Subject: Accountancy
Class XI – Mid Term Practice Paper
Time Allowed: 3 hours
Max. Marks: 80
General Instructions:
1. There are 29 questions in the question paper.
2. All questions are compulsory
3. Question nos. 1 to 16 carrying 1 mark each.
4. Question nos. 17-18 are short answer type–I questions carrying 3 marks each.
5. Question nos. 19-24 are short answer type–II questions carrying 4 marks each.
6. Questionnos.25-27 are long answer type–I questions carrying 6 marks each.
7. Questionnos.28-29 are long answer type–II questions carrying 8 marks each.
8. There is no overall choice. However, an internal choice has been provided in 1 question of three marks, 2 questions of four marks, 1 question of six marks and 2 questions of eight marks.
1. Which of the following transactions is not of financial character?
(A) Purchase of asset on credit
(B) Purchase of asset for cash
(C) Withdrawing of money by owner for personal use
(D) Strike by Employees
2. Ledger is related to
(A) Provide information to various parties who are interested in business enterprise.
(B) Record transactions in the books.
(C) To make summary in the form of financial statements.
(D) To classify the transactions under separate heads in the ledger.
3. Principle of conservation takes into account
(A) All future profits and losses
(B) All future profits and not losses
(C) All future losses and not profit
(D) Neither profits nor losses of future
4. Capital invested by owner show as a liability in balance sheet due to
(A) Business Entity Concept
(B) Matching Concept
(C) Accounting Period Concept
(D) Historical cost concept
5. Cash discount is allowed @10% on Rs. 7,750. The amount paid will be _______.
(A) Rs. 7,000
(B) Rs. 6,925
(C) Rs. 6,900
(D) Rs. 6,975
6. Sumit, who owed Rs. 10,000 become insolvent. 70 paise in a rupee was received from his estate. Bad Debts Account will be debited by:
(A) Rs. 10,000
(B) Rs. 5,000
(C) Rs. 1,500
(D) Rs. 3,000
7. Sunil purchased 1,000 add Ger Roller Pens@ Rs.50 each less Trade Discount of 20%. Purchase Account will be debited by:
(A) Rs.50,000
(B) Rs.40,000
(C) Rs.45,000
(D) Rs.60,000
8. Outstanding Rent is a……………………. account.
(A) Personal
(B) Nominal
(C) Real
(D) None of these
9. Repair expenses paid on purchase of an old machine debited to _______.
(A) Repair Account
(B) Machinery Account
(C) Misc Expenses Account
(D) None of these
10. According to which concept the same accounting method should be used each year.
(A) Prudence
(B) Materiality
(C) Consistency
(D) Historical cost concept
11. Where amount of Trade discount given on sale will be recorded?
(A) Journal Book
(B) Cash Book
(C) Sales Book
(D) None of these
12. The differences between the cash-book and bank pass-book is caused by:
A. Timing differences on recording of the transactions.
B. Errors made by the business
C. Errors made by the bank
D. All of the above
13. Bank reconciliation statement is prepared to reconcile_______ and ______ balances.
A. Cash Book; Pass Book
B. Cash book; Cash Account
C. Bank Account; Cash Book
D. Cash Account; Pass book
14. The process of transferring the transactions from the Journal to the Ledger is known as:
(A) Balancing
(B) Costing
(C) Journlising
(D) Posting
Closing Stock is Rs. 10,000. Journalise in the books of account by crediting _________.
(A) Purchase Account
(B) Sales Account
(C) Trading Account
(D) None of these
16. Which of the following accounts has a credit balance?
(A) Discount Received
(B) Wages
(C) Bank
(D) Discount Allowed
17. Explain Debit note and Credit note.
OR
State the meaning of a voucher and types of vouchers
18. What is matching concept? Why should a business concern follow this concept? Discuss.
19. Mr. A of Baroda purchased goods of Rs. 50,000 from Mr. B of Surat and Rs. 1,20,000 From Mr. X of Jaipur. Mr. A sold goods costing of 1, 30,000 to a businessman in Gujarat for Rs. 1,50,000. Rate of IGST is 10%, Rate of SGST is 5 % and Rate of CGST is 5%.
Based on the above information you are required to answer the following questions.
(i) Amount of IGST charged by Mr. A
(A) 12000
(B) 17000
(C) Nil
(D) 13000
(ii) Amount of IGST charged by Mr. X
(A) 22000
(B) 17000
(C) 3000
(D) 12000
(iii) Amount of SGST charged by Mr. A
(A) 15000
(B) 9000
(C) 7500
(D) 6500
(iv) Amount of CGST charged by Mr. A
(A) 7500
(B) 6500
(C) 15000
(D) 130000
20. Following are the transactions of Mr. Saurav, Delhi:
He started his business with Cash Rs. 10,000; Bank Rs. 5,000; Machinery Rs.50,000 and Stock Rs.5,000.
