Account Model Questions

Model Question (NEB)-2078
Subject : Accountancy
Class: XII F.M. : 75
Candidates are required to give their answers in their own words as far as practicable. The figures in the
margin indicate full marks.
Section “A”
(Very short answer questions)
Attempt all questions: [11x1=11]
1. Write any two features of public company.

2. What do you mean by authorized capital?
3. Write any two objectives of financial statement.
4. Describe the concept of process costing.
5. Write the meaning of allocation of overhead.
6. List out any two duties of store keeper.
7. What is time rate wage system?
8. State any two limitations of computer system in accounting.
9. Prepare adjustment entry of prepaid insurance Rs.2,000.
10. From the following information calculate cash flow from operating activities:
Net income Rs.40,000
Increase in current assets Rs.5,000
Non-operating expenses Rs.10,000
Increase in current liabilities Rs.3,000
11. If annual requirement is 1,00,000 units and optimum order size is 20,000 units then find out number of
orders.
Section “B”
(Short Answer questions)
Attempt all questions [8x5=40]
12. A company issued 6,000 shares of Rs.100 each at 5% premium. The money was payable as follows:
On application Rs.30
On allotment Rs.50
On first and final call Rs.25
Applications were received for 10,000 shares. Shares were allotted on pro-rata basis. Excess
application money was utilized towards the money due on allotment. All calls were duly made and
received.
Required: Journal entries for: [1.5+2+1.5=5]
a) Share application b) Share allotment c) Share first and final call
OR
A shareholder holding 250 shares of Rs.100 each issued at 5% discount fails to pay final call money
Rs.35. His shares were forfeited, the company re-issued those forfeited shares @ Rs.110 per share as
fully paid.
Required: Journal entries for: [2+2+1]
a) Share forfeiture b) Share re-issue c) Transfer
13. A)Ayaansh Co. Ltd took over the following assets of Aarab Co. Ltd:
Machinery Rs.2,00,000 Furniture Rs.50,000
Stock Rs.1,00,000
The company paid the purchase consideration by issuing shares of Rs.100 each at 10% discount.
Required: Entries for purchase of assets and payment of purchase consideration [1+1=2]
B) A Co. Ltd issued 200, 8% debentures of Rs.1,000 each at par and redeemable at 10% premium
after 10 years.
Required: Journal entries for issue and redemption of debenture [1+2=3]
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14. The following financial transactions of a company are provided:
Particulars Amt Particulars Amt
(Rs.) (Rs.)
Sales revenue 5,00,000 Advertising expenses 15,000
Opening stock 40,000 Rental income 10,000
Purchases 3,00,000 Commission expenses 4,000
Insurance expenses 15,000 Income tax expenses 12,000
Salary expenses 70,000 Commission income 8,000
Income from rendering service 1,00,000 Repair & maintenance 3,000
Interest on loan 5,000
Additional information:
a) Closing stock Rs.30,000.
b) Salary outstanding Rs.5,000
Required: Profit and Loss statement as per NFRS [5]
15. An unadjusted trial balance of a company is given below:
Particulars Debit (Rs.) Credit (Rs.)
Share capital 1,00,000
Creditors 50,000
Retained earning 40,000
Sales 2,50,000
Machinery 1,00,000
Cash balance 60,000
Salary 35,000
Rent 15,000
Discount 5,000
Purchase 2,35,000
Total 4,45,000 4,45,000
a) Prepaid rent Rs.3,000.
b) Profit transfer to reserve Rs.10,000.
Required: Work sheet [5]
16. Why cost account is important for an industry? [5]

17. A) Differentiate between centralized purchase and decentralized purchase. [2]
B) The following are the store transactions for the month of Jestha:
Jestha 1 Opening stock 200 units @ Rs.3
Jestha 5 Purchases 400 units @ Rs.2.50
Jestha 10 Purchases 300 units @ Rs.2
Total sales during the month of Jestha 750 units
Required: Cost of ending inventory and cost of goods soldusing FIFO method under periodic
inventory system [3]
18. A) The standard output hour is 5 units. The wage rate per unit is Rs.30 and total working hour in a
month is 150 hours.
Required: Total wages for the month under piece rate system [2]
B) The following information are provided:

i) Net profit shown by financial accounting Rs.45,000
ii) Depreciation overcharged in cost accounting by Rs.10,000.
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iii) Undervaluation of opening stock in financial accounting Rs.8,000.
iv) Interest on investment credited in financial accounting Rs.11,000.
Required: Cost reconciliation statement [3]
19. Why computer system is important in accounting? [5]
OR
Describe the features of accounting software [5]
Section “C”
(Long answer questions)
20. The trial balance of Shrestha & Co. is given below:
Shrestha & Co.
Trial Balance
as on 31st Chaitra 2074
Particulars Debit (Rs.) Particulars Credit (Rs.)
Furniture 80,000 Share capital 1,50,000
Rent 30,000 5% debentures 50,000
Salary 55,000 Creditors 25,000
Insurance 12,000 P/L App A/c 30,000
Cash balance 45,000 Interest on investment 5,000
Debtors 75,000 Gross profit 1,40,000
10% investment 1,00,000
Bad debt 1,000
Total 4,00,000 Total 4,00,000
a) Salary to be paid Rs.2,000.
b) Depreciate furniture Rs.5,000
c) Further bad debt Rs.500.
d) Proposed dividend 10%.
Required:
i) Profit and loss account
ii) Profit & loss appropriation account
iii) Balance sheet [4+1+3=8]
OR
Arya Co. Ltd

Trial Balance
as on 30th Chaitra 2076

Opening stock 40,000 Share capital 1,50,000
Salary 32,000 Bank loan 50,000
Purchases 2,50,000 S. Creditors 40,000
Advertisement 14,000 Sales 3,90,000
Bank balance 35,000 Purchase returns 5,000
S. debtors 50,000 Interest received 14,000
Investment 50,000 Commission 2,000
Plant 1,20,000
Interest paid 5,000
Wages 35,000
Insurance 20,000
Total 6,51,000 Total 6,51,000
a) Closing stock Rs.55,000
b) Outstanding wages Rs.2,000.
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c) Depreciate plant by 10%.
d) Prepaid insurance Rs.3,000
e) Income tax @ 25%
Required:
i) Multi step Income statement
ii) Balance sheet [5+3=8]
21. The balance sheet of a company for two years are given below:
Liabilities 2019 2020 Assets 2019 2020
Share capital 2,50,000 3,00,000 Machinery 1,80,000 300,000
Debentures 50,000 80,000 Goodwill 40,000 20,000
Creditors 30,000 65,000 Debtors 70,000 1,20,000
O/s expenses 10,000 5,000 Stock 30,000 50,000
Retained Earning 40,000 60,000 Cash balance 60,000 20,000
Total 3,80,000 5,10,000 Total 3,80,000 5,10,000
a) Sales Rs.5,50,000.
b) cost of goods sold Rs.3,50,000.
c) Operating expenses (including depreciation Rs.30,000) Rs.1,00,000.
d) Interest expenses Rs.10,000.
e) Sale of machinery Rs.40,000; Purchase of machinery Rs.1,85,000.
f) Dividend paid Rs.55,000.
Required: Cash flow statement by using direct method [4+1+2+1]
22. The following cost information were extracted from last month’s record:
Direct materials Rs.2,50,000
Direct wages Rs.1,50,000
Factory overhead Rs.45,000
Administrative overhead Rs.44,500
The following costs were estimated for submitting a tender:
Material cost Rs.1,00,000
Labour cost Rs.60,000
The factory is expected to earn 20% profit on tender price
Required:
a) Cost sheet
b) Tender sheet [3+5]
The End
66
Model Question -1
Subject : Accountancy (2078)
Section 'A'
1. Write any two features of private company.

2. What do you mean by debenture?
3. Write any two importance of financial statement.
4. What is fixed cost?
5. Write the meaning of absorption of overhead.
6. List out any two difference between store ledger and bin card.
7. What is labour cost?
8. State any two importance of computer system in accounting.
9. Prepare adjustment entry of provision for tax Rs.20,000.
Increase in current assets Rs.15,000
Decrease in current liabilities Rs.10,000
Non-operating expenses Rs.18,000
11. If minimum stock level is 3,000 units and re-order quantity is 12,000 units. Calculate average stock level.
Section “B”
12. A company issued 5,000 shares of Rs.100 each at 20% premium. The money was payable as
follows:
On allotment Rs.50
All the shares were fully subscribed and duly paid up except that a shareholder holding 400 shares
failed to pay call money whereas another shareholder of 100 shares paid call money along with
allotment money.
Required: Journal entries for: [1+2+2=5]
a) Share application b) Share allotment c) Share first and final call
OR
A shareholder holding 300 shares of Rs.100 each issued at 10% discount failed to pay allotment and
call money Rs.60 per share. His shares were forfeited, the company re-issued those forfeited shares
@ Rs.80 per share as fully paid.
Required: Journal entries for:

a) Share forfeiture b) Share re-issue c) Transfer. [2+2+1=5]
13. a) Axis Co. Ltd took over the following assets and liability of Zenith Co. Ltd:
Machinery Rs.6,50,000 Creditors Rs.1,50,000
Stock Rs.1,00,000
The company paid the purchase consideration by issuing 6,000 shares of Rs.100 each at 10%
premium.
b) A Co. Ltd issued 500, 7% debentures of Rs.1,000 each at 20% premium and redeemable at 10%
premium after 10 years.
67
(Rs.) (Rs.)
Sales revenue 8,00,000 Opening stock 25,000
Wages 30,000 Purchases 3,45,000
Investment income 50,000 Selling expenses 24,000
Salaries and benefits 85,000 Insurance 12,000
Income tax expenses 70,000 Commission income 8,000
Debenture interest 15,000 Purchase returns 13,000
Interest received 18,000 Depreciation on plant 20,000
b) Wages outstanding Rs.5,000
c) Prepaid salary Rs.10,000.
Required: Profit and Loss statement as per NFRS [5]
Accounts payable 90,000
P/L App account 1,10,000
Sales 2,80,000
Fixed assets 4,00,000
Cash and Bank 1,00,000
Salary 95,000
Prepaid insurance 45,000
Commission 25,000
Purchase 1,65,000
Total 8,05,000 8,05,000
a) Prepaid insurance expired to the extent of Rs.15,000.
b) Proposed dividend 10% on share capital.
16. Explain how cost is classified on the basis of function. [5]

