Practice Paper
TERM II (2021 – 2022)
Class – XI
Accountancy (055)
Time: 2 hours Maximum Marks: 40
General Instructions:
- There are 12 questions in the question paper.
- All questions are compulsory.
- Question nos. 1 to 4 are short answer type–I question carrying 2 marks each.
- Question nos. 5 to 8 are short answer type–II questions carrying 3 marks each.
- Question nos. 9 to 12 are long answer type questions carrying 5 marks each.
- There is no overall choice. However, an internal choice has been provided in 3 questions of three marks and 1 question of five marks.
1. State the meaning of software?
In order to solve a particular problem with the help of computers, a sequence of instructions written in proper language will have to be feed into the computers. A set of such instructions is called a ‘Program’ and the set of programs is called ‘Software’.
2. Explain the Parties that are involved in a Promissory Note.
Two parties to a promissory note are:
(i) Maker or Drawer: The person who promises to pay a certain sum of money as specified in the note.
(ii) Payee or Drawee: The person who is being promised or the person who is bound to receive the promised amount as specified in the note.
3. Rakesh keeps incomplete records of his business. He gives you the following information. Capital at the beginning of the year Rs 8,00,000; capital at the end of the year Rs 6,20,000, Rs 2,50,000 was withdrawn by him for his personal use; as Rakesh needed money for expansion of his business, he asked his wife for help, his wife allowed him to sell her ornaments and invest that amount into the business which come to Rs 30,000. Calculate his profit or loss for the year ended.
4. Define Provisions for bad and doubtful debts with adjustment entry.
Provision for bad and doubtful debts occurs when there is a possible reason for debtors who are doubtful that they will not pay the debts on time.
5. Explain central processing unit, as a component of computer system.
A Central Processing Unit (CPU), also called a central processor or main processor, is the electronic circuitry within a computer that carries out the instructions of a computer program by performing the basic arithmetic, logic, controlling, and input/output (I/O) operations specified by the instructions. CPU has two components:
i. Control Unit
ii. Arithmetic Logic Unit
6. List the various advantages of Computerised Accounting Systems.
The mentioned below are the various advantages of Computerised Accounting Systems.
a. Speed
b. Accuracy
c. Reliability
d. Up-to-Date Information
e. Real Time User Interface
f. Automated Document Production
g. Scalability
h. Legibility
OR
State the limitations of Computers.
Limitations: Inspite of so many qualities, computers suffer from the following limitations.
(1) Lack of Common sense: Since computer work according to the stored programs, they simply lack of common sense.
(2) Zero I.Q.: Computers are dumb devices with zero Intelligence Quotient (IQ). They can’t visualize and think what exactly to do under a particular situation unless they are programmed to tackle that situation.
(3) Lack of Feeling: Computers lack feelings like human beings because they are machines. No computer passes the equivalent of a human heart and soul.
(4) Lack of Decision-making: Decision making is a complex process involving information, knowledge, intelligence, wisdom & ability to judge, Computers cannot make decisions of their own.
7. State whether the following expenses are capital or revenue in nature:
(i) Expenses on whitewashing and painting of a building purchased to make it ready for use.
Capital Expenditure: Paid to make an asset ready to use
(ii) ₹ 10,000 spent on constructing platform for a new machine.
Capital Expenditure: Paid to make an asset ready to use
(iii) Repair expenses of ₹ 25,000 incurred for whitewashing of factory building.
Revenue Expenditure: Made for the maintenance of asset
OR
From the following information, determine Gross Profit for the year ended 31st March, 2019:
Gross Profit = Sales + Closing Stock – (Opening Stock + Freight and Packing + Goods Purchased)
= 1,90,000 + 30,000 – (25,000 + 10,000 + 1,40,000)
= 2,20,000 – 1,75,000 = ₹45,000
8. From the following figures, calculate Operating Profit:
Operating profit = Net profit – Rent received – Gain on sale of machines + Interest on loan – Donation
1,00,000 – 10,000 – 15,000 +20,000 – 2,000 = Rs. 93,000
OR
Explain Marshalling of Balance Sheets.
Marshaling of Balance Sheet can be made in two ways: 1. In order of Liquidity: According to this method, an asset which is most easily convertible into cash such as cash in hand is written first and then will follow those assets which are comparatively less easily convertible, so that the least liquid assets such as goodwill, is shown last. In the same way, those liabilities which are to be paid at the earliest will be written first. In other words, current liabilities are written, first of all, then fixed or long-term liabilities, and lastly, the proprietor’s capital. Performa of a Balance Sheet in the order of liquidity will be the same as shown in the topic Balance Sheet. 2. In order of Permanence: This method is just opposite to the first method. Assets that are most difficult to be converted into cash such as Goodwill are written first and the assets which are most liquid such as cash in hand are written last. Those liabilities which are to be paid last will be written first. The proprietor’s capital is written, first of all, then fixed or long-term liabilities, and lastly the current liabilities. The Performa of the Balance Sheet in the order of Permanence will be just opposite to the above.
9. Rectify the following errors assuming that Suspense Account was opened.
(a) Credit sales to Mohan ₹ 7,000 were recorded in Purchase Book. However, Mohan’s Account was correctly debited.
(b) Credit purchases from Rohan ₹ 9,000 were recorded in Sales Book. However, Rohan’s Account was correctly credited.
(c) Goods returned to Rakesh ₹ 4,000 were recorded in Sale Returns Book. However, Rakesh’s Account was correctly debited.
(d) Goods returned from Mahesh ₹ 1,000 were recorded through Purchase Returns Book. However, Mahesh’s Account was correctly credited.
(e) Goods returned to Naresh ₹ 2,000 were recorded through Purchases Book. However, Naresh’s Account was correctly debited.
10. A sells goods for ₹ 30,000 to B on 1st January, 2017 and on the same day draws a bill on B at three months for the amount. B accepts it and returns it to A, who discounts it on 4th February, 2017 with his bank at 18% per annum. The acceptance is dishonoured on the due date, the noting charges paid by the bank being ₹ 200. On 4th April, 2017, B accepts a new bill at two months for the amount then due to A together with interest at 12 per cent per annum.
Make Journal entries to record these transactions in the books of A.
OR
Asha sold goods worth ₹ 19,000 to Nisha on March 2, 2016. ₹ 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank @ 10% p.a. On the due date Nisha dishonoured the bill and the bank paid ₹ 30 as noting charges.
On 5th June, Nisha paid ₹ 3,030 (including noting charges) in cash and accepted a new bill at one month for the amount due to Asha together with interest @ 15% p.a. Record the necessary journal entries in the books of Nisha.
11. X, a retailer, has not maintained proper books of account but it has been possible to obtain the following details:
Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that:
(a) Shop Fittings are to be depreciated by ₹ 780.
(b) X has drawn ₹ 100 per week for his own use.
(c) Included in the Trade Debtors is an irrecoverable balance of ₹ 270.
(d) Interest at 5% p.a. is due on the loan from Naresh but has not been paid for the year.
12. From the following balances, prepare the trading and profit and loss account and balance sheet as on March 31, 2017.
Adjustments
1. Closing stock Rs. 70,000
2. Create a reserve for bad and doubtful debts @ 10% on book debts
3. Insurance prepaid Rs. 50
4. Rent outstanding Rs. 150
5. Interest on loan is due @ 6% p.a.
