CBSE Sample Papers For Class 11 Accountancy Mock Paper 1

Q1. Which of the following is an example of contra entry?
a) Cash withdrawn from bank for office use Rs. 15,000
b) Purchased goods for cash Rs. 10,000
c) Sold goods on credit to Manisha Rs.15,000
d) Received cash from Samir Rs. 2,500, allowed him discount of Rs.70

Ans:

a) Cash withdrawn from bank for office use Rs. 15,000
Explanation:
Cash withdrawn from bank for office use Rs. 15,000 In this transaction, cash account is to be debited and bank account is credited. This transaction is entered on both sides of the cash book and the entry is known as contra entry

Q2. Assertion (A)- A journal presents chronological record of transactions.

Reasons (R) – Journal is primary book of account in which transactions are first recorded in chronological order.

a.
(A) is correct but (R) is wrong

b.
Both (A) and (R) are correct, but (R) is not the correct explanation of (A)

c.
Both (A) and (R) are incorrect.

d.
Both (A) and (R) are correct, and (R) is the correct explanation of (A)

Ans:

The correct option is (d).

explanation:

Journal is called a book of original entry because all business transactions are recorded first in this book.

Q3. A firm bought furniture for ₹ 1, 20,000 on 1st April 2020. The firm charges Depreciation at 10% p.a. of the cost every year. The books are closed on 31st March every year. The Depreciation for 31st March 2021 as per the Straight Line Method will be

a) ₹ 12,000

b) ₹ 12,400

c) ₹ 16,000

d) ₹ 20,000

OR

A machine of ₹ 6,000 was sold for ₹ 8,400. Depreciation provision to date was ₹ 800 and the commission paid to the selling agent was ₹ 840 and the wages paid to workers for removing the machine was ₹ 60. Profit from the sale of the machine will be:

a) ₹ 2,400

b) ₹ 2,000

c) ₹ 2,300

d) ₹ 2,500

Ans: a) ₹ 12,000

Explanation: Under SLM (straight line method), the same depreciation is charged from one year to another. Hence, depreciation for the first and consecutive years will be= ₹ 1,20,000 x 10/100 = ₹ 12,000

OR

c) ₹ 2,300

Explanation: Profit on sale of Machinery = Actual amount earned – Value of machinery= (₹8,400 – ₹ 840 – ₹ 60) – (₹ 6,000 – ₹ 800)= ₹ 7,500 – ₹ 5,200= ₹ 2,300

Q4. A product is manufactured in Tamil Nadu and travels through the country before it reaches Delhi, where the buyer or consumer pays tax for it. Which type of GST is discussed here?

(a) CGST

(b) SGST

(c) IGST

(d) a and b both

OR

The goods and services tax is a value-added tax levied on most goods and services sold for domestic consumption. Which of the following statement is NOT correct about GST?

(a)  GST will abolish all the direct tax levied in India.

(b) It will unify the tax structure in India.

(c) It is 0% on essential items including food.

(d) GST is like a last-point retail tax. GST is going to be collected at point of sale.

Ans:

CGST (Central Goods and Service Tax) + SGST (State Goods and Service Tax) are levied on local or intra-state sales.

OR

GST is an indirect tax. It will abolish all the Indirect Tax levied in India. The various taxes that were mandatory earlier are now obsolete. GST is based on the principle of “One Nation, One Tax, and One Market”.

Q5. The petty cash is kept on the Imprest system and the balance at the start of the month is Rs. 2,000. If petty cash expenses during the month were Rs. 1,440, the amount received from the cashier at the start of the next month should be

(a) 560

(b) 1,440

(c) 2,000

(d) 3,440

Ans:

Imprest amount is the amount of money given by the main cashier to the petty cashier in the beginning of a period. At the end of the period, the amount spent by the petty cashier gets reimbursed in such a manner, that he has the same amount of cash in hand in the beginning of the next period.

Q6. Tripathi’s trial balance was showing difference of  ₹ 10,000 (debit side exceeds). While checking the total sales register, he found that the total is overcast by ₹ 4,000. After correction in the sales register what would be the difference in his trial balance.

(a) Debit side exceeds by ₹ 14,000

(b) Debit side exceeds by ₹ 10,000

(c) Debit side exceeds by ₹ 6,000

(d) Credit side exceeds by ₹ 4,000

OR
An amount of  ₹ 10,000 due from Smith, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry will be-

(a)

 (b)

 (c)

 (d)

Ans: To rectify the error sales account will be debited, while suspense account will be credited.

