Arun Chauhan & Co.

Duplex Villas Sector-135, & Sector-31 Noida

TEST PAPER8
Class 11 - Accountancy
Time Allowed: 3 hours Maximum Marks: 80

General Instructions:

1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.

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3. Question 1 to 17 and 27 to 29 carries 1 mark each.

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4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

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6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Which written document is prepared by seller for goods sold against cash which acts as evidence for both the [1]
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seller and the purchaser of goods?

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a) Cash bill b) Voucher

c) Cash memo d) Cash-in-slip

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2. Assertion (A): Statements prepared through management account are helpful in decision making process. [1]
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Reason (R): The information provided by management accounts is financial and non-financial as well.
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a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
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c) A is true but R is false. d) A is false but R is true.

3. Sale of goods to Rahul for cash is debited to: [1]

a) Rahul A/c b) Sales A/c

c) Stock account d) Cash A/c

4. Sumit owns a company and purchase goods on credit from his personal funds and used the same for business [1]
purpose. What is the effect on assets

a) Increase stock b) Reduce cash

c) Increase cash d) Reduce Bank

OR
If a business transaction results in the increase of assets, there will also be a corresponding increase in the amount of

a) liabilities b) both liabilities and capital

c) none of these d) capital

5. Which of the following is mentioned on the vouchers at the top of the paper? [1]

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 a) Amount of the transaction b) Name of the person preparing it

c) Name of the firm d) Signature of the person preparing it

6. Which of the following describes Qualitative characteristic understandability in the best manner? [1]
i. Decision-makers must interpret the information in the same sense as it was described to them.
ii. Accounting reports must be of common period.
iii. Information must be available in time.

a) ii and iii b) iii

c) i d) ii
OR
The function of Accounting is not to:

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a) Ascertain the Financial Position of the b) Ascertain the Profit or Loss of business

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business

c) Record the transactions of business d) Record the personal transactions of the

7.

a) Specific reserve
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________ are the appropriations of profit to strengthen the financial position of the business.

b) Provision
[1]
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c) Contingency fund 61 d) Reserve
8. Withdrawal of cash from the business by the proprietor is credited to: [1]

a) Drawing A/c b) Profit and Loss A/c

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c) Capital A/c d) Cash A/c

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OR
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Real account (which include cash and all other assets) will usually show:

a) Debit Balance b) Both debit and credit balance

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c) Negative balance d) Credit Balance

9. During the life-time of an entity, accounting produces financial statements in accordance with which of the [1]
following accounting concept?

a) Cost b) Accounting period

c) Matching d) Conservatism
10. Ind-AS-1 deals with [1]

a) disclosure of accounting policies b) None of these

c) plant, property and equipment d) statement of cash flows

11. Provision is made: [1]

a) To strengthen the financial position b) To face the financial difficulties

c) To provide for known losses d) To provide for unknown losses

12. Wasting Asset is: [1]

a) Machinery b) Computer

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 c) Motor Vehicle d) Oil Wells
13. Calculate the amount of sales return: 5 Tables @Rs.150 each, 10 Chairs @ Rs.100 each, Trade discount@10% [1]

a) Rs.1,750 b) Rs.1,925

c) Rs.1,500 d) Rs.1,575
14. A business had net capital at 1 January and 31st December 2012 of Rs. 75,600 and Rs. 73,800 respectively. [1]
During the year, the proprietor introduced additional capital of Rs. 17,700 and withdrew cash and goods to the
value of Rs. 16,300. What profit or loss was made by the business in 2012.

a) Rs.3000 Profit b) Rs.3200 Profit

c) Rs.3200 Loss d) Rs.3000 Loss

15. The thing which is purchased and sold in the business is called ________. [1]

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a) goods b) creditor

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c) assets d) capital
OR

c) Capital
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________ represents the excess of assets over liabilities.

a) Stock b) All of these

d) Goodwill
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16. Calculate Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for [1]
November 2010:
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(a) M/s Gupta Traders returned the goods Rs.1,500
(b) Goods returned from M/s Harish Traders Rs.800
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(c) M/s Rahul Traders returned the goods not as per specifications amounting to Rs. 1200
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(d) Goods returned from Sushil Traders Rs.1,000. Options are as follows
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a) Rs.5500 b) Rs.4500
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c) Rs.4000 d) Rs.5000
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17. Revenue Reserve is created: [1]

a) Out of general profits b) Out of capital profits

c) Out of profits on the purchase of a running d) Out of profits on sale of fixed assets
business
18. What is an Account? [3]
OR
Journalise the following transactions in the books of Madan.

Sept Sold goods costing Rs 45,000 to Suresh at a profit of 33 % on cost less 20%. Trade discount and paid
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2 carriage Rs 400 (to be charged from the customer).

