Sample Question Paper for Class XI

Accountancy
Time-3 Hrs. Max. Marks – 90
General Instructions:
1. All questions are compulsory.
2. Show your working notes clearly.

1. In which accounting outstanding expenses are not recorded? [1]

Answer:
Cash Basis of Accounting records a transaction based upon inflow and outflow of cash.
Accordingly, outstanding expenses will not be recorded under this system.

2. What do you mean by Boo-Keeping? [1]

Answer: Book-keeping is concerned with the recording of financial transactions in an orderly
and significant manner.

3. Owner withdraws cash or goods for his personal use, it is known………………..? [1]
Answer:
Withdrawal of cash or goods/services for personal use is regarded as Drawings.

4. What is meant by a Cash Memo? [1]

Answer:
A seller prepares cash memo when goods are sold against cash. Cash memo contains details of
goods sold, quantity and rate of each item.

5. Write any three advantages of Accounting. [3]

Answer: Advantages of accounting:
(1) Provides Complete and Scientific Record: Accounting maintains the Complete record of
financial transactions during the accounting period of an entity. As such, the limitation of
human memory is no handicap because of accounting system.
(2) Information Regarding Performance and Position: Accounting cycle after recording moves
on to prepare final accounts, which reveal how much profit has been earned or loss suffered

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during the period? Under this system balance sheet is also prepared which tells the financial
position of a business on that date.
(3) Enables Comparison of Costs: Expenses, sales and profit etc., of the business related to
current year are compared with previous years and also with other units of the same
trade/industry.

6. Rectify the following errors by passing entries: [3]

i. ₹2,000 received from Ramesh wrongly entered as from Suresh.
ii. The Purchase Book was under cast by ₹300.
iii. Total of Sales return was under cast by ₹500
Answer:
i. Suresh Dr.2,000 and Ramesh Cr.2,000
ii. Purchase Dr.300 and Suspense Cr.300.
iii. Sales Return Dr.500 and Suspense Cr.500.

7. Calculate Closing Stock if [3]

Cash sales 1.5 times of credit sales
Credit sales ₹1, 20,000
Purchases ₹1, 40,000
Rate of Gross Profit 25% on cost.
Answer:
Calculation of Closing Stock:
Cash Sales=1, 20,000 x 1.5= ₹ 1,80,000
Total Sales=1, 20,000+1, 80,000= ₹ 3,00,000
25
Gross Profit=3, 00,000 x 125
= ₹ 60,000

Cost of Goods Sold=3, 00,000 – 60,000= ₹ 2, 40,000

Closing Stock= Cost of Goods Sold – Purchases – Opening Stock
=2, 40,000 – 1, 40,000 – 40,000
= ₹ 60,000.

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8. Explain Going Concern Assumption and Matching Concept. [3]
Answer:
Going Concern Assumption: This assumption assumes that every business has a long and
indefinite life. Since financial statements are prepared on the basis of this assumption, all fixed
assets are shown in the books at their cost ignoring their market value. In fact market value of
a fixed asset has no relevance under this assumption, since these assets are acquired for
continuous use in the business and not to sell them at a profit. It is a gain even though they may
be unsaleable.
Matching Concept: This principle states that it is necessary to charge all the expenses incurred
to earn revenue during the accounting period against that revenue, in order to ascertain the net
income or trading results of the business. The matching principle, which is so closely related
to accrual principle and accounting period principle, helps a businessman in realizing his
objective i.e. in ascertaining the trading results or profit or loss from the business.

9. On 1st January, 2014, A drew a bill on B for Rs.20,000 payable after 3 months. B
accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor,
C. On the due date, the bill was dishonoured and C paid Rs.200 as noting charges. Record
the transactions in the books of A, B and C. [4]
Answer:

A's Journal
2014
1, Jan Bills Receivable A/c Dr. 20000
To B 20000
(Being acceptance received)

11, Jan C Dr. 20000

To Bills Receivable A/c 20000
(Being bill endorsed to C)

4, April B Dr. Dr. 20,200

To C 20,200

(Being bill dishonoured and noting charges)

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 B's Journal
1, Jan A Dr. 20000
To Bills Payable 20000
(Being Acceptance given)

4, April Bills Payable Dr. 20000

Noting charges Dr. 200
To A 20200
(Being bill dishonoured)

C's Journal
2014
11, Jan Bills receivable Dr. 20000
To A 20000
(Being bill received from A)

4, April A Dr. 20200

To Bills Receivable 20000
To Cash A/c 200
(Being bill dishonoured)

10. Prepare Trial Balance from the following information: Bank overdraft ₹28,000,
Cash in hand ₹4,000, Purchase return ₹8,000, Sundry expenses ₹24,000, Sales return
₹16,000, Salaries ₹16,000, Purchases ₹56,000, Sales ₹88,000, Creditors ₹24,000, Debtors
₹16,000, Stock (opening) ₹20,000, Machinery ₹40,000, Capital ₹44,000. [4]
Answer:

Trial Balance

Particulars Dr. Cr.

