1.

1. Class 11 Accountancy Sample Paper Part A

2. The vouchers which are prepared for transactions not involving
cash, i.e. non-cash transactions, are known as ________ vouchers.
a) Token
b) Credit
c) Transfer
d) Unilateral
3. 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.
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.
4. Goodwill account is a:
a) Nominal Account
b) Real Account
c) None of these
d) Personal Account
5. 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
OR

Purchase of machine by cash means:

a) increase in asset and decrease in the asset

b) none of these
c) the decrease in asset and increase in capital
d) increase in asset and decrease in liability
6. Source of documents are
a) Cash Memo
b) Both Cash Memo and Invoice
c) Neither Cash Memo Nor Invoice
d) Invoice
7. Income statement include
a) Profit and loss account only
b) Trial Balance only
c) Balance sheet only
d) Statement of profit and loss
OR
 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
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8. Which of the following correctly differentiates between provision
and reserves?
i. A provision is a charge against profit whereas reserve is an
appropriation of profit.
ii. Provision is made for a known liability or expense the amount
of which is not certain whereas reserve is created for
strengthening the financial position of the business.
iii. Provision is deducted before calculating taxable profits
whereas a reserve is created from profit after tax and
therefore it has no effect on taxable profit.
iv. All of these
a) Option (ii)
b) Option (i)
c) Option (iii)
d) Option (iv)
9. Rule of Debit and Credit for Impersonal account is
a) Dr. the receiver and Cr the giver
b) Dr. what goes out and Cr what comes in
c) Dr. all expenses and Cr all gains & Dr. what goes out and Cr
what comes in
d) Dr. all expenses and Cr all gains
OR

When a total of the debit side of an account exceeds the total of

its credit side, the account is said to have ________.

a) Debit Balance
b) None of these
c) Debit as well as credit balance
d) Credit Balance

1. 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.
2. 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
3. Under which concept owner of the business is treated as creditor
to the extent of his capital.
a) Conservatism
b) Business entity
c) Matching
d) Accounting period
4. Match the following. Options are
a. General reserve i. reserve are created for specific purpose

b. Specific reserve ii. reserve may or may not involve any receipts of cash

c. Capital reserve iii. created in business for rainy day

5. a) a – (ii), b – (iii), c – (ii)
6. b) a – (iii), b – (i), c – (ii)
7. c) a – (iii), b – (ii), c – (i)
8. d) a – (ii), b – (i), c – (iii)
9. Which of the following is not a fixed asset?
a) Computers
b) Furniture
c) Building
d) Cash in hand
10. Return of goods purchased on credit to the suppliers will be
entered in ____ Book.
a) Purchase
b) Sales
c) Sales Return
d) Purchase Return
11. When goods are returned to supplier assets and ________ are
________ by same amount.
a) liabilities, increased
b) assets, decreased
c) liabilities, decreased
 d) assets, increased
12. 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

Out of the following assets, which one is not an intangible asset?

a) Patents
b) Trade Mark
c) Machinery
d) Goodwill
13. Goods sold for Cash Rs 25,000 plus 12% IGST. Sales A/c will
be credited by:
a) Rs 28,000
b) Rs 22,000
c) Rs 25,000
d) None of these
14. 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
15. When an account is said to have a debit balance and credit
balance?
OR

Pass Journal entry for purchase of goods by Amrit, Delhi from Add
Gel Pens, Delhi for ₹ 15,000 less Trade Discount 10% and Cash
Discount 3%. CGST and SGST is levied @ 6% each. Assume payment
is made at the time of purchase.

16. Why is the consistency principle important?

OR

What is meant by Accounting Standard? State any two benefits of it.

17. Distinguish between debtors and creditors.

18. Following balances were extracted from the books of Ravinder
Associates as at 31st March, 2017:
19. (₹) (₹)
 Sundry Debtors 4,10,000 Stock (April 1, 2016) 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

Rent received from sub-let of part of

Sales 56,00,000 30,000
premises

Trade Expenses 12,000 Loan from Mukul 1,50,000

Returns Outwards 80,000 Interest on Mukul’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, 2017

Electricity 25,000 (not adjusted) 3,80,000

20. You are required to prepare the trial balance treating the
difference as his capital.

21. Record the following transactions in a cash book with cash and
bank columns:
2017 ₹

Jan. 1 Bank overdraft 12,000

Cash in hand 2,300

Jan. 7 Cheque received from Ram ₹ 4,000 and discount allowed ₹ 200

Jan. 8 Deposited the above cheque into Bank 4,000

Jan. 12 Banked 200

Jan. 15 Received a money order from Gopal 500

Jan. 16 Money is withdrawn from Bank for office use 300

Jan. 18 Bank Charges 20

Jan. 20 Interest on bank overdraft 1,000

22. From the following particulars ascertain the balance that
would appear in the Bank Pass Book of A at 31st December 2013:
 i. The bank overdraft as per Cash Book on 31st December 2013 ₹
63,400.
ii. Interest on overdraft for 6 months ending 31st December 2013, ₹
1,600 is entered in the Pass Book.
iii. Bank charges of ₹ 300 for the above period are debited in the
Pass Book.
iv. Cheques issued but not cashed prior to 31st December 2013
amounted to ₹ 11,680.
v. Cheques paid into bank but not cleared before 31st
December 2013 were for ₹ 21,700.
vi. Interest on investments collected by the bank is credited in the
Pass Book ₹ 12,000.
OR

On 31st March 2018, the Bank Pass Book of Naresh & Co. showed an
overdraft of Rs.10,700. From the following particulars prepare Bank
Reconciliation Statement

i. Cheques issued before 31-03-2018 but presented for payment

after that date amounted to Rs.900.
ii. Cheques paid into the Bank but not collected and credited until
31-03- 2018 amounted to Rs.2,200.
iii. Interest on overdraft amounting to Rs.1,200 did not appear in the
Cash Book.
iv. Rs.5,000 being interest on investments collected by the Bank
and credited in the Pass Book were not shown in the Cash Book.
v. Bank charges of Rs.50 were not entered in the Cash Book.
vi. Rs.800 in respect of dishonoured cheque were entered in the
Pass Book but not in the Cash Book.
23. On the basis of the narrations, fill in the missing values:
Journal Entries
Amount Amount
Date Particulars L.F.
(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% )

