Bharath Dass Mat. Hr. Sec.

School

Chennai – 600 096

TERM II TEST – 2020 - 2021

XI STANDARD

ACCOUNTANCY

Time Allowed: 2.30 Hours Maximum marks: 90

SECTION – I [20 X 1 = 20]

Note: (a) Answer all the questions

(b) Choose the most suitable answer from the given four alternatives and
write the option code and the corresponding answer

1. Which one of the following is not a branch of accounting?

(a) Financial accounting

(b) Management accounting
(c) Human resources accounting
(d) None of the above

2. Pick the odd one out from the following.

(a) Accountancy
(b) Accounting
(c) Book keeping
(d) Discount

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. In India, Accounting Standards are issued by

(a) Reserve Bank of India

(b) The Cost and Management Accountants of India
(c) Supreme Court of India
(d) The Institute of Chartered Accountants of India
5. Consider the following statement
Assertion (A): Book keeping provides a permanent and reliable record for all business transactions.
Reason (R): Transactions are recorded systematically in chronological order in the books of account .

Select the correct answer:

(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

6. Withdrawal of cash from business by the proprietor should be credited to

(a) Drawings A/c

(b) Cash A/c
(c) Capital A/c
(d) Purchases A/c

7. Main objective of preparing ledger account is to

(a) Ascertain the financial position

(b) Ascertain the profit or loss
(c) Ascertain the profit or loss and the financial position
(d) Know the balance of each ledger account

8. 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

9. The trial balance contains the balances of

(a) Only personal accounts

(b) Only real accounts
(c) Only nominal accounts
(d) All accounts

10. Point out the wrong statement in the following statement:

(a) Sales book is meant for recording sales of goods on credit

(b) Purchase book is meant for recording purchases of goods on credit
(c) Petty cash book is meant for recording small expenses
(d) Pass book is meant for recording all expenses
 11.
11. Match List I with List II and select the correct answer using the codes given below:

List I List II
(i) Internal user of accounting information 1. Human Resource
Accounting
(ii) External user of accounting information 2. Tax manager
(iii) Role of an accountant 3. Researchers
(iv) Branches of accounting 4. Employees

Codes:
(i) (ii) (iii) (iv)
(a) 1 2 3 4
(b) 3 4 1 2
(c) 4 3 2 1
(d) 2 3 1 4

12. Which one of the following is not correctly matched

(a) Journal - Ledger Folio

(b) Ledger - Journal Folio
(c) Purchase book - Invoice number
(d) Sales returns book - Debit note number

13. 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

14. The balance in the petty cash book is

(a) An expense
(b) A profit
(c) An asset
(d) A liability

15. A bank statement is a copy of

(a) Cash column of the cash book

(b) Bank column of the cash book
(c) A customer’s account in the bank’s book
(d) Cheques issued by the business
16. Balance as per cash book is Rs. 2, 000. Bank charge of Rs. 50 debited by the bank is
not yet shown in the cash book. What is the bank statement balance now?

(a) Rs. 1,950 credit balance

(b) Rs. 1,950 debit balance
(c) Rs. 2,050 debit balance
(d) Rs. 2,050 credit balance

17. A company pay off all its creditors. The effect of this in accounting equation is a/an

(a) increase in asset and decrease in liability

(b) increase in liability and decrease in asset
(c) decrease in asset and decrease in liability
(d) decrease in asset and increase in liability

18. State the order in which accounting system is followed

(i) Final account

(ii) Ledger
(iii) Trial balance
(iv) Journal

Choose the correct order using the codes given below:

(a) (i) (ii) (iii) (iv)

(b) (iv) (iii) (ii) (i)
(c) (iv) (ii) (iii) (i)
(d) (iii) (iv) (i) (ii)

19.
19. Which of the following is correct?
(a) Assets = Liabilities – Capital
(b) Assets = Capital – Liabilities
(c) Assets = Liabilities + Capital
(d) Assets = External equities

20. Which of the following is a cash transaction?

(a) Sold goods
(b) Sold goods to Ram
(c) Sold goods to Ram on credit
(d) Sold goods to Ram on account
SECTION – II [7 X 2 = 14]

Note: (a) Answer any seven questions in which question No. 30 is compulsory.
(b) Answer to theory questions should not exceed 50 words

21. In the earliest days of civilization, accounting was done by stewards who managed the
properties of wealthy people. They rendered accounts periodically to the owners of
property. State any two functions of accounting.

