Q.1 A business receives its bank statement showing the closing balance as Rs.8,500 overdrawn.
It is found that there
were unpresented cheques of Rs.2,000 and uncredited deposits of Rs.1,500. Overdraft as per Cash Book is
a) Rs.5,000 b) Rs.8,000 c) Rs.9,000 d) Rs.12,000
Q.2 Which of the following accounts will be credited on giving cash donation?
(a) Cash A/c. (b) Donation A/c. (c) Purchases A/c. (d) Discount Received A/c.
Q.3 Goodwill account is a
(a) Personal Account (b) Real Account. . (c) Nominal Account. (d) None of these.
Q.4 The term amortisation is used to write off
(a) Fixed Assets. (b) Intangible Assets. (c) Tangible Assets. (d) Wasting Assets.
Q.5 A person who owes money to a firm for goods sold on credit is called a
(a) creditor. (b) debtor. (c) Both (a) and (b) (d) None of these.
Q.6 On inter-state sale of goods, which of the following account is credited?
(a) Output CGST A/c (b) Output IGST A/c (c) Input IGST A/c (d) Output SGST A/c
Q.7 Transactions are posted into Ledger Account from
(a) Vouchers. (b) Journal book. (c) Bank Statement. (d) None of these.
Q.8 Sale of business asset on credit is recorded in
(a) Sales Book. (b) Journal Proper. (c) Special Journal. (d) Cash Book.
Q.9 Contra entries on the debt side of the Cash Book are posted to
(a) Debit of Bank Account in the Ledger. (b) Debit of Cash Account in the Ledger.
(c) Credit of Cash Account in the Ledger. (d) Not posted in the Ledger.
Q.10 Bank Reconciliation Statement is prepared
(a) at the end of each week. (b) at the end of each month.
(c) at the end of the accounting year. (d) whenever a bank statement is receive
Q.11 A concept that a business enterprise will not be sold or liquidated in the near future is known as
(a) Going Concern. (b) Economic Entity. (c) Monetary Unit. (d) None of these.
Q.12 According to the Money Measurement Concept
(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 the above.
Q.13 Under the Accrual Basis of Accounting, expenses are recorded
(a) on payment. (b) on being incurred. (c) either (a) or (b). (d) None of these.
Q.14 One of the Accounting concept for providing depreciation is
(a) Historical Cost Concept. (b) Going Concern Concept.
(c) Consistency Concept. (d) Accrual Concept.
Q.15 Drawings Account is a
(a) Personal Account. (b) Real Account. (c) Nominal Account. (d) None of these.
Q.16 Assertion (A)
Depreciation is fall in the value of a Fixed Tangible Asset because of usage, passage of time and accident etc.
Reason (R)
Depreciation can be charged on all fixed assets whether they are tangible or intangible.
Choose the correct option:
(a) Both Assertion and Reason are correct and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not the correct explanation of the Assertion
(c) Only Assertion is correct
[d] Only Reason is correct
Q.17 Record the following transactions of M/s. Omnath & Sons, Mumbai in their Sales Book: [3]
2023
May 4 Sold to M/s. Kumar & Sharma, Delhi:
300 shirts@400 each
200 trousers @ 600 each
Less: Trade Discount @ 10%
May13 Sold old furniture to M/s. Singh & Co., Delhi for Rs.18,000
May 16 Sold 500 shirts to M/s. Harish & Sons, Gujrat @ 400 each
Less : trade discount @ 15%
May 25 Sold to M/s. Saxena & Jain, Kolkata:
100 shirts@400 each
10 overcoats @ 1,000 each
Less: Trade Discount @ 10%
May 30 M/s Maheshwari & Sons purchased for cash from us
200 shirts @ Rs.150 each
Q.18 Following balances are in the books of M/s Naveen Brothers : [3]
Particulars
Date
2022 Machinery A/c 4,00,000
April 1 Provision for Depreciation A/c 1,60,000
On 1st April, 2022, a machine was sold for 1,00,000 which was purchased on 1st April, 2019 for 1,50,000.
Prepare Machinery Account and Provision for Depreciation Account on 31st March, 2023, if the firm has been charging
depreciation @10% p.a. on the Straight Line Method.
