SAMPLE PAPER-1 CLASS – XI ACCOUNTANCY

TIME: 3 HOURS MAX. MARKS: 80

General Instructions:
1. This question paper comprises two Parts – A and B. There are 34 questions in the
question paper. All questions are compulsory.
2. Marks are indicated against each question.
3. Attempt all parts of the questions together.
4. 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 Manipulation of accounts to show a better position then what actually is, known 1
as______
a. Reliability b. Relevance
c. Comparability d. Window dressing
2 The concept that states the revenue and the expenses incurred to earn the revenue 1
must belong to the same accounting period for ascertaining profit/loss for that
year.
a. Revenue Recognition b. Matching
c. Full Disclosure d. Cost
OR
Under which accounting principle is it necessary to record a contingent liability in
the books?
A. Money Measurement Concept
B. Materiality Concept
C. Full Disclosure Principle
D. Conservatism Principle

3 Identify the qualitative characteristics of accounting information which is reflected 1

when the information is free from errors.
A. Relevance
B. Reliability
C. Comparability
D. None of these
4 A person who is responsible for recording transactions in a petty cash book is 1
known as:
(a) General cashier
(b) Petty cashier
(c) Additional cashier
(d) Counter cashier

1
 OR
A cheque received and deposited on same day will be recorded in cash book in:
(a) Cash column on debit side
(b) Cash column on credit side
(c) Bank column on debit side
(d) Bank column on credit side

5 Why is a regularly prepared BRS considered a good accounting practice? 1

A. It helps in manipulating balances
B. It reduces the need for budgeting
C. It ensures transparency and accountability
D. It removes the need for internal control
6 Which accounting concept is applied when closing stock is valued at lower of cost 1
(purchase cost) or market price of goods?
A. Realisation
B. Accrual
C. Prudence (Conservatism)
D. Matching.
7 Goods taken away by the proprietor from business for his personal use will be 1
recorded in ______________
A. Purchase book
B. Sales book
C. Purchase return book
D. Journal proper
OR
Loss of goods by fire should be credited to __________
A. Sales a/c
B. Purchases a/c
C. Goods a/c
D. Loss a/c
8 What is the main purpose of creating a General Reserve? 1
A. To distribute higher dividends
B. To meet future uncertainties or losses
C. To invest in fixed assets
D. To repay loans
9 Under the Straight Line Method, the depreciation amount: 1
A. Remains the same every year
B. Increases every year
C. Decreases every year
D. Is calculated only in the first year

10 A payment of ₹6,000 received from Mr. Ramesh was wrongly credited to Mr. 1

2
 Suresh’s account.
What type of error is this?
A. Error of omission B. Error of principle
C. Error of commission D. Error of duplication

11 Bank charges of ₹500 were debited by the bank but not recorded in the Cash 1
Book.
Q. What is the correct treatment in the Bank Reconciliation Statement?
A. Add ₹500 to the Cash Book balance
B. Deduct ₹500 from the Cash Book balance
C. Add ₹500 to the Pass Book balance
D. Deduct ₹500 from the Pass Book balance

12 If the business owner withdraws cash for his personal use, what will be the effect 1
on capital _______________
A. Increase in capital
B. Decrease in capital
C. Remain the same
D. No effect on capital
OR
The periodic total of the sales return journal is posted to ___________
A. Sales a/c
B. Purchases a/c
C. Sales return a/c
D. Purchases return a/c
13 Wages paid for installation of machinery ₹2,000 were debited to Wages Account. 1
What type of error is this?
A. Error of omission B. Error of principle
C. Compensating error D. Clerical error
14 In cash book, the unfavorable balance indicates ___________
A. Credit balance
B. Debit balance
C. Both A and B
D. Adjusted balance
OR
In cash book, the favorable balance indicates ____________
A. Credit balance
B. Debit balance
C. Bank Overdraft
D. Adjusted balance
15 Depreciation is applied due to ____________ 1
A. Increase in the value of liability
B. Decrease in capital
C. Wear and tear of assets

3
 D. Increase in the value of assets
16 Total amount of depreciation of an asset cannot exceed its___________ 1
A. Depreciable value
B. Scrap value
C. Market value
D. None of these
17 Explain the following terms briefly: 3
(i) Assets (ii) Liabilities (iii) Capital
OR
Explain the objectives of accounting standards.
18 Explain any three accounting assumptions with suitable examples. 3
OR
What do you understand by GAAP? Explain any two basic accounting principles
under GAAP with suitable examples
19 What do you understand by the term 'GST'? Mention any two key features of 3
GST.
20 Differentiate between Reserve and Provision on the basis of meaning, purpose, 3
and treatment in financial statements.
21 On 1st July 2023, Riya started her business by investing ₹1,00,000 in cash. 4
She purchased goods worth ₹50,000 from Sunil Traders allowing a trade discount
of 10%.
She sold goods worth ₹30,000 to Aman giving a trade discount of 5%.
The payment to Sunil Traders was made immediately in cash, and Aman paid
₹28,500 in cash.
Journalize the following entries in the books of Riya.
22 Prepare Double Column Cash Book from the following information for 6
September, 2020:
Rs.
Sep.01 Cash in hand 10,000
Bank Overdraft 4,000
Sep.05 Cash deposited into bank 2,000
Sep.10 Goods purchased and paid by cheque 3,000
Sep.15 Drew from bank for personal use 1,000
Sep.16 Cash received from Mohan 10,000
Sep.25 Purchased Motor Car paid by cheque 15,000
Sep.26 Cash withdrawn for office use 5,000
Sep.27 Salary paid 1,000
Sep.30 Cash Sales 8,000

23 Prepare bank reconciliation statement of Shri Bhandari as on December 31, 2020 6

(i) The Payment of a cheque for Rs. 550 was recorded twice in the passbook.
(ii) Withdrawal column of the passbook under cast by Rs. 200
(iii) A Cheque of Rs. 200 has been debited in the bank column of the Cash Book
but it was not sent to bank.
(iv) A cheque of Rs. 300 which was received from a customer was entered in the
bank column of the cash book in December 2020 but was omitted to be banked in

4
 December, 2020
(v) Received a payment directly from customer Rs.4600 by bank.
(vi) Rs. 500 in respect of dishonored cheque were entered in the passbook but not
in the cash book.
Overdraft as per passbook is Rs. 20,000.

