Sample Papers for Class 11 Accountancy

DKGoelsolutions.com brings here the best collection of sample papers for class 11 Accountancy with solutions. Students can download the papers for free in PDF format and use them for examination preparations. All papers have been developed as per the latest examination pattern and expected questions as per suggestion by the best teachers in accountancy. You can download the PDF of the guess paper and prepare to get better marks in the Class 11 Accountancy exam.

CBSE Class 11 Accountancy Sample Paper Set A

Question: Proprietor of a firm has taken goods for his personal use. The accountant has accounted it as sale in the books of accounts. Is he correct in his accounting?

Answer

No, he is not correct as the goods taken by the prop shld be debited to his drawings account as the goods taken for personal use do not have an element of profit.

Question Give two examples of Intangible Assets.

Answer

Goodwill, patents

Question In which basis of accounting, Outstanding expenses are not recorded?

Answer

Cash basis

Question What is meant by a ‘Trial Balance’?

Answer

it is a statement in which the debit and credit balances of all accounts are written with a view to ascertain the arithmetical accuracy of accounts.

Question. Total of the purchases invoices recorded in the Purchases Book is posted to the debit side of the Purchases Account in the Ledger and credited to the accounts of suppliers. Do you agree? Give reasons.

Answer

Yes, Purchases is an expense account & therefore, following the rule ‘Increase in expenses is debited & decrease credited’, Purchases A/c is debited. Since, the purchases book contains records of credit purchases, the Suppliers’ A/c (being creditors) is credited following the rule applicable to liabilities A/c i.e. ‘Increase in liabilities is credited & decrease debited’.

Question. Distinguish between Cash Basis of Accounting and Accrual Basis of Accounting on the basis of ‘reliability’ and ‘suitability’

Answer

Reliability – Accrual basis is more reliable as it records both cash & credit transactions & thus, reveals correct profit or loss besides assets & liab ; but cash basis is less reliable as it records only cash transactions & does not reveal profit or loss & assets & liab. (1) Suitability – Accrual basis is suitable for bs.es as it requires info that is complex; but cash basis is suitable for NPOs .

Question. Explain any three advantages of Accounting.

Answer

(i) Fin. Information about bs. – It ascertains profit earned or loss incurred during an accounting period by preparing Statement of Profit & Loss (Income Statement). & to determine financial position by preparing Balance Sheet (Position Statement). (ii) Assisting the management – To assist mgt. by providing fin. Inf. To it. It helps the mgt. in decision – making (say price fixation) & exercising controls. (iii) Replaces memory – by recording business transactions in the books of accounts. (iv)Facilitates comparative study – helps to compare one year’s results with those of other years & find out the change. (v) Facilitates settlement of tax liabilities – A good systematic record helps in settlement of income tax, sales tax, VAT. (vi) Evidence in court – systematic record of transactions is accepted by the court as evidence. (any 3) (0.5 for pt & 0.5 for

Question. Confidence and trust that the reported information is a reasonable representation of the actual items and events, that have occurred, depicts which qualitative characteristic of accounting information? Name and explain it. Also explain any other two qualitative characteristics of the accounting information.

Answer

Reliability – verifiable, free from material error & bias. (1) other two qualitative characteristics are : a. Relevance – relevant to users & help them in decision making. b. Understandability – presented in a manner so that it can be understood by users. c. Comparability

Question. Due to a major loss in the current year, the accountant of the firm has not charged depreciation on fixed tangible assets. Whether his decision not to charge depreciation is correct? What will be the impact of the decision on financial statements?

Answer

Dep is the process of allocating cost of fixed assets over its estimated useful life. So dep being cost shld be debited to P& L a/c. Impact of not charging dep on fixed assets will result in higher profits or lower loss. It will also result showing fixed assets in the balance sheet at improper value.

Question (i) Mention any one difference between journal and ledger. (ii) Mohan & Co. sold goods amounting to Rs.50,000 at a trade discount of 5% to GSC Co. As per the terms, if GSC Co. made full payment to Mohan & Co. within 15 days it will get Cash discount of 2%. GSC Co. paid the full amount within the stipulated time. Determine the amount of Cash discount that GSC Co. may get. Also pass a journal entry to record this transaction in the books of Mohan & Co.

Answer

(i) Journal – is a book of primary entry whereas ledger is a book of final entry. (1) (ii) In the books of Mohan & Co.

Question a. Give an example for a transaction which results in : Increase in one liability, decrease in another liability. b.Pass journal entries for the following: Goods destroyed by fire Rs.80,000; Insurance Co. admitted and paid claim for 70% amount.

Answer

a.Bills payable accepted

Question X started a business on 1st April, 2012 with a capital of Rs. 50,000 and a loan of Rs. 25,000 borrowed from Y. During 2012 – 13, he had introduced additional capital of Rs. 25,000 and had withdrawn Rs. 15,000 for personal use. On 31st March, 2013 his assets were Rs. 1,50,000. Calculate his closing capital as on 31st March, 2013 and profit made or loss incurred during the year 2012 – 13.

Answer

Closing capital = Closing Assets – Closing liabilities = 1,50,000 – 25,000 = Rs. 1,25,000 (1) Profit = Closing capital – opening capital – additional capital + drawings = 1,25,000 – 50,000 – 25,000 + 15,000 = Rs. 65,000

Question (i) Give two differences between Profit and Gain. (ii) Distinguish between non – current assets and current assets by giving two examples of each.

Answer

(i) Profit is excess of revenue of a business over its costs whereas gain is a profit of irregular or non – recurrent nature. Profit arises if revenue is more than expenses but gain arises from transactions which are incidental to business like profit on sale of fixed assets. (1 each) (2)
(ii) non – current assets are those which are held in the bs from a long term pt of view; they are held for investment & are not for resale eg bldg, machinery whereas current assets are held for converting them into cash within a short period.eg stock, debtors.

