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Published by :

with Complete SolutionsQUESTION BANK

Includes Solved Paper (KVS) 2016

CLASS 11

AccountancyStrictly Based on the Latest Syllabus issued by CBSE Board

For

MARCH2017Exam

© Publisher

Oswaal Books

2005

OUR DISTRIBUTORS

• Syllabus iv – viii

• Solved Paper (KVS), 2016 – Agra region ix – xxii

• Solved Paper (KVS), 2016 – Guwahati region xxiii – xxxii

• Solved Paper (KVS), 2015 9 – 16

Part A : Financial Accounting – I

1. Introduction to Accounting 1 – 16

2. Theory Base of Accounting 17 – 38

3. Recording of Transactions–I 39 – 77

4. Recording of Transactions–II 78 – 96

5. Bank Reconciliation Statement 97 – 111

6. Depreciation, Provisions and Reserves 112 – 160

7. Accounting for Bills of Exchange 161 – 215

8. Trial Balance and Rectification of Errors 216 – 246

Part B : Financial Accounting – II

9. Financial Statements 247 – 285

10. Final Account with Adjustments 286 – 321

11. Accounting for Not–for–profit Organization 322 – 333

12. Accounting from Incomplete Records 334 – 359

13. Applications of Computers in Accounting 360 – 368

qq

CONTENTS

Introduction to Accounting 11 Periodsl Accounting- concept, objectives, advantages and

limitations, types of accounting information; users of accounting information and their needs.

l Basic accounting terms: business transaction, account, capital, drawings, liabilities (non-current and current); assets (non-current and current) fixed assets (tangible and intangible assets), receipts (capital and revenue), expenditure (capital, revenue and deferred), expense, income, profits, gains and losses, purchases, purchases returns, sales, sales returns, goods, stock, inventory, trade receivables (debtors and bills receivable), trade payables (creditors and bills payable), cost, vouchers, discount - trade and cash.

Theory Base of Accounting 14 Periodsl Fundamental accounting assumptions: going

concern, consistency and accrual.l Accounting principles: accounting entity, money

measurement, accounting period, full discl-osure, materiality, prudence, cost concept, matching concept and dual aspect.

l Accounting Standards and IFRS (International Financial Reporting Standards): concept and Objectives

l Double entry system of accounting.l Bases of accounting - cash basis and accrual basis.

After going through this unit, the students will be able to:l describe the meaning, significance, objectives,

advantages and limitations of accounting in the modern economic environment with varied types of business and non-business economic entities.

l identify / recognise the individual(s) and entities that use accounting information for serving their needs of decision making.

l explain the various terms used in accounting and differentiate between different related terms like current and non-current, capital and revenue.

l give examples of terms like business transaction, liabilities, assets, receipts, expenditure and purchases.

l explain that sales/purchases include both cash and credit sales/purchases relating to the accounting year.

l differentiate among income, profits and gains.l state the meaning of fundamental accounting

assumptions and their relevance in accounting.l describe the meaning of accounting principles

and the situation in which a principle is applied during the accounting process.

l explain the meaning and objectives of accounting standards.

l appreciate that various accounting standards developed nationally and globally are in practice for bringing parity in the accounting treatment of different items.

l acknowledge the fact that recording of accounting transactions follows double entry system.

l explain the bases of recording accounting transaction and to appreciate that accrual basis is a better basis for depicting the correct financial position of an enterprise.

(iv)

One Paper Theory: 90 Marks

3 Hours

Units Periods MarksPart A Financial Accounting -I Unit 1: Theoretical Framework 25 15 Unit 2: Accounting Process 95 35 120 50 Part B Financial Accounting -II Unit 3: Financial Statements of Sole Proprietorship from Complete 40 15 and Incomplete Records Unit 4: Financial Statements of Not -for-Profit Organizations 30 15 Unit 5: Computers in Accounting 20 10 90 40Part C Project Work 30 10

Part A : FINANCIAL ACCOUNTING - I 50 MarksUnit 1: Theoretical Frame Work 25 Periods

Units/Topics Learning Outcomes

Latest Syllabus for Academic Year 2016-17Accountancy (Code No.- 055)

(v)

After going through this unit, the students will be able to:l explain the concept of accounting equation and

appreciate that every transaction affects either both the sides of the equation or a positive effect on one item and a negative effect on another item on the same side of accounting equation.

l�explain the effect of a transaction (increase or decrease) on the concerned assets, liabilities, capital, revenue and expenses.

