Accountancy Set (A) Class - Xi - Final

Commerce Classes for CBSE & CUET By Virender Sir @ 8860020762
Accountancy Question Bank

Class – XI [Code (055)]
1. Qualitative characteristics of accounting information are:
(A) Reliability
(B) Relevance
(C) Understandable
(D) All of these
2. The goods available with the business for sale on a particular date is known as:
(A) Stock
(B) Creditors
(C) Debtors
(D) None of these
3. Which one is an example of current liabilities:
(A) Bills Receivable
(B) Debtors
(C) Creditors
(D) None of these
4. 4. Which is received at the time of making the payment in cash is known as:
(A) Trade discount
(B) Rebate
(C) Cash discount '
(D) None of these
5. A firm sold goods on credit for Rs 50,000 in the month of January and collected the amount
in the month of April. Accountant record this sale in the month of April following Accrual
basis of Accounting. Is he correct in doing so.
(A) True
(B) False
(C) Partially true
(D) Can't say
6. In accounts recording is made of:
(A) Only Financial Transactions .
(B) Only Non-Financial Transactions
(C) Financial as well as Non-Financial Transactions
(D) Personal Transactions of the Proprietor
Accountancy / Economics / Business Studies (XI- XII) 1

7. Accounting starts where book keeping_______

(A) Starts
(B) Ends
(C) Mid way
(D) Don't know
8. Which of the following is not a business transaction?
(A) Bought furniture of Rs. 10,000 for business
(B) Paid for salaries of employees 15,000.
(C) Paid sons fees from her personal bank account Rs.20,000.
(D) Paid sons fees from the business Rs. 2,000
9. Identify the Accounting Principle which includes the cost of acquisition that does not
change year after year.
(A) Cost Concept
(B) Revenue Recognition
(C) Accounting Period
(D) Consistency
10. IFRS stands for:
(A) Indian Formal Reporting System
(B) Indian Financial Reporting System
(C) International Financial Reporting Standards
(D) International Financial Reporting System
11. According to which principle even the proprietor of the business is treated as a creditor of
the business:
(A) Going concern
(B) Cost principle
(C) Business Entity Principle
(D) Accounting Period Principle
12. The firm purchased the machine cost Rs. 10,000 and charged depreciation @ 10%
according to the Straight Line Method. After 2 years they switch to the Written down value
method. At the time of sale of machine they calculated the depreciation as per the SLM.
Which accounting principle is violated?
(A) Historical cost
(B) Consistency
(C) Cost
(D) Money Measurement

13. Accounting starts with ...... financial transactions and ends with ...... accounting information.
(A) recording, communicating
(B) classifying, analysing
(C) identifying, analysing
(D) identifying, communicating
14. Which of the following is not an internal user of accounting?
(A) Owners
(B) Employees
(C) Management
(D) Potential investors
15. Hardik Ltd. is engaged in a laptop trading business the total assets of business are Rs.
10,40,000 and outside liabilities are Rs.1,80,000. What will be the owner's equity?
(A) Rs.12,20,000
(B) Rs.9,60,000
(C) Rs.8,60,000
(D) Can't be determined
16. Amount received from sale of goods is:
(A) Revenue receipt ~
(B) Capitalize receipt
(C) (A) and (B) both
(D) None of these
17. Money spent to Acquire an Asset is known as:
(A) Expenditure
(B) Expenses
(C) Deferred revenue expenditure
(D) Both (B) and (C)
18. The amount of cash or goods which is withdrawal by the proprietor from business for his
private use is called:
(A) Capital
(B) Expenses
(C) Drawings
(D) Expenditure
19. A document given by the seller to the buyer for sale of goods or provision of service on
credit, is known as:
(A) Invoice
(B) Debit Note
(C) Cash Memo
(D) All of these

20. Outstanding Rent is a......................... account.

(A) Personal
(B) Nominal
(C) Real
(D) None of these
21. Which of the following accounts has a credit balance?
(A) Discount Received
(B) Wages
(C) Bank
(D) Discount Allowed
22. Assertion: Ledger is called Principal Book of accounts as any accounting information can
be extracted from it.
Reason: Ledger is essential to complete a system of accounting.
(A) Both A and R are true and R.is the correct explanation of A.
(B) Both A and R are true but R is not the correct explanation of A.
(C) A is true but R is false.
(D) Both A and R are false.
23. Rule of Nominal A/c is:
(A) Debit income, Credit loss
(B) Debit receiver, Credit giver
(C) Debit losses and expenses, credit income and gain
(D) Debit comes in, credit goes out
24. Bank Reconciliation Statement is prepared to reconcile _______ and _______ balances.
A. Cash Book; Pass Book
B. Cash book; Cash Account
C. Bank Account; Cash Book
D. Cash Account; Pass book
25. In the books of M/S Rohan enterprises, the cash received Rs. 12,000 will be recorded on the
debit side of cash book
(A) True
(B) False
(C) Partially true
(D) Can't say

26. Assertion (A): Bank statement is prepared by Bank.

Reason (R): All business firms open current account with banks.
Options:
(A) Both A and R are true, R is the correct explanation of A.
(B) Both A and R are true, R is not the correct explanation of /A.
(C) A is correct, but R is incorrect.
(D) A is incorrect, but R is correct.
27. An asset was purchased for Rs. 50,000 and as per reducing balance method, 20%
depreciation is written off each year. What is the value of assets at the end of three years?
(A) Rs. 35.000
(B) Rs. 25,600
(C) Rs. 40,000
(D) Rs. 32,000
28. A machine was purchased for Rs. 50,000. Installation expenses amounted to Rs. 2,000
wages of f4',000 were paid on installation. The scrap value at the end of its useful life of 10
years is Rs. 6,000. Repairs of Rs. 6,000 was made after 6 months from the date of purchase.
Calculate depreciation
(A) Rs. 5,600
(B) Rs. 4,800
(C) Rs. 5,000
(D) None
29. On purchase of machinery, amount spent on its carriage is debited to:
(A) Purchase A/c
(B) Carriage A/c
(C) Machinery A/c
(D) Installation Expenses A/c
30. Depreciable cost is equal to cost of the asset less salvage value.
(A) True
(B) False
(C) Partially true
(D) Can't say
31. Assertion-ln accounting, depreciation is provided on all fixed assets except land.
Reason-Land is usually assumed not a depreciate Options:
(B) Both A and R are true, R is not the correct explanation of A.
(D) A is incorrect, but R is correct

32. Provision is created by debiting:

(A) Profit and Loss Account
(B) Profit and Loss Appropriation Account
(C) Trading Account
(D) None of these
33. Amortisation refers to writing off
(A) Depleting Asset'
(B) Wasting asset
(C) Intangible Asset
(D) Fictitious asset
34. Capital Redemption Reserve is:
(A) General Reserve
(B) Specific reserve
(C) Revenue Reserve
(D) None of these
35. Which among the following is a correct difference between Provision and Reserve?
(A) Provision is created out of legal necessity whereas Reserve is created as a matter of
prudence
(B) Provision is invested whereas reserve is not invested
(C) Provision is an Appropriation to profit where as Reserve is a Charge against profit
(D) Provision can be used as a distribution of dividend whereas a reserve cannot be
allowed to be used for distribution of dividend.
36. Provision is an appropriation of profit.
(A) True (B) False
(C) Partially true (D) Can't say
37. Amount of IGST charged by Mr. A
(A) Rs. 12000
(B) Rs. 17000
(C) Nil
(D) Rs. 13000
38. Amount of SGST charged by Mr. A
(A) Rs.15000
(B) Rs.9000
(C) Rs.7500
(D) Rs.6500

39. Which account will be credited for withdrawal of goods by Virat for personal use?
(A) Purchase
(B) Drawings
(C) Capital
(D) Sales
40. Where amount of Trade Discount given on sale will be recorded?
(A) Journal Book
(B) Cash Book
(C) Sales Book
(D) None of these
41. Which account will be debited for Repair of old machinery?
(A) Repair Account (B) Purchase Account
(C) Machinery Account (D) Both A & B
42. Assertion (A): Cheque issued but not presented in the bank are called unpresented cheque.
Reason (R): It is not compulsory to present the cheque in the bank to receive the payment.
Options:
(B) Both A and R are true, R is not the correct explanation of A.
(D) A is incorrect, but R is correct
43. What is the journal entry if goods of Rs. 20,000 are sold on credit to S?
(A) S's A/c Dr 20,000
To Sales A/c 20,000
(A) Cash A/c Dr 20,000
To Sales A/c 20,000
(C) S's A/c Dr 20,000
To Goods A/c 20,000
(D) None of the above
44. Pass journal entry if goods costing Rs 50,000 are sold for Rs 70,000.
(A) Cash A/c Dr 50,000
To Sales A/c 50,000
(B) Cash A/c Dr 70,000
To Sales A/c 70,000
(C) Cash A/c Dr 70,000
To Goods A/c 70,000

45. What is the net amount if a trader sells goods of the list price of Rs 20,000 at 10% trade
discount and 2% cash discount?
(A) Rs.20,000
(B) Rs.18,000
(C) Rs.17,640
(D) None of these
46. Rebate is a reduction in the value of goods sold allowed by the seller.
(A) True
(B) False
(C) Partially true
(D) Can't say
47. Which of the following about the Purchase Book is correct?
(A) It records purchases of all types
(B) It records all credit purchases of the goods, the enterprise deals in
(C) It records all cash purchases of the goods, the enterprise deals in
48. Which of the following account has a credit balance?
(A) Carriage Inward
(B) Discount received
(C) Carriage Outward
(D) Discount Allowed
49. Taxes that are levied on any Intra-State purchase are?

A. IGST •
B. CGST and SGST
C. SGST
D. CGST
50. M/s-Surest! & Sons is preparing Bank Reconciliation Statement. Debit balance as per Cash
Book was ^3,72,000. one cheque deposited in bank but not collected by bank for t15,400.
^5,000 received as dividend (no entry in cash book). What will be the balance as per pass
book?
(A) Rs. 3,72,000
(B) Rs. 3,77,000
(C) Rs. 3,92,400
(D) Rs. 3,61,600.

51. Identify contra entry from the following.

(A) Salary paid Rs.20,000.
(B) Cash received from P Rs. 10,000.
(C) Cash deposited into bank Rs.25,000.
(D) Cash withdrawn from bank for personal use Rs.5,000.
52. Assertion (A) Charging depreciation is important to represent true and fair financial
position.
Reason (R) If depreciation on assets is not provided for, then the assets will be overvalued.
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true and (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but-(R) is true
53. Assertion (A) - GST has a dual Aspect.
Reason (R) - In GST Central and State Government simultaneously levy on a common tax
base.
(A) Both (A) and (R) are true and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true and (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true
54. Goods given as charity, which account will be credited:
(A) Sales A/c
(B) Cash A/c
(C) Purchase A/c
(D) Charity A/c
55. Double column cash book records
(A) Alt transactions
(B) Cash and bank transactions
(C) Only cash transactions
(D) Only credit transactions
56. Amount received or receivable against sale of assets :
a) revenue receipt
b) capital receipt
c) sometimes revenue and sometimes -capital
d) none of above

57. Which of the following is not an objective of accounting?

a) To maintain accounting records.
b) To calculate the result of operations.
c) To ascertain the financial position.
d) To keep of record non-financial transactions.
58. Which of the following is not an external user of accounting?
a) Creditor b) Banks and financial institutions
c) Government d) Management
59. Management accounting relates to :
a) Recording of business transactions in the books of accounts
b) To collection, classification and ascertainment of the cost of production or job
undertaken by the firm.
c) Delates to the use of accounting data collected with the help of financial accounting
and cost accounting for the purpose of policy formulation, planning, control and
decision making by the management
d) All of the above.
60. Assertion (A) - Accounting process is carried out on the basis of the rules and principles
framed by accountancy.
Reason (R) : Thus, it may be said that accountancy is knowledge of accounting and
accounting is not the application of accountancy.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true' and (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true.
61. Out of the following which item is known as position statement?
a) Income Statement b) Balance Sheet
c) Cash flow statement d) Trading A/c.
62. Full form of GAAP
a) Journal Accepted Accounting' principles
b) Generally Accepted Accounting prudence
c) Generally Accounting Accepted principles
d) Generally Accepted Accounting principles

63. Salary to Manager will be recorded in the books of accounts but appointment of manager is
not recorded due to ______
a) Full disclosure
b) Accounting period
c) Business entity
d) Money measurement
64. Do not anticipate any profit but provide for all possible losses according to the ____
a) Accounting period
b) Business entity J&p Prudence concept
d) Full disclosure
65. Correct profit or loss can be ascertained from :
a) Accrual basis
b) Cash basis
c) Both (a) and (b)
d) None of these
66. Bills payable accepted will :
a) Decrease in assets, increase in liability
b) Decrease in liability, decrease in owners' equity
c) Increase in liability, increase in assets
d) Increase in assets, decrease in liability
67. Accrued Interest account and commission account are the examples of :
a) Natural account
b) Artificial account
c) Representative account
d) Impersonal account
68. If seller receives back the goods sold, he will prepare:
a) Credit note
b) Debit note
c) Both (a) and (b)
d) None of these
69. Bank overdraft is which type of account.
a) Revenue account
b) Capital account
c) Assets account
d) Liability account

70. Assertion (A) : Journal is prepared from the voucher and ledger is prepared from the
journal.
Reason (R) : Because voucher is evidence for each business transactions and without
journal, ledger cannot be prepared.
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true and (R) is not the correct explanation of (A).
c) (A) is true, but (R) is false
d) (A) is false, but (R) is true
71. Assertion (A) : Financial accounting is confined to recording of financial transactions and
events in the books of account, preparation of financial statements.
Reason (R) : Financial accounting also records transactions which are of non-financial in
nature.
d) (A) is false, but (R) is true.
72. When a firm maintains a cash book, it need not maintain
a) Journal Proper
b) Purchases (journal) book
c) Sales (journal) book
d) Bank and cash account in the ledger
73. Double column cash book records
a) All transactions
b) Cash and bank transactions
c) Only cash transactions
d) Only credit transactions
74. Assertion (A) : There should be complete and understandable reporting on the financial
statements of all significant information relating to the economic affairs of the entity.
Reason (R) : Such disclosure of material information will result in better understanding of
financial statements.
d) (A) is false, but (R) is true

75. Assertion (A) : It is not necessary to match "revenues" of the period with the "expenses" of
that period to determine correct profit or loss for the accounting period.
Reason (R) : Therefore, it is not relevant when the payment was made or received. All
adjustments are made for all outstanding expenses and prepaid expenses.
d) (A) is false, but (R) is true.
76. Match the followings:
i) Create Provision for doubtful debts a) Dual aspect concept
ii) Profit and loss account and balance sheet b) Conservatism (Prudence) concept
is prepared at the end of the year
iii) Wages outstanding is added c) Accounting period concept
iv) Assets = Liabilities + capital d) Matching concept
a) i – a, ii – b, c, - iv – d
b) i – b, ii – c, iii – d, iv – a
c) i – b, ii – d, iii – a, iv – c
d) i – b, ii – a, iii – d, iv – c
77. The transaction 'started with cash* results in.
a) Increase in Expense
b) Increase in assets
c) Decrease in assets
d) Decrease in liability
78. Fill in the blanks:
_______ A/c Dr. 2,000
To General Traders 2,000
(Purchased furniture from General Traders)
a) purchase a/c
b) sales a/c
c) furniture a/c
d) cash a/c

79. Match the following

A B
i) Cash Book a) Ledger
ii) Salary Account b) Allowed by creditor
iii) Cash Discount c) To increase sales volume
iv) Trade Discount d) Primary Book
a) i – d, ii – a, iii – b, iv – c
b) i – b, ii – c, iii – d, iv – a
c) i – b, ii – d, iii – a, iv – c
d) i – b, ii – a, iii – d, iv – c
80. Assertion (A): Debt written off as bad, when recovered subsequently, is credited to Debtbrs
account
Reason (R): Bad Debts recovered are credited as it is accounted as a gain.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
81. Find out value of account receivable from following :
Cash Rs. 48,000 account payable Rs. 33,000 office equipment Rs. 21,000 owner equity Rs.
77,000?
(a) Rs. 21,000 (b) Rs. 41,000
(c) Rs. 15,000 (d) Rs. 110,000
82. During a reporting period, a company's assets increase by Rs. 80,000,000. Liabilities
decrease by Rs. 20,000,000. Equity must therefore?
(a) Decrease by Rs. 100,000,000
(b) Increase by Rs. 100,000,000
(c) Decrease by Rs. 60,00,000
(d) Increase by Rs. 60,000,000
83. Mr. "A" borrowed money from bank; this transaction involves which' one of the following
accounts?
(a) Cash & Bank Loan (b) Bank & Debtors
(c) Drawing & Cash (d) Cash & Bank

84. On January 1st, 2009 an entity's balance sheet showed total assets of Rs. 750 and liabilities
of Rs. 250. Owners equity at January 1st was?
a) 250 b) 500
c) 750 d) 1000
85. Assertion (A): Purchase of Asset is always debited.
Reason (R): Liabilities always have a credit balance.
Alternatives:
86. Mr. Sunrise started a business for buying and selling of stationery with Rs. 5,00,000 as an
initial investment. Of which he paid Rs.1,00,000 for furniture, Rs. 2,00,000 for buying
stationery items. He employed a sales person and clerk. At the end of the month he paid Rs.
5,000 as their salaries. Out of the stationery bought he sold some stationery for Rs. 1,50,000
for cash and some other stationery for Rs. 1,00,000 on credit basis to Mr. Ravi.
Subsequently, he bought stationery items of Rs. 1,50,000 from Mr. Peace. In the first week
of next month there was a fire accident and he lost Rs. 30,000 worth of stationery. a part of
the machinery, which cost Rs. 40,000, was sold for Rs. 45,000. From the above, answer the
following : What are the fixed assets he bought?
a) 1000000 b) 150000
c) 167000 d) 140000
87. What is the value of the goods purchased?
a) 200000 b) 350000
c) 250000 d) 300000
88. What are the expenses?
a) 4000 b) 5000
c) 6000 d) 205000
89. What is the gain he earned?
a) 2000 b) 4000
c} 5000 d) 6000

90. Match the Following :

Column A Column B
1. Building (a) Debit
2. Salary (b) Credit
3. Left side (c) Asset
4. Right side (d) Expense
a) 1 – c, 2 – d, 3 – a, 4 – b
b) 1 – d, 2 – c, 3 – a, 4 – b
c) 1 – b, 2 – a, 3 – c, 4 – d
d) 1 – a, 2 – b, 3 – c, 4 – d
91. Powers Corporation received a cash advance of $500 from a customer. As a result of this
event
(a) assets increased by $500 (Debited)
(b) equity increased by $500 (Credited)
(c) liabilities decreased by $500 (Debited)
(d) Both assets and equity increased by $500 (Debited and Credited)
92. Amount invested by the proprietor in the business should be credit to :
(a) A/c payable (b) Capital
(c) Cash (d) Drawing
93. Transactions are first recorded in which book/account?
(a) Book of Original Entry (b) T Accounts
(c) Accounting Equation (d) Book of Final Entry.
94. Goods returned by customer will be debited to which account?
(a) Purchases A/c (b) Return outward
(c) Customer's A/c (d) Return inward
95. Assertion (A): The rules for Debit and Credit for liability and capital are the same.
Reason (R): As per Business Entity Concept, business is separate & amp; distinct from its
owner.
Alternatives:

96. Which qualitative characteristic of accounting information is reflected when accounting

information is clearly presented? [1]
a) Reliability b) relevance
c) Comparability d) Understandability
97. A person to whom money is owed by a firm for purchase of goods is called a .......... [1]
98. ............. accounting principle require that personal expense of proprietor or partner should
be debited to Drawing Account [1]
99. Ind - AS are [1]
a) rule based accounting standards
b) principle based accounting standards
c) partially rule based and partially principle based accounting standards
d) none of these
100. Only credit transaction are recorded under accrual Basis of Accounting (true/false) [1]
101. Valuation of stock at lower of cost or net realisable value is an example of
a) Historical cost b) conservatism
c) consistency d) all of these [1]
102. Amount withdrawn by proprietor for personal use will ......... cash and capital.
[1]
103. An increase in which of the following account will be recorded on the debit side? [1]
a) Building account b) Capital account
c) Bills payable account d) rent received account
104. If purchaser of goods returns them, he will prepare
a) credit note b) debit note
c) both (a) and (b) d) none of these [1]
105. Difference between total assets and external liabilities is net worth. (True/False) [1]
106. On intra-state purchase of goods, which of the following accounts are debited [1]
a) Input IGST account
b) Input COST account and Input SGST
c) Input IGST account and Input CGST account
d) Input IGST account and Input SGST account
107. The process of transferring the accounts from the journal to the ledger is called [1]
a) journalizing b) posting
C) balancing d) costing

