SESSION ENDING EXAMINATION 2022-23

CLASS: XI
SUBJECT: ACCOUNTANCY
TIME: 03 HOURS M.M.: 80
General Instructions:
1. This question paper contains 34 questions. All questions are compulsory.
2. This questions paper is divided into two parts ,Part A and B
3. Questions 1 to 15 and 25 to 29 carries 1 marks each.
4. Questions 16 to 18 and 30 to 32 carries 3 marks each.
5. Questions 19,20 and 33 carries 4 marks each
6. Questions 21 to 24 and 34 carries 6 marks each
7. ** There is no overall choice. However, an internal choice has been provided in 7 questions of one mark,
2 questions of three marks, 1 questions of four marks and 2 questions of six marks.

Q. N. Questions Marks
PART A: Financial Accounting - I
Which of the following limitations of accounting states that accounts may be manipulated to conceal
(1) vital information?
(a) Accounting leads to window dressing 1 mark
(b) Accounting is not fully exact
(c) Accounting ignores price level changes
(d) Accounting ignores qualitative concepts

Which term is used for an accrual accounting technique used to allocate the cost of extracting natural
(2) resources such as timber, minerals and oil from the earth 1 mark
(a) Amortization (b) Obsolescence
(c) Depletion (d) None of these
Using “lower of cost and net realisable value’ for the purpose of inventory valuation is the
(3) implementation of which of the following concepts 1 mark
(a) Cost (b) Money measurement
(c) Objectivity (d) Prudence
Under which method of depreciation, the value of fixed asset could become to zero at the expiry of 1 mark
(4) the working life
(a) Straight line method (b) written down value method
(c ) both a and b (d) none of these
Or
Book value of an asset after 2 years is Rs 80,000 .Rate of depreciation is 10% p.a under straight line
method the original cost of an assets would be
(a) Rs 8,000 (b) Rs 1,00,000
 (c ) Rs 8,00,000 (d) Rs 80,000
From the following, which accounting equation is not correct? 1 mark
(5) (a) Assets – Liabilities = Capital (b) Asset - Capital = Liabilities
(c) Liabilities + Capital = Assets (d) None of these
Or
From the following calculate liabilities
Capital Rs 5,00,000 , cash in hand Rs 40,000 , building Rs 8,00,000, bank overdraft
Rs 50,000
(a) Rs 1,39,0000 (b) Rs 4,20,000
( c) Rs 3,90,000 (d) none of these
Goods purchased from Raghav for ₹ 4,500 but goods recorded as ₹ 5,400 in the Purchases Book. 1 mark
(6) The type of error related to:
(a) Error of Omission (b) Error of Commission
(c) Error of Partial Omission (d) Error of Principle
or
Bank Reconciliation Statement is prepared by:
(a) Debtors of the firm (b) Creditors of the firm
(c) Account holder of bank (d) Bank
The revenue recognition principle dictates that all types of income should be recorded or
(7) recognized when 1 mark
(a) Cash is received
(b) At the end of accounting period
(c) When they are earned
(d) When interest is paid
(8) The depreciation value after two years of an asset costing Rs 10,000 depreciated at 10% on
fixed instalment is Rs --------- and on reducing balance method is --------------
(a) Rs 8100 and Rs 8000
(b) Rs 9000 and Rs 8000 1 mark
(c) Rs 8000 and Rs 8100
(d) Rs 8000 and Rs 9000
Or
Which is not advantage of written down value method
(a) Income tax act accept this method for tax purpose
(b) Assets can be depreciated up to the net scrap value or zero.
(c) Large portion of depreciation charge in earlier years.
(d) None of these
Moon trader lucknow, provide the Following information for the year ended 31st March, 2023:
(9)
 Cost of Goods sold ₹ 500,000; Office expenses paid ₹ 1,10,000 (salary of ₹ 5,000 is
1 mark
outstanding and ₹ 25,000 Rent paid-in advance).

