+1 First Revision Test

11th Standard

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Accountancy

Time : 02:30:00 Hrs
Total Marks : 90

    I. Choose the most suitable answer and write the option code and the corresponding answer 

    20 x 1 = 20
  1. Financial position of a business is ascertained on the basis of ______________ .

    (a)

    Journal

    (b)

    Trial balance

    (c)

    Balance Sheet

    (d)

    Ledger

  2. Buying of goods with an intention of resale is ________

    (a)

    purchases

    (b)

    sales

    (c)

    income

  3. The concept which assumes that a business will last indefinitely is

    (a)

    Business Entity

    (b)

    Going concern

    (c)

    Periodicity

    (d)

    Conservation

  4. 'Cash withdrawn by the proprietor from the business for his personal use' causes ____

    (a)

    Decrease in assets and decrease in owner's capital

    (b)

    Increase in one asset and decrease in another asset

    (c)

    Increase in one asset and increase in liabilities

    (d)

    Increase in asset and decrease in capital

  5. Nominal account is classified under__________.

    (a)

    Personal A/c

    (b)

    Impersonal A/c

    (c)

    Neither of the two

  6. If the total of the debit side of an account exceeds the total of its credit side, it means

    (a)

    Credit Balance

    (b)

    Debit Balance

    (c)

    Nil Balance

    (d)

    Debit and Credit Balance

  7. Transferring entries from Journal to Ledger Accounts is called _____________

    (a)

    Casting

    (b)

    Posting

    (c)

    Journalising

    (d)

    Balancing

  8. A list which contains balances of accounts to know whether the debit and credit balances are matched is___

    (a)

    Journal

    (b)

    Day book

    (c)

    Trial balance

    (d)

    Balance sheet

  9. Sales return book is used to record_________

    (a)

    Returns of goods by the customer for which cash is paid immediately

    (b)

    Returns of goods by the customer for which cash is not paid immediately

    (c)

    Returns of assets by the customer for which cash is not paid immediately

    (d)

    Returns of assets by the customer for which cash is paid immediately

  10. The return of goods to a supplier should be credited to______

    (a)

    Supplier Account

    (b)

    Goods Account

    (c)

    Purchase Return Account

    (d)

    None of the above

  11. In Triple column cash book, the balance of bank overdraft brought forward will appear in_________

    (a)

    Cash column debit side

    (b)

    Cash column credit side

    (c)

    Bank column debit side

    (d)

    Bank column credit side

  12. A bank reconciliation statement is prepared with the help of ___________.

    (a)

    Bank statement

    (b)

    Cash book

    (c)

    Bank statement and bank column of the cash book

    (d)

    Petty cash book

  13. In cash book bank charges recorded in the___________.

    (a)

    Credit side

    (b)

    Debit side

    (c)

    Both a & b

    (d)

    None of these above

  14. The total of purchases book was overcast. Which of the following accounts should be debited in the rectifying journal entry?

    (a)

    Purchases account

    (b)

    Suspense account

    (c)

    Creditor account

    (d)

    None of the above

  15. Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older

    (a)

    Straight line method

    (b)

    Reducing balance method

    (c)

    Sinking fund method

    (d)

    Annuity method

  16. A trader followed WDV method of depreciation; the book value of assets after 4 years is 24% of original cost. Find rate of depreciation__________.

    (a)

    24%

    (b)

    26%

    (c)

    32%

    (d)

    30%

  17. Amount of Rs.5,000 spent as lawyer's fee to defend a suit claiming that the firm's factory site belonged to the plaintif's land is ____________

    (a)

    Capital expenditure

    (b)

    Revenue expenditure

    (c)

    Prepaid revenue expenditure

    (d)

    Revenue receipt

  18. Drawings appearing in the trial balance is

    (a)

    Added to the purchases

    (b)

    Subtracted from the purchases

    (c)

    Added to the capital

    (d)

    Subtracted from the capital

  19. Debts which cannot be recovered or irrecoverable are called _________.

    (a)

    Bad debts 

    (b)

    Depreciation

    (c)

    Closing stock

    (d)

    Capital

  20. TALLY is an example of

    (a)

    Tailor-made accounting software

    (b)

    Ready-made accounting software

    (c)

    In-built accounting software

    (d)

    Customised accounting software

  21. II. Answer any seven questions in which question No. 30 is compulsory. 

    7 x 2 = 14
  22. 'Accounting is useful only to the owner of the business' - Do you agree?

  23. What is accounting equation?

  24. Mr Ganesh an accountant of XYZ co. in order to match the trial balance passed a dummy entry without any proof of the transaction and did not even inform the senior about it. Identify the value being violated by the accountant.

  25. What is journal proper ?

  26. When can a bank reconciliation be prepared?

  27. Rectify the following errors discovered after the preparation of the trial balance:
    (a) Rent paid was carried forward to the next page Rs.500 short.
    (b) Wages paid was carried forward Rs.250 excess.

