Accounts All Sample Papers Combined 24-25

Class 11 - Accountancy
Sample Paper - 02 (2023-24)
Maximum Marks: 80
Time Allowed: : 3 hours
General Instructions:
1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.
3. Question 1 to 17 and 27 to 29 carries 1 mark each.
4. Questions 18 to 20 and 30 to 32 carries 3 marks each.
5. Questions from 21 to 23 carries 4 marks each.
6. Questions from 24 to 26, 33 and 34 carries 6 marks each.
Part A
1. When goods are purchased against cash, the purchaser will get:
a) Cash Memo
b) Accounting Voucher
c) None of these
d) Invoice
2. Assertion (A): Environmental protection groups are one of the multiple external users of accounting information.
Reason (R): Social responsibility groups want to know the impact of business on the environment and steps taken by an
enterprise for the protection of the environment.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
3. Which of the following accounts has a credit balance?
a) Discount Allowed
b) Discount Received
c) Carriage Inward
d) Carriage Outward
4. Purchase of furniture on credit means:
a) increase in asset and increase in liability
b) the decrease in asset and increase in liability
c) increase in asset and decrease in liability
d) the decrease in asset and decrease in liability
OR
Difference between assets and liabilities is

a) Capital
b) Drawings
c) Cash
d) Liabilities
5. Cash memo is prepared when goods are sold
a) both on credit and cash
b) on credit
c) none of these
d) on cash
6. Which branch of accounting deals with information related to cost:
a) Cost accounting
b) Financial accounting
c) Management accounting
d) All of these
OR
Which of the following is the process of entering business transactions of financial character in the books of original entry
in terms of money?
a) Summarising
b) None of these
c) Interpretation
d) Classifying
7. Under what situations does a business invest the fund outside
A. Ready cash is required at a future date
B. The funds cannot be profitably invested in the business itself
a) (A)
b) Both (A) and (B)
c) None of these
d) (B)
8. Capital Account is a:
a) None of these
b) Artificial Personal Account
c) Representative Personal Account
d) Natural Personal Account
OR
According to Modern approach, the decrease in assets will be?

a) Credited
b) Added to the liability
c) Debited
d) Deducted from the liability
Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions:
A business purchased goods for ₹ 2,00,000 and sold 75% of such goods during accounting year ended 31st March 2020.
The market value of remaining goods was ₹ 43,000. Accountant valued closing stod at cost. According to him,
i. Owner of the business is treated as creditor to the extent of his capital;

ii. All expenses incurred to earn revenue or a particular period should be charged against that revenue to determine the net
income:
Financial statements are prepared on 31st March every year.
9. A business purchased goods for ₹ 200,000 and sold 75% of such goods during the accounting year ended 31st March, 2020.
The market value of the remaining goody was ₹ 43,000 Accountant valued closing stock it cost: Identify the concept
violated in the above situation.
a) Matching
b) Conservatism
c) Business entity
d) Accounting period
10. Under which concept owner of the business is treated as creditor to the extent of his capital.
a) Conservatism
b) Business entity
c) Matching
11. is the reserve, which is created for some specific purpose and can be utilised only for that purpose.
a) Capital reserve
b) Specific reserve
c) Revenue reserve
d) General reserve
12. The nature of capital is .
a) an income
b) a liability
c) an expense
d) an asset
13. Calculate the amount of sales return- Returned by Jitendar Woods- 1 Dressing Table of list price Rs.1,700 each. Trade
Discount was 10%.
a) Rs.1,700
b) Rs.170
c) Rs.150
d) Rs.1,530
14. Accounting equation may effect
a) Only one side by increasing / decreasing it by equal amount
b) None
c) Both
d) Both side of equation by equal amount
15. Expenditure on purchase of machinery is a
a) Deferred revenue expenditure
b) Revenue expenditure
c) None of these
d) Capital expenditure
OR
The person, firm or institution who does not pay the price in cash for the goods purchased or the services received is called:
a) Proprietor
b) Debtor
c) Creditor
d) None of these
16. Calculate the purchase amount in this transaction given below. Brought from Ajay book House, 25 Dozen Pencils @ Rs.30
per dozen, 20 Dozen Ball pens @ Rs.10 per pen, Trade discount 10%
a) Rs.3,589
b) Rs.2,835
c) Rs.4,521
d) Rs.2,538
17. Profit on sale of fixed asset is used to create:
a) Capital Reserve
b) Specific Reserve
c) None of these
d) General Reserve
18. Explain the procedure for balancing a ledger account.
OR
You are required to fill the missing journal entries:

Amount Amount
Date Particulars L.F.
(Rs) Cr. (Rs)
A/c Dr. 35,000
(i) To 35,000
(Being wages outstanding)
Purchases A/c Dr.
To Sahil
To Cash A/c
(ii)
To Discount Received A/c
(Being the goods of Rs 40,000 purchased from Sahil @ 10% Trade Discount and
5% Cash Discount. Half of the amount was paid at the time of purchase)
Cash A/c Dr.
A/c Dr.
(iii) To Pawan 3,000
(Being Pawan was declared insolvent and cash received from him 45 paise in a
rupee in full settlement)
19. What is meant by the cash basis of accounting? Why is the cash basis of accounting not popular as a system of accounting?
OR
What do you mean by accounting standards? Explain the nature of accounting standards.
20. What is the difference between trade discounts and cash discounts?
21. The following trial balance has been prepared by an inexperienced accountant. Redraft it in the correct form:-
Name of Accounts Balance Dr. Balance Cr.
₹ ₹
Land and Building 1,20,000
Plant and Machinery 92,000
Wages 18,200
Discount Allowed 1,620

Discount Received 730
Purchases 1,26,000
Sales 2,40,000
Return Inwards 6,500
Return Outwards 3,370
Opening Stock 15,000
Debtors 30,000
Creditors 20,000
Carriage on Sales 3,280
Carriage on Purchase 2,800
Insurance 1,500
General Expenses 6,100
Cash in Hand 2,400
Bank Overdraft 12,100
Capital 1,54,000
Drawings 4,800
Total 4,30,200 4,30,200

22. Prepare petty cash book from the following transactions. The imprest amount is ₹ 2,000.
2017 January ₹
01 Paid cartage 50
02 STD charges 40
02 Bus fare 20
03 Postage 30
04 Refreshment for employees 80
06 Courier charges 30
08 Refreshment of customer 50
10 Cartage 35
15 Taxi fare to manager 70
18 Stationery 65
20 Bus fare 10
22 Fax charges 30
25 Telegrams charges 35
27 Postage stamps 200
29 Repair on furniture 105
30 Laundry expenses 115
31 Miscellaneous expenses 100

23. From the following particular, prepare the bank reconciliation statement of Shri Krishan as on 31st March, 2017
i. Balance as per pass book is ₹ 10,000.
ii. Bank collected a cheque of ₹ 500 behalf of Shri Kishan but wrongly credited it to Shri Kishan’s account.
iii. Bank recorded a cash deposit of ₹ 1,589 as ₹ 1,598.
iv. Withdrawal column of the passbook undercast by ₹ 100.
v. The credit balance of ₹ 1,500 as on the passbook was recorded in the debit balance.
vi. The payment of a cheque of ₹ 350 was recorded twice in the passbook.
vii. The passbook showed a credit balance for a cheque of ₹ 1000 deposited by Shri Kishan.
OR
From the following information provided by Gokul, prepare his Bank Reconciliation Statement as on 31st March, 2019:
i. Bank overdraft as per Pass Book. ₹ 16,500
ii. Cheques issued but not presented for payment. ₹ 8,750
iii. Cheques deposited with the bank but not collected. ₹ 10,500
iv. Cheques recorded in the Cash Book but not sent to the bank for collection. ₹ 2,000
v. Payments received from customers directly by the bank. ₹ 3,500
vi. Bank charges debited in the Pass Book. ₹ 200
vii. Premium on life policy of Gokul paid by the bank on standing advice. ₹ 1,980
viii. A bill for ₹ 3,000 (discounted with the bank for ₹ 2,850 in February) dishonoured on 31st March, 2019 and noting
charges paid by the bank. ₹ 100
ix. Bank debited Car loan instalment of ₹ 15,700, including interest of ₹ 2,700, which is not recorded in Cash Book.
24. Journalise the following transactions:
i. Sold goods costing ₹ 60,000 to Deepak against cheque at a profit of 40% on cost less 20% Trade Discount and paid
carriage ₹ 500 (not to be charged from the customer).
ii. Sold goods costing ₹ 45,000 to Mayank at a profit of 33 31 % on cost less 20% Trade Discount and paid carriage ₹ 400
(to be charged from the customer).
iii. Paid by Cheque ₹ 6,000 as a fire insurance premium for a period of 12 months starting 1st July 2022. Financial year
closes on 31st March every year.
iv. Spent ₹ 300 for the refreshment of a customer.
OR
Journalise the following transactions in the books of Bhushan Agencies:

i. Received from Bharat cash ₹ 20,000, allowed him discount of ₹ 500.
ii. Received from Vikas ₹ 35,000 by cheque, allowed him discount of ₹ 750.
iii. Received from Akhil ₹ 38,000 in settlement of his dues of ₹ 40,000 in cash.
iv. Received from Amrit ₹ 50,000 by cheque on account against dues of ₹ 60,000.
v. Paid cash ₹ 40,000 to suresh, availed discount of 2%.
vi. Paid by cheque ₹ 25,000 to Mehar and settled her dues of ₹ 26,000.
vii. Paid ₹ 25,000 to Yogesh by cheque on account.
viii. Purchased goods costing ₹ 1,00,000 against cheque and availed discount of 3%.
ix. Purchased goods costing ₹ 60,000 from Akash & Co., paid 50% immediately availing 3% discount.
x. Sold goods of ₹ 30,000 against cheque allowing 2% discount.
xi. Sold goods of ₹ 60,000 to Vimal received 50% of due amount allowing 2% discount.
25. Correct the following errors: (1) without Suspense Account and (2) with Suspense Account:
i. Sales Book has been totalled ₹1,000 short.
ii. Goods worth ₹1,500 returned by Green & Co., have not been recorded anywhere.
iii. Goods purchased of ₹2,500 was posted to debit of the supplier, Ravi.
iv. Furniture purchased from Gulab & Co., of ₹10,000 has been entered in Purchases Book.
v. Cash received from Ankit ₹2,500 has not been posted in his account.
Also prepare Suspense Account.
OR
A Trial Balance showed excess credit of ₹ 2,728, which were placed in a suspense account. Later on the following errors
were located. Pass rectifying entries and prepare Suspense A/c.
i. ₹ 825, the total of purchase return book has been posted to the debit of sales return account.
ii. Goods purchased from Sunil ₹ 1,800 recorded in Sales Book as ₹ 180
iii. An item of ₹ 328 written off as a bad debt from Arvind Kumar has not been debited to Bad Debts Account.
iv. Goods purchased from X ₹ 3,500 and from Y ₹ 4,000, but were recorded in the purchase book as X ₹ 4,000 and Y ₹
3,500
v. Goods returned to Ritesh for ₹ 2,600 was correctly recorded in the return outward book but was wrongly posted to his
account as ₹ 260
vi. A sum of ₹ 2,210 stolen by an ex-employee stand debited to Suspense A/c.
vii. A sum of ₹ 500 written off as depreciation on Machinery, were not posted to the Machinery account.
26. Shiksha & Company purchased a Machinery on 1st April, 2020, for ₹ 54,000 and spent ₹ 6,000 on its installation. On 1st
December, 2021, it purchased another machine for ₹ 30,000.
On 30th June 2022, the first machine purchased on 1st April, 2020, is sold for ₹ 36,000 and on the same date it purchased
new machinery for ₹ 80,000.
On December 1, 2023, the second machine (purchased on December 1, 2021) was also sold off for ₹ 26,000.
Depreciation was provided on machinery @ 10% p.a. on Original Cost Method annually on 31st March. Give the machinery
account for four years.
OR
On 1.1.2011 Machinery was purchased for Rs 80,000. On 1.7.2012 additions were made to the account of Rs 40,000.
On 31.3.2013 machinery purchased on 1.7.2012 costing Rs 12,000 was sold for Rs 11,000 and on 30.6.2013 machinery
purchased on 1.1.2011, costing Rs 32,000 was sold for Rs 26,700. On 1.10.2013 additions were made to the amount of Rs
20,000. Depreciation was provided at 10% p.a. on the Diminishing Balance Method.
Show the Machinery Account for three years from 2011 to 2013 (Year ended 31st December).
Part B
27. Calculate the profit from the following information: Opening capital: Rs.36,000, closing capital-Rs.54,000, Drawings-
Rs.3,000, capital added during the year-Rs.6,000.Calculate profit
a) Rs.20,000
b) Rs.25,000
c) Rs.15,000
d) Rs.10,000
OR
Calculate closing capital from the following information: Drawings - Rs.7,000, profit during the year-Rs.20,000, , Capital
introduced during the year- 20,000,opening capital – Rs.70,000
a) Rs.1,30,000
b) Rs.3,12,000
c) Rs.2,03,000
d) Rs.1,03,000
28. Calculate closing stock from the information given below Opening stock: Rs.36000, Net purchases: Rs.45000, Wages:
Rs.7000, Sale: Rs.60000, Gross Loss: Rs.5000, Freight inward: Rs.6000
a) Rs.30000
b) Rs.45000
c) Rs.57000
d) Rs.29000
29. Income Tax, if given in the Trial Balance is recorded in :
a) None of these
b) Balance Sheet
c) Profit and Loss Account
d) Trading Account
OR
Stock on 31st March was valued at Rs.25000 whereas its reliable value was Rs.32000.At what price will the closing stock
shown in the final accounts?
a) Rs.32000
b) Rs.57000
c) Rs.7000
d) Rs.25000
1
30. Calculate gross profit and cost of goods sold from the following information: Net Sales ₹ 12,00,000, Gross Profit 33 3
% on
Sales.
31. What are closing entries? Give four examples of closing entries.
32. Extract of Trial Balance

as on 31st March, 2013
Name of Accounts Debit Balance(Rs) Credit Balance(Rs)
Wages Paid 66,000
Salary Paid 16,500

Additional Information
Wages Rs 6,000 and salary Rs 1,500 are outstanding.
Pass an adjusting entry and show how will this appear in final accounts.
33. The following information is available from Sachin, who maintains books of accounts on a single entry system:
1 st April, 2016 (₹) 31 st March, 2017 (₹)
Cash and Bank 20,000 21,000
Sundry Debtors 17,000 25,000
Stock 40,000 60,000
Furniture 29,000 29,000
Sundry Creditors 32,000 22,000
10% Loan from Mrs. Sachin 30,000 30,000
Sachin withdrew ₹ 5,000 from the business every month for meeting his household expenses. During the year, he sold
investments held by him privately for ₹ 35,000 and invested the amount in his business.
At the end of the year 2016 - 17, it was found that the full year’s interest on loan from Mrs. Sachin had not been paid.
Depreciation @ 10% per annum was to be provided on furniture for the full year. Shop assistant was to be given a share of
5% on the profits ascertained before charging such share.
Calculate profit earned during the year ended 31st March, 2017 by Sachin.
OR
Ram Prashad keeps his books on Single Entry System, and from them and the particulars supplied, the following figures
were gathered together on 31st March 2018 Books Debts, Rs.10,000, Cash in hand, Rs.510, Stock in Trade (Estimated)
Rs.6,000, Furniture and Fittings, Rs.1,200, Trade Creditors, Rs.4,000, Bank Overdraft, Rs.1,000. Ram Prashad stated that
he started business on 1 st April with Cash Rs.6,000 paid into bank but stocks valued at Rs.4,000. During the year he
estimated his drawings to be Rs.2,400. You are required to prepare the statement, showing the profit for the year, after
writing off 10% for depreciation on furniture and fittings.
34. From the following Trial Balance extracted from the books of A, prepare Trading and Profit & Loss Account for the year
ending 31st March, 2019 and a Balance Sheet as at that date:-
Dr.(₹) Cr.(₹)
Furniture 640
Loose Tools 6,250
Buildings 7,500
Capital Account 12,500
Bad-debts 125
Provision for Bad-debts 200
Sundry Debtors and Creditors 3,800 2,500
Stock on 1st April, 2018 3,460
Purchases and Sales 5,475 15,450
Sales Return and Purchases Return 200 125
Stationery 450
Interest Account 118
Commission 375
Cash in hand 650
Taxes and Insurance 1,250
General Expenses 782
Salaries 3,300
34,000 34,000
The following adjustments are to be made:

i. Stock in hand on 31st March, 2019 was ₹3,250.
ii. Depreciate Building at 5% and Furniture at 10%. Loose Tools are revalued at ₹5,000 at the end of the year.
iii. Salaries ₹300 and taxes ₹120 are outstanding.
iv. Insurance amounting to ₹100 is prepaid.
v. Write off a further ₹100 as Bad-Debts and provision for Doubtful Debts is to be made equal to 5% on Sundry Debtors.
vi. Half of the stationery was used by the proprietor for his personal purposes.
OR
The following is the trial balance of Swati on 31st March, 2013.

Name of Accounts Debit Balance (Rs) Credit Balance (Rs)
Purchases 3,00,000
Debtors 4,00,000
Interest earned 8,000
Salaries 60,000
Sales 6,42,000
Purchases return 10,000
Wages 40,000
Rent 30,000
Sales return 20,000
Bad Debts written-off 14,000
Creditors 2,40,000
Capital 2,00,000
Drawings 48,000
Provision for doubtful debts 12,000
Printing and stationery 16,000
Insurance 24,000
Opening stock 1,00,000
Office expenses 24,000
Provision for depreciation 40,000
4,000
11,16,000 11,16,000
Prepare the trading and profit and loss account for the year ended 31st March, 2013 and the balance sheet as at that date for
making the following adjustments.
i. Depreciate furniture and fittings by 10% on original cost.
ii. Make a provision for doubtful debts equal to 5% of debtors.
iii. Salaries for the month of March amounted to Rs 6,000 were unpaid which must be provided for. The balance in the
account includes Rs 4,000 paid in advance.
iv. Insurance is prepaid to the extent of Rs 4,000.
v. Provide Rs16,000 for office expenses.
vi. Stock valued at Rs12,000 were put up by Swati for his personal use, the cost of which has not been adjusted in the
books of accounts.
vii. Closing stock valued at Rs 1,36,000 (net realisable value Rs 1,20,000).
Maximum Marks: 80

Part A
1. Which of the following dates is irrelevant with respect to the preparation of vouchers?
a) None of these
b) Both date of transaction and date of recording transaction
c) Date of recording transaction
d) Date of transaction
2. Assertion (A): Management uses accounting information for short-term and long-term planning.
Reason (R): Accounting provide comprehensive information financial status of the company.
3. An increase in which of the following account will be recorded on the debit side?
a) Capital Account
b) Rent Received Account
c) Bill Payable Account
d) Building Account
4. From the following information find the capital : Total assets Rs. 600000, creditors Rs.100000, Loan from bank Rs.
150000
a) Rs.450000
b) Rs.250000
c) Rs.150000
d) Rs.350000
OR
What shall be the amount of Capital if Cash is ₹ 5,000; Furniture ₹ 12,000; Stock ₹ 30,000 and Creditors ₹ 6,000?
a) ₹ 41,000
b) 43,000
c) ₹ 53,000
d) ₹ 47,000
5. Accounting vouchers are prepared for
a) both cash and non-cash transactions
b) cash transactions
c) non-cash transactions
d) none of these
6. What kind of business are required to perform the recording of transaction in terms of money?
a) All of these
b) Medium-sized
c) Small-sized
d) Large-sized
OR
Which stakeholder would be most interested in the earning capacity of a business firm?
a) Government and other regulators
b) Customers
c) Investors
d) Suppliers
7. is a reserve which does not appear in the balance sheet.
a) Specific reserve
b) Secret reserve
c) Capital reserve
d) General reserve
8. Salaries Account is:
a) none of these
b) an asset account
c) an expense account
d) an liability account
OR
Sales Account is a
a) Revenue Account
b) Capital Account
c) Liability Account
d) None of these
The financial statements, comprising the Trading Ac, Profit & Loss Account Balance Sheet and Cash Flow Statement,
that are prepared from the accounting information are published for use by different entities, persons, etc. It is therefore
essential that the published information is based on defined principles, concrete concepts and conventions. Accounting
principles are the basic guidelines that provide standards for accounting practices and procedures to be followed, so that
uniformity in accounting transactions is maintained. Accounting concepts are the assumptions on the basis of which
financial statements are prepared. Accounting conventions emerge out of the accounting practices that have been
followed by various organizations. over a period of time. The generally accepted accounting principles are generally
accepted accounting standards. The concepts on the basis of which the financial statements are prepared and are agreed
upon by the accountants, acting as a foundation for accounting are called accounting concepts.
They are a uniform set of rules for uniformity and understandability of accounting information. They are derived from
experience. They are not static It needs to satisfy relevance, objectivity and feasibility. The going concern concept
assumes that the enterprise has neither any intention nor any necessity to close the business and will last for a long time.
It enables the firms to enter into long-term contracts. It enables for the charge or depreciation on assets which have fixed
life. Due to this concept prepaid expenses are treated as assets. It helps in the classification of assets and liabilities.
According to Consistency concept, the accounting principles and methods should be consistent. It should not vary every
year. It enables to compare the financial stability of the business. There needs to be consistency in the valuation of stock,
depreciation, and provisions, to enable better decision-making by the management. It doesn't mean that the accounting
methods should not change, but the nature and effect and the reason for change should be stated.
9. Which of the following is not the purpose served by Accounting standards?

a) To make the accounting very static and objective.
b) To bring uniformity and consistency in Accounting Process.
c) To see the performance and compare to other firms and years.
d) To make the accounting information meaningful to both internal and external users.
10. What are Accounting Principles also called?
a) Globally Accepted Accounting Principles
b) Globally Accepted Accounting Policies
c) Generally Accepted Accounting Policies
d) Generally Accepted Accounting Principles
11. Following are the disadvantages of secret reserves except
a) Unfair presentation of financial statements
b) Absorbing the unforeseen losses
c) Loss to shareholders
d) Mis-use by management
12. When purchased goods are returned to the suppliers, these returns are termed as:
a) Return inwards
b) Inward returns
c) Outward returns
d) Return outwards
13. Recording is made in Journal Proper of:
a) All of these
b) Adjustment Entries
c) Opening Entries
d) Closing Entries
14. The owner withdraws business assets for personal use.
a) Assets: Decrease, Liabilities: No Effect, Equity: Decrease
b) Assets: No .Liabilities: Increase, Equity: No Effect
c) Assets: Decrease, Liabilities: Decrease, Equity: Decrease
d) None of these
15. Which of the following is not a fixed asset?
i. Balance with bank
ii. Plant and Machinery
iii. Building
iv. Goodwill
a) B only
b) C only
c) A only
d) D only
OR
A person who owes money to the firm is called .

a) Supplier
b) Creditor
c) Debtor
d) None of these
16. Goods taken away by the proprietor from the business for his personal use will be recorded in:
a) Sales Book
b) Purchases Book
c) Purchases Return Book
d) Journal Proper
17. Reserves are important because they help in:
A. meeting the future contingencies
B. strengthening the financial position of the business
C. redemption of liabilities like debenture
a) (A)
b) All of these
c) (B)
d) (C)
18. Give any three points distinguishing between a journal and a ledger?
OR
On 1st April, 2019, the position of Tendulkar was as follows: Stock-in-Hand ₹ 2,88,000; Bills Payable ₹ 48,000; Cash at
Bank ₹ 2,16,000; Plant and Machinery ₹ 1,20,000; Debtors ₹ 60,000; Creditors ₹ 96,000; Investment ₹ 2,40,000, Loan
from Suresh ₹ 1,80,000. What was the amount of Tendulkar's capital on the date? Pass an opening Journal entry.
19. Name the accounting concept or convention associated with the following
i. Assets are recorded at cost, irrespective of the market price.
ii. Life of a business should be divided into smaller periods.
iii. Accounting transactions should be free from bias of accountants and others.
OR
Explain verifiable objective concept or objectivity principle.

