Time Allowed: 3 hours Maximum 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 B.
3. Part - A and B are compulsory for all the candidates.
4. Question Nos. 1 to 16 and 27 to 30 carries 1 mark each.
5. Questions Nos. 17 to 20 and 31 and 32 carries 3 marks each.
6. Questions Nos. from 21,22 and 33 carries 4 marks each
7. Questions Nos. from 23 to 26 and 34 carries 6 marks each
8. There is no overall choice. However, an internal choice has been provided in 7 questions of one
mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.
Part A
1. Assertion (A): Accounting information must be reliable. Reliability implies that the information [1]
should be presented in such a simple and logical manner that they are understood easily by their
users.
Reason (R): Accounting is influenced by personal judgements.

a) Both A and R are true and R is the b) Both A and R are true but R is not the
correct explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

OR
Which of the following does not represents a business transaction?

a) Capital introduced in the business b) Efficiency of Management

c) Assets sold and money introduced in d) Goods are sold on credit

the business
2. Which of the following statements about source document is incorrect? [1]
i. They are required for audit and tax assessments.
ii. They do not serve as legal evidence in case of a dispute.
iii. These documents are written and authentic proof of the correctness of the recorded
transaction.
a) only these documents are written and authentic proof of the correctness of the
recorded transaction.

b) only they do not serve as legal evidence in case of a dispute

c) all of these
 d) They do not serve as legal evidence in case of a dispute and these documents
are written and authentic proof of the correctness of the recorded transaction.
3. Which equation is correct out of the following: [1]
i. Liabilities = Assets + Capital
ii. Assets = Liabilities - Capital
iii. Capital = Assets + Liabilities
iv. Capital = Assets - Liabilities

a) Statement (ii) is Correct. b) Statement (iii) is Correct.

c) Statement (i) is Correct. d) Statement (iv) is Correct.

OR
Rohit is a sole proprietor has the following balances: Premises- Rs.55000, Cash at bank- Rs.6500,
Inventory – Rs.12500 and creditors- Rs.14000. Find out the amount of capital.

a) Rs.15000 b) Rs.31000

c) Rs.35000 d) Rs.60000
4. Rule of Debit and Credit for Impersonal account is [1]

a) Dr. all expenses and Cr. all gains & Dr. what goes out and Cr.
what comes in
b) Dr. the receiver and Cr. the giver
c) Dr. all expenses and Cr. all gains
d) Dr. what goes out and Cr. what comes in
OR
Goods purchased on credit will increase the

a) Debtor b) Drawings

c) liability d) Capital
5. Books of Account are written on the basis of: [1]

a) Both the Source Document and b) Transfer Voucher

Accounting Vouchers

c) Accounting Vouchers d) Source Document

6. Provision is made: [1]

a) To strengthen the financial position b) To face the financial difficulties

c) To provide for unknown losses d) To provide for known losses

7. According to Money Measurement Concept only those transactions are recorded in accounting: [1]
a. Which are capable of being expressed in terms of money
b. Which cannot be expressed in terms of money
c. Both of (a) and (b) transactions
d. Which are not capable of being expressed in terms of money

a) Statement (b) is correct. b) Statement (d) is correct.

 c) Statement (a) is correct. d) Statement (c) is correct.
8. Credit means: [1]

a) an increase in liability b) an increase in asset

c) a decrease in liability d) a decrease in proprietor's equity

OR
Consider the following statements with regard to the accounting treatment of various accounts:
i. Increase in asset is debited and decrease in asset is credited.
ii. Increase in expenses/losses is debited and decrease in expenses/ losses is credited.
iii. Increase in liabilities is credited and decrease in liabilities is debited.
iv. Increase in capital is credited and decrease in capital is debited.
Identify the correct statement/statements:

a) i and ii b) i, ii, iii and iv

c) i, iii and iv d) ii and iii

9. Which of the following correctly differentiates between provision and reserves? [1]

a) Provision is made for a known liability or expense the amount of which is not
certain whereas reserve is created for strengthening the financial position of
the business.
b) A provision is a charge against profit whereas reserve is an appropriation of
profit.
c) All of the above
d) Provision is deducted before calculating taxable profits whereas a reserve is
created from profit after tax and therefore it has no effect on taxable profit.
10. Which of the following is not a characteristic of accounting? [1]

a) Analysis b) Recording non-monetary transactions

c) Summarising d) Classifying
OR
The process of recording, classifying and summarizing all business transactions in order to know the
financial result is called:

a) Book-keeping b) Journalizing

c) Accountancy d) Accounting
11. The things or properties which helps in the smooth functioning of the business and which are [1]
owned by the business are called ________ of the business.

a) Assets b) Capital

c) Liabilities d) Stock
12. Calculate the amount of purchase return. Return to Aman Book House, 5 Dozen Pencils@Rs.30 [1]
per Dozen, Trade discount @10%

a) Rs.165 b) Rs.155
 c) Rs.135 d) Rs.150
13. Payment to a creditor means [1]

a) Increase in asset and decrease in b) Decrease in asset and decrease in

liability. liability.

c) Decrease in asset and increase in d) Increase in asset and increase in

liability. liability
14. Which of the following is the Capital expenditure? [1]

a) Repair expenses of building b) Wages paid for construction

of building

c) Wages paid for cleaning of building d) Advertisement Expenses

15. The advantages of Purchase Book are: [1]

a) All of these b) Easiness in preparing ledger

c) Knowledge of total price of goods d) Price of goods purchased from each

purchased on credit supplier
16. The total of sales book will be posted to the: [1]

a) Credit side of Sales Return A/c b) Debit side of Sales Return A/c

c) Credit side of Sales A/c d) Debit side of Sales A/c

17. Explain Money Measurement Principle. [3]
OR
Kangna of Noida, Uttar Pradesh returned goods of ₹ 50,000 purchased from Nilesh of Rohtak,
Haryana. Rates of CGST and SGST are 6% each while that of IGST is 12%. Pass the Journal entry in the
books of Nilesh.
18. Define the basic accounting terms with an example: [3]
i. Stock
ii. Business transactions
19. The following Trial Balance is drawn from the books of Brown Traders: [3]
TRIAL BALANCE
as on ...

Debit Balances ₹ Credit Balances ₹

Building 60,000 Capital 73,600

Machinery 17,000 Fixtures 5,600

Returns Outward 2,600 Sales 1,04,000

Bad Debts 2,800 Debtors 60,000

Cash 400 Interest Received 2,600

Discount Received 3,000

Bank Overdraft 10,000

 Creditors 50,000

Purchases 1,00,000

2,45,800 2,45,800

You are required to comment on whether it is correct or not. If this Trial Balance is not correct,
draw the correct one.
20. Explain any two Source Documents. [3]
21. Enter the following transaction in a double column cash book of M/s. Mohit Traders for January [4]
2017:

01 Cash in hand 3,500

Bank overdraft 2,300

03 Goods purchased for cash 1,200

05 Paid wages 200

10 Cash sales 8,000

15 Deposited into bank 6,000

22 Sold goods for cheque which was deposited into bank same day 2,000

25 Paid rent by cheque 1,200

28 Drew from bank for personal use 1,000

31 Bought goods by cheque 1,000

22. Prepare Bank Reconciliation Statement from the following: [4]

(i) Debit balance as per the Cash Book. 30,000

(ii) Cheques deposited but not cleared. 2,000

(iii) Cheques issued but not presented for payment. 3,000

(iv) Bank interest. 400

23. Transactions of Rajesh for April, 2023 are given below. Journalise them. [6]

2023 ₹

April 1 Rajesh started business with cash ₹ 50,000 and cheque ₹ 1,00,000

April 1 Paid for repair of premises 10,000

April 2 Cash deposited into bank 70,000

April 3 Bought goods for cash 5,000

April 4 Drew cash from bank for office 1,000

April 13 Bought goods from Sanjay 22,500

April 13 Paid cartage on goods purchased 500

 April 20 Sold goods to Karan 15,000

April 24 Received from Karan on account 10,000

April 28 Paid to Sanjay by cheque 22,500

April 29 Placed an order for goods with Deewan & Co. 3,000

April 30 Cash sales 8,000

April 30 Paid salary to Raman 3,000

April 30 Paid for stationery 250

April 30 Received balance payment from Karan

24. Trial Balance of Anant Ram did not agree. It showed an excess credit of ₹ 16,000. He put the [6]
difference to Suspense A/c. Subsequently the following errors were located:
a. Cash received from Mohit ₹ 4,000 was posted to Mahesh as ₹ 1,000.
b. Cheque for ₹ 5,800 received from Arnav in full settlement of his account of ₹ 6,000 was
dishonoured. No entry was passed in the books on dishonour of the cheque.
c. ₹ 800 received from Khanna, whose account had previously been written off as bad, was
credited to his account.
d. Credit sales to Manav for ₹ 5,000 was recorded through the purchases book as ₹ 2,000.
e. Purchases book undercast by ₹ 1,000.
f. Repairs on Machinery ₹ 1,600 wrongly debited to Machinery account as ₹ 1,000.
g. Goods returned by Nathu ₹ 3,000 were taken into stock. No entry was recorded in the books.
25. A machine was purchased on 1st Jan. 2000 for Rs 19,400 and Rs 600 were spent on its [6]
installation. On 1st July 2000, in the same year, additional machinery costing Rs 10,000 was
purchased. On 1st July, 2002, the machine purchased on January 2000, having become useless
was sold for Rs 8,000 and on the same date a new, machine was purchased at a cost of Rs
15,000. Depreciation is provided annually on 31st December @ 10% per annum on original cost.
Prepare Machinery Account from 1st Jan. 2000 to 31.12.2002.
OR
Calculate annual depreciation and rate of depreciation under Straight Line Method in each of the
alternative cases:

Purchase Price of Installation Estimated Scrap Estimated Useful Life

Case
Machinery (₹) Charges (₹) Value (₹) (in Years)

(a) 1,80,000 20,000 10,000 5

(b) 4,75,000 25,000 50,000 5

(c) 90,000 10,000 20,000 10

(d) 3,40,000 60,000 40,000 10

(e) 90,000 10,000 20,000 4

26. On 31st December, 2013, the Pass Book of a merchant shows the credit balance to be ₹ 3,357. [6]

The cheques and drafts sent to the bank but not collected and credited amounted to ₹ 790 and
 three cheques drawn for ₹ 300, ₹ 150 and ₹ 200 respectively were not presented for payment till
31st January next year.
Bank has paid a bill payable amounting to ₹ 1,000 but it has not been entered in the Cash Book
and a bill receivable of ₹ 500 which was discounted with the bank was dishonoured by the
drawer on due date.
The bank has charged ₹ 13 as its commission for collecting outstanding cheques and has allowed
interest ₹ 10 on the trader's balance.
Prepare a Bank Reconciliation Statement and show the balance as shown in the Cash Bank.
OR
On 30th June, 2013, the cash book of Galaxy Ltd, showed a balance of Rs 400 at bank. They had sent
cheques amounting to Rs 2,000 to the bank before 30th June but it appears from the pass book that
cheques worth only Rs 800 had been credited before that date. Similarly, out of cheques of Rs 1,000
issued during the month of June, cheques for Rs 50 were presented and paid in July.
The passbook also showed the following payments
i. Rs 64 as premium on the life policy according to standing instructions.
ii. Rs 400 against a pro-note, as per instructions.
The pass book showed that the bank had collected Rs 120 as interest on government securities.
The bank had charged interest Rs 10 and bank charges Rs.4.
There was no entry in the cash book for the payments, interest, etc.
Prepare the bank reconciliation statement as on 30th June, 2013.
Part B
27. There is a wrong entry on the credit side of the pass book worth ₹990. How will it be treated for [1]
the purpose of bank reconciliation statement?

a) ₹990 will be Deducted to the balance b) ₹990 will be deducted from the
as per pass book. balance as per cash book.

c) ₹990 will be added to the balance as d) ₹990 will be added to the balance as
per pass book. per cash book.
OR
Bank reconciliation is not a:

a) Memorandum statement b) Ledger account

c) Procedure to provide cash book d) Reconcile records

adjustments
28. Schedule of balances prepared from ledger accounts is known as: [1]

a) Statement of Accounts b) Balance Sheet

c) Trial Balance d) Statement of Affairs

OR
Assertion (A): Internal users of accounting information include owners and management.
Reason (R): Internal users get accounting information by published reports of the business such a
Profit & Loss Account and Balance Sheet. They also get information from unpublished reports or
internal reports of the enterprise.
 a) Both A and R are true and R is the b) Both A and R are true but R is not the
correct explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

29. Prepaid Expenses, if given in the Trial Balance is shown in [1]

a) Balance Sheet

b) Profit and Loss Account, as a deduction from the expense and

in the Balance Sheet, as an asset.
c) Profit and Loss Account, as a deduction from the expense

d) Trading Account, as a deduction from the expense

OR

Rent paid on 1st October 2021 for one year upto 30th September 2022 was ₹ 2,400. Rent paid on 1st
October 2022 for the year upto 30th September 2023 was ₹ 3,200. Rent shown in the Profit and Loss

Account for the year ended on 31st December 2022, would be:

a) ₹ 3,200 b) ₹ 2,600

c) ₹ 6,000 d) ₹ 3,000
30. Single entry system records [1]

a) One sided effect b) Four sided effect

c) Three sided effect d) Two sided effect

31. State with reasons whether the following are capital or revenue expenditures: [3]
i. ₹ 20,000 were spent for obtaining a license for starting the factory.
ii. A loan of ₹ 8 Lac @ 15% was taken on 1st October 2022 to construct the factory building.

Factory became operational on 1st April 2023 and the loan was repaid on 30th June 2023.
iii. ₹ 50,000 were spent on advertising a new product, the benefit of which will be effective during
four years.
iv. A motor lorry was purchased for ₹ 5 Lac and ₹ 2,500 were spent on its insurance. During the
year, the wages of its driver amounted to ₹ 36,000 and cost of petrol amounted to ₹ 25,000.
v. ₹ 20,000 invested in Government Loan.
vi. Raw-material purchased for ₹ 2,00,000 and carriage paid on it ₹ 2,500.
vii. Plant purchased for ₹ 1,00,000 and carriage paid on it ₹ 1,500.
OR
Calculate gross profit and cost of goods sold from the following information: Net Sales ₹ 8,00,000,
Gross Profit is 40% on Sales.
32. What journal entry is passed in case of purchase of goods within the state? [3]
33. Show the treatment of the following items by an organisation to be done in final accounts: [4]
i. Interest on capital
ii. Goods sold but omitted to be recorded
iii. Sale of goods on approval basis
iv. Goods distributed as free sample
OR
 Prepare Trading and Profit and Loss Account and Balance Sheet from the following balances, relating

to the year ending 31st March, 2023:

₹ ₹

Capital 1,00,000 Bank 10,000

Creditors 17,000 Repairs 500

Returns Outward 5,000 Stock on 1st April, 2022 20,000

Sales 1,64,000 Rent 4,000

Plant and Machinery 40,000 Manufacturing Expenses 8,000

Sundry Debtors 24,000 General Expenses 7,000

Drawings 10,000 Bad Debts 2,000

Purchases 1,05,000 Carriage Inwards 1,500

Returns Inward 3,000 Electricity Expenses (Factory) 1,000

Wages 50,000

Additional Information:
i. Closing Stock was valued at ₹ 14,500.
ii. Depreciate Plant and Machinery by ₹ 4,000.
iii. Write off Bad Debts ₹ 5,000.
iv. ₹ 400 is due for repairs.
34. From the following balances taken from the books of Mayank Malhotra & Sons, prepare Trading [6]
and Profit & Loss Account for the year ended 31st March, 2023 and a Balance Sheet as at that
date. Stock in hand on 31st March, 2023 was ₹ 56,000.

Name of Accounts Dr. Balances ₹ Cr. Balances ₹

Stock at Commencement 15,320

Purchases and Sales 1,00,000 1,20,000

Returns 2,200 3,000

Drawings and Capital 10,000 1,30,000

Cartage 2,200

Factory heating and lighting 6,600

Works expenses 15,200

Rent Received 7,300

Cash at Shop 800

Accounts Receivable

Karan 8,000

Verma 5,000
Singh 1,500

Accounts Payable

Prashant 16,000

Kholi 7,540

Horses and Carts 25,000

B/R and B/P 10,000 2,120

Rent paid 15,000

Fire Insurance Premium 4,800

Life Insurance Premium 6,000

Bank overdraft 67,000

Bank Interest 2,400

Telephone Expenses 3,000

Advertisement Expenses 5,200

Salaries and Wages 32,240

Freehold Property 81,000

Audit Fees 1,500

3,52,960 3,52,960
 Part A

1. (d) A is false but R is true.

Explanation:
A is false but R is true.
Accounting information must be reliable means the information recorded must be with the
accounting concept and accounting standard. Reliability doesn't meant that the information should be
presented in such a simple and logical manner that they are understood easily by their users.
OR
(b) Efficiency of Management
Explanation:
Only transactions of monetary nature are considered as business transactions. The efficiency of
management is not a monetary transaction hence it will not be recorded in the books of accounts.

2. (b) only they do not serve as legal evidence in case of a dispute

Explanation:
These documents serve as legal evidence in case of dispute.

3. (d) Statement (iv) is Correct.

Explanation:
Capital = Asset - Liabilities
OR
(d) Rs.60000
Explanation:
Assets = Premises+ cash at bank + inventories
Assets = 55000+6500+12500
Assets = Rs. 74000
Creditors are liabilties.
Assets = Liabilities + Capital
74000= 14000+ Capital
Capital = 74000-14000
Capital = 60000Rs.

4. (c) Dr. all expenses and Cr. all gains

Explanation:
Dr. all expenses and Cr. all gains
OR
(c) liability
Explanation:
Purchaser have to pay the amount in future when goods are purchased on credit which increases the
liability.
 5. (c) Accounting Vouchers
Explanation:
It is a source document that is used as evidence for recording transactions in the primary books of
business, i.e. Journal or other Subsidiary Books. Vouchers are of two types: source voucher and an
accounting voucher. Accounting vouchers are further classified as cash and non-cash vouchers.

6. (d) To provide for known losses

Explanation:
To provide for known losses

7. (c) Statement (a) is correct.

Explanation:
Which are capable of being expressed in terms of money.

8. (a) an increase in liability

Explanation:
A credit is an accounting entry that results in either a decrease in assets or an increase in liabilities.
OR

(b) i, ii, iii and iv

Explanation:
i, ii, iii and iv

9. (c) All of the above

Explanation:
All of the above

10. (b) Recording non-monetary transactions

Explanation:
Recording a non-monetary transaction is not a characteristic of accounting because in accounting we
record only money-related transactions.
OR
(d) Accounting
Explanation:
The process of recording, classifying, and summarizing all business transactions in order to know the
financial result is called accounting.

11. (a) Assets

Explanation:
The things or properties which help in the smooth functioning of the business and which are owned
by the business are called assets of the business.

12. (c) Rs.135

Explanation:
C
Total purchases price: 5 30 = Rs. 150
Less Trade discount (10%): Rs 15
Net amount = 150 - 15 = Rs135
We deduct trade discount in order to arrive at the purchase return amount from the total purchases.
13. (b) Decrease in asset and decrease in liability.
Explanation:
Decrease in asset and decrease in liability.

14. (b) Wages paid for construction of building

Explanation:
Wages paid for building construction is a capital expenditure and it will be added to building Account.

15. (a) All of these

Explanation:
All of these

16. (c) Credit side of Sales A/c

Explanation:
Credit side of Sales A/c

17. Money Measurement Concept is one of the concepts of the accounting according to which company
should record only those events or transaction in its financial statement which can be measured in the
terms of money and where assigning of the monetary value to the transactions is not possible then it
will not be recorded in the financial statement. For example, in India transactions should be recorded in
terms of the rupee. Thus only those transactions are recorded in accounting books, which can be
measured in terms of money. This is because the monetary unit is the most popular medium of
measurement and exchange and it is relevant, simple, and understandable. It should be noted that
information, which cannot be expressed in terms of money, is not recorded in accounting books. For
example, quality of staff, quality of the product, the sincerity of the employees, etc. If the monetary unit
principle is not followed, it will be difficult to record business transactions. The money measurement
principle makes the accounting records clear, simple, comparable, and understandable. The
acceptability of money as a unit of measurement is not free from limitations.
OR
Particulars Dr. (₹) Cr. (₹)
Sales return A/c Dr. 50,000
Output IGST A/c Dr. 6,000
To Kangna's A/c
56,000
(Goods returned by Kangna)
18. i. Stock: Stock refers to the number of goods which remain unsold or unused on a particular date. For
example, if Amit purchases goods costing Rs 2,00,000 and sells goods costing Rs 1,50,000 for Rs
2,50,000 he will have a stock of Rs 50,000 (Rs 2,00,000 - Rs 1,50,000).
ii. Business transactions: Business transactions are the events that involve the movement of
monetary value from one source to another i.e., which brings changes in the financial position of a
business enterprise. For example, when goods are purchased for cash, there is a movement of goods
from the seller to the buyer and the movement of cash from buyer to seller. Business transactions
should be financial nature to record in the books of account.
19. Even though the debit and credit sides agree, the Trial Balance is incorrect. Assets, i.e., Fixtures and
Debtors are wrongly shown on the credit side and Returns Outward, Discount Received, Bank Overdraft
and Creditors on the debit side. The redrafted Trial Balance will be as follows:
 REDRAFTED TRIAL BALANCE OF BROWN TRADERS
as on...
Debit Balances ₹ Credit Balances ₹
Building 60,000 Capital 73,600
Machinery 17,000 Sales 1,04,000
Fixtures 5,600 Creditors 50,000
Debtors 60,000 Bank Overdraft 10,000
Bad Debts 2,800 Discount Received 3,000
Cash 400 Interest Received 2,600
Purchases 1,00,000 Returns Outward 2,600
2,45,800 2,45,800
Since trial balance debit and credit total tally it is correct and accurate.

20. Source documents are as follows:-

a. Cash Memo: Cash Memo is prepared by the seller when goods are sold against cash. It has details of
goods sold, quantity, rate of each item and the total amount received, besides the date of transaction
and other terms and conditions, if any. It is an evidence for the purchaser for, goods purchased
against cash, and for the enterprise.
b. Cheque: A cheque is a document in writing, drawn upon the bank with which the account is held and
is payable on demand. The bank supplies the cheque forms. The name of the party to whom
payment is to be made is written after the words 'Pay to'. Then the amount is written- both in words
and figures. A cheque must be dated and signed by the drawer. Each cheque has a counterfoil. The
same details are entered on the counterfoil which remains with the account holder for future
reference and is the source voucher recording the transaction in the books of account.

21. M/s. Mohit Traders

Cash Book
Dr. Cr.
Date Receipts L.F. Cash (₹) Bank (₹) Date Payments L.F. Cash (₹) Bank (₹)
2017 2017
01 Jan Balance b/d 3,500 01 Jan Balance b/d (overdraft) 2,300
10 Jan Sales 8,000 03 Jan Purchases 1,200
15 Jan Cash C 6,000 05 Jan Wages 200
22 Jan Sales 2,000 15 Jan Bank C 6,000
25 Jan Rent 1,200
28 Jan Drawings 1,000
31 Jan Purchases 1,000
31 Jan Balance c/d 4,100 2,500
11,500 8,000 11,500 8,000

22. Bank Reconciliation Statement as on 31st March

Particulars Plus item (₹) Minus item (₹)
 Balance as per cash book Dr. 30,000
Cheque deposited but not cleared 2,000
Cheque issued but not presented 3,000
Bank Interest 400
Balance as per Bank Statement (33,400 - 2,000) Cr. 31,400
33,400 33,400
23. JOURNAL OF RA JESH
Date Particulars L.F. Dr. (₹) Cr. (₹)
2023
Cash A/c Dr. 1 50,000
Bank A/c Dr. 5 1,00,000
April 1
To Capital A/c
4 1,50,000
(Amount invested by Rajesh as capital)

Repairs A/c Dr. 3 10,000

April 1 To Cash A/c
1 10,000
(Cash paid for repairs)

Bank A/c Dr. 5 70,000

April 2 To Cash A/c
1 70,000
(Cash deposited in the bank)

Purchases A/c Dr. 7 5,000

April 3 To Cash A/c
1 5,000
(Goods purchased for cash)

Cash A/c Dr. 1 1,000

April 4 To Bank A/c
5 1,000
(Cash withdrawn from the bank)

Purchases A/c Dr. 7 22,500

April 13 To Sanjay
10 22,500
(Goods bought from Sanjay on credit)

Carriage Inwards A/c Dr. 12 500

April 13 To Cash A/c
1 500
(Cartage paid on purchases)

Karan Dr. 9 15,000

April 20 To Sales A/c
8 15,000
(Goods sold to Karan on credit)

Cash A/c Dr. 1 10,000

April 24 To Karan
9 10,000
(Cash received from Krishna on account)

April 28 Sanjay Dr. 10 22,500

 To Bank A/c 5 22,500
(Paid to Sanjay by cheque)

April 29 Placing of an order is not a transaction, hence no entry is passed.

Cash A/c Dr. 1 8,000
April 30 To Sales A/c
8 8,000
(Goods sold for cash)

Salaries A/c Dr. 11 3,000

April 30 To Cash A/c
1 3,000
(Salary paid)

Stationery A/c Dr. 13 250

April 30 To Cash A/c
1 250
(Stationery purchased)

Cash A/c Dr. 1 5,000

April 30 To Karan
9 5,000
(Balance payment received)
TOTAL 3,22,750 3,22,750
Note: Ledger folios are imaginary.
24. In the Books of Anant Ram
Journal Entries
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
(a) Mahesh's Account Dr. 1,000
Suspense Account Dr. 3,000
To Mohit's Account 4,000
(Being Cash received from Mohit ₹ 4,000 wrongly posted to
Mahesh as ₹ 1,000, now rectified entry is passed )
(b) Arnav;s Account Dr. 6,000
To Bank Account 5,800
To Discount Allowed Account 200
(Being cheque received from Arnav for ₹ 5,800 in full settlement of
his account of ₹ 6,000 dishonoured but no entry made in books,
now rectified entry is passed )
(c) Khanna Account Dr. 800
To Bad Debts Recovered Account 800
(Being Bad debts recovered wrongly credited to Khanna's A/c, now
rectified entry is passed )
(d) Manav's Account Dr. 7,000
To Purchases Account 2,000
To Sales Account 5,000
(Being credit sales to Manav ₹ 5,000 wrongly recorded through
 Purchases Book as ₹ 2,000, now rectified entry is passed )
(e) Purchases Account Dr. 1,000
To Suspense Account 1,000
(Being Furniture purchased for ₹ 5,000 wrongly debited to
purchases account as ₹ 500, now rectified entry is passed )
(f) Repairs Account Dr. 1,600
To Machinery Account 1,000
To Suspense Account 600
(Being Repairs on Machinery ₹ 1,600 wrongly debited to Machinery
A/c as ₹ 1,000, now rectified entry is passed )
(g) Sales Return Account Dr. 3,000
To Nathu's Account 3,000
(Being sales returns from Nathu not recorded, now rectified entry
is passed )
Suspense Account
Date Particulars L.F. Amount (₹) Date Particulars L.F. Amount (₹)
To Difference as per Trial Balance 16,000 By Purchases A/c 1,000
To Mohit's Account 3,000 By Repairs A/c 600
By Balance c/d 17,400
19,000 19,000
25. In the Books of the...
Machinery Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)

2000 To Bank 2000 By Depreciation Account (2,000 +

19,400 2,500
Jan 1 Account (M1) Dec. 31 500)

2000 To Cash 2000

600 By Balance c/d 27,500
July 1 Account Dec. 31

2000 To Bank
10,000
July 1 Account (M2)

30,000 30,000
2001 2001 By Depreciation Account ( 2,000
To Balance b/d 27,500 3,000
Jan. 1 Dec. 31 +1,000)
2001
By Balance c/d 24,500
Dec. 31
27,500 27,500
2002 2002 July
To Balance b/d 24,500 By Bank Account 8,000
Jan. 1 1

2002 To Bank 2002 July By Profit & Loss Account (Loss on

15,000 7,000
July 1 Account (M3) 1 Sale of Machinery)

2002 July By Depreciation Account(1,000 + 2,750

 1 1,000 + 750)
2002
By Balance c/d 21,750
Dec 31
39,500 39,500
OR
Amount of
Case Cost of Asset Rate of Depreciation
Depreciation

(Purchase Price + Installation Charges          

  
- Scrap value)       
 
(a) 1,80,000 + 20,000 - 10,000 = 1,90,000 = 38,000   = 19%


  
(b) 4,75,000 + 25,000 - 50,000 = 4,50,000 = 90,000   = 18%


 
(c) 90,000 + 10,000 - 20,000 = 80,000 = 8,000   = 8%
 

 
(d) 3,40,000 + 60,000 - 40,000 = 3,60,000 = 36,000   = 9%
 

 
(e) 90,000 + 10,000 - 20,000 = 80,000 = 20,000   = 20%


26. Bank Reconciliation Statement

as on 31st December 2011
Plus Items Minus Items
Particulars
(₹) (₹)
Credit balance as per Pass Book 3,357
Cheques and drafts sent to the bank but not yet collected and credited till
790
31st, December.
Cheques were drawn but not yet presented for payment till 31st
650
December.
Bills payable paid by the bank but not entered in the Cash Book 1,000
A bill discounted with bank dishonored 500
Bank charges 13
Interest allowed by Bank 10
Debit balance as per Cash Book (₹ 5,660 - ₹ 660) 5,000
5,660 5,660
OR
Bank Reconciliation Statement
as on 30th June, 2013
Amount Amount
Particulars
(Rs.) (Rs.)
Balance as per Cash Book 400
Add: Cheques issued but not presented for payment 50
Interest collected by bank directly 120 170
Less: Charges directly paid by the bank:
Life insurance premium 64
Pro-note 400
 Bank charges and interest charged by bank directly 14
Cheques deposited but not collected by the bank 1,200 1,678
Balance(Overdraft) as per Pass Book 1,108
Part B

27. (d) ₹990 will be added to the balance as per cash book.
Explanation:
₹990 will be added to the balance as per cash book.

OR

(b) Ledger account

Explanation:
Bank reconciliation is not a ledger account.

28. (c) Trial Balance

Explanation:
Trial Balance

OR
(a) Both A and R are true and R is the correct explanation of A.
Explanation:
Both A and R are true and R is the correct explanation of A.
internal users of accounting includes owner and management of the business. owner and
management get the information relating to the business from published sources as well as internal
sources.

29. (a) Balance Sheet

Explanation:
In the final accounts, prepaid expenses are: deducted from the expense amount of the trial balance
before listing it in the Income Statement. Shown as a current asset in the year-end balance sheet. only
shown in the balance sheet.
OR
(b) ₹ 2,600
Explanation:
2,400 C 

= ₹ 1,800

3,200 g  = ₹ 800
Rent shown in the Profit and Loss Account = 1,800 + 800 = ₹ 2,600

30. (a) One sided effect

Explanation:
Sometimes for certain transactions, both aspects are recorded, for others one aspects are recorded
and some transactions are not even recorded. that's why it is called as un-scientific system of
accounting. This is incomplete system of accounting.

