Nikku Sir Commerce Classes

City Avenue, in front of anupam garden, GE road

KPS- DUNDA SAMPLE PAPER

Class 11 - Accountancy
Time Allowed: 2 hours and 57 minutes
Maximum Marks: 80

1-MARKS
1. Which of these concepts is a process of giving and take with the event as the end result of it? [1]

a) Measurement b) Financial information

c) Communication d) Transactions
2. Accounting function is ________ in nature. [1]

a) routine and analytical b) analytical

c) routine d) clerical
3. Use of common unit of measurement and common format of reporting promotes: [1]

a) Reliability b) Relevance

c) Understandability d) Comparability
4. The art of recording all business transactions in a systematic manner in a set of books is called: [1]

a) Book-keeping b) Accounting

c) Ledger d) None of these

5. Which one is not the step of accounting [1]

a) Window Dressing b) Recording in the book of accounts

c) Interpretation d) Classifying the recorded entries

6. Which of these are example(s) of short-term creditors? [1]

a) None of these b) Suppliers of goods and services on credit

c) Both financial institutions and suppliers of d) Financial institutions

goods and services on credit
7. The positional statement refers to [1]

a) Ledger b) Trading account

c) Balance sheet d) Profit and loss account

8. The objective of financial accounting is to ascertain ________ for a particular period. [1]

a) Assets only b) Accounts

c) Profit/Loss d) Debt only

9. Goodwill is a/an: [1]

a) current asset b) tangible asset

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 c) intangible asset d) fictitious asset
10. Revenue from Operations refers to: [1]
A. Revenue earned from activities that are not Operating Activities
B. Revenue earned from non-financial activities
C. Revenue earned from Operating Activities

a) Only B is correct b) Only A is correct

c) Only C is correct d) All of these

11. The expense that has been incurred but has not been paid is called: [1]

a) Prepaid expenses b) Loss

c) Revenue d) Outstanding expenses

12. Trade Discount allowed: [1]

a) none of these b) is not shown separately in the books of

account

c) is shown separately in the books of account d) shown either separately or deducted from
purchase cost
13. Goods taken by the proprietor for personal use are: [1]

a) drawings b) purchase

c) none of these d) sale

14. Out of the following assets which one is not an intangible asset? [1]

a) Investments b) Patents

c) Goodwill d) Trademark
15. Which of the following is a liability? [1]

a) Rent Payable b) Stock

c) Interest Received d) Furniture

16. Which of the following is not a type of personal account? [1]

a) Ram's A/c b) Investment A/c

c) SBI Bank A/c d) Atul's Capital A/c

17. Decrease in ____ is debited [1]

a) Creditor b) Plant and machinery

c) Debtor d) Goodwill
18. Trade Discount allowed is deducted from the gross sales. Sales is recorded in the books of account at: [1]

a) Gross Sales b) Trade Discount

c) Net Sales Invoice d) None of these

19. Goods costing Rs 20,000 is sold at a profit of 20% on cost and trade discount is allowed @ 10% and cash [1]
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?

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 a) Rs 11,880 b) Rs 9,720

c) Rs 10,820 d) Rs 10,800
20. The page number of the ledger account where the posting has been made from the journal, is recorded in the [1]
________ column of the journal.

a) debit b) date

c) ledger folio d) credit

21. If the Owner's Equity is 20,000 and Creditors Equity is 40,000. What will be the assets of the firm? [1]

a) None of these b) 60000

c) 40000 d) 20000
22. There will be ________ by same amount, when a land is purchased by paying the amount from bank account. [1]

a) Increase in asset, increase in liabilities b) Decrease in asset, decrease in liabilities

c) Increase: in asset, decrease in liabilities d) Decrease in one asset, increase in another

asset
23. An increase in provision for bad debt will [1]

a) Decrease liabilities b) Increase Assets

c) Increase net income d) Increase liabilities

24. If a cash book is prepared then there is no need to prepare the _______ [1]

a) Sales (journal) book b) Journal Proper

c) Purchases (journal) book d) Bank and cash account

25. The amount paid to the petty cashier at the beginning of a period is known as ________ amount. [1]

a) Imprest b) Cash

c) Debit d) None of these

26. Cash Book records: [1]

a) cash and credit sale of goods b) all cash receipts and payments

c) only cash receipts d) none of these

27. Deposit of cash in the bank is recorded in: [1]

a) The debit of Bank Column and Credit of b) The debit of Bank Column and also Credit
Cash Column of Bank Column

c) The debit of Cash Column and also Credit d) The debit of Cash Column and Credit of
of Cash Column Bank Column
28. Balance in the Petty Cash Book is [1]

a) an asset b) a profit

c) none of these d) an expense

29. Goods taken away by the proprietor from the business for his personal use will be recorded in: [1]

a) Sales Book b) Purchases Book

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 c) Purchases Return Book d) Journal Proper
30. The total of the Sales Book is posted to [1]

a) credit of the Sales Account b) credit of Customers' Accounts.

