UT - 1- 2020-21

ACCOUNTANCY(055): CLASS11
Max marks: 40 Time: (in 1.5 Hrs)
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General Instructions:
1. This question paper contains 20 questions
2. Marks are indicated against each question.
3. Question 1 to 12 are questions carrying 1 mark each.
4. Question 13 to 15 carry 2 marks each.
5. Question 16 and 17 carries 3 marks.
6. Question 18 and 19 are questions carrying 4 mark each.
7. Question 20 carries 8 marks .
8. Attempt all questions.

Question 1 to 12 are questions carrying 1 mark each.

1. Give a word, term or phrase which can substitute the following statement: [1]
An amount spent on promoting sale of goods.

2. An account is said to have a debit balance if…. [1]

(a) The amount of debit exceeds the amount of the credits
(b) There are more entries on the debit side than on the credit side
(c) The last entry of the accounting period was posted on the debit side
(d) None of above

3. Find the odd one : [1]

Prepaid expense, Debtors, Outstanding Income, Reserve for Doubtful Debts

4. Which of the following is an expense? [1]

(a) Purchasing operating equipment
(b) Purchasing cleaning service
(c) Purchasing an investment of another company
(d) Purchasing a computer for the accounting

5. What is meant by window dressing? [1]

OR
What are Fictitious assets?
6. Goods purchased worth Rs 1,60,000 at 10% T.D. and 5% C.D . Paid 50% of the amount [1]
immediately by cheque . Pass the journal entry.

7. Machinery purchased by the Proprietor decreases his capital. State giving reason whether [1]
the above statement is true or false.

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 8. State True or False: [1]
Drawings decrease capital and increase assets.

9. Accrued income will ... [1]

(a) Increase assets and increase capital
(b) Increase assets and increase liabilities
(c) Decrease assets and decrease capital
(d) Decrease assets and decrease liabilities.

10. Which of the following transactions would have no impact on owner's equity? [1]
(a) Purchase of the land from the proceeds of bank loan
(b) Dividends to owner.
(c) Net loss
(d) Investment of cash by owner

11. Mr. Jash dealing in electronic goods sold 10 T.V sets costing 30,000 each at Rs 40,000 each. [1]
Out of this Rs. 3,00,000 is received in cash and balance is yet to receive. State the amount of
revenue ?

12. When a Liability is reduced or decreased, it is recorded on the? [1]

(a) Right or debit side of the account
(b) Left or debit side of the account
(c) Left or credit side of the account
(d) Right or credit side of the account

13. Mohan had cash sales of Rs. 90,000 and credit sales of Rs. 60,000: and his expenses were Rs. [2]
70,000 out of which 10,000 is only paid. Commision earned by him was Rs 10000 but he
received only 2000. Find the profit earned if books are maintained on:
a) Cash basis and
b) Accrual basis.

14. If Personal investment of Rs 20,000 sold at a gain of Rs 5,000 and half of the proceed is used [2]
to make payment of creditors of business and half of proceed is deposited in current account
of business then:
a) Capital account will be ____________(debited/ credited) by Rs. ___________.
b) Which Principle separates the business from its owner?

15. Calculate the Total Liabilities if the raw materials cost Rs. 5000, machine cost Rs. 50,000, [2]
Furniture used in the firm cost Rs. 20,000, cash at bank is Rs. 30,000 and the owner’s equity
is Rs. 70,000. Which Principle have you used ?

16. Show how the accounting equation is satisfied in the following cases : [3]
(i) Mahesh started business with cash Rs. 80,000 and goods Rs. 40,000.
(ii) Sold half of the goods at a loss of 10% to Ramesh.
(iii) Paid salary Rs. 3,000.

17. Classify the following accounts into Assets, Liabilities, Income, Expenditure and Capital. [3]
1)Copyright 4) Freight
2) Interest Received 5) Investment in shares of ABC Ltd.
3) Sundry Creditors 6) Bank Overdraft
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 Question 15 and 16 carries 4 marks.
18. Sahil is having wooden furniture manufacturing unit. He maintains his books on double entry [4]
system. On 1.1.2018 his cash balance is Rs 50,000. He purchased loose parts of furniture
from Décor mart at Rs 6,000 on 7.1.2018. He sold Chairs to Avinash traders for Rs 9,000 on
9.1.2018. Cash purchases Rs 4,500 on 12.1.2018, Sold a study table for Rs 2,500 on
15.1.2018, Paid to Décor mart Rs 4,200 on 20.1.2018.Received from Avinash traders Rs 7,000
on 24.1.2018. Paid for cleaning charges Rs 800 on 28.1.2018.
Amount paid to Décor mart Rs 1,500 in full settlement of account 1.2.2018. On 7.2.2018
amount received from Avinash traders Rs1,900 in full settlement of account. Paid for salary
Rs 8,000 on 15.2.2018. Paid for Rent Rs 9,000 on 25.2.2018.
On the basis of above information answer the following
1. What is the balance of cash on 31.1.2018 ?
2. Who is Sahil’s Debtor on 31.1.2018 and for what amount ?
3. Who is Sahil’s Creditor on 31.1.2018 and for what amount ?
4. Give an example of any Capital expenditure for Sahil?

19. Accounting concepts are the basic rules, assumptions, and conditions that define the [4]
parameters and constraints within which the accounting operates. In other words,
accounting concepts are the generally accepted accounting principles, which form the
fundamental basis of preparation of universal form of financial statements consistently. On
the basis of the accounting concepts and Principles answer the following questions.

a) A company borrowed Rs. 2,00,000 on March 1. The agreement requires that the Rs
2,00,000 be repaid on May 30 along with Rs.6,000 of interest for the three months of March
through May. As of March 31 the company will not have an invoice or payment for the
interest that the company is incurring. (The reason is that all of the interest will be due on
May 30). Should the company account for the interest for the month of March? Which
concept?

b) Assets are classified into Fixed and Current Assets. Which concept?

c) In case there are certain items in stock ,prices of which have risen by 25%, should closing
stock be valued at current market price or at cost .Why?

Question 14 carries 8 marks .

20. Journalise the following transactions in the books of Nina General Stores and make the Cash [8]
Account, Bank account, Sales account and Purchase account and Mohan account.
2018
Sept
1 Sold goods of Rs 50,000 at 10% Trade Discount and 10% Cash Discount to Raj and
received 50% by cheque and 20% by cash.
2. Raj’s Cheque deposited into bank.
3 Bought goods worth Rs 60,000 from Prakash at 10% Trade discount.
5. Exchanged own Furniture of Rs 30,000 against a Motor car of the same value for
business.
9. Placed an order for goods worth Rs 7,000 with Mohan for which advance Rs 5,500
was paid by cheque.
17. Goods returned to Prakash worth Rs 10000 .
20. Received Goods from Mohan as per our order dated 9th sept and settled his account.

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21. Purchased a second hand lorry from a scrap dealer at Rs 30000 and spent ₹3,000
as repair on lorry.
22. Furniture lost by fire of worth Rs. 500.Insurance company accepted 60% of the claim .
30. A debtor Murli, who owed us Rs. 4000 is declared insolvent and a compensation of 75
paise in a rupee was received from his Official Receiver .

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