17. a)Write the advantages of centralized purchase. [2]
b) The following are the store transactions for six months:
Jan. 1 Opening stock 900 units @ Rs.3
Mar.8 Purchases 1,400 units @ Rs.5
June.20 Purchases 1,300 units @ Rs.4
Total sales during six months were 2,850 units
Required: Cost of goods available, cost of ending inventory and cost of goods sold using FIFO
method under periodic inventory system [1+1+1]
18. a) The standard working hours in a week is 40 hours and normal rate per hour is Rs.150. A worker
worked with a total of 300 hours in 7 weeks. The overtime rate per hour is 120% of the normal rate.
Required: Total wages of the worker [2]
b) The following information are provided:

i) Net profit shown by cost accounting Rs.15,000
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ii) Opening stock valued in cost account Rs.22,000 and in financial account Rs.28,000.
iii) Works overhead over recovered in cost account Rs.4,000.
iv) Profit on sale of fixed assets recorded in financial accounting Rs.5,000.
19. Write the advantages of computerized accounting system [5]
OR
Explain the use of accounting software [5]
Section “C”
Long answer questions)
20. The trial balance of Shrestha & Co. is given below:

Shrestha & Co.
Trial Balance
Fixed assets 3,00,000 Share capital 2,00,000
Discount & commission 10,000 10% debentures 1,00,000
Salary and benefits 55,000 Creditors 1,25,000
Insurance 19,000 P/L App A/c 90,000
Cash and bank 75,000 Interest on investment 10,000
S. debtors 1,00,000 Gross profit 2,50,000
Legal fee 12,000
Carriage outwards 6,000
Total 7,77,000 Total 7,77,000
a) Prepaid salary Rs.15,000.
b) Depreciate fixed assets @ 10%.
c) Create a provision for doubtful debts @ 5%.
d) Transfer to general reserve Rs.15,000.
Required:
OR
Derby Co. Ltd

Trial Balance

Salary 90,000 12% Bank loan 2,00,000
Purchases 1,50,000 Accounts payable 1,89,000
Insurance 28,000 Sales 3,90,000
Bank balance 55,000 Purchase returns 15,000
Accounts receivable 80,000 Investment income 20,000
Investment 2,00,000 Discount 1,000
Land & building 5,00,000
Wages 30,000
Advertisement 40,000
Total 12,15,000 Total 12,15,000
69
b) Outstanding wages Rs.5,000.
c) Appreciate land and building by 10%.
d) Prepaid salary Rs.10,000
e) Income tax @ 25%
Required:
i) Multi step Income statement
ii) Balance sheet [5+3=8]
21. A Limited Company provides you the following comparative Balance Sheets:
Liabilities 1st year 2nd year Assets 1st year 2nd year
Share capital 4,00,000 5,00,000 Fixed assets 4,00,000 4,80,000
Retained earning 1,80,000 3,25,000 Patent 2,00,000 1,90,000
Debentures 3,00,000 2,00,000 Debtors 60,000 1,00,000
Creditors 50,000 70,000 Prepaid exp. 90,000 80,000
O/s expenses 90,000 1,15,000 Inventory 60,000 1,00,000
Cash and bank 2,10,000 2,60,000
10,20,000 12,10,000 10,20,000 12,10,000
a) Sales for the second year were Rs.5,85,000 and cost of goods sold was
Rs.2,00,000.
b) Operating expenses were Rs.1,38,000 (interest of Rs.18,000)
c) Fixed assets with book value of Rs.1,00,000 was sold for Rs.80,000 and fixed assets purchased
during the year were Rs.1,50,000.
d) Dividend paid during the year Rs.40,000.
e) Debentures redeemed at a premium of Rs.20,000.
f) Tax paid during the year Rs.22,000.
Required: Cash flow statement using direct method [4+1+2+1]
22. The following cost information were extracted from last month’s record for the production of 100
units of a product:
Direct materials Rs.2,00,000
Direct wages Rs.1,00,000
Factory overhead Rs.60,000
Administrative overhead Rs.36,000
The following were considered for submitting a tender for production of 500 units:
a) Material cost per unit remains the same.
b) Labour cost per unit increases by 20%
c) Factory overhead based on prime cost.
d) The factory is expected to earn 20% profit on tender price
Required:
a) Cost sheet
b) Tender sheet [2+6]
****The End****
70
Model Question -2
Section “A”
1. Write any two differences between public company and private company.
2. What do you mean by share capital?
3. Write any two limitations of financial statement.
4. Define cost accounting.
5. Write the meaning of fixed overhead.
6. List out any two advantages of codification and classification of materials.
7. Mention any two advantages of time rate system of wage payment.
8. What is accounting software?
9. Calculate cost of goods sold from the following:
Opening stock – Rs.15,000 Purchases – Rs.1,50,000
Carriage- Rs.5,000 Purchase returns- Rs.3,000
Wages- Rs.20,000
Decrease in current assets Rs.5,000
Depreciation- Rs.10,000
Increase in current liabilities Rs.3,000
Profit on sale of fixed assets- Rs.15,000
11. If annual requirement is 40,000 units, ordering cost per order is Rs.500 and carrying cost per unit is Rs.10
then find out optimum purchase quantity.
Section “B”
12. A company issued 5,000 shares of Rs.100 each at 10% premium. The money was payable as
follows:
On allotment Rs.50
Applications were received for 10,000 shares. Shares were allotted on pro-rata basis. Excess
application money was utilized towards the money due on allotment. All calls were duly made and
received except that a shareholder holding 300 shares failed to pay allotment and call money.
a) Share application b) Share allotment c) Share first and final call [1+2+2=5]
OR
A shareholder holding 200 shares of Rs.100 each issued at 10% premium failed to pay allotment and
call money of Rs.70 per share. Out of it,150 shares were re-issued at Rs.90 per share fully paid
including premium.
Required : Journal entries for:
a) Share forfeiture b) Share re-issue c) Transfer [2+2+1]
13. A)A Co. Ltd took over the following assets of B Co. Ltd with an agreed purchase price of
Rs.4,00,000.
Fixed assets Rs.5,00,000 Inventory Rs.50,000
Current liabilities Rs.2,00,000
The company paid the purchase consideration by issuing shares of Rs.100 each at 20% discount.
71
B) A Co. Ltd issued 800, 6% debentures of Rs.1,000 each at 10% premium and redeemable after 10
years at 10% discount.
(Rs.) (Rs.)
Sales revenue 8,00,000 Promotional expenses 25,000
Opening stock 50,000 Rent received 60,000
Purchases 3,30,000 Commission expenses 14,000
Wages 35,000 Bank charges 3,000
Office expenses 40,000 Commission income 18,000
Income from rendering service 1,00,000 Miscellaneous expenses 6,000
Interest on debenture 15,000 Bad debts 2,000
Carriage 10,000 Depreciation 20,000
b) Outstanding office expenses Rs.5,000
c) Corporate tax 25%
Required : Multi-step income statement [5]
Creditors 90,000
Sales 2,50,000
Fixed assets 2,00,000
Cash at bank 80,000
Administrative expenses 50,000
Rent 40,000
General reserve 25,000
Purchase 1,60,000
Total 4,90,000 4,90,000
a) Depreciate fixed assets @ 10%.
b) Transfer to general reserve Rs.10,000.
16. Explain any three methods of costing. [5]

17. A)Write the importance of material control. [2]
B) The following are the store transactions for the month of June:
June 1 Opening stock 1,200 units @ Rs.2
June14 Purchases 800 units @ Rs.3
June30 Purchases 1,500 units @ Rs.4
Total sales during the month of June2,750 units
Required: Cost of goods available, cost of ending inventory and cost of goods soldusing LIFO
method under periodic inventory system [3]
72
18. A) The standard output hour is 5 units. The wage rate per unit is Rs.30 and total working hour in a
month is 150 hours.
Required: Total wages for the month under piece rate system [2]
B) The following information are provided:

i) Net profit shown by financial accounting Rs.45,000
ii) Depreciation overcharged in cost accounting by Rs.10,000.
iii) Undervaluation of opening stock in financial accounting Rs.8,000.
iv) Interest on investment credited in financial accounting Rs.11,000.
19. Explain the elements of computerized accounting system [5]
OR
Write the advantages of accounting software [5]
Section “C”
20. The trial balance of ABC Co. Ltd. is given below:
ABC Co. Ltd.
Trial Balance
st
Plant (1 Kartik 2077) 1,80,000 Share capital 1,50,000
Rent and rates 20,000 12% bank loan 50,000
Salary 35,000 Creditors 55,000
Prepaid insurance 38,000 P/L App A/c 60,000
Cash balance 25,000 Rent income 25,000
Debtors 60,000 Gross profit 1,90,000
Discount 1,000
Total 5,30,000 Total 5,30,000
a) Prepaid insurance expired to the extent of Rs.18,000.
b) Depreciate plant @10%
c) Create a provision for doubtful debts @ 5% after writing bad debts Rs.2,000.
d) Proposed dividend 10%.
Required:
OR
XYZ Co. Ltd

Trial Balance

Cash and bank 35,000 Share capital 1,15,000
Discount 2,000 10%Bank loan 50,000
Fixed assets 2,00,000 Accounts payable 90,000
Purchases 70,000 Sales 2,30,000
Accounts receivable 75,000 Purchase returns 4,000
Interest on loan 5,000 Interest received 5,000
Salary 20,000 Commission 6,000
73
Prepaid rent 15,000
Investment 50,000
Opening stock 18,000
Total 5,00,000 Total 5,00,000
b) Outstanding salary Rs.6,000.
c) Depreciate fixed assets by 10%.
d) Commission earned but not received Rs.4,000
e) Income tax @ 25%
Required:
i) Profit and loss statement as per NFRS
ii) Statement of financial position as per NFRS [4+4=8]
21. A Limited Company provides you the following comparative Balance sheets:
Liabilities 1st year 2nd year Assets 1st year 2nd year
Retained earning 1,00,000 3,20,000 Goodwill 2,50,000 2,00,000
6% debentures 2,00,000 - Inventory 70,000 1,00,000
Bank loan 60,000 80,000 Debtors 15,000 40,000
O/s expenses 30,000 20,000 Bank 1,80,000 1,90,000
Creditors 10,000 15,000 Prepaid exp. 35,000 5,000
7,00,000 9,35,000 7,00,000 9,35,000
a) Sales for the second year were Rs.6,55,000 and Cost of goods sold was Rs.2,95,000.
b) Operating expenses Rs.1,25,000 (including interest of Rs.5,000)
c) Fixed assets with book value of Rs.30,000 sold at a profit of Rs.10,000 and fixed
assets purchased during the year were Rs.2,40,000.
d) Dividend paid for the year was Rs.30,000 and tax paid during the year was
Rs.20,000.
f) Redemption of debentures @ 10% discount.
Required: Cash Flow Statement using direct method [4+1+2+1]
22. Following cost information is provided to you:

Opening Closing
Raw materials Rs.16,000 Rs.19,000
Finished goods Rs.93,000 Rs.20,000
Purchase of raw materials- Rs.1,42,000
Freight on purchase- Rs.11,000
Direct wages- Rs.50,000
Carriage outwards- Rs.14,500
Indirect material- Rs.15,000
General expenses- Rs.16,000
Advertisement- Re.20,000
Office salaries - Rs.36,000
Fuel & power- Rs.28,000
Other factory overhead- 62,000
Sales - 25,000 units @ Rs.24
Required: Statement of cost [8]
****The End****
74
Model Question -3
Group 'A'
(Very Short Answer Questions)
Attempt all the questions: [11 × 1 = 11]
1. Define Public Limited Company.
2. What do you mean by preference shares?
3. What do you mean by financial statements?
4. Explain fixed costs with suitable examples.
5. Define centralized purchasing system.
6. What is allocation of overheads?
7. Which system of wages payment helps to reduce idle time?
8. Write any one use of Tally software in accounting.
9. Give adjustment entry for outstanding salary.
10. If ROL is 1,800 units and daily consumptions is 200 to 300 units, calculate minimum stock
level.
11. Calculate annual requirement if EOQ is 300 units, ordering cost per order is Rs.50 and
carrying cost per unit is Rs.40.
Group 'B'
(Short Answer Questions)
Attempt All Questions [8 × 5 = 40]
12. MM Co Ltd. Issued 10000 equity shares of Rs. 100 at a premium of Rs.10 each. The money
was payable as follows:
On application Rs. 25
On allotment Rs. 50
On 1st and final call Rs. 35
Applications were received for 25000 shares. Applications for 5000 shares were accepted in
full, applications for 5000 were rejected and remaining applications were allotted on pro-rata
basis. All the money were duly received except Mr. Daku to whom 800 shares were allotted
under pro rata basis failed to pay allotment and call money.
Required : Journal entries [2+2+1]
OR
A company forfeited 200 shares of Rs.10 each (issued at a premium of Rs.2) due to non
payment of Rs.6 per share. Out of these 150 shares were re issued at Rs.6 per share as fully
paid.
Required : Journal entries for; [2+2+1]
a) Forfeiture b) Re issue c) Transfer
13. A. Pushpa Company Ltd. Issued 24000 equity shares of Rs. 10 each at a discount of 10% to
Srivalli Co Ltd to purchase the following assets and liabilities :
Land & building Rs.200000
Plant & machinery Rs. 80000
Sundry creditors Rs.40000
Required ; Journal entries for purchase of assets and liabilities and payment of
purchase consideration. [2]
B. KTM Co. issued 40000, 9% debentures of Rs.10 each

at 10% discount but redeemable at Rs.12 each.
Required: Entries for issue and redemption of debentures [3]
75
14. Trial balance of BB Co. Ltd as on 31st Dec 2015 is given below;
Particulars Dr. Amt Cr. Amt

Beginning stock 30000 -
Purchase 150000 -
Sales - 300000
Purchasing expenses 12000 -
Factory expenses 10000 -
Rent income - 15000
Commission received - 25000
Salaries 60000 -
Depreciation – office furniture 10000 -
Depreciation – delivery van 5000 -
Rent expenses 15000 -
Interest expenses 4000 -
Other operating expenses 6000 -
Advertising expenses 40000 -
Profit from discontinued operation - 2000
Total 342000 342000
Additional information;
i. Closing stock Rs. 42000
ii. Income tax expenses @ 25%
Required : Statement of Profit or Loss as per NFRS [5]
15. The following Trial balance of Mechi Co. Ltd for the year ended 31st Chaitra 2075 is
provided to you;
Particulars Dr.(Rs) Cr. (Rs)

Ordinary shares - 50000
Machinery 65000 -
Share premium - 10000
Rent 8000 -
Salary 10000 -
Sales - 80000
Purchases 30000 -
Bank balance 37000 -
Sundry creditors - 10000
Total 150000 150000
• Depreciation on machinery Rs.5,000.
• Pre paid rent Rs.2,000
• Outstanding salary Rs.3,000
Required : Work sheet. [5]
16. What do you mean by cost accounting? Explain any three limitations of Cost
accounting. [2+3]
17. A. Write down two features of variable overheads. [2]
B. Free fire Co. Ltd provides you the following details of inventory for the year 2022.
Jan. 1 Beginning inventory 600 units @ 20 each
March 15 Purchase 800 units @ Rs. 22 each
July 25 Purchase 1000 units @ Rs.18 each
Dec. 10 Purchase 400 units @ Rs. 24 each
At the end of December 500 units were on hand.
76
You are required to calculate the following under LIFO method using periodic inventory
system.
i. Cost of goods available for sale
ii. Cost of goods sold
iii. Value of ending inventory. [3]
18. A. You are provided with the following details;
Units produced in an hour - 6 units Rate per unit – Rs. 12
Total hours worked - 200 hours.
Required : Total wages under time rate system of wages payment. [2]
B. The net profit shown by Cost accounting is Rs. 25,000 and the following are
The causes of difference between the profit shown by cost and financial
accounting.
a. Over recovery of factory overheads in cost account Rs. 8,000
b. Interest received not recorded in cost accounts Rs. 5,000.
c. Under valuation of opening stock in cost account Rs. 6,000.
Required : Cost reconciliation statement. [3]
19. Write the difference between manual and computerized accounting. [5]
OR
Define Tally. Write the advantages of using Tally. [2+3]
Group 'C'
Attempt all the questions [3× 8 = 24]
st
20. Trial balance of a Company as on December 31 , 2020 is given below.
Particulars Amt. Rs Particulars Amt. Rs.

Opening stock 2,00,000 Share capital 5,00,000
Purchases 6,00,000 5 % Loan 2,00,000
Land & building 9,00,000 P/L Appro A/c 50,000
Investments 80,000 Sales 12,50,000
Debtors 1,00,000 Bills payable 1,00,000
Rent 50,000 General reserve 50,000
Salaries 1,10,000 Dividend received 30,000
Wages 80,000
Carriage in 20,000
Cash & bank 30,000
Insurance 10,000
21,80,000 21,80,000
 Closing inventory Rs. 2,00,000.
 Wages of Rs.5,000 still to be paid.
 Pre paid insurance was Rs. 2,000.
 Proposed dividend @ 10 %.
Required : a. Trading & P/L account.
b. P/L Appropriation account.
c. Balance sheet. [4+1+3]
OR
G-Bob Co Ltd provides you the following Trial balance as on 31st Chaitra 2075
Particulars Dr. Amt. Cr. Amt

Common stock - 2,00,000
Share premium - 20,000
Sales - 4,00,000
77
Purchases 3,00,000 -
Wages 20,000 -
Cash at bank 10,000 -
Salaries 20,000 -
Land & building 2,00,000 -
Investments 1,00,000 -
Creditors - 50,000
Book debts 40,000 -
Advertising expenses 10,000 -
Interest received - 30,000
Total 7,00,000 7,00,000
i. Depreciation on land & building by 5%
ii. Wages outstanding and pre-paid salary Rs.5,000 and Rs.2,000 respectively.
iii. Closing stock Rs.5,000.
iv. Corporate tax rate 20%
Required : a. Multi step income statement b. Balance sheet [4+4]
21. The balance sheet of a company as on Chaitra 31st are as under:

Liabilities Year 1 Rs. Year 2 Rs. Assets Year 1 Rs. Year 2 Rs.
10% debenture 1,00,000 50,000 Inventories 50,000 75,000
Long term loan 50,000 1,50,000 Debtors 75,000 1,00,000
Creditors 50,000 50,000 Pre paid insurance 5,000 10,000
Wages payable - 10,000 Cash at bank 45,000 15,000
Provision for tax 25,000 30,000
Retained earning 75,000 90,000
Total 7,00,000 8,80,000 Total 7,00,000 8,80,000
i. Sales for year 2 ………………………………… Rs.6,00,000
ii. Cost of goods sold …………………………………………… Rs. 2,25,000
iii. Operating expenses excluding Rs 10,000 interest on debentures Rs.2,50,000
iv. Tax paid …………………………………………………. Rs. 25,000
v. Fixed assets purchased ………………………………………2,15,000
Fixed assets sold ………………………….. Rs. 15,000
vi. Dividend paid ……………………………………………….. Rs. 25,000
Required : Cash flow statement using direct method. [4+2+2]
22. A manufacturing company provides the following information relating to the production of a
quality product.
Raw materials consumed …………………………………… Rs. 25,000
Opening stock of finished goods (2,000 units) ……….. Rs. 8,000
Direct wages ………………………………………… Rs.15,000
Work overheads ……………………………… Rs.10,000
Administrative overheads : 20% of work cost
Selling overheads : Re. 0.5 per unit
Units produced : 15,000
Units sold : 14,000 at Rs. 5 per unit
You are required to prepare a cost sheet. [1+1+3+2+1]
BEST OF LUCK
78
Model Question -4
Group A
(Very Short Answer Questions)
Attempt all the questions: [11 x 1 = 11]
1. Define Private Limited Company.
2. What do you mean by share capital?
3. Write one objectives of financial statements.
4. What do you mean by cost accounting?
5. Define decentralized purchasing system.
6. What is apportionment of overheads?
7. Which system of wages payment does not discriminate the workers?
8. Write any one feature of Computerized Accounting System.
9. What do you mean by a bin card?
10. Calculate EOQ, if annual requirement is 50,000 units and number of order is 20 times
11. If minimum stock level is 550 units and ROQ is 1,200 units, calculate average stock level.
Group 'B '

Attempt all the questions: [8 x 5 = 40]
12. PP Co. Ltd issued 5000 ordinary shares of Rs.10 each at a discount of 10% each payable as
follows:
Rs. 3 on application
Rs. 4 on allotment
Balance on 1st and final call
Application were received for 15000 shares and the
allotment was made as follows:
To 9000 shares Nil
To 4000 shares Full
To 2000 shares Pro rata
The BOD decided to utilized excess application money towards sum due on allotment. All
the money were duly received except a shareholder holding 100 shares from pro rata group
failed to allotment and call money.
Required : Journal entries. [1+2+2]
OR
Sanima Co. Ltd forfeited 500 shares of Rs.100 each for non payment of first and final call of
Rs.30 per share. These shares were issued at a discount of Rs.10 per share. Out of these
shares 100 shares were reissued at Rs. 80 per share as fully paid up.
Required : Journal entries for ; [2+2+1]
a) Forfeiture, b) Re issue c) Transfer
13. A A Co Ltd took over the following assets and liabilities of B Co Ltd at an agreed price of
Rs. 540000:
Plant Rs. 500000
Stock Rs. 70000
Creditors Rs. 30000
The company paid the purchase consideration by issuing shares of Rs.100 each at 10%
discount.
Required : Journal entries purchase and payment of purchase consideration. [2]
B. Birta Co. Ltd issued 7000, 8% debentures of Rs. 100 each at 20% premium. These
were redeemable at 10% premium after 6 years.
Required : Entries for issue and redemption of debentures [3]
79
14. The following information are extracted from the books of Suravi Enterprises for the year
ended Dec. 31, 2020.
Particulars Rs. Particulars Rs.

