ACCOUNTANCY (055)

CLASS: XI MARKS: 80

General Instructions:
1. All questions are compulsory.
2. Read the questions carefully and show all workings clearly.
3. Attempt all the parts of the questions at one place.
4. While answering the MCQ’s write the selected option number along with the
answer.

Q. No. Questions Marks

1 The art of recording all business transactions in a systematic 1

manner in a set of books is called

a) Accounting

b) Bookkeeping

c) Ledger

d) None of these
2 Which qualitative characteristics of accounting information is 1
reflected when accounting information is clearly presented?

a) Understandability

b) Relevance

c) Comparability

d) Reliability
3 Management Accounting is mainly concerned with: 1
a) Providing financial information to managers
b) Recording information for tax purposes

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 c) Communicating financial information to shareholders
d) Auditing the accounts of the company
4 A trader reduced the telephone expenses in the final accounts by 1
the amount of his personal telephone bill, which had been included
in the telephone expenses account. Which accounting principle is
the trader using?
a. Business entity
b. Going concern
c. Matching
d. Prudence
5 M/s Future Ltd. Has invested Rs. 10,000 in the shares of Relicam 1
Industries Ltd. Current market value of these shares is Rs. 10,500.
Accountant of Future Ltd. Wants to show Rs. 10,500 as value of
investment in the books of accounts, which accounting convention
restricts him from doing so?

(a) Full disclosure

(b) Consistency

(c) Conservatism

(d) Materiality

6 Money received from a customer must be recorded in the debtor’s 1

account and the bank account. What accounting principle is being
applied?
a. Business entity
b. Dual aspect
c. Matching
d. Money measurement
7 It was discovered that a credit customer had been charged Rs760 1
for a purchase instead of Rs 670. Which document will be issued
by the seller to correct the error?
a. Credit note
b. Debit notes
c. Invoice
d. Statement
8 When will a business issue a debit note? 1
a. when goods are received from a supplier
b. when goods are returned by a customer
c. when goods are returned to a supplier
d. when goods are sent to a customer
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9 Which is an asset in a Balance Sheet? 1
a. a credit balance on a supplier's account
b. a credit balance on the Bank account
c. a debit balance on a customer's account
d. a debit balance on the Drawings account
10 A business purchases a motor vehicle on credit. What is the effect 1
of this?
a. It increases fixed assets.
b. It increases owner's capital.
c. It reduces net profit.
d. It reduces the bank balance

11 Which statement about a debt recovered account is correct? 1

a. The account is used when an amount, previously written off, is
received from a customer.
b. The account is used when doubtful debts are recovered.
c. The balance of the account is debited to the income statement at
the end of the year.
d. The balance of the account is shown in the statement of
financial position.
12 Tara paid Rs350000 to Zaki for rebuilding a damaged wall at her 1
factory. To which account will Tara post this?
a. improvement to buildings
b. land and buildings
c. purchases
d. repairs and maintenance
13 What is a trial balance? 1
a. a list of balances in a business’s books on a certain date
b. a list of the assets, liabilities and capital of a business on a
certain date
c. a summary of all a business’s transactions for the year
d. a summary of the financial position of a business at the year
end
14. Cash withdrawn by the Proprietor should be credited to____ 1

a. Drawings
b. Cash
c. Capital
d. Bank

15. Which of the following cashbooks is similar to a cash account?

a. Single column

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 b. Double column book
c. Three Column book
d. none of the above

16 Which book of prime entry is also a ledger account? 1

a. cash book
b. journal
c. purchases journal
d. sales journal
17 On 1 April Mary had a bank overdraft of Rs1450. On 2 April she 1
paid Rs 250 cash into the bank and paid rent, Rs390, by cheque.
What is Mary’s bank overdraft after the transactions on 2 April?
a. Rs 810
b. Rs1310
c. Rs1590
d. Rs2090
18 A retailer’s capital is Rs 40 000. The following payments are made 1
from the business bank account. Rs 5000 for extension to the
retailer’s shop Rs 2000 for purchase of television for retailer’s
private house How much is the retailer’s capital now?
a. Rs33 000
b. Rs 35 000
c. Rs38 000
d. Rs 45 000
19 Why must both sides of the balance sheet be equal? 1

a. Because of transactions
b. Because of income and expenditure
c. Because of the accounting equation
d. Because purchases are made based on capital or debts which
is reflected in the accounting equation

20 A seller has allowed a customer a cash discount. What did the 1

customer do to earn this discount?
a. Agreed to become a regular customer
b. Introduced a new customer to the seller
c. Paid his account within a stated time
d. Placed a large order
21 What are the limitations of Accounting 3

22 Explain the following concepts 4

a. Money measurement concept
b. Cost concept
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23 Explain the following terms 4
a. Intangible Asset
b. Trade Receivables
c. Capital Expenditure
d. Current liability
24 Following is a ledger A/c in the books of Abel 5
Rajan’s A/c

2023 June 1 To 10,000 2023 June 6 By Sales 14,000

Balance b/d return
June 12 By Bank A/c 9800
June 5 To Sales A/c 26,000 June 12 By Discount 200
Allowed A/c

Answer the following questions on the basis of the given ledger:

(i)Is Rajan a debtor or creditor of Abel?
(ii)Pass the journal entry for the transaction dated 5th June and
June 12th.
(iii) Pass the journal entry, if Rajan is declared bankrupt at the end
of the month and only 20 paisa in a rupee was recovered from his
estate.