20. Distinguish between Capital Expenditure and Revenue Expenditure.
21. Following balances were extracted from the books of Rajesh Associates as at 31st March, 2023:
(₹) (₹)
Sundry Debtors 4,10,000 Stock (April 1, 2022) 2,30,000
Sundry Creditors 80,000 Premises 12,00,000
Rent and Taxes 48,000 Fixtures & Fittings 3,10,000
Purchases 34,00,000 Bad Debts written off 8,000
Sales 56,00,000 Rent received from sub-let of part of premises 30,000
Trade Expenses 12,000 Loan from Rahul 1,50,000
Returns Outwards 80,000 Interest on Rahul's Loan 15,000
Returns Inwards 1,20,000 Drawings 40,000
Expenses 4,000 Cash in hand 75,000
Motor Vehicles 6,50,000 Stock on 31st March, 2023
Electricity 25,000 (not adjusted) 3,80,000
You are required to prepare the trial balance treating the difference as his capital.
22. Enter the following transactions in the Two Column Cash Book of Mr. Mahesh:
2023 ₹
Jan. 1 Cash in Hand 2,200
Cash at Bank 50,000
Jan. 3 Purchased goods for ₹ 75,000; Trade Discount 20%; CGST 6%, SGST 6%; Payment made by Cheque
Jan. 4 Sold goods for ₹ 40,000; Trade Discount 15%; IGST 12%; Payment received by Cheque
Jan. 5 Received a cheque from Nilesh 1,000
Jan. 8 Cheque received from Nilesh endorsed to Sohan in full settlement of his account of ₹ 1,050
Jan. 10 Paid Life Insurance premium of Mr. Mahesh 100
Jan. 13 Received a cheque from Preetam in full settlement of his account of ₹ 750. 700
Jan. 16 Preetam's cheque returned dishonoured by bank
Jan. 20 Deposited into Bank, the balance of Cash in excess of ₹ 250
23. Malhotra and Sons find that the bank balance shown by their Cash Book on December 31, 2023 is ₹ 40,500 (credit) but
the Pass Book shows a difference due to the following reasons:
i. A cheque for ₹ 5,000 drawn in favour of Manoj has not yet been presented for payment.
ii. A post-dated cheque for ₹ 900 has been debited in the bank column of the Cash Book but it could not have been
presented in any case.
iii. Cheques totaling ₹ 10,200 deposited with the Bank have not yet been collected and an another cheque for ₹ 4,000
deposited in the account has been dishonoured.
iv. A bill payable for ₹ 10,000 was retired by the Bank under a rebate of ₹ 150 but the full amount of the bill was
credited in the bank column of the Cash Book.
Prepare a Bank Reconciliation Statement and find out the balance as per Pass Book.
OR
Draw bank Reconciliation statement showing adjustment between your cash book and pass book as on 31st March 2011.
i. On 31st March 2011, your passbook showed a balance of Rs.6,000 to your credit.
ii. Before that date, you had issued cheques amounting to Rs.1,500 of which cheques of Rs.900 have been presented for
payment.
iii. A cheque of Rs.800 paid by you into the bank on 29th March 2011 is not yet credited in Passbook.
iv. There was a credit of Rs.85 for interest on current account in the passbook.
v. On 31st March 2011, a cheque for Rs. 510 received by you and was paid into bank but the same was omitted to be
entered in cash book.
[Balance as per Cash Book- ₹ 5,605]
24. Journalise the following transaction in the Book of M/s Beauti traders. Also post them in the ledger.
2017 (₹)
Dec. 01 Started business with cash 2,00,000
Dec. 02 Bought office furniture 30,000
Dec. 03 Paid into bank to open a current account 1,00,000
Dec. 05 Purchased a computer and paid by cheque 2,50,000
Dec. 06 Bought goods on credit from Ritika 60,000
Dec. 08 Cash sales 30,000
Dec. 09 Sold goods to Karishna on credit 25,000
Dec. 12 Cash paid to Mansi on account 30,000
Dec. 14 Goods returned to Ritika 2,000
Dec. 15 Stationery purchased for cash 3,000
Dec. 16 Paid wages 1,000
Dec. 18 Goods returned by Karishna 2,000
Dec. 20 Cheque given to Ritika 28,000
Dec. 22 Cash received from Karishna on account 15,000
Dec. 24 Insurance premium paid by cheque 4,000
Dec. 26 Cheque received from Karishna 8,000
Dec. 28 Rent paid by cheque 3,000
Dec. 29 Purchased goods on credit from Meena Traders 20,000
OR
Journalise the following transactions in the books of Mohan, Delhi:

i. Raj of Alwar, Rajasthan who owed Mohan ₹ 25,000 became insolvent and received 60 paise in a rupee as full and
final settlement.
ii. Mohan owes to his landlord ₹ 10,000 as rent.
iii. Charge depreciation of 10% on furniture costing ₹ 50,000.
iv. Salaries due to employees ₹ 20,000.
v. Sold to Sunil goods in cash of ₹ 10,000 less 10% trade discount plus CGST and SGST @ 6% each and received a net
of ₹ 8,500.
vi. Provided interest on capital of ₹ 1,00,000 @ 10% per annum.
vii. Goods lost in theft ₹ 5,000, which were purchased paying IGST @ 12% from Alwar, Rajasthan.
25. There was an error in the Trial Balance of Mr. Iron on 31st March, 2023, and the difference in Books was carried to a
Suspense Account. Ongoing through the Books you find that:
i. ₹ 5,400 received from Mr. A was posted to the debit of his account.
ii. ₹ 1,000 being purchases return were posted to the debit of Purchases Account.
iii. Discount received ₹ 2,000 was posted to the debit of Discount Account.
iv. ₹ 2,740 paid for Repairs to Motor Car was debited to Motor Car Account as ₹ 1,740
v. ₹ 4,000 paid to B was debited to A’s Account.
Give Journal Entries to rectify the above errors and ascertain the amount transferred to Suspense Account on 31st March,
2023 by showing the Suspense Account, assuming that the Suspense Account is balanced after the above corrections.
OR
Following errors were identified in the books of Prasad. Pass necessary entries to rectify them:
i. ₹5,000 paid for furniture purchased has been charged to the ordinary Purchases Account.
ii. Repairs made were debited to the Building Account for ₹500.
iii. An amount of ₹1,000 withdrawn by the proprietor for his personal use has been debited to the Trade Expenses
Account.
iv. ₹1,000 paid for rent debited to the Landlord’s Account.
v. Salary of ₹1,250 paid to a clerk, has been debited to his Personal Account.
vi. ₹1,000 received from Shah & Co. has been wrongly entered as from Shaw & Co.
vii. ₹7,000 paid in cash for a printer was charged to the Office Expenses Account.
26. On 1st April, 2019 Manwar Ltd purchased 10 machines of ₹ 30,000 each. On 30th June, 2016. one machine out of the 10
machines purchased on 1st April, 2019 was sold for ₹ 24,000 and on 31st December, 2021 one more machine was sold
for ₹ 22,500. A new machine was purchased on 30th September, 2022 for ₹ 32,000. The company has adopted the
practice of providing depreciation at 10% per annum on original cost of machine. The company closes its books on 31st
March, every year. You are required to prepare machinery account upto 31st March, 2023.
OR
Following balance appear in the books of M/s Anandi as on 1st April 2022:
₹
Machinery Account 60,000
Provision for depreciation A/c 36,000
On 1st April 2022, they decided to dispose off machinery for ₹ 8,400, which was purchased on 1st April 2018 for ₹
16,000.
You are required to prepare Machinery Account, Provision for Depreciation Account and Machinery Disposal A/c for
the 2022-23. Depreciation was charged at 10% p.a. on original cost method.
Part B
27. Calculate profit from the following information: Opening capital: Rs.5,000, Closing capital-Rs.7,000, Withdrawn-
Rs.1,000, Fresh capital-Rs.500
a) Rs.2,700
b) Rs.2,500
c) Rs.2,000
d) Rs.3,500
OR
As both aspects of transactions are not recorded so it is:
a) Complete and Unscientific
b) Incomplete and Scientific
c) Complete and Scientific
d) Incomplete and Unscientific
28. Expenditure which increase the earning capacity of fixed asset is a
a) Capital Expenditure
b) Revenue Expenditure
c) None of these
d) Deferred Revenue Expenditure
29. General Manager is to get Commission @ 10% on Net Profit after charging such commission. If profits before
commission is 22,000 , amount of commission will be :
a) 2000
b) 2200
c) None of these
d) 1800
OR
Prepaid Insurance appearing in the Trial Balance is shown in the Balance Sheet on the assets side because of
a) Accrual Concept
b) Materiality Principle
c) Cost Principle
d) Matching Principle
30. From the following particulars, prepare Balance Sheet as at 31st March 2018:
Dr. Cr.
Rs. Rs.
Capital - 4,00,000
Drawings 44,000 -
Debtors and Creditors 64,000 42,000
Cash in Hand 3,600
Cash at Bank 72,000 -
Plant 1,00,000 -
Furniture 37,000 -
Net Profit - 16,600
General Reserve - 10,000
Closing Stock 1,48,000
Total 4,68,600 4,68,600
31. State whether the following expenditure is Capital, Revenue or Deferred Revenue. Give reasons :
i. Furniture of the book value of ₹ 10,000 were sold off at ₹ 2,500 and new furniture of the value of ₹ 6,000 were
acquired, cartage on purchase ₹ 50.
ii. Property purchased for ₹ 20,00,000 and ₹ 1,50,000 paid for its registration and legal fee.
iii. Replacement of old machine with a new one.
iv. Damages paid by a transport company to its passengers injured in an accident.
v. Erection of shed for parking of vehicles at a cost of ₹ 10 Lac.

Particulars Debit Balance(Rs) Credit Balance(Rs)

Capital 10,000
Interest on capital to be allowed @ 12% per annum.
Show effect on profit and loss account and balance sheet.
33. The following information is available from Sachin, who maintains books of accounts on a single entry system:
1 st April, 2016 (₹) 31 st March, 2017 (₹)
Cash and Bank 20,000 21,000
Stock 40,000 60,000
Furniture 29,000 29,000
10% Loan from Mrs. Sachin 30,000 30,000
Sachin withdrew ₹ 5,000 from the business every month for meeting his household expenses. During the year, he sold
investments held by him privately for ₹ 35,000 and invested the amount in his business.
At the end of the year 2016 - 17, it was found that the full year’s interest on loan from Mrs. Sachin had not been paid.
Depreciation @ 10% per annum was to be provided on furniture for the full year. Shop assistant was to be given a share
of 5% on the profits ascertained before charging such share.
Calculate profit earned during the year ended 31st March, 2017 by Sachin.
OR
Prashad keeps his books on Single Entry System. From the following information given by him, ascertain his profit or
loss for the year ended 31st March, 2019: On 31st March, 2018 his position was: Plant and Machinery ₹ 30,000; Stock
₹ 5,000; Cash in Hand ₹ 100; Debtors ₹ 17,000; Loan from Anish ₹ 1,000 at 4% p.a. interest; Bank Overdraft ₹ 1,100
and Creditors ₹ 12,120. On 31st March, 2019 he owed to his creditors ₹ 9,170 and had paid to Anish ₹ 500 in lieu of his
loan on 1st October, 2018 but had paid no interest. He had bought additional Plant and Machinery which cost ₹ 13,000.
Debtors were ₹ 23,000 out of which ₹ 900 he would not be able to collect. The Cash and Bank Balance was ₹ 4,100.
Stock at the end was valued at ₹ 4,500. Prashad withdrew ₹ 8,300 for domestic purposes. He introduced a further capital
of ₹ 10,000 during the year.
34. From the following information prepare financial Statements of M/s Ram & Bros, for the year ending March 31, 2023.
Dr. Bal. Amount ₹ Cr. Bal. Amount ₹
Stock (1-4-2022) 16,800 Capital 78,000
Sales Returns 8,000 Sales 3,09,000
Purchases 2,43,000 Returns Outward 5,700
Freight-in 8,600 Trade Creditors 4,800
Rent and Taxes 5,700 10% Bank Loan (1-7-2022) 24,000
Salaries 9,300 Income from Investment 3,600
Trade debtors 24,000 Discount Received 2,250
Bank interest 1,000
Printing and Advertising 14,600
Cash at bank 18,300
Discount Allowed 1,340
Investment 25,000
Furniture 3,800
Audit Fees 500
Insurance 800
Travelling Expenses 3,000
Plant & Machinery 30,000
Drawings 10,000
4,27,350 4,27,350
Additional Information:
i. Depreciation on Plant and Machinery @ 10% p.a., a Machine has been purchased on July 01, 2022 for ₹ 12,000.
ii. The manager is entitled to a commission of 10% of the net profit before charging such commission.
iii. Closing stock in trade is valued at ₹ 6,000 (cost); ₹ 6,200 (Market Price).
iv. Rent outstanding ₹ 5,000.
OR
The trial balance of M/s Taj & Co as on 31st December, 2013 was as follows.
Name of Accounts Amt(Rs) Name of Accounts Amt(Rs)
Purchases 1,62,505 Sales 2,52,400
Sundry debtors 50,200 Provision for doubtful debts 5,200
Opening stock 26,725 Sundry creditors 30,526
Wages 23,137 Bills payable 3,950
Salaries 5,575 Outstanding wages 2,000
Furniture 7 250 Trade expenses accrued but not paid 700
Postage 4,226 Capital A/c 10,000
Power and fuel 1350
Trade expenses 5331
Bad debts 525
Loan to Suraj @ 10% per annum(1st September, 2013) 3,000
Cash at bank 10,000
Drawings A/c 4,452
3,04,776 3,04,776
Prepare the trading and profit and loss account for the year ended 31st December, 2013 and the balance sheet after
considering the following information.
i. Depreciation on Furniture to be charged @10%.
ii. Debtors include an item of Rs 500 due from a customer who has become insolvent.
iii. Provision for doubtful debts @ 5% on sundry debtors is to be maintained.
iv. Goods valued at Rs 1,500 destroyed by fire and insurance company admitted a claim for Rs 1,000.
v. Stock on 31st December, 2013 was Rs 12,550
Maximum Marks: 80

Part A
1. Cash Memo is a source of document prepared by the seller of the goods for
a) debit
b) credit
c) cash
d) cash and credit
2. Assertion (A): Accounting records only those transactions which can be measured in terms of money.
Reason (R): Transactions and events that are not measurable in terms of money can't be valued in Accounts.
3. Sundry Creditors Account is a:
a) Liability Account
b) None of these
c) Capital Account
d) Revenue Account
4. If total assets of a business are Rs. 550000 and outside liabilities are Rs.250000 Calculate owners equity
a) Rs.100000
b) Rs.200000
c) Rs.300000
d) Rs.500000
OR
A started business and invests Rs. 50000 on 1st April 2010. On31st March 2011, his assets are Rs.65000 and liabilities
Rs.6000. Find the amount of capital on 31st March 2011 and profit
a) Rs.50000, Rs.12000
b) Rs.65000, Rs.18000
c) Rs.55000, Rs. 15000
d) Rs.59000, Rs.9000
5. Cash Memo is
a) a journal
b) none of these
c) a source voucher
d) an accounting voucher
6. Management accounting provides valuable services to management in performing:
a) All management functions
b) Controlling functions
c) Coordinating management functions
d) None of these
OR
Which of the following is not a business transaction?

A. Purchase of goods for resale amounted to Rs 50,000
B. Paid salaries and wages amounted to Rs 10,000
C. Paid rent for office premises Rs 5,000
D. Purchased an LCD for personal use
a) Only B
b) Only D
c) Only A
d) Only C
7. When the purpose for which reserve is created is not specified, it is called .
a) General reserve
b) Revenue reserve
c) Specific reserve
d) Capital reserves
8. Drawings Account is a
a) None of these
b) Personal Account
c) Nominal Account
d) Real Account
OR
Goodwill account is a:
a) Nominal Account
b) Real Account
c) None of these
d) Personal Account

ii. All expenses incurred to earn revenue or a particular period should be charged against that revenue to determine the
net income:
9. A business purchased goods for ₹ 200,000 and sold 75% of such goods during the accounting year ended 31st March,
2020. The market value of the remaining goody was ₹ 43,000 Accountant valued closing stock it cost: Identify the
concept violated in the above situation.
a) Matching
b) Conservatism
c) Business entity
a) Conservatism
b) Business entity
c) Matching
11. How secret reserve can be created
a) All of these
b) By charging capital expenditure to revenue
c) Under valuating stock
d) By making excessive provisions
12. X is a part of the inventory of a firm. X needs further processing for converting into finished products i.e X consists of
partly finished goods or semi-finished goods. Identify X.
a) Inventory of stock-in-trade
b) Inventory of finished goods
c) Inventory of raw material
d) Inventory of work-in-progress
13. The source document for recording entries in the sales return book is generally the .
a) debit note
b) credit note
c) None of these
d) trial balance
14. When cash is withdrawn by proprietor, what is its impact on accounting equation?
a) Increase in assets, increase in capital
b) Decrease in assets, decrease in capital
c) Increase in assets, increase in liabilities
d) Decrease in assets, decrease in liabilities
15. Outstanding expense is:
a) Drawings
b) Asset
c) Liability
d) Bad debts
OR
Cash, goods or assets invested by the proprietor in the business for earning profit is called:
a) Profit
b) None of these
c) Capital
d) Fixed assets
16. A is prepared when a party is to be given a credit for reasons other than credit purchase.
a) credit note
b) None of these
c) written note
d) debit note
17. Which reserve are created for specific purpose
a) Specific Reserve
b) Dividend equalization fund
c) Capital Reserves
d) Dividend fund
18. Enumerate four advantages of Ledger.
OR
Shri Suresh Gupta purchased a running business on 1st April, 2019 at an agreed value of ₹ 10,00,000. Following are the
assets and liabilities taken over:
Land and Building ₹ 4,00,000; Plant and Machinery ₹ 4,50,000; Furniture and Fixtures ₹ 1,50,000; Stock ₹ 3,50,000;
Sundry Debtors ₹ 3,00,000; Sundry Creditors ₹ 2,50,000; Bills Payable ₹ 1,00,000; Bank Loan ₹ 3,00,000.
Pass Journal entry to record the transactions.
19. Roshan, a chartered accountant earned Rs.12,00,000 during the financial years 2012-2013. Out of which he received
Rs.10,50,000. He incurred an expense of Rs.5,10,000, out of which Rs.1,20,000 are outstanding. He also received his
fees relating to previous year Rs.1,35,000 and also paid Rs.60,000 expenses of last year. Find out Rohan's income for
2012-2013 following the cash basis and accrual basis of accounting.
OR
Describe the status of IFRS in India.

20. Classify the following into (i) Assets (ii) Liabilities (iii) Expenses and (iv) Revenues
Sales, Bank balance, Debtors, Bank Overdraft, Creditors, Salary to the manager, Discount to debtors, Cost of goods sold
21. A bookkeeper extracted the following Trial Balance as on 31st March, 2019:
Heads of Accounts Dr. Balance ₹ Cr. Balance ₹
Furniture 20,000 -
Capital - 2,00,000
Debtors 2,00,000 -
Stock (1st April, 2018) 1,04,000 -
Creditors - 80,000
Trade Expenses 50,000 -
Sales - 8,58,000
Wages 30,000 -
Stock (31st March, 2019) 98,000 -
Machinery - 50,000
Purchases 6,25,000 -
Wife's loan to the business 50,000 -
Discount Allowed - 4,000
Drawings made by the Proprietor - 45,000
Motor Van 60,000 -
Total 12,37,000 12,37,000
You are required to:

i. State the errors giving reasons.
ii. Redraft the Trial Balance correctly.
22. Determine the missing values of the Cash Book with Bank Column of Yashika the basis of the following transactions:
2017 Particular Amount (Rs)
Sept 1 Cash-in-hand 7,500
Sept 2 Paid Wages 200
Sept 5 Cash Sales 7,000
Sept 10 Cash Deposited into Bank 4,000
Sept 15 Goods Purchased and Paid by Cheque 2,000
Sept 20 Paid Rent 500
Sept 25 Drew from bank for personal use 400
Sept 30 Salary Paid 1000
Cash Book (Double Column)
Dr. Cr.
Date Cash Bank Date Cash Bank
Particular L.F. Particular L.F.
2009 (Rs) (Rs) 2009 (Rs) (Rs)
Sept By Balance
Sept 1 To Balance b/d 3,500
1 b/d
Sept By Wages
Sept 5 To Sales A/c 7,000 200
2 A/c
Sept By
Sept 10 To 4,000 4,000
10
To Balance By
Sept
Sept 30 c/d (Bank Purchases
15
Overdraft) A/c
Sept By Rent
500
20 A/c
Sept By
400
25
Sept By Salary 1,000
30 A/c
Sept By Balance
30 c/d
23. From the following particulars prepare a Bank Reconciliation Statement in the books of Mr. K.R. Yadav as on 30th June
2022:-
i. Balance as per Pass Book on 30th June 2022 ₹ 6,000.
ii. Out of total cheques amounting to ₹ 37,500 drawn by Mr. Yadav, Cheques aggregating ₹ 5,000 were encashed in June
2022, Cheques aggregating ₹ 4,000 were encashed in July 2022 and the rest have not been presented at all.
iii. Out of total Cheques amounting to ₹ 12,000 deposited, Cheques aggregating ₹ 7,500 were credited in June 2022,
cheques aggregating ₹ 2,000 were credited in July, 2022 and the rest have not been collected at all.
iv. Bank has charged ₹ 27 as its commission for collecting outstation cheques and has allowed interest ₹ 330 on his bank
balance.
v. Amount wrongly debited by bank ₹ 2,400
vi. A cheque of ₹ 1,200 was entered in the Cash Book in June 2022, but was sent to the Bank in July 2022.
vii. A cheque of ₹ 13,300 paid into the bank was returned dishonoured but no intimation was received from the bank till
June 2022.
OR
On 30th June 2014, the Cash Book of a trader shows a bank overdraft of ₹2,500. Following informations are available:
i. Cheques amounting to ₹14,600 had been paid to the bank, but of these only ₹12,200 were credited in the Pass Book,
up to 30th June, 2014.
ii. He had also issued cheques amounting to ₹10,000, but of which only Rs 3,600 had been presented for payment.
iii. A cheque of ₹500 which he had debited to the bank account was not sent to bank for collection by mistake.
iv. There is a debit in the Pass Book of ₹10 for Bank Charges and ₹50 for interest.
v. A customer directly paid into his bank ₹1,000, but it was not shown in the Cash Book.
vi. Bank has paid insurance premium of ₹400 according to his instructions, but this is not recorded in the Cash Book.
Prepare a Bank Reconciliation Statement.

