INDIA INTERNATIONAL SCHOOL, MANGAF-KUWAIT

PRE-ANNUAL EXAMINATION (2024-25)

CLASS-XI
SUBJECT: ACCOUNTANCY - 055
Max Marks: 80 Date:
Time: 3 hrs No. of pages: 11
SET – 1
NAME__________________________________ CLASS___________ SEC____
………………………………………………………………………………...

GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. Question no.’s 1 to 20 carries 1 mark each.
3 Question no.’s 21 to 26 carries 3 marks each.
4. Question no.’s 27 to 29 carries 4 marks each.
5. Questions no.’s 30 to 34 carrying 6 marks each.
6. There is no overall choice. However, an internal choice has been provided in 7
questions of one mark, 2 question of three marks, 1 question of four marks and 2
question of six marks.
SECTION – A
Each question carries 1 mark
1. When a trader sells goods for cash, he gives a document containing the
details regarding the item, quantity, rate and total price called as
……………………
a) Cash memo b) Credit memo c) Debit note d) None of these.
2. “Allocation of cost of fixed asset over its useful life” is best description
of ….
a) Depletion b) Depreciation c) Amortisation d) Obsolescence.
3. Which of the following is not a qualitative characteristic of accounting
information?
a) Reliability. b) Understandability. c) Comparability. d) Materiality.
4. The nature of accrued income is ……….
a) Revenue. b) Liability. c) Expenses. d) Asset.
5. IFRS are based on ……..
a) Historical cost. b) Fair value. c) Both historical cost and fair value.
d) None of these.
6. Accrual Basis of Accounting recognizes……
a) Outstanding and Prepaid Expenses.
b) Accrued Incomes and Incomes Received in Advance.
c) Both (a) and (b).
d) None of the above.
7. i) Payment to creditor means
 a) Increase in asset and decrease in liability.
b) Decrease in asset and decrease in liability.
c) Decrease in asset and increase in liability.
d) Increase in asset and increase in liability.
OR
ii) Bad Debts earlier written off and now received are credited to
a) Bad Debts A/c.
b) Bad Debts Recovered A/c.
c) Miscellaneous Income A/c.
d) Debtors A/c.
8. Sundry Creditors Account is a
a) Revenue Account.
b) Capital Account.
c) Liability Account.
d) None of these.
9. Invoice is a source voucher for seller of goods
a) For cash sales.
b) For credit purchases.
c) For credit sales.
d) For cash purchases.
Read the following hypothetical situation and answer questions No.10
to 12 on the basis of the given information.
Mr. Manik Chand of New Delhi entered into the following transactions
charging CGST and SGST @ 6% each:
Feb.5 - Goods purchased from R. Mukerjee of Kolkata of the list price of
INR 2,00,000 less 15% trade discount.
Feb.8 - Goods withdrawn by Mr. Manik Chand for his personal use INR
15,000.
Feb.10 - Goods returned to R. Mukerjee of the list price of INR 10,000.
Feb.25 - Rent of INR 30,000 paid by cheque.
10. On purchase of goods from Mr. R. Mukarjee on Feb 5:
a) Input CGST and input will be debited by INR 10,200 each.
b) Output CGST and output SGST will be credited by INR 20,200 each.
c) Input IGST will be debited by INR 24,400.
d) Output IGST will be credited by INR 24,400.
11. On goods withdrawn by Manik Chand for personal use on Feb 8:
a) Drawings A/c will be debited by INR 15,000.
b) Input CGST and Input SGST will be debited by INR 900 each.
c) Purchases A/c will be credited by INR 15,000.
 d) Output CGST and output SGST will be credited by INR 900 each.
12. For payment of rent on Feb 25:
a) Input IGST will be debited by INR 3,600.
b) Output IGST will be credited by INR 3,600.
c) Output CGST and output SGST will be credited by INR 1,800 each.
d) Input CGST and Input SGST will be debited by INR 1,800 each.
13. A sole trader took goods costing Rs.1,000 from stock from his own use.
The normal selling price of the goods is Rs.1,500. Which of the following
Journal entries would correctly record this?
a) Dr. Drawings A/c ad Cr. Purchases A/c by Rs.1,000.
b) Dr. Drawings A/c and Cr. Sales A/c by Rs.1,500.
c) Dr. Drawings A/c and Cr. Purchase A/c by Rs.1,500.
d) Dr. Sales A/c and Cr. Drawings A/c by Rs.1,000.
14. Cost of goods sold = __________ +__________
15. Assertion: Only financial transactions are recorded in accounting.
Reasoning: Events or transactions, which can be expressed in terms of
money, are recorded in the books of accounts.
a) Both A and R are correct, and R is the correct explanation of A.
b) Both A and R are correct, and R is not the correct explanation of A.
c) A is correct, but R is incorrect.
d) A is incorrect, but R is correct.
16. If Closing Stock appears in the Trial Balance then it will be appearing in:
a) Trading a/c b) Profit and Loss a/c c) Balance Sheet d) Trading a/c and
Balance Sheet
17. Following information is taken from the Trial Balance of a business:
Sales: Rs.1,00,000; Purchase: Rs.60,000; Wages: Rs.7,000; Closing stock
was Rs.3,000 more than opening stock. What was the Gross Profit?
a) Rs.30,000 b) Rs.33,000 c) Rs.36,000 d) Rs.40,000
18. The correct sequence for preparation of Final Accounts is:
1. Preparation of Trial Balance.
2. Balancing of Accounts.
3. preparation of Annual Financial Statements.
4. Passing Adjusting entries.
Select the correct answer from the code given below:
a) 4, 2, 1, 3
b) 2, 4, 3, 1
c) 2, 1, 4, 3
d) 4, 2, 3, 1
19. Net Profit of a firm before charging manager’s commission is Rs.21,000. If
a manager is entitled to 5% commission on net profit after charging such
commission, what is the commission payable to the manager?
a) Rs.1,050
b) Rs.1,000
c) Rs.950
d) None of the above
Ans: (b) Rs.1,000 [commission payable to the manager = (21,000 x
5)/105]
20. ___________ is a statement prepared to know profit earned or losses
incurred during the year on the basis of statement of Affairs and other
information available.
a) Incomplete Records
b) Statement of Affairs
c) Statement of Profit & Loss
d) None of the above
SECTION – B
Each question carries 3 marks
21. Which financial statements are prepared under Ind-AS?
ANS: Financial Statements prepared under Ind-AS include:
i. Statement of Financial Position;
ii. Statement of Comprehensive Income;
iii. Statement of Changes in Equity;
iv. Statement of Cash Flow; and
v. Notes and Significant Accounting Policies.
22. Prepare the Credit Vouchers from the source vouchers of M/s Ram Lal &
Co., New Delhi based on the following transactions:
2023
April 5 Sold goods for cash vide Cash Memo No.64 12,000
April 26 Sold old typewriter for cash vide
Cash receipt No.344 300

