KENDRIYA VIDYALAYA SANGATHAN, MUMBAI REGION

SAMPLE QUESTION PAPER 2022-23

CLASS XI
ACCOUNTANCY (055)
Time-3 hours. Maximum M. 80

General Instructions:
1. This question paper comprises two parts- A and B. There are 12 questions
in the question paper. All questions are compulsory.
2. Q. No. 1 to 16 and Q.no 26 to 29 are MCQs based caring 1 mark each.
3. Q. No. 17 to 20 and Q.no 30 and 31 are carrying 3 marks each.
4. Q. No. 21 and 22 and Q.no 32 and 33 are carrying 4 marks each.
5. Q. No. 23 and 26 and Q.no 34 are carrying 6 marks each.

(PART A-FINANCIAL ACCOUNTING-I)

1.Which Qualitative characteristics of accounting information is reflected when

accounting information is clearly presented? (1)
a. Reliability
b. Relevance
c. Comparability
d. Understandability

2. A concept that a business enterprise will not be sold or liquidated in the near future is
known as. (1)
a. Going Concern
b. Economic Entity
c. Monetary Unit
d. None of these

3. According to ___________only transactions that can be measured in money terms

are recorded in accounts. (1)

OR

A firm earns a revenue of Rs. 21000, and the Expenses to earn this revenue are rs.
15000. Calculate its income.

4. When a firm maintains a Two column Cash book, it doesn't maintain it. (1)
a. Purchase book
b. Journal proper
c. Sales Book
d. Bank and cash account in the Ledger

OR
Balance of petty cash book is
a. an expense
b. a profit
c. an Asset
d. Income

5. Depreciation is charged on. (1)

a. Current Assets
b. Fixed Assets
c. Total Assets
d. Fictitious Assets

6. A provision is. (1)

a. An appropriation of profits
b. A charge against profit
c. Can be (a) and (b)
d. None of these

7. Wages paid to a worker for making additions to machinery amounting to Rs.

5,000 were debited to the wages account. Identify the type of error. (1)

8. A Bank Reconciliation statement is prepared. (1)

a. To know the payments made through cheques
b. To know the errors in the bank pass book.
c. To compare the cash book balance with passbook balance and ascertain the
differences.
d. All of the above.
Or
What records are necessary for preparing a Bank Reconciliation Statement?

9. What are the taxes levied on an intra- State Supply? (1)

a. CGST
b. SGST
c. CGST and SGST
d. IGST

10. If expenses paid during the year are Rs. 30,000 including Rs. 5,000 as prepaid
expenses for next year and Rs. 2,000 outstanding expenses of previous year. The
amount to be recorded as current year expenses following the cash basis of accounting
will be —--------------. (1)

11. Invoice is a source voucher for sellers of goods—-----. (1)

a. For cash sales
b. For credit purchases
c. For credit sale
d. For cash purchases
12. Lalit who owed Rs. 20,000 became insolvent. 70 paise in a rupee was received from
his estate. Bad Debts Account will be debited by. (1)
a. Rs. 20,000
b. Rs. 10,000
c. Rs. 6,000
d. Rs. 14,000

13. The cost of the asset is 60000 and depreciated at 12% p.a. using the written down
method, at the end of three years, it will have a net book value of—----- (1)
a. 40,888.32
b. 43888.90
c. 45322
d. 40000

14. Unfavorable Balance means. (1)

a. Credit balance in the cash book
b. Credit balance in Bank statement
c. Debit balance in cash book
d. Debit balance in petty cash book

15. Which of the following items is not included in the Cash book? (1)
a. Purchase of Rs. 10,000
b. Sales of rs.5000
c. Received cash for Salman Rs. 2000
d. Credit sales of Rs. 22000

Or

Ravi has purchased goods for cash from Sameer for Rs. 50,000. It will be recorded
in (1)
a. Cash Book
b. Journal proper
c. Both Cash and Journal Book
d. Purchase book

16. Disagreement of trial Balance includes which errors? (1)

a. Errors of omission
b. Wrongly totaling of subsidiary books
c. Compensation errors
d. a and c only