31. i. Capital expenditure, reason it is included in the cost of factory.

ii. Interest on loan upto 1st April 2023 are capital expenditure because it is payed for the construction
of factory and after that interest on loan charged as revenue expenditure.
 iii. Deferred revenue expenditure, reason it spent on the advertising a new product to increase it sale
which will be effective more then a year.
iv. Motor lorry purchased is capital expenditure and other expenses on motor lorry treated as revenue
expenditure because they are not related to purchase of asset.
v. Capital expenditure, reason investment in government loan is long term investment.
vi. Revenue expenditure, reason it related to purchase of material which are consumed within a year.
vii. Capital expenditure, Reason plant purchased and carriage paid on it are capital expenditure.
OR
Net Sales = ₹ 8,00,000
C
Gross Profit = Sales 40%
C
Gross Profit = ₹ 8,00,000 40% = ₹ 3,20,000
cost of Goods Sold = Sales - Gross Profit
cost of Goods Sold = ₹ 8,00,000 - 3,20,000 = ₹ 4,80,000
32. Journal Entry
Date Particulars L.F. Amount (Dr.) Amount (Cr.)
Purchase A/c Dr.
Input CGST A/c Dr.
Input SGST A/c Dr.
To Cash/Creditor
(Goods Purchase within state)
33. The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs and
expenses incurred during a specified period, usually a fiscal quarter or year. The P&L statement is
synonymous with the income statement. These records provide information about a company's ability
or inability to generate profit by increasing revenue, reducing costs or both.
i. Interest on capital is shown on the debit side of the Profit & loss account and added to the capital on
the liability side.
ii. Goods sold but omitted to be recorded is added to the sales on the credit side of the Profit & Loss
account and Added to the debtors on the asset side.
iii. Sale of goods on approval basis is deducted from sales and added to the closing stock on the credit
side of the Trading Account and deducted from debtors and added to the closing stock on the asset
side.
iv. Goods distributed as a free sample is deducted from purchase on the debit side of the trading
account and shown on the debit side of the Profit & Loss account.
OR
TRADING AND PROFIT AND LOSS ACCOUNT
for the year ended 31st March, 2023
Dr. Cr.
Particulars ₹ Particulars ₹
To Opening Stock 20,000 By Sales 1,64,000
To Purchases 1,05,000 Less: Return Inward 3,000 1,61,000
Less: Return Outward 5,000 1,00,000 By Closing Stock 14,500
To Wages 50,000 By gross loss c/d (b/f) 5,000
To Manufacturing Expenses 8,000
To Carriage inwards 1,500
To Electricity Expenses (Factory) 1,000
1,80,500 1,80,500
 To Gross Loss b/d 5,000 By Net Loss Transferred to Capital A/c 27,900
To Repairs 500
Add: outstanding 400 900
To Rent 4,000
To General Expenses 7,000
To Bad Debts 2,000
To further bad debt 5,000
To Depreciation on Plant and Machinery 4,000
27,900 27,900
BALANCE SHEET
as at 31st March, 2023
Liabilities ₹ Assets ₹
Current Liabilities Current Assets
Creditors 17,000 Bank 10,000
Sundry Debtors
19,000
(24,000 - 5,000)
Outstanding Repairs 400 17,400 Slock-in-Trade 14,500 43,500
Capital Fixed Assets
Opening Balance 1,00,000 Plant and Machinery 40,000
Less: Net Loss 27,900 Less: Depreciation 4,000 36,000
77,100
Less: Drawings 10,000 62,100
79,500 79,500
34. TRADING AND PROFIT AND LOSS ACCOUNT OF MAYANK MALHOTRA AND SONS
for the year ending on 31st March, 2023
Dr. Cr.
Particulars Amount Particulars Amount
₹ ₹
To Opening Stock 15,320 By Sales 1,20,000
To Purchases 1,00,000 Less: Return inwards (2,200) 1,17,800
Less: Returns outwards (3,000) 97,000 By Closing Stock 56,000
To Cartage 2,200
To Factory Heating & lighting 6,600
To Works expenses 15,200
To Gross Profit c/d 37,480
1,73,800 1,73,800
To Rent 15,000 By Gross Profit b/d 37,480
To Fire Insurance Premium 4,800 By Rent received 7,300
To Bank Interest 2,400 By Net loss transferred to Capital A/c 19,360
To Telephone expenses 3,000
To Advertisement Expenses 5,200
To Salaries & Wages* 32,240
To Audit Fees 1,500
64,140 64,140
BALANCE SHEET OF MAYANK MALHOTRA AND SONS
as at 31st March, 2023
Liabilities Amount ₹ Assets Amount ₹
Bank Overdraft 67,000 Cash at Shop 800
B/P 2,120 B/R 10,000
Accounts Payable: Accounts Receivable:
16,000 8,000
Prashant Karan
Kholi 7,540 23,540 Verma 5,000
Capital 1,30,000 Singh 1,500 14,500
Less: Net loss (19,360) Closing Stock 56,000
Less: Drawings (10,000) Horses & Carts 25,000
1,00,640 Freehold property 81,000
Less: Life Insurance Premium (Drawings) (6,000) 94,640
1,87,300 1,87,300
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Time Allowed: 3 hours Maximum 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 B.
3. Part - A and B are compulsory for all the candidates.
4. Question Nos. 1 to 16 and 27 to 30 carries 1 mark each.
5. Questions Nos. 17 to 20 and 31 and 32 carries 3 marks each.
6. Questions Nos. from 21,22 and 33 carries 4 marks each
7. Questions Nos. from 23 to 26 and 34 carries 6 marks each
8. There is no overall choice. However, an internal choice has been provided in 7 questions of one
mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.

Part A
1. Accounting starts with ________ financial transactions and ends with ________ accounting [1]
information.

a) identifying, analysing b) classifying, analysing

c) recording, communicating d) identifying, communicating

OR
Assertion (A): Statements prepared through management account are helpful in decision making
process.
Reason (R): The information provided by management accounts is financial and non-financial as well.

a) Both A and R are true and R is the b) Both A and R are true but R is not the
correct explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

2. When goods are purchased against cash, the purchaser will get: [1]

a) Cash Memo b) transfer Voucher

c) Invoice d) Accounting Voucher

3. Which of the following is not an assets [1]

a) Investment b) Land

c) Loan d) Building
OR
Items owned by a business that have monetary value are ____

a) Capital b) Assets
 c) Liabilities d) Debentures
4. The data is classified for creating groups of accounts in the heads of : [1]

a) Assets, Liabilities and Capital b) Assets, Owners' equity, Revenue and

Expenses

c) Assets, Capital, Liabilities, Revenue d) Capital, Revenue and Expenses

and Expenses
OR
Bank account is a:

a) Real account b) Nominal account

c) Revenue account d) Personal account

5. Credit Note is prepared: [1]

a) when the debit is given to the account b) when transfer in the account

c) when both credit and debit is given to d) when credit is given to the account
the account
6. Which reserve are created for specific purpose [1]

a) Dividend equalization fund b) Capital Reserves

c) Dividend fund d) Specific Reserve

7. Which basis of accounting makes a distinction between revenue and capital items? [1]

a) Accrual basis of accounting b) Can't be determined

c) Both (Cash basis of accounting) and d) Cash basis of accounting

(Accrual basis of accounting)
8. Which account will be debited if proprietor pays ₹ 5,000 as life insurance premium from business [1]
cash?

a) Bank A/c b) Drawings A/c

c) Insurance A/c d) Cash A/c

OR
The data is classified for creating groups of accounts in the heads of:

a) Capital, Revenue and Expenses b) Assets, Capital, Liabilities, Revenue

and Expenses

c) Assets, Liabilities and Capital d) Assets, Owners’ equity, Revenue and

Expenses
9. Reserves arising from capital receipts are known as: [1]

a) Capital Reserve b) Reserve Fund

c) Capital Reserve and Reserve Fund d) Specific reserve

10. Accounting Cycle starts with: [1]

a) Recording of Transactions in Journal b) Preparing Trial Balance

 c) Preparing Trading Account d) Recording of Transactions in Ledger
OR
________ refers to the entire body of the theoretical knowledge of accounting.

a) Accounting b) Book keeping

c) Accountancy d) Measurement
11. The main feature of the business transaction is: [1]
A. It involves an economic activity
B. It results in a change in the financial position of the firm
C. Change must be capable of being expressed in terms of money
D. All of these

a) Only A is correct b) Only B is correct

c) Only C is correct d) Only D is correct

12. Transactions that cannot be recorded in any special journal are recorded in journal called the [1]
________.

a) Journal proper b) Ledger

c) Journal d) Cash book

13. For which of the following transactions, assets and capital will decrease by same amount? [1]

a) Depreciation provided on fixed assets b) Goods sold for cash at a profit

c) Goods sold for cash d) Fixed asset purchased on credit

14. Stock is valued at: [1]

a) cost b) market value

c) cost or market value, whichever is d) cost or market value, whichever is

higher lower
15. Debit Note is the source of writing: [1]

a) A debit entry in an Account b) A sale to a person

c) Sales Return Book d) Journal Proper

16. Ledger Account is prepared from [1]

a) Journal b) Financial Statement

c) Vouchers d) Trial Balance

17. Goods of ₹ 5,000 purchased for donation. CGST and SGST were charged @ 6% each. Pass the [3]
Journal entry for the purchase.
OR
What journal entry is passed in case of the purchase of goods from outside the state?
18. Determine, if the following are Assets, Liabilities, Capital, Revenue from Operations, Revenues, [3]
Expenses or none:
a. Machinery
b. Purchases
 c. Stock
d. Creditors
e. Capital
f. Salary paid to a clerk
g. Sales
h. Furniture
i. Interest received and
j. Rent paid
19. What are the objectives or functions of a trial balance? [3]
20. Prepare the transfer voucher from the following supporting voucher [3]

Krishan Mohan & Sons

Meerut

Sale Bill No.9999

To,
M/Bihari Lal & Sons
Date:10.4.2013

Quantity Particulars Rate(Rs) Amt(Rs)

20 Nos. Chairs 200 4,000

10 Nos. Tablets 4,000 40,000

44,000

Sd/Manager Sd/Ram Ratan & Sons

21. A Petty Cashier in a firm received ₹ 15,000 as the petty cash imprest on 4th June, 2022. During [4]
the week, his expenses were as follows:

2022 ₹

June 4 Conveyance charges for Manager's trip to the city 500

June 4 Wages to casual labourers 1,500

June 5 Bus fare to workmen sent to customer's premises 200

June 5 Stationery purchased 1,000

June 6 Sent documents to Head Office by registered post 400

June 6 Postage stamps purchased 1,000

June 7 Repair of printer 400

June 7 Paid electricity bill 1,700

June 8 Wages paid to coolies for shifting furniture 400

June 8 Taxi fare to Assistant Manager 500

June 8 Letters by registered post sent to different suppliers. 1,000

June 8 Locks purchased 800

 June 8 Refreshments to customers 200

Write up the Analytical Petty Cash Book and draft the necessary Journal entries for the payments
made.
22. On 31st March, 2023, Bank Statement of Gopal shows credit balance of ₹ 33,570 whereas Cash [4]
Book showed debit balance of ₹ 53,000.
It was observed that the differences were because of the following:
i. Cheques and drafts sent to the bank but not collected and credited, amounted to ₹ 7,900
while cheque for ₹ 2,000 was received unpaid.
ii. Three cheques drawn for ₹ 3,000; ₹ 1,500 and ₹ 2,000 respectively were not presented for
payment till 30th April, 2023.
iii. Bank has paid a cheque of ₹ 10,000 but it has not been entered in the Cash Book and a
cheque of ₹ 5,000 which was discounted with the bank was dishonoured by the drawee on
the due date.
iv. Bank has charged ₹ 130 as its commission for collecting outstation cheques and had credited
an interest of ₹ 100 in the account.
v. A wrong debit of ₹ 5,000 was made by the bank, which was reversed on 4th April, 2023.
Prepare Bank Reconciliation Statement as on 31st March, 2023.
23. What is a journal? Give a specimen of journal showing at least five entries. [6]
24. You are presented with a Trial Balance showing a difference which has been carried to Suspense [6]
Account, and the following errors are revealed
i. Rs.1,700 paid in cash for an office equipment was charged to the Office Expense Account.
ii. A cash sale of Rs.5,000 to Black, correctly entered in the Cash Book was posted to the credit of
Black's account in the ledger.
iii. Goods amounting to Rs.800 returned by Blue were entered in the Sales Book and posted
therefrom to the credit of Blue's A/c
iv. Furniture purchased for Rs.8,100 was posted to furniture account as Rs.810.
v. Goods amounting to Rs.10,000 sold to Red were correctly entered in Sales Book but posted to
Red's A/c for Rs.18,000.
vi. Sales Return Book was overcast by Rs.100.
You are required to pass necessary rectification entries in respect of above.
25. In the following Machinery Account, determine the missing information, if depreciation is to be [6]

charged @ 10% annually as per the Diminishing Balance Method. On 1st October 2022, a part of
the machinery valued in the books of the firm at ₹ 16,000 on 1st July, 2020 was sold for ₹ 10,000.
Machinery Account

Dr. Cr.

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

2021
2020
To Bank A/c 80,000 March By Depreciation A/c ____(i)____
July 1
31
 2021 By Balance c/d ____(ii)____
March
31

____(iii)____ ____(iv)____

2021 2022
To Balance
April ____(v)____ March By Depreciation A/c ____(vi)____
b/d
1 31

2022
March By Balance c/d ____(vii)____
31

____(viii)____ ____(ix)____

2022
To Balance 2022
April ____(x)____ By Bank A/c - Sale ____(xi)____
b/d Oct. 1
1

2022
By Depreciation A/c ____(xii)____
Oct. 1

By Loss on Sale Machinery

2022
A/c ____(xiii)____
Oct. 1
(Profit & Loss A/c)

2023
March By Depreciation A/c ____(xiv)____
31

March
By Balance c/d ____(xv)____
31

66,600 66,600

OR
The following balance appear in the books of Crystal Ltd on Jan 01, 2015

Items Amt (₹)

Machinery account on 15,00,000

Provision for depreciation account 5,50,000

On April 01, 2015 a machinery which was purchased on January 01, 2012 for ₹ 2,00,000 was sold for ₹
75,000. A new machine was purchased on July 01, 2015 for ₹ 6,00,000. Depreciation is provided on
machinery at 20% p.a. on Straight line method and books are closed on December 31 every year.
Prepare the machinery account and provision for depreciation account for the year ending December
31, 2015.
26. Record the following transactions in a Double Column Cash Book and Journal Proper and post [6]
them into Ledger:-

April Balance of Cash in hand ₹ 15,000; Bank Overdraft ₹ 40,000.

 1

Received cheque for goods sold ₹ 25,000. This cheque was deposited into the bank on
2
the next day.

4 Received a cheque from Gourav for ₹ 3,000. Allowed him discount ₹ 120.

6 Endorsed Gourav’s cheque in favour of Girish.

Instructed the bank to issue a draft for ₹ 10,000 in favour of Sunil. The bank charged ₹ 20
10
for issuing the draft.

16 Discounted a Bill Receivable (B/R) of ₹ 5,000 at 1% through bank.

Received a bank draft for ₹ 8,850 from Manish in full settlement of ₹ 9,000 due from him.
20
Sent the draft to bank.

Placed an order with Vishal for goods of the value of ₹ 10,000 and sent cheque for ₹
21
8,000 with the order.

25 Dhruv who owed us ₹ 8,000 became insolvent and paid us 60 paise in the ₹.

26 Paid X & Co. by a cheque of ₹ 9,800 (discount allowed ₹ 200).

28 Deposited ₹ 16,000 into the bank.

30 Interest on overdraft charged by bank ₹ 2,500.

Purchased goods for ₹ 20,000 within the state and issued a cheque for the same. (CGST
30
charged @ 6% and SGST @ 6%)

Sold goods outside the state for ₹ 25,000 and received a cheque which was deposited
30
into the bank on the same day. (IGST charged @ 12%)

OR
Enter the following transactions in the Journal of Ganesh and post to the Ledger:

2023 ₹

Assets: Cash in Hand ₹ 20,000; Cash at Bank ₹ 35,000; Stock ₹ 15,000; Furniture ₹
4,500;
April 1
Debtors: Priyanka ₹ 20,000; Suraj ₹ 10,000
Liabilities: Creditors: Abhishek ₹ 13,500; Prashant ₹ 21,500

April 4 Purchased goods from Prashant, 5,000

April 7 Paid to Abhishek by cheque in full settlement of his account 13,000

April
Sold goods to Priyanka, 11,000
10

April
Purchased goods from Abhishek, 15,000
12

April
Sold goods to Suraj, 6,000
15
 April Received cheque from Priyanka on account 24,500
18

Allowed her discount 500

April
Paid for stationery 1,200
25

April
Paid telephone bill by cheque 3,500
27

April
Paid salaries 6,000
30

Part B
27. Which one of the following should be considered revenue expenditure? [1]

a) Damage paid on account of breach of a contract to supply certain goods.

b) Repairs to machinery purchased

c) Rs. 1000 paid for the execution of a new plant.

d) Loss of Rs. 10000 incurred in increasing the sitting accommodation of hotel.

28. On selling the goods for cash of the list price of ₹ 40,000 at 15% trade discount and 4% cash [1]
discount, cash A/c will be debited by:

a) ₹ 38,400 b) ₹ 32,400

c) ₹ 32,640 d) ₹ 34,000
OR
Assertion (A): Opening entry is passed for the first transaction of each day.
Reason (R): In the opening entry, the accounts of all assets are debited and the accounts of liabilities
as well as capital are credited.

a) Both A and R are true and R is the b) Both A and R are true but R is not the
correct explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

29. Calculate interest on loan of Rs. 2000 taken on 1st May 2010 at 18 % If account are closed on 31st [1]
December

a) Rs.230 b) Rs.250

c) Rs.240 d) Rs.210
OR
Income tax paid by a sole trader is reflected in his financial statements:

a) As an asset in the Balance Sheet b) On the debit side of the Profit and
Loss Account

c) As way of deduction from capital in d) On the debit side of the Trading

the Balance Sheet Account
30. Capital in the beginning - Rs.24,000, profit made during the year - Rs.4,000, drawings - Rs.8,000,












[1]
 Capital introduced during the year- Rs.12,[Link] capital at the end

a) Rs.20,000 b) Rs.28,000

c) Rs.35,000 d) Rs.32,000
31. Calculate Closing Stock from the following: [3]

Particulars ₹ Particulars ₹

Opening Stock 38,000 Sales 3,60,000

Purchases 3,40,000 Return Inwards 5,000

Return Outwards 4,000 Gross Loss 20,000

Freight Inwards 26,000

OR
Prepare Trading Account as on 31st March, 2023 from the following balances:

Stock on 1st April, 2022 10,000

Sales Return 5,000

Sales 2,00,000

Wages 11,000

Purchases 2,00,000

Purchases Return 2,500

Carriage Inwards 1,500

Carriage Outwards 3,000

Freight Inwards 2,500

The Closing Stock of goods as on 31st March, 2023 is ₹ 20,000.

32. Give any two examples of Capital Expenditure. [3]
33. Mention any four important adjustments that are made for the preparation of trading and profit [4]
and loss account.
OR
Give the journal entries for the following adjustments:
i. Outstanding salary ₹ 3,500.
ii. Rent unpaid for one month at ₹ 6,000 per annum.
iii. Insurance prepaid for a quarter at ₹ 16,000 per annum.
iv. Purchase of furniture costing ₹ 7,000 entered in the purchase book.
34. From the following information, prepare the profit and loss account for the year ending on 31st [6]
March, 2012

Amt (Rs.) Amt (Rs.)

Gross profit 62,00,000 Salaries and wages 20,00,000

Discount received 1,00,000 Discount allowed 2,00,000

Interest on loan paid 2,50,000 Interest received 3,00,000

Commission received 2,00,000 Commission to salesmen 1,50,000

Rent, rates and taxes paid 4,00,000 Rent received 1,00,000

Fire insurance premium 3,60,000 Carriage outward 1,00,000

Freight outward 50,000 Repairs and maintenance 60,000

Printing and stationary 60,000 Travelling expenses 1,60,000

Entertainment expenses 1,20,000 Water and electricity 1,20,000

Postage and telegram 50,000 Advertising and publicity 4,00,000

Sales promotion expenses 40,000 Telephone expenses 1,00,000

Bad debts 1,00,000 Packing expenses 50,000

Audit fees 2,00,000 Bank charges 40,000

Depreciation on furniture Legal charges 1,00,000

- Sales office 1,00,000 Miscellaneous expenses 1,00,000

- Administrative office 2,00,000 Loss on sale of fixed assets 50,000

Miscellaneous incomes 2,00,000 Loss by theft 5,00,000

Profit on sale of fixed assets 8,50,000 Dividend received on shares 30,000

Loss by fire 1,00,000 Income from investments 20,000

Loss by embezzlement 1,00,000

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Time Allowed: 3 hours Maximum 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 B.
3. Part - A and B are compulsory for all the candidates.
4. Question Nos. 1 to 16 and 27 to 30 carries 1 mark each.
5. Questions Nos. 17 to 20, 31 and 32 carries 3 marks each.
6. Questions Nos. from 21,22 and 33 carries 4 marks each
7. Questions Nos. from 23 to 26 and 34 carries 6 marks each
8. There is no overall choice. However, an internal choice has been provided in 7 questions of one
mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.
Part A
1. Financial Position of the business is determined by: [1]

a) Cost Accounting b) Financial Accounting

c) Management Accounting d) All of these

OR
Assertion (A): Qualitative aspects of the business unit are completely ignored from the books while
preparing financial statements.
Reason (R): Window dressing refers to the practice of manipulating accounts so as to conceal vital
facts, so that the financial statements may disclose a more favourable position than the actual
position.

a) Both A and R are true and R is the b) Both A and R are true but R is not the
correct explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

2. In which situation, a source document containing the date of transaction, the name of the [1]
account debited, the amount, and the reasons for debit is prepared?

a) When goods are returned to a supplier

b) When goods are received from a customer

c) When goods are returned to a Purchaser

d) Both when goods are returned to a supplier and when goods are received from
a customer
3. For which of the following transactions, capital account will be increased and decreased by the [1]
same amount?
 a) Bad debts on the insolvency of a b) Income received in advance
debtor

c) Interest on drawings provided d) Outstanding expenses paid

OR
Following are the steps involved in developing an accounting equation (in particular order). Arrange
the steps in correct sequence.
i. Find out the effect (in terms of increase or decrease) of a transaction on assets, capitals or
liabilities.
ii. Show the effect on appropriate side of an equation and ensure that the total of right hand side is
equal to the total of left hand side.
iii. Ascertain the variables (i.e. assets, liabilities or capital) involved in a transaction.

a) (i), (ii). (iii) b) (iii), (ii), (i)

c) (iii), (i), (ii) d) (ii), (iii), (i)

4. Which of the following accounts has a credit balance? [1]

a) Discount Allowed b) Discount Received

c) Carriage Inward d) Carriage Outward

OR
Drawings Account is a

a) Personal Account b) Real Account

c) Artificial personal account d) Nominal Account

5. Which source document is sent to inform about the credit made in the account of the buyer [1]
along with the reasons mentioned in it?

a) Credit slip b) Credit note

c) Credit receipt d) Credit bill

6. Reserve created by undervaluation of closing stock is called: [1]

a) Secret Reserve b) General Reserve

c) Specific Reserve d) Capital Reserve

7. Recognition of cost in the same period as associated revenues is called ________. [1]

a) Dual aspect principle b) Full disclosure principle

c) Matching principle d) Cost principle

8. Balance of Capital Account is shown as: [1]

a) Capital Account b) Revenue Account

c) Asset account d) Liability Account

OR
Goodwill account is a:

a) representative personal account b) Personal Account

 c) Real Account d) Nominal Account
9. Creation of provision is: [1]

a) Unnecessary b) Illegal

c) Voluntary d) Necessary
10. Summarising is the art of presenting the ________ in an understandable manner. [1]

a) classified data b) transactions

c) Cost accounting d) business information

OR
Which of the following limitations of accounting states that accounts may be manipulated to conceal
vital facts:
A. Accounting is not fully exact
B. Accounting may lead to window dressing
C. Accounting ignores price level changes
D. Accounting ignores qualitative elements

a) Only C b) Only B

c) Only D d) Only A
11. Tangible Asset is: [1]

a) Patents b) Goodwill

c) Prepaid Expenses d) Stock

12. Recording is made in journal proper of [1]

a) All cash transactions b) All credit transactions

c) Transactions which are not recorded d) All transactions

in any subsidiary book.
13. The Basic accounting equation is [1]

a) Assets = Expenses + Capital b) Assets= Cash + Capital

c) Asset = Expense + Income d) Assets = Capital + Liabilities

14. The nature of accrued income is: [1]

a) revenue b) asset

c) liability d) expenses
15. X received a cheque of ₹ 10,000 from Y in settlement of dues of ₹ 10,500. The cheque was [1]
dishonoured. The reversal of discount allowed by X will be recorded in

a) Journal Proper b) Both Cash Book and Ledger directly

c) Ledger directly d) Cash Book

16. Lucky, who owed ₹ 20,000 became insolvent. 70 paise in a rupee was received from his estate. [1]
Bad Debts Account will be debited by

a) ₹ 14,000 b) ₹ 10,000
 c) ₹ 20,000 d) ₹ 6,000
17. What is the meaning of accounting principles? [3]
OR
After balancing of accounts, these always show Debit Balance. Is it Correct?
18. Give two characteristics of a business transaction. [3]
19. Prepare a trial balance with the following information [3]

Sr. No Name of Accounts Amt (₹) Sr. No Name of Accounts Amt (₹)

(i) Capital 5,00,000 (v) Stock 70,000

(ii) Cash 1,80,000 (vi) Debtors 6,00,000

(iii) Creditors 1,00,000 (vii) Bank Loan 1,50,000

(iv) Sales 3,00,000 (viii) Purchases 2,00,000

20. Why is the evidence provided by source documents important to accounting? [3]
21. Rajat maintains a Columnar Petty Cash Book on the Imprest System. The imprest amount is ₹ [4]
5,000. From the following information, show how his Petty Cash Book would appear for the week
ended 12th September, 2023:

2023 ₹

Sept. 7 Balance in Hand 1,349

Received cash reimbursement to make up the Imprest

Postage 123

Stationery 321

Sept. 8 Travelling and conveyance 126

Miscellaneous expends 11

Entertainment 72

Sept. 9 Repairs 1,567

Sept. 10 Postage 174

Travelling 673

Sept. 12 Miscellaneous expenses 201

Postage 483

Repairs 30

22. What is a bank reconciliation statement? Explain any four points regarding need and importance [4]
of preparing a bank reconciliation statement.
23. Pass necessary Journal entries for the following transactions: [6]

2023 ₹

April
Deposited in bank for opening a Current Account 10,000
1
 April Withdrawn from bank 5,000
2

April Received a cheque from Rohan to whom goods were sold for ₹ 12,000 last year.
5 Allowed him 1% discount on payment

April
Rohan's cheque deposited in bank
7

April
Rohan's cheque dishonoured (bank charges ₹ 20)
9

April
Rohan settled his account by issuing cheque including ₹ 60 for interest 12,080
20

April
Cash directly deposited by Ram (Customer) in bank account 8,000
21

April
Bank draft got issued in favour of M/s Gupta & Sons ₹ 5,000. Bank charges ₹ 700
23

April
A cheque of ₹ 4,000 (due after one month) discounted from bank for ₹ 3,800
28

April
Received a cheque of ₹ 1,000 from Suraj after banking hours
30

April
Goods sold for cash ₹ 7,000 and half of the sale proceeds deposited in bank
30

24. Pass the rectification entries and show the suspense account in the books of a partnership firm, [6]
from the following particulars :
i. The total of sales return day book was over-cast by ₹ 1,000
ii. Purchase of equipment, from Rajat Manav & Co., worth ₹ 2,000, in cash, was entered through
the purchase day book and accordingly, credited to the supplier’s account.
iii. Discount ₹ 500 allowed by K. Rao, a creditor, has not been entered in the books of account.
iv. ₹ 350 paid for carriage on sale of goods was credited to carriage inward account when posted
from the cash book.
v. Bill receivable worth ₹ 1,800 received from a debtor was entered in the bills payable book
though correctly entered in the debtor’s account.
vi. A sum of ₹ 2,500 collected from Sumit Kumar, a debtor, whose dues were already written off
as bad debt, was posted to the credit side of Sumit Kumar account.

25. On 1st April, 2020, Akbar Ltd. purchased Machinery costing ₹ 5,00,000 plus IGST @ 12%. On July 1, [6]
2023, the Machinery was sold for ₹ 2,00,000 plus IGST @ 12%. Prepare Machinery account

calculating depreciation @ 10% p.a. on Original Cost Method. Accounts are closed on 31st March
each year.
OR

On 1st April, 2020, Walter Oil Ltd. purchased a machinery for ₹ 8,00,000. On 1st January, 2023, a part
 of this machine purchased on 1st April, 2020 for ₹ 1,00,000 was sold for ₹ 44,000 and on the same
date, a new machine was purchased for ₹ 1,20,000. Depreciation was provided @10% p.a. on Original

Cost of the machinery and accounts are closed on 31st March every year.
Show the Machinery Account and Machinery Disposal Account assuming that:
i. Provision for Depreciation Account is not maintained, and
ii. Provision for Depreciation Account is maintained.
26. An extract of Trial balance from the books of Tahiliani and Sons Enterprises on March 31, 2017 is [6]
given below:

Name of the Account Debit Amount ₹ Credit Amount ₹

Sundry debtors 50,000

Bad debts 6,000

Provision for doubtful debts 4,000

Bad Debts proved bad but not recorded amounted to ₹ 2,000.

Provision is to be maintained at 8% of Debtors.
Give necessary accounting entries for writing off the bad debts and creating the provision for
doubtful debts account. Also, show the necessary accounts.
OR
A book-keeper extracted the following Trial Balance as at 31st March, 2023:

Balance Dr. Balance Cr.

Name of Accounts
₹ ₹

Stock on 1.4.2022 2,50,000

Purchases 6,50,000

Sales 10,00,000

Motor Vans 3,80,000

Debtors and Creditors 1,50,000 94,000

Premises 3,00,000

Shop fittings 20,000

Interest on Bank Overdraft 16,000

Purchases Returns 10,000

Sales Returns 20,000

Lighting and heating 18,000

Capital 5,00,000

Discount Received 2,000

Repairs 2,500

Electricity 6,500
 Bank Overdraft 2,00,000

Stock on 31.3.2023 3,30,000

Rent from subletting 15,000

Bills Receivable 8,000

Suspense Account (difference in books) 13,000

Total 19,92,500 19,92,500

You are required to redraft the trial balance correctly.

Part B
27. Commission received in advance is to be shown in statement of affairs on [1]

a) Total assets b) Cash balance

c) Liabilities side d) Total liabilities

28. If Prepaid Wages is given in Trial Balance, it is shown in: [1]

a) Debit of Trading A/c and Assets b) Debit of Trading A/c

c) Assets d) Debit of P & L A/c

OR
Assertion (A): Received or placed an order for goods is not recorded in the journal.
Reason (R): Revenue recognition concept states that a transaction is to be recognized when an
obligation to pay arises.

a) Both A and R are true and R is the b) Both A and R are true but R is not the
correct explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

29. Debit balance of pass book means: [1]

a) Negative i.e. Unfavourable Balance b) Both Positive and Negative Balance

c) None of these d) Positive i.e. Favourable Balance

OR
The credit balance as per Cash Book is ₹ 1,500. Cheques for ₹ 400 were deposited but were not
collected. The cheques issued but not presented were ₹ 100, ₹ 125 and ₹ 50. Balance as per Pass
Book will be:

a) ₹ 1,100 Debit b) ₹ 1,625 Credit

c) ₹ 1,625 Debit d) ₹2,175 Cebit

30. Purchases Rs.1, 00,000; opening stock Rs.12,000, closing stock, Rs. 8,000. Calculate adjusted [1]
purchases

a) Rs.104000 b) Rs.94000

c) Rs.124000 d) Rs.112400
31. The following are a few transactions of a Sugar Mill Company:- [3]
 i. Acquired 500 Bighas of Land for an agriculture farm at an annual rent of ₹ 25,000 and paid ₹
2,000 per Bigha as Lease Premium.
ii. Spent ₹ 5 Lac in purchasing animals and implements for the farm.
iii. Cost of pucca water drains constructed on the Land ₹ 50,000.
iv. Two bullocks costing ₹ 80,000 were killed by lightening.
v. Canal irrigation charges paid to Government ₹ 10,000.
vi. Besides sugarcane, other crops valued ₹ 25,000 were produced and sold.
State with reasons whether these items are Capital or Revenue.
OR
Explain the objects of preparing Profit and Loss Account.
32. List the following assets in order of permanence: [3]
Sundry Debtors, Stock, Land and Building, Plant and Machinery, Furniture, Investments, Cash in
Hand and Cash at Bank.
33. Give Journal Entries for the following adjustments in final accounts: [4]
i. Extract of Trial Balance as on 31st March, 2023

Particulars Debit (₹) Credit (₹)

Sundry debtors 4,13,000

Bad debts 7,000

Provision for doubtful debts 45,000

Additional Information:
a. Additional Bad Debts ₹ 13,000.
b. Maintain the provision for doubtful debts @ 5% on debtors.

ii. On 31st March, 2023 stock worth ₹ 25,000 was destroyed by fire. These goods were purchased
paying IGST @ 12%. The stock was insured and the insurance company admitted a claim of ₹
21,000 only.
iii. Insurance prepaid ₹ 1,500. IGST is charged @ 12%.
iv. Goods costing ₹ 10,000 having market value of ₹ 15,000 were taken over by the owner for
personal use. These goods were purchased paying IGST @ 12%.
v. Rent received in advance was ₹ 3,500.
OR
From the following information, prepare Provision for Doubtful Debts Account and show them in the
Profit and Loss Account and the Balance Sheet:
TRIAL BALANCE (EXTRACT)

as at 31st March, 2023

Heads of accounts Dr. (₹) Cr. (₹)

Sundry Debtors 1,00,000 ____

Bad Debts 6,000 ____

Provision for Doubtful Debts ____ 7,000

 Additional Information:
Sundry Debtors include ₹ 10,000 receivable from a customer, who has become insolvent. Official
Receiver has declared a dividend of 50 paise in a rupee. Maintain a provision for doubtful debts @ 5%
on sundry debtors.
34. Following balances are taken from the books of Neeraj. Prepare Trading and Profit & Loss [6]

Account for the year ended 31st March, 2023 and Balance Sheet as on that date:

Particulars ₹ Particulars ₹

Capital 12,00,000 Drawings 2,10,000

Opening Stock 4,50,000 Plant and Machinery 2,40,000

Furniture 15,000 Purchases 29,50,000

Sales 43,50,000 Insurances 15,000

Purchases Return 40,000 Sales Return 70,000

Rent 50,000 General Expenses 20,000

Salaries 2,40,000 Wages 4,00,000

Bad Debts 10,000 6% Investments 5,00,000

Sundry Debtors 4,00,000 Sundry Creditors 1,98,000

Advertisement Expenses 60,000 Cash 1,22,000

Patents 48,000 Miscellaneous Income 12,000

Adjustments:
i. Closing Stock ₹ 7,50,000.
ii. Depreciate Machinery by 10% and Furniture by 20%.
iii. Wages ₹ 50,000 and salaries ₹ 20,000 are outstanding.
iv. Write off ₹ 50,000 as further Bad Debts and create 5% Provision for Doubtful Debts. Also,
create a reserve for Discount on Debtors @ 2%.
v. Investments were made on 1st July, 2022 and no interest has been received so far.
Series ARSP/04 Set ~ 4
Roll No. Q.P Code 15/4/4
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY
Time allowed: 3 hours Maximum Marks: 80
Time Allowed: 3 hours Maximum 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 B.
3. Part - A and B are compulsory for all the candidates.
4. Question Nos. 1 to 16 and 27 to 30 carries 1 mark each.
5. Questions Nos. 17 to 20, 31 and 32 carries 3 marks each.
6. Questions Nos. from 21,22 and 33 carries 4 marks each
7. Questions Nos. from 23 to 26 and 34 carries 6 marks each
8. There is no overall choice. However, an internal choice has been provided in 7 questions of one
mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.
Part A
1. The branches of accounting are: [1]

a) Financial Accounting b) Social Responsibility Accounting

c) All of these d) Cost Accounting

OR
Assertion (A): All financial transactions relating to the business are first of all recorded in Ledger.
Reason (R): Separate accounts are opened in the Ledger for purchases, sales, expenses, incomes,
assets etc.

a) Both A and R are true and R is the b) Both A and R are true but R is not the
correct explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

2. The vouchers which are prepared for transactions not involving cash, i.e. non-cash transaction, [1]
are known as ________ vouchers.

a) Credit b) Unilateral

c) Transfer d) Token
3. Which equation is correct out of the following: [1]

a) Assets = Liabilities - Capital b) Assets = Capital + liabilities

c) Assets = Capital - Liabilities d) Assets = Net worth - Liabilities

OR
Difference between assets and liabilities is

a) Drawings b) Cash
 c) Capital d) Liabilities
4. Real account (which include cash and all other assets) will usually show: [1]

a) Both debit and credit balance b) Credit Balance

c) Negative balance d) Debit Balance

OR
Which of the following is not a type of personal account?

a) SBI Bank A/c b) Investment A/c

c) Ram's A/c d) Atul's Capital A/c

5. Which of the following item is not concerned with credit voucher? [1]

a) Income received b) Sale of goods for cash

c) Payment received from debtors d) Purchase of goods for cash

6. Which of the following statements is not appropriate in relation to Provision? [1]
a. Provision is a charge against profit.
b. Provision is created for known liability.
c. Provision is created for strengthening the financial position of the business.
d. Creation of provision satisfies the principle of conservatism.

a) Statement (c) is correct. b) Statement (d) is correct.

c) Statement (b) is correct. d) Statement (a) is correct.

