MID TERM (2023-24)

TIME - 3 Hrs. Class – XI Subject – Accountancy M.M. – 80

General Instructions:
i) This question paper contains 34 questions. All questions are Compulsory.
ii) Questions 1 to 20, carries 1 marks each . iii) Questions 21-26 carries 3
marks each. iv) Questions from 27 ,28 and 29 carries 4 marks each. v)
Questions from 30-34 carries 6 marks each.
vi Q27 is missing figure question. Attempt in proper format.
vii) Write full statement with correct option in MCQ's based questions. viii) All
parts of a question should be attempted at one place.
__________________________________________________________________________________ Q1
Excess of closing capital over opening capital denotes ………
(a) Profit b) Loss
(c) No Profit no Loss (d) Profit, if there is no introduction of fresh capital
Q2 Sold goods for cash costing Rs 10,000 and on credit costing Rs 15,000 both at a profit o f 20%. Calculate profit
(a) 10,000 (b) 5,000
(c) 7,000 (d) 2,000
Q3 Consider the following items:
1. Prepaid Salary 2. Accrued Interest
3. Loan (Short term) 4. Bank Overdraft
Current Liability would include:
(a) 1, 2, 3, 4 (b) 4, 3, 1 (c) 2,
3, 4 (d) 3,4
Q4 If the capital of the firm on 1st April, 2021 is Rs. 30,000 and the position of the firm on 31st March, 2022 is Assets:
Rs.45,000 and Creditors: Rs. 9,000, then the profit earned during the year is:
a) Rs.6,000 b) Rs.15,000
c) Rs.24,000 d) Rs.9,000
Q5 Assertion (A): Statements prepared through management account are helpful in decision making process.
Reason (R): The information provided by management accounts is financial and non-financial as well.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
Q6 Real Account refers to :
(a) Tangible Assets (b) Intangible Assets
(c) Both Tangible and Intangible Assets (d) Expenses, losses, income and gains.
Q7 Last step of accounting process is :
(a) Provide information to various parties who are interested in business enterprise.
(b) Record transactions in the books.
(c) To make summary in the form o f financial statements.
(d) To classify the transactions under separate heads in the ledger.
Q8 Life insurance premium is:
a) Treated as drawing b) Treat as asset
c) Treat as profit d) Treated as expense
Q9 On inter - state purchase of goods, which of the following GST is levied:
 (a) CGST (b) SGST
(c) IGST (d) None of the above
Q10 " It is a form available from a bank and is used to deposit money in the bank and has a counterfoil which is
returned to the depositor duly stamped and signed by the cashier o f the bank
(a) Credit Note (b) Debit Note
(c) Cheque (d) Pay-in-slip
Q11 Everything a firm owns, it also owes out to somebody. This is explained by which concept:
(a) Dual Aspect (b) Going Concern
(c) Money Measurement (d) Accounting Period
Q12 Income received in advance A/c is
(a) Nominal A/c (b) Real A/c
(c) Personal A/c (d) None o f these
Q13 Which o f the following is not a limitation of accounting?
(a) Based on accounting conventions
(b) Evidence in Legal Matters
(c) Incomplete Information
(d) Omission o f Qualitative Information
Q14 If the firm has incurred loss during the year, then Capital balance will be:
a) Negative only b) Positive only
c) Can be either Positive or Negative d) Zero.
Q15 Which is correct Combination?
(a) Real A/c - Machine, furniture
(b) Personal A/c - Ram, Shyam, Bank and Labour union
(c) Nominal A/c - Building, Gain, loss
(d) Representation person - Company, Mohan, Indu
Q16 “All insolvents are bad debts but all bad debts are not insolvent.” Justify the statement.
Q17 Rent paid to landlord Gopal will be debited to Gopal Or Rent A/c ?
Q18 Cost of installation of plant and machinery is a ___________________expenditure.
Q19. Gains and profits are synonyms in accounting sense. State True/ False with reason.
Q20 Define “Summarising” as a process of accounting.
Q21 Pass journal entries for the following entries:-
1. Goods destroyed by fire Rs.10000
2. Goods destroyed by fire Rs 8000. Goods were insured and insurance company admitted the claim of Rs
5000 only.
3. Goods destroyed by fire 3500 and insurance company admitted full claim
Q22 Under which basis of accounting, Outstanding Expenses are not recorded? Identify and write its one each
advantage and disadvantage .
Q23 Mention the type of accounts(Modern Approach) under which the following items will be recorded. Also, state on
which side decrease in the following accounts be recorded?
1.Prepaid Insurance 2.Bank Overdraft 3.Purchases
Q24 Write the nature of the following accounts whether they are personal, real or nominal.
1.Debtors 2.Interest paid 3.Outstanding salary
4.Capital 5.Furniture 6.Profit on sale of asset Cash
Q25 1. What is opening entry
2. Pass an opening Journal entry from the following balances.
Assets: Cash balance6,000, bank balance 36,000, bills receivable15,000, debtors 60,000, Stock 51,000
 Investment 72,0000, machinery 1,80,000, building1,20,000
Liabilities: Creditors 75,000; Loan 75,000; Bills payable 9,000
Q26 Open a 'T' shape account for machinery and put the following transactions on the proper side:
Rs.
(i) Machinery purchased 40,000
 (ii) Machinery sold 10,000
(iii) Machinery purchased 8,000
(iv) Machinery discarded 14,000
(v) Depreciation on machinery 1,000

