ULTIMATE BOOK OF ACCOUNTANCY Class 11th

Practice Paper: By Dr Vinod Kumar (Author of Ultimate Book of Accountancy)

TERM -2 Examination – February 2022
Subject: Accountancy
Class – XI
Time Allowed: 2hrs. Set – 1 M.M: 40
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General Instructions:
1) This question paper contains 12 Questions
2) All the questions are compulsory.
3) Marks are indicated against each question.
4) Use of Calculator is prohibited.
5) All parts of the questions should be attempted at one place.

Part A – Accounting Process (Bills of Exchange, Trial Balance and

Rectification of Errors)
1. In the following cases find the Date of Bill Drawn and Maturity Date of the Bill : [2]

Case 1: A Bill of Exchange which was drawn for 3 months, was met on its maturity
date 3rd October. On which date the Bill was Drawn.
Source: Ultimate Book of Accountancy
Case 2: A Bill of Exchange was Drawn on 12th June 2021 for 2 months. Find the date
of maturity of the bill

2. Identify the Types of Errors from the Following: [2]

(i) If wrong amount is entered in the Journal for a financial transaction.
(ii) Source: Ultimate Book of Accountancy. Furniture purchased recorded through
purchase account.
(ii) Commission Rs. 2,000 received earlier but not recorded in the books yet.
(iv) If one error is neutralised by the effect of other error.

3. From the following identify the items which comes in the Debit Side of Trial [2]
Balance: Source : Ultimate Book of Accountancy
(i) Loan From Bank @ 10% p.a.
(ii) Credit Sales
(iii) Cash Sales
(iv) Fixed Deposits @8% p.a.
(v) Commission Allowed
(vi) Provision for Doubtful Debts
(vii) Bills Receivable
(viii) Cash in Hand

4. Give the rectifying entries for the following: [3]

(i) Depreciation on Machinery was to be charged @ 10% p.a. but entry was recorded
in the journal @ 12% p.a. Source: Ultimate Book of Accountancy. Machinery Costing
Rs. 2,80,000.

(ii) Goods purchased from Mohan Rs. 4,000 recorded in journal as goods sold to
Mohan. Source: Ultimate Book of Accountancy

(iii) Cash paid to Vinod Rs. 5,000 recorded as Cash paid to Manoj.
 ULTIMATE BOOK OF ACCOUNTANCY Class 11th

5. Vinod sold goods to Satish for Rs. 50,000 on 15th February 2021 and drew a Bill of [3]
Exchange on the same day for the amount due for 3 months which was duly accepted
by Satish. Vinod discounted the bill after the one month of acceptance at 18% p.a.
at his bank. Source: Ultimate Book of Accountancy. Satish met the bill on time on
maturity date. Give entries in the books of Vinod and Satish.

Part B
(Financial statements of sole proprietorship from complete and Incomplete
records and computers in accounting)

6. Find out Gross Profit and Cost of Goods Sold from the following information: [2]
Net Sales during the year ……………………………………….. 9,00,000
Gross Profit (Source: Ultimate Book of Accountancy)……. 25% on Cost
7. Define the following accounting packages: [3]

(a) Ready to use (b) Customised (c) Tailored

OR
Give any 3 limitations of Computerised Accounting System.

8. From the following balances extracted from the books of M/s Ahuja and Nanda. [3]
Calculate the amount of :
(a) Cost of goods available for sale
(b) Cost of goods sold during the year
(c) Gross Profit
Opening stock…………………………………………… 25,000
Credit purchases…………………………………….. 7,50,000
Cash purchases…………………………………….… 3,00,000
Credit sales…………………………………………….12,00,000
Cash sales ………………………………………………4,00,000
Wages ……………………………………………………1,00,000
Salaries ………………………………………………….1,40,000
Closing stock ……………………………………………..30,000
Sales return………………………………………………. 50,000
Purchases return …………………………………………10,000
9. Mr. Mehta started his readymade garments business on April 1, 2016 with a capital [5]
of Rs.50,000. He did not maintain his books according to double entry system.
During the year he introduced fresh capital of Rs.15,000. He withdrew Rs. 10,000 for
personal use. On March 31, 2017, his assets and liabilities were as follows :
Total creditors Rs. 90,000 ; Total debtors Rs. 1,25,600 ; Stock Rs. 24,750 ; Cash
at bank Rs. 24,980.
Calculate profit or loss made by Mr. Mehta during the first year of his business using
the statement of affairs method.
 ULTIMATE BOOK OF ACCOUNTANCY Class 11th
10. Following information is provided by Vinod & Sons on 31st March 2021: [5]
Trial Balance (Extract)
Particulars Debit Credit
Loan to Mohan on 1st October 2020 @ 10% p.a. 20,000 --
Bank Loan taken on 1st December 2020 @ 6% p.a. -- 80,000
Investment @ 8% p.a. (1,4,2020) 1,00,000 --
Interest from Mohan Source: Ultimate Book of Accountancy -- 700
Interest on Investment -- 5,000
Interest paid on Bank loan 1,000 --
Show the impact of the above in Profit and Loss Account and Balance Sheet.

11. Differentiate between Computerised Accounting and Manual Accounting System. [5]

12. From the following balances of M/s Keshav Bros. You are required to prepare [5]
trading and profit and loss account and a balance sheet of March 31, 2021.
Particulars Amount Particulars Amount
Plant and Machinery 1,30,000 Sales 3,00,000
Debtors 50,000 Return outwards 2,500
Interest 2,000 Creditors 2,50,000
Wages 1,200 Bills payable 70,000
Salary 2,500 Provision for bad debts 1,550
Carriage inwards 500 Capital 2,20,000
Carriage outwards 700 Rent received 10,380
Return inwards 2,000 Commission received 16,000
Factory rent 1,450
Office rent 2,300
Insurance 780
Furniture 22,500
Buildings 2,80,000
Bills receivable 3,000
Cash in hand 22,500
Cash at bank 35,000
Commission 500
Opening stock 60,000
Purchases 2,50,000
Bad Debts 3,500
8,70,430 8,70,430
Adjustments:
(i) Provision for bad debts @ 5% and further bad debts Rs. 2,000.
(ii) Rent received in advance Rs. 6,000.
(iii) Stock at the end was Rs. 70,000 and Prepaid insurance Rs. 200.
(iv) Depreciation on furniture @ 5%, plant and machinery @ 6%, building @ 7%.

OR
(a) Find out the value of Gross Profit for Vinod & Sons, when:
Total purchase during the year…………………... Rs.12,00,000
Return Outward…………………………………..…...Rs.30,000
Direct Expense………………………………………....Rs.90,000
2/3 of the goods are sold for…………………………Rs.9,15,000
 ULTIMATE BOOK OF ACCOUNTANCY Class 11th

(b) The following are the extracts from the trial balance of M/s Vinod & Sons
as on March 31, 2017
Account title Debit Credit
Rs. Rs.
Opening stock 2,00,000
Purchases 8,10,000
Sales 10,10,000
10,10,000 10,10,000
Adjustment:
Closing Stock cost price Rs.3,00,000 and market value Rs. 3,35,000.

You are required to record that how the above items will appear in the
trading and profit and loss account and balance sheet of M/s Vinod & Sons.

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