Mock Test Accountancy class 11

Set 1 : Maximum Marks: 45

Duration : 1 hour 30 minutes

Q:1 The process of accounting does not end even after transactions have been classified in various ledger accounts. Do you agree? If yes, what all steps are involved in the process of accounting once transactions have been classified?                                                                                                                  (3)

Q:2 Give the terms used for the following items:

(i)                  The owner withdrew Rs. 12,000 from the bank account of the business to pay school fees of his son.

(ii)                Assets which neither have any real value nor have any physical form.

(iii)               Documentary evidence in support of a business transaction.                                      (3)

Q:3 (a).  Zeba Construction Ltd. gets a contract of Rs.500 crore to build an elevated road to be completed in 5 years. The director of the company wants to determine profit or loss on the contract only after completion of the contract. Do you think the director is justified in his approach? Support with the help of accounting principle involved.

(b). A company has been charging depreciation@ 10%p.a. on original cost method. It now wants to change the method from original cost to diminishing balance method, the rate of depreciation being 15%p.a. Can it do so? Support with the help of accounting principle involved.                                                                                                                                                                                     (3+3=6)

                                                      

Q:4 Differentiate between Cash and Accrual Basis of Accounting on the basis of:

a.       Technical Knowledge

b.      Legal Position

c.       Profit or Loss

d.      Reliability                                                                                                                                            (4)

Q:5 Sonam started business with a capital of Rs.1,00,000 out of which deposited Rs. 20,000 immediately in bank. Following transactions took place during the year:

1.       Purchased goods for cash Rs. 20,000 and on credit Rs. 30,000.

2.       Sold goods costing Rs. 30,000 at a profit of 33 1/3%, 75% payment received in cash.

3.       Interest due but not received Rs. 1,000. Unearned rent Rs. 2,000.

4.       Purchased cycle for son Rs. 2,000. Goods withdrawn for personal use Rs. 1,000.

5.       Goods costing Rs. 4,000, sale price Rs. 5,000 given as charity.

Use accounting equation to give effect to above transactions.                                   (6)

Q:6 (a)Raman Kumar started business on 1^st January 2015 with capital of Rs.1,50,000 and a loan of Rs. 40,000 taken from Punjab National Bank. On 31^st December,2015, his assets were Rs.3,00,000. Find out his capital on 31^st December,2015 and Profit made or Loss incurred during the year 2015.

2. (a) Tia commenced business on 1^st January 2015 with a capital of Rs.6,00,000 and a loan of Rs. 40,000 borrowed from Citibank. On 31^st December,2015 his assets were Rs.8,00,000. Calculate his closing capital and profit earned during the year.

(b) If in the above case, the proprietor had introduced fresh capital of Rs. 40,000 and had withdrawn Rs.10,000 for personal purpose, calculate his profits.                                  (3+1=4)

Q:6 Rajesh has just got a job as an accountant in a company. While preparing the books of accounts, he applied the following rules.

A.      He treated ‘Prepaid Rent’ as an expense account.

B.      His firm received interest of Rs. 6,000 on its investments. He applied the rule ‘Increase in revenues are credits, while decrease are debits.’

C.      He applied the rule ‘Increase in liabilities are debits; decrease are credits’ while preparing the Creditors Account.

Is he correct in applying the rules? Justify.                                                            (3)

Q:7 State true/ false, giving reason:

Transfer Vouchers are prepared for cash transactions.                                                                   (1)

Q:8 Journalise the following transactions in the books of Jaspal Traders.  (6)                                                                                        

2015
April 1	Cash in hand Rs. 1,20,000; Cash at Bank Rs.1,59,000;Furniture Rs. 7,000; Raju (Dr.) Rs.1,500; Shalu(Dr.) Rs.1800; Loan from Akash Rs.10,000; Madan(Cr.) Rs.45,000; Nisha(Cr.) Rs.2,800
April 5	Received Rs. 2,500 from Nisha in full settlement of her account.
April 8	Bought goods from Trisha for Rs.2,00,000 at 5% cash discount and 10% trade discount. Half of the amount paid by cheque at the time of purchase.
April 10	Paid Income Tax of Rs. 2,160 by cheque.
April 16	Purchased an old furniture for Rs. 18,000 from Yadav. Paid Rs. 2,600 on its repairs and Rs.500 on its carriage.
April 19	Bought shares in ‘Colgate Ltd’ for Rs. 50,000 and brokerage paid @2%. All the payment is made by cheque.
April 23	Goods costing Rs.15,000 sold at a profit of 33 1/3% on cost
April 25	Interest on loan from Akash Rs. 1,000 due but not paid.
April 28	Goods damaged by fire Rs. 2,500 and Insurance Co. accepted claim Rs. 1,600.

Q:9 Prepare Cash, Furniture and Nisha’s ledger for the above Journal.       (4)

Q: 10The following Trial Balance as on 31^st March,2015 was drawn from the books of D.K.Traders: Redraw the correct Trial Balance.      (5)

Heads of Accounts	L.F.	Dr. Balance(Rs.)	Cr. Balance(Rs.)
Building		60,000
Machinery		17,000
Returns Outward		2,600
Cash		400
Bad debts		2,800
Discount Received		3,000
Bank Overdraft		10,000
Creditors		50,000
Purchases		1,00,000
Capital			73,600
Fixtures			5,600
Sales			1,04,000
Debtors			60,000
Interest Received			2,600
		2,45,800	2,45,800

MOCK TEST ACCOUNTANCY 11:   SET 2

Set 1 : Maximum Marks: 45

Duration : 1 hour 30 minutes

Q:1 Enter the following transactions in a Cash Book with Cash and Bank Columns: (6)

2015                                                                                                  Rs.

Dec 1   Started business with Cash                                    50,000

Dec 2 Deposited into Bank                                                   29,000

Dec 3 Received cheque from Raja & Co.                        800

             Discount allowed                                                        20

Dec 5   Withdrew cash from bank for private use       240

Dec 14 Received cheque from Kamla                              395

               Discount allowed                                                      15

Dec 16 Kamla’s cheque endorsed to Bala in full

settlement of Rs 425

                      Dec 29   Paid Bills Payable by Cheque                                                1,000

                     Dec 30   Deposited into bank, balance of cash in

      excess of                                                                       450

Q:2 A. Enter the following transactions in the petty cash book of Sh. Rajpal Yadav with appropriate analysis columns. Balance it on 15^th May 2015 and show the amount which should be received from the cashier to make up the amount of the ‘imprest’ Rs.5000.

