KINGSWOOD WORLD SCHOOL

UNIT TEST 1
GRADE-11
SUBJECT – ACCOUNTANCY
DATE – 09-10-24
TIME: 3 hr MM: 80

« This question paper contains two parts A and B.

« All question in both the parts are compulsory.
• All parts of questions should be attempted at one place.
• Marks for questions are indicated against each question.
• Answers should be brief and to the point.

Part A
OBJECTIVE TYPE QUESTIONS (1 Mark)
1. Current Liabilities include:
(A) Bills Payable (B) Creditors
(C) Outstanding Expenses (D) All of the above
2. Trade Discount is:
(A) Which is allowed at the time of receiving the payment
(B) Which is allowed at the time of sale of goods
(C) Which is allowed both at the time of receiving the payment and sale of goods
(D) Allowed in all of the above
3. Concept of Consistency means:
(a) All the firms in the same industry should is identical accounting principles and
procedures.
(b) All principles and procedures of accounting are utilized
(c) Accounting principles and methods should remain consistent from one year to
another
(d) All of the above.

4. Due to which principle qualitative transactions are not recorded in the books:
(a) Business Entity Principle
(b) Money measurement principle
(c) Historical Cost Principle
(d) Dual Aspect Principle

5. Which of the following equations are correct?

(a) Assets = Capital + Liabilities
(b) Assets = Capital - Liabilities
(c) Assets = Liabilities - Capital
(d) Capital = Assets + Liabilities

6. Credit purchases of furniture will be recorded through which voucher?

(a) Debit Voucher (b) Credit Voucher
(c) Cash Voucher (d) Transfer Voucher

7. Goods worth ₹7,000 given away as charity would be credited to:

(a) Sales A/c (b) Purchases A/c
(c) Charity A/c (d) Trustee A/c
 8. Gopal is our debtor for ₹10,000. He became insolvent and only 60 paise in a ₹ is
received from him. The balance of ₹4,000 would be entered to the:
(a) Debit of Discount A/c (b) Credit of Discount A/c
(c) Debit of Bad-Debts A/c (d) Credit of Bad-Debts A/c

9. Paid to Rahul on behalf of Sanjay ₹12,000 will be debited to

(a) Rahul’s Personal Account (b) Sanjay’s Account
(c) Drawings Account (d) Cash Account

10. Recording is made in purchase book:

(a) After deducting trade discount
(b) After adding trade discount
(c) After deducting cash discount
(d) After adding cash discount
11. Which of the following accounts always shows a debit balance :
(a) Capital Account (b) Sales Account
(c) Purchases Return Account (d) None of the above
12. Proprietor of the business withdrew goods from business for private use, It will be posted
to the:
(a) Credit of Drawings A/c (b) Debit of Purchases A/c
(c) Credit of Purchases A/c (d) None of the above

13. Total assets in a business are ₹8,00,000 and total liabilities are ₹5,00,000. The
difference is called:
(a) Income (b) Expenses
(c) Capital (d) Goodwill

14. Which item shows a debit balance in the Trial balance?

(a) Purchase Return
(b) Salary Outstanding
(c) Sales
(d) Prepaid Expense

15. Depreciation is provided on:

(a) Current Assets (b) Intangible Assets
(c) Fixed Assets (d) Fictitious Assets

16. Depreciation is calucalted from the date of …………………

(a) Purchase of assets (b) Receipt of asset at business premises
(c) Assets put to use (d) Assets installed
17. If the amount of any known liability cannot be determined accurately.
(a) Provision should be created
(b) Definite liability should be created
(c) Reserve should be created
(d) Should be shown as a contingent liability

18. Which of the following statements is not appropriate in relation to “Provision”?

(a) Provision is a charge against profit
(b) Provision is created for known liability
(c) Provision is created for strengthening the financial position of the business.
(d) Creation of provision satisfies the principle of Conservatism.
19. The Profit and Loss Account shows:
(A) Financial Position of the Concern
 (B) Gross Profit
(C) Net Profit
(D) Net Profit and Financial Position
20. Final Accounts are prepared:
(A) At the end of calendar year
(B) At the end of Assessment year
(C) On every Diwali
(D) At the end of Accounting year

Part B
DESCRIPTIVE TYPE QUESTIONS
21.Create an Accounting Equation on the basis of the following transactions and show the
resulting Balance Sheet: 6
Rs.
1. Manu started business with cash. 5,00,000
2. Purchased a building from Sohan. Paid by raising a loan from SBI. 10,00,000
3. Paid interest on loan Rs.20,000 and instalment of Rs.2,00,000.
4. Purchased goods from Sohan on credit. 1,00,000
5. Goods returned to Sohan costing. 20,000
6. Sold goods costing Rs.40,000 for Rs.50,000 on credit to Ram.
7. Took goods of Rs.10,000 from business for personal use.
8. Accrued interest. 5,000
9. Commission received in advance. 20,000
10. Cash received from Ram. 10,000

22. From the following information, draw up a trial balance in the books of Shri Manmohan as on
31st March, 2019 : 6
Capital Rs. 1,12,000; purchases Rs. 28,800; discount allowed Rs. 960; carriage inwards Rs.
6,960; carriage outwards Rs. 1,840; sales Rs. 48,000; return inwards Rs. 240; return outwards
Rs. 560; rent and taxes Rs. 960; plant and machinery Rs. 64,560; stock on 1st April, 2018 Rs.
12,400; sundry debtors Rs. 16,160; sundry creditors Rs. 9,600; investments Rs. 2,880;
commission received Rs. 1,440; cash in hand Rs. 80; cash at bank Rs. 8,080; motor cycleRs.
27,680 and stock on 31st March, 2019 (not adjusted) Rs. 16,400.