ANS:
M/S RAM LAL & Co.
……………………
...…..…………….
New Delhi
 Voucher No. …. Date: 5.4.2023
Amount
Credit: Sales A/c 12,000
(Amount of Cash Sales vide Cash Memo No.64)
12,000
Sd/- Sd/-
Manager Accountant

M/S RAM LAL & Co.

……………………
...…..…………….
New Delhi

Voucher No. …. Date: 26.4.2023

Amount
Credit: Typewriter A/c 300
(old typewriter sold for Cash vide Cash Memo
No.344)
300
Sd/- Sd/-
Manager Accountant

23. Pass Journal entries for the following:

i. Interest due but not received Rs.4,000.
ii. Salaries due to staff Rs.25,000.
iii. Out of the rent paid this year, Rs.2,000 relates to the next year.
iv. Provide 10% depreciation on furniture costing Rs.5,000.
ANS: JOURNAL
DATE PARTICULARS L.F Dr. (Rs.) Cr. (Rs.)
I Accrued interest A/c Dr. 4,000
To interest A/c 4,000
(interest due not received)
Ii Salaries A/c Dr. 25,000
To Outstanding Salaries A/c 25,000
(Salaries due to staff)
Iii Prepaid Rent A/c Dr. 2,000
To Rent A/c 2,000
(Rent paid in advance)
 Iv Depreciation A/c (10% of 500
Rs.5,000) Dr. 500
To Furniture A/c
(Depreciation provided on
furniture)

24. From the following information, calculate capital at the beginning:

Capital at the end of year 4,00,000
Drawings made during the year 60,000
Fresh capital introduced during the year 1,00,000
Profit of the current year 80,000
Ans Capital at the beginning of the year 2,80,000

