part 1 67-93

Model Question -1 [2010]
Subject: Accountancy
Time: 3 Hrs
Class: XI
P.M:35 F.M: 100
All questions are compulsory:
Q.N.1. What is accounting? How is it different from Bookkeeping? [3]
Q.N.2. What do you mean by 'Going Concern Concept"? Explain. [3]
Q.N.3. Following transactions are provided to you:
a. Started business with Rs.200000.
b. Paid rent in advance Rs.10000.
C. Goods purchased costing Rs.30000 making payment of Rs.15000.
d. Deposited cash in the bank Rs.100000.
Required: Accounting Equation: [2]
Q.N.4. Following transactions are provided to you:
a. Purchased goods costing Rs.40000 and furniture costing Rs.20000 through
cheque.
b. Amount previously written off as bad debts recovered Rs.4500.
c. Paid cheque of Rs.9000 to settle the account of creditor of Rs.10000.
d. Transferred loss of Rs.2000 to capital.
Required: a. Journal entries.b. Creditor's account
Q.N.5. Following sales transactions are provided to you: [2+1]
Jan 7. Sold to Devan
20 dozen of copies @ Rs. 15 per copy
40 bottles of ink @ Rs.50 per bottle
Jan 12 Sold to Dharma Raj on cash
1 old motorcycle of Rs.25000
Jan 20 Sold to G.Enterprises
30 sets of book @ Rs.500 per set.
10 packets of eraser @ Rs.250 per packet.
(Trade discount 10%)
Required: Sales Book and Sales account [2+1]
Q.N.6. Following cash and banking transactions are given:
July 1 Cash in hand Rs.6000
Overdraft balance Rs.10000
July 5 Sold goods for cash and deposited in the bank. 18000
July 10 Withdrawn cash from the bank Rs.5000
July 17 Paid cheque to Neena through cheque Rs.3000 for purchasing goods of
Rs. 10000.
July 22 Received cheque from Mina Rs. 10000 for settling account of Rs.11000.
July 29 Paid salary Rs.4000 through cheque and Rs. 1000 in cash.
July 31 Cheque of Mina deposited in the bank.
Required: Triple column Cash Book
Q.N.7. Following information are given:
a. On 31 March the Cash Book showed a credit balance of Rs.15000.
b. Cheques paid into bank on 10 March of Rs 12000 but recorded as Rs.21000
in the Cash Book.
c. The bank paid insurance premium of Rs. 4000 and collected direct deposit from
the customers Rs.6500
d. Bank charges debited in the Pass Book Rs.500 on March but the information was
received on 3 April.
e. Cheques deposited of Rs.15000 and credit were given by the bank for Rs.
10000 before 31 March
f. Rs.1000 was wrongly debited in the Cash Book.
Required: Bank Reconciliation Statement. [6]
Q.N.8. What is Error of Commission? Explain it with an example. [2]
Q.N.9. The following errors are located before the preparation of trial balance:
a. Goods purchased from Sheena Rs.6000 have been debited to Sheena's account.
b. Sold goods to Chandra Rs.600 recorded as Rs.6000.
c. Cash received from Deep Rs.1400 posted as Rs.4100 in Deep's account.
d. Wages debited for 2000 for the cost of installation of newly purchased machine.
Required: Entries for rectification. [4]
Q.N.10. On 1 Oct. 2003 a company purchased a motorcar costing Rs. 390000 and spent Rs.
10000 on its carriage. On 1" Jan 2004 second motorcar costing Rs.450000 was
purchased. On 30 June 2005 the first car got damaged by accident and was disposed
off at a loss of Rs 20000. On the same date a new car was purchased adding
Rs.100000 on the selling price of the disposed car. Accounts are closed on 31" Dec,
each year and depreciation is charged under Diminishing Balance-Method @ 10% p.a.
Required: Motorcar account for first three years. [2+2+4]
Q.N.11.Following information are provided to you:
Closing balance of debtors Rs.25000
Opening balance of provision for badebts Rs.4000
It was decided to create a provision for doubtful debts @ 5% on debtors after writing
off bad debts Rs.5000,
Required: Provision for bad debts account.
Q.N.12. What is sinking fund. What is it used for?
Q.N.13 Following is the trial balance of M.D.Concern extracted on 31 Dec 2006.
Debit balances Amount (Rs) Credit balances Amount (Rs)
Opening Inventory 30000 Sales 200000
Plant & machinery 1 10000 Capital 150000
Purchases 90000 Commission 2500
Interest on -loan 500 10% loan(l st July 2006) 20000
Carriage on purchase 4000 S. Creditors 55000
Wages 18000 Bank overdraft 27000
Salary 35000 Income from investment 7500
Sales tax 4300 General reserve 15000
Fixture & fittings 29000 Overdraft balance 40000
Debtors 12000
Trade charges 1700
Advertisement 2500
Patent right 3000
Land & building 125000
Sales return 2000
Investment 50000
517000 517000
Additional information:
a. The market price of closing inventory was Rs.50000 and cost price was Rs.55000.
b. Create a provision for doubtful debts @ 5% on S. debtors after writing off
Rs. 2000 asbad debts.
c. The cost of machine purchased Rs.9000 was included in furniture.
d. Goods distributed as free samples Rs.4000. БЯ
e. Depreciate plant @ 10%, furniture @ 15% and write off half of patent right. ΟΙΚΟ
f. Salary to be paid Rs.3000 and income earned but not received Rs. 1500.
Required: (i) Trading account (ii) Profit & loss account (iii) Balance sheet [3+5+7]
Q.N.14. What is revenue expenditure? Give some examples. [2]