Bank overdraft 28,000
Cash in hand 4,000
Purchase return 8,000
Sundry expenses 24,000
Sales return 16,000
Salaries 16,000
Purchases 56,000
Sales 88,000
Creditors 24,000
Debtors 16,000
Stock (opening) 20,000
Machinery 40,000
Capital 44,000
Total 192000 192000

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11. Following transactions are of M/s Rakesh Kumar and Sons for the month of April,
2015. Prepare their Purchase Book: [4]

Apr. 5 Purchase on credit from M/s Raj Mills:

100 pieces long cloth @ ₹80
50 pieces shirting @ ₹100
Apr. 8 Purchased for cash form M/s Ambika Mills:
50 pieces muslin @ ₹120
Apr. 15 Purchased on credit from M/s Sagar Mills:
20 pieces coating @ ₹1,000
10 pieces shirting @ ₹90
Purchased on credit from M/s Bharat Typewriters
Apr. 20 Ltd.:
5 Typewriters @ ₹1,400 each
Answer:

Purchases Book
Date Particulars L.F. Details (Rs.) Amount (Rs.)
2015
Apr. 3 M/s Raj Mills:
100 pieces long cloth @ ₹80 8,000
50 pieces shirting @ ₹100 5,000 13,000
Apr. 20 M/s Sagar Mills:
20 pieces coating @ ₹1,000 20,000
10 pieces shirting @ ₹90 900 20,900
Apr. 30 Purchases A/c Dr. 33,900
Purchases for cash are recorded in the cash book and the purchase of a typewriter is not
recorded in the purchases book since the firm does not trade in it.
12. Give any two difference between Reserves and Provisions. [4]
Answer:
Difference between Reserves and Provisions:
Reserves Provisions
A reserve is an appropriation of profit. A provision is a charge on profit.

Main purpose of creating a reserve is to Main purpose of provision is to meet the

strengthen the financial position and to meet known liability or contingency, if the
unforeseen liabilities or losses. amount is not determined.

Profit is not affected because it is debited to Profit is reduced because debited to the
the profit and loss appropriation account. profit and loss account.

It may be invested outside the business. But it is not invested.

It is shown on the liabilities side of Balance It is shown either as a liability under the
Sheet under the ‘Reserves and Surplus’. head ‘Current Liabilities’ or as deduction
from the asset.

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13. Vinod has the following transactions. Show accounting equation for the same:
(i) Commenced business with cash Rs.3,00,000.
(ii) Purchased goods for cash Rs.80,000.
(iii) Purchased machinery on credit Rs.1,25,000.
(iv) Purchased old car for personal use for Rs.1,00,000. [4]
Answer:

Particulars Assets = Liabilities

Cash + Stock + Machinery = Creditors + Capital
(i) Commenced
Business 3,00,000 + 0 + 0 = 0 + 3,00,000
(ii) Purchased goods (80,000) + 80,000 + 0 = 0+0

New Equation 2,20,000 + 80,000 + 0 = 0 + 3,00,000

(iii) Purchased
Machine 0 + 0 + 1,25,000 = 1,25,000 + 0

2,20,000 + 80,000 +
New Equation 1,25,000 = 1,25,000 + 3,00,000
(iv) Purchased car (1,00,000) + 0 + 0 = 0 + (1,00,000)

1,20,000 + 80,000 +
Final Equation 1,25,000 = 1,25,000 + 2,00,000

14. Prepare a Bank Reconciliation Statement on 31 December 2009 for the following
when overdraft as per pass book is ₹20,000: [6]
i. Cheques issued, but not presented for payment ₹25,000.
ii. Interest on bank overdraft charged by the bank, but not entered in cash book ₹1,000.
iii. Cheque deposited but not collected ₹22,000.
iv. Insurance premium ₹500 paid by bank under s standing order but not recorded in
cash book.
Answer:
Bank Reconciliation Statement:

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 Particulars ₹ ₹
Balance as per passbook (overdraft) 20,000
Add: Cheque issued but not presented 25,000
45,000
Less: Insurance premium paid by the bank 500
Cheque deposited but not cleared 22,000
Interest on Overdraft 1,000 23,500
Balance as per cash book (overdraft) 21,500

15. A company purchased on 1st July, 2015 machinery costing ₹30,000. It further
purchased machinery on 1st January, 2016 costing ₹20,000 and on 1st October, 2016
costing ₹10,000. On 1st April, 2017, one-third of the machinery installed on 1st July,
2015 became obsolete and was sold for ₹3,000.
The company follows financial year as accounting year.
Show how the Machinery Account would appear in the books of company if
depreciation is charged @10% p.a. on Written Down Value Method. [8]
Answer:
Machinery Account

Date Particulars L.F Amount Date Particulars L.F Amount

015 2016
By
To Bank A/c 31. Depreciation
1. July M I (2/3) 20000 Mar A/c
To Bank A/c
1. July M I (1/3) 10000 30000 M I (2/3) 1500
M I (1/3) 750
M II (3
2016 months) 500 2750
To Bank A/c
1. Jan M II 20000
31. By Balance
March c/d
M I (2/3) 18500
M I (1/3) 9250
M II 19500 47250
50000 50000

2016 2017
By
To Balance 31. Depreciation
1.April b/d Mar A/c
M I (2/3) 18500 M I (2/3) 1850
M I (1/3) 9250 M I (1/3) 925
M II (3
months) 19500 47250 M II 1950

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 M III 500 5225
To Bank A/c
1. Oct M III 10000
By Balance
c/d
M I (2/3) 16650
M I (1/3) 8325
M II 17550
M III 9500 52025
57250 57250

2017 2017
To Balance
1.April B/d 1.April By Bank A/c
M I (2/3) 16650 M I (1/3) 3000
By Profit and
M I (1/3) 8325 1.April Loss A/c 5325
M II 17550
M III 9500 52025 2018
By
31. Depreciation
Mar A/c
M I (2/3) 1665
M II 1755
M III 950 4370

By Balance
c/d
M I (2/3) 14985
M II 15795
M III 8550 39330

52025 52025

Working Note:
Calculation of Profit or Loss on Sale of Plant I
(1/3)

Particulars
Book Value of Plant I (1/3) as on Apr
01,2017 8,325
Less: Sale Value -3,000
Loss on Sale 5,325

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16. Give one advantage of Single Entry System. [1]
Answer: Single entry system is less expensive when it is compared to doubt entry system of
book keeping.

17. What is meant by hardware component of a computer? [1]

Hardware is important component of a computer system which can be seen or touched for
example; Monitor, CPU, Mouse and keyboard etc.

18. Justify, whether books maintained by the single entry system is reliable as the books
maintained by the double entry system. [3]
Answer: Double entry system of accounting records both aspects of a transaction. Hence it is
able to provide accurate information as to profit, liabilities and assets. While single entry
system of accounting does not record all transactions in certain cases. Sometimes it records
both aspects but still only in some aspect. So, single entry system is less reliable than double
entry system of book keeping.

19. Opening capital ₹1,40,000, profit for the year ₹40,000, drawings ₹14,000. During the
year proprietor sold ornaments of his wife for ₹40,000 and invested the same in the
business. Calculate closing capital. [3]
Answer:
Closing capital = 1,40,000 + 40,000 + 40,000 – 14,000 = 2,06,000

20. Following is the extract from a Trial Balance: [4]

Head of Accounts Dr. Cr.

Machinery A/c 2,00,000
Provision for Depreciation on
Machinery A/c 80000
Depreciation on Machinery 20,000
Furniture A/c 24,000
Depreciation on Furniture 3,000
Show necessary extracts from the Profit and Loss Account and the balance Sheet.
Answer:
Profit and Loss A/c
(Extract)
Particulars Rs. Particulars Rs.
To Depreciation on
Machinery 20,000
Furniture 3,000 23,000

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 Balance Sheet (Extract)
Liabilities Rs. Assets Rs.
Machinery 2,00,000
Less: Provision for
Depreciation 80,000 1,20,000
Furniture 24,000

21. Vinod maintains his books of Accounts on Single entry system. His books provide
the following information.

Particulars April 1, 2015 March 31, 2016

Furniture 200 200
Stock 2800 3800
Debtors 2100 3400
Cash 150 200
Creditors 1750 1900
Bills Receivables - 300
Loan given - 500
Investments - 100

His drawings were Rs.500. Prepare the Statement showing profit for the year. (6)
Answer:

Statement of Affairs (1 April 2015)