Advertising expenses 9000Rent expenses(office) 26400
Cost of goods sold 150000Sales revenue 350000
Depreciation- computer 4500Service revenue 100000
Dividend received 2700Supplies expenses 1300
Income tax expenses 30700Utilities expenses 6750
Interest expenses 1900Salary expenses 45600
Rent expenses(sales) 18000Profit from disposal of old
business 18000
Required : Statement of profit or loss as per NFRS [5]
15. Following information of a company for the year ended 30th Dec 2020 is provided to you;
Particulars Amt. (Rs)
Sales 1,60,000
Machinery 1,30,000
Salary 20,000
Sundry assets 74,000
Creditors 20,000
Commission 16,000
Purchase 60,000
 Pre paid salary Rs.4000
 Depreciation on machinery @10%
 Proposed dividend @ 10%
Required : Work sheet [5]
16. What are the types of materials used in manufacturing a product? List any three needs of
material control. [2+3]
17. A. Write down two features of fixed overheads. [2]
B. PubG Co. Ltd provides you the following details of inventory for the year 2022.
Jan. 1 Beginning inventory 600 units @ 20 each
March 15 Purchase 800 units @ Rs. 22 each
July 25 Purchase 1000 units @ Rs.18 each
Dec. 10 Purchase 400 units @ Rs. 24 each
At the end of December 500 units were on hand.
You are required to calculate the following under FIFO method using periodic inventory
system.
iv. Cost of goods available for sale
v. Cost of goods sold
vi. Value of ending inventory. [3]
18. A. Consider the following information;

Time required for one unit - 3 hrs
Wage rate per hour - Rs. 15
Total units produced – 2,000 units
Required : Total wages of the worker under piece rate system. [2]
B. The net profit shown by financial accounting is Rs. 15,000 and the following are
The causes of difference between the profit shown by cost and financial accounting.
a. Under recovery of factory overheads in cost account Rs. 5,000
b. Dividend received not recorded in cost accounts Rs.4,000.
80
c. Over valuation of closing stock in cost account Rs. 6,000.
Required : Cost reconciliation statement. [3]
19. What do you mean by the computer system in accounting? Explain the applications
of computers in accounting. [2+3]
OR
Explain the activities of Accounting software. [5]
Group 'C'
(Long Answer Questions)
Attempt all the questions [3 × 8 = 24]
20. The Trial Balance of Prasanta Co. Ltd. as on 31st Dec. 2008 is given below;
Salaries 30,000 Gross profit 87000
Rent and rates 27,000 Share capital 2,00,000
Discount 2,500 Debenture 50,000
Plant and machinery 1,70,000 Commission 8,000
Debtors 30,000 Transfer fee 4,000
10% investment 50,000 Profit & loss a/c 25,000
Advertising 10,000 Creditors 32,000
Stock 40,000 Provision for bad debts 7,000
Bad debts 1,500 General reserve 9,000
Cash and bank balance 11,000
Insurance 5,000
Calls in arrear 20,000
Preliminary expenses 25,000
4,22,000 4,22,000
a. Outstanding rent for three months.
b. Unexpired insurance Rs.1,000.
c. Bad debts Rs.3,000 and provision for bad debts is 10% on debtors.
d. Provide 10% dividend on capital and transfer to reserve fund Rs.3,500.
Required: i. Profit and loss account.
ii profit & loss Appro. a/c
iii Balance sheet. [4+1+3]
OR
An unadjusted Trial balance of a company is given below:
Particulars Dr. Rs Cr. Rs.
Cash 2,00,000 -
Bank 3.54,000 -
Discount allowed 5,000 -
Furniture 1,20,000 -
Purchases 2,00,000 -
Account receivable 85,000 -
Interest on loan 6,000 -
Salary 60,000 -
Pre paid rent 30,000 -
Capital - 5,00,000
Bills payable - 50,000
Discount received - 10,000
Sales - 4,00,000
10% Bank loan - 1,00,000
Total 10,60,000 10,60,000
81
a. Ending inventory Rs. 50,000
b. Pre paid rent expired Rs.20,000
c. Depreciation on furniture at 10% p.a.
Required : i. statement of profit & loss as per NFRS
Ii Statement of financial position as per NFRS [4+4]
21. Balance sheet of a company as on 31st Ashad are as follows:

Liabilities 2067 2068 Assets 2067 2068
Share capital 8,00,000 9,00,000 Machinery 7,00,000 9,00,000
Retained earning 2,00,000 3,00,000 Debtors 3,00,000 2,50,000
Bank loan 2,00,000 1,00,000 Stock 3,00,000 4,50,000
Creditors 3,00,000 4,00,000 Cash 2,00,000 1,00,000
15,00,000 17,00,000 15,00,000 17,00,000
i. Sales and cost of goods sold for the year were Rs.11,00,000 and Rs.7,30,000 respectively.
ii. Operating expenses Rs. 1,90,000 (including depreciation Rs.50,000)
iii. Machinery sold for Rs. 1,50,000 and purchase Rs. 4,00,000.
iv. Dividend paid for the year Rs.80,000.
Required : Cash flow statement using direct method. [4+2+2]
22. The following information are provided from the records of a manufacturing concern:

Opening stock of raw materials 30,000 Closing stock of raw materials 10,000
Purchase of raw materials 75,000 Carriage on purchase 5,000
Productive wages 60,000 Factory overheads 30,000
Opening stock of WIP 15,000 Closing stock of WIP 5,000
Preliminary exps. written off 4,000 Office overheads 10,000
Closing stock of finished goods : 1,000 units Unit produced : 12,000
Units sold : 15,000 Profit : 10 % on sales
Selling overheads : Rs. 2 per unit sold
Required: Cost sheet showing
a. Cost of materials consumed b. Prime cost c. Factory cost
d. Cost of production e. Total cost f. Profit [2+1+1+2+1+1]
BEST OF LUCK
Model Question -5
Candidates are required to give their answers in their own words as far as practicable. The figures
in the margin indicate full marks.
Attempt all questions:
Group 'A
Very Short Answer Questions [11x1=11]
1. What do you mean by private company?
2. Define cumulative preference share.
3. Write any two contents of Articles of Association.
4. Give the meaning of authorized capital.
5. What are the major components of financial statement?
6. Mention any two importance of cost accounting.
7. What is variable cost?
8. Write any two advantages of piece rate system of wages payment.
9. Prepare adjustment entry of prepaid salary Rs. 5,000.
82
10. From the following information calculate cost of goods sold:
Opening stock Rs.20000, Purchase Rs.50, 000, Carriage inward Rs. 3000, closing stock Rs.23, 000
11. If weekly consumption 600 to 1000 units, re order period 4 to 6 weeks, then find out minimum
stock level.
Group ‘B’
Short Answer Questions [8×5=40]
12. AV. Company Ltd. Issued 10,000 shares of Rs. 100 each at 10% discount payable as follows:
On allotment Rs. 30 (including discount)
On First and Final Call Rs. 40
Applications were received for 30,000 shares. It was decided
a. To refuse to applicants for 5,000 shares.
b. To allot 10,000 shares for 10,000 applicants.
c. To allot on pro- rata basis for remaining applicants
Excess money is utilized towards part payments on subsequent calls. All monies were
duly received except a holder who applied for 200 shares and was allotted 100 shares
failed to pay allotment and first and final call money.
OR
Body Builder Co. Ltd. issued 20,000 equity shares of Rs.100 each at a discount of 10% payable as
follows:
On application Rs.30 per share
On allotment Rs. 20 per share
On first and final call Rs. 40 per share
All the shares were subscribed and allotted. All monies were duly received except a holder holding
400 shared, failed to pay on allotment and call money. These shares were forfeited.
Required: Journal Entries for;
i). Allotment ii) First and final call iii. Forfeiture [2+2+1]
13. A). X Co. Ltd. Took over the following assets and liabilities of Y Company Ltd at an agreed
purchase price of Rs. 3,15,000.
Plant Rs. 2, 50,000 Furniture Rs. 1, 00,000
Creditors Rs. 50,000 Debtors Rs 40,000
Outstanding expenses Rs. 10,000
The company issued fully paid equity shares of Rs. 10 each at 10% discount for the payment
of purchase consideration. [2]
B. A Company Limited issued 4,000 5% Debentures of Rs. 1000 each at 5 % discount and
redeemable after 7 years at 10% premium.
Required: Journal entries for issue and redemption of debentures [1+2]
14. The Trial balance of R&P Enterprises as on 31st December 2019 is given below:
Particulars Dr (Amount) Particulars Cr (Amount)
Salaries 80,000 Sales 9,00,000
Investment 1,00,000 Creditors 30,000
Cost of goods sold 5,00,000 Bank loan 60,000
Debtors 41,000 Capital 4,00,000
Goodwill 50,000 Interest on investment 8,000
Plant & machinery 4,00,000 Overdraft 30,000
Closing Stock 1,17,000
Selling expenses 4,000
Cash 36,000
83
Rent 34,000
Interest expenses 6,000
Total 14,28,000 Total 14,28,000
Required: Multi- step income statement [5]
15. You are given the following trial balance of a company
Particulars Debit Rs. Credit Rs.