Q.N.15. Following is the trial balance of a trading concern as on 31" Ashad 2061.
Debit Amoun Amoun

balances t Credit balances t'
Opening
stock, 6000 Sales 82000
Wages 3000 Commission 350
Salaries 7000 Capital 105000
Land 100000 10%loan 20000
Interest 1000 Rent received 6500

Debtors 7500 Provision fol bad debts 1150
Purchases 45000 Creditors 5000
Discount 500
Furniture 50000
220000 220000
a. Closing sock in hand Rs. 11000
b. Appreciate land 5%
c. Wages outstanding Rs.1000
Required Adjusted trial balance.
Q.N.16.Mrs Shrestha keeps her accounts under single entry system.She invested initial
capital of Rs 50000. Soon after that she purchased goods of Rs. 18000 and introd uce
her personal motorcar of Rs 9000 into business. She also withdrew Rs.200 per month
from the business for personal use. At the end of the year her position was as follow
Furniture-Rs.45000 Loan @10%-Rs.50000 Debtors-Rs 20000

Creditors-Re12000
Bank balance-Rs 15000 Motor car-Rs.90000 Stock-Rs.5000
a. Depreciate motorcar and furniture @5%
b. Write off bad debts Rs. 1000 and interest on loan is still payable.
Required: (1) Statement of affairs (ii) Statement of profit and loss.

Q.N.17.Explain any three features of New Accounting System.
Q.N.18.What is budget sheet? Write the importance of preparing budget sheet
Q.N.19.Following are the transactions of District Office Kathmandu:
Bhadra 2 Received budget release order for the actual expenditure of
Rs.200000 of previous month out of which the bank charged
Rs.200 for its service.
Bhadra 25The House owner Mr.K.Ram was paid rent for the months of
Shrawan, Bhadra and Ashwin @ Rs.15000 per month through cheque.
Bhadra 18 Issued a cheque of Rs.175000 for the purchase of land.
Required: Journal Voucher
Q.N.20. Following information are provided to you:
Jestha 5 Received bank transfer order of Rs.200000 and budget release
order of only Rs.175000 for the actual expenditure of last month
Jestha11 Mr.Gupta was paid in advance Rs.15000 for purchasing stationery
goods through cheque.
Jestha 21 Issued a cheque of Rs.30000 for the distribution of salary after
deducting provident fund Rs.8000, Provident fund loan of
Rs.4000 and Income tax Rs.2000
Jestha 24Purchased a sofa set costing Rs.25000 through cheque.
Jestha 28 Mr.Gupta produced bills of expenditure of Rs. 14800 of
stationery goods and cash Rs.200 to settle his advance.
Jestha 30 Reimbursed the following petty expenses through cheque.
Tea and coffee Rs.300 postal stamps Rs.100
Traveling expenses Rs.500
Required: Bank Cash Book
Q.N.21 Following information is provided to you:
Budget Annual Expenditure up Expenditure up

