CBSE Class 10 Sample Paper 2021 for Elements Book Keeping Accountancy

ELEMENTS OF BOOK-KEEPING AND ACCOUNTANCY (254)
SAMPLE QUESTION PAPER 2020-21
CLASS X
MM – 70 TIME: 3 HOURS
General Instructions:

1 This question paper contains 30 questions.

2 Marks are indicated against each question.

3 There are two Case Based Questions (CBQ’s).

4 Answers should be brief and to the point.

5 Workings to the answers should be given clearly.

Q.No QUESTIONS Marks

1 Heavy expenditure undertaken on the advertisement for brand building at the
time of launch of a product by a company is____ (Choose the correct alternative)
a. Revenue Expenditure
b. Capital Expenditure
c. Deferred Revenue Expenditure
d. Statement of financial position 1

2 A new machine was imported by Nishtha Ltd. from South Korea for ₹7,00,000
and 20% p.a. depreciation is charged as per reducing balance method. The book
value of the machine at the end of the second year would be___________
a. ₹ 4,84,000
b. ₹ 4,48,000
c. ₹ 4,64,000 1
d. ₹4,72,000

3 __________is not a negotiable instrument. (Choose the correct alternative)

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a. Bills of exchange
b. Promissory Note
c. Bearer cheque
d. Crossed cheque 1
OR
Maker of the bill is also known as __________ (Choose the correct alternative)
a. Bill Receivable
b. Drawer
c. Drawee
d. Reserve 1

4 Depreciation is charged on which of the following? (Choose the correct alternative)
a. Land
b. Sales
c. Plant and Machinery 1
d. Capital
OR
__________ is not a cause of depreciation. (Choose the correct alternative)
a. Wear and Tear
b. Obsolescence
c. Fluctuation in prices 1
d. Efflux of time

5 Bank Reconciliation Statement is the comparison of the bank statement with:
a. Trading Account
b. Cash Book
c. Statement of Affairs 1
d. Sales Book

6 Credit balance as Cash book as on 31stMarch, 2020 is ₹ 30,750. The bank has
debited ₹ 700 as bank charges and has credited ₹ 7,775 on account of interest.

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Balance as per pass book should be_______ (Choose the correct alternative)
a. ₹26,475
b. ₹24,475
c. ₹ 23,675
d. ₹ 16,500 1

7 Cost of goods sold is equal to___________. (Choose the correct alternative)
a. Sales – Gross Profit
b. Sales + Gross Profit
c. Sales + Net Profit 1
d. Sales – Net profit

Read the following text and answer question (8-10) on the basis of the same:
Gopi Chand started with the manufacturing unit of Solar Charkha in February
2018 and was nominated by the ruling government under Make in India awards.
Gopi Chand wants to set up another unit in a nearby village and purchase land for
premises there too. Given below is Trial Balance of Gopi Chand as at 31st March
2020. Trial Balance as at 31st March 2020

Debit Balance Amount (₹) Credit Balance Amount (₹)

Opening Stock 50,000 Capital 1,70,000

Purchases 80,000 Sundry Creditors 44,000

Office furniture 35,000 Bank Loan 1,00,000

Depreciation on furniture 7,000 Sales 1,04,000

Advertisement Expenses 10,000

Salary 14,000

Telephone Expenses 4,000

Cash at Bank 18,000

Land and Building 2,00,000

---------- -----------
4,18,000 4,18,000
======= =======
Additional Information: 1. Closing stock at the end of year 2020 is ₹ 75,000.

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8 Which of the following is not a financial statement prepared by a sole trader? 1
a) Profit and Loss Account
b) Trading Account
c) Bank Book
d) Balance Sheet

9 Trading profit for Gopi Chand will be (Choose the correct alternative) 1
a) ₹ 39,000
b) (₹24,000)
c) ₹ 99,000
d) ₹ 49,000

10 Total of Liabilities side for Gopi Chand’s business will be____________ 1
a) ₹3,32,000
b) ₹4,18,000
c) ₹3,28,000
d) ₹3,10,000

11 On 12thJuly,2019 a bill of exchange was drawn by Mr X on Mr Y for one month. 1
The date of its maturity of the will be ______. (Choose the correct alternative)
a. 13th August,2019
b. 16th August,2019
c. 15th August,2019
d. 14th August,2019

12 As on 31st March 2020, debit balance as per cash book of Mr. Singh stood at ₹ 1
20,000. Cheques worth ₹ 2,600 deposited in bank, could not get cleared due to
public holidays and issued cheques could also not be presented by creditors ₹
7500.In the light of the given conditions, which of the following would be the
correct balance as per pass book?

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a. ₹ 22,600
b. ₹22,750
c. ₹22,940
d. ₹24,900

Read the following text and answer question (13-16) on the basis of the same:
Henry used to run a plumbing business, due to Covid 19 he could not afford to
pay rent for his shop hence he now operates the same from his home. He has
extracted the following information from his books

Particulars Amount (₹)

Capital in the beginning of the year (April 1, 2019) 2,00,000

Capital at the end of the year ( March 31, 2020) 2,20,000

Drawings made during the year 50,000

Loose tools 20,000

Sundry Debtors 30,000

13 The capital at the end of accounting year is ascertained by preparing: -
(Choose the correct alternative
a. Total debtors account
b. Profit and loss account
c. Total creditors account
d. Closing statement of Affairs 1

14 From incomplete records it is not possible to prepare:
a. Statement of affairs
b. Trial Balance
c. Statement of profit and loss
d. Bank Reconciliation Statement 1

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15 Profit for Henry for the Financial Year 2019-20 will be__________
a. ₹70,000
b. ₹50,000
c. ₹20,000
d. ₹2,20,000 1

16 Total of Statement of Affairs as on 31st March 2020 for Henry will be 1
a. ₹2,00,000
b. ₹2,20,000
c. ₹50,000
d. ₹2,70,000

17 Depreciation is a ___________because it does not involve any cash outflow. 1
a. Cash expenditure
b. Non-cash expenditure
c. Capital expenditure
d. Deferred revenue expenditure

18 Freight Inward is shown in ______________. (Choose the correct alternative) 1
a. Profit and Loss Account
b. Profit and Loss Appropriation Account
c. Trading Account
d. Balance Sheet

19 Explain the term Deferred Revenue Expenditure with the help of an example. 3
OR
Give any three examples of Capital expenditure.

20 State any three causes of difference in balance as per Cash book as per Pass book. 3

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21 Samarth sold goods for ₹ 10,000 to Hemant on 25 th March, 2019. On the same
date, Hemant sent his promissory note for the amount payable, after 2 months. On
the due date, the bill was met. Give journal entries in the books of Hemant. 3
OR
State any three advantages of bill of exchange. 3

22 State any two limitations of Incomplete Record System. 3

23 Suraj received from Kartik an acceptance for 60,000 on 1st july,2019 at 3months.
Suraj got this acceptance discounted @12% p.a.at his bank. On the due date,
Kartik paid the required amount. Give the Journal entries in the books of Suraj 4
and Kartik.

24 State any four points of distinction between Capital and Revenue Expenditure. 4

25 Distinguish between Straight line method and Diminishing Balance method. 4
Or
State any four merits of Written down value method. 4

26 Prepare Bank Reconciliation Statement of Misha Ice Cream Parlours as on 4
31stMarch, 2019:
S.No. Particulars Amount (in ₹ )
(a) Debit balance as per Cash Book 40,000
(b) Cheques deposited but not cleared 10,000
(c) Cheques issued but not cleared 700

27 From the following information extracted from the books of M/s Sherya, prepare
a Balance sheet as on 31-03-2020. During the year ended 31-03-2020 M/s Sherya
earned a net profit of ₹1,00,000. The Position of assets and liabilities on 31-03-
2020 was as follows :
Cash in hand ₹2,00,000 Investment ₹1,20,000 Cash at bank ₹ 4,00,000
Land and Building ₹4,80,000 Debtors ₹ 1,00,000 4
Capital ₹16,50,000 Stock ₹ 7,00,000 Bankoverdraft ₹2,50,000;

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28 From the following particulars of Vansh Brothers, prepare a bank reconciliation
statement on March 31,2019
Particulars Amount (in ₹)
(a) Overdraft as per passbook 25,200
(b) Insurance premium paid by the bank 2,500
(c) Interest on overdraft 1,500
(d) Cheque deposited but not yet cleared 8,100
(e) Amount wrongly debited by bank 2,000 5

29 Netra enterprises purchased a Machinery on 1st January,2010 for ₹ 1,50,000 and
spent ₹ 10,000 on its erection . Show the Machinery account for three years, if the
accounts are closed on 31st December every year. The depreciation is to be
charged @10% p.a. on original cost method. 5

30 Following is the position statement of Md Irfan (who maintains his accounts in
incomplete system) as on 31-03-2019 and 31-03-2020.
Particulars 31-03-2019 31-03-2020
Amount in ₹ Amount in ₹
Cash 20,000 18,000
Sundry Debtors 78,000 90,000
Stock 68,000 64,000
Machinery 1,40,000 1,30,000
Sundry Creditors 29,000 29,000
Bills Payable 5,000 10,000
During 2019-20, he introduced ₹15,000 as new capital and withdrew ₹ 4,000 per 5

month for his personal use. Ascertain his profit for the year ending 31-03-2020.
OR
Distinguish between Double entry and Single Entry system of accounting. 5

31 Prepare Trading and Profit and Loss account for M/s Solar Charkha Makers from 5
the following information for the year ending 31-03-2019 when Closing stock is
valued at 20,000.

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Trial Balance as on 31.3. 2018

Name of Account Debit Credit
Balance (₹) Balance (₹)

Opening Inventory 50,000 --------

Purchase and Sales 8,15,000 12,03,700

Returns 700 5,000

Rent Received -------- 13,400

Debtors and Creditors 1,28,000 3,44,800

Capitals -------- 2,40,000

Salaries and Wages 35,000 --------

Bad Debts 7,800 --------

Patents 35,000 --------

Machinery 4,50,000 ------

Bank Loan ------ 2,00,000

Cash at Bank 485,400 -----

________________ ___________
20,06,900 20,06,900
============== ================

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