OR

In this case, bad debts recovered account should have been credited, instead, the personal account of Smith was wrongly credited.

Q7. Pankhi Ltd. purchased a machine on 01.01.2019 costing ₹12,00,000, installation expenses incurred were ₹1,00,000. Salvage value after 5 years ₹ 50,000. On 01.07.2021, expenses incurred for repairs on machinery were incurred to the extent of ₹ 20,000. Depreciation is provided under the straight-line method. The rate of depreciation charged is 10%. What will be the annual depreciation?

(a) ₹ 1,70,000

(b) ₹ 1,30,000

(c) ₹ 2,50,000

(d) ₹2,10,000​

Ans:

Cost of machinery            = ₹12,00,000

(+) Installation expenses =₹ 1,00,000

Total cost of machinery= ₹ 13,00,000

Rate of depreciation = 10%

Therefore, annual depreciation = ₹ 13,00,000 X 10%    = ₹ 1,30,000

Note:

1. Since the rate of depreciation is given, hence residual value will not be considered.
2. Repairs on machinery is a revenue expenditure, hence it will not be included in the cost of the asset.

Q8. From the following detail, state the effect of the transaction when balance as per passbook is given.

A cheque of ₹ 2,000 was received from Bhaskaran in March 2021, was recorded in the discount column of the cash book and was not banked.

(a) ₹ 2,000 will be added to overdraft balance as per the passbook

(b) ₹ 2,000 will be deducted from overdraft balance as per the passbook

(c) ₹ 2,000 will be added to overdraft balance as per the cashbook

(d) No change in the overdraft balance as per the passbook

OR

Mukbin Ltd. receives a cheque for ₹ 100 and records it in the cash book, and deposits it on the same day. A statement sent by the bank that day does not show ₹ 100. How is this shown on the bank reconciliation statement?

(a) Uncredited deposit added to the bank statement balance

(b) Uncredited deposit deducted from the bank statement balance

(c) Non-presented cheque added to the bank statement balance

(d) Non-presented check deducted from the bank statement balance

Ans:

​This transaction will not affect the bank reconciliation statement since it has not been recorded in the bank column of the cashbook and also has not been banked.

OR

​It will be added to the bank balance as it has already been added to the cash book.​

Q9. ABC Ltd. has a manufacturing plant in Noida. On 1^st July 2021, ABC Ltd. purchased a machine for Rs. 2,00,000 and spent Rs. 10,000 on its installation. At the time of purchase, it was estimated that the effective commercial life of the machine will be 10 years after which its salvage value will be Rs. 10,000. The machinery is such that the possibility of obsolence is low and do not require much repair expenses with passage of time. The accounts are closed on 31^st March every year.

Which of the following method should be used by ABC Ltd. to charge depreciation?

(a)
Written down value method

(b)
Straight line method

(c)
Reducing balance method

(d)
None of the above

Ans:

The correct option is (b).

explanation:

Under Straight line method, the amount of the depreciation each year remains same unless there is addition to or deletion from the assets.

Q10. ABC Ltd. has a manufacturing plant in Noida. On 1^st July 2021, ABC Ltd. purchased a machine for Rs. 2,00,000 and spent Rs. 10,000 on its installation. At the time of purchase, it was estimated that the effective commercial life of the machine will be 10 years after which its salvage value will be Rs. 10,000. The machinery is such that the possibility of obsolence is low and do not require much repair expenses with passage of time. The accounts are closed on 31^st March every year.

What is the original cost of the asset on which depreciation is to be charged?

(a)
Rs. 2,00,000

(b)
Rs. 10,000

(c)
Rs. 2,10,000

(d)
None of these

Ans:

The correct option is (c).

explanation:

Cost includes all expenses incurred for making the asset ready for use such as freight and installation charges.

Cost = Purchase price + freight and other costs + installation charges

therefore, purchase price  = Rs. 2,00,000

add- installation charges i.e. Rs. 10,000 = Rs. 2,00,000 + Rs. 10,000 = Rs. 2,10,000

hence, Rs. 2,10,000 the original cost of the asset on which depreciation is to be charged.

