DAYANAND MODEL SR. SEC.

SCHOOL
MID-TERM EXAMINATION 2024-25
CLASS : XI
SUBJECT: ACCOUNTANCY (055)

TIME : 3 HRS M.MARKS : 80

NAME: __________________ ROLL NO. ________ SEC: ____ DATE:_____________

General Instructions:
➢ There are 20 Multiple Choice Questions of 1 mark each (1-20).
➢ There are 6 Short Questions of 3 marks each (21-26).
➢ There are 3 Short Questions of 4 marks each (27-29).

➢ There are 5 Long Questions of 6 marks each (30-34).

Q1 Which of the following best defines accounting?

a) The art of recording and analysing all financial transactions of a business
b) The process of preparing tax returns
c) The method of managing a company's day-to-day cash flow
d) The practice of verifying a business's financial records

Q2 Which of the following does not appear on the balance sheet?

a) Debtors b) Creditors c) Purchases d) Capital

Q3 A business pays ₹5,000 as rent for the office. This transaction will:
a) Increase liabilities
b) Decrease liabilities
c) Increase expenses
d) Increase assets

Q4 Which of the following terms refers to the residual interest in the assets of the entity

after deducting liabilities?

a) Capital
b) Revenue
c) Expense
d) Liability

Q5 If a firm purchases raw materials on credit, this will:

a) Increase both assets and liabilities
b) Decrease both assets and liabilities
c) Increase assets and decrease liabilities
 d) Decrease assets and increase liabilities

Q6 The principle of 'Materiality' implies that:

a) All transactions should be recorded regardless of their amount
b) Only significant transactions that affect decision-making should be recorded
c) All expenses must be recorded in the period they are incurred
d) Financial statements must reflect the true financial position of the business

Q7 Under the Cash Basis of Accounting, revenue is recorded when:

a) An invoice is sent
b) A service is provided
c) Cash is received
d) Goods are delivered

Q8 If liabilities increase by ₹7,000 and assets increase by ₹10,000, the capital will:
a) Increase by ₹3,000
b) Decrease by ₹3,000
c) Increase by ₹7,000
d) Increase by ₹10,000

Q9 Which of the following transactions will result in no change in the accounting

equation?
a) Purchase of an asset on credit
b) Payment of a liability
c) Receipt of cash from debtors
d) Withdrawal of cash by the owner for personal use

Q10 Which branch of accounting is focused on providing information for internal

decision-making?
a) Financial Accounting
b) Cost Accounting
c) Management Accounting
d) Auditing

Q11 Vouchers are prepared at which stage of accounting?

a) After ledger posting
b) After trial balance
c) Before journal entries
d) Before final accounts

Q12 Which of the following is not a type of voucher?

a) Credit Voucher
b) Debit Voucher
c) Bank Voucher
d) Accounting Voucher

Q13 If there is sale return transaction which voucher shall be issued

a) Credit Voucher
 b) Debit Voucher
c) Bank Voucher
d) Accounting Voucher

Q14 Assertion (A): Journal is the first book of original entry.

Reason (R): Transactions are recorded in ascending order on the basis of amount.
a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true, but R is false.
d) A is false, but R is true.

Q15 Assertion (A): Compound journal entries involve multiple accounts.

Reason (R): Compound entries are used when a transaction affects two accounts on

the debit side.

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

Q16 Assertion (A): The ledger is known as the principal book of accounts.
Reason (R): The ledger summarizes all the transactions recorded in the journal.
a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true, but R is false.
d) A is false, but R is true.

Q17 The act of making ledger form journal is called

a) Journalizing b) Ledgering c) Posting d) None of the above

Q18 The cash book serves the purpose of both a journal and a:
a) Ledger
b) Trial balance
c) Balance sheet
d) Income statement

Q19 Which of the following is recorded in the cash book?

a) Credit transactions
b) Cash receipts and payments
c) Bank receipts and payments
d) Both b and c

Q20 Trial balance is _______.

a) An account

b) A statement

c) A subsidiary book
 d) A principal book

Q21 Define the following accounting terms

a) Financial statements
b) Amortization
Q22 Fill in the blanks:
a) A firm may hold the stock which is heavily in demand. Consequently, the market

value of this stock may be increased. Normal accounting procedure is to ignore this

because of the ___________.

b) Everything a firm owns; it also owns out to somebody. This coincidence is

explained by the ___________ concept.

c) The fact that the business is separate and distinguishable from its owner is best

exemplified by the ___________ concept.