________ Dr. ________

To ________ ________
(v)
(Being the goods costing Rs 15,000 lost in
the fire)

________ Dr. ________

________ ________
(vi)
To ________ 10,000

(Being the rent paid, 1414th of the

premises used for residence)

________ 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)

(viii) ________ Dr. 20,000

To ________ 20,000
 (Being a computer out of stock used for
office purposes)

________ Dr. ________

To ________ ________
(ix)
(Being the computer (stock) costing Rs
15,000 taken for domestic use)

________ Dr. ________

________ ________

To ________ ________
(x)
To ________ ________

(Being the salaries (Rs 40,000) and rent

(Rs 15,000) outstanding)
OR

Journalise the following transactions:

2017 Amount (₹)

Dec.01 Hema started business with cash 1,00,000

Dec.02 Open a bank account with SBI 30,000

Dec.04 Purchased goods from Ashu 20,000

Dec.06 Sold goods to Rahul for cash 15,000

Dec.10 Bought goods from Tara for cash 40,000

Dec.13 Sold goods to Suman 20,000

Dec.16 Received cheque from Suman 19,500

Discount allowed 500

Dec.20 Cheque given to Ashu on account 10,000

Dec.22 Rent paid by cheque 2,000

Dec.23 Deposited into bank 16,000

Dec.25 Machine purchased from Parigya 10,000

 Dec.26 Trade expenses 2,000

Dec.28 Cheque issued to Parigya 10,000

Dec.29 Paid telephone expenses by cheque 1,200

Dec.31 Paid salary 4,500

24. Trial Balance of Rahul did not agree. Rahul put the difference
to Suspense Account. Subsequently, he located the following errors:
i. Wages paid for the installation of Machinery Rs 600 was posted
to Wages A/c.
ii. Repairs to Machinery Rs 400 debited to Machinery A/c.
iii. Repairs paid for the overhauling of second-hand machinery
purchased Rs 1,000 was debited to Repairs A/c.
iv. Own business material 8,000 and wages Rs 2,000 were used for
the construction of the building. No adjustment was made in the
books.
v. Furniture purchased for Rs 5,000 was posted to Purchases A/c as
Rs 500.
vi. Old machinery sold to Karim at its Book value of Rs 2,000 was
recorded through sales book.
vii. Total of Sales Returns Book Rs 3,000 was not posted to the
ledger.
Rectify the above errors and prepare Suspense Account to
ascertain the original difference in Trial Balance.
OR

There was a difference of Rs. 8,595 in a trial balance. It has been

transferred to debit side of suspense account. Later on following
errors were discovered. Pass the rectifying entries and prepare the
suspense account.

i. Rs 283 discount received from a creditor had been duly entered

in his account but not posted to discount account.
ii. Goods bought from a merchant for Rs 770 had been posted to
the credit of his account as Rs. 7,700.
iii. Rs 6,000 owing by a customer had been omitted from the
schedule of sundry debtors.
iv. An item of Rs 2,026 entered in the sales return book had been
posted to the debit of the customer who returned the goods.
25. On 1st April, 2016 a firm purchased machinery for ₹ 3,00,000.
On 1st October, 2016, additional machinery costing ₹ 1,50,000 was
purchased On 1st October, 2017, the machinery purchased on 1st
April, 2016 having become obsolete, was sold for ₹ 1,35,000. On 1st
October, 2018, new machinery was purchased for ₹ 3,75,000 while
the machinery purchased on 1st October, 2016 was sold for
₹ 1,27,500 on the same day. The firm provides depreciation on its
machinery @ 10% per annum on original cost on 31st March every
 year.
Show Machinery Account, Provision for Depreciation Account and
Depreciation Account for the period of three accounting years
ending 31st March, 2019.
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.

26. Class 11 Accountancy Sample Paper Part B

27. The time between the acquisition of an asset for processing
and its conversion into cash and cash equivalent is called
a) Production cycle
b) Operating cycle
c) None of these
d) Time gap
OR

_____ is the arrangement of various assets and liabilities in a

particular order

a) Marshalling
b) Grouping
c) All of these
d) Balancing
28. Loss on sale of an old car is debited to:
a) Profit and Loss A/c
b) Depreciation A/c
c) None of these
d) Car A/c
29. Closing Stock, if given outside the Trial Balance is shown in:
a) Profit and Loss Account
b) Trading Account and Balance Sheet
c) Profit and Loss Account and Balance Sheet
d) Balance Sheet
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. From the following information, prepare the Trading Account
for the year ended 31st March, 2017:
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns
Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing Expenses
on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹
60,000; Closing Stock ₹ 1,20,000.
32. Why is it necessary to create a provision for doubtful debts at
the time of preparation of final accounts?
33. Following is the Trial Balance of Shamit on 31st March, 2019.
Pass closing entries and prepare Trading and Profit and Loss
Account for the year ended 31st March, 2019.
TRIAL BALANCE as on 31st March, 2019
Particulars Dr.(₹) Cr.(₹)

Capital A/c – 1,00,000

Stock A/c (1st April, 2018) 20,000 –

Cash at Bank 10,000 –

Cash In Hand 4,400 –

Machinery A/c 60,000 –

Furniture and Fittings A/c 13,600 –

Purchases A/c 1,50,000 –

Wages A/c 1,00,000 –

Power and Fuel A/c 30,000 –

Factory Lighting A/c 2,000 –

Salaries A/c 70,000 –

Discount Allowed A/c 5,000 –

Discount Received A/c – 3,000

Advertising A/c 50,000 –

Sundry Office Expenses A/c 40,000 –

Sales A/c – 5,00,000

 Sundry Debtors 85,000 –

Sundry Creditors – 37,000

Total 6,40,000 6,40,000

Value of Closing Stock as on 31st March, 2019 was ₹ 27,000

OR

From the following trial balance, prepare the trading and profit and
loss account for the year ended 31st March 2013 and the balance
sheet as at that date

Debit Credit
Name of Account Amount Name of Account Amount
(Rs.) (Rs.)

