Revision Worksheet with Answers – Class 11 Accountancy

Short Answer Questions (3–4 Marks)

Q1. Explain any three characteristics of Goods and Services Tax (GST).
Answer:
1. Destination-based tax – GST is levied at the place where goods or services are consumed,
not where they are produced.
2. Dual structure – Both Centre (CGST/IGST) and State (SGST) governments collect GST.
3. Elimination of cascading effect – GST allows input tax credit, reducing the burden of double
taxation.
Q2. State any three qualitative characteristics of accounting information.
Answer:
1. Understandability – Information should be clearly presented and easily understood by
users.
2. Relevance – Information should be useful for decision-making.
3. Reliability – Information should be free from errors and bias, and can be verified.
Q-3 Differences between Bookkeeping and Accounting (any three):
1. Meaning – Bookkeeping is the recording of financial transactions; Accounting involves
recording, classifying, summarizing, and interpreting.
2. Scope – Bookkeeping is limited in scope; Accounting is broader, including analysis and
decision-making.
3. Objective – Bookkeeping ensures accurate record-keeping; Accounting aims to present
financial position and performance.
Q4. Briefly explain the following terms:
(a) Non-current liabilities – Obligations payable after one year (e.g., debentures, long-term loans).
(b) Revenue expenditure – Expenses incurred for day-to-day operations (e.g., salaries, rent).
(c) Drawings – Withdrawal of cash or goods by the owner for personal use.
Q5. Explain any two concepts from the following:
1. Dual aspect concept – Every transaction has two aspects: Debit and Credit. For example,
purchase of goods for cash increases stock and decreases cash.
2. Accounting period concept – Business life is divided into fixed time periods (year/quarter)
for reporting results.
3. Cost concept – Assets are recorded at their purchase price, not market value.
Q6. Define accounting. Explain any four features of accounting.
Answer:
Definition: Accounting is the art of recording, classifying, summarizing, and interpreting financial
information to users.
Features:
1. Identifying financial transactions.
2. Recording them systematically.
3. Classifying into groups (accounts).
4. Summarizing into statements (P&L, Balance Sheet).
Long Answer Questions (6 Marks)
Q1. Explain with examples errors affecting trial balance.
Answer: Errors that cause disagreement in Trial Balance totals include:
1. Errors of omission (partial) – Posting only one side of an entry (e.g., cash received from
Mohan recorded only in Cash A/c).
2. Errors of commission – Wrong amounts posted (e.g., sales of ₹450 posted as ₹540).
3. Errors in balancing – Wrong totaling of accounts.
4. Errors of posting – Wrong side posting (e.g., debit instead of credit).
Q-3 Identify and explain the concepts:
 1. Pens for employees not shown as assets → Materiality concept (small items treated as
expenses).
2. Depreciation method used consistently → Consistency concept.
3. Strike not recorded in books → Money measurement concept (only financial transactions
recorded).
Q 4. What do you mean by the Imprest System in petty cash book? Explain with example.
Answer:
 Under Imprest System, a fixed amount (say ₹5,000) is given to the petty cashier at the
beginning of the period.
 He makes small payments (e.g., postage, carriage, stationery).
 At the end of the period, he submits vouchers, and the main cashier reimburses the exact
spent amount.
Example: If ₹3,800 is spent, the main cashier reimburses ₹3,800, restoring the imprest to
₹5,000.
Q5. Why is a Cash Book known as both a Principal Book and a Subsidiary Book?
Answer:
 Principal Book – Because it records cash and bank transactions directly, like a ledger.
 Subsidiary Book – Because it serves as a day book (journal) for cash transactions.
Thus, it acts as both journal and ledger for cash/bank transactions.
Q6. Explain any four basic accounting concepts with suitable examples.
Answer:
1. Business Entity Concept – Business and owner are treated separately. Example: If the owner
invests ₹50,000, it is capital for business.
2. Going Concern Concept – Assumes the business will continue for a long period. Example:
Assets are recorded at cost, not liquidation value.
3. Accrual Concept – Revenues and expenses are recorded when earned/incurred, not when
cash is received/paid. Example: Salary due is shown as expense even if unpaid.
4. Matching Concept – Expenses should be matched with the related revenues. Example:
Depreciation is charged on fixed assets to match against revenue.
[Link] in detail the advantages and limitations of accounting.
Answer:
Advantages:
1. Helps in decision-making.
2. Provides evidence in legal matters.
3. Useful in taxation.
4. Facilitates comparison of results.
Limitations:
1. Ignores qualitative aspects (loyalty, efficiency).
2. Based on historical cost (ignores inflation).
3. Possibility of manipulation by management.
4. Does not provide the true value of the business.
[Link] between Capital Expenditure and Revenue Expenditure with examples.
Answer:
1. Capital Expenditure – Spent on acquiring or improving fixed assets. Benefit is long-term.
Example: Purchase of machinery, construction of building.
2. Revenue Expenditure – Spent on day-to-day operations of business. Benefit is short-term.
Example: Rent, salaries, electricity.
Differences:
 Capital increases earning capacity; Revenue maintains earning capacity.
 Capital shown in Balance Sheet as asset; Revenue shown in P&L A/c as expense.
Q9. Explain in detail the differences between Trial Balance and Balance Sheet.
Answer:
1. Meaning: Trial Balance is a statement of balances of ledger accounts; Balance Sheet is a
statement showing financial position.
2. Purpose: Trial Balance checks arithmetical accuracy; Balance Sheet shows assets, liabilities,
and capital.
3. Stage of preparation: Trial Balance is prepared before Final Accounts; Balance Sheet is
prepared after P&L A/c.
4. Format: Trial Balance has Debit and Credit columns; Balance Sheet has Assets and Liabilities
side.
Q10. State and explain the different types of errors in accounting (with examples).
Answer:
1. Errors of Omission – Transaction completely omitted. Example: Rent paid not recorded.
2. Errors of Commission – Wrong entry made. Example: ₹5,400 written as ₹4,500.
3. Errors of Principle – Violation of accounting principles. Example: Machinery purchased
recorded as expense.
4. Compensating Errors – Two or more errors cancel each other. Example: Sales overstated by
₹1,000 and Purchases also overstated by ₹1,000.