JEEGYASA CLASSES

VI - XII
ACCOUNTS
CLASS- XI
Total Time : 3 hours Total Marks : 80

SECTION A

Question 1 : Choose the correct option from the following :- (1 x 20)

i. The concept that a business enterprise will not be sold or liquidated in the near future is
known as:
a. Business Entity Concept
b. Money Measurement Concept
c. Matching Concept
d. Going Concern Concept

ii. Cost price or realisable value, whichever is less, is used for the valuation of:
a. Current Assets
b. Fixed Assets
c. All assets
d. Closing Stock

iii. Due to which of the following window dressing is prohibited:

a. Convention of Consistency
b. Accounting Period Concept
c. Convention of full Disclosure
d. Money Measurement Concept

iv. According to which concept the same accounting methods should be used each year:
a. Prudence
b. Materiality
c. Full Disclosure
d. Consistency

v. Nature of Accounting Standards is:

a. They direct as to how the transactions should be recorded
b. They make the financial statements comparable
c. They provide information as to the basis on which financial statements have been
prepared
d. All of the above
vi. Accounting Standards are needed:
a. To bring uniformity in the financial statements of different enterprises
b. To limit the area within which accountant has to function
c. To bring clarity in accounting terminology
d. All of the Above

JEEGYASA CLASSES 9007440392

 vii. Accounting standards are formulated by
a. By Planning Commission
b. By Institute of Chartered Accountants of India
c. By Companies Act
d. By Institute of Company Secretaries of India

viii. Adopting of Accounting Standards is mandatory for :

a. Sole Traders
b. Companies
c. Partnership Firms
d. All of the Above

ix. Which equation is correct out of the following:

a. Assets = Liabilities – Capital
b. Assets = Capital – Liabilities
c. Assets = Capital + liabilities
d. Assets = Net worth – Liabilities
x. Which equation is correct out of the following:
a. Liabilities = Assets + Capital
b. Assets = Liabilities – Capital
c. Capital = Assets - Liabilities
d. Capital = Assets + Liabilities

xi. Which equation is incorrect out of the following :

a. Assets = Liabilities + Capital
b. Capital = Assets – Liabilities
c. Liabilities = Assets – Capital
d. Assets = Liabilities – Capital

xii. Voucher is prepared for

a. Cash Received and Paid
b. Cash or Credit Sales
c. Cash or Credit Purchases
d. All of the above

xiii. Which of the following items is shown on the Debit side of Trial Balance :
a. Commission Received A/c
b. Bank Overdraft A/c
c. Bills Receivable A/c
d. Bills Payable A/c

xiv. When a transaction is completely omitted to be recorded in the books, it is called:

a. Error of Principle
b. Compensating Error
c. Error of Omission
d. Error of Commission

JEEGYASA CLASSES 9007440392

 xv. If wages paid for installation of new machinery is debited to Wages Account, it will be
called :
a. Error of Principle
b. Compensating Error
c. Error of Ommission
d. Error of Commission

xvi. Out of the following, balance of which account is shown on the credit side of Trial
Balance:
a. Purchases A/c
b. Sales Return A/c
c. Discount Received A/c
d. Bills Receivable A/c

xvii. Goods sold to Sethi for 640 was recorded in his account as 460. In the rectifying entry,
Sethi's A/c will be debited with:
a. 180 b. 640 c. 1100 d. 460

xviii. Sohan returned goods to us amounting 4,200 but was recorded as 2,400 in his account.
In the rectifying entry, Sohan's A/c will be credited with:
a. 1800 b. 2400 c. 4200 d. 6600

xix. Purchased goods from Gopal for 3,600 but was recorded in Gopal's A/c as 6,300. In the
rectifying entry, Gopal's A/c will be debited with:
a. 9900 b. 2700 c. 3600 d. 6300

xx. Suspense Account is a

a. Real Account b. Nominal Account c. Personal Account
e. Any of these

SECTION B

Question 2 : On 1st August 2021, Gadore Ltd. purchased a machinery for 3,00,000. On 1st November,
2022 another machinery was purchased for 1,80,000. On 1st July 2023, the machine purchased on
1st August, 2017 was sold for 1,68,000 and on the same date a fresh machinery was purchased for
₹2,00,000. Depreciation was provided @ 10% p.a. on the Reducing Balance Method. Books are
closed on 31st March every year.

You are required to prepare Machinery Account and Provision for Depreciation Account for three
years ending 31st March, 2024. ( Marks 8)

Question 3 : Pass the following Journal Entries in the Books of RCB LTD. Bangalore. (Marks 8)

Jan 2024 PARTICULARS

1 Purchased goods from Karunakaran of Chennai for 1,00,000. (IGST @18%)
3 Sold goods to Ganeshan of Bengaluru for 1,50,000. (CGST @6% and SGST @6%)
8 Sold goods to S. Nair of Kerala for ₹2,60,000. (IGST @18%)
11 Purchased Machinery for 80,000 from Surya Ltd. against cheque. (CGST @9% and
SGST @9%)
14 Paid rent 30,000 by cheque. (CGST @6% and SGST @6%)

JEEGYASA CLASSES 9007440392

 19 Purchased goods from Ram Mohan Rai of Bengaluru for 2,00,000. (CGST @6% and
SGST @6%)
23 Paid insurance premium 10,000 by cheque. (CGST @9% and SGST @9%)
29 Received commission 20,000 by cheque which is deposited into bank. (CGST @9%
and SGST @9%)
30 Payment made of balance amount of GST.