heads appropriation to Chaitra to Baisakh
Salary 264000 198000 220000
TADA 30000 18000 20000
Rent 120000 90000 100000
Furniture 125000 100000 100000
Machinery 200000 - 150000
a. Cash balance Rs. 1000
b. Revolving fund balance Rs.194000
c. Loan advanced to nearby office Rs.5000
d. Advance still not cleared Rs.3000
Required: Statement of expenditure showing Total revolving fund and bank
Q.N.22 The Receipt and Payment Account and Balance sheet of a club are given below:
Balance Sheet as on 31" Dec.2005

Amount Amount
Liabilities (Rs) Assets (Rs)
Capital fund 165500 Building 100000
Prize fund 20000 Debtors 30000
Advance 1500 Furniture 40000
subscription 1000 Cash & bank 18000
Outstanding
salary
188000 188000
Receipt and Payment Account
as on 31 Dec.2006
Amount Amount
Receipts (Rs) Payments (Rs)
To balance b/d 18000 By salary 8500
To subscription 24000 By prize expenses 15000
To admission fee 5000 By wages 2500

To legacies 20000 By printing & stationery 3000
To donation 30000 By machinery (1 st July) 40000
To debtors 25000 B balance c/d 60000
To sale of
furniture 7000
Book value Rs.
10000
129000 129000
Addional information
a. 3/4 of donation to be capitalized.
b. Depreciate machinery 10% p.a and furniture @5%
c. Subscription includes Rs 2000 for 2007 and doe for 2006 Rs.3000,
d. Salary outstanding Rs.2500
e. The balance of stationery in hand at the end of the year was Rs 1000.
Required: (1) Income and Expenditure account (ii) Balance as on 31" Dec 2006. [5+5]
Time: 3 Hrs
Class: XI
P.M:35 F.M:
100Model Question -2 [2010]
Time: 3 Hrs
Class: XI F.M: 100
PM: 35
Q.N.1 ONL Describe the accounting process briefly.
Q.N.2 What do you mean by Accounting period concept? Explain.
QN 2
QN. 3
ON4
131
Q.N.3 Following transactions are provided to you:

a. Business started with cash of Rs 200000.
b. Paid rent Rs.10000 including advance of Rs.2000.

c.
Purchased furniture Rs.20000 on credit and Rs.10000 on cash.

d. Loan borrowed and deposited in the bank Rs.50000.
Required: Accounting Equation:
Q.N.4 121
Following transactions are provided to you:
a. Bought a second hand motorcycle Rs.50000 and spent Rs.10000 on its repairs.
b. Goods lost by fire Rs.5000 and distributed as free samples Rs.2000
c. Paid insurance premium Rs.6000 in advance.
d. Transferred Rs.3000 profit to capital account.

Required: a. Journal entries, b. Capital account
12+11
Q.N.5 Following transactions are provided to you:

Mar 9. Returned to Recta
2 boxes of screw @ Rs.250 per box
Q.N. 5.
10 pieces of flash light @ Rs 200 per piece
vas?
8923
805 4800
Q.N.6.
Mar 15 Returned to Bohara

3 coils of wire @ Rs.600 per coil.
4 dozen screw drivers @Rs. 100 each
Required: a. Purchase return book b. Purchase return account.
12+1]
Q.N.6.
Following cash and banking transactions are given:
Jan 1 Cash in hand Rs.7500
Cash at bank Rs. 12500

Jan 4 Received a cheque of Rs.9200 from Nanny after discount of Rs.300
72
Name-
thor Name-
Jan 7 Withdrawn cash from the bank Rs.5000 for office use and Rs 3000 for
personal use.
Jan 12 Purchased goods costing Rs.9600 on credit from Geeta.

