SAMPLE PRACTICE PAPER

Class 11 - Accountancy
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. Voucher is prepared for: [1]

a) Cash and Credit purchases b) Cash and Credit sales

c) Cash received and paid d) All of these

2. Assertion (A): Accounting is an art as it involves recording, classifying, summarising business transactions with [1]
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 the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

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

3. Goodwill account is a: [1]

a) Nominal Account b) Real Account

c) None of these d) Personal Account

4. The company has collected money from its debtors by cheque.What is the effect on assets and liabilities [1]

a) Decrease creditors b) Decrease debtor

c) No effect d) Increase Creditors

OR
If Cash= Rs.1000; inventories= Rs.4000 Debtors= Rs.5000; fixed assets=? Capital + Liabilities= Rs.18000. Find out
the Amount of fixed assets?

a) Rs.15000 b) Rs.20000

c) Rs.8000 d) Rs.10000
5. When a trader sells goods on credit, he prepares a sale ________ which contains the name of the party to whom [1]

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 goods are sold, the rate, quantity and the total amount of sale.

a) memo b) invoice

c) Both bill and invoice d) bill

6. Use of common unit of measurement and common format of reporting promotes: [1]

a) Reliability b) Relevance

c) Understandability d) Comparability
OR
Book Keeping and Accounting:
A. means the same and are used interchangeably.
B. does not mean the same and are not used interchangeably.

a) Statement A is correct b) None of these

c) Both statement A and B is correct d) Statement B is correct

7. To whom do the reserves belong to: [1]

a) Debtor b) Creditors

c) Seller d) Proprietor
8. Rule of Debit and Credit for Impersonal account is [1]

a) Dr. the receiver and Cr the giver b) Dr. what goes out and Cr what comes in

c) Dr. all expenses and Cr all gains & Dr. what d) Dr. all expenses and Cr all gains
goes out and Cr what comes in
OR
Debit balance of any account mean an ________ whereas Credit Balance means a ________.

a) Expense, Income b) All of these

c) Assets, Capital d) Assets, Liability

Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions: 2.0
Dukuma is an MSME business in the Alwar district of Rajasthan. It is 40 years old business of selling hardware parts to
local traders of the district and some other retailers of Rajasthan. The company has multiple SKUs and the inventories
are valued by their accountant.
The accountant of the enterprise also happens to be a good friend of the owner of the enterprise. Therefore, the fees of
the accountant was not paid in the year when pandemic set in as the firm was going through cash-crunch. However, the
accountant entered the amount of his fees as expense even though cash was not paid. He justified his act by stating
some accounting concepts. The accountant further completed the books of accounts for the year ended 31 st December,
2020. Over the years, the company has developed a reputation in market by supplying high quality products and
customer-friendly service. The owner of the firm asked the accountant to enter this fact but accountant denied and gave
the correct reasons. The owner was contended.

9. Which principle/concept of accounting is highlighted in the line, Therefore, the fees of the accountant was not paid in the
year when pandemic set in as the firm was going through cash-crunch. However, the accountant entered the amount of
his fees as expense even though cash was not paid?

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 a) Accrual concept b) Dual aspect principle

c) Cost principle d) Consistency concept

10. The company follows the calendar year as accounting year. Which principle is highlighted in the fact that firm divided
the whole life of firm into small financial years?

a) Accounting period principle b) Dual aspect principle

c) Materiality principle d) Prudence principle

11. Which of the following is true relating to Secret reserve: [1]

a) All of these b) Not shown in the balance sheet

c) Profit are shown by less amount than actual d) Appropriation of profit

12. Amount received or receivable against the sale of goods is: [1]

a) cash receipt b) revenue receipt

c) none of these d) capital receipt

13. Recording is made in Journal Proper of: [1]

a) All of these b) Adjustment Entries

c) Opening Entries d) Closing Entries

14. Capital at the end Rs.45,500 and capital in the beginning Rs.50,000. Difference of opening and closing capital is [1]
___

a) Rs.4500 loss b) Rs. 4500 additional capital

c) Rs.4500 revenue d) Rs. 4500 profit

15. Current Liabilities include [1]

a) Creditors b) All of these

c) Bills Payable d) Outstanding Expenses

OR
The nature of capital is ________.