Capital 1,50,000
Sales 2,50,000
Machinery 1,00,000
Sundry debtors 25,000
Furniture 50,000
Purchase 1,90,000
Sundry creditors 35,000
Salaries 40,000
Total 4,35,000 4,35,000
Additional Information:
a) Depreciate machinery @10% p.a.
b) Outstanding salaries Rs. 2,500
c) Bad debt written off Rs. 500
d) Prepaid insurance expired. Rs. 6,000
16. Define cost accounting. Differentiate between cost accounting and financial accounting. [1+4]
17. a) Who is store keeper? Write any two duties and responsibility of store keeper.
b) The following are the store transactions for the month of Falgun:
Falgun 1: opening stock 500 units @ Rs. 5 per unit
Purchase:
Falgun 3: purchased 700 units @ Rs. 6 per unit
Total sales during the month of Falgun 2,000 units
The company use periodic inventory system.
Required: A. Cost of goods sold under LIFO method.
B. Cost of ending inventory under LIFO method, [3+2]
18. a). Consider the following information of Mahara & Sons Company:
Normal wage rate Rs 120 per hour
Overtime rate Rs 50% of normal rate
Normal time allowed 8 Hours per day
During a particulars day, worker A worked for 12 hours and worker B worked for 10 hours.
Find out the total wages of each worker.
b) You are given the following information on 31st Dec.2020
Net loss as per cost account Rs. 20,000
Good will written off shown in financial account Rs. 15,000
Factory overhead were over recorded in financial account Rs. 10,000
Transfer fee not recorded in cost account Rs. 5,000
Closing stock undervalued in cost account Rs. 3000
Depreciation overcharged by financial account Rs. 1,000
Required : Cost Reconciliation Statement.
19. Describe the features of accounting software. [5]

84
Group 'C’
Long answer questions (3x8=24)
20. You are given the following ledger balances of the ABC Trading concern for the year ending 31st
December 2020.
Particulars DR. Amount Particulars CR. Amount
Furniture 17,000 Share capital 1,00,000
Rent and taxes 4,000 Rent received 3,000
Machinery 29,500 P/L appropriation A/C 15,000
Sundry debtors 32,500 Reserve fund 15,500
Salaries 13,500 Account payable 29,500
Calls in arrears 10,000 Gross Profit 2,93,500
Cash 100,000 10 % debentures 1,00,000
Goodwill 47,500
Closing stock 300,000
Total 5,56,500 Total 5,56,500
a. Depreciate furniture by 10% p.a.
b. Outstanding rent and taxes Rs. 1,500
c. The directors proposed a dividend @ 10% on paid up capital and reserve fund increased by Rs. 2,500.
d. Make a provision for tax @ 30%.
Required: a) Profit and loss account
b) Profit and loss appropriation account c) Balance sheet [3+2+3)
OR
The Trial balance of Pappu enterprises as on 31st December 2021 is given below:
Particulars (Dr)Amount Particulars (Cr)Amount
Salary 32,000 Bank loan 60,000
Purchase 2,50,000 Sundry creditors 40,000
Advertisement 14,000 Sales 3,90,000
Bank balance 35,000 Purchase return 5,000
Sundry debtors 50,000 Interest received 14,000
Investment 50,000 Commission 2,000
Plant 1,20,000
Interest paid 5,000
Wages 35,000
Insurance 20,000
Total 6,61,000 Total 6,61,000
a. Closing stock Rs 55,000
b. Depreciation on plant@15% p.a.
c. Income tax @25%.
Required: a) Income statement as per NFRS b) Balance sheet as per NFRS [4+4]
21. The Balance sheets of a company as on 31st Chaitra are as follows:
Capital & Year I Year II Assets Year I Year II
Liabilities
Share premium 25,000 30,000 Inventories 25,000 50,000
Retained earning 50,000 75,000 Account 75,000 50,000
Receivable
10% debentures 50,000 25,000 Cash at bank 50,000 25,000
Bills payable 25,000 20,000
Accounts payable 50,000 75,000
Total 4,50,000 5,25,000 Total 4,50,000 5,25,000
85
a. Sales for year Rs.3, 00,000.
b. Cost of goods sold Rs.1, 75,000.
c. Operating expenses Rs.50, 000.
d. Fixed assets costing Rs, 10,000 sold for 15,000.
e. Fixed assets purchased for Rs.1, 50,000
f. Dividend distributed Rs.10, 000.
g. Debentures redeemed with Rs.5, 000 premium.
Required: Cash flow statement by using direct method [3+2+3]
22. The following costing information are given in respect of production of 11,200 units.
Particulars Opening Closing
Raw materials Rs.22,000 Rs.18,400
Work in Progress Rs. 15,300 Rs. 17,600
Finished goods 1,200 units 2,400 units
Purchase Rs. 2,37,500
Direct Wages Rs. 87,500
Advertising Rs.1 per unit sold
Debenture interest Rs.2,000
Sales of raw materials scrap Rs 500
Work Manager Salary Rs.15,000
Office employee salaries Rs.30,000
Factory Rent, rates etc. Rs.3,600
Power Expenses Rs.800
Other factory expenses Rs.21,500
Depreciation on furniture Rs 1,500
General Expenses Rs.16,200
Profit 20% on sales
Required: (i) Prime Cost (ii) Work Cost
(iii) Cost of Production (iv) Cost of goods sold
(v) Amount of sales [1+2+1+2+2]
Model Question -6
Group 'A'
Very Short Answer Questions [11×1=11]
1. Write the meaning of private company with a suitable example. [1]
2. Define Memorandum of Association. [1]
3. Clarify the meaning of financial statement? [1]
4. Write any two importance of cost accounting. [1]
5. Define fixed cost with suitable example. [1]
6. Write any two advantage of time rate system of wage payment. [1]
7. Define controllable overhead. [1]
8. Define accounting software. [1]
9. Prepare adjustment entry of depreciation on furniture Rs 4,000. [1]
10. From the following information calculate retained earnings for the year [1]
Last year profit was transferred to Balance sheet Rs.50, 000, current year’s profit Rs. 35,000, Proposed
dividend Rs 15,000 and transfer to general reserve Rs. 5,000
86
11. From the following information calculate Annual requirement; [1]
The following information is given to you:
Quantity to be ordered on each purchase : 1,000 units
Cost per order : Rs. 10
Cost per unit : Rs. 2
Storage and Insurance cost: 5% of average inventory value
Group 'B'
Short Answer Questions [5×8= 40]
Attempt all questions
12. A company Limited issued 5,000 shares of Rs. 100 each with 10% discount payable as under.
On allotment Rs. 30 (after discount)
On first and final call Rs. 30
Application were received for 8,000 shares, allotment were made on the following basis:
To the applicants for 3,000 shares full
To the applicants for 4,000 shares 2,000
To the applicants 1,000 shares rejected
All excess amount paid on application is to be adjusted against amount due on allotment and
subsequent calls. The shares were full called and paid up except one shareholder to whom 200
shares were allotted failed to pay on allotment and first and final call (under pro –rata group).
a) Share application b) share allotment c) Share first and final call [1+2+2]
OR
A company Limited issued 10,000 shares of Rs. 100 each payable as under.
On first and final call Rs. 30
Application were received for 16,000 shares, allotment were made on the following basis:
To the applicants for 6,000 shares full
To the applicants for 8,000 shares 4000
To the applicants 2,000 shares Nil
All excess amount paid on application is to be adjusted against amount due on allotment and
subsequent calls. The shares were full called and paid up except one shareholder to whom
200 shares were allotted failed to pay on first and final call and his shares were forfeited.
Required: Journal entries for Share allotment, Share first and final call, S
hare forfeiture [1+2+2]
13. A. A company limited issued 6,000 shares of Rs 100 each at a premium of 10% to purchase
the following assets and liabilities of X company Ltd.
Machinery Rs. 4, 00,000 Furniture Rs. 1, 50,000
Sundry creditors Rs. 1, 0, 0000 Loan Rs. 1, 50,000
Sundry debtors Rs. 2, 50,000
Required: Journal entries for purchase of assets and liabilities [2]
B. A company issued 5,000 10% debenture of Rs. 100 each at 10% discount. These debentures
were redeemed after 5 years at 5% premium.
Required: Journal entries for issue and redemption of debenture [1+2]
87
14. The following unadjusted trial balance is related to Dhawalari Company
Account Heads Debit Rs Credit Rs

Cash 6,000
Office supplies 8,000
Office equipment 70,000
Bank loan 10,000
Accounts payable 12,000
Share Capital 40,000
Sales 60,000
Miscellaneous expenses 15,000
Salaries 20,000
Total 1,22,000 1,22,000
Adjustment information
(a) Outstanding salaries Rs.4, 000 (c) Prepaid insurance expired Rs.1, 000
(d) Depreciation on equipment Rs. 4,000 e) Outstanding interest on loan Rs 1,000
Required: Worksheet [5]
15. You are given the following ledger balances of the ABC company ltd. concern for the year
ending 31 Chaitra 2075
Particulars Dr. Amount Particulars Cr. Amount
Opening stock 30,000 Sales 8,00,000
Purchase 5,50,000 Share Capital 4,50,000
Factory rent 5,000 Creditors 10,000
Building 2,00,000 Reserve fund 20,000
Salaries 10,000 P/L App. A/C 20,000
Machinery 2,00,000 Debenture 1,00,000
Debtors 1,00,000 Bills payable 40,000
Cash at bank 25,000 Commission 3,000
Wages 20,000 Share transfer fee 22,000
Carriage Outward 17,000 Purchase return 5,000
Investment in share 2,00,000
Commission 10,000
Rent 28,000
Stationary 20,000
Goodwill 50,000
Interest on debenture 5,000
Total 14,70,000 Total 14,70,000
Additional information:-
a. Stock on 31th Chaitra 2075 was of Rs.30, 000.
b. Depreciate Machinery by 10%.
Required: Income statement as per NFRS
[5]
16. Write the meaning of codification and classification of materials with suitable
example [5]
17. a) Writes the meaning of allocation of overhead. [2]
88
b) The following transactions show the movement of a particular item of material during
March
March 1 Opening stock 500 units @ 20 per unit
March 8 Purchased 300 units @ Rs. 25 per unit
March 10 Issued 200 units
March 12 Returned to supplier 30 units (out of March 8)
March 15 Purchased 450 units @ 30 per unit
March 18 Issued 150 units
Required: Store ledger under LIFO method by using perpetual inventory system [3]
18. a) The standard output per half an hour is 20 units. The piece rate is Rs. 12 per unit and worker
worked 100 hours in a month.
Required: Total wage under Piece rate system [2]
b) The net profit as per financial account is Rs. 60,000. Reconciling the cost account with
financial account, the following discrepancies were revealed:
i. Works overhead under recovered in cost account Rs. 5,000.
ii. Office overhead over recovered in cost account Rs. 3,000.
iii. Depreciation charged in financial account Rs. 5,000 and in cost accounts Rs. 6,000.
iv. Income tax paid Rs. 15,000.
Required: Reconciliation statement of cost and financial account [3]
19. Discus the needs and feature of accounting software [5]
Group 'C'
Long Answer Questions
Attempt all questions
20. You are given the following ledger balances of the ABC company ltd. concern for the year
ending 31 Chaitra 2075
Particulars Dr. Amount Particulars Cr. Amount
Building 2,00,000 Share Capital 4,50,000
Salaries 10,000 Creditors 10,000
Machinery 2,00,000 Reserve fund 20,000
Debtors 1,00,000 P/L App. A/C 20,000
Cash at bank 25,000 6% Debenture 1,00,000
Carriage Outward 7,000 Bills payable 40,000
Calls in arrears 10,000 Commission 3,000
Investment in share 2,00,000 Share transfer fee 20,000
Commission 10,000 Provision for tax 2,000
Rent 28,000 Gross Profit 2,30,000
Stationary 20,000
Goodwill 50,000
Closing stock 30,000
Total 8,95,000 Total 8,95,000
a. Appreciation on Building @ 5% and depreciate Machinery by 10%.
b. Further bad debt Rs 5,000 and Provision for doubtful debts to be maintained on 5% on debtors.
c. Salaries for the year Rs.12, 000
d. Proposed Dividend @ 10% on paid up capital
Required: a) Profit and loss a/c c) Profit and loss app. a/c d) Balance Sheet [2+3+3]
OR
Trial Balance of a trading concern as on 31st Chaitra 2077 is given below:
89
Particulars Dr (Amount) Particulars Cr (Amount)
Stock 1-1.2077 30,000 Sales 6,00,000
Purchase 5,50,000 Share Capital 4,50,000
Fuel & Power 5,000 Creditors 10,000
Salaries 30,000 Provision for bad 5,000
debt
Machinery( 2,00,000 Bank loan 1,02,000
1.7.2077)
Debtors 80,000
Cash at bank 25,000
Wages 20,000
Carriage Out 7,000
Investment 2,00,000
Commission 5,000
Rent 15,000
Total 11,67,000 Total 11,67,000
a. Stock on 31th Chaitra 2077 was of Rs.60 000.
b. Depreciate Machinery by 10%.
c. Salaries for the year Rs.32, 000 and wages prepaid Rs.3, 000.
Required: Multi step income statement and Balance sheet by using modern approach [4+4]
21. Sagar Co Ltd. Provides the following information.