Debit Balances Rent, Rates, and Taxes 800

Sundry Debtors 1,500 Salaries 2,000

Stock on 1 st April 2012 5,000 Drawings 2,000

Land and building 10,000 Purchases 10,000

Cash in hand 1,600 Office expenses 2,500

Cash at bank 400 Plant and machinery 5,700

Wages 3,000 Credit Balances

Bills Receivable 2,000 Capital 25,000

Interest 200 Interest 600

Bad debts 500 Sundry creditors 7,000

Repairs 300 Sales 17,000

Furniture and fixtures 1,500 Bills payable 400

Depreciation 1,000
On 31st March 2013, the stock was valued at Rs. 10,000.

34. From the following Trial Balance of Mr. Alok, prepare Trading
and Profit & Loss Account for the year ending 31st March, 2019, and
a Balance Sheet as at that date:-
 Dr. Balances ₹ Cr. Balances ₹

Drawings 5,275 Capital 59,700

Loan at 8% p.a. (on

Bills Receivable 4,750 10,000
1.4.2018)

Machinery 14,400 Commission Received 2,820

Debtors (including X for dishonoured

30,000 Creditors 29,815
Bill of ₹1,000)

Wages 20,485 Sales 1,78,215

Returns Inward 2,390

Purchases 1,28,295

Rent 2,810

Stock (1.4.2018) 44,840

Salaries 5,500

Travelling Expenses 945

Insurance 200

Cash 9,750

Repairs 1,685

Interest on Loan 500

Discount Allowed 2,435

Bad-Debts 1,810

Furniture 4,480

2,80,550 2,80,550
35. The following adjustments are to be made :

i. Stock in the shop on 31st March, 2019 was ₹ 64,480.

ii. Half the amount of X’s Bill is irrecoverable.
iii. Create a provision of 5% on other debtors.
iv. Wages include ₹ 600 for erection of new Machinery.
v. Depreciate Machinery by 5% and Furniture by 10%.
vi. Commission includes ₹300 being Commission received in
advance.
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OR

From the following trial balance extracted from the books of MMN,
prepare the trading and profit and loss account for the year ended
31st December, 2013 and the balance sheet as at that date.

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

Capital 90,000

Drawings 6,480

Land and buiding 25,000

Plant and machinery 14,270

Furniture and fixtures 1,250

Carriage inwards 4,370

Wages 21,470

Salaries 4,670

Provision for bad debts 2,470

Sales 91,230

Sales return 1,760

Bank charges 140

Coal, gas and water 720

Rates and taxes 840

Discount 120

Purchases 42,160

Purchases return 8,460

Bills receivable 1,270

Trade expenses 1,990

 Sundry debtors 37,800

Sundry creditors 12,170

Stock (1st January, 2013) 26,420

Apprentice premium 500

Fire insurance 490

Cash at bank 13,000

Cash in hand 850

Total 2,04,950 2,04,950

Additional Adjustments
Charge depreciation on land and building at 2 1212%, on plant and
machinery account at 10% and on furniture and fixtures at 10%.
Make a provision of 5% on debtors for doubtful debts. Carry forward
the following unexpired amounts.
i. Fire insurance Rs 125
ii. Rates and taxes Rs 240
iii. Apprentice premium Rs 400
iv. Closing stock Rs 29,390
Class 11 – Accountancy Sample Paper – 01
(Solution)

Solution
1. Class 11 Accountancy Sample Paper Part A Solution
2. (c) Transfer
Explanation: Transfer
3. (a) Both A and R are true and R is the correct explanation of A.
Explanation: Both A and R are true and R is the correct
explanation of A.
4. (b) Real Account
Explanation: Goodwill account is a Real Account, goodwill is an
intangible asset and all assets are real.
5. (a) ₹ 41,000
Explanation: Rs. (5000+12,000+30,000-6,000)=₹ 41,000
OR
 (a) increase in asset and decrease in the asset
Explanation: Purchase of machine by cash means an increase in
asset and decrease in the asset. For example Machinery purchase at
Rs. 10,000 so Machinery increase and Rs. 10,000 Cash decrease.

6. (b) Both Cash Memo and Invoice

Explanation: yes. Cash memo are prepared on cash sale or cash
purchase and Invoices are on credit transaction of sale and
purchase.
these both are source documents, on the basis of which we record
transaction.
7. (d) Statement of profit and loss
Explanation: The other name of Profit and loss account is the
income statement.
OR

(a) Evidence in Legal Matters

Explanation: Evidence in Legal Matters is not part of a limitation of
accounting.
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8. (d) Option (iv)
Explanation: Option (iv)
9. (c) Dr. all expenses and Cr all gains & Dr. what goes out and Cr what
comes in
Explanation: Impersonal account means account other than
personal.
Rule of Personal account is debit the receiver credit the giver.
So, option 3 and option 4 is other than personal means Impersonal.
OR

(a) Debit Balance

Explanation: While preparing an account if the debit side is greater
than the credit side, the difference is called “Debit Balance”. So, if
Debit Side > Credit Side, it is a debit balance.

10. (b) Conservatism

Explanation: Conservatism
11. (b) Business entity
Explanation: Business entity
12. (b) a – (iii), b – (i), c – (ii)
Explanation: General reserve is created for no specific purpose to
meet any unforeseen contingency, specific reserve is created to
meet a specific expense and capital reserves are created out of
capital profits which may or may not involve cash receipt.
13. (d) Cash in hand
Explanation: Cash in hand is a current asset, not a fixed asset.
14. (d) Purchase Return
Explanation: We prepare seprate books of credit transaction for
purchase, sale , purchase return or sale return. So, when we return
goods to the which are purchase on credit from supplier it will be
recorded in purchase return book.
15. (c) liabilities, decreased
Explanation: Stock (assets) will reduce due to purchase return and
creditors (liabilities) will also decrease by the same amount.
16. (c) A only
Explanation: Balance with the bank is not a fixed asset. It is
current asset.
OR

(c) Machinery
Explanation: Machinery is not an intangible asset. It is tangible
assets.

