ACCOUNTANCY

TIME- 3HOURS. MAX.MARKS 80

GENERAL INSTRUCTIONS

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

compulsory.
2. This question paper is divided into two parts, part A and part
B.
3. Part - A and B are compulsory for all candidates.
4 . Question 1 to 16 and 27 to 30 carries 1 Mark each.
5. Question 17 to 20,31 and 32 carries 3 Mark each.
6.Question form 21,22 and 33 carries 4 Mark each.
7.Question 23 to 26 and 34 carries 6 Mark each.
8. There is no overall choice.however,ab internal choice has
been provided in 7 questions of one mark ,2 questions of three
marks ,1 question four marks and 2 questions of six marks.

PART - A
1.The characteristics of accounting are;
A. Recording
B. Classifying
C. Summarising
D. All of the above
2. Current assets do not includes;
A. Stock
B. Short term investment
C. Prepaid expenses
D. Unearned income
3. Book keeping is a wider concept than accounting .
A. True
B. False
C. Partially true
D. Partially false
4.Given below are two statements,one labelled as Assertion (A)
and other labelled as Reason (R):
Which one of the following is correct?
Assertion (A)
Expenses is the cost of use of things or services for the purpose
of generating revenue.
Reason (R)
Cost of goods sold and depreciation are expenses.
Codes:
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
5.As per dual aspect concept
A. Assets - liabilities - capital
B. Assets - capital - liabilities
C. Assets - liabilities+ capital
D. Capital - assets + liabilities
6.Accounting standards are useful;
A. For investors
B. For outside parties
C. For Auditors
D. For all of the above
7. As a result of the following transaction,the total of
accounting equation will be..........
i. Started business with cash Rs.2,00,000
ii. Purchased furniture Rs. 25,000
iii. Purchased goods on credit Rs.60,000
A. Rs. 2,85,000
B. Rs. 2,25,000
C. Rs. 2,35,000
D. Rs. 2,60,000

*8. Pick out a source voucher / document from the following;

A. Debit voucher
B. Credit voucher
C. Transfer voucher
D. Invoice
9. Example of natural personal account is;
A. Bank account
B. Debtors account
C. Bank account
D. Prepaid expenses account
10. Petty cash book is maintained to record
A. All expenses
B. All petty expenses
C. All petty expenses which are paid in cash
D. All petty cash receipts
11. Subsidiary books are ;
A. Purchase book
B. Bills receivable book
C. Sales return book
D. All of the above
12. Goods sold for cash are recorded in the ;
A. Sales book
B. Cash book
C. Sales return book
D. Petty cash book
13. Credit balance of bank account discloses;
A. Income
B. Expenditure
C. Amount payable by the bank
D. Amount payable to the bank
14. Trial balance does not include;
A. Capital
B. Closing stock
C. Drawings
D. Opening stock
15. A bank reconciliation statement is prepared by;
A. Bank
B. Customers of the bank
C. Creditors
D. Auditor
16. Depreciation for business is ;
A. Expense
B. Income
C. Gain
D. Liability
17. On 1 st April 2019 Atul glass limited purchased a machine
for Rs.90,000 and spent Rs.6,000 on its carriage and Rs. 4,000
on its erection.on the date of purchase it was estimated that
the effective life of the machine will be 10 years and after 10
year it's scrap value will be 20,000.
Prepar machine A/c for 4 years after providing depreciation on
fixed instalment method. Accounts are closed on 31 St March
every year.
18.(A) Show the accounting equation on the basis of the
following transaction and prepare a balance sheet on the basis
of the last new equation;
1. Mukesh started business with cash 80,000
2. Purchased goods for cash 28,000
3. Purchased goods on credit 20,000
4. Purchased furniture for cash 6,000
5.Paid rent 2,000
6. Withdrew cash for private use 3,000

OR
(B)What is the difference between capital expenditure and
revenue expenditure?

19. (A)Enter the following transaction in the journal of siya ram

& sons :-
2023 Rs.
Jan. 1 Siya ram & sons started business with cash 50,000
2 Purchased goods for cash 20,000
4 Purchased goods from subhash 12,000
5 Purchased furniture for cash 6,000
10 Paid cash to Subhash 8,000
16 Purchased goods from Ravi for cash 75,00

OR
(B)Open "T' shape account of our creditor 'Sanjay' and write the
following transactions on the proper side:
1. Purchased goods from Sanjay on Credit for Rs.40,000.
2.Paid to Sanjay ₹25,000
3. Again purchased goods from Sanjay on Credit for ₹16,000.
4. Goods returned to Sanjay for ₹2,000.
5. Paid to Sanjay ₹20,000.

