Mock Test

CLASS XI

Subject – Accountancy

Time allowed : 3 Hrs

Maximum marks : 80

Section A ( 1 × 20 = 20)

1. Which of the following is considered a limitation of accounting?

(i) Only monetary transactions are recorded

(ii) Assists in maintaining complete records

(iii) Serves as evidence in legal proceedings

(iv) Helps in interpretation of transactions

(a) Only (i)

(b) Only (i) and (ii)

(c) Only (ii) and (iv)

(d) None of the above

2. Which accounting Principle states the point of time of sale?

(a) Prudence
(b) Consistency
(c) Revenue recognition
(d) Materiality

3. Non-current assets do not include:

(a) Furniture
(b) Machinery
(c) Goodwill
(d) Bank Balance

4. Which of the following indicates that ‘an increase in one asset may lead to decrease in the other
asset’?
a. Purchase of office premises on credit
b. Sales of goods for cash
c. Payment of office expenses
d. Payment made to creditors in cash
5. If goods costing ₹ 1800 are sold on credit for rupees ₹ 2000 then there will be
a. increase in capital by 200
b. decrease in capital by 200
c. increase in capital by 1800
d. decrease in capital by 2000
6. ‘Bank Overdraft Account’ is:
(a) Personal account
(b) Real account
(c) Nominal account
(d) None of the above
7. Decrease in which of the following accounts will be debited?
(a) Creditors’ A/c
(b) Debtors’ A/c
(c) Goodwill A/c
(d) Cash A/c
8. Which of the following source documents serve as the evidence of credit sale or purchase in an
organization these
a. cash memo
b. Invoice or bill
c. pay in slip
d. none of these
9. Mr. Naveen Shukla is operating his business in the state of Uttar Pradesh. He provides his legal and
consulting services to a client in the same state. In his books, GST charged by Mr. Shukla will be
shown as:
a. Output IGST
b. Input IGST
c. Both Output CGST and Output SGST
d. Output CGST only
10. Input IGST shall first be adjusted against:
a. Output CGST
b. Output SGST
c. Both a and b
d. Output IGST
11. Recovery of bad debts preciously written off is:
i. Credited to debtor’s account
ii. Adjusted against provision for Doubtful debts
iii. Debited to debtor’s account
iv. Credited to Profit and Loss a/c
a. Only i
b. Only iv
c. Both i and iv
d. All i,ii and iii
12. Raman paid cash to Aman and discount was received from Aman. What will be shown in the books
of Raman?
 (a) Dr. Aman, Cr. Cash A/c and Discount Received A/c
(b) Dr. Raman, Cr. Cash A/c and Discount Received A/c
(c) Dr. Aman, Cr. Cash A/c and Discount Allowed A/c
(d) Dr. Cash A/c, Cr. Aman A/c and Discount Received A/c

13. ‘Sales were made for ₹ 15,000 and payment was received by cheque.’ The transaction will Be
recorded in cash book on:
a. Credit side of cash column
b. Credit side of Bank column
c. Debit side of cash column
d. Debit side of Bank column
14. On 1st June, 2020, Ruhaan started business with cash ₹ 5,00,000. It will be shown on the debit side
of:
a. Capital a/c
b. Ruhaan’s a/c
c. Cash a/c
d. None of these
15. Purchased goods from Vivek amounting to 30,000 at 10% trade discount. Posting will be made in
Vivek’s A/c on:
a. Debit side ₹30,000
b. Credit side ₹30,000
c. Debit side ₹27,000
d. Credit side ₹27,000
16. If we take balance as per pass book, which of the following will be deducted to get balance as per
cash book:
a. Interest given by bank
b. Interest charged by bank
c. Cheque deposited but not collected
d. Payment made by bank under standing instructions
17. If a transaction is totally omitted from recording in the books of accounts it is called:
a. Error of commission
b. Error of principle
c. Error of recording
d. Error of omission
18. Prepaid expenses, if given in adjustments are shown:
a. in Trading and Profit and Loss Account expenditure as deduction from the related expenditure
b. in Balance Sheet as a liability
c. in Trading and Profit and Loss Account as deduction from related expenditure and in the
Balance Sheet as an asset
d. None of these
19. Goods distributed as free samples are debited to:
a. Staff Welfare Expenses
b. Advertisement Expenses
c. General Expenses
 d. None of these
20. Voucher that records a transaction that entails multiple debits or credits and one credit or debit is
called a _________Voucher.
a. Debit voucher
b. Credit voucher
c. Cash voucher
d. Compound voucher

Section B ( 3 × 6 = 18)

21. Calculate closing stock from the following

Opening stock = 20000
Cash sales = 60000
Credit sales = 40000
Purchase = 70000
GP = 33.33 % on Cost.
22. Valli Traders is engaged in the business of making and selling leather bags. The staff of the firm is
very efficient and hard-working. The firm receives an order of supplying goods worth 2,00,000 after
a period of two months.
The firm held a stock of Rs20,00,000. During the year, it sold 85% of such goods. The market
price of remaining goods was ₹3,50,000. At the year end, company valued the stock at cost.
(i) Under which principle, efficiency and hard-work of the staff are not recorded in the books of
accounts? Explain
(ii) Which principle of accounting has been followed by Valli Traders in valuation of closing
stock? Explain

23. Prepare the accounting equation on the basis of the following:

(i) Started business with cash 1,40,000 and stock ₹2,50,000.
(ii) Sold goods (costing 50,000) at a profit of 25% on cost for cash.
(iii) Deposited into bank account 1,80,000.
(iv) Purchased goods from Mohan 80,000.