22. Book-keeping forms the base for the preparation of financial statements and interpretation
which are the important functions of accounting. Define book-keeping.

23. The accounts relating to expenses, losses, revenues and gains are called nominal accounts.
What is accounting rule for nominal accounts?

24. Ledger account is a summary of statement of all transactions relating to a person, asset,
liability expense or income. From the transactions recorded in the journal, ledger is
prepared. What is meant by posting?

25. If trial balance is not prepared in a systematic way, the final accounts prepared on the basis
of trial balance may not depict the actual state of affairs of the concern. What is trial
balance?

26. To increase sales, a seller sells goods on credit to his customers. If sale is made on credit, a
bill of exchange may be received. Define bill of exchange.

27. What are the differences between cash discount and trade discount on
the following two basis:
(i) Time of allowance
(ii) Deduction from invoice value

28. Substitute the following statements with one word/phrase

(a) A copy of customer’s account issued by the bank
(b) Debit balance as per bank statement

29. State whether the balance of the following accounts should be placed in the debit or the
Credit column of the trial balance:
(i) Carriage outwards
(ii) Purchases
(iii) Interest received
(iv) Drawings
 Complete the sales book of Mr. Kumar from the following details.

Date Particular Invoic L.F. Amount

s e Details Rs. Total Rs.
No.
2018
July 5 Sarvana Traders, Sayalkudi
10 packs of A4 Sheets @ Rs. 250 per pack 2,500
10 dozens writing pads @ Rs. 850 per --------
dozen
Less: 10% Trade discount
11,000 9,900

July 20 Mohan & Co., Mudukulathur

5 white boards @ Rs. 2,200 each --------
10 dozens writing pads @ Rs. 850 per -------- 19,500
dozen
29,400
Sales A/c Cr.

SECTION – III [7 X 3 = 21]

Note: (a) Answer any seven questions in which question No. 40 is compulsory
(b) Answer to theory questions should not exceed 150 words

31. Read the passage given below and answer the questions that follow:

Accounting is the language of business. The most important function of language is to

facilitate communication. The information about business entities regarding their
operating performance and financial status can be obtained from the financial
information recorded in the accounting records. The information is communicated to the
interested users.

Questions:
(i) Who are the external users of accounting information?
(ii) Who are the internal users of accounting information?
(iii) Why do the users need accounting information?

32. “Only monetary transactions are recorded in accounting”. Explain the statement.

33. Account relating to persons is called as personal account.

(i) What are the different types of personal accounts?

(ii) Give the meaning of such accounts
(iii) Give examples for each account.
34. Journal is the book of prime entry. But ledger is the main book of account. Write any three
other differences between these two.

35. ‘A trial balance is only a prima facie evidence of the arithmetical accuracy of records’. Do
you agree with this statement? Give reasons.

36. Complete the accounting equation

Assets = Capital + Liabilities

(i) Rs.1,00,000 = Rs.80,000 + ?

(ii) Rs.2,00,000 = ? + Rs.
40,000 (iii) ? = Rs.1, 60,000 + Rs.
80,000

37. The following balances appeared in the books of Vinoth on Jan 1, 2018
Assets: Cash Rs. 40,000; Stock Rs. 50,000; Amount due from Ram Rs. 20,000;
Machinery Rs. 40,000
Liabilities: Amount due to Vijay Rs. 10,000

(i) Pass the opening journal entry and

(ii) Post them to Vinoth’s Capital account.

38. Read the passage given below and answer the questions that follow:
Sundar started business for buying and selling of books with Rs. 2,00,000 as an initial
investment of which he paid Rs. 80,000 for purchasing books and Rs. 2,000 for furniture.
He employed a clerk for his office. At the end of the month he paid Rs. 6,000 as salary. Out
of books bought he sold some books for Rs. 90,000 for cash and some other books for Rs.
25,000 to Mr. Ravi.

Questions:
(i) What is the amount of capital with which Sundar started business?
(ii) What is the value of goods he purchased?
(iii) What is the asset he bought?
(iv) Who is the debtor and state the amount due from him?