20.Prepare two column cash book from the following

information:
June 1 Cash in hand 2,800
June 1 Cash at bank 7,000
June 10 Discounted a bill of exchange at 1% through 5,000
bank
Cash sale
June 15 6,000
Paid into the bank
June 18 3,000

Paid rent
June 20 700
Bank charges
June 25 100
Withdrawn from bank for personal use
June 30 1,500
June 30
Purchased goods on credit from Vinay
4,000
21. Prepare a trial balance from the following information:
Prepaid expenses 5000
outstanding rent 2000
Bad debts recovered 4000
interest on investment 1000
due to Mohan 5000
bank overdraft 2000
discount allowed 800
due from Vinod 1200
investment 15000
patent 4,000
machinery 6,000
capital 18000

22. From the following particulars, prepare a Bank

Reconciliation Statement:-
(a) Balance as per pass book on 31st March, 2023 Overdrawn
₹15,000.
(b) Cheques drawn on 31st March, 2023 ₹2,000; ₹6,000; ₹2,400
and ₹3,600, but out of these, the last two cheques were not
presented for payment upto 5th April 2023.
(c) Interest on bank overdraft not entered in the cash book
Rs.845
(d) Out-station cheques for Rs.20,000 lodged in the bank on
25th March, 2023 but out of these, cheques worth ₹18,000
were credited in April, 2023.
(e) ₹200 being Chamber of Commerce subscription paid by the
bank under a standing order on 31st March 2023, was not
entered in the cash book.
23. (A)Journalise the following transaction,post them into
ledger balance the accounts and prepare a trial balance:-
2023 Shyam Sunder & Sons commenced business 80,000
with cash
March 1
March 2 Purchased goods for cash 36,000
March 3 Machinery purchased for cash 4,000
4 Purchased goods from : Raghu 22,000
Dilip 30,000
6 Returned goods to Raghu 4,000

8 Paid to Raghu ,in full settlement of his 17,500

 account
10 Sold goods to Mahesh Chand & co. For Rs.
32,000 at 5% trade discount
13 Received cash from Mahesh Chand & co. 19,800
Discount allowed
200
15 Paid cash to Dilip 14,850
Discount received 150
20 Sold goods for cash 25,000

24 Sold goods for cash to sudhir Ltd 18,000

25 Paid for rent 1,500

26 Received for commission 2,000

28 Withdraw by proprietor for his personal use 5,000

28 Purchased a fan for proprietor 's house 1,200

OR
(B)Record the following transactions in the Sales Book of
Ganesh Electronics, Kolkata (West Bengal) assuming CGST @
9% and SGST @9%:
2023
Jan 3 Sold to Ruchika Electronics, Kolkata, Vide Invoice No. 431
5 Colour T.V. Sets @ ₹20,000 each
Less: Trade Discount 20%.

10 Sold to Garima Electronics, Patna (Bihar), Vide Invoice

No.432
10 Washing Machines @ ₹8,000 each
Less Trade Discount 25%.

12 Sold to Raghav & Sons, Kolkata, Vide Cash Memo No. 2510
6 Colour T.V. Sets @ ₹18,000 each
Less Trade Discount 15%.
16 Sold to Nitin Trading Company, Ranchi (Jharkhand) Vide
Invoice No. 433.
8 Music Systems @ ₹15,000 each
10 Colour T.V. Sets @ 22,000 each
Less: Trade Discount 20%
24.(A)Rectify the following errors assuming that a suspense
account was opened. Ascertain the difference in trial balance.
(a) Credit sales to Arun ₹7,000 were posted to the credit of his
account.
(b) Credit purchases from Brij ₹9,000 were posted to the debit
of his account as ₹6,000.
(c) Goods returned to Charu ₹4,000 were posted to the credit
of her account.
(d) Goods returned from Deepika *1,000 were posted to the
debit of her account as ₹2,000.
(e) Cash sales 2,000 were posted to the debit of sales account
as ₹5,000.

OR

(B)X Ltd. purchased on April 1, 2019 a second hand plant for

₹4,00,000 and immediately spent 80,000 for its overhauling and
20,000 for its installation. On Oct., 1, 2022 the plant became
obsolete and was sold for 2,00,000. Depreciation is provided at
10% p.a. on original cost method. Accounts are closed each
year on 31st March.
Show the necessary Ledger Accounts assuming that:
(a) 'Provision for Depreciation Account' is not maintained, and
(b) Provision for depreciation account is maintained.
25.Pass entries in the books of Mukul Roy & Sons, assuming all
transactions have been entered within the state of West
Bengal, charging CGST and SGST @ 6% each:
2023
April1 Purchased goods for ₹1,50,000 from S. Banerjee.

Sold goods for 2,50,000 to Aditya Sangma.

6

Returned goods to S. Banerjee for ₹10,000.

8
Aditya Sangma returned goods for ₹8,000,
15

Printing & stationery expenses of ₹5,000 paid in cash.