17. Ram and Shyam are two friends who both have just attended their first class of
accountancy. The friends were intrigued by the different branches of accounting and
their widespread application. Ram personally liked the branch of accounting in which
fund flow statement and budgetary control is used and that branch helps in planning
and controlling of operations. As the concept of accounting was further explored, they
began discussing the different users of accounting. Ram said that he finds it interesting
that even the employees demand information relating to business. Shyam said he finds
more interesting the fact that even competitors want information on the relative
strengths and weaknesses of the enterprise and for making comparisons, Shyam
further said that even accounting helps owners to compare one year’s costs, expenses,
and sales with those of other years. However, they were quite shocked by the fact that
the management-worker relations were not taken into consideration in the accounting.
Meanwhile, Ram and Shyam had an argument at the end of the discussion. Ram was
saying that accounting is an art whereas Shyam was saying that accounting is a
science. Their teacher came in and said something to them which made them stop the
argument. (3)

Q1. What might their teacher have said to solve their argument?
1.Ram, please understand, Shetty is correct in this situation
(b) Shyam, please understand, Ram is correct In this situation.
(c) Both are correct
(d) None is correct
2. Shyam talked about which type of users of accounting?
(a) Internal users
(b) External users
(c) Both (a) and (b)
(d) None of these.
3. Which limitation of accounting is being talked about by them?
(a) Influenced by personal judgement
(b) Omission of qualitative information.
(c) Incomplete information
(d) Based on historical costs

18.Why is it necessary for accountants to assume that the business entity will remain a
going concern? (3)

Or

Explain any two of the following.

a. Going Concern concept
b. Accounting Period concept
c. Dual Aspect

19. From the following information, draw up a trial Balance in the books of Haridas as
on 31st March 2022. (3)

Capital Rs. 1,40,000; Purchases Rs. 36,000; Discount Allowed Rs. 1200; Carriage
Inwards RS. 11000; Sales Rs. 60,000; Return Inward Rs. 300; Reuters Outward Rs.
700; Plant and Machinery Rs. 1,15,300; Stock on 1st April, 2021 Rs. 16,700; Sundry
Debtors Rs. 20,200; Sundry Creditors Rs. 12,000; Investments Rs. 3600; Commission
Received Rs. 1800; Cash in hand Rs. 100; Cash at Bank Rs. 10,100 and Stock on 31st
March 2022 (not adjusted) Rs. 20,500.

20.Distinguish between Revenue Reserve and Capital Reserve. (3)

21.. Explain the qualitative characteristics of Accounting Information. (4)

22. M/s Ram & Sons of Kerala who are dealers in readymade garments, purchased the
following: (6)
2021
May 1. Purchased from Fashion House, Mumbai (Maharashtra): -
100 Shirts @ Rs. 1800 per shirt
75 T shirt@ Rs. 1600 per piece
Less: Trade Discount 20%and freight charges payable Rs 10,000
May 10 Purchased from Apollo Garments, Kerala: -
65 Shirts @ Rs. 2000 per piece
80 T shirt@ Rs. 1500 per piece
Less: Trade Discount 20%and freight charges payable rs 2000
May 15 Purchased from Garden Furniture House, Kolkata: -
12 chairs @ rs.5000 per chair

25 May. Purchased from Amitabh Shirts, New Delhi for cash: -

120 shirts @rs. 1500 per shirt
Prepare a Purchase book assuming CGST @ 9% and SGST @9%.

23. From the following particulars, ascertain the Bank Balance as per Pass Book as on
31st March 2021. (6)
1. The bank Balance as per Cash Book on 31st March 2021 Rs.40,000
2. Cheques issued but not encashed up to 31st March 2021 amounted to
Rs.10,000
3. Cheques paid into the bank but not cleared up to 31st March 2021 amounted to
Rs.15,000
4. Interest on Investments collected by the bank but not entered in the Cash Book
Rs.500.
5. Cheques deposited in the bank but not entered in Cash Book Rs.12,500
6. Bank charges debited in Pass book but not entered in Cash Book Rs.100.

24. On 1st April, 2019 Green Ltd. purchased machinery for Rs. 1,20,000 and on 31th
 September, 2020, it acquired additional machinery at a cost of Rs. 20,000. On 30th
June, 2021, one of the original machines which had cost Rs. 5,000 was found to
have become obsolete and was sold as scrap for Rs. 500. It was replaced on that
date by a new machine costing Rs. 8,000. Depreciation is to be provided @ 15% p.a.
On the written down value. Accounts are closed on 31st March every year. Show
Machinery Account for the first three years. (6)
Or
On April 01,2021 following balances appeared in the books of M/s Kanishka Traders:
Furniture Account Rs. 50,000. Provision for depreciation on furniture Rs. 22000. On
October 01, 2021 a part of furniture purchased for Rs. 20,000 in April 01, 2017 was sold
for Rs. 5000. On the same date a new furniture costing Rs. 25,000 was purchased. The
deprecation was provided @ 10% p.a. on original cost of the asset and no depreciation
was charged on the asset in the year of sale. Prepare Furniture Account and provision
for depreciation account for the year ending March 31, 2022.

