M: 40 TIME: 90 MINS General instruction: Prepare formats of Journal & Ledgers properly. Q.No- 01 to Q.No- 11 carries 1 Mark each (Internal Choices: 3) Q.No- 12 to Q.No- 14 carries 3 Marks each (Internal Choices: 1) Q.No- 15 to Q.No- 16 carries 4 Marks each (Internal Choices: 1) Q.No- 17 to Q.No- 18 carries 6 Marks each (Internal Choices: 1)
1. ‘The accounting information must be available in time, must help in prediction and feedback, and must influence the decisions of users.’ Identify the Qualitative characteristic of accounting information highlighted here. a) Understandability b) Consistency c) Relevance d) Reliability 2. Which one of the following is not an objective of preparation of financial statements? a) Preparation of Income Statement c) Preparation of Position Statement b) Window dressing d) Assisting accounting users in decision making 3. Pawan is a sole-proprietor and he sells goods on credit to Dhruv, who is also a trader in the same city. In the accounting books of Dhruv, Pawan will be a- a) Debtor b) Expense c) Income d) None of these 4. Which form discount is not recorded in the books of accounts? a) Cash Discount b) Rebate c) Trade Discount d) All of these 5. The nature of Purchase Account is- a) An asset b) An expense c) Liability d) Income OR The nature of closing stock is- b) An asset b) An expense c) Liability d) Income 6. By applying the Matching principle, calculate Profit from the following information- Particulars ₹ Options ₹ Opening Stock 20,000 a) 20,000 Net Purchases 90,000 b) 50,000 Closing Stock 10,000 c) 40,000 Net Sales 1,40,000 d) 60,000 7. The impact of Rent prepaid for the current year while passing adjusting journal entry will be- a) Expense- Increase & Asset- Increase c) Expense- Decrease & Liability- Decrease b) Expense- Decrease & Asset- Increase d) Expense- Increase & Asset- Decrease OR The impact of Rent prepaid on the Accounting Equation for the current year will be- a) Asset- Increase & Capital- Increase c) Asset- Decrease & Asset- Increase b) Assets- Increase & Liability- Increase d) Capital- Increase & Capital- Decrease 8. The impact of Interest on Drawings on Accounting Equation will be- c) Asset- Increase & Capital- Increase c) Asset- Decrease & Capital- Decrease d) Assets- Increase & Liability- Increase d) Capital- Increase & Capital- Decrease 9. According to ICAI, AS-3 stands for- a) Accounting Assumptions b) Inventory c) Cash Flow Statement d) Property, Plant & Equipment OR According to ICAI, AS-1 accounts for- a) Accounting Assumptions b) Inventory c) Cash Flow Statement d) Property, Plant & Equipment 10. According to Revenue Recognition concept (AS-9), the revenue is said to be realised when- a) Significant risk & reward of ownership is transferred c) Revenue and costs are reliably measured b) Legal right to receive it arises with certainty of collection d) All of these 11. This concept requires that business transactions should be recorded in such a manner that profits are not overstated. a) Materiality b) Prudence c) Revenue recognition d) Historical Cost 1 12. Explain the given accounting terms (Any three)- (3) a) Expense b) Revenue c) Gain d) Trade Discount 13. Explain the given Accounting Assumptions- Going Concern, Consistency & Accrual. (3) OR Explain the given Accounting Principles- Dual aspect, Accounting period & objectivity. 14. Explain how the following users are interested in accounting information? (3) a) Creditors b) Lenders c) Government agencies 15. Saurabh started a business of stationery on 1st July, 2024 with ₹ 5,00,000 as an initial investment. On 3rd July, 2024, he paid ₹ 1,00,000 for Machinery, ₹ 2,00,000 for buying stationery items. He employed a sales person and clerk. At the end of the month he paid ₹ 5,000 as their salaries. Out of the stationery bought he sold some stationery for ₹ 1,50,000 for cash and some other stationery for ₹ 1,00,000 on credit basis to Ravi. Subsequently, he bought stationery items of ₹ 1,50,000 from Rahul. A part of machine costing ₹ 40,000 was sold for ₹ 45,000. From the above, answer the following: (4) a) What is the amount of fixed asset left? c) What is the value of the goods purchased? b) Who is the creditor and state amount payable to him? d) What is the gain he earned? OR Identify relevant accounting concepts or principles in the following cases. a) If a business receives an order for goods, it would not be included in the sales figure. b) The management of a firm is remarkably incompetent, but the firm’s accountant cannot take this into account while preparing book of accounts. c) A business is separate and distinguishable from its owner. d) Everything a firm owns, it also owns out to somebody.
16. Prepare necessary ledgers form the given Journal Entries and Balance them. (4) Date Particulars Dr. (₹) Cr. (₹) Cash A/c…Dr. 50,000 - July 20 To Capital A/c - 50,000 Purchase A/c…Dr. 10,000 - July 23 To Cash A/c - 10,000 Cash A/c…Dr. 15,000 - July 30 To Sales A/c - 15,000 17. Prepare an Accounting Equation from the given transactions. (6) T. No. Transactions ₹ 1 Commenced business with cash 1,50,000 2 Purchased machinery on credit from JCB Ltd. 40,000 3 Purchased goods for cash from Sanu 20,000 4 Purchased car for personal use 60,000 5 Paid to JCB Ltd. in full settlement 38,000 6 Sold goods for cash costing ₹ 5,000 4,500 18. Pass necessary Journal Entries from the following transactions of M/s Samrat & Sons. (6) Transactions ₹ 1 Goods returned to Krishna 3,000 2 Goods return by Sohan 4,000 3 Interest on Drawings 600 4 Paid in full settlement to Rahul to whom owed ₹ 30,000 29,700 5 Amount recovered from Ravi who was written-off as Bad Debt last month 1,000 6 Paid Rent out of which ₹ 3,000 is for the next month 18,000 OR Pass necessary Journal Entries from the following transactions of M/s Saksham & Sons. Transactions ₹ 1 Goods lost by fire 5,000 2 Deposited Cash into bank from personal savings 4,000 3 Interest on Capital 900 4 Received in full settlement from Rahul who owed us ₹ 40,000 39,300 5 Amount received from sale of scrap (Newspaper) 1,000 6 Income Tax paid by Saksham 18,000