25 Journalise the following transactions 5

a. Purchased goods from Rakesh for 20,000 plus

b. Sold goods for 20,000, on credit to Mehar.

c. Mehar returned goods costing 5,000.

d. Purchased computer from Arun & co for office use for
50,, payment made by cheque
26 Prepare a Trial Balance from the following 6
Book debts Rs 50,000
Capital Rs 70,000
Salaries Rs 2000
Commission Received Rs 600
Unexpired Insurance Rs 650
Unearned Rent Rs 750

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 Trade Payable Rs 8000
Building Rs 70000
Depreciation Rs 1000
Bad debt Rs 500
Bad debt recovered Rs1000
27 Prepare Journal from the transactions given below: 8
(a) Cash paid for installation of machine Rs500
(b) Goods given as charity Rs 2,000
(c) Interest charge on capital @7% p.a. when total capital were Rs
70,000
(d) Received Rs1,200 of a bad debt written-off last year.
(e) Goods destroyed by fire Rs2,000
(f) Rent outstanding Rs 1,000
(g)Paid Life Insurance Premium Rs 750.
(h) Commission received in advance Rs 7,000
28 Prepare double column cash book from the following transactions 10
for the year August 2024: `
01 Cash in hand Rs 17,500
Cash at bank Rs 5,000
03 Purchased goods for cash Rs3,000
05 Received cheque from Mr. Manoj Rs 10,000
08 Sold goods for cash Rs7,000
10 Manoj’s cheque deposited into bank
12 Purchased goods and paid by cheque Rs20,000
13 Cash withdrawn from Bank Rs 1000
15 Paid establishment expenses through bank Rs1,000
20 Deposited into bank Rs1000
24 Paid trade expenses Rs 500
25 Purchased goods from Mr Anil Rs 6000
27 Received commission by cheque Rs 6,000
28 Bought furniture from ABC Furniture Mart Rs 6000
29. Bank Credited interest Rs 1000
29 Paid Rent Rs 2,000
30 Withdrew cash for personal use 1,200

29 Give journal entries of M/s Mohit traders, post them to the Ledger 15
and Prepare Trial Balance from the following transactions
August 2024
1. Commenced business with cash Rs1,10,000
2. Opened bank account with H.D.F.C. Rs 50,000
3. Purchased furniture Rs 20,000
8. Purchased good from M/s Hema Traders RS 42,000
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10. Sold goods for cash Rs 30,000
14. Sold goods to M/s. Gupta Traders Rs12,000 C.D@2%
16. Rent paid Rs4,000
20. Received cash from Gupta Traders Rs12,000
22. Goods return to Hema Traders Rs2,000
23. Cash paid to Hema Traders Rs40,000

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 WORKSHEET - JOURNAL ENTRIES LEDGER TRIAL BALANCE

Section A

1 The book in which all the accounts are opened, is called: [1]
a) Subsidiary Book
b) Ledger

c) Cash Book
d) Journal

2 The book in which every account is maintained is [1]

a) Ledger
b) Capital

c) Assets

d) Liability

3 The total of Purchase Return Column of Purchases Return book will be [1]
posted to the:
a) Dr. side of Purchases Return A/c

b) Cr. of Purchases A/c

c) Cr. side of Purchases Return A/c

d) Dr. of Purchases A/c

4 Most commonly used method of preparing Trial Balance is: [1]

a) Balance Method

b) Total amount method

c) Asset and liability method

d) Total - cum - balance method

5 Assertion (A): Opening entry is passed for the first transaction of each [1]
 day.
Reason (R): In the opening entry, the accounts of all assets are debited
and the accounts of liabilities as well as capital are credited.

a) Both A and R are true and R is the correct explanation of A.

b) Both A and R are true but R is not the correct explanation of A.

c) A is true but R is false.

d) A is false but R is true.

6 Assertion (A): If goods are lost due to theft, loss by theft account is [1]
debited.

Reason (R): As per the rules of accounting, all gains are credited.

a) Both A and R are true and R is the correct explanation of A.

b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.

d) A is false but R is true.

7 The page number of the ledger account where the posting has been made [1]
fromthe journal, is recorded in the ________ column of the journal.

a) ledger folio

b) credit
c) date

d) debit

8 Consider the following statements with regard to the advantages of [1]

Journal:
1. Information about business transactions can be easily obtained on
a timely basis, as transactions are recorded in chronological order.

2. With the help of the narration that is mandatory for every

transaction, it is possible to understand the correct nature of the
entry.

3. Chances of errors are minimized, as both debit and credit aspects

are recorded.

4. They form the basis for posting entries into the ledger.
 Identify the correct statement/statements:
a) i, ii and iv

b) ii and iii
c) i and ii

d) i, ii, iii and iv

9 Consider the following statements with respect to the functions of Journal: [1]

1. Transactions are analysed according to the debit and credit aspect,

thereby finding out how each transaction will financially affect the
business.

2. Transactions are recorded with a brief narration that explains the

transaction in simple language.

3. It contains a chronological record of transactions for past

reference.
Identify the correct statement/statements:

a) i and iii
b) i and ii

c) i, ii and iii

d) ii and iii

10 Read the text carefully and answer the questions: [4]

In the books of M/s Ravilal and Company

Trial Balance as on 31 / 3 / 2018

1. Which of the following items appears in the wrong side of the trial
Balance?
a) Capital

b) Purchases
c) Motor Vans

d) Premises

2. The discount received should be on the ________ side of the Trial

Balance.
a) Capital

b) Liability
c) Credit

d) Debit

3. The Electricity is recorded in the ________ side of the Trial Balance as

it is an ________.
 a) expenses,Debit
b) Debit, expenses

c) expenses,Credit
d) Credit, expenses

4. What should be the actual total in the rectified Trial Balance?

a) ₹ 18,21,000

b) ₹ 19,92,500

c) ₹ 19,21,000

d) ₹ 18,92,500

12 Redraft correctly the Trial Balance given below: [4]

13 Pass the Journal entries for the following transactions of Gaurav Traders & [6]
Prepare Hitesh A/c and Naresh A/c