24 Trial balance of Kohli did not agree and showed an excess debit of Rs. 16,300. He 6
put thedifference to a suspense account and discovered the following errors:
(a) Cash received from Rajat Rs. 5,000 was posted to the debit of Kamal as
Rs.
6,000.
(b) Salaries paid to an employee Rs. 2,000 were debited to his personal
account
as Rs.1200.
(c) Goods withdrawn by proprietor for personal use Rs. 1,000 were credited
to
sales account as Rs. 1,600.
(d) Depreciation provided on machinery Rs. 3,000 was posted to Machinery
account as Rs. 300.
(e) Sale of old car for Rs. 10,000 was credited to sales account as Rs. 6,000.
Rectify the errors and prepare suspense account.
25 A company purchased a machinery for Rs.1,00,000 on 1st July, 1999. Another 6
machinery costing Rs. 20,000 was purchased on 1st Oct., 2000. On 31st Dec.,
2001, the machinery which was purchased in 1999 was sold at a loss of Rs. 5,000.
The company charges depreciation @ 10% on straight line method. Accounts are
closed on 31st Dec. every year.
Prepare machinery account for first three years and also prepare machinery
disposal account. Show working notes clearly.
OR
On April 01, 2015, following balances appeared in the books of M/s Kanishka
Traders:
Furniture account Rs. 50,000,
Provision for depreciation on furniture Rs. 22,000.
On October 01, 2015 a part of furniture purchased for Rupees 20,000 in April 01,
2011 was sold for Rs. 5,000. On the same date a new furniture costing Rs. 25,000
was purchased.
The depreciation was provided @ 10% p.a. on original cost of the asset and no
depreciation was charged on the asset in the year of sale.
Prepare furniture account and provision for depreciation account for the year
ending March 31, 2016.
PART - B

26 Cost of goods purchased for resale is an example of ______________ 1

A. Capital expenditure
B. Revenue expenditure

5
 C. Deferred revenue expenditure
D. None of these
OR
Revenue expenditures, which are likely to give benefit for more than one
accounting period, are termed as …………...........
A. Capital expenditure
B. Deferred revenue expenditure
C. Both capital and deferred revenue expenditure
D. None of the above
27 Which of the following best describes a Statement of Affairs? 1
A. A cash flow statement
B. Similar to a trial balance
C. An estimate of assets and liabilities
D. A list of all income and expenses
28 If capital at the end is Rs.40,000, capital introduced during the year Rs.30,000, 1
drawings for the year is Rs.20,000 and loss for the year is Rs.60,000, capital in the
beginning will be
A. 10,000
B. 70,000
C. 80,000
D. 90,000
OR
From the following information, Calculate Capital at the beginning:
Capital at the end of the year 4,00,000, Drawings made during the year 60,000,
Fresh Capital introduce during the year 1,00,000 and Profit of the current year
80,000
A. 2,10,000
B. 2,70,000
C. 2,80,000
D. 2,60,000
29 Which of the following is not a feature of Single Entry System? 1
A. Only personal and cash accounts are maintained
B. It is suitable for large businesses
C. It is not based on double entry
D. It does not provide complete financial information
30 From the following balances extracted from the books of M/s Ahuja and Nanda. 3
Calculate the amount of: (a) Cost of goods sold during the year (b) Gross Profit
Rs.
Opening stock 25,000
Credit purchases 7,50,000
Cash purchases 3,00,000
Credit sales 12,00,000
Cash sales 4,00,000
Wages 1,00,000
Salaries 1,40,000
Closing stock 30,000

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 Sales return 50,000
Purchases return 10,000
OR
From the following details, calculate the closing stock of a business:
 Opening Stock: ₹40,000
 Purchases: ₹1,20,000
 Sales: ₹2,00,000
 Gross Profit: 25% on sales
 Expenses: ₹30,00

31 State any three objectives of preparing financial statement. 3

32 Manveer started his business on April 01, 2022 with a capital of Rs. 4,50,000. On 4
March 31, 2023 his position was as under: Rs.
Cash 99,000
Bills receivable 75,000
Plant 48,000
Land and Building 1,80,000
Furniture 50,000
Loan from Susheel 45,000
He withdrew Rs. 8,000 per month for his household purposes.
Ascertain his profit or loss for this year ended March 31, 2023.
OR
From the information given below ascertain the profit for the year ending 31 st
march, 2017:
Rs.
Capital at the beginning of the year 70,000
Additional capital introduced during the year 17,500
Drawings made during the year 26,400
On March 31, 2017 position was as under:
Stock 59,500
Sundry debtors 25,900
Business premises 8,600
Machinery 2,100
Sundry creditors 33,400

33 Extract of Trial Balance 4

as on 31st March, 2022

Debit Balance Credit Balance

Name of Accounts
(₹) (₹)
Bad Debts 10,800
Provision for Bad and Doubtful Debts (1st
22,500
April, 2021)
Sundry Debtors 6,00,000
Additional Information:

7
 1. Write-off further bad debts ₹ 6,000.
2. Provision for doubtful debts to be maintained at 5% on sundry debtors.
3. Create a provision for discount on sundry debtors at 3%.
Show effect on profit and loss account and balance sheet.

34 From the following balances of M/s Jyoti Exports; prepare trading and profit and 6
loss account for the year ended March 31, 2020.
Debit Credit
Accounts Title Amount Accounts Title Amount
Rs. Rs.
Sundry debtors 9,600 Sundry creditors 2,500
Opening stock 22,800 Sales 72,670
Purchases 34,800 Purchases return 2,430
Carriage inwards 450 Bills payable 15,600
Wages 1,770 Capital 42,000
Office rent 820
Insurance 1,440
Factory rent 390
Cleaning charges 940
Salary 1,590
Building 24,000
Plant and Machinery 3,600
Cash in hand 2,160
Gas and water 240
Octroi 60
Furniture 20,540
Patents 10,000
1,35,200 1,35,200
Adjustments:
(a) Closing Stock Rs.10000
(b) Provision for bad debts is to be maintained at 5% on sundry debtors.
(c) Wages amounting to Rs.500 and salary amounting to Rs.350 are
outstanding.
(d) Factory rent prepaid Rs.100
(e) Depreciation charged on Plant and Machinery @ 5% and Building @10%.
(f) Outstanding insurance Rs.100

OR

From the following balances of M/s Keshav Bros. You are required to prepare

8
 trading and profit and loss account of March 31, 2020.

Debit balances Rs. Credit balances Rs.

Plant and Machinery 1,30,000 Sales 3,00,000
Debtors 50,000 Return Outwards 2,500
Interest 2,000 Creditors 2,50,000
Wages 1,200 Bills Payable 70,000
Salary 2,500 Interest received 1,550
Carriage Inwards 500 Capital 2,20,000
Carriage Outwards 700 Rent received 10,380
Return Inwards 2,000 Commission received 16,000
Factory rent 1,450
Office rent 2,300
Insurance 780
Furniture 22,500
Buildings 2,80,000
B/R 3,000
Cash in hand 22,500
Cash at bank 35,000
Commission 500
Opening Stock 60,000
Purchases 2,50,000
Bad Debts 3,500
8,70,430 8,70,430

Adjustments:
1. Provision for bad debts @ 5% and further bad debts Rs. 2,000.
2. Rent received in advance Rs. 6,000.
3. Prepaid insurance Rs. 200.
4. Depreciation on furniture @ 5%, plant and machinery @ 6%, building @
7%.

