RYAN INTERNATIONAL SCHOOL

UNIT TEST - I
CLASS-XI SUB. : ACCOUNTS (PAPER-2)
TIME : 1½ HRS. MM: 32

Q.1 Fill in the blanks with Accounting concept/convention applicable :

(i) Everything a firm owns, it also owns out to somebody. This co-incidence is
explained by the _______ concept.
(ii) A firm may hold stock which is heavily in demand. Consequently, the market
value of this stock may be increased. Normal accounting procedure is to ignore
this because of the _______
(iii) The management of a firm is remarkably incompetent, but the firm’s
accountants cannot take this into account while preparing books of accounts
because of _______concept. (3)

Q.2 Differentiate between Ind – AS and Accounting Standards. (Any two ) (3)

Q.3 What are the qualitative characteristics of accounting information ? (4)

Q.4 (i) Amount due from Ajay was Rs. 10,000 being insolvent he paid Rs. 2500 only.
What will be the amount of bad debts of Ajay in terms of percentage?
(ii) Anushka started business with cash Rs. 5,00,000, loan from friend. Rs. 2,00,000
and assets Rs. 7,00,000. What is the amount of Internal liability of Anushka ?
(4)

Q.5 Global Enterprise started a business for buying and selling of stationery with Rs.
5,00,000 as an initial investment. Of which he paid Rs. 1,00,000 for furniture, Rs.
2,00,000 for buying stationery items. He employed a sales person and clerk. At the end
of the month he paid Rs. 5,000 as their salaries. Out of the stationery bought he sold
some stationery for Rs. 1,50,000 for cash and some other stationery for Rs. 1,00,000 on
credit basis to Mr. Ravi. Subsequently, he bought stationery items of Rs. 1,50,000 from
Mr. Pearl. In the first week of next month there was a fire accident and he lost Rs.
30,000 worth of stationery. A part of the machinery, which cost Rs. 40,000, was sold
for Rs. 45,000.

From the above, answer the following :

1. What is the amount of capital with which Mr. Sunrise started business?
2. Who is the creditor and state the amount payable to him?
3. What is the gain he earned?
4. What is the total amount of expenses and losses incurred? (6)

Q.6 Identify the Accounting concept/convention applicable/violated in the following cases:

(i) Mohan is the proprietor of M/s. M.K. & Co. He purchased a car for his son and
made the payment by issuing a cheque from the account of M/s. M.K. & Co.
The Accountant recorded as Drawings . But according to Mohan, it should be
recorded as Fixed Assets.

(ii) Cost of Machinery purchased on 1st April, 2020 - 5,00,000

 Installation Charges 50,000
Market value as on 31st March, 2021 - 8,00,000

While preparing the annual accounts, if the company values the machinery at
Rs.8,00,000 (6)

Q.7 During the financial year 2020-21, Shyam earned a total revenue of Rs 4,70,000 by
selling goods. Out of the total sales, there were credit sales of Rs 1,30,000. The total
expenses for the year were Rs 2,50,000 out of which Rs 2,00,000 paid in cash. He also
paid an expense of Rs 5,000 related to last year and received cash Rs 10,000 related to
next year. You are required to calculate his income for the year as per:
(i) Cash basis of accounting
(ii) Accrual basis of accounting (6)

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