THE INDIAN HIGH SCHOOL, DUBAI

PERIODIC TEST-1 2023-24

DATE: 06.06 .2023 TIME: 2 Hours
GRADE: 11 SUBJECT: ACCOUNTANCY MARKS: 50
SET - B

General Instructions:
a) This question paper contains 21 questions. All questions are compulsory.
b) Question Nos.1 to 12 carries 1 mark each.
c) Questions Nos. 13 to 16 carries 3 marks each.
d) Questions Nos. from 17 and 18 carries 4 marks each
e) Questions Nos. from 19 to 21 carries 6 marks each

Q.1. ----------- are the evidence of business transactions which provide information about the nature of the
transaction and the amount involved in it. (1)
Q.2. Trial balance is prepared for. (1)
(a) To check the arithmetical accuracy of books of accounts
(b) To preparation of final accounts
(c) Both option A and B
(d) Only option B
Q.3. Mark odd one out of following: (1)
(a) Rent A/c Dr.
To Cash A/c
(b) Drawings A/c Dr
To Cash A/c
(c) Purchase A/c Dr.
To Cash A/c
(d) Stationery A/c Dr.
To Cash A/c
Q.4. Match the following: (1)

A) Bank loan (i) Fictious Assets

B) Copy Right (ii) Current Liabilities
C) Bills payable (iii) Intangible fixed assets
D) Advertisement expenditure (iv) Long term liabilities

Q.5. Assertion (A) Both expense and expenditure are different terms. (1)
Reason (R): Expense gives benefit to firm more than an accounting year whereas expenditure,
might give benefit to the firm less than one accounting year in the form of fixed assets.
(a) Both A and R correct, and R is a perfect explanation of A
(b) Both A and R Incorrect
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.

Q.6. Which one is the last step of accounting as a process of information? (1)
(a) Recording the transactions.
(b) Preparational financial statements.
(c) Communication of information.
(d) Analysis and interpretation of information.

Q. 7. Rajpal has purchased a car for ₹ 5,00,000 which he got financed from State Bank of India to the

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 extent of ₹ 4,00,000. How will it be shown in the accounting equation? (1)
Q.8. An account is having debit balance is established when. (1)
a) The last entry of the accounting period was posted on the debit side.
b) The amount of debit exceeds the amount of the credits.
c) There are more entries on the debit side than on the credit side.
d) None of the above
Q.9. Ledger is called a book of original entry TRUE / FALSE (1)
Q.10. Fill the missing entry: (1)
Particulars LF Dr. Cr.
Date
Apr Bank A/c Dr. ?
10 ? Dr. 500
To ? A/c ?
(Received cheque of ₹ 29,500 from Surrender, a debtor in
settlement of his account of Rs. 30,000)
Q.11. Which document is prepared when goods are sold on credit? (1)
Q.12. Differentiate between Cash basis of accounting and accrual basis of accounting on the basis off
reliability. (1)
Q.13. Define the following basic accounting terms. (3)
a) Drawings b) Debtor c) Revenue
Q.14. Why are the following parties interested in accounting information? (3)
(i) Government (ii) Investors (iii) Employees and workers
Q.15. “The decision makers must interpret accounting information in the same sense as it is prepared
and conveyed”. Which qualitative characteristic of accounting information is highlighted here?
Also describe any other 2 qualitative characteristics. . (3)
Q.16. (a) Akash had a capital of ₹ 75,000 on 1st April 2022. He had also goods amounting to ₹15,000.
which he had purchased on credit and the payment had not been made. Find out the value of the
total assets of the business.
(b) After a period of one month, he came to know that he had suffered a loss of ₹ 1,700. He
withdrew ₹ 800 for his personal use. Find out his capital and assets of the business. (3)
Q.17. Based on the narrations, Fill the missing values and journal entries in the books of
Abhijit agencies: Also show the workings clearly. (4)
DATE PARTICULARS LF DEBIT CREDIT
2023 Purchases A/c Dr. ?
APR 1 To ------------ ?
(Purchased goods on credit from Mitul Bros. 100 sarees @ 250 per
saree. Trade discount 10%)
APR 5 a) Kris Bros. A/c Dr. ?
To --------- A/c ?
b) --------------- A/c Dr. ?
To Krish Bros. A/c 2700
c) Cash A/c Dr. ?
---------- A/c Dr. ?
To Krish Bros. A/c ?
(Krish Bros. purchased 100 Sarees @ 300 per saree. Allowed 10%
Trade discount and 3% cash discount if payment is made within 14
days. Krish Bros. received 10 sarees of poor quality, which it returned.
Krish Bros. settled the payment in 10 days)