17. (c) Rs 25,000

Explanation: Cash A/c … Dr. … 28,000
To Sales A/c … 25,000
To IGST A/c … 3,000
So, Sales A/c will be credited by Rs 25,000.
18. (a) All of these
Explanation: Secret Reserve :- A secret reserve is one whose
existence is not disclosed in the balance sheet. It can be created by
all the methods mentioned above by suppressing sales, by charging
over depreciation etc. It is created without showing to public.
19. The difference between the sum of the two sides of an
account is called the balance. This is the most important part of an
account as it shows value or position of asset, liability, capital,
income or expenses of which the account is a record. If the total of
the debit side exceeds the total of credit side then this would be
represented by a debit balance and opposite is true for a credit
balance.
OR

Journal Entries
In The Books Of Amrit, Delhi
S.No. Particulars L.F. Dr. (₹) Cr. (₹)

Purchases A/c Dr. 13,500

Input CGST A/c Dr. 810

Input SGST A/c Dr. 810

 To Cash A/c 14,666

To Discount Received A/c 454

(Goods purchased for cash and discount received)

Working Notes:
List Price 15,000

Less: Trade Discount @ 10% 1,500

Value of Goods 13,500

Add: CGST @ 6% 810

Add: SGST @ 6% 810

Invoice Value 15,120

Less: Cash Discount @ 3% 454

Amount Paid 14,666

20. It is assumed that accounting policies are consistent from one
period to another. The consistency principle states that companies
should use the same accounting treatment for similar events and
transactions over time. In other words, companies shouldn’t use one
accounting method today, use another tomorrow, and switch back
the day after that. Similar transactions should be accounted for
using the same accounting method over time. This creates
consistency in the financial information given to creditors and
investors.
The realization concept states that no revenue should be recognized
unless it has been realized. The prudence principle puts a further
brake on it. It is not prudent to record unrealized gain but it is
desirable to guard against all possible losses. Conservatism can be a
useful tool in situations of uncertainty and doubt, but the abuse of
this principle can definitely lead to misleading and incorrect
financial statements.
OR

An accounting standard is a common set of principles, standards

and procedures that define the basis of financial accounting policies
and practices. Accounting standards improve the transparency of
financial reporting in all countries. Accounting standards are
principles that guide and standardizes the process of accounting
and is notified by the Ministry of Corporate Affairs.
The advantages are:
 i. Accounting practice is standardized and hence comparison of
accounts of different companies is possible.
ii. Window dressing manipulation is not possible.
21.
Basis of
Debtors Creditors
Difference

Persons or organizations that are Persons or organizations to whom

(i) Meaning liable to pay money to a firm are the firm is liable to pay money are
called debtors. called creditors.

They have debit balance in the They have a credit balance in the
(ii) Nature
firm’s books. firm’s books.

Amount due is received from

(iii) Settlement Payments are made to them.
them.

They are shown as assets in the They are shown as liabilities in the
(iv) Treatment Balance Sheet under Current Balance Sheet under Current
Assets. Liabilities.
22. Books of Ravinder Associates
Trial Balance
as on March 31, 2017
Name of Accounts L.F. Dr. (₹) Cr. (₹)

Sundry Debtors 4,10,000

Sundry Creditors 80,000

Rent & Taxes 48,000

Purchases 34,00,000

Sales 56,00,000

Trade Expenses 12,000

Return Outwards 80,000

Return Inwards 1,20,000

Expenses 4,000

Motor Vehicles 6,50,000

Electricity 25,000

Opening Stock (on April 01, 2004) 2,30,000

 Premises 12,00,000

Fixture & Fittings 3,10,000

Bad Debts written off 8,000

Loan from Mukul 1,50,000

Interest on Mukul’s Loan 15,000

Drawings 40,000

Cash in Hand 75,000

Rent received from Sub-let of part of Premises 30,000

Capital (Balancing Figure) 6,07,000

Total 65,47,000 65,47,000

23. Note: Closing Stock of Rs 3,80,000 will not appear in Trial
Balance, it will be shown after trial balance.
Balance remains in trial balance is recorded as capital according to
question.
24. Cash Book
Dr. Cr.

Cash Bank Cash Bank

Date Particulars L.F. Date Particulars L.F.
(₹) (₹) (₹) (₹)

2020 2020

Jan. To Balance Jan. By Balance

2,300 12,000
1 b/d 1 b/d

To Cheques-
8 4,000 12 By Bank A/c C 200
in-Hand A/c

12 To Cash A/c C 200 16 By Cash A/c C 300

To Gopal’s By Bank
15 500 18 20
A/c Charges A/c

By Interest
16 To Bank A/c C 300 20 1,000
on O/D

To Balance By Balance
31 9,120 31 2,900
c/d c/d

3,100 13,320 3,100 13,320

Feb. To Balance Feb. By Balance
2,900 9,120
1 b/d 1 b/d
25. Journal Entry
Date Particulars L.F. Debit (₹) Credit (₹)

2017

Feb 8 Cheques-in-hand A/c Dr. 4,000

Discount allowed A/c Dr. 200

To Ram’s A/c
4,200
(Being cheque received from Ram)
26. Bank Reconciliation Statement
as on 31st December 2013
Particulars Amount (₹)

Bank Overdraft Balance as per Cash Book 63,400

Add: Interest debited in Pass Book but not yet entered in Cash Book 1,600

Add: Bank charges debited in Pass Book but not yet entered in Cash Book 300

Add: Cheques paid in bank but not yet credited by bank 21,700

87,000

Less: Cheques issued but not yet presented in bank 11,680

75,320

Less: Interest collected and credited by bank but not entered in Cash Book 12,000

Bank Overdraft Balance as per Pass Book 63,320

27. OR

28. BANK RECONCILIATION STATEMENT

as on March 31, 2018
Particulars (+) (-)

Unfavourable balance as per Pass Book (Dr.) 10,700

Cheques not yet presented 900

Cheques but not yet collected 2,200

Interest on Investment 5,000

Cheques dishonoured 800

Interest on overdraft debited by bank 1,200

Bank charges debited by bank 50

Unfavourable balance as per Cash Book (Cr.) (Balancing figure) 12,350

16,600 16,600
29. Journal Entries
Amount Amount
Date Particulars L.F.
Dr (Rs) Cr. (Rs)