l�appreciate that on the basis of source documents, accounting vouchers are prepared for recording transaction in the books of accounts.

l develop the understanding of recording of transactions in journal.

l�explain the purpose of maintaining a Cash Book and develop the skill of preparing the format of different types of cash books and the method of recording cash transactions in Cash book.

l describe the method of recording transactions other than cash transactions as per their nature in different subsidiary books.

l�appreciate that at times bank balance as indicated by cash book is different from the bank balance as shown by the pass book / bank statement and to reconcile both the balances, bank reconciliation statement is prepared.

l develop understanding of preparing bank reconciliation statement.

l�appreciate that for ascertaining the position of individual accounts, transactions are posted from subsidiary books and journal proper into the concerned accounts in the ledger and develop the skill of ledger posting.

l�state the need and objectives of preparing trial balance and develop the skill of preparing trial balance.

l�explain the necessity of providing depreciation and develop the skill of using different methods for computing depreciation.

l understand the accounting treatment of providing depreciation directly to the concerned asset account or by creating provision for depreciation account.

l�appreciate the method of asset disposal through the concerned asset account or by preparing asset disposal account.

l�appreciate the need for creating reserves and also making provisions for events which may belong to the current year but may happen in next year.

l�appreciate the difference between reserve and reserve fund.

l acquire the knowledge of using bills of exchange and promissory notes for financing business transactions;

l�understand the meaning and distinctive features of these instruments and develop the skills of their preparation.

Unit 2 : Accounting Process 95 Periods

Units/Topics Learning Outcomes

Recording of Transactions 23 Periodsl Accounting equation: analysis of transactions

using accounting equation.l Rules of debit and credit: for assets, liabilities,

capital, revenue and expenses.l Origin of transactions- source documents/

supporting vouchers (invoice, cash memo, pay in slip, cheque), debit note, credit note, preparation of accounting vouchers - cash (debit and credit) and non cash (transfer).

l Books of original entry: format and recording -Journal.

l Cash book: simple cash book, and cash book with bank column, petty cash book.

l Other books: purchases book, sales book, purchases returns book, sales returns book and journal proper.

Preparation of Bank Reconciliation Statement, Ledger and Trial Balance 23 Periodsl Bank reconcil iat ion statement-concept,

calculating bank balance at an accounting date: need and preparation. Corrected cash book balance.

l Ledger - format, posting from journal, cash book and other special purpose books, balancing of accounts.

l Trial balance: objectives and preparation {Scope: Trial balance with balance method only)Depreciation, Provisions and Reserves. 16 Periodsl Depreciation: concept, need and factors affecting

depreciation; methods of computation of depreciation: straight line method, written down value method (excluding change in method)

l Accounting treatment of depreciation: by charging to asset account, by creating provision for depreciation/ accumulated depreciation account, treatment of disposal of asset.

l Provisions and reserves: concept, objectives and difference between provisions and reserves; types of reserves- revenue reserve, capital reserve, general reserve and specific reserves.

Accounting for Bills of Exchange. 16 Periodsl Bills of exchange and promissory note: definition,

features, parties, specimen and distinction.l Important terms : term of bill, due date, days of

grace, date of maturity, discounting of bill, endorsement of bill, bill sent for collection, dishonor of bill, noting of bill , retirement and renewal of a bill.

l Accounting treatment of bill transactions.

l state the meaning of different terms used in bills of exchange and their implication in accounting.l explain the method of recording of bill transactions.l appreciate that errors may be committed during the process of accounting.l understand the meaning of different types of errors and their effect on trial balance.l�develop the skill of identification and location of errors and their rectification and preparation of suspense account.

(vi)

After going through this unit, the students will be able to:l describe the meaning of financial statements and the purpose they serve.l state the meaning of gross profit, operating profit and net profit and develop the skill of preparing trading and profit and loss account.l explain the need for preparing balance sheet.l understand the technique of marshalling of assets and liabilities.l appreciate that there may be certain items other than those shown in trial balance which may need adjustments while preparing financial statements.l develop the knowledge and understanding to do adjustments for items and their presentation in financial statements like depreciation, closing stock, provisions etc.l develop the understanding of preparation of trading and profit and loss account and balance sheet.l state the meaning of incomplete records and their uses and limitations.l develop the skill of computation of profit / loss using the statement of affairs method.