SAMPLE PAPER-2

PART A-FINANCIAL ACCOUNTING

Ghanshyam is a furniture dealer. which one the following will not be recorded
in his books?
(a)purchase of timber for Rs 50,000
(b)sofa set worth Rs 40,000 taken to his home
(c)sale of house hold furniture for Rs 5,000
(d)dining table for Rs 30,000 given to his friend as gift
Salary to a manager will be recorded in the book of account but appointment
of a manager is not recorded due to

9
 (a)Money measurement
(b)Accounting period
(c)Full disclosure
(d)Business entity
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 record of business
(d)to provide information regarding the profit and loss of enterprise
Or
Which external user of accounting information is most interested in
knowing the long-term solvency position of the firm?
(a) Employees (b)Management
(c) Bank and financial institutions (d)Researchers

Credit purchase of furniture will be recorded through which voucher?

(a)Debit voucher (b)Credit voucher
( c)Cash voucher (d)Transfer voucher

X commenced business on 1st April, 2022with a capital of ₹6,00,000. On

31st March, 2023 his assets were worth ₹8,00,000 and liabilities ₹50,000.
Find out his closing capital.
(a)₹7,50,000 (b) ₹2,00,000 (c) ₹5,50,000 (d) None of these

On Intra-state purchase of goods, which of the following GST is levied?

(a) IGSTand SGST (b) CGST and SGST
(c) CGST and IGST (d) IGST
Or
Journal entry for stock left unsold at the end of the year is:
(a) Dr. Closing Stock A/c and Cr. Trading A/c
(b) Dr. Trading A/c and Cr. Closing Stock A/c
(c) Dr. Closing Stock A/c and Cr. P & L A/c
(d) Dr. P & L A/c and Cr. Closing Stock A/c

Which of the following error is not disclosed by the trial balance

(a)error of casting of book of original entry
(b)posting of wrong amount in ledger account
( c)error of omitting to record a transaction in books of original entry
(d) all of above
Sales Book records only ………………….. sale of goods.
(a) Cash (b) Credit (c) Revenue (d) Deferred revenue
Which of the following is not recorded in the Cash Book?
(a) Credit sales (b) Bad debts
(c) Depreciation on Machinery (d) All of these

10
 Or
Debit balance of ₹10,000 in the Cash Column of the
Cash Book shows that:
(a) ₹10,000 has been paid out.
(b)₹10,000 is owing.
(c)The amount received exceeds the amount paid by Rs.10,000
(d) ₹10,000 has been credited into the bank account.

Credit Balance on the bank account of a Cash Book is:

(a) Favourable balance (b) Unfavourable balance
(c) Overdraft Balance (d)Both (b) and (c)
Or
Credit Balance on the bank account of a Pass Book is:
(a) Favourable balance (b) Unfavourable balance
(c)Overdraft Balance (d) Both (b) and (c)

Read the following statement - Assertion (A) and Reason (R).

Choose one of the correct alternatives given below:
Assertion (A): Purchase account is credited when the proprietor
withdrawal goods from the business for his personal use.
Reason (R): Purchase account is credited because as a result of
withdrawal of goods, net amount of purchase of the business is reduced.
Alternatives:
(a) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are correct, but (R) is not the correct
explanation of (A).
( c) (A) is correct but (R) is wrong.
(d) Both (A) and (R) are incorrect.

If seller receives back the goods sold i.e. in case of sales return,
which of the following is prepared:-
(a) Credit Note (b)Debit Note
(c) Both (a) and (b) (d) None of these
The term ‘Depletion’ is used for which types of assets?
(a) Liquid assets (b)Fixed Assets
(c) Wasting assets (d)Intangible assets

If cost price of an asset is Rs.5,00,000 and depreciation is charged @20% p.a.

on diminishing balance method, then book value at end of two years is-
(a)Rs.3,20,000 (b) Rs 4,00,000 (c) Rs 3,00,000 (d)5,00,000
OR
On 1April 2018 a machinery purchased for Rs. 2,00,000. Depreciation is
charged @ 10 % [Link] original cost method and books are closed on 31
March each year. On 1st July 2020 the machinery is sold for Rs. 1,20,000.
Loss on sale will be:
(a)Rs. 30,000 (b) Rs.35,000 (c)Rs.40,000 (d)Rs.25,000

11
 Suspense A/c appears in the Trial Balance because of:
(a) One sided errors (b) Compensating errors
(c) Errors of principle (d)None of these
OR
If X has been debited by Rs. 50 instead of Rs. 500and Y has been debited by
Rs. 500 instead of Rs. 50, it will be called :
(a) One sided errors (b) Compensating errors
(c) Errors of principle (d)None of these

Purchase of Office Furniture of ₹1,200 has been debited to the General

Expenses Account. It is---------
(a) a clerical error (b) an error of principle
(c)an error of omission (d)compensating error

Meenakshi started a business on 1st April, 2023 with a capital of ₹50,000

and a loan of ₹25,000 taken from Sohan. During 2023-24, he had
introduced additional capital of ₹25,000 and had withdrawn ₹15,000 for
personal use. On 31st March, 2024 his assets were ₹1,50,000. Find
his capital as on 31st March, 2024 and profit made or loss incurred during
the year 2023-24.
Or
Prepare accounting equation from the following :
(i)Started business with cash Rs. 1,00,000 and stock Rs.20,000.
(ii)Sold 50% of the above goods at profit of Rs. 2,000 on credit to Ram .
(iii) Ram paid 90% of his amount in his full settlement .
Sold goods to Rahul & Bros within the state list price ₹2,50,000 at 20%
trade discount and 4% cash discount on sale price. Charged CGST and
SGST @6% each. 80% of the amount received by cheque immediately.
Pass journal entry.
Or
Enter the following transactions in the books of Ridhdhi Traders assuming
that all transactions have taken place within the stat of Jharkhand.
Assuming CGST @ 9% and SGST @9% (Entry of setting off is not
required to be done):
(i)Purchased goods for ₹5,00,000 from Astro Traders.
(ii)Sold goods to Pushkar [Link] ₹3,00,000.
(iii) Commission of ₹10,000 received in cash.
Explain the following accounting concepts with Example :
(a)Accounting period concept
(b)Revenue Recognition concept

State the differences between reserve and provision on the basis of following:

(i)Mode of creation (ii)Necessity (iii)Utilization for dividend

Enter the following transaction in the purchase return book of Ram govind Traders

12
,New Delhi assuming CGST 6% and SGST 6% -
2023
June 15 Returned goods to Krishna & sons for Rs. 20,000. Trade discount 10%
June 20 Returned goods to Garima , New Delhi for Rs. 25,[Link] the
goods were not according to sample.

From the following particulars, prepare Bank Reconciliation Statement

as on Dec. 31, 2023

(a) Debit balance as per Cash Book ₹10,000.

(b) A cheque for ₹500 issued in favour of Karan has not been
presented for payment.
(c) A bill for ₹700 retired by bank on our behalf under a rebate of ₹20,
the full amount of the bill was credited in Cash Book.
(d) A cheque for ₹295 deposited in bank has been dishonoured.
(e) A sum of ₹800 deposited in the bank has been credited as ₹80 in
the Pass Book.