Sept
Spent Rs 300 for refreshment of a customer.
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Sept
Machinery purchased Rs 10,000 paid, installation expenses Rs 2,500.
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 Sept Sold goods costing Rs 40,000 to Prateek for cash at a profit of 25% on cost less 20% trade discount and paid
9 cartage Rs200 (not to be charged from the customer).

19. Explain the features of accounting principles. [3]

OR
Explain the accounting treatment of GST.
20. Explain and give example of each of the following accounting terms: [3]
i. Expenses
ii. Drawings
iii. Gain
21. The following are the balances extracted from the books of Amit. Prepare a Trial Balance as on 31st March, [4]
2023:

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₹ ₹

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Cash 2,000 Sundry Creditors 40,000

Capital 80,000 Investment 8,000

Purchases

Sales
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85,000

1,08,400
Plant and Machinery

Building
15,000

20,000

Purchases Return 6,000 Furniture 6,000

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Sales Return
61 4,000 Electricity 700

Transportation 1,800 Postage 400

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Discount Allowed 500 Drawings 8,000

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Printing 5,000 Salaries 6,000

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Sundry Debtors 70,000 Travelling Expenses 2,000

Input CGST A/c 2,500 Output CGST A/c 1,500

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Input SGST A/c 2,500 Output SGST A/c 1,500

Input IGST A/c 4,000 Output IGST A/c 6,000

22. Write the following transactions in a Two Column Cash Book and balance the Cash Book: [4]

2023 ₹

Jan. 1 Cash in hand 6,000

Bank Balance (Cr.) 3,000

3 Deposited into Bank 2,000

5 Received from Madan 400

Discount allowed 10

7 Received a cheque from Dev and sent it to the bank 600

9 Received a cheque from Pawan Das 1,600

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 Discount allowed 25

12 Withdrew from bank for office use 300

13 Bought goods for cash 600

14 Sold goods for cash 1,200

16 Paid to Ganesh by cheque 494

Discount received 6

18 Pawan Das's cheque deposited in the bank

20 Sold goods to Gourav for ₹ 1,500 for which he gave cash ₹ 800 and a cheque of ₹ 700.

22 Deposited into bank (including Gourav's cheque) 900

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24 Paid rent by cheque 150

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25 Withdrew from bank for personal use 200

28 Bank notifies that Pawan Das's cheque was dishonoured

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Received from Ankit ₹ 270 in cash and ₹ 540 by cheque.

Discount Allowed ₹ 90.

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The cheque was deposited into bank.
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31 Bank charges as shown in Pass Book 5

Paid Salary 500

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23. Prepare a Bank Reconciliation Statement as at 30th April, 2023 for Jatin Sales Private Limited from the [4]
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information given below:

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(i) Bank Overdraft as per Cash Book on 30th April, 2023. 1,10,450
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(ii) Cheques issued on 20th April, 2023 but not yet presented. 15,000

(iii) Cheques deposited but not yet credited by Bank. 22,750

(iv) Cheque deposited by a customer credited in account was not advised by the bank. 47,200

(v) Interest debited by bank on 27th April, 2023 but no advice received. 12,115

(vi) Subsidy received from the authorities by bank on our behalf, credited to the account. 22,000

(vii) Amount wrongly debited by the bank. 2,400

(viii) Amount wrongly credited by the bank. 5,000

OR
On 30th June 2014, the Cash Book of a trader shows a bank overdraft of ₹2,500. Following informations are
available:
i. Cheques amounting to ₹14,600 had been paid to the bank, but of these only ₹12,200 were credited in the Pass
Book, up to 30th June, 2014.
ii. He had also issued cheques amounting to ₹10,000, but of which only Rs 3,600 had been presented for payment.

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 iii. A cheque of ₹500 which he had debited to the bank account was not sent to bank for collection by mistake.
iv. There is a debit in the Pass Book of ₹10 for Bank Charges and ₹50 for interest.
v. A customer directly paid into his bank ₹1,000, but it was not shown in the Cash Book.
vi. Bank has paid insurance premium of ₹400 according to his instructions, but this is not recorded in the Cash Book.
Prepare a Bank Reconciliation Statement.
24. Journalise the following transactions: [6]

2023

April
Received an order for goods for ₹ 1,20,000 from M/s Ram & Sons.
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April Received order for goods from M/s Shekhar & Co. of ₹ 5,00,000 along with a cheque for ₹ 1,80,000 as
3 advance.

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April Placed order for goods with M/s Gupta & Sons of ₹ 2,50,000; paid them ₹ 1,00,000 by cheque in

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5 advance.

April
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April
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Gupta & Sons supplied goods of ₹ 2,50,000.