108. The preparation of Trial balance helps in

a) judging the financial position
b) locating error of all types
c) preparation of final accounts
d) none of these
109. Ledger is called a book of [1]
a) primary entry b) secondary entry
c) final entry d) none of these
110. the closing balance of the petty cash book is [1]
i) expenses/expenditure ii) profit/gain
iii) assets iv) liability
111. Bank Reconciliation statement is [1]
a) A part of the double entry system
b) not a part of double entry system
c) part of bank statement
d) none of these
112. An assets was purchase for Rs.5, 00,000and 20% depreciation is charged as per reducing
balance method each year. What is the value of assets at the end of three years? [1]
a) 3,50,000 b) 2,56,000
c) 4,00;000 d) 3,20,000
113. Provision is a [1]
a) specific reserve b) general reserve
c) capital reserve d) none of these
114. Three days are added for ascertaining the date of maturity, this is known as ............. [1]
115. A 4 months bill drawn on 1st January, 2019 will mature for payment on
a) 3rd may 2019 b) 4th may 2019
c) 5th may 2019 d) 10th may 2019 [1]
116. Give differences between Revenue Reserve and capital reserve on the basis of [3]
i) source of creation ii) purpose
iii) usage
117. Following transactions are of M/s. Vinod Kumar & Sons for the month of April, 2019.
Prepare their. Purchases Book: [3]
April 5 Purchase on credit from M/s. Birla Mills:
100 pieces long- cloth @ Rs.80
50 pieces shirting @ Rs.100

April 8 Purchased for cash from M/s. Ambika Mills:

50 pieces muslin @ Rs.120
April 15 Purchased on credit from M/s. Arvind Mills:
20 pieces coating @ Rs.1,000 10 pieces shirting @ Rs.90
April 20 Purchased on credit from M/s. Bharat Typewriters Ltd
5 typewriters @ Rs. 1,400 each
118. Define accounting and state it's any three objectives [4]
119. Explain the following accounting concepts.
A) Business Entity concept
B) Money measurement concept [4]
OR
Define Accounting standards. Write any three objectives or Accounting Standards
120. State the accounting concept/convention involved in each of the following situation [1]
i) purchase of pen is treated as expense
ii) sale is recognised on the basis of cash memo or invoice
iii) capital contributed by the proprietor is credited to his capital account
iv) assets are recorded in a books at the cost incurred for acquisition of such assets
121. From the Following information prepare trial balance as on 31.03.2019 [4]
Capital 2,50,000 purchase 35,000
fixed assets 2,46,000 sales 53,000
debtors 20,000 return inward 1,000

creditors 22,000 return outward 500
bills payable 4,000 bills receivable 8,000
bank overdraft 6,000 opening stock 7,500

wages 6,000 salaries 9,000
rent 3,000
OR
"Is trial balance a conclusive proof of arithmetical accuracy of accounts" comment upon it.
122. Prepare accounting equation. [4]
a) Kunal started business with cash Rs 2,50,000, furniture 50,000 and stock 8,000
b) Outstanding commission Rs.2,000/-
c) He purchases goods from B for Rs. 40,000 and paid him 60% immediately
d) He sold goods (costing Rs.20,000/-) for Cash Rs.26,000/-

123. Pass the journal entries from the transactions given below [6]
S.No Transaction Amount
1 Cash paid for installation of machine 500
2 Received Rs 1,200 of a bad debts written-off last year. 70,000
3 Goods destroyed by fire 2,000
4 Rent outstanding 1,000
5 Paid rent Rs.500 plus CGST and SGST@9% each
6 Sudhir Kumar who owed me Rs 3,000 has failed to pay the amount. He pays me a
compensation of 45 paise in a rupee.
124. Enter the following transaction in a double column cash book of M/s Ashi Traders for
January 2019: [6]
Date Transaction Amount
01 Cash in hand 7,500

Bank overdraft 35,000
02 Paid wages 2,000
05 Cash sales of Rs. 70,000 plus CGST and SGST @ 6% each

10 Deposited into bank 40,000
15 Bought goods by cheque for Rs. 20,000 plus IGST @ 12%
20 Paid rent 5,000
25 Drew from bank for personal use 4,000
26 Salary paid 10,000
125. From the following particulars prepare bank reconciliation statement on 31st March 2019:
[6]
st
1. Bank balance as per Cash Book on 31 March Rs.17,600
2. Cash and cheque totaling Rs.36,000 were sent to bank during March but one cheque
of Rs. 11,800 was shown in the pass Book on 2nd April.
3. As per instruction bankers have directly collected Rs.4,100 from a customer but it is
not given in Cash book
4. Three cheques for Rs.10,000, Rs.12,000 and Rs.4,800 respectively were drawn on
27th march but the cheque for Rs.4,800 was encashed on 1st April.
5. On 31st March bankers had debited Rs.45 as bank charge but had intimated it on 3 rd
April
6. Rs.16,200 were withdrawn from bank on 25th but there is no entry for it in the cash
book

126. P sold goods to Q for Rs.10,000 on January 1, 2018 and on the same day draws a bill on Q
for the same amount for 3 months. Q accepts it and returns it to P, who discounts it on 10th
January, 2018 with his bank for Rs.9850. The acceptance is dishonored on the due date and
the noting charges were paid by bank being Rs.50. On 4th April, Q paid Rs.2,050 (including
noting charges) in cash and accepted a new bill at 3 months for the amount due to P together
with interest @ 12% p.a. Pass journal entries in the books of P. [8]
127. Ram sold goods to Mohan worth Rs 8000 on 1/4/2018 and on the same date drew a bill for
the same for a period of 3 months which was duly accepted. Ram discounted the bill with
the bank for Rs 7900. On the due date the bill was dishonored with noting charges of Rs
150 paid by the bank. Mohan paid Rs 3000 in cash and accepted a new bill for Rs 5300 for
three months. Before maturity
Mohan became insolvent and a final composition of 50 paise in a rupee was received from
his private estate. Give Journal entries in the books of Ram.
128. On October 01, 2001 Juneja Transport Company purchased 2 Trucks for Rs 10,00,000 each.
On July 01, 2003, One Truck was involved in an accident and was completely destroyed
and Rs 6,00,000 were received from the insurance company in full settlement. On
December 31, 2003 another truck was involved in an accident and destroyed partially,
which was not insured. It was sold off for Rs 1,50,000. On January 31, 2004 company
purchased a fresh truck for Rs 12,00,000. Depreciation is to be provided at 10% p.a. on the
written down value every year. The books are closed every year on March 31. Give the
truck account from 2001 to 2004 [8]
129. Shakti Cement purchased on 1/1/2004 a Plant for Rs 80,000. On 1/4/2005 another plant was
purchased for Rs 48000. On 1/9/2006, the plant purchased on 1/1/2004 became obsolete and
was so sold for Rs 42000 and on the same date another plant was purchased for Rs 75000.
Depreciation is provided on the Plant at 10% p.a on Diminishing balance method. Accounts
are closed on 31st December every year. Prepare 'Plant account for three years.
130. If a firm believes that some of its debtors may 'default', it should act on this by taking sure
that all possible losses are recorded in the books. This is an example of ---------------concept.
(1)
131. _______are those Non-current Assets which are held for use in the business and are not
meant for resale. (1)
132. Cash Memo is a (1)
a. Source document b. Accounting voucher

133. Book keeping is mainly concerned with : (1)

a. Recording of financial transitions data
b. Interpreting the data for internal and external users.
c. Designing the systems of summarizing the recorded data.
d. preparation of financial statements of the business enterprise.
134. The book in which all accounts are maintained is known as:- (1)
a) Cash Book
b) Journal
c) Purchases Book
d) Ledger
135. Which of the following accounts is expected to have a debit balance?
a) Asset
b) Expense
c) Loss
d) All of the above
136. When a firm maintains a cash Book, it need not maintain : (1)
a) Journal Proper
b) Sales Book
c) Bank and Cash account in the ledger
d) Purchases Book
137. The periodic total of Sales Return Journal is posted to: (1)
a) Sales Account
b) Goods Account
c) Purchases Return account
d) Sales Return Account
138. Pass Book is a copy of : (1)
a) Customer Account
b) Bank column of cash book
c) Cash column of cash book
d) Copy of Receipts and payments
139. Favorable Bank Balance means: (1)
a) Credit balance in the cash book
b) Credit balance in pass book
c) Debit balance in the cash book
d) both b and c

140. Depreciation is not charged on ___________ (1)

a) Furniture
b) Machinery
c) Goods
d) plant
141. Days of Grace in case of bills of exchange is of: (1)
a) 2 days
b) 3 days
c) 1 day
d) 4 days
142. In case of renewal of the bill, interest is charged for the period of: (1)
a) one month
b) Original Bill
c) Fresh Bill
d) None of the above
143. What do you mean by Accounting Standards? Explain its any two objectives. (3)
144. define any four causes of Difference Between cash Book and Pass book. (1)
OR
Differentiate between Provision and Reserve on the basis of:
(1) Nature
(2) Purpose
(3) Legal necessity
(4) Mode of creation
145. Rectification of journal entries to rectify the following errors using Suspense Account,
where necessary: (6)
(1) Payment of Rs. 450 to Manish and Rs. 550 to Sunil was made but Manish was
debited with Rs. 550 and Sunil with Rs. 450.
(2) Cash Sales of Rs. 700 were credited to commission account as Rs.70.
(3) Goods returned from Seema Rs. 5000 were recorded in Purchases Return Book.
However, Seema's account was correctly credited.
(4) An Amount of Rs. 2,000 due from Mahesh Chand which had ~been written off as a
bad debt in previous year was unexpectedly recovered and has been posted to the
personal account of Mahesh Chand.
(5) Sales of Rs. 320 to Manoj was entered in the sales book as Rs. 230
(6) Purchase of Furniture Rs. 70000 wrongly posted in purchases account.

146. Prepare Cash book form the following transactions for the month of May 2018. (6)
Date Transitions
1 Commenced business with cash............2,25,000
2 Purchased furniture for Rs. 30,000 plus IGST @ 18% …….
5 Bought goods for cash Rs. 80,000 plus CGST and SGST 0 9% EACH
9 Sold goods for cash for Rs. 50,000 plus CGST and SGST @ 9% each
14 Paid into Bank .........................Rs. 70,000.
18 Purchased goods from Manish for Rs. 20,000 plus IGST @18%
21 Sold goods to Mohan for Rs. 45,000 plus CGST and SGST @ 9% each
25 Received cash from Vinay..........................15,000
30 Paid Rent of Rs, 4200 plus CGST and SGST @ 9% each
147. Explain the following accounting principles in brief (6)
a. Full disclosure
b. Accounting period
c. Dual aspect
148. On 2nd February, 2017, Amit purchased goods from Manish for Rs. 35,000. Amit paid Rs.
5,000 immediately and for the balance, accepted a bill payable after 60 days. Manish
immediately endorsed the bill in favour of his creditor Kapil. On the due date, Kapil
presented the bill to Amit which the latter dishonored and Kapil paid Rs. 100 as noting
charges. On the same date, Kapil informed Manish about the dishonor of the bill. Manish
settled his debt to Kapil by cheque for Rs. 31,000 which includes noting Charges and
interest. Amit settled Manish's claim by cheque for the same amount. Record the necessary
Journal Entries in the books of Manish and Amit. (6)
OR
On 15th January, 2018 Sachin sold goods for Rs. 30,000 to Narain and drew upon later a bill
for the same amount payable after 3 months. The bill was accepted by Narain. The bill was
discounted by Sachin from his bank for Rs. 29,250 on 31st January,2018. On maturity the
bill was dishonored. He further agreed to pay Rs. 10,500 in cash including Rs. 500 interest
and accept a new bill for two months for the remaining Rs. 20,000. The bill was duly met by
Narain on maturity. Give journal entries in the books of Sachin and Narain.
149. Venus Ltd. Purchased 4 Machinery at Rs. 40,000 each on 1st October 2013. On 1st April,
2014, another machinery is purchased by the company for a sum of Rs. 40,000. On 30th
September, 2015 one of the machinery purchased on 1st October, 2013 is sold at a loss of
Rs. 4,000. (8)

Prepare Machinery Account and Provision for Depreciation Account. for 3 years ending 31st
December 2015 assuming the firm has been charging depreciation at 20% per annum on
Written Down Value Method.
OR
On 1st January, 2014, M/s Vijay and Bros, purchased 5 washing machines for Rs. 15,000
each. They sold on 1st January, 2015 one machine for Rs. 12,500. They decided to write off
depreciation @ 10% on 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 December every year.
150. Which type of expenses are written in Trading Account? (1)
a) Direct Expenses
b) Indirect Expenses
c) Direct and Indirect Expenses
d) operating expenses
151. Closing stock is valued at: (1)
a) Cost price
b) Market Price
c) Cost price or Market Price, Whichever is less
d) Cost price or Market price, whichever is more
152. Which option is used to open company in tally? (1)
a) Create company
b) Alter
c) Select company
d) Shut company
153. State whether true and false If Preparation of ledger accounts is a prerequisite for preparing
the Trial Balance under computerized accounting system. (1)
154. Income Tax in case of sole trader is treated as (1)
(a) personal expenses
(b) Debtors expenses
(c) Business Expenses
(d) None of the above
155. Prepaid rent is personal accounts, (true / false) (1)
156. Types of accounts shown in the Balance Sheet are (1)
a. Real and Nominal.
b. Nominal and personal
c. Real, nominal and Personal
d. Real and personal

157. Explain any three limitations of computerized accounting system. (3)

158. What do you mean by customized software? Give its two advantages (3)
159. State any three Points of difference between Single entry system and Double Entry system.
(3)
160. Charu does not keep proper books of accounts. Prepare the statements of affairs and
statements of profit and loss for the year ending 31.3.2017 from the following information:-
(4)
1.4.2016 31.3.2017
Cash in hand 10000 36000
Debtors 20000 80000
Creditors 10000 46000
Bills receivable 20000 24000
Bills payable 4000 42000
Car _____ 800*00 -
Stock ' 40000 30000
Furniture 8000 48000
Investment 40000 50000
Bank balance 100000 90000
The followings adjustments are to be made :
a. proprietor withdrew cash Rs. 5000 pm for private use
b. depreciation @ 5% on car and @ 10% furniture.
c. Outstanding rent Rs. 6000
Fresh capital introduced during the year Rs. 30000
161. 0n~318t December 2017 the following Trail Balance of Mr. X was taken out: (8)
Particulars Dr.(Rs) Cr.(Rs)
Capital 50,000
Goods withdrawn for personal use 3500
Stock on (01,01.2016) 15000
Return Inward 1500
Carriage Inward 1200
Return outward 2000
Carriage Outward 750
Loan to Anuj @ 5% 15000
Interest on Loan to Anuj 500
Rent 800

Rent Outstanding 300

Purchases 28000
Debtors 30600
Creditors 12000
Advertisement Expenses 900
Provision for Doubtful debts 600
Bad debts 400
Salary 3100
Rent Received 1150
Cash in hand 1400
Sales 55000
Discount Allowed 400 -
Wages 6000
1,21.550 1.21.550
Prepare Trading and Profit and Loss Account for the year and Balance Sheet at that date
after making the following adjustment: -
(1) Stock on 31.12.2017 was valued at Rs. 18,000.
(2) The manager is entitled to a commission of 10% of.the net profit calculated after
charging such commission.
(3) Further bad debts of Rs. 600. Increase provision for doubtful debts by Rs. 2,400.
Also create provision @ 5% for discount on debtors.
(4) Stock valued at Rs. 1500 was destroyed by fire on 26.12. 2017. Insurance company
admitted a claim of Rs. 950 only.
(5) Rs. 200 out of the advertisement expenses are to be carried forward to the next year,
OR
From the following Trial Balance of Mr. Sanjeev, prepare a Trading and Profit and Loss
Account for the year ending 31st March, 2017 and a Balance Sheet as at that date:
Particulars Amount (Rs.) Dr Particulars Amount (Rs) Cr.
Wages 30,525 Loan at 12% (on 20,000
Purchases 1,30,295 01.07.2016)
Returns Inward 2,400 Creditors 30,305
Repairs 1,675 Discount 530
Bad Debts 2310 Capital 37,500
Interest on Loan 600 Sales 1,80,500
Salary 800 Return Outward 195
Octroi 500

Insurance * . 1000
Charity 125
Rent 2000
Machinery 16000
Debtors (including 30,000
for dishonored bill of
Rs. 800)
Cash in hand
Opening Stock 10,000
40,800
2,69,030 2,69,030
Adjustments:
(1) Wages include Rs. 2,000 for erection of new machinery on 31st March, 2017.
(2) Stock on 31st March, 2017 was Rs. 40,925.
(3) Provide depreciation on machinery @ 5 % p.a.
(4) Wages unpaid Rs. 800.
(5) Half the amount of Shyam's bills is irrecoverable.
(6) Create a provision at 5% on other debtors.
(7) Rent paid up to 31 f July, 2017
(8) Insurance unexpired Rs. 300
162. Which of the following is not a business transaction? [1]
(a) Bought furniture Rs. 10,000 for business.
(b) Paid for salaries of employees Rs. 5,000.
(c) Paid sons fees from her personal bank account Rs. 20,000.
(d) Paid electricity bill of business Rs. 2,000.
163. Capital is: [1]
(a) Internal Liability
(b) External Liability
(c) Internal as well as external Liability
OR
Which of the following is an Internal user of accounting information?
(a) Banks (b) Government
(c) Creditors (d) Management
164. Which of the following is not an intangible asset: [1]
(a) Furniture (b) Patents
(c) Goodwill (d) Trade Mark

165. Cash or goods taken away by the proprietor is called : [1]

(a) Drawings (b) Sales
(c) Charity (d) Expense
166. The liability arising from the ………………………… [1]
(a) Creditors (b) Account Receivable
(c) Loan (d) Payable expenses
OR
Under Accrual Basis of Accounting :
(a) Only cash transactions are recorded
(b) Both cash and credit transactions arc recorded
(c) Only credit transactions are recorded
167. Owner's capital in the beginning is Rs. 50,000. Revenue during the period is Rs. 60,000.
Expenses during the period are Rs. 55,000. Calculate the owner's capital at the end. [1]
(a) Rs. 65,000 (b) Rs. 55,000
(c) Rs. 70,000 (d) Rs. 1, 10,000
168. Lata, who owed Rs. 20,000 became insolvent. 70 paise in a rupee was received from her
estate. Bad debts account will be debited by : [1]
(a) Rs. 14,000 (b) Rs. 20,000
(b) Rs. 6,000 (d) Rs. 7,000
169. Anticipate no profits and provide for all possible losses. This is essence of which of the
following accounting principles : [1]
(a) Dual Aspect Principle (b) Materiality Principle
(c) Consistency Principle (d) Conservatism Principle
170. A bill Rs. 12,000 drawn by Shyam is accepted by Ram & Shyam gets its discounted @ 12%
p a due 3 months hence. The discounting charges borne by Shyam is : [1]
(a) Rs. 375 (b) Rs. 360
(c) Rs. 250 (d) Rs. 1,000
171. Which Book is known as Principal Book of Account: [1]
(a) Cash Book (b) Sales Book
(c) Ledger (d) Journal
172. Unfavorable balance means? [1]
(a) Credit balance in the cash book
(b) Credit balance in Bank statement
(c) Debit balance in cash book
(d) Debit balance in petty cash book

173. What are the taxes levied on an intra-State Supply? [1]

(a) CGST (b) SGST
(c) CGST and SGST (d) IGST
174. Which of the following item is not included in the Cash Book? [1]
(a) Purchases of Rs. 10,000
(b) Sales of Rs. 5,000
(c) Received cash for Salman Rs. 2,000
(d) Credit sales of 22,000
175. Gradual and Systematic writing off of intangible assets such as patents, Goodwill etc. is
known as : [1]
(a) Depletion (b) Depreciation
(c) Amortization (d) Scrap value
176. A Bill drawn for three on 5th April, 2019 will mature for payment on: [1]
(a) 5th July, 2019 (b) 8th July, 2019
(c) 9th July, 2019 (d) 8thAugust, 2019
177. Rectification entries are normally passed in: [1]
(a) Cash Book (b) Subsidiary books
(c) Journal Proper (d) None of these
178. Unearned Income means : [1]
(a) Accrued Income (b) Income Received in advance
(d) Outstanding Income (d) All of the above
179. Mohit has the following transactions, prepare accounting equation : [3]
(a) Business started with cash Rs. 1,75,000
(b) Purchased goods from Rohit Rs. 50,000
(c) Sales goods on credit to Manish (Costing Rs. 17,500) Rs. 20,000
(d) Purchased furniture for office use Rs. 10,000
(e) Cash paid to Rohit in full settlement Rs. 48,500
(f) Cash withdrew for personal use Rs. 3,000
OR
Explain the following Accounting Terms:
(a) Current Assets
(b) Drawings
(c) Deferred Revenue Expenditure

180. Explain any two of the followings : [4]

(a) Going Concern Concept
(b) Accounting Period concept
(c) Duality Principle
OR
Explain four limitations of Financial Accounting:
181. Journalize the following transactions in the books of Manpreet Bros. [4]
(a) Goods worth Rs. 2,000 were used by the proprietor.
(b) Charge depreciation @ 10% p.a for two months on machine costing Rs. 30,000.
(c) Provide interest on capital of Rs. 1,50,000 at 6% p.a. for 9 months.
(d) Rahul become insolvent, who owed is Rs. 2,000 a final dividend of 60 paise in a
rupee is received from his estate.
OR
Prepare a Trial Balance from the following data and consider capital as the difference in
their total of Debit and Credit Side :
Particulars Amt. (Rs.) Particulars Amt. (Rs.)
Building 60,000 Machinery 17,000
Return outward 2,600 Bank Overdraft 10,000
Bad Debt 2,800 Creditors 50,000
Cash 400 Purchases 1,00,000
Discount received 3,000 Sales 1,04,000
Debtors 60,000 Fixtures 5,600
Interest received 2,600
182. From the following particulars prepare bank reconciliation statement as on 31st March 2015:
[4]
(a) Debit balance as per Cash Book Rs. 1,500.
(b) A cheque for Rs. 2,000 issued in favour of X has not been presented for payment.
(c) A bill for Rs. 4,000 retired by bank under a rebate of Rs. 120. The full amount of the
bill was credited in Cash Book.
(d) A cheque for Rs. 750 deposited in bank has been dishonoured.
(e) A sum of Rs. 3,600 deposited in the bank has been credited as Rs. 360 in the Pass
Book.
(f) Payment side of Cash Book has been undercast by Rs. 100.

