods amounting to Rs.50,000 at a trade discount of 5% to 
GSC Co. As per the terms, if GSC Co. made full payment to Mohan & Co. within 
15 days it will get Cash discount of 2%. GSC Co. paid the full amount within the 
stipulated time. Determine the amount of Cash discount that GSC Co. may get. 
Also pass a journal entry to record this transaction in the books of Mohan & Co. 
 
1+2 
9 X started a business on 1
st
 April, 2012 with a capital of Rs. 50,000 and a loan of Rs. 25,000 
borrowed from Y. During 2012 – 13, he had introduced additional capital of Rs. 25,000 and 
had withdrawn Rs. 15,000 for personal use. On 31
st
 March, 2013 his assets were Rs. 
1,50,000. Calculate his closing capital as on 31
st
 March, 2013 and profit made or loss 
incurred  during the year 2012 – 13. 
3 
10 If the accounting information is not clearly presented, which of the qualitative characteristic 
of the accounting information is violated? Name and explain it.  
Also explain any other two qualitative characteristics of the accounting information. 
 
3 
11 Due to a major loss in the current year, the accountant of the firm has not charged 
depreciation on fixed tangible assets. Whether his decision not to charge depreciation is 
correct? 
What will be the impact of the decision on financial statements?  
 
 
3 
12 a. Give an example for a transaction which results in : 1 + 2 
      Increase in one liability, decrease in another liability. 
b. Pass journal entries for the following: 
    Goods destroyed by fire Rs.70,000; Insurance Co. admitted and paid claim for    
40% amount. 
13 
 
(i) Why are the rules of debit and credit same for liability and capital? 
(ii) Classify the following as per Modern or Traditional classification of accounts: 
a. Patents                  b. Bank Overdraft                      c. Prepaid Insurance 
d.   Purchases              e. Freight                                   f. Premises 
 
1+3 
14 a. Shri Madan , a businessman has employed Shri Sujit and has estimated his value at 
Rs.10,00,000. He has accounted it as an asset in the books of accounts. Is he correct in 
doing so? 
b. Cash book is both a subsidiary book and a principal book. Explain.   
 
4 
15 (i) Distinguish between Loss and Expense. 
(ii) Distinguish between non - current assets and current assets by giving two 
examples of each. 
 
2+2 
16 (i) What is meant by Imprest System of Petty Cash? 
(ii) Mention the subsidiary books in which following transactions are recorded along 
with reasons thereof: 
a. Purchase of furniture on credit for use in shop 
b. Defective goods sold to Babita on credit for Rs.4,000 were returned by her. 
 
2 + 2 
17 Explain the following Source Documents: 
(i) Invoice 
(ii) Pay – in – slip 
 
4 
18 Prove the accounting equation in the following transactions:- 
(i) Started business with cash Rs. 1,00,000, goods Rs.12,000 and a computer Rs. 
30,000. 
(ii) 1/3 rd of the above goods sold at a profit of 10% on cost. 
(iii) Purchased goods on credit Rs.16,000. 
(iv) Paid to creditor in full settlement Rs. 15,250. 
(v) Wages outstanding Rs.2,600. 
6 
19 Prepare a trial balance from the following information:  
          Heads of accounts       Rs. 
Opening Stock                                                 20,000 
Cash A/c                                                          61,000   
Capital A/c     99,620 
Purchases A/c     85,000 
Sales A/c             1,60,000 
Rent A/c       6,900 
Discount  allowed                                                710 
Sales Returns A/c                 6,200 
Plant & Machinery A/c   68,000 
Debtors A/c     36,000 
Creditors A/c                                                   12,750 
            Commission received                                        1,440 
6 
 
 
20 
 
 
Pass journal entries: 
(i) Wood used for making office furniture Rs. 3,000. 
 
 
6 
(ii) Rs.8,000 recovered for a bad debt written off last year. 
(iii) An old machine with the book value of Rs.80,000 is exchanged for a new machine of 
Rs.2,40,000. The balance payment to be made to the supplier, Machine Tools Ltd. Is 
Rs.1,60,000. 
(iv) Paid landlord Rs.1,500 for rent. One – third of the premises is occupied by the 
proprietor for his own residence.  
(v) Goods distributed as free samples Rs.5,000 (Sales price Rs.6,000). 
(vi) Ram became insolvent. A first and final compensation of 75 p in a rupee received 
from his official receiver. He owed us a debt of Rs.25,000. 
 