2001		Rs.
May 1	Received from cashier Rs.4720, the amount required to make up the amount of the ‘imprest’ Purchased stamps Paid for carriage	5000 400 300
May 3	Paid for office cleaning Paid for telegram to Bahadur Singh Paid railway fare Paid bus fare	200 250 350 400
May 8	Paid for telephone calls Tea to office staff	240 220
May 10	Paid reward to servants Bought notebooks for office Paid wages to casual labour	150 580 400
May 12	Purchased Pens and Pencils Paid for envelopes	520 250
May 15	Paid for repair to typewriter	200

 (3)                        

Q:3Prepare proper Subsidiary Books of M/s Gupta Traders, New Delhi, who deals in Readymade Garments:                                                                                                                                                       (6)

2015
Feb 5	Purchased from Karan Bros. 100 shirts @ Rs.420 each 40 Trousers @ Rs.700 each Trade Discount @ 15%
Feb 10	Sold to Mahima Traders 50 shirts @ Rs.550 each 15 Trousers @ Rs.900 each Trade Discount @ 10%
Feb 12	Goods Returned to Karan Bros. 5 shirts @ 420 each 2 Trousers @ Rs.700 each
Feb 16	Purchase of machinery on credit from  Rama Sons for Rs.10,000
Feb 24	Goods returned by Mahima Traders: 4 shirts @ Rs.550 each 2 Trousers @ Rs.900 each
Feb 28	Goods worth Rs.2,100 given away as charity

Q:4 Mention the subsidiary books in which following transactions are recorded along with reason thereof:

(i)                  Purchase of furniture on credit for use in shop.

(ii)                Sale of goods for cash.

(iii)               Defective goods sold to Babita on credit worth RS. 4,000 were returned by her.                                                                                                                                                 (3)

Q:6 Mention any two items which are not recorded in an Amended Cash Book.                 (1)

Q:7 Overdraft as per Cash Book is Rs. 10,000. Cheques deposited but not credited Rs. 2,500. Cheques issued but not encashed Rs. 3,500. What is the balance as per Pass Book?           (1)

Q:8 On 30^th September,2015, Pass Book showed a credit balance of Rs. 2,500 and Cash Book showed a bank overdraft of Rs. 1,000. Efforts were made to reconcile the two bank balances. On comparison of Cash Book and Pass Book, following points were revealed:                

(i)                  Out of Rs. 12,000, cheques issued, Rs. 10,000 cheques were presented for payment till 30^th Sepetember,2015.

(ii)                Out of Rs. 17,000, cheques deposited, Rs. 12,000 cheques were cleared and credited ill 30^th Septembr,2015.

(iii)               Rs. 4,000 cash paid on account of salaries were wrongly recorded in the book column of the Cash Book.

(iv)              Rs. 2,000 was wrongly credited in the Pass Book by the Bank on account of cheque cleared, which was never deposited by the proprietor.

(v)                Interest on overdraft charged by the bank amounted to Rs. 500.

(vi)              Interest on Investment directly credited in the bank amounted to Rs.  1,000.

Prepare a Bank Reconciliation Statement from the given information.                    (8)

Q:9 On 31^st July,2015, the bank balance as per Pass Book was Rs. 14,000 debit. Following difference were found on comparison of Pass Book and Cash Book:

(i)                  Out of the total cheques amounting to Rs. 15,000 deposited, a cheque of Rs. 1,250 was dishonoured but not recorded in Cash Book and cheques amounting to Rs. 7,700 were not cleared till July 31, 2015.

(ii)                Out of the total cheques amounting to Rs. 12,000 issued, a cheque of Rs. 5,200 was dishonoured as signatures differed and it was not recorded in the Cash Book.

(iii)               Bank Charges for dishonoured cheques amounting to Rs. 50 were debited by the Bank but not recorded in the Cash Book.

Prepare the Bank Reconciliation Statement and ascertain the balance as per the Cash Book. (4)

Q:10 ‘The terms Depreciation and Depletion mean one and the same thing.’ Do you agree with the given statement? Give reason.                                                                                                                 (1)

Q:11 A pharmaceutical manufacturer has just developed and registered a patent for a rare medicine. Which term will appear in its Profit and Loss Account regarding the cost of patent written-off? (1)

Q:12On 1.4.2014, following balance appeared in the books on M/s Naveen Bros. :

Machinery Account                                                         Rs. 1,50,000

On 1.10.2014, a part of machine purchased for Rs.60,000 on 1.4.2011 was sold for Rs. 22,500. On the same date a new machine costing Rs. 24,000 was purchased. The depreciation was provided @ 10% p.a. on original cost of the asset. However, no depreciation was to be charged on the asset in the year of sale. Prepare Machinery Account  for the year ending 31.3.2013, 2014 and 2015.                                                                                                                                                                                                              (8)

Q:13 Distinguish between Provision and Reserve on the following basis:

(i)                  Purpose

(ii)                Distribution

(iii)               Compulsion                                                                                                                                        (3)