NAME _____________________________ CLASS XI SEC __A____ ROLL NO.

______

LIONS PUBLIC SCHOOL

MODEL TEST PAPER -TERM- II [SESSION 2023-24]
SUBJECT: ACCOUNTANCY
TIME: 3 HRS. M.M: 80
TOTAL NO. OF PRINTED PAGES-08
GENERAL INSTRUCTION
There are 34 questions in all. All questions are compulsory.
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SECTION ‘A’

1. The vouchers which are prepared for transactions involving cash, i.e. cash 1
transactions, are known as ________ vouchers.
a) Cash
b) Credit
c) Transfer
d) Unilateral
2. Assertion (A): Statements prepared through financial account are helpful in decision 1
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.

3. Patent account is a: 1
a) Nominal Account
b) Real Account
c) Personal Account
d) None of these
4. What shall be the amount of Capital if Cash is Rs.5,000; Furniture Rs.12,000; Stock 1
Rs.30,000 and Creditors Rs.6,000?
a) Rs.41,000
b) Rs.43,000
c) Rs.53,000
d) Rs.47,000

OR

Purchase of machine on credit means:

a) Increase in asset and decrease in the asset
b) Increase in asset and decrease in liability
c) Decrease in asset and increase in capital
d) None of these

5. Which of the following correctly differentiates between provision and reserves? 1

1. A provision is a charge against profit whereas reserve is an appropriation of
profit.
2. Provision is made for a known liability or expense the amount of which is not
certain whereas reserve is created for strengthening the financial position of the

MTP/T–II // ACCCOUNTANCY/XI/ 1
 business.
3. Provision is deducted before calculating taxable profits whereas a reserve is
created from profit after tax and therefore it has no effect on taxable profit.
4. All of these
a) Option 2
b) Option 1
c) Option 3
d) Option 4
OR
Rule of Debit and Credit for Personal account is
a) Dr. the receiver and Cr. the giver
b) Dr. what goes out and Cr. what comes in
c) Dr. all expenses and Cr. all gains & Dr. what goes out and Cr. what comes in
d) Dr. all expenses and Cr. all gains
6. When a total of the debit side of an account exceeds the total of its credit side, the 1
account is said to have ________.
a) Debit Balance
b) None of these
c) Debit as well as credit balance
d) Credit Balance
Question No. 7 to 8 are based on the given text. Read the text carefully and
answer the questions: A business purchased goods for Rs.2,00,000 and sold 75% of
such goods during accounting year ended 31st March 2020. The market value of
remaining goods was Rs.43,000. Accountant valued closing stock at cost. According to
him,
1. Owner of the business is treated as creditor to the extent of his capital;
2. All expenses incurred to earn revenue or a particular period should be charged
against that revenue to determine the net income:
Financial statements are prepared on 31st March every year.
7. A business purchased goods for Rs.200,000 and sold 75% of such goods during the 1
accounting year ended 31st March, 2020. The market value of the remaining goods was
Rs.43,000 Accountant valued closing stock it cost: Identify the concept violated in the
above situation.
a) Matching
b) Conservatism
c) Business entity
d) Accounting period
8. Under which concept owner of the business is treated as creditor to the extent of his 1
capital.
a) Conservatism
b) Business entity
c) Matching
d) Accounting period
9. Error of commission arises when: 1
a) Any transaction is incorrectly recorded, either wholly or partly.
b) Any transaction is left wholly or partly.
c) Any transaction is recorded in a fundamentally incorrect manner.
d) All of the above.
10. How secret reserve can be created 1
a) By making excessive provisions
b) By charging capital expenditure to revenue
c) Under valuating stock
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 d) All of these
11. Salman paid Rs.8,800 in settlement of his account of Rs.10,000. Discount allowed will 1
be recorded in _________.
a) Cash Book
b) Journal Book
c) Both cash book and journal
d) Petty cash book

12. Cash Balance shown in the Balance sheet is of 1

a) Cash book
b) Adjusted cash book
c) Pass Book
d) None of the above
13. Value of asset as existing in the books of account is called 1
a) Book value
b) Original Value
c) Cost Value
d) None of these
OR
Acceptance received from Debtor is known as ________.
a) Debtor
b) Bill Receivable
c) Bills Payable
d) Creditor

14. IFRS is based on 1

a) Historical Cost
b) Fair Value
c) Both historical cost and fair values
d) None of these
15. If sales of goods returns them, he will prepare 1
a) Credit Note
b) Debit Note
c) Both a) and b)
d) None of these
16. What is Specific Reserve? 1
OR
Provisions are
a) External transactions
b) Internal transactions
c) can be a) or b)
d) None of these
17. a) If total assets of a business are Rs.1,30,000 and net worth is Rs.80,000, calculate the 3
creditors.

b) Calculate total assets if : Capital is Rs.40,000, Creditors are Rs.25,000, Revenue

during the period is Rs.50,000 and Expenses during the period are Rs.40,000.
18. Explain following terms of Accounting with examples: 3

a) Window Dressing
b) Historical Cost

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 c) Book Keeping

19. How the effect of the following transactions on assets, liabilities and capital through 3
Accounting Equation:

a) Started business with cash Rs.20,000; loan from bank Rs.20,000; Stock
Rs.40,000; and Furniture Rs.10,000.
b) Goods worth Rs.10,000 bought at 20% trade discount from Rinku; paid half the
amount in cash and half by cheque.
c) Received Rs.20,000 as security deposit and Rs.5,000 as rent from sub-tenant.
d) Entire bank loan was liquidated with interest at 2%.

