Topic: Term 1 Test SD Standard: 11th CBSE

Total Time: 3 Hours 15mins Date: 16/09/2024 Total Marks: 80

1. Goods Receivables remaining unsold or unused in manufacturing of product are called? 1

(a)Receivables (b) Credit sales (c)Stock (d)Assets
2. 1.“Long-term investments are stated at cost, less any provision for diminution (other than temporary) 1
in value.
2.Closing stock are stated at lower cost or market value.” Mention the accounting principle lying in
these 2 statements given.
3. Which of these is the Capital expenditure? 1
1. Wages paid for the repair of the building
2. Wages paid for the whitewashing of building
3. Wages paid for the construction of the building
4. Wages paid for the cleaning of the building
(a) Only A is correct (b) Only B is correct (c) Only D is correct (d) Only C is correct
4. 1. According to which of the following concepts, in determining the net income from business, all costs 1
which are applicable to the revenue of the period should be charged against their revenue?
2. (a) Matching Concept (b) Money Measurement Concept
(c) Cost Concept (d) Dual Aspect
5. Accrual Basis of Accounting 1
(a) does not give a true and fair view of profit and financial position.
(b) gives a true and fair view of profit and financial position.
(c) may or may not give a true and fair view of profit and financial position.
(d) None of the above
6. Capital of business is Rs. 3,00,000, Liabilities are Rs. 50,000, Loss Rs. 70,000, then Asset will be ___. 1
(a) 4,20,000 (b) 3,20,000 (c) 3,50,000 (d) 2,80,000
7. Which of the following is the Limitation of Accounting? 1
(a) Provides information to users (b) Facilitates management
(c) Only quantitative information (d) All of the above
8. Interest received in advance is: 1
(a) Income (b) Liability (c) Asset (d) None of these
9. Voucher is prepared for 1
(a) Cash and credit purchases (b) Cash and credit sales
(c) Cash received and paid (d) All of these
10. The journal entry to record purchase of equipment for Rs. 2,00,000 cash and a balance of Rs. 8,00,000 1
due in 30 days include:
(a)Debit equipment for Rs. 2,00,000 and Credit cash Rs. 2,00,000.
(b)Debit equipment for Rs. 10,00,000 and Credit cash Rs. 2,00,000 and creditors Rs. 8,00,000
(c)Debit equipment Rs. 2,00,000 and Credit debtors Rs. 8,00,000.
(d)Debit equipment Rs. 10,00,000 and Credit cash Rs. 10,00,000.
11. Which account will be debited in the following transaction: 1
Paid Income tax by Cheque Rs.12,000.
(a)Income Tax A/c (b)Drawings A/c (c)Bank A/c (d)Cash A/c
12. Mohan maintains Petty cash book on the Imprest System. The imprest amount is every month Rs. 1
5,000 per month 1st September 2022 balance appears Rs. 1,449. How much cash reimbursement
will he receive?

