The Abs Rowland School

Summative Assessment
Class: 11
Accountancy
Time: 3 hours
MM: 90
General Instructions: All questions are compulsory.
Give calculations or working notes where ever required.
Q1. Answer the following questions:
a) How many days of grace are added to the period of a Bill of Exchange.
Explain it.
(1)
b) Name two causes of Depreciation.
(1)
c) What is J.F and L.f
(1)
d) What is Purchases Book?
(1)
e) Distinguish between Journal and Ledger.
(2)
f) What is Suspense Account? When is it opened?
(2)
g) Define Provision. What is the importance of creating provision?
(2)
h) What is Fictitious Assets? Give any two examples of Fictitious Assets.
(3)
i) Distinguish between Cash book and Cash Accounts.
(3)
j) What is Crossing of cheque? Describe its types.
(4)
Q2. Enter the following transactions in Purchases Return Book and post it onto
Ledger.
(7)
2012, May 2 Returned goods to Subhash Chandra for Rs.6,800.
May 10 Goods returned to Oswal Brothes being not according to sample
worth Rs. 5,000
May 20 Allowance claimed from Sri Ram & Sons on account of mistake in the
invoice, Rs.2,000
Q3. Prepare a Trial Balance from the following balances of Shri Keshav Chand as at
31st March,2012: (5)
Name of the
Rs.
Name of the
Rs.
Accounts
Accounts

Opening Stock
Purchases
Purchases Return
Sales
Sales Return
Rent
Salaries
Advertisements
Commissioned
Received
Discount Cr.

20,000
85,000
5,000
1,60,0
00
6,200
1,200
5,700
880
1,440
710

Furniture
Machinery
Debtors
Creditors
Bills Receivable
Bills Payable
Cash in Hand
Bank Overdraft
Interest on
Overdraft
Capital
Drawings

6,000
62,00
0
36,00
0
12,75
0
4,600
2,500
5,220
10,00
0
1,800
50,00
0
7,800
Q4.Describe types of Errors? What are Errors of Principle? Give an example of Errors
of Principle. (5)
Q5. Enter the following transactions in a three column Cash Book:
(7)
2011, June 1 Commenced business with cash Rs.100,000
2 Opened a current account in Central Bank and deposited Rs.80,000
3 Further capital introduced Rs.50,000, out of which Rs. 40,000
deposited into bank.
June 3 Purchase goods from Gopal on credit Rs. 50,000
4 Paid to Gopal by cheque Rs.36,000. Discount received Rs. 500
8 Sold goods to Ram on creditRs.7,500
10 Received from Ram In full settlement of his Account Rs.7320
11 Commission paid to agent Rs.650
12 Cheque received on 10 th June deposited into Bank.
15 Office Furniture purchased in cash from Modern Furniture House Rs.12,000
16 Paid for rent Rs.550
18 Drew cheque for personal use Rs.2,000
19 Sold goods to Ghanshyam on creditRs.20,000
24 Received from Ghanshyam, cheque for Rs.5,000(Immediately deposited
into Bank) and cashRs.3,600. Discount allowed Rs.400
25 Withdrew from bank for office use Rs.10,000
25 Received a cheque from X and endorsed it to Yon 29 th June Rs6,000
28 Received a Money Order from Mohan Rs.300
30 Paid salary by cheque Rs8,000
Q6. Birla Cotton Mills purchased a machinery on 1 st August,2009 for Rs.90,000.
On1st October,2010 it purchased another machine for Rs.40,000.On 30 th June,2011
it sold off the first machine purchased in 2009 for Rs.58,000 and on the same date
purchased a new machinery for Rs.100,000.Depreciation is provided at 20% p.a. on

the original cost each year. Accounts are closed each year on 31 st March. Show the
Machinery Account for three years.
(5)
Q7. Explain Bills of Exchange? Differentiate between Bill of Exchange & Promissory
Note.
(7)
Q8.Calculate Gross Profit, Operating Profit and Net Profit from the following:
(7)
Particulars
Rs.
Particulars
Rs.
Opening Stock 2,00,000 Commission Paid
2,400
Purchases
19,00,00 Commission Received
6,000
Sales
0
Travelling Expenses
4,800
Purchases
25,00,00 Office Expenses
3,500
Return
0
Interest on long term
22,00
Sales Return
70,000
loans
0
Wages
1,00,000 Dividend on
2,800
Advertising
80,000
Investments
3,600
Salaries
12,000
Printing &Stationery
35,00
Rent & Taxes
1,78,000 Loss on sale of
0
Lighting
62,000
Machinery
1,400
15,000
Carriage outwards
25,10
Loss by theft
0
Gain on sale of
50,00
Building
0
Q9.Give any five points of differences between Balance Sheet & Trial Balance.
(5)
Q10.Rectify the following errors:
(5)
a) Credit Sales to Arun Rs.7,000 were recorded in purchases book.
b) Credit purchases from Brij Rs.9000 were recorded in sales book.
c) Goods returned to Charu Rs.4000 were recorded in the sales return book.
d) Goods returned from Deepika Rs.1,000 were recorded in purchases return
book.
e) Goods returned from Esha Rs. 2,000 were recorded in purchases book.
Q11. Define Cash Book. Explain types of Cash Book. What is the advantage of
maintaining a Cash Book? (7)
Q12.a) What is Depreciation? Give the formula to calculate annual depreciation as
per Straight line method. Give two points of distinction between Original Cost
Method and Written Down Value Method
of providing Depreciation.
(5)
b) From the following information, prepare the Trading Account for the year ended
31st March,2010: (5)
Adjusted purchases Rs.24,00,000; Freight and carriage inwards Rs. 20,000; Freight
and Carriage outwardsRs.15000; Wages Rs.1,68,000; Octroi Charges Rs.2000; Fuel

and power Rs.30,000 Office Rent Rs.18,000 ; Trade expenses Rs.10,000; Sales
Rs.30,00,000; Closing stock Rs.1,50,000.

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