MODERN CONVENT SCHOOL

Sector 4, Dwarka
Sample Paper
Class: XI
Subject: Accountancy (055) Maximum Marks: 80
No. of Printed Pages: 08

GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. Question 1 to 20 carries 1 mark each.
3. Question 21 to 26 carries 3 marks each.
4. Question 27 to 29carries 4 marks each.
5. Question from 30 to 34 carries 6 marks each.
6. There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2
questions of three marks, 1 question of four marks and 2 questions of six marks.

Q1. ‘X’ commenced business on 1st April, 2023 with a capital of ₹6,00,000. On 31st March, 2024, his assets
were worth ₹8,00,000 and liabilities ₹50,000. Find out his closing capital. (1)
a) ₹7,50,000 c) ₹5,50,000
b) ₹2,00,000 d) none of these

Q2. Which of the following has a credit balance? (1)

a) Carriage inward c) Discount received
b) Carriage outward d) Discount allowed

Q3. As per modern classification, Accrued Income is Account. (1)

a) Asset c) Revenue
b) Capital d) Liability

Q4. In the light of given statements, choose the correct alternative from the following: (1)
a) Statement 1 is true and Statement 2 is false.
b) Statement 1 is false and Statement 2 is true.
c) Both statements 1 and 2 are true.
d) Both statements 1 and 2 are false.
Statement 1: Issued cheque for ₹70,000 to pay off one of the creditors. The account is debited by bank.
Statement 2: Returned damaged office stationery and received ₹50,000. The account to be credited is
cash.

Q5. Identify revenue expenditure: (1)

a) Wages for setting up a new machinery
b) Expenditure on development of a product
c) Office rent paid in advance for three years
d) Brokerage on issue of shares

Q6. If building is shown at its market price rather than its cost of purchase, which of the following
accounting principle is violated? (1)
a) Cost b) Consistency c) Accrual d) Going Concern

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Q7. Payment to a creditor means (1)
a) Increase in asset and decrease in liability.
b) Decrease in asset and decrease in liability.
c) Decrease in asset and increase in liability.
d) Increase in asset and increase in liability.

Q8. The process of transferring transactions from the books of primary entry to the ledger accounts is known
as (1)
a) balancing c) trial balance
b) posting d) journalizing

Q9. Bank Reconciliation Statement is prepared by (1)

a) Bank c) Person having Bank Account
b) Creditors of the business d) Auditor of the business
OR
Which of the following is the reason responsible for difference between the balances shown by the cash
book and the pass book? (1)
a) Paid into bank but not credited
b) Cheque received and dishonored and no entry in cash book
c) Cheque directly paid by the customers
d) All of the above

Q10. Which of the following expense is not a revenue expense? (1)

a) Salary c) Electricity Bill
b) Repair of second hand machinery purchased d) Water Bill

Q11. What is the purpose of preparing Bank Reconciliation Statement? (1)

a) To record business transactions
b) To ascertain bank balance
c) To reconcile the bank balance as per Pass Book and Cash Book.
d) None of the above

Q12. A sole trader took costing ₹1,000 from stock his own use. The normal selling price of the goods is
₹1,500.
Which of the following Journal entries would correctly record this? (1)
a) Dr. Sales A/c and Cr. Drawing A/c by ₹1,000
b) Dr. Drawing A/c and Cr. Sales A/c by ₹1,500
c) Dr. Drawing A/c and Cr. Purchases A/c ₹1,000
d) Dr. Drawing A/c and Cr. Purchases A/c ₹1,500

Q13. Nyonika purchased goods of ₹10,00,000 from Vaani. Vaani offers 10% cash discount to Nyonika. At
what time, Vaani will record the entry of discount in her books? (1)
a) Seeking list price from Vaani c) Putting order to Vaani
b) Getting delivery of goods d) Making payment to Vaani

Q14. Personal accounts'are related to (1)

a) Assets b) Expenses, Losses and Income
c) Customers, creditors d) Firms

OR
Prepaid expenditure is shown as
a) An asset b) A liability c) An expense d) Expenditure

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Q15. Imprest amount ₹5,000. What will be the amount of re-imbursement if following expenses were incurred
by the petty cashier during the month - Wages = ₹1,450, Tiffin = ₹1,105, Small Repairs = ₹500, General
expenses = ₹400. (1)
a) ₹1,600 b) ₹3,050 c) ₹3,400 d) ₹3,000
OR
Debit balance of ₹10,000 in the cash column of the cash book shows that: (1)
a) ₹10,000 has been paid out.
b) ₹10,000 is owing.
c) The amount received exceeds the amount paid by ₹10,000.
d) ₹10,000 has been credited into the bank account.