183. Prepare Two Column Cash Book from the following tractions and balance the book on 31st
Jan., 2021 : [6]
2021
Jan. 1 Cash in hand Rs. 50,000; Bank overdraft Rs. 1,90,000.
Jan. 2 Purchased goods from Rajesh Kumar of the list price of Rs. 50,000 at 5%
trade discount and payment made by cheque.
Jan. 6 Goods sold for Rs. 80,000 and payment received by cheque. Cheque
deposited into Bank on same day.
Jan. 10 Goods purchased for cash Rs. 19,800.
Jan. 15 Furniture sold for Rs. 1,77,000 and payment received by cheque & cheque
deposited into Bank on same day.
Jan. 18 Salaries paid Rs. 4,500.
Jan. 21 Settled the amount due to Ram Rs. 2,000 by paying cash Rs. 1,910.
Jan. 22 Cash received from Jai Rs. 14,780 in full settlement of his account of Rs.
15,000.
Jan.23 Paid Life Insurance premium Rs. 1,500.
Jan. 31 Deposited with bank the entire balance after retaining Rs.7,000 cash in hand.
OR
Rectify the following errors :
(i) Sold old furniture to A for Rs. 11,500 was passed through the Sales Book.
(ii) Credit purchases of Rs. 12,000 from Ojas omitted to be recorded in the books,
(iii) Repairs made were debited to Building Account Rs. 7,000.
(iv) Credit sale of Rs. 1,800 to Muskan was recorded as Rs. 8,100.
(v) Rs. 6,000 paid for office furniture was debited to office expenses account,
(vi) A credit sale of goods of? 15,000 to Ramesh has been wrongly passed through the
purchases Book.
184. (i) Abhay Ltd. purchased furniture on October 01,2018 for Rs. 4,50,000. On March
01,2019 it purchased another furniture for Rs. 3,00,000. On July 01,2020 it sold off
the first furniture purchased in 2018 for Rs. 2,25,000. Depreciation is provided at
15% p.a. on written down value method each year. Accounts are closed each year on
March 31, Prepare furniture account for the years ended on March 31,2019, March
31,2020 and March 31,2021.
(ii) What do you understand by Provision ? What journal entry will be passed for
creating a Provision for Repair ? Give 2 examples of Provision. 3+3

185. On Jan. 15, 2017, Kusum sold goods for Rs. 30,000 to Pushpa and drew upon her three bills
of exchanges of Rs. 10,000 each payable after one month, two months and three months
respectively. The first bill was retained by Kusum till its maturity. The second bill was
endorsed by her in favour of her creditor Khushboo and the third bill was discounted by her
immediately @ 6% p.a. All the bills were met by Pushpa. Journalise the above transactions
in the books of Kusum and Pushpa. [8]
186. In case of net worth method of Single entry System Profit is calculated by: [1]
(a) Comparing the capital in the beginning and capital at the end of the accounting
period
(b) Preparing a Balance Sheet
(c) Preparing a Profit and Loss Account
187. Which of the following software is not an Operating Software : [1]
(a) MS DOS (b) Windows XP
(c) MS Word (d) None of these
188. Which of the following is not shown in the Balance Sheet : [1]
(a) Opening Stock (b) Closing Stock
(c) Patents (d) Debtors
189. An extract of Trial Balance from the books of Tarun and Sons Enterprises on March 3I,
2017 is given below : [4]
Name of the Account Debit Amount Credit Amount
Sundry debtors 50,000
Bad debts 6,000
Prevision for doubtful debts 4,000
Additional Information :
Further bad debts amounted to Rs. 2,000.
Provision is to be maintained at 8% of Debtors.
190. A computer system is capable of performing many things". Explain any four capabilities of
a computer system. [4]
OR
What is Accounting Information System (AIS) ? What do you understand by automation of
accounting process?
191. Mrs. Vasundhara runs a small printing firm. She was maintaining only some records, which
she thought, were sufficient to run the business. On April 01 2019 available information
from her records indicated that she had the following assets and liabilities:

Printing Press Rs. 5,00,000, Buildings Rs. 2,00,000, Stock Rs. 50,000, Cash at bank Rs.
65,600,
Cash in hand Rs. 7,980, Dues from customers Rs. 20,350, Dues to creditors Rs. 75,340 and
Outstanding wages Rs. 5,000.
She withdrew Rs. 8,000 every month for meeting her personal expenses. She had also
introduced Rs. 15,000 during the year as additional capital.
On March 31, 2020 her position was as follows :
Press Rs. 5,25,000, Buildings Rs. 2,00,000, Stock Rs. 55,000, Cash at bank Rs. 40,380,
Cash in hand Rs.15,340, Dues from customers Rs. 17,210, Dues to creditors Rs. 65,680.
Calculate the profit made by Mrs. Vandana during the year using statement of affairs
method. [6]
OR
Explain Incomplete Records System of Accounting and Explain its features.
192. Explain briefly all the three elements of computer system. [3]
193. From the following Trial Balance prepare Trading and Profit & Loss Account for the year
ended March, 2017 and Balance Sheet as at that date:
Particulars Dr. (Rs.) Cr. (Rs.)
Stock 1st April 2016 22,300 ___
Purchases and Purchases Return 2,30,000
Freehold Premises 1,00,000 ___
Incidental Trade Exp. 11,200 ___
Insurance 1,850 ___
Audit Fees 800 ___
Commission Received 2,700
Interest 1,400
Debtors and Creditors 32,400 24,830
Wages 30,200 __
Salaries 15,200 __
Capital 1,50,000
Drawings 12,000 __
Income-Tax 3,600 __
Investments 8,000 __
Discount allowed & received 7,500 4,200
Sales Return & Sales 6,400 3,17,400
B/R 5,200 __

Office Furniture 9,000 __

Rent 2,600
Cash in hand 5,080 __
Bank Balance 7,600 __
5,08,330 5,08,330
Adjustment:
1. Stock at 31st March 2017 is Rs. 70,000.
2. Write of 5% Depreciation on Freehold Premises and 20% on office furniture.
3. Commission earned but not received Rs. 500.
4. Interest earned Rs. 600.
5. Rs. 200 for rent have been received in advance.
6. Charge interest on Capita! @ 6% and Rs. 500 on Drawings. [8]
194. Which of the following is the capital Expenditure? [1]
(a) Wages
(b) Paid for Building construction
(c) Repairs expenses of Building
(d) Advertisement Expenses
195. Out of the following Assets which one is not an Intangible Assets(1)
(a) Patents
(b) Investment
(c) Goodwill
(d) Trademark
196. Amortization refers to writing off ................ [1]
(a) Depleting Assets
(b) Wasting Assets
(c) Intangible Assets
(d) Fictitious Assets
197. Fill in the blanks with suitable word(s) [1]
The person to whom the amount mentioned in the promissory note is payable is known as
____________.
198. If the rent of one month is still to be paid the adjustment entry will be: [1]
(a) Debit outstanding rent account and Credit rent account
(b) Debit profit and loss account and Credit rent account
(c) Debit rent account and Credit profit and loss account
(d) Debit rent account and Credit outstanding rent account.

199. What are legacies? Where will you show them in financial statements of Not for Profit
organizations. [1]
200. What is meant by ‘window dressing’ in accounting? identify the values being violated in
case of window dressing. [3]
201. Prepare a two column cash book (With Bank and Cash Column) of Gaurav for the month of
January 2013 from the information provided below: [3]
2013
Jan.1 Cash in hand Rs. 60,000, balance at bank Rs. 40,000.
Jan 10 Cash deposited into bank Rs. 2,500.
Jan12. Paid salary by cheque Rs. 500 and through cash Rs. 1500.
Jan 25 Purchased furniture from Tarun Rs. 30,000 and ½ the amount was paid by cheque.
202. What are compensatory errors? Explain with the help of an example. [3]
203. Show the following information in Income and expenditure account of Chetna club for the
year 2012 and Balance sheets of 2011 and 2012. [3]
Receipt and Payments account as on 31/12/2012
Receipts Amount(Rs) Payments Amount (Rs)
By Stationary 15,000
Additional information:
1. Creditors for stationary on 31/12/2012 Rs. 5,000.
2. Opening balance of stationary Rs10,000.
3. Closing balance of stationary Rs.15,000.
204. Differentiate between Receipt and Payments account and Income and Expenditure account
on three points. [3]
205. Mr. Sahil has prepared the accounts showing closing stock at Rs. 65,000 which is Rs.
10,000 more than its market value so that higher profits are shown, which in turn will help
getting better loan from bank. Identify and explain the accounting principle violated by Mr.
Sahil and also write one value associated with violation of such principle. [3]
206. Explain qualitative characteristics of Accounting Information. [4]
207. What are Accounting Standards? Enlist any four utilities of accounting standards. [4]
208. Prepare Bank reconciliation statement on the basis of following information: [4]
(i) On 31st March 2017Bank Passbook of Mohan Showed a balance of Rs. 15000 to his
credit.
(ii) Before the date, he had issued cheques amounting to Rs. 8000, of which cheques
amounting to Rs. 3200 have so far been presented for payment.

(iii) A cheque of Rs. 2200 paid by him into the bank on 26th March is not yet credited in
the pass book.
(iv) He had also received a cheques for Rs. 500 which a/though entered by 'him in the
bank column of Cash book, was omitted to be paid into the bank.
(v) On 30th March a cheques for Rs. 1570 received by him was paid into the bank but
the same was omitted to be entered in the cash book.
(vi) There was a credit of Rs. 150 for interest on Current account and a debit of Rs. 25
For bank charges.
209. Rectify the following errors by fill in the missing figures: [4]
S.N. Particulars LF Dr Cr
1 Repair A/C Dr _____
_______ A/C Dr 9500
To Purchase A/C 1000
To __________
(amount payable to Gobind)
Ram for repairs done to radio Rs. 1500 and radio
supplied for Rs. 9500 were entered in the purchase
book as Rs. 10000, now rectified).
2. ________ A/C Dr _____ _____

To _________ A/C
(An item of Rs. 5000 relating to prepaid insurance
A/c was omitted to be brought forward from the
previous year's books, now rectified)
3. Bhardwaj A/C Dr 1430
To ________A/C ____
To _________A/C ____
(Goods of Rs. 850 was returned to Bhardwaj, it was
recorded in purchase book as Rs. 580, now rectified)
4. _______A/C Dr.
To Purchase A/C _____
To ________ 5600
(Furniture amounting Rs. 6500 purchased on credit ____
from ABC entry for Rs. 5600 was passed in the
purchase book now rectified)

210. What is meant by accounting information system (AIS)? Enlist four advantages of
Computerized Accounting. [4]
211. Pass journal entries for the following transactions: [6]
2017
April 1 Started business by raising a bank loan of Rs. 5.00.000.
April 5 Goods of Invoice value Rs. 1,00,000 were purchased at 10% trade discount
and 5% cash discount from Kapil. ½ the amount was paid through cheque.
April 15 Total salary due Rs. 15,000 out of which salary of Rs. 12,000 could be only
paid by cheque.
April 17 Goods of Rs 2,50.000 were sold to Tarun of which 3/4th received for cash.
April 20 Interest received for cash Rs. 800.
April 22 Bank charges charged by bank Rs. 250.
April 28 Cash withdrawn from bank for personal use Rs. 1200.
212. Swaraj limited purchased a plant for Rs. 6,00,000 on July 1st 2016 and spent Rs. 2,00,000
on its installation. Another plant was purchased on 1st April 2017 for Rs. 3,00,000. On
October 1st 2017, 174th part of the plant purchased on July 1st 2016 become obsolete and
sold at a loss of Rs. 5,000 and a new plant was purchased with the realized value of obsolete
plant by adding Rs. 29,250. Depreciation is chargeable @10%p.a. under diminishing
balance method on December31st of every year. Prepare plant account for two years clearly
showing the workings. [6]
213. Mukta sold goods of Rs. 98,000 to Sanyukta on 01/07/2013. Sanyukta paid Rs. 5,000 by
cheque and accepted a bill of Rs. 90,000 for three months in full settlement of her account.
After one month Mukta purchased goods of Rs96,000 from Ganesh and endorsed the bill in
favour of him in full settlement of her account. On due date Sanyukta failed to meet the bill
and Ganesh paid a noting charges of Rs600. Pass journal entries in the books of Mukta,
Sanyukta and Ganesh. [6]
214. Parul, a STD booth owner keeps her accounts on single entry system. She wants to know
the results of her business on 31st March 2013 and for that following information is
available:
1st April 2012 1st April 2013
(Rs) (Rs)
Cash in hand 300 350
Bank Balance 1500 1600
Furniture 2000 2000
Stock 1500 2500
Creditors 700 800
Debtors 5000 6500

During the year, she had withdrawn Rs1500 for her personal use and invested Rs 2500 as
Additional capital. Calculate her profits on 31st March 2013 and prepare the statement of
affairs as on date. [6]
215. (a) What are the basic components of a computer?.
(b) Explain four points for importance of computers in accounting. [6]
216. From the following Receipts and Payments Account and additional information of Rotary
Club for the year ended 31st March 2017. Prepare Income and Expenditure A/c for the year
ended 31st March 2017 and Balance Sheet as on that date- [8]
DR. RECEIPTS AND PAYMENTS ACCOUNT
Receipts Amount (Rs.) Payments Amount (Rs.)
Balance b/d 25,00 Salary 6,000
Subscriptions – Newspaper 4,100
2015 – 16 2,400
2016 – 17 53,000
2017 – 18 1,000
Entrance Fees 2,500 Electricity BILL 2,000
Municipal Grant 20,000 Fixed Deposit (on 01-1-
17 @ 9% p.a.) 40,000
Sale of Old Furniture (Book 11,400
value Rs. 8,000) Books 21,200
Rent 13,600
Furniture 21,000
Balance c/d 7,400
1,15,300 1,15,300
Additional Information -
1) Subscriptions outstanding as on 31 and 31-03-2017 Rs.6,000.
2) On 31-03-2016 Salary Outstanding was Rs. 900 and on 31-03-2017 was Rs. 1,200.
The Club owned Furniture Rs.30,000 and Books Rs.14,000 as on 01-04-2016.
OR
(A) What are the different sources of funds for Not For Profit organizations. Explain any
three such sources and classify their nature into Capital or Revenue receipt.
(B) Explain the concept of fund based accounting with the help of an example. (4+4)
217. (a) Total of credit side in Profit and loss account exceeds debit side by Rs1,10,000.
Raghav a sole proprietor wants to allow a commission of 10% on net profit to his
manager Kapil after charging his commission on net profit. Calculate Kapil's
commission on net profit and show it in financial statements of Raghav.

(b) What adjustment entries are passed for the following?

1. Depreciation.
2. Outstanding Expenses
3. Interest on capital
4. Goods distributed as free samples. (4+4)
OR
The Following is the Trial Balance of Sh. Ansh Shokeen as at 31st March 2017. Prepare
Trading and Profit & Loss Account and Balance Sheet form the same.
Dr. Balance Rs. Cr. Balance Rs.
Materials Purchased 115725 Sales 210000
Administration Expenses 16725 Outstanding Wages 800
Wages 4277 Creditors 39535
Freight 5100 Capital 81800
Rent 3100 Bank 12220
Petty Cash 175 Loan on Mortage 16000
Debtors 36400 Income From Investments 925
Gift to Wife 2500
Prize Distributed 200
Commission Paid 1000
Commission Paid in 400
Advance
Mortgage Interest 1600
Loose Tools 5000
Investments 8500
Plant 60000
Furniture 7200
Leasehold Property 50000
Patents 2000
Depreciation on Furniture 800
Suspense Account 2080
361280 361280
1. Closing Stock amounted to Rs. 20000.

2. Goods Costing Rs 5000 were sent to a customer on Sale on Approval Basis for Rs.
6400 on 29th March 2012 and had been recorded in the books as actual sales.
3. Make a Provision for Doubtful Debts at 5% on debtors
4. 1/5th of Loose Tools are to be written off this year

5. General Manager is to be allowed a Commission of 5% on Net Profit before
charging his commission [8]
218. If the owners capital is Rs. 2,40,000 and other liabilities are Rs.1,20,000, cash in hand is
Rs.60,000,Total assets of the firm will be ............... [1]
219. If accounting information is based on facts and it is verifiable by documents it has the
quality of ................. [1]
220. Purchase refers to the purchase of [1]
a) Goods for resale
b) stationary for office use
c) Assets for the factory
d) none of the these
221. Due to which of the following, contingent liabilities are shown in balance sheet: [1]
a) Dual aspect concept
b) Convention of full disclosure
c) Convention of materiality
d) Going concern concept.
222. Cash discount is: [1]
a) Which is received at the time of making the payment.
b) Which is allowed at the time of sale of goods.
c) Which is received at the time of purchase of goods
d) Which is received both at the time of making the payment and purchase of goods.
223. At the end of financial year, during which sale of goods was worth Rs. 5,00,000, the closing
stock is valued at Rs 40,000. This is ........... [1]
a) An event
b) A transaction
c) Both an event as well as transaction
d) None of a and b
224. Only credit transaction are recorded under accrual Basis of Accounting (true/false.) [1]
225. The nature of outstanding salary account on the basis of traditional approach of double entry
system is ....... [1]
226. Credit purchase of furniture will be recorded through voucher 1
a) Debit voucher
b) credit voucher
c) cash voucher
d) transfer voucher

227. The book value of asset was after charging 3 year depreciation @ 10% p.a. by diminishing
balance method is Rs.7290.What was the cost of machine [1]
a) 10,000
b) 11,000
c) 8,000
d) 9,000
228. Goods worth Rs 7000 given away as charity would be credited to: [1]
a) Sales A/c b) Purchases A/c
c) Charity A/c d) Trustee A/c
229. 'Cash Memo 'is an example of accounting voucher (True/False} [1]
230. The process of transferring the accounts from the journal to the ledger is called [1]
231. Which item shows a debit balance in the Trial Balance? [1]
a) Purchase Return
b) Salary outstanding
c) Sales
d) Prepaid Expenses
232. Cash book is an example of General Journal. (True/false) [1]
233. What will be the percentage of depreciation under SLM in the following case: [1]
Original cost of Machine- Rs 1,50,000
Salvage value after 9 years- Rs 15000
Repair charges in 2nd year- Rs 10000
a) 11.11% b) 10%
c) 10.34% d) 9.37%
234. Depreciation is provided even if there is loss in a financial year (True/False) [1]
235. The person in whose favour an endorsement is made is called ....... [1]
236. Trial Balance is list of balance of [1]
a) all accounts
b) only personal and real account
c) only real and nominal account
d) only personal account [1]
237. Liability for a discounted bill is a [1]
a) Contingent liability
b) Fixed Liability
c) Current liability
d) None of the above

238. Differentiate between provision and reserves on the basis of [3]

i) Appropriation or charge
ii) Financial position
iii) Distribution
239. a) Why the income is collected through GST is a liability and not an asset?
b) What is Imprest system of petty cash Book? [1+2=3]
240. Explain the four qualitative characteristics of accounting information. [4]
OR
Explain the four limitations of Accounting
241. (a) A company purchased goods for Rs 5,00,000 and sold 80% of such goods during the
year. The market value of remaining goods was Rs 90,000. The Company valued the
closing stock at cost. Which principle is being violated? Explain it.
(b) Production at factory had to stop work for week due to labour strike. The owner
estimate 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 in business? Give reason (2+2)
OR
In a Business provision for doubtful debts is created @ 5% on debtors every year. Name the
two accounting principles followed in this process and explain them.
242. What are accounting standards? Explain any three objectives of Accounting Standards. [4]
243. "Cash basis of accounting is not a better basis for depicting the correct financial position of
an enterprise." Do you agree? Give reasons in support of your answer. [4]
244. Y started business on 1st April,2015 with a capital of Rs 200000 and a Loan of Rs 75,000
from the bank. During the year, he had introduced additional capital of Rs 60000 and had
withdrawn Rs 36000 for personal purposes. On 31st March, 2016 his assets were Rs
380000. Find out his capital as on 31st March, 2016 and profit earned during the year 2015-
16. [4]
245. Record the following transactions in a Cash Book with Cash and Bank Columns. [6]
Date Rs
2017,Jan 01 Cash-in-Hand 2,000
Cash at Bank 50,000
2 Received a cheque from Naresh 1000
5 Bought goods for Rs 75,000: Trade
Discount 20%, payment made by cheque.
(CGST-6%, SGST-6%)

15 Cheque received from Naresh endorsed to Suresh in full

settlement of his account of 1,050.
16 Paid LIC premium of Mr Mohan (Proprietor) 100
17 Received a cheque from Pawan in full settlement of his 700
account of Rs 750 and
deposit in to bank on the same day.
25 Sold goods for Rs 40000, Trade Discount 15%; (CGST-6%,
SGST-6%); Received a Cheque for the same.
28 Pawan cheque returned dishonoured by Bank
30 Deposit into Bank, balance of cash in excess of Rs 250
246. Journalise the following:
a) Rs 10000 due from Rohit are now bad debts.
b) Goods worth Rs 20,000 were used by the proprietor.
c) Charge Depreciation @10% p.a. for two months costing Rs 300000
d) Provide interest on capital on Rs15,00,000 at the@ 6% p.a. for 9 months.
e) Rahul who owed us Rs 20,000 becomes insolvent and a final dividend of 60 paise in
a rupee is received from his estate by cheque.
f) Goods costing Rs 80,000 sold to Mohan for Rs 1,00,000.(6)
247. From the following particulars, prepare Bank Reconciliation Statement as on December 31,
2016: [6]
(A) Debit balance as per Cash book Rs. 12,000
(B) A cheque for Rs. 1000 issued in favour of Mohit has not been presented for
payment.
(C) A bill for Rs. 800 retired by bank on our behalf under a rebate of Rs. 50, the full
amount of the bill was credited in Cash Book.
(D) A cheque for Rs, 400 deposited in bank has been dishonoured.
(E) A sum of Rs. 800 deposited in the bank has been credited as Rs. 80 in 'the Pass
Book.
(F) Payment side of Cash book has been undercast by Rs. 200.
248. On 1st January, 2013 satish sold goods to Harish for Rs. 60,000. Harish accepts two bills of
Rs.25,000 for 2 months, and Rs. 35,000 for 3 months. The first bill discounted from bank on
3rd January, 2013 from bank for Rs.24,900 and second bill endorsed to Rajneesh on 15th
January 2013. First bill met on maturity but second bill get dishonored and noting charges
of Rs.200 being paid. Satish charged Rs 300 as interest and drew another bill for the bill

amount of further two months. This bill was met on maturity. Pass the necessary journal
entries in the books of Satish [8]
OR
P sold goods to Q for Rs.10,000 on January 1, 2018 and on the same day draws a bill on Q
for the same amount for 3 months. Q accepts it and returns it to P, who discounts it on 10th
January, 2018 with his bank for Rs.9850.[ The acceptance is dishonored on the due date and
the noting charges were paid by bank being Rs.50. On 4th April, Q paid Rs.2,050 (including
noting charges) in cash and accepted a new bill at 3 months for the amount due to P together
with interest @ 12% p.a. Pass journal entries in the books of P.
249. A company whose accounting year is the calendar year, purchased on 1st April, 2013
machinery costing Rs. 30,000. It purchased further machinery on 1st October, 2013 costing
Rs. 20,000 and 1st July, 2014, costing s. 10,000.
On 1st January, 2015, one – third of the machinery which was installed on 1st April, 2013
became obsolete and sold for Rs. 3000.
Depreciation is provided at 10% on the Original cost each year. Show the Machinery
Account for three years. [8]
OR
Rohini Cement Limited purchased on 1st April, 2012 a plant for Rs. 80,000 on 1st July,
2013 it purchased additional plant costing Rs. 48,000. On 1st December, 2014 the plant
purchased on 1st April.2012 was sold off for Rs.42,000 and on the same date fresh plant
was purchased at cost of 75,000.
Depreciation is provided at 10% p.a. on the Diminishing Balance Method every year.
Accounts are closed each year on 31st March.
Show the Plant Account for three year.
250. What is meant by Accounting? [1]
251. Which of the following is not a current liability? [1]
(a) Salary outstanding
(b) Bills Payable
(c) Creditors
(d) Bank loan
252. Mr. Amit got an advance of Rs. 10,000 in April 2018 for sale of goods in June 2018.When
will the revenue be recognized for this transaction. [1]
253. Pass journal entry for the below transaction:
Received Rs. 600 from Ram which were written off as bad debts two years ago. [1]

254. Prepare a capital account of Sita from the following transactions [1]
(a) Started business with cash Rs. 50,000
(b) Drawings during the year Rs. 5,000
(c) Loss during the year Rs. 3,000.
255. Differentiate between Cash discount and trade discount on the basis of its objective. [1]
256. While returning the goods bought from seller, firm prepares [1]
(a) Debit note
(b) Credit note
(c) Invoice
(d) Cash Memo
257. Classify the following account into personal, real and nominal [1]
(a) Bank
(b) Wages
258. Goods costing Rs. 1,000 (Sales price Rs. 1500) were destroyed by fire. Pass journal entry
for the mentioned transaction. [1]
259. Draw an accounting equation for the following transaction Paid interest on Bank loan Rs.
1,000 and instalment of loan Rs. 10,000 [1]
260. Which of the following errors is revealed by the Trial Balance: [1]
(a) Wrong amount entered into the book of Original entry
(b) Wrong amount posted in the ledger account
(c) Complete omission of an entry from the books of original entry
(d) When accounting principle is violated while recording a transaction in the books of
Account.
261. If the imprest Amount is Rs. 5000. What will be the amount of reimbursement if following
expenses were incurred by the petty cashier during the month are:- Wages Rs.1450,
Tiffin Rs.1050, Small Repairs Rs.500, General expenses Rs.400. [1]
(a) Rs.1600
(b) Rs. 3050
(c) Rs. 3400
(d) Rs. 3000
262. Which GST is paid at the time of purchase of goods? [1]
263. Explain the following: [3]
(a) What is the objective of Accounting Period Principle?
(b) What is verifiable concept?
(c) Why we don't record non-monetary transactions in Accounting?

OR
Explain qualitative characteristics of accounting information, (any three)
264. Prepare Bank Reconciliation Statement as on 31st March,2019 from the following
information: [4]
(i) Credit balance as per Pass Book Rs. 3,450.
(ii) Cheques deposited into bank Rs. 8,500 but cheques for only Rs.6,850 were credited
by bank till date.
(iii) Bank credited Rs. 200 for interest but debited our account with Rs.120 towards bank
charges. But no entry passed in cash book
(iv) A customer deposited Rs. 800 in our bank account is recorded twice in the cash
book.
OR
Record the following transactions in the appropriate subsidiary books of Italian Furniture
Mart:
2019
Jan. 3 Bought from Welcome Furnitures, Delhi
2 Dinning Table @ Rs.1500 each
20 Chairs @ Rs. 300 each
Trade Discount 10%
Jan. 8 Sold to Laxmi Furnitures, Delhi
3 Almirahs @ Rs. 2,000 each
10 centre Tables @ Rs. 400 each
Less: 15% Trade discount
Jan. 9 Sold goods for cash Rs. 6,000
265. Pass rectification entries for the following by opening Suspense Account: [6]
(i) Purchase of goods from Mr.Raees amounting to Rs.25000 has been wrongly passed
through the sales book.
(ii) Goods purchased for proprietors use for Rs.1000 was debited to purchases account.
(iii) Interest on deposits received rupees 60 had been debited in cash book but had not
been credited to the interest account.
(iv) The motor car had been purchased for rupees 3400. Cash had been correctly credited
but motorcar account had been debited with Rs.3140 only.
(v) The purchase day book is undercast by Rs. 1500
(vi) Sold old furniture for Rs. 3500 passed through the sales book

266. Enter the following transactions in the TWO column Cash Book of Mr. Sohan :-
2019 Particulars Rs.
Dec
1 Started business with cash 50,000
2 Pays into bank 29,000
3 Received cheque from Raja and co. 800
Discount allowed 20
5 Withdrew cash from bank for private use
10 Purchased goods for Rs 1,00,000; Payment 240
made by cheque
12 Sold good for Rs 1, 50,000, trade discount
20%; payment received by cheque
14 Received cheque from kamla 395
Discount allowed 15
16 Kamla's cheque endorsed to bala in full
settlement of her account of Rs 425
29 Paid rent by cheque 1,000
30 Deposited into bank, balance of cash in excess of 450
267. On Jan.15, 2019 Seema sold goods Rs.30, 000 to leena and drew upon the later a bill for the
same amount payable after 3 months. The bill was accepted by leena. The bill was
discounted by Seema from his bank for Rs. 29,250 on Jan%3lsth 2019. On maturity the bill
was dishonored. He further agreed to pay Rs. 10,500 in cash including Rs. 500 interest and
accept a new bill for two months for the remaining Rs. 20,000. The new bill was endorsed
by Seema in favour of his creditor Sushila for setting a debt of Rs. 20,800. The new bill was
duly met by leena on maturity. Record the necessary journal entries in the books of Seema.
[6]
OR
Differentiate between Bills of Exchange and Promissory Note on the basis of
(a) Meaning (b) Parties
(c) Noting (d) Acceptance
(e) Liability of maker (f) Payee
268. (i) Differentiate between IFRS and IAS. (Any three points.) [6]
(ii) Explain the following limitations of accounting:
(a) Based on personal Judgement
(b) Suffers from window dressing
(c) Lacks qualitative information

269. On 1st April 2016, Zee ltd. Purchased a machinery for Rs. 8,00,000. On 1st January 2018, a
part of machinery purchased on 1st April 2016 for Rs.1,00,000 was sold for Rs. 55,000 and
new machinery at a cost of Rs.1,30,000 was installed on the same date. Company charged
depreciation @ 10% on original cost method. Give Journal entries for three years ending
31st March 2019 assuming that Provision for depreciation a/c is not maintained. [8]
OR
The following balances appear in the books of crystal limited on January 1, 2018
Machinery Account Rs. 15,00,000
Provision for depreciation Rs. 5,50,000
On April 1st 2018 a machinery which was purchased on January 1 2015 for Rs. 2,00,000
was sold for Rs.75,000. A New machine was purchased on July 1 2018 for Rs.6,00,000.
Depreciation is provided on machinery at 20% per annum on straight line method and books
are closed on December 31st every year. Prepare the machinery account, Machinery
Disposal A/c and provision for depreciation account for the year ending 31 Dec 2018.
270. Which accounting concept is totally ignored in single entry system? [1]
271. White washing charges on a newly constructed building is a____ (capital / Revenue)
Expenditure. Give reason in support of your answer. [1]
272. Cost of goods sold is Rs. 2,25,000. If a firm earns 25% gross profit on sales, its sales will be
[1]
(a) Rs. 3,00,000
(b) Rs. 2,81,250
(c) Rs. 1,68,750
(d) None of these
273. Pass a closing entry for the following Accounts: [1]
Salaries – Rs. 10,000. Depreciation – Rs. 5,000;
Advertisement – Rs. 3,000
274. Give one example of contingent liability [1]
275. Give to examples of commonly used system software. [1]
276. The IQ of computer is [1]
(a) 1,000
(b) 0
(c) 1,00,000
(d) 100

277. Find cost of good sold and closing stock from the following information Sales Rs. 4,30,000,
Returns Inward Rs. 5,000. Gross profit Rs. 1,00,000; Opening Stock Rs. 35,000; Purchases
Rs. 2,85,000. Wages Rs. 27,000; other Direct Expenses Rs. 16,000. [3]
278. Differentiate between Manual Accounting and Computerised Accounting. (any three points)
[3]
279. Explain the following types of software: [3]
(a) Customised Software
(b) Readymade Software
(c) Tailormade Software
280. Sumit started his business with a capital of Rs. 50,000 and maintains his books on Single
Entry system. [4]
Following information is available at the end of the year:-
Assets and Liabilities Amount
Cash in Hand 6,300
Bank 6,900
Sundry Debtors 24,300
Stock 30,800
Furniture 20,000
Sundry Creditors 18,500
During the year he withdrew Rs. 500 in cash and Rs. 250 in goods each month. He received
Rs. 10,000 as pension from government during the accounting year but he invested only Rs.
6.500 into business out of his pension money. Ascertain the profit or loss made by him
during the accounting period 2018-19.
281. From the Trial Balance of M/s Sushma& sons as on 31.03.2019. Prepare Trading a/c. Profit
and Loss a/c and Balance Sheet. [8]
Particulars Rs. Particulars Rs.
Cash at bank 6,000 Capital 50,000
Cash in hand 900 Sales 1,77,000
Advertisement 2,000 Creditors 25,000
Rent, Rates & Taxes 10,000 Rent Received 525
Carriage on sales 1,200 Purchase 750
Carriage on Purchase 750 Return
Manufacturing wages 10,000
Salaries 6,000

Sundry Debtors 45,000

Bank Charges 75
Discount 350
Opening Stock 30,000
Sales Returns 1,000
Purchases 60,000
Plant & Machinery 60,000
Loan to Ram 20,000
Total 2,53,275 2,53,275
Adjustments:
a. Closing Stock Rs. 35,000.
b. Charge 20% of the Advertisement this year.
c. Charge interest on Loan to Rs @9% p.a.
d. Create 5% provision for bad and doubtful debts
OR
Following are the balance from the trial balance of Rakesh Traders as 31st March 2019.
Particulars Rs. Particulars Rs.
Opening Stock 5,620 Interest on securities 6,400
Purchases 1,54,200 Land and Building 10,00,000
Sales 3,74,800 Securities 6,00,000
Wages 1,26,000 Cash in hand 25,600
Carriage Inward 900 Bank overdraft 3,45,000
Freight on Purchase 4,900 Discount allowed 1,500
Salaries 8,000 Discount Received 420
Insurance 2,800 Bills payable 4,000
Repair to Machinery 1,400 Loan (Cr) 11,000
Drawings 5,600 Bills receivable 7,000
Customers A/c 15,800 Capital Account 13,47,600
Postage 500 Supplier’s A/c 40,000
Trade expenses 1,000 X’s loan (cr) 18,600
Plant and Machinery 1,82,000
Total 2,53,275 2,53,275
Prepare Trading and Profit and Account for the year ended 31st march, 2019 and Balance
sheet as at that date after taking into account the following adjustments:
(a) Closing stock was valued at Rs 19,000

(b) Depreciation to be provided on Land and Building @ 5% p.a. and on Plant and
Machinery @ 10% p.a.
(c) Write off Rs 2,000 as Bad Debts.
(d) Insurance was Prepaid Rs 700
(e) Create provision for doubtful debts @ 5% on debtors.
(f) Wages include Rs 4,800 for Installation of a new machinery.
282. State any one limitation of computer. [1]
283. If the whole benefit of expenditure is exhausted within the accounting period, it is termed
as............. Expenditure. (Fill in the Blanks) [1]
284. If there is no opening or closing stock, the total of purchases and direct expenses it taken as
cost of goods sold. (true or false) [1]
285. Give the formula for calculating operating Profit. [1]
286. If sales is Rs 1,00,000 and Gross profit is Rs 20,000 then calculate the percentage of gross
profit on cost of goods sold. [1]
287. Credit purchase during the year is ascertained by preparing: [1]
(a) Total Debtors account
(b) Total Creditors account
(c) Cash account
(d) Opening Statement of affairs
288. Nipun’s Trial Balance provide you the following information: [1]
Debtors Rs 2,40,000
Bad Debts Rs 6,000
Provision for doubtful Debts Rs 10,000
It is desired to maintain a provision for bad debts of Rs 3,000. state the amount to be
debated/credited in profit and loss account.
(a) Rs 13,000 (Debit)
(b) Rs 13,000 (Credit)
(c) Rs 1,000 (Credit)
(d) Rs 1,000 (Debit)
289. If a firm believes that some of its debtor may ‘default’. In such a case a provision is already
made in the books of the firm to records all anticipated losses. This concept is: [1]
(a) Going concern
(b) Cost concept
(c) Conservatism/Prudence
(d) Matching.

290. Which of the following is not a current asset: [1]

(a) Debtors
(b) Cash
(c) Prepaid Expenses
(d) Furniture
291. State the meaning of Trade Discount. [1]
292. Give any one example of internal user of Accounting information. [1]
293. If a bill dated March 5 is payable 30 days after date it, Falls due on................ (Fill in the
blanks). [1]
294. Decline in the value of coal mine due to extraction is termed as: [1]
(a) Amortisation
(b) Depletion
(c) Depreciation
(d) Obsolescence
295. Credit sale to Mohan Rs 20,000 was posted to his account as Rs 25,000. It is: [1]
(a) Error of commission
(b) Error of omission
(c) Error of principle
(d) Copensating Errors
296. Does credit mean always decrease and Debit mean always increase? Give reason. [1]
297. The periodic total of the sales return book is posted to the: [1]
(a) Debit of sales account
(b) Debit of sales return account
(c) Credit of sales return account
(d) Debit of debtors account
298. Which of the following statement is false: [1]
(a) Installation expenses of machinery paid in cash should be credited to cash account.
(b) Installation expenses on machine should be debited to installation expenses account.
(c) Installation expenses on machine should be debited to machine account.
(d) a and c both.
299. According to a firm’s accountant, Reserves are created to meet future expenses or losses the
amount of which is not certain. Is accountant correct? [1]
300. Bank Reconciliation statement is prepared: [1]
(a) At the end of each week
(b) at the end of each year
(c) at the end of each month
(d) whenever a bank statement is received

301. Balance of petty cash book is: [1]

(a) Expense
(b) Profit
(c) Asset
(d) Liability
302. “Accounting information system is important component of the organisational MIS in an
organisation” Comment it. [3]
303. Prepare accounting equation on the basis of following: [3]
(a) Started business with cash Rs 40,000 Goods Rs 50,000 and furniture Rs 75,000.
(b) Charge Depreciation @ 10% on furniture.
(c) Goods costing Rs 10,000 sold for Rs 11,000 in cash.
OR
Give an example for each of the following types of transaction:
(a) Decrease in asset and owner’s capital.
(b) Increase in one liability and decrease in another liability.
(c) Increase in assets and liability.
304. 23. Define the following terms: [4]
(a) Business transaction
(b) Intangible assets
(c) Voucher
(d) Goods
305. Qualitative characteristics of accounting are the attributes of accounting information which
tend to enhance its understandability and usefulness. Explain it. [4]
OR
If office rent for the month of December 2018 is paid in January 2019, it would be recorded
in the book of the firm in January 2019. similarly sale of goods on credit in the month of
January 2019 would not be recorded in January but recorded in April, 2019 when the
payment of sale is received.
Identify the basis of accounting used in the above statement and clarify is it a more
appropriate basis of accounting?
306. Pass journal entries to rectify the following errors: [4]
(a) Bought goods from Neeraj Rs 15,000 recorded as Rs 32,000.
(b) Sales return book was undercast by Rs 3,000.
(c) Salary payable to Amar Rs 12,000 was not recorded in the books.
(d) Sold goods to Sapna Rs 17,000 was recorded in the purchase book.

