RKG INSTITUTE by CA PARAG GUPTA

B - 193, Sector - 52, Noida

CH 1 TO 8 (PYQS)
Class 11 - Accountancy

1. What type of transactions do we record in the books of accounts? [1]

a) Monetary nature b) Political nature

c) Social nature d) Cash nature

2. ________ implies that accounting practices once selected and adopted should be applied consistently year after [1]
year.

a) Accrual b) Consistency

c) Cost d) Going concern

3. How many columns are there in a Ledger (in one side)- [1]

a) Five b) Six

c) Seven d) Four
4. Goods costing Rs. 15,000 were sold for cash at a profit of 20%. By what amount stock account will decrease: [1]

a) Rs.20,500 b) Rs.15,000

c) Rs.25,000 d) Rs.1,500
5. What is the journal entry if goods of ₹ 20,000 are sold for cash to B? [1]

a) None of these b) Cash A/c Dr 20,000

To Goods A/c 20,000

c) Cash A/c Dr 20,000 d) Cash A/c Dr 20,000

To Sales A/c 20,000 To B A/c 20,000

6. Assertion (A): Bookkeeping involves summarising the classified transactions in the form of profit and loss [1]
account and balance sheet.

Reason (R): Bookkeeping is the art of recording in books of accounts, the monetary aspect of commercial or
financial transactions. It is concerned with record keeping maintenance of books of accounts.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

7. Assertion (A): NOP Ltd. purchased machinery of ₹ 20,000 which is supposed to last for 20 years. The [1]
accountant decides to spread the cost of machinery for the next 20 years for calculation of profit and loss.

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 Reason (R): According to the consistency concept, accounting principles and methods should remain consistent
from one year to another.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

8. Assertion (A): If goods worth ₹ 4,000 are sold for ₹ 3,500 at credit, then assets will decrease, liabilities will be [1]
unchanged and capital will decrease.

Reason (R): In case, goods are sold on credit, goods (assets) are decreased and debtors (assets) are increased.
Also if goods are sold at a loss, the capital is reduced.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

9. Assertion (A): Journal keeps a chronological record of all transactions.
[1]
Reason (R): It provides the basis for posting into ledger.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

10. Assertion (A): Journal is the book of original entry or prime entry.
[1]
Reason (R): It records transaction in the order in which they occur.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

11. Fill in the blanks: [10]
(i) External users of accounting information are not ________. (Officers/creditors)
(ii) X Ltd. follows the Written Down Value Method of depreciating machinery year after year due to
________.
(iii) Ind-As are ________ based acounting standards.
(iv) The natural of capital is a ________.
(v) Assets held for continued use in the business and not meant for resale are termed as ________.
(vi) ________ = Liabilities + Capital
(vii) These are the ________ (accounts/ profit) of expenses or losses incurred in carrying the business.
(viii) The reduction in expenses is recorded on the ________ side.
(ix) Journal is a book of ________.
(x) Sale of goods to X for Cash will be Credited to ________ A/c.
12. Confidence and trust that the reported information is a reasonable representation of the actual items and events, [1]
that have occurred, indicates which qualitative characteristic of accounting information.
13. The definition of accounting brings to light various attributes of accounting. In context to this, define accounting [4]
and discuss any three attributes of accounting.
14. State the meaning of the accounting period concept? [1]
15. Why is ledger called the book of final entry? [3]

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16. Give two items of internal liabilities. [1]
17. Give two examples of fictitious assets. [1]
18. Explain and give example of each of the following accounting terms: [3]
i. Expenses
ii. Drawings
iii. Gain
19. If total assets of a business are Rs 2,60,000 and net worth is Rs 1,60,000. Calculate the creditors. [1]
20. Prepare accounting equation from the following: [3]
i. Started business with cash ₹50,000 and goods ₹30,000.
ii. Purchased goods for cash ₹30,000 and on credit from Karan ₹20,000.
iii. Goods costing ₹40,000 were sold for ₹55,000 for cash.
iv. Withdrew cash for personal use ₹10,000.
v. Rent outstanding ₹2,000.
21. Prepare Accounting Equation from the following: [4]
i. Started business with Cash ₹2,00,000.
ii. Purchased goods for Cash ₹60,000 and on Credit ₹1,50,000.
iii. Sold goods for Cash costing ₹40,000 at a profit of 20% and on Credit costing ₹72,000 at a profit of 25%.
iv. Paid for Rent ₹5,000.
22. From the following transactions, state the nature of account and state which account will be debited and which [3]
account credited:

(i) Manu started business with cash 1,00,000

(ii) He purchased furniture for business 20,000

(iii) Purchase goods on credit from Anshul 6,000

(iv) Paid to his creditor, Anshul 2,000

(v) Paid salary to his clerk 1,000

(vi) Paid rent 500

(vii) Received interest 200

23. Explain any two Source Documents. [3]

24. Journalise the following transactions: [3]
i. Goods for ₹ 50,000 were destroyed by fire.
ii. Goods worth ₹ 18,000 were distributed as free samples and ₹ 20,000 were given away as a charity in cash.
iii. Goods worth ₹ 25,000 and cash ₹ 40,000 were taken away by the proprietor for his personal use.
iv. Goods worth ₹ 20,000 and cash₹ 5,000 were given away as charity.
v. Cash ₹ 1,00,000 were stolen from the Iron Safe of the trader.
25. Journalise the following transactions: [6]

2017 Amount (₹)

Dec.01 Hema started business with cash 1,00,000

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 Dec.02 Open a bank account with SBI 30,000

Dec.04 Purchased goods from Ashu 20,000

Dec.06 Sold goods to Rahul for cash 15,000

Dec.10 Bought goods from Tara for cash 40,000

Dec.13 Sold goods to Suman 20,000

Dec.16 Received cheque from Suman 19,500

Discount allowed 500

Dec.20 Cheque given to Ashu on account 10,000

Dec.22 Rent paid by cheque 2,000

Dec.23 Deposited into bank 16,000

Dec.25 Machine purchased from Parigya 10,000

Dec.26 Trade expenses 2,000

Dec.28 Cheque issued to Parigya 10,000

Dec.29 Paid telephone expenses by cheque 1,200

Dec.31 Paid salary 4,500

26. Journalise the following transactions [8]

i. Paid rent of building Rs 30,000 half of the building is used by the proprietor for residential use.
ii. Paid fire insurance of the above building in advance Rs2,500.
iii. Paid life insurance premium Rs 5,000.
iv. Paid income-tax Rs 7,500.
v. Salary due to clerk Rs 1,250.
vi. Charge depreciation on furniture @ 10% per annum for Rs month (furniture Rs30,000)
vii. Provide interest on capital 1,50,000) at 15% per annum for 6 months.
viii. Charge interest on drawing (Rs 25,000) at 18% per annum for 6 months.

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