Class 11 Accounting notes and question bank — NEB Exam

Accounting

Class 11 - 23 Chapters

Sub. code 103

NEB — GRADE XI

Set C

Model Question

Class 11 Accounting Model Question Set C

The candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.

समय (Time) : 3 Hoursपूर्णाङ्क (Full Marks) : 75

Pass Marks : 32

सबै प्रश्नको उत्तर दिनुहोस् । (Attempt All Questions)

This model question paper is for Class 11 Accounting, Set C (subject code 103), carrying full marks of 75 with a pass mark of 32, to be completed within 3 Hours. Model answers are available for questions that have one — reveal them with a free account (a few reveals) or a paid plan (unlimited).

Group A

Very short question answer

11 marks[11x1=11]
1.
[1]

How would you define accounting in a business context?

2.
[1]

State two main goals or purposes of keeping accounting records.

3.
[1]

Explain the concept behind the dual-aspect or double-entry system of bookkeeping.

4.
[1]

What does the separate entity principle in accounting state?

5.
[1]

What is the rule regarding money measurement in financial accounting?

6.
[1]

How is a liability defined in accounting?

7.
[1]

What is an error of principle in bookkeeping?

8.
[1]

What is a trial balance and what purpose does it serve?

9.
[1]

What is reserve?

10.
[1]

Distinguish between capital expenditure and revenue expenditure in one key aspect.

11.
[1]

What is one major difference between government accounting and commercial accounting?

Group B

Short answer question.

40 marks[40]
12.
[5]

A. State business activities in brief.

B. Prepare accounting equation from the following details:
i. Started business with cash Rs. 300,000 and bank balance Rs. 700,000.

ii. Purchased goods worth Rs. 100,000 and paid Rs. 80,000 cash and balance on credit.

iii. Paid salary Rs. 100,000.

iv. Sold goods costing Rs. 90,000 for Rs. 100,000.

13.
[5]

A. Cash and banking transactions are given below:

  • Shrawan 1: Opening balance of cash Rs. 90,000.

  • Shrawan 13: Cash deposited into bank of Rs 20,000.

  • Shrawan 27: Cash withdrew from bank for personal use Rs. 10,000.

  • Required: Double column cash book with cash and bank columns.

B. Following transactions are related to a kitchenware dealer:

  • Dec 5: Purchased from Arun Stores, Asan: 10 dozen coffee mugs @ Rs 1,000/doz, 50 dozen tea cups @ Rs 800/doz [Trade discount @ 10%].

  • Dec 25: Purchased from Barun Suppliers, Bhotahiti: 300 soup bowls @ Rs 200 each, 80 sets of chopsticks @ Rs 300/set.

Required: Purchase book.

14.
[5]

Following information are given:

(a) Bank balance as per cash book Rs. 90,000;

(b) Cheque of Rs. 20,000 deposited into bank but not credited by bank;

(c) Cheque issued Rs. 15,000 but not yet presented for payment;

(d) A customer deposited a cheque of Rs. 45,000 directly into bank;

(e) Bank debited Rs. 500 as bank charge in the bank statement;

(f) Cheque of Rs. 2,000 received and entered into the cash book but not yet deposited.

Required: Bank Reconciliation Statement.

15.
[5]

A. Rectify the following errors before preparing the Trial Balance:

i. Sales to Hira of Rs. 15,000 were entered in the Purchase Book.

ii. Wages of Rs. 8,000 paid for the installation of machinery were debited to the Wages Account.

iii. Rent of Rs. 6,000 paid to Mr. Hem was debited to his Personal Account.

B. The following information was extracted from the Trial Balance:

  • Sundry Debtors (Dr.): Rs. 65,000

  • Provision for Bad and Doubtful Debts (Cr.): Rs. 3,000

Additional Information:

  • Bad Debts: Rs. 4,000

  • Provision for Bad Debts: 5%

Required: Prepare Provision for Bad Debts Account.

16.
[5]

On 1st Baisakh 2076, Rohit Factory purchased machinery for Rs. 600,000. On 1st Kartik 2077, it purchased another machinery worth Rs. 800,000. On 1st Kartik 2078, the first machinery was sold for Rs. 400,000, and on the same date, another machinery was purchased for Rs. 1,000,000. Depreciation is charged at 10% per annum under the Straight Line Method (SLM). The accounts are closed on 31st Chaitra each year.

Required: Prepare Machinery Account for three years.

17.
[5]

The following is the Trial Balance of Rohit Trader. The figures have been changed for practice.

Particulars

Amount (Rs.)

Office Expenses

8,000

Commission

9,000

Debtors

30,000

Bad Debts

3,000

Insurance

4,000

Salaries

22,000

12% Investment

50,000

Cash

15,000

Machinery

60,000

Interest on Loan

3,000

Gross Profit

90,000

Creditors

12,000

10% Loan

25,000

Provision for Bad Debts

2,500

Capital

60,000

Interest on Investment

5,000

Additional Information:

a. Further bad debts amount to Rs. 1,500.

b. Depreciate machinery at 10% per annum.

c. Interest on investment for 2 months is outstanding.

Required:

i. Profit and Loss Account

ii. Balance Sheet

18.