Question (i) What is meant by Imprest System of Petty Cash? (ii) Mention the subsidiary books in which following transactions are recorded along with reasons there of:
a. Purchase of furniture on credit for use in shop b. Defective goods sold to Babita on credit for Rs.4,000 were returned by her.

Answer

(i) Imprest System of Petty Cash – The petty cashier is given a certain amount of cash for a particular period (a week, a month) to meet various petty expenses for the period. At the end of the period, the amt actually spent by the Petty Cashier is reimbursed by the Chief Cashier.
(ii)a. Purchase of furniture on credit for use in shop – Journal proper – bcoz purchase of fixed assets on cr is recorded in journal proper. b. Defective goods sold to Babita on credit for Rs.4,000 were returned by her – Sales return book as goods sold are returned by the customer.

Question (i) Why are the rules of debit and credit same for liability and capital? (ii) Classify the following as per Modern or Traditional classification of accounts: a. Repairs b. Interest Payable c. Trademark d. Carriage Inwards e. Sales f. Unsold Stock

Answer :

Question a. Shri Madan , a businessman has employed Shri Sujit and has estimated his honesty at a value at Rs.10,00,000. He has accounted it as an asset in the books of accounts. Is he correct in doing so?
b. Cash book is both a subsidiary book and a principal book. Explain.

Answer

a. No, he is not correct because in accounting only those transactions are recorded which can be converted into money terms. Value of manpower cannot be measured in money terms & therefore, should not be accounted.

b.Cash book is a subsidiary book because cash transactions are recorded in cash book and from there ledger a/c is prepared. Cash book is a principal book because it is itself cash a/c and bank a/c and there is no need to prepare a separate ledger.

Question.Explain the following Source Documents:
(i) Cash Memo
(ii) Receipt

Answer

i. Cash Memo – a document of sale of goods against cash. It is issued by seller to the buyer. has details of goods sold.
ii.Receipt – document issued against receipt of amount. It has the details for date, amt & the name of the payee of the amt.

Question Prepare a trial balance from the following information:

Answer

Question. Shri Rakesh has started his business of retail trade on October 1, 2012. He has employed two persons – one female accountant and another clerk, who is physically challenged to prepare books of accounts. He desires that the bs should go on forever and ever and they should prepare first Profit and Loss Account and Balance Sheet on March 31, 2013 and thereafter every year on March 31. You have to appraise his decision and ascertain whether his decision is justified? Which are the two concepts / principles of Accounting followed by him? Name and explain them. Also mention any two values followed by Shri Rakesh.

Answer

He has made a correct decision. By doing so he has followed the accounting concept of Going concern & Accounting Period assumption. (1 each for naming & 1 for expl )
2 values – good bs practice, women empowerment, socially responsible by giving empl to handicap

Question Prove the accounting equation in the following transactions:-
(i) Started business with cash Rs. 80,000
(ii) Bought goods for cash Rs. 15,000 and on credit Rs. 12,000
(iii) Sold goods for cash costing Rs. 10,000 and on credit costing Rs.7,000 both at a
profit of 20 % .
(iv) Paid to creditor in full settlement Rs. 11,450
(v) Accrued interest Rs.1,300.

Answer:

Question Pass journal entries:
(i) Goods costing Rs.5,000 given as charity (Sales price Rs.6,000).
(ii) Out of rent paid this year, Rs.2,000 is related to the next year.
(iii) Shyam became insolvent. A first and final compensation of 75 p in a rupee received from
his official receiver. He owed us a debt of Rs.25,000.
(iv) Paid landlord Rs.1,500 for rent. One – third of the premises is occupied by the proprietor for his own residence.
(v) Interest on loan received from the debtor Rs. 3,000.
(vi) An old machine with the book value of Rs.80,000 is exchanged for a new machine of Rs.2,40,000. The balance payment to be made to the supplier, Machine Tools Ltd. is Rs.1,60,000.

Answer

Question From the following transactions prepare a triple column cash book :

Answer:

Apr 6 Cheques in hand a/c —— dr. 2,450
Discount allowed a/c——dr. 50
To Rakesh 3,000
(being cheque recd from Rakesh)
( 3 for dr. side & 2.5 for cr. Side ; 0.5 for journal entry)

Questiona. Mention any two differences between Straight line method and Written Down Value Method of charging depreciation.

b. A Machinery was purchased on 1st Jan,2009 for Rs.36,000 & Rs.4,000 was spent on its installation.
On 1st July, 2009, it purchased another machinery for Rs.20,000.
On 1st July, 2011, it sold off the first machine purchased on 1st Jan, 2009 for Rs.12,000 and on the same date purchased a new machinery for Rs.64,000.
Depreciation is provided at 10% p.a. on the Written Down Value Method. Accounts are closed each year on 31st December. Show the machinery account from 2009 to 2011.

Answer:

a. 1. Straight line method – calculated on original cost of a fixed asset ;but in Written Down Value Method, dep is calculated on the diminishing bal of a fixed asset.

Straight line method – the amt of dep remains the same but in Written Down Value Method the amt of dep reduces year after year.

Question Chetan has the following balances in his books on 1st March, 2013:
Cash Rs.1,540; Cash at Bank Rs.8,250; Stock Rs.19,250; Plant & Machinery Rs.44,000.
Sundry debtors: Rajesh Rs.2,750; James Rs.1,375
Sundry Creditors: Rao Rs.1,925; Samanta Rs.3,575; Capital Rs.71,665.
The following are the transactions for the month of March: