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.
 KENDRIYA VIDYALAYA SANGATHAN, MUMBAI REGION
SAMPLE PAPER EXAMINATION 2022-23
CLASS XI
ACCOUNTANCY (055)

MARKING SCHEME
Set 2

(PART A-FINANCIAL ACCOUNTING I)

1. Understandability

2. Going Concern

3. Money Measurement Principles

OR

Income= Revenue- Expenses

Rs. 21000- Rs.15000
Rs 6000

4. Bank and cash account in the ledger

OR

An Assets

5. Fixed Assets

6. A Charge against profit

7. Error of Principle

8.(c)To compare the cash book balance with passbook balance and ascertain the
differences.

OR

Sol. 1 Cash Book

2. Bank Pass Book or Bank Statement

1
9. C CGST and SGST

10. Rs. 30,000

11. C

12. C

13.a 40888.32

14. C credit balance in cash book

15.d Credit sales of rs. 22000

OR

a. Cash Book

16. b Wrongly totalling of subsidiary books

17
Ans1. (c)
Ans2. (c)
Ans3. C

18. 3 marks on correct explanation

The accountants consider that the business entity is a going concern as it provides the
basis for showing the value of the assets in the balance sheet.
This assumption will allow the business to charge only that part of the asset which has
been consumed or used to earn the revenue from the revenues earned during a period.
The rest of the asset will be carried forward to the next few years, over the estimated life
of the asset.

OR

Sol .(11/2 and 11/2 each=3)

Going Concern Concept- The business will continue for an indefinite period and there is
no intention to close the business or downsize its operation significantly. The doubt of
success does not lead to the inference that business will not continue for an indefinite
period and also the intention that the business will be downsized significantly.

2
Accounting period concept- According to the Accounting Period Principle, life of an
enterprise is broken into smaller periods so that its performance is measured at regular
intervals. The accounts of an enterprise shall continue its activities for a foreseeable
future. Users of financial statements, especially the management and banks, require
information from the accounts at regular intervals so that decisions can be taken at the
appropriate time.As accounting period is the interval of time at the end of which Income
statement and Balance sheet are prepared to know the results and resources of the
business.

Dual Aspect -Every transition entered into by an enterprise has two aspects, a debit and
a credit of equal amount. Simply stated, for every debit there is a credit of equal amount
in one or more accounts. It is also true vice versa.

19. SOL (3)

Trial Balance as on 31st March ,2022
Name of Accounts. Dr.
Capital. 1,40,000
Purchases. 36000
Discount Allowed. 1200
Carriage inwards. 11,000
Sales. 60000
Return Inward. 300
Return Outward. 700
Plant and Machinery. 1,15,300
Stock (1st April,2021). 16,700
Sundry debtors. 20,200
Sundry Creditors. 12000
Investments. 3600
Commission Received. 1800
Cash in Hand. 100
Cash at Bank. 10,100

Total 2,14,500. 2,14,500

20. Sol (3)

BASIS REVENUE RESERVE CAPITAL RESERVE

Source It is created out of business or It is created out of capital Profits.

revenue profits.

Usage It cab be used for distribution of It can be used for distribution of

dividends without any dividends only if the company
precondition.

3
 satisfies certain conditions
prescribed by the companies act.

Purpose It is created for strengthening the It is created for meeting capital

financial position and meeting the losses or to be used for
unforeseen contingencies of some purposes specified by the
specific purpose. companies act.

21. Sol (4)

1. Reliability
2. Relevance
3. Understandability
4. Comparability

22. SOL. ( 4 marks)

Total purchase 4,40,000; Input CGST 18000; INPUT SGST 18000; INPUT IGST
43,200; TOTAL AMOUNT Rs.5,19,200

SOL. 23( one mark each)

BANK RECONCILIATION STATEMENT as on March 31, 2018
WITHOUT ADJUSTING CASH BOOK

Particulars Plus (Dr.) Minus (Cr.)

