New ! Accountancy MCQ Practise Tests

Public Exam Model Question Paper 2019 - 2020

11th Standard

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Accountancy

Time : 02:45:00 Hrs
Total Marks : 90

    Part I

    Answer all the questions.

    Choose the most suitable answer from the given four alternatives and write the option code with the corresponding answer.

    20 x 1 = 20
  1. Which one of the following is not a main objective of Accounting?

    (a)

    Systematic recording of transactions

    (b)

    Ascertainment of the profitability of the business

    (c)

    Ascertainment of the Financial position of the business

    (d)

    Solving tax disputes with tax authorities

  2. _____________must be properly maintained to increase their productivity.

    (a)

    Liabilities

    (b)

    Assets

    (c)

    Debtors

    (d)

    None of these

  3. GAAPs are:

    (a)

    Generally Accepted Accounting Policies

    (b)

    Generally Accepted Accounting Principles

    (c)

    Generally Accepted Accounting Provisions

    (d)

    None of these

  4. The incorrect accounting equation _________

    (a)

    Assets = Liabilities + Capital

    (b)

    Assets = Capital + Liabilities

    (c)

    Liabilities = Assets + Capital

    (d)

    Capital = Assets - Liabilities

  5. RTGS stands for 

    (a)

    Real Time Gross Settlement

    (b)

    National electronics fund transfer

    (c)

    Credit card

    (d)

    Debit card

  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. Net position of an account can be ascertained from ________.

    (a)

    Journal

    (b)

    Ledger

    (c)

    Trial balance

    (d)

    Balance sheet

  8. When double entry system is followed, the totals of the debit and the Credit columns of the trial balance must be

    (a)

    Equal

    (b)

    unequal

    (c)

    Excess

    (d)

    Short

  9. Purchases book is used to record______

    (a)

    all purchases of goods

    (b)

    all credit purchases of assets

    (c)

    all credit purchases of goods

    (d)

    all purchases of assets

  10. Which of the following is recorded as contra entry?

    (a)

    Withdrew cash from bank for personal use

    (b)

    Withdrew cash from bank for office use

    (c)

    Direct payment by the customer in the bank account of the business

    (d)

    When bank charges interest

  11. While balancing three column cash book, the discount columns are:

    (a)

    Totalled but not adjusted

    (b)

    Totalled and also adjusted

    (c)

    Totalled but not balanced

    (d)

    Balanced but not totalled

  12. A bank pass book is a copy of_____________

    (a)

    the cash column of a customer's cash book

    (b)

    the bank column of a customer's cash book

    (c)

    the customer's account in the bank's ledger

    (d)

    none of these

  13. A credit purchase of furniture from Athiyaman was debited to purchases account. Which of the following accounts should be debited while rectifying this error?

    (a)

    Purchases account

    (b)

    Athiyaman account

    (c)

    Furniture account

    (d)

    None of these

  14. For which of the following assets, the depletion method is adopted for writing off cost of the asset?

    (a)

    Plant and machinery

    (b)

    Mines and quarries

    (c)

    Buildings

    (d)

    Trademark

  15. __________ means the amount incurred in acquiring the asset.

    (a)

    Original cost of the asset

    (b)

    Scrap value of an asset

    (c)

    Estimated useful life of the asset

    (d)

    None of these

  16. 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

  17. Carriage inwards will be shown

    (a)

    In the trading account

    (b)

    In the profit and loss account

    (c)

    On the liabilities side

    (d)

    On the assets side

  18. _______ is a summary of the personal and real accounts.

    (a)

    Balance sheet

    (b)

    Final account

    (c)

    Trading account

    (d)

    Profit and loss account

  19. When bad debts already appears in the trial balance, it is taken only to debit side of __________ account.

    (a)

    Profit and Loss

    (b)

    Balance sheet

    (c)

    Asset side

    (d)

    None of these

  20. An example of output device is

    (a)

    Mouse

    (b)

    Printer

    (c)

    Scanner

    (d)

    Keyboard

  21. Part II

    Answer any 7 questions. Question no. 30 is compulsory.

    7 x 2 = 14
  22. Who are the parties interested in accounting information?

  23. Give the golden rules of double entry accounting system.

  24. What will be the effect on trial balance if purchases return of Rs 10,000has been wrongly posted to the debit of sales return account but correctly entered in the customer's account?