Q11. Match the following-

The given columns can be correctly matched as-
a) i-a, ii-b, iii-c, iv-d
b) i-b, ii-a, iii-c, iv-d
c) i-b, ii-a, iii-d, iv-c
d) i-d, ii-b, iii-a, iv- c

Ans:

c) i-b, ii-a, iii-d, iv-c Explanation:

Q12. Original cost = Rs. 2,00,000, Life = 5 years, Expected salvage value = Rs. 4,000. Rate of depreciation p.a. =?
a) 19.6%
b) 20%
c) 19.8%
d) 20.8%

Ans:

a) 19.6%
Explanation:
Depreciation in SLM = cost of assets + installation charges – scrap value/ estimated useful life = 2,00,000 – 4,000 / 5 = Rs. 1,96,000/5
= Annual depreciation = 39,200
Rate of depreciation = Annual depreciation × 100 / cost of assets = 39,200 × 100 / 2,00,000 = 19.6%

Q13. The credit balance as per the pass book of Mr Ram was Rs. 65,600. Cheques were issued but were not presented for payment: Rs. 75,800. Cheques deposited by one of the customers of the bank, but wrongly credited in Mr Ram account Rs. 20,600. The balance as per cash book will be:-
a) Rs.30,800 debit
b) Rs.30,800 overdraft
c) Rs.1,20,800 debit
d) Rs.10,400 overdraft

Ans:

b) Rs.30,800 overdraft
Explanation:
Balance as per cash book will be = Rs.65,600 – Rs.75,800 – 20,600 = Rs.30,800 (Overdraft)

Q14. An asset is purchased for ₹ 6,00,000, and if at the time of preparing the final accounts, even its market value is ₹ 4,00,000 or ₹ 10,00,000, yet the asset shall be recorded at ₹ 6,00,000, according to the
a) Accrual convention
b) Business entity concept
c) Historical cost concept
d) Duality concept

Ans: 

c) Historical cost concept
Explanation: According to the Historical cost concept, assets are recorded in the books of account at the prices paid to acquire them, and it is the basis for all subsequent accounting of the assets. The asset is recorded at cost at the time of its purchase but is systematically reduced in value by charging depreciation.

Q15. During the financial year 2020-21, Mihika had cash sales of ₹ 5,85,000 and credit sales of ₹ 2,40,000. Her expenses for the year were ₹ 4,05,000, out of which ₹ 1,20,000 is still to be paid. Find out Mihika’s income for the year 2020-21 following the cash basis of accounting.

a) ₹ 5,40,000

b) ₹ 3,00,000

c) ₹ 2,85,000

d) ₹1,80,000

OR
Which basis of accounting is recognized under the Companies Act, 2013?

a) Cash basis of accounting

b) Accrual basis of accounting

c) Both cash and accrual basis of accounting

d) Hybrid basis of accounting

Ans:

b) ₹ 3,00,000Explanation:

Credit sales ₹ 2,40,000 and outstanding expenses ₹ 1,20,000 will not be considered under cash basis of accounting.

OR

b) Accrual basis of accountingExplanation: The Accrual basis of accounting is recognised by the Companies Act, 2013, while the Cash basis of accounting is not recognised by the Companies Act, 2013.

Q16. Which of the following transactions has the correct effect?

a. Purchase of machinery for cash

b.Capital introduced by proprietor

c. Payment to creditors

d. Purchase of machinery on credit

Ans:

b) Increase in cash}
increase in capital
Explanation:

a)

b)

c)

d)

Q17. Journalise the following:

(1) ₹1,200 paid for income tax of proprietor.

(2) Purchased goods from Samir of ₹80,000 plus IGST @ 12% at 10% Trade Discount and 2% Cash Discount. Paid amount at the time of purchase itself.

(3) Goods worth ₹4,000 were destroyed by fire (Assume No GST)

Ans:

Q18. What are the reasons for differences in the balance of cash book and pass book?

OR

Prepare bank reconciliation statement as on December 31, 2021. On this day the passbook of Mr. Myke showed a balance of ₹20,000.

1. Cheques of ₹4,000 directly deposited by a customer.
2. The bank has credited Mr. Myke for ₹1,100 as interest.
3. Cheques for ₹3,000 were issued during the month of December but of these cheques for ₹1,500 were not presented during the month of December.

Ans:

Balances as per cash book and pass book may differ due to various reasons:

1.The difference in the time of occurrence of the transaction and its recording in the cash book.

2. Transactions recorded by the bank but are not in the knowledge of the customer.

3.Errors and omissions in any of the books.

OR

Q19. How do we rectify the errors which do not affect the Trial Balance?

OR

Rectify the following errors:

i. A return of goods worth ₹5,000 by a customer was taken into stock but no entry was passed in the books.

ii. Outstanding telephone charges of ₹100 omitted to be recorded.

iii. The total of the debit side of expenses account has been cast in excess of ₹150.

