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Revision Model Question Paper 2

11th Standard

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Accountancy

Time : 03:00:00 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. The root of financial accounting system is _________

    (a)

    Social accounting

    (b)

    Stewardship accounting

    (c)

    Management accounting

    (d)

    Responsibility accounting

  2. Double- entry book-keeping first emerged in Italy in the ___________ century.

    (a)

    13th

    (b)

    14th

    (c)

    18th

    (d)

    19th

  3. The business is liable to the proprietor of the business in respect of capital introduced by the person according to

    (a)

    Money measurement concept

    (b)

    Cost concept

    (c)

    Business entity concept

    (d)

    Dual aspect concept

  4. The incorrect accounting equation _________

    (a)

    Assets = Liabilities + Capital

    (b)

    Assets = Capital + Liabilities

    (c)

    Liabilities = Assets + Capital

    (d)

    Capital = Assets - Liabilities

  5. Which of the following statements is correct?

    (a)

    Accounting profit is the difference between cash receipts and cash paid in a period

    (b)

    Accounting profit is the total of cash sales in the year less the expenses for the period

    (c)

    Accounting profit is the difference between revenue income and expenses for the period

    (d)

    Accounting profit is the difference between revenue income and cash payment for the period

  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. Account having credit balance is closed by writing _____________

    (a)

    To Balance b/d

    (b)

    By Balance c/d

    (c)

    To Balance c/d

  8. The preparation of ___________ is the third step in the accounting process.

    (a)

    journal

    (b)

    ledger

    (c)

    trial balance

    (d)

    balance sheet

  9. Closing entries are recorded in _____

    (a)

    Cash book

    (b)

    Ledger

    (c)

    Journal proper

    (d)

    Purchases book

  10. 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

  11. The closing balance of petty cash book is considered as

    (a)

    Liability

    (b)

    Asset

    (c)

    Expenses

    (d)

    Income

  12. Debit balance in the Cash book means________________

    (a)

    Overdraft as per Pass book

    (b)

    Credit balance as per Pass book

    (c)

    Overdraft as per Cash book

    (d)

    None of these

  13. Goods returned by Senguttuvan were taken into stock, but no entry was passed in the books. While rectifying this error, which of the following accounts should be debited?

    (a)

    Senguttuvan account

    (b)

    Sales returns account

    (c)

    Returns outward account

    (d)

    Purchases returns account

  14. Depreciation is the process of

    (a)

    Allocation of cost of the asset to the period of its useful life

    (b)

    Valuation of assets

    (c)

    Maintenance of an asset in a state of efficiency

    (d)

    Adding value to the asset

  15. _________ is also known as residual value.

    (a)

    Book value

    (b)

    Scrap value

    (c)

    Amortization

    (d)

    Wear and tear

  16. Interest on Investments received from UTI is ____________

    (a)

    Capital receipt

    (b)

    Revenue receipt

    (c)

    Capital expenditures

    (d)

    Revenue expenditures

  17. Goodwill is classified as

    (a)

    A current asset

    (b)

    A liquid asset

    (c)

    A tangible asset

    (d)

    An intangible asset

  18. At the end of the accounting year the balance in purchases returns account is closed by transferring to __________ account.

    (a)

    Capital

    (b)

    Purchases

    (c)

    Sales

    (d)

    None of these

  19. Interest on drawings is credited to ______ Account.

    (a)

    Trading

    (b)

    Profit and loss

    (c)

    Liabilities

    (d)

    Assets

  20. People who write codes and programes are called as

    (a)

    System analysts

    (b)

    System designers

    (c)

    System operators

    (d)

    System programmers

  21. Part II

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

    7 x 2 = 14
  22. Define accounting.

  23. Complete the missing items.

      Assets Rs= Liabilities Rs+ Capital Rs
    (a) 30,000 20,000 ?
    (b) 60,000 25,000 ?
    (c) ? 25,000 30,000
    (d) ? 10,000 80,000
    (e) 25,000 ? 15,000
    (f) 40,000 ? 30,000
  24. Do you think the trial balance tallies all the time? What should be done when it does not tally?

