SAMPLE QUESTION PAPER - 1

Accountancy (055)
Class XI (2024-25)

Time Allowed: 3 hours Maximum Marks: 80

General Instructions:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Question 1 to 17 and 27 to 29 carries 1 mark each.
4. Questions 18 to 20 and 30 to 32 carries 3 marks each.
5. Questions from 21 to 23 carries 4 marks each.
6. Questions from 24 to 26, 33 and 34 carries 6 marks each.
Part A
1. The business documents which serves as the evidence of the business transactions [1]
are known as

a) Notes b) Source documents

c) First hand documents d) Bills

2. Assertion (A): Accounting is an art as it involves recording, classifying, [1]

summarising business transactions with a view to ascertain the net profit.
Reason (R): Accounting is a science since it is based on certain specified principles
and accounting standards.

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

c) A is true but R is false. d) A is false but R is true.

3. Sundry Creditors Account is a: [1]

a) Liability Account b) Asset account

c) Capital Account d) Revenue Account

4. Calculate the amount of cash if: other assets( Except Cash) = Rs.10,000 liabilities= [1]
Rs.10,000 Total Capital= Rs.5000

a) Rs.3000 b) Rs.1000

c) Rs.5000 d) Rs.10000

OR
When cash is withdrawn by proprietor, what is its impact on accounting equation?

a) Increase in assets, increase in b) Decrease in assets, decrease in

capital capital

c) Increase in assets, increase in d) Decrease in assets, decrease in

liabilities liabilities

5. Pay-in-slip is a [1]

a) Document drawn upon a b) Both of these

specified banker and payable
on demand

c) Source document for having d) Document containing account

deposits made in the bank detail

6. Which stakeholder would be most interested in the earning capacity of a business [1]
firm?

a) Government and other b) Customers

regulators

c) Investors d) Suppliers

OR
Radheshyam is a furniture dealer. Which one of the following will not be recorded in
his books?
A. Purchase of Timber for Rs 50,000
B. Sofa set worth Rs 40,000 taken to his home
C. Sale of household furniture for Rs 5,000
D. Dining table of Rs 30,000 given to his friend as a gift
 a) Only A b) Only D

c) Only B d) Only C

7. Reserves can be meant for the purpose of: [1]

a) meeting a future contingency b) strengthening the general

financial position of the
business

c) All of these d) redeeming a long-term liability

8. Balance of Capital Account is shown as: [1]

a) Liability Account b) Revenue Account

c) Asset account d) Capital Account

OR
Goodwill account is a:

a) Nominal Account b) Real Account

c) representative personal d) Personal Account

account

9. The accounting principle that conforms to the tendency of accountants to resolve [1]
uncertainty and doubt in favour of understanding assets and revenues and
overstating liabilities and expenses is known as

a) Consistency b) Conservatism

c) Materiality d) Industry practice

10. Under the Cash Basis of Accounting, expenses are recorded: [1]

a) on event b) both payment and on being

incurred

c) on being incurred d) on payment

11. Which reserve are created for specific purpose [1]

a) Specific Reserve b) Dividend equalization fund

 c) Capital Reserves d) Dividend fund

12. Which of the following is Revenue Expenditure? [1]

a) Purchase of Investments b) Expenses on purchase of

Machinery

c) Building Construction d) Repair Expenses

Expenses

13. The periodic total of sales return journal is posted to [1]

a) Goods account b) Sales return account

c) Purchases return account d) Sales account

14. Main elements of accounting equation are: [1]

a) Bank balance, Investments and b) Capital, Creditors and Bills

Bills Receivable Payable

c) Assets, Liabilities and Capital d) Cash, Stock and Debtors

15. Out of the following assets which one is not an intangible asset? [1]

a) Investments b) Patents

c) Goodwill d) Trademark

OR
In a business Purchases refers to the:

a) All of these b) Purchase of goods for resale.

c) Purchase of an assets to be used d) Purchase of an article to be

in factory. used in office.

16. The advantages of Sales Book are: [1]

a) All of these b) Easiness in preparing Trading

Account

c) Price of goods sold to each d) Knowledge of total price of

party goods sold on credit
17. Reserve created by undervaluation of closing stock is called: [1]

a) Secret Reserve b) Capital Reserve

c) General Reserve d) Specific Reserve

18. When an account is said to have a debit balance and credit balance? [3]

OR
Ramesh purchased on credit goods for ₹ 5,00,000 Less 20% Trade Discount. As per the
terms, he can deduct 4% Cash Discount if he pays the full amount within 15 days. What
amount he will have to pay to avail the Cash Discount?

