DELHI PUBLIC SCHOOL HARNI

Academic Session 2022 – 2023

Practice Worksheet – 1
Class: XI (Commerce) Subject: Accountancy

Chapter 2- Basic Accounting Terms

Q1. Choose the most appropriate alternative from the options given bellow:

1. During the accounting year, Karan realized that his business requires further investment of ₹5,00,000.
The amount so invested will be termed as ______________.
a. Asset
b. Investment
c. Capital
d. Drawing
2. Which of the following is a liability?
a. Money lent to friend.
b. Cash withdrawn from business by the owner.
c. Goods purchased on credit.
d. Sale of goods on credit.
3. Read the following statements to identify the correct one/s.
i. Assets can be tangible as well as intangible.
ii. Non- current assets that are purchased as investments or to facilitate business operations
iii. Trademarks, copyright and patents are classified as current assets.
a. ii and iii are correct.
b. i and iii are correct.
c. i and ii are correct.
d. i, ii and iii are correct.
4. Winning a court case can be an example of __________.
a. Revenue
b. Profit
c. Gain
d. Income
5. Which one is a capital transaction?
a. Purchase of goods
b. Payment of wages
c. Sales of goods
d. Purchase of machinery

Q2. Fill in the blanks:

1. Amount due from Ajay was Rs. 10,000, being insolvent, he paid Rs. 2500 only. Bad debts of Ajay in
terms of percentage will be ________.
2. Nitant sold goods of ₹20,000 to Kareem on a condition to provide 10% discount if the payment is made
by him with in 10 days. Such as discount is termed as __________.
3. Prepaid expenses are written on the __________ side of the Balance sheet.
 4. Opening Stock as on 1st April 2020 was ₹90,000, purchases made during the year are ₹35,000 of which
goods of ₹4,000 were returned. The year goods sold for cash were ₹50,000 and on credit were ₹20,000.
The closing stock on 31st March 2021 is __________.
5. Sunita started business with cash Rs. 18,00,000, she procured loan of ₹10,00,000 and total Assets were
₹28,00,000. In this case, the amount of internal liability is _______________.

Q3. Classify the following into:

(a) Assets
(b) Liabilities
(c) Revenues
(d) Expenses

1. Furniture
2. Stock
3. Interest on capital
4. Interest on drawings
5. Creditors
6. Bill receivable
7. Interest received on Loan
8. Bank Overdraft
9. Stationary expense
10. Outstanding Salary

Q4. Sharman started trading business of shoes with an initial capital of ₹25,00,000 and borrowed a loan of
₹5,00,000 from bank at an interest of 10% p.a. With this sum of money, he bought a shop of ₹8,00,000;
purchased furniture of ₹2,00,000. Sharman further purchased shoes of ₹10,00,000 from Rajeev and made a paid
₹6,00,000. He sold kids and ladies shoes of ₹7,00,000 for cash, while men’s shoes ₹2,00,000 on credit to
Krishna.

He employed a salesman and an accountant for smooth functioning of the business. The salary paid to them was
₹10,000 each. He lost goods of ₹50,000 due to theft in his shop. While, he earned ₹80,000 as commission from
his vendor. Due to increased business operations, Sherman further invested ₹2,00,000. The interest on bank loan
is due but yet not paid.

Answer the following questions on the basis of information given above:

1. What is the total capital?

2. Who is the debtor what is the amount due?
3. What is the total revenue?
4. Mention non-current assets.
5. What is the total external liability?
6. What is the total expense incurred?

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