……….

SCHOOL
ACCOUNTANCY (055)
CLASS XI
SESSION 2021-2022
SET B

Maximum Marks: 40
Maximum Time: 90 Minutes

Instructions:
 The question paper contains three Sections - A, B and C.
 Section A has questions from 1 to 25 and you have to attempt any 20 questions
 Section B has questions from 26 to 50 and you have to attempt any 21 questions
 Section C has questions from 51 to 55 and you have to attempt any 4 questions
 All questions carry equal marks
Section A
From question number 1 to 25, attempt any 20 questions
1. Under the Companies Act 2013, all companies are required to maintain their accounts
according to
(a) Cash basis (b) Accrual basis
(c) Either Cash or Accrual basis (d) None of the above
Ans. (b) Accrual basis
2. How will an account be balanced if the total of debit side is more than the total of
credit side?
(a) By writing “By balance b/d” on the credit side
(b) By writing “To balance c/d” on the debit side
(c) By writing “By balance c/d” on the credit side
(d) By writing “To balance b/d” on the debit side
Ans. (c) By writing “By balance c/d” on the credit side
3. Which of the following transactions increases one liability and decreases another?
(a) Acceptance of Bills payable
(b) Payment of Bills payable
(c) Repayment of loan
(d) Payment of salaries of last year
Ans. (a) Acceptance of Bills payable
4. If the amount of any known liability cannot be determined accurately, then ….
(a) Provision should be created
(b) Reserve should be created
(c) Definite liability should be created
(d) Definite asset should be created
Ans. (a) Provision should be created
5. Internal use rs of accounting information include all of the following except-
(a) Store Manager (b) Chief Financial Officer
(c) Supplier (d) Chief Executive Office
Ans. (c) Supplier

6. Depreciation under fixed instalment method is calculated ………

(a) On the purchase price of the asset
(b) On the closing balance of the asset
(c) On each year's opening balance of the asset
(d) On the market price of the asset
Ans. (a) On the purchase price of the asset
7. Trade Discount allowed will be recorded in the …….
(a) Cash Book (b) Petty Cash Book
(c) Special Purpose Subsidiary Books (d) Journal Book
Ans. (c) Special Purpose Subsidiary Books
8. On inter-state (i.e., outside the state) purchase of goods, which of the following GST is
levied?
(a) IGST (b) IGST and CGST (c) CGST (d) SGST
Ans. (a) IGST
9. Goods means …..
(a) Commodity to be bought and sold
(b) Commodity to be bought and not to be sold
(c) Commodity to be used an Asset
(d) All of the above
Ans. (a) Commodity to be bought and sold
10. Under ………. feature of accounting, meaningful and sound judgment can be made
about the profitability and financial position of the business.
(a) Analysis and Interpretation
(b) Communicating
(c) Summarising
(d) Classifying

Ans. (a) Analysis and Interpretation

11. Purchases Book is a part of …….
(a) The Journal (b) The Ledger (c) Income Statement (d) Balance Sheet
Ans. (a) The Journal
12. The Accounting Equation represents ……….
(a) Resources are allocated at Cost Price
(b) Resources in the business are equal to sources of business
(c) Proprietor gives money for business
(d) Resources in the business are not equal to the source of business
Ans. (b) Resources in the business are equal to sources of business
13. Given below are two statements, one labelled as Assertion (A) and the other labelled as
Reason (R)
Assertion (A): Single Column Cash book with Bank Column will always show a Dr.
balance
Reason (R): Payments in the Cash column of Cash Book cannot be more than the
opening balance of cash and its receipts.
In the context of the above statements, which one of the following is correct?
Codes:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Ans. (d) A is false but R is true
14. Which of the following is a contra entry?
(1) Cash deposited into bank
(2) Cash sales deposited into bank immediately
(3) Cheque received from a customer and deposited into bank on the same day
(4) Cash withdrawn from the bank for office use.
Choose the correct option:
(a) Option 1 is correct
(b) Option 1 & 2 are correct
(c) Option 1 & 4 are correct
(d) Option 2 & 3 are correct
Ans. (c) Option 1 & 4 are correct
15. Accounting standards are formulated by
(a) Planning Commission
(b) Institute of Chartered Accountants of India
(c) Companies Act. 2013
(d) Institute of Company Secretaries of India
Ans. (b) Institute of Chartered Accountants of India
16. Asset sold on credit will be recorded in …….
(a) Sales Book (b) Journal Proper
(c) Sales Return Book (d) Petty Cash Book
Ans. (b) Journal Proper
17. If accounting information is based on facts and it is verifiable by documents, it has the
quality of ……..
(a) Relevance
(b) Reliability
(c) Understandability
(d) Comparability