Paid a cheque for 60% of the balance amount due to Gupta & Sons on the account.
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April
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Goods for ₹ 20,000 and furniture of the book value of 10,000 destroyed by fire.
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April
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Goods costing ₹ 50,000 were damaged in transit; a claim was made on railway authorities for the same.
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April Received from Salesman ₹ 60,000 for goods sold by him after deducting his travelling expenses ₹
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22 4,000.

April Sold goods to Vishesh costing ₹ 40,000 at a profit of 25% and allowed him 10% trade discount and paid
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25 for cartage ₹ 1,000 to be charged from him.

April Received a cheque of ₹ 40,000 from the railway authorities in full settlement of a claim for damages in
28 transit.

OR
Pass Journal Entries for the following:
2023 March 2 Purchased an Iron Safe for business for ₹ 1,00,000 and payment made by cheque.
2023 March 3 Purchased filing cabinet for office use ₹ 40,000 and paid ₹ 200 as cartage on it.
2023 March 4 Purchased a Computer from Shyam & Co. for ₹ 80,000 on credit.
2023 March 5 Purchased an electric fan for ₹ 20,000.
2023 March 6 Purchased a Horse for business for ₹ 1,50,000 and payment made by cheque.
2023 March 7 Purchased Post Cards for ₹ 250; Envelopes for ₹ 500 and Stamps for ₹ 1,000.
2023 March 8 Purchased office stationery for ₹ 4,000.
2023 March 15 Gave as Charity - Cash ₹ 2,000 and Goods ₹ 4,000.
2023 March 20 The horse bought on March 6 died, its carcass was sold for ₹ 10,000.
2023 March 25 Sold household furniture for ₹ 1,00,000 and paid the money into the business.

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 2023 March 31 Paid to the landlord by cheque ₹ 1,20,000 for rent. One-third of the building is occupied by the
proprietor for residential use.
25. Trial Balance of Anant Ram did not agree. It showed an excess credit of ₹ 16,000. He put the difference to [6]
Suspense A/c. Subsequently the following errors were located:
a. Cash received from Mohit ₹ 4,000 was posted to Mahesh as ₹ 1,000.
b. Cheque for ₹ 5,800 received from Arnav in full settlement of his account of ₹ 6,000 was dishonoured. No
entry was passed in the books on dishonour of the cheque.
c. ₹ 800 received from Khanna, whose account had previously been written off as bad, was credited to his
account.
d. Credit sales to Manav for ₹ 5,000 was recorded through the purchases book as ₹ 2,000.
e. Purchases book undercast by ₹ 1,000.
f. Repairs on Machinery ₹ 1,600 wrongly debited to Machinery account as ₹ 1,000.

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g. Goods returned by Nathu ₹ 3,000 were taken into stock. No entry was recorded in the books.

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OR
The Trial Balance prepared by a Book-keeper showed a difference of ₹ 1,006 which was placed in a newly opened

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Suspense Account and carried forward to the next year, when the following errors were discovered:
i. Goods purchased for ₹ 99 had been posted to the credit of the supplier as ₹ 990.
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ii. ₹ 75 received as discount from a creditor was duly entered in his account but it was omitted to be posted to the
discount account.
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iii. Sale of Furniture for ₹ 1,400 had been entered in sales book.
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iv. ₹ 900 due from a customer were omitted to be taken to the Schedule of sundry debtors.
v. Goods of the value of ₹ 3,000 returned by a customer but no entry was made in the books.
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vi. ₹ 355 entered in the Sales Returns book had been posted to the debit of the customer who returned the goods.
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Give necessary Journal entries to rectify the above errors and prepare a suspense account.
26. An asset is purchased for Rs 1,10,000. Depreciation is to be provided annually according to the straight-line [6]
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method. The useful life of the asset is 10 years and the residual value is Rs 10,000. You are required to find out
the amount of annual depreciation and prepare an asset account for the first three years.
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OR
On 1st October 2014, Bansal Pvt. Ltd. purchased machinery for Rs 12,00,000. On 31st May, 2016, a part of the
machinery purchased on 1st October 2014 for Rs 1,60,000 was sold for Rs 60,000. On the same date, fresh
machinery was purchased for Rs 3,00,000. Depreciation is provided at 20% per annum on the written down value
method and the books are closed on 31st March each year. You are required to prepare (a) Machinery Account, (b)
Provision for Depreciation Account, and (c) Machinery Disposal Account.
Part B
27. When closing capital is more than opening capital, it denotes: [1]

a) Profit b) Profit, if there is no introduction of fresh

capital

c) No Profit no loss d) Loss

OR
Calculate the profit from the following information: Opening capital: Rs.36,000, closing capital-Rs.54,000,
Drawings-Rs.3,000, capital added during the year-Rs.6,[Link] profit