24. Rectify the following errors assuming that a suspense account was opened. Ascertain the difference
in trial balance.
(i) Credit sales to Mohan Rs 7,000 were posted to the credit of his account.
(ii) Credit purchases from Rohan Rs9,000 were posted to the debit of his account of Rs6,000.
(iii) Goods returned to Rakesh Rs 4,000 were posted to the credit of his account.
(iv) Goods returned from Mahesh Rs 1,000 were posted to the debit of his account of 2,000.
(v) Cash sales Rs2,000 were posted to the debit of sales account of Rs5,000.

25. Explain the Following Accounting Terms (Any 3):-

i) Intangible assets
ii) Capital expenditure
iii) Revenue expenditure
iv) Trade receivables
26. Extracts of Trial balance is given

Particulars Dr. Cr.

Debtors (including M for Rs 60000
1000)
Bad debts 3000
Adjustments-
1) M’s amount was irrecoverable
2) Create a provision of 5% on debtors
Prepare extract
1) Balance sheet
2) Profit and Loss a/c

Section C ( 4 × 3 = 12)

27. You are provided with the following information related to X.Ltd. as at 1st April, 2020.
After charging depreciation, the firm has the following balances:
MachineA - 32,400
Machine B - 22,200
On 1st Dec., 2020, the firm sold the manufacturing machine which has become obsolete for
₹21,000. On the same date, a new Machine C was purchased for Rs37,500.
Depreciation is charged at 10% p.a. on the diminishing Balance Method every year. Accounts are
closed on 31st March, every year.
i) What will be the loss on sale of Machine A on 1st Dec, 2020?
ii) Calculate the balance of Machine B on 1st April, 2021?
iii) What will be the balance of Machine C on 1st April, 2021?
iv) Note: Show your workings clearly
28. I) Calculategross profit when
Total purchases during the year = 4,00,000
Returns Outwards = 10,000
Direct Expenses = 30,000
2/3 of the goods are sold for = 3,05,000

II) From the following information, prepare a Trading Account for the year ended 31st March,
2018:
Cost of Goods sold = Rs 2,00,0000
Sales = Rs 2,50,000
Wages = Rs 6,250
Closing Stock= Rs15,000

29. Enter the following transactions in two-column Cash Book with Cash and Bank Columns:
 2018

Oct. 1 Cash Balance = 1,000

Bank Balance = 5,000
Oct. 5 Deposited into the Bank = 1,000
Oct. 8 Wages paid by cheque = 250
Oct. 10 Withdrawn from Bank for office use= 400
Oct. 12 Drawings made by proprietor = 100
Oct. 14 Received cheque from Pawan for 700 and deposited it in Bank
Oct. 20 Pawan’schequedishonoured
Oct. 30 Deposited into Bank, balance of cash in excess of 250

Section D ( 6× 5 = 30)

30. Give Journal entries:

(i) Opening balances are: Cash in hand 44,000; Bank balance(Canara Bank) 9,000; Stock 17,375;
Furniture 7,600; Machinery 92,000; Debtors 15,000; Creditors ₹40,000; Bank’s Loan 70,000.
(ii) Paid cartage on behalf of customer in cash₹400.
(iii) Deposited in the Canara Bank 2,000.
(iv) Purchased goods from creditor 3,600 and sold half of them for cash at a profit of 20% on
cost. Returned damaged goods worth 1,200 to the supplier.
(v) Bought goods for ₹17,000 was subject to 10% trade discount.
(vi) Old newspapers sold for ₹400.
(vii) Cash received from debtors ₹8,000.
(viii) During the year salary worth Rs 20000 was outstanding

31. On the basis of information provided in Q30.

Prepare Ledger accounts.

32. On 1st October, 2015, Texla Pvt. Ltd. Purchased a machinery for 6,00,000. On 31 st May, 2017, a part
of the machinery purchased on 1st October, 2015 for 80,000 was sold for 30,000. On the same date,
a fresh machinery was purchased for 1,50,000. Depreciation is provided at 20% per annum on the
written down value method and the books are closed on 31st March each year. You are required to
prepare
(a) Machinery Account
(b) Provision for Depreciation Account and
(c) Machinery Disposal Account.

33. Prepare Bank reconciliation Statement in following cases:-

A) (i) Bank overdraft as per Cash Book on 31st December, 2018
was ₹21,000.
 (ii) Cheques of 2,400 issued before 31st December, 2018 but
presented for payment after that date.
(iii) Cheques paid into bank but not collected until 31st
December, 2018 amounting to 5,200.
(iv) Interest on overdraft amounting to 1,000 did not appear in
the Cash Book.
(v) 6,000 being interest on investments collected by the bank
and credited in the Pass bil Book were not recorded in the Cash
Book.
(vi) ₹800 in respect of dishonoured Bill Receivable were entered
in the Pass Book but not in the Cash Book.

B) (i) Balance as per Pass Book = Rs 20,120

(ii) Cheque deposited in bank on 25th August, but credited on 2nd
September, 2018= 3,600
(iii) Cheques issued but not yet presented = 3,000
(iv) Pass Book shows a credit for interest = 320
(v) Pass Book also shows a debit for bank charges = 160
(vi) Amount directly deposited by a customer 1,360

34. From The following trial balance of Ms. Arman and sons as at 21st March 2020 prepareTrading and
profit and loss account and balance sheet:-

Adjustments:
(i) Closing Stock 32,000.

(ii) Wages outstanding ₹1,200.

(iii) Bad debts 300 and provision for bad and doubtful debts to be 5% on debtors.contro

(iv) Rent is paid for 11 months.

(v) Loan from the bank was taken on 1st October, 2019.

(vi) Provide depreciation on machinery @ 10% p.a.

(vii) Provide Manager's commission at 10% on net profit after charging such commission.