Ans. (b) Reliability

18. Given below are two statements, one labelled as Assertion (A) and the other labelled as
Reason (R)
 Assertion (A): There should be a sufficient disclosure of information which is of
material interest to use₹
Reason (R): The Companies Act 2013 does not make ample provisions for the
disclosure of essential information in Financial Statements of a company.
In the context of the above statements, which one of the following is correct?
Codes:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Ans. (c) (A) is correct (R) is wrong

19. On 31st March, 2021, total assets and external liabilities were ₹ 1,00,000 and ₹ 3,000
respectively. During the year, the proprietor had introduced additional capital of ₹
12,000 and had withdrawn ₹ 6,000 for personal use. He made a profit of ₹ 10,000
during the year. Calculate the capital as on 1st April 2020.
(a) ₹ 97,000 (b) ₹ 1,00,000 (c) ₹ 81,000 (d) ₹ 1,03,000
Ans. (c) ₹ 81,000
20. X returned goods for ₹2,000 to us. The account debited will be ……
(a) Goods Account (b) X's Account
(c) Return Inward Account (d) Return Outward Account
Ans. (c) Return Inward Account
21. Commission received is an example of ……
(a) Real A/c (b) Personal A/c (c) Nominal A/c (d) None
Ans. (c) Nominal A/c
22. Purchase of goods from Raghu for cash will be credited to …..
(a) Purchase Account (b) Raghu's Account
(c) Cash Account (d) Goods Account
Ans. (c) Cash Account
23. Which of the following statements is true?
(a) Cash Book is a journal and not a ledger
(b) Cash Book is a ledger and not a journal
(c) Cash Book is both a journal and a ledger
(d) Cash Book is neither a journal nor a ledger
Ans. (c) Cash Book is both a journal and a ledger
24. The concept that a business enterprise will not be sold or liquidated in the near future.
This statement is based on …………
(a) Business Entity Principle
(b) Money Measurement Principle
(c) Matching Principle
(d) Going Concern assumption
Ans. (d) Going Concern assumption
25. When a cheque deposited into bank is dishonoured by bank, it will be recorded in cash
book in …….
(a) Bank column on debit side (b) Bank column on credit side
(c) Cash column on debit side (d) Cash column on credit side
Ans. (b) Bank column on credit side

Part B
From question number 26 to 50, attempt any 21 questions
26. Date Particulars L. F. Dr (₹) Cr (₹)
…………. A/c Dr
To Bank A/c
(Being rent paid to landlord, Ramesh
through cheque)

Fill in the blank with the correct option:

(a) Landlord (b) Rent (c) Cheque in hand (d) Land
Ans. (b) Rent
27. Which of the following is a representative personal account?
(a) Goodwill A/c (b) Ram A/c (c) Bank A/c (d) Accrued Income A/c
Ans. (d) Accrued Income A/c
28. Which of the following statements are correct about a "Provision"?
(i) Provisions are a charge against the profits of an enterprise
(ii) Provisions are created out of divisible profits
(iii) Creation of provisions are not necessary for a business
(iv) Provisions are created to meet a known liability
Find the correct option:
(a) (i), (ii) and (iii) are correct (b) (ii) and (iv) only are correct
(c) (i), (iii) and (iv) are correct (d) (i) and (iv) only are correct
Ans. (d) (i) and (iv) only are correct
29. Following balances appeared in the books of Rishabh on 1 April 2019: Furniture ₹
40,000; Creditors ₹ 30,000. Cash ₹6,000; Bank ₹ 10,000; Debtors ₹45,000; Bills
Payable ₹ 5,000; Stock ₹ 44,000; Capital account will be credited with Rs………..
(a) ₹1,20,000 (b) ₹1,10,000 (c) ₹1,00,000 (d) ₹11,000
Ans. (b) ₹1,10,000
30. Goods costing ₹20,000 is sold at a profit of 20% on cost and trade discount is allowed
@ 10% and cash discount of 10% is also allowed. Half the payment was received at
the time of sale. What is the amount of cash received at the time of sale?
(a) ₹9,720 (b) ₹10,800 (c) ₹11,880 (d) ₹10,820
Ans. (a) ₹9,720
31. In the books of Desire Infra Limited, Machinery Account shows a debit balance of ₹
60,000 as on April 1, 2010 and Provision for Depreciation A/c at ₹ 24,000. The
machinery was sold on September 30, 2010 for ₹ 30,000. The company charges
 depreciation @20% p.a. on Straight Line Method on March 31 each year. Profit or
Loss on sale of the machinery will be ……
(a) Rs 6,000 Profit (b) Rs 6,000 Loss
(c) Rs 2,400 Loss (d) No Profit or Loss
Ans. (d) No Profit or Loss
32. Journalize the following transaction having been entered within the state of U.P. charging
CGST & SGST @ 6% each. Sold goods costing ₹60,000 to Kishore against cheque at a
profit of 25% on cost; Less 10% Trade Discount.
(a)
Particulars L.F Dr. (₹) Cr. (₹)
.
Bank A/c Dr. 82,500
To Sales A/c 72,600
To Output CGST A/c 4,950
To Output SGST A/c 4,950
(Being goods sold and GST collected)
(b)
Particulars L.F Dr. (₹) Cr. (₹)
.
Bank A/c Dr. 75,600
To Sales A/c 67,500
To Output CGST A/c 4,050
To Output SGST A/c 4,050
(Being goods sold and GST collected)
(c)
Particulars L.F Dr. (₹) Cr. (₹)
.
Bank A/c Dr. 75,600
To Sales A/c 66,690
To Output CGST A/c 4,455
To Output SGST A/c 4,455
(Being goods sold and GST collected)
(d)
Particulars L.F Dr. (₹) Cr. (₹)
.
Bank A/c Dr. 75,000
To Sales A/c 66,000
To Output CGST A/c 4,500
To Output SGST A/c 4,500
(Being goods sold and GST collected)
Ans. (b)
Particulars L.F Dr. (₹) Cr. (₹)
.
Bank A/c Dr. 75,600
To Sales A/c 67,500
To Output CGST A/c 4,050
To Output SGST A/c 4,050
(Being goods sold and GST collected)
33. Sale is recognised as revenue …….
(a) when the contract for sale is entered into.
(b) at the point of sale or performance of service.
(c) after the expiry of credit period allowed to debto₹
(d) after the money collected from the customers.
Ans. (b) at the point of sale or performance of service.
34. Factors taken into consideration for providing depreciation are …….
(1) Cost of the asset
(2) Cost incurred on maintenance of asset
(3) Estimated useful life of the asset
(4) Estimated Scrap value of the asset
Choose the correct option:
(a) 1 and 2 are correct
(b) 1,2 & 3 are correct
(c) 1,3 & 4 are correct
(d) 2,3 & 4 are correct
Ans. (c) 1,3 & 4 are correct
35. Given below are two statements, one labelled as Assertion (A) and the other labelled as
Reason (R)
Assertion (A): All entries recorded in the Journal are posted in the accounts in the
Ledger Book.
Reason (R): Journal is the book of original entry where transactions are recorded in
chronological order.
In the context of the above statements, which one of the following is correct?
Codes:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Ans. (a) Both (A) and (R) are correct but (R) is correct explanation of (A)
36. Bank charges ₹ 5,000 debited twice in pass book. What should be done in Bank
Reconciliation Statement if overdraft as per cash book is starting point?
(a) Rs 5,000 must be added
(b) Rs 5,000 must be deducted
(c) Rs 10,000 must be deducted
(d) Rs 10,000 must be added
Ans. (b) Rs 5,000 must be deducted
37. A machine was purchased on 1st April, 2018 for ₹5,00,000 and on 1st October, 2018,
a new machine is added for ₹2,00,000. Calculate the balance of machine account if
depreciation is charged at 20% p.a. on written down value method for the year ending
March 31, 2019.
(a) ₹6,00,000 (b) ₹5,60,000 (c) ₹6,60,000 (d) ₹5,80,000
Ans. (d) ₹5,80,000
38. Mr. Ramesh and Mr. Rajesh are lawyers and are partners in a legal firm. Mr. Ramesh
pays his annual Life insurance premium of Rs 48,000 on 1st October, 2018. What will
 be the amount debited to drawings if the accounts of the firm are closed on 31st March
every year?
(a) ₹24,000 (b) ₹36,000 (c) ₹48,000 (d) ₹32,000
Ans. (c) ₹48,000
39. On 1st May 2020, cash book bank overdraft balance was ₹2,000. Cheques worth
₹ 10,000 were deposited into bank but not collected by bank. Cheque of ₹ 4,000
issued to a creditor has already been present to the bank. The balance of pass book
will be….
(a) ₹12,000 Dr. (b) ₹12,000 Cr. (c) ₹8,000 Dr. (d) ₹8,000 Cr.
Ans. (b) ₹12,000 Cr.
40. M/s Future Ltd. has invested ₹ 10,000 in the shares of Relicam Industries Ltd. Current
market value of these shares is ₹ 10,500. Accountant of future Ltd. wants to show
₹ 10,500 as value of investment in the books of accounts, which accounting principle
restricts him from doing so?
(a) Full Disclosure (b) Consistency (c) Conservatism (d) Materiality
Ans. (c) Conservatism
41. A trader made the following transactions.
(i) Goods purchased from Gaurav ₹8,000
(ii) Goods purchased from Sudhir for Cash ₹10,000
(iii) Goods purchased from Kamal on credit ₹25,000
(iv) Machinery purchased from Dinesh on credit ₹40,000
Total of Purchase Book on the basis of these transactions will be …….
(a) ₹83,000 (b) ₹73,000 (c) ₹33,000 (d) ₹25,000
Ans. (c) ₹33,000
42. Gopal is our debtor for ₹ 10,000. He became insolvent and only 60 paise in a rupee is
received from him. The balance of ₹ 4,000 would be entered to the ……
(a) Debit of discount account (b) Credit of discount account
(c) Debit of Bad Debts account (d) Credit of bad debts recovered account

