Gurukul Global School

Session 2020-21
Term – II
Class – XI
Accountancy (055)
Date: 08-03-2021 M.M: 80
Time: 3 hrs.
General Instructions:
i. There are 32 questions in the question paper. All questions are compulsory.
ii. Question nos. 1 to 20 are very short answer type questions carrying 1 mark each.
iii. Question nos. 21and 22 short answer type–I questions carrying 3 marks each.
iv. Question nos. 23 to 27 are short answer type–II questions carrying 4 marks each.
v. Question nos. 28 and 30 are long answer type–I questions carrying 6 marks each.
vi. Question nos. 31 and 32 are long answer type–II questions carrying 8 marks each.

1. Rent paid Rs 85,000 out of which Rs 15,000 is related to next year. In the Cash Basis of Accounting Rs ____amount will be debited in Rent A/c. (1)

2. Identified and measured economic events should be recorded in _________ order. (1)

3. Which of the following is not a business transaction? (1)

a. Bought furniture of Rs 10,000 for business
b. Paid for salaries of employees Rs 5,000
c. Paid sons fees from her personal bank account Rs 20,000
d. Paid sons fees from the business Rs 2,000

4. Which qualitative characteristics of accounting information is reflected when Accounting information is clearly presented? (1)
a. Understandability b. Relevance
c. Comparability d. Reliability

5. During the life-time of an entity accounting produce financial statements in accordance with which basic accounting concept: (1)
a. Conservation b. Matching
c. Accounting period d. Relevance

6. Every error affects the agreement of trial balance. (True/False) (1)

7. Repairs to buildings debited to the buildings account is an error of_____________. (1)

8. Promissory Note and Bill of Exchange are treated in the same way for accounting treatment. (True/ False) (1)

9. What is Amortization? (1)

10. How is closing stock treated while preparing trial balance? (1)

11. Income tax and life insurance premium are ____________ of the proprietor. (1)

12. Trial Balance is _________of arithmetical _____of accounts. (1)

13.__________ and ____________ are examples of Intangible Assets. (1)

14. Capital account has ___________ balance. (1)

15. State any two features of Trial Balance. (1)

16. What is Reserve Fund? (1)

17. What is Discounting of a Bill? (1)

18. When is Noting & Protesting required? (1)

19. Journalise: (1)

Rs 1500 paid for fees of proprietor’s son was recorded in General Expenses

20. Radha sold goods to Keshav worth Rs. 40000 and allowed him TD 10%. Keshav returned 1/4th goods, not being as per sample. At what value these returned
goods will be recorded? (1)

21. Accounting standards are written statements of uniform accounting rules and guidelines for preparing financial statements. In the light of this statement,
state the advantages of accounting standards. (3)

22. From the following particulars, prepare the Proprietor’s Capital Account: (3)
2020
April 1 Started Business with Rs 500000
May 5 Withdrew for personal use Rs 25000
June 12 Further Capital introduced Rs 125000
July 16 Goods withdrawn for personal use Rs 6000
Aug 24 Life insurance premium paid Rs 5400
Sept 14 Income tax paid Rs 15500
Mar 31 Profit for the year Rs 116000

23. Explain any four types of errors which cannot be revealed even the trial balance gets tallied. (4)
24. Prepare Accounting equation on the basis of the following transactions: (4)
a) Started business with Cash Rs 500000 and Inventory Rs 25000 and Building Rs 800000
b) Bought goods for cash Rs 35000 and on credit Rs 40000.
c) Goods costing Rs 54000 sold at a profit of 33.33%. 1/4th of the payment was received in cash.
d) Purchased furniture for office use Rs 60000 and household use Rs 14000.

25. Journalise the following transactions in the books of Sajal: (4)

a) Purchased from Arjun 5000 items @200 each at 20% TD plus CGST and SGST @ 6 % each.
b) Sold 100 items to Srikant @300 each at 25% TD plus IGST @12%
c) Purchase of stationery Rs 1500, GST 12%
d) Received commission of Rs 15000 plus CGST and SGST @9% each by cheque

26. Why do we create reserves and provisions? (4)

27. Correct the following Trial balance: (4)
Particulars Rs Particulars Rs
Returns outward 160000 Debtors 150000
Op. Stock 342000 Carriage o/w 50000
Salaries 120000 Capital 552000
Creditors 280000 Machinery 180000
Bank 450000 Returns I/w 30000
Carriage I/w 60000 Disc Received 40000
Rent Received 30000 Trade Exp 60000
Discount Allowed 20000 Sales 1400000
Purchases 1000000 Buildings 200000
Bills Payable 200000
2662000 2662000
28. State the Accounting Concept/Principle involved in each of the following situations: (6)
a) Closing stock is valued at cost price or realisable value whichever is lower.
b) Business enterprise will not be liquidated in near future.
c) Personal expenses of proprietor should be debited to Drawings Account.
d) Quality of man power is not recorded in the Books of Account.
e) Every Debit has equal Credit.
f) Assets are recorded in books at the cost incurred for acquisition of such assets.

29. How can Computers help in Accounting procedures? (6)

30. What is the meaning of Incomplete Records? Mention the limitations of Incomplete Records. (6)
Or
On 1st April 2017 a company purchased Machinery and Equipment for Rs 400000. New Machinery for Rs 20000 was purchased on 1st Jan 2018 and for Rs
40000 on 1st Oct 2019, a part of machine whose book value had been Rs 40000 on 1st April 2017 was sold for RS 26000.
Depreciation has been charged at 10% p.a. on Straight Line Basis. Accounts are closed on 31st March every year. Show Plant and Machinery A/c for three
years.

31. Overdraft balance as per pass book of Mr Sahil is Rs. 15000. Prepare Bank Reconciliation statement on 31/12/2019. (8)
a) Bank charges debited as per pass book Rs 50.
b) Cheques recorded in the cash book but not sent to the bank for collection Rs 5000.
c) Received a payment directly from a customer Rs 2500.
d) Cheques issued but not presented for payment Rs 2440.
e) Interest debited by bank Rs 90.
f) Cheques deposited into bank but not yet collected Rs 2750.
g) Interest on investment collected by the bank and credited in the pass book Rs 170.
h) A bill receivable for Rs 1600 previously discounted with the bank had been dishonoured and debited in the passbook.

32. From the following information of Sita Ram Traders, prepare Trading and Profit and Loss Account and Balance Sheet as on 31/3/2020: (8)
Particulars Dr. Cr.
Op. Stock 2260000
Purchases and Sales 4400000 6800000
Drawings and Capital 750000 3500000
Buildings 1000000
Motorvan 300000
Freight I/w 34000
 Returns 100000 150000
Debtors and Creditors 250000 500000
Trade Expenses 33000
Power 80000
Salary and Wages 50000
Legal Expenses 30000
Postage and Telegram 10000
Bad Debts 65000
Cash in Hand 790000
Cash at Bank 980000
Investments 400000
Bills Payable 637000
Interest Received 200000
Insurance 35000
Machinery 220000

11787000 11787000

The following additional information is available:

1. Stock on March 31, 2020 was Rs 230000
2. Depreciation is to be charged on Building @5% and on Motor Van @ 10%.
3. Provision for doubtful debts is to be charged on Building@5% and on Motor van @10%
4. Unexpired Insurance was Rs 6000.
5. The manager is entitled to a commission @5% on the net profits before charging such commission.

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