7. Input SGST is first set-off against [1]

a) Output IGST b) Output SGST

c) Both CGST and SGST d) Output CGST

8. Withdrawal of cash from the business by the proprietor is credited to: [1]

a) Profit and Loss A/c b) Drawing A/c

c) Capital A/c d) Cash A/c

OR
Debit mean

a) a decrease in asset b) an increase in liability

c) an increase in the proprietor’s equity d) an increase in asset

9. Creation of reserves: [1]

a) Decreases the profits b) Increases the divisible profits

c) Decreases the divisible profits d) Increases the profits

10. Excess of expenses over revenue is [1]

a) Profit b) Expense

c) Loss d) Gain
OR
Researchers area of interest is
 a) Future profitability b) Safety

c) Protecting the environment d) All of these

11. Cash, goods or assets invested by the proprietor in the business for earning profit is called: [1]

a) Capital b) Profit

c) Investment d) Fixed assets

12. If XYZ Electronics Ltd. purchases 20 TV @ ₹ 2,000 per piece and 15 tape recorders @ ₹ 12,500 per [1]
piece. There was a trade discount of 20%. What will be the amount recorded in purchase book?

a) ₹ 1,82,000 b) ₹ 40,000

c) ₹ 1,87,500 d) ₹ 2,27,500
13. Find out the value of assets if: Liabilities= Rs.5000 and Capital= Rs.1000 [1]

a) Rs.4000 b) Rs.6000

c) Rs.3000 d) Rs.5000
14. The unsold goods left at the end of the year is called: [1]

a) Opening stock b) Assets

c) Closing stock d) Drawing

15. If Razi paid ₹9,900 in settlement of her account of ₹10,000, then the discount allowed of ₹100 will [1]
be recorded in:

a) Cash book b) Journal book

c) Both Journal book and Cash book d) Purchase book

16. All ledger accounts can be classified in which of the following groups? [1]

a) Losses and gains b) Assets and liabilities

c) Permanent accounts and temporary d) Incomes and expenses

accounts
17. What do you understand by cash and accrual basis of accounting? [3]
OR
State the limitations of a trial balance.
18. Explain and give example of each of the following accounting terms: [3]
i. Expenses
ii. Drawings
iii. Gain
19. Discuss the methods of preparation of a Trial Balance. [3]
20. Prepare the Accounting Voucher from the following supporting voucher: [3]

GURUJI & SONS

32, Industrial Area, Meerut (U.P.)
Sale Bill No. 1215
M/s Murli Shyam & Sons
Date: 10.4.2023
 Qty. Particulars Rate/Unit (₹) Amount (₹)

20. Cricket balls 100 2,000

10. Full Size bat 2,000 20,000

22,000

Sd/-
Guruji & Sons

21. From the following transactions, prepare Cash Book with Cash and Bank Columns: [4]

2023

Jan.
Balance of Cash in Hand ₹ 15,000 and Bank Overdraft ₹ 6,000
1

3 Issued a cheque of ₹ 4,800 to Mr. Harry and earned a discount of ₹ 200

4 Direct deposit by Mr. Kushal in our bank account ₹3,800. Discount allowed ₹200

5 Given as charity ₹ 100

7 Issued a cheque of ₹ 500 to the petty cashier.

Goods worth ₹ 10,000 were sold to Garuda on 10th January. Its payment was received
15
today by cheque after deducting 5% cash discount.

16 Deposited the above cheque into Bank.

Goods purchased from Rahul for ₹ 8,000. Payment is made after deducting 3% cash
17
discount.

18 Bought postage stamps ₹200.

20 Paid ₹ 4,000 by cheque for furniture purchased.

22 Atul who owed us ₹ 6,000 became bankrupt and paid 60 paise per ₹.

24 Collected from Aakash ₹ 5,000 in cash and deposited into bank the next day.

24 Cash purchases of stationery ₹ 200

25 X settled his account of ₹ 7,000 by cheque of ₹ 6,850.

Cheque was deposited into the bank on 28th January.

27 Settled Y's account of ₹ 8,000 by cheque after deducting therefrom % cash discount.

29 Cash sales for ₹ 10,000, received cheque.

30 Interest charged by bank ₹ 1,500.

22. The cash book shows a bank balance of ₹ 7,800. On comparing the cash book with the passbook [4]
the following discrepancies were noted:
i. Cheque deposited in bank but not credited ₹ 3,000
ii. Cheque issued but not yet present for payment ₹ 1,500
iii. An insurance premium paid by the bank ₹ 2,000
 iv. Bank interest credit by the bank ₹ 400
v. Bank charges ₹ 100
vi. Directly deposited by a customer ₹ 4,000
23. Pass necessary Journal entries for the following transactions: [6]

2023 ₹

April
Deposited in bank 30,000
1

April
Cash withdrawn from bank 10,000
3

April
Wages paid by cheque 7,000
7

April Cheque received from Deepak ₹ 8,500 and discount allowed to him ₹ 500.
10 Cheque is deposited in bank on the same day

April
As per standing instructions, Bank paid Telephone bill 1,000
12

April
Deepak's cheque returned by the bank as dishonoured
14

April
Charges debited by bank 400
16

April
Goods sold and sale proceeds deposited in bank 8,000
17

April
Bank has paid insurance premium as per our standing instructions 1,800
19

April
Dividend collected by Bank 2,500
25

24. Rectify the following errors and prepare Suspense Account on the assumption that all the errors [6]
have been identified and rectified:
i. ₹ 10,800 received from Mohit was posted to the debit of his account.
ii. ₹ 2,000 being purchase return was posted to the debit of Purchase Account.
iii. Discount received ₹ 400 was posted to the debit of Discount Allowed Account.
iv. ₹ 11,480 paid for repairs of motor car were debited to Motor Car Account as ₹ 1,480.
v. A sale of ₹ 23,500 to Ravi was entered in the Sales Book as ₹ 25,300.
vi. While carrying forward the balance on one page in Chandan’s Account, the amount of ₹ 2,500
was written on the credit side instead of the debit side.
25. Reliance Ltd purchased a second hand machine for ₹ 56,000 on October 1, 2011 and spent ₹ [6]
28,000 on its overhaul and installation before putting it to operation. It is expected that the
machine can be sold for ₹ 6,000 at the end of its useful life 15 years. Moreover, an estimated cost
of ₹ 1,000 is expected to be incurred to recover the salvage value of ₹ 6,000. Prepare machine
 account and provision for depreciation account for the first 3 years charging depreciation by
fixed installment method. Accounts are closed on March 31, every year.
OR
On comparing the cash book with pass book of Prasad, it is found that on March 31, 2023, bank
balance of ₹ 40,960 showed by the cash book differs from the bank balance with regard to the
following:
i. Bank charges ₹ 100 on March 31, 2023, are not entered in the cash book.
ii. On March 21, 2023, a debtor paid ₹ 2,000 into the company’s bank in settlement of his account,
but no entry was made in the cash book of the company in respect of this.
iii. Cheques totaling ₹ 12,980 were issued by the company and duly recorded in the cash book before
March 31, 2023, but had not been presented at the bank for payment until after that date.
iv. A bill for ₹ 6,900 discounted with the bank is entered in the cash book without recording the
discount charge of ₹ 800.
v. ₹ 3,520 is entered in the cash book as paid into bank on March 31st, 2023, but not credited by the
bank until the following day.
vi. No entry has been made in the cash book to record the dishonour on March 15, 2023 of a cheque
for ₹ 650 received from Bharat.
Prepare a Bank reconciliation statement as on March 31, 2023.
26. Determine the missing information in the following Rectifying Journal Entries: [6]
JOURNAL

Date Particulars L.F. Dr. (₹) Cr. (₹)

(I) ... ...Dr. 1,000

To ... 1,000

(Purchases Book undercasted, now rectified)

(ii) ... ...Dr. 20,000

To ... 20,000

(wages for construction of building wrongly debited to Wages

Account, now rectified)

(iii) Raju ...Dr. 2,400

To ... 1,200

To ... 1,200

(wrong recording of sales in Purchases Book, now rectified)

(iv) ... ...Dr. ...

To Suspense A/c ...

(short posting of ₹ 4,500 in Purchases A/c, now rectified)

(v) ... ...Dr. 2,000

 To ... 2,000

(bad debts recovered wrongly credited to Manish Gupta, now

rectified)

(vi) Raju ...Dr. ...

To .... ...

(credit purchases of ₹ 1,040 from Raju was passed in the

books as ₹ 1,400, now rectified)

(vii) ... ...Dr. ...

To ... ...

(distribution of goods as samples Costing ₹ 5,000, Sales Price

₹ 6,000, now recorded)

(viii) ... ...Dr. ...

To ... ...

(goods of ₹ 1,500 returned by Pink & Co., now recorded)

OR
Pass Journal Entries to rectify the following errors:
These errors are located after the preparation of Trial Balance.
i. ₹ 17,000 paid in cash for purchase of a Typewriter was charged to office expenses account.
ii. Credit sale to Abhishek ₹ 5,000 were posted to the Credit of his account.
iii. Cash sales ₹ 20,000 were posted to commission received Account ₹ 200.
iv. Wages Paid for the construction of office ₹ 9,090 were debited to building Account.
v. Salary payable to Amar ₹ 12,000 was not recorded in the books.
Part B
27. In cash basis, expenses are recorded: [1]

a) When paid or not paid in cash b) When expense due

c) When paid in cash d) When not paid in cash

28. Wages paid for the installation of the machine is added to the cost of machine because of [1]

a) Accrual Concept b) Matching Principle

c) Materiality Principle d) Cost Principle

OR
Assertion (A): Fixed Assets are shown in the Balance Sheet at their cost and not at their realisable
value.
Reason (R): Fixed Assets are shown in the Balance Sheet according to Historical Cost Concept.

a) Both A and R are true and R is the b) Both A and R are true but R is not the
correct explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

29. On 1st April 2021 a machinery is purchased for ₹ 4,00,000. Depreciation is charged @ 10% p.a. on [1]

diminishing balance method and books are closed on 31st December every year. On 1st July
2023, the machinery is sold for ₹ 1,80,000. Loss on sale will be:

a) ₹ 1,27,800 b) ₹ 1,19,700

c) ₹ 1,36,350 d) ₹ 1,53,000
OR
For large manufacturing, the costs of small tools used in not relevant whereas it is very relevant for a
small roadside workshop. This fallacy can be explained by which principle?

a) Principle of materiality b) Matching principle

c) Principle of full disclosure d) Principle of conservation

30. Which accounting principle is followed by a single entry system? [1]

a) Revenue Recognition Principle b) Full Disclosure Principle

c) Double Entry or Dual Aspect Principle d) Money measurement principle

31. Briefly explain Current Liabilities. [3]
OR
Give Journal Entries for the following transactions in the books of Mohan & Co.:

2023

March Bought goods for cash of the list price of ₹ 80,000 at 10% trade discount and 2 % cash
3 discount.

Sold goods for cash of the list price of ₹1,00,000 at 15% trade discount and 3% cash
5
discount.

6 Sold goods to Nitin of the list price of ₹ 50,000 at 20% trade discount.

8 Nitin returned one-fourth of the above goods.

10 Nitin settled the account by paying cash under a discount of 5%.

32. The Trial Balance of Mohit gives the following information: [3]

Heads of Accounts Debit (₹) Credit (₹)

Debtors 2,50,000 ____

Bad Debts 2,500 ____

Discount Allowed 4,500 ____

It is decided to create a Provision for Doubtful Debts @ 10% on debtors and a Provision for
Discount @ 2% on debtors. Show how the adjustment will appear in the Final Accounts.
33. Profit of a firm for the year ended 31st March, 2023 is ₹ 21,000 before charging commission. [4]
Manager of the firm is entitled to commission of 5% on profit. Calculate commission payable to
the Manager under following alternative cases:
Case 1. If Manager is allowed commission on profit before charging such commission, and
Case 2. If Manager is allowed commission on profit after charging such commission.

Also, show the treatment in Final Accounts for the year ended 31st March, 2023.
OR
From the following Trial Balance and information, prepare Trading and Profit & Loss Account of

Ganesh for the year ended 31st March, 2023 and Balance Sheet as on that date:

Heads of Accounts L.F. Dr. (₹) Cr. (₹)

Capital - 1,00,000

Drawings 12,000 -

Land and Building 90,000 -

Plant and Machinery 20,000 -

Furniture 5,000 -

Sales - 1,40,000

Returns Outward - 6,000

Debtors 18,400 -

Loan from Gajanand (Taken on 1st July, 2022 @ 6% p.a.) - 30,000

Purchases 80,000 -

Returns Inward 5,000 -

Carriage Inwards 10,000 -

Sundry Expenses 600 -

Printing and Stationery 500 -

Insurance Expenses 1,000 -

Provision for Doubtful Debts - 1,000

Provision for Discount on Debtors - 380

Bad Debts 400 -

Opening Stock 21,300 -

Salaries and Wages 15,500 -

Carriage Outwards 3,000 -

Creditors - 12,000

Trade Expenses 800 -

Cash at Bank 4,600 -

Cash in Hand 1,280 -

Total 2,89,380 2,89,380

Additional Information:
 i. Value of Closing Stock on 31st March, 2023 at cost was ₹ 27,300 and its net realisable value
(market value) was ₹ 30,000.

ii. Fire occurred on 23rd March, 2023 and goods costing ₹ 10,000 were destroyed. Insurance

company accepted claim of ₹ 6,000 only and paid the claim money on 10th April, 2023.
iii. Bad Debts amounting to ₹ 400 are to be written off. Provision for Doubtful Debts is to be
maintained at 5% and Provision for Discount on Debtors at 2%.

iv. Received goods costing ₹ 6,000 on 27th March, 2023 but the purchases was not recorded.
v. Ganesh took goods of ₹ 2,000 for his personal use but was not recorded.
vi. Charge depreciation @ 2% on Land and Building, @ 20% on Plant and Machinery and @ 5% on
Furniture.
34. From the following balances prepare a trading and profit and loss account and balance sheet for [6]
the year ended March 31, 2017

Account Title Amount ₹ Account Title Amount ₹

Carriage on goods 8,000 Cash in hand 2,500

purchased Bank overdraft 30,000

Carriage on goods sold 3,500 Motor car 60,000

Manufacturing expenses 42,000 Drawings 8,000

Advertisement 7,000 Audit fees 2,700

Excise duty 6,000 Plant 1,53,900

Factory lighting 4,400 Repairs to plant 2,200

Debtors 80,000 Stock at the end 76,000

Creditors 61,000 Purchases less return 1,60,000

Dock and Clearing charges 5,200 Commission on purchases 2,000

Postage and Telegram 800 Incidental trade expenses 3,200

Fire Insurance Premium 3,600 Investment 30,000

Patents 12,000 Interest on investment 4,500

Income tax 24,000 Capital 1,00,000

Office expenses 7,200 Sales less return 5,20,000

Salest tax paid 12,000

Discount allowed 2,700

Discount on purchases 3,400

 Series ARSP/05 Set ~ 5
Roll No. Q.P Code 15/5/5
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum 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 B.
3. Part - A and B are compulsory for all the candidates.
4. Question Nos. 1 to 16 and 27 to 30 carries 1 mark each.
5. Questions Nos. 17 to 20, 31 and 32 carries 3 marks each.
6. Questions Nos. from 21,22 and 33 carries 4 marks each
7. Questions Nos. from 23 to 26 and 34 carries 6 marks each
8. There is no overall choice. However, an internal choice has been provided in 7 questions of one
mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.

Part A
1. What kind of business are required to perform the recording of transaction in terms of money?




[1]

a) Small-sized b) Large-sized

c) All of these d) Medium-sized

OR
Assertion (A): Accounting is a process of identifying, measuring recording business transactions.
Reason (R): It communicates required information to the general public.

a) Both A and R are true and R is the b) Both A and R are true but R is not the
correct explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

2. A debit note is prepared by [1]

a) Cashier b) Purchaser

c) payer d) Seller
3. What will be the effect on the accounting equation for outstanding expenses? [1]
(Options are in the format of assets, liabilities, capital).

a) Decrease, No change, Decrease b) Decrease, Decrease, No change

c) No change, Increase, Decrease d) Decrease, Increase, Decrease

OR
Sumit owns a company and purchase goods on credit from his personal funds and used the same for
business purpose. What is the effect on assets

a) Reduce Bank b) Reduce cash

 c) Increase stock d) Increase cash
4. Sundry Creditors Account is a: [1]

a) Capital Account b) Liability Account

c) Revenue Account d) Asset account

OR
Sale of goods to Rahul for cash is debited to:

a) Stock account b) Sales A/c

c) Rahul A/c d) Cash A/c

5. Accounting vouchers are prepared for [1]

a) cash transactions b) non-cash transactions

c) both cash and non-cash transactions d) Transfer

6. Profit on sale of assets is used to create: [1]

a) Capital Reserve b) Specific Reserve

c) Both Specific Reserve and General d) General Reserve

Reserve
7. Under the Cash Basis of Accounting, expenses are recorded: [1]

a) both payment and on being incurred b) on payment

c) on being incurred d) on event

8. Credit means: [1]

a) an increase in liability b) an increase in asset

c) a decrease in liability d) a decrease in proprietor's equity

OR
Which of the following accounts has a credit balance?

a) Discount Allowed b) Discount Received

c) Carriage Inward d) Carriage Outward

9. ________ is specific reserve: [1]

a) Debenture Redemption Reserve b) Workmen Compensation Fund

c) Investment Fluctuation Fund d) All of these

10. Which of the following will not be recorded in the books of account? [1]

a) Quality of staff b) Purchase of goods

c) Payment of salary d) Sales of goods

OR
A person or an enterprise which is not in a position to pay its debts is called ________.

a) Insolvent b) Bad debtor

c) Both Insolvent and Bad debtor d) Solvent

11. Bank overdraft is ________. [1]

a) contingent liability b) long-term liability

c) short term asset d) short-term liability

12. A separate column is made for Credit Note No. in [1]

a) Purchases Return Book b) Purchases Book

c) Sales Return Book d) Sales Book

13. Voucher is prepared from: [1]

a) Ledger Account b) All of these

c) Source Documents d) Journal Entry

14. Expenditure on purchase of machinery is a [1]

a) Expense b) Capital expenditure

c) Revenue expenditure d) Deferred revenue expenditure

15. Subsidiary Books are: [1]

a) All of these b) Bills Receivable Book

c) Purchase Book d) Sales Return Book

16. Which of these accounts has debit balance? [1]

a) Bank loan b) Prepaid insurance premium

c) Creditors for goods d) Income received in advance

17. State three accounting practices based on the prudence principle. [3]
OR
Explain briefly your understanding of assets disposal account.
18. What is the difference between trade discounts and cash discounts? [3]
19. Prepare a Trial Balance from the following balances taken as at 31st March 2023:- [3]

(₹) (₹)

Capital 2,50,000 Purchases 2,15,300

Drawings 24,000 Sales 3,80,000

Debtors 57,000 Miscellaneous Expenses 8,200

Creditors 28,500 Miscellaneous Receipts 3,600

Land & Building 1,80,000 Bad Debts 7,100

Plant 1,20,000 Bills Receivable 5,000

Stock on 1-4-2022 22,800 Loan from X 20,000

Factory Expenses 16,600 Interest on X's Loan 3,000

Office Expenses 7,700 Cash in hand 8,400

Purchases Return 6,000 Goodwill 10,000

 Stationery 500

Freight 2,500

20. What is a cash memo? [3]

21. Enter the following transaction in a cash book with cash and Bank columns [4]

2013 Amt (Rs.)

Dec 1 Started business with cash 50,000

Dec 2 Pays into bank 29,000

Dec 3 Received cheque form Raja & Co 800

Dec 5 Withdrew cash form bank for private use 240

Dec 14 Received cheque from Kamla 395

Discount allowed 15

Dec 16 Kamla's cheque endorsed to Bala in full settlement of her account of Rs. 425

Dec 29 Paid Bills payable by cheque 1,000

Dec 30 Deposited into bank, balance of cash in excess of Rs. 450

22. Draw bank Reconciliation statement showing adjustment between your cash book and pass [4]
book as on 31st March 2023.
i. On 31st March, 2023 your passbook showed a balance of ₹ 6,000 to your credit.
ii. Before that date, you had issued cheques amounting to ₹ 1,500 of which cheques of ₹ 900
have been presented for payment.
iii. A cheque of ₹ 800 paid by you into the bank on 29th March 2023 is not yet credited in
Passbook.
iv. There was a credit of ₹ 85 for interest on current account in the passbook.
v. On 31st March 2023, a cheque for ₹ 510 received by you and was paid into bank but the same
was omitted to be entered in cash book.
23. Pass the Journal entries for the following transactions of Suraj: [6]

2023 ₹

April
Suraj introduced cash as capital 1,00,000
1

Gave cheque from his Savings Account 10,00,000

April
Purchased goods of ₹ 1,00,000 against cheque less 10% Trade Discount
2

April
Issued cheque as advance for Machinery 1,00,000
2

April Purchased Goods of ₹ 2,00,000 less 25% Trade Discount and paid immediately
3 availing Cash Discount of 2%

April Sold goods to Ritik against cheque 50,000

 7

April
Sold goods to Ramesh ₹ 25,000 less 10% Trade Discount
10

April
Received cheque from Ramesh and allowed 2% Cash Discount
14

April
Cheque received from Ramesh deposited in bank
16

April
Cheque received from Ramesh was dishonoured, Bank charged bank charges 200
20

April Paid Life Insurance Premium of Suraj by Bank Draft. Paid bank charges of ₹
10,000
25 100

April
Amount transferred to fixed deposit 5,00,000
30

24. Rectify the following errors: [6]

i. Purchases Book is overcast by ₹ 500.
ii. Salary paid to an employee, Mr. Abhi, is debited to his Personal Account ₹ 3,000.
iii. Goods sold to Mehak on credit ₹ 300 have been wrongly passed through the Purchases Book.
iv. Total of Returns Inward Book has been added ₹ 9 short.
v. Purchase of chair from Happy Traders for ₹ 35 has been entered in the Purchases Book as ₹
53.
25. Rohini Cement Ltd purchased on 1st January, 2010 a plant for Rs.80,000. On 1st April, 2011, it [6]
purchased additional plant costing Rs.48,000. On 1st September, 2012 the plant purchased on
1st January, 2010 was sold off for Rs.42,000 and on the same date fresh plant was purchased at
the cost of Rs.75,000.
Depreciation is provided at 10% per annum on the diminishing balance method every year.
Accounts are closed each year on 31st December. Show the plant account for 3 year.
OR
On 1st April, 2020, Sangreela Ltd purchased machinery for ₹ 1,20,000 and on 30th Sept. 2021 it
acquired additional machinery for ₹ 20,000. On 30 June, 2022, one of the original machine
(purchased on 1st April, 2020) which had cost of ₹ 5,000 was found to have become obsolete and was
sold as scrap for ₹ 500. On the same date a new machine was purchased for ₹ 8,000. Depreciation is

to be charged @ 15% per annum on written down value method. Accounts are closed on 31st March
each year. Show machinery account for the first 3 years.

26. The following Trial Balance has been prepared by an inexperienced accountant. [6]
Redraft it in the correct form:-

Name of Accounts LF Balance Dr. Balance Cr.

₹ ₹

Cash in Hand 4,100

Machinery 25,000

Purchases 66,200

Sundry Debtors 24,300

Carriage Inward 1,800

Carriage Outward 700

Wages 17,500

Rent and Taxes 5,300

Sundry Creditors 17,000

Discount Allowed 1,200

Returns Outwards 2,400

Returns Inwards 9,600

Capital 30,000

Drawings 6,300

Bank Loan 10,000

Interest on Loan 1,500

Opening Stock 26,200

Sales 1,28,700

Discount Received 1,600

Total 1,89,700 1,89,700

OR
The following Trial Balance has been prepared by an incompetent person.
Draw up a correct Trial Balance:

Name of Accounts Balance Dr. Balance Cr.

₹ ₹

Opening Stock 5,40,000

Closing Stock (Not adjusted) 7,15,000

Goods bought 41,40,000

Goods sold 60,00,000

Returns Inwards 80,000

Returns Outwards 62,000

Carriage Outwards 2,000

Assets 35,00,000

Rent paid 64,000

 Fuel 15,000

Rent of premises sub-let to Girish 24,000

Loan taken 8,00,000

Interest on loan taken 96,000

Capital 12,00,000

Income Tax 40,000

Rates 3,000

Customer’s Accounts 3,88,000

Supplier’s Accounts 3,10,000

HDFC Bank (Overdraft) 5,25,000

Interest on Bank Overdraft 54,000

Miscellaneous Income 1,000

Suspense Account (difference in books) 7,000

Total 92,83,000 92,83,000

Part B
27. ________ are created from revenue/profits which arise out of the normal operating activities of the [1]
business and are otherwise freely available for distribution as dividend.

a) Capital reserve b) Specific reserve

c) General reserve d) Revenue reserve

28. Outstanding Salary is: [1]

a) Real Account b) Nominal Account

c) Capital account d) Personal Account

OR
Assertion (A): Current Liabilities refer to those liabilities which are to be paid in near future (normally
within one month)
Reason (R): Current Liabilities include Bank Overdraft, Creditors, Outstanding Expenses etc.

a) Both A and R are true and R is the b) Both A and R are true but R is not the
correct explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

29. Acer Cement Ltd. purchased a machine on 1-1-2023 for ₹ 1,20,000. Installation expenses were ₹ [1]
10,000. Its residual value after 10 years is ₹ 5,000. On 1-03-2023 expenses on its repairs were
incurred to the extent of ₹ 2,000. Depreciation is provided under the straight-line method. Books
are closed on 31st March every year. The amount of depreciation for the current year will be:

a) ₹ 12,700 b) ₹ 3,175

c) ₹ 12,500 d) ₹ 3,125
 OR
If goods sold for ₹ 2,500 to Govind is recorded as ₹ 5,200 in sales book, it will be called:

a) An error of principle b) An error of Omission

c) A compensating error d) An error of Commission

30. The opening capital is ascertained by preparing [1]

a) Creditors b) Cash book

c) Opening statement of affairs d) Debtors

31. Write short notes on any two: [3]
i. Contingent liability
ii. Capital expenditure
iii. Operating profit.
OR
What are Accounting Concepts? Explain any two of them.
32. Bank balance of ₹ 40,000 showed by the cash book of Atul on December 31, 2016. It was found [3]
that three cheques of ₹ 2,000, ₹ 5,000 and ₹ 8,000 deposited during the month of December
were not credited in the passbook till January 02, 2017. Two cheques of ₹ 7,000 and ₹ 8,000
issued on December 28, were not presented for payment till January 03, 2017. In addition to it
bank had credited Atul for ₹ 325 as interest and had debited him with ₹ 50 as bank charges for
which there were no corresponding entries in the cash book. Prepare a bank reconciliation
statement as on December 31, 2016.
33. While Preparing final accounts how will you deal with the following items appearing in a trial [4]
balance of a proprietor. (i) Closing stock (ii) Outstanding expenses
OR
Extract of Trial Balance
as on 31st March, 2013

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

Debtors 30,000

Additional Information
Create a provision for bad and doubtful debts @5% on debtors.

34. From the following information, prepare the Profit and Loss A/c for the year ended 31st March [6]
2023:

Particulars ₹

Gross Profit 1,30,000

Rent 5,000

Salary 35,000

Commission paid 19,000

Interest on Loan 5,000

Advertisement 8,000
Interest received 8,000

Discount Allowed A/c 2,000

Discount received 6,000

Printing and stationery 14,000

Legal charges 10,000

Office expenses 2,000

Loss by fire 6,000

Depreciation 4,000

Miscellaneous Income 2,000

 Series ARSP/06 Set ~ 6
Roll No. Q.P Code 15/6/6
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum 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 B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. A ________ is a document evidencing a debit to be raised against a party for reasons other than sale on credit.





[1]

a) credit note b) written note

c) debit note d) Oral

2. Assertion (A): Environmental protection groups are one of the multiple external users of accounting [1]
information.
Reason (R): Social responsibility groups want to know the impact of business on the environment and steps
taken by an enterprise for the protection of the environment.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Goods purchased on credit will increase the [1]

a) Debtor b) Capital

c) liability d) Drawings
4. Source Documents of Accounting are: [1]

a) Cheque b) All of these

c) Cash Memo d) Invoice and Bills

OR
Which equation is incorrect out of the following:

a) Liabilities = Assets - Capital b) Assets = Liabilities - Capital

c) Assets = Liabilities + Capital d) Capital = Assets - Liabilities

5. Which of the following statements about source document is incorrect? [1]
 i. They are required for audit and tax assessments.
ii. They do not serve as legal evidence in case of a dispute.
iii. These documents are written and authentic proof of the correctness of the recorded transaction.

a) only these documents are written and b) all of these

authentic proof of the correctness of the
recorded transaction.

c) They do not serve as legal evidence in case d) only they do not serve as legal evidence in
of a dispute and these documents are written case of a dispute
and authentic proof of the correctness of the
recorded transaction.
6. Accounting is ________. [1]

a) profit of business b) language of business

c) objective of business d) life of business

OR
Cost of Goods Manufactured is determined by:

a) Cost Accounting b) Human Resource Accounting

c) Financial Accounting d) Management Accounting

7. Profit on sale of fixed asset is used to create: [1]

a) Capital Reserve b) Specific Reserve

c) Reserve Capital d) General Reserve

8. Rule of Debit and Credit for Impersonal account is [1]

a) Dr. the receiver and Cr. the giver b) Dr. all expenses and Cr. all gains & Dr. what
goes out and Cr. what comes in

c) Dr. all expenses and Cr. all gains d) Dr. what goes out and Cr. what comes in
OR
Bank account is a:

a) Real account b) Nominal account

c) Personal account d) Revenue account

9. On inter-state (i.e., outside the state) purchase of goods, which of the following GST is levied? [1]

a) IGST b) IGST and CGST

c) SGST d) CGST
10. It is necessary to assume the Going Concern Concept as it [1]

a) Both bifurcate revenue expenditure b) Helps to bifurcate revenue expenditure

and capital expenditure

c) Helps to bifurcate capital expenditure d) Helps to bifurcate expenses

11. Which of the following does not correctly differentiate between revenue reserve and capital reserve? [1]
 a) Revenue reserve is created to strengthen the b) Revenue reserve is created out of revenue
financial position, to meet unforeseen profits where as capital reserve is created
contingencies or for some specific purposes. primarily out of capital profit.
Whereas capital reserve is created for
compliance of legal requirements or
accounting practices.

c) Workmen compensation fund d) Revenue reserve can be utilised only for a

specific purpose whereas capital reserve can
be utilised for any purpose.
12. Current Liabilities do not include [1]

a) Bills Payable b) Prepaid Insurance

c) Outstanding Salaries d) Sundry Creditors

13. The periodic total of Sales Return Journal is posted to the: [1]

a) Sales Account b) Sales Return Account

c) Goods Account d) Capital Account

14. Collection of account receivable will: [1]

a) Increase assets and decrease assets b) Decrease assets and Increase liabilities

c) Decrease assets only d) Increase assets and decrease liabilities

15. ________ represents the excess of assets over liabilities. [1]

a) Stock b) All of these

c) Capital d) Goodwill
OR
The expense that has been incurred but has not been paid is called:

a) Prepaid expenses b) Loss

c) Revenue d) Outstanding expenses

16. A separate column is made for Credit Note No. in [1]

a) Purchases Book b) Purchases Return Book

c) Sales Book d) Sales Return Book

17. Identify specific reserves from the following [1]
i. Dividend equalisation reserve
ii. Provision for depreciation
iii. Workmen compensation fund
iv. Investment fluctuation fund

a) (i), (ii) and (iv) b) (i) and (ii)

c) (i) and (iii) d) (i), (iii) and (iv)

18. What is an Account? [3]
OR
 Pass journal entries for the following transactions:
i. Bought goods from Raj of the list price of Rs 30,000 at 15% trade discount.
ii. Settled the account of Raj by paying cash, under a discount of 4%.
iii. Bought goods for cash of the list price of Rs 1,50,000 at 20% trade discount and 5% cash discount.
iv. Sold goods for cash of the list price of Rs 60,000 at 10% trade discount and 3% cash discount.
19. Explain the accounting principle of matching. [3]
OR
Explain the accounting principle of verifiability and objectivity of evidence.
20. Define the basic accounting terms with an example: [3]
i. Stock
ii. Business transactions
21. Following balances were extracted from the books of Ritesh on 31st March, 2023. You are required to prepare a [4]
Trial Balance. The amount required to balance should be entered as capital.

