practice paper by dr. vinod kumar

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Practice Paper By Dr. Vinod Kumar For Final Examination March 2021

ACCOUNTANCY Class – XI

Time allowed: 3 hours Maximum Marks: 80

General Instructions: 1. This question paper contains Two parts A & B. 2. Both the parts are compulsory for all. 3. All parts of questions should be attempted at one place. 4. Marks are given at the end of each question.

Part – A (Financial Accounting –I)

1. A well-known business firm of Mr. Henry Lawrence appointed Shri Vinod Kumar as an

accountant of the firm. At the end of the accounting year Vinod has prepared all the accounts

and financial statement of the firm. Name any two internal users to whom Vinod will submit the

accounting information.

[1]

2. Which is the last step of accounting as a process of information?

(a) Recording the transaction (b) Preparation of financial statements

(c) Communication of information (d) Analysis and Interpretation of information

[1]

3. Source Document is an evidence of a transaction or an event. Recording of a transaction is based

on source documents. Give any two names of such source documents.

[1]

4. Vinod & Sons running a manufacturing firm, in which value of total assets is Rs.18,00,000 and

External Liabilities of the firm are Rs.7,00,000. Find out the capital of the firm.

[1]

5. Current Assets refers to the cash and other assets that are expected to be converted to cash within

a year. Name any two current assets other than Cash & Bank.

[1]

6. According to _____________ Principle “Do not anticipate a profit, but provide for all possible

losses” (fill in the blank).

(a) Historical Cost Principle (b) Conservatism Principle

(c) Materiality Principle (d) Matching Principle

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7. Vinod has withdrawn Rs.40,000 for his personal out of his capital. The correct entry for this

transaction will be:

(a) Drawings A/c Dr. To Cash A/c

(b) Drawings A/c Dr. To Capital A/c

(c) Capital A/c Dr. To Cash A/c

(d) Capital A/c Dr. To Drawings A/c

[1]

8. Wages paid for the construction of office building for the year ended on 31st March, 2020 are

Rs.5,000. Give necessary journal entry to record this transaction.

[1]

9. The total of Sales Book is posted to:

(a) Customer’s Account (b) Sales Account

(c) Purchase Account (d) Bank Account

[1]

10. Complete the following statement:

‘Bank Reconciliation Statement is prepared by ______________’.

[1]

11. A machinery which was purchased on 1st April 2017 for Rs.2,00,000 is depreciated at 25% per

year using the Written Down Value Method. At the end of three years, it will have a net book

value of __________________.

[1]

12. Which of the following is a correct example of Secret Reserve?

(a) Profit on Sale of Fixed Assets (b) Loss on Sale of Fixed Assets

(c) Showing Net Sales in Trading Account (d) Charging excessive depreciation

[1]

13. Following statement is true or not:

“Provision is a charge against the profit, it is made to meet known liability or contingency when

amount is not determined”.

[1]

14. Give one difference between Bill of Exchange and Promissory Note on the basis of ‘DRAWER’.

[1]

15. Identify the type of error:

“Commission paid for purchase of land is debited to Commission Account instead of Land

Account”.

[1]

16. Rectify the following errors by passing entries:

(i) Goods sold on credit to Vinod for Rs.1,500 but recorded as 5,100.

(ii) Computer purchased on credit from Vinod for Rs.26,000 recorded as 2,600.

(iii) Purchase Book was overcast by Rs.1,200.

[3]



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17. Following transactions are of M/s. Vinod Kumar & Sons for the month of April, 2020. Prepare

their Purchase Book:

April 9 Purchase on credit from M/s. Mehra Mills:

200 pieces long cloth @ Rs.80

50 pieces shirting @ Rs.100

April 14 Purchased for cash from Ashish Furniture:

5 sofa chairs for office use @ Rs.2,100

April 25 Purchased on credit from M/s. Mukesh Mills:

15 pieces coating @ Rs.1,000

10 pieces shirting @ Rs.90

April 30 Purchase on credit from M/s. Hemraj Typewriters Ltd:

4 typewriters @ Rs.3,900 each

[4]

18. Prepare double column cash book from the following information for March 2020:

01 Cash In hand………………………………………………….. 7,500

Bank overdraft………………………………………………... 3,500

03 Paid wages……………………………………………………… 200

05 Cash sales…………………………………………………….. 7,000

10 Cash deposited into bank……………………………………... 4,000

15 Goods purchased and paid by cheque………………………… 2,000

20 Paid rent………………………………………………………… 500

25 Drew from bank for personal use………………………………..400

30 Salary paid …………………………………………………….1,000

[4]

19. Complete the following Accounting Equation by filling the missing figures:

S.