Balance as per Cash Book (Dr.) 40,000

Cheques not encashed 10,000

Cheques not cleared 15,000

Interest on Investments 500

Cheques deposited, not recorded in Cash Book 12,500

4
 Bank charges 100

Balance as per Pass Book (Cr.) 47,900

63,000 63,000

Machinery Account
24. SOL. (6 Marks)

Date Particulars Rs Date Particulars Rs

2019 To Bank A/C 1,20,000 2020

April 1 March By Depreciation A/C 18,000
31 By Balance c/d 1,02,000
March
31

1,20,000 1,20,200

2020 2021
April 1 To Balance 1,02,000 March By Depreciation A/C 16,800
Sept 30 b/d 20,000 31 By Balance c/d 1,05,200
To Bank A/c March
31

1,22,000 1,22,000

2021 2021
April 1 To Balance 1,05,200 June 30 By Bank A/C- Sale 500
June 30 b/d 8,000 June 30 By Depreciation A/c 135
To Bank A/c June 30 (WN 1) 2,977
By Loss on Sale of
Machinery A/C
(Profit & Loss A/c)
2022 (WN 1)
March 16,138
31 93,450
March By Depreciation A/C
31 (WN2)
By Balance c/d

5
 1,13,200 1,13,200

2022 To Balance 93,450

April b/d

Working Notes:
1 Calculation of Loss on Sale of Machinery:

Cost of Machinery sold (1st April, 2019) 5,000

Less: Depreciation for 2019-20 (Rs 5,000 x
15/100) 750
----------
Book Value of Machinery (1st, April 2020) 4,250
Less: Depreciation for 2020-21 (Rs 4,250 x 15/100) 638
-----------
Book Value of Machinery (1st April 2021) 3,612
Less: Depreciation up to 30th June 2021 (Rs 3612 x 15/100x 3/12) 135
—--------
Book Value of Machinery sold (30th June 2021) 3,477
Less: Sale proceeds 500
-------
Loss on Sale of Machinery 2,977
2. Calculation of Depreciation after sale of Machinery:
Book Value of Machinery (1st April 2021)
1,05,200
Less: Book Value of Machinery sold (1st April 2021) (WN 1) 3,612
---------
Remaining Machinery 1,01,588
—-----------
Depreciation on Remaining Machinery (Rs. 1,01,588 x 15/100) 15,238
Add; Depreciation on Machinery Purchased during 2021-22
(Rs, 8000 x 15/100 x 9/12) 900
----------
16,138

or
( 3+3 = 6 marks)
Furniture account: - Profit and loss (loss on sale) 7000
Balance c/d – April 01 2021 Rs. 55,000

Provision for depreciation on furniture account

Accumulated depreciation on furniture sold 8000
Depreciation- 2015, March 31 Rs. 4250

6
25. (6 marks)
Solution: JOURNAL

Date Particulars L.F. Dr. Cr.

(Rs) (Rs.)

(i) Sales Return A/c ….Dr. 2,000

Sales A/C …..Dr. 2,000
To Suspense A/C
(Goods returned wrongly entered in the Sales Book, 4000
now rectified)

ii Drawings A/C …Dr 1500

To Purchases A/c 1500
(Goods taken for personal use wrongly entered in
Purchases Book now rectified)

(iii) Ashok ….Dr 500

To Sales Return A/C
(Dishonor of cheque debited to Sales Return A/C, now 500
rectified)

(iv) Suspense A/c …..Dr 180

To Sales A/c 180
(Wrong carry forward of total of Sales Book, now
rectified)

(iv) Prepaid insurance A/c …… Dr 500

To Suspense A/C 500
(Prepaid insurance premium was omitted to be
brought forward, now rectified)

( PART – B Financial Statement – II)

26. Ans d (1)

27. Answer: (c) Gross Profit, Operating Profit, Net Profit (1)

28. A Direct Expenses (1)

29. Sol. Revenue expenditure is that expenditure benefit of which is exhausted

within the accounting year in which it is incurred. (1)

7
30. Sol. (3)
Accrual Concept of accounting requires that revenue to be recognized when
goods and / or services has been sold and / or provided whether the amount has
been received or not/ Since total income for the year is accounted and transferred
to the credit of Profit & Loss Account, accrued income is transferred to the credit
of Profit & Loss Account, And since the amount is due to the enterprise, it is
shown as a current asset in the Balance Sheet.