  28. A furniture costing Rs 5,000 was purchased on 1.1.2016, the installation charges being Rs 1,000. The furniture is to be depreciated @10% p.a. on the diminishing balance method. Pass journal entries for the first two years.

  29. State with reasons whether the following are capital or revenue expenditure:
    i. Expenses incurred in connection with obtaining a licence for starting the factory for Rs.25,000.
    ii. A factory shed was constructed at a cost of  Rs.2,00,000. A sum of  Rs.10,000 had been incurred in the construction of temporary huts for storing building material.
    iii. Overhaul expenses of second-hand machinery purchased amounted to Rs.5,000.

  30. If depreciation reduces profits, reduces value of assets and also reduces capital of the proprietor, then why do enterprises provide for depreciation?

  31. Give any two examples of readymade software.

  32. III. Answer any seven questions in which question No. 40 is compulsory

    7 x 3 = 21
  33. Discuss briefly the branches of accounting.

  34. Explain the Process of Accounting cycle.

  35. State the principles of double entry system of book keeping.

  36. Indicate the nature of normal balance in the following accounts.
    (a) Cash  (b) Creditors  (c) Sales (d) Furniture   (e) Commission received (f) Debtors  (g) purchases  (h) Capital   (i) Salaries and   (j) Computer

  37. Write the following transactions in proper subsidiary books of Mr Rajasekaran.

     2014 May 10   Purchased goods from Raman Rs 15,000.  
    May 14   Returned goods to Raman Rs 500.
    May 18   Purchased goods from Sekaran Rs 10,000.
    May 20   Pradeep sold goods to us Rs 20,000.
    May 24   Sent a Debit note to Sekaran for goods damaged in transit Rs 1,000.  
  38. Enter the following transactions in a single column cash cash book of Pradeep for April, 2017

    April   Rs
    1 Commenced Bussiness with cash 27,000
    5 Bought goods for cash 6,000
    10 Goods sold for cash 11,000
    13 Paid into bank 5,000
    14 Goods sold to Sangeetha for cash 9,000
    17 Goods purchased from Preethi on credit 13,000
    21 Purchased stationery by cash 200
    25 Paid Murugan by cash 14,000
    26 Commission paid by cash 700
    29 Drew from bank for office use 4,000
    30 Rent paid by cheque 3,000
  39. Rectify the following errors assuming that the trial balance is already prepared and the difference was placed to suspense account:
    (a) Sales book was undercast by Rs.250
    (b) Purchases book was undercast by Rs.120
    (c) Sales book was overcast by Rs.130
    (d) Bills receivable book was undercast by Rs.75
    (e) Purchases book was overcast by Rs.35.

  40. “Balance sheet is not an account”- Explain.

  41. Give the adjusting entries for interest on capital and interest on drawings.

  42. Consider the following information:
    Loan amount Rs.3,00,000
    Number of payment periods 48 months
    Annual rate of interest 10%
    Calculate periodic payment using PMT function.

  43. IV.  Answer all the questions.

    7 x 5 = 35
    1. Briefly explain the functions of accounting

    2. Veena is a dealer in textiles. On January 1, 2018, her business showed the following balances: Cash in hand: Rs 20,000; Bank balance: Rs 70,000; Stock: Rs 15,000 following are the transactions made during January 2018. Show the effect of the transactions on accounting equation.
      a) Purchased goods (readymade shirts) on credit from Subbu               Rs 20,000
      (b) Goods returned to Subbu and no cash is received                           Rs 5,000
      (c) Goods (shirts) costing Rs 1,600 was sold to Janani on credit          Rs 2,000
      (d) Janani returned 1 shirt of sales value                                             Rs 500                     
      (e) Janani deposited the money due in cash deposit machine in a bank Rs 1,500
      (f) Insurance on building paid through net banking                                Rs 1,000 
      (g) Insurance on building paid through net banking                               Rs 100

    1. Pass journal entries for the following transactions and post them in the ledger accounts.

       2017
      June   1
         
         Commenced business with cash Rs. 50,000  
      4    Purchased furniture by paying cash for Rs. 6,000   
      7    Purchased machinery on credit from Harish Rs. 10,000   
      10    Bought goods for cash Rs 4,000
      18    Paid insurance premium Rs 100
    2. Prepare the trial balance from the following balances of Rajesh as on 31st March, 2017.

        Rs   Rs
      Bills receivable 13,000 Drawings 7,000
      Bank charges 750 Sundry debtors 17,100
      Conveyance charges 350 Bills payable 12,000
      Discount received 1,300 Capital 25,900
      Cash in hand 1,000    
    1. Enter the following transactions in the purchases returns book of Hari who is dealing in automobiles and post them into the ledger.

