CBSE Sample Papers for Class 11 Accountancy Set 6 with Solutions

Students must start practicing the questions from CBSE Sample Papers for Class 11 Accountancy with Solutions Set 6 are designed as per the revised syllabus.

CBSE Sample Papers for Class 11 Accountancy Set 6 with Solutions

Time : 3 Hr.
Max. Marks : 80

General Instructions:

• This question paper contains two parts, A and B.
• All questions in both the parts are compulsory.
• All parts of the questions should be attempted at one place.

Part-A (56 Marks)
Financial Accounting-I

Question 1.
Which of the following is not a type of personal Account?
(A) Natural personal Account
(B) Artificial personal Account
(C) Representative personal Account
(D) Nominal Account [1]
Answer:
(D) Nominal Account

Explanation: Personal accounts can be categorized into three types and these are – Natural , Artificial and Representative personal Accounts. While nominal account is a type of non- personal Account.

Question 2.
All returns inward are recorded in ……………. day book. [1]
Answer:
Sales return

Explanation: Day books is the another name for subsidiary books. Returns inward represent the goods returned by customers to us. So it is recorded in sales returns book.

Question 3.
Ramesh Printers purchased a printing machine for ₹ 27 lakh on 1st April, 2018. The market price of the machine on
31st March, 2019 was ₹ 32 lakh. The company values the machine at ₹ 32 lakh while preparing its Balance Sheet. Which accounting principle does the firm violate? [1]
Answer:
Cost concept

Question 4.
Accrual concept applies equally to …………… and ………………… [1]
Answer:
revenue, expenses

Question 5.
Assets =
(A) Capital + Liabilities
(B) All liabilities
(C) Internal liabilities + External liabilities
(D) All of the above [1]
Answer:
(D) All of the above

Question 6.
What does the right side of the Cash Book show?
(A) Payments in cash
(B) Expenses and losses
(C) Both (A) and (B)
(D) None of the above [1]
Answer:
(A) Payments in cash

Explanation: Cash book contains two columns of amount- one on left side and other on credit side. Left side shows the receipt of cash and right side shows payment of cash.

Question 7.
Which of the following transactions will become part of Bank Reconciliation Statement?
(A) Amount wrongly debited by Bank ₹ 5,000
(B) Amount wrongly credited by bank ₹ 500
(C) Both (A) and (B)
(D) None of the above [1]
Answer:
(C) Both (A) and (B)

Explanation: Any transaction that causes the difference between the bank balance as per cash book and pass book forms the part of BRS.

Question 8.
………….. is the reduction in the value of asset due to technological changes. [1]
Answer:
Obsolescence

Question 9.
Reserves which are shown on the liabilities side of Balance Sheet:
(A) Open Reserve
(B) Secret Reserve
(C) Both (A) and (B)
(D) None of the above [1]
Answer:
(A) Open Reserve

Question 10.
Trial balance ascertains the …………… accuracy of the accounting books. [1]
Answer:
Arithmetical

Question 11.
Which of the following is/are the cause/ causes of difference in the cash book and pass book balance? [1]
(A) Timing
(B) Transactions
(C) Errors
(D) All of These
Answer:
(D) All of These

Explanation: There are a number of causes of difference in the cash book and pass book balances. For example, the businessman issued cheque for a payment and credited this amount to bank column of cash book but it was not presented into bank for payment. In this condition, there will be difference in balance of cash book and passbook.

Question 12.
Furniture purchased from M/s Delhi Furnishings for ₹ 40,000 was entered into the Purchases Book. It is an error of …………… [1]
Answer:
Error of Principle

Explanation: Furniture purchased is a capital Expenditure. By recording it into the purchase book, it has been considered as revenue expenditure. Hence it is an Error of principle.

Question 13.
Which error will not affect the Trial Balance?
(A) One sided error
(B) Two-sided error
(C) Both (A) and (B)
(D) None of the above [1]
Answer:
(B) Two-sided error

Study the following hypothetical Extract of the Petty Cash Book in the books of Baruah Traders and answer the given questions 14 to 17:
In the Books of Barua Traders
Petty Cash Book

Question 14.
What is the amount of the cash to be received by the petty cashier under the imprest system?
(A) ₹ 9,500
(B) ₹ 10,000
(C) ₹ 9,750
(D) Cannot be determined [1]
Answer:
(B) ₹ 10,000

Explanation: Under this system, the imprest amount is paid by the head cashier to the petty cashier. On the amount is ₹ 10,000. So the head cashier has given the amount to make the amount equal to ₹ 10,000.