  25. What is an opening entry ?

  26. Will the trial balance agree in case of errors of partial omission? Why?

  27. List out the various methods of depreciation.

  28. State the nature of the following transactions:
    i) Carriage paid on goods purchased.
    ii) Legal expenses incurred for abuse of trade mark.
    iii) Money raised by issue of equity shares.

  29. Write a note on trading account.

  30. Accrued income is credited to the profit and loss account and shown in the balance sheet a current asset. Why

  31. Name any two accounting packages.

  32. Part III

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

    7 x 3 = 21
  33. Discuss in detail the importance of accounting

  34. "Business units last indefinitely". Mention and explain the concept on which the statement is based.

  35. Explain the meaning of source documents

  36. The following balances are extracted from the books of Murali, as on 31st March, 2017. Prepare trial balance.

    Particulars Rs Particulars Rs
    Sales 35,000 Audit fees 1,000
    Interest paid 350 Octroi duty 8,000
    Returns inward 2,500 Land 90,000
    Depreciation 2,400 Capital 60,000
    Office rent 2,000 Bank overdraft 11,250
  37. Give specimens of the following:
    (a) Purchases book,
    (b) Sales book,
    (c) Purchases return book,
    (d) Sales return book.

  38. Explain the meaning of imprest system of petty cash book.

  39. In the following illustration, what will be the cash book balance, if the balance as per bank statement is favourable?

      Particulars Amount Rs
    (i) Overdraft balance as per bank statement 6500
    (ii) Cheque deposited into the bank but not yet credited 10,500
    (iii) Cheques issued, but not yet presented for payment 3,000
    (iv) Wrong debit by the bank 500
    (v) Interest and bank charges debited by bank 180
    (vi) Insurance premium on goods directly paid by the bank as per standing instructions 10
  40. The Accountant in a firm committed the following errors.
    (a) Rent paid to landlord Rs 12,600 was debited to the Landlord's personal account.
    (b) Sold Computer for Rs 6,000 was entered in sales account.
    (c) Cash drawn by the proprietor for his personal use Rs 7,400 was debited to Trade expenses account.
    (d) Repairs to machinery Rs 500 was passed through the Machinery account. Rectify the above errors.

  41. What are the classifications of expenditures?

  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. Part IV

    Answer all the questions.

    7 x 5 = 35
  44. What are the bases of accounting? and briefly explain it.

  45. Explain briefly accounting conventions

  46. Journahse the following transactions in Mr. Nallappan's Journal. 2014, March

    Date   Rs.
    1 Mr. Nallappan started business with 25,000
    3 Received cash from Selvaraj 10,000
    5 Opened current account with ICICI Bank 5,000
    10 Bought goods for 5,000
    15 Sold goods for 12,500
    18 Paid rent 2,500
    25 Paid salary 5,000
    28 Withdrew cash fro in bank 5,600
    30 Insurance premium paid 1,200
  47. The following balances appeared in the books of Kumaran on April 1, 2017.
    Assets: Cash Rs 1,00,000; Stock Rs 40,000; Amount due from Rohit Rs 10,000;
    Furniture Rs 10,000; Liabilities: Amount due to Anush Rs 40,000;
    Kumaran's capital Rs 1,20,000
    Find the capital and show the ledger posting for the above opening balances.

  48. Mary runs a textile store. She has prepared the following trial balance from her ledger balances. Her trial balance does not tally. She needs your help to check whether what she has done is correct.

    S.No. Name of the account L.F. Debit Balance
    Rs
    Credit Balance
    Rs
    1. Capital   50,000  
    2. Discount received     3,000
    3. Rent paid     15,000
    4. Salaries Paid   1,000  
    5. Purchases of textiles     20,000
    6. Sale of textiles     30,000
    7. Salesmen commission paid     9,000
    8. Transport charges paid   6,000  
    9. Cash balance   32,000  
          89,000 77,000
  49. Record the following transactions in the sales book and sales returns book of M/s. Ponni & Co., and post them to ledger.