21 From the following transactions prepare a triple column cash book : 
Apr  2012                                  Particulars 
1 Cash in hand Rs.6,500, and bank balance (Cr.) Rs.22,000 
2 Sold old furniture for cash Rs.3,500  
3 Capital introduced Rs.20,000 out of which Rs.16,000 is by 
cheque and is deposited in the bank. 
6 Received cheque from Rahul Rs.14,450 and allowed him 
discount Rs.550 
10 Rahul’s cheque was endorsed to Nitin  
15 Withdrew from bank for office use Rs.1,500  
18 Paid for stationery Rs.1,500 
25 Interest collected by bank Rs.625  
 
6 
 
 
 
 
 
 
 
 
 
 
 
 
 
22 Shri Rakesh has started his business of retail trade on October 1, 2012. He has employed two 
persons - one female accountant and another clerk, who is physically challenged to prepare 
books of accounts. He desires that the firm should do business forever and ever and for that 
they should prepare first Profit and Loss Account and Balance Sheet on March 31, 2013 and 
thereafter every year on March 31. You have to appraise his decision and ascertain whether 
his decision is justified? 
Which are the two concepts / principles of Accounting followed by him? Name and explain 
them. Also mention any two values followed by Shri Rakesh. 
 
6 
23 Enter the following transactions of Superior Cloth House in proper subsidiary books: 
 
2012  
April 4 Purchased from Radha Krishan & Sons: 
100 metre Cotton cloth @ Rs.40 per metre 
80 metre Woollen cloth @ Rs.80 per metre 
Trade Discount 20% ; Paid VAT @ 10% 
April 12 Raghubir Prasad & Co. purchased from us: 
80 metre Silk cloth @ Rs.100 per metre 
150 metre Cotton cloth @ Rs.50 per metre 
Trade Discount 15% ; Paid VAT @ 10% 
April 16 Purchased for cash from Hari Om & Sons: 
40 metre Silk cloth @ Rs.120 per metre 
April 18 Returned to Dass & Co. : 
15 metre Silk cloth @ Rs.90 per metre 
April 23 Purchased a computer printer on credit from M/s Jaiswal & Sons 
for Rs.14,000 
April 28 Kasim & Co. sold to us: 
200 metre Cotton cloth @ Rs.35 per metre; Paid VAT @10% 
Trade discount is 20% and freight charges are Rs.150 
 
 
 
8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24 a. Mention any two differences between Straight line method and Written Down Value 
Method of charging depreciation. 
2 + 6 
Page 4


      
Date:                        Class: XI 
Accountancy  
Time:3 hrs                                 M. M: 100 
General Instructions: 
1. All questions are compulsory 
2. Marks for each question are indicated against it.             
3. Attempt all parts of a question together. 
 
1 Which basis of accounting is recognized under the Companies Act, 1956? 
 
1 
2 What is meant by a ‘Trial Balance’? 
 
1 
3 Give two examples of revenue expenditure. 
 
1 
4 Proprietor of a firm has taken goods for his personal use. The accountant has accounted it as 
sale in the books of accounts. Is he correct in his accounting? 
 
1 
5 Distinguish between Cash Basis of Accounting and Accrual Basis of Accounting on the basis 
of ‘reliability’ and ‘suitability’. 
 
2 
6 Total of Sales Book is posted to the credit side of the Sales Account in the General Ledger 
while individual account of customers is debited by the amount of their respective purchases. 
Is the above statement correct? Give reasons. 
 
2 
7 Explain any three objectives of Accounting. 
 
3 
8 (i) Mention any one difference between journal and ledger. 
(ii) Mohan & Co. sold goods amounting to Rs.50,000 at a trade discount of 5% to 
GSC Co. As per the terms, if GSC Co. made full payment to Mohan & Co. within 
15 days it will get Cash discount of 2%. GSC Co. paid the full amount within the 
stipulated time. Determine the amount of Cash discount that GSC Co. may get. 
Also pass a journal entry to record this transaction in the books of Mohan & Co. 
 