19. Anish of Gurugram, Haryana sold goods of ₹ 20,000 to Prakash of Noida, Uttar [3]
Pradesh. Rates of CGST and SGST are 6% each while that of IGST is 12%. Pass
the Journal entry in the books of Prakash.

OR
R & Co. paid professional fee to Ram, an advocate. If applicable rate of CGST and
SGST is 6% each, pass the Journal entry for payment of CGST and SGST.

20. What is the difference between trade discounts and cash discounts? [3]

21. What are the objectives of preparing a trial balance? [4]

22. Mr. Goel maintains two bank accounts. Prepare his columnar cash book from the [4]
following particulars:
2023 ₹
May
Cash in hand 34,000
1
Balance with PNB Bank 75,200
Balance with SBI Bank 1,20,000
May
Cash drawn from SBI for office use 25,000
3
Sold goods to Pradhan for ₹ 80,000 and received from him ₹
May 20,000 in cash and a cheque for the balance. The cheque is
8 deposited in PNB on the 9th and the bank credited the amount on
the 15th and debited ₹ 25 as its collection charges.
 Purchased goods for ₹ 40,000 at 20% trade discount. 25% of the
May
amount is paid in cash and issued a cheque on SBI for the balance
12
amount.
May
Paid Wages ₹ 36,000 and Salary ₹ 4,000.
20
May
A cheque for ₹ 50,000 is drawn on SBI and it is deposited in PNB.
22
May
Purchased land for ₹ 3,20,000 and a cheque is issued on PNB.
23
A cheque for ₹ 10,000 which was received from Mukesh and was
th
deposited in SBI on 25 April is dishonoured and the bank
May
debited ₹ 100 as bank charges on this cheque. The amount of
24
dishonoured cheque and bank charges is received from Mukesh in
th
cash on the 25 .
May
Deposited cash ₹ 30,000 in PNB.
26
May Sold old typewriter for ₹ 2,000 and old newspapers for ₹ 200 in
28 cash.
May
Interest charged by PNB Bank ₹ 400.
30
May
Bank charges by SBI Bank ₹ 180 and PNB Bank ₹ 340.
31

23. On 30th June, 2023, the bank Column of Anuj’s Cash Book showed a balance of [4]
₹8,250. On examination of the Cash Book and bank statement you find that:
i. Out of total cheques amounting to ₹8,000 issued, cheques amounting to ₹5,800
have been presented for payment upto 30th June, 2023.
ii. Out of total cheques amounting to ₹6,000 sent to bank for collection, cheques of
₹4,100 were credited in Pass Book upto 30th June, 2023.
iii. On 28th June a customer deposited ₹3,500 direct in the bank account but it was
entered only in the Pass Book.
iv. Debit side of Anuj’s Cash Book (Bank Column) has been overcast by ₹ 100.
v. No entry has been made in the Cash Book for the Rent of ₹800 paid by bankers
according to Anuj’s standing instructions.
 vi. The Pass Book showed a credit of ₹320 for interest and a debit of ₹40 for bank
charges, but these have not been entered in the Cash Book.
Prepare a Bank Reconciliation Statement as on 30th June, 2023.

OR
On checking Ram's Cash Book with the Bank Statement of his overdraft current
account for the month of November, 2013, you find the following :
i. Cash Book showed an overdraft of ₹ 45,000.
ii. The payment side of the Cash Book had been undercast by ₹ 1,500.
iii. A cheque for ₹ 7,500 drawn on his saving account has been shown as drawn on
current account.
iv. Cheques amounting to ₹ 70,000 drawn and entered in the Cash Book had not yet
been presented.
v. Cheques amounting to ₹ 60,000 sent to the bank for collection, though entered in the
Cash Book, had not been credited by the bank.
vi. Bank charges of ₹ 750 as per Bank Statement had not been taken into the Cash Book.
vii. Dividends of the amount of ₹ 25,000 had been paid directly into the bank and not
entered in the Cash Book.
You are required to prepare a Bank Reconciliation Statement on 30th November,
2013.

24. What is a journal? Give a specimen of journal showing at least five entries. [6]

OR
Record necessary Journal entries assuming CGST @ 5% and SGST @ 5% and all
transactions are occurred within Delhi)
i. Shobit bought goods ₹ 1,00,000 on credit
ii. He sold them for ₹ 1,35,000 in the same state on credit
iii. He paid for Railway transport ₹ 8,000
iv. He bought computer printer for ₹ 10,000
v. Paid postal charges ₹ 2000

25. Correct the following errors: (1) without Suspense Account and (2) with Suspense [6]
Account:
i. Sales Book has been totalled ₹ 8,000 short.
ii. Goods of ₹ 1,500 returned by Shivam & Co., have not been recorded.
 iii. Goods purchased of ₹ 2,500 was posted to debit of the supplier, Ram.
iv. Furniture purchased from Pink & Co., of ₹ 10,000 has been entered in Purchases
Book.
v. Cash received from Aniket ₹ 3,500 has not been posted in his account.
Also prepare Suspense Account.