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13. Assertion (A) Human resources in a business firm are important but are not reflected in the financial 1
statements of the firm.
Reason (R) Transactions should be recorded from view point of business and not from the view point
of businessman/owner.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion.
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of A.
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false
14. Opening capital Rs. 20,000, Closing Capital Rs. 10,000, profit during the year Rs. 5,000, Additional 1
Capital introduced Rs. 1,000, Drawings will be _________.
15. Point out in which subsidiary book the following transaction will appear with the reason thereof: 1
(a)Endorsed Ram’s Cheque to Mohan (b)Deposited Cash into bank
16. Subsidiary books are books of original entry. True/False 1
17. Purchase of office furniture for Rs. 1,200 was debited to General Expenses Account. It is 1
(a)a Clerical error (b)an error of principle
(c)error of commission (d)None of these
18. On inter - state purchase of goods, which of the following is levied: 1
(a) Input IGST A/c (b) Input CGST A/c and Input SGST A/c
(c) Input IGST A/c and Input CGST A/c (d) Input IGST A/c and Input SGST A/c
19. On which side will the decrease in the following accounts be recorded? Also, state the nature of 3
the account:
(i) Cash (ii) Bank Overdraft
(iii) Outstanding Salary paid (iv) Outstanding Rent
(v) Prepaid Insurance (vi) Mohan, Proprietor of the business
20. Raja started a business on 1st April 2015 with a capital of Rs. 1,00,000 and a loan of Rs. 50,000 3
borrowed from Ram. During 2015-16, he had introduced additional capital of Rs. 50,000 and had
withdrawn Rs. 30,000 for personal use. On 31st March 2016, his assets were Rs. 3,00,000. Find out his
capital as of 31st March 2016 and profit made or loss incurred during the year 2015-16.
21. Gayatri, a Chartered accountant earned ₹ 12,00,000 during the financial year 2019-20. Out of which, 3
she received ₹ 10,50,000. She incurred an expense of ₹ 5,10,000 of which ₹1,20,000 are outstanding.
She also received her fees relating to previous year ₹ 1,35,000 and also paid ₹ 60,000 expenses of last
year. Find out Gayatri's Profit for 2019-20 following the cash basis of accounting.
22. Accounting provides information about the profitability and financial soundness of a concern. In 3
addition, it provides various valuable information also, however accounting has certain
limitations. Explain any three of such limitations.
23. Write a Short note on following: 3
(a)Going Concern (b)Conservatism Principle
24. Define the followings terms: 3
(a) Business Transaction (b) Current Asset (c) Cash Discount
25. Journalise the following transactions in the books of Gurman of Delhi: 4
(i)Sold goods to Krishna of Delhi at the list price Rs.20,000 less trade discount 10% add CGST and
SGST @ 9% each., and allowed cash discount 5%. He paid the amount immediately.
(ii)Supplied goods costing Rs.6,000 to Mohan of Kolkata issued invoice at 10% above cost less 5%
trade discount plus IGST @ 18%.
26. Prepare Accounting Equation. 4
(a) Business started by introducing Rs. 1,00,000 cash and Rs. 10,000 goods.
(b)Furniture purchased Rs. 30,000; 60% payment done in cash.
(c) Sold goods on credit costing Rs. 6,000 at a profit of 20%.
(d) Depreciation @10% p.a. on furniture
(e) 50% of Goods sold on credit returned by customer.

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27. Trial balance of Anant Ram did not agree. It showed an excess credit of Rs. 16,000. He put the 4
difference to suspense account. Subsequently the following errors were located:
i. Cash received from Mohit Rs. 4,000 was posted to Mahesh as Rs. 1,000.
ii. Cheque for Rs. 5,800 received from Arnav in full settlement of his account of Rs. 6,000, was
dishonoured. No entry was passed in the books on dishonour of the cheque.
iii. Rs. 800 received from Khanna, whose account had previously been written off as bad, was
credited to his account.
iv. Credit sales to Manav for Rs. 5,000 was recorded through the purchases book as Rs. 2,000.
v. Purchases book undercast by Rs. 1,000.
vi. Repairs on machinery Rs. 1,600 wrongly debited to Machinery account as Rs. 1,000.
vii. Goods returned by Nathu Rs.3,000 were taken into stock. No entry was recorded in the
books.

28. Journalise the following entries: 4

(a)Sold goods to Mayank of Rs. 1,00,000, payable 25% by cheque at the time of sale and balance after 30
days of sale.
(b)Received a first and final dividend of 60 paise in a rupee from the Office Receiver of Rajan, who owed
us Rs. 1,000.
(c)Charge interest on drawings Rs. 1,500.
(d)Sold goods costing Rs. 40,000 to Anil for each at a profit of 20% on sales less 20% TD and paid cartage
Rs. 100, which is not to be charged from customer.
29. One of your clients, Mr. Singhania has asked you to finalise his accounts for the year ended 31st 4
March, 2020. Till date, he himself has recorded the transactions in books of accounts. As a basis for
audit, Mr. Singhania furnished you with the following statement.
Particulars Dr. Balance (Rs.) Cr. Balance (Rs.)
Singhania's Capital 1,556
Singhania's Drawings 564
Leasehold premises 750
Sales 2,750
Due from customers 530
Purchases 1,259
Purchases return 264
Loan from bank 256
Trade payables 528
Trade expenses 700
Cash at bank 226
Bills payable 100
Salaries and wages 600
Inventories (1.4.2019) 264
Rent and rates 463
Sales return 98
5,454 5,454
The closing inventory on 31st March, 2020 was valued at Rs. 574. Mr. Singhania claims that he has
recorded every transaction correctly as the trial balance is tallied. Prepare a correct trial balance.
30. Pass the necessary Journal Entries: 6
(a) Assets: Cash Rs. 20,000, Stock Rs. 80,000,
Liabilities: Creditors Rs. 30,000
(b) Sold goods to Mohan for Rs. 50,000. TD @ 10% and CD @2% if cash is paid immediately. 50%
payment was done immediately by cheque, 1/4th payment was done by UPI.
(c) Cheque received from Mohan was endorsed to Sohan for full settlement. (A creditor for Rs.
26,000).
(d) Interest on Capital to be charged @10% on opening capital.