20. Prepare a Purchase Day book of Shiv Stationery from the following information. 3

Date Details of Purchase

Mar,22, 1 Bought from M/s S.K. and Co., Chennai.
a) 7 Gross pencils @ Rs.5 each.
b) 3 scores register @ Rs.30 each
Less Trade discount @10%

Mar,22, 3 Purchased from M/s Dinanath and Sons, Delhi for

cash
a) 10 Dozens Note pad @ Rs.5 each; less trade
discount @ 10%

Marc,22, 4 Purchased from M/s Suchitra Stores, Delhi.

a) 10 reams ruled paper @ Rs.1,000 per ream
b) 12 gross erasers @ Rs.3 each.
c) 15 dozen ball point pens @ Rs.200 per dozen.
21. Give Journal for the following transactions: 4
a) Sold goods costing Rs.40,000 at a profit of 100% to Mohan, IGST being
12%. Mohan paid half the amount immediately and availed a cash discount of
5%.
b) Goods worth Rs.12,000 were used for the construction of show cases to kept
at proprietor’s residence and also paid wages Rs.8,000 for the same.
c) Fill up:

Date Particulars L.F. Debit Credit

(Rs) (Rs.)
_______________ Dr. 60,000
________________ Dr. 2,000
To __________ 62,000

( Being purchased goods and

paid cartage on behalf of seller)

OR

Books of trader showed balance of Rs.6,97,800 in Machinery a/c as at 1/4/21. A

Machine bought for Rs.3,00,000 on 1/10/18 was now disposed off on 30/9/21 for
Rs.1,41,000. Prepare Machine a/c for 2021-22 charging depreciation @20% p.a. by
W.D.V. method.
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22. From the following particulars of Mr. Vinod, prepare bank reconciliation statement as 4
on March 31, 2022.
a) Debit bank balance as per bank statement was Rs.31,000.
b) Cheques for Rs.31,500 drawn on 21/3/22 out of which a cheque of
Rs.12,000 was presented for the payment in next month and a cheque
Rs.10,000 returned unpaid on 1/4/22 on account of signature mismatch.
c) A customer directly deposited cheques for Rs.45,000 on 30/3/22 out of which
a cheque of Rs.13,000 got cleared in the month of March.
d) Bank has credited the merchant with Rs.23,000 for the dividends received on
investment but no entry in cash book.

23. Record the following transactions in double column cash book of Ms. Meera Verma 6
and balance it.
Sept. 01: Balance of cash Rs.40,500 and Bank overdraft Rs.16,200.
Sept. 03: Received a cheque from sunder of Rs.24,300
Sept. 06: Discounted a Bills receivable Rs.12,000 of three months from bank 10% p.a.
Sept. 10: Bank has collected Interest of Rs.6,000; Dividend of Rs.8,000.
Sept. 16: Cheque of Sunder deposited in Bank.
Sept. 24: Sold goods worth Rs.16,000 to Rehman against 70% cash payment.
Sept 25: Cheque of Sunder has been reported dishonoured and he settled the account
in cash together with Rs.200 as dishonouring charges.
Sept. 29: Sold goods (costing Rs.25,000) at 20% profit for cash.

24. Rectify the following errors: 6

a) Discount Rs.2,300 allowed by Mohan was credited to Mohan a/c as Rs.3,200.
b) Goods worth Rs.6,500 returned by Shayam was passed through purchase book
and there from posted as Rs.5,600 to the Shyam’s a/c.
c) Repairs of Rs.75,000 (60% capital in nature) incurred on a machine for which
the bill was passed through the purchase book.
d) Apprentice premium receivable a/c was casted in excess by Rs.9000.
e) Goods worth Rs.35,000 bought for an employes was debited to purchase a/c.
f) Received Rs.3,500 from Farhan, an old customer whose a/c had already been
written off as bad was credited to his a/c by Rs.5,300.

25. X ltd. bought a machine for Rs.5,64,000 on 1/7/17 from MM traders and spent 6
Rs.36,000 on its installation. Further additions were done on 1/1/18 and 1/1/20 for
Rs.5,00,000 and Rs.8,00,000. A part of machine bought on 1st July whose depreciated
value as on 1/4/19 was Rs.1,65,000 become obsolete and was sold on 30/9/19 for
Rs.1,29,000. Prepare Machine a/c charging depreciation @10% p.a. as per fixed
instalment method for three years.