  25. What is sales book?

  26. Is it necessary that a suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?

  27. Furniture was purchased for Rs 60,000 on 1-7-2016. It is expected to last for 5 years. Estimated scrap at the end of five years is Rs 4,000. Find out the rate of depreciation under straight line method.

  28. Write a note on capital receipt. Give any two examples.

  29. What are fixed assets?

  30. What is depreciation?

  31. Give any two examples of readymade software.

  32. Part III

    Answer any 7 questions. Question no. 40 is compulsory.

    7 x 3 = 21
  33. Discuss the role of an accountant in the modern business world.

  34. What is matching concept? Why should a business concern follow this concept?

  35. Rectify the Journal Entries, assuming the narration is correct.

    i) Purchases A/c Dr 80,000  
      To Hariram A/c     80,000
      (Being cash purchases from Hariram)      
    ii) Cash A/c Dr 15,000  
      To Sales A/c     15,000
      (Being sale of Furniture)      
    iii) Sales A/c Dr 60,000  
      To Govind A/c     60,000
      (Being credit sale to Govind)      
    iv) Bank A/c Dr 4,000  
      To Cash A/c     4,000
      (Being amount withdrawn by the Proprietor from bank for his use)      
    v) School Fees A/c Dr 12,000  
      To Cash A/c     12,000
      (Being School fees paid to Proprietors' son)      
    vi) Charity A/c Dr 4,500  
      To Sales A/c     4,500
      (Being donation of goods)      
  36. What are the limitations of trial balance?

  37. Write a note on (i) Bills Receivable Book (ii) Bills Payable Book.

  38. Briefly explain about contra entry with examples.

  39. State the timing differences in BRS with examples.

  40. Following errors are discovered in the Books of Sita Ram. Make the necessary entries to rectify them.
    (i) Purchases journal was Rs 2,150.
    (ii) Rs 500 received from K. Krishna was debited to his account.
    (iii) An amount of Rs 3,000 withdrawn by the Proprietor of the firm for his personal use was posted to the Traveling expense account.
    (iv) An amount of Rs 175 for a credit sale to R. Gopalan correctly entered in the sale book, has been debited to his account as Rs 157.

  41. What are the classifications of expenditures?

  42. Following is the list of students and percentage of marks obtained by them. If a student has secured a minimum of 50%, he is declared pass, else fail.

    Student Percentage of marks
    1 59
    2 60
    3 65
    4 45
    5 35
  43. Part IV

    Answer all the questions.

    7 x 5 = 35
    1. Ganesh & Co. purchased a Machinery worth Rs 3,00,000 on 1st October 2010. They spent 20,000 on its erection. The firm writes off depreciation at the rate of 10% on the original cost every year. The books are closed on 31st March of every year. Prepare machinery account and depredation account for three years.

    2. Discuss the advantages of computerised accounting system in a business organisation.

    1. The book-keeper of a firm found that the trial balance was out by Rs.922 (excess credit).He placed the amount in the suspense account and subsequently found the following errors:
      (a) The total of discount column on the credit side of the cash book Rs.78 was not posted in the ledger.
      (b) The total of purchases book was short by Rs.1,000.
      (c) A credit sale of goods to Natarajan for Rs.375 was entered in the sales book as Rs.735.
      (d) A credit sale of goods to Mekala for Rs.700 was entered in the purchases book.
      You are required to give rectification entries and prepare suspense account.

    2. From the under mentioned trial balance of Mr. Saleem as on 31-03-2018. Prepare trading and profit and loss account and balance sheet as on the date.

      Trial Balance
      Debit balances Amount Rs. Credit balances Amount Rs.
      Cash in hand 1,500 Capital 80,000
      Purchases 1,20,000 Bank loan @ 4% 20,000
      Opening stock 40,000 Bills payable 25,000
      Sundry debtors 60,000 Sundry creditors 25,000
      Plant and Machinery 50,000 Sales 2,00,000
      Furniture 20,000 Provision for bad and  
      Bills receivable 15,000 doubtful debts 1,500
      Rent and taxes 10,000 Interest 1,000
      Wages 16,000    
      Salaries 20,000    
        3,52,500   3,52,500

      Additional Information Supplied :
      (i) Closing stock Rs.50,000
      (ii) Provide for outstanding liabilities
      Rent and taxes Rs.2,000
      Wages Rs.3,000
      Salaries Rs.4,000
      (iii) Depreciation on plant and machinery @ 5% and on furniture @ 10%.
      (iv) Provide 4% interest on bank loan.
      (v) Write off bad debts Rs.2,000

    1. Give journal entries for the following transactions and post them to ledger.

      2015 Mar   Rs.
      1 Goods sold to Somu on credit 5,000
      7 Furniture purchased for cash 300
      15 Interest received 1,800
    2. Enter the following transactions in the sales book and sales returns book of M/s. Guhan & Sons, who is a textile dealer.