39. Correct the following entries wherever you think:

(i) Brought capital into

business: Capital A/c
Dr.
To Cash A/c

(ii) Cash Purchases:

Cash A/c Dr.
To Sales A/c

(iii) Salaries due to

clerk: Salaries A/c
Dr.
 To cash A/c

(iv) Commissions
received:
Commission A/c
Dr.
To cash A/c

40. Complete the following journal entries

Date Particular L.F. Debit Rs. Credit Rs.

s
2018
Jan 4 --------------------------- Dr. 60,000
To Padmini and Co. A/c 60,000
(Bills received for the amount due)
5 ------------------------------- Dr. 58,000
Discount A/c Dr. --------
To Bills receivable A/c 60,000
(Bills receivable discounted with the bank)
15 ------------------------------- Dr. --------
To Bank A/c 60,000
(Bill discounted with the bank dishonored)

SECTION – IV [7 X 5 = 35]

Note: (a) Answer all the questions.

41. Prepare accounting equation for the following transactions.

(a) Murugan commenced business with cash Rs. 80,000

(b) Purchased goods for cash Rs. 30,000
(c) Paid salaries by cash Rs. 5,000
(d) Bought goods from Kumar for Rs. 5,000 and deposited the money in CDM.

(OR)

Mary is a rice dealer having business for more than 5 years. Pass journal entries in her books
for
the period of March, 2018.
March Rs.
1 Rice bags bought on credit from Sibi 20,000
2 Electricity charges paid through net banking 500
3 Returned goods bought from Sibi 5,000
5 Advertisement expenses paid 2,000
6 Goods sold to Mano 20,000
7 Goods returned by Mano 5,000
10,000
3,000
 442. Pass journal entries for the following transactions and post them to
ledger.
2018 Aug Rs.
1 Dharma started business with 70,000
cash
6 Cash received from Ganesan 10,000
10 Rent paid 3,000
20 Received commission from 5,000
Anand

(OR)

Enter the following transactions in the books of Ganesan and post them into ledger.
2018 Oct Rs.
1 Started business with cash 25,000
5 Deposited into bank 12,500
10 Purchased furniture and payment by cheque 2,000
15 Goods purchased for cash 5,000
19 Sold goods to Vasu on credit 4,000

43. Prepare the trial balance from the following balances of Rajesh as on 31st March,
2018.
Rs. Rs.
Bills receivable 13,000 Drawings 7,000
Bank charges 750 Sundry 17,100
debtors
Conveyance charges 350 Bills payable 2,000
Discount received 1,300 Capital 25,900
Cash in hand 1,000 Sundry 10,000
creditors

(OR)

Balan who has a car driving school gives you the following ledger balances. Prepare trial
balance as on 31st December, 2016.
Rs. Rs.
Computer 26,000 Freehold land 30,000
Salaries to drivers 4,000 Bank loan 15,000
Taxes and insurance 16,500 Fees received 18,150
Fuel and Power 2,000 Capital 53,850
Rent and rates 1,500 Advertisemen 7,000
t
 44. Enter the following credit transactions in the purchases book of Manoharan, a
Provisions Merchant.

2018 May
2 Bought from Vasu 100 bags of rice @ Rs. 800 per bag
8 Bought from Cheyyar Sugar Mills Ltd., 20 bags of sugar @ Rs.2,600 per
bag 10 Bought from Ram Flour Mill, Coimbatore, 10 bags of wheat flour @ Rs. 750
per bag 15 Bought from Nilgiri Tea Co., Nilgiris, 15 cases of tea @ Rs. 900 per
case 25 Bought from Sairam Coffee Works Ltd., 100 kgs of Coffee @ Rs. 190 per kg.
29 Bought from X & Co. furniture worth Rs. 2,000

(OR)

Enter the following transactions in the purchases and sales books of Kannan, an
automobile dealer, for the month of December, 2017.

2017 Dec Rs.

1 Bought from Sumathi gear boxes on credit 17,800
4 Sold goods to Rani on credit 15,200
6 Purchased goods on credit from Mani 7,000
10 Sold goods on credit to Saranya 12,500
17 Sold goods to Hussain on credit 13,250
21 Purchased goods on credit from Raghunathan 10,000
26 Sold goods to Shyam for cash 3,000

45. Enter the following transactions in a single column cash book of Pandeeswari for
the Month of June, 2018

2018 June Rs.

2 Started business with cash 50,000
8 Paid rent in cash 4,000
10 Purchased printer for cash 7,500
11 Cash purchases 15,000
14 Cash sales 10,000
17 Commission received in cash 6,000
20 Cash withdrawn for personal 3,000
use
21 Paid speed post charges in 3,500
cash
(OR)

Enter the following transaction in Chandran’s cash book with cash and discount column.