Part B : FINANCIAL ACCOUNTING - II 40 MarksUnit 3: Financial Statements of Sole Proprietorship: From Complete and Incomplate Records4 0 Periods

Units/Topics Learning Outcomes

l Financial statements: objective and importance.l Trading and profit and loss account: gross profit, operating profit and net profit.l Balance sheet: need, grouping, marshalling of assets and liabilities.l Adjustments in preparation of financial statements : with respect to closing stock outstanding expenses, prepaid expenses, accrued income, income rece ived in advance , depreciation, bad debts, provision for doubtful debts, provision for discount on debtors, abnormal loss, goods taken for personal use, goods distributed as free samples and manager.s commission.l Preparation of Trading and Profit and Loss account and Balance Sheet of sole proprietorship.l Incomplete records: uses and limitations. l Ascertainment of profit/loss by statement of affairs method.

After going through this unit, the students will be able to:l State the meaning of a Not-for-profit organisation

and its distinction from a profit making entity.l describe the meaning of receipts and payments

account, its features and develop the understanding that only cash transactions concerning current, past & future periods whether of revenue or capital nature are recorded in receipts and payments account.

Unit 4: Financial Statements of Not-for-Profit Organizations 30 Periods

Units/Topics Learning Outcomes

l Not-for-profit organizations: concept.l Receipts and Payments Account: features and

preparation.l Income and Expenditure Account: features,

preparation of income and expenditure account and balance sheet from the given receipts and payments account with additional information.

Scope: (i) Adjustments in a question should not exceed 3 or 4

in number and restricted to subscriptions, consumption of consumables and sale of assets/old material.

Rectification of Errors 17 Periodsl Errors: types-errors of omission, commis- ssion, principles, and compensating; their effect on Trial Balance.l Detection and rectification of errors; preparation of suspense account.

(vii)

l develop the skill of preparing receipts and payments account.l explain the meaning of income and expenditure account and its features.l develop the understanding of preparing income and

expenditure account and balance sheet of a not- for profit organisation with the help of given receipts and payments account and additional information.

(ii) Entrance/admission fees and general donations are to be treated as revenue receipts.

(iii) Trading Account of incidental activities is not to be prepared.

After going through this unit, the students will be able to:l State the meaning of a component of a computer,

capabilities and limitations.l state the meaning of accounting information

system.l appreciate the need for use of computers in

accounting leading to automation of accounting process for designing accounting reports and MIS.

l Develop the technique of data exchange with other information systems.

l develop the understanding of comparing the manual and computerized accounting process and appreciate the advantages and limitations of automation.

l develop the knowledge of different styles of computerized accounting.

l explain the understanding of database system and its related concepts in context of accounting system.

l describe the meaning of electronic spreadsheet and develop the understanding of using the spreadsheet.

develop the skill of preparing graphs, charts and diagrams using electronic spreadsheet.

Unit 5: Computers in Accounting 20 Periods

Units/Topics Learning Outcomes

l Introduction to computer and accounting information system {AIS}: Introduction to computers (elements, capabilities, limitations of computer system),

l Introduction to operating software, utility software and application software. Introduction to accounting information system (AIS) as a part of MIS.

l Automation of accounting process: meaningl Stages in automation: (a) Accounting process in a

computerised environment; comparison between manual accounting process and computerised accounting process, (b) Sourcing of accounting software; kinds of software: readymade software; customised software and tailor-made software; generic considerations before sourcing accounting software (c) creation of account groups and hierarchy (d) generation of reports - trial balance, profit and loss account and balance sheet.

Scope :(I) The scope of the unit is to understand accounting

as an information system for the generation of accounting information and preparation of accounting reports.

(ii) It is presumed that the working knowledge of any appropriate accounting software will be given to the students to help them learn basic accounting operations on computers. For this, the teachers may refer to Chapter 4 of Class XII NCERT textbook on Computerized Accounting System.

Part C: Project Work (Any One) 10 Marks 30 Periods

1. Collection of source documents, preparation of vouchers, recording of transactions with the help of vouchers.

2. Preparation of Bank Reconciliation Statement with the given cash book and the pass book with twenty to twenty-five transactions.3. Comprehensive project starting with journal entries regarding any sole proprietorship business, posting them to the ledger and preparation of Trial balance. The students will then prepare Trading and Profit and Loss Account and Balance Sheet on the basis of the prepared trial balance. Expenses, incomes and profit (loss), assets and liabilities are to be depicted using pie chart / bar diagram.

Note: The Board has introduced Learning Outcomes in the syllabus to motivate students to constantly explore all levels of learning. However these are only indicative. These do not in any way restrict the scope of questions being asked in the examinations. The examination questions will be strictly based on the prescribed question paper design and syllabus.