Trial Balance of a firm did not match and difference was placed in
Suspense Account. The following errors were subsequently
identified:
(a). Sales Book was overcast by ₹2000
(b). Goods sold to Prakash for ₹550 was posted as ₹5,500.
(c). Purchases Book was overcast by ₹850.
(d). cash sale Rs. 2,000 were posted to commission account as Rs. 200
You are required to pass the Journal entries for rectification of the above
errors.

Prepare a Double Column Cash Book with Cash and Bank Columns from
following information
2024
Sep 1 Cash in Hand ₹ 3,151
Bank balance ₹ 91,401
Sep 2 received a cheque and paid into bank Rs.990
Sep 5 bought goods Rs. 50,000 trade discount 20% payment made by cheque
(CGST 6% and SGST 6%)
Sep 15 paid trade expenses Rs. 120
Sep 16 paid rent Rs. 400
Sep 25 sold goods Rs. 80,000 trade discount 10% (CGST 6% and SGST 6% )
received a cheque for the same and deposited in the bank.
On 1st June, 2020, S Ltd. purchased a plant for ₹9,00,000. On 1st December
2022a part of the plant purchased 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.

13
 OR
On 1st January, 2015, the Jaya Transport Company purchased a Truck for
₹4,00,000. On 1st July, 2016, this truck was involved in an accident and was
completely destroyed and ₹3,00,000 were received from the Insurance
Company in full settlement. On the same date another truck was purchased
by the Co. for ₹5,00,000. The Company writes off 20% depreciation p.a. on
Written Down Value Method and the accounts are closed on 31st March every
year. Give the Truck Account for 3 years.
PART B-FINANCIAL ACCOUNTING-II
Identify the correct formulae used to ascertain the closing balance of capital.
(a)Opening Capital +Net income-Drawing-Assets = Closing Capital
(b)Closing Capital =Opening Capital +Net Loss –Drawing
(c )Closing Capital =Opening Capital +Assets+ income-Expenses
(d) Closing Capital =Opening Capital +net income-Drawing
Income Tax paid by a sole trader is reflected in his
financial statements:
(a) On the debit side of the Trading a/c
(b) On the debit side of Profit and Loss a/c
(c) As an asset in the Balance Sheet
(d) As way of deduction from Capital in the Balance sheet.
Or
The financial statements consist of:
(i) Trial balance
(ii) Profit and loss account
(iii) Balance sheet
(iv) (i) & (iii)
(v) (ii) & (iii)
If Closing Stock appears in the Trial Balance then it will be
appearing in:
(a) Trading a/c
(b) Balance Sheet
(c) Profit and Loss a/c
(d) Trading a/c and Balance Sheet.
Or
Choose the correct chronological order of ascertainment of the
following profits from the profit and loss account:
(i) Operating Profit, Net Profit, Gross Profit
(ii) Operating Profit, Gross Profit, Net Profit
(iii) Gross Profit, Operating Profit, Net Profit
(iv) Gross Profit, Net Profit, Operating Profit
If Opening Capital =Rs1000 and closing capital =[Link] no
drawing during the accounting period, calculate the net income or loss for the
period.
(a)Rs.1,000 net income
(b)Rs. 1,000 net loss
(c )Rs. 2,000 net income
(d)Rs. 2,000 net loss

14
State with reason whether following expenditure are Capital, Revenue or
Deferred revenue:
(i)Replacement of old machinery for a new machinery .
(ii) 1,500 were spent on repair of machinery.
(iii) Rs.10,000 was paid as brokerage charges on issue of share .

From the following information , calculate capital at beginning

Capital at the end of the year Rs.4,00,000
Withdrew Rs.5,000 Per month
Sold his personal investment Rs. 80,000at a profit of 25%and introduced in
the business .
Profit of the current Year Rs.80,000

The following are the extracts from the trial balance of M/s Bhola & Sons as
on March 31, 2024:
Opening stock 2,00,000
Purchases 8,10,000
Sales 10,10,000
Closing Stock as on date was valued at ₹ 3,00,000.
You are required to record the necessary journal entries and show how the
above items will appear in the trading and profit and loss account and balance
sheet of M/s Bhola & Sons.
OR
Calculate closing stock and cost of goods sold from the following :
Particular Particular
Opening stock 38,000 Sales 3,60,000
Purchases 3,40,000 Return inward 5,000
Return outward 4,000 Gross loss 20,000
Freight inward 26,000
Mohan Lal keeps incomplete records of his business. From the following
particulars to determine the profit/loss made by his business during the
Accounting Period.
Particulars 1-4-2023 31-03-2024
Cash in Hand 4,500 3,500
Bank Balance 8,500 7,500
Furniture 12,000 10,800
Stock 21,800 23,000
Creditors 24,000 25,400
Debtors 23,600 24,800
Addl information:-
During the year, he withdrew Rs.500 per month for household needs and
withdrew goods worth Rs.3,000 for domestic purpose. During the year, he sold
his motorbike for Rs.10,000 and introduced Rs.8,000 into the business.
Compute his Profit or Loss during the year.
Given below is the Trial Balance of [Link] Chand on 31st March 2023.
You are required to prepare Trading and Profit and Loss account

15
 for the year ended 31st March 2023 and Balance sheet as at that
date using the following adjustments:

Debit Balances Rs. Credit Balances Rs.

Opening Stock 45,000 Sundry Creditors 22,100
Purchases 1,20,000 Return Outwards 2,500
Return Inwards 3,200 Sales 3,50,000
Carriage Inwards 2,400 Capital 2,00,000
Carriage Outwards 1,500 Loan from Bank 24,000
Office Furniture 8,000 Discount Received 2,000
Sundry Debtors 68,000 Commission 1,600
Dock Charges 5,000
Electric Charges 10,000
Fuel, Gas and Water 12,000
Bad debts 1,100
Advertisement 25,000
Salary 36,000
Cash in hand 8,100
Cash at bank 30,000
Motor vehicles 58,000
Repairs 3,000
Interest on Bank Loan 2,400
Rent 24,500
Business Premises 1,06,000
Drawings 33,000

6,02,200 6,02,200
Adjustments:
a) Stock at the End is Rs. 75,000
b) Outstanding Wages is Rs. 500
c) Depreciation on Motor vehicles is 10% P.a.
d) Bad debts is Rs. 2000 and provision for bad debts is 5% on
sundry debtors.

OR

From the following balances prepare Trading and Profit and Loss Account and
Balance Sheet as on 31st March 2024.

Particulars Rs. Particulars Rs.