Suman’s A/c Dr. 10,000

Bank Charges A/c Dr. 100

(i) To Bank Account 10,100

(Being the bank draft of Rs 10,000 issued to

Suman, bank charges Rs 100 from the bank
Account )

Ranjan’s A/c Dr. 10,000

To Bank A/c 10,000

(ii)
(Being the cheque Rs 10,000 already received
from Ranjan now made dishonoured )

Purchases A/c Dr. 30,000

To Cash A/c (30,000 – 600) 29,400

(iii) To Discount Received A/c

600
(30,000 ×× 21002100)

(Being the purchase of goods of Rs 30,000;

received cash discount @ 2% from supplier )

Cash A/c (30,000 – 900) Dr. 29,100

Discount Allowed A/c

Dr. 900
(30,000 ×× 31003100)
(iv)
To Sales A/c 30,000

(Being the sale of goods of Rs 30,000 allowed

cash discount @ 3%)
 Loss by Fire A/c Dr. 15,000

To Purchases A/c 15,000

(v)
(Being the goods costing Rs 15,000 lost in the
fire)

Rent A/c (10,000 ×× 3434) Dr. 7,500

Drawings A/c(10,000 ×× 1414) Dr. 2,500

(vi)
To Bank A/c 10,000

(Being the rent paid and 1414th of the

premises used for residence of owner)

Machinery A/c (New Machine) Dr. 2,00,000

To Advance for Machinery A/c 20,000

To Machinery A/c (old machinery) 10,000

(vii) To Bank A/c (Balancing Figure) 1,70,000

(Being the machinery (cost Rs 2,00,000)

recorded in books by adjusting advance given
to supplier (Rs 20,000) and old machine (Rs
10,000 cost) and balance by payment made
by cheque)

Computer A/c Dr. 20,000

To Purchases A/c 20,000

(viii)
(Being a computer out of stock of Rs 20,000
are used for office purposes for the company)

Drawings A/c Dr. 15,000

To Purchases A/c 15,000

(ix)
(Being the computer (stock) costing Rs
15,000 are taken for domestic use of owner
recorded in the books)

(x) Salaries A/c Dr. 40,000

Rent A/c Dr. 15,000

To Salary Outstanding A/c 40,000

 To Rent Outstanding A/c 15,000

(Being the salaries (Rs 40,000) and rent (Rs

15,000) are outstanding now recorded in the
books )
30. OR

31. Journal of Hema

Debit Credit
Date Particulars L.F.
(₹) (₹)

2017

Dec. 01 Cash A/c Dr. 1,00,000

To Capital A/c 1,00,000

(Started business with cash)

Dec. 02 Bank A/c Dr. 30,000

To Cash A/c 30,000

(Bank account opened with SBI)

Dec. 04 Purchases A/c Dr. 20,000

To Ashu 20,000

(Goods purchased from Ashu)

Dec. 06 Cash A/c Dr. 15,000

To Sales A/c 15,000

(Goods sold for cash)

Dec. 10 Purchases A/c Dr. 40,000

To Cash A/c 40,000

(Goods purchased for cash)

Dec. 13 Suman Dr. 20,000

To Sales A/c 20,000

(Goods goods to Suman)

Dec. 16 Bank A/c Dr. 19,500

Discount Allowed A/c Dr. 500

To Suman 20,000

(Cheque received from Suman and

discount allowed)

Dec. 20 Ashu Dr. 10,000

To Bank A/c 10,000

(Cheque forwarded to Ashu)

Dec.b22 Rent A/c Dr. 2,000

To Bank A/c 2,000

(Rent paid by cheque)

Dec.b23 Bank A/c Dr. 16,000

To Cash A/c 16,000

(Cash deposited into bank)

Dec. 25 Machinery A/c Dr. 10,000

To Parigya 10,000

(Machinery purchased from Parigya)

Dec. 26 Trade Expenses A/c Dr. 2,000

To Cash A/c 2,000

(Trade expenses paid)

Dec. 28 Parigya Dr. 10,000

To Bank A/c 10,000

(Cheque issued to Parigya)

Dec. 29 Telephone Expenses A/c Dr. 1,200

To Bank A/c 1,200

(Telephone expenses paid through cheque)

Dec. 30 Salaries A/c Dr. 4,500

To Cash A/c 4,500

(Salary paid)

Total 3,00,700 3,00,700

32. In the Books of Rahul
Journal Entries
Debit Credit
Date Particulars L.F. Amount Amount
(Rs) (Rs)

(i) Machinery Account Dr. 600

To Wages Account 600

(Being wages paid for the installation of

machinery wrongly debited to wages
account, now entry is rectified)

(ii) Repairs Account Dr. 400

To Machinery Account 400

(Being Repairs paid wrongly debited to

Machinery account now entry is rectified)

(iii) Machinery Account Dr. 1,000

To Repairs Account 1,000

(Being Repairs for overhauling of second-

hand machinery purchased, wrongly
debited to Repairs account, now entry is
rectified)

(iv) Building Account Dr. 10,000

To Purchases Account 8,000

To Wages Account 2,000

(Being material and wages used for the

construction of the building, not debited to
building accounts, now entry is rectified)

(v) Furniture Account Dr. 5,000

 To Purchases Account 500

To Suspense Account 4,500

(Being Furniture purchased for Rs 5,000

wrongly debited to purchases account as
Rs 500, now entry is rectified)

(vi) Sales Account Dr. 2,000

To Machinery Account 2,000

(Being Sale of Machinery wrongly

recorded in the sales book, now entry is
rectified)

(vii) Sales Return Account Dr. 3,000

To Suspense Account 3,000

(Being total of Sales Returns Book not

posted to the ledger, now entry is
rectified)
33. Suspense Account
Amount Amount
Date Particulars L.F. Date Particulars L.F.
(Rs) (Rs)

To Difference as By Furniture
7,500 4,500
per Trial Balance A/c

By Sales
3,000
Returns A/c

7,500 7,500
34. OR

35. Rectifying Entries

S. Cr.
Particulars L.F. Dr.(Rs.)
No. (Rs.)

1. Suspense A/c Dr. 283

To Discount Received A/c 283

(Being Discount received Rs.283, not posted in

the books, now corrected.)