a) an income b) a liability

c) an expense d) an asset
16. Goods sold for Cash Rs 25,000 plus 12% IGST. Sales A/c will be credited by: [1]

a) Rs 28,000 b) Rs 22,000

c) Rs 25,000 d) None of these

17. ________ is the reserve, which is created for some specific purpose and can be utilised only for that purpose. [1]

a) Capital reserve b) Specific reserve

c) Revenue reserve d) General reserve

18. Prepare Journal entries of the following posting in the Ledger accounts:- [3]
i. CASH ACCOUNT

Dr. Cr.

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 ₹ ₹

To Sales 5,000

ii. FURNITURE ACCOUNT

₹ ₹

To Cash 8,000

iii. PURCHASES ACCOUNT

Dr. Cr.

₹ ₹

To Govind 10,000

iv. MURARI

Dr. Cr.

₹ ₹

By Purchases A/c 12,000

v. SALES ACCOUNT

Dr. Cr.

₹ ₹

By Mohan 500

vi. INTEREST ACCOUNT

Dr. Cr.

₹ ₹

By Cash A/c 15,000

OR
Fill in the missing information in the following journal entries:
JOURNAL

S. No. Particulars L.F. Amount Dr. Amount Cr.

₹ ₹

(i) ........ Dr. 25,000

To ........
(Custom duty paid by
25,000
cheque on import of new
machinery)

Abbas
(ii) & Dr. ........
Sons

To ........ ........

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 (Goods costing ₹ 50,000
sold above 10%; less 10%
trade discount)

(iii) ........ Dr. 46,000

........ Dr. ........

To ........
(Cash received from
........
Gaurav and discount
allowed @ 8%)

(iv) ........ Dr. ........

To ........
(Interest charged on capital ........
of ₹ 20,000 @ 9 % p.a)

(v) ........ Dr. ........

To Bank A/c
(Machinery purchased for
........
₹ 40,000 and spent ₹
10,000 on its installation)

19. Roshan, a chartered accountant earned Rs.12,00,000 during the financial years 2012-2013. Out of which he [3]
received Rs.10,50,000. He incurred an expense of Rs.5,10,000, out of which Rs.1,20,000 are outstanding. He
also received his fees relating to previous year Rs.1,35,000 and also paid Rs.60,000 expenses of last year. Find
out Rohan's income for 2012-2013 following the cash basis and accrual basis of accounting.
OR
Name the accounting concept or convention associated with the following
i. Assets are recorded at cost, irrespective of the market price.
ii. Life of a business should be divided into smaller periods.
iii. Accounting transactions should be free from bias of accountants and others.
20. Distinguish between debtors and creditors. [3]
21. Following Trial Balance has been prepared wrongly. You are required to prepare a correct Trial Balance: [4]

Name of Account Balance Dr. (Rs) Balance Cr. (Rs)

Bank overdraft 2,800

Cash-in-hand 400

Purchases Returns 800

Sundry Expenditures 2,400

Sales Returns 1,600

Salaries 1,600

Purchases 5,600

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 Sales 8,800

Creditors 2,400

Debtors 1,600

Opening Stock 2,000

Plant and Machinery 4,000

Capital 4,000

22. Determine the missing values of the Cash Book with Bank Column of Yashika the basis of the following [4]
transactions:

2017 Particular Amount (Rs)

Sept 1 Cash-in-hand 7,500

Bank Overdraft 3,500

Sept 2 Paid Wages 200

Sept 5 Cash Sales 7,000

Sept 10 Cash Deposited into Bank 4,000

Sept 15 Goods Purchased and Paid by Cheque 2,000

Sept 20 Paid Rent 500

Sept 25 Drew from bank for personal use 400

Sept 30 Salary Paid 1000

Cash Book (Double Column)

Dr. Cr.