₹ ₹

Purchases 1,70,000 Drawings 7,700

Stock (1st April, 2022) 24,000 Returns Inward 3,500

Sales 1,05,000 Premises 5,28,000

Sundry Debtors 23,800 Sundry Creditors 16,100

Discount Received 3,500 Discount Allowed 2,800

Carriage Outwards 700 Carriage Inwards 1,400

Cash in Hand 3,500 Cash at Bank 17,500

Machinery 1,24,500 General Expenses 2,100

Provision for Depreciation on Machinery 24,200 Bad Debts Written off 2,450

Provision for Doubtful Debts 2,380

22. From the following transactions, prepare Cash Book with Cash and Bank columns: [4]
Feb. 1 Cash-in-hand Rs 7,500, Cash-at-bank Rs 8,000
Feb. 3 Discount a bill receivable for Rs 6,000 at 2% through Bank
Feb. 5 Bought goods for Rs 2,000 and paid by cheque
Feb. 15 Paid Trade expenses Rs 120
Feb. 16 Drew from Bank for office use Rs 1,000
Feb. 17 Sold goods for Rs 12,500 and received a cheque
Feb. 25 Paid Insurance Rs 100
Feb. 27 Cheque received on 17th deposited in Bank
Feb. 28 Received a cheque from John & Co. Rs 6,000
Feb. 28 Purchased 100 NSC for Rs 100 at Rs 95 each and paid by cheque.
23. On 31st December, 2023 my Cash Book showed a credit balance of ₹ 8,800. I had paid into Bank three cheques [4]
amounting to ₹ 6,000 on 24th December of which I found ₹ 3,200 have been credited in the Pass Book under
date 5th January 2024. I had issued cheques amounting to ₹ 8,000 before 31st December of which I found ₹
 2,500, have been debited in the Pass Book after 1st January 2024. I find a debit of ₹ 50 in respect of bank
charges in the Pass Book which I have adjusted in the Cash Book on 31st Dec. There is a credit of ₹ 360 for
interest on securities in the Pass Book which remains to be adjusted. A cheque of ₹ 1,200 deposited into bank
has been dishonoured. Prepare Bank Reconciliation Statement as on 31st Dec. 2023.
OR
A Bank Reconciliation Statement is prepared as on 31st March, 2023 starting with debit balance as per Cash Book.
State whether the following transactions will be shown in the Bank Reconciliation Statement by adding or deducting
these from the given balance giving reason:
i. Bank had wrongly debited the account by ₹ 25,000 on 1st March, 2023 and reversed on 3rd April, 2023.
ii. Receipts Side of the Cash Book was overcast by ₹ 500.
iii. Payments Side of the Cash Book was overcast by ₹ 5,000.
iv. Receipts Side of the Cash Book was undercast by ₹ 5,000.
v. Payments Side of the Cash Book was undercast by ₹ 20,000.
vi. Cheque for ₹ 10,000 issued but was not recorded in the Cash Book.
vii. A cheque of ₹ 5,000 deposited was not recorded in the Cash Book.
24. Pass necessary Journal entries for the following transactions: [6]

2023 ₹

April
Deposited in bank for opening a Current Account 10,000
1

April
Withdrawn from bank 5,000
2

April Received a cheque from Rohan to whom goods were sold for ₹ 12,000 last year. Allowed him
5 1% discount on payment

April
Rohan's cheque deposited in bank
7

April
Rohan's cheque dishonoured (bank charges ₹ 20)
9

April
Rohan settled his account by issuing cheque including ₹ 60 for interest 12,080
20

April
Cash directly deposited by Ram (Customer) in bank account 8,000
21

April
Bank draft got issued in favour of M/s Gupta & Sons ₹ 5,000. Bank charges ₹ 700
23

April
A cheque of ₹ 4,000 (due after one month) discounted from bank for ₹ 3,800
28

April
Received a cheque of ₹ 1,000 from Suraj after banking hours
30

April Goods sold for cash ₹ 7,000 and half of the sale proceeds deposited in bank
 30

OR
Pass Journal Entries for the following:
2023 March 2 Purchased an Iron Safe for business for ₹ 1,00,000 and payment made by cheque.
2023 March 3 Purchased filing cabinet for office use ₹ 40,000 and paid ₹ 200 as cartage on it.
2023 March 4 Purchased a Computer from Shyam & Co. for ₹ 80,000 on credit.
2023 March 5 Purchased an electric fan for ₹ 20,000.
2023 March 6 Purchased a Horse for business for ₹ 1,50,000 and payment made by cheque.
2023 March 7 Purchased Post Cards for ₹ 250; Envelopes for ₹ 500 and Stamps for ₹ 1,000.
2023 March 8 Purchased office stationery for ₹ 4,000.
2023 March 15 Gave as Charity - Cash ₹ 2,000 and Goods ₹ 4,000.
2023 March 20 The horse bought on March 6 died, its carcass was sold for ₹ 10,000.
2023 March 25 Sold household furniture for ₹ 1,00,000 and paid the money into the business.
2023 March 31 Paid to the landlord by cheque ₹ 1,20,000 for rent. One-third of the building is occupied by the
proprietor for residential use.
25. The accountant of a firm finds that the Trial Balances as on 31st March 2023 is out-by an excess debit of ₹ 283. [6]
He placed the amount in the Suspense Account. In the first week of April, 2023 he discovered the following
errors. Pass the Journal entries necessary to rectify these errors and show the Suspenses Account as it would
appear at the end of the week. Have you any comment to make?
i. Cash paid to Amit Verma, ₹ 75, was posted to the credit of Amit Kapoor's Account as ₹ 57.
ii. Discount allowed by Lokesh of ₹ 5 was not entered in the Cash Book, but Lokesh stands debited correctly.
iii. No entry was made for goods worth ₹ 40 taken away by proprietor for personal use.
iv. ₹ 500 received from Malhotra Sons, for interest on loan advanced to them were recorded in the Cash Book.
But the entry was not posted in the Ledger.
v. The total of Returns Outward Book was short by ₹ 100.
OR
Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.
a. Depreciation provided on machinery ₹ 4,000 was not posted to depreciation account.
b. Bad debts written-off ₹ 5,000 were not posted to debtor's account.
c. Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount allowed account.
d. Goods withdrawn by proprietor for personal use ₹ 800 were not posted to drawings account.
e. Bill receivable for ₹ 2,000 received from a debtor was not posted to bills receivable account.

26. Arora Construction Ltd purchased a machine on 1st October, 2020 for₹ 6,55,000. On 1st March, 2021, it [6]

purchased another machine for ₹ 2,40,000. On 1st July, 2022 it sold off the first machine purchased in 2020, for
₹ 5,24,000. Accumulated depreciation account is maintained charging depreciation at 10% per annum on straight

line method. Accounts are closed each year on 31st March, prepare machinery account and accumulated

depreciation account for the year ended on 31st March, 2021,2022 and 2023. Also prepare machinery disposal
account.
OR
A firm purchased on 1st April 2015 certain machinery for Rs.5,82,000 and spent Rs.18,000 on its installation. On 1st
October 2015, additional machinery costing Rs.2,00,000 was purchased. On 1st October 2017, the machinery
 purchased on 1st April 2015 was auctioned for Rs.2,86,000 plus CGST and SGST @ 6% each and new machinery
for Rs.4,00,000, plus IGST @ 12% was purchased on the same date. Depreciation was provided annually on 31st
March at the rate of 10% on the Written Down Value Method. Prepare the Machinery Account for the three years
ended 31st March 2018.
Part B
27. Calculate profit from the following information: Opening capital: Rs.5,000, Closing capital-Rs.7,000, [1]
Withdrawn- Rs.1,000, Fresh capital-Rs.500

a) Rs.2,700 b) Rs.2,500

c) Rs.2,000 d) Rs.3,500
OR
Calculate the profit from the following information: Opening capital: Rs.1,20,000, closing capital - Rs.1,80,000,
Drawings - Rs.10,000, capital added during the year-Rs.20,000.

a) Rs.60,000 b) Rs.40,000

c) Rs.50,000 d) Rs.45,000
28. Balance Sheet is prepared: [1]

a) On a particular date b) for the whole year

c) for the some part of year d) For a particular period

29. Depreciation for current year in the Trial Balance is shown in [1]

a) Debit side of Profit & Loss Account and it is b) Debit side of Trading Account.
deducted from that particular asset in the
Balance Sheet.

c) Debit side of Profit & Loss Account. d) Assets side of Balance Sheet as a deduction
from the concerned Asset.
OR
Sundry Debtors given in the Trial Balance are ₹ 20,000. Further bad debts amounted to ₹ 1,000 and it is desired to
create a provision of 5% on debtors for doubtful debts and 2% for discount. Sundry Debtors will appear in the
Balance Sheet at a figure of:

a) ₹ 17,689 b) ₹ 18,600

c) ₹ 17,670 d) ₹ 18,620
30. Arrange assets in the order of permanence: [3]
Sundry Debtors, Stock, Investment, Land and Building, Cash in Hand, Motor Vehicle, Cash at Bank, Goodwill,
Plant and Machinery, Furniture, Loose Tools, Marketable Securities.
31. From the following information, prepare the Trading Account for the year ended 31st March, 2023: [3]
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000;
Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹
1,20,000.

32. Ajay started business with capital of ₹ 5,00,000 on 1st April, 2022. He introduced additional capital of ₹ [3]

3,00,000 on 1st October, 2022. He charged interest on capital @ 10% p.a. Calculate the amount of interest on
capital and show it in the final accounts.
33. The following information is available from Sahil, who maintains books of accounts on a single entry system: [6]

1 st April, 2022 (₹) 31 st March, 2023 (₹)

Cash and Bank 20,000 21,000

Sundry Debtors 17,000 25,000

Stock 40,000 60,000

Furniture 29,000 29,000

Sundry Creditors 32,000 22,000

10% Loan from Mrs. Sahil 30,000 30,000

Sahil withdrew ₹ 5,000 from the business every month for meeting his household expenses. During the year, he
sold investments held by him privately for ₹ 35,000 and invested the amount in his business.
At the end of the year 2022-23, it was found that the full year’s interest on loan from Mrs. Sahil had not been
paid. Depreciation @ 10% per annum was to be provided on furniture for the full year. Shop assistant was to be
given a share of 5% on the profits ascertained before charging such share.
Calculate profit earned during the year ended 31st March, 2023 by Sahil.
OR
Manu started business with a capital of Rs.4,00,000 on 1st October, 2005. He borrowed from his friend a sum of
Rs.1,00,000. He brought further Rs.75,000 as capital on 31st March 2006, his position was:
Cash : Rs.30,000; Stock: Rs.4,70,000; Debtors: Rs.3,50,000 and Creditors: Rs.3,00,00. He withdrew Rs.8,000 per
month during this period. Calculate profit or loss for the period.

34. The following Trial Balance was extracted from the books of Mr. Sharma as at 31st March, 2023: [6]

Amount Amount
Dr. Balances Cr. Balances
(₹) (₹)

Stock on 1-4-2022 65,000 Capital 2,50,000

Purchases 7,10,000 Rent Received 3,900

Wages 22,000 Loan from Mr. Kumar @ 15% p.a. 20,000

Trade Expenses 5,000 Sales 9,50,000

Freight and Dock Charges 8,000 Discount 600

Travelling Expenses 3,800 Outstanding Wages 2,000

Lighting and Heating (Factory) 7,200 Trade Expenses accrued but not paid 500

Stores Consumed 2,000 Sundry Creditors 80,000

Rent Paid 16,500

Establishment Charges 18,000

Interest on Mr. Kumar’s Loan 1,500

Sundry Debtors 1,42,000

Cash 6,000
 Fixed Assets 3,00,000

Adjustments:-
i. Goods costing ₹ 20,000 were purchased and included into stock but no entry was passed to record the
purchase.

ii. Loan from Mr. Kumar was taken on 1st June, 2022.
iii. Sundry Debtors include an amount of ₹ 2,000 due from a customer who has become insolvent and nothing is
recoverable from his estate.
iv. Create a provision of 5% for Doubtful Debts and 2% for discount on Debtors.
v. Three months lighting and heating bill due but not paid ₹ 3,000.
vi. Rent is paid for 11 months but is received for 13 months.

vii. Stock amounted to ₹ 90,000 on 31st March, 2023.

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2023 and a Balance Sheet as at that
date.
OR
From the following balances extracted from the books of Karan and the additional information, prepare the trading
and profit and loss account for the year ended 31st March, 2013 and also show the balance sheet as on that date.

Debit Credit
Name of Accounts Amount Amount
(Rs. in 000's) (Rs. in 000's)

Stock on 1st April 2012 625

Purchases and sales 903 1,372

Returns 22 13

Capital A/c 300

Drawings 45

Land and Buildings 300

Furniture and fittings 80

Trade debtors and trade creditors 250 450

Cash in hand 35

Investments 100

Interest 5

Commission 30

Direct expenses 75

Postage, stationery, and telephone 25

Fire insurance premium 20

Salaries 90

Bank overdraft 400

 2,570 2,570
====== ======

Additional Information
i. Closing stock on 31st March 2013 is valued at Rs 6,50,000. Goods worth Rs 5,000 are reported to have been
taken away by the proprietor for his personal use at home during the year.
ii. Interest on investments Rs 500 is yet to be received while Rs 10,000 of the commission received is yet to be
earned.
iii. Rs 5,000 of the fire insurance premium paid is in respect of the quarter ending 30th June 2013.
iv. Salaries Rs 10,000 for March 2013 and bank overdraft interest estimated at Rs 20,000 are yet to be recorded as
outstanding charges.
v. Depreciation is to be provided on land and buildings @ 5% per annum and on furniture and fittings @ 10% per
annum.
vi. Make a provision for doubtful debts @ 5% of trade debtors
Series ARSP/07 Set ~7
Roll No. Q.P Code 15/7/7
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum 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 B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Each cheque has a counterfoil in which the same details as entered in the cheque are filled. The counterfoil [1]
remains with the ________ for future purposes.

a) cashier b) bank

c) account holder d) Both cashier and account holder

2. Assertion (A): The main purpose of cost accounting is to ascertain total cost and per unit cost of goods [1]
produced.
Reason (R): The main purpose of financial accounting is to record the business transactions and to ascertain
profit or loss and the financial position of the business.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Bank account is a: [1]

a) Real account b) Nominal account

c) Personal account d) Revenue account

4. Goods costing Rs. 20,000 were sold for cash at a profit of 25%. By what amount stock account will decrease [1]

a) Rs.25,000 b) Rs.15,000

c) Rs.20,000 d) Rs.20,500
OR
If a business transaction results in the increase of assets, there will also be a corresponding increase in the amount of

a) liabilities b) both liabilities and capital

c) none of these d) capital

 5. The business documents which serves as the evidence of the business transactions are known as [1]

a) Notes b) Source documents

c) First hand documents d) Bills

6. Identified and measured accounting events should be recorded in which order: [1]

a) Any order b) Horizontal

c) Vertical order d) Chronological order

OR
Which of the following is not a business transaction?
A. Withdrew ₹ 10,000 from business for personal use by the proprietor.
B. Proprietor Withdrew ₹ 20,000 from the Bank Account of the firm to pay the school fees of his son.
C. Proprietor withdrew ₹ 12,000 from his personal account to pay the school fees of his son.
D. Goods taken worth ₹ 3,000 for personal use.

a) Statement (B) is correct. b) Statement (C) is correct.

c) Statement (D) is correct. d) Statement (A) is correct.

7. Profit on sale of assets is used to create: [1]

a) Capital Reserve b) Specific Reserve

c) Both Specific Reserve and General Reserve d) General Reserve

8. Which account will be debited if proprietor pays ₹ 5,000 as life insurance premium from business cash? [1]

a) Bank A/c b) Drawings A/c

c) Cash A/c d) Insurance A/c

OR
Goodwill account is a:

a) Nominal Account b) Real Account

c) representative personal account d) Personal Account

9. Ind-AS-1 deals with [1]

a) disclosure of accounting policies b) None of these

c) plant, property and equipment d) statement of cash flows

10. As per Revenue Recognition Concept, revenue is deemed to be realised: [1]

a) When cash is received from the purchaser b) When purchase order is received from the
purchaser

c) When the title of the goods has been d) When goods are delivered to the purchaser
transferred to the purchaser
11. Provision is made: [1]

a) To strengthen the financial position b) To face the financial difficulties

c) To provide for known losses d) To provide for unknown losses

12. A person who owes money to the firm is called ________. [1]
 a) Supplier b) Creditor

c) Debtor d) Purchaser
13. Debit notes issued are used to prepare: [1]

a) Purchases Book b) Purchases Return Book

c) Sales Return Book d) Sales Book

14. Main elements of accounting equation are: [1]

a) Bank balance, Investments and Bills b) Capital, Creditors and Bills Payable
Receivable

c) Assets, Liabilities and Capital d) Cash, Stock and Debtors

15. ________ are those assets that cannot be realised in cash, or no further benefit can be derived, from these assets.





[1]

a) Current assets b) Real assets

c) Nominal assets d) Realisable assets

OR
X is a part of the inventory of a firm. X needs further processing for converting into finished products i.e X consists
of partly finished goods or semi-finished goods. Identify X.

a) Inventory of stock-in-trade b) Inventory of finished goods

c) Inventory of raw material d) Inventory of work-in-progress

16. Sale of business asset on credit is recorded in: [1]

a) Journal Proper b) Special Journal

c) Sales Book d) Cash Book

17. A Provision is: [1]

a) an appropriation of profits b) Distribution of profits

c) a charge against profit d) can be an appropriation of profits and a

charge against profit
18. Explain the procedure for balancing a ledger account. [3]
OR
Journalise the following transactions in the books of Madan.

Sept Sold goods costing Rs 45,000 to Suresh at a profit of 33  % on cost less 20%. Trade discount and paid
2 carriage Rs 400 (to be charged from the customer).

Sept
Spent Rs 300 for refreshment of a customer.
5

Sept
Machinery purchased Rs 10,000 paid, installation expenses Rs 2,500.
7

Sept Sold goods costing Rs 40,000 to Prateek for cash at a profit of 25% on cost less 20% trade discount and paid
9 cartage Rs200 (not to be charged from the customer).

19. Goods of ₹ 10,000 purchased intra-state were destroyed in rain. If rates of CGST and SGST are 6% each and [3]
that of IGST is 12%, Pass the Journal entry for the goods destroyed.
 OR
What are the exceptions of revenue recognition principle? Explain in brief.
20. Distinguish between expenses and expenditure. [3]
21. Prepare correct Trial Balance from the following Trial Balance in which there are certain mistakes: [4]

Heads of Accounts Dr. (₹) Cr. (₹)

Adjusted Purchases 1,50,000 -

Closing Stock - 40,000

Debtors - 60,000

Creditors - 30,000

Fixed Assets 50,000 -

Opening Stock 60,000 -

Expenses - 20,000

Sales - 2,00,000

Capital 90,000 -

Total 3,50,000 3,50,000

22. Prepare bank column cash book from the following transactions of M/s Laser Zone for the month of January [4]
2017 and post them to the related ledger accounts:

Date 2017 Details Amount (₹)

Jan. 01 Cash in hand 4,000

Bank overdraft 3,200

Jan. 04 Wage paid 400

Jan. 05 Cash sales 7,000

Jan. 07 Purchased goods by cheque 2,000

Jan. 09 Purchased furniture for cash 2,200

Jan. 11 Cash paid to Rohit 2,000

Jan. 13 Cash sales 4,500

Jan. 14 Deposited into bank 7,000

Jan. 16 Bank charged interest on overdraft 200

Jan. 20 Paid telephone bill by cheque 600

Jan. 25 Sale of goods and received cheque (deposited same day) 3,000

Jan. 27 Paid rent 800

Jan. 29 Drew cash for personal use 500

Jan. 30 Paid salary 1,000

 Jan. 31 Interest collected by bank 1,700

23. From the following particulars ascertain the balance that would appear in the Bank Pass Book of A at 31st [4]
December 2013:
i. The bank overdraft as per Cash Book on 31st December 2013 ₹ 63,400.
ii. Interest on overdraft for 6 months ending 31st December 2013, ₹ 1,600 is entered in the Pass Book.
iii. Bank charges of ₹ 300 for the above period are debited in the Pass Book.
iv. Cheques issued but not cashed prior to 31st December 2013 amounted to ₹ 11,680.
v. Cheques paid into bank but not cleared before 31st December 2013 were for ₹ 21,700.
vi. Interest on investments collected by the bank is credited in the Pass Book ₹ 12,000.
OR
On 30th June, 2023, the Cash Book of M/s Ravi and Shiv showed a balance of ₹4,000 at Bank. They had sent
cheques amounting to ₹20,000 to the bank before 30th June, but it appears from the Pass Book that cheques worth
only ₹8,000 had been credited before that date. Similarly, out of cheques of ₹10,000 issued during the month of June,
cheques for ₹500 were presented and paid in July.
The PassBook also showed the following payments:
i. ₹640 as premium on the life policy according to standing instructions; and
ii. ₹4,000 against a pro-note, as per instructions.
The Pass Book showed that the bank had collected ₹1,200 as interest on Government Securities. The bank had
charged interest ₹ 100 and bank charges ₹40. There was no entry in the Cash Book for the payments, interest etc.
Prepare the Bank Reconciliation Statement as on 30th June, 2023.
24. Pass the Journal entries for the following transactions: [6]

2023 ₹

April 1 Govind started business with cash 1,00,000

April 2 Purchased office furniture in cash 5,000

April 3 Purchased goods in cash 20,000

April 4 Purchased goods from Harsh & Co. 1,00,000

April 5 Sold goods against cash 20,000

April 6 Sold goods to Ram & Co. 75,000

April 7 Paid salary to staff in cash 15,000

April 8 Paid electricity bill 2,000

April 9 Paid telephone bill 500

April 10 Purchased stationery in cash 250

OR
Journalise the following transactions:

2017 Amount (₹)

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

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

 Dec.04 Purchased goods from Ashu 20,000

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

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

Dec.13 Sold goods to Suman 20,000

Dec.16 Received cheque from Suman 19,500

Discount allowed 500

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

Dec.22 Rent paid by cheque 2,000

Dec.23 Deposited into bank 16,000

Dec.25 Machine purchased from Parigya 10,000

Dec.26 Trade expenses 2,000

Dec.28 Cheque issued to Parigya 10,000

Dec.29 Paid telephone expenses by cheque 1,200

Dec.31 Paid salary 4,500

25. Pass journal entries to rectify the following errors in the books of Mohit, which were located after preparation of [6]
Trial Balance:
i. Goods of the value ₹ 5,000 returned by Anamika were entered in the Sales Book and posted therefrom to the
credit of her account.
ii. Payment of ₹ 1,000 to Rishi and ₹ 1,200 to Sunil was made but Rishi was debited with ₹ 1,200 and Sunil
with ₹ 1,000
iii. A sum of ₹ 375 owed by Arjit has been included in the list of sundry creditors.
iv. Credit sales to Mohit ₹ 14,000 were posted to the credit of his account.
OR
The following errors were found in the book of Rajan & Sons. Give the necessary entries to correct them.
i. Repairs made were debited to building account Rs 100.
ii. An amount Rs 200 withdrawn by the proprietor for his personal use has been debited to trade expenses account.
iii. Rs 200 paid for rent debited to landlord's account.
iv. Salary Rs 250 paid to a clerk due to him has been debited to his personal account.
v. Rs 200 received from Rina & Co has been wrongly entered as from Reena & Co.
vi. Rs 1400 paid in cash for a typewriter was charged to office expenses account.

26. On 1st April, 2021, M/s. Amit Bros. Drycleaners, purchased 5 Washing Machines for ₹ 15,000 each. They sold [6]

on 1st April, 2022 one machine for ₹ 12,500. They charged depreciation @ 10% by the Straight Line Method.
Prepare the Washing Machine Account, Washing Machine Disposal Account and Provision for Depreciation

Account for two years. Accounts are closed on 31st March every year.
OR
On 1.1.2011 Machinery was purchased for Rs 80,000. On 1.7.2012 additions were made to the account of Rs 40,000.
On 31.3.2013 machinery purchased on 1.7.2012 costing Rs 12,000 was sold for Rs 11,000 and on 30.6.2013
 machinery purchased on 1.1.2011, costing Rs 32,000 was sold for Rs 26,700. On 1.10.2013 additions were made to
the amount of Rs 20,000. Depreciation was provided at 10% p.a. on the Diminishing Balance Method.
Show the Machinery Account for three years from 2011 to 2013 (Year ended 31st December).
Part B
27. Profit = Capital at the end + ? - Capital introduced - Capital in the beginning. [1]

a) Sales b) Journal

c) Net Purchases. d) Drawings

OR
Two adjustments should be made to ascertain the profit

a) Capital introduced and sale b) Capital introduced and drawing

c) Purchase and drawing d) Capital introduced and purchase

28. Which of the following will be treated as drawings of the proprietor: [1]

a) Life Insurance Premium b) Advance Payment of Income Tax

c) Income Tax d) All of these

29. Following information is taken from the Trial Balance of a business: [1]
Sales: ₹ 1,00,000; Purchase: ₹ 60,000; Wages ₹ 7,000.
Closing stock was ₹ 3,000 more than opening stock. What was the Gross Profit?

a) ₹ 33,000 b) ₹ 40,000

c) ₹ 30,000 d) ₹ 36,000
OR
Calculate provision for doubtful debt. If debtor closing balance is Rs.3,400 and provision for the reserve of doubtful
debts at 10% on sundry debtors

a) Rs.2,060 b) Rs.3,400

c) Rs.340 d) Rs.3,060
30. Explain what is meant by capital receipts. Give examples. [3]
31. From the following information, prepare trading account for the year ended 31st March, 2013 [3]

Amt (Rs.)

Cost of goods sold 45,00,000

Sales 72,00,000

Closing Stock 2,40,000

32. Rajesh valued stock at the end of the year at ₹ 1,00,000. Goods costing ₹ 5,000 were destroyed by fire during the [3]
accounting period. Show the treatment if the goods are not insured.
33. Mr. Muneesh maintains his books of accounts from incomplete records. His books provide the information: [6]

April. 01, 2016 (₹) March. 31, 2017 (₹)

Cash 1,200 1,600

Bills receivable - 2,400

 Debtors 16,800 27,200

Stock 22,400 24,400

Investment - 8,000

Furniture 7,500 8,000

Creditors 14,000 15,200

He withdrew ₹ 300 per month for personal expenses. He sold his investment of ₹ 16,000 at 2% premium and
introduced that amount into business.
OR
Ram Prashad maintains his books on Single Entry System, and from them and the particulars supplied, the following
figures were gathered together on 31st March 2023:
Books Debts, ₹ 10,000, Cash in Hand, ₹ 510, Stock in Trade (Estimated) ₹ 6,000, Furniture and Fittings, ₹ 1,200,

Trade Creditors, ₹ 4,000, Bank Overdraft, ₹ 1,000. Ram Prashad stated that he started business on 1st April, 2022
with Cash ₹ 6,000 paid into bank but stocks valued at ₹ 4,000. During the year he estimated his drawings to be ₹
2,400. You are required to prepare the statement, showing the profit for the year, after writing off 10% for
depreciation on furniture and fittings.
34. The following balances were extracted from the books of M/s Panchsheel Garments on March 31, 2017. [6]

Account Title Debit Amount (₹) Account Title Credit Amount (₹)

Opening stock 16,000 Sales 1,12,000

Purchases 67,600 Return outwards 3,200

Return Inwards 4,600 Discount 1,400

Carriage inwards 1,400 Bank overdraft 10,000

General expenses 2,400 Commission 1,800

Insurance 4,000 Creditors 16,000

Scooter expenses 200 Capital 50,000

Salary 8,800

Cash in hand 4,000

Scooter 8,000

Furniture 5,200

Buildings 65,000

Debtors 6,000

Wages 1,200

1,94,400 1,94,400

Prepare the trading and profit and loss account for the year ended March 31, 2017 and a balance sheet as on that
date.
a. Unexpired insurance ₹ 1,000.
 b. Salary due but not paid ₹ 1,800.
c. Wages outstanding ₹ 200.
d. Interest on capital 5%.
e. Scooter is depreciated @ 5%.
f. Furniture is depreciated ₹ @ 10%.
g. Closing stock was ₹ 15,000.
OR
From the following ledger balances of Mr Charan Singh, prepare the trading and profit and loss account for the year
ended 31st March, 2013 and the balance sheet as at that date after making the necessary adjustments.

Particulars Amt (Rs) Particulars Amt (Rs)

Trade expenses 800 Purchases 82,000

Freight and duty15,000 2,000 Stock (1st April, 2010) 15,000

Carriage outwards 500 Plant and machinery (1st April, 2012) 20,000

Sundry debtors 20,600 Plant and machinery (additions on 1st October, 2012) 5,000

Furniture and fixtures 5,000

Return inwards 2,000 Drawings 6,000

Printing and stationery 400 Capital 80,000

Rent, rates and taxes 4,600 Provision for doubtful debts 800

Sundry creditors 10,000 Rent for premises sublet 1,600

Sales 1,20,000 Insurance charges 700

Return outwards 1,000 Salaries and wages 21,300

Postage arid telegraphs 800 Cash in hand 6,200

Cash at bank 20,500

Additional Information
i. Stock on 31st March, 2013 was Rs 14,000.
ii. Written-off Rs 600 as bad debts,
iii. Provision for doubtful debts is to be maintained @ 5%.
iv. Provision for depreciation on furniture and fixtures at 5% per annum and on plant and machinery at 20% per
annum.
v. Insurance prepaid was Rs 100.
vi. A fire occurred in the godown and stock of the value of Rs 5,000 was destroyed. It was insured and the insurance
company admitted full claim.
Series ARSP/08 Set ~ 8
Roll No. Q.P Code 15/8/8
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum Marks:
General Instructions: 80

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

2. This question paper is divided into two parts, Part A and B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Which of the following is mentioned on the vouchers at the top of the paper? [1]

a) Amount of the transaction b) Name of the person preparing it

c) Name of the firm d) Signature of the person preparing it

2. Assertion (A): All financial transactions relating to the business are first of all recorded in Ledger. [1]
Reason (R): Separate accounts are opened in the Ledger for purchases, sales, expenses, incomes, assets etc.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Withdrawal of cash from the business by the proprietor is credited to: [1]

a) Drawing A/c b) Profit and Loss A/c

c) Capital A/c d) Cash A/c

4. There will be ________ by same amount, when a land is purchased by paying the amount from bank account. [1]

a) Increase in asset, decrease in liabilities b) Decrease in asset, decrease in liabilities

c) Increase in asset, increase in liabilities d) Decrease in one asset, increase in another

asset
OR
An increase in provision for bad debt will

a) Decrease liabilities b) Increase Assets

c) Increase net income d) Increase liabilities

5. Cash memo is a source voucher for purchaser of goods [1]
 a) for credit sales b) for cash purchases

c) or credit purchases d) for cash sales

6. The main purpose of which branch of accounting is to record the business transactions in a systematic manner [1]
and to ascertain the profit or loss of the accounting period?

a) Corporate accounting b) Profit and loss accounting

c) Cost accounting d) Financial accounting

OR
________ refers to the entire body of the theoretical knowledge of accounting.

a) Accounting b) Measurement

c) Book keeping d) Accountancy

7. If the amount of any known liability cannot be determined accurately: [1]

a) Provision should be created b) Definite liability should be created

c) Should be shown as a contingent liability d) Reserve should be created

8. The data is classified for creating groups of accounts in the heads of : [1]

a) Assets, Owners' equity, Revenue and b) Assets, Capital, Liabilities, Revenue and
Expenses Expenses

c) Assets, Liabilities and Capital d) Capital, Revenue and Expenses

OR
Goods purchased on credit will increase the

a) Debtor b) Capital

c) liability d) Drawings
9. Money measurement concept ignores the recording of [1]

a) Cash purchases b) Cash sales

c) Qualitative Aspect d) Deposit money in bank

10. IASB upon coming into existence has adopted [1]

a) only IAS b) some IAS and SIC.

c) All IAS and SIC d) only SIC

11. ________ is the reserve, which is created for some specific purpose and can be utilised only for that purpose. [1]

a) Capital reserve b) Specific reserve

c) Revenue reserve d) General reserve

12. Pick the odd one out. [1]

a) Drawings b) Net assets

c) Owner's equity d) Net worth

13. Recording is made in the purchases book: [1]

a) After deducting cash discount b) After adding cash discount

 c) After adding a trade discount d) After deducting trade discount
14. If the business's owner withdraws cash for his/her personal use what will be the effect on capital? [1]

a) Increase in capital b) Remain the same

c) No effect on capital d) Decrease in capital

15. The following information is related to the Trade discount except: [1]

a) Encourage the debtors to pay the dues b) Persuade the buyer to buy more goods
promptly

c) Not recorded in the books d) Offered at an agreed percentage

OR
Intangible Asset is:

a) Goodwill b) Cash

c) Land d) Stock
16. The advantages of Purchase Book are: [1]

a) All of these b) Knowledge of total price of goods

purchased on credit

c) Easiness in preparing ledger d) Price of goods purchased from each supplier

17. The amount set aside for the purpose of providing any known liability, the amount of which cannot be [1]
ascertained with reasonable accuracy, is known as

a) Reserve b) Provision

c) Contingency fund d) Secret reserve

18. After balancing of accounts, these always show Debit Balance. Is it Correct? [3]
OR
If goods are given as charity, which accounts are debited and credited? Why?
19. R & Co. paid professional fee to Ram, an advocate. If applicable rate of CGST and SGST is 6% each, pass the [3]
Journal entry for payment of CGST and SGST.
OR
Which financial statements are prepared under Ind-AS?
20. What are the main classes of liabilities? [3]
21. Describe the purpose for the preparation of trial balance. [4]
22. Record the following transactions in a three column cash book and balance the book on 31st January, 2013 [4]

Amt Amt
Date Particulars Date Particulars
(Rs.) (Rs.)

2013 2013

Jan Jan
Cash balance 1,000 Bought goods 6,000
1 16

Jan Jan Paid Shyam by

Bank balance 14,500 3,700
1 19 cheque
 Jan Cash received from sale of shares 60,500 Discount received 300
1 from him

Jan Jan
Paid into bank 50,000 Drew from bank 3,000
2 20

Cash drawn from

Jan Purchased goods from M/sAgarwal for Rs. 13,000 and paid Jan
bank for personal 2,000
3 by cheque Rs. 12,000 22
use

Jan Jan
Paid Wages 2,500 Cash sales 1,700
4 24

Jan Received from Mohan a cheque for Rs. 9,800 against dues Jan Received from
18,000
5 of Rs. 10,000 in full settlement of his account 27 Sharma

Jan
Mohan's cheque deposited into bank Discount Allowed 500
8

Jan Jan Deposited cash into

Paid rent by cheque 1,500 15,000
14 28 bank

Jan Gave cheque for

2,000
28 cash purchases

Jan
30

23. Give any two points of difference between: [4]

i. Bank Reconciliation Statement and a Bank Statement.
ii. Cash Book and Pass Book.
OR
Prepare a Bank Reconciliation Statement as at 30th April, 2023 for Jatin Sales Private Limited from the information
given below:

(i) Bank Overdraft as per Cash Book on 30th April, 2023. 1,10,450

(ii) Cheques issued on 20th April, 2023 but not yet presented. 15,000

(iii) Cheques deposited but not yet credited by Bank. 22,750

(iv) Cheque deposited by a customer credited in account was not advised by the bank. 47,200

(v) Interest debited by bank on 27th April, 2023 but no advice received. 12,115

(vi) Subsidy received from the authorities by bank on our behalf, credited to the account. 22,000

(vii) Amount wrongly debited by the bank. 2,400

(viii) Amount wrongly credited by the bank. 5,000

24. Journalise the following transactions: [6]

i. Lakhan started business with cash Rs 50,000 and furniture Rs 10,000.

 ii. Purchased goods from Deepak on credit Rs 20,000
iii. Draw cash from office for his personal use Rs 5,000
iv. Goods given as charity Rs 1,000
v. Paid Rs 1,000 for life insurance premium of Lakhan
vi. Goods return to Deepak Rs 4,000.
OR
Pass Journal entries for the following transactions:
i. Tanuj started business with cash ₹ 5,00,000.
ii. Opened a bank account depositing ₹ 3,00,000.
iii. Invested in shares (personal) for ₹ 50,000, paid out of Saving Account.
iv. Bought goods (timber) for ₹ 3,00,000, paid half by cash and half by cheque.
v. Paid carriage for unloading the timber ₹ 5,000.
vi. Bank charges ₹ 2,000.
vii. Goods of ₹ 15,000 were used to make furniture and wages paid ₹ 5,000.
viii. Dividend collected by bank ₹ 5,000 wrongly credited in firm’s account.
ix. Tanuj sold his personal scooter for ₹ 35,000 and deposited the amount in firm’s bank account.
25. Pass necessary journal entries to rectify the following errors: [6]
i. Sales Return book overcast ₹ 1,000.
ii. Machinery purchased ₹ 9,600 from Karan, wrongly entered in Purchase Book as ₹ 6,900.
iii. Goods purchased from Rahil ₹ 5,000 wrongly entered in purchase return book. Although, Rahil’s account
correctly credited.
iv. Rent paid to Landlord ₹ 12,000, wrongly debited to his personal account.
v. ₹ 3,000 received from a customer, whose account was already written off as bad debt. No entry has been
passed in this regard.
OR
An accountant, while balancing his books found that there was a difference of ₹ 270 in the trial balance. Being
required to prepare the final accounts he placed the difference to a newly opened Suspense Account, which was
carried forward to the next year when the following errors were discovered:
i. Salary for the month of March was posted twice, ₹ 155
ii. Interest on investments collected by the bankers, were posted directly in concerned accounts through the pass
book, but no entry was made in the bank column of the cash book ₹ 75
iii. Goods worth ₹ 700 were distributed as free samples but this fact has not been taken into Books.
iv. Rent of ₹ 350 received from Abhi credited both to Rent Account and Abhi Account.
v. A purchase of a chair from Wallmart Furniture Mart for ₹ 65 has been entered in purchases book as ₹ 56
vi. Old Machinery sold to the proprietor Keshav for ₹ 400 was entered in Sales Book as sale to Krishna.
vii. Cash Purchases from Ajit ₹ 189 were recorded in Cash Book as well as in Purchases Book and posted from both.
viii. Closing Stock has been undervalued by ₹ 300
Give necessary rectifying entries and prepare the Suspense Account.

26. Shiksha & Company purchased a Machinery on 1st April, 2020, for ₹ 54,000 and spent ₹ 6,000 on its [6]

installation. On 1st December, 2021, it purchased another machine for ₹ 30,000.

On 30th June 2022, the first machine purchased on 1st April, 2020, is sold for ₹ 36,000 and on the same date it
 purchased new machinery for ₹ 80,000.
On December 1, 2023, the second machine (purchased on December 1, 2021) was also sold off for ₹ 26,000.
Depreciation was provided on machinery @ 10% p.a. on Original Cost Method annually on 31st March. Give the
machinery account for four years.
OR

Sharma & Co. whose books are closed on 31st March, purchased machinery for ₹ 1,50,000 on 1st April, 2020,

Additional machinery was acquired for ₹ 50,000 on 1st October, 2020. Certain machinery which was purchased for ₹

50,000 on 1st October, 2020 was sold for ₹ 40,000 on 30th September, 2022.

Prepare the Machinery Account and Accumulated Depreciation Account for all the years up to the year ended 31st
March, 2023. Depreciation is charged @ 10% p.a. on Straight Line Method. Also, show the Machinery Disposal
Account.
Part B
27. When closing capital is less than opening capital, it means [1]

a) Profit b) no profit no loss situation

c) Loss d) Loss, if there is no drawing

OR
Generally, incomplete records are maintained by:

a) Society b) Company

c) Government d) Trader
28. Balance sheet is prepared to know [1]

a) assets position b) financial performance

c) financial position d) liabilities position

29. In the Trial Balance are shown Debtors ₹ 2,400, Bad Debts ₹ 221, Bad Debts Provision ₹ 324. For creating a [1]
Provision for Doubtful debts @ 10% on debtors, the P & L A/c will be debited by:

a) 240 b) 9

c) 137 d) 343
OR
Closing Stock is valued at Cost or Net Realisable Value (Market Value), whichever is less because of

a) Consistency Concept b) Going Concern Concept

c) Accrual Concept d) Prudence Concept

30. State whether the following expanses are capital or revenue in nature: [3]

(i) Expenses on whitewashing and painting of a building purchased to make it ready for use.

(ii) ₹ 10,000 spent on constructing platform for a new machine.

(iii) Repair expenses of ₹ 25,000 incurred for whitewashing of factory building.

(iv) Insurance premium paid as renewal premium.

(v) Purchased a new car.

 (vi) Wages paid to install a machine.

(vii) Repairs carried out on existing car.

(viii) Office block of building repainted for ₹ 50,000.

(ix) Paid telephone bill of ₹ 2,500.

31. What are financial statements? What information do they provide. [3]
32. Why is Accrued Income transferred to the credit of Profit and Loss Account and shown as current asset in the [3]
Balance Sheet?
33. Pardeep Kumar keeps incomplete records. The Statement of Affairs of his business as at 1st April, 2022 was as [6]
follows:

Liabilities ₹ Assets ₹

Creditors 5,000 Cash in hand 400

Capital 70,000 Cash at Bank 1,600

Debtors 17,000

Stock 20,000

Furniture 6,000

Plant and Machinery 30,000

75,000 75,000

His position on 31st March, 2023 was: Cash in hand ₹ 1,000; Cash at Bank ₹ 2,000; Bill receivable ₹ 4,000;
Debtors ₹ 21,000; Stock ₹ 32,000; Furniture ₹ 8,000; Plant and Machinery ₹ 40,000 and Creditors ₹ 18,000.
He withdrew during the year ₹ 30,000, out of which he spent ₹ 18,000 for purchasing a scooter for the business.
Calculate his net profit for the year after the following adjustments and prepare a final Statement of Affairs as at
31st March, 2023:
i. Depreciate furniture and scooter @ 20%;
ii. 5% of the debtors are doubtful and ₹ 800 are absolutely bad.
iii. Make a provision of 5% on Bills Receivable also.
OR
Give any four points of difference between a statement of affairs and balance sheet.

34. From the following Trial Balance of Ram, prepare Trading and Profit & Loss Account for the year ending 31st [6]
March, 2023 and Balance Sheet as on that date:

Heads of Accounts L.F. Dr. (₹) Cr. (₹)

Drawings 15,000 ____

Capital ____ 3,50,000

Plant and Machinery 2,05,000 ____

Debtors 50,000 ____

Creditors ____ 28,000

Returns Inward 8,000 ____

Returns Outward ____ 7,000

Discount Allowed 7,000 ____

Discount Received ____ 6,000

Commission 15,000 ____

Interest on Bank Loan 12,000 ____

Furniture 55,000 ____

Provision for Doubtful Debts ____ 13,000

Wages 50,000 ____

Salaries 45,000 ____

Advertisement 15,000 ____

Rent and Taxes 13,000 ____

Purchases 2,60,000 ____

Sales ____ 4,00,000

Stock on 1st April, 2022 70,000 ____

Carriage 5,000 ____

Land and Building 98,000 ____

Cash in Hand 8,000 ____

Cash at Bank 20,000 ____

10% Bank Loan (Taken on 1st April, 2022) ____ 1,50,000

Input CGST 9,000 ____

Input SGST 9,000 ____

Output IGST ____ 15,000

Total 9,69,000 9,69,000

Adjustments:

i. Cost of stock on 31st March, 2023 was ₹ 37,000 and its market value was ₹ 35,000.
ii. Wages outstanding were ₹ 6,000 and salaries outstanding were ₹ 5,000 on 31st March, 2023.
iii. Depreciate Land and Building @ 2%, Plant and Machinery @ 10% p.a. and Furniture @ 15% p.a.
iv. Purchase includes purchase of machinery for ₹ 10,000 on 1st October, 2022.
v. Debtors include bad debts of ₹ 2,000, Maintain a provision for doubtful debts @ 10% on Debtors.
vi. Manager is entitled to get 10% commission on profit before charging such commission.
OR
The following is the trial balance of Swati on 31st March, 2013.

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

 Purchases 3,00,000

Debtors 4,00,000

Interest earned 8,000

Salaries 60,000

Sales 6,42,000

Purchases return 10,000

Wages 40,000

Rent 30,000

Sales return 20,000

Bad Debts written-off 14,000

Creditors 2,40,000

Capital 2,00,000

Drawings 48,000

Provision for doubtful debts 12,000

Printing and stationery 16,000

Insurance 24,000

Opening stock 1,00,000

Office expenses 24,000

Provision for depreciation 40,000

4,000

11,16,000 11,16,000

Prepare the trading and profit and loss account for the year ended 31st March, 2013 and the balance sheet as at that
date for making the following adjustments.
i. Depreciate furniture and fittings by 10% on original cost.
ii. Make a provision for doubtful debts equal to 5% of debtors.
iii. Salaries for the month of March amounted to Rs 6,000 were unpaid which must be provided for. The balance in
the account includes Rs 4,000 paid in advance.
iv. Insurance is prepaid to the extent of Rs 4,000.
v. Provide Rs16,000 for office expenses.
vi. Stock valued at Rs12,000 were put up by Swati for his personal use, the cost of which has not been adjusted in the
books of accounts.
vii. Closing stock valued at Rs 1,36,000 (net realisable value Rs 1,20,000).
Series ARSP/09 Set ~ 9
Roll No. Q.P Code 15/9/9
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum 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 B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Accounting voucher is prepared from: [1]

a) Accounting Voucher b) Source voucher

c) Both Source voucher and Journal entry d) Journal entry

2. Assertion (A): Accounting information must be reliable. Reliability implies that the information should be [1]
presented in such a simple and logical manner that they are understood easily by their users.
Reason (R): Accounting is influenced by personal judgements.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Debit mean [1]

a) a decrease in asset b) an increase in the proprietor’s equity

c) an increase in asset d) an increase in liability

4. Accounting equation is also known as ________ equation. [1]

a) Fundamental b) Balance sheet

c) Transactional d) Arithmetic finance

OR
Calculate total expenses if capital Rs.2,00,000, creditors Rs. 50,000, revenue Rs.5,00,000 and asset Rs. 5,00,000.

a) Rs.5,50,000 b) Rs.7,00,000

c) Rs.2,50,000 d) Rs.3,50,000
5. Which source document is sent to inform about the credit made in the account of the buyer along with the [1]
reasons mentioned in it?
 a) Credit receipt b) Credit note

c) Credit bill d) Credit slip

6. Which qualitative characteristic of accounting information is reflected when accounting information is clearly [1]
presented?

a) Comparability b) Reliability

c) Relevance d) Understandability
OR
Users of Accounting Informations are

a) All of these b) Owners of Business

c) Management of Business d) Creditors

7. Provisions are necessary for: [1]

a) To ascertain true financial position b) To ascertain true profit or loss

c) To provide for known losses in the future d) All of these

8. Balance of Capital Account is shown as: [1]

a) Liability Account b) Revenue Account

c) Asset account d) Capital Account

OR
Real account (which include cash and all other assets) will usually show:

a) Debit Balance b) Both debit and credit balance

c) Negative balance d) Credit Balance

9. Closing stock is valued at lower of cost or market price. Which concept of accounting is applied here: [1]

a) Prudence b) Revenue concept

c) Cost concept d) Matching concept

10. Under which accounting concept fixed assets are recorded at cost without considering the market price (whether [1]
low or high).

a) Historical Cost Principle b) Matching concept

c) Revenue concept d) Prudence concept

11. Reserves can be meant for the purpose of: [1]

a) meeting a future contingency b) strengthening the general financial position

of the business

c) All of these d) redeeming a long-term liability

12. Capital is: [1]

a) revenue b) internal as well as external liability

c) internal liability d) external liability

13. Sales book is used to record: [1]
 a) All credit and cash sales b) Credit sale of goods

c) All credit sales d) Credit sale of asset

14. As a result of the following transactions, the total of accounting equation will be ________. [1]
i. Started business with cash ₹ 2,00,000.
ii. Purchased furniture ₹ 25,000.
iii. Purchased goods on credit ₹ 60,000.

a) ₹ 2,25,000 b) ₹ 2,60,000

c) ₹ 2,35,000 d) ₹ 2,85,000
15. Wasting Assets do not include: [1]

a) Patents b) Land and buildings

c) Trade Marks d) Mines

OR
Consider the following items:
i. Prepaid Salary
ii. Accrued Interest (Receivable)
iii. Loan (Short term)
iv. Bank Overdraft
Current Liability would include:

a) iii, iv b) iv, iii, i

c) i, ii, iii, iv d) ii, iii, iv

16. Recording is made in journal proper of [1]

a) Transactions which are not recorded in any b) All credit transactions

subsidiary book.

c) All transactions d) All cash transactions

17. Reserve created by undervaluation of closing stock is called: [1]

a) Secret Reserve b) Capital Reserve

c) General Reserve d) Specific Reserve

18. A ledger provides a number of utilities. List any three such utilities. [3]
OR
What is an Opening Entry? Give an example.
19. What do you understand by cash and accrual basis of accounting? [3]
OR
Briefly explain the elements of Statement of Comprehensive Income.
20. Distinguish between Capital Expenditure and Revenue Expenditure. [3]
21. Following Trial Balance is given but it is not correct. Prepare correct Trial Balance. [4]

Debit Balances ₹ Credit Balances ₹

Building 3,00,000 Capital 3,68,000

 Machinery 85,000 Furniture 28,000

Returns Outward 13,000 Sales 5,20,000

Bad Debts 14,000 Debtors 3,00,000

Cash 2,000 Interest Received 13,000

Discount Received 15,000

Bank Overdraft 50,000

Creditors 2,50,000

Purchases 5,00,000

12,29,000 12,29,000

22. Enter the following transactions in the Two Column Cash Book of Mr. Mahesh: [4]

2023 ₹

Jan. 1 Cash in Hand 2,200

Cash at Bank 50,000

Purchased goods for ₹ 75,000; Trade Discount 20%; CGST 6%, SGST 6%; Payment made by
Jan. 3
Cheque

Jan. 4 Sold goods for ₹ 40,000; Trade Discount 15%; IGST 12%; Payment received by Cheque

Jan. 5 Received a cheque from Nilesh 1,000

Jan. 8 Cheque received from Nilesh endorsed to Sohan in full settlement of his account of ₹ 1,050

Jan.
Paid Life Insurance premium of Mr. Mahesh 100
10

Jan.
Received a cheque from Preetam in full settlement of his account of ₹ 750. 700
13

Jan.
Preetam's cheque returned dishonoured by bank ____
16

Jan.
Deposited into Bank, the balance of Cash in excess of ₹ 250
20

23. Prepare Bank Reconciliation Statement from the following particulars and show the balance as per Cash Book [4]
on 31st March, 2023:
i. Balance as per Pass Book on 31st March 2023 overdrawn ₹ 10,000.
ii. Cheques drawn in the last week of March 2023 but not cleared till 3rd April 2023 ₹ 20,000.
iii. Interest on Bank overdraft not entered in the Cash Book ₹ 1,500.
iv. Cheques of ₹ 20,000 deposited in the bank in March 2023 but not collected and credited till 3rd April 2023.
v. ₹ 100 Insurance Premium paid by the bank under a standing order has not been entered in the Cash Book.
vi. A draft of ₹ 10,000 favouring Amit & Co. was issued by the bank charging commission of ₹ 200. However,
in the Cash Book entry was passed by ₹ 10,000.
OR
 Prepare Bank Reconciliation Statement as on 31st March, 2023 from the following transactions:
i. Balance as per Bank Pass Book (Dr.) ₹ 12,000 as on 31st March, 2023.
ii. On 28th March, 2023 cheques had been issued for ₹ 70,000 of which cheques of ₹ 50,000 only had been debited
up to 31st March, 2023.
iii. Cheques of ₹ 35,000 had been deposited into bank for collection but out of these cheques of ₹ 3,000 had been
credited in the Bank Pass Book.
iv. The bank had charged ₹ 500 as interest on overdraft and the intimation of which was received on 2nd April, 2023.
v. Bank had collected ₹ 600 interest on Aman's investment. Aman was not aware of it.
vi. A cheque for ₹ 200 has been debited in bank column of Cash Book by Aman, but it was not deposited in bank.
vii. A cheque for ₹ 900 was debited twice in the Cash Book.
viii. A cheque of ₹ 5,000 credited in the Pass Book on 28th March, 2023, on being dishonoured is debited in the Pass
Book on 1st April, 2023. Entry in the Cash Book for dishonour of the cheque was not recorded until 15th April.
24. Raja Ram started a real estate agency business with a cash investment of Rs 42,000. The following business [6]
transactions have been recorded
i. Paid 3 months advance rent for office accommodation Rs 2,520.
ii. Bought car for office Rs 25,200.
iii. Purchased office furniture Rs 8,400.
iv. Bought office typewriter from Comprehensive Company 73,600.
v. Sold extra office furniture at cost to Amar for Rs 1200. Amar paid Rs 720 in cash and accepted a bill at 3
months for the balance.
vi. Veer paid the amount of the bill at maturity and Amar paid half the amount he owed to Comprehensive
Company.
vii. Collected Rs 7,200 as commission.
viii. Paid telephone bill amounting to Rs 180.
OR
Pass journal entries for the following:
2023 March 1 Bought goods from Vinay worth ₹ 1,00,000 at 20% trade discount and 5% cash discount. Paid full
amount at the time of purchase itself.
2023 March 3 Bought goods from Teena for ₹ 2,00,000 at 5% cash discount and 10% trade discount. Half of the
amount paid by cheque at the time of purchase.
2023 March 4 Sold goods to Neeru for ₹ 50,000 at terms 4% cash discount and 20% trade discount. Half the amount
received by cash and balance half by cheque on the same day.
2023 March 6 Sold goods to Anu for ₹ 1,00,000 on terms 10% trade discount and 5% cash discount if the payment is
received within fifteen days. 80% payment is received on March 18th by cheque.
2023 March 20 Sold goods to Simmy for ₹ 1,00,000 at 20% trade discount and 10% cash discount if the payment is
received within ten days. She paid half the amount on March 26th and 30% of the remainder on March 31st.
25. Rectify the following errors: [6]
i. Goods for ₹ 5,500 were purchased from Royal Traders on credit, but no entry has yet been passed.
ii. Purchase Return for ₹ 1,500 not recorded in the books.
iii. Goods for ₹ 2,000 sold to Sita Traders on Credit were entered in the sales book as ₹ 200 only.
iv. Goods of the value of ₹ 1,800 returned by Suraj & Co. were included in stock, but no entry was passed in the
books.
 v. Goods purchased for ₹ 900, entered in the purchases book as ₹ 9,000
vi. An invoice for goods sold to X was overcast by ₹ 100
OR
Give Journal Entries to rectify the following errors:
i. Goods purchased from Ashok for ₹ 2,600 were recorded in Sales Book by mistake.
ii. Goods for ₹ 4,400 sold to Dharmendra was passed through Purchase Book.
iii. A customer returned goods worth ₹ 1,000. It was recorded in the Purchase Return Book.
iv. A credit sale of ₹ 126 to Ritesh was entered in the books as ₹ 162.
v. The sale of old chairs and Table for ₹ 700 was treated as a sale of goods.
vi. Rent of proprietor’s residence, ₹ 800, debited to Rent A/c.
26. On 1st January, 2011, Satkar Transport Ltd purchased 3 buses for ₹ 10,00,000 each. On Ist July, 2013 one bus [6]
was involved in an accident and was completely destroyed and ₹ 7,00,000 were received form the insurance
company in full settlement. Depreciation is written-off @ 15% per annum on diminishing balance method.
Prepare bus account from 2011 to 2014. Books are closed on 31st December, every year.
OR
Ganga Ltd. purchased a machinery on January 01, 2014 for ₹ 5,50,000 and spent ₹ 50,000 on its installation. On
September 01, 2014 it purchased another machine for ₹ 3,70,000. On May 01, 2015 it purchased another machine for
₹ 8,40,000 (including installation expenses). Depreciation was provided on machinery @10% p.a. on original cost
method annually on December 31. Prepare:
i. Machinery account and depreciation account for the years 2014, 2015, 2016 and 2017.
ii. If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision
for depreciation account for the years 2014, 2015, 2016 and 2017.
Part B
27. A limited company cannot maintain its accounts under Single entry system because of [1]

a) accrual basis of accounts b) legal restrictions and follow accrual basis of

accounts

c) Cash basis of accounting d) legal restrictions

OR
Drawings - Rs.8,000, loss during the year-Rs.2,000, capital at the end - Rs.36,000, Capital introduced during the
year- Rs.,[Link] Capital in the beginning

a) Rs.34,000 b) Rs.40,000

c) Rs.48,000 d) Rs.46,000
28. Opening stock Rs.2,00,000; purchases Rs. 3,50,000; closing stock Rs.1,20,000; Wages Rs.2,500; freight [1]
Rs.4,500; carriage outward Rs. 5,500; trade expenses Rs. 2,500. The percentage of gross profit on sales is 20%.
Calculate gross profit

a) Rs.546350 b) Rs 109250

c) Rs.546520 d) Rs.348900
29. Prepaid Expenses, if given in the Trial Balance is shown in [1]

a) Profit and Loss Account, as a deduction b) Balance Sheet

from the expense and in the Balance Sheet,
 as an asset.

c) Trading Account, as a deduction from the d) Profit and Loss Account, as a deduction
expense from the expense
OR
If Prepaid Wages is given in Trial Balance, it is shown in:

a) Debit of P & L A/c b) Debit of Trading A/c

c) Debit of Trading A/c and Assets d) Assets

30. State with reasons whether the following receipts would be treated as Capital or Revenue: [3]
i. ₹ 5,000 received from a customer whose account was previously written off as bad.
ii. ₹ 20,000 received from sale of the old machine.
iii. ₹ 2,60,000 received from sale of stock-in-trade.
iv. ₹ 5,00,000 is contributed by a partner as capital.
v. Took a loan of ₹ 10 Lac from HDFC.
vi. Received ₹ 4 Lac as subsidy from State Government.
vii. Received ₹ 8 Lac as grant from the State Government for the construction of quarters for the staff.
31. Calculate Net Sales and G.P. from the following: Cost of Goods Sold ₹ 4,50,000, G.P. 25% on Sales. [3]
32. A Manager is entitled to a commission of 10 % on net profit before charging the commission. Net profit before [3]
charging the commission is ₹ 1,00,000. Find the commission payable to the Manager. [Commission payable to
Manager - ₹ 10,000.]
33. Siya maintains her books of account from Incomplete Records. Her books provide the following information: [6]

1st April 31st March

Particulars
2022 (₹) 2023 (₹)

Cash 1,200 4,000

Debtors 16,800 27,200

Stock 22,400 24,400

Investments ____ 8,000

Furniture 7,500 8,000

Creditors 14,900 11,600

She withdraws ₹ 500 per month for personal expenses. She sold her Investments ₹ 16,000 at 5% premium and
introduced the amount into a business.

You are required to prepare a Statement of Profit or Loss for the year ending 31st March 2023.
OR
Sheetal maintains her books of accounts from Incomplete Records. Her books provide the following information:

1-4-2022 (₹) 31-3-2023 (₹)

Cash 12,000 16,000

Bill receivable ____ 24,000

Debtors 1,68,000 2,72,000

 Stock 2,24,000 2,44,000

Investment ____ 80,000

Furniture 75,000 80,000

Creditors 1,40,000 1,52,000

She withdrew ₹ 1,000 per week for personal expenses. She sold her investments of ₹ 1,60,000 at 2% premium and
introduced that amount into the business.
You are required to prepare a statement of profit or loss for the year ending March 31, 2023.
34. Prepare Trading and Profit & Loss Account and Balance Sheet from the following balances, relating to the year [6]

ending 31st March, 2023:

₹ ₹

Capital 10,00,000 Wages 5,00,000

Creditors 1,70,000 Bank 1,00,000

Returns Outward 50,000 Repairs 5,000

Sales 16,40,000 Stock (1.4.2022) 2,00,000

Plant and Machinery 4,00,000 Rent 40,000

Sundry Debtors 2,40,000 Manufacturing Expenses 80,000

Drawings 1,00,000 Trade Expenses 70,000

Purchases 10,50,000 Bad Debts 20,000

Returns Inward 30,000 Carriage 15,000

Fuel and Power 10,000

Additional Information:
i. Closing Stock was valued at ₹ 1,45,000.
ii. Depreciate Plant and Machinery by ₹ 40,000.
iii. Allow 5% interest on capital.
iv. ₹ 4,000 is due for repairs.
OR
The trial balance of M/s Taj & Co as on 31st December, 2013 was as follows.

Name of Accounts Amt(Rs) Name of Accounts Amt(Rs)

Purchases 1,62,505 Sales 2,52,400

Sundry debtors 50,200 Provision for doubtful debts 5,200

Opening stock 26,725 Sundry creditors 30,526

Wages 23,137 Bills payable 3,950

Salaries 5,575 Outstanding wages 2,000

Furniture 7 250 Trade expenses accrued but not paid 700

Postage 4,226 Capital A/c 10,000

Power and fuel 1350

Trade expenses 5331

Bad debts 525

Loan to Suraj @ 10% per annum(1st September, 2013) 3,000

Cash at bank 10,000

Drawings A/c 4,452

3,04,776 3,04,776

Prepare the trading and profit and loss account for the year ended 31st December, 2013 and the balance sheet after
considering the following information.
i. Depreciation on Furniture to be charged @10%.
ii. Debtors include an item of Rs 500 due from a customer who has become insolvent.
iii. Provision for doubtful debts @ 5% on sundry debtors is to be maintained.
iv. Goods valued at Rs 1,500 destroyed by fire and insurance company admitted a claim for Rs 1,000.
v. Stock on 31st December, 2013 was Rs 12,550
Series ARSP/10 Set ~10
Roll No. Q.P Code 15/10/10
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum 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 B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Cash memo is prepared when goods are sold [1]

a) both on credit and cash b) on credit

c) On transfer d) on cash
2. Assertion (A): Accounting is merely concerned with recording of the financial events. [1]
Reason (R): Accounting also provides insightful information that helps businesses in their decision making
process.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Debit mean [1]

a) a decrease in asset b) an increase in the proprietor’s equity

c) an increase in asset d) an increase in liability

4. Goods costing Rs.15,000 were sold for cash at a profit of 20%. By what amount cash increase [1]

a) Rs.13,000 b) Rs.12,000

c) Rs.18,000 d) Rs.15,000
OR
Goods costing Rs. 15,000 were sold for cash at a profit of 20%. By what amount stock account will decrease:

a) Rs.20,500 b) Rs.15,000

c) Rs.25,000 d) Rs.1,500
5. Pulkit has returned goods worth ₹20,000 to Mohan as he found it defective. Which document will be prepared [1]
by Mohan?
 a) Credit note b) Debit note

c) Invoice/bill d) Credit voucher

6. ________ need the information to form policies at the macro level and for providing subsidies. [1]

a) Competitors b) Management

c) Tax authorities d) Government and its agencies

OR
Stores is one of the accounting terms used to describe certain kind of materials in the production process. Which of
the following is an example of stores?

a) Lubricants b) Packing materials

c) All of these d) Spare parts of machinery

7. Reserve is created from: [1]

a) Liabilities b) Assets

c) Profits d) Losses
8. The data is classified for creating groups of accounts in the heads of: [1]

a) Assets, Liabilities and Capital b) Assets, Owners’ equity, Revenue and

Expenses

c) Assets, Capital, Liabilities, Revenue and d) Capital, Revenue and Expenses

Expenses
OR
Sundry Creditors Account is a:

a) Liability Account b) Asset account

c) Capital Account d) Revenue Account

9. To promote worldwide uniformity in published accounts, the International Accounting Standards Committee [1]
(IASC) has been set up in June

a) 1975 b) 1972

c) 1973 d) 1971
10. According to the Convention of Conservatism: [1]

a) Recording is made of outstanding expenses b) Depreciation is charged on assets

c) Provision is made for bad and doubtful d) All of these

debts
11. Reserves are important because they help in: [1]
A. meeting the future contingencies
B. strengthening the financial position of the business
C. redemption of liabilities like debenture

a) (A) b) All of these

c) (B) d) (C)
12. Which of the following is an asset? [1]

a) Sales Return b) Purchases

c) Interest Received d) Machinery

13. If XYZ Electronics Ltd. purchases 20 TV @ ₹2,000 per piece and 15 tape recorders @ ₹12,500 per piece. There [1]
was a trade discount of 20%. What will be the amount recorded in the purchase book?

a) ₹2,27,500 b) ₹1,87,500

c) ₹40,000 d) ₹1,82,000
14. Payment to a creditor means [1]

a) Increase in asset and increase in liability b) Increase in asset and decrease in liability.

c) Decrease in asset and increase in liability. d) Decrease in asset and decrease in liability.
15. Which of the following is Revenue Expenditure? [1]

a) Purchase of Investments b) Expenses on purchase of Machinery

c) Building Construction Expenses d) Repair Expenses

OR
The amount invested by the proprietor in a business is called ________.

a) capital b) revenues

c) cash d) loan
16. ________ is not a subsidiary book. [1]

a) Sales Book b) Ledger

c) Purchase Return Book d) Purchase Book

17. To whom do the reserves belong to: [1]

a) Debtor b) Creditors

c) Seller d) Proprietor
18. Write the process of preparing ledger from a journal. [3]
OR
Journalise the following:

1. Purchased goods for ₹ 25,000 for Cash and paid ₹ 200 for carriage on these goods.

2. Purchased goods for ₹ 40,000 on Credit from Suraj and paid ₹ 500 for carriage on these goods.

3. Purchased machinery for ₹ 20,000 and spent ₹ 500 on its carriage and ₹ 300 on its installation.

4. Purchased goods from Ajay for ₹ 15,000.

5. Sold 
rd of the above goods at a profit of 20% on cost.

6. Goods costing ₹ 12,000 sold to Mr. X, issued an invoice at 25% above cost less 10% trade discount.

7. Provide 20% depreciation on furniture costing ₹ 10,000

8. Gave as charity - Cash ₹ 500 and Goods ₹ 2,000

19. Explain the need for IFRS. [3]

 OR
Production at a factory had to stop for a week due to a labour strike. The owner estimated the loss of production and
the likely loss of profit arising out of the situation. He directed the accountant to record the loss in the books of
account. Is the owner correct in recording the likely loss? Give reasons.
20. Distinguish between Loss and Expense. [3]
21. From the following information, draw up a Trial Balance in the books of Shri Haridas Chaki as on 31st March, [4]
2023:
Capital ₹ 1,40,000; Purchases ₹ 36,000; Discount Allowed ₹ 1,200; Carriage Inwards ₹ 11,000; Sales ₹ 60,000;
Returns Inward ₹ 300; Returns Outward ₹ 700; Plant and Machinery ₹ 1,15,300; Stock on 1st April, 2022 ₹
16,700; Sundry Debtors ₹ 20,200; Sundry Creditors ₹ 12,000; Investments ₹ 3,600; Commission Received ₹
1,800; Cash in Hand ₹ 100; Cash at Bank ₹ 10,100 and Stock on 31st March, 2023 (not adjusted) ₹ 20,500.
22. Prepare double column cash book from the following transactions for the year August 2017: [4]

01 Cash in hand 17,500

Cash at bank 5,000

03 Purchased goods for cash 3,000

05 Received cheque from Jasmeet 10,000

08 Sold goods for cash 7,000

10 Jasmeet’s cheque deposited into bank

12 Purchased goods and paid by cheque 20,000

15 Paid establishment expenses through bank 1,000

18 Cash sales 7,000

20 Deposited into bank 10,000

24 Paid trade expenses 500

27 Received commission by cheque 6,000

29 Paid Rent 2,000

30 Withdrew cash for personal use 1,200

31 Salary paid 6,000

23. Prepare Bank Reconciliation Statement from the following particulars on 31st July 2023: [4]

i. Balance as per the Passbook ₹ 50,000

ii. Three cheques for ₹ 6,000, ₹ 3,937 and ₹ 1,525 issued in last week July 2023 were presented for payment to
the bank in August 2023.
iii. Two cheques of ₹ 500 and ₹ 650 sent to the bank for collection were not entered in the Pass Book by July 31,
2023.
iv. The bank charged ₹ 460 for its commission and allowed interest ₹ 100 which were not mentioned in the
Bank Column of the Cash Book.
OR
 The credit balance as per cash book is Rs 1,500. Cheques for Rs 400 were deposited but were not collected. The
cheques issued but not presented were Rs 100, Rs 125 and Rs 50. Balance as per pass book will be.
24. Journalise the following transactions of Govind: [6]

2023 ₹

Jan. 1 Govind started business with cash 2,00,000

Jan. 2 Paid into bank 60,000

Jan. 3 Bought goods from Pawar & Co. 20,000

Jan. 3 Paid cartage on goods purchased 300

Jan. 4 Purchased furniture 2,000

Jan. 4 Paid advance for purchase of HP Printers for ₹ 15,000 5,000

Jan. 4 Purchased calculator 1,000

Jan. 4 Purchased computer and paid by cheque 13,000

Jan. 6 Paid for Mobile bill and Internet (Office) 5,700

Jan. 8 Sold goods for cash 4,000

Jan. 9 Sold goods to Siya & Co. 10,000

Jan. 9 Paid cartage on goods sold to Siya & Co. 200

Jan. 15 Paid to Pawar & Co. on account 17,500

Jan. 25 Sold goods to Rao & Co. 5,600

Jan. 27 Received cheque from Siya & Co. in settlement of amount due from them 9,750

Jan. 31 Paid for electricity charges 1,000

Jan. 31 Paid salary to office staff 1,500

Jan. 31 Cash withdrawn for hospital expenses of owner 7,500

OR
Pass the Journal entries for the following transactions of Suraj:

2023 ₹

April
Suraj introduced cash as capital 1,00,000
1

Gave cheque from his Savings Account 10,00,000

April
Purchased goods of ₹ 1,00,000 against cheque less 10% Trade Discount
2

April
Issued cheque as advance for Machinery 1,00,000
2

April Purchased Goods of ₹ 2,00,000 less 25% Trade Discount and paid immediately availing Cash
3 Discount of 2%
 April Sold goods to Ritik against cheque 50,000
7

April
Sold goods to Ramesh ₹ 25,000 less 10% Trade Discount
10

April
Received cheque from Ramesh and allowed 2% Cash Discount
14

April
Cheque received from Ramesh deposited in bank
16

April
Cheque received from Ramesh was dishonoured, Bank charged bank charges 200
20

April
Paid Life Insurance Premium of Suraj by Bank Draft. Paid bank charges of ₹ 100 10,000
25

April
Amount transferred to fixed deposit 5,00,000
30

25. There was an error in the Trial Balance of Ravi Gupta on 31st March 2023 and the difference in books was [6]
carried to the Suspense Account. On going through the books you find that.
i. ₹ 540 received from Madhav was posted to the debit side of his account.
ii. ₹ 100 being purchases returns was posted to the debit of Purchases Account.
iii. Discount of ₹ 300 received were posted to the debit of Discount allowed Account.
iv. ₹ 374 paid for motor car repairs was debited to Motor Car Account as ₹ 174.
v. ₹ 400 paid to Nitin was debited to the account of Mahesh.
Pass the Journal Entries to rectify the above errors, and state what amount was carried to the Suspense
Account.
OR
Trial Balance of Anurag did not agree. It showed an excess credit ₹ 10,000. Anurag put the difference to suspense
account. He located the following errors:
i. Sales Returns book overcast by ₹ 1,000.
ii. Purchases book was undercast by ₹ 600.
iii. In the sales book, a total of page No. 4 was carried forward to page No. 5 as ₹ 1,000 instead of ₹ 1,200 and total
of page No. 8 was carried forward to page No. 9 as ₹ 5,600 instead of ₹ 5,000.
iv. Goods returned to Ram ₹ 1,000 were recorded through Sales Book.
v. Credit purchases from M & Co. ₹ 8,000 were recorded through Sales Book.
vi. Credit purchases from S & Co. ₹ 5,000 were recorded through sales Book. However, S & Co. were correctly
credited.
vii. Salary paid ₹ 2,000 was debited to Employee's Personal Account.
26. Calculate annual depreciation and rate of depreciation under Straight Line Method in each of the alternative [6]
cases:

Purchase Price of Installation Estimated Scrap Estimated Useful Life (in

Case
Machinery (₹) Charges (₹) Value (₹) Years)
 (a) 1,80,000 20,000 10,000 5

(b) 4,75,000 25,000 50,000 5

(c) 90,000 10,000 20,000 10

(d) 3,40,000 60,000 40,000 10

(e) 90,000 10,000 20,000 4

OR
The cost of the Machinery in use with Pramod & Co. on 1st April 2013 was Rs 3,00,000 against which the
depreciation provision stood at Rs 1,00,000 on that date. The firm provided depreciation at 10% on the diminishing
value.
On 1st October 2013, a machine costing Rs 40,000 purchased on 1st April 2011 was sold for Rs 32,000 and on the
same date, another machine was purchased for 50,000. Show the following accounts in the books of Pramod & Co.
for the year 2013-14:
i. Machinery Account
ii. Provision for Depreciation Account
iii. Machinery Disposal Account
Part B
27. Calculate Drawing from the following information: Profit: Rs.4,000, Opening capital-Rs.30,000, Closing [1]
capital- Rs.35,000, fresh capital-Rs.6,000

a) Rs.12,000 b) Rs.5,000

c) Rs.500 d) Rs.16,000
OR
Capital in the beginning - Rs.16,000, profit made during the year - Rs.6,000, capital at the end - Rs.26,000, Capital
introduced during the year- Rs. 8,000. Calculate drawings:

a) Rs.8,000 b) Rs.10,000

c) Rs.20,000 d) Rs.4,000
28. Preliminary expenses are [1]

a) Fictitious asset b) Revenue receipt.

c) Deferred capital receipt. d) Deferred revenue receipt

29. A machine was purchased in U.P. During transit, the machine was damaged and the cost of repairs incurred is ₹ [1]
20,000. This expense is treated as:

a) Capital expense b) Revenue expense

c) cost d) Deferred Revenue expense

OR
Income tax in case of sole trader is treated as

a) Business expenses b) Personal expenses

c) Owner expense d) Debtors expenses

30. State with reasons whether following are Capital or Revenue Expenditures: [3]
 i. Customs duty paid on import of machinery.
ii. ₹ 5,000 spent on repainting the factory.
iii. Repairs for ₹ 2,000 of the machine.
iv. ₹ 10,000 paid for the electricity bill.
31. Explain the objects of preparing Profit and Loss Account. [3]
32. Give Journal entries for the following adjustments in final accounts: [3]
i. New Machinery was purchased for ₹ 1,00,000, paid as follows:
ii. An old machine valued at ₹ 10,000 (Book Value Nil) was given in exchange.
a. Balance amount by cheque.
b. The new machine was recorded at the net amount.
iii. New furniture was purchased for ₹ 50,000 and in exchange old furniture valued at ₹ 5,000 (Book Value ₹
2,000) was given. Entry for purchase was recorded at ₹ 45,000 in the books of account.
iv. A new car for ₹ 5,00,000 was purchased and Amar (proprietor) gave his personal car valued at ₹ 1,00,000 in
exchange. Car was recorded in the books of account at ₹ 4,00,000.
v. The advance of ₹ 50,000 for the purchase of a building remained unadjusted.
vi. An old discarded asset was sold for ₹ 5,000 against cash which was used by the proprietor for his personal
use. ₹ 5,000 was included in Cash-in-Hand.
vii. Amrish, proprietor of Amrish & Co. sold his old car for ₹ 2,00,000 against cheque which is deposited in his
savings account.
33. Gopal Sharma maintains incomplete records of his business. He wants to know the result of his business on 31st [6]
March, 2023 and for that following information are available:

items 1st April, 2022 (₹) 31st March, 2023(₹)

Cash in hand 1,50,000 1,75,000

Bank balance 7,50,000 6,00,000

Furniture 1,00,000 1,00,000

Stock 5,00,000 4,50,000

Creditors 3,50,000 4,00,000

Debtors 2,50,000 3,00,000

Personal expenses of Gopal Sharma paid from business account amounted to ₹ 4,80,000 and goods worth ₹
20,000 were withdrawn by him for personal use. He sold ornaments of his wife for ₹ 3,50,000 and invested that
amount into the business. Calculate his profit or loss.
OR
Mr. A started business with a capital ₹ 5,00,000. At the end of the year his position was:

Particulars ₹

Cash in hand 15,000

Cash at bank 70,000

Sundry debtors 1,20,000

Stock 2,40,000
 Furniture 75,000

Machinery 2,00,000

Sundry creditors on this date totalled ₹ 80,000. During the year, he introduced a further capital of ₹ 1,50,000 and
withdrew for household expenses ₹ 90,000.
You are required to calculate profit or loss during the year.
34. From the following figures prepare the Trading and Profit and Loss Account for the year ended 31st March, 2023 [6]
and the Balance Sheet as at that date:-

Particulars ₹ Particulars ₹

Stock (1st April, 2022) 75,000 Sundry Debtors 82,000

Purchases 8,00,000 Loan from X 10,000

Sales 12,00,000 Interest on X Loan 1,500

Motor Car 1,50,000 Furniture 20,000

Car Expenses 42,000 Land and Building 2,00,000

Rent 5,500 Capital 2,50,000

Salaries 35,200 Sundry Creditors 91,300

Bad Debts 1,500 Returns Inward 7,500

Provision for bad debts 8,100 Returns Outward 6,000

Commission (Cr.) 4,600 Cash in hand 16,400

Wages 1,25,000

Insurance 8,400

Adjustments:-
i. Commission include ₹ 1,600 being commission received in advance.
ii. Write off ₹ 2,000 as further Bad-debts and maintain Bad-debts provision at 5% on debtors.
iii. Expenses paid in advance are: Wages ₹ 5,000 and Insurance ₹ 1,200.
iv. Rent and Salaries have been paid for 11 months.
v. Loan from X has been taken at 18% p.a. interest.
vi. Depreciate furniture by 15% p.a. and Motor Car by 20% p.a.
vii. Closing Stock was valued at ₹ 60,000.
OR
From the following particulars taken out from the books of Anand General Store, prepare trading and profit and loss
account for the year ended 31st March 2013 and balance sheet as on that date.

Name of Accounts Amt(Rs) Name of Account Amt(Rs)

Plant and machinery on 1st April

16,00,000 Rent 24,000
2012

Plant and machinery purchased on 1st Insurance premium paid from 1st January 2012 to
40,000 2,400
July, 2012 31st December, 2013
 Sundry debtors 2,40,000 Cash at Bank 10,800

Creditors 64,000 Wages 40,000

Furniture 10,000 Octrol 800

Motor car 1,40,000 Advertising 9,600

Purchases 3,20,000 Carriage Inwards 20,400

Sales 5,60,000 Carriage Outwards 4,000

Sales Returns 30,000 Fuel and Power 31,400

Salaries 72,000 Majoj's capital 7,00,000

Opening Stock 1,20,000 Majoj's drawings 24,000

Motor Car Expenses 12,000 Brokerage 1,400

Stationery 1,000 Donation 10,200

Additional Information
i. Closing stock Rs 1,10,000 stock valued at Rs 20,000 was destroyed by fire on 18th March, 2013 but the insurance
company admitted a claim of Rs 13,600 only which was received in April, 2013.
ii. Stationery for Rs 300 was consumed by the proprietor.
iii. Goods costing Rs 2,400 were given away as charity.
iv. A new signboard costing Rs 3,000 is included in advertising.
v. Rent is to be allocated 2/3rd to factory and 1/3rd to office.
vi. Depreciate machinery by 10% and motor car by 20%.
Series ARSP/11 Set ~11
Roll No. Q.P Code 15/11/11
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum 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 B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. When goods are sold on credit the seller prepares: [1]

a) Invoice b) Accounting Voucher

c) Cash Memo d) Transfer Voucher

2. Assertion (A): The main objective of book-keeping is to ascertain the profit or loss and financial position of the [1]
business.
Reason (R ): Book-keeping includes identifying, measuring and recording of financial transactions of the
business.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Rule of Debit and Credit for Impersonal account is [1]

a) Dr. the receiver and Cr. the giver b) Dr. all expenses and Cr. all gains & Dr. what
goes out and Cr. what comes in

c) Dr. all expenses and Cr. all gains d) Dr. what goes out and Cr. what comes in
4. Which equation is correct out of the following: [1]
i. Liabilities = Assets + Capital
ii. Assets = Liabilities - Capital
iii. Capital = Assets + Liabilities
iv. Capital = Assets - Liabilities

a) Statement (ii) is Correct. b) Statement (iv) is Correct.

c) Statement (i) is Correct. d) Statement (iii) is Correct.

 OR
Voucher is prepared from:

a) Ledger Account b) All of these

c) Source Documents d) Journal Entry

5. When a trader sells goods on credit, he prepares a sale ________ which contains the name of the party to whom [1]
goods are sold, the rate, quantity and the total amount of sale.

a) both bill and invoice b) bill

c) memo d) invoice
6. Income statement include [1]

a) Profit and loss account only b) Trial Balance only

c) Balance sheet only d) Statement of profit and loss

OR
Which one of the following is not an objective of accounting?
A. To provide information about the assets, liabilities and capital of the enterprise
B. To provide information about the private assets and liabilities of the proprietor
C. To maintain records of the business
D. To provide information regarding the profit and loss of the enterprise

a) Statement (D) is correct. b) Statement (B) is correct.

c) Statement (A) is correct. d) Statement of (C) is correct.

7. Reserve created for maintaining a stable rate of dividend is termed as [1]

a) Specific Reserves b) Capital Reserves

c) General Reserves d) Dividend equalization fund

8. The data is classified for creating groups of accounts in the heads of: [1]

a) Assets, Liabilities and Capital b) Assets, Owners’ equity, Revenue and

Expenses

c) Assets, Capital, Liabilities, Revenue and d) Capital, Revenue and Expenses

Expenses
OR
Which of the following is not a type of personal account?

a) Ram's A/c b) Investment A/c

c) SBI Bank A/c d) Atul's Capital A/c

9. Accounting standards are formulated by [1]

a) By Companies Act b) By Institute of Chartered Accountants of

India

c) By Planning Commission d) By Institute of Company Secretaries of

India
10. According to the Convention of Consistency: [1]
 a. accounting policies and practices once adopted should be consistently followed.
b. accounting policies and practices adopted may be changed as per the management’s decision.
c. accounting policies and practices once adopted cannot be changed under any circumstances.
d. None of these

a) Statement (d) is correct b) Statement (c) is correct

c) Statement (b) is correct d) Statement (a) is correct

11. Provision is a: [1]

a) Capital Reserve b) Specific Reserve

c) None of these d) General Reserve

12. Bank overdraft is ________. [1]

a) contingent liability b) contingent liability

c) long-term liability d) short-term liability

13. A trader made the following transactions. Total of Purchase Book on the basis of these transactions will be: [1]
i. Goods purchased from Gopal ₹ 8,000
ii. Goods purchased from Sumit for Cash ₹ 10,000
iii. Goods purchased from Kunal on credit ₹ 25,000
iv. Machinery purchased from Dhiraj on credit ₹ 40,000

a) ₹ 73,000 b) ₹ 33,000

c) ₹ 83,000 d) ₹ 25,000
14. Goods costing ₹ 20000 have sold for cash at 25 % profit. By what amount cash will increase [1]

a) ₹ 20500 b) ₹ 25000

c) ₹ 15000 d) ₹ 15500
15. Tangible Asset is: [1]

a) Stock b) Prepaid Expenses

c) Patents d) Goodwill
OR
Current assets do not include
Stock, Short term investment, Prepaid expenses, Unearned income

a) Prepaid expenses b) Short term investment

c) Stock d) Unearned income

16. Which of the following entries are recorded in journal proper? [1]

a) All of these b) Endorsement and dishonor of bills

of exchange

c) Purchase of items on credit other than goods d) Goods withdrawn by the owner for personal
use
17. The arrangement is made for meeting future uncertainties: [1]
 a) Investments b) Reserves

c) Provisions d) Provisions and Reserves

18. Explain the procedure of balancing personal accounts. [3]
OR
Journalise the following transactions:
i. Goods destroyed by Fire for ₹ 5,000.
ii. Paid by cheque ₹ 25,000 as wages on the installation of a Machinery.
iii. Issued a cheque in favour of M/s Sudarshan Saran & Sons on account of purchase of goods ₹ 75,000.
iv. Goods sold costing ₹ 60,000 to M/s Karan Sons at an invoice price 10% above cost less 5% Trade discount.
19. Give two advantages of GST. [3]
OR
Why fixed assets are not shown in the books at market value?
20. Distinguish between debtors and creditors. [3]
21. Prepare a trial balance form the following balances taken on 31st March, 2013 [4]

Name of Accounts Amt (Rs.) Name of Accounts Amt (Rs.)

Capital 3,75,000 Purchases 3,22,950

Drawings 36,000 Sales 5,70,000

Debtors 85,500 Miscellaneous Expenses 12,300

Creditors 42,750 Miscellaneous Receipts 5,400

Land and Building 2,70,000 Bad debts 10,650

Plant 1,80,000 Bills debts 7,500

Stock on 1st April,2012 34,200 Bills Receivable Loan from Naina 30,000

Factory Expenses 24,900 Interest on Naina's Loan 4,500

Office Expenses 11,550 Cash in Hand 12,600

Purchases Return 9,000 Goodwill 15,000

Stationery 750

Freight 3,750

22. Record the following transactions in a cash book with cash and bank columns: [4]

2023 ₹

Jan. 1 Bank overdraft 12,000

Cash in hand 2,300

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

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

Jan. 12 Banked 200

Jan. 15 Received a money order from Ganesh 500

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

Jan. 18 Bank Charges 20

Jan. 20 Interest on bank overdraft 1,000

23. In the following Bank Reconciliation Statement, determine the missing amounts: [4]
BANK RECONCILIATION STATEMENT
as on 31st March, 2023

Plus Items Minus items

Particulars
(₹) (₹)

Balance as per Cash Book (Dr.) 16,000

(i) Cheques of ₹ 30,000 deposited into bank but cheques of ₹ 17,500 only
- -
cleared

(ii) Cheques of ₹ 40,000 issued but cheques of ₹ 21,000 presented for

- -
payment

(iii) Receipt column of Cash Book overcast by ₹ 500 - -

(iv) Interest on Investment collected by bankers 600

(v) Bank charges debited by bank 400

(vi) Direct deposit made by the customer ₹ 400 - -

Balance as per Pass Book - -

36,000 36,000

OR
Prepare a Bank Reconciliation Statement from the following particulars on 31st March, 2023:
Bank Statement showed a favourable balance of ₹ 12,400.
i. Cheques amounting to ₹ 45,000 were drawn on 27th March, 2023 of which cheques of ₹ 33,000 were encashed
on 2nd April, 2023.
ii. Cheque issued returned on technical grounds ₹ 4,000.
iii. Bank recorded a Cash deposit of ₹ 3,210 as ₹ 3,120.
iv. Bill for collection not advised by the bank but credited to our account ₹ 8,000.
v. A bill for ₹ 10,000 was retired by the Bank under a rebate of ₹ 200 but the full amount of the bill was credited in
the bank column of the Cash Book.
24. Pass Journal entries in the books of Shyam Bros, from the following transactions: [6]
2016
June 1 - Shyam Bros, started the business with cash ₹ 80,000; Goods ₹ 40,000 and furniture ₹ 20,000.
June 2 - Sold goods to Nitin of the list price of ₹ 20,000 at a trade discount of 10%.
June 4 - Nitin returned goods of the list price of ₹ 4,000.
June 8 - Received from Nitin₹ 14,150 in full settlement of his account.
June 10 - Purchased goods from Krishna of the list price of ₹ 10,000 at 15% trade discount.
June 13 - Returned goods to Krishna of the list price of ₹ 1,000.
June 16 - Settled the account of Krishna by paying cash, under a discount of 4%.
 June 18 - Purchased goods from Aman ₹ 5,000; Suraj ₹ 10,000.
June 19 - Paid cash to Aman ₹ 1,900 and discount received ₹ 100.
June 20 - Paid ₹ 9,800 to Suraj in the full settlement of his account.
June 20 - Bought a ‘Table Fan’ for ₹ 8,000 for the domestic use of Shyam.
June 25 - Sold goods for cash of the list price of ₹ 8,000 at 10% trade discount and 3% cash discount.
June 30 - Paid Rent ₹ 8,000; Trade Expenses ₹ 7,000 and Travelling Expenses ₹ 3,800.
OR
Following transactions of Rajesh for April, 2023 are given below. Journalise them.

2023 ₹

April 1 Rajesh started business with cash 1,00,000

April 2 Paid into bank 20,000

April 3 Bought goods for cash 50,000

April 4 Drew cash from bank for office use 10,000

April 13 Sold goods to Karan 15,000

April 20 Bought goods from Sumit 22,500

April 22 Karan returned goods 2,000

April 24 Received from Karan 12,500

Allowed him discount 500

April 28 Paid cash to Sumit 21,500

Discount received 1,000

April 30 Sold for Cash to Manoj, Raman and Mohan 80,000

April 30 Paid rent 5,000

April 30 Paid salary 10,000

25. Rectify the following errors: [6]

i. Purchases Book is overcast by ₹ 500.
ii. Salary paid to an employee, Mr. Abhi, is debited to his Personal Account ₹ 3,000.
iii. Goods sold to Mehak on credit ₹ 300 have been wrongly passed through the Purchases Book.
iv. Total of Returns Inward Book has been added ₹ 9 short.
v. Purchase of chair from Happy Traders for ₹ 35 has been entered in the Purchases Book as ₹ 53.
OR
Give Journal Entries to rectify the following errors:
i. ₹ 2,000 paid for furniture purchased has been debited to Purchases Account.
ii. ₹ 3,000 paid to Ram Lal for salary were debited to his Personal Account.
iii. ₹ 500 paid for proprietor’s medical bill were debited to Sundry Expenses Account.
iv. Typewriter purchased for ₹ 7,500 has been wrongly passed through the Purchases Book.
v. An Office Table purchased for ₹ 5,000 has been passed through an invoice book.
vi. An amount of ₹ 1,200 spent on annual white-washing was debited to Building A/c.
 vii. ₹ 800 paid for Rent wrongly debited to Landlord’s A/c.

26. On 1st April, 2019 Manwar Ltd purchased 10 machines of ₹ 30,000 each. On 30th June, 2020, one machine out [6]

of the 10 machines purchased on 1st April, 2019 was sold for ₹ 24,000 and on 31st December, 2021 one more

machine was sold for ₹ 22,500. A new machine was purchased on 30th September, 2022 for ₹ 32,000. The
company has adopted the practice of providing depreciation at 10% per annum on original cost of machine. The

company closes its books on 31st March, every year. You are required to prepare machinery account upto 31st
March, 2023.
OR
On 1st October 2014, Bansal Pvt. Ltd. purchased machinery for Rs 12,00,000. On 31st May, 2016, a part of the
machinery purchased on 1st October 2014 for Rs 1,60,000 was sold for Rs 60,000. On the same date, fresh
machinery was purchased for Rs 3,00,000. Depreciation is provided at 20% per annum on the written down value
method and the books are closed on 31st March each year. You are required to prepare (a) Machinery Account, (b)
Provision for Depreciation Account, and (c) Machinery Disposal Account.
Part B
27. Incomplete records system suitable for which type of business: [1]

a) Tea shop b) Washer man

c) All of these d) Flower shop

OR
Calculate profit if closing capital is Rs.14,250, additional capital is Rs.200, opening capital is Rs.11,300 and
drawings @ Rs.100 per month

a) Rs.5,950 b) Rs.6,950

c) Rs.3,950 d) Rs.1,950
28. Choose the Liquid Assets from the following: [1]

a) None of these b) Prepaid Expenses

c) Stock d) Loose Tools

29. Closing Stock was shown at ₹ 49,500 while preparing the final accounts. Later on it was discovered that it was [1]
overvalued by 10%. What was the effect on Current Year’s profit?

a) Increase in gross profit and net profit by ₹ b) Decrease in gross profit and net profit by ₹
4,950 4,500

c) Decrease in gross profit and net profit by ₹ d) Increase in gross profit and net profit by ₹
5,500 4,500
OR
A trial balance contains Debtors ₹ 15,000, Bad Debts ₹ 400 and Provision for Doubtful Debts ₹ 600. Further bad
debts given in adjustments are ₹ 400. If a provision at 5% is made on Debtors, P & L A/c will be debited with:

a) ₹ 800 b) ₹ 950

c) ₹ 1,130 d) ₹ 930

30. From the following information, Gross Profit for the year ended 31st March, 2023: [3]

Transaction ₹
 Opening Stock (1st April, 2022) 50,000

Freight and Packing 20,000

Sales 3,80,000

Goods purchased during the year 2,80,000

Closing Stock (31st March, 2023) 60,000

Packing Expenses on Sales 12,000

31. State with reasons whether the following are capital or revenue expenditures: [3]
i. A new machine is purchased for ₹ 60,000, ₹ 800 were spent on its carriage and ₹ 1,500 were paid as wages
for its installation.
ii. A sum of ₹ 10,000 was spent on painting the new factory.
iii. ₹ 5,000 paid for the erection of a new machine.
iv. ₹ 2,000 were spent on repairs before using a second-hand generator purchased recently.
v. ₹ 1,500 were spent on the repair of machinery.
vi. ₹ 10,000 was paid as brokerage on the issue of shares and other expenses of the issue were ₹ 25,000.
32. What is meant by provision for doubtful debts? How are the relevant accounts prepared and what journal entries [3]
are recorded in final accounts? How is the amount for provision for doubtful debts calculated?
33. Radheshyam does not keep proper records of his business. Following information is available from records kept [6]
by him

Items 1st April 2023 (₹) 31st March 2023 (₹)

Cash 20,000 18,000

Bank 30,000 33,000

Debtors 17,000 25,000

Stock 40,000 60,000

Fixed assets 29,000 29,000

Creditors 52,000 32,000

Loan 10,000 25,000

Radheshyam withdrew from the business ₹ 3,000 per month upto 30th September, 2022 and thereafter ₹ 4,000
per month as drawings ₹ 50,000 realised by the proprietor as maturity value of national saving certificates was
invested in the business.
Prepare a statement showing net profit (or net loss) for the year.
OR
Mahesh commenced business on 1st April, 2022 with a capital of ₹ 50,000.
On 1st January, 2023, he introduced ₹ 25,000 into the business of which ₹ 10,000 was borrowed from Rahul. His
position on 31st March, 2023 was as under:
Assets: Cash in hand ₹ 4,000; Bank (Cr.) ₹ 6,500; Debtors ₹ 24,000; B/R ₹ 18,600. Stock ₹ 25,400; Furniture ₹
15,000; Prepaid expenses ₹ 1,000.
Liabilities: Creditors ₹ 13,500; B/P ₹ 4,800; Rahul’s Loan ₹ 10,000; Outstanding expenses ₹ 700. Actual drawings
were not known but his living expenses are ₹ 1,000 p.m. Depreciate furniture by 10%. Interest on the loan is due to
 @12% p.a.
Ascertain his profit or loss for the year 2022-23 & prepare a final statement of affairs.

34. The undermentioned Trial Balance was extracted from the books of M/s Madhav & Sons as at 31st March, 2023: [6]
TRIAL BALANCE

Dr. (₹) Cr. (₹)

Capital 3,50,000

Drawings 48,000

Goodwill 15,000

Plant and Machinery 2,50,110

Purchases 95,000

Sales 3,00,000

Sundry Debtors 54,200

Creditors 16,800

Sales Returns 20,700

Purchase Returns 1,200

Advertising 6,000

Opening Stock 45,400

Cash in hand 22,900

Wages 25,000

Telephone Charges 3,000

Salaries 36,000

Printing and Stationery 390

Sundry Income 7,500

Rent 2,200

Investments 30,000

General Expenses 22,600

Bills Payable 1,000

6,76,500 6,76,500

You are required to prepare Final Accounts after taking into account the following adjustments:-

i. Closing Stock on 31st March, 2023 was valued at ₹ 70,300.

ii. Write off 
th of Advertising expenses.
iii. Sundry debtors include an item of ₹ 2,000 due from a customer who has become insolvent and nothing is
recoverable from his estate.
iv. Create a provision for Doubtful Debts @ 5%.
 v. Interest on Investments at 15% is receivable for the full year.
vi. Annual payments are: Salaries ₹ 43,200 and Rent ₹ 2,400.
OR
From the following trial balance of M/s Amit & Sons as at 31st, March, 2023 prepare trading and profit and loss

account for the year ended 31st March, 2023 And Balance Sheet as at that date:

Debit Credit
Name of Accounts L.F.
Balance (₹) Balance (₹)

Capital ____ 80,000

Drawings 18,000 ____

Sales ____ 1,55,000

Purchases 82,600 ____

Stock (1st April, 2022) 42,000 ____

Returns Outward ____ 1,600

Carriage inward 1,200 ____

Wages 4,000 ____

Power 6,000 ____

Machinery 50,000 ____

Furniture 14,000 ____

Rent 22,000 ____

Salary 15,000 ____

Insurance 3,600 ____

8% Bank Loan ____ 25,000

Debtors 20,600 ____

Creditors ____ 18,900

Cash in hand 1,500 ____

Total 2,80,500 2,80,500

Adjustments:
i. Closing Stock ₹ 64,000.
ii. Wages outstanding ₹ 2,400.
iii. Bad debts ₹ 600.
iv. Provision for Doubtful debts to be 5%.
 v. Rent is paid for 11 months.
vi. Loan from the bank was taken on 1st Oct. 2022.
vii. Provide depreciation on machinery @ 10% p.a.

viii. Provide Manager’s commission at 10% on net profit after charging such
commission.
Series ARSP/12 Set ~ 12
Roll No. Q.P Code 15/12/12
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum 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 B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Pick out a source voucher/document from the following: [1]

a) Transfer Voucher b) Debit Voucher

c) Invoice d) Credit Voucher

2. Assertion (A): Accounting has a wider scope than book-keeping. [1]
Reason (R): Book-keeping involves recording, classifying, summarizing and analysing the financial
transactions.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Rule of Debit and Credit for Impersonal account is [1]

a) Dr. the receiver and Cr. the giver b) Dr. all expenses and Cr. all gains & Dr. what
goes out and Cr. what comes in

c) Dr. all expenses and Cr. all gains d) Dr. what goes out and Cr. what comes in
4. Capital at the end Rs.45,500 and capital in the beginning Rs.50,000. Difference of opening and closing capital is [1]
___

a) Rs.4500 loss b) Rs. 4500 additional capital

c) Rs.4500 revenue d) Rs. 4500 profit

OR
When cash is withdrawn by proprietor, what is its impact on accounting equation?

a) Increase in assets, increase in capital b) Decrease in assets, decrease in capital

c) Increase in assets, increase in liabilities d) Decrease in assets, decrease in liabilities

 5. Document which records a transactions that entails multiple debit/credits and credit/debit is [1]

a) Credit Note b) Debit note

c) Compound Voucher d) Cheque

6. ________ users are the groups outside the business entity who uses the information to make decisions about the [1]
business entity.

a) Internal b) Both external and internal

c) Interior d) External
OR
The characteristics of Accounting are:

a) All of these b) Classifying

c) Recording d) Summarising
7. ________ is a reserve which does not appear in the balance sheet. [1]

a) Specific reserve b) Secret reserve

c) Capital reserve d) General reserve

8. Debit mean [1]

a) a decrease in asset b) an increase in the proprietor’s equity

c) an increase in asset d) an increase in liability

OR
Credit means:

a) an increase in liability b) a decrease in liability

c) a decrease in proprietor's equity d) an increase in asset

9. IFRS are [1]

a) Partially rule based and partially based b) Rule based accounting standards
accounting standards

c) Principle based accounting standards d) Partially rule based accounting standards

10. According to the Money Measurement Concept: [1]
a. all transactions and events are recorded.
b. all transactions and events which can be estimated in money terms are recorded in the books of account.
c. all transactions and events which can be measured in money terms are recorded in the books of account.
d. None of these

a) Statement (c) is correct b) Statement (b) is correct

c) Statement (a) is correct d) Statement (d) is correct

11. Dividend equalization reserve is termed as reserves [1]

a) Charged against assets b) Created out of revenue profits

c) Charged against profit d) Created out of assets

12. Current Liabilities include [1]
 a) Creditors b) All of these

c) Bills Payable d) Outstanding Expenses

13. Calculate purchase return amount from the following transactions for January 2011. [1]
(a) Returned goods to M/s Kartik Traders Rs.1,200
(b) Goods returned to Sahil Pvt. Ltd. Rs.2,500
(c) Goods returned to M/s Kohinoor Traders for list price Rs.2, 000 less 10% trade discount.
(d) Return outwards to M/s Handa Traders Rs.550. Options are as follows

a) Rs.6050 b) Rs.5500

c) Rs.4500 d) Rs.6000
14. Accounting equation may effect [1]

a) Only one side by increasing / decreasing it b) None

by equal amount

c) Both d) Both side of equation by equal amount

15. Stores are one of the accounting terms used to describe certain kinds of materials in the production process. [1]
Which of the following is an example of stores?

a) Packing materials b) Lubricants

c) All of these d) Spare parts of machinery

OR
A person or an enterprise that is not in a position to pay its debts is called:

a) Insolvent b) Solvent

c) Bad debtor d) All of these

16. M/s ABC Suppliers sold on credit: [1]
i. Two water purifiers @ ₹2,100 each and
ii. Five buckets @ ₹130 each to M/s BCD Traders.
What will be the amount shown in sales book?

a) ₹2,230 b) ₹4,850

c) ₹4,200 d) ₹650
17. Which of the following is not a type of reserve [1]

a) Provision for bad debt b) General reserve

c) Retained earnings d) Workmen compensation fund

18. What do you understand by balancing of account? [3]
OR
Give the journal entries corresponding to the narration given below:

Amount Amount
[Link]. Particulars LF.
Dr. Cr.

