TERM-1 EXAMINATION 2021 (Sample Paper-1 NSR)

CLASS – XI

Time Allowed: 90 Minutes SUBJECT : ACCOUNTANCY M.M. : 40

· The question paper contains three Sections - A, B and C.

· Section A of Part- I has questions from 1 to 18 and you have to attempt any 15 questions.

· Section B of Part- I has questions from 19 to 36 and you have to attempt any 15 questions.

· Section C of Part –I has questions from 37 to 41 and you have to attempt any 4 questions.

· Section A of Part-II has questions from 42 to 48 and you have to attempt any 5 questions

· Section B of Part-II has questions from 49 to 55 and you have to attempt any 6 questions

All questions carry equal marks

Part-I Section A

Instructions: From question number 1 to 18, attempt any 15 questions.

Which of the following limitations of accounting states that accounts may be manipulated to

conceal vital facts:

A. Accounting is not fully exact

B. Accounting may lead to window dressing

C. Accounting ignores price level changes

D. Accounting ignores qualitative elements

(a). Only D (b). Only C

(c). Only A (d). Only B

Accounting vouchers are prepared for

(a). both cash and non-cash transactions (b). cash transactions

(c). non-cash transactions (d). none of these

Purchase price of a machine is Rs 1,50,000. Installation charges 50,000, residual value ` 81,920.

The annual depreciation under straight line method is Rs 29,520. The useful life of the machine is

(a) 6 years (b) 5 years

Which of the following correctly distinguishes between a ledger and a journal?

(a) The journal is the book of first entry (original entry); the ledger is the book of second entry.

(b) The journal is the book for chronological record; the ledger is the book for analytical record.

(d) All of these

Mohit paid ₹ 9,800 in settlement of his account of ₹ 10,000. Discount Allowed will be recorded in:

(a). Recorded in Journal Book. (b). Both Cash Book and Journal

(c). Cash Book (d). None of these

According to the Money Measurement Concept:

A. all transactions and events are recorded.

B. all transactions and events which can be estimated in money terms are recorded in the books of account.

C. all transactions and events which can be measured in money terms are recorded in the books of account.

(a) Only C is correct (b) Only B is correct

The term sales are used only for the sales of and is never used for the sale of…...

(a). Assets, Investments (b). Goods, Assets

(c). Intangible Assets, Goods (d). Assets, Goods

The assumption that a business enterprise will not be sold or liquidated in the near future is known as

(a). Materiality (b). Consistency

(c). Going concern (d). Industry practice

Capital of business decreases if there is an increase in………..

(a). Income (b). Drawings

(c). Fresh Capital (d). Gains

Match the following options are as follows:

(A).	Personal account	(i).	Furniture Account
(B).	Nominal Account	(ii).	ICICI Bank Account
(C).	Real Account	(iii).	Salary paid

(a). (A) (i), (B) (ii), (C) (iii) (b). (A) (ii), (B) (iii), (C) (i)

(c). (A) (iii), (B) (i), (C) (ii) (d). (A) (ii), (B) (i), (C) (iii)

The business documents which serves as the evidence of the business transactions are known as

(a) Notes (b) Source documents

Ledger is a book of in accounting.

(a) All cash transactions (b) All non-cash transactions

Which of the following is a correct difference between a provision and reserve?

A. A provision is created out of a legal necessity whereas a reserve is created as a matter of prudence.

B. A provision is invested whereas reserve is not invested.

C. A provision is an appropriation of profit whereas a reserve is a charge against profit.

D. A provision can be used for distribution of dividends whereas a reserve cannot be allowed to be used for the distribution of dividends.

(a). Only D (b). Only C

(c). Only B (d). Only A

-------------refers to writing-off the cost of intangible assets like patents, copyright, trademarks, franchises, goodwill which have utility for a specified period of time.

(a) Depreciation (b) Depletion

The process of transferring the accounts from the Journal to the ledger is called …………..

(a) Posting (b) Journalising

The amount paid to the petty cashier at the beginning of a period is known as--------amount.

(a) Imprest (b) Cash

Which of the following transactions is not of financial character?

(a). Purchase of asset for cash

(b). Withdrawing of money by the proprietor from the business

(c). Purchase of asset on credit

(d). Strike by employees

Which of the following is not a long-term liability?

(a) Creditors (b) Term-loan

(d) Debentures (d) Capital

Part-I Section-B

Instructions: From question number 19 to 36, attempt any 15 questions.

The accounting principle that conforms to the tendency of accountants to resolve uncertainty and doubt in favour of understanding assets and revenues and overstating liabilities and expenses is known as

(a) Consistency (b) Conservatism

Capital ₹. 30,000; Bills Payable ₹. 6,000; Bank Loan ₹. 10,000. Find out total assets.

(a) ₹. 40000 (b) ₹. 14000 (c) ₹. 46000 (d) ₹. 36000

Proprietor is a creditor of the business for

(a) Drawings (b) Cash (c) Liabilities (d) Capital

Goods costing ₹. 30,000 supplied to Mohan at a profit of 25% of sales price less Trade discount

@ 5% will be credited to Sales A/c with:

(a) ₹. 34,200 (b) ₹. 35,625 (c) ₹. 38,000 (c) ₹. 37,500

The negative balance of bank account in cash book shows:

(a) Overdraft (b) None of these

Kamal started business and invests Rs.50000 on 1st April 2010. On31st March 2021, his assets are Rs.65000 and liabilities Rs.6000.Proprietor had invested Rs.5000 an additional capital and withdraw Rs.2000. What will be the profit:

(a) ₹. 8,000 (b) ₹. 9,000 (c) ₹. 6,000 (d) ₹.10,000

Which of the following about the purchase book is correct ?

(a). It records purchases of all types

(b). It records all credit purchases of the goods, the enterprise deals in

(c). It records all cash purchases of the goods, the enterprise deals in

(d). None of the above

Assertion (A): The goods supplied from Chennai to Lucknow would fetch Integrated GST.

Reason (R): Integrated GST is levied in the course of inter-state supply of goods and services.

(a). Both A and R are true and R is the correct explanation of A.

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

(c). A is true but R is false.

(d). A is false but R is true.

A machine was purchased on 1st April 2018 for ₹. 5,00,000 and on 1st October 2020, a new machine is added for ₹. 2,00,000. Calculate the balance of machine account, if depreciation is charged at 20% p.a. on written down value method for the year ending March 31, 2021.

(a). ₹. 5,60,000 (b). ₹. 6,00,000 (c). ₹. 6,60,000 (d). ₹. 5,80,000

Assertion (A): Investment fluctuation fund and dividend equalisation fund are capital reserves.

Reason (R): Capital reserves are not generally distributed as divided.

(a). Both A and R are true and R is the correct explanation of A.

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

(c). A is true but R is false.

(d). A is false but R is true.

Accounting starts with …… financial transactions and ends with …… accounting information.

(a). recording, communicating (b). classifying, analysing

(c). identifying, analyzing (d). identifying, communicating

Assertion (A): Reserve reduces the profit available for distribution among the owners of the business.

Reason (R): Reserve is a charge against profit.

(a) Both A and R are true and R is the correct explanation of A.

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

(d) A is false but R is true.

Ram started a business for buying and selling of stationery with ₹. 5,00,000 as an initial investment. Of which he paid ₹. 1,00,000 for furniture, ₹. 2,00,000 for buying stationery item What are the fixed assets he bought?

(a). ₹.1,00,000 (b). ₹. 2,00,000 (c). ₹. 8,00,000 (d). ₹. 3,00,000

Revenue from Operations refers to:

A. Revenue earned from activities that are not Operating Activities

B. Revenue earned from non-financial activities

C. Revenue earned from Operating Activities

(a). Only B is correct (b). Only A is correct

(c). Only C is correct (d). All of these

Imprest amount of ₹ 5,000. What will be the amount of reimbursement if the following expenses were incurred by the petty cashier during the month –

Wages = ₹ 1,450, Tiffin = ₹ 1,050, small Repairs = ₹ 500, General expenses = ₹ 400.

(a). ₹ 1,600 (b). ₹ 3,050

(c). ₹ 3,000 (d). ₹ 3,400

Transfer voucher is prepared for

(a) Payment of salary for cash (b) Purchase return and sales return

Purchased goods from Manoj of ₹ 20,000 at 20% trade discount. Posting will be made in Manoj A/c:

(a) Dr. side ₹ 16,000 (b) Cr. side ₹ 20,000

On 1st April 2020, the balance of the cash column of the cash book was ₹ 10,000. After receiving ₹ 2,000 from Anil, giving a cheque of ₹ 3,200 to Sunil and making payment of wages ₹ 500, the balance of cash will be:

(a). ₹ 11,500 (b). ₹ 8,300

(c). Rs 6,300 (d). ₹ 8,800

Part-I Section-C

Instructions: From question number 37 to 41, attempt any 4 questions:

Obsolescence means a decrease in assets

(a). Overuse of assets (b). None of these

(c). Due to its use in business operations (d). Assets become out of fashion

If Kunal Ltd sells goods to Kishor for ₹ 20,000 plus CGST and SGST @ 9% each and she pays the due amount immediately and avails cash discount @ 2%, then what will be the journal entry passed in the books of Kunal Ltd?

(a) Bank A/c Dr. 20,000

To Sales A/c 20,000

(b) Bank A/c Dr. 23,138

Discount Allowed A/c Dr. 472

To Sales A/c 20,000

To Output CGST A/c 1,800

To Output SGST A/c 1,800

To Sales A/c 20,000

To Output GST A/c 3,600

(d) None of these

What is the journal entry passed for return of intra-state purchase of goods on which GST is levied assuming that Shoba returned the goods?

(a) Creditors A/c Dr

To Purchases Return A/c

To Input CGST A/c

To Input SGST A/c

(b) Purchases Return A/c Dr

Input IGST A/c Dr

To Cash

Input SGST A/c Dr

To Cash

(d) None of the above

Which of the following differentiates between credit note and debit note?

(a). The credit note is prepared by the seller and the debit note is prepared by the buyer.

(b). The credit note is prepared by the buyer and the debit note is prepared by the seller.

(c). The credit note is prepared by the customer and the debit note is prepared by the cashier.

(d). None of the above

If bank balance as per cash book is ₹ 50,000, cheques issued but not presented for payment of

₹ 6,000 and bank charges of ₹ 400 were not entered in the cash book, then balance as per pass

book will be

(a) ₹ 50,000 (b) ₹ 56,000

Part-II Section-A

Instructions : From question number 42 to 48, attempt any 5 questions :

How is a trade discount different from cash discount?

(i) Trade discount is allowed when goods are purchased in a specified quantity whereas cash discount is allowed when payment is made on or before a specified date.

(ii) Trade discount is not recorded separately in the books of account whereas cash discount is separately recorded in the books of account.

(a) Only (i) (b) Only (ii)

In ………, unpaid expenses are recorded in books of accounts.

(a). cash basis of accounting (b). accrual basis of accounting

(c). Both (a) and (b) (d). Can’t be determined

Deposit of cash in the bank is recorded in:

(a). The debit of Bank Column and Credit of Cash Column

(b). The debit of Bank Column and also Credit of Bank Column

(c). The debit of Cash Column and also Credit of Cash Column

(d). The debit of Cash Column and Credit of Bank Column

International Financial Reporting Standards (IFRS) are issued by ……….

(a). IFRS Committee

(b). International Accounting Standards Board

(c). international Accounting Committee

(d). None of the above

According to ……… principle, an event, even though it may be very important for the business, will not be recorded in the books of business unless its effect can be measured in terms of money with a fair degree of accuracy.

(a). materiality (b). money measurement

(c). full disclosure (d). dual aspect

Payment of wages for installation of machinery will be recorded as

(a). Debit Machinery A/c and credit Cash A/c

(b). Debit Cash A/c and credit Machinery A/c

(c). Debit Wages A/c and credit Cash A/c

(d). None of the above

Which account will be debited if proprietor pays ₹ 5,000 as life insurance premium from business cash?

(a). Cash A/c (b) Bank A/c (c) Insurance A/c (d) Drawings A/c

Part-II Section-B

Instructions: From question number 49 to 55, attempt any 6 questions:

..…… need information to form policies at the macro level and for providing subsidies.

(a) Tax authorities (b) Competitors

The thing which is purchased and sold in the business is called…….

(a). goods (b). creditor

(c). assets (d). capital

Question No. 51 to 52 are based on the given text. Read the text carefully and answer the

questions:

Ganesh is the owner of a trading firm with a capital of ₹ 25,000. During the year 2021, he bought goods at the list price of ₹ 1,00,000 from Rani less 20% trade discount and 2 % cash discount and paid 40% by cheque. He sold goods to Preeti at the list price of ₹ 2,00,000 less 20% trade discount and 2% cash discount and she paid 50% by cheque. He also sold goods to Tanu for ₹ 40,000 allowing her a trade discount of 5% and cash discount of 10 %. She paid 1/4th of the amount in cash at the time of purchase. He received cash from Jaya for a bad debt written-off last year amounting to ₹ 400.

What is the amount received in bank (via cheque) from Preeti on sale of goods to her ?

(a) ₹ 1,00,000 (b) ₹ 78,400

What would be the journal entry passed for bad debts of ₹ 400 recovered from Jaya?

(a). Cash A/c Dr 400

To Bad Debts 400

(b). Cash A/c Dr 400

To Bad Debts Recovered 400

(c). Cash A/c Dr 400

To Jaya 400

(d). None of the above

Question No. 53 to 55 are based on the given text. Read the text carefully and answer the questions:

Unistar Ltd. has its business of selling hardware parts to local traders of the district and some other retailers of Punjab. The company has multiple branches and the inventories are valued by their accountant.

The accountant of the enterprise also happens to be a good friend of the owner of the enterprise.

Therefore, the fees of the accountant was not paid in the year when pandemic set in as the firm was going through cash-crunch. However, the accountant entered the amount of his fees as expense even though cash was not paid. He justified his act by stating some accounting concepts. The accountant further completed the books of accounts for the year ended 31st December, 2020. Over the years, the company has developed a reputation in market by supplying high quality products and customer-friendly service. The owner of the firm asked the accountant to enter this fact but accountant denied and gave the correct reasons. The owner was contended.

Which principle/concept of accounting is highlighted in the line, “Therefore, the fees of the accountant was not paid in the year when pandemic set in as the firm was going through cash crunch. However, the accountant entered the amount of his fees as expense even though cash was not paid”?

(a) Accrual concept (b) Dual aspect principle

The company follows the calendar year as accounting year. Which principle is highlighted in the fact that firm divided the whole life of firm into small financial years?

(a). Accounting period principle (b). Dual aspect principle

(c). Materiality principle (d). Prudence principle

“The owner of the firm asked the accountant to enter this fact but accountant denied and gave the correct reasons”. Which principle was used by accountant to explain to the owner?

(a). Dual aspect principle (b). Full disclosure principle

(c). Accounting period principle (d). Money measurement principle

Nirmal Singh Rana

PGT. Commerce

(Commerce Department)

Shriji Baba SVM, Mathura

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VIDYA BHARTI PRE- BOARD EXAMINATION 2025-26 MS

XI. Accountancy sample Term 1 (NSR-3) words file

Part-I Section A

Instructions: From question number 1 to 18, attempt any 15 questions.

Part-I Section-C

Instructions: From question number 37 to 41, attempt any 4 questions:

Part-II Section-B

Instructions: From question number 49 to 55, attempt any 6 questions:

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