Q27 Fill in the missing information in the following journal entries

S. Particulars L.F. Dr. Rs. Cr. Rs.

No.

1. _______ Account Dr. ______

To _____________ _____
(goods costing Rs. 5,000 destroyed by
fire)
2. Purchases Account Dr. ______
To _____________ 5000
To ----------------------- _____
(Purchased goods from Ayush for
Rs. 20000 issued a cheque to him
for Rs. 5000, balance payable after
one month. ______
3. Account Dr. 25,000
To 25,000
(Salary outstanding at the end of
the year.)
4. Account Dr.
To
(Being depreciation provided on
computers costing Rs 1,50,000 @
20% p.a)

Q28 Give an example for each of the following types of transactions:

1. Increase in one asset, decrease in another asset.
2. Increase in asset, increase in liability.
3. Increase in asset, increase in owner’s capital.
4. Decrease in asset, decrease in liability.
5. Decrease in asset, decrease in owner’s capital.
6. Decrease in liabilities, increase in owner’s capital.
7. Increase in one liability, decrease in another liability.
8. Increase in liabilities, decrease in owner’s capital.
Q29 1. Accounting principles and policies once adopted should be followed year after year unless there is a
change in law or accounting standards. It is based on Materiality Concept. Comment and explain with example.
2. Anticipate no profits and provide for all possible losses. Identify this is essence of which of the
accounting principles and explain same with example. Q 30 a)Explain any three advantages of
Accounting.
b) Distinguish between Cash Accounting and Accrual Accounting
Q31 Prepare Accounting Equation from the following. i) Raju
started business with cash Rs. 1, 50,000 ii) Bought goods for
cash Rs. 80,000 and credit for Rs. 40,000.
iii) Goods costing Rs. 75,000 sold at a profit of 100/3%. Half of the payment received in cash.
iv) Goods costing Rs. 10,000 sold for Rs. 12,000 on credit.
v) Paid for Rent Rs. 2,000 and for salaries Rs. 4,000.
vi) Goods costing Rs. 20,000 sold for Rs. 18,500 for Cash Q32 Journalise the
following transactions with narrations:
a) Rohan is declared insolvent. Received from his official receiver 70 paisa in the rupee on a debt of Rs. 900.
b) Bought a horse of Rs. 1, 00,000 for business.
c) Paid rent Rs. 600 of building by Cheque 1/3rd of the building is used by the proprietor for residential use.
d) Goods sold to Ramesh list price Rs.8000 trade discount allowed 5%.
e) Goods Returned by RameshRs.1,000
f) Paid to Manohar Rs. 6,800 & discount allowed by them Rs. 200.
Q33 Explain the following
a) Accounting is the language of the business.
b) Accounting Standards
c) Accounting Vouchers
Q34 Geetarattan commence business for buying and selling of readymade garments with Rs.16,00,000 as an investment.
Out of this he paid Rs.8,00,000 for the purchase of garments and Rs. 1,00,000 for furniture and Rs.1,00,000 for
computers and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for
Rs.600000 for cash and some garments for Rs.3,00,000 on credit to Mr. Shahib. Subsequently, he bought men’s garments
of Rs. 400000 from Mr. Satish. In the first week of the next month, a fire broke out in his office and stock of garments
worth Rs.200000 was destroyed. Later on, some garments which cost Rs.240000 were sold for Rs. 260000. Expenses paid
during the same period were Rs.30,000. Mr. Geetarattan withdrew Rs.40000 from business for his domestic use. From the
above, answer the following: A)What is the amount of capital with which Mr. Geetarattan started the business?
B)What fixed assets did he buy?
C)What is the value of the goods purchased?
D) Who is the creditor and state the amount payable to him?
E)Who is the Debtor and what is the amount receivable from him?
F)What is the total amount of expenses and drawings of Mr. Geetarattan?

________________________________________