Liabilities Amount Assets Amount
Creditors 1,750 Cash 150
Capital (Bal. fig) 3,500 Debtors 2,100
Stock 2,800
Furniture 200
5,250 5,250

Statement of Affairs (1 April 2016)

Liabilities Amount Assets Amount
Creditors 1,900 Cash 200
Capital (Bal.
fig) 7,500 Bill Receivables 300
Debtors 3,400
Stock 3,800
Furniture 200
Investment 1,000
Loan 500
9,400 9400

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22. Compare computerized accounting with the manual accounting system. [6]
Answer:
Manual Vs Computerized Accounting System
Manual
1. Accounting principles are used to
identify the transactions.
2. Transactions are recorded in the books
of original entries and balancing of
various accounts is done.
3. Financial statements are prepared at the
end of the accounting period by using the
trial balance and additional information.
Computerized
1. Identification process is same as
manual accounting.
2. Transactions are stored in a database
systematically which adjust the data
automatically in a systematic manner and
there is no need for separate ledger
accounts.
3. Financial statements are prepared
systematically and opening balance for
next accounting period is available in
database system.

23. Rupesh started a firm on 1st April, 2015 with a capital of ₹10,000. On 1st July 2016
he borrowed from his son Mr. Rohit a sum of ₹4000 @ 9% p.a. (interest not yet paid)
for business and introduces a further capital of his own amounted to ₹1500. On 31st
March, 2016 his position was as follows Cash ₹ 600, stock ₹9,400, debtors ₹7000 and
creditors ₹6000. Ascertain his profit or loss taking into account ₹2000 for his drawings
during the year. [8]

Answer: Statement of Affairs

as on 31st March 2016
Liabilities Rs. Assets Rs.
Creditors 6000 cash 600
Mr. Rohit’s Loan 4000 Stock 9400
Interest on loan 270 4270 debtors 7000
Capital (Balancing Figure) 6730
17000 17000

Statement of Profit or Loss

for the year ended 31st March
2016
Particulars
Capital at the end 6,730
Less: Capital introduced during
the year 1,500
5,230
Add: Drawings 2,000
Adjusted Capital at the end 7,230
Less: Capital in the beginning 10,000
Net Loss for the year 2,770

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24. Prepare final accounts for the year 31.03.2017. [8]
Dr. Cr.
Particulars ₹ ₹

Furniture 6,400
Motor vehicles 62,500
Building 75,000

Capital 1,25,000
Bad debts 1,250
Provision for d/d 2,000
Debtors / Creditors 38,000 25,000
Stock 34,600
Purchases / Sales 54,750 1,54,500
Bank O/D 28,500
Returns 2,000 1,250
Advertisements 4,500
Interest 1,180
Commission 3,750
Cash 6,500
Taxes and
insurances 12,500
General expenses 7,820
Salary 33,000

Adjustments:
1. Stock on 31.03.2017 ₹32,500
2. Salary outstanding ₹3,000
3. Depreciation on building @5%
4. Write off ₹1,000 as bad debts and create a provision of 5% on debtors.
5. 1/3 of commission received is in respect for next year.
Answer:
Trading Account
for the year ended 31.03.2017

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 Particulars Rs. Particulars Rs.

To Opening Stock 34,600 By sales 154500

To Purchases 54,750 Less: Return Inwards 2000 152500

Less: Return Outwards 1250 53,500 Closing Stock 32500

To Gross Profit c/d (Balancing
Figure) 96,900

185,000 185,000

Profit and Loss Account

for the year ended March 31,2017.
Particulars Rs. Particulars Rs.
To Salary 33000 By Gross Profit b/d 96,900
By Commission (3,750 –
Salary o/s 3000 36,000 1,250) 2,500
To Bad Debts 1,250
Add: new bad debts 1,000
Add: New provision 1,850
Less: old provision 2,000 2,100
To Advertisement 4,500
To Interest 1,180
To Tax 12,500
To General Expenses 7,820
To depreciation 3,750
To Net Profit c/d (Balancing
Figure) 31,550
99,400 99,400

Balance Sheet
as on March 31, 2017
Liabilities Rs. Assets Rs.
Capital 125,000 Building 71,250
Add: Net Profit 31,550 156,550 Furniture 6400
Current Liabilities Cash in Hand 6500
Bank O/D 28,500 Closing Stock 32500
Debtors (38,000 – 1,000 –
Advance Commission 1,250 1,850) 35150
Outstanding Salary 3,000 Motor vehicles 62500
Creditors 25,000
214,300 214,300

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