Date Cash Bank Date Cash Bank

Particular L.F. Particular L.F.
2009 (Rs) (Rs) 2009 (Rs) (Rs)

By
Sept Sept
To Balance b/d ________ Balance 3,500
1 1
b/d

Sept Sept By Wages

To Sales A/c 7,000 200
5 2 A/c

Sept Sept By
To ________ ________ 4,000 ________ 4,000
10 10 ________

To Balance c/d By
Sept Sept
(Bank ________ Purchases ________
30 15
Overdraft) A/c

Sept By Rent
500
20 A/c

Sept By 400

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 25 ________

Sept By Salary
1,000
30 A/c

By
Sept
Balance ________
30
c/d

________ ________ ________ ________

23. Prepare a Bank Reconciliation Statement of Ruchika Ltd. as on 31st March, 2017 from the following [4]
information:
i. Credit Balance (Overdraft) as per Cash Book ₹25,000
ii. Cheques paid into bank for collection ₹60,000 but cheques of ₹24,000 could only be collected in March,
2017
iii. A Cheque of ₹3,500 issued to a Creditor, was entered by mistake in the Cash Column.
iv. A Cheque of ₹10,000 issued on 22nd March was not presented for payment whereas it was recorded twice in
the Cash Book.
v. A bill receivable for ₹8,000 previously discounted with the bank had been dishonoured and bank charges
debited in the Pass Book amount to ₹ 125
vi. In the Cash Book, a bank charge of ₹ 150 was recorded twice while another bank charge of ₹40 was not
recorded at all.
OR
From the following particulars, prepare a Bank Reconciliation Statement of Sh. Yadav on 31st December 2014:-
Balance as per Pass Book on 31st December, 2014 is ₹11,000. Cheques for ₹6,200 were issued during the month of
December but of these cheques for ₹900 were presented in the month of January, 2015 and one cheque for ₹500 was
not presented for payment. Cheque and cash amounting to ₹5,700 were deposited in bank during December but
credit was given for ₹4,700 only. A customer had deposited ₹850 into the bank directly. The bank has credited the
merchant for ₹150 as interest and has debited him for ₹30 as bank charges, for which there are no corresponding
entries in Cash Book.
24. Pass entries in the books of Deepak of Gujarat for the following transactions: [6]

2018

Purchased goods from Anupriya of Gujarat for ₹ 2,50,000.

Feb. 2
(CGST @9% and SGST @9%)

Purchased goods from Rana Rathore of Rajasthan for ₹ 3,00,000.

Feb. 5
(IGST @12%)

Feb. Sold goods to Gurdeep Sidhu of Gujarat for ₹ 2,00,000.

10 (CGST @ 9% and SGST @ 9%)

Feb. Paid railway freight ₹ 15,000.

12 (CGST @9% and SGST @9%)

Feb. Purchased Computer Printer for office for ₹ 80,000 from Dell Ltd. on credit.
16 (CGST @6% and SGST @6%)

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 Feb. Sold goods to Ganga Ram of U.P. goods for ₹ 4,20,000 against cheque which is deposited into the
24 bank.
(IGST @18%)

Feb. Paid for Broad-band services ₹ 10,000 by Cheque.

25 (CGST @6%, SGST @6%)

Feb.
Payment made of the balance amount of GST.
28

OR
Enter the following transactions in the Journal of Manohar Lai & Sons:

2019 ₹

March 1 Manohar Lai & Sons started the business with cash 60,000

2 Purchased furniture for cash 10,000

4 Purchased goods for cash 25,000

5 Bought goods from Kamlesh 15,000

10 Paid cash to Kamlesh 15,000

16 Purchased goods from Sohan 6,000

18 Purchased goods from Sohanfor cash 8,000

20 Paid rent for the office 1,000

25. Give Journal Entries to rectify the following errors: [6]

i. Goods purchased from Ajay for ₹2,600 were recorded in Sales Book by mistake.
ii. Goods for ₹4,400 sold to Surendra was passed through Purchase Book.
iii. A customer returned goods worth ₹1,000. It was recorded in the ‘Purchase Return Book’.
iv. A credit sale of ₹126 to Rajesh was entered in the books as ₹162.
v. The sale of old chairs and Table for ₹700 was treated as a sale of goods.
vi. Rent of proprietor’s residence, ₹800, debited to Rent A/c.
OR
During the course of an accounting year, the accountant prepared a trial balance which did not tally. He put the
difference in a suspense account. Subsequently, he located the following errors in his books of account:
i. The total of the returns outwards book, ₹21,500 has not been posted.
ii. A sale of ₹4,300 to Ramesh has been credited to him as ₹3,400.
iii. A sale of ₹2,960 to Shyam has been recorded in the sales book as ₹2,690.
iv. Old furniture sold for cash worth ₹5,400 has been posted in the sales account as ₹4,500. There was no profit or
loss on the sale.
v. Goods taken by proprietor worth ₹1,000 have not been recorded in the books of account at all.
Pass journal entries to rectify the above-mentioned errors and prepare a suspense account assuming no error has
remained undetected.
26. A company whose accounting year is the calendar year, purchased on 1st April, 2010 machinery costing [6]
Rs.30,000. It purchased further machinery on 1st October, 2010 costing Rs.20,000 and on 1st July, 2011 costing

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 Rs.10,000.
On 1st January, 2012 one third of the machinery which was installed on 1st April, 2010 become obsolete and
was sold for Rs.3,000.
Show how the machine account would appear in the books of the company, it being given that machinery was
depreciated by fixed installment at 10 % per annum.
OR
You are given following balances as on 1st April 2014:
Plant & Machinery A/c Rs 25,00,000
Provision for Depreciation A/c Rs 5,80,000
Depreciation is charged on the plant at 20% p.a. by the diminishing balance method. A piece of machinery purchased
on 1st April 2012 for Rs 5,00,000 was sold on 1st October 2014 for Rs 3,00,000.
Prepare the Plant & Machinery Account and Provision for Depreciation Account for the Year ended 31st March
2015.
Also, prepare Machinery Disposal Account.
Part B
27. Calculate the amount of purchase from the following information. Purchase: ₹ 280000, Return outward: ₹ 5000, [1]
goods distributed as free sample: ₹ 2000, goods costing ₹ 1500 taken over by owner

a) ₹ 269500 b) ₹ 273000

c) ₹ 27000 d) ₹ 271500
OR
Goods taken by the proprietor for personal use is debited to Drawings Account that includes:

a) Purchase Cost of the goods b) As per the firm’s decision

c) Purchase Cost of the goods plus GST Paid d) None of these

28. Trading and Profit and Loss Account is prepared: [1]

a) for the whole year b) for a particular period

c) none of these d) on a particular date

29. If a person fails to pay his debt, such amount is considered as: [1]

a) Provision for Bad debt b) Bad debt

c) Bad debt recovered d) None of these

OR
General Manager gets a 10% commission on net profit after charging such commission. Gross Profit Rs 70,000 and
general expenses other than the manager’s commission are Rs 12,000. Commission amount will be:

a) Rs 6,073 b) Rs 5,173

c) Rs 5,373 d) Rs 5,273
30. From the following details, calculate Opening Inventory: [3]
Closing Inventory ₹ 60,000; Total Revenue from Operations ₹ 5,00,000 (including cash revenue from
operations ₹ 1,00,000); Total purchases ₹ 3,00,000 (including credit purchases ₹ 60,000). Goods are sold at a
profit of 25% on cost.
31. State with reason, which of the following expenditure is Capital Expenditure, Revenue Expenditure or Deferred [3]

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 Revenue Expenditure:
i. Legal expenses incurred to defend a suit for breach of a contract to supply goods.
ii. Custom duty paid on imported machinery.
iii. Heavy expenditure incurred on advertising a new product.
iv. Amount spent to overhaul a motor truck purchased second-hand.
v. Wages paid to workers for setting-up a new machinery.
vi. Wages paid to workers for converting raw material into finished goods.
32. EXTRACTS OF TRIAL BALANCE [3]
as at 31st March, 2019

Dr.(₹) Cr. (₹)

Commission Received 15,000

Adjustment: Commission earned but not received ₹3,000.