Q.19 Following balances exist in the books of Ashok, Delhi on 1st April, 2022:
Assets: Cash 50,000; Stock 30,000; Debtor-Ram 50,000; Machinery 60,000.
Liabilities: Creditor-Rajesh 30,000.
The following transactions took place in April, 2022:
2022
April 4 Sold goods for cash 7,000
April 6 Goods returned by Ram 1,000
April 10 Purchased goods from Rajesh of list price Rs.10,000 for 9,000
April 15 Bought goods of list price of Rs.15,000 from Rakesh less 10% trade discount and 5 % cash discount
and paid 40% of amount immediately
April 20 Paid to Rajesh in settlement of his account 38,600
April 25 Paid for the life insurance premium of the proprietor 500
April 30 Received commission 2,000
Prepare Ledger account of Ram and Rakesh.
Q.20 Following Trial Balance is drawn from the books of Saurabh & brothers : [3]
TRIAL BALANCE as on…………….
Debit Balances Rs. Credit Balances Rs.
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
If this trial balance is not correct , draw the correct one.
Q.21 Pass the Journal entries from the following transactions in the books of Sudhir & sons , delhi : [3]
a) Paid restaurant bill of refreshment for customers Rs.5,000 plus CGST and SGST @ 9% each in cash.
b) Paid Salaries to staff for the month Rs.45,000 by cheque. CGST and SGST @ 9% each.
c) Sold goods to Manish, Karnataka for Rs.1,00,000 less 10% Trade Discount plus IGST @ 18%. Received by
cheque immediately and allowed 2% cash discount.
d) Purchased goods from Jai , Assam of Rs.2,00,000 less 10% Trade Discount plus IGST @ 18%. Paid half the
amount by cheque immediately and availed 2% cash discount.
Q.22 Jouranlise the following transactions in the books of Harpreet Bros.: (any four)
(a) Rs.1,000 due from Rohit are now bad debts.
(b) Goods worth 2,000 were used by the proprietor.
(c) Charge depreciation @ 10% p.a for two month on machine costing Rs.30,000.
(d) Provide interest on capital of 1.50,000 at 6% p.a. for 9 months.
(e) Rahul become Insolvent, who owed is Rs.2,000 a final dividend of 60 paise in a rupee is received from his estate.
Q.23 Prepare Cash Book from the following transactions of Infosys technology. Mumbai for May 2023 :
Particulars amount
Date
2010
Rs
Jan 1 Cash in hand 4,000
Bank overdraft 7,300
Jan 4 Received Cheque from Hari 5,000
Discount allowed 200
Jan 6 Cheque of Hari deposited in bank
Jan 8 Paid Ram by Cheque 4,300
Discount received 200
Jan 9 Sold Goods to Mohan of list price Rs 5,000 less 10%
Trade discount and 2% cash discount
Jan 11 Hari’s Cheque dishonoured
Jan 13 Received cheque from Manoj 3,900
Discount allowed 100
Jan 15 Cheque received from Manoj is endorsed to creditor, Gopal
Jan 17 Bank Charges Rs 400, Bank Charged interest Rs 1,200.
Jan 21 Sold Goods against cheque and it was banked the same day 10,000
Jan 28 Paid Salary Rs 2,000 and rent Rs 1,600.
Jan 31 Deposited the entire balance of cash into bank after retaining Rs 1,000 in
the office.
Q.24 X ltd. purchased a machine on 1st April, 2018 for Rs 3, 00,000. On 1st October, 2019, it bought another machine
for Rs 2, 00,000. On 1st May, 2020, machine bought in 2018 was sold for Rs 1,60,000. Another machine was bought for
Rs 1, 50,000 on 1st July, 2020. It was decided to provide depreciation @ 10% p.a. on written down value method
assuming books are closed on 31st March each year. Prepare machinery A/c and Provision for Depreciation A/c for 3
years. [6]
Q.25 Prepare Bank Reconciliation Statement as on 31st March, 2023 from the following transactions:
(i) Balance as per Bank Pass Book (Dr.)Rs. 12,000 as on 31st March, 2023.
