ACCOUNTANCY – ANSWER KEY SCHOOL PORTION

TEST – II
1. (c) Nil

2. (c) Deferred revenue expenditure.

R
3. (b) Yes, because of accrual concept.

4. (d) ₹26,666.

5. (d) Selection of staff.

SI
6. (c) (a) or (b)

7. (a) On debit side

8. (a) Current.

9. (c) Consistency Principle.

10. (b) Cash basis H

11. (d) conservatism principle.

12. (c) ₹72,000 is the value received.

13. (c) Transaction between the business and its owner is recorded considering the business point of view.
US
14. (c) Goods for resale.

15. (c) Going concern principle.

16. (a) Duality principle or concept.

17. (b) ₹ 40,000

Cost = 6,00,000
less: Dep 1,20,000
Book Value = 4,80,000
Sale Value = 4,40,000
AY

Loss on Sale = 40,000

18. (b) ₹ 5,400 (Cr.)

19. (a) Supply of services to government

20. (a) ₹ 3,790 – Favourable Balance

21.
Liabilities +
Assets Capital
Prepaid Prepaid
Transactions Cash Stock Salary Insurance Creditors Capital
(a) Started business with cash 40,000 0 0 0 0 40,000
(b) Bought goods on cash and on -
credit for Ram 10,000 25,000 0 0 15,000 0
st
1 U- 10, 1 Floor, Central Plaza, New City Light Road, Surat | Contact No. +91-8320080025 18-09-2024
 New Equation 30,000 25,000 0 0 15,000 40,000
(c) Sold goods bought for cash to -
mohan 12,000 10,000 0 0 2,000
New Equation 42,000 15,000 0 0 15,000 42,000
-
(d) Setttled Ram account 14,750 0 0 0 -15,000 250
New Equation 27,250 15,000 0 0 0 42,250

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(e) Akash requested advance salary -
and he got it 11,000 0 11,000 0 0 0
New Equation 16,250 15,000 11,000 0 0 42,250
(f) Paid insurance premium also for
next year 2,000 0 0 500 0 -1,500
New Equation 14,250 15,000 11,000 500 0 40,750

SI
Total 40,750 40,750
OR
(a) Asset – Liability = Capital
Asset – Creditors = Capital
5,00,000 – 1,40,000 = ₹ 3,60,000 (Closing Capital)

Profit earned during the year = Closing Capital – Opening Capital

= ₹ 3,60,000 – 2,20,000
H = ₹ 1,40,000.

(b) Asset – Liability = Capital

2,60,000 – 80,000 = ₹ 1,80,000 (Closing capital)

Opening Capital = Closing Capital + Drawings – Additional Capital – Profit

= 1,80,000 + 30,000 – 40,000 – 50,000
= ₹ 1,20,000.
US
22. In the Books of ……
Journal
Date Particulars L.F Dr (Rs.) Cr (Rs.)
(a) Plant A/c Dr 35,000
To Raman stores 32,000
To Cash A/c 3,000
(Being plant purchased)
(b) Purchased A/c Dr 18,000
Cartage / Carriage inward A/c Dr 500
To Discount Received A/c 360
AY

To Cash A/c 18140

(Being goods purchased and cartage paid)
(c) Machine A/c Dr 20,000
To Cash / Bank A/c 20,000
(Being machine purchased)
(d) Insurance Premium A/c Dr 500
Drawings A/c Dr 800
To Bank A/c 1,300
(Being insurance premium and income tax paid)
(e) Furniture A/c Dr 5,000
To Cash A/c 1,000
To Purchase A/v 4,000
(Being goods used to make furniture)

2 U- 10, 1st Floor, Central Plaza, New City Light Road, Surat | Contact No. +91-8320080025 18-09-2024
23. (i)
Sales Book
Date Invoice Name of Customer LF Amount
No.
04-Jan 101 Goyal & Co., Rohtak 2,500
08-Jan 103 Mittal & Co., Jind 1,625
31-Jan 4,125
06-Jan Not be recorded in Sales book as it is cash transaction

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(ii)
Sales Return Book
Date Credit Name of Customer LF Amount
Note No.
10-Jan Sharma & Bro., Chandigarh 1,350
1500

SI
- 10 Trade discount 150
1,350
28-Jan Sunil Kumar, Delhi 1,200
31-Jan 2,550

24. BANK RECONCILIATION STATEMENT

As on 31st December, 2009
Particulars Plus Items Minus
Rs. Items Rs.
Overdraft as per Cash Book (Cr.) 5,600
Cheques drawn but not cashed 3,946
H
Cheques paid into the bank but not credited till 31st December
Bills receivable dishonoured previously discounted with the bank
Bank charges debited in the Pass Book
Interest on overdraft
Interest on investment 760
4,891
520
55
120