307. Journalise the following transactions in the books of Kapil, Delhi. [4]
(a) Telephone charge Rs 4,720 (including GST @ 18%)
(b) Bank loan Rs 25,000 paid along with interest Rs 1500 (ignore GST)
(c) Income tax Rs 12,000 paid by cheque.
(d) Goods returned to Sohan, Haryana Rs 30,000 which was purchased @ 18% GST
extra.
308. Write any four advantages of computerised accounting system (automation) is brief. [4]
309. Abhinandan Ltd. Bought a machinery on 1st August 2017, costing Rs 90,000. It purchased
further machinery on 1st December 2017 costing Rs 60,000 and on 1st October 2018 it
bought machine costing Rs 40,000.
On 1st April 2019, one third part of the machinery bought on 1s0t august 2017 was sold for
18000 as it became of obsolete. show the machinery account for three years ended 31st
March 2018 to 31st March 2020 company is charging Depreciation @ 10% P.a. as Per
Straight Line Method.
310. Prepare cash book from the following information in the books of Mamta.
Date Particulars Rs
2019 Cash in hand 7,200
March,1 Bank overdraft 1,700
5. Purchase goods for cash 1,500
9. Cash Deposited into bank 2,000
15 Goods sold on credit to Sanjay 7,500
20 Cheque received from Sanjay 7,500
25 Sanjay’s cheque Deposited into bank 500
30 Bank Charges
OR
State the meaning of journal proper or general journal. clarify the transactions to be recorted
in it with examples.
311. Kundan maintains incomplete records of his business. His books provide the following
information: [8]
Particulars 1-4-2018 31-3-2019 (Rs)
Cash in hand 4,50.000 5,25,000
Bank balance 22,50,000 18,00,000
Land 3,00,000 3,00,000
Stock 15,00,000 13,50,000
Creditors 10,50,000 12,00,000
debtors 7,50,000 9,00,000

Personal expenses of Kundan paid for business amounted to Rs 14,40,000 and goods worth
Rs 60,000 were withdrawn by him for personal use. he sold his gold chain of 3,00,000 at
5% premium and introduced that amount into business.
prepare his opening statement of affairs, closing statement of affairs and statement of profit
and loss for the year ended 31st March 2019.
312. From the following particulars, prepare Bank reconciliation statement as on 31st March,
2019. [8]
(i) Pass book showed a credit balance of Rs 12,560.
(ii) Cheque paid into bank but omitted to be recorded in cash book Rs 3,200.
(iii) The payment side of bank column of cash book was undercast by Rs 200.
(iv) There was a debit of Rs 300 for bank charges and a credit of Rs 700 for interest
allowed by bank.
(v) Cheque amounting tRs 8,500 were issued out of which cheques amounting to Rs
2,500 were presented for payment in April.
(vi) Cheque issued to a customer return dishonoured on technical ground Rs 1,000.
(vii) AB/R of Rs 8,000 discounted with bank was entered in the cash book without
recording the discount charges Rs 200.
(viii) Two cheque for Rs 800 each were issued to seller of goods but only one cheque was
recorded in cash book.
OR
On 1st January 2019, Tarun sold goods to aditya for Rs 80,000 and drew to bills for Rs
20,000 and Rs 60,000 for three months each. The first bill was discounted immediately from
bank@10% p.a. and second bill was endorsed to Hemender . Both the bill were
dishonoured on due date. Noting charges paid by bank were Rs 100 and paid by Hemender
were Rs 200. Aditya paid the payment of first bill along with noting charges and accepted a
new bill for the balance due for two months along with interest @ 12% P.a. on 04/04/19.
Tarun endorsed the bill to Kamal on due date Aditya paid the amount. Give journal entires
in the books of Tarun.
From the following trial balance and additional information, prepare trading and profit and
loss account and a balance sheet on March 31st 2019.
Particulars Dr. (Rs) Cr. (Rs)
Wages 14,000 80,000
Capital
Building 60,000
Furniture 10,000
Computer 8,000
Return inwards and outwards 4,000 2,000

Stocks on 1st April, 2018

Purchase and sales 20,000
Bad debts
Carriage 72,000 1,20,000
Repair 800
Bad debts provision 4,000
Bank loan @ 10% p.a. (1-4-2018) 3,000
Interest on bank loan 2,600
Commission 12,000
Insurance and taxes
Computer expenses 600
Salaries
Cash in hand 4,800
Debtors and creditors 5,200
13,200
4,000
24,000 29,000
2,47,600 2,47,600
Adjustments:
(i) Closing stock on 31-03-2019 was Rs 28,400.
(ii) Salaries have been paid for 11 months.
(iii) Commission included Rs 400 being commission received in advance.
(iv) Write of Rs 400 as further bad debts and maintain bad provision at 5% on book
debts.
(v) Interest on capital is allowed @ 6% p.a.
(vi) Depreciate furniture by 5% and computer by 10%.
313. Which of the following is not a fixed asset?
(A) Building
(B) Furniture
(C) Goodwill
(D) Balance with bank
314. Which is the last step of accounting as a process of information?
(A) Recording of transactions
(B) Preparation of financial statements
(C) Communication of information
(D) Analysis and interpretation of information

315. Use of common unit of measurement and common format of reporting promotes:
(A) Comparability
(B) Understandability
(C) Relevance
(D) Reliability
316. Purchase refers to the buying of
(A) Stationery for office use
(B) Assets for the factory
(C) Goods for resale
(D) Investments
317. The nature of capital is
(A) An asset
(B) A liability
(C) An income
(D) An expense
318. Out of the following assets, which one is not an intangible asset?
(A) Investment
(B) Goodwill
(C) Patents
(D) Trade marks
319. A concept that the business will not be liquidated in the near future is known as
(A) Money measurement
(B) Going concern
(C) Business entity
(D) Historical cost
320. According to the business entity concept
(A) transactions between the business and its owners are not recorded.
(B) transactions between the business and its owners are recorded considering them to
be one single entity.
(C) transactions between the business and its owners are recorded from the business
point of view.
321. The convention of Conservatism takes into account
(A) all prospective profits and losses
(B) all prospective profits and leaves out prospective losses
(C) all prospective losses but leaves out prospective profits

322. If one aspect of a transaction is not recorded, which accounting concept is not followed?
(A) Revenue Recognition
(B) Dual Aspect
(C) Prudence
(D) Cost
323. Which account will be debited in case wages are paid for installation of machinery?
(a) Machinery A/c
(b) Installation A/c
(c) Wages A/c
(d) Cash A/c
324. Under which accounting concept, quality of manpower is not recorded in the books of
account?
(A) Revenue recognition
(B) Consistency
(C) Full disclosure
(D) Money measurement
325. According to which of the following concepts, in determining the net income from business,
all costs which are applicable to the revenue of the period should be charged against that
revenue?
(A) Conservatism
(B) Matching
(C) Dual aspect
(D) Business entity
326. On 31" March, 2021, a business has assets worth Rs. 8,00,000 and liabilities Rs. 50,000.
Find out the capital?
(A) Rs. 7,50,000
(B) Rs. 14,00.000
(C) Rs. 13,50,000
(D) Rs. 2,00,000
327. Match the following:
Column I Column II
(a) Rent received (i) Personal
(b) Machinery (ii) Personal
(c) Accrued interest (Hi) Nominal
(d) Outstanding salaries (iv) Real

Codes
(A) (a)-(i), (b)-(ii), (c)-(iii), (d)-(iv)
(B) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)
(C) (a)-(iv), (b)-(iii), (c)-(i), (d)-(ii)
(D) (a)-(iii), (b)-(ii), (c)-(iv), (d)-(i)
328. Lalit, who owed Rs. 20,000 became insolvent. 70 paise in a rupee was received from his
estate. Bad debits account will be debited by
(A) Rs. 20,000
(B) Rs. 10,000
(C) Rs. 14,000
(D) Rs. 6,000
329. Paid salary to Kapil Rs. 30,000, the account to be debited is
(A) Kapil's A/c
(B) Salary A/c
(C) Cash A/c
(D) Bank A/c
330. Rent outstanding Rs. 5,000, the account to be credited is:
(A) Rent A/c
(B) Rent outstanding A/c
(C) Cash A/c
(D) Capital A/c
331. When an entry is made in Journal:
(A) Assets are listed first
(B) Accounts to be credited are listed first
(C) Accounts to be debited are listed first
(D) Accounts may be listed in any order
332. On 1" April, 2020 Anil started business with Rs. 5,00,000. He purchased goods costing Rs.
50,000. He paid rent Rs. 10,000 and insurance Rs. 3,000. He sold goods for cash Rs. 20,000
and on credit to Jatin Rs. 10,000. Furniture purchased amounted to Rs. 37,000. He also
purchased stationery worth Rs. 500. He received Rs. 9,500 from Jatin in full settlement.
What is the cash balance of the business after all these transactions? (
(A) Rs. 5,00,000
(B) Rs. 4,29,000
(C) Rs. 4,29,500
(D) Rs. 4,39,500

333. In a business, an expense of Rs. 5,000 towards repairs has been incurred and paid How will
it be shown in the accounting equation?
(A) Rs. 5,000 deducted from cash and Rs. 5,000 deducted from repair expenses
(B) Rs. 5,000 deducted from cash and Rs. 5,000 added to repair expenses
(C) Rs. 5,000 deducted from cash and Rs. 5,000 deducted from capital
(D) Rs. 5000 deducted from cash and Rs. 5,000 added to capital
334. A debtor who was declared insolvent by the court and whose dues of Rs. 1,900 were written
off as bad debts, now paid Rs. 700 in full settlement. How would you record the bad debts
recovered in a Cash Book?
(A) Debit of Cash Book Rs. 1,900
(B) Credit of Cash Book Rs. 1,900
(C) Debit of Cash Book Rs. 700
(D) Credit of Cash Book Rs. 700
335. Given below are two statements, one labelled as Assertion (A) and the other labelled as
Reason (R)
Assertion (A): Double-column Cash Book is a Subsidiary Book and a Principal
Book.
Reason (R): Cash and Bank transactions are recorded in the Double-column Cash
Book, it is by itself a Cash account and Bank account, the balances are entered in
the Trial Balance directly
In the context of the above statements, which one of the following is correct?
Codes:
(A) Both (A) and (R) are correct.
(B) (A) is wrong, but (R) is correct
(C) (A) is correct, but (R) is wrong
(D) Both (A) and (R) are wrong
336. Ramesh and Sons returned to us 500 pens sold @ Rs. 50 per unit. Less: Trade discount @
10%. Transaction will be recorded in:
(A) Sales Book
(B) Sales Returns Book
(C) Purchases Returns Book
(D) Journal Proper
337. Which of the following transactions is entered into the Journal Proper?
(A) Cash payment to an employee for expenses.
(B) Cash purchase of goods for resale.
(C) Credit purchase of goods for resale
(D) Credit purchase of furniture

338. Manoj started business with Cash Rs. 2,00,000, Goods Rs. 1,00,000 and Building Rs.
5,00,000. What will be the effect on accounting equation?
(A) Cash increases Rs. 8,00,000 and Capital increases Rs. 8,00,000
(B) Cash increases Rs. 2,00,000 and Capital increases Rs. 2,00,000
(C) Cash increases Rs. 2,00,000, Goods increases Rs. 1,00,000, Building increases Rs.
5,00,000 and Capital increases Rs. 10,00,000
(D) Cash increases Rs. 2,00,000, Goods increases Rs. 1,00,000, Building increases Rs.
5,00,000 and Capital increases Rs. £00,000
339. ASSERTION (A); The rules of debit and credit are the same for liabilities and capital.
REASON (R): Rules of debit and credit are the same for liabilities and capital because of
Business Entity concept.
In the context of the above statements, which one of the following is correct? Codes:
340. Which one of the following statements is correct?
(i) Carriage inwards and carriage outwards Dave debit balance.
(ii) Sales account is a liability account and has a credit balance.
(iii) In an asset account, increase is shown in the credit side.
(iv) In a liabilities account, increase is shown in the debit side.
(A) Only (i)
(B) (i) and (iii) both
(C) (ii) and (iv) both
(D) (iii) only
341. ASSERTION (A): An account is divided into two parts.
REASON (R): Left side of an account is known as credit side. Right side of the account is
known as the debit side
In the context of the above statements, which one of die following is correct?
Codes:
342. Which of the following is a contra entry?

(A) Cash withdrawn by proprietor for personal use.
(B) Cash withdrawn by proprietor for office use.
(C) Goods purchased for cash,
(D) Prepaid insurance.
343. The source document for recording entries in the Purchases Returns Journal is called
a.........:
(A) debit note
(B) credit note
(C) cash memo
344. X Enterprises purchased 50 computers from HCL and is allowed discount of Rs. 10,000 for
purchase thereof. The discount of Rs. 10,000 is a:
(A) Cash discount
(B) Trade discount
(C) Both a cash discount as well as a trade discount
345. If goods are given as charity, which accounts are debited and credited?
(A) Purchases- debited, Sales-credited
(B) Charity-debited, Sales-credited
(C) Charity-debited, Purchases- credited
(D) Sales-debited, Charity-credited
346. In a simple cash book, bank charges will appear:
(A) in the debit side of the cash book
(B) in the credit side of the cash book
(C) will not appear in the cash book
(D) none of the above
347. Purchases Account is:
(A) A special journal
(B) A ledger account
(C) A subsidiary book
(D) A day book
Question no.'s 36 and 37 are based on the hypothetical situation given below.
Neena started business with cash Rs. 1,00,000. She purchased office furniture Rs. 10,000,
goods Rs. 20,000 and stationery Rs. 1,000. She sold goods to Meena against cash Rs. 5,000
and on credit Rs. 10,000. Meena paid an amount of Rs. 9,800 in full settlement of her
account.

348. Discount allowed to Meena is:

(A) an asset
(B) a liability
(C) a revenue
(D) an expense
349. Total of Sales Book will be:
(A) Rs. 5,000
(B) Rs. 10,000
(C) Rs. 15,000
(D) Rs. 9,800
Aman has been successfully running his business of traditional garments from ten years. He
purchased goods from Simran on credit Rs. 40,000. He returned back goods Rs. 1,500 to her
as these were defective. He paid cash Rs. 10,000 to Simran. A cheque of Rs. 20,000 was
also given to her. He purchased furniture from Goodluck Traders for cash Rs. 65,000. Old
furniture was sold for Rs. 15,000. Depreciation on furniture Rs. 3,000.
350. How much is the amount that Aman still owes to Simran on account of goods purchased?
(A) Rs. 8,500
(B) Rs. 10,000
(C) Rs. 30,000
(D) Rs. 28,500
351. When old furniture is sold for Rs. 15,000, the following account is to be credited:
(A) sales
(B) cash
(C) furniture
(D) miscellaneous income
352. When furniture is purchased from Goodluck Traders for cash, the account be credited is:
(A) cash account
(B) Goodluck Traders account
(C) furniture account
(D) purchases account
353. Goods worth Rs.7,000 given away as charity would be credited to :
(a) Sales A/c
(b) Purchases A/c
(c) Charity A/c
(d) Trustee A/c

354. Name the traction that is recorded in both sides of Cash book simultaneously.
(a) Contra Entry
(b) Dual entry
(c) Double entry
(d) Single entry
355. Journal proper includes entries related to______
(a) Sale of asset on credit
(b) Sale of asset for cash
(c) Sale of goods for cash
(d) Sale of goods on credit
356. Withdrawal of cash from business by the proprietor is credited to
(a) Drawings A/c.
(b) Capital A/c.
(c) Cash A/c.
(d) Bank A/c.
357. X sells goods on credit to Y. He receives 10% trade discount from X and a further 5% cash
discount if paid within 15 days. K bought goods with a list price of Rs. 2,00,000 from X
Which of the following Journal entry would correctly record the sale in the books of A?
(a) Dr. y and Cr. Sales A/c by Rs. 1,70,000.
(b) Dr. Y and Cr. Sales A/c by Rs. 1,80,000.
(c) Dr. X and Cr. Sales A/c by Rs. 1,90,000.
(d) Dr. X by Rs. 2,00,000; Cr. Sales A/c by Rs. 1,70,000 and Discount A/c by Rs.
30,000
358. What is meant by Accounting? [1]
359. Name any two types of accounting. [1]
360. What is accounting cycle ? [1]
361. Explain external and internal users of accounting. [1]
362. Explain any three limitations of accounting, [3]
363. Explain with examples the types of Assets and Liabilities of a business. [3]
364. Explain the following : 1x4=4
(i) Capital
(ii) Business transaction
(iii) Bad debts
(iv) Drawings

365. Give any four differences between Book keeping and Accountancy. [4]
366. Prepare accounting equation from the following : [10]
(i) Started business with cash Rs. 1,20,000
(ii) Rent received 10,000
(iii) Purchased goods from Reena 50,000
(iv) Paid cash for household expenses 7,000
(v) Purchased goods for cash 5,000
(vi) Sold goods on cash (cost 5000) for 7,000
(vii) Paid for salaries 2,000
(viii) Received commission 1,000
(ix) Sold goods to Manish Rs. 6,000
(x) Purchased furniture for 9,000
367. Record the following transactions in the journal of Mukund and Sons : [10]
(i) Started business with cash Rs. 75,000; goods Rs. 30,000 and Furniture Rs. 5,000.
(ii) Sold goods to Bhushan of list price of Rs. 10,000 at trade discount of 10%.
(iii) Bhushan returned goods of list price Rs. 1,000.
(iv) Received from Bhushan Rs. 8,000 in full settlement of his account.
(v) Purchased furniture Rs. 6,000.
(vi) Sold goods to Ajay Rs. 10,000 and Vijay Rs. 16,000
(vii) Received cash from Ajay Rs. 9,800 in full settlement of his account;
(viii) Paid insurance premium Rs. 750.
(ix) Paid for Mukund's life insurance premium Rs. 1,200.
(x) Purchased goods for Rs. 8,000 for cash at a trade discount of 10% and cash discount
of 2%.
(xi) Goods destroyed by fire 2,000
(xii) Paid rent Rs. 800; advertisement Rs. 1,000 and salaries Rs. 4,000
(xiii) Received commission Rs. 500.
368. If total revenue was Rs.20,00,000, then Profit can be more than Rs.20,00,000. Is it True or
False? Give reason in support of your answer. [1]
369. If Assets were Rs.4,50,000 and Capital was of Rs.2,70,000 then Liabilities was of
Rs.___________. [1]
370. Define Provision. [1]
371. Out of Rent paid Rs.25,000, Rs.5,000 belonged to next year. Pass necessary entry. [1]
372. A customer of X Ltd. has discontinued his business. He used to purchase 30% of the total
goods produced by X Ltd. Is it relevant information in your opinion and should be disclosed
by X Ltd. Identify the Accounting Principle involved. [1]