2. Supplier A/c Dr. 6930

S. Cr.
Particulars L.F. Dr.(Rs.)
No. (Rs.)

To Suspense A/c 6930

(Being brought goods for Rs.770, wrongly posted

to supplier a/c as Rs.7700, now rectified.)

3. Debtors A/c Dr. 6,000

To Suspense A/c 6,000

(Being owing by a customer, not included in the

list of Sundry Debtors, now rectified.)

4. Suspense A/c Dr. 4,052

To Customer A/c 4,052

(Being goods of Rs.2,026 returned by customer,

wrongly debited to customer a/c now corrected.)
36. Suspense A/c
Particulars Rs. Particulars Rs.

To Balance b/d 8,595 By Supplier 6,930

To Discount Received 283 By Debtors 6,000

To Customer 4,052

12,930 12,930
37. MACHINERY ACCOUNT
Dr. Cr.

Date Particulars ₹ Date Particulars ₹

2016 2017

April March
To Bank A/c (Mach. I) 3,00,000 By Balance c/d 4,50,000
1 31

To Bank A/c (Mach.

Oct. 1 1,50,000
II)

4,50,000 4,50,000

2017 2017

April To Balance b/d 4,50,000 Oct. 1 By Bank A/c (Mach. I) 1,35,000

1 (Sale)

By Provision for
Oct. 1 45,000
Depreciation A/c

By Loss on Sale of
Machinery A/c
Oct. 1 1,20,000
(Profit and Loss A/c)
(WN 3)

2018

March
By Balance c/d 1,50,000
31

4,50,000 4,50,000

2018 2018

April By Bank A/c (Mach.

To Balance b/d 1,50,000 Oct. 1 1,27,500
1 II) (Sale)

To Bank A/c (Mach. By Provision for

Oct. 1 3,75,000 Oct. 1 30,000
III) (Sale) Depreciation A/c

2019

To Gain on Sale of
Machinery A/c March
Oct. 1 7,500 By Balance c/d 3,75,000
(Profit and Loss A/c) 31
(WN 3)

5,32,500 5,32,500
38. PROVISION FOR DEPRECIATION ACCOUNT
Dr. Cr.

Date Particulars ₹ Date Particulars ₹

2017 2017

March March
To Balance c/d 37,500 By Depreciation A/c 37,500
31 31

2017 2017

To machinery A/c
Oct. 1 45,000 April 1 By Balance b/d 37,500
(Mach. I)

(₹ 30,000 + ₹ 15,000) Oct. 1 By Depreciation A/c 15,000

 (Mach. I)

2018 2018

March March
To Balance c/d 22,500 By Depreciation A/c 15,000
31 31

67,500 67,500

2018 2018

To Machinery A/c
Oct. 1 30,000 April 1 By Balance b/d 22,500
(Mach.II)

(₹ 7,500 + ₹ 15,000 By Depreciation A/c

Oct. 1 7,500
+ ₹ 7,500) (Mach. II)

2019 2019

March March
To Balance c/d 18,750 By Depreciation A/c 18,750
31 31

48,750 48,750

2019

April 1 By Balance b/d 18,750

39. DEPRECIATION ACCOUNT
Dr. Cr.

Date Particulars ₹ Date Particulars ₹

2017 2017

March To Provision for March By Profit and Loss

37,500 37,500
31 Depreciation A/c 31 A/c

2017 2018

To Provision for March By Profit and Loss

Oct. 1 15,000 30,000
Depreciation A/c 31 A/c

2018

March To Provision for

15,000
31 Depreciation A/c

30,000 30,000

2018 2019
 To Provision for March By Profit and Loss
Oct. 1 7,500 26,250
Depreciation A/c 31 A/c

2019

March To Provision for

18,750
31 Depreciation A/c

26,750 26,750
40. Working Notes:
i.
Calculation of Accumulated Depreciation on Machine I: ₹

Depreciation for 2016 – 17 30,000

Depreciation for 2017 – 18 (Sold on 1st October, 2018) 15,000

Accumulated Depreciation 45,000

ii.
Calculation of Depreciation on Machine II: ₹

Depreciation for 2016 – 17 (Purchased on 1st October, 2016) 7,500

Depreciation for 2017 – 18 15,000

Depreciation for 2018 – 19 (Sold on 1st October, 2018) 7,500

Accumulated Depreciation 30,000

iii.
Calculation of Gain/(Loss) on Sale of Machine I: Machine I ₹ Machine II ₹

Cost of Machinery 3,00,000 1,50,000

Less: Accumulated Depreciation (till the date of sale) 45,000 30,000

Book Value on Date of Sale (A) 2,55,000 1,20,000

Sales Proceeds (B) 1,35,000 1,27,500

Gain/(Loss) on sale (B – A) 1,20,000 7,500

iv. Depreciation under the straight-line method is calculated on
original cost of asset after reducing salvage value. Each year
same amount of depreciation is charged. When provision for
depreciation account is prepared depreciation is charged through
provision for depreciation account and not asset account.
OR
 Machinery Account
Dr. Cr.

Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)

2014 By Machinery
To Balance 2014
April 25,00,000 Disposal 5,00,000
b/d Oct. 1
1 Account

2015
March By Balance c/d 20,00,000
31

25,00,000 25,00,000

2015 2016
To Balance
April 20,00,000 March By Balance c/d 20,00,000
b/d
1 31

20,00,000 20,00,000
Provision for Depreciation Account
Dr. Cr.

Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)

To
2013 Machinery
2014 April By Balance
March Disposal 2,12,000 5,80,000
1 b/d
31 Account
(WN1)

By
Depreciation
2014 Oct. 1 32,000
Account (WN
1)

By
2015
To Balance 2015 March Depreciation
March 7,20,000 3,20,000
b/d 31 Account (WN
1
2)

9,32,000 9,32,000

2016 April By Balance

7,20,000
1 b/d
Machinery Disposal Account
Dr. Cr.

Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)

To Machinery By Bank
2014 2014
Disposal 5,00,000 Account (Sale 3,00,000
Oct. 1 Oct. 1
Account of machinery)

To Profit & Loss

By Provision
2014 Account (Gain 2014
12,000 for Depreciation 2,12,000
Oct. 1 on sale of Oct. 1
Account
machinery)

5,12,000 5,12,000
Working Note:
Amount
S.No. Particular
(Rs)

1. Depreciation Provided on Machinery sold till 31st Oct. 2014:

For 2012-2013 (5,00,000 ×× 2010020100) 1,00,000

For 2013-2014 (400000 ×× 2010020100) 80,000

For 2014-2015 (320000 ×× 2010020100 ×× 612612) 32,000

Total Depreciation on Machinery sold 2,12,000

2. Calculation of Depreciation on machinery provided for 2014-15:

Balance of provision for Depreciation on 1st April 2014 5,80,000

Add: Depreciation Provided on Sold Machinery 32,000

6,12,000

Less: Accumulated Depreciation on Machinery sold (WN 1) 2,12,000

Depreciation on the Remaining Machinery 4,00,000

Cost of Remaining Machinery 20,00,000

Less: Depreciation on Remaining Machinery 4,00,000

WDV of Remaining Machinery 16,00,000

Depreciation on machinery provided during 2014 – 15:

16,00,000 ×× 2010020100 = Rs 3,20,000
 41. Class 11 Accountancy Sample Paper Part B
Solution
42. (b) Operating cycle
Explanation: it included all the steps from purchasing the raw
material and converting it in to finished goods and then selling it.
OR

(a) Marshalling
Explanation: marshalling refers to the arrangement of assets and
liabilities in particular order. it can be done in two ways- on the
basis of permanence and on the basis of liquidity.

43. (a) Profit and Loss A/c

Explanation: Loss on sale of the car will be transferred to Profit
and Loss A/c.
44. (b) Trading Account and Balance Sheet
Explanation: Closing stock will be shown in the Trading Account
and Balance Sheet if given outside the Trial balance.
OR

(c) Rs.340
Explanation: Amount of Provision for doubtful debts = 10% of
3,400 = 340

45.
Capital Receipts Revenue Receipts

Amount received from the sale of fixed assets or Money obtained from the
investments i.e., non-current assets. sale of goods or services.

Capital contributed by proprietors, partners or money Commission and fees

obtained from the issue of shares and debentures in case of received for services
the company. rendered.
46. Trading Account
for the year ended 31st March, 2017
Dr. Cr.

Amount Amount
Particulars Particulars
(₹) (₹)

To Adjusted Purchases 15,00,000 By Sales 21,40,000

Less: Return
To Freight and Packing 15,000 40,000 21,00,000
Inwards

To Factory Expenses 60,000

 To Gross Profit (Balancing
5,25,000
Figure)

21,00,000 21,00,000
47. Working Notes:
Calculation of Adjusted Purchases = Opening Stock + Net Purchases
– Closing Stock
Point of Knowledge:
Closing stock is not showing separately in the trading account as it
is already subtracted in adjusted purchases.
Packing Expenses on Sales’ and ‘Depreciation’ are indirect expenses
and hence not debited to the Trading A/c.
48. For recording business transactions, the convention of
conservatism is followed which states that provision should be made
for expected profit and gains should not be accounted for. As it is
not possible to accurately know the amount of bad debts. Therefore,
in order to bring an element of certainty in the amount of bad debts
from debtors a provision for doubtful debts is created to cover the
loss of possible bad debts. A firm must be convinced with the
amount of net debtors which it is going to realize by the end of the
financial year and for this purpose, provision for doubtful debts
certainly provides a helping hand.
49. JOURNAL OF SHAMIT
Date Particulars L.F. Dr.(₹) Cr.(₹)

2019

March
Trading A/c 3,02,000
31

To Stock A/c 20,000

To Purchases A/c 1,50,000

To Wages A/c 1,00,000

To Power and Fuel A/c 30,000

To Factory Lighting A/c

(Bein the direct expenses debited to Trading 2,000
Account)

March
Sales A/c 5,00,000
31

To Trading A/c
(Bein the amount of Sales transferred to the credit 5,00,000
of the Trading Account)
 March
Stock (Closing) A/c 27,000
31

To Trading A/c 27,000

(Being the value of stock on hand on 31 st March,

2019)

March
Trading A/c 2,25,000
31

To Profit and Loss A/c

2,25,000
(Being the transfer of gross profit)

March
Profit and Loss A/c 1,65,000
31

To Discount Allowed A/c 5,000

To Salaries A/c 70,000

To Advertising A/c 50,000

To Sundry Office Expenses A/c

(Being the various indirect expenses accounts
40,000
transferred to the debit of the Profit and Loss
Account)

March
Discount Received A/c 3,000
31

To Profit and Loss A/c

(Being the credit balance of discount received 3,000
transferred to the profit and Loss Account)

March
Profit and Loss A/c 63,000
31

To Capital A/c
(Being the transfer of Net Proft to the Capital 63,000
Account)
50. TRADING ACCOUNT OF SHAMIT for the year ended 31st
March, 2019
Dr. Cr.

Particulars ₹ Particulars ₹

To Stock 20,000 By Sales 5,00,000

To Purchases 1,50,000 By Closing Stock 27,000

To Wages 1,00,000

To Power and Fuel 30,000

To Factory Lighting 2,000

To Gross Profit c/d 2,25,000

(Transferred to Profit and Loss A/c)

5,27,000 5,27,000
51. PROFIT AND LOSS ACCOUNT OF SHAMIT
for the year ended 31st March, 2019
Dr. Cr.