Jan 20 Received rent Rs. 14000 and deposited in the bank.
Jan24 Settled Geeta's account by endorsing cheque of Nanny.

Jan27 Paid salaries through cheque Rs.9000.
Q.N.7. Following information are given: Book

[6]
QN7
a. On 30 Nov. the passbook showed an overdraft balance of Rs 14000.

b. Two cheques of Rs.9000 each were sent for collection but one of them was
lost intransitin transit
c. The bank debited interest on overdraft Rs.700 and credited interest on

investment Rs.2000
d. Cheque issued for Rs 7500 but was dishonored by the bank.
C.
e.
Cheques drawn for Rs.8700 but was credited in the Cash Book as Rs.7800.
f. Bank collected direct deposit of Rs. 10000 from a customer before 30
but information was received on 5 Dec.only. CB Unice
Required: Bank Reconciliation Statement.
[6]
Q.N. 8. What is compensating error? Explain it with an example.

Q.N. 9.
The following errors are located after the preparation of trial balance:
a. Paid wages 2100 credited to wages account as Rs.1200
b. Purchased goods from Neelam Rs.2000 debited Neelam's account.
c. Sales book undercast by Rs.1000.
d. Credit sales to Mr.Dhana Rs 3200 treated as cash sales.

Required: Entries for rectification.
[4]
Q.N. 10 0
Nov.
On 1 Mar 2004 a company purchased a machine costing Rs.175000 with estimated life
of 20 years with scrap value of Rs. 5000 at the end. On 1 July 2005 a second machine
costing Rs.225000 was purchased and Rs.5000 was spent on its installation. It is
expected to have estimated life of 25 years with scrap value of Rs.10000. On 1" Jan
2006 the first machine became obsolete and was disposed off at Rs.160000. On the
same date a new machine was purchased with Rs.300000 having estimated life of 20
years with no scrap value. Depreciation is charged under Straight Line method on 31"
Dec.each year.
Required: Machinery account for first three years. [2+2+4]
Q.N.11
[2+2+4]
ON HFEollowing information are provided to you:
Provision for doubtful debts at the beginning Rs.2300.

Bad debts written off during the year Rs.500
Closing balance of debtors Rs 22000
Create a provision for doubtful debts @ 5% on debtors after increasing bad debts
to Rs.1200.

Q.N.12 Differentiate between provision and reserve.
Q.N. 13 Following is the trial balance of Nanda Traders extracted on 31" Chaitra 2062
121 121
73
Local Disk (C)
Debit balances
Amount (Rs
Amount (Rs) Credit balances
10000
30000
53000
20000
7500
50000
1200
275000
9000
4800
77000
500
Bills payable Bank loan
Return to suppliers Capital
Creditors
Rent from tenants
Sales
Provision for bad debts
11000 4000
Drawings
Debtors
Purchases
10% Govt Bonds
Cash & bank balance
Trade charges Salaries
Machinery
Stock
Manufacturing expenses Duty & clearing charges
Building
Loose tools
Prepaid insurance Carriage on sales
18000
50000
12000 2000
750
200000 8000
6000
250
425000
425000
Amount Amount
Debit balances (Rs) Credit balances (Rss
Drawings 10000 Bills payable 7500

Debtors 30000 Bank loan 50000
Return to
Purchases 53000 suppliers 1200
10% Govt.Bonds 20000 Capital 275000
Cash & bank balance 11000 Creditors 9000
Trade charges 4000 Rent from tenants 4800
Salaries 18000 Sales 77000
Provision for bad
Machinery 50000 debt 500
Stock 12000
Manufacturing expenses 2000
Duty & clearing charges 750
Building 200000
Loose tools 8000
Prepaid insurance 6000
Carria e on sales 250
425000 425000
a. The stock at the end was Rs.60000
b. Create a provision for doubtful debts @ 2%.