No.

Particulars Assets = Liabilities + Capital

1.

2.

Vinod Started business

with cash Rs.3,00,000 and

goods Rs.1,00,000.

Goods purchased for Cash

Rs.70,000 and on Credit

Rs.50,000.

?

?

?

?

3.

New Equation

Goods sold costing 20,000

for ………?

?

?

? ?

+ 3,000

4.

New Equation

Goods sold on credit,

costing 10,000 for 12,000.

?

?

? ?

?

5.

New Equation

Furniture purchased on

credit for office use 8,000.

?

?

?

?

?

? ? ?

..

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20. Ram purchased goods from Shyam for Rs.4,000 on 1st March 2020 , and accepted a bill of

exchange for 2 months drawn on him by Shyam on the same date for the amount. Shyam got the

bill discounted at his bank at 12% p.a. on due date Ram met the bill. Pass entries in the books of

Ram and Shyam.

[4]

21. Complete the following journal entries of Vinod Bros.

Date Particulars L.F. Debit Credit

(i)

(ii)

(iii)

(iv)

____________ A/c Dr.

To _______________

(Being goods costing Rs.2,000 was taken by

proprietor for personal use the market value of

these goods is Rs.2,500)

____________ A/c Dr.

To _______________

(Being household furniture sold by Vinod for

Rs.14,000 and introduced that money as

capital)

____________ A/c Dr.

To _______________

(Being Rs.800 due from Mehra are bad debts)

____________ A/c Dr.

To _______________

(Being goods costing Rs.1,000 and market

price Rs.1,200 were destroyed by fire)

---

---

---

---

---

---

---

---

…

[4]

22. The cash book shows a bank balance of Rs. 7,800. On comparing the cash book with passbook

the following discrepancies were noted :

(a) Cheque deposited in bank but not credited……………….. Rs. 3,000

(b) Cheque issued but not yet present for payment…………... Rs. 1,500

(c) Insurance premium paid by the bank……………………... Rs. 2,000

(d) Bank interest credit by the bank………………………….. Rs. 400

(e) Bank charges……………………………………………… Rs. 100

(d) Directly deposited by a customer………………………… Rs. 4,000

Prepare Bank Reconciliation Statement

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23. On 1st January, 2014, Vinod Ltd. Purchased machinery for Rs.4,80,000 and on 30th June 2015,

it acquired additional machinery at a cost of Rs.80,000. On 31st March, 2016, one of the original

machine (purchased on 1st January, 2014) which had cost of Rs.20,000 was become obsolete

and was sold as scrap for Rs.2,000. It was replaced on that date by purchasing a new machinery

costing Rs.32,000. Depreciation is to be provided @ 15% p.a. on the written down value. Show

machinery account by following calendar year.

OR

Vinod & Sons purchased a machinery on 1st July, 2014 for Rs.6,00,000. On 1st December, 2014

it purchased another machinery for Rs.4,80,000. On 1st April, 2015 it sold 1/3rd part of the first

machinery for Rs.1,50,000 which was purchased on 1 July, 2014 and purchased a latest edition

of machinery for Rs.5,00,000 on the same day. Depreciation is provided @ 10% p.a. by written

down value method and accounts are closed on 31st December every year. Prepare Machinery

Account, Machinery Disposal Account and Provision for Depreciation Account.

Part – B (Financial Accounting – II)

(8)

24. What is meant by Single Entry System? [1]

25. Identify if following statement is correct or not:

“Capital at the end + Drawings – Additional Capital – opening capital = Closing Capital”.