Stock of Rs.500 lost by fire. Cash Sales Rs. 2,000, Purchase of Furniture by cheque Rs.2,000 Mr. Saurav maintains Principal as well as subsidiaries books of accounts including Cash Book, Purchase Book, Sales Book, Purchase Return Book, Sales Return Book and Journal Proper.
Answer the following questions from the above case:
(i) Mr. Sourav started business with Machinery, where the transaction of machinery recorded.
(A) Cash Book
(B) Journal Proper
(C) Purchase Book
(D) Sales Book
(ii) He Purchase furniture by cheque, where it will be recorded in:
(A) Journal Proper
(B) Cheque Book
(C) Purchase Book
(D) Cash Book
(iii) Mr. Saurav has no need to prepare two accounts if he maintains double column Cash Book. Which two accounts he has no need to prepare _______.
(A) Cash, Bank
(B) Bank, Cheque in hand
(C) Bank Overdraft, Bank
(D) Machinery
(iv) In which side of Cash Book does Cash Sales recorded:
(A) Credit
(B) Debit
(C) Not recorded in Cash Book
(D) None of these
21. Read the following hypothetical text and answer the given questions:
Sujan initiated her startup Ishika Ltd. in 2018. On 31St March, 2022, She was going through her Cash book and Pass Book.
She found out that the pass book showed a debit balance of Rs. 7,500 which was different from her cash book.
Bank column balance. So, she decided to prepare a Bank Reconciliation statement to reconcile both the balances from the following particulars:
1. Cheques paid in for collection amounted to Rs. 20,600 but Cheques of Rs. 7,800 were credited on 3rd April, 2022.
2. A cheque for Rs. 1,000 debited in the cash book was omitted to be banked.
3. Cheques amounting to Rs. 7,800 were drawn on 27th March, of which Cheques of Rs. 2,400 were cashed upto 31st march, 2022.
4. A cheque of Rs. 800 was banked and credited, but omitted to be recorded in the Cash Book.
5. Bank charged interest on overdraft Rs, 650.
Based on above information you are required to answer the following questions.
(i) How would you dealt with the bank interest charged by bank on overdraft?
A. Plus Rs. 650
B. Plus Rs. 1,300
C. Not be recorded
D. None of the above.
(ii) A cheque of Rs. 800 was banked and credited, but omitted to be recorded in the Cash Book. in Bank Reconciliation Statement, Sujan should:
A. Ignore it
B. Record it as minus Rs.800
C. Record it as plus Rs. 800
D. Either A or C
(iii) A cheque for Rs. 1,000 debited in the cash book was omitted to be banked. This error had not affected the balances so it should be ignored- says Sujan. Sujan is –
A. Right
B. No she is wrong, she should minus it from passbook balance
C. No she is wrong, she should plus it in passbook balance
D. Cannot be determined
(iv) Cheques amounting to Rs. 7,800 were drawn on 27th March, of which cheques of Rs. 2,400 were cashed upto 31st march, 2022. This transaction should be recorded as
A. Minus Rs. 7,800
B. Minus Rs. 2,400
C. Minus Rs. 5,400
D. Minus Rs. 10,200
22. Give one example of each of the following transactions:
(i) Increase in an asset and a liability.
(ii) Decrease in an asset and a liability.
(iii) Increase in assets and capital.
(iv) Decrease in assets and capital.
OR
What entry (debit or credit) would you make to:
(a) increase revenue
(b) decrease in expense,
(c) record drawings
(d) record the fresh capital introduced by the owner.
23. On which side the increase in the following accounts will be recorded? Also mention the nature of account:−
1. Furniture
2. Rent Paid
3. Commission Received
4. Salary Paid
OR
Open ‘T’ shape account for Machinery and write the following on the proper side:
24. Accounting information refers to financial statements. The information provided by these statements can be categorised into various types. Briefly describe them.
25. 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:
(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?
26. Ram and Shyam are two friends who both have just attended their first class of accountancy. The friends were intrigued by the different branches of accounting and their widespread application. Ram personally liked the branch of accounting in which fund flow statement and budgetary control is used and that branch helps in planning and controlling of operations. As the concept of accounting was further explored, they began discussing the different users of accounting. Ram said that he finds it interesting that even the employees demand information relating to business. Shyam said he finds more interesting the fact that even competitors want information on the relative strengths and weaknesses of the enterprise and for making comparisons, Shyam further said that even accounting helps owners to compare one year’s costs, expenses, and sales with those of other years. However, they were quite shocked by the fact that the management-worker relations were not taken into consideration in the accounting. Meanwhile, Ram and Shyam had an argument at the end of the discussion. Ram was saying that accounting is an art whereas Shyam was saying that accounting is a science. Their teacher came in and said something to them which made them stop the argument.
(i) What might their teacher have said to solve their argument?