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 (e) Salary of Rs. 10,000 is yet to be paid.
(f) Mohan became insolvent. He could pay only 40 paise in a rupee of the outstanding amount.
Also, prepare Ledger of Cash A/c and Mohan A/c.
31. Prepare Double Column Cash Book for the month of June 2017: (No need for Journal Proper) 6
Date Particulars
June 2017
1 Cash in hand Rs. 10,500; Bank (credit) Rs. 8,400.
5 Sold goods to Mohan for Rs. 20,000 less trade discount 10%.
9 Mohan was offered 5% cash discount to pay by 10th June. He paid only 60% of the
amount and availed offer by paying through UPI.
11 Issued cheques to pay household expenses Rs. 2,000 and income tax Rs. 1,200.
13 Withdrew Rs. 2,000 from bank for office use.
15 Cheque received from Mohan for remaining amount.
18 Cheque received from Mohan was endorsed to Sohan.
20 Cheque received from Kumar Rs.5000, was banked the same day.
25 Paid Rs. 500 for petty expenses.
29 Cheque of Kumar was dishonored and bank debited our account by Rs. 300.
(Charges to be borne by Kumar)
30 Deposit the cash balance in excess of Rs. 4,000 in bank.
32. Prepare Purchases Book of Super Garments, Faridabad, from the following transactions: 6
2019
May 3 Bought from Fancy Stores, Patel Nagar, Delhi
100 Shirts @ Rs. 150 each
50 Trousers @ Rs. 400 each
Less: 15% TD, GST @ 5%
May 11 Purchased from Ajanta Garments, Delhi
40 Gowns @ Rs. 500 each
100 Shirts silk @ Rs. 250 each
Less: 5% TD Plus GST @ 5%
May 17 Bought 50 shirts @ Rs. 200 each
from Vishal Mega Marts, Delhi for cash plus GST @ 5%
May 23 Bought from New Light Garments, Jaipur
50 Trousers @ Rs. 500 each
100 T-Shirts @ Rs. 200 each
Less: 10% TD Plus GST 5% & Freight charges Rs. 400
33. Pass the necessary Journal Entries (with GST) (Treat each case separately): 6
(a) Goods returned to Raghav of Rs. 15,000. These goods were purchased by paying CGST & SGST of
6% each.
(b) Sold goods to Mohan for Rs. 50,000 along with IGST @ 12%. TD @ 10% and CD @2% if cash is paid
immediately. 50% payment was done immediately by cheque.
(c) Paid telephone bill of Rs. 5900, including GST @ 18%.
(d) Bought machinery from Kamal Motors for Rs. 25,000. Wages paid for Installation Rs. 1,500. IGST
to be charged @ 18% on all permissible transactions.
(e) 50% of goods purchased for Rs. 10,000 (along with IGST @12%) was distributed as free sample
and remaining were taken over by proprietor.

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 Answer Key

1. (c)Stock 1
2. 1.Long term – Historical cost principal. 1
2.Prudence/Conservatism
3. (d) Only C is correct 1
4. (a)Matching Concept 1
5. (b) gives a true and fair view of profit and financial position. 1
6. (d) Rs.2,80,000 1
7. (c) Only quantitative information 1
8. (b) Liability 1
9. (d) All of these. 1
10. (b)Debit equipment for Rs. 10,00,000 and Credit cash Rs. 2,00,000 and creditors Rs. 8,00,000 1
11. (b)Drawings A/c 1
12. Rs. 3,551 1
13. (b) Both Assertion (A) and Reason (R) is correct, Reason (R) is not correct explanation of Assertion (A) 1
14. Rs.16,000 1
15. (a)Journal Proper 1
(b)Cash Book
16. True 1
17. (b)error of principle 1
18. (a) Input IGST A/c 1
19. (i) Credit (Asset); (ii) Debit (Liability); (iii) Debit (Liability); 3
(iv) Debit (Liability); (v) Credit (Asset); (vi) Debit (Capital).
20. Closing Capital = Closing Assets - Closing Liabilities 3
= 3,00,000 - 50,000
= Rs. 2,50,000
Profit = Closing Capital + Drawings- Additional capital - Opening Capital
= 2,50,000 + 30,000 - 50,000 - 1,00,000
= Rs. 1,30,000
21. Profit as per Cash basis: 3
Income as per cash basis (i) :
Cash Received for current year: Rs.10,50,000
Fee received for last year: Rs. 1,35,000
Rs. 11,85,000

Expense as per cash basis (ii) :

Expense incurred Rs. 5,10,000
Less: Expense outstanding (Rs. 1,20,000)
Add: Expenses paid for last year Rs. 60,000
Rs. 450,000

(i-ii) = Rs.7,35,000
22. Accounting ignores the Qualitative Elements: It records only those transactions which can be 3
expressed in terms of money i.e., it does not records transaction which are not measured
in terms of money for eg: Skills, honesty, quality of management & staff, industrial
relations and public realisation are ignored.

