CLASS XI – ACCOUNTANCY
ASSIGNMENT
CHAPTER -2 (BASIC ACCOUNTING TERMS)
INSTRUCTIONS: TO BE DONE IN THE ACCOUNTS REGISTER.
1. Which of the following will be treated as Drawings:
a) Withdrawing money for payment of salaries to employees
b) Withdrawing money for payment to creditors
c) Withdrawing money from business for purchasing TV for private use
d) Withdrawing money for purchase of building
2. Capital is an :
a) Internal Liability
b) External Liability
c) Contingent Liability
d) None of these
3. A liability arises because of:
a) Cash transactions
b) Credit transactions
c) Both Cash and Credit transactions
d) None of these
4. Which of the following is not an expense:
a) Furniture
b) Salary
c) Rent
d) Electricity Charges
5. Trade Discount is:
a) Shown separately in the books of account.
b) Not shown in the books of account.
c) Only shown when assets are purchased
d) None of the above
6. Out of the following, which one is NOT an intangible Asset
a) Goodwill
b) Trademarks
c) Computer Software
d) Machinery
7. The Fall in the value of an asset due to normal wear and tear, passage of time or change in technology is known as:
a) Capital Expenditure
b) Revenue Receipts
c) Depreciation
d) Bad Debts
8. A firm earns a revenue of Rs. 5,000 and expenses to earn this revenue is Rs. 2,000. Income of the firm will be:
a) Rs. 8,000
b) Rs. 2,000
c) Rs. 5,000
d) Rs. 3,000
9. Meaning of Return Outwards is:
a) Cash Sales
b) Purchase Return
c) Sales Return
d) Cash Sales
10. Which of the following is a Liability:
a) Prepaid Expenses
b) Bad Debts Recovered
c) Outstanding Expenses
d) Depreciation
CASE STUDY BASED QUESTIONS:
11. Mr. Gopal started business for buying and selling readymade garments with Rs. 8,00,000 as an initial investment.
Out of this, he paid Rs. 4,00,000 for the purchase of garments and Rs. 50,000 for furniture and Rs. 50,000 for
computers and the remaining amount was deposited into the bank. He sold some of the garments for Rs. 3,00,000
for cash and some garments for Rs. 1,50,000 on credit to Mr. Rajesh.
He bought men’s garments of Rs. 2,00,000 from Mr. Satish. Next month, a fire broke out in his office and stock of
garments worth Rs. 1,00,000 was destroyed. Later on, Some garments which cost Rs. 1,20,000 were sold for Rs.
1,30,000. Expenses paid during the same period were Rs. 15,000. Mr. Gopal Withdrew Rs. 20,000 from business for
his domestic use.
From the above, answer the following:
(i) What is the amount of Capital with which Mr. Gopal Started the business?
(ii) What fixed assets did he buy?
(iii) Who is the creditor and state the amount payable to him?
(iv) Who is the debtor and state the amount receivable from him?
(v) What is the amount of Drawings of Mr. Gopal?
(vi) What is the value of the goods he purchased? What are his total expenses?
12. Mr. Surinder from Delhi started a business for buying and selling electronic goods. He brought Rs. 8,00,000 cash,
Furniture Rs. 1,00,000, motor vehicle Rs. 3,00,000 and Stock Rs. 2,00,000 to start the business.
Opened a bank account in the name of the business with HDFC bank by depositing Rs. 50,000.
He employed two helpers, 1 clerk and 1 Accountant. At the end of the month, he paid salaries to the employees as
follows:
Helpers :Rs. 6,000 each , Clerk : Rs. 8,000 , Accountant : Rs. 10,000
Out of the stock costing Rs. 20,000 sold for Rs. 30,000 on cash and Stock costing Rs, 50,000 was sold for Rs. 75,000
on credit to Mr. Anuj. Rs 25,000 received from Mr. Anuj in cash and a cheque of Rs. 10,000. Cheque was deposited
in the bank on the same day. A part of furniture costing Rs. 30,000 was sold at a loss of 20%.
From the above, answer the following:
(i) How much Capital is introduced by Mr. Surinder.
(ii) How much total salary is paid to employees?
(iii) What is the amount of Debtors?
(iv) How much stock is still available with Mr. Surinder?
(v) What is the balance of Bank Account?
(vi) What gain/loss he earned/incurred?