       2017May 2   Sold to MIs. Karan & Co., on credit  
          100 pieces towels @ Rs 280 per piece  
          200 metres shirtings @ Rs 270 per metre  
      May 5   Sold to MIs. Veeran & Sons on credit
          10 pieces ready-made dress @ Rs 1,500per piece  
      May 16   Sold to M/s. Jain & Sons on credit
          50 blankets @ Rs 240 each
      May 20   Damaged 10 pieces towels returned by Karan & co. and cash not paid  
      May 25   Sold old furniture to MIs. Saran & Co., on credit Rs 18,000
      May 27   Returned 2 pieces ready-made dresses by M/s. Veeran & Sons due to inferior quality and cash not paid
    1. What are the bases of accounting? and briefly explain it.

    2. Write the narration with reference to the following journal entries.

      Date Particulars   L.F Debit Rs. Credit Rs.
      15.1.16 Cash A/c Dr   17,000  
        To Ramesh A/c       17,000
        (............................................................)        
      17.1.16 Rent A/c Dr   26,000  
        To Bank A/c       26,000
        (............................................................)        
      19.1.16 Bills payable A/c Dr   7,000  
        To Cash       7,000
        (............................................................)        
      25.1.16 Cash A/c Dr   6,000  
        To Sales A/c       6,000
        (............................................................)        
    1. Explain briefly accounting conventions

    2. Prepare Trial Balance as on 3t.3.2014 froni the books of Mrs. Chitra.

      Name ofthe account Rs Name ofthe account Rs
      Capital 2,49,000 Drawings 24,000
      General expenses 97,000 Building 78,000
      Machinery 1,18,680 Stock 1,32,400
      Wages 14,400 Insurance 2,610
      Bad debts 1,100 Creditors 5,000
      Sales 3,30,720 Loan (Cr.) 75,000
      Commission 5,500 Purchases 2,10,800
      Bills payable 7,700 Reserve. Fund 15,000
      Bank overdraft 28,600 Cash in hand 23,320
      Discount 1,210    
    1. Visit a stationery shop nearby. Observe its business activities for a week. After having discussed with the shop keeper, prepare a list of purchased and sold items by the shop. Record them in the appropriate books.

    2. Prepare a single column cash book from the following particulars of Mr. Chandran.
       

      2012, December Rs.
      1 Cash balance 80,000
      7 Bought goods for cash 25,000
      9 Purchased goods on credit from Guru 6,000
      12 Sold goods to Somu on credit 8,000
      14 Paid Guru 6,000
      17 Cash received from Somu 8,000
      20 Paid trade expenses 10,000
      21 Received cheque from Krishna 10,000
      27 Commission received 5,000
    1. From the following information, prepare trading and profit and loss account of Abdul Rahuman for the year ending 31st December 2016 and balance sheet as on that date. The closing stock on 31st December 2016 was valued at Rs 2,000.

       Particulars   Rs   Particulars   Rs 
        Opening stock        500   Purchases     1,300
        Sales   5,000   Wages 700
        Discount received   500   Salary 500
        Building    50,000   Capital 50,000
        Cash in hand 4,500    
    2. Prepare bank reconciliation statement from the following data.

      Particulars Rs
      (i) Credit balance as per cash book 5,000
      (ii) Cheques deposited but not yet credited 3,000
      (iii) Cheque issued but not yet presented for payment 4,000
      (iv) Rent collected by the bank as per standing instruction 120
      (v) Interest on overdraft debited by bank 760
      (vi) Amount wrongly debited by bank 300
      (vii) Cheque issued on 30th December 2017 dishonoured by the bank 520
      (viii) A customer's cheque deposited in the bank dishonoured by bank not recorded in the book 55

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