       2017   
       Jan 5   Returned to Anand 5 clutch plates @ Rs 200 each, not in accordance with order. 
       Jan 14   Returned to Chandran 4 brake shoes @ Rs 200 each and 10rear view mirrors @ Rs 350 each, due to inferior quality.
    2. Record the following transactions in an analytical petty cash book and balance the same. On 1st November, 2017, the petty cashier started with imprest cash Rs.2,000.

      2017 Nov 1 Postage stamps purchased 155
        2 Paid to sweeper and scavenger 170
        3 Conveyance to Manager 125
        6 Lorry hire for goods rent 260
        7 Greeting card purchased 110
        10 Carriage paid 70
        11 Repairs to furniture 100
        13 Ink and gum purchased 50
        17 Computer servicing charges paid 250
        20 Cleaning charges paid 120
        22 Gave charity to beggars 40
        23 Paid to Rammohan 80
        25 Paid railway fare 150
        30 Subscription paid to the Times of India 120
    1. Enter the following transactions in a petty cash book of Mr. Jack with analytical columns. The petty cashier begins with an imprest amount of Rs.1,000.

      2012, June Rs.
      4 Postage Stamps 40
      5 Travelling expenses 75
      6 Lunch expenses 150
      8 Labour charges for bringing office tables 50
      10 Repair charges to fax machine 250
      12 Postage stamps 20
      15 Cleaning the office 50
      17 Stationery purchased 175
      27 Paid to Ravi 150
    2. The bank statement of Sudha and Company showed an overdraft of Rs.10,000 on 31st December 2017, prepare a bank reconciliation statement.
      (a) A cheque deposited on 30th December 2017 for Rs.15,000 was not credited by the bank.
      (b) Interest on term loan Rs.500 was debited by bank on 31st December 2017 but not accounted in the books of Sudha and Company.
      (c) A cheque issued for Rs.550 on 24th December 2017, paid by the bank was recorded as 505 in the bank column of the cash book.
      (d) One outgoing cheque on 27th December 2017 of Rs.200·was recorded twice in the cash book.
      (e) Bank recorded a cash deposit of Rs.2,598 as Rs.2,589.
      (f) A sum of Rs.2,000 deposited in cash deposit machine by a customer of the business on 31st December 2017 was not recorded in the books of Sudha and Company.
      (g) Interest on overdraft of Rs.600 was not recorded in the books of Sudha and Company,
      (h) Two cheques issued on 29th December 2017 for Rs.500 and Rs 700, but only the first cheque was presented for payment before
      31st December 2017.

    1. Rectify the following errors which were located before preparing the trial balance.
      (a) Wages paid Rs.2,000 for the erection of machinery was debited to wages account.
      (b) Sales returns book was short totalled by Rs.1,000.
      (c) Goods purchased for Rs.200 was posted as Rs.2,000 to purchases account.
      (d) The sales book was overcast by Rs.1,500.
      (e) Cash paid to Mukil Rs.2,800 which was debited to Akhil’s account as Rs.2,000

    2. On 1st January 2015, a second hand machine was purchased for Rs 58,000 and Rs 2,000 was spent on its repairs. On 1st July 2017, it was sold for Rs 28,600. Prepare the machinery account for the years 2011 to 2013 under written down value method by assuming the rate of depreciation as 10% p.a. and the accounts are closed on 31st December every year.

    1. Classify the following receipts under capital and revenue.
      i) Rs.3,00,000 worth of debentures are issued for raising loan.
      ii) Rs.5,000 received as dividend from the investment on shares.
      iii) Gokul started business with Rs.4,00,000.
      iv) A machinery costing Rs.50,000 was sold for Rs.50,000.
      v) Creditors allowed discount Rs.30,000.

    2. From the following information, prepare profit and loss account for the year ending 31st December 2016.

       Particulars   Rs   Particulars   Rs 
        Gross loss     60,000   Printing and stationery (office)      2,000
        Promotional expenses    5,000   Legal charges 5,000
        Distribution expenses       15,000   Bad debts 1,000
        Commission paid 7,000   Depreciation 2,000
        Interest on loan paid 5,000   Rent received 4,000
        Packing charges (on sales)    4,000   Loss by fire not covered by insurance    3,000
        Dividend received 3,000     
    1. On preparing final accounts of Suresh, bad debt account has a balance of Rs. 800 and sundry debtors account has a balance of Rs. 16,000 of which Rs. 1,200 is to be written off as further bad debts. Pass adjusting entry for bad debts. And also show how it would appear in profit and loss account and balance sheet.

    2. From the data given below
      i) Fill the address in B3 using CONCATENATE Function.
      ii) Change KAMARAJAR SALAI given in C2 as lower case in C3
      iii) Change Chennai given in D2 as upper case in D3

        A B C D E
      1 NAME HOUSE NO. STREET PLACE PINCODE
      2 ANAND 123 KAMARAJAR SALAI Chennai 600018

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