MONTESSORI CAMBRIDGE SCHOOL PATHANKOT

ACCOUNTANCY FIRST TERM EXAMINATION 2022-23

Time:3hrs. CLASS – XI (SET B) MM:80

1. Contra entry is passed when 1

(a) cash is withdrawn from bank (b) cash is deposited in bank
(c) cheque previously received is deposited in bank (d) All of these

2. Loss of goods by fire should be credited to 1

a) Sales Account b) Loss Account
c) Profit & Loss Account d) Purchases Account

3. Which stakeholder would be interested in knowing the long-term solvency position of the firm? 1
(a) Investors (b) Government (c) Society (d) Creditors

Read the following case study and answer following questions 4 to 7:

Sam and Jay started with Cash 10,000 and Machinery 1,00,000. They decided to set up a production
line for PPE kits for. the protection from Covid 19 virus. As their demand rose, they decided to buy one
more piece of machinery. For the same, they took bank overdraft and purchased the machinery. The
quality of the company’s product was extremely high and therefore, it could develop a reputation for
itself in the market and business was flourishing. After 1.5 years, their old machinery turned obsolete
so they decided to sell the same. They sold it and got some cash proceeds. To further increase the brand
presence among the concerned stakeholders, they decided to run advertisements from the cash proceeds
of machinery sold. As more and more customers demanded their product, they decided to launch a
discount for bulk purchases. The discount was not to be recorded in the books of accounts. This
campaign was successful and they earned a lot of profits from the same.

4. Which type of liability is discussed in the passage? 1

(a) Non-current (b) Current (c) Both (a) and (b) (d) Can’t be determined

5. What was the capital initially invested? 1

(a) 10,000 (b) 1,00,000 (c) 1,10,000 (d) Can’t be determined

6. Which type of discount is being discussed in the last part of the passage? 1
(a) Trade discount (b) Cash discount
(c) Both (a) and (b) (d) Can’t be determine

7. Which asset is discussed in the line, “The quality of the company’s product was very high and
therefore, it could develop a reputation for itself in the market and business was flourishing”? 1
(a) Tangible (b) Intangible (c) Current. (d) Both (a) and (c)
8. Match the activity with their respective heads: Activity Heading 1

9. Rent paid during the year amounted to Rs. 300000, which includes Rs. 20000 relating to the previous
year and Rs. 20000 relating to the next year. Rs. 30000 relating to the current year is still outstanding.
How much rent will be debited to the profit & Loss account of the current year? 1
a) Rs. 200000 b) Rs. 2,90,000 c) Rs. 2,15,000 d. Rs. 2,80,000
OR
 The amount spent to increase the earing capacity of a business is:
a) Capital Loss b) Deferred Revenue Expenditure
c) Revenue Expenditure d) Capital Expenditure

10. Match the following: 1

11. Goods costing of Rs 90,000sold at a profit of 1/3 of cost, half of the payment received in cash
treatment in accounting equation will be:- 1
a) Increase in cash by Rs 60,000and decrease in stock by Rs 90,000 and increase in debtor by Rs
60,000 increase in capital by Rs 30,000
b) Increase in cash by Rs 90,000and decrease in stock by Rs 45,000 and increase in debtor by Rs
90,000
c) Increase in cash by Rs 45,000and decrease in stock by Rs 60,000 and increase in debtor by Rs
1,20,000
d) Increase in cash by Rs 1,20,000 and decrease in stock by Rs 90,000 and increase in debtor by
Rs 60,000

12. Capital increased when:- 1

(a) Goods Purchased (b) Rent paid (c) Commission received (d) Goods loss by fire

13. Winning a court case an example of: 1

(a) Profit (b) Income (c) Gain (d) Revenue

14. The balance of Machinery Account as on March 31, 2018 is Rs.1,08,000. The machinery was
purchased on April 1, 2017. Depreciation is charged @10% p.a. by Diminishing Balance Method.
What is the original cost of an asset purchased on April1, 2017. 1
OR
Furniture A/c shows an opening balance of Rs.5,00,000. Furniture with a book value of Rs.10,000
was sold during the year. New furniture was purchased for Rs.40,000. Depreciation provided
Rs.5000. The closing balance of Furniture A/c is Rs. ………………

15. If an asset costing Rs.1,20,000 is depreciated by Straight Line Method @ 10% p.a., it will be zero
after
a) 8 years b) 12 years c) 10 years d) 6 years