Suggested Question Paper Design Accountancy (Code No. 055)

Class XI (2016-17) March 2017 Examination One Paper Theory: 80 Marks

Duration: 3 hrs.

TOTAL 90

100%

(viii)

Note: Scheme of options: All questions carrying 8 marks will have internal choice.

No.S. Typology of Questions

Marks

%

VeryShort

Answer1 Mark

ShortAnswer I3 Marks

ShortAnswer

II4 Marks

LongAnswer

I6 Marks

LongAnswer

II8 Marks

Remembering - (Knowledge based simple recall questions, 1 to know specific facts, terms, 2 2 1 1 - 18 20% concepts, principles, or theories; identify, define, or recite, information)

Understanding - (Comprehension - to be familiar 2 with meaning and to understand - 1 1 2 1 27 30%

conceptually, interpret, compare,

contrast, explain, paraphrase, or interpret information)

Application - (Use abstract information in concrete situation,

3 to apply knowledge to new - - 2 1 1 22 25% situations; Use given content to interpret a situation, provide an example, or solve a problem)

High Order Thinking Skills - (Analysis & Synthesis- Classify, compare, contrast, or 4 differentiate between different 2 2 1 1 - 18 20% pieces of information; Organize and/or integrate unique pieces of information from a variety of sources)

5 Evaluation - (Appraise, judge, and/or justify the value or worth of a decision or outcome, 2 1 - - - 5 5% or to predict outcomes based on values)

6x1=6 6x3=18 5x4=20 5x6=30 2x8=16 (24) 100%

KENDRIYA VIDYALAYA SANGATHAN[AGRA REGION]

SESSION ENDING EXAMINATION 2016

SUBJECT : ACCOUNTANCY [055]CLASS–XI

(SOLVED PAPER)

Time : 3 Hrs. M.M. : 90

General Instructions : (i) This question paper contains two parts—A and B. (ii) All Questions in both the parts are compulsory. (iii) All parts of question should be attempted at one place. (iv) Marks for questions are indicated against each questions. (v) Answers should be brief and to the point.

SECTION A1. When is the closing stock shown in the trial balance ? 12. What is the meaning of Ledger ? 13. What do you understand by General Reserve ? 14. Compensating error is not disclosed by the trial balance. Why ? 15. Rs. 5,000 received from Mr. Z whose account was written off as bad debt, Pass Journal Entry. 16. Create an accounting equation on the basis of the following transaction : 3 (1) Started business with cash ` 8,00,000 and goods ` 2,00,000. (2) Cash deposited in Bank ` 5,00,000. (3) Purchased machinery from Arjun ` 10,000. (4) Bought goods for cash ` 80,000. (5) Paid to arjun by cash ` 10,000. (6) Salary paid by cheque ` 1,00,000.7. What do you mean by Trial Balance ? An accountant of a company in order to match the trial balance passed a

dummy entry without any proof of the transaction and did not even inform the seniors about it. Identify the value being violated by the accountant. 3

8. Journalize the following transactions. (a) Bought goods from Akash of ` 10,000 @ 10% trade discount and 5% cash discount, 50% payment made by

cheque. (b) Paid landlord ̀ 3,000 for rent. One third of the premises are occupied by the proprietor for his own residence. (c) Payment made to creditors in full settlement ` 27,000. (d) Goods stolen by employee of ` 1,000 (Sales price ` 1,200). 49. Briefly explain the limitations of Double Entry System of accounting. 4 10. Rectify the following error using Suspense Account where necessary : (i) Goods amounting to ` 25,000 sold to Alok were correctly entered in the sales book but posted to Akash's

account for ` 2,500. (ii) Purchase Return book was under casted by ` 1,000. (iii) Good invoiced at ` 1,500 and debited on 21st December to Puneet were returned on the 25th December and

taken into stock on 31st December but no entries made in the books of the account. (iv) Depreciation charged on Plant of ` 25,000 @10%, credited Depreciation Account. 411. Explain any two accounting Concepts/Principles : 4 (a) Dual Aspect (b) Accrual (c) Conservatism.12. 'Trial Balance is not a conclusive proof of accuracy of all the accounts'. In the light of this statement explain the

errors which are not disclosed by Trial Balance. 413. Akash draws on Vikash three Bills of Exchange for ` 30,000, ` 24,000 and ` 18,000 respectively for goods sold

to him on 1st February, 2015. These bills were of a month, 2 months and 3 months respectively. First bill was

continue

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