25. Give the journal entries to rectify the following errors using Suspense Account,
where necessary: (6)

1. Goods of the value of Rs. 2000 returned by Mr. Gupta were entered in the sales
book and posted therefrom to the credit of his account.
2. Goods worth Rs. 1500 bought by the proprietor for his personal use without any
payment benign made as yet, was wrongly entered in the purchase book.
3. A cheque for Rs. 500 received from Ashok was dishonored and has been posted
to the debit of Sales Return Account.
4. The total of one page of the sales book was carried forward to the next page as
Rs. 680 instead of Rs. 860.
5. An item of Rs. 500 relating to Prepaid Insurance Account was omitted to be
brought forward from the previous year’s books.

26. Match the items given under ‘A’ with the correct items under ‘B’ (1)
Column A Column B

I. Closing stock is credited to (a) Trial balance

II. Accuracy of book of account is tested by (b) Trading

account

III. On returning the goods to seller, the buyer sends (c) Credit note
 IV. The financial position is determined by (d) Balance sheet

V. On receiving the returned goods from the buyer, the seller (e) Debit note
sends

a. I- B, II- D, III- A, IV-C, V- E

b. I- C, II- D, III- B, IV-A, V- E
c. I- B, II- A, III- D, IV-C, V-E
d. I- B, II- A, III- E, IV-D, V-C

27. Choose the correct chronological order of ascertainment of the following profits from
the profit and loss account: (1)
(a) Operating Profit, Net Profit, Gross Profit
(b) Operating Profit, Gross Profit, Net Profit
(c) Gross Profit, Operating Profit, Net Profit
(d) Gross Profit, Net Profit, Operating Profit

28. Which type of expenses out of the following are shown in Trading Account? (1)
a. Direct Expenses
b. Indirect Expenses
c. Opening Expenses
d. Direct and Indirect Expenses

29. What is meant by Revenue Expenditure? (1)

30. Why is Accrued income transferred to the credit of profit and loss
account and shown as a current asset in the Balance Sheet? (3)

31. Why is it necessary to pass adjusting entries when final accounts

are prepared? (3)

32. State the importance of Financial Statements. (Any 4) (4)

Or

Write brief notes on :-

Accrued Income
Prepaid expenses
33. Calculate Gross profit when Total Purchases during the year are rs.8,00,000; Return
Outward Rs. 20,000; Direct Expenses rs.60,000 and ⅔ rd of the goods are sold for Rs.
6,10,000. (4)
Or
Give the journal entries for the following adjustments:
(a) Outstanding salary at ₹ 3,500.
(b) Rent unpaid for one month at ₹ 6,000 per annum.
(c) Insurance prepaid for a quarter at ₹ 16,000 per annum.
(d) Purchase of furniture costing ₹ 7,000 entered in the purchase book.

34.Prepare a trading and profit and loss account of M/s Green Club Ltd. for the year
ending March 31, 2021, from the following figures taken from their trial balance: (6)
Account Title Amount Account Title Amount
₹ ₹

Opening stock 35,000 Sales 2,50,000

Purchases 1,25,000 Purchase return 6,000

Return inwards 25,000 Creditors 10,000

Postage and telegram 600 Bills payable 20,000

Salary 12,300 Discount 1,000

Wages 3,000 Provision for bad debts 4,500

Rent and rates 1,000 Interest received 5,400

Packing and transport 500 Capital 75,000

General expense 400

Insurance 4,000
 Debtors 50,000

Cash in hand 20,000

Cash at bank 40,000

Machinery 20,000

Lighting and heating 5,000

Discount 3,500

Bad debts 3,500

Investment 23,100

3,71,900 3,71,900

Adjustments
1. Depreciation charged on machinery @ 5% p.a.
2. Further, bad debts ₹ 1,500, discount on debtors @ 5% and make a provision on
debtors @ 6%.
3. Wages prepaid ₹ 1,000.
4. Interest on investment @ 5% p.a.
5. Closing stock 10,000.