Question 15.
…………………. should have been recorded in conveyance and not in wages column of the analytical petty cash book. [1]
Answer:
Bus fare of ₹ 600

Question 16.
………………….. was the amount paid for writing pad and register on the 26th of February. [1]
Answer:
₹ 900

Question 17.
………………… amount will be given to the petty cashier in the month of March by the main cashier.
(A) ₹ 7,600
(B) ₹ 9,400
(C) ₹ 9,600
(D) ₹ 9,750
Answer:
(C) ₹ 9,600

Explanation: As the total Expenses, amount to ₹ 9,600, The head cashier will give the petty cashier the amount equal to expenses in order to make the amount available to him equals to ₹ 10,000.

Read the following hypothetical Case Study and answer the given questions 18 to 21:
Given below is a hypothetical extract from the Cash Book and Pass Book of M/s Ganjan Traders.
Dr. Extract of Cash Book (Bank Column Only) Cr.

Extracts of Passbook

Question 18.
The total amount of cheques paid into bank for collection but not yet credited by the bank is ………………
(A) ₹ 15,000
(B) ₹ 22,000
(C) ₹ 37,000
(D) ₹ 50,300 [1]
Answer:
(C) ₹ 37,000

Explanation: Consider the cheques that were sent to the bank but the amount of those which was not credited by the bank.

Question 19.
Which of the following statement is not correct?
(A) Cheque of Tushar is issued but not presented for payment.
(B) Cheque of Shruti Ltd. is issued but not presented for payment.
(C) Cheque of Kapur is issued but not present for payment.
(D) Cheque of Vikas Bros, has been sent for collection but not credited by bank. [1]
Answer:
(B) Cheque of Shruti Ltd. is issued but not presented for payment.

Question 20.
The bank charges of ₹ 1,400 shown in the Pass book and not the cash book will appear in the column of the amended Cash Book. [1]
Answer:
Bank

Question 21.
On ……………….. side of the amended cash book will the amount paid by the bank as insurance premium on the behalf of the customer will appear. [1]
Answer:
Credit

Explanation: As the insurance paid by the bank on behalf of the customer is an expense. Hence will appear on the credit side of cash book.

Question 22.
What is a voucher? [3]

OR

What is a pay-in-slip?
Answer:
Voucher: The documents prepared for the purpose of recording business transactions in the books of accounts are known as vouchers. Voucher is prepared on the basis of source documents for recording business transactions in the books of accounts. Source documents are further analysed and it is concluded which account is to be debited and which account is to be credited.

Commonly Made Error
Students confuse between “vouchers” and “source documents” and give a mix explanation of both.

Answering Tip
Carefully read what voucher is and how it is different from source document.

OR

Pay-in-slip: This document serves the purpose of providing an evidence that on particular date, a specific amount has been deposited into the bank. When a depositor deposits money in the bank account, he fills up a form provided by the bank containing the information about the date, amount to be deposited and the name of the depositor, etc. The bank clerk signs, stamps the counterfoil of the pay-in-slip and returns it to the depositor.

Question 23.
What is the importance of financial statements for various parties? [4]
Answer:
Following are the parties interested in analysis of financial statements due to the reasons given below:

• (i) Owners or Investors:
  • Profitability
  • Financial position
  • Future prospects or growth potential
• (ii) Management:
  • Short-term and long-term solvency
  • Profitability in relation to turnover investment
  • Liquidity of the business firm
• (iii) Employees:
  • Profitability
  • Cash position
• (iv) Suppliers and other Creditors:
  • Financial position
  • Profitability
• (v) Lenders:
  • Financial Position
  • Profitability
• (vi) Government and their agencies:
  • Profitability
  • Growth
  • Financial position
  • Estimating National Income
• (vii) Researchers:
  • Profitability
  • Growth
  • Financial Position
  • Future prospects. (Any four)

Question 24.
Chhabra and Sons find that overdraft shown by their Cash Book on 31st March, 2013 is ₹ 30,500 but the Pass Book shows a difference due to the following reasons:

• A cheque for ₹ 6,000 drawn in favour of Shyam has not been presented for payment.
• A post-dated cheque for ₹ 1,000 has been debited in the Bank column of the Cash Book but it could not have been presented in the bank.
• Cheques totaling ₹ 12,000 deposited in the bank have not yet been collected.
• A bill for ₹ 5,000 was retired by the bank under a rebate of ₹ 120 but the full amount of the bill was credited in the bank column of the Cash Book.