c. Insurance expired to the extent of Rs.3000 and salaries have been paid for 18 months.
d. Rent earned but not received Rs.1200.

e Credit purchase of Machinery of Rs.30000 on 1" Kartik 2062 was not recorded
at all.
f. Depreciate machine @ 10% p.a. and loose tools were revalued at Rs.7000.
Required: (i) Trading account (ii) Profit & loss account (iii) Balance sheet
13+5+7)
Q.N.14 Explain the meaning of revenue receipts with some examples.

Q.N.15. Following is the trial balance of a trading concern as on 31" Dec.2005.
Debit balances Amount Credit balances Amount

Stock 5000 Sales 30000
Rent 12000 Capital 50000
Plant 40000 Commission 2000
Furniture 10000 Creditors 9500
Goodwill 5500 Discount received 200
Debtors 4000 Bills payable 4800
Purchases 20000 Sundry receipts 1500
Salaries 500
Wages 1000
98000 98000
Debit balances Amount
Credit balances Amount
30000
5000
12000
40000
10000
50000
2000
Sales
Capital
Commission
Creditors
Discount received Bills payable
Sundry receipts
Stock
Rent
Plant
Furniture Goodwill
Debtors
Purchases
Salaries Wages
9500
5500
4000
200 4800
1500
20000
500
1000
98000
98000
74
Name-
Cathor Name-
a. Closing stock in hand Rs.13000.

b. Depreciate plant @ 15%.
c. Commission earned but not received Rs. 1000
Required: Adjusted trial balance.
Q.N.16. Mr. Sudhir commenced business on 1" Jan. with initial capital of
Rs.90000. Soon thereafter he bought furniture for Rs 20000.On 30 June

he borrowed Rs.50000 as loan @ 10% p.a. and further introduced
Rs 30000 by selling his personal property. He withdrew Rs 1000 per 2=12000
month for personal expenses. His position at the end

(excluding furniture and loan) were as follows:
Cash & bank balance Rs.35000 S. debtors Rs.5000) Stock Rs.9000
Investment Rs.90000 S, creditors Rs.4500 Machinery Rs.50000

Rs.35000 S. debtors Rs.5000)
S, creditors Rs.4500
Stock Rs.9000 Machinery Rs.50000
a. a. Interest still due on loan.
b.
b. Depreciate furniture and plant @ 10%
c.
c. Prepaid salary Rs.2000
Required: (i) Statement of affairs (ii) Statement of profit and loss.
12+21
QN.17. List out the objectives of New Accounting System.
QN.17. Q.N.18.
What is Government Accounting? Write its importance.

Q.N.19. Following are the transactions of District Office Lalitpur.:
131
Bhadra 5 Received bank transfer/odrder of 300000 as loan from Nepal Rastra

Bank
Bhadra 20
Paid rent for three months @ 15000 per month after deducting rent
tax of 15%.
Bhadra 29
Mr Hira produced bills of expenditure of Rs 80000 of furniture and
Bhadra 29
bank voucher of excess amount to settle his advance of Rs. 100000

Q.N.20.
Following information are provided to

[1+2+21
Magh 5 Received bank transfer order of Rs.250000 and budget release order
Rs.230000,
Magh 10 Paid Rs. 50000 for the purchase of cement for building construction.
of
Magh 13 Mr.Deva was paid Rs. 12000 in advance for TADA through cheque
Magh 22 Distributed salary for the month Rs.77000 and allowance Rs.5000
after deducting provident fund Rs.16000 and income tax Rs.6000.
Magh 28 Mr. Deva produced necessary bills of expenditure and cleared his
advance.
Magh 30 Issued a cheque of Rs.1000 to establish a petty cash fund.

