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1. HUZAFA TUITION CENTRE
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1 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
Accounting Diary
XI COMMERCE
ACCOUNTING
MODEL PAPER 2021
SOLUTION

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2 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
(MODEL QUESTION PAPER)
ACCOUNTING PAPER-I
Time Allowed: 30 Minutes SECTION "A" (M.C.Qs) Marks: 50
Note: i) This section consists of 25 part questions and all are to be answered.
Each question carries two marks.
ii) Do not copy down the part questions in your answer book. Write only the answer in full against
proper number of the question and its part.
iii) The code number of your question paper is to be written in bold letters in the beginning of the
answer script.
1. Choose the correct answer for each from the given options:
i) Accounting is often referred to as the language of the:
 Business  Schools
 Daily life  Information Technology
ii) A business transaction affects:
 At least one account
 Maximum of three accounts
 At least three accounts
 At least two accounts
iii) When the payment or receipt of cash is postponed for a future date, this transaction is said
to be:
 Sale transaction  Cash transaction
 Credit transaction  Purchase transaction
iv) The amount with which the trader starts business is known as:
 Drawings  Capital
 Stock  Purchases
v) The cash or goods taken away by the owner from the business for his personal use are called:
 Capital  Purchases
 Drawings  Cash

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3 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
vi) The following statement is incorrect:
 Assets – Capital = Liabilities
 Liabilities + Capital = Assets
 Liabilities + Assets = Capital
 Assets – Liabilities = Capital
vii) The following is not a current liability:
 Bank Overdraft  Mortgage payable
 Salaries Payable  Unearned Rent
viii) The following is a Revenue:
 Unearned commission
 Commission receivable
 Commission payable
 Commission earned
ix) If assets of a firm are Rs.59250 and liabilities are Rs.28150 then the amount of Capital will be:
 29100  21000
 31100  31000
x) The following is not an asset:
 Building
 Cash balance
 Account Receivable
 Bank Overdraft
xi) The act of recording transactions in the Journal is called:
 Journalizing  Posting
 Balancing  Ledger
xii) A short explanation of transaction is written under each entry is called:
 Narration  Indentation
 Explanation  Memorandum entry
xiii) The following best describes a Trial Balance:
 Shows the financial position of the business
 It is a special account
 Shows all the entries in the books
 It is a list of balances of the Ledger Accounts

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4 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
xiv)The transaction recorded on both sides of Cash Book is called:
 Receipt Entry  Payment Entry
 Contra Entry  Compound Entry
xv) The petty cash book is used for recording:
 Petty payments  Petty receipts
 All cash payments  All cash receipts
xvi) The span of time for which a business generally prepares its financial statements is termed as:
 Accounting period
 Accounting cycle
 Accounting standards
 Manufacturing period
xvii) A bank reconciliation statement reconciles the:
 Ledger with the journal
 Cash book with the petty cash book
 Bank statement with the cash book
 Control account with subsidiary ledger
xviii) The purchase journal is the book of original entry used to record the:
 Purchase of tangible asset on credit
 Purchase of merchandise for cash
 Purchase of merchandise on credit only
 Sales of merchandise on credit
xix) The expenses incurred but have not been actually paid till the end of the currentyear, are
known as:
 Prepaid expenses  Unexpired expenses
 Accrued expenses  Unearned revenue
xx) Revenue which has been earned in the current year but has not been received is known as:
 Accrued expenses  Prepaid expenses
 Unearned revenue  Accrued income
xxi) If there is a net loss of Rs.5000 and Revenues are Rs.55000 then the expenses are:
 40000  50000
 60000  70000

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5 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
xxii) The following is not a merchandise of a stationary shop:
 Note book  Stapler
 Bicycle  Fountain Pen
xxiii) The capital account will not be affected by:
 Additional Investment
 Drawing
 Purchase of furniture
 Net loss
xxiv) The following item is not responsible for differences between cash book balance and
bank statement:
 Interest given by bank
 Outstanding cheque
 Direct deposit by customer
 Equipment purchased on cash
xxv) This is a merchandising business:
 Beauty parlor  Medical store
 Motor workshop  Estate agency

