Aaditya Vidya Vihar Hr. Sec.

School, Khargone
Class:- 11th Weekly Periodic Test -I M.M. : 50
Subject: - Accountancy Session – 2023-24 ( SET - B) Time : 2 Hours

Q.1 Which of the following is not an objective of Accounting? 1

(A) Maintaining records (B) Estimating profit and loss
(C) Providing useful information to various users (D) Recording all the qualitative factors
Q.2 Assertion: The financial statements do not reflect the true position of a business. 1
Reasoning: Accounting information is sometimes based on estimates.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) A is incorrect, but R is correct.
Q.3 ___________ are the assets which are actually not assets but represent deferred expenses
and losses. 1
(A) Current Assets (B) Fixed Assets (C) Fictitious Assets (D) Nominal Assets
Q.4 Which expenditure are incurred for day to day running of the business & maintenance of
capital assets ? 1
( a ) Capital Expenditure (b) Revenue Expenditure
( c ) Investment Expenditure ( d ) Fixed Expenditure

Q.5 Which of the following is not a business transaction? 1

(A) Bought furniture of 10,000 for business.

(B) Paid for salaries of employees 5,000

(C) Paid son’s fees from her personal bank account 20,000.

(D) Paid son’s fees from the business 2,000.

Q.6 Information in financial reports is based on…………… transactions. 1
(A) Economic ( B) Political
(C) Social (D) Cultural

Q.7 Which accounting concept tells that depreciation is to be charged as per one particular method
year to year? 1
(A) Revenue Recognition (B) Consistency
(C) Matching (D) Materiality
Q.8 Meeta and vaishali are two partners of a firm. The firm receives an order for goods. Vaishali 1
wants to include it in the sales figure but Meeta opposes it. How should the issue be settled?
(A) Amount of goods should be included in purchase figure.
(B) Amount of goods should be included in sales figure.
(C) Amount of goods should be excluded from sales figure.
(D) Amount of goods should be excluded from purchase figure.
Q.9 The process of ascertaining the amount of profit earned or loss incurred during a particular
period involves deduction of related expenses from the revenue earned during that period.
This concept emphasizes exactly on this aspect. It states that expenses incurred in an
accounting period should be matched with revenues during that period. It follows from this that
the revenue that expenses incurred to earn these revenues must belong to the same
accounting period.
Which accounting concept is being referred above: 1
(A) Principle of Prudence (B) Dual Aspect Concept
(C) Matching Cost Concept (D) Going Concern Concept.
Q.10 On inter-state sale of goods, which of the following account is credited ? 1
(A) Output CGST A/c (B) Output IGST A/c
(C) Input IGST A/c (D) Output SGST A/c
Q.11 Consider the following statements with regard to the accounting treatment of various accounts:
(i) Increase in asset is debited and decrease in asset is credit. 1
(ii) Increase in expenses/losses is debited and decrease in expense/losses is credited.
(iii) Increase in liabilities is credited and decrease in liabilities is debited.
(iv) Increase in capital is credited and decrease in capital is debited.
Identify the correct statement/statements:
(A) (i) and (ii) (B) (ii) and (iii) (C) (i), (iii) and (iv) (D) (i),(ii), (iii) and (iv)

Q.12. Pick the odd one out: 1

(A) Computer (B) Goodwill (C) Patents (D) Trade Mark

Read the following hypothetical situation, answer question no. 13 and 14.
A business purchased goods for 2,00,000 and sold 75% of such goods during accounting
year ended 31st March, 2020. The market value of remaining goods was 43,000.
Accountant valued closing stock at cost. According to him:
(i) Owner of the business is treated as creditor to the extent of his capital;
(ii) All expenses incurred to earn revenue of a particular period should be charged against that
revenue to determine the net income.
Financial statements are period on 31st March ever year.
Q.13 ‘A business purchased goods for 2,00,000 and sold 75% of such goods during accounting
year ended 31st March, 2020. The market value of remaining goods was 43,000. 1
Accountant valued closing stock at cost.’ Identify the concept violated in the above situation.
(A) Conservatism (B) Business entity (c) Accounting period (D) Matching