1+2 
9 X started a business on 1
st
 April, 2012 with a capital of Rs. 50,000 and a loan of Rs. 25,000 
borrowed from Y. During 2012 – 13, he had introduced additional capital of Rs. 25,000 and 
had withdrawn Rs. 15,000 for personal use. On 31
st
 March, 2013 his assets were Rs. 
1,50,000. Calculate his closing capital as on 31
st
 March, 2013 and profit made or loss 
incurred  during the year 2012 – 13. 
3 
10 If the accounting information is not clearly presented, which of the qualitative characteristic 
of the accounting information is violated? Name and explain it.  
Also explain any other two qualitative characteristics of the accounting information. 
 
3 
11 Due to a major loss in the current year, the accountant of the firm has not charged 
depreciation on fixed tangible assets. Whether his decision not to charge depreciation is 
correct? 
What will be the impact of the decision on financial statements?  
 
 
3 
12 a. Give an example for a transaction which results in : 1 + 2 
      Increase in one liability, decrease in another liability. 
b. Pass journal entries for the following: 
    Goods destroyed by fire Rs.70,000; Insurance Co. admitted and paid claim for    
40% amount. 
13 
 
(i) Why are the rules of debit and credit same for liability and capital? 
(ii) Classify the following as per Modern or Traditional classification of accounts: 
a. Patents                  b. Bank Overdraft                      c. Prepaid Insurance 
d.   Purchases              e. Freight                                   f. Premises 
 
1+3 
14 a. Shri Madan , a businessman has employed Shri Sujit and has estimated his value at 
Rs.10,00,000. He has accounted it as an asset in the books of accounts. Is he correct in 
doing so? 
b. Cash book is both a subsidiary book and a principal book. Explain.   
 
4 
15 (i) Distinguish between Loss and Expense. 
(ii) Distinguish between non - current assets and current assets by giving two 
examples of each. 
 
2+2 
16 (i) What is meant by Imprest System of Petty Cash? 
(ii) Mention the subsidiary books in which following transactions are recorded along 
with reasons thereof: 
a. Purchase of furniture on credit for use in shop 
b. Defective goods sold to Babita on credit for Rs.4,000 were returned by her. 
 
2 + 2 
17 Explain the following Source Documents: 
(i) Invoice 
(ii) Pay – in – slip 
 
4 
18 Prove the accounting equation in the following transactions:- 
(i) Started business with cash Rs. 1,00,000, goods Rs.12,000 and a computer Rs. 
30,000. 
(ii) 1/3 rd of the above goods sold at a profit of 10% on cost. 
(iii) Purchased goods on credit Rs.16,000. 
(iv) Paid to creditor in full settlement Rs. 15,250. 
(v) Wages outstanding Rs.2,600. 
6 
19 Prepare a trial balance from the following information:  
          Heads of accounts       Rs. 
Opening Stock                                                 20,000 
Cash A/c                                                          61,000   
Capital A/c     99,620 
Purchases A/c     85,000 
Sales A/c             1,60,000 
Rent A/c       6,900 
Discount  allowed                                                710 
Sales Returns A/c                 6,200 
Plant & Machinery A/c   68,000 
Debtors A/c     36,000 
Creditors A/c                                                   12,750 
            Commission received                                        1,440 
6 
 
 
20 
 
 
Pass journal entries: 
(i) Wood used for making office furniture Rs. 3,000. 
 
 
6 
(ii) Rs.8,000 recovered for a bad debt written off last year. 
(iii) An old machine with the book value of Rs.80,000 is exchanged for a new machine of 
Rs.2,40,000. The balance payment to be made to the supplier, Machine Tools Ltd. Is 
Rs.1,60,000. 
(iv) Paid landlord Rs.1,500 for rent. One – third of the premises is occupied by the 
proprietor for his own residence.  
(v) Goods distributed as free samples Rs.5,000 (Sales price Rs.6,000). 
(vi) Ram became insolvent. A first and final compensation of 75 p in a rupee received 
from his official receiver. He owed us a debt of Rs.25,000. 
 
