CBSE Class 11 Accountancy Question Paper Set 17 Solved

1. State two limitations of accounting. 

2. What is Journalising?

3. Write two objectives of providing depreciation. 

4. Give any two examples of Intangible Assets. 

5. “Resignation by a Marketing Manager is not recorded in the books of account”. Why? 

6. Name the accounting principle based on the premise “do not anticipate profits but provide for all losses”.

7. Which basis of accounting is recognized under the Companies Act 2013?

8. What is the meaning of rebate with reference to bill of exchange? 

9. Define the following terms: 

(a) Carriage Inwards

(b) Returns Inwards

(c) Bad debts recovered

10. Give any 3 points of distinction between cash basis and accrual basis of accounting. 

11. Explain the following:

(a) Going concern concept

(b) Full disclosure principle

(c) Business Entity principle

12. Explain the following: 

(a) Bill of Exchange

(b) Promissory Note

(c) Payee

13. Differentiate between Book Keeping and Accounting on the basis of : 

(a) Scope

(b) Stage

(c) Knowledge level

(d) Objective

14. Give any four points of distinction between Provisions and Reserves. 

15. Identify the type of Error from the following statements: 

(i) Wages paid to a worker for making additions to machinery amounting to ₹5000 were debited to the wages account.

(ii) Recording of purchases of goods for ₹3000 as ₹30000.

(iii) Cash balance of ₹10000 carried forward as ₹1000.

(iv) Salary paid to X ₹ 30000 were not recorded in salary account.

16. (a) ” The information in the financial statements is of interest to a number of internal and external parties.” State any two internal and any two external users of financial statements. 

(b) Explain the term ’Deferred revenue expenditure’ with the help of an example. 

17.Show the Accounting Equation on the basis of the following transactions: 

(i) Sultan commenced business with cash ₹ 55000 and goods ₹40000.

(ii) Opened a bank account by depositing ₹ 15000 in it.

(iii) 1/4th of the above goods sold at a profit of 10% on cost and half of the payment is received in cash

(iv) Purchased goods costing ₹ 6000 from Tom by paying him 50% amount on the spot.

(v) Paid salary for the month ₹ 3000 by cheque

(vi) Rent received ₹2000 by cash

(vii) Cash withdrawn for personal use ₹7000

18. Dhoni’s cash book on 31stJuly 2016 showed a credit balance of ₹9130 on his Account in bank. On investigation it is found that:

(i) Bank charges amount to Rs300 were recorded twice in the Cash Book.

(ii) The receipts side of the cash book had been overcast by ₹650

(iii) Cheque drawn amounting to ₹ 1150 had not been presented to the bank for payment.

(iv) A sum of ₹2700 deposited in the bank has been credited as ₹270 in the pass book.

(v) Cheque for ₹840 received from Novel paid into bank, dishonoured and shown as such by the bank but no entry of dishonor had been made in the cash book.

(vi) A Dividend of ₹456paid directly to the bank was also recorded in the cash book but as ₹654. You are required to draw an amended cash book and prepare a Bank Reconciliation
Statement as on 31stJuly 2016. 

19. A company purchased a Plant for ₹100000 on 1st April, 2014.On 1st October 2014 an additional plant was purchased costing ₹50000. On 1st October 2015 the plant purchased on 1st April 2014, having become obsolete, was sold for ₹40000. Depreciation was provided @10% p.a. on the original cost on 31st March every year. Show the Plant, Plant Disposal and Provision for Depreciation Accounts for the years 2014-15 and 2015-16. 

20. On June 01, 2016, Sonu sold goods to Monu for Rs 20,000. On the same date 50% amount was paid by cheque as well as a two months bill was accepted by Monu. Sonu endorsed the bill to one of his creditor Gonu to whom he owed ₹10250. On the due date, Monu showed his inability to pay the amount of the bill, the bill got dishonoured and Gonu paid Rs 200 as Noting Charges. Monu requested Sonu to draw a new bill. Sonu agreed on the condition that Monu would pay 60% amount of the bill and amount of noting charges immediately. Monu agreed the proposal. The new bill was drawn by Sonu for three months alongwith 6% p.a. interest. Monu accepted the new bill and returned it to Sonu. On the due date, the bill was honoured. Pass the necessary Journal entries in the books of Sonu. 

21. Rectify the following errors with the help of Journal entries: 

(i) ₹875 was written off as depreciation on Furniture has not been posted to the depreciation account

(ii) A discount of Rs 701 allowed to a customer has been credited to his Account as ₹710.

(iii) Sold goods to Abdul Rs 4300, wrongly credited in Abdul’s Account as Rs 3400

(iv) The total of the Return Outwards Book has been added ₹250 short.

(v) A credit purchase of machinery costing ₹7600 fromBoby was entered in the purchase book as ₹4600 and posted therefrom to the credit of his account as ₹600.

22. Record the following transactions in a Double Column Cash Bok of Rahul: 

Jan.1 Cash in hand₹20100, Bank Overdraft ₹3500

Jan.3 Purchased goods amounting to ₹4500 out of which goods of ₹2700 were purchased on credit from Mr. Sun

Jan.5 Sold goods to Rajesh on credit ₹2500.The terms were 10% trade discount and 5% cash discount.

Jan.10 Sold goods to Moon against cash ₹4200 and allowed him cash discount of ₹300.

Jan.12 Deposited cash into bank from business cash ₹3000 and from personal cash ₹2000

Jan.17. Purchased a computer from Mega Electronics Ltd. for ₹3000 and paid them75% amount by cheque on the spot.

Jan.25 Withdrew cash ₹ 500 for personal use.

23. On 31 March 2017 the following Trial Balance was taken from the books of Sultan. Prepare Trading and Profit & loss account and Balance sheet as on that date:

Adjustments:

(i) Computer includes an amount of ₹3 000 purchased on 1st January 2017.

(ii) Salaries have been paid so far for 10 months while insurance premium @ ₹300 per annum was paid for the year ending 30June 2017.

(iii) Stock on March 31, 2017 was valued at ₹15500.

(iv) Provide 10% depreciation p.a. on Building and computer.

(v) Additional bad debts were ₹300 and provision for doubtful debts is to be maintained at 5% of debto₹

(vi) Manager is entitled a 10% commission on the net profit before charging his Commission

Please click on below link to download CBSE Class 11 Accountancy Question Paper Set Q Solved