Q16. On inter-state sale of goods, which of the following GST is levied? (1)
a) Input IGST Account
b) Output IGST Account
c) Output CGST & Output SGST Account
d) Input CGST & Input SGST Account
OR
If the location of the supplier of good and/or services and the place of supply are in the same state,
which of the following types GST is levied? (1)
a) IGST c) CGST
b) SGST d) Both CGST & SGST

Q17. Total of these transactions is posted to Purchases Account (1)

a) Credit purchase of furniture c) Credit purchase of goods
b) Purchases Return d) Purchase of Stationery
OR
Sale of business asset on credit is recorded in (1)

a) Sales Book c) Journal Proper

b) Special Journal d) Cash Book

There are two statements marked as Assertion (A) and Reason (R), mark your answer as per the
codes given below:
a) Both A and R are correct, and R is the correct explanation of A.
b) Both A and R are correct, and R is not the correct explanation of A.
c) A is correct but R is incorrect.
d) A is incorrect but R is correct.

Q18. ASSERTION (A): Trade Discount allowed is shown as an expense in the books of the firm.
REASON (R): Debit balance of Discount Allowed is an income for the firm. (1)
OR
ASSERTION (A): Cash Discount allowed is an expense and is shown correctly in the books. REASON
(R): Cash Discount is allowed on timely receipt of due amount and thus is an indirect expense of the
firm. (1)

Q19. ASSERTION (A): For a stationery merchant, stationery is goods.

REASON (R): For a furniture dealer purchase of chairs and tables is termed as assets. (1)
OR
ASSERTION (A): The excess of expenses of a period over its related revenues is termed as loss.
REASON (R): It also includes loss on sale of fixed assets. (1)

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Q20. ASSERTION (A): Cash basis considers the revenue as realized when amount is received against sale of
goods.
REASON (R): Accrual basis of accounting recognizes revenue on receipt of amount against sale of
goods. (1)

Q21. Mr. Gopal started business for buying and selling of readymade garments with ₹8,00,000 as an initial
investment. Out of this he paid ₹4,00,000 for the purchase of garments and ₹50,000 for furniture and
₹50,000 for computers and the remaining amount was deposited into the bank. He sold some of the
ladies and kids garments for ₹3,00,000 for cash and some garments for ₹1,50,000 on credit to Mr.
Rajesh.
Subsequently, he bought men's garments of ₹2,00,000 from Mr. Satish. In the first week of the next
month, a fire broke out in his office and stock of garments worth ₹1,00,000 was destroyed. Later on,
some garments which cost ₹1,20,000 were sold for ₹1,30,000. Expenses paid during the same period
were ₹15,000. Mr. Gopal withdrew ₹20,000 from business for his domestic use.
From the above, answer the following: (3)
(i) What is the amount of capital with which Mr. Gopal started the business?
(ii) What fixed assets did he buy?
(iii) What is the value of the goods purchased?
(iv) Who is the creditor and state the amount payable to him?
(v) Who is the debtor and what is the amount receivable from him?
(vi) What is the total amount of expenses?

Q22. Prepare the Sales Day Book of Vipan Gulati from the given particulars. (3)
March 1: Sold on credit to Suresh Traders, Surat (Invoice No. 1315)
25 Trousers @ ₹1,200 each
12 T-Shirts @ ₹750 each
Trade Discount 5%
Freight ₹500
March 10: Sold on credit to Dewan Fashions, Poona (Invoice No. 1316)
30 Capries @ ₹550 each
24 Tops @ ₹250 each
Trade Discount 8%
Cartage ₹320
March 24: Sold on credit to Sharma Jeans, Agra (Invoice No. 1317)
20 Jeans @ ₹1,600 each
40 Shorts @ ₹625 each
Trade Discount 10%
Freight ₹650

Q23. Describe three points of characteristics of GST. (50-70 words) (3)

Q24. Explain three points of utility of Accounting Standards. (50-70 words) (3)
OR
While preparing the accounts of company, following issues are faced: (3)
I. Although sales have not yet taken place, few reliable customers of the company have placed large
orders from which huge profit is expected.
II. At present, market price of the fixed assets of the company is very high as compared to the book
value and directors are interested to show the fixed assets in accounts at their current market price.
III. During the year, the company purchased pencils of ₹50. These had all been issued from stock and
were still in use at the end of the year.
You are required to (a) state which accounting concept you would following in dealing with each of the
above problems and (b) Explain briefly what each concept means.