33. Distinguish between capital and revenue expenditure and state whether the following statements are items of [6]
capital or revenue expenditure:
a. Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make
it usable.
b. Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.
c. Registration fees paid at the time of purchase of a building.
d. Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.
e. Depreciation charged on a plant.
f. The expenditure incurred in erecting a platform on which a machine will be fixed.
g. Advertising expenditure, the benefits of which will last for four years.
OR
The following are the balances extracted from the books of Raghunath Ji as on 31st March, 2019. From these
balances, prepare his Trading and Profit & Loss Account and Balance Sheet as at that date:

Dr. (₹) Cr. (₹)

Opening Stock 12,000

Purchases 40,000

Sales 86,000

Discount 400

Sales Return 6,000

Buildings 50,000

Debtors 16,000

Salaries 2,400

Office Expenses 1,200

Wages 10,000

Purchase Return 4,000

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 Interest 800

Travelling Expenses 400

Fire Insurance Premium 800

Machinery 20,000

Carriage on Purchases 700

Commission 400

Cash in hand 2,300

Rent and Taxes 1,800

Capital 62,000

Creditors 10,800

1,64,000 1,64,000

Adjustments
i. Closing Stock was valued at ₹16,000.
ii. Wages ₹2,000 and salaries ₹1,200 are outstanding.
iii. Rent for two months at the rate of ₹500 per month is outstanding.
iv. Depreciate Buildings by 5% and machinery by 10%.
v. Prepaid Insurance ₹200.
34. From the following Trial Balance extracted from the books of Mr. Karuna Sagar, prepare a Trading and Profit & [6]
Loss A/c for the year ended 31st March, 2019 and a Balance Sheet as at that date:

Dr Balances Amount ₹ Cr. Balance Amount ₹

Purchases 3,30,000 Sales 5,30,000

Rent Paid 7,480 Returns 8,000

Wages 33,000 Trade Creditors 37,000

Salaries 30,800 Discount 3,000

Power 5,400 Capital 2,00,000

Stock on 1-4-2018 15,000 Miscellaneous Income 3,060

Stock on 31-3 -2019 36,000

Charity 500

Debtors 53,000

Furniture 8,000

Motor Car 2,00,000

Motor Car Expenses 18,000

Insurance 3,600

Unexpired Insurance 600

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Drawings 5,000

Cash Balance 34,680

7,81,060 7,81,060

Information:
i. Goods costing ₹2,000 were taken away by the proprietor for his personal use and goods costing ₹1,500 were
given away as charity.
ii. Expenses for wages, rent and salaries are uniform throughout the year and those for March have not been
paid.
iii. Provide 10% depreciation on Furniture and 20% on Motor Car.
iv. Provide for Manager’s Commission at 10% on Net Profit after charging such commission.
OR
The following is the trial balance of Ram Kishan on 31st December, 2013.

Name of Account Debit Balance(Rs) Credit Balance(Rs)

Cash in hand 1,080

Cash at bank 5,260

Purchases 81,350

Return Outwards 1,000

Sales 1,97,560

Return Inwards 1,360

Wages 20,960

Fuel and Power 9,460

Carriage on sales 6,400

Carriage on purchases 4,080

Stock(1st January, 2013) 11,520

Building 60,000

Freehold land 20,000

Machinery 40,000

Salaries 30,000

Patents 15,000

General Expenses 6,000

Insurance 1,200

Capital 1,42,000

Drawings 10,490

Sundry debtors 29,000

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Sundry Creditors 12,600

3,53,160 3,53,160

Taking into account the following adjustments, pass the necessary journal entries and prepare the trading and profit
and loss account and the balance sheet
i. Stock in hand on 31st December, 2013 is Rs 13,600.
ii. Machinery is to be depreciated @ 10% and patents @ 20%.
iii. Salaries for the month of December, 2013 amounted to Rs 3,000 were unpaid.
iv. Insurance included a premium of Rs 170 for next year.
v. Wages include a sum of Rs 4,000 spend on the erection of a cycle shed for employees and customers.
vi. A provision for doubtful debts is to be created to the extent of 5% on Sunday debtors.

Best Wishes

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