Q.N.21.
Following information is provided to you:
Budget Annual Expenditure of Budget

heads appropriation Falgun balance
Salary 396000 33000 132000
TADA 20000 5000 8000
Office
expenses 35000 6000 12000
Rent 180000 15000 60000
Machinery 75000 20000 20000
75
Objects
ktop
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0-02-06-e151c08e
Budget heads
Salary
TADA
Office expenses
Rent
Machinery
Annual
Expenditure of Falgun
Budget balance
appropriation
396000
33000
132000
20000 35000
5000
8000
6000
12000
180000
15000
60000
75000
20000
20000
a. Total revolving fund Rs.550000.

b. Petty cash balance Rs.500
c. Security deposit received Rs.8000

d. TADA advance still not cleared Rs.4000.
Required: Expenditure report for the month of Falgun showing bank balance
and revolving fund balance.

151 Following is the Receipt and Payment Account of a club for the year ended 31"
Q.N.22 Following is the Receipt and Payment Account of a club for the year ended 31"
Dec 2006.
Receipts Amount Payments Amount

To balance b/d 25000 By salaries 9000
To subscription: By insurance 4000
By 10%
2005 1000 investment 15000
2006 20000 (1 st July 2006)
By sports
2007 3000 material 2500
To income from
investment 500 By rent 9500
To membership fee 4000 By furniture 10000
To donation 13000 By balance c/d 18650
To sale of newspaper 150
To tournament
receipts 2000
68650 68650
1Jon was a lustys
Receipt and Payment Account
as on 61" Dec.2006) current you
Receipts
Amount (Rs)
Payments
Amount (Rs)
25000
9000
4000
15000
To balance b/d To subscription:
2005
2006
2007
To income from investment
To membership fee To donation
To sale of newspaper
To tournament receipts
1000
20000
3000
500
4000
By salaries By insurance
By 10% investment (1 July 2006)
By sports material
By rent
By furniture
By balance c/d
2500
9500
10000
18650
13000
150
2000
68650
68650
a. On 1 Jan 2006 the club had furniture Rs. 10000, building Rs.150000,
and outstanding salary Rs.800 All cop
b. Subscription due on 1 Jan 2006 was Rs.2500 and on 31" Dec 2006 was
Rs.4000.
c. Donation is to be capitalized. -
d. Rent outstanding Rs.1500 prepaid insurance Rs.1000-
e. Depreciate furniture and building @ 10%.

Required: (i1) Income and Expenditure account
(ii) Balance as on 31" Dec 2006.
the up opening
76
Model Question -3 [2010] Subject: Accountancy
Class: XI
P.M:35
Time: 3 Hrs
F.M: 100
Time: 3 Hrs
Class: XI
P.M:35 F.M: 100
1. Explain in brief, the features of Double Entry Book-keeping System.
[3]
2.
What do you mean by 'Revenue Concept? Explain.

3. Following transactions are provided to you:
a) Business started with bank balance of Rs.50000 and machinery of Rs 25,000.

b) Salaries paid in advance Rs. 10,000.
c) Appreciate machinery by Rs. 2,000.

d)
Withdrew from Bank Rs. 1,000 for domestic use..
[2]
Required: Accounting Equation: Following transactions are provided to you:

[2]
a)
Purchased machinery of Rs 20,0000 and paid for carriage Rs. 2000 through
cheque.
b) Paid Salary to Mrs.Laxmi Rs. 20,000.
c) Rent paid Rs. 15,000 and still outstanding Rs.5,000 Bills receivable
Rs. 10,000 discounted with the bank at 10%.
Required: a) Journal entries. b) Mrs. Laxmi's account.
12+11
5.
Mar 3. Returned by Raghav
10 dozen eggs @Rs.2 per piece..
5 boxes of chalk @ Rs. 100 per box.