Balance sheet of
Capital and liabilities 2018(Rs) 2019 (Rs) Asset 2018(Rs) 2019 (Rs)
Share capital 5,00,000 7,00,000 Fixed asset 6,00,000 7,50,000

Retained earning 3,00,000 4,85,000 Investment 1,00,000 -
10% debentures 2,00,000 50,000 Inventory 50,000 90,000
Creditors 30,000 40,000 Debtors 1,00,000 2,00,000
O/s expenses 5,000 2,000 Cash in hand 2,00,000 2,45,000
Bank overdraft 15,000 8,000
Total 10,50,000 12,85,000 Total 10,50,000 12,85,000
Other information:
a. Sales (Net) for the year Rs. 8,00,000 and Cost of goods sold Rs. 3,00,000
b. Operating expenses were Rs. 2,00,000
c. The fixed asset costing Rs. 2, 00,000 was purchased in the year 2008 and depreciation of Rs.
50,000 was charged on the fixed assets.
d. Investment was sold at a profit of Rs. 10,000
e. Dividend of Rs. 60,000 was paid during the year.
f. Debentures were redeemed at 10% premium.
Required: Cash flow statement by using direct method [3+2+2+1]
22. A manufacturing company provides you the following cost information for the productions of 500 units
of cotton shirts:
Materials 1, 50,000
Direct Wages 1, 20,000
Works Overheads 30,000
Office Overheads 15,000
Selling overhead 10,000
Following estimates were made by the costing departments of the company for quoting the tender
price of 2,000 units of cotton shirts:
Cost of materials will increase by 25% and direct wage cost decrease by 10%. Factory overhead
based on direct wage and other overhead based on factory cost. So that the price might yield a profit
of 20% on Selling Prices
Required- (a) Cost Sheet (b) Tender sheet [2+6]
90
Model Question -7
Group 'A'
Very Short Answer Questions [11x1=11]
1. What do you mean by Chartered Company? [1]
2. Differentiate between equity share and preference share capital? [1]
3. Write any two features of financial statement. [1]
4. Write any two functions of cost account. [1]
5. What do you mean by Bin card? [1]
6. What is the meaning of perpetual inventory system? [1]
7. What do you mean by bin card? [1]
8. Give the meaning of variable overhead with suitable example. [1]
9. Prepare adjustment entries of outstanding wages Rs 10,000. [1]
10. From following information calculate net cash flow from investing activities: [1]
Plant and machinery increased from 35,000 to 45,000, investment decreased from 60,000 to
40,000, land and building increased from 2, 00,000 to 3, 50,000.
11. From the following information calculate maximum stock level; [1]
Daily consumption 2,000 units to 3,000 units, lead time 5 to 10 days. Re order quantity 6,000
units Group 'B'
Short Answer Questions [8×5=40]
12. B&B. Company Ltd. Issued 10,000 shares of Rs. 100 each at 10% discount payable as
follows:
On allotment Rs. 30 (After discount)
On First and Final Call Rs. 40
Applications were received for 20,000 shares. It was decided
To refuse to applicants for 5,000 shares
To allot 5,000 shares for 5,000 applicants
To allot 5,000 shares for 10,000 applicants
To allot on pro- rata basis for remaining applicants
Excess money is utilized towards part payments on subsequent calls. All monies were
duly received except a holder who applied for 200 shares and was allotted 100 shares
failed to pay allotment and first and final call money.
Required: Journal entries for a). Share Application b). Share Allotment
c). Share First and Final call [1+2+2]
OR
Aarambha Company forfeited 450 shares of Rs. 100 each issued at 10 % premium for non-
payment of first and final call of Rs. 30. Only 300 shares were re-issued to A at Rs. 80.
Required: Journal entries for i) Forfeiture ii) Re-issue iii) Transfer [2+2+1]
13. A. X Co. Ltd. Took over the following assets and liabilities of Y Company Ltd at an agreed
purchase price of Rs. 3, 15,000.
Plant Rs. 2, 50,000 Furniture Rs. 1, 00,000
Creditors Rs. 40,000 Debtors Rs 40,000
91
Outstanding expenses Rs. 10,000
The company issued fully paid equity shares of Rs. 10 each at 10% discount for the payment
of purchase consideration.
Required: Journal entries [2]
B. A Company Limited issued 4,000 5% Debentures of Rs. 10 each at 5 % discount and
redeemable after 7 years at 10% premium.
Required: Journal entries for issuance and redemption of debentures [1+2]
14. The following is the trial balance drawn up on 31st Dec 2020.
Particulars Dr. Particulars Dr.
Amounts Amounts
Opening stock 50,000 Sales 3,14,500
Furniture 17,000 Rent received 3,000
Rent and taxes 4,000 P/L appropriation A/C 15,000
Machinery 29,500 Share capital 1,00,000
Purchase 2,45,000 Reserve 15,500
Sundry debtors 32,500 Account payable 29,500
Wages and salaries 31,000 Return outward 5,000
Salaries 13,500 Bank loan 50,000
Calls in arrears 10,000
Cash 50,000
Goodwill 47,500
Total 5,32,500 Total 5,32,500
a. The value of closing stock at the end was Rs. 59,000.
b. Depreciate machinery and furniture by 10% each.
c. Outstanding rent and taxes Rs. 1250
Required: Multi step Income statement by using modern approach. [5]
15. You are given the following trial balance of a company:
Particulars Debit Rs. Credit Rs.
Capital 1,50,000
Sales 2,50,000
Machinery 1,00,000
Sundry debtors 25000
Furniture 50,000
Purchase 1,90,000
Sundry creditors 25,000
Salaries and wages 40,000
Total 425,000 4,25,000
a. Depreciate machinery @10%.
b. Outstanding salaries Rs. 2,500
c. Bad debt written off Rs. 500
d. Prepaid insurance expired Rs. 6,000
Required: a. Work sheet [5]
16. Write the meaning of apportionment and absorption of overhead. [2.5+2.5)
17. a) What are the objectives of inventory management? [2]
b) Following are the transactions of material of a company for the month of Paush.
Poush 1 Opening stock 400 units @ Rs. 10 per unit
Poush 6 Purchased 800 units @Rs. 12 per unit
Poush 18 Purchased 1400 units @ Rs. 14 per unit.
92
Total sales during the month of poush 1,300 units. The Company follows periodic inventory
system.
Requirement: Cost of goods sold and cost of ending inventory by using FIFO method [3]
18. a) The standard time allowed for one unit of output is 30 minutes. The hourly wage rate is
Rs. 50 per hour . Umesh produced 40 units in a day.
Required: Total earning of the worker Umesh for a month. [2]
b) You are given the following information on 31st Dec.2007
Net profit as per cost account Rs. 20,000
Patent written off shown in financial account Rs. 12,000
Factory overhead were over recorded in financial account Rs. 10,000
Interest received not recorded in cost account Rs. 5,000
Closing stock undervalued in cost account Rs. 3000
Depreciation overcharged by financial account Rs. 1,000
Required : Cost Reconciliation Statement. [3]
19. Difference between manual and computerized accounting. [5]