Accounting may lead to window dressing: It may be affected by window dressing i.e.,
manipulation in the accounts to present a better position of the business from its actual
position. It is not free from personal bias and personal judgment of the person preparing the
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 accounts.

Unrealistic Information: It may not be realistic since accounting is prepared on the basis of
concepts and principles. For e.g.: According to cost principle, fixed asset is recorded at
purchase price and not at market value.

Accounting is not fully exact: Accounting is not fully exact in spite of the fact that most of
transactions are recorded on basis of evidence, yet some are recorded on basis of
estimates. for examples, estimating the useful life of an asset, provision for doubtful debts.

Accounting ignores the effect of money level changes: Accounting assumes that value of money
remains stable and change in the value is not considered, so accounting information provided
without considering effects of inflation will not show the correct financial results.
23. Going concern 3
Going concern assumption states that the business will continue its operations for a long period of
time and willnot liquidate in near future. It is because of this assumption that we differentiate
between assets and expenses.All those outflows the advantage of which is received for more than
one year is classified as assets under this assumption and remaining as expenses. Machine is
purchased for Rs. 50,000 having an estimate life span of 5 years.
Depreciation on year basis = 50,000 / 5
= 10,000 per annum.

Conservatism
This principle is described using a phrase
“Do not anticipate the profits, but make provision for all the possible losses”
This principle ensures that financial statements do no paint a better picture than what it
actually is.This principle prescribes that anticipated losses and expenses should be
accounted.

The Drawback of this principle is -

It will result in overstatement of liabilities which may not depict a true and fair view of the state of
affairs of thebusiness.

This principle needs to applied with caution and care so that the results reported are not distorted.
Closing Stock is valued at lower of cost or net realizable value (market value) or making provision for
doubtfuldebts on debtors.

24. (a) Business Transactions: The term “Business Transaction” means a financial transaction or 3
economic event entered into by two parties.
 In other words, it is an agreement between two parties involving transfer or exchange
of Goods or services in terms of money or money’s worth.
 Example: Sales of goods purchase of goods, payment of salary etc.

(b) The assets which are held by the entity with the purpose of converting them into cash
within a short period of time i.e., one year. E.g., Cash, Stock, Bill Receivable etc.

(c) Cash Discount : The discount allowed for timely payment of due amount. It is recorded in the
books of both the parties. Acts as an incentive to encourage prompt payments

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25. 4

26. ASSETS LIABILITIES CAPITAL 4

Cash Goods Furniture Debtors Creditor Capital

1,00,000 10,000 1,10,000

-18,000 30,000 12,000
-6,000 7,200 1,200
-3,000 -3,000
3000 -3,600 -600
82,000 7.000 27,000 3,600 12,000 1,07,600
27. 4

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28. Date Particulars L.F. Debit Credit 4
Amount Amount
(Rs.) (Rs.)
(i) Bank A/c Dr. 25,000
Mayank A/c 75,000
To Sales A/c 1,00,000
Goods sold party through cheque and party
through credit
(ii) Cash A/c Dr. 600
Bad Debts A/c 400
To Rajan A/c 1,000
First and final dividend received from Rajan
in full settlement of his debt
(iii) Drawings A/c Dr. 1,500
To Interest on Drawings A/c 1,500
Interest on drawings charged
(iv) Cash A/c Dr. 40,000
To Sales A/C 40,000
(Goods sold to Anil)
Cartage A/c Dr. 100
To Cash A/c 100
(Cartage Paid)
29. Particulars Dr. Balance (Rs.) Cr. Balance (Rs.) 4
Singhania's Capital 1,556
Singhania's Drawings 564
Leasehold premises 750
Sales 2,750
Due from customers 530
Purchases 1,259
Purchases return 264
Loan from bank 256
Trade payables 528
Trade expenses 700
Cash at bank 226
Bills payable 100
Salaries and wages 600
Inventories (1.4.2019) 264
Rent and rates 463
Sales return 98
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 5,454 5,454
30. (a) Cash A/c Dr. 20,000 6
Stock A/c Dr. 80,000
To Creditors 30,000
To Capital 70,000
(Being Opening entry passed)