(ii) On 28th March, 2023 cheques had been issued for 70,000 of which cheques of Rs.50,000 only had been
debited up to 31st March, 2023.
(iii) Cheques of Rs.35,000 had been deposited into bank for collection but out of these cheques of Rs.3,000 had
been credited in the Bank Pass Book.
(iv) The bank had charged Rs.500 as interest on overdraft and the intimation of which was received on 2nd April,
2023.
(v) A cheque for Rs.200 has been debited in bank column of Cash Book by Aman, but it was not deposited in bank.
(vi) A cheque for Rs.900 was debited twice in the Cash Book.
(vii) A cheque of Rs.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.
Q.26 Rectify the following errors and prepare Suspense Account on the assumption that all the errors have been
identified and rectified:
(i) Rs.10,800 received from Mohan was posted to the debit of his account.
(ii) Rs.2,000 being purchase return was posted to the debit of Purchase Account.
(iii) Discount received Rs.400 was posted to the debit of Discount Allowed Account.
(iv) Rs.11,480 paid for repairs of motor car were debited to Motor Car Account as Rs.1,480.
(v) A sale of Rs.23,500 to Raman was entered in the Sales Book as Rs.25,300.
(vi) While carrying forward the balance on one page in Pawan's Account, the amount of Rs.2,500 was written on the
credit side instead of the debit side.
PART – B
Q.27 Which of the following is not shown in Balance Sheet?
(a) Opening Stock (b) Closing Stock (c) Patents (d) Debtors [1]
Q.28 Trial Balance is prepared to locate
(a) Errors of Principle. (b) Errors of omission.
(c) Compensating Errors. (d) None of these.
Q.29 Suspense Account will give the
(a) Debit balance. (b) Credit balance. (c) Debit or credit balance, as the case may be. (d) None of these.
Q.30 Capital Expenditure and Revenue Expenditure
(a) are distinguished. (b) are not distinguished.
(c) may or may not be distinguished. (d) must not be distinguished.
Q.31 Calculate value of Opening Stock from the following:
Cash Sales 40,000 Credit Sales 1,65,000
Sales Return (Out of Credit Sales) 5,000 Purchases 124,000
Purchases Return 4,000 Carriage Inwards 8,000
Closing Stock 36,000 Rate of Gross Profit 40% on Sales
Q.32 Prepare an accounting equation from the following transactions :
1) Started business with cash Rs.1,40,000.
2) Credit purchase of goods Rs.36,000.
3) Payment made to creditors in full settlement Rs.35,000.
4) Purchase machinery for cash Rs.20,000.
5) Depreciation on machinery Rs.2,000.
Q.33 Calculate the missing value in the following cases :
Case Cost of goods sold Gross Profit (%) Sales (Rs.)
1. 1,50,000 20% of sales ?
2. ? 25% of cost of goods sold 5,00,000
3. 2,25,000 20% of cost of goods sold ?
4. ? 30% 2,50,000
Q.34 From the following balances prepare a trading and profit and loss account and balance sheet for the year ended
March 31, 2017 (6)
Particulars Amount Particulars Amount
Opening stock 15,310 Capital 2,50,000
Purchases 82,400 Drawings 48,000
Sales 256,000 Sundry debtors 57,000
Returns (Dr.) 4,000 Sundry creditors 12,000
Returns (Cr.) 2,400 Depreciation 4,200
Factory rent 18,000 Charity 500
Custom duty 11,500 Cash balance 4,460
Coal, gas & power 6,000 Bank balance 4,000
Wages and salary 36,600 Bank charges 180
Discount (Dr.) 7,500 Establishment expenses 3,600
Commission ( C T - ) 1,200 Plant 42,000
Bad debts 5,850 Leasehold building 1,50,000
Bad debts recovered 2,000 Sales tax collected 2,000
Apprenticeship premium 4,800 Goodwill 20,000
Production expenses 2,600 Patents 10,000
Adminstrative expenses 5.000 Trademark 5,000
Carriage 8.700 Loan ( Cr .) 25,000
Interest on loan 3,000
The value of closing stock on March 31, 2017 was Rs.25,400.