PERIODIC TEST 1 (2024-25)

ROLL No.: _____________ XI MAXIMUM MARKS: 30

DATE: _______________ ACCOUNTANCY (055) TIME ALLOWED: 90 MINUTES
General Instructions.
1. This question paper contains a total of 18 questions divided into three sections. All questions are compulsory.
2. Section A contains total 14 questions of 1 mark each.
3. Section B contains two questions of 3 marks each.
4. Section C consists of two questions; Q17. of 4 marks and Q18. of 6 marks.

SECTION A
(OBJECTIVE TYPE QUESTIONS)

Q1. Expenditure of revenue nature that gives benefits for more than one accounting period is categorized as _________
expenditure. (Choose the correct option.)
a) capital b) revenue c) deferred revenue d) outstanding
Q2. The process that begins with recording business transactions and ends with the preparation of financial statements
is known as _______. (Fill in the blank.)
Q3. Book Keeping is not a part of accounting. (True/False.)
Q4. Revenue from operations refers to _____________. (Choose the correct option.)
a) revenue earned from operating activities.
b) revenue earned from non-operating activities.
c) revenue earned from both operating as well as non-operating activities
d) gain by selling assets
Q5. What is the book in which all financial transactions are initially recorded? (Answer in one word.)
Q6. Under the accrual basis of accounting expenses are recognized on __________. (Choose the correct option.)
a) payment only c) credit transaction only
b) being incurred d) none of these
Q7. The ________ concept ensures that a business’s financial statements are prepared for a specific period, such as a
month, quarter, or year, to provide timely information to stakeholders. (Fill in the blank.)
Q8. Which principle of accounting states that the business and the owner should be treated as separate entities?
(Choose the correct option.)
a) Materiality Principle c) Going Concern Principle
b) Business Entity Principle d) Conservatism Principle
Q9. The double-entry accounting system means that every entry to an account requires a corresponding and opposite
entry to a different account. (True/ False)
Q10. Which of the following is NOT a function of accounting? (Choose the correct option.)
a) Recording financial transactions c) Establishing laws relating to financial markets
b) Decision making d) Summarizing economic data
Direction: Question 11 and 12 consist of two statements, namely Assertion (A) and Reason (R). For selecting the
correct answer, use the given code.
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true
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Q11. Assertion(A): Accounting records only those transactions which are of a financial character.
Reason(R): Money provides a common basis for measuring and recording business transactions
Q12. Assertion: Revenue is recognized in the accounting period in which the goods are sold.
Reason: This is in accordance with the accrual basis of accounting which matches revenues with expenses.
Direction: Question 13 and 14 consist of two statements, namely Statement 1 and Statement 2. For selecting the
correct answer, use the given code.
a) Both Statements are correct.
b) Both Statements are incorrect.
c) Statement 1 is correct and Statement 2 is incorrect.
d) Statement 1 is incorrect and Statement 2 is correct
Q13. Statement 1: Revenue is recognized in the accounting period in which it is earned irrespective of the cash received.
Statement 2: The matching principle requires that expenses be matched with revenues.
Q14. Statement 1: The principle of materiality in accounting states that all important and relevant financial
information must be disclosed in the financial statements.
Statement 2: Under the conservatism principle, all anticipated losses should be recorded, but gains should only be
recorded when they are realized.

SECTION B
(SHORT ANSWER QUESTIONS)

Q15. What are the steps in involved in the process of accounting?

Q16. Explain the meaning of any three of the following terms.
a) Drawings b) Liabilities c) Assets d) Gain

SECTION C
(LONG ANSWER QUESTIONS)

Q17. Explain the following accounting concepts/ principles with suitable examples.
Going Concern b) Accrual concept c) Money Measurement concept d) Historical Cost concept
Q18. Mr. Gopal started business for buying and selling of readymade garments with ₹8,00,000 as an initial investment.
Out of this he paid ₹4,00,000 for the purchase of garments and ₹50,000 for furniture and ₹50,000 for computers
and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for
₹3,00,000 for cash and some garments for 1,50,000 on credit to Mr. Rajesh.
Subsequently he bought men’s garment for ₹2,00,000 from Mr. Satish. In the first week of the next month a fire
broke out in his office and stock of garments worth ₹1,00,000 was destroyed. Later on some garments which cost
₹1,20,000 were sold for ₹1,30,000. Expenses paid during the same were ₹15,000. Mr. Gopal withdrew ₹20,000
from business for his domestic use.
Based on above situation answer the following questions.
a) What is the amount of capital with which Mr. Gopal started the business?
b) What is the value of fixed assets he purchased?
c) What is the value of the goods purchased?
d) Who is the creditor and state the amount payable to him?
e) Who is the debtor and what is the amount receivable from him?
f) What is the total amount of drawings of Mr. Gopal?

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