24. Pass journal entries for the following transactions in the journal of Abhishek Singh.
2023
Abhishek Singh started the business with cash ₹ 1,50,000, Furniture ₹ 10,000
April 1
and Goods ₹ 60,000.
April 4 Sold goods to Parvesh of the list price of ₹ 20,000 at a trade discount of 10%.
April 6 Parvesh returned goods of the list price of ₹ 2,000.
April
Received from Parvesh ₹ 16,000 in full settlement of his account.
10
April
Purchased furniture for ₹ 12,000.
15
April
Purchased goods from Mahadev of the list price of ₹ 50,000 at 12% Trade Discount.
15
April Returned goods to Mahadev of the list price of ₹ 4,000.

18
April
Cleared the account of Mahadev by paying cash at a discount of 5%.
20
April
Sold goods to Aasha ₹ 20,000 and Seema ₹ 32,000.
21
April Received cash from Aasha ₹ 19,600 in full settlement of her account. Paid insurance premium ₹ 1,500 by
24 cheque.
April
Paid ₹ 2,400 for insurance premium for the proprietor by cheque.
25
April
Purchased goods for ₹ 16,000 for cash at a trade discount of 10% and cash discount of 2%.
26
April
Received full payment from Seema at a discount of 5% in full settlement of his account.
27
April
Paid for advertisement ₹ 2,000, salaries ₹ 8,000 and rent ₹ 1,600.
28
April
Received Commission ₹ 1,000.
30
OR
Following was the position of Mahesh & Co. as on 1st April, 2023:
Cash in Hand ₹ 10,000; Cash at Bank ₹ 16,800; Furniture ₹ 8,000; Stock ₹ 50,000; Debtors - Rishab ₹ 8,000; Raman ₹
12,000; Creditors - Arnab ₹ 4,000; Satish ₹ 5,000.
Following transactions took place during April, 2023:
2023
April 2 Received a cheque from Rishab in full settlement of his account after deducting 5% cash discount.
April 4 Deposited the above cheque into Bank.
April 5 Goods purchased for ₹ 20,000 at 10% trade discount and 5% cash discount. Payment made by cheque.
Received a cheque from Raman for ₹ 3,860 and discount allowed to him ₹ 140.
April 6
Cheque deposited into the bank on the same day.
April 10 Cash paid to Arnab after deducting 2% cash discount.

April 15 Old furniture sold for ₹ 800.
April 16 Sold goods to Ram Parshad of the list price of ₹ 10,000 at a trade discount of 15%.
April 18 Ram Parshad returned goods of the list price of ₹ 1,000.
April 20 Paid for furniture repairs to Bahadur Singh ₹ 100.
April 25 Received a cheque from Ram Parshad after deducting 4% cash discount. Cheque was deposited into bank.
April 28 Bank charged ₹ 50 for ‘Bank Charges’.
April 30 Received Commission ₹ 200.
25. Fill up the missing information in the following rectifying entries:
JOURNAL ENTRIES
Amount Amount
Dr. (₹) Cr. (₹)
(i) Dr.
To
(Purchase book undercast by ₹ 10,000)
(ii) Dr. 50,000

To 50,000
(Wages paid for the construction of office wrongly debited to wages A/c, now
rectified)
(iii) Dr.
To
To
(Credit sales to Gopal for ₹ 40,000 wrongly passed through purchase book,
now rectified)
(iv) Dr.
To
(Goods purchased for ₹ 30,000 posted to purchase account as ₹ 3,000, now
rectified)
(v) Dr. 25,000

To Bad Debts Recovered A/c 25,000
(Bad-debts recovered, wrongly posted to the credit of Jagdish Kumar, now
rectified)
(vi) Dr.
To
(Rectification of credit purchase of ₹ 32,800 from Danish Choudhary
recorded in the books as ₹ 38,200)
(vii) Dr.
To
(Goods Costing ₹ 10,000 distributed as free samples omitted to be recorded,
now recorded)
(viii) Dr.
To
(Goods returned by Manisha Traders for ₹ 7,500 omitted to be recorded, now
recorded)
OR
During the course of an accounting year, an Accountant found a difference in the trial balance. He puts this difference in
a newly opened suspense account. Subsequently, he located the following errors in his books of account:
i. Goods purchased from Satyam for ₹ 10,000, but entered in the sales book.
ii. Received a bill receivable for ₹ 18,000 from Gopal, but recorded in bills payable book.
iii. An item of ₹ 4,000 in respect of purchases returns, wrongly debited to purchases account.
iv. An item of ₹ 2,000 relating to the pre-paid salary account omitted to be brought forward.
v. Paid ₹ 1,000 on account of repair of furniture, but wrongly debited to furniture account.
Pass journal entries to rectify the above-mentioned errors and prepare suspense account assuming that no error remained
undetected.
26. On 1st April, 2020, Walter Oil Ltd. purchased a machinery for ₹ 8,00,000. On 1st January, 2023, a part of this machine
purchased on 1st April, 2020 for ₹ 1,00,000 was sold for ₹ 44,000 and on the same date, a new machine was purchased
for ₹ 1,20,000. Depreciation was provided @10% p.a. on Original Cost of the machinery and accounts are closed on 31st
March every year.
Show the Machinery Account and Machinery Disposal Account assuming that:
i. Provision for Depreciation Account is not maintained, and
ii. Provision for Depreciation Account is maintained.
OR
On 1st April 2015, Shivam Enterprise purchased second-hand machinery for ₹52,000 and spent ₹2,000 on cartage,
₹3,000 on unloading, ₹2,000 on installation and ₹1,000 as the brokerage of the middle man. It was estimated that the
machinery will have a scrap value of ₹6,000 at the end of its useful life, which is 10 years. On 31st December 2015,
repairs and renewals amounted to ₹2,500 were paid. On 1st Octorber 2017, this machine was sold for ₹30,600 and an
amount of ₹600 was paid as commission to an agent. Calculate the amount of annual depredation and rate of
depredation. Also prepare the machinery Account for first 3 years, assuming that the firm follows a financial year for
accounting.
Part B
27. When closing capital is greater than opening capital it means:
a) Profit
b) No profit, no Loss
c) Loss
d) Profit if fresh capital is not introduced
OR
myCBSEguide
Calculate profit if closing capital is Rs.14,250, additional capital is Rs.200, opening capital is Rs.11,300 and drawings @
Rs.100 per month
a) Rs.5,950
b) Rs.6,950
c) Rs.3,950
d) Rs.1,950
28. In the event of an abnormal loss (say, loss of goods by fire), the amount of loss debited is:
a) Purchase Cost of the goods
b) As per the firm's decision
c) None of these
d) Purchase Cost of the goodsplus GST Paid
29. The net profit of a firm before charging the manager’s commission is Rs 21,000. If the manager is entitled to a 5%
commission after charging such commission, how many managers will get a commission?
a) Rs 1,000
b) Rs 2,100
c) Rs 2,000
d) Rs 1,050
OR
Accrued Income, if given outside the Trial Balance is shown in:

a) Profit and Loss Account
b) Balance Sheet
c) Trading Account
d) P & L Account and Balance Sheet
30. Classify the following into Capital, Revenue and Deferred Revenue expenditure, stating reasons in each case:
i. A sum of ₹ 32,000 has been spent on a machine as follows:
a. ₹ 20,000 for addition to double the output,
b. ₹ 5,000 for repairs necessitated by negligence and
c. ₹ 7,000 for replacement of worn-out parts.
ii. Total expenditure on a cinema building during the year was ₹ 2,00,000 out of which 20% related to repairs and 80%
represented improvements and additions.
iii. Compensation paid to a retrenched employee for the loss of employment.
iv. Second-hand furniture worth ₹ 40,000 was purchased and repairing of this furniture cost ₹ 15,000. The furniture was
installed by own workmen-wages for this being ₹ 5,000.
v. A person was injured by the motor car of the company. ₹ 10,000 was paid to him by way of compensation.
vi. Advertisement expenditure on special advertisement drives.
31. From the following details, calculate Opening Inventory:
Closing Inventory ₹ 60,000; Total Revenue from Operations ₹ 5,00,000 (including cash revenue from operations ₹
1,00,000); Total purchases ₹ 3,00,000 (including credit purchases ₹ 60,000). Goods are sold at a profit of 25% on cost.
32. Dilip, the proprietor of Ultra Sales, had written off ₹ 20,000 receivable from Jatin as bad debts, he was unable to pay. In
the current year, Dilip received ₹ 5,000 from Jatin. Pass Journal entry and show how it will be shown in the Profit and
Loss Account.
33. Gokul Das maintains incomplete records of his business. He wants to know the result of his business on 31st March,
2013 and for that following information are available
items 1st April, 2012 (Rs) 31st March, 2013(Rs)
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10 / 34
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Cash in hand 1,50,000 1,75,000
Bank balance 7,50,000 6,00,000
Furniture 1,00,000 1,00,000
Stock 5,00,000 4,50,000
Creditors 3,50,000 4,00,000
Debtors 2,50,000 3,00,000
Personal expenses of Gokul Das paid from business account amounted to Rs 4,80,000 and goods worth Rs 20,000 were
withdrawn by him for personal use. He sold ornaments of his wife for Rs 3,50,000 and invested that amount into the
business. Calculate his profit or loss.
OR
Mrs. Vandana runs a small printing firm. She was maintaining only some records, which she thought, were sufficient to
run the business. On April 01, 2016, available information from her records indicated that she had the following assets
and liabilities: Printing Press ₹ 5,00,000, Buildings ₹ 2,00,000, Stock ₹ 50,000, Cash at bank ₹ 65,600, Cash in hand ₹
7,980, Dues from customers ₹ 20,350, Dues to creditors ₹ 75,340 and Outstanding wages ₹ 5,000. She withdrew ₹ 8,000
every month for meeting her personal expenses. She had also introduced ₹ 15,000 during the year as additional capital.
On March 31, 2017, her position was as follows:
Press ₹ 5,25,000, Buildings ₹ 2,00,000, Stock ₹ 55,000, Cash at bank ₹ 40,380, Cash in hand ₹ 15,340, Dues from
customers ₹ 17,210, Dues to creditors ₹ 65,680.
Calculate the profit made by Mrs. Vandana during the year using the statement of affairs method.
34. Prepare Trading and Profit and Loss Account and Balance Sheet from the following Trial Balance and information as on
31st March, 2023:
Name of Account Dr. (₹) Cr. (₹)
Drawings and Capital 15,000 3,25,000
Plant and Machinery 2,00,000
Motor Vehicle 1,50,000
Return Inward and Outward 25,000 37,000
Stock on 1st April, 2022 82,000
Purchases and Sales 4,40,000 6,75,000

Carriage Inward 6,000
Trade Expenses 2,500
Bad Debts 4,250
Provision for Doubtful Debts 6,000
Commission 4,000
Rent, Rates & Taxes 12,000
Salaries and Wages 24,000
Fuel and Water 4,750

11 / 34
Cash in Hand 16,500
Cash at Bank 50,000
Total 11,02,000 11,02,000
Adjustments:
i. Closing Stock was valued at ₹ 1,12,500.
ii. Commission include ₹ 1,200 being commission received in advance.
iii. Salaries and wages is outstanding for the month of Feb. & March, 2023.
iv. Depreciate Plant & Machinery by 15% and Motor Vehicle by 20%.
v. Write off ₹ 500 as further Bad Debts and maintain provision for doubtful debts at 1% on debtors.
OR
From the following balances extracted from the books of Karan and the additional information, prepare the trading and
profit and loss account for the year ended 31st March, 2013 and also show the balance sheet as on that date.
Debit Credit
Name of Accounts
Amount Amount
(Rs. in 000's) (Rs. in 000's)
Stock on 1st April 2012 625
Purchases and sales 903 1,372
Returns 22 13
Capital A/c 300
Drawings 45
Land and Buildings 300
Furniture and fittings 80
Trade debtors and trade creditors 250 450
Cash in hand 35
Investments 100
Interest 5
Commission 30
Direct expenses 75
Postage, stationery, and telephone 25
Fire insurance premium 20
Salaries 90
Bank overdraft 400
2,570 2,570
====== ======
i. Closing stock on 31st March 2013 is valued at Rs 6,50,000. Goods worth Rs 5,000 are reported to have been taken
away by the proprietor for his personal use at home during the year.
ii. Interest on investments Rs 500 is yet to be received while Rs 10,000 of the commission received is yet to be earned.
iii. Rs 5,000 of the fire insurance premium paid is in respect of the quarter ending 30th June 2013.
iv. Salaries Rs 10,000 for March 2013 and bank overdraft interest estimated at Rs 20,000 are yet to be recorded as
outstanding charges.
v. Depreciation is to be provided on land and buildings @ 5% per annum and on furniture and fittings @ 10% per
annum.
vi. Make a provision for doubtful debts @ 5% of trade debtors
Maximum Marks: 80

Part A
1. Books of Account are written on the basis of:
a) None of these
b) Source Document
c) Accounting Vouchers
d) Both the Source Document and Accounting Vouchers
2. Assertion (A): If Cash = ₹20,000, Machinery = ₹30,000, Stock = ₹10,000, Creditors = ₹40,000, then the net worth of
the firm is ₹20,000.
Reason (R): Capital = Liabilities - Assets.
3. Outstanding salary is a:
a) None of these
b) Real Account
c) Nominal Account
d) Personal Account
4. X commenced business on 1st April 2013 with a capital of Rs 6,00,000. On 31st March 2014, his assets were worth Rs
8,00,000 and liabilities Rs 50,000. Find out his closing capital.
a) Rs 5,50,000
b) Rs 7,50,000
c) None of these
d) Rs 2,00,000
OR
The company has collected money from its debtors by cheque.What is the effect on assets and liabilities
a) Decrease creditors
b) Decrease debtor
c) No effect
d) Increase Creditors
5. A voucher can be used as?
a) Bill Receivable
b) Cheque
c) Bill Payable
d) Evidence in the Court
6. Which of the following is treated as an asset?
a) Interest received in advance
b) Accrued interest
c) Outstanding interest
d) Interest received
OR
Following are the advantages of Double entry system except

a) Compare study
b) Minimize fraud
c) Can not prepare trail balance
d) Check on accuracy
7. The amount set aside for the purpose of providing any known liability, the amount of which cannot be ascertained with
reasonable accuracy, is known as
a) Reserve
b) Provision
c) Contingency fund
d) None of these
8. Sale of goods to Ram for cash is debited to:
a) Ram A/c
b) Sales A/c
c) None of these
d) Cash A/c
OR
Debit mean
a) a decrease in asset
b) an increase in the proprietor’s equity
c) an increase in asset
d) an increase in liability

11. Provisions are:
a) external transactions
b) none of these
c) internal transactions
d) Can be external transactions and internal transactions
12. Which of the following is not a business transaction?
A. Bought furniture of Rs 25,000 for business.
B. Paid for salaries of employees, Rs 20,000.
C. Cash is withdrawn from a personal bank account, Rs 10,000 for domestic use.
a) All of these
b) Only A
c) Only B
d) Only C
13. Calculate the amount of sales return: 5 Tables @Rs.150 each, 10 Chairs @ Rs.100 each, Trade discount@10%
a) Rs.1,750
b) Rs.1,925
c) Rs.1,500
d) Rs.1,575
14. The Basic accounting equation is
a) Assets = Expenses + Capital
b) Asset = Expense + Income
c) Assets= Cash + Capital
d) Assets = Capital + Liabilities
15. Which of these is not a part of current liabilities?
a) Creditors
b) Bank overdraft
c) Bills payable
d) Debentures
OR
Which one of the following is not a fictitious asset?

a) Deferred revenue expenditure
b) Loss on issue of debentures
c) Goodwill
d) Discount on issue of shares
16. A is a document evidencing a debit to be raised against a party for reasons other than sale on credit.
a) written note
b) None of these
c) credit note
d) debit note
17. Which of the following is not a type of reserve
a) Provision for bad debt
b) General reserve
c) Retained earnings
d) Workmen compensation fund
18. A ledger provides a number of utilities. List any three such utilities.
OR
Oswal Woollen Mills, Amritsar (Punjab) sold shawls to Gupta Shawls, Jaipur as per details: Sold 100 shawls @ ₹ 200
per shawl on 4th January, 2019, IGST is levied @ 12%. Trade Discount 25% and Cash Discount 5% if full payment is
made within 14 days. Gupta Shawls sent 50% of the payment on 14th January, 2019 and balance payment on 10th
February, 2019. Pass Journal entries.
19. Explain the meaning of any three of the following terms:
i. Full Disclosure
ii. Consistency
iii. Materiality
iv. Conservatism
OR
Accounting Standards have been evolved to improve the reliability and credibility of Financial Statements. Accounting
Standards provide the solution in case of conflicts among various groups. In light of this statement, enumerate the
objectives of Accounting Standards.
20. Explain the meaning of the following terms:
i. Assets
ii. Capital
iii. Goods
21. From the following list of balances extracted from the books of K. Rajkumar & Sons, prepare a Trial Balance as at 31st
March, 2023. The amount required to balance should be entered as capital.
₹ ₹
Purchases 18,20,000 Proprietor’s withdrawals 60,000
Stock on 1st April, 2022 3,50,000 Sundry Debtors 3,60,000
Sales 40,00,000 Sundry Creditors 1,20,000
Sundry Expenses 15,000 Bad Debts 10,000
Leasehold Premises 5,00,000 Investments @ 10% 2,00,000
Freehold Premises 18,00,000 Interest on Investments 20,000
Return Inwards 25,000 Long-term borrowings 6,00,000
Furniture and Fixtures 2,90,000 Loan from U.T.I. Bank 8,00,000
Equipment 8,00,000 Interest on Loan 65,000
Repairs to Equipment 5,000 Petty Cash Account 400
Depreciation 80,000 Balance at Bank 34,600
Stock on 31.3.2023 (not adjusted) 4,60,000
22. Record the following transactions in a Cash Book with Cash and Bank Columns:
2022 ₹
June 1 Cash-in-hand 3,151
Cash at Bank 91,401
June 2 Received a cheque for rent and paid it into bank 990
June 5 Bought goods for ₹ 50,000; Trade Discount 20 %. Payment made by cheque. (CGST 6%, SGST 6%)
June
Paid trade expenses 120
15
June
Paid rent 400
16
June
Paid insurance charges 100
17
June Sold goods for ₹ 80,000, Trade Discount 10% (CGST 6%, SGST 6%); Received a cheque for the
25 same.
June
Received cheque from Harish & Co. 6,000
28
June
Purchased 100 National Plan Certificates of ₹ 100 each @ ₹ 95 each and paid for them by cheque
30
23. On 30th June, 2023, the bank Column of Anuj’s Cash Book showed a balance of ₹8,250. On examination of the Cash
Book and bank statement you find that:
i. Out of total cheques amounting to ₹8,000 issued, cheques amounting to ₹5,800 have been presented for payment
upto 30th June, 2023.
ii. Out of total cheques amounting to ₹6,000 sent to bank for collection, cheques of ₹4,100 were credited in Pass Book
upto 30th June, 2023.
iii. On 28th June a customer deposited ₹3,500 direct in the bank account but it was entered only in the Pass Book.
iv. Debit side of Anuj’s Cash Book (Bank Column) has been overcast by ₹ 100.
v. No entry has been made in the Cash Book for the Rent of ₹800 paid by bankers according to Anuj’s standing
instructions.
vi. The Pass Book showed a credit of ₹320 for interest and a debit of ₹40 for bank charges, but these have not been
entered in the Cash Book.
Prepare a Bank Reconciliation Statement as on 30th June, 2023.
OR
Black White Ltd. maintains a current account with the State Bank of India. On 31st March, 2023, the bank column of its
cash book showed a debit balance of ₹ 1,54,300. However, the bank statement showed a different balance as on that date.
The following were the reasons for the difference:
₹
(i) Cheques deposited, but not yet credited by the bank 75,450
(ii) Cheques issued, but not yet presented for payment 80,760
(iii) Bank charges not yet recorded in the cash book 1,135
(iv) Cheques received by the bank directly from trade debtors 1,35,200
(v) Insurance premium paid by the bank as per standing instructions, but not yet recorded in the cash book 15,400
(vi) Dividend collected by the bank, but not yet recorded in the cash book 1,000
Find out the balance as per the bank statement as on 31st March, 2023.
24. M/s Koina supplier sold on credit
i. Two water purifiers @ ₹ 2,100 each and five buckets @ 130 each to M/s Raman Traders (Invoice no.178 dated 6th
April, 2014).
ii. Five road side container @ ₹ 4,200 each to M/s Nutan enterprise (Invoice no. 180 dated 9th April, 2014).
iii. 100 big buckets @ ₹ 850 each to M/s Raman traders (Invoice no.209, dated 28th April, 2014).
Write journal entries for the same.
OR
Pass Journal Entries for the following:

2023 March 2 Purchased an Iron Safe for business for ₹ 1,00,000 and payment made by cheque.
2023 March 3 Purchased filing cabinet for office use ₹ 40,000 and paid ₹ 200 as cartage on it.
2023 March 4 Purchased a Computer from Shyam & Co. for ₹ 80,000 on credit.
2023 March 5 Purchased an electric fan for ₹ 20,000.
2023 March 6 Purchased a Horse for business for ₹ 1,50,000 and payment made by cheque.
2023 March 7 Purchased Post Cards for ₹ 250; Envelopes for ₹ 500 and Stamps for ₹ 1,000.
2023 March 8 Purchased office stationery for ₹ 4,000.
2023 March 15 Gave as Charity - Cash ₹ 2,000 and Goods ₹ 4,000.
2023 March 20 The horse bought on March 6 died, its carcass was sold for ₹ 10,000.
2023 March 25 Sold household furniture for ₹ 1,00,000 and paid the money into the business.
2023 March 31 Paid to the landlord by cheque ₹ 1,20,000 for rent. One-third of the building is occupied by the proprietor
for residential use.
25. A Book-keeper finds that the totals of his trial balance disagree by ₹ 2,800. He temporarily debits a Suspense Account
with this amount and closes the books. On an examination of the books, the following errors are discovered:
i. The total of Purchase Return Book ₹ 710 was posted Twice.
ii. Goods costing ₹ 800 were distributed as free samples but no entry was passed in the books.
iii. Purchase of Machinery for ₹ 5,600 on credit was recorded in Purchase Book as ₹ 6,500.
iv. Cash Sales to Roshan Gupta for ₹ 1,200 were recorded in Cash Book as well as in Sales Book and were posted from
both.
v. Closing Stock has been overvalued by ₹ 1,500.
vi. Sales Return Book was untotalled, though personal accounts were posted ₹ 1,580.
vii. No entries have been made in the Cash Book for the Insurance Premium directly paid by bank ₹ 700 and interest
charged on overdraft ₹ 320.
viii. A sum of ₹ 200 for Drawings on the Credit Side of Cash Book was not posted to the Drawings account.
Pass entries to rectify the above errors. Close the Suspense Account already opened.
OR
An accountant, while balancing his books found that there was a difference of Rs 85.95 in the trial balance. Being
required to prepare the final accounts, he placed this difference to a newly opened suspense account which was carried
forward to the next year, when the following errors were discovered.
i. Goods bought from a merchant for Rs 5.50 had been posted to the credit of his account as Rs 55.
ii. An item of Rs 10.62 entered in the sales return book had been posted to the debit of the customer who returned the
goods.
iii. Sundry items of plant sold for Rs 260 had been entered in the sales book, the total of which book had been posted to
sales account.
iv. Rs 60 owing by a customer had been omitted from the schedule of sundry debtors.
v. Rs 2.31 discount received from a creditor had been duly entered in his account but not posted to discount received
account.
Given journal entries necessary to correct these errors and prepare the suspense account.
26. X Ltd. purchased on April 1, 2020 a second hand plant for ₹ 4,00,000 and immediately spent ₹ 80,000 for its overhauling
and ₹ 20,000 for its installation. On Oct. 1, 2023, the plant became obsolete and was sold for ₹ 2,00,000. Depreciation is
provided at 10% p.a. on original cost method. Accounts are closed each year on 31st March.
Show the necessary Ledger Accounts assuming that:
i. Provision for Depreciation Account is not maintained, and
ii. Provision for Depreciation Account is maintained.
OR
You are given following balances as on 1st April 2014:

Plant & Machinery A/c Rs 25,00,000
Provision for Depreciation A/c Rs 5,80,000
Depreciation is charged on the plant at 20% p.a. by the diminishing balance method. A piece of machinery purchased on
1st April 2012 for Rs 5,00,000 was sold on 1st October 2014 for Rs 3,00,000.
Prepare the Plant & Machinery Account and Provision for Depreciation Account for the Year ended 31st March 2015.
Also, prepare Machinery Disposal Account.
Part B
27. Single entry system is also known as
a) Accounts for Real and Nominal nature
b) Accounts from Auditors
c) Accounts from complete records
d) Accounts from incomplete records
OR
Under Accounting from Incomplete records system two accounts are maintained:
a) Personal and receipt and payment account
b) Cash book and Income statement account
c) Personal and trading account
d) Cash book and personal accounts
28. Stock as on 01.04.2010 Rs. 10,000; Sales Rs. 2,00,000; Purchases Rs. 1,45,000; carriage inwards Rs. 4,000; clearing
charges Rs. 5,000; sales returns Rs. 1,500; purchases return Rs.2,000; carriage outward Rs. 2,500; stock as on
31.03.2011 Rs. 15,000. Calculate gross profit
a) Rs.143000
b) Rs.15000
c) Rs.51500
d) Rs.147000
29. Which is not an example of Capital expenditure
a) Expenses for obtaining a license.
b) Initial expenditure for acquiring patent right.
c) Preliminary expenses for floating a company.
d) Depreciation on fixed assets
OR
Income received in advance is deducted from the income because of:

a) Revenue Recognition Concept
b) Accrual Concept
c) Matching Concept
d) Prudence Concept
30. Calculate Gross Profit from the following information:
₹
Closing Stock 70,000
Wages 40,000
Salary 30,000
Sales 6,88,000
Adjusted Purchase 5,50,000
31. Distinguish between:
i. Capital Expenditure and Revenue Expenditure
ii. Capital Receipts and Revenue Receipts
32. Following is an extract from a Trial Balance:
TRIAL BALANCE as at...