16. Interest on drawings indicates ___________balance in trial balance. 1

a) Debit b) Credit c) Both d) None of them

17. If total assets of a business at the end of the year are ₹ 20,00,000, capital is ₹ 8,00,000 and drawings
are ₹ 60,000. Calculate creditors. 1

18. If Cash-Book (Bank Column) shows a balance of Rs. 10,000 and following were observed while
comparing it with Pass-Book: A cheque of Rs. 1000 deposited in Bank but not recorded in Cash-
Book and the payment side of Cash-Book was under cast by Rs. 100. The balance as per Pass-Book
would be:
a) ₹ 11,000 b) ₹ 10,900 c) ₹ 9,100 d) ₹ 8,900

19. Cash Book shows a credit balance of ₹ 7,500, if there is no reconciliation the pass book will show
credit balance of ₹ 7,500 (True/False). 1
20. Current assets get converted in cash in a period of ----------------. 1

21. Following is an extract from a Trial balance: 3

TRIAL BALANCE as at-
Heads of Accounts L.F. Dr. ₹ Cr.₹
Machinery 2,00,000
Furniture 1,00,000
Provision for Depreciation on Machinery 60,000
Provision for Depreciation on Furniture 27,100
Adjustment:
a) Depreciation is charged on Machinery at 10% p.a. on Original Cost.
b) Furniture at 10% p.a. by Diminishing balance Method
Show relevant extract of the Profit & Loss Account and Balance Sheet.
OR
Ravi’s Trial Balance as on 31st march, 2022 has the following information:

Heads of Accounts L.F. Dr. ₹ Cr.₹

Loan (Taken on 1st October, 2021 interest @ 10% p.a.) 1,00,000
Interest 4,000
Show relevant extract of the Profit & Loss Account and Balance Sheet.

22. A firm bought plant for ₹ 14,80,000 on 1st April, 2019 and ₹ 20,000 is spent on its installation. Its
useful life is estimated to be of 5 years. Its estimated realisable value at the end of the period was
estimated at ₹ 1,00,000. Find out the amount of annual depreciation and rate of depreciation. 3

23. Mention the side and the nature of the account which shows the increase in the following Accounts:
a) Furniture b) Sales c) Deepak (proprietor) d) Rent Outstanding
e) Bill Receivable f) Debtor 3

24. Michale gives following information about his income and expenses for the year ended 31st March,
2022. 3
Expenses Paid 1,60,000
Expenses paid in advance (included in ₹ 1,60,000) 40,000
Expenses not yet paid 20,000
Income Received 2,40,000
Income received in advance (included in ₹ 2,40,000) 30,000
Income not yet received 24,000

25. Calculate total Liability if: 3

a) Owner’s Capital in the beginning is ₹ 60,000
b) Creditors at the end is ₹ 50,000.
c) Revenue during the period is ₹ 70,000.
d) Expenses during the period are ₹ 65,000.
Also calculate amount of Owner’s Capital at the end.

26. From the following figures, calculate Operating profit: 3

Net Profit ₹ 1,00,000
Rent received ₹ 10,000
Gain on sale of Machine ₹ 15,000
Interest on Loan ₹ 20,000
Donation ₹ 2,000
OR
 Calculate Closing Stock from the following details:
Opening Stock ₹ 20,000, Cash sales ₹ 60,000, Credit Sales ₹ 40,000, Purchases ₹ 70,000. Rate of
𝟏
Gross Profit on Cost 33 %.
𝟑

27. From the following information, draw up a trial balance in the books of Shri Manmohan as on 31st
March, 2019 Capital ₹ 1,12,000; purchases ₹ 28,800; discount allowed ₹ 960; carriage inwards ₹
6,960; carriage outwards ₹ 1,840; sales ₹ 48,000; return inwards ₹ 240; return outwards ₹ 560; rent
and taxes ₹ 960; plant and machinery ₹ 64,560; stock on 1st April, 2018 ₹ 12,400; sundry debtors ₹
16,160; sundry creditors ₹ 9,600; investments ₹ 2,880; commission received ₹ 1,440; cash in hand ₹
80; cash at bank ₹ 8,080; motor cycle₹ 27,680 and stock on 31st March, 2019 (not adjusted)
₹ 16,400. 4

28. Write the ‘T’ shape accounts of Cash and Debtors from the following Transactions:
a) Goods sold on Credit ₹ 90,000 4
b) Cash sales ₹ 45,000
c) Cash received from Manoj ₹ 65,000
d) Cash Purchase ₹ 16,000
e) Goods purchased on credit from Bilawal ₹ 60,000
f) Cash paid to Bilawal ₹ 35,000
g) Goods returned to Bilawal ₹ 8,000
h) Goods returned by Manoj ₹ 3,000