OR
An accountant, while balancing his books found that there was a difference of ₹ 270 in
the trial balance. Being required to prepare the final accounts he placed the difference to
a newly opened Suspense Account, which was carried forward to the next year when
the following errors were discovered:
i. Salary for the month of March was posted twice, ₹ 155
ii. Interest on investments collected by the bankers, were posted directly in concerned
accounts through the pass book, but no entry was made in the bank column of the
cash book ₹ 75
iii. Goods worth ₹ 700 were distributed as free samples but this fact has not been taken
into Books.
iv. Rent of ₹ 350 received from Abhi credited both to Rent Account and Abhi Account.
v. A purchase of a chair from Wallmart Furniture Mart for ₹ 65 has been entered in
purchases book as ₹ 56
vi. Old Machinery sold to the proprietor Keshav for ₹ 400 was entered in Sales Book as
sale to Krishna.
vii. Cash Purchases from Ajit ₹ 189 were recorded in Cash Book as well as in Purchases
Book and posted from both.
viii. Closing Stock has been undervalued by ₹ 300
Give necessary rectifying entries and prepare the Suspense Account.

26. The following balances appear in the books of Y Ltd.: [6]

₹
Machinery A/c as on 1-4-2022 8,00,000
Provision for Depreciation A/c as on 1-4-2022 3,10,000
On 1-7-2022, a machinery which was purchased on 1-4-2019 for ₹ 1,20,000 was
sold for ₹ 50,000 and on the same date, another machinery was purchased for ₹
3,20,000.
The firm has been charging depreciation at 15% p.a. on Original Cost Method and
 closes its books on 31st March every year. Prepare the Machinery A/c and
Provision for Depreciation A/c for the year ending 31st March 2023.

OR
Following balance appear in the books of M/s Anandi as on 1st April 2022:
₹
Machinery Account 60,000
Provision for depreciation A/c 36,000
On 1st April 2022, they decided to dispose off machinery for ₹ 8,400, which was
purchased on 1st April 2018 for ₹ 16,000.
You are required to prepare Machinery Account, Provision for Depreciation Account
and Machinery Disposal A/c for the 2022-23. Depreciation was charged at 10% p.a. on
original cost method.

Part B
27. If the Opening capital is ₹60,000, drawings ₹5,000, capital introduced during the [1]
period ₹10,000, closing capital ₹90,000. The value of profit earned during the
period will be:

a) ₹30,000 b) ₹20,000

c) ₹25,000 d) ₹40,000

OR
Single entry system is also known as

a) Accounts for Real and Nominal b) Accounts from Auditors

nature

c) Accounts from complete d) Accounts from incomplete

records records

28. Revenue Expenditure means [1]

a) Both b) None

c) The expenditure which is d) The amount which is incurred

incurred for the day to day in acquiring or improving the
running of the business value of fixed assets
29. A new firm commenced business on 1st January 2022 and purchased goods costing [1]
₹ 90,000 during the year. A sum of ₹ 6,000 was spent on freight inward. At the end
of the year (on 31st March, 2023) the cost of goods still unsold was ₹ 15,000
(Realisable value 12,000). Sales during the year was ₹ 1,20,000. What is the gross
profit earned by the firm?

a) ₹ 39,000 b) ₹ 36,000

c) ₹ 30,000 d) ₹ 42,000

OR
Calculate provision for doubtful debt. If debtor closing balance is Rs.3,400 and
provision for the reserve of doubtful debts at 10% on sundry debtors

a) Rs.2,060 b) Rs.3,400

c) Rs.340 d) Rs.3,060

30. The following Expenses relate to a motor lorry, purchased by a limited company for [3]
its business:
i. Bought an old lorry for ₹ 1,20,000 in an auction and paid ₹ 1,500 as freight and
cartage.
ii. Its overhauling charges amounted to ₹ 30,000.
iii. Other Accessories were purchased for ₹ 18,000.
iv. Lorry was badly damaged in an accident and its repair cost was ₹ 42,600.
v. Compensation was paid to the person involved in accident ₹ 14,500.
vi. Lorry was sold for ₹ 1,25,000.
vii. Driver’s Salary, Petrol Expenses etc. were ₹ 34,720.
Pass the necessary Journal Entries of the above and Prepare a Lorry A/c.