21 From the following transactions prepare a triple column cash book : 
Apr  2012                                  Particulars 
1 Cash in hand Rs.6,500, and bank balance (Cr.) Rs.22,000 
2 Sold old furniture for cash Rs.3,500  
3 Capital introduced Rs.20,000 out of which Rs.16,000 is by 
cheque and is deposited in the bank. 
6 Received cheque from Rahul Rs.14,450 and allowed him 
discount Rs.550 
10 Rahul’s cheque was endorsed to Nitin  
15 Withdrew from bank for office use Rs.1,500  
18 Paid for stationery Rs.1,500 
25 Interest collected by bank Rs.625  
 
6 
 
 
 
 
 
 
 
 
 
 
 
 
 
22 Shri Rakesh has started his business of retail trade on October 1, 2012. He has employed two 
persons - one female accountant and another clerk, who is physically challenged to prepare 
books of accounts. He desires that the firm should do business forever and ever and for that 
they should prepare first Profit and Loss Account and Balance Sheet on March 31, 2013 and 
thereafter every year on March 31. You have to appraise his decision and ascertain whether 
his decision is justified? 
Which are the two concepts / principles of Accounting followed by him? Name and explain 
them. Also mention any two values followed by Shri Rakesh. 
 
6 
23 Enter the following transactions of Superior Cloth House in proper subsidiary books: 
 
2012  
April 4 Purchased from Radha Krishan & Sons: 
100 metre Cotton cloth @ Rs.40 per metre 
80 metre Woollen cloth @ Rs.80 per metre 
Trade Discount 20% ; Paid VAT @ 10% 
April 12 Raghubir Prasad & Co. purchased from us: 
80 metre Silk cloth @ Rs.100 per metre 
150 metre Cotton cloth @ Rs.50 per metre 
Trade Discount 15% ; Paid VAT @ 10% 
April 16 Purchased for cash from Hari Om & Sons: 
40 metre Silk cloth @ Rs.120 per metre 
April 18 Returned to Dass & Co. : 
15 metre Silk cloth @ Rs.90 per metre 
April 23 Purchased a computer printer on credit from M/s Jaiswal & Sons 
for Rs.14,000 
April 28 Kasim & Co. sold to us: 
200 metre Cotton cloth @ Rs.35 per metre; Paid VAT @10% 
Trade discount is 20% and freight charges are Rs.150 
 
 
 
8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24 a. Mention any two differences between Straight line method and Written Down Value 
Method of charging depreciation. 
2 + 6 
b. A Machinery was purchased on 1
st
 Jan,2009 for Rs.36,000 & Rs.4,000 was spent on 
its installation.  
            On 1
st
 July, 2009, it purchased another machinery for Rs.20,000. 
            On 1
st
 July, 2011, it sold off the first machine purchased on 1
st
 Jan, 2009 for     
Rs.12,000 and on the same date purchased a new machinery for Rs.64,000.  
   Depreciation is provided at 10% p.a. on the Written Down Value Method. Accounts    
are closed each year on 31st December. Show the machinery account from 2009 to 
2011.   
25 Chetan has the following balances in his books on 1
st
 March, 2013: 
Cash Rs.1,540; Cash at Bank Rs.8,250; Stock RS.19,250; Plant & Machinery Rs.44,000. 
Sundry debtors: Rajesh Rs.2,750; James Rs.1,375 
Sundry Creditors: Rao Rs.1,925; Samanta Rs.3,575; Capital rs.71,665. 
The following are the transactions for the month of March: 
2013  Rs. 
March 1 Cash Sales 1,925 
March 2 Paid Salaries by Cheque 4,500 
March 5 Rajesh settled his account by cheque less 
10% discount 
 
March 9 Salary paid to an employee 4,100 
March 15 Paid Rao on account  1,650 
March 19 Bought goods on credit from Rao  2,805 
March 22 Goods sold for cash 5,600 
 Pass journal entries in the books of Chetan and prepare Rajesh’s A/c, Rao’s A/c, Salaries A/c 
and Sales A/c.  
8 
 
  
 
 
Page 5


      
Date:                        Class: XI 
Accountancy  
Time:3 hrs                                 M. M: 100 
General Instructions: 
1. All questions are compulsory 
2. Marks for each question are indicated against it.             
3. Attempt all parts of a question together. 
 