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 a) Rs.20,000 b) Rs.25,000

c) Rs.15,000 d) Rs.10,000
28. Packaging material will be [1]

a) Credited to trading A/c b) Debited to trading A/c

c) Credited to Profit and loss A/c d) Debited to Profit and loss A/c
29. Expenses incurred but not yet paid are accounted because of: [1]

a) Dual Aspect Principle b) Accrual Concept

c) Materiality Principle d) Matching Principle

OR

Net Profit before the following adjustments ₹ 1,80,000

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Outstanding salary ₹ 10,000

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Prepaid Insurance ₹ 13,000

Calculate profit after adjustments.

a) ₹ 2,03,000

c) ₹ 1,83,000
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d) ₹ 1,87,000
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30. Calculate Net Sales and G.P. from the following: Cost of Goods Sold ₹ 4,50,000, G.P. 25% on Sales.
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31. Give any three points of distinction between Capital Expenditure and Revenue Expenditure. [3]
32. What is meant by Prepaid Expenses? How are they adjusted in the Final Accounts? [3]
33. From the following information relating to the business of Mr. X who keeps books on single Entry System, [6]
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ascertain the profit or loss for the year 2022- 23.

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1st April 2022 31st March 2023

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Machinery ₹ 8,000 ₹ 8,000

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Furniture 2,000 2,000

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Stock 7,000 5,000

Sundry Debtors 4,000 4,500

Bank Balance 200 (Cr.) 1,800 (Dr.)

Sundry Creditors 5,000 3,500

Mr. X withdrew ₹ 4,100 during the year to meet his household expenses. He introduced ₹ 300 as fresh capital on
15th January 2023. Machinery and Furniture are to be depreciated at 10% and 5% per annum respectively.
OR
Govind who keeps his books on Single Entry System sells goods at Cost plus 50%. On 1st April, 2022 his Capital
was ₹ 4,00,000 and on 31st March, 2023 it was ₹ 3,50,000. He had withdrawn ₹ 20,000 per month besides goods of
the sale value of ₹ 60,000. How much did he earn in 2022-23?
34. From the following information prepare financial Statements of M/s Ram & Bros, for the year ending March 31, [6]
2023.

Dr. Bal. Amount ₹ Cr. Bal. Amount ₹

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Stock (1-4-2022) 16,800 Capital 78,000

Sales Returns 8,000 Sales 3,09,000

Purchases 2,43,000 Returns Outward 5,700

Freight-in 8,600 Trade Creditors 4,800

Rent and Taxes 5,700 10% Bank Loan (1-7-2022) 24,000

Salaries 9,300 Income from Investment 3,600

Trade debtors 24,000 Discount Received 2,250

Bank interest 1,000

Printing and Advertising 14,600

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Cash at bank 18,300

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Discount Allowed 1,340

Investment 25,000

Furniture

General Expenses
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3,610
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Audit Fees 500
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Insurance 800

Travelling Expenses 3,000

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Plant & Machinery 30,000

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Drawings 10,000
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4,27,350 4,27,350
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Additional Information:
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i. Depreciation on Plant and Machinery @ 10% p.a., a Machine has been purchased on July 01, 2022 for ₹
12,000.
ii. The manager is entitled to a commission of 10% of the net profit before charging such commission.
iii. Closing stock in trade is valued at ₹ 6,000 (cost); ₹ 6,200 (Market Price).
iv. Rent outstanding ₹ 5,000.
OR
Suresh started buisness on 1st April, 2013 with a capital of Rs 30,000. The following trial balance was drawn up
from his books at the end of the year.

Name of Accounts Amt(Rs) Name of Accounts Amt(Rs)

Drawings 4,500 Capital 40,000

Plant and fixtures 8,000 Sales 1,60,000

Purchases 1,16,000 Creditors 12,000

Carriage inward 2,000 Bills payable 9,000

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Wages 8,000

Return inward 4,000

Salaries 10,000

Printing 800

Advertisement 1,200

Trade Charges 600

Rent 1,400

Debtors 25,000

Bills Receivable 5,000

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Investments 15,000

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Discount 500

Cash at bank 16,000

Cash in hand
h au 3,000

2,21,000 2,21,000

The value of stock as at 31st March, 2014 was Rs 26,000. You are required to prepare his trading and profit and loss
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account for the year ended 31st March, 2014 and a balance sheet as on the date after taking the following facts into
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account.
i. Interest on capital is to be provided at 6% per annum.
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ii. An additional capital of Rs 10,000 was introduced by Suresh on 1st October, 2013.
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iii. Plant and fixtures are to be depreciated by 10% per annum.

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iv. Salaries outstanding on 31st March, 2014 amounted to Rs 500.

v. Accrued interest on investment amounted to Rs 750.
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vi. Rs 500 are bad debts and provision for doubtful debts is to be created at 5% on the balance of debtors.
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