Capital 60,000 Sales tax paid 7,000
Stock (as on 1-4-2023) 16,000 LifeInsurance Premium 2,800
Purchases 85,000 Plant & M/C 20,000
Return Inward 3,000 Rebates 600
Sales 1,23,000 Rent 11,000
Return Outward 1,000 Repairs 2,000

16
 Sundry Debtors 16,000 Lighting 2,500
Furniture 10,000 Salaries 13,500
Computer 20,000 Bank 6000
Freight and Duty 3,000 Carriage Inward 2,800
Loan from Bank @ 10 20,000 Carriage outward 2,000
% p.a
Interest on Loan 1,000 Trade expenses 1,600
Sales tax Collected 10,000 Bills payable 8,000
Wages 8,000 Sundry creditors 11,800

Adjustments:-
1. Stock on 31st March,2017 was valued at Rs.26,000 .
2. Goods worth Rs.2000 were distributed as free samples. Goods worth
Rs.2500 were used for personal purpose by proprietor and goods worth
Rs.700 were given away as charity.
3. Charge depreciation on Computer and Furniture @ 10%.
4. Rent for March 2017 is still outstanding.

Q1 Which of the following is not a current asset? 1

(a)Accrued Commission (b)Prepaid Expenses
(c) Computer (d)Debtors
OR
Accounting standard are needed
a. To bring uniformity in the financial statements of different enterprises
b. Tolimitthe area within whichaccountant hasto function
c. To bringclarityin accounting terminology
d. All of the above
Q2 Fill in the missing figures assuming CGST @6% and SGST @ 1
6%: -
April 10 Purchases A/c Dr 1,40,000
Dr 16,800
To Barsha 1,56,800
(Purchase of goods from outside the state)
a. Input CGST (b) Input SGST
b. Input IGST (d) Debtors
Q3 Manipulation of accounts to show a better position then what actually is, known as 1

(a) Reliability (b) Relevance

(c) Comparability (d)Window dressing
OR

17
 Payment made to creditors by cheque results in
a. Increase in current Liabilities and Decrease in current assets
b. Increase in current assets and decrease in current liabilities
c. Decrease in current liabilities and decrease in current assets
d. None of these

Q4 Which qualitative characteristics of accounting information is reflected when accounting 1

information is clearly presented?
(a) Reliability (b) Understandability
(c) Comparability (d) Relevance OR
Which of the following is not a characteristic of accounting?
(a) Recording non-monetary transaction (b) Classifying
(c) Analysis (d) Summarizing

Q5 1
Match the following
(a) Purchased goods from X on (i) Return Inwards Book
credit
(b) Purchased goods from Y for (ii) Return Outwards
cash Book
(c) Returned goods to Y (iii) Purchase Book

(d) Goods returned by Z (iv) Cash Book

A. a-(i), b-(iii), c-(ii), d (iv.)

B. a-(iii), b-(i), c-(iv), d (ii.)
C. a-(iv), b-(iii), c-(i),d (ii.)
D. a-(iii), b-(iv), c-(ii), d (i.)
Q6
Which of the following is not recorded in the books of 1
account: (a.) Purchase of goods for
resale amounted to Rs. 15,000 (b.) Paid
Salary and Wages amounted to Rs. 20,000
(c.) Paid Rent for office premises Rs.

18
 5,000 (d.) Sale of household
furniture for Rs. 7,000

Q7 Which type of Ledger Accounts is not carried forward to next year? 1

(a) Personal Accounts (b) Real Accounts
(c) Nominal Accounts (d) All of these
Q8
Which of the following is not correct for 1
Depreciation? (a.) It is a decline in the value
of a fixed asset
(b.)It is a non-cash expense
(c.) It decreases only the book value of the asset, not the market
value (d.) It is also known as Depletion
Q9 Passbook is a copy of: 1
(a) Bank transactions in the cash book (b) Receipts and Payments of the Business
(c) Customer’s account prepared by the bank (d) All cash and Bank transactions

Q1 A company purchased a plant for Rs.50,000. The useful life of the plant is 10 years and 1
0 the residual value is Rs.10,000. Find out the rate of depreciation under straight line
method.
(a) 8% (b 7%
(c) 6% (d) 5%
OR
Which of the following statements is not appropriate in relation to ‘Provision?
a. Provision is a charge against profit
b. Provision is created for known Liability
c. Provision is created to strengthen the financial position of the business
d. Creation of Provision satisfies the principle of conservatism

19
Q1 The Written Down Value. of an asset after 3 years of depreciation on reducing balance 1
1 method @10% p.a. is Rs. 58,320. What was its original cost?
(a) 70,000 (b) 80,000
(c) 80,500 (d) 70,500
OR
A machine is purchased for Rs.80,000 and its installation charges are Rs.10,000. If its
scrap value is Rs.6,000 and effective life is 10 years ,its yearly depreciation as per fixed
installment method will be
(a) Rs.8,600 (b) Rs. 9,600
(c) Rs.8,400 (d) Rs.9,000

Q1 Credit Balance as per passbook means 1

2
(a) Favorable balance (b) Unfavorable balance
(c) Either Favorable or Unfavorable balance (d) None of the above
Q1Suspense Account 1
3 have:
(a.)
Debit
Balance
(b.) Credit Balance
(c.) Debit or Credit
Balance
(d.) None of these
Q1 1
Match the following: -
4
(a.) Compensating (i.) Goods purchased from Mohit on credit Rs. 500 are recorded in
Error Purchase Book as Rs. 5,000.
(b.)Error of (ii.) A repair of Machinery Rs. 1,000 debited to Machinery Account.
Omission
(c.) Error of (iii.) Ram’s Account was debited with Rs. 100 instead of Rs. 1,000 while
Principle Mohan’s Account was debited with Rs. 1,000 instead of Rs. 100.

(d.)Error of (iv.) Credit purchase from Rajesh Rs. 4,000 were not recorded
Commission
(A.) a-(i), b-(iii), c-(ii), d (iv.)
(B.) a-(ii), b-(iii), c-(i), d (iv.)
(C.) a-(iii), b-(iv), c-(ii), d (i.)
(D.) a-(iv), b-(iii), c-(ii), d (i.)

Q1 Credit means 1
5
a. An increase in asset (b) An increase in liability
(c). A decrease in liability (d) A decrease in proprietors’ equity

20
 Q1 After closing of the accounts ,one sided error is rectified through: 1
6
(a) Drawings A/c (b) Capital A/c
(c) Suspense A/c (d) Profit & Loss A/c
Q1 Differentiate between Reserves and Provision on the basis of: 3
7
1. Meaning,
2. Necessity
3. Mode of Creation.
Q1 3
From the following statements identify the Accounting Concept:-
8 (a.) Mishra Steel Limited purchased ball-point pens of Rs. 500. These were issued to the
employees and were still in use at the end of the year were not shown it as an asset in its financial
statement.

(b.)Kamal Foods Limited charges 10% p.a. depreciation on fixed assets as per one particular
method years after year.