Mar 17 Returned by Anjita.
15 reams of ribbon@ Rs. 125 per ream..1875
10 sets of ruler @ Rs.90 per set
Required: a) Sales return book b) Sales return account

6. Following cash and banking transactions are given:
(2+1)
Nov-1 Opening balance of cash Rs. 10,000 and an overdraft balance at bank Rs.
1,000.
Nov-5 Received a cheque of Rs. 5,000 from Roshan & deposited into bank.
Nov-5
Nov-6 Received cash Rs.2,000 and cheque Rs. 8,000 for goods sold to Ratan
Nov-10
The cheque received from Ratan endorsed to Shyam in full settlement
of
Rs.8,200.
Nov-12 The cheque received from Roshan dis-honored by bank.

Nov-15 Interest on overdraft charged by bank Rs. 200.
Nov-15
Nov-21 Paid a cheque of Rs.1,200 in full settlement of Rs.1,400 to Raju
7. Following information are given:

Bank balance as per Pass book (cr) Rs. 4,000 as on 31-12-2000
a) a) Two cheques of Rs. 2,000 & Rs. 5,000 respectively deposited into bank,
but cheque of Rs. 2,000 credited by bank On 2 Jan next year
Bank balance as per Pass book
into bank, but
b) A charge of Rs. 100 was debited by bank for collecting an outstation cheque.
(cr) Rs. 4,000 as on 31-12-2000. a) Two cheques of Rs. 2,000 & Rs. 5,000
respectively deposited cheque of Rs. 2,000 credited by bank On 2 Jan next year
77
bjects
uments
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0-02-06-e151c08e
ce) A bills receivable Rs. 5,000 discounted with the bank for Rs. 4,800, but the
full amount was recorded in cash book.
d) A cheque of Rs.2,000 issued for payment but was credited twice in the
cash book
e) The bank had collected interest Rs.200 and charged Rs.50 for its service.
f1) Cheque issued to Ranjit Rs.1.000 was debited in the cash book by mistake.
8. What is Error of duplicacy? Explain it with an example.
161 (2)9.
The following errors are located after the preparation of trial balance:
a) Sales book over cast by Rs.600.
b) Credit sales of Rs. 2,000 were treated as cash sales.

b) . c) Sales of goods to Mr. Prakash Rs.500 credited to his personal
account.
d) Rs. 540 paid to repair of machine was debited twice to repairs account.
Required: Entries for rectification.
141
10.
0 On 1 Jan 2004 a company purchased a motorcycle costing Rs.1,00,000. On 1
Jan 2005 a second hand motorcycle was purchased for Rs. 80,000 and Rs. 10,000 was
spent its maintenance. On 30th June 2006 the motorcycle purchased on 1 Jan 2005 met
with an accident and Rs. 60,000 was received as compensation from the Insurance
company. On the same date a new motorcycle was purchased by adding Rs. 50,000 to
the compensated amount. Depreciation is charged under Straight Line Method
@10%p.a. on 31 Dec. each year.
Required: Motorcycle account for first three years.
10%p.a. on 31 Dec. each year.
11. Following information are provided to you:
[2+2+4]
Opening balance of provision for bad debts Rs.800

Bad debts written off during the year Rs. 500.
Closing balance of debtors Rs. 20,000.
Provision for bad debts to be maintained @ 2% on debtors after writing off bad debts
by Rs.500.

12. How is provision different form reserve?
121 121
78
Name-
13.
Following is the trial balance of Nanda Enterprises extracted on 31" Dec.2006.
Debit balances Amount (Rs) Credit balances Amount (Rs.)