18
Goods withdrawn by Proprietor for personal use ₹20,000.

24
Goods destroyed by fire ₹15,000.
27 Payment made of balance amount of GST.

30

26.The following balances appeared in the books of Vishal

Stores on 1 st April, 2023:
Assets:
Cash ₹15,000; Bank balance ₹5,000; Stock ₹40,000; Furniture
₹3,600; Debtors ₹24,000 (X ₹6,000; Y ₹8,000 and Z ₹10,000).
Liabilities:
Bank Loan ₹10,000; Creditors 12,500 (Ajay ₹5,000, Vijay

₹7,500).
Following transactions took place during April 2023:
April 2 Bought goods from Kailash for 20,000 at a trade
discount of 10% and cash discount of 2%. Paid 60% amount
immediately.
4
Sold goods to X for ₹9,000.
Received 14,800 from X in full settlement of his account.
5 Cash deposited into bank 10,000.
6 Cheque received from Y for ₹7,850 in full settlement of his
account. This cheque was immediately deposited into bank.
Received a cheque from Z ₹2,000.
8
Cheque received from Z deposited into bank.
Cheque received from Y dishonoured.
10
Cash sales ₹15,000; Out of this amount ₹12,000 deposited
12
into bank.
15
Amount due to Ajay paid by Cheque.
16
Old newspapers sold ₹50.
16
Old furniture sold ₹750
18
Z became insolvent and 40 paise in a rupee could be
20 received from his estate by cheque which is deposited into
20 bank.
Purchased goods from Gopal and paid by cheque ₹8,000.
Sold half of the above goods to Chanderkant at a profit of
30% on cost.
22
Proprietor withdrew for private use ₹2,000 from office and
₹3,000 from bank.
24
Paid salary to Motilal by Cheque ₹2,000.
 Paid Rent by cheque ₹1,500.
25 Paid trade expenses ₹500.
30
30
30

Part-B
27. Current liabilities are expected to be paid ;
A. Within 3 months
B. Within 6 months
C. Within 1 year
D. Within 2 year
28. Outstanding salary is ;
A. Real account
B. Personal Account
C. Nominal account
D. None of these
29. Single entry system of book keeping is ;
A. Inaccurate
B. Unsystematic
C. Unscientific
D. All of these
30. When closing capital is more than opening capital,it
denotes;
A. Profit
B. Loss
C.No profit no loss
D. Profit ,if there is no introduction of fresh capital
31. Draw up the Balance Sheet of Kesri & Sons as at 31st March,
2023 from the lowing information in the order of liquidity.
Cah in hand 11,200; Sundry Creditors 28,800; Bills Payable
₹3,500; Bills receivable 5,300, Sundry Debtors 18,000.
Machinery as on April 1, 2022 Rs.85,000 and Depreciation
provided for the year Rs.8500 Furniture and Fixtures as on 1
April, 2022 ₹21,000 and Depreciation provided Ithe year 2,100,
Closing Stock ₹15,400.
Proprietor's Capital Account ₹90,000, His drawings during the
year ₹8,000. Net profit as per profit and loss account 31,000.
32. Anurag keeps incomplete records of his business. He gives
you the following information:
Capital at the beginning of the year. 8,00,000
Capital at the end of the year. 6,20,000
Drawings made during the year. 2,50,000
Additional Capital introduced during the year. 30,000
You are required to calculate profit or loss made during the
year.
33. (A)Kavish ,who keeps his books on single entry system,
Started his business on 1st April 2016, with a capital of
Rs.3,00,000. At the end of the year i.e.,on 31 St March 2017,
the position of assets and liabilities was as under;
Particulars Amount
Cash at bank 25,000
Furniture 2,20,000
Machinery 75,000
Debtors 40,000
Stock 60,000
Creditors 70,000
Bills payable 20,000
During the year ,he introduced Rs. 40,000 as additional capital
and withdrew Rs. 15,000 for his personal expenses.
Prepare a statement of profit and loss to calculate profit or loss
for the year ended on 31 March 2017.
OR
(B)From the following particulars, prepare a profit & loss
account for the year ending 31 St March 2023;
Particulars Amount Particulars Amount
Gross profit 10,52,50 Discount allowed 15,000
0
Trade expenses 10,000 Lighting 3,900
Carriage on sales 50,000 Commission received 4,200
Office salaries 79,000 Bad debts 6,000
Postage 3,600 Discount cr. 3,000
Office rent 37,500 Interest on loan 11,000
Legal charges 2,000 Stable expenses 7,000
Audit fee 8,000 Export duty 11,500
Donation 5,500 Miscellaneous income 2,500
Sundry expenses 1,800 Unproductive expenses 20,500
Selling expenses 26,600 Traveling expenses 12,500

34. From the following trial balance of Seema garments as at 31

St March 2023, prepare adjustment entries, trading and profit
and loss account and balance sheet :
Dr. Cr.

Stock at commencement 15,000

Purchase and sales 1,09,000 1,80,000

Manufacturing wages 8,000

Fuel ,power and lighting 12,000

Salaries 11,000

Income tax 5,500

Loan to x at 10% p.a. 5,000

Interest on x ' s loan 300

Commission received 45,00

Rent 4,000

Rent owing 6,00

Furniture (include furniture of Rs. 1000 purchased on 1 st oct. 2022) 5,000

B/R and B/P 6,000 1,600

Plant 72,000

Debtors and creditors 28,000 13,000

Capital 1,00,000
Cash 19,500

3,00,000 3,00,000