25. a) Cost of a machine is Rs.4,20,000 with salvage value Rs.20,000. What

is the depreciation amount for second year as per written down value
method. Charge depreciation @ 10% per annum.
Ans: a) Dep for 2nd yr = Rs. 37,800
Or
b) A company bought a machine for Rs.90,000 on credit. Another Rs.10000
is spent on its installation. If the estimated useful life is 5 years and scrap
value at the end was Rs. 5000. Calculate the amount and rate of
depreciation.
Ans: b) Dep = Rs. 19000, Rate of dep = 19%
26. Journalize the following Transactions in the books of Kapil, Delhi.
1. Telephone charges Rs 4720 (including GST @ 18%)
2. Income Tax Rs 12000 paid by cheque
3. Goods returned to Sohan, Haryana Rs 30,000 which was purchased @
18% GST extra.
Ans: 1. Telephone charges a/c Dr 4000
Input CGST a/c Dr 360
Input SGST a/c Dr 360
To Bank a/c 4,720
(Telephone charges paid along with GST)
2. Drawing a/c Dr 12,000
To Bank a/c 12,000
(Income Tax paid by cheque)
3. Sohan a/c Dr 35,400
To Purchase Return a/c 30,000
To Input IGST a/c 5,400
(Goods returned to Sohan)
 SECTION – C
Each question carries 4 marks

27. a) On 1st April, 2020 the position of Bhargav Bros., Delhi was as follow:
Cash in Hand Rs.6,000, Cash at Bank Rs.25,600, Stock of Goods Rs.9,000,
Machinery Rs.45,000, Furniture Rs.18,000, Abdul Rs.20,500 (Debtor), Loan
Rs.50,000, Amit Rs.6,700 (Creditor).
Pass the Opening Journal entry.
OR
From the following particulars of Anil & Co. prepare a bank reconciliation
statement as on August 31, 2023.
1. Balance as per the cash book Rs.54,000.
2. Rs.100 bank incidental charges debited to Anil & Co. account, which is
not recorded in cash book.
3. Cheques for Rs.5,400 is deposited in the bank but not yet collected by the
bank.
4. A cheque for Rs. 20,000 is issued by Anil & Co. not presented for
payment.
Rs. Rs.
Ans: Balance as per cash book 54,000
Cheques issued but not presented for payment 20,000
Cheques deposited but not credited by the bank 5,400
Bank incidental charges debited by the bank 100
Balance as per passbook 68,500
Rs.74000 74000
28. Following is extracted from the Trial Balance of Mr. Badal as on 31st,
March 2023.
Trial Balance
Particulars Debt (Rs) Credit (Rs)

Sundry Debtors 91,000

Bad debts 3,000
Provision for bad debts 5,000
Additional Information:-
(a) Write off further bad debts Rs. 1000
(b) Provide for provision for bad and doubtful debts @ 5% p.a on
Sundry Debtors
(c) How the items will appear in final accounts as on 31st, March
2023.
 Ans: a) Profit & Loss Account (Dr. side)
Bad Debt 3,000
Add Further Bad Debt 1,000
Add New Provision 4,500
Less Old Provision (5,000)
3,500
b) Balance Sheet(Asset side)
Debtor 91,000
Less Further Bad Debt (1,000)
Less New Provision (4,500)
85,500
29. Enter the following transactions in a simple cash book for December 2014:
Rs.
01 Cash in hand 12,000
05 Cash received from Bhanu 4,000
07 Rent Paid 2,000
10 Purchased goods Murari for cash 6,000
15 Sold goods for cash 9,000
18 Purchase stationery 300
22 Cash paid to Rahul on account 2,000
28 Paid salary 1,000
30 Paid rent 500
Ans. Cash in hand Rs. 13,200
SECTION – D
Each question carries 6marks
30. From the following Trial Balance and additional information given in
respect of M/s. Kalyan Traders, prepare Trading and Profit and Loss
account for the year ended 31st March , 2023.
Trial Balance as on 31st March, 2023
Particulars Amounts Rs. Particulars Amounts Rs.
Opening Stock 15,000 Capital 80,000
Cash 15,800 Creditors 24,000
Wages 27,000 Loan 23,000
Drawings 11,000 Sales 1,82,900
Debtors 25,500 Purchases returns 3,000
Purchases 1,40,300 Discount 1,900
Land and Building 50,000 Bills payable 5,200
Sales returns 3,400
Salary 12,500
 Bad debt 1,200
Insurance 6,800
Bills receivable 11,500
Total 3,20,000 3,20,000
Additional Information:
(a) Salary outstanding Rs.1,000.
(b) Provide 5% on debtors for provision for doubtful debts.
(c) Insurance prepaid Rs.2,500.
(d) Depreciation on Land and Building @ 5%.
(e) Closing stock was Rs.14,200.

Ans : Gross Profit: Rs.14,400

Net Loss: Rs. 6,475
Balance sheet total : Rs.1,15,725
31. a) Anil had the following transactions:
i. Commenced business with cash Rs.50,000.
ii. Purchased goods for cash Rs.20,000 and credit Rs.30,000.
iii. Sold goods for cash Rs.40,000, costing Rs.30,000.
iv. Rent paid Rs.500, Salaries Rs.5,000.
v. Rent outstanding Rs.100, Salaries Rs.1,000.
vi. Bought furniture for Rs.5,000 on credit.
ANS:
S.N Transactions Assets = Liabilities + Capital
o.