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Q25. Explain the following qualitative characteristics of Accounting Information: (3)
I. Understandability
II. Relevance
III. Reliability
OR
Write down difference between Book keeping and accounting on the basis of stage, special skill and
nature of job. (3)

Q26. Differentiate between source document and voucher. (3)

Q27. Prepare Accounting Equation from following transactions: (4)

I. Started business with cash ₹50,000, Goods ₹30,000 and Furniture ₹10,000
II. Sold 331% of above goods at a profit of 20% on cost to Ashish and received half amount in cash.
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III. Purchase of machinery for cash ₹5,000
IV. Rent outstanding ₹1,000
V. Goods destroyed by fire ₹5,000

Q28. Enter the following transactions in the Purchase Journal of M/s Gupta Traders of July 2024: (4)
01 Bought from Rahul Traders as per Invoice No. 20041
40 Registers @ ₹60 each
80 Gel Pens @ ₹15 each
50 Notebooks @ ₹20 each
Trade Discount 10%
15 Bought from Global Stationers as per Invoice No. 1132
40 Ink Pads @ ₹8 each
50 Files @ ₹10 each
20 Colour Books @ ₹20 each
Trade Discount 5%
23 Purchased from Lamba Furniture as per Invoice No. 3201
2 Chairs @ ₹600 per chair
1 Table @ ₹1,000 per table
25 Bought from Mumbai Traders as per Invoice No. 1111
10 Paper Rim @ ₹100 per Rim
400 Drawing Sheet @ 3 each
20 Packets Water Colours @ ₹40 per packet

29. Journalise the following transactions in the books of Harpreet Bros. (4)
I. ₹1,000 due from Rohit are now bad debts.
II. Goods worth ₹2,000 were used by the proprietor.
III. Charge depreciation @ 10% p.a. for two months on machine costing ₹30,000.
IV. Provide interest on capital of ₹1,50,000 at 6% p.a. for 9 months.
V. Rahul became insolvent, who owed ₹2,000 a final dividend of 60 paise in a rupee is received from
his estate.
OR

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 Complete the missing figures: (4)
Journal
In the Books Radhika Traders
S.No. Particulars L.F. Dr. (₹) Cr. (₹)
1. Purchases A/c Dr. 5,100
To Khanna Bros. 3,060
To Cash A/c 1,999
To
(Goods purchased and received discount on cash
payment)
2. Dr. 4,000
Cash A/c Dr. 2,000
To Bank A/c
(Amount withdrawn for office and personal use)
3. Dr. 8,000
To Bank A/c
To Discount Allowed A/c 200
(Cheque received from Sohan gets dishonoured)
4. Cash A/c Dr. 8,400
Dr.
To Dinesh 14,000
(Cash received and bad debts written off)
5. Dr. 350
To Interest A/c 350
(Interest allowed by bank)
6. Rent A/c Dr. 1,500
Travelling expenses A/c Dr.
To 2,000
(Expenses paid through cheque)

Q30. Following balances appeared in the books of Ashok, Delhi on 1st April, 2024:
Assets: Cash ₹50,000; Stock ₹30,000; Debtors Ram ₹50,000; Machinery ₹60,000.
Liabilities: Creditor Rajesh ₹30,000.
The following transactions took place in April, 2024:
2024 ₹
April 4 Sold goods for cash 7,000
April 6 Goods returned by Ram 1,000
April 10 Purchased goods from Rajesh of list price ₹ 10,000 for 9,000
April 15 Bought goods at list price of ₹15,000 from Rakesh less 10% trade
discount and 5% cash discount and paid 40% of amount
immediately
April 20 Paid to Rajesh in full settlement of his account 38,600
April 25 Paid for the life insurance premium of the proprietor 500
April 30 Received commission 2,000
Pass Journal entries for the above transaction. (6)

Q31. Post the above transactions into the Ledger. (6)

Q32. Record journal entries for the following transactions in the books of Nitin: (6)
I. Goods valued at ₹2,500 distributed from stock as samples. These goods were purchased paying
CGST and SGST @ 6% each.