Overdraft as per the Pass Book (Dr.) 6,480

11,186 11,186
US
25.
Furniture A/c
Date Particular J.F. ₹ Date Particular J.F. ₹
2016 2017
July 1 To Cash A/c 1,00,000 March 31 By Depreciation A/c 11,250
March 31 By Balance c/d 88,750
1,00,000 1,00,000
2017 2018
April 1 To Balance b/d 88,750 March 31 By Depreciation A/c 15,000
March 31 By Balance c/d 73,750
AY

88,750 88,750
2018 2019
April 1 To Balance b/d 73,750 March 31 By Depreciation A/c 15,000
March 31 By Cash A/c 50,000
March 31 By P/L A/c 8,750
73,750 73,750

3 U- 10, 1st Floor, Central Plaza, New City Light Road, Surat | Contact No. +91-8320080025 18-09-2024
26. In the books of Laxman, Mumbai
Journal
Date Particular L.F. Debit Credit
Purchases A/c 80,000
Input CGST A/c 7,020
Input SGST A/c 7,020
To Bank A/c 44,840
To Discount Received A/c 2,000

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To Vaibhav’s A/c 47,200
(Being goods brought with CGST & SGST)
Mahesh’s A/c 80,240
Bank A/c 1,15,546
Discount Allowed A/c 4,080

SI
To Sales A/c 1,70,000
To Output CGST A/c 14,933
To Output SGST A/c 14,933
(Being goods sold to Mahesh CGST & SGST)

27. Trail Balance as on 31st March,2022

Heads of Accounts L.F. Debit (Rs.) Credit (Rs.)
Computers A/c 2,46,000 -
Capital A/c - 2,50,000
Debtors A/c 20,000 -
H Creditors A/c
Purchases A/c
Sales A/c
Returns Outward A/c
-
35,000
-
-
22,000
-
53,000
500
Bills Payable A/c - 4,000
Bills Receivable A/c 8,000 -
US
Cash in Hand 1,000 -
Bank Overdraft A/c - 6,000
Opening Stock A/c 7,500 -
Salaries A/c 15,000 -
Rent A/c 3,000 -
Total 3,35,500 3,35,500

28.
Transactions Accounts Nature Balance
(1) Cash A/c Real (Comes In) Debit
Capital A/c Personal (Giver) Credit
AY

(2) Furniture A/c Real (Comes In) Debit

Cash A/c Real (Goes out) Credit
(3) Purchase A/c Nominal (Expenses) Debit
Suresh Personal (Giver) Credit
(4) Cash A/c Real (Comes In) Debit
Sales A/c Nominal (Incomes) Credit
(5) Cash A/c Real (Comes In) Debit
Debtors A/c Personal (Giver) Credit
(6) Rent A/c Nominal (Expenses) Debit
Cash A/c Real (Goes out) Credit
(7) Cash A/c Real (Comes In) Debit
Bank A/c Personal (Giver) Credit
(8) Cash A/c Real (Comes In) Debit
Interest A/c Real (Comes In) Credit

4 U- 10, 1st Floor, Central Plaza, New City Light Road, Surat | Contact No. +91-8320080025 18-09-2024
29. Journal
Date Particulars L.F. Dr Cr
(a) Furniture A/c Dr. 60,000
Input CGST A/c Dr. 3,600
Input SGST A/c Dr. 3,600
To Bank A/c 67,200
(b) Rent A/c Dr. 2,000
Input CGST A/c Dr. 120

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Input SGST A/c Dr. 120
To Bank A/c 2,240
(c) Aman A/c Dr. 1,12,000
To Sales 1,00,000
To Output CGST A/c 6,000

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To Output SGST A/c 6,000
(d) Machine A/c Dr. 2,000
To Cash A/c 2,000

30. (i)
Purchase Book
Date Invoice Name of Supplier LF Amount
No.
01-Jan 401 Goyal Mills, Surat 5,500
15-Jan 355 Mittal Mills, Bangalore 2,600
H 31-Jan

08-Jan
30-Jan
Not be recorded in Purchase book as it is cash transaction
Not be recorded in Purchase book as Asset is purchased
8,100

(ii)
Purchase Return Book
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Date Debit Name of Supplier LF Amount
Note
No.
07-Jan Amba furniture, New Delhi 3,600
10 Chairs @ 200 each 2,000
20 Stools @ 100 each 2,000
4,000
- 10 Trade discount 400
3,600
31-Jan 3,600

31. Cash A/c

AY

Dr. Cr.
Date Particular J.F. Rs. Date Particular J.F. Rs.
2023 2023
Apr 1 To Balance b/d 30,000 Apr 12 By Purchases A/c 9,800
Apr 2 To Sales A/c 20,000 Apr 14 By Furniture A/c 6,000
Apr 17 To Lal Chand’s A/c 14,250 Apr 30 By Salary A/c 15,000
Apr 23 To Sales A/c 15,000 Apr 30 By Balance c/d 49,550
Apr 30 To Interest Rec’d A/c 1,100
80,350 80,350
May 1 To Balance b/d 49,550

Lal Chand’s A/c

Dr. Cr.