Prepare a Bank reconciliation statement and find out the balance as per pass book. [4]

Answer:
Bank Reconciliation Statement as on 31 March, 2013

Question 25.
The rough books of M/s Narain and Co. contain the following:
2014
Feb. 1 Purchased from M/s Brown and Co. on credit: 5 gross pencils @ ₹ 100 per gross.
1 gross registers @ ₹ 200 per dozen. Less : Trade Discount @ 10 %.
Purchased for cash from the Stationery Mart 10 gross exercise books @ ₹ 60 per dozen.
Purchased typewriter for office use from M/s Office Goods Co. on credit for ₹ 800.

Feb. 4 Purchased on credit from the Paper Co :
5 Rims of white paper @ ₹ 100 per rim, 10 rims of ruled paper @ ₹ 65 per rim.
Less : Trade Discount @ 10%

Feb. 5 Purchased one dozen ink-pots @ ₹ 10 each from M/s Verma Bros, on credit.
Prepare the Purchase Book of M/s Narain and Co. [4]
Answer:
In the Book of M/s Narain and Ca. Purchases Book

Question 26

• Explain the characteristics (features) of the accounting.
• Explain any three advantages of accounting. [6]

Answer:
(i) Following are the characteristics of the accounting:

(a) Economic events: Accounting requires events to be expressed in terms of money.Transactions should involve transfer or exchange of monetary value between the business entity and outsiders,

(b) Identification, measurement, recording and communication: Accounting is a process of identifying the transactions to be recorded, quantifying the transactions into financial terms, recording the transactions in a systematic manner and communicating the desired information to various interested groups.

(c) Users of information: Accounting is complete when information is communicated to various groups interested in the functioning of business entity.

(ii) Following are the advantages of accounting:
(a) Helps in ascertaining the profit and financial position: Accounting facilitates the preparation of financial statements e.g., Profit and Loss Account and Balance Sheet, which depicts the profit and financial position of the business.

(b) Assists in managing the business: Accounting helps the management in decision-making to run the business efficiently and effectively.

(c) Recording of transactions: A businessman cannot remember all the transactions, how-so ever sharp his memory may be. Therefore, every transaction should be recorded in black and white so that transactions are not missed out and there may not be any misappropriation.

(d) Evidence in the court of law: If the accounts of business are kept properly, according to the principles of accounting, they can be presented in the court of law as necessary documentary evidence.

(e) Correct payment of taxes: Accounting helps in ascertaining the tax liability of the business correctly. Taxation authorities insist that accounts are to be maintained according to the principles of accounting.

(f) Comparative study: Financial statements facilitate inter-period and inter-firm comparisons to detect the strong and weak points of the business. (Any three)

Commonly Made Error
Though the points mentioned were correct but insufficient explanation was given.

Answering Tip
Learn the advantages point wise with proper explanation :

Question 27.
A company writes off depreciation on straight line basis on Machinery at 10% p.a. On 31stMarch, 2013 the position
of Machinery was as under: ₹
Cost of purchases to date 52,590
Depreciation written off to date 25,670
During 2013-14 an addition of ₹ 2,480 was made to machinery. A machine bought in 2009-10 for ₹ 2,800 was sold for ₹ 800 during the year. You are required to show the Machinery Account for the year 2013-14. (Show your workings fully). [6]
Answer:
Dr. Machinery Account Cr.

Question 28.
Rectify the following errors :

• Repairs made on Building for ₹ 1,00,000 were debited to Building A/c.
• Rent paid ₹ 12,000 to Landlord was debited to Landlord A/c.
• Wages paid for installation of Machinery of ₹ 7,000 were debited to Wages A/c.
• Salary paid to Accountant (Mr. Ram) of ₹ 15,000 was debited to Ram A/c.
• ₹ 32,000 paid for purchase of Computer was charged to Office Expenses A/c.
• Amount of ₹ 7,500 withdrawn by proprietor for personal use was debited to Miscellaneous Expenses A/c.
• ₹ 50,000 spent on erection of building was debited to Repairs A/c.
• Sale of old machinery for ₹ 25,000 was passed through day book. [8]

OR

Trial Balance of Mahender did not agree. It showed an excess debit of ₹ 5,000. He put the difference to Suspense Account. He located the following errors :

• Sales Returns Book was overcast by ₹ 7,500.
• Goods returned to Harpreet ₹ 4,000 were recorded through Sales Book.
• Furniture purchased for ₹ 22,000 was posted to Purchases account as ₹ 20,000.
• Goods withdrawn by Mahender for personal use ₹ 1,000 were not recorded in the books.
• Salary paid ₹ 5,000 was debited to Employee’s Personal A/c.
• Purchases Book was undercast by ₹ 500.
• Discount received from Vikas ₹ 100 on paying ₹ 1,250 to him was not recorded.