The Balance Sheet of a club as on 31st December 2020 is given below:

Liabilities

Amount (Rs.)

Assets

Amount (Rs.)

Capital Fund

150,000

Fixed Assets

145,000

Loan

15,000

Subscription Due

3,000

Cash and Bank

17,000

Total

165,000

Total

165,000

The following is the Receipt and Payment Account for 2021.

Receipts

Amount (Rs.)

Payments

Amount (Rs.)

Opening Cash and Bank

17,000

Salaries

25,000

Subscriptions

40,000

Rent

12,000

Donations

20,000

Investment

15,000

Closing Cash and Bank

25,000

Total

77,000

Total

77,000

Additional Information:

a. Half of the donations are to be capitalized.

b. Outstanding subscription at the end of the year is Rs. 5,000.

c. Outstanding salaries at the end of the year are Rs. 4,000.

Required:

i. Income and Expenditure Account for 2021.

ii. Balance Sheet as on 31st December 2021.

19.
[5]

A. Statement of Affairs and Statement of Profit or Loss

Smita started a business with capital of Rs. 300,000 on January 1, 2022. Her financial position on December 31, 2022, was as follows:

Particulars

Amount (Rs.)

Bank Balance

120,000

Inventory

35,000

Creditors

25,000

Furniture

70,000

Debtors

115,000

Outstanding Expenses

18,000

Drawings

35,000

Required:

i. Prepare the Closing Statement of Affairs.

ii. Prepare the Statement of Profit or Loss.

B. Journal Vouchers

A government office carried out the following transactions:

  1. Purchased furniture worth Rs. 80,000 by cheque.

  2. Cleared an advance of Rs. 25,000.

  3. Distributed employee remuneration of Rs. 100,000 after deducting Rs. 10,000 for taxes and Rs. 5,000 for provident fund contributions.

Required: Prepare the Journal Vouchers for the above transactions.

Group C

long answer questions.

24 marks[8x3=24]
20.
[8]

A trader started a business with cash of Rs. 600,000 and carried out the following transactions:

a. Started business with cash Rs. 600,000.

b. Purchased goods worth Rs. 30,000 from Hamal.

c. Paid office rent in cash Rs. 20,000.

d. Paid Rs. 18,000 to Hamal.

e. Purchased additional goods worth Rs. 35,000 from Hamal.

f. Paid Hamal Rs. 45,000 in full settlement of his account.

Required:

Journal Entries

Necessary Ledger Accounts

Trial Balance

21.
[8]

The following Trial Balance of RST Trading Concern is given below. The figures have been changed for practice.

Trial Balance

Particulars

Debit (Rs.)

Credit (Rs.)

Plant and Equipment

500,000

—

Salaries

80,000

—

Receivables

100,000

—

Cost of Sales

350,000

—

Inventory

120,000

—

Goodwill

60,000

—

Drawings

40,000

—

Investment

150,000

—

Showroom Rent

50,000

—

Cash

70,000

—

Maintenance

20,000

—

Prepaid Insurance

12,000

—

Sales

—

650,000

Gain on Sale of Asset

—

15,000

Interest Income

—

10,000

Accumulated Depreciation

—

75,000

Bank Loan

—

150,000

Capital

—

692,000

Total

1,552,000

1,592,000

Additional Information:

a. Insurance of Rs. 4,000 has expired during the year.

b. Depreciate plant and equipment at 15% per annum.

Required:

i. Prepare the Statement of Profit or Loss based on NFRS.

ii. Prepare the Statement of Financial Position based on NFRS.

Or
21.
[8]

Define a Ledger. Why is it called the "King of Books"? Differentiate between Journal and Ledger.

22.
[8]

A. Bank Cash Book

The following transactions of a government office were related to payment orders issued by the District Treasury Controller Office (DTCO). The figures have been changed for practice.

  1. Issued a travelling advance of Rs. 25,000 to an employee.

  2. Purchased furniture worth Rs. 75,000 and paid by cheque.

  3. An employee cleared a travelling advance of Rs. 25,000 by submitting bills of Rs. 22,000 and returned the remaining amount in cash.

  4. Paid employees' salaries of Rs. 120,000 after deducting Rs. 12,000 for income tax and Rs. 6,000 for provident fund contributions.

Required: Prepare the Bank Cash Book.

B. Statement of Expenditure

The following budget information relates to a government office. The figures have been changed for practice.

Budget Head

Approved Budget (Rs.)

Expenditure (Rs.)

Salary

500,000

420,000

Office Expenses

150,000

115,000

Furniture

200,000

125,000

Travelling Expenses

100,000

65,000

Additional Information: A travelling advance of Rs. 15,000 remains uncleared at the end of the year.

Required: Prepare the Statement of Expenditure showing the budget balance.

Accounting — Model Question Set CNEB Exam

Paper Overview & Analysis

Set C

Year

Model Question

Type

75

Full Marks

32

Pass Marks

3 Hours

Duration

22

Question Items

Question Type Breakdown

Very Short Answer11
Short Answer8
Long Answer3

Group Breakdown

Group A11 questions · 11 marks
Group B8 questions · 40 marks
Group C3 questions · 24 marks