373. Salary for the month of March,2019 paid in April 2019 will be treated as expense for the
year 2018-19. The accounting concept/principle highlighted here is ____________ [1]
374. Differentiate between Revenue Expenditure and Capital Expenditure. [1]
375. Goods costing Rs.20,000 sold to Rajan at 20% profit on sales. Sales will be___________ by
Rs. ___________. [1]
i. Credited; Rs.24,000
ii. Debited; Rs.25,000
iii. Credited; Rs.25,000
iv. Debited; Rs.24,000
376. Rs.20,000 received from Rahul for debts written off last year was credited to Rahul's
Account. Pass rectifying entry. [1]
377. In an Accounting cycle, the process starts with _____________and ends with __________.
[1]
378. Goods costing Rs.20,000 which were purchased from Rahul, GST being 12%. 1/4 of the
goods were returned to Rahul. Pass necessary entry for goods returned. [1]
379. Ganesh purchased Furniture of Rs.40,000 from Modern Furnishers on Credit. Name the
subsidiary book in which recording will be done. Give reason for the same. [1]
380. Give any two objectives of following Ind AS. [1]
381. On 1st October,2016 Rahul started business with Cash Rs.4,50,000 and Stock of
Rs.1,50,000. He also took a loan of Rs.2,00,000 from his father carrying interest @10%p.a
(Interest not yet paid till 31st March,2017). During the period he purchased Furniture of
Rs.50,000; Goods of Rs.2,60,000 and Motor Car of Rs.1,00,000 for delivery of goods. He
sold Furniture of Rs.20,000, Goods of Rs.3,50,000. 60% of the goods were sold on Credit
basis. He also purchased necklace for his wife for Rs.60,000. He withdrew Rs.5,000 p.m for
his personal use.
Identify any three Accounting terms highlighted in the above paragraph and also give the
amount of identified accounting term. [3]
Or
Give an example for each of the following types of transactions (with amount) being
specified
a) Increase in asset, increase in owner's capital.
b) Decrease in asset, decrease in liability.
c) Increase in one liability, decrease in another liability.
382. Briefly explain the following concept. Also give suitable example.
a) Materiality Concept
b) Matching Concept

383. Pass necessary journal entries for the following. transactions in the books of Sachi Traders,
Delhi and rate of GST is 12%.
(i) Purchased Goods from Rahul, Gurugram of Rs.40,000.
(ii) Sold Goods to Mukesh, Delhi of Rs.1,00,000.
(iii) Goods returned by Mukesh of Rs. 10,000.
(iv) Returned Goods to Rahul of Rs.5,000. [4]
Or
Pass necessary journal entries for the following transactions in the books of SK Traders:
(i) Goods costing Rs.20,000 were invoiced to Rajesh at 50% above cost, less 20%
Trade Discount.
(ii) Goods sold to Rakesh of list price Rs.50,000 at 20% Trade discount and 5% Cash
discount for immediate payment. He paid all the dues immediately.
(iii) Goods purchased from Shyam of List price Rs.30,000 less 20% Trade discount. He
also offered 5% cash discount for immediate payment. Paid him half the dues
immediately.
(iv) Gaurav, who owed us Rs.50,000 was declared insolvent. Received a first and final
dividend of 60 paisa in rupee from his official receiver.
384. Pass Rectifying Journal entries for the following errors: [4]
a) Sale of Goods to Raj of Rs.20,000 was wrongly passed through Purchase Book,
however Raj's Account was correctly posted.
b) Returns inward book was undercast by Rs.4,500.
c) Cash Received Rs.10,000 from Rakesh, a tenant was credited to his personal
account.
d) Cheque of Rs.15,000 was issued in favour of RK& Sons, omitted to be posted.
385. Pass necessary Journal entries for the following transactions: [4]
a) Retired our own acceptance to Mohan for Rs.5,000 one month before its maturity @
12% p.a.
b) A Bill drawn on Sohan for Rs.7,000 and endorsed to Shyam in full settlement of
Rs.7,050 was dishonoured on due date. Noting charges Rs.100 paid by Shyam. This
bill was renewed for Rs. 7,150. (only renewal entry)
c) A bill drawn on Ram for Rs.10,000 was discounted from bank for Rs.9,800 was later
dishonoured and noting charges Rs.100 paid by bank. (only dishonour entry)
d) A bill for Rs.6,000 accepted by Laxman was sent to bank for collection was
dishonoured. Laxman paid due amount to clear his account. (only clearing dues
entry)

386. Show the accounting equation on the basis of the following transactions:
a) Radheyshyam commenced business with cash Rs.35,000, goods Rs.25,000 and Bank
Balance Rs.10,000.
b) Purchased Furniture on Credit for Rs.20,000.
c) Sold goods to Shyam at Rs.30,000(costing Rs.20,000).
d) Received Rs.29,500 from Shyam in full settlement by cheque.
e) Paid salary Rs.500 and salary outstanding Rs.100.
f) Depreciate Furniture by 10% irrespective of period. [6]
387. On comparing the Current account balance in the cash book of Mr. Kamat, with the Bank
Pass Book, the following discrepancies were noted: [6]
a) Out of Rs 25,000 paid in cash, and by cheques into the bank on 31st. March, 2018
cheque amounting to Rs. 6,000 were collected on 10th April, 2018.
b) Out of cheques amounting to Rs. 15,000 drawn on 26th March, cheques of Rs.
10,000 only were encashed.
c) A cheque of Rs. 2,500 credited in the pass book on March 28th, 2018 was
dishonoured and is debited again in the pass book on 3rd April, 2018. There was no
entry in the cash book about the dishonour of the cheque until 15th April, 2018.
d) As per standing instructions bank has transferred Rs.1,200 from his fixed deposit
account to this current account on 27th March but this information could be received
only on 5th April, 2015.
e) A cheque of Rs.12,000 drawn on his saving deposit account has been shown as
drawn on current account in cash book.
Prepare a bank reconciliation statement as at 31st March, 2018 if the Debit balance as per
Cash book on the same day was Rs.26,000.
388. Mehta Bros purchased two machines from Haryana Manufacturers for Rs 2,50,000 each on
1st July,2015. Installation charges and carriage on both machines amounted to rs 1,00,000
in total. Another machine was purchased on 31st Dec.2016 for Rs. 2,00,000. On 1st July,
2017 one machine, purchased on 1st July 2015, become obsolete and was disposed off for
Rs. 55,000 and Rs. 5,000 was paid as commission to middleman. On 1st jan,2018, half of
the machine purchased on 31st Dec. 2016 was sold off Rs. 30,000. Prepare machinery
account for three years, if depreciation is to be changed annually @10% p.a. by S.L.M and
books are closed on 31st March every year. [8]
OR
Following are the Balance in the books of modern Equipments as on 01 April, 2017.
Machinery account Rs 20,00,000

Provision for depreciation account Rs 4,50,000

On 01 July,2017 a parts of machinery which was purchased on 01 october,2015 for Rs
4,00,000 was disposed off for Rs. 1,70,000. On the same date another machine was
purchased for Rs10,00,000. Depreciation is to be changed @10% p,a. by fixed instalment
system.
389. Differentiate between Direct Expenses and Indirect Expenses on the basis of Meaning. [1]
390. If Bad Debts are of Rs. 10,000 and existing PDD was Rs. 8,000, what entry will be passed
to write off bad debts. [1]
391. Outstanding expenses of Rs. 20,000 will be ____________to Profit and Loss account and
shown on_______________ side of balance sheet. [1]
392. If net profit be more than gross profit then which of the following statement is true ?
393. Statement I- Indirect Incomes are more than Indirect Expenses.
394. Statement II- Indicect expenses are more than Indirect Incomes.
395. If bills of Rs. 20,000 were received from debtors then how will it affect the records of firm
following single entry system, while preparing their final accounts ?
396. Balance of Rent accrued will be shown:-
a) Asset side b) Liabilities side
c) Credit side of Trading A/c d) Debit side of profit and loss A/c
397. Accounting information system is part of Management Information system. Give two other
parts of Management information system.
398. Explain any three reports generated by accounting softwares for Accounting.
399. (a) Name any two popular Accounting softwares available in the market.
(b) Differentiate between Readymade software and tailor made softwares. [1+3]
400. a) Ashok keeps incomplete records. He started business on 01 April, 2017 with capital
of Rs. 40,000. His capital balance as on 31st March, 2018 was Rs. 1.50,000. During
the year he had spent Rs. 10,000 to buy Mobile phone for his daughter and also
withdrew Rs. 2,500 per month for his household expenditure. He also introduced
additional capital by selling his personal investments of Rs. 50,000 at 20% profit
and total proceeds were brought into the business. Calculate the profit or loss of his
business for the year ended 31st March, 2018.
b) Operating profits earned by M/S Shatru and Sons in year 2017-18 was Rs.
12,50,000. Its non-operating incomes were Rs. 4,00,000 and non-operating
expenses were Rs. 5,00,000. If Operatintg Expenses were Rs. 6,00,000, find out
Gross Profit and Net Profit of the firm.

401. From the following Trial Balance as on 31st March, 2019, you are required to prepare
Trading and Profit and Loss Account and Balance Sheet.
Name of account Debit Balance (Rs.) Credit Balance (Rs.)
Sales 50,000
Purchase 24,000
Cash in hand 4,000
Interest 800
Carriage 800
Building 12,000
Stock (1.4.18) 6,000
Debtors 8,200
Reserve 5,000
Returns 2,000 1,000
Creditors 6,500
Wages 1,200
Discount 300
Capital 30,000
5% Investment 20,000
Bank Overdraft 15,000
Travelling expenses 2,800
Salaries 5,000
Bad debts 1,000
Rent 5,000
Furniture 6,600
Leasehold Premises 10,000
Total 1,08,600 1,08,600
Additional Information;
(i) Stock in hand valued on 31st March, 2019 was Rs. 10,000.
(ii) Depreciate Furniture by Rs. 1,000 and Building by 15%.
(iii) Rent is paid for 10 months.
(iv) Provide for Manager’s commission @ 10% on net profits after
Charging such commission.

OR
Following are the balances taken from Trial Balance of Kanha Enterprises on 31st March,
2019:
Debit balances (Rs.) Debit balances (Rs.)
Drawings 3,000 Rates, taxes & insurances `2,800
Debtors 20,100 Advertising 3,200
Interest on loan 300 General expenses 3,400
Cash in hand 2,000 Bills receivable 6,800
Stock(01-04-2018) 6,800 Credit balances (Rs.)
Motor vehicles 10,000 Capital 28,000
Cash at bank 3,500 Creditors `10,400
Land and building 12,000 Loan 10,000
Bad debts 500 Sales 1,00,200
Purchases 66,000 Purchases return 800
Sales returns 7,800 Discounts 500
Carriage inwards 3,000 Rent received 900
Salaries 9,000 Bank Overdraft 9,200
Prepare the Trading and profit and loss A/C for the year ended 31st March 2019 and Balance
sheet as on that date after making adjustment for the following matters:
(i) Depreciate land and building at 5% and motor vehicles at 20%.
(ii) Interest on loan at 6% p.a. is unpaid for six months.
(iii) Salaries amounting to Rs. 1,000 were due at the end of the year.
(iv) Prepaid insurance amounted to Rs. 300.
(v) Stock in hand on 31st March 2019 was valued at Rs. 6,000.
402. Strike by employees will not be recorded in the books of accounts. [1]
403. Accural basis of accounting calculates profit without adjustment. [1]
404. One of the objective of GST is to develop common national market for buying and selling
of goods in the nation. [1]
405. Assets and Liabilities are two sides of cash book. [1]
406. Management accounting is a branch of accounting. [1]
407. Materiality principle is an exception to the full disclosure convention. [1]
408. patent, goodwill and trademark are examples of……………………… [1]
409. ………………. Ensure the uniformity, consistency and comparability of the financial
statements. [1]
410. Outstanding salary Rs. 5,000 affects only……………. side in the accounting equation. [1]
411. Bank Reconciliation statement is prepared by…………………… [1]

412. A………………..is called a book of primary entry. [1]
413. ……………………..account is debited when goods are sold on credit. [1]
414. Sale of business asset on credit is recorded in : [1]
(a) Sales book
(b) Journal proper
(c) Special subsidiary book
(d) None of these
415. Bank charges Rs. 5,000 debited twice in Bank pass book. What should be done in Bank
Reconciliation statement if overdraft as per cash book is starting point ? [1]
(a) Rs. 5,000 must be deducted
(b) Rs. 5,000 must be added
(c) Rs. 10,000 must be deducted
(d) Rs. 10,000 must be added
416. Sohan who owed Rs. 8,000 business became insolvent and paid 60% in full settlement.
Posting will be made to sohan account : [1]
(a) Rs. 8,000 on debit side
(b) Rs. 8,000 on credit side
(c) Rs. 4,800 on debit side
(d) Rs. 4,800 on credit side
417. Recording is made in purchase book : [1]
(a) after deducting trade discount
(b) after adding trade discount
(c) after deducting cash discount
(c) after adding cash discount
418. Decrease in one liability may lead to : [1]
(a) decrease in an asset
(b) increase in another liability
(c) none of these
(d) either (a) or (b)
419. Normally the following accounts are balanced : [1]
(a) personal account and nominal account
(b) Real account and Nominal account
(c) Only Nominal account
(d) Personal account and Real account

420. Briefly explain the order in which input GST is set off against output GST. [3]
OR
Write any three untility of accounting standards.
421. Explain the following terms with example : [1x4]
(a) Capital expenditure
(b) Revenue expenditure
(c) Deferred revenue expenditure
(d) Capital receipts
422. Which basis of accounting is the best for business entities and why? [1+3]
423. Ravi started business on 1st April, 2018 with a capital of Rs. 1,20,000. He took bank loan
Rs. 40,000. On 31st March, 2019 his assets were Rs. 2,40,000 and creditors were Rs.
30,000. Bank loan has not been paid so far. However. Interest on loan has been paid. Find
out closing capital and profit earned during the year. [2+2]
424. The following transactions took place in the books of M/S Prabha Traders Delhi. Prepare
debit voucher. [2+2]
2019
Feb. 10 Bought machinery Rs. 50,000 from Raja Traders, Haryana against cash vide
memo no. 280. GST @ 18%
Feb 15 Paid wages for the month of Jan., 2019, Rs. 10,000.
425. Distinguish between cash book and cash account. [1x4]
426. Write the accounting concept while dealing with the following problems : [1x6]
(a) The concept results in understatement of profits and assets and overstatement of
liabilities.
(b) According to this concept, business and owner are two separate entities.
(c) Only those facts and events are recorded in accounting which are capable of being
expressed in terms of money.
(d) All items or facts related to business whether material or immaterial are recorded in
accounting.
(e) Assets will be equal to capital if there are no liabilities.
(f) Entire life of the firm is divided into definite time intervals for the measurement of
profits.
427. Journalise the following transactions in the books of M/s Deepak, Delhi : [1x6]
(a) Purchased goods for Rs. 3,00,000 from M/s Karun, Madhya Pradesh on credit; GST
@ 18%.
(b) Sold goods costing Rs. 80,000 to M/s Vikash, Punjab on credit at a profit of 25% on
cost less trade discount @ 10%; GST @18%

(c) Advertisement charges of Rs. 10,000 paid in cash.

(d) Salary outstanding Rs. 25,000.
(e) Propritetor withdrew Rs. 40,000 for his personal use.
(f) Paid to Gauri Shankar Rs. 95,000 and discount received Rs. 5,000.
428. Records the following transactions in the double column cash book of Manoj, Delhi : [6]
2019 Rs.
May 1 Cash in hand 2,000
Bank balance 15,000
May 4 Bought goods for cash Rs. 6,000; GST @ 12%
May 6 Received cheque from Mohan 5,000
Discount allowed 200
May 8 Sold shares of Ram Ltd. For cash Rs. 10,000 less
Brokerage 1%
May 10 Received cheque for sale of old furniture 2,800
May 12 Deposited into bank cheque received on May 6
& May 10
May 14 Bank issued draft in favour of shyam and sons
For Rs. 8,000
May 16 Drew cash for office use 2,000
OR
Record the following transaction in the double column cash book of S. Suresh, Delhi :
2019
Jan. 1 Bank overdraft 12,000
Cash in hand 2,300
Jan. 5 Purchased goods for Rs. 40,000; Trade discount @ 15%
IGST @ 12% Payment made by cheque.
Jan. 6 Sold goods for Rs. 30,000 Trade discount 10% IGST 12%
Payment received by cheque.
Jan. 7 Cheque received from Prem 4,000
Discount allowed 200
Jan. 9 Cheque received from Prem deposited in Bank
Jan. 12 Cheque paid to Radha 2,500
Discount received 50
Jan. 31 Paid into bank the entire cash balance after
Retaining Rs. 700 at office.

429. Record the following transaction in the purchase book of Raj Electric Store, Delhi : [8]
2019
June 2 Purchased goods from surya electric store, Ghaziabad on credit
40 tubelights @ Rs. 500 per tubelight
15 table fans @ Rs. 2,000 each
Trade discount @ 20% GST @ 12%
June 10 bought goods from sawan light traders, Gurgaon on credit
10 ceiling fans @ Rs. 3,000 each
20 electric irons @ Rs. 500 each
June 20 Bought goods from raj electric co., Ludhiana on credit
100 dozen bulbs @ Rs. 600 per dozen
20 fancy bulbs @ Rs. 1,000 each
June 22 Bought goods from sajan lamp, Delhi for cash
5 tubelights @ Rs. 1,000 each
June 28 Bought goods from fashion furniture, Rajasthan on credit
2 Sofa sets @ Rs. 30,000 each
3 chairs @ Rs. @ Rs. 600 each
OR
Record the following transactions in the sales book of pawan furniture store, Delhi :
2019
April 1 Sold goods to Star Furniture, Haryana on credit
150 table @ Rs. 1,800 each
36 chair @ Rs. 5,000 each
April 10 Sold goods to Rajesh Furniture, delhi on credit
10 almirahs @ Rs. 11,000 each
5 sofa sets @ Rs. 18,000 each
April 12 Sold goods to prem furniture, Punjab on credit
10 chairs @ Rs. 20,000 each
Trade discount @ 5% GST 12%
April 18 Sold goods to Raj furniture, Delhi for cash
10 table @ Rs. 1,280 each GST @ 12%

430. Prepare Bank Reconciliation statement from the following information : [8]
(a) on 31st march, 2019 pass book shows a debit balance of Rs. 7,500.
(b) cheque paid in to bank for collection amounted to Rs. 20,600 but cheque of Rs.
7,800 were credited on April 4, 2019
(c) A cheque for Rs. 1,000 debited in the cash book was omitted to be banked.
(d) Cheques amounting to Rs. 7,800 were drawn in March of which cheque of Rs. 5,400
were presented for payment on 10th April, 2019.
(e) A cheque of Rs. 800 was banked and credited, but omitted to be recorded in the cash
book.
(f) Bank charged interest on overdraft Rs. 650.
(g) Bank allowed interest Rs. 500.
OR
Prepare Bank Reconciliation statement from the following information :
(a) 31st March, 2019 bank pass book showed a balance of Rs. 15,000(Cr.).
(b) Before that date, cheque issued amounting to Rs. 8,000, of which cheques
amounting to Rs. 3,200 have so far been presented for payment.
(c) A cheque of Rs. 2,200 is recorded in the cash book on 20th March, but not credited
in the pass book till 31st March.
(d) A cheque of Rs. 500 was received which although in the bank column of cash book,
was omitted to be paid into the bank.
(e) According to bank pass book, a cheque of Rs. 1,570 was credited by the bank but the
same was omitted to be entered in the cash book.
(f) Interest allowed by bank Rs. 150.
(g) Bank charges Rs. 25.
431. What are two bases of Accounting ? [1]
432. Name four fixed assets. [1]
433. What is owner's equity ? [1]
434. List any two functions of accounting. [1]
435. What is meant by three column cash book ? [1]
436. Briefly explain transfer voucher. [1]
437. Differentiate between Accounting and Book keeping, (state any three basis). [3]
438. X has following assets and libailities as on 31st March, 2013. Ascertain his capital. Cash
Rs. 25,000; Bank Rs. 47,500; Debtors Rs. 18000; Creditors Rs. 22,000; Plant and
machinery Rs. 80000; Building Rs. 200000; Furniture Rs. 24000; Bills Receivable Rs.
56,500; Bills payable Rs. 23,500. [3]

439. Explain the meaning of any three of the following terms : [3]
(i) Assets (ii) Capital
(iii) Goods (iv) Drawing
(v) Debtors
440. On which side will be increase in the following accounts recorded ? Also, mention the
nature of the account. [3]
(i) Furniture
(ii) Bank Overdraft
(iii) Outstanding salary paid
(iv) Outstanding Rent
(v) Prepaid Insurance
(vi) Mohan, Proprietor of the business
441. What are Accounting Vouchers ? [3]
442. "The Cash book always shows a Debit balance." How far is this stat true and why? [3]
443. Explain any two of the following concepts : [4]
(i) Business Entity concept
(ii) Going Concern Assumption (iii) Accrual Assumption
444. How will you deal with the following items in Accounting Equations [4]
(i) Interest due but not received Rs. 500.
(ii) Rent received in advance Rs. 1000.
(iii) Insurance premium paid in advance Rs. 1500.
(iv) Salaries due but not paid Rs. 2000
445. What is the difference between Accrual basis Accounting and Cash basis Accounting? [4]
446. From the following particulars, Prepare the proprietor's capital Account. [4]
1st April 2013 Commenced business with cash 20,000
31st march 2014 Net Loss as per Profit and Loss Account 3000
31st March 2014 Drawing during the period 2000
Balance the same and explain what the closing balance indicates.
447. Journalise the following transactions in the books of Manoj store: [4]
(i) Purchased goods from Ramesh Rs. 20000 less Trade discount at 20% plus GST 10%
(ii) Sold goods costing Rs. 7000 to Krishna for Rs. 9000 Plus GST @ 20%
(iii) Sold goods for Rs. 10000 and charged GST @ 10% against cheque.
(iv) GST was deposited into government Account on due date.
448. Prepare the transfer vouchers from the source Vouchers : [6]
(i) Jan. 7, 2013 Purchased goods from M/s Ram and co. vide Bill no. 912 of Rs. 4700.
(ii) Jan 11, 2013 Sold goods to M/s Yardley vide BiU No. 31596 of Rs. 5000
(iii) Depreciation charged on build @ 10% on Rs. 200000 of Rs. 20000.