23. Journalise the following transactions in the books of Rajeev. 6

(i) Goods purchased from Ramesh Rs. 1,60,000; plus CGST 6% and SGST 6%.
(ii) Ramdas, who owed Rs. 20,000 was declared insolvent. A final compensation of 60 paisa in
a rupee received from him.
(iii) Sold goods of Rs. 1,00,000 to Sita; plus CGST 6% and SGST 6%.
(iv) Provide interest on capital of Rs. 10,00,000 @ 10% p.a. for 6 months.
(v) Salary of Rs. 10,000 due but not paid.
(vi) Cash received Rs. 29,800 from Sanjeev, in full settlement of his account Rs. 30,000.

24. Shakti Cements purchased on 1st January, 2004 a plant for Rs.80,000. On 1st April, 2005 it
purchased additional plant costing Rs.48,000. On 1st September, 2006 the plant purchased on
1st January, 2004 was sold for Rs.42,000 and on the same date a fresh plant was purchased
for Rs.75,000. Depreciation is provided at 10% p.a. on the Diminishing Balance Method.
Accounts are closed on 31st December each year. Show the Plant Account for 3 years
25. Write a Two column Cash Book with cash and bank columns from the following
transactions: 6
2013
March
1. Cash in Hand Rs.15,000.
3. Purchased goods for cash Rs.6,000.
5. Deposited in bank Rs.5,000.
8. Cash sales Rs.10,000.
10. Cash withdrew from bank for office use Rs.2,000.
12. Received cash from Damini Rs.3,000, allowed her discount of Rs.100.
15. Received cheque from Dolly Rs.2,000 and deposited in the bank on the same day,
19. Cheque received from Deepak deposited in the bank.
24. Paid to Chander by cheque Rs.2,500, he allowed discount Rs.125.
27. Withdrew from bank for personal use Rs.1,500.
28. Sold goods on credit to Ashok Mitra Rs.4,000.
30. Purchased goods on credit from Chander Rs.5,000.
31. Received cheque from Ashok Mitra Rs.2,000 and deposited in the bank.
31. Bank charges for the month Rs.100.

26. Give at least four difference between provision and reserve. 4

27. Explain the meaning of any three of the following terms: 4

(i) Liability; (ii) Stock; (iii) Business Transaction and (iv) Drawings.

28. Verma Bros. carry on business as wholesale cloth dealers. From the following, write up their
Purchases Book for April, 2013: 4
April 3 Purchased on credit from M/s. Birla Mills:
100 pieces long cloth @ Rs.80 each
50 pieces shirting @ Rs.100 each
April 8 Purchased for cash from M/s. Ambika Mills:
50 pieces muslin @ Rs.120 each
April 15 Purchased on credit from M/s. Arvind Mills:
20 pieces coating @ Rs.1000 each
10 pieces shirting @ Rs.90 each
April 20 Purchased on credit from M/s. Bharat Typewriters Ltd.:
5 typewriters @ Rs.1,400 each

29. From the following information, prepare Trading Account for the year ended 31st March,
2014: 4
Rs.
Stock (As on 1.4.2013) 50,000
Purchases 4,50,000
Sales 2,80,000
Carriage Inwards 10,000
Returns Outward 70,000
Wages and Salaries 50,000
Returns Inward 30,000
Stock (31.3.2014) 1,70,000
30. A, who keeps his books on Single Entry System, tells you that his capital on 31st March,
2013 is Rs.2,87,000 and his capital on 1st April, 2012 was Rs.1,80,000. He further informs you
that during the year, he withdrew for his household purposes Rs.74,200. He once sold his
investment of Rs.30,000 at 5% premium and brought that money into the business. You are
required to prepare a Statement of Profit or Loss. 4

31. Distinguish between Cash Basis and Accrual Basis of Accounting. (Three Points). 3

32. Explain Historical Cost Concept and Consistency concept. 3

33. Record the following transactions in a Journal:

(a) Purchased goods from Vijay of Rs.40,000 on 10% Trade Discount and 5% Cash Discount.
Half of the amount was paid at the time of purchase.
(b) Sold goods to James for Rs.10,000, allowing him a trade discount of 5% and a cash
discount of 10%. He paid 1/4th of the amount in cash at the time of purchase.

34. Kumaran, a trader, does not keep proper books of account. However, he furnishes you the
following particulars:
31st March, 2012 31st March, 2013
(Rs.) (Rs.)
Cash at Bank 4,500 3,000
Cash in Hand 300 4,000
Stock-in-Trade 40,000 45,000
Debtors 12,000 20,000
Office Equipment 5,000 5,000
Sundry Creditors 30,000 20,000
Furniture 4,000 4,000

During the year Kumaran introduced Rs.6,000 as further capital and withdrew Rs.4,000 as
drawings.
Prepare a statement showing the Profit or Loss made by him for the year ended 31st March,
2013. 2