[1]

26. Net Sales during the year 2019 is Rs.2,85,000. Gross Profit is 25% on Sales. Find out Cost of

Goods Sold.

[1]

27. Which of the following software is not an operating software:

(a) MS-DOS (b) Windows XP

(c) MS Word (d) Windows 10

[1]

28. Complete the following statement:

“----------------------- software are developed to meet the requirement of the user on the basis of

discussion between the user and developers”.

[1]

29. Following is the extract from a Trial Balance:

Particulars Amount (Dr.) Amount (Cr.)

Debtors

Bad Debts

1,68,000

4,000

--

--

Adjustments:

(i) Write off Rs.8,000 as further bad debts.

(ii) Create a provision for doubtful debts at 5% on Sundry Debtors.

Show the treatment of above items in final accounts.

[3]

30. Explain Readymade and Customized software with their advantages & limitations.

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31. Following information is given below : calculate Profit/Loss made during the year:

April, 01, 2018 March 31, 2019

Rs. Rs.

Creditors 5,000 30,000

Bills payable 10,000 —

Loan — 50,000

Bills receivable 30,000 50,000

Stock 5,000 30,000

Cash 2,000 20,000

[6]

32. From the following balances of M/s Vinod Exports, prepare trading and profit and loss account

for the year ended March 31, 2016 and balance sheet as on this date.

Particulars Amount Particulars Amount

Sundry debtors

Opening Stock

Purchases

Carriage inwards

Wages

Office rent

Insurance

Factory rent

Cleaning charges

Salary

Building

Plant and Machinery

Cash In Hand

Gas and Water

Octroi

Furniture

Patents

9,600

22,800

34,800

450

1,770

820

1,440

390

940

1,590

24,000

3,600

2,160

240

60

20,540

10,000

Sundry Creditors

Sales

Purchases returns

Bills Payable

Capital

2,500

72,670

2,430

15,600

42,000

1,35,200 1,35,200

Adjustments:

(1) Closing stock Rs.10,000.

(2) Provision for doubtful debts is to be maintained at 5% on sundry debtors.

(3) Wages amounting to Rs.500 and salary amounting to Rs. 350 are outstanding.

(4) Factory rent prepaid Rs. 100.

(5) Depreciation charged on Plant and Machinery @ 5% and Building @ 10%.

(6) Outstanding insurance Rs.100.

OR

(a) Find out the value of Gross Profit for Vinod & Sons, when:

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Total purchase during the year…………………... Rs.12,00,000

Return Outward…………………………………...Rs.30,000

Direct Expense…………………………………....Rs.90,000

2/3 of the goods are sold for………………………Rs.9,15,000

(b) The following are the extracts from the trial balance of M/s Vinod & Sons

as on March 31, 2011

Account title Debit Credit

Rs. Rs.

Opening stock 2,00,000

Purchases 8,10,000

Sales 10,10,000

10,10,000 10,10,000

Adjustment:

Closing Stock as on date was valued at Rs.3,00,000.

You are required to record the necessary journal entries and show how the above items will

appear in the trading and profit and loss account and balance sheet of M/s Vinod & Sons.

Contact for Ultimate Book of Accountancy 9501066573



Marking Scheme

1. Vinod should submit the accounting information to the following two internal users:

(a) To the owner/proprietor of the firm. (b) To the Management. ½ + ½

2. (c) Communication of Information 1 mark

3. Source Documents:

(i) Cash Memo (ii) Invoice or Bill ½ + ½

4. Calculation of capital:

= Capital = Assets – Liabilities

= 18,00,000 – 7,00,000 = 11,00,000 1 mark

5. Current Assets other than cash & bank:

(i) Trade Receivables i.e. Debtors + Bills Receivables (ii) Inventories (Stock) ½ + ½

Note: Student may write any other current asset, full marks to be given.