(c.) The entry of a new competitive firm, strike of workers and quarrel between Production
Manager and Sales Manager are not recorded in the books of accounts
Q1 Explain any three qualitative characteristics of Accounting Information. 3
9

Q2 What do you mean by Accounting Standard? Explain briefly. 3

0

Q2 Journalize in the books of 4

1 Malaika April 2019
2 Sold goods costing Rs.10,000 to Anita for cash at a profit of 20% on
cost,less10% Trade discount.
12 Salary payable to Mr. Raghu Rs.20,000
22 Goods costing Rs 500 given as charity
30 Rs.8,000 due from Ramesh is not recoverable
Q2 From the following particulars ,you are required to ascertain the bank balance as would 6
2 appear in the cash book of Mr. Roshan as on 31 March 2023:st

[Link] bank pass book showed an overdraft of Rs.16,500 on 31 March 2023. st

[Link] of Rs.1,250 on overdraft upto 31 March, 2023 has been debited in the bank pass
st

book but it has not been entered in the cash book.

[Link] charges debited in the bank passbook amounted to Rs.35.
[Link] issued prior to 31 March 2023 amounted to Rs.11,500 but not presented till the
st

date.
[Link] of Rs.2,500 paid into bank before31 March2023 but not credited up to that date.
st

[Link] on Investment collected by the bankers and credited in the Bank PassBook
amounted to Rs.1,800.

21
Q2 Prepare Accounting Equation: 6
3
[Link] Business with cash Rs.50,000 and goods Rs. 30,000.
[Link] paid Rs 10,000
[Link] outstanding Rs.2,000
[Link] costing Rs12,000 sold at 20 % profit.
[Link] paid in advance Rs.7,000.
[Link] Furniture on Credit 5,000.
OR
Prepare Cash book with Bank Column of Garima, Delhi from the following transactions:
2021
April 1 Cash in Hand
2,20,000
Cash at Bank(Overdraft) 60,000
April 3 Deposited into bank 80,000
April 4 Purchased goods on Credit Rs.40,000 and by chequeRs.14,000.
April 9 Withdrew from bank for personal use 2,500
April 10 Salaries paid 40,000
April 30 Bank charged interest on overdraft 500
Q2 On 1 April 2017,Chandani Ltd. purchased a machine for Rs.2,40,000 and spent
st
6
4 Rs.10,000 on its erection .On 1 October,2017,an additional machinery costing
st

Rs.1,00,000 was purchased. On 1 October, 2019, the machine purchased on 1 April,

st st

2017 was sold for Rs.1,43,000 and on the same date, a new machine was purchased at a
cost of Rs.2,00,000.
Show the machinery account for the first three financial years after charging
depreciation at 5% [Link] straight line method.
OR
A firm purchased on 1 April 2015 certain machinery for Rs.58,200 and spent Rs.1,800
st

on its erection. On 1 October 2015 additional machine costing Rs.20,000 was

st

purchased. On 1 October2017,the machinery purchased on 1 April 2015 having

st st

become obsolete was sold for Rs.28,600 and on the same date new machinery was
purchased for Rs.40,000. Prepare Machinery account for three years by providing
depreciation @10% [Link] written down
Value method on 31 March every year.
st

Q2 Trial Balance of Ashok Enterprises did not agree and the following errors were 6
5 [Link] the following errors:
i.A sale of Rs.172 was posted to sales a/c as Rs.217
[Link] Purchased worth Rs.2,000 was recorded through purchase account.
iii.A sum of Rs.200 for household rent has been posted twice to the rent A/C.
iv.A credit sale of goods Rs.1,200 to Ramesh has been wrongly passed through the
Purchases book.
v.A cheque for Rs.1,000 received from Manmohan was dishonoured and had been posted

22
 to the debit of the Sales Return Account.
[Link] Account has been totaled short by Rs.200.

PART-B

Q2 Cost of Goods sold Rs.2,70,000 and Gross Loss Rs.70,[Link] Sales will be 1
6 a) 2,00,000 b) 3,40,000
c) 70,000 d) 2,70,000
OR
Value of Closing Stock is shown at:
a) Cost Price b) Market Price
c) Cost and Market Price whichever is less d) None of these
Q2 Trade expense are shown in: 1
7 a) Balance Sheet b) Trading Account c) Profit & Loss Account d) None of
these
OR
Wages and Salaries are shown in
a) Trading Account b) Profit & Loss Account c) Balance Sheet d) None of
these
Q2 1
When closing capital is less than opening , it denotes :
8
a. Profit (b) Loss (c) Loss, if there is no drawing (d) None of the above
Q2 1
If Capital at the end of the year is Rs. 40,000 ; Capital introduced during the year Rs.
9
30,000 drawings for the year Rs. 20,000 and loss for the year is Rs. 60,000 , then capital
at the beginning of the year was ;
a. Rs. 90,000 (b) Rs.80,000 (c) Rs. 70,000 (d) Rs. 10,000

Q3 Calculate the amount of Operating profit on the basis of the following balances 3
0 extracted from the books of M.s Rohit and Sons for the year ended March 31,2017
Particulars Rs. Particulars Rs. Opening Stock
50,000 Net Sales 11,00,000 Net Purchases 6,00,000
Loss due to fire 20,000
Direct Expenses 60,000 Closing Stock 70,000
Administration Expenses 45,000 Selling
and Distribution Expenses 65,000
Q3 Calculate Closing Stock from the following: 3
1

Particulars Rs. Particulars Rs.

Opening Stock 38,000 Sales 3,60,000

23
 Purchases 3,40,000 Return Inwards Gross 5,000
Return Outwards Freight Loss
4,000 20,000
Inwards
26,000
OR
Calculate Gross profit when:
TotalPurchasesduringtheyearareRs.8,00,000
Return outward Rs.20,000
DirectExpensesRs.60,000
2/3 of the goods are sold for Rs.6,10,000

Q3 From the following information, prepare Trading Account for the year ended 4
2 31 March,2021 Opening Stock-Rs.1,00,000;
st
Wages-Rs.2,000;
Purchases-Rs.2,80,000; Freight Inwards-Rs. 3,600;
Closing Stock- Rs.80,000; Carriage inwards- Rs.1,000; Gross Profit on Sales is
20%.
OR

Show the effect for given adjustment on Profit and Loss Account and Balance Sheet.
The following balances appear in the Trial Balance:
Sundry Debtors 32,000
Bad Debts 2,000
Provision for Doubtful Debt 3,500
Additional Information:
Write off further bad debts ₹ 1,000
Create a provision for doubtful debts @5%on debtors.
Q3 4
3 Amit started business on 1 April 2019 with a Capital of Rs.8,50,[Link] 31 March
st st

2020,his Assets were Rs. 11,0,000 and Liabilities were Rs. 1,80,[Link] withdrew
during the year for personal use Rs. 3,000 per month up to 31 July 2018 and there-after
st

Rs. 6,000 per month up to 31 March 2020. During the year he sold his personal
st

investments of Rs. 60,000 at a loss of 10% and invested this amount in the business.