Q23 Make a T shaped account and post the entries on the proper side.

(i) Machinery purchased 40000

(ii) Machinery sold 10000

(iii) Machinery discarded 8000

(iv) Depreciation charged 1000

Q24 Following accounts are maintained in the books of Ajay. Classify them as per the

traditional approach of accounting

a) Goodwill
b) Mohan (a debtor)
c) Prepaid Salary
d) Drawings
e) Bank overdraft
f) Excise duty

Q25 Prepare a trail balance form the information given below and check the arithmetical
accuracy of the books of accounts.
Head of accounts Amt Head of accounts Amt
Provision for Dep 5000 Return inwards 2000
Return outwards 1500 Carriage inwards 1000
Carriage outwards 500 Bank overdraft 600

Q26 State the meaning of the following:

a) Pay in Slip
b) Source voucher
 c) Accounting voucher

Q27 Pass the following journal entries:

rd
a) Paid salary 15000 out of which 1/3 is relating to the ne
b) Received 6000 earlier written off as bad debt from Ashish
c) Interest on capital charged in the books of accounts for 3 months on a capital of
100000 @ 10% p.a.
d) Goods given as charity 15000

Q28 ABC Enterprises follows the Accrual Basis of Accounting. The following
information is available for the year ending March 31, 2024:
• Revenue earned (but not received): ₹1,20,000

• Cash received for services rendered: ₹80,000

• Expenses incurred (but not paid): ₹40,000

• Cash paid for expenses: ₹50,000

Required:

(i) Calculate the net income for the year using the Accrual Basis of Accounting.

(ii) Calculate the net income for the year using the Cash Basis of Accounting

Q29 X Ltd. has provided the following information for the year ended March 31, 2024:
• Capital
at the beginning of the year: ₹8,00,000

• Total liabilities at the beginning of the year: ₹3,50,000

• Additional capital introduced during the year: ₹2,00,000

• Drawings made during the year: ₹1,50,000

• Net profit earned during the year: ₹4,00,000

• Total liabilities at the end of the year: ₹4,00,000

Using the accounting equation, calculate the total assets of XYZ Ltd. at the end of the

year.

Q30 Pass the following journal entries:

a) Purchased machinery 15000 and paid 10% for its installation in the form of wages
b) Sold goods costing 20000 to Manoj @ 20% profit on sale less 10% trade discount
c) Received a cheque from Vijay for 3850 on account of 4000 due from him in full

settlement the cheque was deposited on a later date in bank.

d) Purchased stationary for office use 5000 and for personal use 3000, paid in cash
e) Wages of 2000 are discovered as still outstanding
f) Goods amounted to 1500 used to make office furniture
 Q31 Prepare Machinery and Cash account from the following transactions
a) Machinery purchased of 20000
b) Money withdrawn from Bank 50000
c) Machinery depreciated @ 10%
d) Paid salary 1500
e) Rent received 10000
f) Sold machinery for 16000

Q32 Prepare a double column cash book from the following data and make journal
proper if required

1st April Bank overdraft 15000

Cash in hand 10000

4th April Sales to Ajay 25000

6th April Mohan paid rent directly in bank 25000

7th April Bad debt recovered from Vimal 10000

10th April Received cheque from Ajay in full settlement 23500

11th April Deposited Ajay’s cheque in bank

12th April Ajay’s cheque dishonoured but he paid the amount in cash

Q33 Prepare accounting equation form the following data and prepare a balance sheet
i) Started business with cash 50000 machinery 60000 and goods 40000
th
ii) Sold 1/10 of the above goods to Vijay at 331/3% on sale and received half the

`amount in cash
iii) Salaries paid 5000 out of which 20% are relating to next year
iv) Security deposit received from tenant 12000
v) Depreciation charged on machinery for 6 months @15% p.a
vi) Commission received in advance 5000

Q34 State the any three advantages of accounting and also explain the terms accounting,
accountancy and cost accounting