6. (b) Conservatism Principle 1 mark

7. (c) Capital A/c Dr. To Cash A/c 1 mark

8. Journal Entry

Building A/c Dr. 5,000

To Cash A/c 5,000

(Being wages paid) 1 mark

9. (b) Sales Account 1 mark

10. Customer or Account holder 1 mark

11. Rs.84,375 1 mark

12. (d) Charging excessive depreciation 1 mark

13. True 1 mark

14. Bill of Exchange: Seller is the Drawer

Promissory Note: Customer is the Drawer ½ + ½

15. Error of Principle 1 mark

16. Rectifying Entries


(i) Sales A/c Dr. 3,600



(ii)

(iii)

To Vinod’s A/c

(Being error is rectified i.e. 5,100 – 1,500)

Office Equipment A/c Dr.

To Vinod’s A/c

(Being posting error is now rectified i.e. 26,000-

2,600)

Suspense A/c Dr.

To Purchase A/c

(Being purchase book was overcast, now

rectified)

23,400

1,200

3,600

23,400

1,200

1+1+1

17 Purchase Book

Date Particulars Amount

April 9 M/s. Mehra Mills :

200 pieces long cloth @ Rs 80 16,000

50 pieces shirting @ Rs.100 5,000 21,000

April 25 M/s Mukesh Mills :

15 pieces coating @ Rs.1,000 15,000

10 pieces shirting @ Rs.90 900 15,900

Purchase A/c Dr. 36,900

Note : Two entries will not be recorded here. 1 x 4 mark for each entry = 4

18. Cash Book

Date Particulars L.F Cash Bank Date Particulars L.F Cash Bank

Mar. 1

5

10

30

April 1

To Balance b/d

To Sales

To Cash

To Bal. c/d

To Balance b/d

C

7,500

7,000

4,000

1,900

Mar.1

3

10

15

20

25

30

30

April

1

By Bal. b/d

By Wages

By Bank

By Purchase

By Rent

By Drawings

By Salaries

By Bal. c/d

By Bal. b/d

C

200

4,000

500

1,000

8,800

3,500

2,000

400

14,500 5,900 14,500 5900

8,800 1,900

4 marks (no step marking)

19. Accounting Equation

S.

No.

Particulars Assets = Liabilities + Capital



1.

2.

Vinod Started business

with cash Rs.3,00,000 and

goods Rs.1,00,000.

Goods purchased for Cash

Rs.70,000 and on Credit

Rs.50,000.

3,00,000 Cash

+1,00,000 stock

(70,000) cash

+ 1,20,000 stock

50,000

4,00,000

3.

New Equation

Goods sold costing 20,000

for 23,000

4,50,000

(20,000) stock

+ 23,000 Cash

50,000 4,00,000

+ 3,000

4.

New Equation

Goods sold on credit,

costing 10,000 for 12,000.

4,53,000

(10,000) stock

+12,000 Debtors

50,000 4,03,000

+ 2,000

5.

New Equation

Furniture purchased on

credit for office use 8,000.

4,55,000

+ 8,000

Furniture

50,000

+ 8,000

4,05,000

New Equation

4,63,000

58,000

4,05,000

1+1+1+1 (except first entry) = 4

20. Shyam’s Journal

Date Particulars L.F Debit (Rs.) Credit (Rs.)

2020

March

1

March

1

Ram’s A/c Dr.

To Sales A/c

(Sold goods to Ram on credit)

Bills Receivable A/c Dr.

To Ram’s A/c

(Received Ram’s acceptance payable

after 2 months)

Bank A/c Dr.

Discounting Charges A/c Dr.

To Bills Receivable A/c

(Bill discounted at the bank @12%)

4,000

4,000

3,920

80

4,000

4,000

4,000

½ + ½ +1 = 2

Ram’s Journal

Date Particulars L.F Debit (Rs.) Credit (Rs.)

2014

March

1

March

1

Purchase A/c Dr.

To Shyam’s A/c

(Being purchased goods from Shyam

on credit)

Shyam’s A/c Dr.

To Bills Payable A/c

4,000

4,000

4,000

4,000



(Being Bill of exchange is given to

Shyam)

Bills Payable A/c Dr.

To Cash/Bank A/c

(Being the payment of the bill )

4,000

4,000

½ + ½ +1 = 2

21. Journal Entries


(i)

(ii)

(iii)

(iv)

Drawings A/c Dr.