1 Which basis of accounting is recognized under the Companies Act, 1956? 
 
1 
2 What is meant by a ‘Trial Balance’? 
 
1 
3 Give two examples of revenue expenditure. 
 
1 
4 Proprietor of a firm has taken goods for his personal use. The accountant has accounted it as 
sale in the books of accounts. Is he correct in his accounting? 
 
1 
5 Distinguish between Cash Basis of Accounting and Accrual Basis of Accounting on the basis 
of ‘reliability’ and ‘suitability’. 
 
2 
6 Total of Sales Book is posted to the credit side of the Sales Account in the General Ledger 
while individual account of customers is debited by the amount of their respective purchases. 
Is the above statement correct? Give reasons. 
 
2 
7 Explain any three objectives of Accounting. 
 
3 
8 (i) Mention any one difference between journal and ledger. 
(ii) Mohan & Co. sold goods amounting to Rs.50,000 at a trade discount of 5% to 
GSC Co. As per the terms, if GSC Co. made full payment to Mohan & Co. within 
15 days it will get Cash discount of 2%. GSC Co. paid the full amount within the 
stipulated time. Determine the amount of Cash discount that GSC Co. may get. 
Also pass a journal entry to record this transaction in the books of Mohan & Co. 
 
1+2 
9 X started a business on 1
st
 April, 2012 with a capital of Rs. 50,000 and a loan of Rs. 25,000 
borrowed from Y. During 2012 – 13, he had introduced additional capital of Rs. 25,000 and 
had withdrawn Rs. 15,000 for personal use. On 31
st
 March, 2013 his assets were Rs. 
1,50,000. Calculate his closing capital as on 31
st
 March, 2013 and profit made or loss 
incurred  during the year 2012 – 13. 
3 
10 If the accounting information is not clearly presented, which of the qualitative characteristic 
of the accounting information is violated? Name and explain it.  
Also explain any other two qualitative characteristics of the accounting information. 
 
3 
11 Due to a major loss in the current year, the accountant of the firm has not charged 
depreciation on fixed tangible assets. Whether his decision not to charge depreciation is 
correct? 
What will be the impact of the decision on financial statements?  
 
 
3 
12 a. Give an example for a transaction which results in : 1 + 2 
      Increase in one liability, decrease in another liability. 
b. Pass journal entries for the following: 
    Goods destroyed by fire Rs.70,000; Insurance Co. admitted and paid claim for    
40% amount. 
13 
 
(i) Why are the rules of debit and credit same for liability and capital? 
(ii) Classify the following as per Modern or Traditional classification of accounts: 
a. Patents                  b. Bank Overdraft                      c. Prepaid Insurance 
d.   Purchases              e. Freight                                   f. Premises 
 
1+3 
14 a. Shri Madan , a businessman has employed Shri Sujit and has estimated his value at 
Rs.10,00,000. He has accounted it as an asset in the books of accounts. Is he correct in 
doing so? 
b. Cash book is both a subsidiary book and a principal book. Explain.   
 
4 
15 (i) Distinguish between Loss and Expense. 
(ii) Distinguish between non - current assets and current assets by giving two 
examples of each. 
 
2+2 
16 (i) What is meant by Imprest System of Petty Cash? 
(ii) Mention the subsidiary books in which following transactions are recorded along 
with reasons thereof: 
a. Purchase of furniture on credit for use in shop 
b. Defective goods sold to Babita on credit for Rs.4,000 were returned by her. 
 