Goods sold for ₹ 10,00,000 (including ₹ 1,50,000 as debtors and bills receivable).
As per the Accrual base of accounting, the profits/loss of the Moon trader lucknow for the year ending
31st March, 2023 is ₹ _________.
(a) 3,90,000 (b) 4,10,000 (c) 4,90,000 (d)3,55,000
(10) The accounting concept which suggested that each transaction should be recorded in the books of
account by supporting vouchers of transactions ___________. 1 mark
(a) Objectivity (b) Dual aspect (c) Materiality (d) Consistency
(11) Given below are two statements : one labelled as assertion A and other labelled as Reason R 1 mark
Assertion (A) : provision is the amount of any known liability to be determined with substantial
accuracy.
Reason (R): provision and reserves used interchangeably
In the light of the above statement choose the most appropriate answer from the options given below:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A)
(B) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(C) (A) is true ,but (R) is false
(D) (A) is false ,but (R) is true
12 television sets of Rs 10000 each are purchased on 1.4,2022 , then on 1.10.2022
(12) 14 computer set of Rs 11000 each are purchased. On 01.06.2023 6 typewriter purchased for Rs 1 mark
2000 each and order given for another 6 typewriter then according to concept of accounting in
books which closed on 31.03.2024 must record
(a) Rs 12000 (b) Rs 24000
(c ) 286000 (d) RS 274000
GST is imposed on the production of all services and goods except…. 1 mark
(13) (a) Liquor intended for human ingestion
(b) Tobacco
(c) Health care service
(d) All of the above
(14) Which is not qualitative characteristics of accounting information 1 mark
(a) Relevance (b) Understandability
(c ) Comparability (d) Materiality
(15) When two or more errors are committed in such a way that the net effect of these errors on the debits 1 mark
and credits of accounts are nil, such errors are called .....
(a) Compensating errors (b) errors of principle
(c ) Errors of omission (d) Errors of commission
Or
If credit purchases from Raghu Rs 20000 were recorded through sales book
 Rectifying entry will be
(a) Sales a/c Dr 20000
Purchase a/c Dr 20000
To raghu’s a\c 40000
(b) Sales a/c Dr 20000
Purchase a/c Dr 20000
To suspense a\c 40000
(c) Raghu’s a\c Dr 40000
To Sales a/c 20000
To Purchase a/c 20000
(d) None of these

(16) Differentiate between Provision and Reserve on the basis of following: 3

(a) Basic Nature marks
(b) Purpose
(c) Use for payment of dividend
Or
Differentiate between capital and revenue reserve on the basis of following
(a) definition (b) tenure (c) dividend payout

(17) What is trial balance? Write two objectives of trial balance? 3

Or marks
Prepare trial balance from following information
Rawat’s capital Rs 60,000, Rohan (creditor) Rs 20,000, Rahul (debtors) Rs 82,000,sales Rs 70,000,
goodwill Rs 17,000, bills receivable Rs 5,000 , cash in hand Rs 3,000, stock (opening balance) Rs
43,000
(18) From the following business transactions of a business firm for the month of July 2020, prepare 3
Accounting Equation: marks
July 01: Balance of Cash ₹ 1,20,000; Goods ₹45,000; Debtors ₹24,000;

Capital ₹ 1,79,000 and creditors ₹10,000.

July 05: Goods sold (costing ₹15,000) on credit to Dinesh at 20% profits on cost.

July 12: Outstanding salary ₹9,000.

July 17: Commission received in advance ₹12,000.

July 26: Goods purchased for cash ₹25,000.

July 31: Goods given as charity ₹1,000.

(19) Mr.Satyanand Sharma Account has debit balance of ₹ 19,000. In the month of March, 2020 the 4

following transactions has been made with him, as under: marks

March 05: Goods sold (costing ₹ 9,000) to him at 20% profit on credit.

March 11: Cheque received from him for ₹ 9,500 and discount allowed to him ₹ 500.

March 13: Goods returns from him for ₹ 3,000.

March 22: Cash received from him ₹ 12,000 on his account.

March 25: Goods sold to him for cash ₹ 7,000.

March 29: Received cheque from him dated March 11 was dishonoured.
March 31: Mr.Satyanand Sharma declared insolvent and from his estate only 50 paise in a rupee was
recovered.
Prepare Mr.Satyananad Sharma’s Account from the above transactions.
(20) Write the further classification of Assets on basis of non current assets and currents assets 4
Or marks
Write the further classification of liabilities on basis of non current liabilities and current liabilities

(21) From the following particulars of Mr. Vinod, prepare bank reconciliation statement as on March 31, 6
2005. marks
1. Bank balance as per cash book ₹ 50,000.

2. Cheques issued but not presented for payment ₹ 6,000.

3. The bank had directly collected dividend of ₹ 8,000 and credited to bank account but was not
entered in the cash book.
4. Bank charges of ₹ 400 were not entered in the cash book.

5. A cheque for ₹ 8,000 was deposited but not collected by the bank.

6. Discounted bill from the bank was dishonoured but not taken into cash book of ₹ 12,000.
(22) Journalise the following transactions in the books of Himanshu: 6
Jan. 02: Goods use for household’s₹ 2,000. marks
Jan. 08: Charge depreciation @ 10% p.a. for two months on Machinery costing ₹ 30,000.
Jan. 12: Provide interest on capital on ₹ 1,50,000 at 6% p.a. for 9 months.

Jan. 15: Goods destroyed by fire ₹ 4,500.

Jan. 19: Goods sold (list price ₹ 20,000) at 10% trade discount and at 5% cash discount, to Mukesh.
Half of payment received in cash and the balance by a cheque.
Jan. 29: Invested in the shares of Government sector ₹ 50,000.
OR
Record the following transactions in double column cash book of Mr. Rakesh Verma
and balance it.
Sept. 01: Balance of cash ₹ 22,000 and Bank overdraft ₹ 2,500.

Sept. 06: Received cheque on October 28th, for ₹ 4,000 from Gaurav sent into the bank.

Sept. 10: Bank has collected and deposited: Interest of ₹ 6,000; Dividend of ₹ 8,000.

Sept. 16: Bank has paid several payments on its due date: Insurance premium of ₹ 3,000 and School

fees of the child of Rakesh Verma ₹ 5,000.

Sept. 24: Cash deposited into the bank ₹ 12,000.

Sept. 29: Sold goods (costing ₹ 25,000) at 20% profit for cash.

(23) B & Company purchased Machinery on 1st April, 2019, for Rs 54,000 and spent Rs 6,000 on its 6 marks
installation. On 1st December, 2020, it purchased another machine for Rs 30,000.On 30th June 2021,
the first machine purchased on 1st April, 2019, is sold for Rs 36,000 and on the same date it purchased
new machinery for Rs 80,000.
Depreciation was provided on machinery @ 10% p.a. on Original Cost Method annually on 31st March.
Give the machinery account for three years.

Or
On April 1 , 2015 following balances appeared in the books of M/s Kamisha traders : furniture
account Rs 50,000 , provision for depreciation on furniture Rs 22,000.on October 1,2015 a part of
furniture purchased for Rs 20,000 on 01 April ,2011 was sold for Rs 5000.on the same date a new
furniture costing Rs 25,000 was purchased .the depreciation 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 and disposal of furniture account for the
year ending march 31,2016.
24 Trial balance of M/s Rathi Brothers did not agree and the accountant put the difference to suspense 6 marks
account. He discovered the following errors:
(a) Sales return book overcast by ₹ 800.
 (b) Purchases return to Sahu ₹ 2,000 were not posted.

(c) Goods purchased on credit from Narula ₹ 4,000 though taken into stock, but no entry was passed in
the books.
(d) Installation charges on new machinery purchased ₹ 500 were debited to sundry expenses account

as ₹ 50.
(e) Rent paid for residential accommodation of Mohan (the proprietor)
₹ 1,400 was debited to Rent account as ₹ 1,000.
Rectify the errors and prepare suspense account to ascertain the difference in trial balance.
PART B: Financial Accounting – II
(25) Net Sales ₹ 5,00,000; Cost of goods sold ₹ 3,00,000 and Operating Expenses ₹ 1,20,000.
1 mark
Operating profit of the firm will be ₹ ________.
(a) Rs 320000 (b) Rs 80000
(c ) Rs 380000 (d) none of these
(26) If opening capital is Rs 50000 as of april 1, 2021 and additional capital introduced Rs 10000 on January
2022.interest charge on capital 10% p.a.the amount of interest on capital shown in the profit and loss 1 mark
account as on march 31, 2022 will be .....
(a) Rs 5250 (b) Rs 6000
( c) Rs 4000 (d) Rs 3000
(27) Net profit of a firm before charging manager’s commission is Rs 21000.if the manager is entitled to 5% 1
commission after charging such commission how much manger will get as commission ? mark
(a) Rs 1000 (b) Rs1050
(c ) Rs 990 (d) none of these
(28) Calculate sales if rate of gross profit is 20% on cost of goods sold and cost of goods sold is Rs 1 mark
120000
(a) Rs 144000 (b) Rs 24000
(c ) Rs 150000 (d) none of these
Or
Calculate gross profit if rate of gross profit is 20% on sales and cost of goods sold is Rs 240000
(a) Rs 60000 (b) Rs 48000
(b) Rs 108000 (d) none of these
(29) Goods costing ₹ 8,000 destroyed by fire and insurance company admitted a claim for ₹ 5,000 only. 1 mark

Give Journal entry to adjust in final accounts.

(a) Loss by Fire A/c Dr. 3,000
Insurance Claim Receivable A/c Dr. 5,000
To sales A/c 8,000
(b ) Loss by Fire A/c Dr. 3,000
Insurance Claim Receivable A/c Dr. 5,000
To Purchase A/c 8,000
(c ) Loss by Fire A/c Dr. 3,000
 Insurance Claim Receivable A/c Dr. 5,000
To trading A/c 8,000
(d) P & L a/c Dr 80,000
To Loss by Fire A/c 3,000
To Insurance Claim Receivable A/c 5,000
Or
The trail balance of a firm shows debtors Rs 30,000, bad debts Rs 200 and provision for doubtful debts
at Rs 1400. A 10% provision for doubtful debts is to be created on debtors the profit and loss account
for the current year is to be debited by
(a) Rs 3200 (b) Rs 3000
( c) Rs 4600 (d) Rs 1800
(30) Prepare balance sheet from the following information 3mark
Net loss Rs 4,338 , capital Rs 80,000, cash in hand Rs 20,100 , debtor Rs 19,012, closing stock Rs
20,000, furniture Rs 6,300, building Rs 42,750 , outstanding salaries Rs 1,000
Bills payable Rs 3000.
(31) State with reasons whether the following are capital , revenue expenditure, deferred revenue 3 mark
expenditure
(1) A new machine is purchased for Rs 60,000, Rs 800 were spent on its carriage and Rs 1500
were paid as wages for its installation.
(2) Rs 1500 were spent on the repair of new machinery
(3) Removal of stock from the old site to new site cost Rs 4,20,000.the new site is more
favourably located

(32) An exact from a Trail Balance on March 31st, 2019 is given below: 3 marks
Particulars Amount (₹)
Sundry Debtors 32,000
Bad Debts 2,000
Provision for Bad Debts 3,500
Additional Information:
Write-off further Bad Debts ₹ 1,000 and create a provision for Doubtful Debts @ 5% on debtors.
Pass necessary Journal entries for the above adjustments.
(33) Calculate the operating capitaland net profit. 4 marks
Gross profit Rs 4,60,000, net sales Rs 1,10,000, administrative expenses Rs 45,000 , selling and
distribution charges Rs 65,000 . loss due to fire Rs 20,000, commission received Rs 3,000 and closing
stock Rs 20,000.
(34) The following balances were extracted from the books of Mr. Surya Pratap on 31st December, 2019: 6 marks
Ledger Accounts Dr. Balance Cr. Balance
Capital 24,500
Drawings 2,000
General Expenses 2,500
Building 11,000
Machinery 9,340
Stock (01.01.2019) 16,200
Power 2,240
Taxes & Insurance 1,315
Wages 7,200
 Sundry Debtors 6,280
Sundry Creditors 2,500
Charity 105
Bad Debts 550
Bank Overdraft 11,180
Sales 65,360
Purchases 47,000
Scooter 2,000
Bad Debts Provision 900
Commission 1,320
Trade Expenses 1,780
Bills Payable 3,850
Cash 100
Total 1,09,610 1,09,610
Prepare trading account and P & L account for the year ended 31st December, 2019 after taking into
account the following:
1. Stock on 31st December, 2019 was valued at ₹ 23,500.

2. Write-off further Bad Debts ₹ 160 and maintain the provision for Bad Debts at 5% on Sundry
Debtors.
3. Depreciate Machinery by 10% and Scooter by ₹ 240.

4. Provide ₹ 750 for outstanding interest on bank overdraft.

5. Prepaid Insurance is to the extent of ₹ 50; Commission receivable amounting to ₹ 50.

6. Provide Manager’s Commission at 10% on net profit after charging such commission.