29. Show the effect of following transactions on the accounting equation: 4

a) Navjot started business with cash ₹ 80,000 and Bank balance Rs. 30,000.
b) Rent paid ₹ 4,000 by cheque.
c) Rent due but not paid ₹ 6,000
d) Salary paid for the next year ₹ 7,000.
e) Commission Received ₹ 10,000
f) Commission due but not received ₹ 11,000
g) Interest received in advance for the next year ₹ 9,000
OR
Give an example for each of the following types of transactions:
a) Increase in one asset, decrease in another asset.
b) Increase in asset, increase in liability.
c) Increase in asset, increase in owner’s capital.
d) Decrease in asset, decrease in liability.
e) Decrease in asset, decrease in owner’s capital.
f) Increase in one liability, decrease in another liability.
g) Increase in liability, decrease in owner’s capital.
h) Decrease in liability, increase in owner’s capital.

30. Enter the following transactions in the Cash Book with Cash and Bank Columns:−
2016 June
1 Cash in hand 800 Bank Overdraft 5,700
7 Received a cheque from Bharti 3,250
9 Deposited the above cheque into bank
12 Paid to Bhavana by cheque 2,425
15 Bharti's cheque returned dishonoured
20 Withdrew from Bank for office use 250
25 Cheque received from Panna Lal and endorsed it in favour of Kamal on 28th June 1,200
30 Income Tax paid by cheque 150 30 Bank charges 25
31. Prepare a bank reconciliation statement from the following particular ₹ On the 31st December,
2018, 1 had an overdraft ₹ 7,500 as shown by my pass book. 6
(i) I have issued cheques amounting to ₹ 2,500 of which cheques worth ₹ 2,000 only seem to
have been presented for payment.
(ii) Cheques amounting to ₹ 1,000 have been paid in by me on 30th December but out of those,
only ₹ 750 were credited in the pass book.
(iii) I also find that a cheque for ₹ 100 which I had debited to bank account in my books has
been omitted to be banked.
(iv) There is debit in my pass book of ₹ 250 for interest.
(v) An entry of ₹ 300 of a payment by a customer directly into the bank appears in the pass
book.
(vi) My pass book also shows a credit of ₹ 600 to my account being interest on my investments
collected directly by my banker.
32. Raja Textiles Co. which closes its books on 31st March, purchased a machine on 1-4-2009 for 50,000.
On 1-10-2010, it purchased an additional machine for 30,000. The part of the machine which was
purchased on 1-4-2009 costing 10,000 was sold for 3,600 on 30th Sept., 2012. Prepare the Machine
Account for four years, if the depreciation is provided at the rate of 10% p.a. on Diminishing
Balance Method.
OR
Ashoka Ltd. bought a machine on 1st April, 2010 for 2,40,000 and spent 4,000 on its carriage and
6,000 towards installation cost. On 1st July, 2011 it purchased a second hand machinery for 75,000
and spent 25,000 on its overhauling. On 1st January, 2013 it decided to sell the machinery bought
on 1st April, 2010 at a loss of 20,000. It bought another machine on the same date for 40,000.
Company decided to charge depreciation @ 15% p.a. on written down value method. Prepare
machinery Account for 3 years. Books are closed each year on 31st March.

33. Prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet
as at that date from the following Trial Balance: 6
Adjustments:-
1. Salaries 100 and taxes 200 are outstanding but insurance 50 is prepaid.
2. Commission 100 is received in advance for next year.
3. Interest 210 is to be received on Deposits and Interest on Bank overdraft 300 is to be paid.
4. Bad-debts provision is to be maintained at 1,000 on Debtors.
5. Depreciate furniture by 10%.
6. Stock on 31st March, 2017 was valued at 4,500.

34. Journalise the following trasactions:− 6

A) Charge depreciation on Machinery 20,000
B) Salary due to Office Clerks 1,00,000
C) Received cash for Bad-Debts written off last year 5,000
D) Purchased goods from Ashok & Co. for 50,000 at 20% Trade Discount. Half the payment was
made in cash.
E) Issued cheque to Ashok & Co. in full settlement 19,500
F) Paid Life Insurance Premium by cheque 6,000
G) Proprietor used goods for household purposes 20,000
H) Goods given free to a hospital out of business 10,000
I) Purchased a horse for business for 20,000.
J) Opened a current account with Punjab National Bank 1,00,000.
K) Goods costing 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount
L) Honoured our acceptance by cheque ₹ 5,000