Group 'C'
Long Answer Questions [3×8= 24]
Attempt All Questions:
20. Bajaj Company has been established with authorized capital of Rs 10,00,000 divided into
equity and 8% preference capital at Rs. 6,00,000 and Rs. 4,00,000 respectively. The company
showed the following trial balance on 30th December 2005
Particulars Debit Rs. Particulars Credit Rs
Opening stock 80,000 Equity share (5000) 5, 00,000
Purchases 2, 20,000 8% preference share 1, 00,000
Building 6, 00,000 Sales 7, 50,000
Office rent 40,000 Creditors 1, 50,000
Interest paid 4,000 General reserve 50,000
Calls in arrears 50,000 6% long term loan 1, 00,000
Salary 80,000 P/L App A/C 8,000
Wages 1, 20,000 Commission outstanding 20,000
Tax paid for last year 25,000 Bank overdraft 75,500
Freight in ward 40,000 Provision for bad debts 1,500
Underwriting commission 16,000 Provision for tax 20,000
Plant and machinery 3, 80,000
Debtors 1, 00,000
Total 17,75,000 Total 17,75,000
a. Stock valued at the end of the year Rs. 2,75,000
b. Wages included Rs. 20,000 erection made for machinery.
c. Insurance expired to extent of Rs. 15,000
d. Depreciate plant and machinery by 5% p.a.
e. Bad debt written off Rs. 10,000 and provide for provision for bad debts @ 4%
f. Board of Directors proposed a dividend on preference shares and create a general reserve of
Rs. 20,000
Required: a) Trading account b) Profit and loss account
b) Profit and loss appropriation account [3+3+2]
93
OR
You are given the following ledger balances of the ABC Trading concern for the year ending 31st
December 2007.
Debit Amount Credit Amount
Opening stock 2,00,000 Sales 14,00,000
Purchase 7,00,000 10% debentures 3,00,000
Wages 1,00,000 Share capital 6,30,000
Cash 90,000 Creditors 2,00,000
Fixed asset 1080000 Retained Earning 80,000
Debtors 180,000 General reserve 50,000
General expenses 300000 Transfer fees 10,000
Prepare Insurance 20,000 Interest received 5,000
Interest on debenture 30,000 commission 25,000
Total 27,00,000 Total 27,00,000
i. Wages payable Rs. 10,000 per month.
ii. Prepaid Insurance expire Rs. 5,000 during the year.
iii. Closing stock valued Rs. 200,000
iv. Fixed asset revalued at Rs 10, 00,000 at the end of the year.
Required: Income statement as per NFRS and Balance sheet as per NFRS [4+4]
21. The balance sheets of a Company as on Dec. 31 are as follows:
Liabilities 2017 Rs. 2018 Rs. Assets 2017 Rs. 2018 Rs.
Share capital 5,00,000 6,00,000 Plant and machinery 6,00,000 8,00,000
Share premium 50,000 60,000 Stock 50,000 1,00,000
5% Debentures 1,00,000 50,000 Sundry debtors 1,50,000 1,00,000
Account payable 50,000 40,000 Bank balance 1,00,000 50,000
Sundry creditors 1,00,000 1,50,000
Retained Earning 1,00,000 1,50,000
Total 9,00,000 10,50,000 Total 9,00,000 10,50,000
a. Sales for the year 2018 Rs. 8,00,000
b. Cost of goods sold Rs. 5, 30,000.
c. Operating expenses Rs. 1,25,000 ( including depreciation Rs. 25,000 and interest
Rs.40,000)
d. A plant costing Rs. 20,000 was sold for Rs. 30,000 and another plant was purchased for
Rs. 3, 00,000.
e. Dividend distributed Rs. 40,000
f. Debenture was redeemed at 20% premium.
Required: Cash flow statement using direct method [3+2+2+1]
22. The details of manufacturing and other cost are given below:
Opening stock of raw material Rs. 80,000
Purchase Rs. 200,000
Carriage Rs. 4000
Closing stock of raw material Rs. 40,000
Direct wages Rs. 4, 00,000
94
Work overhead Rs. 60,000
Administrative overhead 10% of direct wages
Selling and distribution cost Rs. 5 per unit.
Units produced 6,000 units
Units sold 7000 units
Profit 20% on sales
Required: a). Cost of raw material used. B). Prime Cost c). Factory cost d). Cost of
production e). Total cost f). Sales 1+1+1+2+2+1
Best of luck
Model Question -8
Group 'A'
Very short answer questions : (11×1=11)
Attempt all the questions
1. Write any two differences between equity and preference shares.
2. Write the advantages of debt financing.
3. Explain any two limitations of cost accounting.
4. What are the inventory management techniques?
5. Explain variable cost with examples.
6. Write any two advantages of piece wages system.
7. Explain controllable and uncontrollable overhead.
8. Explain any two features of company.
9. Find EOQ if annual requirement is 4000 kg ordering cost per order is RS 40 and carryjng cost
per u it is Rs 2.
10. What is the limitation of computer in accounting.
11. What is amount of cost of goods sold if opening stock is Rs 20,000. Purchase of Rs 380,000
and value of closing stock Rz 25,000.
12. Arpan ltd issued 20,000 equity shares of par value Rs 100 each at Rs 110. Company
demanded the price of the shares under following installments :
On application Rs 30
On allotment RS 60 (including premium)
On calls Rs 20
Company received application for 40,000 shares. Company decided to reject the application for
10,000 shares and make pro rata allotment for application of remaining shares. Company informed
subscriber and utilized excess application money of the subscribers towards sum due on allotment
and subsequent calls. All dues were received as per company's expectations except calls money of a
subscriber of 600 shares. Subscriber failed to pay calls money. Company decided to forfeit these
share after final call.
Req; Entries for allotment, calls and share forfeiture. 5
Or
President co. Ltd has declared the forfeiture of 800 equity shares of a subscriber against default in
payment of allotment and calls money Rs 85 per share including premium Rs 20 the par value per
share is Rs 100. Co reissued these shares at Rs 80 to a new subscriber for Rs 100 fully paid.
Req: Entries of share forfeiture, re issue and transfer of the forfeited amount to the capital
reserve. 3
13. a) Strong Ltd has acquired business of Weak ltd at an agreed value Of Rs 816,000. Asset
taken over and liabilities assumed are:
95
Equipment & tools Rs230,000. Furniture Rs 45,000. Building Rs 505,000 and Creditors Rs
20,000. Company, to discharge the purchase price, issue 8000 shatre par value Rs 100 at Rs
102.
Req: entry of the purchase of the business and discharge of the agreed value. 2
b) Acer co ltd has issued 10000, 12% debenture par value of Rs 1000 at its 110% value and
repayable at 125% value at its maturity on cash after five years
Req; Entries of the issue and redemption of the debenture. 3
14. Trial balance and necessary adjustments of Jupiter Company Ltd. as on Chaitra 31, 2010, as
follows:

Machinery 2,00,000
Sundry creditors 20000
Purchase 50,000
Sales revenue 150,000
Salaries 40,000
Debtors 50000
Cash and bank balance 25,000
Commission 50,000
Prepaid insurance 15000
Rent 30,000
Total 42,0000 42,0000
• Closing stock Rs 50000.
• Prepaid insurance expired Rs.10, 000
• Outstanding rent Rs 6,000.
Required: a) Journal Entries for adjustment
b) Twelve column Work sheet. 5
15. Following Trial balance of Drift Company Ltd contains the ledger balances of the year ended
Dec 31 2016
Particulars Debit Credit
Share capital 400,000
Sales 700,000
Plant and Machinery 300,000
Debtors 200,000
Bank and cash Balance 150,000
Account Payable 30,000
Profit and loss Account 60,000
Dividend 20,000
Bank Loan 40,000
Insurance 45,000
Wages and Salary 50,000
Carriage outward 20,000
Office &administrative expenses 50,000
Vehicles 100,000
Purchase 200,000
Opening Stock 30,000
Investment 100,000
96
Legal expenses 5,000
Return outward 10,000
Discount and Commission 5,000
Power and fuel 25,000
Total 12,95,000 12,95,000
• Closing Stock Rs 25,000
• Wages outstanding Rs 10,000.
• Depreciation on Vehicles 10% and Machinery 20%
• Outstanding office expenses Rs.12,000
• Pre-paid Insurance Rs. 30,000
• Provision for dividend @ 10% on paid up capital
• Transfer to general reserve Rs.50000.
Required: Trading Account 2
Profit and loss Account 3
Balance sheet
16. What is cost accounting ? What are the importance of cost accounting? 5
17. a) Write the advantages of decentralized purchase. 2
b)Following information are given related with store ledger
1 Dec: Opening balance 300 units @ Rs. 10 each
5 Dec: Issued 200 units @ Rs. 5 each
10 Dec: Received from Vendor 150 units @ Rs. 15 each
15 Dec: Issued 200 units @ Rs. 25 each
18 Dec: Return from department 50 units
Required store ledger under LIFO Method 3
18. a) Standard time required for an units of output is 30 minutes.
Wages rate per hour is Rs 100
Total output of A is 150 units
Total output of B is 200 units
Required: Total wages under Piece rate wage system. 2
b) Net profit as per Cost Account Rs 10000
Opening stock in cost account Rs. 15000
Opening stock in financial account Rs. 5000
Depreciation
In Cost Account Rs. 60000
In Financial Account Rs. 50000
Income Tax shown in Financial Accounts 40000
Factory overhead under recorded in cost account Rs.12000
Required: Cost Reconciliation Statement 3
19. What are the limitations of computer in accounting? 5
Or
Explain the elements of computerized accounting system.
Group 'C' (3×8=24)
20. Following information are costing information of 10,000 units of output manufactured last year
Direct material Rs. 50000
Direct Labor Rs. 60000
Factory overhead Rs. 20000
Office and administrative expenses Rs. 5000
Selling expenses Rs. 5000
Company has received quotation of 2,000 units of same product from a customer
Price of material and labour increases by Rs 10 per unit each.
Percentage of factory overhead is based on direct Labor
Office expenses remains unchanged.
and other expenses are based on Factory Cost.
97
Profit is 10% on tenser price.
Required: a) Cost Sheet 3
b) Tender Sheet 5
21.The balance sheet and income statement of aviator co. ltd has been illustrated below
Capital &liabilities 2017 2018 Assets 2017 2018
Due expenses 50000 70000 Cash 55000 20000
creditors 10000 5000 Customers 120000 200000
a/c
Debentures 100000 150000 Inventories 20000 50000
Equity share capital 330000 410000 Debtors 5000 10000
Profit and loss a/c 10000 15000 Fixed assets 300000 370000
total 500000 650000 Total 500000 650000
Further information:
Sales Rs 400,000
a) Cost of goods sold Rs 180,000.
b) Selling and administrative exp. Rs 105,000 and depreciation on fixed assets Rs 20,000.
c) Interest on debenture Rs 10000
d) Income tax paid Rs 35000
e) Fixed assets book value Rs 50,000 sold at a profit of Rs 10,000. New Purchase of fixed
assets Rs150,000.
f) Dividend paid Rs 55,000
Required: Cash flow statement 8
22. The trial balance of Shrestha Traders as on 31st December 2020 is given below:
Particular Amount Particular Amount
Salaries 80,000 Sales 9,00,000
Investment 1,50,000 Creditors 80,000
Cost of goods sold 5,00,000 10% bank loan 60,000
Debtors 40,500 Share Capital 4,00,000
Goodwill 50,500 Investment interest 8,000
st
Plant (1 July 2020) 4,00,000 30,000
Closing stock 1,17,000 Retained earning 240,000
Carriage out 4,000
Bank 36,000
Rent prepaid 40,000
Total 14,78,000 Total 14,78,000
a) Outstanding salaries of Rs.15,000.
b) Prepaid rent expired of Rs.6,000
c) Depreciate plant & machinery @15% p.a.
d) dividend Rs 10,000 declared
Required: i) Income statement based on NFRS.
ii) statement of retained earning
iii) Balance Sheet based on NFRS.
OR
The trial balance of Shrestha Traders as on 31st December 2020 is given below:
Admin expenses 90,000 Sales 6,00,000
10% investment 1,20,000 Trade payables 80,000
Cost of goods sold 300,000 10% debenture 60,000
98
Bills receivable 40,500 Capital stock 4,00,000
Land 50,500 Investment interest 6,000
Plant 4,00,000 Accumulated depreciation 30,000
Closing stock 1,17,000 Retained profit 55,000
Other selling cost 4,000
Cash 89500
Bank charge 10,000
Total 1231000 Total 1231000
a) appreciation on land Rs 20,000.
b) prepaid admin expensesRs.20,000.
c) Depreciate plant & machinery @15% p.a.
d) transfer of profirt to general reserve Rs 3000 and dividend Rs 5,000
Required: i) multiple step Income statement , statement of retained earning
ii) Balance Sheet
Model Question -9
Group 'A'
Attempt all questions: (11×1=11)
1. Write any three differences between equity and preference shares.3
2. Write the disadvantages of debt financing.
3. Write importance of financial of cost accounting.
4. State any one difference between bin card and store ledger.
5. Explain fixed cost with examples.
6. What is overhead?
7. Explain any one feature of company
8. What is total cost at eoq if annual requirement is 40000 kg, ordering cost per order is Rs 500 and
carrying cost per unit is Rs 20.
10. Write the process of computerised accounting.
11. Write any two essentials of material control.
12. Aero ltd issued 10,000 equity shares of par value Rs 100 each at Rs 110. Company demanded
the price of the shares under following installments :
On application Rs 30
On allotment RS 60 (including premium)
On calls Rs 20
Company received application for 20,000 shares. Company decided to make pro rata allotment for
application of 15,000 shares only and refund application money of remaining shares. After pro rata
allotment of shares Company utilized the excess application money of the share towards sum due on
allotment and subsequent calls. All dues were received except allotment and calls money on 300
shares. Holder of these shares failed to pay calls money. Company decided to forfeit these share
after calls.
Req; entries of allotment, calls and share forfeiture. 5
Or
Paul Smith Ltd has forfeited 800 equity shares of Rs 100 issued at premium of Rs 20 against
default in payment of allotment and calls money Rs 75 including premium and reissued at Rs 80 to a
new subscriber for Rs 100 paid.
Req: entries of share forfeiture, re issue and transfer of the balance of forfeited amount to the
capital reserve.
13.a) John Players Ltd has acquired business of a Springwood company at an agreed value Of Rs
720,000. Asset taken over and liabilities assumed are Equipment & tools Rs 30,000. Furniture Rs
99
45,000. Building Rs 545,000 and creditors Rs 20,000. Company to discharge the purchase price
issued sufficient equity shares of Rs 100 at its 90% value.
Req: entry of the purchase of the business and discharge of the purchase consider. 3
b) Lego ltd has issued its 10,000, 11% debenture par value of Rs 100 at 115 value and repayable at
110% value at its maturity on cash after five years
Req; entries of the issue and redemption of the debenture. 2
st
14. Trial balance of a ltd. company for the year ended 31 December 2010.