You are required to prepare a Statement of Profit or Loss for the year ending
31 March2020
st

Q.3 6
4 Following balances were extracted from the books of Vijay on 31 March, 2021
st

Particulars Amount Particulars Amount

Drawings 20,000 Capital 2,45,000
General Expense 47,400 Creditors 25,000
Building 1,10,000 Loan 78,800
Insurance 13,150 Sales 6,53,600
Wages 72,000 Provision of Doubtful Debts 9,000
Debtors 62,800 Bills payable 38,500

24
 Machinery 93,400 Bank overdraft 33,000
Bad Debts 5,500 Commission 13,200
Stockon1 April, 2020 1,62,000
st

Motor Car 20,000

Purchases 4,70,000
Car expenses 18,000
Cash 800
Charity 1,050
Total 1096100 Total 1096100

PrepareTradingandProfitandLossAccountfortheyearended31stMarch,2021and Balance
Sheet as at that date after giving effect to the following adjustments:
a. Stock as on 31stMarch, 2021was valued at Rs.2,30,000.
b. Write off further Rs.1,800 as bad debts and maintain the provision for Doubtful
Debts at5%.
c. Depreciate Machinery at 10%.
d. ProvideRs.7,000 as outstanding interest on loan.

SAMPLE PAPER 4

Q. Questions Marks
No.

1 Which qualitative characteristics of accounting information are reflected 1

when accounting information is clearly
presented? (a) Comparability
b. Understandability
c. Relevance
d. Reliability

2 Which base of accounting is recognised as per INDIAN company Act 1

2013?
a. Cash basis
b. Accrual basis
c. Both
d. None of the above

25
 3 Assertion (A): Accounting process starts with recording of financial 1
transactions into journal.
Reason (R) All the recorded transactions are classified into various
ledger accounts. “
a. Both A and R are correct
b. A is correct, but R is incorrect.
c. A is Incorrect and R is correct.
d. Both A and R are incorrect.

4 A concept that a business enterprise will not be sold or liquidated in near 1

future is known as
a. Going concern
b. Economic entity
c. Consistency concept
d. Monetary Unit
Or
………….principle says that anticipate no profit but provide for all
possible losses.
a. Dual aspect
b. Money Measurement
c. Prudence
d. Cost principle

5 IFRS are based on 1

a. Historical cost
b. Fair value
c. Both (a) and (b )
d. None

6 Liabilities and assets amount to Rs. 50,000 and Rs. 98,000 respectively. 1
The difference Amount shall represent _______.
a. Creditors
b. Debentures
c. Profit
d. Capital

or

Which of the following is not correct?

a. Assets=Capital +Liabilities

26
 b. Assets -Liabilities =Capital

c. Assets +Liabilities =Capital

d. None of the above

7 Voucher is prepared from : 1

a. Journal entry
b. Ledger accounts
c. Source documents
d. All of these.
8 Credit purchase of Machinery costing Rs. 50,000 will be recorded in 1
a. Purchase Book
b. Sales Book
c. Journal Proper
d. Cash Book
Or
Goods withdrawn by proprietor for personal use will be credited to which
account?
a. Sales Account
b. Purchase Account
c. Drawing Account
d. Capital

9 Read the case carefully and answer the question No 9 and question no. 10 1
Rahim started a business on 1 April 2022 with cash Rs.10000 and stock
st

5000 and furniture 5000. On next day, He also took a loan from his father
Rs.10,000. He purchased goods on credit from Harish for Rs 6000 and sold
half of it to Suresh @ 30 % profit.
What is the amount of capital of Mr. Rahim?

10 In case given in question no. 9, Who is creditor and who is debtor here and 1
also tell the amount.

27
11 Goods sold List price Rs. 50,000 @20% trade discount and @5% cash 1
discount , and received cheque, by what amount bank account would be
debited:
A. 40,000
B. 38000
C. 2000
D. 44000

12 Credit balance of the bank account in the cash book shows ______. 1
a. Overdraft
b. Cash deposited into our bank
c. Cash is withdrawn from the bank
d. None of the above
Or
When a business maintains a cash book, it doesn’t need to maintain ___.
a. Journal proper
b. Purchases book
c. Sales book
d. Bank and cash account in the ledger

13 Which Books will show credit balances? 1

a. Sales Book and purchase return
b. Sales book and Sales Return
c. Purchase book and purchase return
d. Purchase Book and sales return

28
14 Debit balance as per Cash Book Rs.3000. On comparing it with bank 1
statements it was found that one debtors directly deposited Rs. 2000 in the
bank account and bank charges Rs.100. What will be the balance as per pass
book?
A. 4000 Dr
B. 4900 Dr
C. 4900 Cr
D. 5000 Dr
Or
Credit balances as per pass book Rs. 10,000. When compared cash
book with pass book it was found that two Cheques amounting to
Rs.5000 were deposited but not collected and bank allowed internet
Rs.100. The balance as per Cash book will be
A. 14,900 Dr.
B. 14900 Cr
C. 15100 Dr
D. 15100 cr

15 Following are the causes of depreciation except 1

a) Wear and tear due to use or passage of time.
b. Obsolescence
c. Normal factors
d. Expiration of legal rights

16 Window dressing is a/an………. Of Accounting. 1

a. Limitation
b. Advantage
c. None of the above
d. Both

17 Sales of goods to Amir Rs. 5000 has wrongly been debited to Umair 1
account. Identify the type of error…

a. Principle
b. Omission
c. Commission
d. Compensating
Or
Trial Balance is ………..
a. An account
b. A statement
c. A subsidiary book

29
 d. A principal book

18 Rs. 2000 paid as wages to labour for installation of a new machinery is 1

A. Capital expenditure
B. Revenue expenditures
C. Deferred revenue expenditures
D. Direct expenditure.

19 If net profit is 50,000, Indirect expenses Rs.10,000 and other income is 1

Rs.8000 . Calculate Gross profit.
a. 48,000
b. 52000
c. 55000
d. 60,000

20 Capital expenditure are recorded in ….. 1

a. Trading account
b. Profit and loss account
c. Balance sheet
d. Cash Book
Or
If goods are sold @25% profit on sales and cost of goods sold is Rs.
210000. What will be the sales?
a. 262500
b. 52500
c. 270000
d. 280000
21 Write the meaning and two objectives of financial statement. 3
Or
Give difference between Capital and Revenue expenditures.
22 Show how the following information will be treated in financial statement 3

Particular Dr. Amount Cr. Amount

Debtors 1,00,000

30
 Bad debts 6000
Provision for doubt full debts 5000
Additional information:
[Link] bad debts Rs.6,000
[Link] a provision for doubtful debts @5%
Or
From the following information calculate cost of goods sold.
Sales Rs. 20,00,000
Purchases 15,00,000
Wages Rs. 1,00,000
Stock (1.4.22) 3,00000
Stock(31.3.23) 4,00000
Freight inward 1,00000
Freight outwards Rs. 1,00000
23 Mr. Pradeep started a business on 1 April 2022 with a capital of Rs.4,50,000
st 3
His position on 31 March 2023 was as follows
st

