CLASS XI ACCOUNTANCY 8.financial Statement of Sole Proprietorship and Accounts From Incomplete Records (COMPETENCY - BASED TEST ITEMS) MARKS WISE

COMPETENCY – BASED TEST ITEMS
1. Class: XI
2. Subject: Accountancy
3. Name of the chapter: Financial Statement of Sole Proprietorship and Accounts from
Incomplete Records (Statement of affairs method only)
Q. Learning Question Marks

No. Outcome/
Assessment
Objectives
1 Learning Outstanding Rent is : 1
Outcome:
Able to (a) Expenses
identify (b) Income
Liability. (c) Asset
Assessment (d) Liability
Objective: To
assess the
understanding
of various
accounts
2 LO: Able to Depreciation on Machinery should be: 1
explain the
nature of (a) Debited to Trading a/c
depreciation (b) Credited to Trading a/c
AO: To assess (c) Debited to Profit & Loss a/c
the (d) Credited to Profit and Loss a/c
understanding
of Expenses,
losses etc.
3 LO: Able to Which of the following is known as Position Statement? 1
explain about
Balance (a) Trial Balance
sheet. (b) Balance Sheet
Assessment (c) Profit and Loss Account
Objective: To (d) Ledger
assess the
understanding
of income
statement and
position
statement
4 LO: Able to An example of direct expense is: 1
identify the
Direct (a) Carriage
Expenses (b) Salary
AO: To assess (c) Rent
the (d) Commission
understanding
of the Direct
and indirect
expenses
5 LO: Able to Income received in advance is a ---------- 1
analyse a
liability (a) Asset (b) Liability (c) Income (d) Expenses
AO: To assess
the
Competency
to identify
various
accounts
6 LO: Able to Which of the following is correct about Balance Sheet? 1
choose the
purpose of a) Assets + Capital = Liabilities
balance sheet b) Assets = Liabilities + Capital
AO: To assess c) Assets + Liabilities = Capital
the ability to d) Assets = Liabilities - Capital
relate assets
with liabilities
and capital
7 LO: Able to When goods distributed as free samples ------- account is credited 1
find the effect
of the goods (a) Sales account (b) Purchase account (c) Advertisement account
used other (d) Drawings account.
than sales.
AO: To assess
the
Competency
level to show
effect of
business
transaction
8 LO: Able to In Single entry system Opening capital is ascertained by preparing 1
find the ________
opening
capital in a) Closing Statement of affairs
business b) Profit & Loss account
having c) Cash account
incomplete d) Opening statement of affairs.
records
AO: To assess
the
Ability to
recognize the
need of
statement of
affairs
9 LO: Able to Incomplete records are usually maintained by________ 1
point out the
business not (a) Company (b) Government (c) Sole trader (d) None of these
using
complete
records
AO: To assess
the
Judgment
about the
business
requiring
complete
records
10 LO: Able to Arrange the following assets in the order of liquidity. 1
arrange the
assets in the a) Building b) Bank c) Cash d) Stock
order of
liquidity
AO: To assess
the
Competency
on marshaling
of assets.
11 LO: Able to Calculate capital at the beginning 3
calculate
capital at the Capital at the end Rs. 2,25,000
begining Drawings Rs.48,000
AO: To assess Profit Rs. 70,000
the
understanding
and problem
solving ability
12 LO: Able to Calculate profit or loss earned during the year 2022- 23 3
compute
profit or loss Capital on 1st April 2022 Rs 4,00,000
under Capital on 31st March 2023 Rs 5,80,000
Incomplete Capital brought by the proprietor during the year Rs 70,000
Records. Withdrawals by the proprietor during the year Rs 40,000
AO: To assess
the ability to
apply
intelligence
for computing
profit & loss.
13 LO: Able to M/S Ram Bros spent Rs 4,00,000 on advertisement on 1st April 3
identify 2023. It is expected that the benefit of this advertisement will be
deferred available for next five years.
revenue
expenditure (a) Identify the type of expenditure involved in it.
AO: To assess
the (b) How the advertisement expenditure will be treated in the final
understanding accounts of M/S Ram Bros on 31st March 2024?
of revenue
and deferred
revenue
expenditure.
14 LO: Able to What will be the adjusting entries for the following items. 3
pass adjusting
entries (a) Salaries outstanding (b) Depreciation on Furniture (c) Accrued
AO: To assess Interest
the
understanding
of adjustment
and entries
15 LO: Able to Discuss the main limitations of incomplete records maintained by 4
explain the some business enterprises.
limitations of
incomplete
records
AO: To assess
the
understanding
the concept of
incomplete
records.
16 LO: Able to Following is extracted from the Trial Balance of Mr. Badal as on 4
make 31st, March 2023.
treatment of
provision for Trial Balance
doubtful debt Particulars Debt(Rs) Credit(Rs)
in financial Sundry Debtors 91,000
statement Bad debts 3,000
Provision for bad debts 5,000
AO: To assess
the
Additional Information:-
understanding
(a) Write off further bad debts Rs. 1000
of the
(b) Provide for provision for bad and doubtful debts @ 5% p.a on
adjustments
Sundry Debtors
relating to bad
(c) How the items will appear in final accounts as on 31st, March
debt.
2023.
17 LO: Able to Calculate the cost of goods sold from the following particulars 4
calculate cost pertaining to the year 2022-2023.
of goods sold
AO: To assess Opening stock Rs.50,000, Purchases Rs.1,10,000, Return outwards
understanding Rs.7,000, Factory rent Rs.30,000 , Wages Rs.40,000 and Closing
of the concept Stock Rs.43,000.
cost of goods
sold
18 LO: Able to The following are the balances extracted from the books of a trader 6
prepare as on 31/03/2023.
financial Debit (Rs.) Credit (Rs.)
statements of Drawings 45,000
sole Sales 1,80,000
proprietorship Cash in Hand 22,000
business Capital 2,35,000
Cash at Bank 70,000
AO: To assess
Sundry Creditors 55,000
the
Wages 15,000
understanding
Purchases 25,000
and
Opening Stock 65,000
competency
Buildings 1,05,000
of preparation
Sundry Debtors 50,000
of financial
Bills Receivable 35,000
statements
Rent 8,500
with
Commission 6,500
adjustments
General Expenses 13,000
Furniture 10,000
Total 4,70,000 4,70,000
Additional information:
(a) Closing stock Rs.40,000.
(b) Interest on capital is to allowed at 6% p. a.
(c) Provide 5% of debtors for bad and doubtful debt.
(d) Wages yet to be paid Rs.1,500.
(e) Rent Prepaid Rs.500.
Prepare Trading and Profit and Loss Account and
Balance sheet as on 31/3/2023.
19 LO: Able to From the following trial balances as on 31-03-2023 and the 6
prepare additional information prepare the trading and profit and loss
financial account for the year ended 31-03-2023 and the balance sheet as on
statements of that date.
sole Particulars Amount Particulars Amount
proprietorship Opening stock 45,000 Sales 4,26,000
business Purchases 3,52,000 Capital 2,95,000
AO: To assess Sales return 4,000 Creditors 92,000
the Cash in hand 33,000 Bank
understanding Furniture 1,31,000 overdraft 36,000
and Debtors 1,18,000 Commission
competency Machinery 80,000 received 2,000
of preparation Carriage 9,000
of financial wages 11,000
statements Rent 18,000
with Bad debts 2,000
Drawing 21,000
adjustments Stationery 8,000
Office expense 9,000
Insurance 10,000
TOTAL 8,51,000 TOTAL 8,51,000
Additional Information :
(a) Closing stock was valued at Rs.48000
(b) Insurance prepaid to the extent of Rs.1000
(c) Rent outstanding Rs.6000
(d) Write off further bad debts Rs.2000
(e) Depreciate machinery @ 10% p.a
20 LO: Able to From the following Trial Balance and additional information given 6
prepare in respect of M/s. Kalyan Traders, prepare Trading and Profit and
financial Loss account for the year ended 31st March, 2023.
statements of
sole Trial Balance as on 31st March, 2023
proprietorship Particulars Amount Particulars Amount
business Opening Capital 80,000
AO: To assess Stock 15,000 Creditors 24,000
the Cash 15,800 Loan 23,000
understanding Wages 27,000 Sales 1,82,900
and Drawings 11,000 Purchases
competency Debtors 25,500 returns 3,000
of preparation Purchases 1,40,300 Discount 1,900
of financial Land and Bills
statements Building 50,000 payable 5,200
with Sales
adjustments returns 3,400
Salary 12,500
Bad debt 1,200
Insurance 6,800
Bills
receivable 11,500
TOTAL 3,20,000 TOTAL 3,20,000
Additional Information:
(a) Salary outstanding Rs.1,000.
(b) Provide 5% on debtors for provision for doubtful debts.
(c) Insurance prepaid Rs.2,500.
(d) Depreciation on Land and Building @ 5%.
(e) Closing stock was Rs.14,200.
Answers:
Q. Answer
No.
1 d
2 c
3 b
4 a
5 b
6 b
7 b
8 d
9 c
10 c,b,d,a
11 2,03,000
12 1,50,000
13 a) Deferred Revenue Expenditure