Ans. (c) Debit of Bad Debts account

43. Sonia runs a small firm dealing in fancy candles, diyas and incense sticks made with
organic ingredients. In the last year, she earned higher revenue due to online sales. She
invested a part of extra cash in the stock market by buying shares of ₹40,000. In the
current year, she sold that investment at a price of ₹64,000. This difference of ₹24,000
will be termed as:
(a) Revenue (b) Profit (c) Income (d) Gain
Ans. (d) Gain
44. Sold goods worth list price of ₹ 8,000 at 10% trade discount and 2% cash discount.
25% received at the time of transaction only. The amount posted to discount account
will be…….
(a) ₹ 40 on credit side (b) ₹ 144 on credit side
(c) ₹ 144 on debit side (d) ₹ 36 on debit side

Ans. (d) ₹ 36 on debit side

45. Imprest amount in the Petty Cash Book is ₹5,000. What will be the amount of re-
imbursement if following expenses were incurred by the petty cashier during the
month: Wages ₹1,450, Tiffin ₹1,050, Small Repairs ₹500, General expenses ₹400.
(a) ₹1,600 (b) ₹3,400 (c) ₹3,050 (d) ₹3,000
Ans. (b) ₹3,400
46. Aman runs a bakery which supplies products to many small restaurants. He sold one of
the old ovens for ₹6,000 as it had become outdated. As a result of this transaction:
(a) Cash A/c will be debited with ₹6,000 and Sales A/c will be credited
(b) Sales A/c will be debited and Cash A/c will be credited with ₹6,000.
(c) Equipment A/c will be debited and Cash A/c will be credited with ₹6,000
(d) Cash A/c will be debited with ₹6,000 and Equipment A/c will be credited
Ans. (d) Cash A/c will be debited with ₹6,000 and Equipment A/c will be credited
47. Payment done by the account holder through issuing a cheque is entered in ….
(a) the Pass Book at the time of issuing the cheque
(b) the Cash Book at the time of issuing the cheque
(c) the Cash Book at the time of presenting the cheque to the bank for payment
(d) the Petty Cash Book as petty expenses