c) credit of the Capital Account d) credit of the Purchases Account

31. Calculate Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for [1]
November 2010:

(a) M/s Gupta Traders returned the goods Rs.1,500

(b) Goods returned from M/s Harish Traders Rs.800

(c) M/s Rahul Traders returned the goods not as per specifications amounting to Rs. 1200

(d) Goods returned from Sushil Traders Rs.1,000. Options are as follows

a) Rs.5500 b) Rs.4500

c) Rs.4000 d) Rs.5000
32. Which of the following is not an advantage of a subsidiary book? [1]

a) Division of work b) Leads to specialization

c) Quick availability of required information d) Difficult to maintain

33. Cash book balance was ₹ 1,790 (Dr.). When compared with the bank statement, it was identified that [1]
unpresented cheques were ₹ 1,040 and deposits not credited were ₹ 820. Balance of the bank statement will

a) ₹ 2,010 (Cr.) b) ₹ 70 (Dr.)

c) ₹ 1,570 (Dr.) d) ₹ 3,650 (Cr.)

34. Find out the bank balance as per cash book if overdraft as per book is ₹10,000 and cheques deposited in the [1]
bank but not credited are for ₹4,000.

a) ₹14,000 favourable balance b) ₹6,000 overdraft

c) ₹14,000 overdraft d) ₹6,000 favourable balance

35. When extract of Cash Book and Pass Book are given for common period, only ________ items are considered [1]
for preparation of Bank Reconciliation Statement.

a) uncommon b) favourable

c) common d) unfavourable
36. Which of the following transactions will result in a higher balance in the bank column of Cash Book in [1]
comparison to Pass Book?

a) Cheques paid into the bank for collection b) Cheques issued but not presented for
but not yet credited payment

c) Bank charges entered twice in Cash Book d) Interest allowed by the bank
37. Trial Balance shows: [1]

a) only debit balance b) only credit balance

c) both debit and credit balances d) None of these

38. The account is not entered in trial balance which shows: [1]

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 a) There is no as such account b) Credit balance

c) Debit balance d) No balance

39. Errors Committed by omitting entries in the Journal book is called: [1]

a) None of these b) Error of commission

c) Error of principle d) Error of omission

40. Trial Balance is prepared to locate: [1]

a) Errors of Principle b) None of these

c) Compensating Errors d) Errors of omission

2- MARKS
41. What are the areas in which creditors are interested in the financial statements? [2]
42. What is the basic accounting equation? [2]
43. Distinguish between Sales Book and Sales Account. [2]
3-MARKS
44. Classify the following into (i) Assets (ii) Liabilities (iii) Expenses and (iv) Revenues
[3]
Sales, Bank balance, Debtors, Bank Overdraft, Creditors, Salary to the manager, Discount to debtors, Cost of
goods sold
45. Journalise the following transactions in the Journal of Navin Gupta & Sons.: [3]
i. Out of Insurance premium paid this year, ₹ 15,000 is related to next year.
ii. Credit purchases from Ram & Co. for ₹ 50,000. The cash discount will be received at 5% on payment of the
bill within 10 days.
iii. Cash paid to Ram & Co. and discount availed of.
iv. Paid Income Tax ₹ 20,000 by cheque.
v. Goods costing ₹ 2,00,000 sold for cash at a profit of 10%.
vi. Purchased iron safe for ₹ 2,00,000, filing cabinet for ₹ 50,000 and Computer for ₹ 1,00,000.
46. Why opening entries are passed? [3]
47. State the need for sub-division in a journal? [3]
4-MARKS
48. A commenced his cloth business on 1st April 2009 with a capital of Rs 60,000. On 31st March 2010, his assets [4]
were worth Rs 1,00,000 and liabilities of Rs. 20,000. Find out his closing capital and profits earned during the
year.
49. As an accountant of a company, you are disappointed to learn that the totals in your new trial balance are not [4]
equal. After going through careful analysis, you have discovered only one error. Specifically, the balance of the
Office Equipment account has a debit balance of ₹ 15,600 on the trial balance. However, you have figured out
that a correctly recorded credit purchase of Pendrive for ₹ 3,500 was posted from the journal to the ledger with a
₹ 3,500 debit to Office Equipment and another ₹ 3,500 debits to creditors accounts. Answer each of the
following questions and present the amount of any misstatement:
i. Is the balance of the office equipment account overstated, understated, or correctly stated in the trial balance?
ii. Is the balance of the creditor's account overstated, understated, or correctly stated in the trial balance?
iii. Is the debit column total of the trial balance overstated, understated, or correctly stated?
iv. Is the credit column total of the trial balance overstated, understated, or correctly stated?