Cash+ Stock+ Furnitu Compute Creditors+ Exp +capital

re+ r= outsta
nding
I Commenced 50,000 0 0 0= 0 0 50,000
business with
cash Rs.50,000.
Ii Purchased goods (20,000) 50,000 0 0= 30,000 0 0
for cash
Rs.20,000 and
credit Rs.30,000.
New Equation 30,000 50,000 0 0= 30,000 0 50,000
Iii Sold goods for 40,000 (30,000) 0 0= 0 0 10,000
cash Rs.40,000,
costing
Rs.30,000.
New Equation 70,000 20,000 0 0= 30,000 0 60,000
Iv Rent paid Rs.500,
Salaries Rs.5,000. (500) 0 0 0= 0 0 (500)

(5,000)
(5,000)
New Equation 64,500 20,000 0 0= 30,000 0 54,500
V Rent
outstanding
Rs.100, Salaries 0 0 0 0= 0 100 (100)
Rs.1,000.
(1,000)
1,000
New Equation 64,500 20,000 0 0= 30,000 1,100 53,400
Vi Bought furniture 0 0 5,000 0= 5,000 0 0
for Rs.5,000 on
credit.
New Equation 64,500 20,000 5,000 0= 35,000 1,100 53,400

OR
b) Prepare proper subsidiary books and post them to the ledger from the
following transactions for the month of February 2014:
2014 Rs.
February
01 Goods sold to Sachin 5000
04 Purchase from Kushal Traders 2480
06 Sold goods to Manish Traders 2100
10 Sold to Mukesh 3300
14 Purchased from Kunal Traders 5200
15 Furniture purchased from Tarun 3200
17 Bought of Naresh 4060
24 Purchased goods from Kirit & Co.
for list price of less 10% trade discount 5700
25 Sold to Shri Chand goods less 5% trade discount 6600
26 Sold to Ramesh Brothers 4000

Ans : (Total of sales book Rs.20,670, purchases book Rs.16,870).

32. On January 01, 2022, Satkar Transport Ltd., purchased three buses for
Rs.10,00,000 each. On July 01, 2023, purchased another bus for
Rs.700000. Depreciation is written off @15% p.a. on diminishing balance
method. Prepare bus account from 2022 to 2024. Books are closed on
December 31 every year.
Ans : No of bus 3 purchase total value =Rs.3000000
2022 Depreciation Rs.3000000x15/100=Rs.450000
2023 Deprection Rs.3000000-450000=2550000x15/100=Rs.382500
July1st 2023 Rs.700000x15/100x6/12=Rs52500
2024 Depreciation Rs.2550000-382500=2167500x15/100=Rs.325125
Rs. 700000- 52500=647500x15/100=97125.
33. Hari maintains his books of account on single entry system. His books
provide the following information:
Particular Jan 1, 2023 Dec 31, 2023
Amount Amount
Furniture 200 200
Stock 2800 3050
Sundry Debtors 2100 3400
Cash 150 200
Sundry Creditors 1750 1900
Bills Receivable --- 300
Loan --- 500
Investments --- 1000
His drawings during the year were Rs.500. depreciate furniture by 10%
and provide a reserve for debts at 10% on sundry debtors. Calculate profit
or loss earned by the firm.
Ans: Statement of affairs as on January 01, 2023 - Capital (bal. fig)
Rs.3,500
Statement of affairs as on December 31, 2023 - Capital (bal. fig)
Rs. 5,390
Statement of profit & loss on December 31, 2012 - Profit
earned during 2023 Rs. 2,390
34. a) Prepare a Trial Balance from the following information:
Rs
Prepaid expenses 5,000
Outstanding rent 2,000
Bad debts recovered 4,000
Interest on Investment 1,000
Creditor 8,000
Bank overdraft 4,000
Discount allowed 800
Due from Debtor 1,200
Investment 15,000
Patents 4,000
Machinery 6,000
Capital 18,000
Ans: Trial Balance Total 32000
b) Pass necessary journal entries to rectify the following errors:
1. Outstanding telephone charges of 660 had been completely omitted.
2. Sale of old furniture for 1500 was treated sale of goods.
3. A bill for 10000 drawn on Ramesh was not entered in the bills Receivable
book.
Ans:
i. Telephone charges a/c dr 660
To outstanding telephone charges a/c 660
ii. Sales a/c dr 1500
To furniture a/c 1500
iii. Bills Receivable a/c dr 10000
To Ramesh 10000