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 II. Paid rent to landlord ₹1,50,000. It is subject to levy of CGST and SGST @ 6% each.
III. An old furniture was sold for ₹20,000 against cheque and charged CGST and SGST @ 6% each.
IV. Purchased computer for office use for ₹1,00,000 plus IGST @ 12%. Paid by cheque and balance to
be paid after two months.
V. Purchase of stationery ₹2,500, IGST @ 12%.
VI. Received commission of ₹10,000 plus CGST and SGST @ 9% each.

Q33. On 31 December, 2023, Pass Book shows debit balance of ₹7,500. From the following particulars,
prepare a Bank Reconciliation Statement: (6)
I. Cheques paid in for collection amounted to ₹20,600 but cheques of ₹7,800 were credited on 3 rd

January, 2024.
II. A cheque of ₹1,000 debited in cash book was omitted to be banked.
III. Cheques of ₹7,800 were drawn on 27th December of which cheques of ₹2,400 were cashed upto 31st
December.
IV. A cheque of ₹800 was banked and credited, but omitted to be recorded in cash book.
V. Bank charged interest on overdraft ₹650.
OR
I. On 31 March, 2024 the bank Pass Book of Radha showed a overdraft balance of ₹15,000.
st

II. Before that date, she had issued cheques amounting to ₹8,000 out of which cheques amounting to
₹3,200 have so far been presented for payment.
III. A cheque of ₹2,200 deposited by her into the bank on 26th March, 2024 is not yet credited in the
passbook.
IV. She had also received a cheque of ₹500 which although entered by her in the bank column of cash
book, was omitted to be paid into the bank.
V. On 30th March, 2024 a cheque of ₹1,570 received by her was paid into bank but the same was
omitted to be entered in the cash book.
VI. There was a credit of ₹150 for interest on current account and a debit of ₹25 for bank charges.
Draw up a Bank Reconciliation Statement. (6)

Q34. Prepare Two-column Cash Book from the following transactions of Suman, Haryana: (6)
2024
Mar 1 Cash in Hand ₹15,000; Cash at Bank ₹5,000
Mar 3 Purchased goods for cash ₹ 6,720, received discount of ₹ 220
Mar 5 Deposited into bank ₹5,000
Mar 7 Cash sales ₹10,000.
Mar 10 Cash withdrawn from Bank for Office use ₹2,000
Mar 15 Received three months post-dated cheque of ₹20,000 from Raj and discounted from bank
paying discounting charges ₹ 750
Mar 18 Received cheque from Deepak for ₹5,000 (not banked), allowed discount ₹ 200
Mar 20 Cheque received from Deepak deposited in Bank
Mar 22 Paid to Chandra by cheque ₹2,500; received discount ₹100
Mar 25 Withdrew from bank for personal use ₹1,000
Mar 28 Sold goods on credit to Ashok Mitra, Kolkata ₹10,000
Mar 30 Purchased goods on credit from Chander, Delhi ₹20,000
Mar 31 Received cheque from Ashok Mitra ₹5,000 and deposited in bank, allowed cash discount
₹200
OR

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Prepare Two-column Cash Book of Usha, Himachal Pradesh from the following transactions: (6)
2024 ₹
June 1 Cash Balance 5,000
June 1 Bank Balance 17,500
June 5 Cash received from sale of personal asset deposited in firm's account 5,000
June 6 Cheque received as advance against sale, paid into bank 50,000
June 7 Paid S. Bose by cheque 12,500
Discount received 200
June 9 Paid wages in cash 3,000
June 20 Received a cheque from A. Mukherjee and sent it to bank 6,000
June 21 Drawn from Bank 5,000
June 29 Paid office salaries in cash 4,000
June 30 Sold goods in cash for ₹ 8,000 and banked the same
June 30 Paid rent by cheque 1,120

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