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 v. If the debit column total of the trial balance is ₹ 2,40,000 before correcting the error, what is the total of the
credit column?
50. Following balances were extracted from the books of Shri S. Pal on 31st March, 2019. You are required to [4]
prepare a Trial Balance. The amount required to balance should be entered as capital.

₹ ₹

Purchases 1,70,000 Drawings 7,700

Stock (1st April 2018) 24,000 Returns Inward 3,500

Sales 1,05,000 Premises 5,28,000

Sundry Debtors 23,800 Sundry Creditors 16,100

Discount Received 3,500 Discount Allowed 2,800

Carriage Outwards 700 Carriage Inwards 1,400

Cash in Hand 3,500 Cash at Bank 17,500

Machinery 1,24,500 General Expenses 2,100

Provision for Depreciation

24,200 Bad Debts Written off 2,450
on Machinery

Provision for Doubtful

2,380
Debts

5 - MARKS
51. Enter the following transactions in a Two Column Cash Book:
[5]
2017 March 1: Opening balance: Cash ₹12,000 and Bank ₹ 36,000.

2017 March 2: Cashed a cheque for ₹ 15,000 and paid salaries for the month of February in Cash ₹ 12,500

2017 March 4: Direct deposit by Mr. Sunil Seth in our bank account ₹ 3,000. Discount allowed ₹ 100.

2017 March 10: Received from an outstation customer a cheque of ₹ 9,500. Cheque was deposited into the bank
on 12th March. The bank debited ₹20 as collection charges.

2017 March 11: Gobind settled his account of ₹6,000 by cheque of ₹ 5,900. Cheque was deposited into the bank
on 15th March.

2017 March 16: Settled Ravi's Account of ₹ 8,200 after deducting ₹ 200 as discount, by giving a cheque for ₹
6,000 and the balance in cash.

2017 March 17: Withdrawn from Bank ₹ 15,000 and an Office Equipment (Typewriter) was purchased for
₹12, 000 and the balance taken by the owner.

2017 March 18: Sold goods to Sanjay on Credit ₹ 8,000.

2017 March 19: Sanjay returned goods worth ₹ 500 and settled his account by a cheque.

2017 March 22: Bank notifies that Sanjay's cheque has been dishonoured and bank debited ₹20 towards its
charges for this cheque.

2017 March 24: Issued a cheque of ₹ 3,000 to Ashok as advance against our order of furniture worth ₹5, 000.

2017 March 25: Received the amount of returned cheque and bank charges in cash from Sanjay.

2017 March 26: Goods worth ₹ 12,000 were purchased from Shyam Sunder on 15th instant. Its payment was
made today by cheque after deducting 5 % cash discount.

2017 March 28: Paid to Manohar ₹ 8,000 by cheque.

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 2017 March 29: Cash sale to date ₹ 80,000 of which ₹ 60,000 banked.

2017 March 30: Bank collects interest on securities ₹ 300.

2017 March 31: Deposited into bank cash retaining ₹ 10,000.

52. On 31st March, 2013 the bank column of the cash book of Mr. Handsome disclosed an overdraft balance of Rs [5]
20,750. On examining the cash book and bank statement, you find that:
i. Cheques were deposited into bank for Rs 40,000 but of these cheques for Rs 11,500 were cleared and
credited in April, 2013.
ii. Cheques were issued for Rs 18,750 out of which cheques for Rs 15,000 had been presented for payment in
March, 2013.
iii. In March, Mr Handsome had discounted with bank a bill of exchange for Rs 25,000 and had entered this
amount in the cash book but the proceeds credited, as shown by the pass book, amounted to Rs 24,000.
iv. No entry is made in the cash book of an amount of Rs 15,250 directly deposited by a customer in the bank
account.
v. Bank column of the payment side of the cash book was under cast by Rs 2,500.
vi. Payment of insurance premium of Rs 5,000 and receipt of insurance claim of Rs 20,000 appear in the pass
book but not entered in the cash book.
vii. A cheque for Rs 8,750 issued to Mr Fair was omitted to be recorded in the cash book.
viii. A cheque for Rs 7,000 issued to Mr Brown was entered in the cash column of the cash book.
Make the appropriate adjustments in the cash book and prepare a bank reconciliation statement with the
amended cash book balance as on 31st March, 2013.

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