Particulars Dr. (₹) Cr. (₹)
Machinery A/c 2,00,000 -
Furniture A/c 1,00,000
Provision for Depreciation :

- 60,000
on Machinery
27,100
on Furniture
Additional Information: Depreciation is charged on machinery at 10% p.a. and on Furniture at 10% p.a. by the
Diminishing Balance Method.
Show relevant extract in the Profit and Loss Account and Balance Sheet.
33. Radheshyam does not keep proper records of his business. Following information is available from records kept by him
Items 1st April 2012(Rs.) 31st March 2013(Rs.)
Cash 20000 18,000
Bank 30,000 33,000
Debtors 17,000 25,000
Stock 40,000 60,000
Fixed assets 29,000 29,000
Creditors 52,000 32,000
Loan 10,000 25,000
Radheshyam withdrew from the business Rs 3,000 per month upto 30th September, 2012 and thereafter Rs 4,000 per
month as drawings Rs 50,000 realised by the proprietor as maturity value of national saving certificates was invested in
the business.
Prepare a statement showing net profit (or net loss) for the year.
OR
Mr A started business with a capital ₹ 5,00,000. At the end of the year his position was
Items ₹
Cash in hand 15,000
Cash at bank 70,000
Sundry debtors 1,20,000
Stock 2,40,000
Furniture 75,000
Machinery 2,00,000
Sundry creditors on this date totaled ₹ 80,000. During the year, he introduced a further capital of ₹ 1,50,000 and
withdrew for household expenses ₹ 90,000. You are required to calculate profit or loss during the year.
34. From the following Trial Balance prepare Trading and Profit & Loss Account for the year ended 31st March, 2019 and
Balance Sheet as at that date:
Dr. (₹) Cr. (₹)
Stock 1st April, 2018 22,300
Purchases and Purchases Return 2,30,000 5,200
Freehold Premises 1,00,000
Incidental Trade Exp. 11,200
Insurance 1,850
Audit Fees 800
Commission Received 2,700
Interest 1,400
Wages 30,200
Salaries 15,200
Capital 1,50,000
Drawings 12,000
Income-Tax 3,600
Investments 8,000
Discount allowed & received 7,500 4,200
Sales Return & Sales 6,400 3,17,400
B/R 5,200
Office Furniture 9,000
Rent 2,600
Cash in hand 5,080
Bank Balance 7,600
5,08,330 5,08,330
Adjustments
i. Stock at 31st March, 2019 is ₹70,000.
ii. Write off 5% Depreciation on Freehold Premises and 20% on office furniture.
iii. Commission earned but not received ₹500.
iv. Interest earned but not received ₹600.
v. ₹200 for rent have been received in advance.
vi. Charge interest on Capital @ 6% and ₹500 on Drawings.
Hint: Income Tax is the personal expenses of the Proprietor, as such it will be treated as Drawings.
OR
The following were the balances extracted from the books of Yogita as on 31st March, 2017:
Debit Balances Amount (₹) Credit Balances Amount (₹)
Cash in hand 540 Sales 98,780
Cash at bank 2,630 Returns outward 500
Purchases 40,675 Capital account 62,000
Returns inward 680 Sundry creditors 6,300
Wages 8,480 Rent 9,000
Fuel and power 4,730
Carriage on sales 3,200
Carriage on purchases 2,040
Opening stock 5,760
Building 32,000
Freehold land 10,000
Machinery 20,000
Salaries 15,000
Patents 7,500
General expenses 3,000
Insurance 600
Drawings 5,245
Sundry debtors 14,500
Taking into account the following adjusments, prepare the trading and profit and loss account and balance sheet as at
31st March, 2017.
i. Stock in hand on 31st March, 2017 was ₹ 6,800.
ii. Machinery is to be depreciated at the rate of 10% and patents @ 20%.
iii. Salaries for the month of March, 2017 amounting to ₹ 1,500 were outstanding.
iv. Insurance includes a premium of ₹ 170 on a policy expiring on 30th September, 2017.
v. Further bad debts are ₹ 725. Create a provision of @ 5% on debtors.
vi. Rent receivable ₹ 1,000.
Maximum Marks: 80

Part A
1. Which of the following must be a characteristic of a standard voucher?
a) It should be printed on good quality paper
b) All of these
c) Description of transaction should be given account wise
d) Debit or credit amount should be written in figures against the amount
2. Assertion (A): Accounting is merely concerned with recording of the financial events.
Reason (R): Accounting also provides insightful information that helps businesses in their decision making process.
3. Rule of Debit and Credit for Impersonal account is
a) Dr. the receiver and Cr. the giver
b) Dr. all expenses and Cr. all gains & Dr. what goes out and Cr. what comes in
c) Dr. all expenses and Cr. all gains
d) Dr. what goes out and Cr. what comes in
4. Goods costing Rs.15,000 were sold for cash at a profit of 20%. By what amount cash increase
a) Rs.13,000
b) Rs.12,000
c) Rs.18,000
d) Rs.15,000
OR
The decrease in one liability may lead to:

a) increase in another liability
b) the decrease in an asset
c) none of these
d) either decrease in asset or increase in liability
5. Cash memo is a source voucher for purchaser of goods
a) for credit sales
b) for cash purchases
c) or credit purchases
d) for cash sales
6. Which of these are example(s) of short-term creditors?
a) None of these
b) Suppliers of goods and services on credit
c) Both financial institutions and suppliers of goods and services on credit
d) Financial institutions
OR
The positional statement refers to

a) Ledger
b) Trading account
c) Balance sheet
d) Profit and loss account
7. Which of the following statements is not appropriate in relation to Provision?
a. Provision is a charge against profit.
b. Provision is created for known liability.
c. Provision is created for strengthening the financial position of the business.
d. Creation of provision satisfies the principle of conservatism.
a) Statement (d) is correct.
b) Statement (b) is correct.
c) Statement (c) is correct.
d) Statement (a) is correct.
8. What is the nature of Cash Account?
a) None of these
b) Real Account
c) Personal Account
d) Nominal Account
OR
Nominal Accounts are related to:

a) assets and liabilities
b) none of these
c) expenses and revenue
d) debtors and creditors

11. General Reserves are shown in :
a) None of these
b) Revaluation Account
c) Balance Sheet
d) Profit and Loss Account
12. Current Liabilities include
a) Creditors
b) All of these
c) Bills Payable
d) Outstanding Expenses
13. Calculate purchase return amount from the following transactions for January 2011.
(a) Returned goods to M/s Kartik Traders Rs.1,200
(b) Goods returned to Sahil Pvt. Ltd. Rs.2,500
(c) Goods returned to M/s Kohinoor Traders for list price Rs.2, 000 less 10% trade discount.
(d) Return outwards to M/s Handa Traders Rs.550. Options are as follows
a) Rs.6050
b) Rs.5500
c) Rs.4500
d) Rs.6000
14. Kamal started business and invests Rs. 50000 on 1st April 2010. On31st March 2011, his assets are Rs.65000 and
liabilities Rs.6000. Kamal withdrew from his business Rs. 3000 for personal use. Find out the profit
a) Rs.12000
b) Rs.8000
c) Rs.10000
d) Rs.9000
15. The amount invested by the proprietor in a business is called .
a) capital
b) revenues
c) cash
d) loan
OR
The following information is related to the Trade discount except:

a) Encourage the debtors to pay the dues promptly
b) Persuade the buyer to buy more goods
c) Not recorded in the books
d) Offered at an agreed percentage
16. Transactions that cannot be recorded in any special journal are recorded in journal called the .
a) Journal
b) Cash book
c) Ledger
d) Journal proper
17. Dividend equalization reserve is termed as reserves
a) Charged against assets
b) Created out of revenue profits
c) Charged against profit
d) Created out of assets
18. Write a short note on balancing an account. Explain by balancing a Cash Account.
OR
Give the journal entries corresponding to the narration given below:

Amount Amount
S.No. Particulars LF.
Dr. Cr.
(i) Dr.
Dr.
To
(Goods of the list price of ₹ 5,000 sold at 10% trade
discount and 2% cash discount)
(ii)
(The purchase of Motor Car for ₹ 80,000 and the payment of ₹ 5,000 as repair
charges on it. Entire payment is made by cheque)
(iii) Mehta Dr. 5,000

To Cash A/c
To
(Mehta’s account settled, cash discount three
percent)
(iv) Bank A/c Dr.

Dr.
To
8,400
(70 paise per rupee received from the estate of Ankit on his insolvency)
(v) Dr. 3,000

To
3,000
(For goods used by proprietor for personal use)
(vi) Dr. 2,000

To
2,000
(For Rent due to landlord)
19. Every transaction has debit and credit aspects. Explain.
OR
Explain any three points highlighting the utility of accounting standards.

20. Explain and give example of each of the following accounting terms:
i. Expenses
ii. Drawings
iii. Gain
21. The Accountant of Shiv wrongly prepared the following Trial Balance. You are required to draw the correct Trial
Balance stating reasons for the change made:
TRIAL BALANCE as on 31st March, 2019
Debit Balance ₹ Credit Balance ₹

Opening Stock 16,000 Sales 1,90,000
Purchases 1,60,000 Insurance Premium 6,000
Outstanding Salaries 21,000 Equipment 25,000
Wages 10,000 Repairs to Building 5,000
Wages Due 9,000 Drawings 31,000
Building 1,00,000 Sundry Receipts 15,000
Plant 80,000 Bank Overdraft 93,000
Interest Received 2,000 Ground Rent 8,000
Advertisement 12,000 Returns Inward 16,000
Outstanding Expenses 17,000 Capital 2,00,000
myCBSEguide
Depreciation on Plant 8,000 Investments 44,000

Prepaid Expenses 10,000 Commission 28,000
Returns Outward 12,000
Closing Stock 1,62,000
6,33,000 6,33,000
22. Record the following transactions in a Two Column Cash Book of Shri Bhagat Singh:
2023 ₹
Jan.1 Cash in hand 12,100
Bank balance 8,000
5 Received a cheque form Madan & Co. 4,000
Discount allowed 200
7 Cash received from the sale of shares 12,000
8 Received cash ₹ 900 and cheque for ₹ 700 for cash sales
10 Paid into bank, including cheques received on 5th and 8th January 10,000
12 Paid for repairs of the typewriter 200

14 Drew a cheque for office use ₹ 2,000 and for personal use ₹ 1,500
15 Paid to Bipin by cheque 600
Discount received 50
16 Gave a cheque to Birendra for a cash purchase of furniture for office 5,000
20 Received a cheque from Harish & Co. for commission 1,800
20 Rent paid by cheque on the personal account of Bhagat Singh 800
22 Issued a cheque for petty cash 100
Instructed the Bank to issue a Bank Draft for ₹ 6,000 in favour of Aashish. The bank charged ₹ 20 for
24
issuing the draft.
Received a Bank Draft for ₹ 3,900 from Rajnish in full settlement of ₹ 4,000 due from him. Discount
29
claimed by him was disallowed.
30 Bank collected interest on securities. 250

23. The Cash book of Sh. Shokeen showed a balance of ₹ 20,000 on 31st December, 2023 at the bank. The figure did not
agree with the bank Pass Book. A comparison of the two revealed the following :
i. The bank has debited Sh. Shokeen with ₹ 6,000, the annual premium on his life policy according to his standing
instructions and with ₹ 150 as bank charges.
ii. The bank has credited Sh. Shokeen by ₹ 15,000, the proceeds of a bill.
iii. Sh. Shokeen sent for collection cheques amounting ₹ 60,000 out of which cheques for ₹ 48,000 have been credited
by bank till 31st December.
iv. The cash collection on 31st December, 2023 totalling ₹ 25,000 was entered in the Cash Book in the bank column on
the same day but it was banked on the 2nd January, 2024.
v. Sh. Shokeen issued cheques totalling ₹ 1,00,000 of which those of ₹ 36,000 have not been presented by 31st
December, 2023.

6 / 35
myCBSEguide
Show the corrections to be made in the Cash Book so as to ascertain the balance to be shown in the Balance Sheet and
then prepare the Bank Reconciliation Statement.
OR
Prepare Bank Reconciliation Statement from the details given below and ascertain the balance as per Gami’s Cash Book
as on 31st March, 2019:
i. Bank overdraft balance as per Pass Book was ₹ 12,000 whereas Cash Book showed credit balance of ₹ 30,760.
ii. Cheques issued to creditors amounting to ₹ 20,000 in the month of March, 2019 of which cheques worth ₹ 3,000
were presented to the bank up to 31st March, 2019.
iii. A cheque of ₹ 6,000 received from Raj was deposited in the Bank Account on 26th March, 2019 but no entry was
passed in the Cash Book. The same was collected and credited to Gami’s Account on 29th March, 2019.
iv. A cheque of ₹ 2,000 received from Baria on 20th March, 2019 was recorded in the discount column of the Cash
Book and was not banked.
v. A bank draft for ₹ 5,000 favouring Rajesh was taken and recorded in Cash Book. But, bank charges of ₹ 40 were not
recorded.
vi. The Pass Book showed that the bank had collected ₹ 4,000 as interest on Government Securities. The bank had
charged interest ₹ 500 and bank charges ₹ 200. These were not recorded in the Cash Book.
vii. Garni had issued a cheque of ₹ 7,500 as his LIC premium. The cheque was dishonoured due to technical reasons. He
paid cash to LIC against the dishonoured cheque. No entry was passed in the Cash Book for dishonour of cheque.
24. Raja Ram started a real estate agency business with a cash investment of Rs 42,000. The following business transactions
have been recorded
i. Paid 3 months advance rent for office accommodation Rs 2,520.
ii. Bought car for office Rs 25,200.
iii. Purchased office furniture Rs 8,400.
iv. Bought office typewriter from Comprehensive Company 73,600.
v. Sold extra office furniture at cost to Amar for Rs 1200. Amar paid Rs 720 in cash and accepted a bill at 3 months for
the balance.
vi. Veer paid the amount of the bill at maturity and Amar paid half the amount he owed to Comprehensive Company.
vii. Collected Rs 7,200 as commission.
viii. Paid telephone bill amounting to Rs 180.
OR
Journalise the following transactions in the books of Manoj Store:

i. Purchased goods from Ramesh ₹ 20,000 less Trade Discount at 20% plus IGST @ 12%.
ii. Sold goods costing ₹ 7,000 to Krishna for ₹ 9,000 plus IGST @ 12%.
iii. Sold goods for ₹ 10,000 and charged IGST @ 12% against cheque.
iv. ₹ 5,000 were deposited into Savings Account.
v. Machinery costing ₹ 4,00,000 for which order was placed earlier paying advance of ₹ 40,000. The balance amount
was paid as follows:
a. An old machine (personal) valued at ₹ 30,000 was given in exchange;
b. Issued a cheque from his savings account for ₹ 1,30,000; and
c. Balance by issue cheque from firm's bank account.
vi. Paid wages ₹ 2,500 for installation of machine.
25. Trial Balance of Anant Ram did not agree. It showed an excess credit of ₹ 16,000. He put the difference to Suspense A/c.
Subsequently the following errors were located:

7 / 35
a. Cash received from Mohit ₹ 4,000 was posted to Mahesh as ₹ 1,000.
b. Cheque for ₹ 5,800 received from Arnav in full settlement of his account of ₹ 6,000 was dishonoured. No entry was
passed in the books on dishonour of the cheque.
c. ₹ 800 received from Khanna, whose account had previously been written off as bad, was credited to his account.
d. Credit sales to Manav for ₹ 5,000 was recorded through the purchases book as ₹ 2,000.
e. Purchases book undercast by ₹ 1,000.
f. Repairs on Machinery ₹ 1,600 wrongly debited to Machinery account as ₹ 1,000.
g. Goods returned by Nathu ₹ 3,000 were taken into stock. No entry was recorded in the books.
OR
Pass the rectification entries and show the suspense account in the books of a partnership firm, from the follow ing
particulars:
i. The total of sales return day book was over-cast by Rs. 1,000.
ii. Purchase of equipm ent, from Veer & Co. worth Rs 2,000, in cash, was entered through the purchase day book and
accordingly, credited to the supplier’s account.
iii. Discount Rs 500 allowed by Nimish, a creditor, has not been entered in the books of account.
iv. Rs 350 paid for carriage on sale of goods was credited to carriage inward account when posted from the cash book.
v. Bill receivable worth Rs 1,800 received from a debtor was entered in the bills payable book though correctly entered
in the debtor’s account.
26. On 1st July 2019, ABC Ltd. purchases 4 machines for ₹ 80,000 each. The accounting year of the company ends on 31st
March every year. Depreciation is provided at the rate of 15% p.a. on original cost.
On 1st April, 2021 one machine was sold for ₹ 50,000 and on 1st January, 2023 a second machine was sold for ₹ 40,000.
Another machine with a higher capacity which cost ₹ 2,00,000 was purchased on 1st January, 2023.
You are required to show:
i. Machinery Account,
ii. Depreciation Account, and
iii. Provision for Depreciation Account for four years ending 31st March, 2023.
OR
On 1st October 2014, Bansal Pvt. Ltd. purchased machinery for Rs 12,00,000. On 31st May, 2016, a part of the
machinery purchased on 1st October 2014 for Rs 1,60,000 was sold for Rs 60,000. On the same date, fresh machinery
was purchased for Rs 3,00,000. Depreciation is provided at 20% per annum on the written down value method and the
books are closed on 31st March each year. You are required to prepare (a) Machinery Account, (b) Provision for
Depreciation Account, and (c) Machinery Disposal Account.
Part B
27. Calculate Fresh capital from the following information: Profit: Rs.2,800, Opening capital-Rs.20,000, Closing capital -
Rs.25,000, Withdrawal - Rs.1,800
a) Rs.4,000
b) Rs.5,000
c) Rs.2,000
d) Rs.3,000
OR
A system of accounting that is not based on a double-entry system is called:

a) Credit system
b) Incomplete accounting system
c) None of these
d) Cash system
28. Following are the Financial statement except
a) Statements of retained earnings
b) Cash Flow statement
c) Audit report
d) Income statement
29. Manish has paid salaries of Rs.150000 for the year ended 31st March, 2012. The salaries include a sum of Rs.20000 paid
in advance for the year ended 31st March 2013. Show how it would appear in the profit and loss account
a) Rs.110000
b) Rs.150000
c) Rs.130000
d) Rs.120000
OR
Wages paid for the installation of the machine is added to the cost of machine because of:
a) Cost Principle
b) Accrual Concept
c) Materiality Principle
d) Matching Principle
30. Briefly explain Current Liabilities.
31. Prepare a Trading Account for the year ended 31st March, 2023 from the following balances:
Particulars ₹ Particulars ₹
Opening Stock 2,00,000 Purchases Return 60,000
Purchases 10,00,000 Sales Return 1,00,000
Sales 25,00,000 Carriage on Purchase 40,000
Freight 32,500 Carriage on sales 50,000
Wages 1,50,000 Factory Rent 2,20,000
Factory Lighting 54,000 Office Rent 37,500
Coal, Gas and Water 11,000
Closing Stock is valued at ₹ 3,00,000.