To Purchase A/c

(Being goods costing Rs.2,000 was taken by

proprietor for personal use the market value of

these goods is Rs.2,500)

Cash A/c Dr.

To Capital A/c

(Being household furniture sold by Vinod for

Rs.14,000 and introduced that money as

capital)

Bad Debts A/c Dr.

To Mehra

(Being Rs.800 due from Mehra are bad debts)

Loss by Fire A/c Dr.

To Purchase A/c

(Being goods costing Rs.1,000; market price

Rs.1,200 were destroyed by fire)

2,000

14,000

800

1,000

2,000

14,000

800

1,000

1+1+1+1 = 4

22. Bank Reconciliation Statement

Particulars Detail Amount

Balance as per Cash Book

Add: Cheque issued but not present for payment

Interest credited by bank

Direct deposit by a customer into bank

1,500

400

4,000

7,800

5,900

Total

Less: Cheque deposited but not credited by bank

Insurance premium paid by bank

Bank Charges

(3,000)

(2,000)

(100)

13,700

(5,100)

Balance as per Pass Book 8,600



3 + 3 = 6

23. Machinery Account 1+1+6 =8

Date Particulars Amount Date Particulars Amount

2014

Jan 1

2015

Jan 1

June 30

2016

Jan 1

March

31

To Bank A/c

To Balance b/d

To Bank A/c

To Balance b/d

To Bank A/c

4,80,000

2014

Dec.31

Dec.31

2015

Dec 31

Dec 31

2016

March 31

March 31

March 31

Dec.31

Dec.31

By Depreciation A/c

By Balance c/d

By Depreciation A/c

By Balance c/d

By Bank (sale)

By Depreciation A/c

By P/L A/c

By Depreciation A/c

By Balance c/d

72,000

4,08,000

4,80,000 4,80,000

4,08,000

80,000

67,200

4,20,800

4,88,000 4,88,000

4,20,800

32,000

2,000

542

11,908

64,553

3,73,797

4,52,800 4,52,800

Working Note:

(1) Calculation of Profit/Loss:

Original cost of the sold machinery was Rs.20,000

Less: Total depreciation till sale @ 15% p.a. = 3,000 + 2,550 + 542 (3 months) = 6,092

Book value = 20,000 – 6,092 = 13,908

Loss on sale = 13,908 – 2,000 (sale) = 11,908

(2) Total Depreciation in year 2016:

On sold machinery = 542 for 3 months

Old remaining machinery = 60,953

New machinery = 3,600 for 9 Months

OR

Machinery Account


1-7-14

1-12-

14

To Bank A/c

To Bank A/c

6,00,000

4,80,000

31-12-

14

By Balance c/d 10,80,000

10,80,000 10,80,000

1-1-15 To Balance b/d 10,80,000 1-4-15 By Mach. Disposal 2,00,000



1-4-15 To Bank A/c 5,00,000 31-12-

15

A/c

By Balance c/d

13,80,000

15,80,000 15,80,000

2 marks

Machinery Disposal Account


1.4.15 To Machinery A/c 2,00,000 30.6.12 By Bank A/c

By Provision for Dep.

By P/L A/c

1,50,000

14,750

35,250

2,00,000 2,00,000

3 marks

Provision for Depreciation Account


31.12.14 To Balance c/d 34,000 31.12.14 By Depreciation A/c

30,000 + 4,000

34,000

34,000 34,000

1-4-15

31-12-

15

To Mach. Disposal

A/c

To Balance c/d

14,750

1,47,100

1-1-15

1-4-15

31-12-15

By Balance b/d

By Depreciation A/c

By Depreciation A/c

38,000 + 47,600 +

37,500

34,000

4,750

1,23,100

1,61,850 1,61,850

3 marks

Part – B (Financial Accounting – II)

24. Single entry system is also known as incomplete double entry system which records cash

and personal accounts only. 1 mark

25. Statement is not correct. 1 mark

26. Cost of goods sold = 2,13,750 (Sales 2,85,000 – Gross Profit 71,250) 1 mark

27. (c) MS Word 1 mark

28. Tailor-made Software 1 mark

29. Profit and Loss Account (Extract) 3 marks


Bad debts provision 20,000

Balance Sheet (Extract)

Liabilities Amount Assets Amount



Sundry Debtors 1,68,000

Less : Bad debts 8,000

Less : Provision 8,000

1,52,000

Working Note:

Old bad debt + new bad debt + provision

20,000 = 4,000 + 8,000 + 8,000 (1,68,000 – New bad debts 8,000 =1,60,000 x 5%)

30. Readymade Software:

These software’s are ready to use, easy to handle or easy to operate. These software’s

save time and cost. The best example for accounting software is 'Tally'

Advantages of Readymade Software’s 2 marks

(i) Suitable for small business firms.

(ii) Easily available.

(iii) Affordable (Less expensive)

(iv) User friendly (No special training required)

Limitations of Readymade Software’s 1 mark

(i) Knowledge of computer is required (as well as knowledge of accounting is also

required).

(ii) Costly and installation problems.

(iii) Not safe.

Customized Software:

Readymade software’s are modified as per the requirement. It is known as customized

Software’s. The cost of customized software is higher than the readymade software cost and

this cost is paid by the user.

Advantages of Customized Software’s 2 marks

(i) Suitable for medium and large business houses.

(ii) All transactions are recorded in a systematic manner.

(iii) Software is customized according to the requirement.

(iv) Reliable.

Limitations of Customized Software’s 1 mark

(i) Special training is required to handle these type of software’s.

(ii) Costly.

(iii) Outdated software’s may cause problems.

31. Loss during the year = Closing capital – Opening capital

2,000 = 20,000 – 22,000

Statement of Affairs (Opening)


Trade Payable (creditors + B/P)

Capital (Bal. fig.)

15,000

22,000

Bills Receivables

Stock

Cash

30,000

5,000

2,000



37,000 37,000

Statement of Affairs (Closing)


Loan

Creditors

Capital (Bal. fig.)

50,000

30,000

20,000

Bills Receivables

Stock

Cash

50,000

30,000

20,000

1,00,000 1,00,000

2+2+2 =6

32. Trading Account


To Opening Stock

To Purchases less return

To Wages + outstanding

To Carriage inwards

To Factory Rent + prepaid

To Octroi

To Cleaning Charges

To Gas & Water

To Gross Profit

22,800

32,370

2,270

450

290

60

940

240

23,250

Sales

Closing Stock

72,670

10,000

82,670 82,670

Profit and Loss Account


To Salaries + outstanding

To Office Rent

To Insurance + outstanding

To Provision for doubtful debts

To Dep. on Plant & Machine

To Dep. on Building

To Net Profit

1,940

820

1,540

480

180

2,400

15,890

By Gross Profit 23,250

23,250

Balance Sheet


Capital 42,000

Add: Net Profit 15,890

Sundry Creditors

Bills Payable

Outstanding Expenses: Salary

Wages

Insurance

57,890

2,500

15,600

350

500

100

Building less Dep.

Plant & Machinery less Dep.

Furniture

Patents

Sundry debtors less

provision

Closing Stock

Cash in hand

Prepaid Rent (factory)

21,600

3,420

20,540

10,000

9,120

10,000

2,160

100



76,940 76,940

2+3+3 =8

OR

(a) Cost of goods sold = Total Purchase – Purchase Return + Direct Expenses

12,60,000 = 12,00,000 – 30,000 + 90,000

Cost of 2/3 goods sold = 12,60,000 x 2/3 = 8,40,000

Gross Profit = 9,15,000 – 8,40,000 = 75,000 3 marks

(b) . Trading and Profit & Loss Account 3 marks


To Opening Stock

To Purchases

To Gross Profit

2,00,000

8,10,000

3,00,000

By Sales

By Closing Stock

10,10,000

3,00,000

13,10,000 13,10,000

To Net Profit

3,00,000

By Gross Profit 3,00,000

3,00,000 3,00,000

Balance Sheet (Extract) 2 marks


Capital ---

Add: Net Profit 3,00,000

3,00,000

Closing Stock 3,00,000

3,00,000 3,00,000