Give Journal entries to rectify the errors and prepare Suspense Account.
Answer:
In the Books of ………………….
Rectifying Entries

OR

In the Books of Mahender
Journal Entries

Dr. Suspense Account Cr

Part-B [24 Marks]
Financial Accounting-II

Question 29.
Net Profit or Loss is disclosed by ……………… [1]
Answer:
Profit & Loss Account

Question 30.
Which of the following is a use of financial statements?
(A) Ascertain future prospects of the firm
(B) To increase claim in wages, bonus, etc
(C) Ascertain Return on Investment
(D) All of the above [1]
Answer:
(D) All of the above

Question 31.
Ravi has added an accrued income of ₹ 10,000 into the income in Profit & Loss Account. The assets and liabilities side of this Balance Sheet do not tally. Help him in recording the adjustment of accrued income :
(A) Show accrued income on liabilities side of Balance Sheet.
(B) Instead of adding ₹ 10,000, deduct ₹ 10,000 from income in Profit & Loss A/c and then show it on liabilities side of Balance Sheet.
(C) Show ₹ 10,000 on assets side of Balance Sheet also.
(D) Deduct ₹ 10,000 from income in Profit & Loss Account. [1]
Answer:
(C) Show ₹ 10,000 on assets side of Balance Sheet also.

Question 32.
What is the treatment of depreciation in the balance sheet?
Answer:
Deducted from concerned asset in the balance sheet

Question 33.
If interest on drawings is given in trial balance, it will be shown in: [1]
(A) Trading Account
(B) Profit and Loss Account
(C) Balance Sheet
(D) None of these [1]
Answer:
(B) Profit and Loss Account

Explanation: Interest on drawings is an income for the business. So it is nominal account. As it is indirect income, while be shown in credit side of profit and loss Account.

Question 34.
Identify the incorrect statement:
(A) Trading Account is a nominal account.
(B) Only real accounts find place in balance sheet.
(C) Salary is an indirect expense.
(D) None of these [1]
Answer:
(B) Only real accounts find place in balance sheet.

Explanation: Both personal and real accounts find place in the balance sheet.

Question 35.
What is the nature of Profit & Loss A/c? [1]
Answer:
Nominal account.

Question 36.
Write a short note on deferred revenues Expenditure. [3]
Answer:
The expenditure for which payment has been made or a liability has been incurred in the current year, but deferred from being charged against the income of the current year is called deferred revenue expenditure. Such deference is based on the pre-assumption that it will be of benefit over a subsequent period or periods. These are written- off over the period of benefits. For example, a large amount is spent on advertising to launch a new product or to explore a new market.

Read the given passage carefully and answer the Questions that follow:

Financial Statements are just like the report card of the performance of a firm after a specified period of time. These generally include two statements- Income statement and positional statement. The balance sheet contains the assets on one side and liabilities on another side. The Balance of two’ sides (it means assets column and liabilities column) must tally Assets can be categorised into many heads. Liabilities are also categorised on the basis of their payable status.

• Write the components of financial statements.
• Classify the types of Assets.
• State any two features of positional statement. [2]

Answer:
(i) The three components of financial statements are trading Account, profit and loss and Balance Sheet.

(ii)

(iii)

• It is not an account while a statement.
• It reflects the financial condition of the firm

Question 38.
Show the following items in Profit & Loss Account and Balance Sheet:
Trial Balance
As on 31-03-2016

Adjustments:

• Further Bad Debts amounted of ₹ 1,000
• Create a provision for doubtful debts on Sundry Debtors @ 5%.
• Make a provision of discount on Sundry debtors @ 2%.
• You are also required to pass Journal Entries for the above transactions.

OR

Show the treatment of the following items in the Profit & Loss Account and Balance Sheet:

Adjustments:

• There were further bad debts of ₹ 300.
• Make a provision for doubtful debts @ 5%.
• Create Provision for discount on debtors @ 2%. [8]

Answer:
Dr. Profit & Loss Account (Extract) Cr.

Balance Sheet (Extract)

Journal

OR

Profit and Loss Account (Extract)
Dr. for the year ended…. Cr.

Balance Sheet (Extract)as at..........

Calculation of Provision for Doubtful Debts:
5% on 40,000, i.e, ( ₹ 40,300 – ₹ 300) = ₹ 40,000 x 5/100 = ₹ 2,000.

Discount on debtors:
2% on ₹ 38,000, i.e, ₹ 40,300 – ( ₹ 300 + ₹ 2,000) = ₹ 38,000 x 2/100 = ₹ 760.

Commonly Made Error:
Students make mistake while making the treatment for the adjustments for debtors.

Answering Tip:
Carefully understand which items are to be added first and which items are to be deducted.