Q.14 Under which concept, owner of the business is treated as Creditor to the extent of his capital?
(A) Conservation (B) Business entity (C) Accounting period (D) Matching 1

Q.15 Ram sold the goods to Rahim on credit for 10,000. What will be the journal entry? 1
 (A) Rahim Dr. 10,000
To Ram 10,000
(Being goods sold to Rahim on credit)
(B) Ram Dr. 10,000
To Rahim 10,000

(C) Sales A/c Dr. 10,000

To Rahim 10,000
(D) Rahim Dr. 10,000
To Sales A/c 10,000
(Being goods sold to Rahim on credit)

Q.16 Consider the following statements with respect to the advantages of Petty Cash Book: 1
(i) It saves the time of the main cashier.
(ii) It helps in controlling the petty expenses.
(iii) Posting from Petty Cash Book is made at the end of a specified period. This saves time
and simplifies the posting.
Identify the correct statement/statements:
(A) (i) and (ii) (B) (ii) and (iii) (C) (i) and (iii) (D) (i), (ii), and (iii)

Q.17 Pick the odd one out: 1

(A) Return Inward Book (B) Return Outward Book (C) Journal Paper (D) Purchases Account

Q.18 X, Ltd. Purchased a machinery for 1,00,000 and paid 15,000 for its installation. Every
year it depreciates its assets at the rate of 10%. What will be the correct journal entry for it?
(1)

(A) Depreciation A/c Dr. 10,000

To Machinery A/c 10,000
(Being machinery depreciated at the rate of 10%)
(B) Depreciation A/c Dr. 11,500
To Machinery A/c 11,500
(Being machinery depreciated at the rate of 10%)
(C) Machinery A/c Dr. 10,000
To Depreciation A/c 10,000
(Being machinery depreciated at the rate of 10%)
(D) Machinery A/c Dr. 11,500
To Depreciation A/c 11,500
(Being machinery depreciated at the rate of 10%)

Q.19 Which of the following errors do not affect the trial balance: 1
(A) Errors of principle (B) Compensating errors
(C) Errors in carrying forward (D) Both (A) and (B)
Q.20 Which of the following transaction is not shown in Cash Book? 1
(A) Cheques issued but not yet presented in bank.
(B) Credit sale to Mohan and he promised to make payment through cheques after two
months.
(C) Cheques deposited but not credited.
(D) Cheque deposited but dishonoured.

Q.21 Explain the following terms citing an example for each: 3

(i) Double Entry System of Accounting.
(ii) ACCRUAL BASIS

Q.22. Journalise the following transactions: 3

(i) Goods destroyed by fire for 4,500
(ii) Paid 1,500 in cash as wages on installation of machinery.
(iii) Issue a cheques in favour of M/s. Parmatma Saran & Sons on account of purchase of
goods 7,500.

Q.23 Explain Modern Rules Of Debit & Credit with one example each Nature of Account. 4

Q.24 Chhabra & Sons find that overdraft shown by their Cash Book on 31st March, 2013 is
30,500 but the Pass Book shows a difference due to the following reasons:-
(i) A cheques for 6,000 drawn in favour of Shyam has not been presented for payment.
(ii) A post-dated cheques for 1,000 has been debited in the Bank column of the Cash Book
but it could not have been presented in Bank.
(iii) Cheque totalling 12,000 deposited with the bank have not yet been collected.
(iv) A bill for 5,000 was retired by the bank under a rebate of 120 but the full amount of
the bill was credited in the bank column of the Cash Book.

Prepare a Bank reconciliation statement and find out the balance as per pass book. 4

Q.25 Rectify the following errors: 5

Credit purchases from Raghu 20,000
(i) were not recorded.
(ii) were recorded as 10,000
(iii) were recorded as 25,000
(iv) were not posted to his A/c.
(v) were posted to Raghav’s A/c.

Q.26 An asset is purchased for 1,10,000. Depreciation is to be provided annually according to

the straight line method. The useful life of the asset is 10 years and the residual value is 10,000.
You are required to find out the amount of annual depreciation and prepare asset account for the first
three years. 5

Q.27 EXPLAIN Types Of Accounting Errors. 6

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