CBSE Class 11 Accountancy Question Paper

SET - 1

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 90

General Instructions:

● Question nos. 1 to 4 and 16 to 17 are very short answer type questions carrying 1 mark each.

● Question nos. 5 to 8 and 18 to 19 are short answer type questions carrying 3 marks each.

● Question nos. 9 to 12 and 20 are short answer type questions carrying 4 marks each.

● Question nos. 13 to 15 and 21 to 22 are long answer type questions carrying 6 marks each.

● Question nos. 23 and 24 are long answer type questions carrying 8 marks each.

● All parts of the question must be attempted at one place.

● Show your working notes wherever necessary.

Part A - Financial Accounting I

1. Which accounts are not considered while preparing a trial balance? 1 2. Name the process of transferring entries from journal to their respective accounts in the ledger. 1 3. Why are the rules of debit and credit same for liability and capital? 1 4. Which document evidenced that the credit has been granted to the named person for the reason

stated therein?

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5. Briefly discuss the informational needs of any three external users. 3 6. Dave & Sons find that the bank balance shown by their Cash Book on 31st March, 2013 is ₹

20,250 (credit) but the Pass Book shows a difference due to the following reasons:

a. A cheque for ₹ 2,500 drawn in favour of Manohar has not yet been presented for payment.

b. A post-dated cheque for ₹ 450 has been debited in the bank column of the Cash Book but it could not have been presented in any case.

c. Cheques totalling ₹ 5,100 deposited with the bank have not yet been collected and a cheque for ₹ 2,000 has been dishonoured.

d. A bill for ₹ 5,000 was withdrawn by the Bank under a rebate of ₹ 75 but the full amount of the bill was credited in the bank column of the Cash Book.

Prepare Bank Reconciliation Statement and find out the balance as per Pass Book.

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7. Double entry system of accounting is based on the principle of ‘dual aspect’. Explain 3 8. Qualitative characteristics are the attributes of accounting information which tend to enhance its

understandability and usefulness. In the light of this statement, briefly explain any three such characteristics.

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9. Create an accounting equation on the basis of following transactions.

Particulars Amount (₹)

i. Sharma started business with cash

ii. Purchased a building from Yadav, paid by raising a loan from PNB iii. Paid interest on loan ₹ 20,000 and installment of ₹ 2,00,000 iv. Purchased goods from Yadav on credit

v. Goods returned to Yadav costing

vi. Sold goods costing ₹ 40,000 for ₹ 50,000 on credit to Joshi vii. Took goods of ₹ 10,000 from business for personal use viii. Accrued Interest

5,00,000 10,00,000 1,00,000 20,000

5,000 4

10. Rectify the following errors by passing journal entries, using a suspense account.

Particulars

i. The purchase of ₹ 400 from X was entered into the sales book but X’s personal account was rightly credited.

ii. The sale of ₹ 430 to Y was credited in his account as ₹ 340.

iii. The sale of old furniture of ₹ 540 was credited to the sales account as

₹ 450.

iv. Goods worth ₹100 were taken by the proprietor which was not recorded.

v. The sale of ₹ 296 to P was entered in the sales book as ₹ 269.

vi. Sales return book balance of ₹ 210 was not included in the accounts.

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11. Journalise the following transactions:

i. Harish started the business with cash ₹ 1,00,000 and a building valued at ₹ 50,000.

ii. An old machine with a book value of ₹ 80,000 is exchanged for a new machine of ₹ 2,40,000. The old machine is valued at ₹ 50,000 for exchange purposes by Machine Tools Ltd.

iii. A cheque from a customer amounted to ₹ 5,000 deposited in the bank was returned dishonoured.

iv. Paid landlord ₹ 1,500 for rent. One third of the premises is occupied by the proprietor for his own residence.

v. Goods costing ₹ 500 given as charity. (sales price ₹ 600)

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12. Prepare a three-column cash book with cash, bank, and discount columns from the following information.

