Answers and Solutions

SESSION ENDING EXAMINATION 2022-23

KENDRIYA VIDYALAYA SANGATHAN, GURUGRAM REGION

CLASS XI
Subject: Accountancy (055)

1. (B) Reliability
OR
(A) Revenue Recognition Concept

2. (D) All of the Above

3. (B) Credit nature

OR
(C) Credit Side of Bank Column

4. (A) Going Concern

5. (C) Loss due to Labor Strike

6. (D) Debited, ₹1,800

OR
(D) All of these

7. (C) ₹17,00,000

8. (D) Consistency

9. (C) Journal Proper

OR
(C) Cash Deposited into Bank

10. (C) Entry in two aspects of transaction

11. (A) Creditors

OR
(A) ₹7,00,000

12. (C) Goods for resale

13. (D) All of these

OR
(D) All of these

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 14. Difference between Provision and Reserve

Basis Provision Reserve

Nature Purpose It is a charge against profit. It is an appropriation of profit.

It is created to meet known
liability.
Effect on profit Provision is debited to the
Profit and Loss Account. So, it
reduces the profit.
It is created to strengthen the
financial position and to meet
an unknown liability.
Reserve is an appropriation of
profit. So, it reduces the
divisible profit.

16. Cash ₹45,000 + Machinery ₹25,000 + Stock ₹40,000 = Creditors ₹40,000 + Capital ₹70,000.

17. Sales A/c will be credited with ₹1,39,400.

Hint: Sale of old Air Conditioners will not be recorded in Sales Book.

18. (A) Capital Expenditure (B) Revenue Expenditure (C) Capital Expenditure

19. (A) Furniture A/c Dr. 12,000

Input IGST A/c Dr. 1,440
To Cash A/c 13,440
(Furniture purchased for cash, IGST paid @12%)

(B) Drawings A/c Dr. 5,000

To Bank A/c 5,000
(Cash withdrawn from bank for personal use)

(C) Salary A/c Dr. 2,000

To Cash A/c 2000
(Salary paid to Mohan)

(D) Cash A/c Dr. 600

To Interest A/c 600
(Interest received from Vipul)

OR

(A) Interest on Capital A/c Dr. 30,000

To Capital A/c 30,000
(B) Prepaid Insurance A/c Dr. 2,500
To Insurance A/c 2,500
(C) Salary A/c Dr. 3,400
To Salary Outstanding A/c 3,400
(D) Commission A/c Dr. 700
To Unearned Commission A/c 700

20. Ans. Credit Balance as per Pass Book ₹45,600.

OR
Overdraft balance as per pass book 18,930.
 21. MACHINERY ACCOUNT

Dr Cr
Date Particulars ₹ Date Particulars ₹
2016 2017
Apr- 40,00 Mar-
01 To Bank A/c (i) 0 31 By Depreciation A/c
Oct. 25,00
1 To Bank A/c (ii) 0 (i) 4,000
(ii) 1,250 5,250
By Balance c/d :
(i) 36,000
59,75
(ii) 23,750 0

65,00 65,00
0 0

2017 2017
Apr- Dec.
01 To Balance b/d 31 By Depreciation 3,000
(i) Dec. By Loss on Sale of
36,000 31 Machinery 8,000
(ii) 59,75 Dec.
23,750 0 31 By Bank A/c
25,00
(36,000 - 3,000 -8000) 0
2018
Mar-
31 By Depreciation (ii) 2,500
21,25
By Balance c/d (ii) 0

59,75 59,75
0 0

2018 2018
Apr- To Balance b/d 21,25 Jun-
01 (ii) 0 30 By Depreciation 625
Jun- 20,00 Jun- By Loss on Sale of
30 To Bank A/c (iii) 0 30 Machinery 5,000
Jun-
30 By Bank A/c
15,62
(21,250 - 625 - 5,000) 5

2019
Mar- By Depreciation A/c (ii) 1,500
 31
18,50
By Balance c/d (iii) 0

41,25 41,25
0 0

22.
Dr Cr
Payment
Date Receipts LF Cash Bank Date s LF Cash Bank
Sep. 01 Bal. b.d 22,000 Sep. 01 Bal. b/d 2,500
Insuranc
Sep. 06 Gaurav 4,000 Sep. 16 e 3,000
sep. 10 Interest 6,000 Sep. 16 Drawings 5,000
Dividen
d 8,000
sep. 24 Cash C 12,000 Sep. 24 Bank C 12,000
sep. 29 Sales 30,000 Sep. 30 Bal. c/d 40,000 19,500

52,000 30,000 52,000 30,000

23. (A) Purchases A/c Dr.2,100

Sales A/c Dr. 2,100
To Vinay A/c 4,200
(B) Prepaid Insurance A/c Dr. 400
To Suspense A/c 400

(C) Retun Inwards A/c Dr. 700

To Suspense A/c 700

(D) Sales A/c Dr. 4,000

To Plant A/c 4,000

(E) Purchases A/c Dr. 1,700

Sales A/c Dr. 1,700
To Suspense A/c 3,400

(F) Suspense A/c Dr. 400

To Discount Received A/c 400 6

PART - B FINANCIAL ACCOUNTING41

24. (D) Deduct prepaid expenses to respective expenses and show it as an asset]
25. (A) For the frill accounting year OR 1
(A) Machinery A/c 26. (C) Sales-Cost of Goods Sold 1
27. (C) w,80,ooo 1
28. (C) Deferred Revenue Expenditure 1
29. (C) Purchases Account 1
30. (C) Balance Sheet 1

31. Net amount to be credited to Profit and Loss Account

OR 3

No, 1 do not agree with the given statement.

When Goods were not insured : In such a case, business has to bear the entire loss. So
amount of entire loss is shown on the debit side of Profit and Loss Account. When
Goods were fully or partially insured : In such a case, the claim admitted by the
insurance company is deducted from the total loss and the remaining loss is debited to
the Profit and Loss Account.

32. Opening stock ₹60,000

Closing stock ₹30,000
34. Gross Profit ₹1,83,300
Net Profit ₹1,33,400

OR

Gross Profit ₹43,315

Net Profit ₹25,765