449. Journalise the following transactions :- [6]

2013 ?
Jan-1 Paid into Bank for opening a current Account 20000

Jan-2 Withdrawn Cash for private expenses 1000
Jan-3 Withdraw from bank 3)000
Jan-4 Withdraw from bank for private use 2000
Jan-6 Placed in Fixed Deposit Account at bank by transfer
from current A/c 5000
Jan-10 Goods purchased for Rs. 2500 and amount paid by cheque
450. From the following information, prepare the Sales book. [6]
2013
March-1 Sold to X vide invoice No. 2005, 3 chests of tea for ? 1800 less trade
Discount @ 10% and GST is charged @ 10%.
March-2 Sold to Mohan and sons vide cash memo no 502, 20 kg butter @ 150 per kg
less trade discount @ 5% and GST is charged 10%.
March-5 Sold to Y vide invoice no 204, 20 pack (1 kg) of Darjeeling tea @ 75 per kg
less discount @ 5% charged GST @ 10% freight charges were Rs. 160.
451. Distinguish between Trade Discount and Cash Discount. State any six basis. [6]
452. Develop an accounting equation from the following transactions : [6]
I. Mohan commenced business with cash 50,000
II. Purchased goods for cash 30,000
III. Purchased goods on credit 20,000
IV. Sold goods (costing Rs. 10000) for 12,000
V. Bought furniture on credit 2000
VI. Paid cash to creditor 15000
453. Following balances appeared in the books of Ashok on 1st April 2013 Assets : Cash Rs.
50000; Stock Rs. 30,000; Debtors Rs. 50000, Machinery Rs. 60000, Liabilities:- Creditors-
Rajesh R.s 30000.
2013 Transactions
April 4 Sold Goods for Cash
April 6 Goods returned by Ram 1000
April 10 Purchased goods from Rajesh list price
Rs. 10,000 value at 9000
April 15 Bought goods of list price of Rs 15000 from Rakesh
less 10%
Trade discount and 5% Cash Discount and paid
40% Cash Price immediately.

April 20 Paid to Rajesh 7 38600 in full settlement of his

account.
April 25 Paid Rs. 500 for life insurance premium of the
proprietor
April 30 Received for commission 2000
Pass the Journal entries for the above transactions and post them into the ledger and balance
the Ledger-Accounts.
454. Record the following transactions in a suitable cash book and find out the cash and Bank
balances:- [3]
2014 Transactions
Jan. 1 Cash in hand 50,000
Jan. 1 Bank overdraft 10,000
Jan. 2 Paid wages 15,000
Jan. 3 Deposited into Bank 20,000
Jan. 4 Cash Sales 75,000
Jan. 5 Sold goods by cheque which was deposited into
bank same day 50,000
Jan. 6 Purchased goods from hari on credit. 40,000
Jan. 7 Drew from Bank for personal use 10,000
Jan. 8 Paid to Hari on account discount
received Rs. 1500 35,000
Jan. 9 Received from Ram, who owes Rs. 21,000,
Rs. 20,000 only an Account in full settlement.
455. What is the meaning of Financial Statement? [1]
456. Give two examples of Fictitious Asset. [1]
457. By providing for discount on Debtors, which accounting concept is followed? [1]
458. Net sales during the year 2019 is Rs. 2,85,000. Cost of Goods sold is 75%. Find Gross
Profit. [1]
459. Give a formula to calculate operating profit from Net Profit. [1]
460. What is meant by credit balance of Output SGST account ? [1]
461. Suspense Account is a : [1]
(a) Real Account (b) Personal Account
(c) Nominal Account (d) Any of these
462. Suspense Account in the Trial Balance will be entered in the : [1]
(a Balance Sheet (b) Trading Account
(c) Profit & Loss Account (d) None of the above

463. Why is Statement of Affairs not called a Balance Sheet ? [1]

464. If capital at the end of the year is Rs. 40,000; capital introduced during the year Rs. 30,000;
drawings for the year Rs. 20,000 and loss for the year is Rs. 60,000; calculate opening
capital. [1]
465. Show the effect for given adjustment on final account: [3]
Debtors Rs. 40,000; (including Rs. 5,000 receivable from a customer Sunil)
Additional information :
Provide 2% for discount on debtors.
Make a provision for doubtful debts @5%.
Sunil a customer has promised to pay his dues amount Rs. 1,000 on 1st day of new financial
year.
466. Calculate Gross Profit when Adjusted purchases during the year are Rs. 7,80,000; Return
Outwards Rs. 20,000; Direct expenses Rs. 60,000; Packing expenses on Sales; Change in
Stock (opening-closing stock) and 2/3 of the goods are sold for Rs. 7,10.000. [3]
OR
Differentiate between Capital expenditure and Revenue expenditure.
467. Calculate Operating Profit : [4]
Rs. Rs.
Office & Admin. Expenses 24,500 Selling & Distribution Expenses 36,000
Gain on sale of Machine 15,000 Interest loans (Dr.) 20,000
Donation 20,000 Rent received 10,000
Discount received 1,500 Commission received 3,500
Depreciation 12,000
Net Loss 4,000
468. Calculate Gross Profit or Gross Loss [4]
(Rs.)
Adjusted purchases 6,00,000
Direct Expenses 50,000
Non-Operating Expenses 14,000
Opening Stock 2,00,000
Closing Stock 3,00,000
Net Loss 47,000
Selling & distribution expenses 18,000
Office & Administrative expenses 15,000

OR
(a) Dinesh supplies you the following information:
(Rs.)
Opening stock 25,000
Total Purchases 69,000
Total Sales 89,800
Return inwards 3,000
Return outwards 2,000
Dinesh sells goods at cost plus 40 per cent. Calculate closing stock.
(b) Calculate Net Sales and Gross Profit:
Cost of goods sold Rs. 1,00,000
Gross profit 20% on sales
469. Find out the Total purchases from the following : [4]
(Rs.)
Balances of the Creditors April 01,2018 45,000
Balances of the Creditors March 31,2019 36,000
Cash paid to creditors 1,80,000
Cheque issued to creditors 60,000
Cash Purchases 75,000
Discount allowed by creditors 5,400
Discount received by debtors 5,000
Bills payable accepted . 12,750
Return outwards . 7,500
Bills payable dishonoured 3,000
Bills receivable endorsed to creditors 4,500
Bills payable endorsed to creditors dishonoured 1,800
Return inwards 3,700
470. Prepare Financial statement for 2018-19 from the following Trial Balance : [6]
Particulars Dr. Balance Cr. Balance
Capital 50,000
Drawings 10,000
Debtors & Creditors 24,000 16,000
6% loan 10,000
Interest on loan 300
Cash 3,000
Provision for Bad Debts 1,000

Wages 6,000
Stock 01.04.2018 16,700
Computer 10,000
Bank 7,500
Furniture 20,000
Carriage 4,500
Outward 5,000
Carriage Inward 12,000
Salaries 8,000
Rent 600
Bad debts 60,000 1,16,000
Sales & purchase 2,000 1,000
Returns 4,500
Advertising
Discount 2,600
Insurance premium 2,000
B/P & B/R 10,000 8,000
Commission 1,500
Total 2,06,100 2,06,100
Adjustments:
(a) Insurance premium is paid for the year ending 30th June, 2019.
(b) Wages have been paid upto 30th June, 2019.
(c) Stock on 31st March, 2019 was valued at? 19,400.
471. Trial Balance of Vijay and Company prepared on 31st March 2019 did not tally. The
difference was placed in the Suspense Account, A detailed examination of his books
revealed the following errors: [6]
(a) A sum of Rs. 473 owed by Megha has been included in the list of Sundry Creditors.
(b) Almirah purchased for office from Nawab Furniture on credit for Rs. 13,375 was
recorded in the purchase book. At the time of posting their account was credited
with Rs. 15,375.
(c) Rs. 2,700 stolen by an ex-employee stood debited to Suspense Account.
(d) Goods costing Rs. 2,500 were sent to a customer on sale on approval basis for Rs.
3,000. The entry was made in sales book but the customer has not informed
regarding their acceptance by 31st March 2019.
(e) Total of one page of sales book was carried forward to the next page as Rs. 4,500
instead of Rs. 5,400.

You are required to correct the above mistakes by passing the necessary journal
entries for rectifying errors in the General Journal and find oat amount that was
transferred to Suspense Account when the Trial Balance did not tally.
472. Why ledger is called the "principal book of accounts"? [1]
473. Resignation by a marketing manager is not recorded in the books of accounts. Why? [1]
474. Answer the following questions:
i) Mr. Khanna is the owner of a theatre. He spent Rs. 5.00,000 for increasing the
seating capacity of the theatre. Where will it be shown and why? [1]
ii) Why is the evidence provided by source documents important to accounting? [1]
475. Define the following terms: 1x5=5
i) Business Transactions
ii) Expenses
iii) Current Liabilities
iv) Trade receivables
v) Cost
476. "Accounting suffers from various limitations." Explain any two such limitations. [2]
477. Explain the following two causes of difference between balances as per Cash Book and
Bank Pass Book : [2]
i) Dishonor of a Bill discounted with the Bank
ii) Interest and Dividend collected by the Bank on behalf of the account holders
478. "Expenditures are of two types - Capital and Revenue." Identify the accounting assumption
behind this treatment. [2]
479. During the year, the company purchased ballpoint pens of Rs. 500. These were issued to
employees and were still in use at the end of the year. Which accounting concept you would
follow in dealing with this item? Explain. [2]
480. Explain the qualitative characteristics of 'understandability', 'reliability' and comparability1
that make accounting information useful to its users. [3]
481. Mr. Jaspal Singh dealing in electronic goods sold 20 TV sets costing Rs.30,000 each at Rs.
40,000 each. Out of this Rs. 5,00,000 were received in cash and the balance is not yet
received. He has recorded sales as Rs. 5.00,000 in the books of accounts. State the amount
of revenue earned with reason. [3]
482. X Ltd. gets a contract of Rs. 100 crore to build a fly over to be completed in 4 years, The
management of the company wants to ascertain profit or loss on this contract only when the
contract is completed, is the management justified? Explain the relevant principle. [3]

483. Mention the nature of Account (using Traditional approach) [3]

i) Bank ii) Machinery iii) Bills Payable iv) Ravi (customer) v) Freight vi) Salary Outstanding
Account Account Account Account Account Account
1. (a) Why a business should follow the principle of Consistency?

(b) Explain the following principles with example:
i. Business Entity Concept
ii. Historical Cost Principle 2x2=4
484. Enter the following transactions in proper subsidiary books of Raina electronics:
DATE PARTICULARS AMOUNT
'I Jan Sold goods to Ramesh subject to Trade discount of 10% (invoice 6000
No. 175)
1 Jan Bought of Hari Ram subject to Trade discount of 5% (Bill No. 345) 8000
2 Jan Ramesh returned goods sold on 1 Jan 800
2 Jan Sold to Dina Nath (invoice No. 176) 5500
2 Jan Purchased goods from Mangal subject to Trade discount of 5% 7000
(Bill No. 1045)
4 Jan Returned goods to Managal sold on 2 Jan 1000
4 Jan Bought of Devi Dayal (Bill No, 12345) 3250
4 Jan Sold to Zakir Hussain (Invoice No. 1 77) 3500
5 Jan Zakir Hussain returned goods 450
6 Jan Purchased Chairs from Raina (Bill No. ZOI26) 5000
10 Jan Sold to Ram Saran (Invoice No. 180) 5000
15 Jan Goods withdrawn for personal use 2000
485. Prepare an Accounting Equation from the following transactions: [7]
i. Started business with Bank Rs. 2,00,000; Furniture Rs. 1,00,000; Machinery
Rs.1,50,000 and goods Rs. 40,000.
ii. Paid Rent Rs. 5,000, out of which Rs. 1,000 is prepaid.
iii. Sold goods costing Rs. 5,000 at a profit of 20% on cost to Sameer on cash basis.
One-third of the payment received through cheque.
iv. Charged depreciation @ 10% on furniture.
v. Interest earned but not yet received in cash Rs. 6,000.
vi. Interest allowed on capital Rs. 2,000.

486. On 31" December, 2016 the Pass Book of Mr. W showed a credit balance of Rs.25,000.
Prepare a Bank Reconciliation Statement from the following information: [7]
i. Out of total cheques amounting to Rs. 12,000 deposited, cheques aggregating
Rs.7,500 were credited in December, 2016, cheques aggregating Rs.2,000were
credited in January, 2017 and the rest have not been collected at all.
ii. A postdated cheque for Rs. 900 has been debited in the bank column of cashbook
but it could not have been presented in any case.
iii. A Bill payable of Rs. 10, 000 was retired by the bank under a rebate of Rs.200 but
the full amount of the bill was credited in the cash book.
iv. The credit balance of Rs. 1, 500 as on Page 10 of die Pass book was recorded on
Page 11 as debit balance.
v. A cheque of Rs. 13,300 paid into bank was returned dishonored but no intimation
was received from the bank till December 2016.
vi. Withdrawal column of the cash book had been under cast by Rs. 1,000.
487. Record the following transactions in a Double column Cash Book of M/s Tania Traders for
April 2018: [8]
DATE PARTICULARS AMOUNT
1 APRIL Commenced business with cash 60,000
3 APRIL Opened Bank account with SB1 45.000
5 APRIL Purchased goods for cash 7,000
10 APRIL Purchased office Machine for cash 5,000
15 APRIL Sold goods to Manjula and received cheque 6,000
18 APRIL Cash Sales 10,000
20 APRIL Manjula’s cheque deposited into bank
22 APRIL Paid wages by cheque 300
25 APRIL Cash withdrawn from Bank for personal reasons 3,000
30 APRIL Rent paid by cheque 2,000
488. From the following Trial balance of Sri Ram, prepare the Trading and Profit& Loss
Account for the year ended 31st March 2011 and the Balance sheet as on that date;
Closing Stock was valued at Rs. 15,000
Particulars Debit (Rs) Credit (Rs)
Ram's Capital 2,90,000
Ram's Drawings 7,600
Purchases & Sales 89,000 1 ,50,000
Sales & Purchases Returns 2,800 4,500

Stock (1st April 2010) 12,000

Wages 8,000
Building 2,20,000
Freight & Carriage 20,000
Trade Expenses 2,000
Advertisement 2.400
Interest 3,500
Taxes and Insurance 1,300
Debtors & Creditors 65,000 12,000
Bills Receivable & Bills Payable 15.000 7,000
Cash at bank 12.000
Cash in hand 1,900
Salaries 8,000
Total 4,67,000 4.67,000
489. Pass Journal entries for the following and prepare ledger accounts of Machinery, Furniture:
13+3=16
i. Cash Rs. 4.500; Bank Rs. 26.550; Machinery Rs. 74.950; Furniture Rs. 90,000-
Sundry Creditors Rs. 56,000.
ii. Interest due but not received Rs. 4.000.
iii. Provide 10% depreciation on furniture.
iv. Salary due to staff Rs. 25,000.
v. Out of the rent paid this year, Rs. 2,000 releases to the next year.
vi. Received commission of Rs. 10,000 plus CGST and SGST @ 6% each by cheque,
half the amount is in advance.
vii. Paid wages Rs. 5,000 in cash on installation of machinery.
viii. Sold goods costing Rs. 60,000 to Mohan of Kolkata issued invoice at 10% above
cost less 5% trade discount; 2% Cash Discount
ix. Anant, a customer, returned goods worth Rs. 2,000 because they were of poor
quality. These goods were sold charging CGST and SGST @6% each.
490. Project work: Done in Class [10]
491. Overcasting of Purchase Book is corrected by _______ Purchase Account. ` [1]
492. Sohan purchase goods for Rs 15 lakhs and sold 4/5 of the goods for Rsl8 lakhs. Expenditure
of Rs 2,50,000 during the year. Net profit is Rs 3,50,000. Which accounting concept was
followed by him. [1]
a) Business entity b) conservatism
c) Prudence d) none of the above

493. Discount given for bulk quantity purchase is termed as _________. [1]
494. Brokerage paid for purchase of land is Capital expenditure because __________. [1]
495. Statement of Affairs in the beginning shows _________. [1]
496. Dedit balance in the Pass Book is: [1]
a) An Asset b) A Liability
c) A Revenue d) An income
497. Interest on drawings is ______ for the business. [1]
498. Opening balance of Debtors is Rs. 20,000. Provision for Doubtful Debts is 5% and
Provision for Discount on Debtors is 10%. The amount provided for provision for Discount
on Debtors will be Rs. 1 ,500. [1]
a) True b) False
499. Sale of business asset on cash is recorded in: [1]
a) Sales Journal b) General Journal
c) Cash Book d) Purchases Journal
500. Which of the following is the most relevant accounting information for taxation authorities
a) Cash balance of the firm b) book value of the fixed assets
c) Credit sales of the year d) profit generated during the year [1]
501. The assets which are purchased to improve the profitability in the business and not for the
purpose of resale are called [1]
a) Tangible assets b) Fixed assets
c) Current assets d) Intangible assets
502. A transaction is recorded in the wrong book of original entry with wrong amount. Identify
the type of error. [1]
503. 'The payment of promissory note is made by its maker.' Whether True or false [1]
504. Property, Plant and Equipment are conventionally presented in the Balance Sheet at
historical cost less depreciation. Whether True or false [1]
505. Management creates provision for doubtful debts @ 5% on debtors every year base on its
past experience. Name the two accounting principle followed in this process. [1]
506. Cancelling of an old bill and issuing a new bill are known as__________. [1]
a) Retirement of bill b) Renewal of bill
c) Dishonour of bill d) none of above
507. A cosmetic manufacturing company spent huge amount on advertisement, assuming that
benefit will be availed during following years . Expenditure incurred is : [1]
a) Revenue Expenditure
b) Capital expenditure
c) Deferred expenditure
d) partial revenue and partial capital expenditure