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Date Particulars Amount (₹) 2013

Jan 1 Jan 2 Jan 5 Jan 10 Jan 15 Jan 20 Jan 25 Jan 30

Cash in hand Bank overdraft Paid wages Cash sales

Cash deposited into bank

Goods purchased and paid by cheques Paid rent

Drew from bank for personal use Salary paid

22,500 10,500 600 21,000 12,000 15,000 1,500 1,200 3,000

13. (i) Why should a business follow the consistency concept?

(ii) Explain materiality concept.

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14. A draws on B three bills of exchange for ₹50000, ₹40000, and ₹30000 respectively for the goods sold to him on 1st February 2013. These bills were for one month, two months, and three months respectively. The first bill is endorsed to his creditor C. The second bill was discounted with his bank on 4th February 2013 @12% per annum discount and the 3rd bill was sent to his bank for collection on 30th April. On the due dates all the bills were duly met by B. The bank sent the collection advice for the 3rd bill after deduction ₹250 as collection charges. Pass the journal entries in the book of A and B.

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15. You are given the following balances as on 1st April, 2012.

Machinery A/c ₹ 50,00,000.

Provision for Depreciation A/c ₹ 11,60,000.

Depreciation is charged on machinery at 20% p.a. By the diminishing balance method. A piece of machinery purchased on 1st April, 2010 for ₹ 10,00,000 was sold on 1st October, 2012 for ₹ 6,00,000. Prepare the machinery account, provision for depreciation account for the year ended 31st March, 2013. Also prepare machinery disposal account.

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Part - B: Financial Accounting II

16. What is an opening entry? 1

17. What is the treatment of closing stock in financial statements? 1 18. Software is the instruction that makes a computer work. In context to this discuss any three types

of software.

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19. (i) From the following figure calculate the operating profit.

Particulars Amount (₹) Net Profit

Rent Received

Gain on Sale of Machine Interest on Loans

2,00,000 20,000 30,000 40,000

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Donation 4,000

(ii) State whether the cost of obtaining a license to carry out business is a capital or revenue expenditure.

20. Sharma started a firm on 1st April, 2012 with a capital of ₹ 30,000. On 1st July, 2013 he borrowed from his wife a sum of ₹ 12,000 at 9% per annum (interest not yet paid) for business and

introduced a further capital of his own, amounting to ₹ 4,500. On 31st March, 2013 his position was cash ₹ 1,800; stock ₹ 28,200; debtors ₹ 21,000, and creditors ₹ 18,000.

Ascertain his profit or loss taking into account ₹ 6,000 for his drawings during the year.

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21. Briefly explain any six factors which should be taken into account before sourcing an accounting software.

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22. Mr. Yadav does not keep proper records of his business. He provides the following information.

You are required to prepare a statement showing the profit or loss for the year.

Particulars Amount (₹)

Owner’s equity at the beginning of the year Bill receivable

Cash in hand Furniture Building Creditors Stock in trade Additional capital

Drawings made during the year

7,50,000 30,000 40,000 4,50,000 5,00,000 3,00,000 1,00,000 1,60,000 40,000

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23. From the following Trial Balance prepare Trading and Profit & Loss Account for the year ended 31st March, 2015 and Balance Sheet as at that date:

Account Title Dr. (₹) Cr. (₹)

Stock 1st April, 2014

Purchases and Purchase Return Freehold Premises

Incidental Trade Expenses Insurance

Audit Fees

Commission Received Interest

Debtors and Creditors Wages

Salaries Capital Drawings

11,150 1,15,000 50,000 5,600 925 400

16,200 15,100 7,600 6,000

2,600

1,350 700 12,415

75,000

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Income-Tax Investments

Discount Allowed and Received Sales Return & Sales

Bills Receivable Office Furniture Rent

Cash in hand Bank Balance

1,800 4,000 3,750 3,200 2,600 4,500 2,540 3,800 2,54,165

2,100 1,58,700

1,300

2,54,165

Adjustment: -

1. Stock at 31st March 2015 is ₹ 35,000.

2. Write of 5% Depreciation on Freehold Premises and 20% on office furniture.

3. Commission earned but not received ₹ 250.

4. Interest earned ₹ 300.

5. ₹ 100 for rent has been received in advance.