Question 4 : Enter the following transactions in a cash book with cash and bank columns and also
pass journal entries wherever necessary. ( Marks 10)

April 2023 Particulars Amount

1 Cash in Hand 6200
Bank Overdraft 18500
2 Received a cheque from Harry and Deposited in the bank 1300
same day
3 Received a cheque from Binod 3300
5 Cheque received form Binod Deposited into bank
5 Purchased Goods and paid by cheque 20,000
5 Freight Paid in cash 250
6 Sold goods in Cash 12220
8 Sold goods in Cash 16000
9 Sale Proceeds of April 8 deposited into bank
11 Withdrew Cash for Personal use 1000
13 Withdrew with Cheque for Personal use 5000
14 Purchased Goods from Suresh on Credit 2500
16 Paid Cheque to Suresh 2500
17 Received a cheque from Ajay ( Not Banked ) 3700
20 Cheque received from Ajay Endorsed to Vijay
22 Cheque Received from Mahesh deposited into bank 2700
24 Received Cash 1000 and cheque 1200 for Cash sales
25 Paid into bank 10000
26 Received a cheque from Prem. Sent to Bank immediately 4150
28 Cheque from Prem Dishonoured. Bank charges 20
30 Kishan Directly deposited into our bank account 3000
30 Bank has charged 60 for bank charges and interest on 720
overdraft

Question 5 : Pawan Kumar maintains incomplete records. The affairs of his business as at 1st April
2023 are as follows :- (Marks 8)

LIABILITIES AMOUNTS ASSETS AMOUNTS

Creditors 5000 Cash in Hand 400
Capital 70000 Cash at Bank 1600
Debtor 17000
Stock 20000
Furniture 6000
Plant and Machinery 30000

JEEGYASA CLASSES 9007440392

His position on 31st March, 2024 was :- Cash in hand 1,000; Cash at Bank *2,000; B/R 4,000; Debtors
21,000; Stock 32,000; Furniture ₹8,000; Plant and Machinery 40,000 and Creditors 18,000.

He withdrew during the year 30,000, out of which he spent 18,000 for purchasing a scooter for the
business. Calculate his net profit for the year after the following adjustments and prepare a final
Statement of Affairs as at 31st March, 2024:

(1) Depreciate furniture and scooter @ 20%;

(2) 5% of the debtors are doubtful and 800 are absolutely bad.

(3) Make a provision of 5% on Bills Receivable also.

Question 6 : Prepare a Trading and Profit and Loss for M/S Green Ltd for the year and a Balance
Sheet as at that date for the following figures taken from their trial Balance. (Marks 10)

DEBIT BALANCES AMOUNT CREDIT BALANCES AMOUNT

Opening Stock 125000 Sales 250000
Purchase 35000 Purchase Returns 6000
Return Inward 25000 Creditors 55000
Postage 600 Capital 50000
Salary 12300 Discount Received 1000
Wages 3000 Provision for Bad Debts 4500
Rent 1000 Commission Received 5400
Packing and Transport 500
General Expenses 400
Insurance 4000
Debtors 50000
Cash in Hand 20000
Closing Stock 40000
Machinery 20000
Lighting 5000
Discount 3500
Bad Debts 3500
Investments 23100
371900 371900
Adjustments :

(i) Depreciation charged on Machinery @ 5% p.a.

(ii) Further Bad-debts 1,500, provision for discount on debtors @ 5% and provision for Doubtful
Debts on debtors @ 6%.

(iii) Wages prepaid ₹1,000.

(iv) Interest on investments @ 5% p.a.

Question 7 : A sells goods for 40,000 to B on 1st January, 2024 and on the same day draws a bill on B
at three months for the amount. B accepts it and returns it to A, who discounts it on 4th January,
2024 with his bank at 6% per annum. The acceptance is dishonoured on the due date and the noting
charges were paid by bank being ₹200.

JEEGYASA CLASSES 9007440392

On 4th April, 2024, B accepts a new bill at three months for the amount then due to A together with
interest at 12% per annum.

Make Journal entries to record these transactions in the books of A and B. (Marks 8)

Question 8 : Pass the rectification entries and show the suspense account in the books of a
partnership firm, from the following particulars : (Marks 8)

(a) The total of sales return day book was over-cast by ₹1,000.

(b) Purchase of equipment, from Raj Mohan & Co., worth 2,000, in cash, was entered through the
purchase day book and accordingly, credited to the supplier's account.

(c) Discount 500 allowed by P. Sahoo, a creditor, has not been entered in the books of account.

(d) 350 paid for carriage on sale of goods was credited to carriage inward account when posted from
the cash book.

(e) Bill receivable worth 1,800 received from a debtor was entered in the bills payable book though
correctly entered in the debtor's account.

(f) A sum of ₹2,500 collected from Suraj Singh, a debtor, whose dues were already written off as bad
debt, was posted to the credit side of Suraj Singh account.

JEEGYASA CLASSES 9007440392