2 + 2 
17 Explain the following Source Documents: 
(i) Invoice 
(ii) Pay – in – slip 
 
4 
18 Prove the accounting equation in the following transactions:- 
(i) Started business with cash Rs. 1,00,000, goods Rs.12,000 and a computer Rs. 
30,000. 
(ii) 1/3 rd of the above goods sold at a profit of 10% on cost. 
(iii) Purchased goods on credit Rs.16,000. 
(iv) Paid to creditor in full settlement Rs. 15,250. 
(v) Wages outstanding Rs.2,600. 
6 
19 Prepare a trial balance from the following information:  
          Heads of accounts       Rs. 
Opening Stock                                                 20,000 
Cash A/c                                                          61,000   
Capital A/c     99,620 
Purchases A/c     85,000 
Sales A/c             1,60,000 
Rent A/c       6,900 
Discount  allowed                                                710 
Sales Returns A/c                 6,200 
Plant & Machinery A/c   68,000 
Debtors A/c     36,000 
Creditors A/c                                                   12,750 
            Commission received                                        1,440 
6 
 
 
20 
 
 
Pass journal entries: 
(i) Wood used for making office furniture Rs. 3,000. 
 
 
6 
(ii) Rs.8,000 recovered for a bad debt written off last year. 
(iii) An old machine with the book value of Rs.80,000 is exchanged for a new machine of 
Rs.2,40,000. The balance payment to be made to the supplier, Machine Tools Ltd. Is 
Rs.1,60,000. 
(iv) Paid landlord Rs.1,500 for rent. One – third of the premises is occupied by the 
proprietor for his own residence.  
(v) Goods distributed as free samples Rs.5,000 (Sales price Rs.6,000). 
(vi) Ram became insolvent. A first and final compensation of 75 p in a rupee received 
from his official receiver. He owed us a debt of Rs.25,000. 
 
21 From the following transactions prepare a triple column cash book : 
Apr  2012                                  Particulars 
1 Cash in hand Rs.6,500, and bank balance (Cr.) Rs.22,000 
2 Sold old furniture for cash Rs.3,500  
3 Capital introduced Rs.20,000 out of which Rs.16,000 is by 
cheque and is deposited in the bank. 
6 Received cheque from Rahul Rs.14,450 and allowed him 
discount Rs.550 
10 Rahul’s cheque was endorsed to Nitin  
15 Withdrew from bank for office use Rs.1,500  
18 Paid for stationery Rs.1,500 
25 Interest collected by bank Rs.625  
 
6 
 
 
 
 
 
 
 
 
 
 
 
 
 
22 Shri Rakesh has started his business of retail trade on October 1, 2012. He has employed two 
persons - one female accountant and another clerk, who is physically challenged to prepare 
books of accounts. He desires that the firm should do business forever and ever and for that 
they should prepare first Profit and Loss Account and Balance Sheet on March 31, 2013 and 
thereafter every year on March 31. You have to appraise his decision and ascertain whether 
his decision is justified? 
Which are the two concepts / principles of Accounting followed by him? Name and explain 
them. Also mention any two values followed by Shri Rakesh. 
 
6 
23 Enter the following transactions of Superior Cloth House in proper subsidiary books: 
 
2012  
April 4 Purchased from Radha Krishan & Sons: 
100 metre Cotton cloth @ Rs.40 per metre 
80 metre Woollen cloth @ Rs.80 per metre 
Trade Discount 20% ; Paid VAT @ 10% 
April 12 Raghubir Prasad & Co. purchased from us: 
80 metre Silk cloth @ Rs.100 per metre 
150 metre Cotton cloth @ Rs.50 per metre 
Trade Discount 15% ; Paid VAT @ 10% 
April 16 Purchased for cash from Hari Om & Sons: 
40 metre Silk cloth @ Rs.120 per metre 
April 18 Returned to Dass & Co. : 
15 metre Silk cloth @ Rs.90 per metre 
April 23 Purchased a computer printer on credit from M/s Jaiswal & Sons 
for Rs.14,000 
April 28 Kasim & Co. sold to us: 
200 metre Cotton cloth @ Rs.35 per metre; Paid VAT @10% 
Trade discount is 20% and freight charges are Rs.150 
 
 
 
