AMBITION ACADEMY

Model Questions
SET A
Class: XI Subject: Principle of Accounting
Full Marks: 75 Time: 3 hours

All questions are compulsory.

Group A
Very Short Question
1. Give the meaning of accounting in two to three effective sentences. 1
2. Mention any three important of booking. 1
3. Write the meaning of business entity concept. 1
4. Differentiate between journal and ledger. 1
5. Write the meaning of e-banking. 1
6. Write in brief about error of compensation with an example. 1
7. Write the meaning of retrospective effect on deprecation. 1
8. Define provision. 1
9. Differentiate between capital expenditure and revenue expenditure. 1
10. Write any two objective of Government accounting. 1
11. Write the meaning of budget expenditure. 1
Group B
Short Question (5×8=40)
12. A. Describe any three objective of accounting. 3
B. Following transactions are given you to prepare Accounting Equation: 2
a) Business started with cash Rs 50,000 and Stock Rs 20,000
b) Goods sold costing Rs 12,000 for Rs 10,000 on credit.
c) Paid insurance Rs 4,000 and still due Rs 500
d) Goods purchase from Ram for Rs 15,000.

13.
A. Following cash and banking transactions are given:
Bhadra 1 Cash balance Rs.45, 000 and Bank balance Rs. 80,000
Bhadra 7 Goods purchase for Rs. 40, 000.
Bhadra11 Paid electricity charges by chequeRs. 1,000.
Bhadra 20 Withdrawn from bank for official use Rs 10,000.
Required: Triple column cash book. (3)

B. A Retailer provides the following information.

Chaitra 5 Sales to Hareramsupplirers, Kalanki
12 dozen eggs @ Rs 10 each
25 Kg Basmati Rice @Rs 100 per kg
(10% trade discount only on egg)
Chaitra 14 Sales to Sita Ram suppliers, Kalimati
10 kg flour @Rs 40 per kg
5Kg MungDaal @ Rs 90 per kg
(10% trade discount)
Required: Sales book 2

14. Following information is given:

a. Cash book shows debit bank balance Rs 18,000
 b. Various cheque were issued for Rs 20,000 but not in cashed in bank Rs 12,000
c. Interest on overdraft charged by bank RS 3,000
d. Cheque deposited into bank for collection Rs 38,000 but bank credited cheque of Rs 28,000 only.
e. A customer directly deposited into bank Rs 8,000
f. Credit side of pass book over casted by Rs 1,000
Required: Bank reconciliation statement

15. A. Rectify the following errors before preparing trial balance. (3)
a. Furniture purchased for Rs 20,000 was recorded in purchase book.
b. Wages paid to Ram Rs 10,000 was debited to Ram's account.
c. Goods sold for Rs 2,000 was not recorded at all.

B. The following information is extracted from the trial balance of a business

Particulars Debit Credit
Rs Rs
Sundry debtors 82,000
Provision for bad debt 12,000
Additional information
a) Further Bad debt written off Rs 7,000
b) A provision for bad debt is created @ 10%
Required: Provision for bad debt account 2
OR
Write any five differences between capital expenditure and revenue expenditure. (5)

16.
An adjusted trial balance of a trading concern is given below
Particulars Dr. Particulars Cr.
Land and building 400,000 Capital 425,000
Debtors 225,000 Creditors 120,000
Bank balance 145,000 Sales 515,000
Salary 80,000 Loan 250,000
Office expenses 40,000
Purchase 380,000
Bills receivable 25,000
Rent 15,000
Total 13,10,000 13,10,000
Additional information
a) Prepaid Rent Rs 3,000
b) Land appreciated by 10%
c) Salary outstanding Rs. 1500.
Required: Adjusted Trial balance5

17. A company purchases Machinery for Rs 400,000 on 1st January 2018. The company purchases another
machine for Rs 300,000 on 1st July 2019. On 1st January 2020machine purchase on 1st Jan 2018 sold for
Rs. 240,000 and on the same date another machine purchase for Rs 200,000. The company closes the
account on end of December each year and depreciation was charged on 10% p.a underwritten down
method.
Required: Machinery account for 2018 to 2020 5
 18. A social club provides you the following balance sheet and receipt & payment account to you.
A Football club
Balance sheet As on 1st Jan. 2020
Liabilities Amount Assets Amount
Capital fund 56,000 Cash balance 5,000
Salaries due 4,000 Outstanding Subscription 2,500
Furniture 24,000
Building 28,500
Total 60,000 Total 60,000
A Football club
Receipt and Payment account
For year ending 31st Dec. 2020
Receipts Amount Payments Amount
To balance b/d 5,000 By salaries 30,000
To subscription 32,000 By News paper 3,500
To life membership fees 8,000 By Administrative expenses 5,000
To sale of grass 5,000 By insurance 5,500
To donation 20,000 By Investment 10,000
By Training expenses 6,000
By balance c/d 10,000
Total 70,000 70,000
Additional information
a) Subscription due for the year 2015 is Rs 6,000
b) Furniture and building depreciated by 10%
c) Half of donation is capitalized
d) Salary prepaid Rs 5,000
Required: a) Income and Expenditure A/C b) Balance Sheet (3+2)