     2017Aug 1   Sold goods to Senthil as per Invoice No. 68 for Rs 20,500 on credit 
    Aug 4   Sold goods to Madhavan as per Invoice No. 74 for Rs 12,800 on credit  
    Aug 7   Sold goods to Kanagasabai as per Invoice No. 78 for Rs 7,500 on credit
    Aug 15   Returns inward by Senthil as per Credit Note no. 7 for Rs 1,500 for which cash is not paid
    Aug 20   Sold goods to Selvam for Rs 13,300 for cash
    Aug 25   Sales returns of Rs 1,800 by Madhavan as per Credit Note No. 11 for which cash is not paid
  50. Enter the following transactions in the proper subsidiary books of Mr. Somu.
    2013, Nov. 1 Bought from Gopal 300 bags of Wheat Rs.1,000 per bag less trade discount 10%
    3 Purchased from Madhavan 150 bags of Rice Rs. 900 per bag less trade discount 10%
    5 Returned to Gopal 10 bags of Wheat which were purchased on 1.11.13
    7 Sold to Shiva 50 bags of Rice Rs.1,200 per bag less Trade Discount 5%
    12 Sold to Sharma 25 bags of Wheat Rs.1,300 per bag less Trade Discount 10%
    14 Returned 15 bags of Rice to Madhavan.
    15 Shiva returned 5 bags of rice.
    17 Bought from Rajan 200 bags of Wheat Rs.950 per bag
    24 50 bags of Wheat returned to Rajan.

  51. Enter the following transactions m cash book WIth cash and bank columns. Balance the cash book.

    2013, May Rs.
    1 Cash in hand 30,000
    2 Paid into bank 10,000
    3 Cash purchases 2,500
    4 Loan obtained from Vasan 10,000
    5 Cash deposited in bank 7,500
    6 Cash sales 2,500
    8 Rent paid by cheque 2,000
    10 Cash withdrew for office use 4,000
    14 Paid Nataraj Rs.300 by M.O.  
    15 Akilan directly paid into our bank account 3,000
    25 Cash withdrawn from bank 5,000

     

  52. On 31st March, 2017, Anand's cash book showed a balance of Rs. 1,12,500. Prepare ban reconciliation statement.
    a) He had issued cheques amounting to Rs. 23,000 on 28.3.2017, of which cheques amounting to Rs. 9,000 have so far been presented for payment.
    b) A cheque for Rs. 6,300 deposited into bank on 27.3.2017, but the bank credited the same only on 5th April 2017.
    c) He had also received a cheque for Rs. 12,000 which, although entered by him in the cash book, was not deposited in the bank."
    d) Wrong credit given by the bank on 30th March 2017 for Rs.2,000.
    e) On 30th March 2017, a bill already discounted with the bank for Rs. 3,000 was dishonoured, but no entry was made in the cash book.
    f) Interest on debentures of Rs. 700 was received by the bank directly.
    g) Cash sales of Rs. 4,000 wrongly entered in the bank column of the cash book.

  53. A book-keeper finds that the debit column of the trial balance is short by Rs.308 and the difference is put to a suspense account. Subsequently, the following errors were located.
    (a) An entry for sale of goods on credit for Rs 102 to Mekala was posted to her account as Rs.120.
    (b) Rs.100 being the monthly total of discount allowed to customers was credited to discount received account in the ledger.
    (c) Rs.275 paid by Mannan was credited to Kannan account.
    (d) Rs. 26 appearing in the cash book as paid for the purchase of stationery for office use has not been posted to ledger.
    (e) The purchases book was undercast by Rs.100.
    Rectify the errors and prepare suspense account.

  54. A company purchased machinery on 1.4.2012 for Rs 50,000.Depreciation is lO%. Aecounts are closed on 31st March every year. Prepare machinery account and depreciation account under straight line method and also under written down value method

  55. 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    
  56. 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

  57. Compare ready-to-use, customised and t.ailor-made accounting pacages.

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