Ans: These errors are committed in two or more accounts. Such errors are also known as two-sided errors. They can be rectified by recording a journal entry giving the correct debit and credit to the concerned account. In such cases the entry made previously wrong is to be reversed to nullify the effect and then a new correct entry is made with correct amount. For example Machinery purchased debited to Purchases account. To rectify Machinery account is to be debited now and Purchases account is to be credited.

OR
Journal

Q20. From the following particulars, Prepare a bank reconciliation statement as on September 30, 2021.
(1) Balance as per cash book is ₹35,000.
(2) The cheques from Rajiv ₹18,000 and Rohit ₹9,000 deposited in September but cleared in October.
(3) Bank charged ₹2,000.
(4) A payment of ₹3,500 was made directly by the bank.
(5) A cheque worth ₹12,000 was issued to Raman Lal but not presented for the payment.

Ans:

Q21. Following balances appear in the books of Singh Ltd. as on 1^st April, 2017.
Machinery Account = ₹16, 00,000;
Provision for Depreciation Account = ₹6 20,000.
On 1^st July, 2017, a machinery which was purchased on 1^st April, 2014 for ₹2,40,000 was sold for ₹1,00,000 plus CGST and SGST @ 6% each and on the same date another machinery was purchased for ₹64,000 plus CGST and SGST @ 6% each. The firm charges depreciation @ 15% p.a. on Original Cost Method and closes its books its books on 31^st March every year.
Pass Journal entry for the sale of machinery.

Ans:

Working Notes:

1. Calculation of Gain (Profit)/Loss on Sale of Machinery:

Q22. From the information given below prepare a Trial Balance:

Ans:

Q23. Prepare the Credit Vouchers from the source vouchers of M/s. Bhagat& Co., New Delhi based on the following transactions:

Prepare an accounting equation from the following informations:

Ans:

OR

Q24. On  Jain & Sons purchased a second hand plant costing ₹2,00,000 and spent ₹10,000 on its overhauling. It also spent ₹50,000 on transportation and installation of the plant. It was decided to provide for depreciation @ 20% on written down value. The plant was destroyed by fire on  and an insurance claim of ₹5,000 was admitted by the insurance company. Prepare plant account, accumulated depreciation account and plant disposal account assuming that the company closes its books on December 31, every year.

OR

M/s Singhania and Bros. purchased a plant for ₹5,00,000 on April, 01 2016, and spent ₹50,000 for its installation. The salvage value of the plant after its useful life of 10 years is estimated to be ₹10,000. Record journal entries for the year 2016-17 and draw up Plant Account and Depreciation Account for first three years given that the depreciation is charged using straight-line method if :

1. The books of account close on March 31 every year.
2. The firm charges depreciation to the assets account.

Ans:

Working Note:

Working Notes:

1. Calculation of Depreciation amount:

Q25. The cash book of Mr. Neil showed a balance of ₹10,760 on 31^st December, 2021 at the bank. A comparison of the pass and cash book revealed the following:

• The bank had debited Mr. Neil ₹1,920, the annual premium on his life policy according to his standing instructions and with ₹60 as bank charges.
• The bank has credited Mr. Neil by ₹2,800, the proceeds of a bill.
• Mr. Neil paid in cheques totaling ₹4,200 on December 26, of which those ₹3,120 were collected in December and one for ₹300 was returned as dishonoured, the information of which was received by Mr. Neil on 2^nd January 2021. The rest were collected and credited in January, 2021.
• The cash collection on 31^st December, 2021 totaling ₹1,220 was entered in the cashbook in the bank column on the same day but it was banked on the 2^nd January, 2021.
• In December, 2021 Mr. Neil issued cheques totaling ₹5,740 of which those of ₹1,700 have not been presented by 31^st December, 2021.

Show the corrections to be made in the cash book so as to ascertain the balance to be shown in the Balance Sheet and then prepare the Bank Reconciliation Statement.

Ans:

Q26. Prepare a petty Cash Book on the Imprest System from the following:

Ans:

Q27. Mr. A commenced business on Jan 01, 2021 and purchased goods costing ₹47,500 during the year. A sum of ₹ 2,500 was spent on freight Inwards. On Dec 31, 2021, cost of unsold goods was ₹ 5,000 and  sales during the year were ₹ 65,000. The gross profit earned by firm will be_________.