31. Sol. 3 marks on correct explanation.

In order to ascertain the true profit or loss of the business for a particular year, it
is necessary that all expenses and incomes relating to that year (whether paid
/received or not) are taken into consideration. Similarly, all items of expenses and
incomes relating to next year are excluded. Due to this reason adjustments are
made for outstanding expenses, prepaid expenses, accrued incomes, unearned
incomes etc. so it is necessary to record the adjusting entries for such
adjustments while preparing the final accounts.

32. Sol 1 mark on each. (4)

1. Determine Gross profit and loss
2. Determine Net profit and loss
3. Comparison with previous year’s profit
4. Ascertaining financial position
Or

Accrued Income- 2 marks

Prepaid expenses- 2 marks

33. Solution- (4)

Cost of goods sold= Total Purchases (8,00,000) - Return Outward (20,000) + Direct
Expenses (60,000) = rs. 8,40,000
2/3rd of the Goods sold for rs. 6,10,000
2/3rd Cost of Goods Sold=840000x2/3=5,60,000
Gross Profit=A-B=rs.6,10,000-rs. 5,60,000=rs.50,000

or

33.
SOL( 1 Mark each )

8
Sl. Particulars L.F. Debit Credit
No. ₹ ₹

a) Salaries A/c Dr. 3,50

0

To Outstanding Salaries A/c 3,500

(Salaries Outstanding for Rs. 3,500)

b) Rent A/c Dr. 500

To Outstanding Rent A/c 500

c) Prepaid Insurance A/c Dr. 4,00

0

To Insurance A/c 4,000

(Insurance premium paid in advance for 3

months, i.e. ₹ 4000)

d) Furniture A/c Dr. 7,00

0

9
 To Purchases A/c 7,000

(Correction entry for the wrong debit of furniture

to purchases account)

(Rent unpaid for one month = 6000/12 =

₹ 500)

SOL. 34

Dr. Cr.

Particulars Amount Particulars Amount

₹ ₹

Opening Stock 35,000 Sales 2,50,000

Purchases 1,25,000 Less: Sales (25,000) 2,25,000

Returns

Less: Purchase (6,000) 1,19,000 Closing Stock 10,000

Returns

Wages 3,000

10
 Less: Prepaid (1,000) 2,000
Wages

Gross Profit 79,000

2,35,000 2,35,000

Profit and Loss Account for the Year Ending March 31, 2017

Dr. Cr.

Particulars Amount Particulars Amount

₹ ₹

Bad Debts 3,500 Gross Profit 79,000

Add: Further Bad 1,500 Interest on Accrued 1,155

Debts Investment

Add: New Provision 2,910 Discount 1,000

Less: Old Provision 4,500 3,410 Interest Received 5,400

Discount on Debtors 2,280

Postage and Telegram 600

Salary 12,300

11
Rent and Rates 1,000

Packing and Transport 500

General Expenses 400

Insurance 4,000

Discount 3,500

Depreciation on 1,000
Machinery

Lighting and Heating 5,000

Net Profit 52,565

86,555 86,555

Balance Sheet
as on March 31, 2017

Liabilities Amount Assets Amount

₹ ₹

Creditors 10,000 Cash in Hand 20,000

12
Bills Payable 20,000 Cash at Bank 40,000

Capital 75,000

Add: Net 52,565 1,27,565 Debtors 50,000

Profit

Less: Further Bad 1,500

Debts

Less New Provision 2,910

Less: Discount on 2,280 43,310

Debtors

Investment 23,100

Add: Interest on 1,155 24,255

Investment

Machinery 20,000

Less: Depreciation 1,000 19,000

Prepaid Wages 1,000

Closing Stock 10,000

13
1,57,565 1,57,565

14