ACCOUNTANCY SAMPLE PAPER

M.M = 80
Time: 3 Hours
General Instructions:

• All questions are compulsory.

• Q1 to Q20 are of one marks each.
• Q20 to Q26 are of three marks each.
• Q27 to Q29 are of four marks each.
• Q30 to Q34 are of six marks each.

1. Which of the following is not the user of accounting information:

a) Long Term Creditors c) Debtor
b) Public d) Government
2. Name the branch of Commerce, which keeps a record of monetary transactions in a set of books.
3. Omission of paise and showing the round figure in financial statements is based on …………… concept.
4. Due to which concept, Contingent liabilities are shown in the Balance Sheet?
5. Name the accounting concept under which it becomes necessary for business concerns to take their
unsold stock at the end of the year to the next year.
6. Define Merchandise.
7. Goodwill, patents and trade marks are Fictitious Assets. State True and False.
8. Does Cash Basis of Accounting violates GAAP? Give reason for your answer.
9. Machinery account is neither a …………. Account nor a …………. Account.
10. Paid to Rahul on behalf of Sanjay Rs. 12,000 will be debited to ………..
a) Rahul’s personal A/c c) Drawings A/c
b) Sanjay’s A/c d) Cash A/c
11. GST collected is a/an …………….
a) Liability c) Expense
b) Asset d) Income
12. Cash book is a type of ______ book but can be treated as ______ book.
13. The credit balance payable of a personal account is ………….
14. Debit balance of a real account shows –
a) Income c) Asset
b) Expenditure d) Liability
15. Bank balance as per Pass Book is Rs. 16,400. Dividend of Rs. 1,200 collected by bank but entered in
the Cash Book as Rs 120. Bank balance as per Cash Book is Rs. …………..
a) 240 c) 120
b) 250 d) 220
16. The arrangement is made for meeting future uncertainties:
a) Provision c) Both (a) and (b)
b) Reserves d) Investments

17. Calculate Gross Profit – If Net Sales Rs. 12,00,000 and GP is 33 ⅓% on Sales.
18. Trial balance contains the following information:
15% Bank Loan Rs. 40,000
Interest paid Rs. 4,500
Interest debited to Profit and Loss A/c will be ……….
a) Rs 6000 b) Rs 3000 c) Rs 4500 d) Rs 1500
19. Following particulars are given in Trial Balance:
• Purchases Rs 1,10,000
• Sales Rs 2,00,000
• Wages Rs. 30,000
• Closing stock was Rs. 8000 more than Opening stock
• Two-third of the wages was charged t the COGS in Trading Account.

Gross profit is …………

20. Closing Stock given inside the Trial balance is shown only in…………….

21. On 31st March, 2020 the Pass Book shows a credit balance of ₹9,000. Prepare a Bank Reconciliation
Statement from the following particulars- Rs.
a) Cheques issued but not yet presented for payment. 7,000
b) Cheques issued but omitted to be recorded in the Cash Book. 3,800
c) Cheques paid into bank but not yet collected by the bank. 2,600
d) Premium on Life Policy paid by the bank on standing advice. 360
e) Payments received from customers direct by the bank. 2,000

22. Rectify the following Errors:

a) The total of Sales return day book was over casted by Rs. 1,000.
b) Salaries paid to an employee Rs. 2,000 were debited to his personal account as Rs. 1,200.
c) Credit purchases from S & Co. for Rs. 6,000 were recorded in the sales book . However S &
Co. was correctly credited.

23. Prepare Correct Trial Balance as the following Trial Balance is not correct.
Particulars Debit Credit
COGS 1,50,000
Capital 90,000
Sales 2,00,000
Expenses 20,000
Opening stock 60,000
Fixed assets 50,000
Creditors 30,000
Debtors 60,000
Closing Stock 40,000
TOTAL 3,50,000 3,50,000
24. X Ltd purchased machinery for Rs. 40,000 on 1st October,2019. Depreciation is provided @10% on
WDV method. On 1st January 2022, one-fourth of the machinery was found unsuitable and disposed
off for Rs. 6,000. On the same date a new machinery was purchased at a cost of Rs. 15,000. Write up
the Machinery Account for 3 years. The accounts are closed on 31 st March every year.

25. In a burglary at the godown of Harshit Traders on the night of 14th July, 2022, part of the stock was
stolen. From the following particulars, find out the estimated value of loss of stock by theft:
Stock on 1st April, 2022 ₹ 60,000
Purchases from 1st April to 14th July, 2022 ₹ 4,10,000
Sales from 1st April to 14th July, 2022 ₹ 6,00,000
Stock remaining after burglary ₹ 12,000
The normal rate of gross profit for his business is 30% of selling price.

26. Answer both (a) and (b).

a) Calculate Adjusted Purchases if:
• Cash Purchases Rs 50,000
• Credit Purchases Rs. 47,000
• Return Inward Rs. 13,000
• Closing stock is Rs. 8,000 more than Opening Stock
b) If sales are Rs. 1,00,000 and Gross Profit is Rs. 20,000 then Calculate the percentage of Gross
profit on Cost of goods sold.

