Half Yearly Model Question Paper 1

11th Standard

    Reg.No. :
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Accountancy

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

    Part A

    Choose the correct answer.

    20 x 1 = 20
  1. Who is considered to be the internal user of the financial information

    (a)

    Creditor

    (b)

    Employee

    (c)

    Customer

    (d)

    Government

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

    (a)

    13th

    (b)

    14th

    (c)

    18th

    (d)

    19th

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

    (a)

    Business Entity

    (b)

    Going concern

    (c)

    Periodicity

    (d)

    Conservation

  4. __________ is useful to find out tax liability in case of sales tax, income tax, property tax, etc

    (a)

    Double entry

    (b)

    Book keeping

    (c)

    Economics

    (d)

    Statistics

  5. Accounting equation is formed based on the accounting principle of ______

    (a)

    Dual aspect

    (b)

    Consistency

    (c)

    Going concern

    (d)

    Accrual

  6. The origin of a transaction is derived from the

    (a)

    Source document

    (b)

    Journal

    (c)

    Accounting equation

    (d)

    None

  7. The process of finding the net amount from the totals of debit and credit columns in a ledger is known as

    (a)

    Casting

    (b)

    Posting

    (c)

    Journalising

    (d)

    Balancing

  8. The closing balance is the next year's___________

    (a)

    debit balance

    (b)

    credit balance

    (c)

    nil balance

    (d)

    opening balance

  9. While preparing the trial balance, the accountant finds that the total of the credit column is short by Rs.200. This difference will be

    (a)

    Debited to suspense account

    (b)

    Credited to suspense account

    (c)

    Adjusted to any of the debit balance

    (d)

    Adjusted to any of the credit balance

  10. A periodic total of the purchases book is posted to the _______

    (a)

    debit side of the purchases account

    (b)

    debit side of the sales account

    (c)

    credit side of the purchases account

    (d)

    credit side of the sales account

  11. Business concerns are always profit motivated and try to increase their _____

    (a)

    Purchases

    (b)

    Production

    (c)

    Sales

    (d)

    None of these

  12. A cash book with discount, cash and bank column is called_______

    (a)

    Simple cash book

    (b)

    Double column cash book

    (c)

    Three column cash book

    (d)

    Petty cash book

  13. Debit balance in the bank column of the cash book means ____________.

    (a)

    Credit balance as per bank statement

    (b)

    Debit balance as per bank statement

    (c)

    Overdraft as per cash book

    (d)

    None of the above

  14. Wages paid for installation of machinery wrongly debited to wages account is an error of

    (a)

    Partial omission

    (b)

    Principle

    (c)

    Complete omission

    (d)

    Duplication

  15. Under straight line method, the amount of depreciation is

    (a)

    Increasing every year

    (b)

    Decreasing every year

    (c)

    Constant for all the years

    (d)

    Fluctuating every year

  16. 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

  17. Revenue expenditure is intended to benefit

    (a)

    Past period

    (b)

    Future period

    (c)

    Current period

    (d)

    Any period

  18. Net profit of the business increases the ______________.

    (a)

    Drawings

    (b)

    Receivables

    (c)

    Debts

    (d)

    Capital

  19. Balance sheet shows ____________ the of the business.

    (a)

    Profitability

    (b)

    Financial position

    (c)

    Sales

    (d)

    Purchases

  20. A prepayment of insurance premium will appear in

    (a)

    The trading account on the debit side

    (b)

    The profit and loss account on the credit side

    (c)

    The balance sheet on the assets side

    (d)

    The balance sheet on the liabilities side

  21. Part B

    Answer all the questions. Each question carries two marks.




    7 x 2 = 14
  22. What is "Full Disclosure Principle" of accounting?

  23. What is the purpose of Balancing the ledger accounts?

  24. What is sales returns book?

  25. Enter the following transactions in the purchases return book of M/s. Sutha a Saree dealer.

     2017 July 10   Singhal Mills, accepted the returns of goods (which were purchased for Cash)
    10 Silk sarees @ Rs 100
    July 15   Returned to Aggarwal Mills
        100 Silk sarees @ Rs 110
        Less: Trade discount @ 10%
    July 18   Returned one typewriter (being defective) @ Rs 3,500 to Garg & Co.
    July 25   Returned to Grover & Sons.
        50 Kota sarees @ Rs 60
        Less: Trade Discount @ 10%
  26. Give any two expenses which may be paid by the banker as per standing instruction.

  27. Rectify the following errors located after the preparation of trial balance:
    (a) Purchases book was undercast by Rs.900.
    (b) Sale of old furniture for Rs.1,000 was credited to sales account.
    (c) Purchase of goods from Arul for Rs.1,500 on credit was not recorded in the books

  28. 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.

  29. Part C

    Answer all the questions. Each question carries three marks.

    7 x 3 = 21
  30. Write short notes on cash basis of accounting.

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

  32. Prepare the trial balance from the following-balances of Ms Chitra as on 31.03.2015.

       Rs    Rs
     Capital      2,50,000  Bank    2,75,000
     Bills payable   50,000  Debtors  1,00,000
     Opening Stock   75,000  Discount received   5,000
     Loan 1,50,000  Sales 50,000
     Salaries 10,000  Purchases 45,000
  33. The following trial balance has certain errors. Redraft it.

     S.No   Name of account   L.F   Debit balance 
    Rs
     Credit balance 
    Rs
    1  Building   60,000  
    2  Machinery   17,000  
    3  Returns outward   2,600  
    4  Bad debts   2,000  
    5  Cash   400  
    6  Discount received     3,000  
    7  Bank overdraft   10,000  
    8  Creditors   50,000  
    9  Purchases   1,00,000  
    10  Capital     72,800
    11  Fixtures     5,600
    12  Sales     1,04,000
    13  Debtors     60,000
    14  Interest received     2,600
       Total   2,45,000 2,45,000
  34. Explain why does money deposited into bank appear on the debit side of the cash book, but on the credit side of the bank statement?