19.
A. Mr. Ram Shankar started business investing cash Rs2500,000. He keeps his books under single entry
book keeping system. His position at the end of Chaitra 2075 was as follows.
Machinery Rs 90,000 Bills payable Rs 15,000
Furniture Rs 25,000 Debtors 60,000
Creditors Rs 10,000 Cash balance Rs 11,000
He invested additional capital Rs 20,000 and withdraw Rs24,000 during the year.
Required: a) Closing statements of affairs b) Statement of profit and loss (1+1)

B. The following transaction of District education office of Sindhuli.The office submitted payment order
from to the DTCO Sindhuli and DTCO made all payment through cheque.
Falgun 1 Issued a cheque of Rs 40,000 to purchase furniture
Falgun 10 Machinery bill of Rs. 18,000 submitted by Officer Mr. Krishna was cleared against machinery
advance of Rs. 12,000 and balance was paid.
Falgun 25 Out of Total Employee Remuneration for the month of falgun of Rs 2,20,000, Rs 40,000 P.F.,
Rs 10,000 for P.F. loan and Rs 5000for income tax were deducted and rest paid by cheque.
Required: Journal Vouchers 1+1+1

Or
Explain the parts of budget sheet. (5)
 Group C
Long Question (3×8=24)

20. Following information is given below.

a. Ram started a business by cash Rs. 100,000
b. Purchased goods from Sita of Rs. 10,000
c. Sold goods on cash Rs. 25,000.
d. Goods return to Sita of Rs. 1000
e. Wages and salary paid Rs. 2,000.
f. Paid to SitaRs. 8500 in full settlement of her account.
Required:-
a. Journal entries
b. Necessary ledger
c. Trail balance (3+4+1)
21. The following trial balance of Lovely Trader on chaitra 30, 2076 is given below.
Particulars Dr. amount Particulars Cr. amount
Purchases 90,000 Sales 150,000
Opening stock 10,000 Capital 50,000
Selling expenses 5,500 Interest on investment 2000
Interest on bank loan 3,500 Bank loan 16,000
Debtors 25,000 Creditors 8,000
Bad debt 2,000 Commission 4,000
Insurance 1000
Salaries 20,000
Wages 16,000
investment 20,000
Rent 4,000
Cash balance 9,000
Machinery 24,000
Total 230,000 Total 230,000
Additional information
a) Closing stock Rs 30,000
b) Depreciation on machinery 10% p.a
c) Salary payable Rs 4,000
d) Commission earn but not received Rs 2,500
e) Further bad debt Rs 1,000.
Required:
a. Income statement
b. Balance sheet. (4+4)

22.
A. Following transactions are taken from government office. Assuming that the all expenditures payment
orders are submitted to DTCO and DTCO paid the expenditure at the end of the month.
Magh 2: Paid rent for the month of Magh and Falgun @ Rs 10,000 per month with advance.
Magh 3: Received bank order Rs 180,000 and budget order release Rs. 230,000
Magh 25: TADA advance of MrDayaram of Rs.12, 000 is cleared as he submitted the bill of Rs 15000
for actual expenditure.
Magh 30: Issued a cheque of Rs1,65,000 for the payment of employee remuneration for the monthafter
deducting provident fund of Rs40,000, income tax of Rs 5,000 and providenloan of Rs 10,000
 Required: - Bank Cash Book.