27. Extract of a Trial Balance as at March 31, 2022 is as follows –

Sundry Debtors ₹ 1,02,000
Bad Debts ₹ 1,400
Provision for doubtful debts ₹3,400
Additional information: A debtor of ₹2,000 could not be recovered. It is decided to maintain
Provision for Doubtful Debtors @ 5% on Debtors and Provision for Discount at @ 2%.
How these adjustments will be shown in Financial Statements?

28. Vikas is keeping his accounts according to Single Entry System. His capital on 31st December, 2015
was Rs. 2,50,000 and his capital on 31st December, 2016 was Rs. 4,25,000. He further informs you that
during the year he gave a loan of Rs 30,000 to his brother on private account and withdrew Rs 1,000
per month for personal purposes. He used a flat for his personal purpose, the rent of which @
Rs 1,800 per month and electricity charges at an average of 10% of rent per month were paid from the
business account. During the year he sold his 7% Government Bonds of Rs 50,000 at 1% premium and
brought that money into the business. Prepare a Statement of Profit or Loss for the year ended 31st
December, 2016.

29. (a) Calculate total equity if:

• Owner’s equity in the beginning Rs. 2,00,000.
• Equity of creditors at the end Rs. 60,000.
• Revenue during the period is Rs. 1,20,000.
 • Expenses during the same period are Rs. 70,000.

(b) Prepare accounting equations on the basis of the following transactions:

• Narayan started business with cash ₹ 78,000 and goods ₹ 30,000

• Purchased goods on credit ₹ 45,000
• Sold 1/3rd of goods at 20% profit for cash

30. A Company, which closes its books on 31st March every year, purchased on 1st July, 2010, machinery
costing ₹ 30,000. It purchased further machinery on 1st January, 2011, costing ₹ 20,000 and on 1st
October, 2011, costing ₹ 10,000. On 1st April, 2012, one-third of the machinery installed on 1st July,
2010, became obsolete and was sold for ₹ 3,000. Show how the machinery account would appear in
the books of the Company, it being given that machinery was depreciated by Diminishing Balance
Method at 10% per annum. What would be the balance of Machinery Account on 1st April, 2013?

31. From the following particulars, prepare a suitable Cash Book.

2018 RS
1 Nov Cash in hand 16,000.
Bank Balance with Axis Bank (AB) 18,000.
Overdraft with Bank of India (BOI) 15,400.
3 Nov Cash sales 8,200.
6 Nov Purchased machinery Rs 10,000 made payment by cheque on Axis bank.
11 Nov Cash deposited in Bank of India 9,000.
15 Nov Cheque received from Bunny, deposited in Axis Bank 5,400.
21 Nov Amount transferred from Axis Bank to Bank of India 2,000.
25 Nov Cash withdrew for personal use from Axis Bank 1,800.

32. Journalize the following transactions:

a) Bought goods from Nanak Bros. for ₹ 4,00,000 at 10% trade discount and 3% cash discount on the
purchase price. 25% of the amount paid at the time of purchase. Charge CGST and SGST @ 9%
each.
b) Purchased a Horse for office use of Rs. 1,00,000. Payment was made by cheque.
c) Sold goods to Kumar & Sons. for ₹ 2,00,000 at 20% trade discount and 5% cash discount on sale
price. 60% of the amount received by Cheque. Charge CGST and SGST @ 9% each.
d) Sold 20 Shares of Rs. 90, Brokerage paid Rs. 5 on each share. Payment was made by cheque.
e) Interest on Bank loan due Rs. 56,000.

33. On January 01, 2011, Satkar Transport Ltd., purchased 3 buses for ₹ 10,00,000 each. On July 01, 2013,
one bus was involved in an accident and was completely destroyed and ₹ 7,00,000 were received from
the Insurance Company in full settlement. Depreciation is written off @15% p.a. on diminishing
balance method. Prepare bus account from 2011 to 2014. Books are closed on December 31 every
year.
34. From the following Trial Balance of Mayank Devgn as at 31st March 2020, prepare Trading and Profit
and Loss account and Balance Sheet:
PARTICULARS DR CR
Stock at commencement 3,750
Purchases and sales 27,250 45,000
Manufacturing wages 2,000
Fuel, power and lighting 3,000
Salaries 2,750
Income Tax 1,375
Loan to Shyama at 10% p.a 1,250
Interest on Shyama’s loan 75
Apprentice premium 1,125
Rent 1,000
Rent owing 150
Furniture (includes furniture of Rs 250 1,250
purchased on 1st Oct 2019)
Bills receivable and Bills payables 1,500 400
Plant and Machinery 18,000
Debtors and Creditors 7,000 3,250
Capital 25,000
Cash 4,875
TOTAL 75,000 75,000
Additional information:
1. Closing stock was valued at Rs 7,500.
2. Goods worth Rs 1,250 were sold and dispatched on 28 March 2020, but no entry was
passed to this effect in sales book.
3. Goods costing Rs 1,750 were purchased and included into stock but no entry was
passed to record the purchases.
4. Create a provision of 2% for discount.
5. Apprentice Premium received on 1st April 2019 was for 3 years.
6. Depreciate furniture by 10% p.a.
7. Salaries for the month of March , 2020 were still outstanding