Q.18. Prepare a Trial balance. (4)

Sundry Creditors ₹25,000; Trade expenses ₹ 3,000; Printing & Stationery ₹ 5,000.
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 Capital ₹ 1,97,000; Sales return ₹ 5,000; Interest received ₹ 12,000.
Motor car ₹ 25,000; Sales ₹ 1,00,000; Opening Stock ₹ 75,000; Furniture & Fixture ₹ 15,000.
Purchases ₹ 75,000; Drawings ₹ 14,000; Investments ₹ 65,000; Cash in hand ₹ 36,000.
Sundry debtors ₹ 16,000.

Q.19. A) Manish Gupta has the following transactions with Subrat Mukherjee for the month.
of April 2022: (6)
April 1 Balance due from Subrat Mukherjee ₹5,000.
April 5 discount was given of ₹ 800 for poor quality of goods.
Cheque received in settlement of account; less ₹ 200 cash discount.
April 6 Sold goods for ₹ 10,000.
April 10 Received a letter from Subrat Mukherjee in which he informed that he would forward
a cheque of ₹ 10,000 on 20th April.
April 20 Received a cheque for ₹ 9,500 and allowed cash discount of ₹ 500.
April 30 Subrat Mukherjee’s cheque returned by bank.
Show how the account of Subrat Mukherjee would appear in the ledger of Manish Gupta and
balance the account on 30th April 2022.

B) Open a ‘T’ shape account for machinery and put the following transactions on the proper side:
₹
(i) Machinery purchased 50,000
(ii) Machinery sold 15,000
(iii) Machinery purchased 12,000
(iv) Machinery discarded 10,000
(v) Depreciation on machinery 1000

Q.20. Journalise the following transactions in the books of Raja Ram: (6)
(i) Raja Ram started business with cash ₹ 2,00,000, Stock 50,000, Furniture 20,000.
(ii) Sold goods to Shri Misra, list price ` 8,000, trade discount 10% and cash discount 5%
Half of the amount is paid on the same day and availed of the cash discount.
(iii) Received commission of ₹ 8,000 by cheque. Half of which is in advance.
(iv) A machine which stood in the books for ₹ 85,000 on 1st April 2022 was sold for ₹ 51,000 in exchange
for a new machine costing ₹ 1,76,000 supplied by D.K. Suppliers on 1st June 2022.
(v) Goods uninsured of ₹ 3000 (Purchase cost) were destroyed by fire.
(vi) Shahul is declared insolvent. Received from his official receiver of 60 paise in a rupee on a debt of ₹
10,000.

Q.21. Prepare an accounting equation and Balance sheet for the following transactions: (6)
(i) Mohan Lal commenced business with cash ₹ 50,000 and 1,00,000 by cheque, goods ₹ 80,000,
and Furniture ₹ 50,000.
(ii) Sold goods (costing 50,000) to Manohar at a profit 10% for cash 35,000 and balance on credit.
(iii) Depreciation on Furniture provided @10%
(iv) Manohar become bankrupt (insolvent). A first and final composition of 60 paise in a rupee is
received out of a debt from official receiver.
(v) Cash withdrawn for personal use ₹ 10,000
(vi) Interest on drawings charged @ 5%

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