B.
The following transaction of a government office is provided to you.
Budget head Annual budget Budget balance Expenses of
Chaitra
Employee remuneration 420,000 65,000 12,000
Allowances 70,000 42,000 6,000
Travelling expenses 26,000 11,000 9,000
House Rent 60,000 15,000 5,000
Dress 15,000 4,000 1,000
Furniture 29,000 5,000 1,000
Total 620,000 142,000 33,000

Additional information:
i)Uncleared advance of furniture Rs 500

Required: Statement of expenditure for the month of Chaitra showing closing Bank balance (4)

Or
What is government accounting? Explain any five features of it.(3+5)
 Set B
Subject: Principle of Accounting Class – XI F.M -75
All questions are compulsory.
Group- A
Give very short answer to the following questions. (1*11=11)
1. Give the meaning of book keeping and mention it’s any two objectives.1
2. Write in brief about the scope of accounting. 1
3. Write the clear meaning of going concern concept with suitable example. 1
4. Explain about the types of accounts. 1
5. What do you mean by contra entry? 1
6. Write in brief about two sided errors. 1
7.Write the meaning of prospective effects on depreciation. 1
8. What is dividend equalization fund? 1
9. Differentiate between capital reserve and revenue reserve. 1
10. What do you mean by treasury single account? 1
11. Write the meaning of ‘budget transfer’. 1
Group B
Give short answer to the following questions. (5*8=40)
12A. Write in brief about accounting cycle with figure. 3
B. following transactions are given to you to prepare Accounting Equation. 2
a. Started business with cash RS. 100000 and Bank RS. 300000.
b. Purchased goods worth RS. 100000 from A&B suppliers.
c. Sold goods worth RS.50000 in cash.
d. Paid wages RS. 12000, Rs. 10000 by cheque & RS. 2000 by cash.
13. A. Following cash and banking transaction are given
Poush1: Cash in hand RS. 11000 and balance at bank RS. 17500.
Poush 5: Sold goods and received the payments in cash RS.4000 and by cheque Rs. 6500.
Poush 10: Cash deposited into bank Rs. 3000.
Poush 20: Received cash Rs. 2800 from Neema after deduction discount of Rs. 200.
Required: Triple column cashbook. 3
B. Following information is provided:
2078/03/01Purchased books from pustakBhandar
- 200 units accountancy @ Rs.250 each.
- 300 units mathematics @ Rs.225 each.
2078/03/05Purchase books from Books Distributor of Rs. 15500 at 10% trade discount.
2078/03/08 Purchase stationery from SagoonStationery for cash Rs.14000.
Required: Purchase Book. 2
14. following information are given:
a. On Chaitra 30, Balance as per PassBookis Rs.180000.
b. Cheque deposited into the Bank Rs.4000 was recorded in cash Book Rs.400 only.
c. Cheques were issued for Rs. 25000 but cheque of Rs.20000 only were presented for payment.
d. Bank charges charged by the Banks Rs. 500.
e. Interest credited by Bank Rs. 200 but debited in cash book Rs. 2000.
f. Rs. 6000 directly deposited in to the bank by a customer, but not recorded in cash book.
Required: Bank Reconciliation Statement. 5
15. A. The following errors were located before the preparation of trial balance:
a. Purchase of Rs. 3000 from Mr. A was recorded as sales to him.
b. Salary paid Rs. 2500 to Prakash has been wrongly debited to his account.
c. Purchase book was overcast by Rs. 2000.
Required: Entries for rectification. 3
B. Following transaction are given:
a. Bad debts Rs. 5000.
b. Opening balance of provision for bad debts Rs. 6000.
c. Closing debtors Rs. 120000.
d. Provision for bad debts to be maintained @5%.
Required: Provision for bad debts account. 2
16. An unadjusted trial balance of a company is given below:
Particulars Debt (Rs) Credit (Rs)
Capital 200000
Sales 300000
Purchases 150000
Purchase return 10000
Sales return 20000
Plant and Machinery 130000
Wages 70000
Debtors 30000
Creditors 180000
Salaries 90000
Furniture 120000
Cash at bank 73000
Insurance 7000
Total 690000 690000
Adjustments:
i. Outstanding wages Rs. 10000.
ii. Depreciation on plant and furniture @ 5%.
iii. Prepaid insurance: Rs. 2000.
Required: Trial Balance Adjusted. 5
18. Nepal Cotton Mills purchased a machinery on 1 st January, 2018 for Rs. 100000 on 1st July, 2019 it purchased
another machine for Rs. 40000 on 31st march, 2020 it sold off the first machine (purchased in 2018) for Rs.
53000 and on the same date purchased new machinery for Rs. 100000. Depreciation is provided at 20% p.don