Cash 99,000
Bills receivable 75,000
Land and buildings 1,80,000
Plant and machinery 98,000
He owed Rs.45000 from his friend Rajeev. His drawings were Rs.96000
During the year. Calculate net profit earned by Mr. Pradeep.
24 Give journal entries for following: (Any 3) 3
a. Paid Rent Rs.15000 out of which prepaid is Rs.3000
b. Good purchased costing Rs. 40,000 @6%CGST and 6% SGST from
Ram Brothers
c. Paid insurance of godown Rs.2000 and for life insurance of self
Rs.3000.
d. Depreciation @10% charged on machinery of Rs.100000
25 Explain any three source documents. 3
1. Debit Note
2. Pay in slip
3. Invoice
4. Voucher

26 Give difference between Reserves and Provisions. ( Any 3) 3

31
27 Briefly explain any TWO of following accounting principles 4
A. Cost principle
B. Entity principle
C. Full Disclosure
28 Develop accounting equation from following information 4
A. Started business with cash Rs. 1,00,00 and furniture of Rs. 50,000
B. Purchased goods from RajaRam for Rs 20,000 for cash and 10000 for
credit.
C. Sold goods costing 10,000 at a profit of 20 % for cash
D. Rent paid Rs 2000 and unpaid is 3000

29 Prepare a sales book in the books of M/S Kailash 4

2023
July 1 –Sold to Mr Manoj, Kanpur 100
Tables @ Rs 3,000 each.
50 Chairs @ Rs 2,000 each
Trade discount @ 10 %
July5- Sold to Mr Kamal, Kanpur in cash
55 Chairs @ Rs 2,000 each July8- Sold
to Mohit, Jaipur 10
Almirah @ Rs 20,000 each.

5 Racks @ Rs 12,000 each

Trade discount @ 10 %
10 July- Sold Computer to Sunil Rs.5000
Or

Enter the following transactions in the Purchases Book of Shubham;

2023 March 1 Bought from M/s Gungun & Sons @ 10% Trade discount.
400 Shirts @ Rs. 150 per shirt;
100 T-shirts @ Rs. 250 per T-shirt
March 8 Bought from Rishi Brothers
1 Computer desktop costing Rs. 14,000
March 10. Bought from Lokesh @ 20% Trade discount.

32
 120 Shirts @ Rs. 300 per Shirt;
150 T-shirts @ Rs. 350 per T-shirt
March 20 Rathi Brothers sold to us
150 Shirts @ Rs. 100 per shirt;

120 T-shirts @ Rs. 150 per T-shirt

March 25 Bought for cash from Heena Traders @ 10% trade
discount.
250 Shirts @ Rs. 400 per Shirts;

30 Prepare double column cash book from the following transactions for the 4
month of August 2023.
1. cash in hand Rs.17,500 and cash at bank 5000
03 Purchased goods for cash Rs.3000
2. Received a cheque from Rajiv Rs.10,000
3. Sold good for cash Rs7000
4. Rajiv ‘s cheque was deposited into bank
5. Purchased goods and paid by cheque Rs. 20,000
6. Paid establishment expenses by cheque Rs.1000

17. Cash sales Rs.7000

18. Deposited into bank Rs.10000
19. Paid trade expenses Rs.500 cash
20. Received commission by cheque Rs, 6000
31. Withdrew for personal use Rs.1200

31 From the following particulars prepare Bank Reconciliation Statement as on 6

December 31st 2024:-
(a) Debit balance as per cash book Rs.10,000
(b) A cheque of Rs.500 issued in favour of Karan has not been presented
for payment.
(c) A bill for Rs.700 retired by Bank on our behalf under a rebate of Rs.20
the full amount of the bill was credited in cash book.

(d) A cheque of Rs.295 deposited in Bank has been dishonoured.

(e) A sum of Rs.800 deposited in the Bank has been credited as Rs.80 in

33
 the pass book.
(f) Payment side of Cash Book has been under cast by Rs.200.
32 Pass the necessary rectification entries. 6
1. Sales of Rs.10,000 to Anil was passed through the purchase book.
2. Wages paid installation of machines Rs.1000 was debited to wages
account.
3. Depreciation Rs.10000 was omitted to be posted to Depreciation
Account.
4. Purchase of goods Rs.10,000 for cash was posted as Rs.1000
5. Return inward book was overcast by Rs.1000
6. Cash received from Asha Rs.2060 were posted to Usha’s account
2600

33 A firm purchased a machinery on 1st April 2020 for Rs.5,82,000 and spent 6
Rs.18,000 on its installation. On 1st October 2020, additional machinery
costing Rs.2,00,000 was purchased. On 1st October 2022, the machinery
purchased on 1st April 2020 was auctioned for Rs.2,86,000 and new
machinery for Rs.4,00,000 was purchased on the same date.
Depreciation was provided on 31st March at the rate of 10% p.a. by the
Written Down Value Method.
Prepare the Machinery Account for the three years ended 31st March and give
working note clearly.
or
Prepare Machinery Account and provision for Depreciation from the following
information as on 1 April 2023
st

Machinery as on 1 April 2023 Rs. 800000

st

Balance in Provision for Depreciation Account Rs.3,18,000

On 1.4.2023 a machinery which was purchased on 1.4.2019 for Rs. 1,20,000
was found obsolete therefore sold for Rs. 34,500.
Depreciation is charged @10% on straight line method.

34
34 From the following trial balance of M/S Rajiv n sons as on 31 March 2022
st 6
prepare Trading and profit and loss account and Balance Sheet

Heads of account Dr Cr

Capital 80000

Drawings 18000

Sales and purchase 82600 155000

Stock 1.4.21 42000

Returns outwards 1600

Carriage inward 1200

Wages 4000

Power 6000

Machinery 50000

Furniture 14000

Rent 22000

Salary 15000

Insurance 3600

Bank Loan 25000

Debtors and creditors 20600 18900

Cash 1500

TOTAL 280500 280500

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ADJUSTMENTS
1. Closing stock on 31.3.2022 was Rs 64000
2. Outstanding wages Rs 2400
3. Bad debts Rs. 600 and creat a provision for doubtful debts @5%
4. Charge depreciation on machinery @10% and furniture @5% pa.
5. Insurances premium is paid per annum, ended 31 May 2022.
st

Or
Prepare Trading and profit and loss account and Balance Sheet
from following information as on 31.3.2022

Debit balances Amount Credit balances Amount

Opening stock 125000 Sales 2,50,000
Purchase 35000 Purchase return 6000
Sales Return 25000 Creditor 55000
Postage 600 Capital 50000
Wages 3000 Discount 1000
Salary 13300 Provision for doubtful debts 4500
Packing and transport 500 Commission 5400
General expenses 400
Insurance 4000
Debtors 50,000
Cash 20000
Closing stock 40,000
Machinery 20000
Lighting 5000
Discount 3500
Bad Debt 3500
Investment 23100
TOTAL 371900 371900

Adjustments
1. Depreciation on machinery @5%
2. Bad debts 2000 and creat provisions for doubtful debts @10% and provisions for
discount on debtors @5%
3. Wages is prepaid Rs.1000
4. Interest on investment @5%pa.

36