6. HUZAFA TUITION CENTRE
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6 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
MODEL PAPER 2021 SOLUTION
Q NO 01
MR. KASHIF
GENERAL JOURNAL
FOR THE PERIOD ENDED MARCH 31, 2021
DATE PARTICULAR PR DEBIT CREDIT
01-03-2021 CASH 50,000
KASHIF CAPITAL 50,000
(TO RECORD KASHIF INVESTMENT)
04-03-2021 BANK 10,000
CASH 10,000
(TO RECORD OPENED A BANK ACCOUNT)
07-03-2021 PURCHASES 4,000
ACCOUNT PAYABLE 4,000
(TO RECORD GOODS PURCHASED ON CREDIT)
10-03-2021 ACCOUNT PAYABLE 500
PURCAHSE RETURN & ALLOWANCE 500
(TO RECORD GOODS RETURNED TO ADNAN)
16-03-2021 ACCOUNT RECEIVABLE 6,000
SALES 6,000
(TO RECORD GOODS SOLD ON ACCOUNT)
22-03-2021 CASH 3,000
ACCOUNT RECEIVABLE 3,000
(TO RECORD CASH RECEIVED FROM MR. BASIT)
25-03-2021 DRAWING 2,000
BANK 2,000
( TO RECORD WITHREW CASH FROM BANK FOR
PERSONAL USE)

7. HUZAFA TUITION CENTRE
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7 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
MODEL PAPER 2021 SOLUTION
Q NO 02
CASH
1-Mar-21 CAPITAL 50,000 4-Mar-21 BANK 10,000
22-Mar-21 ACCOUNT RECEIVABLE 3,000
31-Mar-21 BALALNCE C/D 43,000
53,000 53,000
31-Mar-21 BALALNCE B/D 43,000
CAPITAL
1-Mar-21 CASH 50,000
31-Mar-21 BALALNCE C/D 50,000
50,000 50,000
31-Mar-21 BALALNCE B/D 50,000
BANK
4-Mar-21 CASH 10,000 25-Mar-21 DRAWING 2,000
31-Mar-21 BALALNCE C/D 8,000
10,000 10,000
31-Mar-21 BALALNCE B/D 8,000
PURCAHSES
7-Mar-21 ACCOUNT PAYABLE 4,000
31-Mar-21 BALALNCE C/D 4,000
4,000 4,000
31-Mar-21 BALALNCE B/D 4,000

8. HUZAFA TUITION CENTRE
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8 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
ACCOUNT PAYABLE
10-Mar-21 PURCASHE RETURN 500 7-Mar-21 PURCHASES 4,000
31-Mar-21 BALALNCE C/D 3,500
4,000 4,000
31-Mar-21 BALALNCE B/D 3,500
PURCAHSES RETURN & ALLOWNACE
7-Mar-21 ACCOUNT PAYABLE 500
31-Mar-21 BALALNCE C/D 500
500 500
31-Mar-21 BALALNCE B/D 500
ACCOUNT RECEIVABLE
16-Mar-21 SALES 6,000 22-Mar-21 CASH 3,000
31-Mar-21 BALALNCE C/D 3,000
6,000 6,000
31-Mar-21 BALALNCE B/D 3,000
SALES
16-Mar-21 ACCOUNT RECEIVABLE 6,000
31-Mar-21 BALALNCE C/D 6,000
6,000 6,000
31-Mar-21 BALALNCE B/D 6,000
DRAWING
4-Mar-21 BANK 2,000
31-Mar-21 BALALNCE C/D 2,000
2,000 2,000
31-Mar-21 BALALNCE B/D 2,000

9. HUZAFA TUITION CENTRE
A PLACE TO LEARN LIFE…..
9 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
MODEL PAPER 2021 SOLUTION
Q NO 04
MR. FAHIM
PURCHASE JOURNAL
FOR THE PERIOD ENDED OCTOBER 31,2020
DATE
INVOICE
NO PARTICULAR PR AMOUNT
2-Oct-20 MR. SALIM √ 24,000
6-Oct-20 MR. RAHIM √ 16,000
24-Oct-20 MR. AKRAM √ 18,000
31-Oct-20
PURCHASES DR
58,000
ACCOUNT PAYABLE CR
MR. FAHIM
PURCHASE RETURN & ALLOWANCEJOURNAL
FOR THE PERIOD ENDED OCTOBER 31,2020
DATE
MEMO
NO PARTICULAR PR AMOUNT
14-Oct-20 MR. SALIM √ 4,000
28-Oct-20 MR. RAHIM √ 3,000
31-Oct-20
ACCOUNT PAYABLE DR
7,000
PURCHASE RETURN & ALLOWANCE CR
DATE PARTICULAR P.R
SALES
DISCOUNT
CASH BANK DATE PARTICULAR P.R
PURCHASE
DISCOUNT
CASH BANK
01-Sep-20 BALANCE B/D 78,000 109,000 11-Sep-20 ACCOUNT PAYABLE 300 14,700
01-Sep-20 SALES 30,000 18-Sep-20 BANK C 17,500
07-Sep-20 ACCOUNT RECEIVABLE 500 17,500 27-Sep-20 CASH 5,000
18-Sep-20 CASH C 17,500 27-Sep-20 DRAWING 7,000
27-Sep-20 BANK 5,000
500 130,500 126,500 300 17,500 26,700
30-Sep-20 BALANCE C/D 113,000 99,800
500 130,500 126,500 300 130,500 126,500
01-Oct-20 BALANCE B/D 113,000 99,800
MR. MAJID
CASH BOOK
FOR THE PERIOD ENDED SEPTEMBER 30, 2020
MODEL PAPER 2021 SOLUTION
Q NO 03