  35. The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Rectify them.
    (a) Sale of goods on credit to Arun for Rs 152 posted to his account as Rs 125.
    (b) Bought goods from Lakshmi on credit for Rs 550, credited to her account as Rs 505.
    (c) Purchase of furniture from Abirupa for Rs 404 on credit was debited to furniture account as Rs 440.
    (d) Purchased machinery for cash Rs 200 was not posted to machinery account.
    (e) The total of purchases book Rs 89 was carried forward as Rs 98.

  36. Machinery was purchased on 1st January 2015 for Rs 4,00,000. Rs 15,000 was spent on its erection and Rs 10,000 on its freight charges. Depreciation is charged at 10% per annum on straight line method. The books are closed on 31st March each year. Calculate the amount of depreciation on machinery for the first two years.

  37. Part D

    Answer all the questions. Each question carries five marks.

    7 x 5 = 35
  38. Pass Journal Entries in the books of Ragu from the following transactions:

    2016 June  
    1 Ragu started business with cash Rs.80,000; goods Rs.40,000 and furniture Rs.20,000.
    2 Sold goods to Nandu of the list price of Rs.20,000 at trade discount of 10%.
    3 Nandu returned goods on the list price of Rs.4,000
    8 Received from Nandu Rs.14,150 in full settlement in his account
    10 Purchased goods from Mohan of the list price of Rs.10,000 at 15% Trade discount.
    13 Returned goods to Mohan of the list price Rs.1,000
    16 Settled his account of Mohan by paying cash, under discount of 4%.
    18 Purchased goods from Ajay Rs.5,000; Sanjay Rs.10,000.
    19 Paid Cash to Ajay Rs.1,900 and discount received Rs.100.
    20 Paid 9,800 to Sanjay in full settlement of his account
    20 Bought a 'Tabie Fan' for Rs1,200 for the domestic use of Raghu.
    25 Sold goods for cash of the list price of Rs.8,000 at 10%, Trade Discount and 3% cash Discount
    30 Paid Rent Rs.800; Trade expenses Rs.700 and Travelling expenses Rs 380.
  39. The following balances are extracted from the books of Ravichandran on 31st December, 2016. Prepare the trial balance.

      Rs   Rs
    Capital 1,50,000 Sales 75,000
    Debtors 22,800 Return inwards 1,000
    Rent received 500 Discount allowed 800
    Bank overdraft 3,100 Discount received 1,000
    Creditors 5,500 Wages 2,900
    Premises 1,46,000 Salaries 3,500
    Opening Stock 10,000 Commission paid 1,100
    Purchases 45,000 General expenses 2,000
  40. Record the following transactions in the three column cash book of John Pandian.

    2017 Dec 1 Cash balance brought forward 12,600
    1 Bank overdraft brought forward 36,000
    1 Advance paid to petty cashier by cheque 3,000
    5 Goods sold for cash 12,000
    7 Dividend on shares collected by the banker 1,000
    13 Cash paid into Bank 10,000
    14 Interest charged by the bank for bank overdraft 1,500
    18 Cheque issued to Siddique 8,000
      Discount received from him 200
    24 Insurance claim received by cheque and deposited into bank 17,000
    28 Cash received from Baskar 15,000
      Discount allowed to him 150
    31 Deposited into Bank all cash excess of Rs.18,600  
  41. 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.

  42. On 31st December 2013 the pass book of Ms. Chandrika shows a credit balance of Rs 3,357. The cheques sent to the bank but not collected and credited amounted to Rs 790 and three cheques drawn for Rs 300, Rs 150 and Rs 200 respectively were not presented for payment till 31st January 2014.
    Bank has paid a bill payable amounting to Rs 1,000 but it has not been entered in the cash book and a bill receivable of Rs 500 which was discounted with the bank was dishonored by the drawer on due date.
    The Bank has charged Rs 12 as its commission for collecting outstation cheques and has allowed interest Rs 10 on the trader's balance.
    Prepare a Bank Reconciliation statement and show the balance as per cash book.

  43. Ragul purchased machinery on April 1, 2014 for Rs 2,00,000. On 1st October 2015, a new machine costing Rs 1,20,000 was purchased. On 30th September 2016, the machinery purchased on April 1, 2014 was sold for Rs 1,20,000. Books of accounts are closed on 31st March and depreciation is to be provided at 10% ap.a. on straight line method. Prepare machinery account and depreciation account for the years 2014-15 to 2016-17:

  44. From the following particulars presented by Thilak for the year ended 31st March 2017, prepare profit and loss account.

     Particulars   Rs.   Particulars   Rs. 
      Gross profit        1,00,000   Interest received       6,000
      Rent paid 22,000   Bad debts 2,000
      Salaries 10,000   Provision for bad debts (1-4-2016)    4,000
      Commission (Cr.)  12,000   Sundry debtors 40,000
      Discount received    2,000   Buildings     80,000
      Insurance premium paid    8,000    

    Adjustments:
    (a) Outstanding salaries amounted to Rs. 4,000
    (b) Rent paid for 11 months
    (c) Interest due but not received amounted to Rs. 2,000
    (d) Prepaid insurance amounted to Rs. 2,000
    (e) Depreciate buildings by 10%
    (f) Further bad debts amounted to Rs. 3,000 and make a provision for bad debts @ 5% on sundry debtors
    (g) Commission received in advance amounted to Rs. 2,000.

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