Particulars ₹ Particulars ₹

To Salaries 70,000 By Gross Profit 2,25,000

To Discount Allowed 5,000 By Discount Received 3,000

To Advertising 50,000

To Sundry Office Expenses 40,000

To Net Profit 63,000

(Transferred to Capital A/c)

2,28,000 2,28,000
52. OR

53. Trading & Profit and Loss A/c

Amount Amount
Particulars Particulars
(Rs) (Rs)

To Opening Stock 5,000 By Sales 17,000

To Purchase 10,000 By Closing Stock 10,000

To Wages 3,000

To Gross Profit c/d 9,000

27,000 27,000
======= ======
 Amount Amount
Particulars Particulars
(Rs) (Rs)

To Interest 200 By Gross Profit b/d 9,000

To Office Expense 2,500 By Interest 600

To Salaries 2,000

To Rent, rates and taxes 800

To Depreciation 1,000

To Repairs 300

To Bad Debts 500

To Net Profit 2,300

9,600 9,600
====== ======
54. Balance Sheet
Amount Amount
Liabilities Assets
(Rs) (Rs)

Capital 25,000 Debtors 1,500

Add Net Profit 2,300 Stock 10,000

Less Drawings 2,000 25,300 Plant & Machinery 5,700

Furniture & Fixture 1,500

Creditors 7,000 Bills Receivables 2,000

Bills Payable 400 Land & Building 10,000

Cash 1,600

Bank 400

32,700 32,700
======= ======
55. In order to arrive at the balance sheet of a business, one
needs to prepare the trading account and profit and loss account
first. This account is prepared to arrive at the figure of revenue
earned or loss incurred during a period.
 56. Trading Account of Mr. Alok
for the year ended March 31, 2019
Dr. Cr.

Amount Amount
Particulars Particulars
(₹) (₹)

To Opening Stock 44,840 By Sales 1,78,215

Less: Return
To Purchases 1,28,295 2,390 1,75,825
Inwards

By Closing
To Wages 20,485 64,480
Stock

Less: Erection Charges of

600 19,885
New Machinery

To Gross Profit (Balancing

47,285
Figure)

2,40,305 2,40,305
57. Profit and Loss Account of Mr. Alok
for the year ended March 31, 2019
Dr. Cr.

Amount Amount
Particulars Particulars
(₹) (₹)

To Depreciation: By Gross Profit 47,285

Machinery 750 By Commission 2,820

Less: Comm. Received

Furniture 448 1,198 300 2,520
in advance

To Old Bad Debts 1,810

Add: Further Bad Debts 500

Add: New Provision 1,450 3,760

To Rent 2,810

To Interest on Loan 500

Add: Outstanding 300 800

To Salaries 5,500
 To Travelling Expenses 945

To Insurance 200

To Repairs 1,685

To Discount Allowed 2,435

To Net Profit
30,472
(Balancing Figure)

49,805 49,805
58. Balance Sheet of Mr. Alok
as at March 31, 2019
Amount Amount
Liabilities Assets
(₹) (₹)

Capital 59,700 Fixed Assets

Add: Net Profit 30,472 Machinery 14,400

Less: Drawings 5,275 84,897 Add: Erection charges 600

8% Loan 10,000 Less: Depreciation 750 14,250

Current Liabilities Furniture 4,480

Creditors 29,815 Less: Depreciation 448 4,032

Outstanding Interest 300 Current Assets

Commission received in
300 Closing Stock 64,480
advance

Bills receivables 4,750

Debtors 30,000

Less: Bad Debts 500

Less: Pro. for

1,450 28,050
Doubtful Debts

Cash in Hand 9,750

1,25,312 1,25,312
59. Working Note:-
Calculation of Depreciation:-
Depreciation of Machinery = ₹14,400 + ₹600 ×× 5% = ₹ 750
 Calculation of Provision for Doubtful debts:-
Provision for doubtful debts = Sundry Debtors – Further Bad debts –
Amount recovered ×× Rate
Provision for doubtful debts = (₹30,000 – ₹500 – ₹500) ×× 5%
Provision for doubtful debts = ₹1,450
When adjustments are given in trial balance all the adjustments will
be taken in the balance sheet only. Adjustments that are given after
trial balance will be shown both in trading and profit and loss
account and balance sheet.
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60. OR

61. The Trading and Profit and Loss account & Balance Sheet of
MMN will be prepared in the following manner :

62. Trading and Profit and loss Account

for the year ended 31st December, 2013
Dr Cr

Particulars Amt(Rs) Particulars Amt(Rs)

To Opening Stock 26,420 By Sales 91,230

To purchases 42,160 Less : Sales Return (1,760) 89,470

Less : Purchases Return (8,460) 33,700 By Closing Stock 29,390

To Wages 21,470

To Carriage Inwards 4,370

To Coal, Gas and

720
Water

To Gross Profit
transferred to Profit & 32,180
Loss A/c

1,18,860 1,18,860

To Salaries 4,670 By Gross Profit b/d 32,180

To Bank Charges 140 By Discount 120

To Rates and Taxes 840 By Apprentice 500

 Premium(note 1)

(-)Unexpired
(-)Prepaid rates & taxes (240) 600 (400) 100
Premium

By Old Provision for

To Trade Expenses 1,990 2,470
Doubtful Debts

To Fire Insurance 490

(-)Prepaid insurance (125) 365

To Provision for
Doubtful Debts

To Depreciation on

Land and Building 625

Plant and Machinery 1,427

Furniture and fixtures 125 2,177

To Net Profit
Transferred to Capital 23,038
A/c

34,870 34,870
63. Balance Sheet
as at 31st December,2013
Liabilities Amt(Rs) Assets Amt(Rs)

Sundry Creditors 12,170 Land and Building 25,000

Apprentice Premium
400 (-)Depreciation (625) 24,375
Received in Advance

Plant and
Capital 90,000 14,270
Machinery

(+)Net Profit 23,038 (-)Depreciation (1,427) 12,843

Furniture and
1,13,038 1,250
Fixtures

(-)Drawings 6,480 1,06,558 (-)Depreciation (125) 1,125

Opening Balance 10,000 Debtors 37,800

(-)Drawings 4,452 (-)Provision for (1,890) 25,910

 Doubtful Debts

5,548 Bills Receivable 1,270

(+)Net Profit
gtransferred from Profit 37,666 43,214 Closing Stock 29,390
& Loss A/c

Cash at Bank 13,000

Cash in Hand 850

Prepaid fire
125
insurance

Prepaid Rates and

240
Taxes

1,19,128 1,19,128
64. Note :
1. Apprenticeship premium is a revenue income of the business.
Unearned premium means, premium received in advance. Thus, it
has been deducted from the income received. The amount of
unearned premium will be shown in the liability side of Balance
sheet.