CLASS XI

ACCOUNTANCY
CH- 1, 2, 5, 6 (mixed)
ANSWER KEY

MM : 80 TIME : 180 MIN

A. OBJECTIVE TYPE (1 x 25 = 25 MARKS)

1. Multiple Choice Questions (MCQs)

I. Which of the following equations is correct?

a) Assets + Capital = Liabilities.
b) Assets - Liabilities = Capital.
c) Assets + Liabilities = Capital.
d) None of these.

II. X commenced business on 1st April, 2013 with a capital of Rs. 6,00,000. On 31st
March,2014 his assets were worth Rs. 8,00,000 and liabilities Rs. 50,000. Find
out his closing capital.
a) Rs. 7,50,000.
b) Rs. 2,00,000.
c) Rs. 5,50,000.
d) None of these.

III. Decrease in one liability may lead to

a) Decrease in an asset.
b) Increase in another liability.
c) Either (a) or (b).
d) None of these.

IV. As a result of the following transactions the total of accounting equation will be
……………………
(i). Started business with Cash Rs. 5,00,000
(ii). Goods purchased for cash Rs. 2,00,000
(iii). Goods costing Rs. 1,50,000 sold for Rs. 1,60,000 on credit:

a) Rs. 4,60,000
b) Rs. 7,10,000
c) Rs. 5,10,000
d) Rs. 6,60,000

V. Main elements of accounting equation are:

 a) Capital, Creditors and Bills Payable
b) Assets, Liabilities and Capital
c) Cash, Stock and Debtors
d) Bank balance, Investments and Bills Receivable

VI. Due to the following transactions, the total of accounting equation will be:
(i) Commenced business with cash Rs. 4,00,000
(ii) Purchased goods on credit Rs. 1,75,000
 (iii) Goods costing Rs. 1,00,000 sold at a profit of 20% for cash
(iv) Rent paid Rs. 5,000
a) Rs. 4,90,000
b) Rs. 5,90,000
c) Rs. 4,40,000
d) Rs. 3,40,000

VII. Choose the correct sequence :

(i). Classification
(ii). Summary
(iii). Recording
(iv). Position Statement

a) A, B, C, D
b) B, C, A, D
c) C, B, A, D
d) D, B, A, C
VIII. ‘State Bank of India’ is an example of:
a) Nominal Account
b) Real Account
c) Personal Account
d) Impersonal Account

IX. Choose the correct option :

a) One Debit; Two Credit.
b) Two Debit; One Credit.
c) One Debit; One Credit.
d) One Debit; Half Credit.

X. Capital Account is a -
a) Natural Personal Account.
b) Artificial Personal Account.
c) Representative Personal Account.
d) Real Nominal Account.

XI. Cash Withdrawn by owner for his personal use, the result will be:
a) Assets increase and Capital Decreases
 b) Assets Decreases and Capital Decreases
c) Assets decreases and Capital increases
d) Assets Increases and Capital Increases

XII. Accounts relating to properties and assets which are owned by the business are
known as:
a) Nominal Account
b) Real Account
 c) Personal Account
d) Representative Personal Account

XIII. Rules of Accrued Income A/C :

a) Debit – Increase; Credit – Decrease
b) Debit – Decrease; Credit – Increase
c) Debit – Decrease; Credit – No Change
d) None of these

XIV. Choose the correct option :

a) Three Debits: Three Credits
b) Two Debits: Five Credits
c) One Debit: Zero Credit
d) Half Debit: Three Credits

2. Fill In The Blanks :

i. The equity of the owner is called ___________. - CAPITAL

ii. Amount withdrawn by propreitor for personal use will decrease cash and _________. -
CAPITAL
iii. An accounting Equation is based on the ________ principle. – MATCHING
iv. If closing capital is Rs. 2,50,000 and drawings during the year were Rs. 40,000, profits Rs.
80,000, the opening capital was _____________. – 2,10,000
v.