(i) Dr.

Dr.
 To
(Goods of the list price of ₹ 5,000 sold at 10% trade
discount and 2% cash discount)

(ii)

(The purchase of Motor Car for ₹ 80,000 and the payment of ₹ 5,000 as repair
charges on it. Entire payment is made by cheque)

(iii) Mehta Dr. 5,000

To Cash A/c

To
(Mehta’s account settled, cash discount three
percent)

(iv) Bank A/c Dr.

Dr.

To
8,400
(70 paise per rupee received from the estate of Ankit on his insolvency)

(v) Dr. 3,000

To
3,000
(For goods used by proprietor for personal use)

(vi) Dr. 2,000

To
2,000
(For Rent due to landlord)

19. Harish of Hisar returned goods of ₹ 30,000 purchased from Rakesh of Rohtak, Haryana. Rates of CGST and [3]
SGST are 6% each while that of IGST is 12%. Pass the Journal entry in the books of Harish.
OR
International Financial Reporting Standards (IFRS) provides a number of benefits. Explain any three.
20. Explain and give example of each of the following accounting terms: [3]
i. Expenses
ii. Drawings
iii. Gain
21. Prepare a Trial Balance from the following information: [4]

Prepaid expenses 5,000

Outstanding rent 2,000

Bad debts recovered 4,000

Interest on Investment 1,000

 Due to Mohit 5,000

Bank overdraft 2,000

Discount allowed 800

Due from Vikas 1,200

Investment 15,000

Patents 4,000

Machinery 6,000

Capital 18,000

22. Record the following transactions during the week ending Dec. 30, 2014 with a weekly interest ₹ 500. [4]

January 2017 ₹

24 Stationery 100

25 Bus fare 12

25 Cartage 40

26 Taxi fare 80

27 Wages to casual labour 90

29 Postage 80

23. Prepare Bank Reconciliation statement as on 31st July 2013 [4]

i. Dr. Balance as per Cash Book is Rs. 20,000 as on 31st Jul 2013.
ii. Cheques for Rs. 5000 were deposited into the Bank in the month of July but only Cheques for Rs. 1000 were
credited by bank till 31st July 2013.
iii. Cheques issued for Rs. 33000 in July, out of which a cheque for Rs. 13,800 was presented for payment on
3rd August, 2013.
iv. Bank charged Rs. 150 as Bank charges and credited interest of Rs. 400.
v. A customer directly deposited Rs. 2,500 in firm’s bank A/C.
vi. Bank paid the insurance Premium of Rs. 1200 as per standing instruction on 25.7.2013.
OR
What is a bank reconciliation statement? Explain any four points regarding need and importance of preparing a bank
reconciliation statement.
24. M/s Koina supplier sold on credit [6]
i. Two water purifiers @ ₹ 2,100 each and five buckets @ 130 each to M/s Raman Traders (Invoice no.178
dated 6th April, 2014).
ii. Five road side container @ ₹ 4,200 each to M/s Nutan enterprise (Invoice no. 180 dated 9th April, 2014).
iii. 100 big buckets @ ₹ 850 each to M/s Raman traders (Invoice no.209, dated 28th April, 2014).
Write journal entries for the same.
OR
Pass necessary Journal entries for the following transactions:

2023
 April Paid salaries ₹ 30,000, rent ₹ 10,000 and wages ₹ 8,000 by cheque.
5

April Purchased goods from Hitesh for ₹ 30,000 at 10% trade discount and 2% cash discount.

7 Payment was made immediately.

April
Paid to Ravi ₹ 5,000 in cash and ₹ 7,000 by cheque.
15

April Goods sold to Riya for ₹ 5,000 at 20% Trade discount and 3% Cash discount. Half of the payment was
18 received immediately.

April
Goods sold to Rajesh for ₹ 8,000. He paid ₹ 5,000 by cheque immediately.
20

April
Additional capital introduced as: cash ₹ 10,000; and Delivery Van (Personal asset) of ₹ 50,000.
25

April
Cash paid to Aman ₹ 975. Discount received ₹ 25.
26

April
Paid to Ravi ₹ 1,000 in cash and ₹ 2,000 by cheque.
30

April
Paid ₹ 4,800 to Mahesh in settlement of his account for ₹ 5,000.
30

25. Trial Balance of Anant Ram did not agree. It showed an excess credit of ₹ 16,000. He put the difference to [6]
Suspense A/c. Subsequently the following errors were located:
a. Cash received from Mohit ₹ 4,000 was posted to Mahesh as ₹ 1,000.
b. Cheque for ₹ 5,800 received from Arnav in full settlement of his account of ₹ 6,000 was dishonoured. No
entry was passed in the books on dishonour of the cheque.
c. ₹ 800 received from Khanna, whose account had previously been written off as bad, was credited to his
account.
d. Credit sales to Manav for ₹ 5,000 was recorded through the purchases book as ₹ 2,000.
e. Purchases book undercast by ₹ 1,000.
f. Repairs on Machinery ₹ 1,600 wrongly debited to Machinery account as ₹ 1,000.
g. Goods returned by Nathu ₹ 3,000 were taken into stock. No entry was recorded in the books.
OR
Pass Journal Entries to rectify the following errors:
i. Machinery purchased for ₹ 5,000 has been debited to Purchases A/c.
ii. ₹ 700 paid to Mr. Sahil Yadav as Legal Charges were debited to his personal account.
iii. ₹ 10,000 paid to Esport Company for Machinery purchased stand debited to Esport Company account.
iv. Typewriter purchased for ₹ 6,000 was wrongly passed through the purchase book.
v. ₹ 20,000 paid for the purchase of a Motor Cycle for the proprietor has been charged to General Expenses A/c.
vi. ₹ 15,000 paid for the purchase of Gas Engine were debited to Purchases A/c.
vii. Cash paid to Rohan ₹ 400 was debited to the account of Sudhir.

26. On 1st April, 2020, X Ltd. purchased 5 machines for ₹ 60,000 each. The accounting year of the Company ends
[6]
 on 31st March. Depreciation at the rate of 10% p.a. on initial cost is charged to Profit & Loss Account and

Credited to a separate provision for depreciation account. On 1st April 2022, one machine was sold for ₹ 40,000

and on 1st July, 2023 a second machine was sold for ₹28,000. Another machine with a higher capacity costing ₹
1,00,000 was purchased on 1st Oct. 2023. You are required to prepare Machinery Account, Depreciation
Account and Provision for Depreciation Account.
OR

Following balance appear in the books of M/s Anandi as on 1st April 2022:

Machinery Account 60,000

Provision for depreciation A/c 36,000

On 1st April 2022, they decided to dispose off machinery for ₹ 8,400, which was purchased on 1st April 2018 for ₹
16,000.
You are required to prepare Machinery Account, Provision for Depreciation Account and Machinery Disposal A/c for
the 2022-23. Depreciation was charged at 10% p.a. on original cost method.
Part B
27. What should be added in closing capital for calculating opening capital? [1]

a) Profit and drawing b) Loss and drawing

c) Loss only d) Profit only

OR
From the following information are given of an accounting year:
i. Opening creditor Rs.10,000
ii. Cash paid to creditors Rs.30,000
iii. Return outward Rs.2,000
iv. Closing creditors Rs.24,000
Calculate credit purchase during the year.

a) Rs.48,000 b) Rs.36,000

c) Rs.44,000 d) Rs.46,000
28. Balance Sheet shows: [1]

a) Errors of accounts b) Financial position

c) Profit or loss d) Total debtors

29. Income tax paid by a sole trader is reflected in his financial statements: [1]

a) On the debit side of the Trading Account b) On the debit side of the Profit and Loss
Account

c) As way of deduction from capital in the d) As an asset in the Balance Sheet

Balance Sheet
OR

Net Profit before the following adjustments ₹ 1,80,000

 Outstanding salary ₹ 10,000

Prepaid Insurance ₹ 13,000

Calculate profit after adjustments.

a) ₹ 2,03,000 b) ₹ 1,77,000

c) ₹ 1,83,000 d) ₹ 1,87,000
30. Define Revenue expenditure. Give six examples of revenue expenditure. [3]
31. Calculate cost of goods sold from the following: [3]

₹ ₹

Opening Stock 40,000 Wages & Salaries 10,000

Net Purchases 50,000 Rent Paid 15,000

Net Sales 1,90,000 Closing Stock 15,000

32. On 1st April, 2021, Sonu had a Provision for Doubtful Debts of ₹ 650. On 31st March, 2022, total debtors [3]
amounted to ₹ 18,400 out of which ₹ 400 were bad and had to be written off. It was decided to maintain a
Provision for Doubtful Debts at 5% of the debtors.
On 31st March, 2023, debtors were ₹ 10,320 out of which ₹ 320 had to be written off as bad debts. Provision for
Doubtful Debts is to be maintained at 5% of the Debtors.
Show the Bad Debts Account and Provision for Doubtful Debts Account for the years ended on 31st March,
2022 and 2023.
33. X who keeps incomplete records gives you the following information: [6]
ASSETS AND LIABILITIES

1st April, 2022 (₹) 31st March, 2023 (₹)

Stock in hand 18,700 20,400

Debtors 12,000 14,000

Creditors 9,000 1,500

Bills Receivable 4,000 5,000

Bills Payable 1,000 200

Furniture 600 600

Building 12,000 12,000

Bank Balance 4,350 3,350 (Overdraft)

You are also given the following information:

i. A provision of ₹ 1,450 is required for bad and doubtful debts.
ii. Depreciation @ 5% is to be written off on Building and furniture.
iii. Wages outstanding ₹ 3,000; salaries outstanding ₹ 1,200.
iv. Insurance has been prepaid to the extent of ₹ 250.
v. Legal Expenses outstanding ₹ 700.
vi. Drawings of Mr. X during the year were ₹ 7,520.
 Prepare a statement of Profit as on 31st March, 2023, and a final statement of affairs as at that date.
OR
Govind keeps incomplete records. On 1st April, 2022, his position was as follows:
STATEMENT OF AFFAIRS

Liabilities Amount (₹) Assets Amount (₹)

Bank Overdraft 7,500 Cash 6,400

Sundry Creditors 15,000 Stock 52,000

Capital 1,64,500 Sundry Debtors 28,000

Fixed Assets 1,00,000

Prepaid Expenses 600

1,87,000 1,87,000

His position on 31st March, 2023 was as follows :

Cash in hand ₹ 3,000; Cash at Bank ₹ 5,000; Stock ₹ 44,000; Debtors ₹ 21,000; Fixed Assets ₹ 80,000; Creditors ₹
22,000.
You are informed that Govind has taken stocks worth ₹ 4,500 for his private use and that he has been regularly
transferring ₹ 2,000 per month from his business banking account by way of drawings. Out of his drawings, he spent
₹ 15,000 for purchasing a Scooter for the business on 1st October, 2022.
You are requested to find out his profit or loss and to prepare the Statement of Affairs after considering the following:
i. Depreciate Fixed Assets and Scooter by 10% p.a.
ii. Write off Bad-Debts ₹ 1,000 and provide 5% for doubtful debts on Sundry Debtors.
iii. Commission earned but not received by him was ₹ 2,500.

34. Following is the Trial Balance as on 31st March 2023. Prepare Trading and Profit and Loss Account and Balance [6]
Sheet:

Particulars Debit (₹) Credit (₹)

Stock (1st April 2022) 8,000

Sales 2,20,000

Purchases 1,26,000

Productive Wages 56,500

Salaries 16,000

Stores Consumed 6,050

Carriage 3,050

Rent and Rates 5,200

Insurance 1,320

Machinery 52,000

Building 67,000
Capital less Drawings 1,45,600

Sundry Debtors 44,000

Sundry Creditors 20,000

Secured Loan 15,000

Furniture 3,350

General Expenses 2,600

Cash in hand 1,930

Bad Debts 1,020

Bank 6,580

Total 4,00,600 4,00,600

Additional information:

i. Stock on 31st March 2023 is ₹ 20,600.

ii. Depreciate machinery @ 10% p.a.
iii. Make a Provision @ 5% for Doubtful Debts.
iv. Provide % for discount on sundry debtors.
v. Rent and Rates include security deposit of ₹ 400.
vi. Insurance prepaid ₹ 120.
OR
Prepare trading and profit and loss account for the year ended 31st March, 2013 and a balance sheet as on that date
from the following trial balance.

Name of Accounts Amt (Rs) Name of Accounts Amt (Rs)

Stock on 1st April, 2012 16,000 Sales less returns 1,10,000

Purchases less returns 38,000 Sundry creditors 15,000

P Kumar 1,500 Capital 33,900

Wages 7,700 Mortgage and interest to Date 7,800

Carriage inwards 1,300 Rent Outstanding 500

Carriage Outwards 750

Salaries 20,000

Advertisements 4,500

Trade Expenses 2,400

Rent 6,000

Establishment 2,700

Stable Expenses 1,050

Mortgage interest 300

Sundry Debtors 20,000

Cash in hand 1,250

Machinery 43,750

1,67,200 1,67,200

Additional Adjustments
i. Closing stock was Rs 23,000.
ii. Provision for doubtful debts be created on sundry debtors @ 5% and a provision for discount on sundry debtors at
2%.
iii. Salary of Rs 1,500 paid to SP Kumar an employee of the firm, stand debited to his personal account and it is to be
corrected.
iv. A stationery bill for Rs 100 remains unpaid and unrecorded.
v. Written-off one-third of advertisement expenses.
vi. Sundry creditors include Rs 5,000 loan taken from Mr Sudhir on 1st September, 2012 bearing interest @ 12% per
annum.
Series ARSP/13 Set ~ 13
Roll No. Q.P Code 15/13/13
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum 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 B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Credit Note is prepared: [1]

a) when the debit is given to the account b) when both credit and debit is given to the
account

c) when transfer in the account d) when credit is given to the account

2. Assertion (A): Bookkeeping involves summarising the classified transactions in the form of profit and loss [1]
account and balance sheet.
Reason (R): Bookkeeping is the art of recording in books of accounts, the monetary aspect of commercial or
financial transactions. It is concerned with record keeping maintenance of books of accounts.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. The data is classified for creating groups of accounts in the heads of : [1]

a) Assets, Owners' equity, Revenue and b) Assets, Capital, Liabilities, Revenue and
Expenses Expenses

c) Assets, Liabilities and Capital d) Capital, Revenue and Expenses

4. Voucher is prepared for: [1]

a) Cash/Credit purchase b) Cash received and paid

c) All of these d) Cash/Credit sales

OR
The owner invests personal cash in the business.

a) Assets: Decrease, Liabilities: Decrease, b) Assets: No Effect, Liabilities: Increase ,

 Equity: Decrease Equity: No Effect

c) Assets: No Effect, Liabilities: Decrease, d) Assets: Increase, Liabilities: No Effect,

Equity: No Effect Equity: Increase
5. Credit purchase of furniture is recorded through which voucher? [1]

a) Cash voucher b) Debit voucher

c) Transfer voucher d) Credit voucher

6. The positional statement refers to [1]

a) Ledger b) Trading account

c) Balance sheet d) Profit and loss account

OR
Book Keeping and Accounting:
i. means the same and are used interchangeably.
ii. does not mean the same and are not used interchangeably.
iii. means both (i) and (ii).
iv. None of these.

a) Statement (i) is correct b) Statement (iv) is correct

c) Both statement (i) and (ii) is correct d) Statement (ii) is correct

7. Provisions are made: [1]

a) All of these b) For Taxes

c) For depreciation on assets d) For bad and doubtful debts

8. Goods purchased on credit will increase the [1]

a) Debtor b) Capital

c) liability d) Drawings
OR
Sundry Creditors Account is a:

a) Liability Account b) Asset account

c) Capital Account d) Revenue Account

9. Full form of IFRS: [1]

a) International financial reliable standards b) International financial reporting standards

c) Indian financial reporting standards d) International financial reporting statement

10. Which of the following transactions/events/entries can be attributed to the matching principle? [1]
i. Outstanding expenses, though not paid in cash are shown in the profit and loss accounts.
ii. When insurance premium is paid partly for next year also, the part relating to next year will be shown as an
expense only next year and not this year.
iii. Depreciation is charged as per the straight line method each and every year.

a) Only (i) and (ii) b) (i) and (iii)

 c) Only (ii) d) (i), (ii), and (iii)
11. ________ reserve may or may not involve any receipts of cash. [1]

a) Revenue b) Specific

c) General d) Capital
12. Which of the following is revenue? [1]

a) Sales b) Purchases

c) Salary Payable d) Purchases Return

13. The Sales Book: [1]

a) is a part of the Ledger. b) is a part of the Balance Sheet.

c) is a part of the Journal. d) is a part of the Trial Balance.

14. Accounting equation is based on [1]

a) Single concept b) Both

c) Dual concept d) None

15. Current Liabilities include: [1]
Debentures, Bills Payable, Long-term Loans, Capital

a) Bills Payable b) Debentures

c) Capital d) Long-term Loans

OR
In a business Purchases refers to the:

a) All of these b) Purchase of goods for resale.

c) Purchase of an assets to be used in factory. d) Purchase of an article to be used in office.

16. Calculate the amount of purchase return. Return to Aman Book House, 5 Dozen Pencils@Rs.30 per Dozen, [1]
Trade discount @10%

a) Rs.155 b) Rs.135

c) Rs.150 d) Rs.165
17. Creation of reserves: [1]

a) Increases the profits b) Decreases the divisible profits

c) Decreases the profits d) Increases the divisible profits

18. Why is ledger called the book of final entry? [3]
OR
Distinguish between Trade Discount from Cash Discount.
19. Explain verifiable objective concept or objectivity principle. [3]
OR
Explain Money Measurement Principle.
20. Define the following basic accounting terms with example: [3]
i. Revenue
ii. Drawings
 iii. Profit
21. From the following balances, taken from the books of M/s Dhruv Rathee & Sons as at 31st March 2023, prepare [4]
a Trial Balance in proper form:

Name of Accounts (₹) Name of Accounts (₹)

Cash in Hand 4,500 Machinery 24,000

Bank Overdraft 8,000 Land & Buildings 50,000

Opening Stock 20,000 Debtors 18,400

Purchases 80,000 Creditors 8,500

Purchases Returns 2,000 Bills Receivable 2,850

Sales 1,30,000 Bills Payable 1,650

Sales Returns 5,000 Capital 60,000

Travelling Expenses 1,800 Drawings 6,000

Discount Allowed 600 Rent 3,700

Discount Received 1,500 Salaries 3,600

Loan (Cr.) 10,000

Interest on Loan 1,200

22. Record the following transactions in double column cash book and balance it. [4]

Date Amount
Particulars
2017 (₹)

Aug. 01 Cash balance 15,000

Bank balance 10,000

Aug. 03 Paid insurance premium by cheque 4,200

Aug. 08 Cash sales 22,000

Cash discount 750

Aug. 09 Payment for cash purchases 21,000

Cash discount 700

Aug. 09 Cash deposited in bank 15,000

Aug. 10 Telephone bill paid by cheque 2,300

Aug. 14 Withdrawn from bank for personal use 6,000

Aug. 16 Withdrawn from bank office use 14,500

Received cheque from John in full and final settlement and deposited the same in the
Aug. 20 10,700
bank

Aug. 23 Received cash from Michael 6,850

 Discount allowed 150

Aug. 24 Stationery purchased for cash 1,800

Aug. 25 Cartage paid in cash 350

Aug. 25 Cheque received from Kumar 4,500

Aug. 28 Cheque received from Kumar deposited in Bank 4,500

Aug. 31 Cheque deposited on Aug. 28 dishonoured and returned by the bank

Aug. 31 Rent paid by cheque 4,000

Aug. 31 Paid wages to the watchman in cash 3,000

Aug. 31 Paid cash for postage 220

23. Prepare Bank Reconciliation Statement from the following: [4]

(i) Debit balance as per the Cash Book. 30,000

(ii) Cheques deposited but not cleared. 2,000

(iii) Cheques issued but not presented for payment. 3,000

(iv) Bank interest. 400

OR
Prepare Bank Reconciliation statement on 31st March 2023 from the following particulars:
i. R's overdraft as per the Pass Book ₹ 12,000 as on 31st March, 2023.
ii. On 30th March, 2023 Cheques had been issued for ₹ 70,000 of which cheques worth ₹ 3,000 only had been
encashed up to 31st March, 2023.
iii. Cheques amounting to ₹ 3,500 had been paid into the bank for collection but of this only ₹ 500 had been credited
in the Pass Book.
iv. Bank has charged ₹ 500 as interest on overdraft and the intimation of which has been received on 2nd April 2023.
v. Bank Pass Book shows credit for ₹ 1,000 representing ₹ 400 Paid by debtor of R direct into the Bank and ₹ 600
collected directly by Bank in respect of interest on R's investment. R had no knowledge of these items.
vi. A cheque for ₹ 200 has been debited in bank column of Cash Book by R, but it was not sent to Bank at all.
24. What is a journal? Give a specimen of journal showing at least five entries. [6]
OR
Journalise the following transactions

Amount
2013
(Rs)

Jul 2 Commenced business with cash 25,000

Jul 4 Purchased furniture for cash 2,000

Jul 7 Stationery purchased 150

Jul 10 Drawings by the proprietor for household expenses 400

Jul 12 Bought from Salil 2,600

 Jul 15 Sold to Mathur on credit 4,000

Jul 17 Cash paid to Salil after deduction of discount Rs.130 2,470

Jul 19 Purchase of office equipment for cash 1,250

Jul 21 Mathur returned goods 200

Jul 30 Salary paid to clerk 2,000

25. Pass rectifying entries: [6]

i. ₹ 5,000 being the cost of a Radio purchased for the personal use of the proprietor has been debited to Radio
account in the ledger.
ii. Goods taken by the proprietor for ₹ 1,000, has not been entered in the books at all.
iii. A cheque of ₹ 500 received from X was credited to the account of Y and debited to Cash instead of Bank
A/c.
iv. A cheque of ₹ 1,300 received from Radhe Singh was dishonoured and debited to General Expenses A/c.
v. A sum of ₹ 3,000 drawn by the proprietor for his private travel was debited to Travelling Expenses A/c.
vi. Credit purchase of ₹ 500 from Aakash were posted to the credit of Vipin A/c.
vii. An amount of ₹ 1,600 due from Kamal Jain was written off as ‘Bad-debt’ in previous year, was unexpectedly
received this year, and has been credited to the account of Kamal Jain.
OR
Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account.
a. Credit sales to Mohan ₹ 7,000 were posted as ₹ 9,000.
b. Credit purchase from Rohan ₹ 9,000 were posted as ₹ 6,000.
c. Goods returned to Rakesh ₹ 4,000 were posted as ₹ 5,000.
d. Goods returned from Mahesh Rs 1,000 were posted as ₹ 3,000.
e. Cash sales ₹ 2,000 were posted as ₹ 200.

26. On 1st July, 2020, X Ltd. purchased a machinery for ₹ 15,00,000. Depreciation is provided @ 20% p.a. on the [6]

original cost of the machinery and books are closed on 31st March each year. On 31st May, 2022, a part of this

machine purchased on 1st July 2020 for ₹ 3,60,000 was sold for ₹ 2,40,000 and on the same date new machinery
was purchased for ₹ 4,20,000. You are required to prepare:
a. Machinery Account,
b. Provision for Depreciation Account, and
c. Machinery Disposal Account
OR
A firm purchased on 1st April 2015 certain machinery for Rs.5,82,000 and spent Rs.18,000 on its installation. On 1st
October 2015, additional machinery costing Rs.2,00,000 was purchased. On 1st October 2017, the machinery
purchased on 1st April 2015 was auctioned for Rs.2,86,000 plus CGST and SGST @ 6% each and new machinery
for Rs.4,00,000, plus IGST @ 12% was purchased on the same date. Depreciation was provided annually on 31st
March at the rate of 10% on the Written Down Value Method. Prepare the Machinery Account for the three years
ended 31st March 2018.
Part B
27. Two methods for ascertaining profit and loss in case of single entry system: [1]
 a) Statement of balance and conversion b) Statement of affairs and converter

c) Statement of affairs and conversion d) Statement of profits and Conversation

OR
Single Entry System can be adopted by:

a) Co-operative Societies b) Partnership firm

c) Joint Stock Companies d) Small firms

28. A new firm commenced business on 1st January 2011 and purchased goods costing ₹ 90000 during the year. A [1]
sum of ₹ 6000 was spent on freight inward. At the end of the year the cost of goods still unsold was ₹ 15000
(market value ₹ 10000). Sales during the year were ₹ 120000. What is the gross profit earned by the firm

a) ₹ 42000 b) ₹ 34000

c) ₹ 30000 d) ₹ 39000
29. Bills Receivable discounted but not due till the date of final accounts is shown in: [1]

a) Foot notes b) Assets

c) Liabilities d) P & L A/c

OR
Debts that were earlier written off, if recovered, are transferred to the credit side of

a) Debtors Account b) Trading Account

c) Provision for Doubtful Debts Account d) Profit & Loss Account

30. Calculate Closing Stock from the following details: [3]

Rs. Rs.

Opening Stock 20,000 Purchases 70,000

Cash Sales 60,000 Credit sales 40,000


Rate of Gross Profit on cost 
31. What are closing entries? Give four examples of closing entries. [3]
32. Deepak, the proprietor of Unique Sales, had written off ₹ 20,000 receivable from Jay as bad debts, he was [3]
unable to pay. In the current year, Deepak received ₹ 5,000 from Jay. Pass Journal entry and show how it will be
shown in the Profit and Loss Account.
33. From the following information relating to the business of Mr. X who keeps books on single Entry System, [6]
ascertain the profit or loss for the year 2022- 23.

1st April 2022 31st March 2023

Machinery ₹ 8,000 ₹ 8,000

Furniture 2,000 2,000

Stock 7,000 5,000

Sundry Debtors 4,000 4,500

Bank Balance 200 (Cr.) 1,800 (Dr.)

Sundry Creditors 5,000 3,500

 Mr. X withdrew ₹ 4,100 during the year to meet his household expenses. He introduced ₹ 300 as fresh capital on

15th January 2023. Machinery and Furniture are to be depreciated at 10% and 5% per annum respectively.
OR
What is the difference between Single Entry System and Double Entry System?

34. On 31st March, 2023 the following Trial Balance of Sh. Arun Kumar was taken out. Prepare Trading and Profit [6]
& Loss Account for the year and Balance Sheet at that date after making the following adjustments:-

Dr. ₹ Cr. ₹

Capital 3,00,000

Income Tax 8,000

Stock on 1-4-2022 16,000

Return Inwards 5,600

Carriage Inwards 8,200

Deposit with HDFC 15,000

Return Outwards 4,100

Carriage Outwards 3,700

Loan to Mr. Manoj @ 18% p.a. given on 1-7-2022 10,000

Interest on the above 900

Rent 13,000

Outstanding Rent 1,000

Purchases 1,48,000

Debtors 75,800

Goodwill 25,000

Land and Buildings 2,00,000

Furniture 15,000

Salaries & Wages 38,000

Creditors 26,200

Advertisement Expenses 3,000

Provision for Doubtful Debts 3,500

Bad-Debts 2,000

Patents and Patterns 6,000

Cash in hand 8,900

Sales 2,70,000

General Expenses 4,500

 6,05,700 6,05,700

i. Stock on 31st March, 2023 was valued ₹ 26,000.

ii. General Manager is entitled to a commission of 5% on Net Profits after charging such commission.
iii. ₹ 2,000 paid for Salary & Wages have been included in Sundry Debtors.
iv. Increase Bad-debts by ₹ 800 and create provision for Doubtful Debts at 10%.
v. General Expenses include insurance premium paid up to 30th June, 2023 @ ₹ 3,000 per annum.
vi. ₹ 600 out of the Advertisement Expenses are to be carried forward to the next year.
vii. Charge one-fourth of Salaries and Wages to Trading A/c.
viii. Accrued Income ₹ 2,500.
OR
From the following trial balance extracted from the books of MMN, prepare the trading and profit and loss account
for the year ended 31st December, 2013 and the balance sheet as at that date.