Stock(1.1.2010) 90,000 Sales 700,000
Purchase 500,000 Purchase return 20,000
Sales return 20,000 Commission 5,000
Power and fuel 4,000 Interest on Investment 10,000
Insurance 10,000 Commission 50,000
Rent 10,000 Tranfer fees 20,0000
Advertisement 50,000 Provision for bad debt 10,000
Travellers salary 16,000
Establishment charge 2,500
Commission 5,000
Custom duty 15,000
Wages 16,000
Sundry expenditure 25,000
Bad debt 1,000
Adjustments:
a) Stock on 31st December, 2010 was value Rs. 1000,00.
b) Prepaid rent of 5000.
c) Depreciation on Plant and machinery @ 10%.
d) Provision for tax Rs 20000.
Required: i) Trading A/c ii) P/L A/c 5

st
15. The following are the balances of Nero lack Ltd, as on 31 Chatira, 2068.
Particulars Debit Credit
(Rs.) (Rs.)
Bills payable 50,000
Bank Overdraft 25,000
sales 350,000
Investment 165,000
Wages 50,000
purchase 250,000
Fright on purchase 15,000
Sundry Debtors 50,000
Plant and Machinery 2,00,000
Insurance 10,000
Following is the trial balance of Fuji ltd on Dec 31 2020
• Appreciation on Land and building 15% p.a.
• Outstanding wages Rs.17, 000.
• Prepaid insurance Rs 3,000.
Required: a) Adjustment Entries b) work sheet. 5
100
16. Differentiate cost and financial accounting. 5
17.a) What is decentralized purchase? Write its advantages. 2
b) Consider following material purchases and sales
Opening stock 600 units @ Rs. 20 each
Purchase
500 units @ Rs.22 each
100 units Rs. 25 each
200 units@Rs 26
Sales during the period is 1200 units. Organisation does not maintain up-to-date inventory
accounting and applies periodic inventory accounting. Now you are required to calculate total
cost of materials, cost of goods sold and value of closing inventory under FIFO pricing. 3
18 a) Following reasons of disagreement have been detected between cost and financial records.
Net Loss as per Cost Account Rs 60000
Office overhead charged in cost account Rs 10000 and in financial account Rs 20000
Opening stock over charged in Cost account Rs.30000
Dividend received recorded in financial account only Rs 4000
Administrative overhead over charged in cost Rs.3000
Required: Cost Reconciliation Statement 3
b) Following are the details of the work department of an organisation: Standard daily working
hour 8
Standard wage rate per hour is Rs 100.
Average time required for the production of an unit is 15 minutes
Mr A produced 200 units of output working 6 days in a week.
Req: guaranteed wages and wages of Mr A under piece wages system. 2
19. a) What is computerized accounting system? Explain the elements of computerized accounting
system.
Or
Explain features of accounting software.
Group 'C'
Long answer questions
Attempt all questions: (3×8=24)
20. The balance sheet and income statement of Suzan Sweets co, ltd has been illustrated below.
Furthe Liabilities 2010 2011 Assets 2 010 2011
r
Share capital 1700,000 1900,000 Land 400,000 540,000
inform
ation: Share premium 230000 220000 Machinery 1200000 1480000
Retained earning 150000 120000 Stock 100000 80000
a) S Debentures 100000 Account receivable 300000 180000
Bills
a payable 30000 80000 Cash 170000 90000
l
Bank overdraft 5000 10000 Prepaid expenditure 40,000 10000
e
Provision for tax 35000 80000 Preliminary expenditure 40,000 30,000
s
22,50,000 2410,000 22,50,000 2410,000
Rs 8500000
b) Cost of goods sold Rs 395,000.
c) Selling and administrative exp. Rs 255000 depreciation on machinery Rs 60,000.
d) Machinery purchased Rs 340,000.
e) Interest paid Rs 20000
f) Income tax paid Rs 25000
g) Debenture redeemed with premium Rs 10,000.
h) Dividend paid Rs60,000.
Required: Cash flow statement 10
16. Given below the balance sheet of Y Co. Ltd for the previous year. 5
101
21. Panjab National company supplies the following cost accounting records of production of 1000
units of output:
Cost of material Rs 20,000.
Cost of labour Rs 30,000.
Factory overhead Rs 15,000. (based on labour cost)
Office overhead Rs 13,000.
Selling expenses Rs 26,000.
Company has received an offer of manufacturing 200 units of same type of product for which
material cost will decrease by 25% and labour cost by 20%.
Req : Calculation of tender price if company expect 20% profit on tender price. 8
st
22,Trial balance of a ltd. company for the year ended 31 December 2010.
Investment 100,000 Debenture 20,0000
Plant and machinery 50,000 Overdraft 10,000
Goodwill 160,000 Creditors 20,000
Advertisement 2,500 Retained earning 107,000
Commission 5,000
Building 150,000
Cash 16,000
Sundry Debtors 25,000
Loss on discontinued operation 1,000
Dividend 20,000
Salary 80,000
Adjustments:
a) Stock on 31st December, 2010 was value Rs. 1000,00.
b) Salary due for the year Rs 12,000.
c) Depreciation on Plant and machinery @ 10%.
d) Provision for tax 20 %..
Req: Income statement, statement of retained earning and balance sheet under NFRS. 8
OR
Particulars Rs (Dr) Rs(Cr)
Bank charge 500
General expenses 35,600
Advertisement expenditure 13,650
Government bond 150,000
Gross profit 750,000
Profit and loss app a/c 27,800
Bad debt 5,000
salary 90,000
plant 350,000
Cash and bank 334,000
Account receivable 231,400
Account payable 26,600
Provision for taxation 34,000
Tax paid 40,000
Closing stock 43650
Equity shares 400,000
Total 1293800 1293800
i) Depreciation on plant for the year10 %
102
ii) Outstanding salary Rs 10,000
iii) Directors proposed final dividend Rs 25,000 and transfer to general reserve Rs. 35000
iv) Provision made for tax is 30 % for the current year.
Req: profit & loss a/c, p/l appropriation a/c and balance sheet at the year ending Dec
103

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Model Question (NEB)-2078

1. Write any two features of public company.

16. Why cost account is important for an industry? [5]

B) The following information are provided:

Arya Co. Ltd

Particulars Debit (Rs.) Particulars Credit (Rs.)

1. Write any two features of private company.

Required: Journal entries for:

16. Explain how cost is classified on the basis of function. [5]

b) The following information are provided:

20. The trial balance of Shrestha & Co. is given below:

Derby Co. Ltd

Particulars Debit (Rs.) Particulars Credit (Rs.)

16. Explain any three methods of costing. [5]

B) The following information are provided:

XYZ Co. Ltd

Particulars Debit (Rs.) Particulars Credit (Rs.)

22. Following cost information is provided to you:

B. KTM Co. issued 40000, 9% debentures of Rs.10 each

Particulars Dr. Amt Cr. Amt

Particulars Dr.(Rs) Cr. (Rs)

Particulars Amt. Rs Particulars Amt. Rs.

Particulars Dr. Amt. Cr. Amt

21. The balance sheet of a company as on Chaitra 31st are as under:

Group 'B '

Particulars Rs. Particulars Rs.

18. A. Consider the following information;

21. Balance sheet of a company as on 31st Ashad are as follows:

Particulars Rs. Particulars Rs.

Particulars Debit Rs. Credit Rs.

19. Describe the features of accounting software. [5]

Account Heads Debit Rs Credit Rs

21. Sagar Co Ltd. Provides the following information.

Share capital 5,00,000 7,00,000 Fixed asset 6,00,000 7,50,000

19. Difference between manual and computerized accounting. [5]

21. The balance sheets of a Company as on Dec. 31 are as follows:

Particulars Debit (Rs.) Credit (Rs.)

Particular Amount Particular Amount

Required: i) Trading A/c ii) P/L A/c 5

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