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A PLACE TO LEARN LIFE…..
10 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
MODEL PAPER 2021 SOLUTION
Q NO 05
YASIR & CO
BANK RECONCILIATION STATEMENT
FOR THE PERIOD ENDED JAN 31 2021
PARTICULAR CASH BOOK
BANK
STATEMENT
UNADJUSTED BALANCE 10,550 13,000
ADD UNCLEARED CHEQUE 14,000
LESS: UNPRESENTED CHEQUES (9,000)
ADD PRFOIT CREDITED BY BANK 850
LESS: BANK CHARGES (400)
ADD: DIRECT DEPOSIT BY CUSTOMER 7,000
ADJUSTED
BALANCE 18,000 18,000

11. HUZAFA TUITION CENTRE
A PLACE TO LEARN LIFE…..
11 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
MODEL PAPER 2021 SOLUTION
Q NO
07
RAZA TRADERS
ADJUSTING ENTRIES
FOR THE PERIOD ENDED DEC 31 2020
DATE PARTICULARS PR DEBIT CREDIT
31-12-2020 SALARIES EXPENSE 4,000
SALARIES PAYABLE 4,000
(TO RECORD SALARIES EXPENSE)
31-12-2020 INSURANCE EXPENSE 6,000
PREPAID INSURANCE 6,000
(TO ADJUST INSURANCE EXPENSE)
31-12-2020 DEPRECIATION EXPENSE 13,000
ALLOWANCE FOR DEPRECIATION 13,000
(TO RECORD DEPRECIATION EXPENSE)
31-12-2020 BAD DEBTS EXPENSE 4,000
ALLOWANCE FOR BAD DEBTS 4,000
(TO RECORD BAD DEBTS EXPENSE)
31-12-2020 MERCHANDISE INVENTORY 14,000
EXPENSE AND REVENUE SUMMARY 14,000
(TO RECORD MERCHANDISE INVENTORY ENDING)

12. HUZAFA TUITION CENTRE
A PLACE TO LEARN LIFE…..
12 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
MODEL PAPER 2021 SOLUTION
Q NO 07
RAZA TRADERS
INCOME STATEMENT
FOR THE PERIOD ENDED DEC 31 2020
SALES 210,000
LESS: SALES RETURN (10,000)
NET SALES 200,000
LESS: COST OF GOOD SOLD
MERCHANDISE INVENTORY OPENING 18,000
PURCHASES 106,000
MERCHANDISE AVAILABE FOR SALE 124,000
LESS: MERCHANDISE INVENTORY ENDING (14,000)
COST OF GOODS SOLD (110,000)
GROSS PROFIT 90,000
LESS: OPERATING EXPENSE
SALARIES EXPENSE (20000+4000) 24,000
INSURANCE EXPENSE 6,000
DEPRECIATION EXPENSE 13,000
BAD DEBTS EXPENSE 4,000
TOTAL OPERATING EXPENSE (47,000)
NET PROFIT 43,000

13. HUZAFA TUITION CENTRE
A PLACE TO LEARN LIFE…..
13 ACCOUNTING - MODEL PAPER 2021 SOLUTION – CLASS XI COMMERCE – KARACHI BOARD
HOUSE NO L-1052, SECTOR 5-D MAYAMARABAD SURJANI TOWN KARACHI. FOR DETAILS 0341-8023728
CUURENT ASSETS CURRENT LIABILITIES
CASH 42,000 ACCOUNT PAYBALE 17,000
ACCOUNT RECEIVABLE 48,000 SALARIES PAYABLE 4,000
LESS: ALLOWANCE FOR BAD DEBTS (4,000) 44,000 TOTAL CURRENT LIABILITIES 21,000
PREPAID INSURANCE 10,000
MERCHANDISE INVENTORY 14,000 LONG TERM LIABILITIES NILL
TOTAL CURRENT ASSETS 110,000
OWNERS EQUITY
FIXED ASSETS CAPITAL 160,000
FURNITURE 130,000 ADD: NET PROFIT 43,000
LESS: ALLOWANCE FOR DEPRECIATION (26,000) 104,000 LESS: DAWING (10,000)
TOTAL FIXED ASSETS 104,000 TOTAL OWNER'S EQUITY 193,000
TOTAL ASSETS 214,000 TOTAL LIABILITIES & EQUITIES 214,000
AS ON DEC 31 2020
LIABILITIES & EQUITIES
ASSETS
MODEL PAPER 2021 SOLUTION
Q NO 07
RAZA TRADERS
BALANCE SHEET