32. The following is the extract from the Trial Balance:
TRIAL BALANCE as at...

Sundry Debtors 1,00,000 -
i. Write off ₹ 1,000 as further bad debts.
ii. Show the relevant extract in the Profit and Loss Account and Balance Sheet.
33. Shruti maintains her books of accounts from Incomplete Records. Her books provide the following information.
Particulars 1st April 2015 (₹) 31st March 2016 (₹)
Cash 1,200 1,600
Bills Receivable - 2,400
Debtors 16,800 27,200
Stock 22,400 24,400
Investments - 8,000
Furniture 7,500 8,000
Creditors 14,900 11,600
She withdraws ₹500 per month for personal expenses. She sold her Investments ₹16,000 at 5% premium and introduced
the account into a business.
You are required to prepare a Statement of Profit or Loss for the year ending 31st March 2016.
OR
Raj tells you that his capital on 31st December, 2013 is Rs 18,700 and his capital on 1st January, 2013 was Rs 19,200.
He further informs you that during the year, he gave a loan of Rs 3,500 to his brother on private account and withdrew
Rs 3,500 for his brother on private account and withdrew Rs 300 per month for personal purposes. He also used a flat for
his personal purpose, the rent of which @ Rs 100 per month and electricity charges at an average rate of Rs. 10 per
month were paid from the business account. During the year, he sold his 7% government bonds of Rs 2,000 at 2%
premium and brought that money into the business.
You are required to prepare a statement of profit or loss for the year ended 31st December, 2013.
34. Following Trial Balance as at 31st March, 2019 is drawn from books of Dalip:
Cash in Hand 80,000 -
Cash at Book 1,20,000 -
Wages 2,00,000 -
Sales - 50,00,000
Machinery 21,20,000 -
Bills Receivable 4,00,000 -
Opening Stock 8,40,000 -
Creditors - 4,00,000
Purchases 33,00,000 -
Sales Return 60,000 -
Salaries 3,20,000 -
Debtors 8,60,000 -
Insurance 2,20,000 -
Bad Debts 60,000 -
Freight on Purchases 48,000 -
Capital - 32,00,000
Commission - 38,000
Input CGST 5,000 -
Input SGST 5,000 -
Total 86,38,000 86,38,000
Considering the following adjustments, prepare Trading and Profit and Loss Account for the year ended 31st March,
2019 and a Balance Sheet as at that date. Also, pass Journal entries for the adjustments:
i. Closing Stock ₹ 9,00,000.
ii. Outstanding Salaries ₹ 32,000 and Outstanding Wages ₹ 20,000. Salaries and Wages are not subject to levy of GST.
iii. Prepaid Insurance ₹ 9,000 and Accrued Commission ₹ 12,000. Prepaid Insurance and Accrued Commission are
subject to levy of CGST and SGST @ 6% each.
iv. Charge Depreciation on Machinery @ 10% p.a.
OR
Prepare trading; profit and loss account and balance sheet from the following particulars as on 31st march, 2013.
Cash in hand 20,000
Cash at bank 1,80,000
Purchase and sales 22,00,000 35,00,000
Return inwards 60,000
Return outwards 75,000
Carriage on purchases 44,000
Carriage on sales 21,000
Fuel and power 1,55,000
Stock (1st April, 2012) 3,60,000
Bad debts 62,000
Bad debts provision 25,000
Debtors and creditors 8,20,000 3,00,000
Capital 21,70,000
Investments 2,00,000
Interest on investments 20,000
Loan from X @ 18% per annum 1,00,000
Repairs 15,200
General expenses 1,06,000
Land and Buildings 18,00,000
Wages and Salaries 1,80,000
Miscellaneous receipts 1,200
Bills Payable 52,000
Stationery 20,000
62,43,200 62,43,200
i. Written-off Rs 20,000 as bad debts and provision for doubtful debts is to be maintained at 5% on debtors.
ii. Loan from X was taken on 1st August, 2012. No, interest has been paid so far.
iii. Included in general expenses is insurance premium % 12,000. Paid for one year ending 30th June, 2013.
iv. 1/3 of wages and salaries is to be charged to trading account and the balance to profit and loss account.
v. Entire stationery was used by the proprietor for own purpose.
vi. Closing stock was valued at Rs 5,00,000.
Maximum Marks: 80

Part A
1. Accounting voucher is prepared from:
a) None of these
b) Source voucher
c) Both Source voucher and Journal entry
d) Journal entry
2. Assertion (A): Bookkeeping involves summarising the classified transactions in the form of profit and loss account and
balance sheet.
Reason (R): Bookkeeping is the art of recording in books of accounts, the monetary aspect of commercial or financial
transactions. It is concerned with record keeping maintenance of books of accounts.
3. According to Real Account, what will be credited?
a) What goes out
b) Income & Gain
c) What comes in
d) Giver
4. Find out the value of assets if: Liabilities= Rs.5000 and Capital= Rs.1000
a) Rs.4000
b) Rs.3000
c) Rs.5000
d) Rs.6000
OR
Goods costing Rs. 20,000 were sold for cash at a profit of 25%. By what amount stock account will decrease
a) Rs.25,000
b) Rs.15,000
c) Rs.20,000
d) Rs.20,500
5. Credit Note is prepared:
a) when the debit is given to the account
b) when both credit and debit is given to the account
c) None of these
d) when credit is given to the account
6. function is routine and clerical in nature and is increasingly done by computers now-a-days.
a) Financing
b) Accounting
c) Accounting and bookkeeping
d) Bookkeeping
OR
Transactions are posted into Ledger Account from:

a) None of these
b) Journal book
c) Bank Statement
d) Vouchers
7. Which reserve is created out of capital profits
a) General Reserves
b) Specific Reserves
c) Capital Reserves
d) Revenue Reserves
8. According to Personal Account, what will be debited?
a) All expenses and losses
b) What comes on
c) Receiver
d) What goes out
OR
Bank account is a:
a) Real account
b) Nominal account
c) Personal account
d) None of these

net income:
a) Matching
b) Conservatism
c) Business entity
a) Conservatism
b) Business entity
c) Matching
11. Calculate provision for doubtful debt from the following information Sundry debtor- Rs.95200, Further bad debts (new)
Rs.11200, provision fro doubtful debt to be maintained is 10 %
a) Rs.6523
b) Rs.8400
c) Rs.9520
d) Rs.1120
12. Which of the following is a liability?
a) Rent Payable
b) Stock
c) Interest Received
d) Furniture
13. Adjustment entries are passed through :
a) Cash Book
b) Journal Proper
c) Ledger
d) Adjustment Book
14. Sumit owns a company and purchase goods on credit from his personal funds and used the same for business purpose.
What is the effect on assets
a) Increase stock
b) Reduce cash
c) Increase cash
d) Reduce Bank
15. The unsold goods left at the end of the year is called:
a) Drawing
b) Closing stock
c) Opening stock
d) Assets
OR
Pick the odd one out.

a) Drawings
b) Net assets
c) Owner's equity
d) Net worth
16. The periodic total of purchases return journal is posted to :
a) Purchase returns account
b) Purchase account
c) Furniture account
d) Profit and loss account
17. Dividend Equalisation Reserve is :
a) Specific Reserve
b) General Reserve
c) None of these
d) Secret Reserve
18. Prepare Journal entries of the following posting in the Ledger accounts:-
i. CASH ACCOUNT
Dr. Cr.
₹ ₹
To Sales 5,000
ii. FURNITURE ACCOUNT
₹ ₹
To Cash 8,000
iii. PURCHASES ACCOUNT
Dr. Cr.
₹ ₹
To Govind 10,000
iv. MURARI
Dr. Cr.
₹ ₹
By Purchases A/c 12,000
v. SALES ACCOUNT
Dr. Cr.
₹ ₹
By Mohan 500
vi. INTEREST ACCOUNT
Dr. Cr.
₹ ₹
By Cash A/c 15,000
OR
Pass journal entries for the following transactions:

2023
Jan 6 Sold goods to Neetu of the list price of Rs 2,00,000 at trade discount of 20%.
Jan 8 Neetu returned goods of the list price of Rs 5,000.
Jan 15 Received from Neetu the full payment under a cash discount of 4%.
19. The realisation concept determines when goods sent on credit to customers are to be included in the sales figure, for the
purpose of computing the profit or loss for the accounting period. Which of the following tends to be used in practice to
determine when to include a transaction in the sales figure for the period? When the goods have been
a. dispatched
b. invoiced
c. delivered
d. paid for
Give reason for your answer.
OR
Briefly explain the elements of the Statement of Financial Position.

20. Distinguish between expenses and expenditure.
21. From the following list of balances extracted from the books of Sh. Yuvraj Traders, prepare a Trial Balance as at 31st
March, 2023:
₹ ₹
Stock on 1st April, 2022 2,20,000 Investments 3,00,000
Purchases 25,75,000 Interest on Investments 27,000
Sales 36,18,000 Cash and Bank balance 12,400
Carriage Inwards 3,000 Premises 6,00,000
Carriage Outwards 1,200 Fixtures 1,40,000
Return Inwards 85,000 Miscellaneous Exp. 5,200
Return Outwards 20,000 Miscellaneous Income 1,400
Debtors 3,20,000 Loan from ICICI bank 2,50,000
Creditors 1,74,000 Interest on above 30,000
Bad debts 6,000 Capital 7,00,000
Stationery 4,200 Proprietor’s Withdrawals 60,000
Insurance 3,400 Computers 90,000
Wages and Salaries 1,85,000 Goodwill 1,60,000
Stock on 31st March, 2023 (not adjusted) 3,10,000
Input IGST 40,000
Output IGST 50,000
22. Enter the following transactions in a single Column Cash Book:
2023 ₹
Dec. 1 Cash in hand 25,000
2 Cash Sales (CGST 6%, SGST 6%) 40,000
4 Received from X on behalf of Y 4,000
9 Paid to Raju 4,900
12 Received from Vishal Dev 7,800
and discount allowed 200
20 Bought goods for Cash (CGST 6%, SGST 6%) 20,000
21 Paid Cartage (CGST 6%, SGST 6%) 1,000
23 Remitted to Dinesh 1,880
and discount allowed by him 120
25 Received M.O. from Manish 500
27 Borrowed from Manoj 7,500
29 Received from Basant 3,900
discount allowed 100
31 Paid to Laxman ₹ 2,700 in full settlement of his account of ₹ 3,000
23. The Cash Book of a merchant showed an overdraft balance of ₹ 15,700 on 31st December 2023. On comparing it with
the Pass Book, the following differences were noted:
i. Cheques amounting to ₹ 12,250 were deposited into the bank, out of which cheques for ₹ 8,200 have been credited in
the Pass Book on 2nd January, 2024.
ii. Cheques were issued amounting to ₹ 8,300 of which cheques for ₹ 2,000 have been cashed upto 31st Dec.
iii. A cheque of ₹ 4,250 issued to a creditor, has been entered in the Cash Book as ₹ 4,520.
iv. Bank charges of ₹ 180 on 30th November 2023 and ₹ 240 on 30th December 2023 have not been entered in the Cash
Book.
v. A B/R for ₹ 6,000 discounted with the bank is entered in the Cash Book without recording the discount charges of ₹
300.
vi. A cheque for ₹ 2,000 deposited into the bank appear in the Pass Book, but not recorded in the Cash Book.
vii. A cheque for ₹ 3,700 deposited into the bank appear in the Pass Book, was recorded in the cash column of the Cash
book.
You are required:
a. to make appropriate adjustments in the cash book, bringing down the correct balance, and
b. to prepare a bank reconciliation statement with the adjusted balance.
OR
On 31st December, 2023 the Cash Book of Basant showed an overdraft of ₹ 18,000 with the Bank of India. The balance
did not agree with balance as shown by the Bank Pass Book and you find that Basant had paid into the Bank on 26th
December four cheques for ₹ 10,000; ₹ 12,000; ₹ 6,000 and ₹ 8,000. Of these the cheque for ₹ 6,000 was credited by the
bank in January, 2024. Basant had issued on 24th December three cheques for ₹ 15,000, ₹ 12,000, and ₹ 7,000. The first
two cheques were presented to the bank for payment in December and the third in January, 2024.
You also find that on 31st December, 2023, the bank had debited Basant’s Account for ₹ 500 for interest and ₹ 20 for
charges but Basant has not recorded these amounts in his books.
You are required to prepare a Bank Reconciliation Statement as on 31st December, 2023 and ascertain the balance as per
bank Pass Book.
24. Record journal entries for the following transactions in the books of Anudeep of Delhi:
a. Bought goods ₹ 2,00,000 from Kanta of Delhi (CGST @ 9%, SGST @ 9%)
b. Bought goods ₹ 1,00,000 for cash from Rajasthan (IGST @ 12%)
c. Sold goods ₹ 1,50,000 to Sudhir of Punjab (IGST @ 18%)
d. Paid for Railway Transport ₹ 10,000 (CGST @ 5%, SGST @ 5%)
e. Sold goods ₹ 1,20,000 to Sidhu of Delhi (CGST @ 9%, SGST @ 9%)
f. Bought Air-Condition for office use ₹ 60,000 (CGST @ 9%, SGST @ 9%)
g. Sold goods ₹ 1,50,000 for cash to Sunil to Uttar Pradesh (IGST 18%)
h. Bought Motor Cycle for business use ₹ 50,000 (CGST 14%, SGST @ 14%)
i. Paid for Broadband services ₹ 4,000 (CGST @ 9%, SGST @ 0%)
j. Bought goods ₹ 50,000 from Rajesh, Delhi (CGST @ 9%, SGST @ 9%)
OR
Journalise the following transactions of Mr. Rahul:

2019 ₹
Jan. 1 Rahul started business with cash 1,00,000
Jan. 2 Paid into bank 60,000
Jan. 3 Bought goods from M/s. Singh & Co. 20,000
Jan. 3 Paid cartage 300
Jan. 4 Purchased furniture 2,000
Jan. 4 Placed an order for HP Printers for ₹ 15,000, amount advanced 5,000
Jan. 4 Purchased calculator 1,000
Jan. 4 Purchased computer through cheque 13,000
Jan. 6 Paid for postage 150
Jan. 8 Sold goods for cash 4,000
Jan. 9 Sold goods to M/s. Sharda & Co. 10,000
Jan. 9 Paid cartage 200
Jan. 15 Paid to M/s Singh & Co. on account 17,500
Jan. 25 Sold goods to M/s. Ray & Co. 5,600
Jan. 27 Received cheque from M/s. Sharda & Co. in full settlement of amount due from them 9,750
Jan. 31 Paid for electricity charges 1,000
Jan. 31 Paid salary 1,500
Jan. 31 Paid rent of building by cheque, half of the building is used by the proprietor for residential use 5,000
Jan. 31 Drew for private use 3,500
25. A Book-keeper failed to balance his trial balance, the credit side exceeding the debit side by ₹ 175. This amount was
entered in a Suspense Account. Later on, the under-mentioned errors were discovered:
i. Goods amounting to ₹ 620 sold to D & Co. were correctly entered in the Sales book, but posted to the Company’s
A/c as ₹ 260.
ii. A credit balance of ₹ 755 of Rent Received account was shown as ₹ 570.
iii. The total of Returns Outwards Book amounting to ₹ 200 was not posted to the Ledger.
iv. Goods worth ₹ 100 were purchased from Pratik but the amount was entered in the Sales Book. The account of Pratik
was correctly credited.
v. Sales Book was undercast by ₹ 100.
vi. The total of the credit side of Sudhir’s account was overcast by ₹ 100.
Give journal entries to rectify these errors and prepare the Suspense Account.
OR
Trial Balance of Anurag did not agree. It showed an excess credit ₹ 10,000. Anurag put the difference to suspense
account. He located the following errors:
i. Sales Returns book overcast by ₹ 1,000.
ii. Purchases book was undercast by ₹ 600.
iii. In the sales book, a total of page No. 4 was carried forward to page No. 5 as ₹ 1,000 instead of ₹ 1,200 and total of
page No. 8 was carried forward to page No. 9 as ₹ 5,600 instead of ₹ 5,000.
iv. Goods returned to Ram ₹ 1,000 were recorded through Sales Book.
v. Credit purchases from M & Co. ₹ 8,000 were recorded through Sales Book.
vi. Credit purchases from S & Co. ₹ 5,000 were recorded through sales Book. However, S & Co. were correctly credited.
vii. Salary paid ₹ 2,000 was debited to Employee's Personal Account.
26. Roshni Limited purchased machinery for ₹ 40,000 on 1st October, 2019. Depreciation is provided @ 10% p.a. on the
Diminishing Balance Method. On 1st January, 2022, one-fourth of Machinery was found unsuitable and disposed off for
₹ 6,000. On the same date a new machinery at a cost of ₹ 15,000 was purchased. Write up the Machinery A/c for 4 years.
The accounts are closed on 31st March every year.
OR
On 1st October 2011, X Ltd. purchased machinery for ₹2,50,000. A part of machinery which was purchased for ₹20,000
on 1st October 2011 became obsolete and was disposed off on 1st January, 2014 (having a book value ₹17,100 on 1st
April 2013) for ₹2,000. Depreciation is charged @ 10% annually on written down value. Prepare machinery disposal
account and also show your workings. The books being closed on 31st March of every year.
Part B
27. Single Entry System can be adopted by:
a) Co-operative Societies
b) None of these
c) Joint Stock Companies
d) Small firms
OR
Calculate Opening capital from the following information: Profit: Rs.500, Closing capital- Rs.3,000, Withdrawn- Rs.600,
Fresh capital- Rs.400
a) Rs.3,200
b) Rs.2,300
c) Rs.2,700
d) Rs.2,500
28. Income tax in case of a sole trader is treated as:
a) Business expenses
b) Personal expenses
c) None of these
d) Debtors expenses
29. A machine was purchased in Bihar. During transit, the machine was damaged and the cost of repairs incurred is Rs
20,000. This expense is treated as:
a) Capital expense
b) Revenue expense
c) None of these
d) Deferred Revenue expense
OR
An insurance premium paid during the year is ₹ 10,000 and prepaid insurance at the year-end is ₹ 3,000. Insurance
expense shown in Profit and Loss Account will be:
a) ₹ 10,000
b) ₹ 7,000
c) ₹ 13,000
d) ₹ 3,000
30. Calculate the closing stock from the following details:
₹
Opening Stock 4,80,000
Purchase 13,60,000
Sales 19,50,000
G.P. is 30% on Cost.

31. Calculate Net Sales and G.P. from the following: Cost of Goods Sold ₹ 4,50,000, G.P. 25% on Sales.
32. Extracts of Trial Balance


Commission Received 9,000
Commission earned but not received Rs 1,800.
33. A retail Trader has not kept proper books of accounts. Ascertain his profit or loss for the year ending 31st March, 2017,
and prepare a final statement of affairs from the following information:
1st April, 2016 (₹) 31st March, 2017 (₹)
Cash Balance 3,500 4,100
Bank Balance Dr. 6,000 Cr. 15,000
Stock 22,000 36,400
Loan from X — 10,000
Bills Receivable 4,000 —
Fixed Assets 40,000 60,000
He withdrew from the business ₹ 1,500 per month for his personal use and ₹ 8,000 for giving a personal loan to his
brother. He also used a house for his personal
purposes, the rent of which at the rate of ₹ 900 per month and electricity charges at an average rate of ₹ 250 per month
were paid from the business account.
He had received a lottery prize of ₹ 25,000, out of which he invested half the amount in business.
He has not paid two months’ salary to his clerk @ ₹ 1,200 per month, but insurance premium @. ₹ 600 per annum was
paid on 1st October, 2016 to run for one year.
Loan from X was taken on 1st July, 2016 on which interest was unpaid @ 18% p.a. Fixed assets are to be depreciated @
10% p.a.
OR
Mrs Anu started a firm with a capital Rs 4,00,000 on 1st July, 2013. She borrowed from her friends a sum Rs 1,00,000 @
10% per annum (interest paid) for business and brought a further amount to capital Rs 75,000 on 31st December, 2013,
her position was
Items Amt(Rs)
Cash 30,000
Stock 4,70,000
Debtors 3,50,000
Creditors 3,00,000
She withdraw Rs 8,000 per month for the year. Calculate profit or loss for the year and show your working clearly


Bad Debts 10,800
Provision for doubtful Debts(1st April,2012) 22,500
Sundry Debtors 6,00,000
i. Write-off further bad debts Rs 6,000.
ii. Provision for doubtful debts to be maintained at 5% on sundry debtors.
iii. Create a provision for discount on sundry debtors at 3%.
Show effect on profit and loss account and balance sheet.
OR
From the following ledger balances of Mr Charan Singh, prepare the trading and profit and loss account for the year
ended 31st March, 2013 and the balance sheet as at that date after making the necessary adjustments.
Particulars Amt (Rs) Particulars Amt (Rs)
Trade expenses 800 Purchases 82,000
Freight and duty15,000 2,000 Stock (1st April, 2010) 15,000
Carriage outwards 500 Plant and machinery (1st April, 2012) 20,000
Sundry debtors 20,600 Plant and machinery (additions on 1st October, 2012) 5,000
Furniture and fixtures 5,000
Return inwards 2,000 Drawings 6,000
Printing and stationery 400 Capital 80,000
Rent, rates and taxes 4,600 Provision for doubtful debts 800
Sundry creditors 10,000 Rent for premises sublet 1,600
Sales 1,20,000 Insurance charges 700
Return outwards 1,000 Salaries and wages 21,300
Postage arid telegraphs 800 Cash in hand 6,200
Cash at bank 20,500
i. Stock on 31st March, 2013 was Rs 14,000.
ii. Written-off Rs 600 as bad debts,
iii. Provision for doubtful debts is to be maintained @ 5%.
iv. Provision for depreciation on furniture and fixtures at 5% per annum and on plant and machinery at 20% per annum.
v. Insurance prepaid was Rs 100.
vi. A fire occurred in the godown and stock of the value of Rs 5,000 was destroyed. It was insured and the insurance
company admitted full claim.
.
Maximum Marks: 80

Part A
1. Which of the following is mentioned on the vouchers at the top of the paper?
a) Amount of the transaction
b) Name of the person preparing it
c) Name of the firm
d) Signature of the person preparing it
2. Assertion (A): Accounting is a process of identifying, measuring recording business transactions.
Reason (R): It communicates required information to the general public.
3. If we debit all expenses and losses, what will be credited?
a) All assets credited
b) Credit the giver
c) What goes out
d) Incomes and gain
4. Calculate the amount of cash if: other assets( Except Cash) = Rs.10,000 liabilities= Rs.10,000 Total Capital= Rs.5000
a) Rs.3000
b) Rs.1000
c) Rs.5000
d) Rs.10000
OR
Rohit is a sole proprietor has the following balances: Premises- Rs.55000, Cash at bank- Rs.6500, Inventory – Rs.12500
and creditors- Rs.14000. Find out the amount of capital.
a) Rs.15000
b) Rs.35000
c) Rs.31000
d) Rs.60000
5. In which situation, a source document containing the date of transaction, the name of the account debited, the amount,
and the reasons for debit is prepared?
a) None of these
b) Both when goods are returned to a supplier and when goods are received from a customer
c) When goods are received from a customer
d) When goods are returned to a supplier
6. Providing banking services to the customers is an example of
a) Purchase
b) Revenue
c) Sales
d) Expenses
OR
is the process of grouping the transactions of one nature at one place, in a separate account.
a) Recording
b) Summarising
c) Interpretation
d) Classifying
7. Reserve created for maintaining a stable rate of dividend is termed as
a) Specific Reserves
b) Capital Reserves
c) General Reserves
d) Dividend equalization fund
8. Credit means:
a) an increase in liability
b) a decrease in liability
c) a decrease in proprietor's equity
d) an increase in asset
OR
Consider the following statements with regard to the accounting treatment of various accounts:
i. Increase in asset is debited and decrease in asset is credited.
ii. Increase in expenses/losses is debited and decrease in expenses/ losses is credited.
iii. Increase in liabilities is credited and decrease in liabilities is debited.
iv. Increase in capital is credited and decrease in capital is debited.
Identify the correct statement/statements:

a) i and ii
b) i, iii and iv
c) i, ii, iii and iv
d) ii and iii

11. reserve may or may not involve any receipts of cash.
a) Revenue
b) Specific
c) General
d) Capital
12. Revenue from Operations refers to:
A. Revenue earned from activities that are not Operating Activities
B. Revenue earned from non-financial activities
C. Revenue earned from Operating Activities
a) Only B is correct
b) Only A is correct
c) Only C is correct
d) All of these
13. What will be the amount reflected in the sales return book of ZXC Ltd if 2 table fans @ ₹5,000 by QWE Ltd.? There was
a trade discount of 15%. CGST and SGST are at 6% each.
a) None of these
b) ₹8,500
c) ₹10,000
d) ₹9,520
14. Accounting equation is based on
a) Single concept
b) Both
c) Dual concept
d) None
15. Which of the following are goods?
A. Machines manufactured for sale
B. Furniture purchased for sale
C. Books and stationery purchased by a bookseller
D. All of these
a) Statement (B) is Correct.
b) Statement (D) is Correct.
c) Statement (C) is Correct.
d) Statement (A) is Correct.
OR
A person to whom money is owed by the firm is called .