31. State by giving reasons whether the following items of expenditure are Capital or [3]
Revenue:
i. Expenditure incurred for raising loans.
ii. Expenditure of registration of a trade mark.
iii. Carriage paid on goods purchased.
iv. Commission paid on net profit of the company to manager.
v. Travelling expenses of a director for trip abroad for purchasing capital goods.
 vi. Damages on account of contract.
vii. Compensation paid to a retrenched employee.

32. Ajay started business with capital of ₹ 5,00,000 on 1st April, 2022. He introduced [3]
additional capital of ₹ 3,00,000 on 1st October, 2022. He charged interest on capital
@ 10% p.a. Calculate the amount of interest on capital and show it in the final
accounts.

33. X who keeps incomplete records gives you the following information: [6]
ASSETS AND LIABILITIES
1st April, 2022 (₹) 31st March, 2023 (₹)
Stock in hand 18,700 20,400
Debtors 12,000 14,000
Creditors 9,000 1,500
Bills Receivable 4,000 5,000
Bills Payable 1,000 200
Furniture 600 600
Building 12,000 12,000
Bank Balance 4,350 3,350 (Overdraft)
You are also given the following information:
i. A provision of ₹ 1,450 is required for bad and doubtful debts.
ii. Depreciation @ 5% is to be written off on Building and furniture.
iii. Wages outstanding ₹ 3,000; salaries outstanding ₹ 1,200.
iv. Insurance has been prepaid to the extent of ₹ 250.
v. Legal Expenses outstanding ₹ 700.
vi. Drawings of Mr. X during the year were ₹ 7,520.
Prepare a statement of Profit as on 31st March, 2023, and a final statement of
affairs as at that date.

OR
A retailer had not kept proper books of account. From the details given, you are
required to ascertain the Profit or Loss for the year ended 31st March, 2023 and also to
prepare his Statement of Affairs as at that date:
 1st April, 2022 (₹) 31st March, 2023 (₹)
Stock-in-Trade 16,700 18,100
Sundry Creditors 15,400 19,200
Sundry Debtors 27,200 15,600
Cash in Hand 250 1,400
Bank Overdraft 19,200 Nil
Fixtures and Fittings 1,500 1,500
Motor Van 1,900 Nil
Bank Balance Nil 2,900
Drawings during the year amounted to ₹ 2,400. Depreciate Fixtures and Fittings by
10%. ₹ 600 is irrecoverable from Debtors. Provide ₹ 700 for Doubtful Debts.

34. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2023 [6]
and Balance Sheet as at that date from the given Trial Balance after the following
adjustments:
i. Stock on 31st March, 2023 was valued at ₹ 14,000. Closing Stock includes
goods costing ₹ 10,000 which were sold and recorded as sales but not delivered
to the customer.
ii. Plant and Machinery includes a machine purchased for ₹ 20,000 on 1st October,
2022.
iii. Outstanding liabilities for Wages ₹ 1,200 and Salaries ₹ 2,800.
iv. Depreciation @ 5% p.a. on is to be provided on all fixed assets.
v. Write off bad debts ₹ 1,500.
vi. Insurance premium paid in advance ₹ 400.
vii. 80% of the commission earned was received and credited to Commission
Account during the year.
Debit Balances ₹ Credit Balances ₹
Stock on 1st April, 2022 50,000 Capital 3,20,000
Furniture 16,000 Creditors 80,000
Building 1,60,000 Purchases Return 2,000
Debtors 60,000 Commission 6,000
Drawings 20,000 Sales 4,65,600
Plant and Machinery 1,40,000 Bad Debts Recovered 1,400
Wages 24,000
Salaries 40,000
Bad Debts 2,000
Purchases 2,40,000
Electricity Charges 12,000
Telephone Charges 4,800
Sales Return 1,800
Insurance Premium 3,000
Cash in Hand 6,400
Cash at Bank 95,000
8,75,000 8,75,000

OR
The following balances were extracted from the books of Garim Aggarwal on 31st
March, 2013
Capital 98,000 Loan 31,520
Drawings 8,000 Sales 2,61,440
General expenses 10,000 Purchases 1,88,000
Building 44,000 Motor car 8,000
Machinery 37,360 Reserve fund 3,600
Stock 64,800 Commission (Credit) 5,280
Power 8,960 Car expenses 7,200
Taxes and insurance 5,260 Bills payable 15,400
Wages 28,800 Cash 320
Debtors 25,120 Bank overdraft 13,200
Creditors 10,000 Charity 420
Bad debts 2,200
Stock on 31st March 2013 was valued at Rs. 23,500. Prepare the final accounts for the
year ended 31st March 2013.