b) Rs. 80,000 will be shown in P/L Account and Rs. 3,20,000 will be shown in
the Balance Sheet
14 a) Salary A/c Dr, Outstanding salary A/c Cr
b) Depreciation A/c Dr, Furniture A/c Cr
c) Accrued Interest A/c Dr, Interest A/c Cr
15 Limitations of single entry:-
1. Difficulty to ascertain profit.
2. Not acceptable to tax authorities.
3. Chances of fraud.
4. Difficulty in filing insurance claim.
5. Difficulty in raising funds from banks.
16 a) Profit & Loss Account (Dr. side)
Bad Debt 3,000
Add Further Bad Debt 1,000
Add New Provision 4,500
Less Old Provision (5,000)
3,500
b) Balance Sheet(Asset side)
Debtor 91,000
Less Further Bad Debt (1,000)
Less New Provision (4,500)
85,500
17 Cost of goods sold = 50,000+(1,10,000-7,000)+30,000+40,000-43000 = 1,80,000
18 Gross Profit: 1,13,500
Net Profit: 69,400
Balance sheet total : 3,30,000
19 Gross Profit: 53,000
Net Loss: 7,000
Balance sheet total : 4,01,,000
20 Gross Profit: 14,400
Net Loss: 6,475
Balance sheet total : 1,15,725
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CLASS XI ACCOUNTANCY 8.financial Statement of Sole Proprietorship and Accounts From Incomplete Records (COMPETENCY - BASED TEST ITEMS) MARKS WISE

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COMPETENCY – BASED TEST ITEMS

Q. Learning Question Marks

TOTAL 8,51,000 TOTAL 8,51,000

TOTAL 3,20,000 TOTAL 3,20,000

13 a) Deferred Revenue Expenditure

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