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CBSE · Class 11 · Accountancy

Introduction to Accounting

Standard difficulty · 20 questions · 40 marks · Time: 38 minutes

Name: Date: Score: ____ / 40

Show your working for Sections B and C. Answers are on the last page — try every question first!

Section A — Choose the correct answer8 × 1 = 8 marks
1.
The final function of accounting, passing information to its users, is called:
  1. recording
  2. measurement
  3. identification
  4. communication
2.
What do the employees mainly want to know from the accounts of a business?
  1. the stability of the business and fair wages and bonus
  2. whether the business will pay for goods on time
  3. whether the business will keep supplying goods
  4. the return they may earn and the risk involved
3.
In accounting, “voucher” means:
  1. money or goods taken by the owner for personal use
  2. persons to whom the business owes money
  3. resources owned by the business that have money value
  4. a document that supports a transaction
4.
Which of these is an asset?
  1. bank loan
  2. outstanding salary
  3. machinery
  4. creditors
5.
Accounting information presented so that users can follow it has the quality of:
  1. relevance
  2. comparability
  3. materiality
  4. understandability
6.
A business has assets: Cash ₹23,000, Furniture ₹34,000, Machinery ₹41,000, Debtors ₹46,000; and liabilities: Bills Payable ₹3,000, Bank Loan ₹25,000. What is the owner’s capital?
  1. ₹1,16,000
  2. ₹1,19,000
  3. ₹1,44,000
  4. ₹1,72,000
7.
In a year a business earns revenue of ₹73,000 and has expenses of ₹45,000. What is its profit?
  1. ₹45,000
  2. ₹1,18,000
  3. ₹28,000
  4. ₹29,000
8.
Goods with a list price of ₹74,000 are sold at 20% trade discount. What amount is recorded as the sale?
  1. ₹59,200
  2. ₹88,800
  3. ₹74,000
  4. ₹14,800
Section B — Short answer8 × 2 = 16 marks
9.
Define accounting.
10.
Explain each term: (a) stock (b) loss
11.
Is each an asset, a liability, an expense or a revenue? (a) machinery (b) bank loan
12.
Is each a current or a non-current asset? (a) cash in hand (b) stock of goods
13.
Find the capital of a business whose assets are Machinery ₹1,25,000, Furniture ₹14,000, Cash ₹35,000, Stock ₹19,000 and whose liabilities are Creditors ₹45,000, Bank Loan ₹32,000.
14.
Capital at the start of the year was ₹2,75,000. The profit for the year was ₹79,000 and drawings were ₹10,000. Find the capital at the end of the year.
15.
Goods listed at ₹80,000 are sold at 20% trade discount, and the buyer pays at once and gets 5% cash discount. Find (a) the trade discount (b) the cash discount (c) the cash received.
16.
Capital was ₹2,55,000 at the start of the year and ₹3,11,000 at the end. Drawings during the year were ₹18,000, and no capital was added. Find the profit.
Section C — Word problems4 × 4 = 16 marks
17.
Explain the meaning of accounting and its four main functions.
18.
A business shows these balances: Machinery ₹56,000, Stock ₹23,000, Buildings ₹73,000, Furniture ₹5,000, Creditors ₹31,000, Bills Payable ₹35,000. (a) Find the total assets. (b) Find the total liabilities. (c) Find the capital. (d) Name one current and one non-current item among the assets.
19.
A trader starts the year with capital of ₹2,05,000. During the year she brings in ₹25,000 more. Revenue for the year is ₹1,25,000 and expenses are ₹82,000. She withdraws ₹24,000 for personal use. (a) Find the profit. (b) Find the closing capital. (c) Why are drawings not an expense of the business?
20.
Coral Crockery sells goods with a list price of ₹68,000 at 20% trade discount and 5% cash discount for payment within a week. The buyer pays within the week. (a) Find the invoice amount. (b) Find the amount paid. (c) Which discount is recorded in the books, and in which account?
AmbifulWorksheets
Practice that never repeats
CBSE · Class 11 · Accountancy

Answer key

Introduction to Accounting · AW-11AC-INA-2026-V1 · For parents — fold back or tear off before handing the sheet to your child.

QAnswerWorking
1(d) communication—
2(a) the stability of the business and fair wages and bonus—
3(d) a document that supports a transaction—
4(c) machinery—
5(d) understandability—
6(a) ₹1,16,000Capital = Assets − Liabilities = ₹1,44,000 − ₹28,000 = ₹1,16,000
7(c) ₹28,000Profit = Revenue − Expenses = ₹73,000 − ₹45,000 = ₹28,000
8(a) ₹59,200₹74,000 − 20% of ₹74,000 (₹14,800) = ₹59,200
9Identifying, measuring, recording and communicating the economic events of an organisation to interested users of the information.—
10(a) goods lying unsold on a date (b) money or value lost without any benefit, such as by theft—
11(a) asset (b) liability—
12(a) current (b) current—
13₹1,16,000Assets ₹1,93,000 − Liabilities ₹77,000
14₹3,44,000₹2,75,000 + ₹79,000 − ₹10,000 = ₹3,44,000
15(a) ₹16,000; (b) ₹3,200; (c) ₹60,800Net ₹80,000 − ₹16,000 = ₹64,000; cash discount 5% of ₹64,000
16₹74,000Profit = Closing capital − Opening capital + Drawings = ₹3,11,000 − ₹2,55,000 + ₹18,000
17Accounting identifies the economic events of a business, measures them in money, records them in date order, and communicates the results to users through financial statements.—
18(a) ₹1,57,000 (b) ₹66,000 (c) ₹91,000 (d) Stock is current; Machinery is non-currentCapital = ₹1,57,000 − ₹66,000
19(a) ₹43,000 (b) ₹2,49,000 (c) They are for the owner’s personal use, not for earning revenue; they reduce capital (business entity concept).₹1,25,000 − ₹82,000 = ₹43,000; ₹2,05,000 + ₹25,000 + ₹43,000 − ₹24,000
20(a) ₹54,400 (b) ₹51,680 (c) Only the cash discount of ₹2,720, in the discount allowed account (trade discount is not recorded).₹68,000 × 80% = ₹54,400; ₹54,400 × 95% = ₹51,680