a) Debtor
b) Creditor
c) Customer
d) None of these
16. Match the following:
Column I Column II
(a) Debit note (i) Purchase book
(b) Credit note (ii) Principle book/Journal book
(c) Credit sale of asset (iii) Purchaser
(d) credit purchase of goods (iv) Seller
a) (a) - (iii), (b) - (i), (c) - (ii), (d) - (iv)
b) (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i)
c) (a) - (i), (b) - (iv), (c) - (ii), (d) - (iii)
d) (a) - (iii), (b) - (ii), (c) - (iv), (d) - (i)
17. Identify specific reserves from the following
i. Dividend equalisation reserve
ii. Provision for depreciation
iii. Workmen compensation fund
iv. Investment fluctuation fund
a) (i), (ii) and (iv)
b) (i) and (ii)
c) (i) and (iii)
d) (i), (iii) and (iv)
18. Name and briefly discuss the principal book of accounting system.
OR
Journalise the following transactions in the books of Arnav Traders:
1
i. Sold goods costing ₹ 1,20,000 to Chinki at a profit of 33 3 % on cost less 15% Trade Discount.
ii. Sold goods costing ₹ 80,000 to Aman against cheque at a profit of 25% on cost less 15% Trade Discount.
iii. Paid by cheque ₹ 8,400 as an insurance premium for a period of 12 months starting 1st August 2022. The financial
year closes on 31st March every year.
19. State three accounting practices based on the prudence principle.
OR
i. What is the principle of conservation or prudence?

ii. What are the objectives of IFRS?
20. Define the following basic accounting terms with example:
i. Drawings
ii. Liability
21. Following Trial Balance has been prepared wrongly. You are required to prepare a correct Trial Balance:
Name of Account Balance Dr. (Rs) Balance Cr. (Rs)
Bank overdraft 2,800
Cash-in-hand 400
Purchases Returns 800
Sundry Expenditures 2,400
Sales Returns 1,600
Salaries 1,600
Purchases 5,600
Sales 8,800
Creditors 2,400
Debtors 1,600
Opening Stock 2,000
Plant and Machinery 4,000
Capital 4,000
22. Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns.
i. Deposit of Cash into Bank.
ii. Withdrawal of money from the Bank for office use.
iii. Deposit of cheques (received from others) into Bank.
iv. Dishonour of cheques deposited into Bank.
23. On 31st March, 2023 the pass book showed a credit balance of ₹ 9,000.
Prepare a Bank Reconciliation Statement from the following particulars:
i. Cheque issued but not yet presented for payment ₹ 7,000.
ii. Cheque issued but omitted to be recorded in cash book ₹ 3,800.
iii. Cheque paid into bank but not yet collected by the bank ₹ 2,600.
iv. Premium of life policy paid by bank on standing order ₹ 360.
v. Payment received from customers direct by the bank ₹ 2,000.
OR
Prepare Bank Reconciliation statement as on 31st July 2013

i. Dr. Balance as per Cash Book is Rs. 20,000 as on 31st Jul 2013.
ii. Cheques for Rs. 5000 were deposited into the Bank in the month of July but only Cheques for Rs. 1000 were credited
by bank till 31st July 2013.
iii. Cheques issued for Rs. 33000 in July, out of which a cheque for Rs. 13,800 was presented for payment on 3rd
August, 2013.
iv. Bank charged Rs. 150 as Bank charges and credited interest of Rs. 400.
v. A customer directly deposited Rs. 2,500 in firm’s bank A/C.
vi. Bank paid the insurance Premium of Rs. 1200 as per standing instruction on 25.7.2013.
24. Journalise the following transactions of Ram, Delhi :
2018 Rs.
Jan 1 Ram commenced business with cash 30,000
Opened a bank account with Union Bank by cheque
Jan 2 21,000
from savings account
Jan 3 Purchased goods from Rahul in Cash 10,000

Jan 7 Withdrew cash from bank for office use 3,000
Jan 10 Sold goods to Hari, Delhi on credit 5,000
Jan 15 Purchased goods from Shyam, Meerut (UP) 15,000
Jan 20 Cash sales 3,000
Jan 25 Paid to Shyam 14,750
Jan 31 Paid Salaries 10,000
CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and
purchase.
OR
Record the following transactions in a journal

i. Received cash from Jaya for a bad debt written-off last year Rs400.
ii. Bought goods at the list price of Rs 1,00,000 from Rani less 20% trade discount and 2% cash discount and paid 40%
by cheque.
iii. Sold goods to Preeti at the list price of Rs 2,00,000 less 20% trade discount and 2% cash discount and paid 50% by
cheque.
iv. Sold goods to Tanu for Rs40,000, allowing her a trade discount of 5% and a cash discount of 10%. She paid l/4th of
the amount in cash at the time of purchase.
25. Pass the rectification entries for the following transaction:
i. An amount of Rs.2,000 received from Mohan on 1st April 2017 had been entered in the Cash Book as having been
received on 31 March 2017.
ii. The balance in the account of Mr. Rahim Rs.1,000 had been written off as bad, but no other account has been debited.
iii. An addition in the Returns Inward Book had been cast Rs.100 short.
iv. A cheque for Rs.200 drawn for Petty Cash Account has been posted in the account of Asif.
v. A discounted Bill of exchange for Rs.20,000 returned by the firm's bank had been credited to the Bank Account and
debited to Bills Receivables Account.
A cheque was received later from the customer for Rs.20,000 and duly paid.
vi. Ramesh A/c was credited with Rs.840 twice instead of once.
[Hint: (v) Dr. Customer’s A/c and Cr. Bills Receivable A/c by ₹20,000]
OR
Rectify the following errors which are detected before preparation of the Trial Balance:
i. Sale to Pawan ₹20,000 posted to his account as ₹2,000.
ii. Sale to Pawan ₹20,000 debited to his account as ₹2,000.
iii. Sale to Pawan ₹20,000 credited to his account as ₹2,000.
iv. Sale to Raman ₹5,600 posted to his account as ₹6,500.
v. Purchases of ₹8,755 from Naman posted to his account as ₹5,578.
vi. Purchases of ₹6,580 from Naman posted to his account as ₹8,560.
vii. Cash sale to Amit of ₹10,000 posted as ₹1,000.
viii. Debit balance of ₹5,000 was carried forward as a credit balance in Ramesh’s Account.
ix. Credit purchase of furniture ₹10,000 from Raunaq was posted as ₹1,000.
26. On 1st Oct, 2020, X Ltd. purchased a machinery for ₹ 6,00,000. On 31st May, 2022, a part of the machinery purchased
on 1st Oct. 2020 for ₹ 80,000 was sold for ₹ 30,000. On the same date, fresh machinery was purchased for ₹ 1,50,000.
Depreciation is provided at 20% per annum on the written down value method and the books are closed on 31st March
each year. You are required to prepare
i. Machinery Account,
ii. Provision for Depreciation Account, and
iii. Machinery Disposal Account.
OR
On 1st October 2014, Bansal Pvt. Ltd. purchased machinery for Rs 12,00,000. On 31st May, 2016, a part of the
machinery purchased on 1st October 2014 for Rs 1,60,000 was sold for Rs 60,000. On the same date, fresh machinery
was purchased for Rs 3,00,000. Depreciation is provided at 20% per annum on the written down value method and the
books are closed on 31st March each year. You are required to prepare (a) Machinery Account, (b) Provision for
Depreciation Account, and (c) Machinery Disposal Account.
Part B
27. When closing capital is less than opening capital, it denotes:
a) Profit
b) None of these
c) Loss
d) Loss, if there is no drawing
OR
In a single entry system, it is not possible to prepare:

a) Balance sheet
b) Account sales
c) Receipts and payments A/c
d) Trial balance
28. 11.Which of the following is long term liability ?
a) Creditors
b) Outstanding expense
c) Bills payable
d) Debentures
29. Net profit before the following adjustments is Rs.180000, outstanding salary-Rs.13000, prepaid insurance-Rs.10000
a) Rs.175000
b) Rs.180000
c) Rs.183000
d) Rs.20400
OR
What should be the journal entry when managers commission due

a)
Outstanding Manager's Commission A/c Dr.
To Manager's Commission A/c
b)
Manager's Commission A/c Dr.
To Outstanding Manager's Commission A/c
c)
To Outstanding Manager's Commission A\c
d)
To Outstanding Manager's A/c
30. Ascertain the value of the closing stock from the following:
₹
Opening Stock 1,20,000
Purchases during the year 9,30,000
Sales during the year 15,60,000
Rate of Gross profit 40% on Sales
31. State with reasons whether the following receipts would be treated as Capital or Revenue:
i. ₹ 5,000 received from a customer whose account was previously written off as bad.
ii. ₹ 20,000 received from sale of the old machine.
iii. ₹ 2,60,000 received from sale of stock-in-trade.
iv. ₹ 5,00,000 is contributed by a partner as capital.
v. Took a loan of ₹ 10 Lac from HDFC.
vi. Received ₹ 4 Lac as subsidy from State Government.
vii. Received ₹ 8 Lac as grant from the State Government for the construction of quarters for the staff.
32. Goods costing ₹ 26,000 were sent to a customer at 20% profit on sale on sale or return basis. Customer returned goods of
the selling price of ₹ 7,000. At what amount the remaining goods with the customer will be shown in the Balance Sheet?
33. X, a retailer, has not maintained proper books of account, but it has been possible to obtain the following details:
Last Year (Rs.) This Year (Rs.)
Trade Creditors 6,270 5,890
Loan from Naresh 5,000 5,000
Stock 12,350 11,980
Cash in hand 570 650
Shop Fittings 7,250 7,800
Trade Debtors 5,280 4,560
Bank Balance 3,990 4,130
Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that
i. Shop Fittings are to be depreciated by Rs.780.
ii. X has drawn Rs.100 per week for his own use.
iii. Included in the Trade Debtors is an irrecoverable balance of Rs.270.
iv. Interest at 5% p.a. is due on the loan from Naresh, but has not been paid for the year.
OR
Ashok keeps incomplete records. The position of his business on 1st April, 2016 was as follows:
Cash in Hand ₹ 2,200; Cash at Bank ₹ 5,400; Stock ₹ 25,100; Sundry Debtors ₹ 18,700; Furniture ₹ 6,000; Sundry
Creditors ₹ 13,500. His position on 31st March, 2017 was as follows: Cash in Hand ₹ 1,500; Cash at Bank ₹ 8,400; B/R
₹ 3,300; Stock ₹ 26,000; Sundry Debtors ₹ 24,600; Furniture ₹ 8,000; Sundry Creditors ₹ 14,200. During the year he had
withdrawn from the business ₹ 18,000, of which ₹ 9,200 were spent in purchasing a Typewriter for the business.
i. Depreciate furniture and typewriter by 10%.
ii. Write off ₹ 600 as Bad-Debts.
iii. Make a provision of 5% on Debtors for doubtful debts.
Calculate the profit or loss of his business for the year ended 31st March, 2017 and prepare a final statement of
affairs, after the above adjustments.
34. On 31st March, 2017 the following Trial Balance was extracted from the books of Mohan:-
Dr. ₹ Cr. ₹
Capital 30,000
Drawings 5,000
Bank Loan 9,500
Interest on Loan 300
Cash 2,000
Provision for Bad-Debts 700
Stock 1-4-2016 6,800
Motor Vehicles 10,000
Bank 3,500
Land and Buildings 12,000
Bad-Debts 500
Purchases and Sales 66,000 1,10,000
Returns 8,000 1,500
Carriage Outward 2,500
Carriage Inward 3,000
Salaries 9,000
Rent and Insurance 3,000
Advertising 3,500
Discount 500
B/R and B/P 6,000 2,000
Rent received 300
1,64,500 1,64,500
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date after
taking into account the following:-
i. Private purchases amounting to ₹4,000 have been debited to Purchases Account.
ii. Depreciate Land and Buildings at 2.5% and Motor Vehicles at 20%.
iii. Salaries outstanding ₹200.
iv. Prepaid Insurance ₹200.
v. Provision for Doubtful Debts is to be maintained at 5% on Debtors.
vi. Stock on 31st March, 2017 was valued at ₹7,000.
OR
From the following particulars taken out from the books of Anand General Store, prepare trading and profit and loss
account for the year ended 31st March 2013 and balance sheet as on that date.
Name of Accounts Amt(Rs) Name of Account Amt(Rs)
Plant and machinery on 1st April 2012 16,00,000 Rent 24,000
Plant and machinery purchased on 1st Insurance premium paid from 1st January 2012 to 31st
40,000 2,400
July, 2012 December, 2013
Sundry debtors 2,40,000 Cash at Bank 10,800

Creditors 64,000 Wages 40,000
Furniture 10,000 Octrol 800
Motor car 1,40,000 Advertising 9,600
Purchases 3,20,000 Carriage Inwards 20,400
Sales 5,60,000 Carriage Outwards 4,000
Sales Returns 30,000 Fuel and Power 31,400
Salaries 72,000 Majoj's capital 7,00,000
Opening Stock 1,20,000 Majoj's drawings 24,000
Motor Car Expenses 12,000 Brokerage 1,400
Stationery 1,000 Donation 10,200
i. Closing stock Rs 1,10,000 stock valued at Rs 20,000 was destroyed by fire on 18th March, 2013 but the insurance
company admitted a claim of Rs 13,600 only which was received in April, 2013.
ii. Stationery for Rs 300 was consumed by the proprietor.
iii. Goods costing Rs 2,400 were given away as charity.
iv. A new signboard costing Rs 3,000 is included in advertising.
v. Rent is to be allocated 2/3rd to factory and 1/3rd to office.
vi. Depreciate machinery by 10% and motor car by 20%.
.
Maximum Marks: 80

Part A
1. Which voucher is prepared for the payment of salary, purchase of goods, payment made to any creditor etc.
a) Creditor voucher
b) None of these
c) Debit voucher
d) Both
2. Assertion (A): Accounting is an art as it involves recording, classifying, summarising business transactions with a view
to ascertain the net profit.
Reason (R): Accounting is a science since it is based on certain specified principles and accounting standards.
3. Withdrawal of cash from the business by the proprietor is credited to:
a) Drawing A/c
b) Profit and Loss A/c
c) Capital A/c
d) Cash A/c
4. Total assets in a business are ₹ 8,00,000 and total liabilities are ₹ 5,00,000. The difference is called:
a) expenses
b) income
c) goodwill
d) capital
OR
Goods costing Rs. 15,000 were sold for cash at a profit of 20%. By what amount stock account will decrease:
a) Rs.20,500
b) Rs.15,000
c) Rs.25,000
d) Rs.1,500
5. Invoice is a source voucher for
a) Credit purchases
b) None of these
c) Both Cash and Credit purchases
d) Cash purchases
6. What accounting method is followed for the recording of transactions?
a) Single entry system
b) Double Entry System
c) None of these
d) Cash Basis System
OR
Book Keeping and Accounting:

A. means the same and are used interchangeably.
B. does not mean the same and are not used interchangeably.
a) Statement A is correct
b) None of these
c) Both statement A and B is correct
d) Statement B is correct
7. A Provision is:
a) an appropriation of profits
b) none of these
c) a charge against profit
d) can be an appropriation of profits and a charge against profit
8. Which of the following accounts always shows a debit balance?
a) Capital Account
b) Purchase Return Account
c) Sales Account
d) None of these
OR
Balance of Capital Account is shown as:

b) Revenue Account
c) None of these
d) Capital Account

net income:
a) Matching
b) Conservatism
c) Business entity
a) Conservatism
b) Business entity
c) Matching
11. Reserves can be meant for the purpose of:
a) meeting a future contingency
b) strengthening the general financial position of the business
c) All of these
d) redeeming a long-term liability
12. are those assets that cannot be realised in cash, or no further benefit can be derived, from these assets.
a) Current assets
b) Real assets
c) Nominal assets
d) Realisable assets
13. Which of the following transactions is not recorded in the Journal Proper:
a) Adjustments entries
b) Sale of goods in cash
c) Transfer entries
d) Opening entries
14. Calculate total expenses if capital Rs.2,00,000, creditors Rs. 50,000, revenue Rs.5,00,000 and asset Rs. 5,00,000.
a) Rs.5,50,000
b) Rs.7,00,000
c) Rs.2,50,000
d) Rs.3,50,000
15. Amount received or receivable against sale of goods is:
a) Sometimes revenue receipt and sometimes capital receipts
b) Revenue Receipt
c) Capital Reserve
d) Capital Receipt
OR
Expenditure of revenue nature that gives benefit for more than one accounting period is categorised as:
a) Deferred Revenue Expenditure
b) Capital Expenditure
c) Revenue Expenditure
d) Cash Expenditure
16. Which of the following entries are recorded in journal proper?
a) All of these
b) Endorsement and dishonor of bills of exchange
c) Purchase of items on credit other than goods
d) Goods withdrawn by the owner for personal use
17. Provision is created by debiting :
a) Profit and Loss Account
b) Profit and Loss Appropriation Account
c) Trading Account
d) None of these
18. Give a specimen of an account.
OR
Journalise the following transactions in the books of Ashok:

i. Received ₹ 11,700 from Hari Krishan in full settlement of his account for ₹ 12,000.
ii. Received ₹ 11,700 from Shyam on his account for ₹ 12,000.
iii. Received a first and final dividend of 70 paise in the rupee from the official receiver of Rajagopal who owed us ₹
7,000.
iv. Paid ₹ 2,880 to A.K. Mandal in full settlement of his account for ₹ 3,000.
v. Paid ₹ 2,880 to S.K. Gupta on his account for ₹ 3,000.
19. Which financial statements are prepared under Ind-AS?
OR
International Financial Reporting Standards (IFRS) provides a number of benefits. Explain any three.
20. Explain and give example of each of the following accounting terms:
i. Expenses
ii. Drawings
iii. Gain
21. Following balances were extracted from the books of Rajesh Associates as at 31st March, 2023:
(₹) (₹)
Sundry Debtors 4,10,000 Stock (April 1, 2022) 2,30,000
Sundry Creditors 80,000 Premises 12,00,000
Rent and Taxes 48,000 Fixtures & Fittings 3,10,000
Purchases 34,00,000 Bad Debts written off 8,000
Sales 56,00,000 Rent received from sub-let of part of premises 30,000
Trade Expenses 12,000 Loan from Rahul 1,50,000
Returns Outwards 80,000 Interest on Rahul's Loan 15,000
Returns Inwards 1,20,000 Drawings 40,000
Expenses 4,000 Cash in hand 75,000
Motor Vehicles 6,50,000 Stock on 31st March, 2023
Electricity 25,000 (not adjusted) 3,80,000
You are required to prepare the trial balance treating the difference as his capital.
22. Prepare double column cash book of M/s Advance Technology Pvt. Ltd. for the month of December 2014 from the
following transactions:
Date 2017 Particulars Amount (₹)
Dec. 01 Cash balance 3,065
Cash at bank 6,780
Dec. 02 Cash paid to petty cashier 1,000
Dec. 03 Received cheque from Priya 3,000
Dec. 05 Deposited into bank 1,200
Dec. 06 Priya’s cheque deposited into bank 3,000
Dec. 08 Purchased furniture by cheque 6,500
Dec. 10 Paid trade expenses 400
Dec. 13 Bank charges 300
Dec. 15 Dividend collected by bank 1,200
Dec. 16 Paid electric bill by cheque 600
Dec. 17 Cash purchases 2,000
Dec. 19 Paid for advertising 1,000
Dec. 21 Goods sold and received a cheque (deposited same day) 6,000
Dec. 22 Paid legal charges 500
Dec. 23 Drew from bank for personal use 2,000
Dec. 24 Paid establishment expenses 340
Dec. 25 Paid for printing of bill book 850
Dec. 26 Paid insurance premium by cheque 2,150
Dec. 28 Paid salary by cheque 4,000
Dec. 29 Rent paid 3,000
Dec. 30 Commission received by cheque (deposited same day) 2,500
Dec. 31 Paid for charity by cheque 800
23. From the following particulars, prepare a Bank Reconciliation Statement of Mr. Malhotra on 31st December 2023:-
Balance as per Pass Book on 31st December, 2023 is ₹ 11,000. Cheques for ₹ 6,200 were issued during the month of
December but of these cheques for ₹ 900 were presented in the month of January, 2024 and one cheque for ₹ 500 was
not presented for payment. Cheque and cash amounting to ₹ 5,700 were deposited in bank during December but credit
was given for ₹ 4,700 only. A customer had deposited ₹ 850 into the bank directly. The bank has credited the merchant
for ₹ 150 as interest and has debited him for ₹ 30 as bank charges, for which there are no corresponding entries in Cash
Book.
OR
On 30th June, 2023, the Cash Book of M/s Ravi and Shiv showed a balance of ₹4,000 at Bank. They had sent cheques
amounting to ₹20,000 to the bank before 30th June, but it appears from the Pass Book that cheques worth only ₹8,000
had been credited before that date. Similarly, out of cheques of ₹10,000 issued during the month of June, cheques for
₹500 were presented and paid in July.
The PassBook also showed the following payments:
i. ₹640 as premium on the life policy according to standing instructions; and
ii. ₹4,000 against a pro-note, as per instructions.
The Pass Book showed that the bank had collected ₹1,200 as interest on Government Securities. The bank had charged
interest ₹ 100 and bank charges ₹40. There was no entry in the Cash Book for the payments, interest etc.
Prepare the Bank Reconciliation Statement as on 30th June, 2023.
24. Prepare journal form the transactions given below:
Cash paid for installation of machine 500
Goods given as charity 2,000
Interest charge on capital @ 7% per annum when total capital were 70,000
Received ₹ 1,200 of a bad debts written-off last year
Goods destroyed by fire 2,000
Rent outstanding 1,000
Interest on drawings 900
Sudhir Kumar who owed me ₹ 3,000 has failed to pay the amount He pays me a compensation of 45 paise in a
rupee.
Commission received in advance 7,000
OR
Journalise the following:

i. Received a V.P.P. from Ranvijay for ₹ 20,000. Sent a peon to collect it who paid ₹ 150 as cartage.
ii. Paid ₹ 3,000 for subscribing to newspapers and magazines.
iii. Received ₹ 500 from sale of old newspapers and magazines.
iv. Received ₹ 10,000 from sale of old chairs, tables etc.
v. Paid interest on loan ₹ 6,000.
vi. Withdrawn goods for personal use ₹ 8,000.
vii. Goods stolen - Cost Price ₹ 48,000.
viii. Goods destroyed by fire - Cost Price ₹ 1,60,000.
ix. Sold goods to X on credit ₹ 6,00,000.
1
x. X returned 6 th of the goods sold to him.
xi. X settles his account after deducting 10% discount for prompt payment.
xii. Salaries paid ₹ 80,000 and salaries owing (due) ₹ 20,000.
xiii. Paid Income Tax ₹ 80,000 by cheque.
25. The books of Ritik did not agree. The difference of ₹ 12,700 in trial balance was placed to the debit of suspense account.
Subsequently, the following errors were located. Pass journal entries to rectify the errors and prepare the suspense
account:
i. The total of the purchases returns book, ₹ 2,100 has not been posted.
ii. A sale of ₹ 4,300 to Rahul has been credited to his account as ₹ 3,400.
iii. A purchase from Satyam for ₹ 4,000 has been entered in the sales book. However, Satyam has been correctly credited
with ₹ 4,000.
iv. Old furniture sold on credit for ₹ 5,400 has been recorded in the sales account as ₹ 4,500.
v. Goods taken away by Ritik, the proprietor for his personal use worth ₹ 750 has not been recorded in the books of
accounts at all.
OR
Fill up the missing information in the following rectifying entries:
JOURNAL
Amount Amount
Dr. (₹) Cr.(₹)
(i) Dr.
To
(Total of returns outwards book ₹ 6,800 omitted to be posted in the ledger)
(ii) Dr.
Dr.
To
(Purchases for ₹ 30,000 wrongly entered in the sales book though correctly
entered in the personal account)
(iii) Dr.
To
(Sale of ₹ 22,000 wrongly credited to Mayank’s account as ₹ 20,000)
(iv) Dr.
Dr.
To
(Sale of furniture for ₹ 54,000 wrongly credited to sales account as ₹ 45,000)
(v) Dr.
To
(Rent of proprietors residence ₹ 18,000 debited to rent account)
SUSPENSE ACCOUNT
Dr. Cr.
To Difference in Trial Balance 86,200 By
To By
To By
26. On 1st April, 2022, following balances appeared in the books of M/s Krishna Traders:
₹
Furniture Account 50,000
Provision for Depreciation on Furniture Account 22,000
On 1st October, 2022 a part of Furniture purchased for ₹ 20,000 on 1st April, 2018 was sold for ₹ 5,000. On the same
date a new furniture costing ₹ 25,000 was purchased. The depreciation was provided @10% p.a. on original cost of the
asset and no depreciation was charged on the asset in the year of sale. Prepare Furniture Account and Provision for
Depreciation Account for the year ending 31st March, 2023.
OR
On 1.1.2011 Machinery was purchased for Rs 80,000. On 1.7.2012 additions were made to the account of Rs 40,000.
On 31.3.2013 machinery purchased on 1.7.2012 costing Rs 12,000 was sold for Rs 11,000 and on 30.6.2013 machinery
purchased on 1.1.2011, costing Rs 32,000 was sold for Rs 26,700. On 1.10.2013 additions were made to the amount of
Rs 20,000. Depreciation was provided at 10% p.a. on the Diminishing Balance Method.
Show the Machinery Account for three years from 2011 to 2013 (Year ended 31st December).
Part B
27. Single entry system of accounting is not reliable because
a) The balance sheet cannot be prepared
b) Trial balance cannot be prepared
c) All of these
d) Trading and profit and loss account cannot be prepared
OR
A single entry system is:

a) Complete and scientific system
b) Complete and unscientific
c) Incomplete and unscientific
d) None of these
28. Training fee received appearing in the Trail balance is shown
a) On the debit side of the Profit and loss account
b) On the credit side of the Profit and loss account
c) On the debit side of the Trading account
d) On the Credit side of the Trading account
29. What should be journal entry of commission earned but not received Rs. 2000
a)
Cash A/c Cr. 2000
To Commission A/c 2000
b)
Cash A/c Dr. 2000
c)
Accrued Commission A/c Dr. 2000
d)
Accrued Commission A/c Dr. 2000
To Cash A/c 2000
OR
Calculate provision for doubtful debt. If debtor closing balance is Rs.3,400 and provision for the reserve of doubtful
debts at 10% on sundry debtors
a) Rs.2,060
b) Rs.3,400
c) Rs.340
d) Rs.3,060
30. Distinguish between Capital Receipts and Revenue Receipts.
31. Ascertain Cost of Goods Sold and Gross Profit from the following:
₹
Purchases 2,80,000
Direct Expenses 20,000
Indirect Expenses 45,000
Closing Stock 50,000
Sales 4,00,000
Sales Returns 8,000


Wages Paid 66,000
Salary Paid 16,500
Wages Rs 6,000 and salary Rs 1,500 are outstanding.
33. X who keeps incomplete records gives you the following information:
ASSETS AND LIABILITIES

1st April, 2016 (₹) 31st March, 2017 (₹)
Stock in hand 18,700 20,400
Debtors 12,000 14,000
Creditors 9,000 1,500
Bills Receivable 4,000 5,000
Bills Payable Furniture 1,000 200
Building 600 600
4,350 3,350
(Overdraft)
You are also given the following information:

i. A provision of ₹ 1,450 is required for bad and doubtful debts.
ii. Depreciation @ 5% is to be written off on Building and furniture.
iii. Wages outstanding ₹ 3,000; salaries outstanding ₹ 1,200.
iv. Insurance has been prepaid to the extent of ₹ 250.
v. Legal Expenses outstanding ₹ 700.
vi. Drawings of Mr. X during the year were ₹ 7,520.
Prepare a statement of Profit as on 31st March, 2017, and a final statement of affairs as at that date.
OR
X tells you that his capital on 31st December, 2013 is Rs 1,87,000 and his capital on 1st January, 2013 was Rs 1,92,000.
He further informs you that during the year, he gave a loan of Rs 35,000 to his brother on private account and withdrew
Rs 3,000 per month for personal purposes, he also used a flat for his personal purposes, the rent of which at the rate of Rs
1,000 per month and electricity charges at an average rate of Rs.100 per month were paid from the business account.
During the year, he sold his 7% government bonds of Rs 20,000 at 2% premium and brought that money into the
business. Besides this, there is no other information.
You are required to prepare a statement of profit.
34. Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2023 from the following Balances of
Mr. Sundar Lal:
Capital Account 41,000 Drawings 5,000
Creditors-Trade 30,000 Purchases 1,71,000
Creditors-Expenses 6,800 Carriage inwards 1,500
Rent Received 600 Wages 23,000
Purchases Returns 4,000 Power 9,000
Sales 2,89,600 Rent and Insurance 19,900
Bad-Debts Provision on 1st April, 2022 600 Salaries 34,400

Advertising Development 8,000 Discount Received 1,800
Goodwill 5,000 General Charges 8,600
Plant and Machinery 20,000 Sales Returns 600
Traveller’s Samples 2,700 Traveller’s Commission 2,890
Stock on 1-4-2022 32,000 Traveller’s Salaries 9,100
Debtors 14,600 Discount Allowed 5,000
Cash at Bank 2,000
Cash in hand 110
Adjustments:- The Closing stock was ₹ 23,000 but there has been a loss by fire on 20th March, 2023, to the extent of ₹
20,000, not covered by insurance. Depreciate Plant and Machinery by 10% and Traveller’s Samples by 33 31 %. Increase
the Bad-debts Provision to ₹ 2,000. Write 20% off Advertising Development Account. Annual premium on insurance
expiring 1st June, 2023 was ₹ 1,200. Provide for Manager's commission @ 5% on Net Profits after charging such
Commission.
OR
Prepare trading and profit and loss account for the year ended 31st March, 2013 and a balance sheet as on that date from
the following trial balance.
Name of Accounts Amt (Rs) Name of Accounts Amt (Rs)
Stock on 1st April, 2012 16,000 Sales less returns 1,10,000
Purchases less returns 38,000 Sundry creditors 15,000
P Kumar 1,500 Capital 33,900
Wages 7,700 Mortgage and interest to Date 7,800
Carriage inwards 1,300 Rent Outstanding 500
Carriage Outwards 750
Salaries 20,000
Advertisements 4,500
Trade Expenses 2,400
Rent 6,000
Establishment 2,700
Stable Expenses 1,050
Mortgage interest 300
Sundry Debtors 20,000
Cash in hand 1,250
Machinery 43,750
1,67,200 1,67,200
Additional Adjustments
i. Closing stock was Rs 23,000.
ii. Provision for doubtful debts be created on sundry debtors @ 5% and a provision for discount on sundry debtors at
2%.
iii. Salary of Rs 1,500 paid to SP Kumar an employee of the firm, stand debited to his personal account and it is to be
corrected.
iv. A stationery bill for Rs 100 remains unpaid and unrecorded.
v. Written-off one-third of advertisement expenses.
vi. Sundry creditors include Rs 5,000 loan taken from Mr Sudhir on 1st September, 2012 bearing interest @ 12% per
annum.
myCBSEguide

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Maximum Marks: 80

Part A
1. Cash vouchers are types of accounting vouchers that are prepared for cash transactions only. Which of the following are types of
cash vouchers?
a) Cheque vouchers and credit vouchers
b) Debit vouchers and cheque vouchers
c) Cash receipt vouchers and cash payment vouchers
d) Debit vouchers and credit vouchers
2. Assertion (A): Statements prepared through management account are helpful in decision making process.
Reason (R): The information provided by management accounts is financial and non-financial as well.
3. According to the Traditional Approach, there are three types of Accounts:
a) Personal, Expense, Nominal
b) Personal, Real, Assets
c) Personal, Real, Nominal
d) Revenue, Real, Nominal
4. If assets = Rs. 60000 and liabilities = Rs.25000, What is the capital in the business?
a) Rs.95000
b) Rs.35000
c) Rs.25000
d) Rs.85000
OR
What shall be the amount of Capital if Cash is Rs 5,000; Furniture Rs 12,000; Stock Rs 30,000 and Creditors Rs 6,000?
a) None of these
b) Rs 53,000
c) Rs 47,000
d) Rs 41,000
5. Which source document is sent to inform about the credit made in the account of the buyer along with the reasons mentioned in it?
a) Credit receipt
b) Credit note
c) Credit bill
d) Credit slip
6. In accounts, recording is made of:
a) Only financial transaction
b) Personal transactions of the Proprietor
c) Only Non-financial transactions
d) Both financial and non-financial transactions
OR
Which of the following is the limitation of accounting?

A. Unrealistic Information
B. Assistance to Management
C. Replaces Memory
D. Evidence in Court
a) B only
b) A only
c) C only
d) D only
7. If the amount of any known liability cannot be determined accurately:
a) Provision should be created
b) Definite liability should be created
c) Should be shown as a contingent liability
d) Reserve should be created
8. Real account (which include cash and all other assets) will usually show:
a) Debit Balance
b) Both debit and credit balance
c) None of these
d) Credit Balance
OR
Balance of Capital Account is shown as:

b) Revenue Account
c) None of these
d) Capital Account
A business purchased goods for ₹ 2,00,000 and sold 75% of such goods during accounting year ended 31st March 2020. The market
value of remaining goods was ₹ 43,000. Accountant valued closing stod at cost. According to him,

ii. All expenses incurred to earn revenue or a particular period should be charged against that revenue to determine the net income:
9. A business purchased goods for ₹ 200,000 and sold 75% of such goods during the accounting year ended 31st March, 2020. The
market value of the remaining goody was ₹ 43,000 Accountant valued closing stock it cost: Identify the concept violated in the
above situation.
a) Matching
b) Conservatism
c) Business entity
a) Conservatism
b) Business entity
c) Matching
11. are created from revenue/profits which arise out of the normal operating activities of the business and are otherwise
freely available for distribution as dividend.
a) General reserve
b) Capital reserve
c) Specific reserve
d) Revenue reserve
12. Which of the following is an asset?
a) Sales Return
b) Purchases
c) Interest Received
d) Machinery
13. If Razi paid ₹9,900 in settlement of her account of ₹10,000, then the discount allowed of ₹100 will be recorded in:
a) None of these
b) Cash book
c) Journal book
d) Both Journal book and Cash book
14. The assets of a business on 31st March 2012 are Rs. 60000 and its capital is Rs. 45000. What are its liabilities
a) Rs.55000
b) Rs.15000
c) Rs.105000
d) Rs.25000
15. Which of the following is not an expense?
a) Rent
b) Salary
c) Furniture
d) Electricity Expenses
OR
The things or properties which helps in the smooth functioning of the business and which are owned by the business are called
of the business.
a) Assets
b) Stock
c) Liabilities
d) Capital
16. Purchase of furniture on credit should be recorded in:
a) Journal
b) Journal Proper
c) Cash Book
d) Purchase Book
17. According to Companies Act, 1956 Secret Reserves can be created by:
a) Only Private Company
b) Companies Registered under Companies Act
c) Only Public Company
d) Banking and insurance companies
18. Write a short note on balancing an account. Explain by balancing a Cash Account.
OR
Journalise the following transactions:

i. Goods for ₹ 50,000 were destroyed by fire.
ii. Goods worth ₹ 18,000 were distributed as free samples and ₹ 20,000 were given away as a charity in cash.
iii. Goods worth ₹ 25,000 and cash ₹ 40,000 were taken away by the proprietor for his personal use.
iv. Goods worth ₹ 20,000 and cash₹ 5,000 were given away as charity.
v. Cash ₹ 1,00,000 were stolen from the Iron Safe of the trader.
19. Revenue earned and the cost of earning that revenue should be properly identified for a period. Explain this statement.
OR
3
Rajaram Ltd. purchased goods worth 20 Lakh and sold 4 th of such goods during the 2008 - 09. The market price of the remaining
goods was ₹3.5 lakh on 31st March 2009. The Balance Sheet of the company shows the closing stock of goods at ₹5 lakh. Explain
the accounting principle which has been violated.
20. Write a note on types of assets with one example of each.
21. From the following information, draw up a Trial Balance in the books of Shri Haridas Chaki as on 31st March, 2019:
Capital ₹ 1,40,000; Purchases ₹ 36,000; Discount Allowed ₹1,200; Carriage Inwards ₹ 8,700; Carriage Outwards ₹ 2,300; Sales
₹ 60,000; Returns Inward ₹ 300; Returns Outward ₹ 700; Rent and Taxes ₹ 1,200; Plant and Machinery ₹ 80,700; Stock on 1st
April, 2018 ₹ 15,500; Sundry Debtors ₹ 20,200; Sundry Creditors ₹ 12,000; Investments ₹ 3,600; Commission Received ₹ 1,800;
Cash in Hand ₹ 100; Cash at Bank ₹ 10,100; Motorcycle ₹ 34,600 and Stock on 31st March, 2019 (adjusted) ₹ 20,500.
22. Enter the following transactions in the petty cash book of Sh. Narayan Swami with appropriate analysis columns. Balance it on 15th
May 2023 and show the amount which should be received from the cashier to make up the amount of the imprest ₹ 5,000.
2023 ₹
May 1 Received from cashier ₹ 4,720, the amount required to make up the amount of the imprest viz., 5,000
Purchased stamps 400
Paid for carriage 300
May 3 Paid for office cleaning 200
Paid for wages 250
Paid railway fare 350
Paid bus fare 400
May 8 Paid for wages 240
Tea to office staff 220
May 10 Paid reward to servants 150
Bought shorthand notebooks for office 580
Paid wages to casual labour 400
May 12 Purchased Pens and Pencils 520
Paid for envelopes 250
May 15 Paid for repairs to the typewriter 200

23. From the following particulars, prepare Bank Reconciliation Statement as on Dec. 31st, 2023.
i. Debit balance as per Cash Book ₹ 10,000.
ii. A cheque for ₹ 500 issued in favour of Kartik has not been presented for payment.
iii. A bill for ₹ 700 retired by bank on our behalf under a rebate of ₹ 20, the full
amount of the bill was credited in Cash Book.
iv. A cheque for ₹ 295 deposited in the bank has been dishonoured.
v. A sum of ₹ 800 deposited in the bank has been credited as ₹ 80 in the Pass Book.
vi. Payment side of Cash Book has been undercast by ₹ 200.
vii. A bill receivable for ₹ 1,000 (discounted with the bank in Nov. 2023)
dishonoured on 31st Dec. 2023, but the dishonour was not recorded in the
Cash Book.
OR
From the following particulars, ascertain the Bank balance as per Bank Statement as on 31st March, 2019 (a) without adjusting the
Cash Book balance and (b) after adjusting the Cash Book balance:
i. Bank balance as per Cash Book on 31st March, 2019 ₹ 80,000.
ii. Cheques issued but not encashed up to 31st March, 2019 amounted to ₹ 20,000.
iii. Cheques paid into the bank but not cleared up to 31st March, 2019 amounted to ₹ 30,000.
iv. Interest on investments collected by the bank but not recorded in the Cash Book ₹ 1,000.
v. Cheques deposited in the bank but not recorded in the Cash Book ₹ 25,000.
vi. Bank charges debited in the Bank Statement but not recorded in Cash Book ₹ 200.
vii. A bill for ₹ 20,000 was discounted with the Bank and recorded in the Cash Book as ₹ 20,000. The proceeds credited by Bank to
the account was ₹ 18,500.
24. Journalise the following transactions:
i. Bought goods for Rs 5,000 plus CGST and SGTS @ 6% each.
ii. Sold goods to Mehtab for Rs 50,000, charged CGST and SGST @ 6% each.
iii. Sold goods to Arpana for Rs 60,000 against cheque, charged IGST @ 12%
iv. Computer purchased by Atul & Co., Delhi for office use from HP Ltd., Greater Noida (UP) for Rs 50,000 plus IGST @ 12%,
payment made by cheque.
v. Paid Telephone bill of Rs 5,000 plus CGST and SGST @ 6% each.
vi. Goods that were purchased paying CGST and SGST @ 6% each costing Rs 1000 given as charity.
OR
Journalise the following transactions:

2023
April
Received an order for goods for ₹ 1,20,000 from M/s Ram & Sons.
1
April
Received order for goods from M/s Shekhar & Co. of ₹ 5,00,000 along with a cheque for ₹ 1,80,000 as advance.
3
April
Placed order for goods with M/s Gupta & Sons of ₹ 2,50,000; paid them ₹ 1,00,000 by cheque in advance.
5
April
Gupta & Sons supplied goods of ₹ 2,50,000.
7
April
Paid a cheque for 60% of the balance amount due to Gupta & Sons on the account.
10
April
Goods for ₹ 20,000 and furniture of the book value of 10,000 destroyed by fire.
15
April
Goods costing ₹ 50,000 were damaged in transit; a claim was made on railway authorities for the same.
20
April
Received from Salesman ₹ 60,000 for goods sold by him after deducting his travelling expenses ₹ 4,000.
22
April Sold goods to Vishesh costing ₹ 40,000 at a profit of 25% and allowed him 10% trade discount and paid for cartage ₹
25 1,000 to be charged from him.
April
Received a cheque of ₹ 40,000 from the railway authorities in full settlement of a claim for damages in transit.
28
25. Pass necessary Journal entries to rectify the following errors:
i. A credit sale of ₹5,000 to Ram omitted to be recorded in the books.
ii. Goods (Cost ₹2,000, Sale Price Rs 2,400) taken by the proprietor were not recorded anywhere.
iii. Goods sold for ₹350 to Hari on credit were omitted from the accounts although cash received subsequently from him stands
posted to his credit.
iv. A credit sale of old furniture to Mahesh for ₹500 omitted to be posted.
v. On 31st March, 2019 goods of the value of ₹3,000 were returned by Hari and were taken into stock on the same date, but no
entry was passed in the books.
OR
The Trial Balance prepared by a Book-keeper showed a difference of ₹ 1,006 which was placed in a newly opened Suspense
Account and carried forward to the next year, when the following errors were discovered:
i. Goods purchased for ₹ 99 had been posted to the credit of the supplier as ₹ 990.
ii. ₹ 75 received as discount from a creditor was duly entered in his account but it was omitted to be posted to the discount account.
iii. Sale of Furniture for ₹ 1,400 had been entered in sales book.
iv. ₹ 900 due from a customer were omitted to be taken to the Schedule of sundry debtors.
v. Goods of the value of ₹ 3,000 returned by a customer but no entry was made in the books.
vi. ₹ 355 entered in the Sales Returns book had been posted to the debit of the customer who returned the goods.
Give necessary Journal entries to rectify the above errors and prepare a suspense account.
26. On 1st April, 2020, Vijay Ltd. purchased a machinery for ₹ 2,50,000 and spent ₹ 50,000 on its installation. On 1st July, 2022 1/3rd
of machinery purchased on 1st April, 2020 was sold for ₹ 15,000 and a new machinery at the cost of ₹ 2,00,000 was purchased on
the same date. The company has adopted the method of providing depreciation @ 15% p.a. on straight-line method.
Show the machinery account, provision for depreciation account and machinery disposal account for three years ended on 31 st
March, 2021 to 31st March, 2023.
OR
Following balance appear in the books of M/s Anandi as on 1st April 2022:
₹
Machinery Account 60,000
Provision for depreciation A/c 36,000
On 1st April 2022, they decided to dispose off machinery for ₹ 8,400, which was purchased on 1st April 2018 for ₹ 16,000.
You are required to prepare Machinery Account, Provision for Depreciation Account and Machinery Disposal A/c for the 2022-23.
Depreciation was charged at 10% p.a. on original cost method.
Part B
27. Incomplete records system suitable for which type of business:
a) Tea shop
b) Washer man
c) All of these
d) Flower shop
OR
Incomplete record mechanism of bookkeeping is:
a) Unscientific
b) Scientific
c) Unsystematic
d) None of these
28. Discount Received will be shown in :
a) Debit side of Profit & Loss account
b) Debit side of Trading Account
c) Credit side of Profit & Loss account
d) Credit side of Trading Account
29. Provision for Doubtful Debts, in excess of the required provision, is credited to:
a) Debtors Account
b) Trading Account
c) Profit and Loss Account
d) None of these
OR
The manager is entitled to commission of 5% on profit before deducting the commission. The profit is Rs. 4100.The commission
will be
a) Rs.110.26
b) Rs.105
c) Rs.205
d) Rs.200
30. On 28th March, 2019, stocks costing ₹ 80,000 were destroyed by fire. These goods were purchased paying IGST @ 12%. The stock
was insured and the insurance company admitted a claim of ₹ 85,000 only. Give necessary Journal entries and show how it will be
shown in the Final Accounts.
31. State with reasons whether the following are capital or revenue expenditure:
i. Custom duty paid on import of a machinery.
ii. Wages paid in connection with the erection of a new machinery.
iii. ₹ 50,000 spent on repainting the factory.
iv. Repairs ₹ 20,000 necessitated by negligence of an operator of machine.
v. ₹ 1,00,000 paid for electricity bill.
32. Rahul’s Trial Balance as on 31st March, 2019 has the following information:
Heads of Accounts Debit (₹) Credit (₹)
Salaries and Wages 3,30,000 -
Electricity Expenses 55,000 -
i. Salary for the month of March, 2019 is yet to be paid.
ii. Electricity Bill for March, 2019 amounted to ₹ 5,200 was received on 2nd April, 2019. Determine the amount of Salary and
Electricity Expenses to be provided and show how the two amounts will be shown in the Final Accounts?
1st April, 2016 (₹) 31st March, 2017 (₹)
Debtors 12,000 14,000

Building 600 600
4,350 3,350
(Overdraft)