8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24 a. Mention any two differences between Straight line method and Written Down Value 
Method of charging depreciation. 
2 + 6 
b. A Machinery was purchased on 1
st
 Jan,2009 for Rs.36,000 & Rs.4,000 was spent on 
its installation.  
            On 1
st
 July, 2009, it purchased another machinery for Rs.20,000. 
            On 1
st
 July, 2011, it sold off the first machine purchased on 1
st
 Jan, 2009 for     
Rs.12,000 and on the same date purchased a new machinery for Rs.64,000.  
   Depreciation is provided at 10% p.a. on the Written Down Value Method. Accounts    
are closed each year on 31st December. Show the machinery account from 2009 to 
2011.   
25 Chetan has the following balances in his books on 1
st
 March, 2013: 
Cash Rs.1,540; Cash at Bank Rs.8,250; Stock RS.19,250; Plant & Machinery Rs.44,000. 
Sundry debtors: Rajesh Rs.2,750; James Rs.1,375 
Sundry Creditors: Rao Rs.1,925; Samanta Rs.3,575; Capital rs.71,665. 
The following are the transactions for the month of March: 
2013  Rs. 
March 1 Cash Sales 1,925 
March 2 Paid Salaries by Cheque 4,500 
March 5 Rajesh settled his account by cheque less 
10% discount 
 
March 9 Salary paid to an employee 4,100 
March 15 Paid Rao on account  1,650 
March 19 Bought goods on credit from Rao  2,805 
March 22 Goods sold for cash 5,600 
 Pass journal entries in the books of Chetan and prepare Rajesh’s A/c, Rao’s A/c, Salaries A/c 
and Sales A/c.  
8 
 
  
 
 
 
 
 
Accountancy  
Date:                       Class: XI 
Time:3 hrs                                 M. M: 100 
General Instructions: 
1. All questions are compulsory 
2. Marks for each question are indicated against it.             
3. Attempt all parts of a question together. 
 
1 Which basis of accounting is recognized under the Companies Act, 1956? 
Ans . Accrual basis 
1 
2 What is meant by a ‘Trial Balance’?          Same as Set A Q4 1 
3 Mention two examples of Revenue Expenditure. 
Ans. Salaries, electricity expenses 
1 
6 Total of Sales Book is posted to the credit side of the Sales Account in the General Ledger 
while individual account of customers is debited by the amount of their respective purchases. 
Is the above statement correct? Give reasons. 
Ans. Yes, Sales is a revenue account & therefore, following the rule ‘Increase in revenue is 
credited & decrease debited’, Sales A/c is credited. Since, the Sales A/c contains records of 
credit sales, the Purchasers’ A/c (being debtors) is debited following the rule applicable to 
Assets A/c i.e. ‘Increase in assets is debited & decrease credited’.  
1 
7 Explain any three objectives of Accounting. 
Ans. (i) Record of fin. transactions & Events  
(ii) Determine Profit or loss -  It ascertains profit earned or loss incurred during an accounting 
period by preparing Statement of Profit & Loss (Income Statement). 
(iii) Determine financial position – To determine financial position by preparing Balance 
Sheet (Position Statement). 
(iv) Assisting the management – To assist mgt. by providing fin. Inf. To it. It helps the mgt. 
in decision – making (say price fixation) & exercising controls.         
(v) Communicating acc. Inf. To users - expl. Same as 7th pt. of characteristic of acc (Q2). 
(vi) Protecting Business Assets – A bs. Shld. Have records of assets owned by it. This enables 
the mgt. to protect them & exercise control.         (any 3) 
3 
8 same as Q 10 Set A 1+2 
9 Same as Q 12 Set A 3 
10 If the accounting information is not clearly presented, which of the qualitative 
characteristic of the accounting information is violated? Name and explain it.  
Also explain any other two qualitative characteristics of the accounting information. 
Ans. Understandability – presented in a manner so that it can be understood by users.   (1) 
    Other two qualitative characteristics are : 
a. Relevance – relevant to users & help them in decision making. 
b. Reliability – verifiable, free from material error & bias. 
c. Comparability                                                                                                    (any 2) 
3 
11 Same as Q9 Set A 3 
12 
 
a. Give an example for a transaction which results in : 
     Increase in one liability, decrease in another liability. 
b. Pass journal entries for the following: 
    Goods destroyed by fire Rs.70,000; Insurance Co. admitted and paid claim for    
40% amount. 
3