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

Capital 90,000

Drawings 6,480

Land and buiding 25,000

Plant and machinery 14,270

Furniture and fixtures 1,250

Carriage inwards 4,370

Wages 21,470

Salaries 4,670

Provision for bad debts 2,470

Sales 91,230

Sales return 1,760

Bank charges 140

Coal, gas and water 720

Rates and taxes 840

Discount 120

Purchases 42,160

Purchases return 8,460

Bills receivable 1,270

Trade expenses 1,990

Sundry debtors 37,800

Sundry creditors 12,170

Stock (1st January, 2013) 26,420

Apprentice premium 500

Fire insurance 490

Cash at bank 13,000

Cash in hand 850

Total 2,04,950 2,04,950

Additional Adjustments
Charge depreciation on land and building at 2 %, on plant and machinery account at 10% and on furniture and
fixtures at 10%. Make a provision of 5% on debtors for doubtful debts. Carry forward the following unexpired
amounts.
i. Fire insurance Rs 125
ii. Rates and taxes Rs 240
iii. Apprentice premium Rs 400
iv. Closing stock Rs 29,390
Series ARSP/14 Set ~14
Roll No. Q.P Code 15/14/14
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum 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 B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Transfer voucher is prepared for [1]

a) Payment of salary for cash b) Purchase return and sales return

c) Cash Purchase d) Cash sale

2. Assertion (A): Statements prepared through management account are helpful in decision making process. [1]
Reason (R): The information provided by management accounts is financial and non-financial as well.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Balance of Capital Account is shown as: [1]

a) Liability Account b) Revenue Account

c) Asset account d) Capital Account

4. Items owned by a business that have monetary value are ____ [1]

a) Assets b) Capital

c) Debentures d) Liabilities
OR
Fresh capital introduction will increase:

a) Assets and Liabilities b) Liabilities and equity

c) Assets and Capital d) Capital and Liabilities

5. Which of this information is present on the invoice? [1]
i. Party to whom goods are sold
ii. Goods sold
 iii. Total sale amount

a) (ii) and (iii) b) (i) and (ii)

c) (i) and (iii) d) All of these

6. What type of transactions do we record in the books of accounts? [1]

a) Monetary nature b) Political nature

c) Social nature d) Cash nature

OR
Which of these are example(s) of short-term creditors?

a) Borrowing from banks b) Suppliers of goods and services on credit

c) Both financial institutions and suppliers of d) Financial institutions

goods and services on credit
7. Creation of Reserve is: [1]

a) Necessary b) Illegal

c) Useless d) Not necessary

8. Which of the following is not a type of personal account? [1]

a) Ram's A/c b) Investment A/c

c) SBI Bank A/c d) Atul's Capital A/c

OR
The data is classified for creating groups of accounts in the heads of:

a) Assets, Liabilities and Capital b) Assets, Owners’ equity, Revenue and

Expenses

c) Assets, Capital, Liabilities, Revenue and d) Capital, Revenue and Expenses

Expenses
9. Accounting standards are generally referred to as the essence of financial accounting [1]

a) Mitigate inconsistency and incomparability b) Help in removing inconsistencies

and to bring uniformity in preparation of the
financial statements

c) All of these d) Help in removing ambiguities and

10. As per Dual Aspect Concept: [1]

a) Assets = Liabilities + Capital b) Assets = Capital - Liabilities

c) Capital = Assets + Liabilities d) Assets = Liabilities - Capital

11. Reserve is shown: [1]

a) In Trading Account b) In Assets side of Balance Sheet

c) In Liabilities side of Balance Sheet d) In Profit and Loss Account

12. Which of the following is not an expense? [1]

a) Rent b) Salary
 c) Furniture d) Electricity Expenses
13. A note sent by the buyer on the return of goods is: [1]

a) Credit Note b) Debit Note

c) Return Note d) Sales Return

14. Following are the steps involved in developing an accounting equation (in particular order). Arrange the steps in [1]
correct sequence.
i. Find out the effect (in terms of increase or decrease) of a transaction on assets, capitals or liabilities.
ii. Show the effect on appropriate side of an equation and ensure that the total of right hand side is equal to the
total of left hand side.
iii. Ascertain the variables (i.e. assets, liabilities or capital) involved in a transaction.

a) (iii), (i), (ii) b) (iii), (ii), (i)

c) (ii), (iii), (i) d) (i), (ii). (iii)

15. Stock is valued at: [1]

a) cost or market value, whichever is lower b) market value

c) cost or market value, whichever is higher d) cost

OR
The nature of capital is

a) an income b) a liability

c) an expense d) an asset
16. Which of the following is/are not recorded in purchase book? [1]
i. Cash purchase of goods worth ₹5,000.
ii. Purchase of furniture on credit worth ₹75,000.
iii. Purchase of stationery of ₹3,000 on credit.

a) i, ii and iii b) ii and iii

c) i and iii d) only i

17. Secret Reserve is created by: [1]

a) All of these b) Writing off excessive depreciation

c) Suppressing the sales d) Charging capital expenditure to Profit &

Loss Account
18. What do you understand by balancing of account? [3]
OR
Journalise the following transactions of Sujeet Sharma Traders, timber merchants:
i. Purchased timber from Saksham Kumar, for cash ₹ 2,000 and credit ₹ 10,000.
ii. Paid to Saksham Kumar in full settlement of his account ₹ 9,950.
iii. Paid rent in advance ₹ 10,000.
iv. Purchased machinery for ₹ 1,00,000 by cheque and carriage ₹ 2,000 and installation charges ₹ 1,000 paid in Cash.
v. Purchased goods for ₹ 50,000 from Kunal and sold it to Amit for ₹ 65,000.
19. Explain the meaning and significance of the money measurement concept. [3]
OR
During the financial year 2022-23, Amit had cash sales of ₹ 3,90,000 and credit sales of ₹ 1,60,000. His expenses for
the year were ₹ 2,70,000, out of which ₹ 80,000 is still to be paid. Find out the net income according to Accrual Basis
of Accounting.
20. What is meant by Window dressing? [3]
21. Correct the following Trial Balance: [4]

Debit Balance ₹ Credit Balance ₹

Opening Stock 1,02,600 Debtors 45,000

Returns Outward 48,000 Carriage Outwards 15,000

Salaries 36,000 Capital 1,65,600

Creditors 84,000 Machinery 54,000

Bank 1,35,000 Returns Inward 9,000

Carriage Inwards 18,000 Insurance Claim Received 12,000

Rent Received 9,000 Trade Expenses 18,000

Discount Allowed 6,000 Sales 4,20,000

Purchases 3,00,000 Building 60,000

Other Liabilities 60,000

7,98,600 7,98,600

22. Enter the following transactions in Two-column Cash Book of Renu, and find cash and bank balances: [4]

2023 ₹

April 1 Cash balance ₹ 2,000, bank balance ₹ 24,500

April 2 Cash sales 60,000

April 5 Deposited in Bank 50,000

April 7 Issued cheque to Sunder 10,000

April 12 Received cheque from National Insurance Co. Ltd. against claim lodged last year 19,800

April 14 Sold goods to Nishant of ₹ 25,000, received cash ₹ 10,000 and balance by cheque.

Allowed him discount ₹ 500

April 16 Purchased furniture by cheque 10,000

April 18 Sold old furniture for cash 10,000

April 20 Paid into bank cheque of Nishant along with cash ₹ 2,500

April 22 Paid to Shruti by Cheque 2,500

April 26 Shruti's Cheque returned to technical ground and paid cash for each amount

April 26 Bank charged bouncing charges 300

 April 29 Bank paid insurance premium as per standing instructions 2,500

April 30 Nitin paid into bank directly, intimation received on the same day 5,000

23. Prepare Bank Reconciliation Statement as on 30th September 2023 from the following particulars [4]

(i) Bank Balance as per Pass Book ₹ 10,000

(ii) Cheque deposited into bank but no entry was passed in Cash Book ₹ 500

(iii) Cheque received and entered in Cash book but not sent to Bank ₹ 1,200

(iv) Insurance premium paid directly by the Bank ₹ 800

(v) Bank charges entered twice in the Cash Book ₹ 20

(vi) Cheque received entered twice in Cash Book ₹ 1,000

(vii) Cheque dishonoured not recorded in the Cash Book ₹ 5,000

OR
On examining the Bank statement of Green Ltd., it is found that the balance shown on 31st March 2023, differs from
the bank balance of ₹ 23,650 shown by the Cash Book on that date. From a detailed comparison of the entries, it is
found that-
i. ₹ 2,860 is entered in the Cash Book as paid into Bank on 31st March 2023, but not credited by the Bank until the
following day.
ii. Bank charges of ₹ 70 on 31st March 2023, are not entered in the Cash Book.
iii. Cheques totalling ₹ 16,720 were issued by the company and duly recorded in the Cash Book before 31st March,
2023 but had not been presented at the Bank for payment until after that date.
iv. On 25th March, 2023, a debtor paid ₹ 1,000 into the Company’s Bank in settlement of his account but no entry
was made in the Cash Book of the company in respect of this.
v. No entry has been made in the Cash Book to record the dishonour on 15th March, 2023, of a cheque for ₹ 550
received from Sita Lal.
Prepare a Bank Reconciliation Statement as on 31st March, 2023.

24. Pass Journal entries for the following adjustment on 31st March, 2023: [6]
i. Interest due but not received ₹ 10,000.
ii. Salaries due to staff ₹ 50,000.
iii. Out of the rent paid this year, ₹ 5,000 is for the next year.
iv. Provide 10% depreciation on Furniture costing ₹ 1,00,000
v. Goods used in making Furniture (Sales Price ₹ 5,000; Cost ₹ 4,000).
vi. Received commission of ₹ 20,000 by cheque, half of which is in advance.
vii. Allow interest on capital ₹ 8,000
viii. Charge interest on drawings ₹ 1,500.
OR
Pass Journal entries for the following transactions:

(i) Amit started business with cash ₹ 3,00,000; Bank deposit of ₹ 40,00,000 and furniture ₹ 4,00,000.

(ii) Bought goods from Bhanu Traders ₹ 30,00,000 against cheque of ₹ 15,00,000, balance to be paid later.

(iii) Returned goods of ₹ 1,20,000 to Bhanu Traders.

 (iv) Sold goods to Pankaj ₹ 4,00,000.

(v) Paid to Bhanu Traders ₹ 1,50,000 and cash discount received 2%.

(vi) Goods returned by Pankaj ₹ 80,000.

(vii) Sold goods for cash ₹ 1,20,000.

(viii) Goods given as samples ₹ 20,000.

(ix) Paid income tax of ₹ 37,500.

(x) Goods taken by Amit for household use ₹ 10,000.

25. Rectify the following errors: [6]

i. An amount of ₹ 2,500 spent for the extension of machinery has been debited to Wages Account.
ii. ₹ 100 paid as cartage for the newly purchased furniture, posted to Cartage A/c.
iii. A builder’s bill for ₹ 5,000 for the erection of a small cycle shed was debited to Repairs Account.
iv. A cheque of ₹ 1,700 received from Girdhari Lal was dishonoured and had been posted to the debit side of
Allowance A/c.
v. ₹ 800 paid for the newly purchased Fan posted to Purchases Account.
vi. ₹ 4,000 the amount of sale of old machinery has been credited to Sales Account.
vii. ₹ 1,000 received from ‘X' has been credited to Y's Account.
OR
Trial Balance of a book-keeper shows an excess of debits over credits by ₹ 261. This difference is placed in a
Suspense Account to facilitate books closure. Later on the following errors were discovered
i. A credit item of ₹ 349 has been debited to a Personal Account as ₹ 439.
ii. A sum of ₹ 625 written off from fixtures as depreciation has not been posted to the Depreciation Account.
iii. ₹ 9,000 paid for furniture bought have been charged to the Purchases Account.
iv. A discount allowed to a customer has been credited to him as ₹ 145 in place of ₹ 154.
v. A sale of ₹ 594 was posted as ₹ 495 in the Sales Account.
vi. The total of Returns Inward Book has been added ₹ 10 short.
Pass the Journal Entries to correct these errors and prepare the Suspense Account.

26. On 1st June, 2020, S Ltd. purchased a plant for ₹ 9,00,000. On 1st December 2022 a part of the plant purchased [6]

on 1st June, 2020 for ₹ 1,50,000 was sold for ₹ 60,000. On 1st January, 2023 a new plant was purchased for ₹

3,00,000. Depreciation is provided @ 10% p.a. on Diminishing Balance Method. The books are closed on 31st
March each year. Prepare Plant A/c and Provision for Depreciation A/c for the relevant years.
OR
Ganga Ltd. purchased a machinery on January 01, 2014 for ₹ 5,50,000 and spent ₹ 50,000 on its installation. On
September 01, 2014 it purchased another machine for ₹ 3,70,000. On May 01, 2015 it purchased another machine for
₹ 8,40,000 (including installation expenses). Depreciation was provided on machinery @10% p.a. on original cost
method annually on December 31. Prepare:
i. Machinery account and depreciation account for the years 2014, 2015, 2016 and 2017.
ii. If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision
for depreciation account for the years 2014, 2015, 2016 and 2017.
Part B
27. Which accounting principle is followed by a single entry system? [1]

a) Full Disclosure Principle b) Double Entry or Dual Aspect Principle

c) Money measurement principle d) Revenue Recognition Principle

OR
When closing capital is more than opening capital, it denotes:

a) Profit b) Profit, if there is no introduction of fresh

capital

c) No Profit no loss d) Loss

28. Final Accounts are prepared: [1]

a) at the end of the accounting year b) at the beginning of the accounting year

c) on every Diwali d) at the end of the assessment year

29. Income received in advance is deducted from the income because of [1]

a) Revenue Recognition Concept b) Accrual Concept

c) Matching Concept d) Prudence Concept

OR
Closing Stock is valued at

a) Cost b) Cost or Net Realisable Value, whichever is

less

c) Cost or Net Realisable Value (Market d) Net Realisable Value (Market Value)
Value), whichever is more.
30. Calculate closing stock and cost of goods sold [3]
Opening stock ₹ 5,000; sales ₹ 16,000; carriage inwards ₹ 1,000, sales return ₹ 1,000; gross profit ₹ 6,000;
purchases ₹ 10,000; purchases return ₹ 900.
31. From the following details, calculate Opening Inventory: [3]
Closing Inventory ₹ 60,000; Total Revenue from Operations ₹ 5,00,000 (including cash revenue from operations
₹ 1,00,000); Total purchases ₹ 3,00,000 (including credit purchases ₹ 60,000). Goods are sold at a profit of 25%
on cost.
32. Distinguish between Capital Expenditure and Revenue Expenditure. [3]
33. X, a retailer, has not maintained proper books of account, but it has been possible to obtain the following details: [6]

Last Year (₹) This Year (₹)

Trade Creditors 6,270 5,890

Loan from Naveen 5,000 5,000

Stock 12,350 11,980

Cash in Hand 570 650

Shop Fittings 7,250 7,800

Trade Debtors 5,280 4,560

 Bank Balance 3,990 4,130

Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that:
i. Shop Fittings are to be depreciated by ₹ 780.
ii. X has drawn ₹ 100 per week for his own use.
iii. Included in the Trade Debtors is an irrecoverable balance of ₹ 270.
iv. Interest at 5% p.a. is due on the loan from Naveen but has not been paid for the year.
OR
Ram commenced business on 1st April 2022 with a capital of ₹ 10,000. He immediately bought furniture and fixture

for ₹ 2,000. On 1st October, 2022, he borrowed ₹ 5,000 from his wife @ 9% per annum (interest not yet paid) and
introduced a further capital of his own amounting to ₹ 1,500. He drew @ ₹ 300 per month at the end of each month

for household expenses. On 31st March 2023 his position was as follows:
Cash in hand ₹ 2,800, Sundry Debtors ₹ 6,400, Stock ₹ 6,800, Sundry Creditors ₹ 500 and owing for Rent ₹ 150.
Furniture and Fixtures to be depreciated by 10%.

Ascertain the Profit earned or loss incurred by Ram during the year ended 31st March, 2023.

34. From the following trial balance, prepare a Trading and Profit & Loss A/c for the year ended 31st March, 2023 [6]
and a Balance Sheet as at that date:

Dr. Balances ₹ Cr. Balances ₹

Drawings 8,500 Capital 1,50,000

Purchases 2,80,000 Creditors 45,000

Carriage Inward 4,000 Outstanding Expenses 9,000

Wages 30,000 Rent Received 2,000

Power 11,000 Purchase Return 15,000

Depreciation on Machinery 2,000 Sales 4,40,000

Advertisement Development 15,000 Provision for bad debts 2,000

Plant and Machinery 70,000 Discount Received 3,500

Goodwill 18,000

Agent’s Samples 6,000

Opening Stock 35,000

Debtors 26,200

Cash at Bank 16,000

Cash in Hand 22,800

Salaries 47,000

General Expenses 17,000

Prepaid Expenses 900

Salary to Agent 21,000

 Rent and Insurance 23,000

Discount Allowed 7,000

Sales Return 2,900

Commission to Agent 3,200

6,66,500 6,66,500

Adjustments:
i. Closing Stock was valued at ₹ 50,000. Goods costing ₹ 5,000 were distributed among staff members free of
cost.
ii. Depreciate agents samples by 25%.
iii. Write off advertisement development by 30%.
iv. Write off ₹ 2,200 as bad debts and create a provision for doubtful debts on debtors at 5%.
v. Proprietor withdrew ₹ 1,000 for his private use. This amount was included in general expenses.
vi. Charge 5% manager’s commission on net profit after charging his commission.
vii. There is a contingent liability of ₹ 20,000 in respect of a court case.
OR
From the following trial balance of Mr A Lal, prepare trading and profit and loss account and balance sheet as on
31st March, 2014.

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

Stock as on 1 st April, 2011 16,000

Purchases and sales 67,600 1,12,000

Return inwards and outwards 4,600 3,200

Carriage inwards 1,400

General expenses 2,400

Bad debts 600

Discount received 1,400

Bank overdraft 10,000

Interest on bank overdraft 600

Commission received 1,800

Insurance and taxes 4,000

Scooter expenses 200

Salaries 8,800

Cash in hand 4,000

Scooter 8,000

Furniture 5,200

Building 65,000
Debtors and creditors 6,000 16,000

Capital 50,000

Closing stock Rs. 15,000.

Series ARSP/15 Set ~15
Roll No. Q.P Code 15/15/15
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

Time Allowed: 3 hours Maximum 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 B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Which document evidencing that the account of the named person is debited for the reason stated therein [1]

a) Credit note b) Cash Memo

c) Cheque d) Debit Note

2. Assertion (A): Accounting records only those transactions which can be measured in terms of money. [1]
Reason (R): Transactions and events that are not measurable in terms of money can't be valued in Accounts.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Goodwill account is a: [1]

a) Nominal Account b) Real Account

c) representative personal account d) Personal Account

4. Capital of a business decreases if there is an increase in [1]

a) Income b) Drawings

c) Fresh Capital d) Gains

OR
What will be the effect on the accounting equation for outstanding expenses?
(Options are in the format of assets, liabilities, capital).

a) No change, Increase, Decrease b) Decrease, Increase, Decrease

c) Decrease, Decrease, No change d) Decrease, No change, Decrease

5. Which of the following statements about original copy of invoice/bill is correct? [1]
 a) It is kept with seller for making records in b) It is made for cash transactions
books of accounts

c) When goods are returned to a supplier d) It is sent to the purchaser

6. Which stakeholder would be most interested in whether the firm has a long-term future: [1]

a) Management b) Suppliers

c) Government and other regulators d) Lenders

OR
Which of the following is the process of entering business transactions of financial character in the books of original
entry in terms of money?

a) Summarising b) None of these

c) Interpretation d) Classifying
7. Creation of provision is: [1]

a) Necessary b) Voluntary

c) Unnecessary d) Illegal
8. Which account will be debited if proprietor pays ₹ 5,000 as life insurance premium from business cash? [1]

a) Bank A/c b) Drawings A/c

c) Cash A/c d) Insurance A/c

OR
Sale of goods to Rahul for cash is debited to:

a) Rahul A/c b) Sales A/c

c) Stock account d) Cash A/c

9. According to Convention of Conservatism closing stock is valued at: [1]

a) At real value b) At cost price

c) Cost price or relisable value whichever is d) At realisable value

less.
10. According to which, accounting principle personal expenses of proprietor are recorded in drawings account. [1]

a) Prudence b) Matching

c) Business Entity Concept d) Money measurement

11. Features of reserves are: [1]

a) It is created out of divisible profits b) Their creation is voluntary

c) All of these d) They are available for distribution as

dividends
12. The term fixed assets include: [1]

a) Furniture b) Bills Receivable

c) Debtors d) Closing Stock

13. The sales return book does not record which of the following? [1]
 i. Return of goods sold on cash basis.
ii. Return of goods sold on credit basis.
iii. Return of assets other than the goods in which the firm deals in.

a) i b) ii

c) iii d) i and iii

14. X commenced business on 1st April 2022 with a capital of ₹ 6,00,000. On 31st March 2023, his assets were [1]
worth ₹ 8,00,000 and liabilities ₹ 50,000. Find out his closing capital.

a) ₹ 5,50,000 b) ₹ 7,50,000

c) ₹ 6,50,000 d) ₹ 2,00,000
15. The objective of providing discount is to encourage the debtors to pay the dues promptly is [1]

a) Rebate b) Seasonal discount

c) Trade discount d) Cash discount

OR
Expenditure on purchase of machinery is a

a) Deferred revenue expenditure b) Revenue expenditure

c) Expense d) Capital expenditure

16. In the Purchases Book, transactions recorded are [1]

a) cash purchases of goods dealt in. b) purchase of anything.

c) credit purchases of goods dealt in. d) all purchases of goods dealt in.
17. Name the reserve which has been created out of profit which has been earned in the normal course from day to [1]
day activities of the business concern.

a) Specific reserve b) General reserve

c) Revenue Reserve d) Capital Reserve

18. Enumerate four advantages of Ledger. [3]
OR
Journalise the following transactions:
i. Goods destroyed by fire for Rs 4,500
ii. Paid Rs 1,500 in cash as wages on the installation of machinery
iii. Issue a cheque in favour of M/s. Parmatma Saran & Sons on accounts of purchase of goods Rs 7,500
iv. Goods sold costing Rs 6,000 of M/s. Kalu sons at an invoice price of 10% above cost less 5% Trade Discount.
19. Explain the business entity assumption. [3]
OR
What is meant by the Accrual Basis of Accounting? Give any two advantages of the Accrual basis of accounting.
20. Write a note on types of assets with one example of each. [3]
21. Following balances were extracted from the books of Rajesh Associates as at 31st March, 2023: [4]

(₹) (₹)

Sundry Debtors 4,10,000 Stock (April 1, 2022) 2,30,000

 Sundry Creditors 80,000 Premises 12,00,000

Rent and Taxes 48,000 Fixtures & Fittings 3,10,000

Purchases 34,00,000 Bad Debts written off 8,000

Sales 56,00,000 Rent received from sub-let of part of premises 30,000

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

Returns Outwards 80,000 Interest on Rahul's Loan 15,000

Returns Inwards 1,20,000 Drawings 40,000

Expenses 4,000 Cash in hand 75,000

Motor Vehicles 6,50,000 Stock on 31st March, 2023

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

You are required to prepare the trial balance treating the difference as his capital.
22. Prepare Two-column Cash Book of Vinu from the following transactions: [4]

2023 ₹

Oct. 1 Cash in Hand 25,000

Oct. 1 Cash at Bank 75,000

Oct. 7 Bought goods against cheque 15,000

Oct. 8 Bought goods 5,000

Oct. 10 A post-dated cheque issued earlier honoured 5,000

Oct. 14 Paid Miscellaneous expense 150

Oct. 18 Rohit who owed ₹ 5,000 became bankrupt and paid us 50 paise in a rupee

Oct. 20 Received cash from Mohit 7,500

Allowed discount 250

Oct. 23 Withdrew from bank 4,000

Oct. 24 Paid to Gopal & Co. 3,000

Received discount 100

Oct. 25 Withdrew from bank for personal expense 3,000

Oct. 27 Sold goods 11,000

Oct. 28 Received cheque for goods sold 19,000

Oct. 29 Received part payment from Abhishek of ₹ 5,000 and deposited ₹ 3,000 out of it into bank

23. Draw bank Reconciliation statement showing adjustment between your cash book and pass book as on 31st [4]
March 2023.
i. On 31st March, 2023 your passbook showed a balance of ₹ 6,000 to your credit.
 ii. Before that date, you had issued cheques amounting to ₹ 1,500 of which cheques of ₹ 900 have been
presented for payment.
iii. A cheque of ₹ 800 paid by you into the bank on 29th March 2023 is not yet credited in Passbook.
iv. There was a credit of ₹ 85 for interest on current account in the passbook.
v. On 31st March 2023, a cheque for ₹ 510 received by you and was paid into bank but the same was omitted to
be entered in cash book.
OR
Prepare Bank Reconciliation Statement from the following particulars as on 31st March, 2023, when Pass Book
shows a debit balance of ₹ 25,000:
i. Cheque issued for ₹ 50,000 but up to 31st March, 2023 only ₹ 30,000 could be cleared.
ii. Cheques issued for ₹ 10,000 but omitted to be recorded in the Cash Book.
iii. Out of Cheques deposited for ₹ 55,000, cheques for ₹ 5,000 were collected on 4th April, 2023.
iv. A discounted post-dated cheque of ₹ 10,000 was dishonoured.
v. A cheque of ₹ 5,000 debited in Cash Book but omitted to be banked.
vi. Interest allowed by bank ₹ 2,000 but no entry was passed in the Cash Book.
24. Following was the position of Mahesh & Co. as on 1st April, 2023: [6]
Cash in Hand ₹ 10,000; Cash at Bank ₹ 16,800; Furniture ₹ 8,000; Stock ₹ 50,000; Debtors - Rishab ₹ 8,000;
Raman ₹ 12,000; Creditors - Arnab ₹ 4,000; Satish ₹ 5,000.
Following transactions took place during April, 2023:

2023

April 2 Received a cheque from Rishab in full settlement of his account after deducting 5% cash discount.

April 4 Deposited the above cheque into Bank.

Goods purchased for ₹ 20,000 at 10% trade discount and 5% cash discount. Payment made by
April 5
cheque.

Received a cheque from Raman for ₹ 3,860 and discount allowed to him ₹ 140.
April 6
Cheque deposited into the bank on the same day.

April
Cash paid to Arnab after deducting 2% cash discount.
10

April
Old furniture sold for ₹ 800.
15

April
Sold goods to Ram Parshad of the list price of ₹ 10,000 at a trade discount of 15%.
16

April
Ram Parshad returned goods of the list price of ₹ 1,000.
18

April
Paid for furniture repairs to Bahadur Singh ₹ 100.
20

April Received a cheque from Ram Parshad after deducting 4% cash discount. Cheque was deposited into
25 bank.
 April Bank charged ₹ 50 for ‘Bank Charges’.
28

April
Received Commission ₹ 200.
30

OR
Pass entries in the books of Ashok Bros. assuming that all transactions have been entered within the sate of UP and
assuming CGST @6% and SGST @6%:

2023

Jan. 2 Purchased good for 20,0000 on credit.

Jan. 5 Sold goods for 30,0000 on credit.

Jan. 10 Purchased Computer Printer for office for 50,000 and payment made by cheque.

Jan. 20 Legal consultation fee of 10,000 paid in cash.

Jan. 22 Rent of 20,000 paid by cheque.

Jan. 31 Payment made of balance amount of GST.

25. Ritik Gupta was unable to reconcile his Trial Balance as on 31st March 2023 and has opened a suspense account [6]
from the difference. Later on the following errors were discovered:-
i. There were three compensating errors:
a. The total of Sales Return Book was overcast by ₹ 100
b. The total of one page of the Purchase Book was carried forward as ₹ 1,286 instead of ₹ 1,826
c. Goods purchased from C for ₹ 400 was debited to his account as ₹ 40
ii. ₹ 425 paid for wages to workmen for making office table were debited to wages account.
iii. Rent paid ₹ 1,500 were posted to the credit of Rent account as ₹ 150
iv. Cash received from Govind ₹ 500 were correctly recorded in cash book but were posted to his account as ₹
50
v. ₹ 720 paid to Kamlesh has been debited to Kamal A/c as ₹ 520
vi. The total of Purchase Return Book ₹ 2,500 was left unposted.
Pass rectifying entries and prepare Suspense A/c.
OR
Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.
a. Credit sales to Maadhav ₹ 7,000 were recorded in purchase book. However, Maadhav's account was correctly
debited.
b. Credit purchase from Ronak ₹ 9,000 were recorded in sales book. However, Ronak's account was correctly
credited.
c. Goods returned to Rahil ₹ 4,000 were recorded in sales return book. However, Rahil's account was correctly
debited.
d. Goods returned from Manoj ₹ 1,000 were recorded through purchase return book. However, Manoj's account was
correctly credited.
e. Goods returned to Nitin ₹ 2,000 were recorded through purchase book. However, Nitin's account was correctly
debited.
26. A company had bought Machinery for ₹ 1,00,000 including therein a boiler worth ₹1 0,000. Depreciation was [6]
charged on Reducing Balance Method at the rate of 10% p.a. for first five years and Machinery Account was
credited accordingly. During the fifth current year, the boiler became useless on account of damages to some of
its vital parts. The damaged boiler is sold for ₹ 2,000. Prepare the Machinery Account for five years.
OR
On 1st October 2014, Bansal Pvt. Ltd. purchased machinery for Rs 12,00,000. On 31st May, 2016, a part of the
machinery purchased on 1st October 2014 for Rs 1,60,000 was sold for Rs 60,000. On the same date, fresh
machinery was purchased for Rs 3,00,000. Depreciation is provided at 20% per annum on the written down value
method and the books are closed on 31st March each year. You are required to prepare (a) Machinery Account, (b)
Provision for Depreciation Account, and (c) Machinery Disposal Account.
Part B
27. In a single entry system, it is not possible to prepare: [1]

a) Balance sheet b) Account sales

c) Receipts and payments A/c d) Trial balance

OR
The opening capital is ascertained by preparing

a) Cash book b) Opening statement of affairs

c) Creditors d) Debtors
28. Closing Stock appearing in the Trial Balance is shown: [1]

a) On the Liability side of the Balance Sheet b) On the Cr. side of Trading A/c

c) On the Assets side of the Balance Sheet d) On the Dr. side of Trading A/c
29. Wages paid for the installation of the machine is added to the cost of machine because of [1]

a) Cost Principle b) Accrual Concept

c) Materiality Principle d) Matching Principle

OR
Insurance paid ₹ 16,000 (including premium of ₹ 12,000 per annum paid upto 30th June, 2023). What will be the

adjusting closing entry necessary as on 31st March, 2022:

a) Insurance Prepaid A/c Dr. 3,000 b) Insurance Prepaid A/c Dr. 1,000

To Insurance A/c 3,000 To Insurance A/c 1,000

c) Insurance A/c Dr. 3,000 d) Insurance Prepaid A/c Dr. 4,000

To Insurance Prepaid To Insurance A/c 4,000

3,000
A/c

30. Following information was taken from an Income Statement: [3]

Opening Stock ₹ 5,000; Sales ₹ 16,000; Carriage Inwards ₹ 1,000; Sales Return ₹ 1,000; Gross Profit ₹ 6,000;
Purchases ₹ 10,000; and Purchases Return ₹ 900. Calculate Closing Stock and the Cost of Goods Sold.
31. Explain the concept of cost of goods sold. [3]

32. Suraj’s Trial Balance as on 31st March, 2023 shows the following information: [3]
 Heads of Accounts Debit (₹) Credit (₹)

Purchases 2,80,000 ____

Sales ____ 3,50,000

Carriage on Purchases 10,000 ____

Suraj took goods costing ₹ 20,000 for his personal use but entry was not passed in the books of account. Show
the treatment in the Final Accounts.
33. C maintain his books according to Single Entry System. Following figures were available from the books for the [6]
six months ended 31st December, 2017-

1st July, 2017 (Rs.) 31st Dec. 2017 (Rs.)

Plant and Machinery 1,50,000 1,40,000

Debtors 65,000 60,000

Cash and Bank balances 25,000 31,000

Stock 40,000 45,000

Creditors 9,000 10,000

Adjustments-
a. He had withdrawn Rs.200 in the beginning of every month for household purposes.
b. Depreciation on Plant and Machinery @ 10% p.a.
c. Further Bad Debts Rs.5,000 and Provision for Doubtful Debts to be created @ 2%.
d. During the period, salaries have been prepaid by Rs.500 while wages outstanding were Rs.1,000.
e. Interest on drawings to be reckoned @ 6% p.a.
You are required to prepare the Statement of Profit or Loss for the half year ended 31st December, 2017,
followed by Revised Statement of Affairs as on that date.
OR
Following incomplete information is available from records maintained by Mr. A:

1-4-2022 (₹) 31-3-2023 (₹)

Cash 1,000 1,500

Bank 8,000 10,000

Debtors 10,000 12,000

Stock 7,000 6,000

Machinery 20,000 20,000

Creditors 11,000 10,000

Bank Loan 12,000 12,000

During the year Mr. A introduced in the business the amount realised on sale of ₹ 10,000 investments at the premium
of 5%. Personal expenses of Mr. A paid from the business account amounted to ₹ 1,250 per month. Prepare a
statement to calculate Profit (or Loss) during the year.

34. Trial Balance of Gaurav as at 31st March, 2023 was as follows: [6]
 Heads of Accounts Dr. (₹) Cr. (₹)

Purchases 8,12,525 ____

Sales ____ 12,62,000

Provision for Doubtful Debts ____ 26,000

Sundry Debtors 2,51,000 ____

Sundry Creditors ____ 1,52,630

Opening Stock 1,33,625 ____

Wages 1,15,685 ____

Salaries 27,875 ____

Furniture 36,250 ____

Postage 21,130 ____

Power and Fuel 6,750 ____

General Expenses 29,155 ____

Bad Debts 2,625 ____

Loan to Ravi @ 10% p.a. (1st December, 2022) 15,000 ____

Cash in Hand and at Bank 50,000 ____

General Expenses Outstanding ____ 3,500

Drawings A/c 22,260 ____

Capital A/c ____ 50,000

Outstanding Wages ____ 30,250

Input CGST 5,000 ____

Input SGST 5,000 ____

Input IGST 8,000 ____

Output CGST ____ 4,000

Output SGST ____ 4,000

Output IGST ____ 9,500

Total 15,41,880 15,41,880

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2023 and Balance Sheet as at that
date after following adjustments:

i. Stock on 31st March, 2023 was ₹ 62,750.

ii. Depreciation on furniture is to be charged @ 10%.
iii. Sundry Debtors include an amount of ₹ 2,500 due from a customer who has become insolvent.
iv. The remaining debtors are good.
 v. On 26th March, 2023, goods costing ₹ 7,500 were destroyed by fire and insurance company admitted a claim

for ₹ 5,000. The amount was received on 10th April, 2023 (Ignore GST).

vi. Received goods from Rohit & Co. of ₹ 6,000 on 27th March, 2023 but the invoice of purchase was not
recorded in the Purchases Book (Ignore GST).
OR
From the following balances of M/s Nilu Sarees as on 31st March, 2017. Prepare trading and profit and loss account
and balance sheet as on date.

Account Title Debit Amount (₹) Account Title Credit Amount (₹)

Opening stock 10,000 Sales 2,28,000

Purchases 78,000 Capital 70,000

Carriage inwards 2,500 Interest 7,000

Salaries 30,000 Commission 8,000

Commission 10,000 Creditors 28,000

Wages 11,000 Bills Payable 23,700

Rent and taxes 2,800

Repeir 5,000

Telephone expenses 1,400

Legal charges 1,500

Sundry expenses 2,500

Cash in hand 12,000

Debtors 30,000

Machinery 60,000

Investments 90,000

Drawings 18,000

Closing stock as on 31st March, 2017 ₹ 22,000.