(a) ₹  10,000

(b) ₹  15,000

(c) ₹  17,500

(d) ₹  20,000

OR

Sundry Debtors on 31st March, 2021 are ₹  20,800. The provision for doubtful debts is to be on debtors at 10% and further bad debts are ₹ 2,000. The provision of discount on debtors is to be made on debtors at 2%. The amount of debtors to be shown on the assets side of the balance sheet will be:

(a) ₹  15,618

(b) ₹  15,600

(c) ₹  16,582

(d) ₹ 16, 920

Ans:

Gross Profit = sales + Unsold stock- Purchases – Freight Inward

= 65,000 + 5,000 – 47,500 – 2,500 = ₹ 20,000

OR
Debtors   20,800;  Less: further bad debts  2,000; Less: Provision for doubtful debts  1,880;  Less: provision for discount on debts 338

Q28.

Find out the value of stock at the end of the year.

(a) ₹ 30,000

(b) ₹ 25,000

(c) ₹ 40,000

(d) ₹ 60,000

Ans:

Cost of goods sold = Sales + Gross loss

= 2,00,000 + 25,000

= 2,25,000

Closing stock = cost of goods sold – (purchases + Other direct expenses + opening stock + lighting)

= 2,25,000 – (1,60,000 + 10,000 + 20,000 + 5,000)

= ₹ 30,000

Q29. X had started a business with ₹ 2,00,000 in the beginning of the year. During the year, he borrowed ₹ 1,00,000 from Y. He further introduced ₹ 2,00,000 in the business. He also gave ₹ 50,000 as a loan to his son. Goods given away as a charity by him were ₹ 20,000. Profits earned by him were ₹ 2,50,000. He also withdraws ₹ 30,000 from the business. His capital at the end of the year would be__________.

(a) ₹ 5,00,000

(b) ₹ 4,00,000

(c) ₹ 6,20,000

(d) ₹ 4,80,000

OR
​If the rate of gross profit on sales is 25% and the cost of goods sold is ₹ 75,000, then the amount of total sales will be _______.

(a)₹ 1,00,000

(b) ₹ 93,750

(c) ₹ 92,150

(d) None of the above​

Ans:

Opening Capita                                  ₹ 2,00,000

Add: Capital Introduced                     ₹ 2,00,000

Add: Profit for the year                      ₹ 2,50,000

Less: Loss for the year                       ₹ NIL   

Less: Drawings                                   ₹ 30,000                                                         

                                                        ——————–

Capital at the end of the year               ₹ 6,20,000                                                          

                                                             ——————-

Loan taken is a liability, and a loan given is an asset that will not affect the capital.

OR
​Sales – Cost of goods sold = Gross Profit

If sales is ₹ 100

Then Gross Profit becomes ₹ 25 (25% of sales)

Cost of Goods sold will be ₹ 75 (₹ 100 – ₹ 25)

Cost of goods sold = 75% of sales

Sales = Cost of goods sold/75%

Sales = ₹ 1,00,000​

Q30. ​Calculate credit sales from the following details:Opening debtors ₹ 3,50,000; Closing debtors ₹ 2,80,000; Cash received from Debtors ₹ 7,80,000; Discount allowed to Debtors ₹ 85,000

(a) ₹ 9,35,000

(b) ₹ 9,80,000

(c) ₹ 8,30,000

(d) None of the above​

Ans:

​Credit Sales = Cash Received + Discount Allowed + Closing Debtors – Opening Debtors  = ₹ 7,80,000 + ₹ 85,000 + ₹ 3,50,000 – ₹ 2,80,000  = ₹ 9,35,000​

Q31. What is the need for adjustments in preparing the Final Accounts?

Ans:

Need for adjustments in preparing the Final Accounts:
1. Expenditure whether paid or not be included,
2. Income whether received or not be included,
3. Expenditure relating to the succeeding years be excluded, and
4. Income relating to the succeeding years is excluded.

Q32. From the following information you are required to ascertain the total sales:

Ans:

Total sales = Cash sales + Credit sales

= ₹56,000 + ₹73,100

= ₹1,29,100.

Note: Bad debts recovered and Provision for discount on debtors do not affect the Total Debtors Account.

Q33. Preparing a Trading Account for the year ending March 31, 2021 From the following balances as at March 31,2021:

Closing Stock as on March 31,2021 was valued at ₹20,000

OR
Differentiate between Capital and Revenue Expenditure.

Ans:

Q34. Kumar, a trader, does not keep proper books of account. However he furnishes you the following particular:

During the year Kumar introduce ₹6,000 as further Capital and withdrew ₹4,000 as Drawings. Write off depreciation on furniture at 10% and on office equipment at 5%.

Prepare a statement showing the Profit and Loss made by him for the year ended 31^st March, 2021.

Ans: STATEMENT OF AFFAIRS

As at March 31,2020

STATEMENT OF AFFAIRS

As at March 31, 2021