2018 Nov Rs.

1 Cash balance 22,000
2 Cash Sales 14,000
3 Credit sales to Govindan 12,000
4 Credit purchases from Balaraman 27,000
5 Cash purchases 8,800
8 Govindan settled his account @ 2% cash discount
12 Paid Balaraman Rs. 26,800 and settle his account
 15 Cash withdrawn for personal expenses 4,000
29 Received from Madhan Rs. 4,800 in settlement
of his account for 5,000
30 Paid salaries in cash 4,000

46. Prepare analytical petty cash book from the following particulars under imprest system:
2018 July Rs.
1 Received advance from cashier 2,000
7 Paid for writing pads and registers 100
8 Purchased white papers 50
10 Paid auto charges 200
15 Paid wages 300
18 Postal charges 100
21 Purchased stationery 450
23 Tea expenses 60
25 Paid for speed post 150
27 Refreshment expenses 250
31 Paid for carriage 150

(OR)

Prepare bank reconciliation statement from the following data and find out the
balance as per cash book as on 31st March, 2018.

Particulars Rs.
(i) Bank balance as per bank statement 15,000
(ii) Cheques issued but not yet presented for payment 2,500
(iii) Interest charged by bank not recorded in the cash book 500
(iv) Bank paid insurance premium as per standing instruction
but not recorded in the cash book 300
(v) Cheques deposited but not yet credited 900

47. Given below are the entries in the bank column of the cash book and the bank statement.
Determine the missing items and rewrite the bank statement.

Cash Book

(Bank column)

Date Particulars Amount Rs. Date Particulars Amount Rs.

2017 2017
Oct. 1To Balance b/d 20,525 Oct. 8 By Kamala A/c 12,000
18 To Ram A/c 6,950 26 By Magesh A/c 9,740
19 To Sales A/c ( Ravi) 450 28 By Mala A/c 11,780
20 To Commission A/c 200 30 By Salaries A/c 720
(Kala) 31 By Balance c/d 1,695
20 To Nirmala A/c 7,810

35,935 35,935
 Bank statement

Date Particulars Dr. Cr. Balanc

Withdrawals Deposits e
Rs. Rs. Dr./Cr.
Rs.
1.10.17 By Balance b/d -------------
9.10.17 ------------------ 12,000 8525 Cr
19.10.17 By Ram ------------- 15475 Cr
25.10.17 By Ravi 450 --------------
26.10.17 ------------------ 9,740 6185 Cr
27.10.17 By Kala 200 --------------
28.10.17 To Rajan (salaries) -------------- 5665 Cr

(OR)

Determine the missing figure of the three column cash book of Udhayakumar

2018 Sep Rs.

1 Cash balance 25,000

1 Bank balance (cr.) 13,070
3 Paid into bank 15,000
4 Received cash from Shyamala & Co., 9,380
Discount allowed to the Rs. 120

10 Goods sold for cash 7,600

11 Cash purchases 11,750
12 Gave Padma a cheque for Rs. 21,375 and was allowed a discount 125
of
18 Purchased a printer by cheque 7,600
23 Received cash from Rajasekar 14,320
Discount allowed to him Rs. 180
 In the books of Udhayakumar

Dr. Three column cash book Cr.

Amount (Rs.) Amount (Rs.)

Discount
Allowed

Discoun

Receive
d
Date Particulars R.N. L.F. Cash Bank Date Particulars V.N. L.F. Cash Bank

t
2018 2018
Sep Sep

1 To Balance b/d 25,000 1 By Balance b/d -------

3 To Cash A/c C ------ 3 By Bank A/c C 15,000

4 To Shyamala & 120 9,380 11 By

Co. A/c Purchase -------
10 ------------- 7,600 12 A/c 125 21,375
By Padma A/c
23 To Rajasekar ---- 14,320 18 By Printer A/c --------
A/c
30 To Balance c/d ------ 30 By Balance -------

c/d

300 56,300 42,04 12 56,300 42,045

5 5