(b) Cheque in hand A/c Dr. 22050

Bank A/c Dr. 11025
Discount Allowed Dr. 675
Mohan A/c Dr. 11250
To sales 45000

(c) Sohan A/c Dr. 26000

To Discount Received 3850
To Cheque in hand 22050

(d) Int. on capital Dr. 7000

To capital 7000

(e) Salary A/c Dr. 10000

To outstanding salary 10000

(f) Cash A/c Dr. 4500

Bad Debt A/c Dr. 6750
To Mohan A/c 11250

Dr. Cash A/c

Cr.
Date Particulars J.F. ₹ Date Particulars J.F. ₹
Bal b/d 20,000 Bal c/d 24,500
Mohan 4,500

24,500 24,500

Dr. Mohan A/c

Cr.
Date Particulars J.F. ₹ Date Particulars J.F. ₹
To Sales 11,250 By Cash 4500
By Bad Debt 6750

11,250 11,250
31. Cash Book 6
Date Particulars LF Cash Bank Date Particulars LF Cash Bank
June'17 June'17
To balance
1 b/d 10,500 1 By balance b/d 8,400

9 To Mohan 10,260 11 By drawings 3,200

13 To bank C 2,000 13 By cash C 2,000

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 By Petty
20 To Kumar 5,000 25 expense 500

29 By Kumar 5,300

30 To Cash C 8,000 30 By Bank C 8,000

30 By Balance c/d 4,000 4,360

12,500 23,260 12,500 23,260

32. M/S Super Garments, Farizabaad 6
Purchase Book
Date Particular Inv. L.F. Details Cost Input Input Input Freight Total
No. (Rs.) (Rs.) CGST SGST IGST charges
(Rs.) (Rs.) (Rs.)
2019
3 Fancy stores,
May Delhi
100 shirts @ 15,000
Rs. 150 each
50 trousers @ 20,000
Rs. 400 each
35,000
Less: 15% (5,250)
trade
discount
29,750
Add: IGST @ 1,488
5%
31,238 29,750 - - 1,488 - 31,238

11 Ajanta
May Garments,
Delhi
40 Gowns @ 20,000
Rs. 500 each
100 shirts @ 25,000
Rs. 250 each
45,000
Less: 5% (2,250)
Trade
discount
42,750
Add: IGST @ (2,137)
5%
44,887 42,750 - - 2,137 - 44,887
2019
May New light
23 Garments
Jaipur
50 trousers @ 25,000
Rs. 500 each

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 100 + shirts 20,000
@ Rs. 200
each
45,000
Less: Trade (4,500)
discount 10%
40,500
Add: Freight + 400
Charges
40,900
Add: IGST 5% 2,045
42,945 40,500 - - 2,045 400 42,945
1,13,000 5,670 400 1,19,070
33. (a) Raghav A/c Dr. 16800 6
To Purchase Return 15000
To Input CGST 900
To Input SGST 900

(b) Mohan A/c Dr. 25200

Cash A/c Dr. 24696
Discount Allowed A/c Dr. 450
To Sales 45,000
To Output IGST 5346

(c) Telephone Bill A/c Dr. 5000

Input CSGT A/c Dr. 450
Input SGST A/c Dr. 450
To Cash 5900

(d) Machinery A/c Dr. 26,500

Input IGST A/c Dr. 4,500
To Kamal Motors 29,500
To Cash 1,500

(e) Drawings A/c Dr. 5600

Advertisement A/c Dr. 5,600
To Input IGST A/c 1200
To purchases 10000
OR
(a) Cash A/c Dr. 20,000
Stock A/c Dr. 80,000
To Creditors 30,000
To Capital 70,000
(Being Opening entry passed)

(b) Cheque in hand A/c Dr. 22050

Bank A/c Dr. 11025
Discount Allowed Dr. 675
Mohan A/c Dr. 11250

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 To sales 45000

(c) Sohan A/c Dr. 26000

To Discount Received 3850
To Cheque in hand 22050

(d) Int. on capital Dr. 7000

To capital 7000

(e) Salary A/c Dr. 10000

To outstanding salary 10000

(f) Cash A/c Dr. 4500

Bad Debt A/c Dr. 6750
To Mohan A/c 11250

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