508. Due to new inventions and improvement techniques the old assets becomes outdated and
may have to be discarded even if they can be put in use physically , it is known as : [1]
a) Obselence b) Depletion
c) Depreciation d) Amortization
509. Which of the following is not true about Reserves : [1]
a) Reserves can be created for general and specific purposes
;
b) Reserves are charges against profits
c) Reserves are created to strengthen the financial position of the firm
d) Reserves are shown in liability side of balance sheet
510. Purchase of Office Furniture of Rs. 20,000 was completely omitted. Itis: [1]
a) A clerical error b) An error of Principle.
c) An error of omission. d) Compensating Error.
511. Journalise the following transactions in the books of Pooja: [3]
a) Withdrawn goods for personal use (Cost Rs. 5,000 + IGST@18%; Sale Price Rs.
7,000)
b) Sold goods to Karan of Delhi at the list price Rs. 30.000 less trade discount 5% add
COST and SGST @ 9% each, and allowed cash discount @5%. He paid amount
immediately.
c) Closing Stock amounted to Rs.20,000.
OR
Prepare Accounting Equation for the following transactions:
a) Started Business with Cash Rs. 1, 00,000 and Bank Balance Rs.2, 50,00.
b) Purchased Goods from Rahul for Rs.25, 000 and paid him 60% immediately and
receive cash discount of 12%. CGST & SGST @ 9% each,
c) Security Deposit paid to Landlord Rs.50,000 by cheque. Also paid him Rent of
Rs.20, 000 in Cash.
512. From the following information of Vijay Sales, Prepare Sales Return Book for the month of
May, 2019. [3]
2019 Particulars
May8 Out of the 10 coolers sold to Verma & co. on 20th May, 2019 @ Rs. 6,000
per cooler, less 5% trade discount, 2 cooler was returned, being defective.
May 14 Goods sold to Mukesh Electronics Retuned as they were defective Rs. 4000
Rent Rs. 12,000 Commission received Rs. 7,000

513. Explain the meaning of the following terms with reference to bills of exchange [4]
a) Promissory note b) Noting of bill
c) Payee d) Rebate
514. Calculate Gross Profit from the following information:- [4]
Closing Stock Rs. 70,000
Wages Rs. 40,000
Salary Rs. 50,000
Sales Rs. 6,80,000
Purchases Rs. 4,00,000
Opening Stock Rs. 50,000
Or
Operating Profits earned by M/S Sharma and Sons in year 2019-20 was Rs. 12,50,000. Its
non-operating incomes were Rs. 4,00,000 and non-operating expenses were Rs. 5,00,000. If
Operating Expenses were Rs. 6,00,000, find out Gross Profit and Net Profit of the firm.
515. From the following extracts of Trial Balance of Sultan, you are required to prepare the
extracts of Financial Statements of firm for year ending 31st March 2019: [4]
Particulars Debit Balance (Rs.) Credit Balance (Rs.)
Debtors 4,35,000
Bad Debts 20,000
Provision for Doubtful Debts 20,000
Adjustments
a) Additional bad debts amounted to Rs. 35,000.
b) Create a Provision for bad debts @ 10%.
516. Calculate total sales: [4]
DEBTORS IN THE BEGNNING 25,000
BILLS RECEIVABLE ISSUED 16,00
CASH RECEIVED FROM DEBTORS 85,000
BAD DEBTS WRITTEN OFF 5,000
SALES RETURN 5,000
DISCOUNT ALLOWED 4,000
DEBTORS AT THE END 30,000
CASH SALES 80% Of credit sale

517. What is Tailor made computer software? Explain any three advantages of Tailor made
software in Accounting. [4]
OR
Management Information system is a part of Accounting Information System." Do you
agree? Give reasons in support of your answer.
518. Prepare Bank Reconciliation Statement of Renu as on 3 1st March, 2019 from the following
information. [6]
a) Balance as per Pass Book (Dr.) Rs.25,500
b) Bank collected a cheque of Rs.6, 000 on behalf of Seema but wrongly credited to
Renu’s account.
c) Cheque issued to Dhrishti of Rs.4, 000 was not presented for payment till 3rd April,
2019.
d) Deposit column of Cash book was overcast by Rs.70.
e) A cheque of Rs.5, 000 received and entered in cash Book, but was omitted to be
banked.
f) Cash deposited in Bank of Rs.6, 000 was entered as Rs.600 by Reema's Cashier.
OR
On comparing the Current account balance in the cash book of Suresh, with the Bank Pass
Book, the following discrepancies were noted:
a) Out of Rs 25,000 paid in cash, and by cheques into the bank on 31st March, 2019
cheque amounting to Rs. 6,000 were collected on 10th April, 2019.
b) Out of cheques amounting to Rs. 15,000 drawn on 26th March, 2019 cheques of Rs.
1 0,000 only were encashed.
c) A cheque of Rs. 2,500 credited in the pass book on March 28th, 2019 was
dishonored and is debited again in the pass book on 3rd April, 2019. There was no
entry in the cash book about the dishonor of the cheque until 15th April, 20 19.
d) As per standing instructions bank has transferred Rs. 1,200 from his fixed deposit
account to this current account on 27th March, 2019 but this information could be
received only on 5th April, 2017.
e) A cheque of Rs. 12, 000 drawn on his saving deposit account has been shown as
drawn on current account in cash book.
Prepare a bank reconciliation statement as at 31st March, 2019 if the Debit balance as per
Cash book on the same day was Rs.26, 000.

519. Record the following transactions in the books of Amol: [6]

On July 1 2019, Amol draws a bill on Rekha for Rs. 10,000 payable after three months for
goods sold of the same amount. Amol gets the bill discounted with her bank on August 4,
2019 at a discount of 12% p.a. On due date the bill was dishonored and noting charges was
paid Rs. 500. Rekha paid Rs. 2,500 in cash and requested to draw another bill on him for the
balance amount for 2 months with interest @ 12% p.a. which Amol did. On due date Rekha
became insolvent and his estate paid 40% as first and final instalment. Give Journal entries
in the books of Amol.
520. The Trial Balance of Naman as on 31 & March, 2019, did not match. He however, managed
to locate an excess of Rs 283, amount was placed in the suspense a/c. Rectify the following
errors and prepare suspense a/c: [6]
a. The total of returns outward book was short by Rs 100.
b. Rs. 5000 received from Jha M/S for interest on loan advanced to them were recorded
in the cash book. But no entry has been made in the ledger.
c. No entry of the goods worth Rs 40 taken by the proprietor for the personal use.
d. Discount allowed by Bramh of Rs 5 was not entered to the cash book but Bramh
book stands debited correctly.
e. Rs. 75 paid to Simian was credited to the account of Sushma as Rs 57.
521. XYZ Ltd. purchased two Machines from Haryana Manufacturers for Rs. 2,50,000 GGST &
SGST @ 9% each. On 1st July, 2016. Installation charges and carriage on both machines
amounted to Rs.50,000 each. Another Machine was purchased on 31a Dec.2017 for Rs.
1,00,000. On 1st July, 2018 one Machine, purchased on 1st July, 2016, become obsolete and
was disposed off for Rs.55, 000 and Rs.7, 000 was paid as commission to middleman. On
1st Jan, 2019, half of the Machine purchased on 31st Dec.2017 was sold off for Rs.30,000.
Prepare Machinery Account for three years, if depreciation is to be charged annually @12%
p.a. by Written down value method and books are closed on 31st March every year. [8]
OR
Following are the Balances in the books of Kaushik Equipment as on 01 April, 2018.
Machinery Account Rs.20,00,000
Provision for Depreciation Account Rs.4,50,000
On 01 July, 2018 a part of Machinery which was purchased on 01 October, 2016 for
Rs.4,00,000 was disposed off for Rs. 1,70,000. On the same date another Machine was
purchased for Rs.10, 00,000. Depreciation is to be charged @13% p.a by Written down
value method. Prepare Machinery Account and Accumulated Depreciation Account for the
year 2018-19.

522. From the following balances of The Bakers, as at 31st March, 2019 and additional
information given, you are required to prepare: [8]
i) Trading and Profit and Loss Account
ii) Balance Sheet
Trial Balance As at 31st March 2019
Name of account Debit Balance (Rs.) Credit Balance (Rs.)
Sales 50,000
Purchase 24,000
Cash in hand 4,000
Interest 800
Carriage 800
Building 12,000
Stock (1.4.18) 6,000
Debtors 8,200
Reserve 5,000
Returns 2,000 1,000
Creditors 6,500
Wages 1,200
Discount 300
Capital 30,000
5% Investment 20,000
Bank Overdraft 15,000
Travelling expenses 2,800
Salaries 5,000
Bad debts 1,000
Rent 5,000
Furniture 6,600
Leasehold Premises 10,000
Total 1,08,600 1,08,600
Additional information
i) Stock in hand valued on 31st March, 2019 was Rs. 10,000.
ii) Depreciate Furniture by Rs. 1,000 and Building by 15%.
iii) Rent is paid for 10 months.

iv) Provide for Manager’s Commission @ 10% on net profits after charging such
commission.
OR
From the following balances of the Komal Enterprises, as 31st March, 2019 and additional
information given, you are required to prepare:
i) Trading and Profit and Loss Account
ii) Balance Sheet
Debit balances (Rs.) Debit balances (Rs.)
Drawings 3,000 Rates, taxes & insurance 2,800
Debtors 20,100 Advertising 3,200
523. What are Liquid Assets ? [1]
524. The persons from whom money is owed to the firm are termed as................... [1]
525. Give the nature of the following accounts: ½x4=2
(a) Sales
(b) Drawings
(c) Accrued Expenses
(d) Bank Overdraft (negative Bank Balance)
526. According to which concept, depreciation is to be charged as per one particular method year
after year? [1]
527. A debtor who owes ? Two lakhs to the Company is rumoured to be declared insolvent. Will
this information be disclosed in the books? Why? [1]
528. Goods withdrawn by the proprietor for his personal use has not been recorded in the books
of accounts. Which accounting concept has been violated? [1]
529. Explain any three limitations of accounting. [3]
OR
What is meant by Double entry system? State any of its two advantages.
530. Differentiate between Revenue expenses and Capital expenditure. [3]
531. Explain the following GAAP and assumptions with suitable examples. 2+2=4
(a) Revenue recognition concept
(b) Matching principle.
532. Kirtika started business with a cash of Rs. 20,00,000 as on 01.04.2017. during the year, she
suffered a loss of Rs. 2,00,000. On 31.03.2018 her capital stood at Rs. 12,00,000, Bills
Payable at Rs. 1,00,000 and Bank loan Rs. 80,000. She also introduced a fresh capital of Rs.
1,00,000 during the year and she had a bank overdraft of Rs. 60,000 on 31.03.2018.
Calculate the amount withdrawn by Kirtika and total Assets on 31.03.2018. [3]

533. Mansi commenced her business with an investment of Rs.12,50,000 on 01.04.2018. On

01.05.2018 she took a loan of Rs. 5,00,000 as her personal debt and invested Rs. 2,00,000
into the business. He acquired a loan Rs. 3,00,000 from bank. On 31.03.2019 her liabilities
stand as : [3]
Trade payables Rs. 40,000
Suppliers Rs. 1,20,000
Payable wages Rs. 45,000
Calculate total assets of Mansi as on 31.03.2019.
534. Calculate the capital introduced by Madhu (proprietor) as on 01.04.2018, if the following
figures are provided: [3]
(a) Profit/Loss during the year Rs. 1,50,000
(b) Drawings made during the year Rs. 3,60,000
(c) Capital introduced on 31.05.2018 Rs. 1,00,000
(d) Total equity on 31.03.2019 were Rs. 6,60,000
(e) Creditors equity on 31.03.2019 were Rs. 1,20,000
535. Journalize: [4]
(i) Purchased goods for Rs. 1,25,000 from Neha and supplied these to Kamal for Rs.
1,55,000. Kamal returned goods worth Rs. 15,500 which in turn were returned to
Neha.
1
(ii) Purchased furniture worth Rs. 180,000 from Woodtek out of which is used to
4
furnish the office and remaining is taken into stock.
536. Journalize: [4]
Journalize in the book of Monika.
April 2017
2 Bought goods from Mittal & Sons List Price Rs. 1,50,000 less 15% trade discount
and Rs. 2,500 as cash discount for full settlement.
12 Received cash from Monty Rs. 10,000 on account of Meena.
22 Goods stolen by an employee (selling price Rs. 12,000; which is cost plus 50%)
30 Salary payable to Ms. Manisha Rs. 30,000.
537. Prepare accounting equation: [6]
Shilpa starts business with cash Rs. 3,50,000. & Stock Rs. 1,00,000.
(a) Rent paid for 15 months Rs. 1,35,000.
1
(b) Sold good to Amit Bros, costing Rs. 60,000 at a profit of 33 % on sales.
3

1 3
(c) nd of the available stock was sold to Mohit at a profit of 20% on cost and th of
2 4
the sale received in cash.
(d) She sold household furniture for Rs. 1,00,000 and out of it brings 170,000 into the
business.
(e) Interest on capital is allowed @10% on total capital introduced in business.
538. Define Book keeping.
539. Name any two objective of Accounting.
540. What is meant by tangible Asset?
541. What are the classes of Liabilities.
542. A firm earns revenue of Rs. 21000 and the expenses to earn this revenue are Rs. 15000.
Calculate its income.
543. A person who owes money against sale of goods to a firm is known as
a. Creditor b. Debtors
c. Both d. None of these
544. Purchase refers to the buying of:
a, Stationery for office use. b. Assets for factory.
c. Goods for resale d. Investment.
545. According to Money Measurement concept:
1. All transactions and events are recorded.
2. All transactions and events which can be estimated in money terms are recorded in
the books of account.
3. All transactions and events which can be measured in money terms are recorded in
the books of account
4. None of the above.
546. Accoring to going concern concept, a business is viewed as having:
a. A limited life. b. A very long life.
c. An indefinite Life. d. None of these.
547. Bank overdraft:
a. Short term liability b. Long term liability
c. contingent liability d. None of these.
548. ________ is the amount invested by the proprietor or partner in the business.
549. ________ are the assets which have physical existence.
550. __________ Accounting principle, quality of manpower is not recorded in the books of
account.

551. According to Principle of __________ closing stock is valued at lower of cost or market
price whichever is less.
552. Amount payable by the firm is called ___________.
553. Trade payable is the amount payable .or purchase of goods and services taken in the
ordinary course of business. { True/False),
554. Under the accrual basis accounting, expenses are recorded on payment, (true/false)
555. The rule for expenses account is 'Increase in expenses is debited and decreases are credited.
(True/False).
556. An account is a summarized record of transactions at one place related to a particular head.
(True /False.)
557. A debit cash balance signifies Cash in Hand (True/False)
558. Define Accounting. "Explain any two limitation of Accounting.
559. What is the difference between cash basis accounting and accrual basis accounting with
suitable example.
560. Mohan started a business on 1st April, 2017 with a capital of Rs. 25,000 and a loan of Rs.
12500 borrowed from shyam. During 2017-18 he had introduced additional capital of Rs.
12500 and withdrawn Rs. 7,500 for personal use. On 31st March, 2018 his assets were rs.
75000. Find out his capital as on 31" March, 2018 and profit made or loss incurred during
the year 2017-18.
561. Prepare the vouchers to be recorded in the books of M/s Computer Aids:
1. Jan 1 bought computer for resale for cash vide cash memo no 512
2. Sold computer for cash vide cash memo no 64.
562. Difference between Book keeping and Accountancy. State any four points.
563. On which side will the decrease in the following accounts is recorded? Also, state the nature
of the account:
a. Cash b. Bank overdraft
c. Outstanding salary paid d. Outstanding Rent
e. prepaid Insurance f. Mohan, proprietor of the business.
564. Define any three principles of Accounting:
a. Accounting entity or Business Entity Principle
b. Accounting period Principle
c. Dual aspect or Duality principle
d. Prudence or conservatism principle.

565. Prove that the accounting Equation is satisfied in all the following transactions of Suresh.
a. commenced business with cash Rs. 60000.
b. paid rent in advance Rs. 500.
c. Purchased goods for cash Rs. 30000 and credit Rs. 20000.
d. Sold Goods for Cash Rs. 30000 costing Rs. 20000.
e. Paid salary Rs. 500 and salary outstanding being Rs. 100.
f. Bought motorcycle for personal use. Rs. 5000
566. Open a T shape cash account, Put the following transactions on the proper side and balance
the account.
1. Mohan started business with cash 40000
2. Purchased goods 20000
3. Sold goods 24000
4. Paid rent 400
5. Paid salaries 600
6. Drew for personal use 1000
567. Following transactions of Ramesh for April, 2018 are given below. Journalise them.
April 1. Ramesh started business with cash 100000
April 2. Paid into bank 20000
Aprils. Bought goods for cash 50000
April 4.Drew cash from bank for office Use 10000
April 13.Sold goods to Krishna on credit 15000
April 20, Bought goods from shyam on credit. 22500
April 24. Received from Krishna 12500
And allowed him discount 500
April 28. Paid cash to shyam 21500
Discount received 1000
568. Pass the Journal entries for the following:
1. Interest due but not received Rs. 4000
2. Salaries due to staff Rs. 25000
3. Out of the rent paid this year, Rs. 2000 relates to the next year.
4. Provide 10% depreciation on furniture costing rs. 5000
5. Goods used in making furniture (sale price RS. 2000, cost Rs. 1500)
6. Received commission of Rs. 10,000 Plus CGST and SGST @ 6% each by cheque,
half of he amount in advance.

Accountancy Set (A) Class - Xi - Final

Uploaded by

Copyright:

Available Formats

Accountancy Set (A) Class - Xi - Final

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Accountancy Set (A) Class - Xi - Final

Uploaded by

Copyright:

Available Formats

Commerce Classes for CBSE & CUET By Virender Sir @ 8860020762

Accountancy Question Bank

Accountancy / Economics / Business Studies (XI- XII) 1

7. Accounting starts where book keeping_______

Accountancy / Economics / Business Studies (XI- XII) 2

Accountancy / Economics / Business Studies (XI- XII) 3

20. Outstanding Rent is a......................... account.

Accountancy / Economics / Business Studies (XI- XII) 4

26. Assertion (A): Bank statement is prepared by Bank.

Accountancy / Economics / Business Studies (XI- XII) 5

32. Provision is created by debiting:

Accountancy / Economics / Business Studies (XI- XII) 6

Accountancy / Economics / Business Studies (XI- XII) 7

49. Taxes that are levied on any Intra-State purchase are?

Accountancy / Economics / Business Studies (XI- XII) 8

51. Identify contra entry from the following.

Accountancy / Economics / Business Studies (XI- XII) 9

57. Which of the following is not an objective of accounting?

Accountancy / Economics / Business Studies (XI- XII) 10

Accountancy / Economics / Business Studies (XI- XII) 11

Accountancy / Economics / Business Studies (XI- XII) 12

Accountancy / Economics / Business Studies (XI- XII) 13

79. Match the following

Accountancy / Economics / Business Studies (XI- XII) 14

Accountancy / Economics / Business Studies (XI- XII) 15

90. Match the Following :

Accountancy / Economics / Business Studies (XI- XII) 16

96. Which qualitative characteristic of accounting information is reflected when accounting

Accountancy / Economics / Business Studies (XI- XII) 17

108. The preparation of Trial balance helps in

Accountancy / Economics / Business Studies (XI- XII) 18

April 8 Purchased for cash from M/s. Ambika Mills:

fixed assets 2,46,000 sales 53,000

debtors 20,000 return inward 1,000

bank overdraft 6,000 opening stock 7,500

Accountancy / Economics / Business Studies (XI- XII) 19

1 Cash paid for installation of machine 500

2 Received Rs 1,200 of a bad debts written-off last year. 70,000

3 Goods destroyed by fire 2,000

4 Rent outstanding 1,000

5 Paid rent Rs.500 plus CGST and SGST@9% each

01 Cash in hand 7,500

05 Cash sales of Rs. 70,000 plus CGST and SGST @ 6% each

15 Bought goods by cheque for Rs. 20,000 plus IGST @ 12%

20 Paid rent 5,000

25 Drew from bank for personal use 4,000

26 Salary paid 10,000

Accountancy / Economics / Business Studies (XI- XII) 20

132. Cash Memo is a (1)

a. Source document b. Accounting voucher

Accountancy / Economics / Business Studies (XI- XII) 21

133. Book keeping is mainly concerned with : (1)

Accountancy / Economics / Business Studies (XI- XII) 22

140. Depreciation is not charged on ___________ (1)

Accountancy / Economics / Business Studies (XI- XII) 23

Accountancy / Economics / Business Studies (XI- XII) 24

Accountancy / Economics / Business Studies (XI- XII) 25

157. Explain any three limitations of computerized accounting system. (3)

Accountancy / Economics / Business Studies (XI- XII) 26

2. ______ A/C Dr _ ___