the straight-line method. Accounts were closed each year on 31 stDecember.
Required: Machinery account for the first three years. 5
18. Red cross provides following information Balance sheet as on 1|1|2020
Capital& Liabilities Amount Assets Amount
Capital fund 4,00,000 Fixed 3,00,000
Loan 60,000 Investment 1,00,000
Cash at bank 60,000
Furniture 80000 Machinery 100000
Total 4,60,000 Total 4,60,000
Receipt & payment account as on 31/12/2020
Receipts Amount Payments Amount
To balance b/d 60,000 By tournament 10,000
expenses
To subscriptions 50,000 By wages 20,000
To Entrance fees 30,000 By printing 7,500
To interest on 5,000 By general expenses 12,000
investment
To sale of news paper 5,000 By telephone charges 2000
By balance c/d 98,500
Total 1,50,000 Total 1,50,000
Additional Information
a) Subscription due Rs 5,000
b) Prepaid wages Rs 2,000
Required: a) Income & Expenditure A/c (2)
b) Balance sheet (3)
19. A. The position of Mr. Ganesh as on 31st Chaitra 2077 is as below:
Particulars Amount (Rs)
Cash in hand 6.000
Cash at bank 25,000
Equipment 30,000
Inventory 4,000
Account receivable 12,000
Bills payable 20,000
Opening capital 27,000
Required:
a) Closing statement of affairs. (1)
b) Statement of profit & loss account assuming Rs 5,000 drawing and Rs 2,000 additional capital. (1)
B. The following transactions of District education office Bara. The office submitted payment order form to the
DTCO Bara and DTCO made all payments through cheque.
Magh 5: Purchase of furniture Rs 10,000.
Magh 20: Travelling expenses advance of Mr. Giri Rs 17,000 has been cleared against the bills of Rs 19,500 by
issuing cheque for balance amount.
Magh 28 Out of the total semuneration to employee of the month Rs 33,000 (including Government contribution
to PF) and local allowances of Rs 1,500 were distributed after deducting Rs 6,000 for PF Rs 3,00 for social
security tax and Rs 700 income tax.
Required: Journal Voucher (3)
OR;
Explain the accounts involved in the bank cash book (5).
Group C
Answer the following question in long. (3*8=24)
20.Following transactions are given:
2078\1\1 Started business with cash Rs 50,000
1\5 Purchased goods for cash Rs 20,000
1\10 Purchase furniture for Rs 10,000
1\30 Paid salary Rs 3000
1\31 Received commission Rs 1,000
Required:
a. Journal entries (3)
b. Necessary ledger (4)
c. Trial balance (1)
21. The following trial balance is related to Sangita Enterprises as on 31 st Chaitra 2077.
Accounts Titles Dr (Rs) Cr (Rs)
Cash 15,000
Prepaid insurance 5,000
Office supplies 8,000
Office equipment 60,000
Drawing 4,000
Accumulated depreciation 10,000
Account payable 12,000
Share capital 45,000
Service revenue 60,000
Utility expenses 15,000
Salaries 20,000
Total 1,27,000 1,27,000
Additional information:
i. Outstanding salaries Rs 4,000
ii. Supplies in hand Rs 3,000
iii. Prepaid insurance expired Rs 1,000
iv. Depreciation on equipment Rs 4,000
v. Provision for tax @ 25%
Required:
a. Statement of profit or loss. (4)
b. Statement of financial position. (4)
22. A. The following Transactions are taken from government office. The office submitted payment order to
DTCO and DTCO paid the expenditure at the end of Chaitra.
Chaitra 6 Paid Rs 15,000 as Travelling expenses in advance to Mr. Acharya.
Chaitra 8 Paid Rs 20,000 to purchase office materials.
Chaitra 15 Mr. Acharya’s advance cleared on the basis of documents submitted by him.
Chaitra 28 After deducting Rs 10,000 for PF contribution (including government contribution) social security
tax Rs 500 and Rs 1,000 for income tax at source, the rest amount was distributed as employee remuneration.
The deducted amounts were deposited into the concerned office on the same day
Required: Bank Cash Book (4)
B. The following particulars are given:
Annual Budget (Rs) Budget items Expenditure up to Expenditure of Aswin
Bhadra (Rs) (Rs)
4,26,000 Employee 66,000 63,000
Remunerations
24,000 Local allowances 4,000 2,000
40,000 Office related 8,000 4,000
 expenses
60,000 Miscellaneous 16,000 10,000
expenses
48,000 Furniture & fixtures 20,000 8,000
8,000 Contingencies regular - -
6,060,000 Total 1,14,000 87,000
Additional information:
Unclear furniture advance Rs 8,000
Required: Statement of Expenditure (4)
OR;
What do you mean by government accounting system? Describe 7 features of new accounting system in
detail. (8)