Ans. (b) The Cash Book at the time of issuing the cheque
48. An asset was purchased for ₹ 21,000 on April 01, 2020 with cost of installation ₹
4,000. Its salvage value at the end of 10 year is estimated ₹ 3,000 only. Find the
amount of annual depreciation to be charged on December 31,2021 according to Fixed
Instalment Method assuming the books are closed on December 31 each year.
(a) ₹ 2,500 (b) ₹ 2,200 (c) ₹ 1,650 (d) ₹ 1,875
Ans. (c) ₹ 1,650
49. On 5 April, 2021, timber was purchased from M/s PT Traders for ₹40,000 on credit,
which of the following option will be correct?
(a) Furniture of ₹40,000 will be added to assets & Cash reduced by ₹40,000.
(b) Furniture of ₹40,000 will be added to assets & Creditors increased by ₹40,000.
(c) ₹40,000 added to stock & subtracted from cash
(d) ₹40,000 added to stock & added to creditors (under liabilities)
Ans. (d) ₹40,000 added to stock & added to creditors (under liabilities)
50. Given below are two statements, one labelled as Assertion (A) and the other labelled as
Reason (R)
Assertion (A): Matching concept necessitates adjustment for outstanding and prepaid
expenses.
Reason (R): Profit earned by the business can be correctly determined when the revenue
earned during that period is compared with the expenditure incurred to earn that revenue.
Codes:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Ans. (a) Both A and R are true and R is the correct explanation of A
 Part C
From question number 51 to 55, attempt any 4 questions
Shyam started a manufacturing business with cash ₹ 10,00,000; Goods ₹ 2,00,000 and
Furniture of ₹ 1,00,000. He opened a Bank Account with HDFC Bank in the name of
the firm by depositing ₹ 60,000.
The following transactions took place:
(a) Goods purchased in cash ₹ 80,000 and on credit ₹ 50,000.
(b) Goods were sold in cash ₹ 1,00,000 and on credit ₹ 50,000 at cost price plus 25%.
(c) Cash paid to creditors on account ₹ 30,000.
(d) Cash received from debtors ₹ 10,000.
Other information
(a) Debtors have deposited 50 % of the remaining amount in firm’s bank Account.
Bank charges ₹2,000 were charged by bank for services provided
51. How much total profit made the him?
(a) ₹ 37,500
(b) ₹ 30,000
(c) ₹ 28,000
(d) ₹ 12,500

Ans. (c) ₹ 28,000

52. What is the amount of sales?

(a) ₹ 1,00,000
(b) ₹ 1,50,000
(c) ₹ 30,000
(d) ₹ 50,000
Ans. (b) ₹ 1,50,000
53. How much total capital brought by Mr. Shyam to start the business in the beginning?
(a) ₹ 10,00,000 (b) ₹ 12,00,000 (c) ₹ 15,00,000 (d) ₹ 13,00,000

Ans. (d) ₹ 13,00,000

54. How much amount is yet to be paid to the creditors?

(a) ₹ 50,000
(b) ₹ 30,000
(c) ₹ 20,000
(d) Already paid full amount

Ans. (c) ₹ 20,000

55. What is the amount of goods left?

(a) ₹2,00,000
(b) ₹10,000
(c) ₹3,30,000
(d) ₹2,10,000

Ans. (d) ₹2,10,000

Solution Capital Creditor Cash Fur Bank Goods Debtors
51-55 s
13,00,00 10,00,00 1,00,00 2,00,000
0 0 0
(60,000) 60,000
50,000 (80,000) 1,30,000
30,000 1,00,000 (1,20,000 50,000
Profit Sales ) Sales
Cost
(30,000) (30,000)
10,000 (10,000
)
20,000 (20,000
)
(2,000) (2,000
)
13,28,00 20,000 9,40,000 1,00,00 78,000 210,000 20,000
0 0