OR

Sunrise Ltd. purchased a Second hand machine for Rs.5,50,000 and spent Rs.50,000 on
the repairs. Depreciation is to be provided @10% p.a. following straight line method.
The machine sold for Rs.4,40,000. Accounting year is financial year. Calculate the gain
or loss on sale of the machine in each of the following alternative cases by giving
proper working notes.

a) If date of purchase is 1st April, 2015 and date of sale is 31st March, 2018.
b) If date of purchase is 1st April, 2016 and date of sale is 30th September, 2018.
c) If date of purchase is 1st July, 2015 and date of sale is 31st March, 2018.
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26. Complete the following: 6
a) The management of the firm is remarkably competent thereby leading huge
profits but the firm’s accountant cannot take into account while preparing the
accounts because of ________ concept.
b) Closing stock is taken into account on least value out of the market price and the
cost price. This is an example of _________ concept.
c) The _________ concept states that depreciation on fixed assets must be accounted
for before arriving at the profit or loss of an accounting period.
d) Purchase of pen is treated as expense according to ______ concept.
e) __________ are the amounts of the business earned by selling its product or
providing services to customers.
f) _________ are economic resources of an enterprise that can be usefully expressed
in monetary terms.
PART B
27. Net Sales Rs.6,00,000. Gross Profit 25% on cost. 1

Calculate cost of Goods sold.

28. Deferred Advertisement expenditure is an example of: 1
a) Current Asset
b) Tangible Asset
c) Intangible Asset
d) Fictitious Asset
OR
Computers purchased for resale is:
a) Capital expenditure
b) Revenue expenditure
c) Deferred revenue expenditure
d) None of these
29. Capital receipts are shown in 1
a) Balance sheet
b) Trading account
c) Profit and loss account
d) Capital account
OR

Capital receipts and Revenue receipts

a) are distinguished
b) are not distinguished
c) may or may not distinguished
d) must not be distinguished

30. Provision for doubtful debt is made on debts that are 1

a) Doubtful of recovery
b) Not doubtful of recovery
c) Total debtors
d) Total debtors less provision for doubtful debt.

31. Cash sales of a business were Rs.2,00,000 which was 40% of credit sales. Calculate the 3
gross profit if goods were sold at a profit of 25% on cost.

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32. The following balances appeared in the trial balance of M/s Kapil traders as 31st March, 3
2022.
Sundry Debtors. Rs.3,05,000
Bad debts Rs.5,000
Provision for doubtful debt Rs.20,000
Adjustment:
a) Further Bad debts Rs.5,000
b) Maintain provision for doubtful debt 10%
Show the treatment in Profit and loss a/c and Balance sheet.

OR
Record the journal of above transactions.
33. Calculate the amount of gross profit, operating profit and net profit on the basis of the 4
following balances extracted from the books of M/s Ram & Sons for the year ended
March 31, 2022.
Opening stock Rs.60,000
Net sales Rs.10,00,000
Direct Expenses Rs.5,00,000
Net purchases Rs.3,00,000
Administration expenses Rs.45,000
Selling and distribution expenses Rs.65,000
Loss due to fire Rs.20,000
Interest on loan Rs.10,000
Closing stock Rs.70,000

34. The following is the Trial Balance of Neelam Steels Ltd. as on 31st March 2022. 6

Name of Accounts Debit (Rs.) Credit (Rs.)

Cash in hand 1,080
Cash at Bank 5,260
Purchases and Sales 81,350 1,97,560
Return inwards and outwards 1,360 1,000
Wages 20,960
Fuel and Power 9,460
Carriage on sales 13,400
Rent 4,080
Opening inventory 11,520
Building 60,000
Freehold land 20,000
Machinery 36,000
Salaries 33,000
Patents 12,000
General Expenses 6,000
Insurance 1,200
Capital 1,42,000
Drawings 10,490
Sundry Debtors and Creditors 29,000 15,600
Total 3,56,160 3,56,160

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You are required to prepare Trading Account, Profit and Loss Account and Balance
sheet as on that date after considering the following adjustments-

1. An annual insurance of Rs.200 to expire on 31/5/22 and life insurance premium

of Rs.300 was debited to insurance a/c.
2. Provision for doubtful debt be maintained at 5%.
3. Wages include a sum of Rs.4,000 spent on the erection of cycle shed for
employees.
4. Stock as at 31/3/22 was valued at Rs.75,000 (realizable value Rs.55,000)
5. New building of Rs.10,000 was bought on 30/9/21. Depreciation @10%p.a.
6. Manager is to be given a commission of 10% on Net Profits before charging
such commission.

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