5 U- 10, 1st Floor, Central Plaza, New City Light Road, Surat | Contact No. +91-8320080025 18-09-2024
 Date Particular J.F. Rs. Date Particular J.F. Rs.
2023 2023
Apr 1 To Balance b/d 7,000 Apr 17 By Sales Return A/c 2,500
Apr 7 To Sales A/c 10,000 Apr 17 By Cash A/c 14,250
Apr 17 By Discount Allowed A/c 250
17,000 17,000

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Furniture A/c
Dr. Cr.
Date Particular J.F Rs. Date Particular J.F Rs.
2023 2023
Apr 1 To Balance b/d 8,000 Apr 30 By Balance c/d 14,000
Apr 14 To Cash A/c 6,000

SI
14,000 14,000
May 1 To Balance b/d 14,000

Vinod’s A/c
Dr. Cr.
Date Particular J.F. Rs. Date Particular J.F. Rs.
2023 2023
Apr 30 To Balance c/d 18,000 Apr 1 By Balance b/d 8,000
Apr 12 By Purchases A/c 10,000
18,000 18,000

Dr.
H May 1

Salary A/c
By Balance b/d 18,000

Cr
Date Particular J.F. Rs. Date Particular J.F. Rs.
2023 2023
US
Apr 30 To Cash A/c 15,000 Apr 30 By Prepaid Salary 500
Apr 30 By Balance c/d 14,500
15,000 15,000
May 1 To Balance b/d 14,500

32.
JOURNAL ENTRIES ON 31ST MARCH, 2023

Sr.No. Particulars L.F. Dr. (₹) Cr. (₹)

(a) Manager’s Comm. A/c Dr. 6,000
To Outstanding Manager’s Comm. A/c 6,000
AY

1,06,000×6/106
(B) Interest on Loan A/c Dr. 10,125
To Outstanding Interest on Loan A/c 10,125
1,50,000×9%×9/12
(c) Trading A/c Dr. 32,000
To Profit & Loss A/c 32,000
(d) Purchases Returns A/c Dr. 7,000
To Purchases A/c 7,000
(e) Mr. A’s Capital A/c Dr. 10,000
To Drawing’s A/c 10,000
(f) Wages A/c Dr. 10,000
To O/s Wages A/c 10,000

6 U- 10, 1st Floor, Central Plaza, New City Light Road, Surat | Contact No. +91-8320080025 18-09-2024
33. Cash Book
DATE PARTICULARS L.F. CASH BANK DATE PARTICULARS L.F. CASH BANK
2010 2010
Jan-01 To Balance b/d 100 1,450 Jan-02 By Bank A/c C 5,000
Jan-01 To Investment A/c 6,000 Jan-03 By Purchases A/c 1,200
Jan-02 To Cash A/c C 5,000 Jan-04 By Wages A/c 250
Jan-08 To Mohan 980 Jan-14 By Stationary A/c 150
Jan-20 To Bank A/c C 300 Jan-16 By Purchases A/c 600

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Jan-24 To Sales A/c 170 Jan-19 By Shyam 370
Jan-27 To Sharma 1,800 Jan-20 By Cash A/c C 300
Jan-28 To Cash A/c C 1,500 Jan-22 By Drawings 200
Jan-28 By Bank A/c C 1,500
Jan-28 By Purchases A/c 200
Jan-30 By Rent A/c 200

SI
Jan-31 By Balance c/d 870 6,460
8,370 8,930 8,370 8,930
Feb-
01 To Balance b/d 870 6,460

Journal proper
Date Particular L.F Dr (Rs.) Cr (Rs.)
2010
Jan 5 Cheque in Hand A/c Dr 980
Discount Allowed A/c Dr 20

Jan 19
H
To Mohan A/c
(Being cheque received in full settlement)
Shyam’s A/c
To Discount Received A/c
Dr 30
1,000

30
(Being received discount)
Jan 27 Discount Allowed A/c Dr 200
US
To Sharma’s A/c 200
(Being allowed discount)

34. BANK RECONCILIATION STATEMENT

AS ON 31ST December, 2009
Particulars Plus Items Rs. Minus Items Rs.
Balance as per the Pass Book (Dr.) 17,800
Less: Cheque issued but not present for payment 6,800
Add: Cheque sent to the bank for collection but not yet credited 4,200
Cheque debited in the Cash Book but not presented in the bank 1,200
Insurance premium paid by the bank 1,450
Bill dishonoured but not recorded in the Cash Book 6,200
AY

Bank charges and interest charged by the bank 350

Balance as per the Cash Book (Cr.) (Overdraft) 11,200
24,600 24,600

7 U- 10, 1st Floor, Central Plaza, New City Light Road, Surat | Contact No. +91-8320080025 18-09-2024