OR
Miss Priyanka runs a small bakery business. She was not maintaining her accounts on the double entry system. On 1st April, 2008
she had started the business with a capital of Rs 78,000. On 31st march, 2013 her incomplete records provide the following data
i. Amount due to suppliers of raw materials Rs 17,500.
ii. Stock of raw materials Rs 2,000 and finished products Rs 2,500.
iii. Fixed assets Rs 34,000.
iv. Amount due from customers Rs 42,000.
v. She had withdrawn Rs 2,500 per month for meeting her personal expenses.
vi. She had introduced Rs 7,000 as capital during the year.
vii. She has cash at bank Rs 21,000 and cash in hand Rs 1,800.
viii. Outstanding electricity bill Rs 2,250
Calculate the profit/loss of her business during the year using statement of affairs method.
34. From the following balances extracted from the books of Gupta, prepare the Trading and Profit & Loss Account for the year ended
31st March 2023 and Balance Sheet as at that date after taking into consideration the adjustments given below:
TRIAL BALANCE
as at 31st March, 2023
Particulars Dr. ₹ Cr. ₹
Drawing and Capital 7,500 50,000
Purchases and Sales 72,100 95,000
Returns 1,300 2,700
Sundry Debtors and Creditors 18,200 35,750
Stock (1.04.2022) 19,800
Bad Debts 3,000
Bill Receivable and Payable 12,000 23,000

Cash in Hand 300
Office Expenses 6,210
Sales Van 15,000
Sales Van Expenses 1,400
Discount 2,910
Rent and Taxes 10,700
Telephone Charges 1,050
Postage 950
Furniture 5,000
Printing and Stationery 2,750
Commission 8,400
Carriage Inwards 3,200
Salaries and Wages 20,500
2,09,360 2,09,360
Adjustments:
i. Closing Stock was valued at ₹ 61,700.
ii. Depreciate Furniture and Machinery @ 10% p.a. and Sale Van @ 20% p.a.
iii. Outstanding Rent amounted to ₹ 900.
iv. Bad Debts ₹ 200.
v. Make a provision for Doubtful Debts @ 5% on Debtors.
vi. Charge one-fourth of salaries and wages to the Trading Account.
vii. A new machinery was purchased on credit and installed on 31st December 2022 costing ₹ 15,000. No entry for the same has yet
been passed in the books.
OR
From the following balances of the year ended 31st December, 2013 and additional information, prepare the trading and profit and
loss account and the balance sheet M/s Ram Lai & Sons.
Name of Accounts Amt(Rs) Name of Accounts Amt(Rs)
Capital 80,000 Insurance 600
Purchases 82,000 Salaries 12,500
Sales 1,10,000 Bad Debts 200
Return Outwards 1,000 Carriage on purchases 200
Building 45,000 Commission (credit) 1,500
Opening Stock 15,000 Cash in hand 5,000
Debtors 20,100 Cash at Bank 25,000
Creditors 28,000 Sales tax paid 5,000
Furniture 7,000 Sales tax collected 3,500
Wages 1,800 Interest on investment 500
Rent 5,100
i. Closing stock was valued at Rs 20,000.
ii. Provide depreciation on building @ 5% and on furniture @10%.
iii. Outstanding salaries Rs 1,000.
iv. Unexpired insurance Rs 50.
v. Accrued commission Rs 300.
vi. Provide for manager's commission at 5% on net profit after charging such commission.
Maximum Marks: 80

Part A
1. The business documents which serves as the evidence of the business transactions are known as
a) Notes
b) Source documents
c) First hand documents
d) Bills
2. Assertion (A): Accounting is merely concerned with recording of the financial events.
Reason (R): Accounting also provides insightful information that helps businesses in their decision making process.
3. According to Modern approach, the decrease in assets will be?
a) Credited
b) Added to the liability
c) Debited
d) Deducted from the liability
4. Calculate total assets if capital Rs. 200000, creditors Rs. 50000, revenue Rs.500000 and expenses Rs.400000
a) Rs.200000
b) Rs.300000
c) Rs.350000
d) Rs.250000
OR
If the business's owner withdraws cash for his/her personal use what will be the effect on capital?
a) Increase in capital
b) Remain the same
c) No effect on capital
d) Decrease in capital
5. Credit note is a document evidencing that the
a) None of these
b) Account of the named person is debited for the reason stated therein
c) Credit has been granted to the named person for the reason stated therein
d) Both of these
6. Which of the following is not a limitation of accounting?
a) Evidence in Legal Matters
b) Based on accounting conventions
c) Incomplete Information
d) Omission of Qualitative Informations
OR
Which of the following is not a business transaction?

a) Purchased a gift of 2,000 for wife
b) Salary paid to manager 15,000
c) Paid rent for office 5,000
d) Purchased machinery for 50,000
7. Which of the following is the example of Revenue Reserve?
a) Profit on Redemption of Debentures
b) Profit on Revaluation of Fixed
c) Profit on Re-issue of forfeited shares
d) Investment Fluctuation Fund
8. If we debit all expenses and losses, what will be credited?
a) All assets credited
b) Credit the giver
c) What goes out
d) Incomes and gain
OR
Which of the following accounts always shows a debit balance?

a) Capital Account
b) Purchase Return Account
c) Sales Account
d) None of these

net income:
a) Matching
b) Conservatism
c) Business entity
a) Conservatism
b) Business entity
c) Matching
11. Name the reserve which has been created out of profit which has been earned in the normal course from day to day
activities of the business concern.
a) Specific reserve
b) General reserve
c) Revenue Reserve
d) Capital Reserve
12. At the end of the financial year, during which the sale of goods was worth ₹ 5,00,000, the closing stock is valued at ₹
40,000. This is .
a) a transaction
b) None of these
c) Both an event as well as transaction
d) an event
13. If XYZ Electronics Ltd. purchases 20 TV @ ₹2,000 per piece and 15 tape recorders @ ₹12,500 per piece. There was a
trade discount of 20%. What will be the amount recorded in the purchase book?
a) ₹2,27,500
b) ₹1,87,500
c) ₹40,000
d) ₹1,82,000
14. Capital of a business decreases if there is an increase in
a) Income
b) Drawings
c) Fresh Capital
d) Gains
15. Tangible Assets do not include:
a) Furniture
b) Goodwill
c) Cash
d) Stock
OR
A person or an enterprise that is not in a position to pay its debts is called:

a) Insolvent
b) Solvent
c) Bad debtor
d) All of these
16. Which of the following is/are not recorded in purchase book?
i. Cash purchase of goods worth ₹5,000.
ii. Purchase of furniture on credit worth ₹75,000.
iii. Purchase of stationery of ₹3,000 on credit.
a) i, ii and iii
b) ii and iii
c) i and iii
d) only i
17. Reserves arising from capital receipts are known as:
a) None of these
b) Capital Reserve
c) Reserve Fund
d) Capital Reserve and Reserve Fund
18. Enumerate four advantages of Ledger.
OR
Pass necessary Journal Entries in the books of Rohit Industries:

i. Wages due but not paid Rs 1,000
ii. Received Rs 600 from Mohan, which were written off as bad debts 2 years ago.
iii. Shyamlal who owed us Rs 4,000 becomes insolvent and a final dividend of 40 paise in a rupee is received from his
house.
iv. Goods distributed as free sample Rs 3,000.
19. Explain the accounting principle of matching.
OR
What is meant by the Accrual Basis of Accounting? Give any two advantages of the Accrual basis of accounting.
20. Classify the following into (i) Assets (ii) Liabilities (iii) Expenses and (iv) Revenues
Sales, Bank balance, Debtors, Bank Overdraft, Creditors, Salary to the manager, Discount to debtors, Cost of goods sold
21. Following balances were extracted from the books of Shri S. Pal on 31st March, 2019. You are required to prepare a
Trial Balance. The amount required to balance should be entered as capital.
₹ ₹
Purchases 1,70,000 Drawings 7,700
Stock (1st April 2018) 24,000 Returns Inward 3,500
Sales 1,05,000 Premises 5,28,000
Sundry Debtors 23,800 Sundry Creditors 16,100
Discount Received 3,500 Discount Allowed 2,800
Carriage Outwards 700 Carriage Inwards 1,400
Cash in Hand 3,500 Cash at Bank 17,500
Machinery 1,24,500 General Expenses 2,100
Provision for Depreciation
24,200 Bad Debts Written off 2,450
on Machinery
Provision for Doubtful

2,380
Debts
22. Record the following transactions of Sumanto, Kochi in a Two-column Cash Book and balance the book on 31st January,
2019:
Date Particulars ₹ Date Particulars ₹
2019 2019
Jan. Jan. Bought goods, including

Cash Balance 1,000 6,720
1 16 IGST @ 12%
Jan. Jan.
Bank Balance 14,500 Issued cheque to Shyam 3,700
1 19
Jan. Discount received from
Received advance by cheque 60,000 300
1 him
Jan. Jan.
Withdrew from Bank 10,000 Drew from Bank 3,000
2 20
Cash drawn from bank
Jan.
CGST and SGST @ 6% 2,000
22
Jan. Purchased goods from Amit ₹ 13,000 plus CGST and SGST each
3 @ 6% each and paid by cheque ₹ 14,000 in full settlement Cash Sales, including
Jan.
CGST and SGST @ 6% 1,904
24
each
Jan. Jan.
Paid Wages 2,500 Received from Rakesh 18,000
4 27
Discount Allowed 500
Jan. Received from Mohan a cheque for ₹ 9,800 against dues
5 of ₹ 10,000 in full settlement of his account Jan.
Deposited cash into Bank 15,000
28
Issued cheques for cash
Jan. Jan.
Mohan's cheque deposited into Bank purchases including IGST 2,240
28 28
@ 12 %
Paid rent ₹ 2,000 by

Jan. Purchased stationery for cash ₹ 1,500 plus CGST and SGST Jan.
cheque plus CGST and
14 @ 6% each 30
SGST @ 6% each
23. Prepare Bank Reconciliation Statement as on 31st March, 2019 from the following transactions:
i. Amrit’s Overdraft as per Pass Book ₹ 12,000 as on 31st March, 2019.
ii. On 28th March, cheques had been issued for ₹ 70,000 out of which cheques of ₹ 3,000 only had been encashed up to
31st March, 2019.
iii. Cheques amounted to ₹ 3,500 had been deposited into bank for collection but out of these only ₹ 500 had been
credited in the Pass Book.
iv. Bank has charged ₹ 500 as interest on overdraft and the intimation of which has been received on 2nd April, 2019.
v. Bank had collected ₹ 600 as interest on Amrit s investment.
vi. A cheque for ₹ 200 has been debited in bank column of Cash Book by Amrit, but it was not sent to bank.
vii. Credit of ₹ 15,000 was wrongly given by the bank on 20th March, 2019, which was reversed on 17th April, 2019.
OR
In the following Bank Reconciliation Statement, determine the missing amounts:

Bank Reconciliation Statement
Particulars Plus Items (₹) Minus Items (₹)
Balance as per Cash Book 16,000
(i) Cheques of ₹30,000 deposited into bank but cheques of ₹17,500 only cleared
(ii) Cheque of ₹40,000 issued but cheques of ₹21,000 presented for payment
(iii) Receipt column of Cash Book overcast by ₹500
(iv) Interest on Investment collected by bankers 600
(v) Bank charges debited by bank 400
(vi) Direct deposit made by the customer ₹400
Balance as per Cash Book
36,000 36,000
24. On the basis of the narrations, fill in the missing values:
Journal Entries
Amount Amount
(Rs) Cr. (Rs)
Dr.
(i)
To
(Being the bank draft of Rs 10,000 issued to Suman, bank charges Rs 100)
Dr. 10,000
(ii) To 10,000
(Being the cheque of Ranjan dishonoured)
Dr.
To
(iii)
To
(Being the purchase of goods of Rs 30,000; received cash discount @ 2%)
Dr.
(iv)
To
(Being the sale of goods of Rs 30,000 allowed cash discount @ 3% )
(v) Dr.
To
(Being the goods costing Rs 15,000 lost in the fire)
Dr.
(vi)
To 10,000
1
(Being the rent paid, th of the premises used for residence)
4
Dr.
To
To
(vii)
To
(Being the machinery (cost Rs 2,00,000) recorded, adjusting advance (Rs
20,000), old machine (Rs 10,000 cost) and balance by payment by cheque)
Dr. 20,000
(viii) To 20,000
(Being a computer out of stock used for office purposes)
Dr.
(ix) To
(Being the computer (stock) costing Rs 15,000 taken for domestic use)
Dr.
(x) To
To
(Being the salaries (Rs 40,000) and rent (Rs 15,000) outstanding)
OR
Journalise the following in the books of Amit Saini, Gurugram (Haryana):

i. Goods of ₹ 5,000 were taken by him for personal use.
ii. ₹ 2,000 due from Sohan were bad debts.
iii. Goods of ₹ 6,000 were destroyed by fire and were not insured.
iv. Paid ₹ 4,000 in cash as wages on installation of machine. (GST is not to be levied).
v. Sold goods to Arjun of Delhi of list price ₹ 20,000. Trade discount @ 10% and cash discount of 5% was allowed. He
paid the amount on the same day and availed the cash discount.
vi. Received ₹ 2,000 from Ramesh, whose account was written off as bad debts.
vii. Goods costing ₹ 1,000 given as charity.
viii. Received ₹ 9,750 from Ramesh in full settlement of his account of ₹ 10,000.
ix. Paid rent in advance ₹ 4,000.
CGST and SGST is to be levied on intra-state sale @ 6% each and IGST @ 12% on inter-state sale.
25. Pass Journal Entries to rectify the following errors:
i. Sales of ₹ 200 to Manish were recorded as ₹ 2,000 in the Sales Book.
ii. Goods of ₹ 300 taken by the proprietor have not been entered in the books at all.
iii. Goods of the value of ₹ 400 returned to Amit, but no entry was made in the books.
iv. A cheque of ₹ 400 received from Hira Lal was dishonoured and debited to Discount Allowed Account.
v. An amount of ₹ 600 due from Jai Shankar, which has been written off as Bad debt in the previous year, was
unexpectedly recovered and has been Credited to the personal A/c of Jai Shankar.
vi. Bill for ₹ 820 received from Ritesh for repairs to Machinery was entered in the Purchase book as ₹ 720.
OR
Rectify the following errors:

i. ₹ 4,500 spent on the extension of Buildings were debited to Repairs A/c.
ii. Wages paid to the firm’s own workmen ₹ 3,600 for the installation of a new machinery were posted to Wages
Account.
iii. The contractor’s bill for the construction of a godown at a cost of ₹ 10,000 has been charged to Repairs A/c.
iv. ₹ 1,500 paid as Wages to a worker Brijesh Pal, has been debited to his personal account.
v. Old furniture sold for ₹ 500 has been credited to Sales Account.
vi. A cheque of ₹ 620 received from Ryan, has been wrongly credited to Sarthak.
26. The following balances appear in the books of Seven Seas Ltd. as on 1st April 2022:
₹
Machinery Account 5,00,000
Provision for Depreciation Account 2,25,000
The machinery was depreciated at 10% p.a. on the Fixed Instalment Method - the accounting year being April-March.
On 1st October 2022, a machinery which was purchased on 1st July 2019 for ₹ 1,00,000 was sold for ₹ 42,000 and on the
same date, a fresh machinery was purchased for ₹ 2,00,000.
Prepare the Machinery Account and Provision for Depreciation Account for the year 2022-23.
OR
Ganga Ltd. purchased a machinery on January 01, 2014 for ₹ 5,50,000 and spent ₹ 50,000 on its installation. On
September 01, 2014 it purchased another machine for ₹ 3,70,000. On May 01, 2015 it purchased another machine for ₹
8,40,000 (including installation expenses). Depreciation was provided on machinery @10% p.a. on original cost method
annually on December 31. Prepare:
i. Machinery account and depreciation account for the years 2014, 2015, 2016 and 2017.
ii. If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for
depreciation account for the years 2014, 2015, 2016 and 2017.
Part B
27. When only closing and opening capital is given and closing capital is greater than opening capital it denotes
a) None of these
b) Loss if there is no introduction of fresh capital
c) Profit if there is an introduction of fresh capital
d) Profit if there is no introduction of fresh capital
OR
In the case of the net worth method of Single Entry System, profit is ascertained by:
a) none of these
b) preparing a Balance Sheet
c) preparing a Profit and Loss Account
d) comparing the capital at the beginning of the accounting period and the capital at the end of the accounting period
28. Which of the following is not shown in the Balance Sheet?
a) Patents
b) Debtors
c) Opening Stock
d) Closing Stock
29. Rent paid on 1st October 2015 for one year upto 30th September 2016 was Rs 2,400. Rent paid on 1st October 2016 for
the year upto 30th September 2017 was Rs 3,200. Rent showed in the Profit and Loss Account for the year ended on 31st
December 2016, would be:
a) Rs 3,200
b) Rs 3,000
c) Rs 2,600
d) Rs 6,000
OR
Insurance paid Rs. 4000 (including a premium of Rs. 3000 per annum paid up to 30th June 2017). What will be the
adjusting closing entry on 31st March
a) Insurance A/c ... Dr ... 3,000
To Cash A/c ... 3,000
b) Insurance A/c ... Dr ... 4,000
To Cash A/c ... 4,000
c) Insurance A/c ... Dr ... 750
To Insurance Prepaid A/c ... 750
d) Prepaid Insurance Premium A/c ... Dr ... 750
To Insurance A/c ... 750
30. Calculate closing stock from the following details:
₹
Cash Sales 60,000
Purchases 70,000
Credit Sales 40,000
Rate of Gross Profit on Cost 33 % 1
3
31. Calculate the operating profit from the following:
₹
Net Profit 5,00,000
Dividend Received 6,000
Loss on sale of Furniture 12,000
Loss by Fire 50,000
Salaries 1,20,000
Interest on Loan from Bank 10,000
Rent Received 24,000
Donation 5,100
32. Following balances are taken from the Trial Balance of a trader as at 31st March, 2019:
TRIAL BALANCE
as at 31st March, 2019
Heads of Accounts Dr. (₹) Cr. (₹)

Sundry Debtors 1,00,000 -
Bad Debts 2,000 -
Discount Allowed 1,500 -
Provision for Discount on Debtors - 1,000
Provision for Doubtful Debts - 6,000
You are required to show extracts of Profit and Loss Account for the year ending 31st March, 2019 and from the Balance
Sheet as on that date after taking into consideration the following:
i. Make a Provision for Doubtful Debts @ 3% of the Sundry Debtors.
ii. Make a Provision for Discount on Debtors @ 2%.
1st April, 2016 (₹) 31st March, 2017 (₹)

Debtors 12,000 14,000
Building 600 600
4,350 3,350
(Overdraft)

OR
Panwar commenced business on 1st January, 2013 with a capital of Rs 10,000, which he paid into bank account opened
for the purpose. On the same date, he brought furniture which cost Rs 2,000 and made purchases of goods worth Rs
6,500. He kept his books on single entry basis. On 31st December, 2013 stock was valued a Rs 8,300. There were book
debts amounting to 13,400 of which Rs 200 represented debts which were irrecoverable. Creditors amounted to Rs 3,600
and bank pass book showed a balance of Rs 1,450. Panwar withdrew three times from business for his private expenses,
each time he withdrew Rs 600 and in addition he used Rs 500 worth of goods from his shop. He took Rs 1,000 as loan
from his wife during the year. He gave Rs 200 to his son from business, which he omitted to enter. You are required to
prepare a statement showing profit or loss in the business for the year ending 31st December, 2013 from the above
information.
34. From the following balances, prepare trading, profit and loss account and a balance sheet as on 31st March, 20
Particulars Amt(Rs) Particulars Amt(Rs)
Capital 1,64,000 Sundry creditors 18,000
Life insurance premium 56,000 Sales 2,48,000
Plant and machinery 10,000 Returns outward 2 000
Stock in the beginning 30,000 Special rebates (debit) 1,600
Purchases 1,74,400 Special rebates (credit) 2,400
Return inwards 12,000 Rent for premises sublet 2,000
Sundry debtors 42,000 Lighting 800
Furniture 18,200 Motor car expenses 12,600
Motorcar 80,000 Bank balance 30,400
Freight and duty 4,000 Loan from Suresh at 12% per annum 20,000
Carriage in 1,600 Interest on loan from Suresh (debit) 1,800
Carriage out 600
Trade expenses 30,800
i. Stock on 31st March, 2013 was valued at 50,000 (realisable value Rs. 64,000).
ii. The stock of Rs 12,000 was burnt by fire on 25th March. It was fully insured and the insurance company admitted the
claim in full.
iii. Goods worth Rs 3,600 were distributed as a free sample. Goods worth Rs 3,000 were used for personal purposes by
the proprietor and goods worth Rs 1,000 were given away as charity.
iv. Depreciate motor car by 15%.
v. Included in trade expenses is insurance premium of 4,800 paid for the year ending 30th June 2013.
OR
From the following trial balance of M/s Arjun & Sons as at 31st, December, 2013 prepare trading and profit and loss
account and balance sheet.
Drawings and capital 18,000 80,000
Purchases and sales 82,600 1,55,000
Stock (1st January, 2013) 42,000
Returns Outward 1,600
Carriage inward 1,200
Wages 4,000
Power 6,000
Machinery 50,000
Furniture 14,000
Rent 22,000
Salary 15,000
Insurance 3,600
8% Bank Loan 25,000
Debtors 20,600
Creditors 18,900
Cash in hand 1,500
2,80,500 2,80,500
i. Closing stock Rs 64,000.
ii. Wages outstanding Rs 2,400.
iii. Bad debts Rs 600 and provisioin for bad doubtful debts to be 5% on debtors.
iv. Rent is paid for 11 months.
v. Loan from the bank was taken on 1st July, 2013.
vi. Provide depreciation on machinery @ 10% per annum.
vii. Provide manager's commission at 10% on net profit after charging such commission.

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Class 11 - Accountancy

Sample Paper - 02 (2023-24)

1. This question paper contains 34 questions. All questions are compulsory.

Difference between assets and liabilities is

According to Modern approach, the decrease in assets will be?

i. Owner of the business is treated as creditor to the extent of his capital;

You are required to fill the missing journal entries:

A/c Dr. 35,000

(Being wages outstanding)

Purchases A/c Dr.

Cash A/c Dr.

Land and Building 1,20,000

Plant and Machinery 92,000

Discount Allowed 1,620

Return Inwards 6,500

Return Outwards 3,370

Opening Stock 15,000

Carriage on Sales 3,280

Carriage on Purchase 2,800

General Expenses 6,100

Cash in Hand 2,400

Bank Overdraft 12,100

Total 4,30,200 4,30,200

04 Refreshment for employees 80

15 Taxi fare to manager 70

27 Postage stamps 200

29 Repair on furniture 105

30 Laundry expenses 115

31 Miscellaneous expenses 100

Journalise the following transactions in the books of Bhushan Agencies:

32. Extract of Trial Balance

Name of Accounts Debit Balance(Rs) Credit Balance(Rs)

Wages Paid 66,000

Salary Paid 16,500

Cash and Bank 20,000 21,000

Sundry Debtors 17,000 25,000

Stock 40,000 60,000

Furniture 29,000 29,000

Sundry Creditors 32,000 22,000

10% Loan from Mrs. Sachin 30,000 30,000

Loose Tools 6,250

Capital Account 12,500

Provision for Bad-debts 200

Sundry Debtors and Creditors 3,800 2,500

Stock on 1st April, 2018 3,460

Purchases and Sales 5,475 15,450

Bank Overdraft 2,850

Sales Return and Purchases Return 200 125

Interest Account 118

Cash in hand 650

Taxes and Insurance 1,250

General Expenses 782

The following adjustments are to be made:

The following is the trial balance of Swati on 31st March, 2013.

Interest earned 8,000

Purchases return 10,000

Sales return 20,000

Bad Debts written-off 14,000