6. Charge interest on Capital @ 6% and ₹ 250 on Drawings.

OR

Charu does not keep proper books of accounts. Prepare the statement of profit or loss for the year ending 31-3-2015 from the following information:

1-4-2014 (₹) 31-3-2015 (₹) Cash in hand

Debtors Creditors Bills Receivable Bills Payable Car

Stock Furniture Investment Bank balance

5,000 10,000 5,000 10,000 2,000 – 20,000 4,000 20,000 50,000

18,000 40,000 23,000 12,000 21,000 40,000 15,000 24,000 25,000 45,000

The following adjustments are to be made:

(a) Proprietor withdrew cash ₹ 2,500 per month for private use.

(b) Depreciation at 5% on Car and at 10% on furniture.

(c) Outstanding Rent ₹ 3,000.

(d) Fresh Capital introduced during the year ₹ 15,000.

24. From the books of Mr. Yadav, the following trial balance has been prepared on 31st March, 2014.

Name of the Accounts Debit (₹) Credit (₹) Capital

Drawings

General Expenses Buildings

Machinery Stock (1-4-2013) Power

Taxes and Insurance Wages

Sundry Debtors Sundry Creditors Charity

Bad-debts Bank Overdraft Sales

Purchases Scooter

Scooter Expenses Bad-Debts Provision Commission

Trade Expenses Bills Payable Cash

4,000 5,000 22,000 18,680 32,400 4,480 2,630 14,400 12,560 210 1,100

94,000 4,000 1,000

2,560 200 2,19,220

49,000

5,000

22,360 1,30,720

1,800 2,640 7,700

2,19,220

a. Stock on 31st March, 2014 was valued at ₹ 47,000.

b. 1/5th of general expenses and taxes & insurance to be charged to the factory and the balance to the office.

c. Write off a further Bad-debts of ₹ 320 and maintain the provision for Bad-debts at 5% on Debtors.

d. Depreciate Machinery at 10% and Scooter by ₹ 480.

e. Provide ₹ 1,400 for outstanding interest on Bank Overdraft.

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f. Prepaid Insurance is to the extent of ₹ 100.

g. Provide for the manager's commission at 10% on the net profit after charging such commission.

h. Prepare final accounts for the year ended 31st March, 2014 after giving effect to the above adjustments.

OR

From the following trial balance, prepare the trading and profit and loss account for the year ended 31st March, 2015 and the balance sheet as at that date.

Name of the Accounts Amount (₹) Name of the Accounts Amount (₹) Capital Account

Creditors – Trade Creditors – Expenses Rent Received Purchases Returns Sales

Bad-Debts Provision on 1st April, 2016

Advertising Development Goodwill

Plant and Machinery Traveller’s Samples Stock on 1-4-2016 Debtors

Cash at Bank Cash in hand

20,500 15,000 3,400 300 2,000 1,44,800 300 4,000 2,500 10,000 1,350 16,000 7,300 1,000 55

Drawings Purchases Carriage inwards Wages

Power

Rent and Insurance Salaries

Discount Received General Charges Sales Returns

Traveller’s Commission Traveller’s Salaries Discount Allowed

2,500 85,500 750 11,500 4,500 9,950 17,200 900 4,300 300 1,445 4,550 2,500

Adjustments: -

a. The Closing stock was ₹ 11,500 but there has been a loss by fire on 20th March, 2015, to the extent of ₹ 10,000, not covered by insurance.

b. Depreciate Plant and Machinery by 10% and Traveller’s Samples by 33½%.

c. Increase the Bad-debts Provision to ₹ 1,000.

d. Write 20% off Advertising Development Account.

e. Annual premium paid on insurance expiring 1st June, 2015 was ₹ 600.

f. Provide for Manager’s commission @ 5% on Net Profits after charging such Commission.