(a) Ram, please understand, Shyam is correct in this situation
(b) Shyam, please understand, Ram is correct In this situation.
(c) Both are correct
(d) None is correct
(ii) Shyam talked about which type of users of accounting?
(a) Internal users
(b) External users
(c) Both (a) and (b)
(d) None of these.
(iii) Which limitation of accounting is being talked about by them?
(a) Influenced by personal judgment
(b) Omission of qualitative information.
(c) Incomplete information
(d) Based on historical costs
(iv) Which advantage of accounting is being talked about by Shyam in the last part of the first para?
(a) Provides information regarding profit and loss
(b) Provides completes and systematic record
(c) Enables comparative study
(d) Evidence in legal matters
(v) Which branch of accounting is liked by Ram?
(a) Financial accounting
(b) Cost accounting
(c) Management accounting
(d) Tax accounting
(vi) Shyam further said that even accounting helps owners to compare one year’s costs, expenses, and sales wthose of other years.
Which step of accounting process is discussed in above line:
(a) Recording
(b) classifying
(c) identification
(d) analyze
27. What will be the effect of the following on the Accounting Equation?
(i) Harish started business with cash ₹ 1,80,000.
(ii) Purchased goods for cash ₹ 60,000 and on credit ₹ 30,000.
(iii) Sold goods for cash ₹ 40,000; costing ₹ 24,000.
(iv) Rent paid ₹ 5,000; and rent outstanding ₹ 2,000.
(v) Sold goods on credit ₹ 50,000 (costing ₹ 38,000).
(vi) Salary paid in advance ₹ 3,000.
OR
Verma Bros. Kolkata carry on business as wholesale cloth dealer. From the following, write up their Purchases Book for January, 2019:
28. Prepare two column cash book from the following transactions for the month of April, 2013
OR
Journalise the following: −
2017 March 4 Purchased building for ₹ 1,50,000 and incurred expenses of ₹ 10,000 on its purchase.
March 10 Satish who owed us ₹ 20,000 is declared insolvent and 60 paise per ₹ is received from his estate.
March 15 Paid ₹ 500 for repairing the office furniture.
March 18 Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 2,000.
March 20 Purchased the following items for business: Iron Safe ₹ 15,000; Filing Cabinet ₹ 5,000; Computer ₹ 12,000; Postage ₹ 200 and Stationery ₹ 150.
March 28 Paid electricity charges ₹ 1,600. March 31 Charge depreciation on Machinery @ 10% for one year (Machinery ₹ 75,000).
March 31 Outstanding wages at the end of the year ₹ 6,000.
29. Prepare Bank Reconciliation statement on 31st March 2018 from the following particulars:
i. R’s overdraft as per the Pass Book Rs.12,000 as on 31st March
ii. On 30th March, Cheques had been issued for Rs.70,000 of which cheques worth Rs.3,000 only had been encashed up to 31st March.
iii. Cheques amounting to Rs.3,500 had been paid into the bank for collection but of this only Rs.500 had been credited in the Pass Book.
iv. Bank has charged Rs.500 as interest on overdraft and the intimation of which has been received on 2nd April 2018.
v. Bank Pass Book shows credit for Rs.1,000 representing Rs.400 Paid by debtor of R direct into the Bank and Rs.600 collected directly by Bank in respect of interest on R’s investment. R had no knowledge of these items.
vi. A cheque for Rs.200 has been debited in bank column of Cash Book by R, but it was not sent to Bank at all.
vii. Passbook shows a debt of Rs.1,000 for bank charges and credit of Rs.2,000 as interest.
viii. Interest on investment Rs.2,500 collected by the bank appeared in the passbook.
OR
On comparing the cash book with passbook of Naman it is found that on March 31, 2017, bank balance of ₹ 40,960 showed by the cash book differs from the bank balance with regard to the following:
(a) Bank charges ₹ 100 on March 31, 2017, are not entered in the cash book.
(b) On March 21, 2017, a debtor paid ₹ 2,000 into the company’s bank in settlement of his account, but no entry was made in the cash book of the company in respect of this.
(c) Cheques totaling ₹ 12,980 were issued by the company and duly recorded in the cash book before March 31, 2017, but had not been presented at the bank for payment until after that date.
(d) A bill for ₹ 6,900 discounted with the bank is entered in the cash book with recording the discount charge of ₹ 800.
(e) ₹ 3,520 is entered in the cash book as paid into bank on March 31st, 2017, but not credited by the bank until the following day.
(f) No entry has been made in the cash book to record the dishonour or on March 15, 2017 of a cheque for ₹ 650 received from Bhanu.
(g) ₹ 3,000 is not entered in the cash book as paid into bank on March 31st, 2017, but credited by the bank.
(h) No entry has been made in the pass book to record the dishonour or on March 15, 2017 of a cheque for ₹ 300 received from jagat.
Prepare a reconciliation statement as on March 31, 2017.