Advertisement 3,000 Overdraft 10,000
Royalty 2,000 Bank loan @ 20% 30,000
(received on 01-01-
Machinery 50,000 2006)
Patterns 40,000 Interest on Drawing 1,500
Purchases 63,000 Capital 1,50,000
20% Govt.Bond 50,000 Creditors 9,000
Cash and bank 31,000 General reserve 5,000
Rent 12,000 Sales 1,20,000
Miscellaneous
Salaries 18,000 income 6,500
Customers 15,000
Opening stock 19,000
Wages 2,000
Preliminary 1 O,OOO
expenses 8,000
Goodwill 3,000
Interest on loan 3,600
Freight outward 2,400
Custom char es
3,32,000 3,32,000
Debit balances
Amount (Rs)
Credit balances
Amount (Rs.)
10,000 30,000
Advertisement Royalty
Machinery
Patterns
Purchases
20% Govt.Bond
Cash and bank
Rent
Salaries
Customers Opening stock
Wages
Preliminary expenses
3,000 2,000
50,000
40,000
63,000
50,000
31.000
12,000
18,000
15,000
19,000
2,000 10,000
8,000
3,000
3,600
2,400
Overdraft Bank loan @ 20%
(received on 01-01-2006)
Interest on Drawing
Capital
Creditors
General reserve
Sales
Miscellaneous income
1,500
1,50,000
9,000
5,000
1.20,000
6,500
Goodwill
Interest on loan
Freight outward
Custom charges
3,32,000
3,32,000
a) The market price of closing stock was Rs.35000 and cost price Rs. 40,000.
b) Credit purchase of Rs.5000 were not recorded.
c) Create a provision for doubtful debts @ 2% after writing off bad debts Rs.2,000.
d) Depreciate machinery @5%.
e) Salaries include Rs 4,000 paid to the personal servant of the proprietor.
f) Write of 2/5th of the preliminary expenses.
g) Provide for interest on capital @15%
Required:
(i) Trading account (ii) Profit & loss account (iii) Balance sheet [13+5+7]1 [2]
14. Give two differences between capital receipts & revenue receipts
[2]
79
Desktop
Documents
0-02-06-e151c08ef0597 e5777286b18eef603507
0-02-06-710c0601d448 354e22f4c5fc3ddc1101f
Downloads
0-02-06-e15 e5777286618
Musi
15.
Following is the trial balance of a trading concern as on 31 Dec.2006.
Credit Amou
Debit Amount Balances nt
Stock 5,000 Sales 80,000

1,00,0
Insurance 2,000 Capital 00
70,000 10% Loan 12,000
Plant &
machinery 90,000 Creditors 9,000
Vehicles 5,000 Discount 1,000
Goodwill 8,000 Rent received 7,000
Debtors 25,000 Bills payable 6,000
Rent 8,000
Wages 1,000
Interest on
Loan 1,000
2,15,0
215,000 00
Debit balances
Credit balances
Amount
Amount
Stock
Insurance Plant & machinery
Vehicles
Goodwill Debtors
Purchases
Rent Wages
Interest on Loan
5,000
2,000
70,000
90,000
5,000
8,000
25,000
8,000 1,000
1,000
Sales
Capital
10% Loan
Creditors Discount
Rent received
Bills payable
80,000
12,000
9,000
1,000
7,000
6,000
2,15,000
2,15,000
a) Closing stock in hand Rs. 12,000
b) Depreciate vehicles by 15%.

c) Write off bad debts Rs.2,000
Required: Adjusted trial balance. 131

16. Mr. Sanju keeps his accounts under Single Entry System. He started business with
bank balance of Rs. 1,00,000 and machinery worth Rs.50,000. During the year he
withdrew Rs.600 per month for domestic use. He also brought his personal vehicle of
Rs.80000 into the business. His position at the end of the year (excluding vehicle) were
as
follows:
Bank balance Rs.68,000
Bills receivable Rs. 8,000 Prepaid Insurance Rs. 60,000
Investment Rs.
5,000. Machinery
Rs. 90,000
Creditors
Rs. 10,000
a) Prepaid insurance expired Rs.4500
b) Depreciate vehicle and plant by 10%

c) Write off bad debts Rs. 1000.
Required: (i) Statement of affairs
(ii) Statement of profit and loss.
12+21
17. Write the objectives of New Accounting System.
131
18. Explain in brief, the features of Government accounting.

19. Following are the transactions of District Office Kathmandu:
131
Falgun 5 Received bank transfer order and budget release order for the
actual
expenditure of last month Rs.2,00,000

Falgun 9 Total salary of the month Rs.1,00,000 and allowance of Rs. 5,000 paid
p aid
after deducting provident fund Rs.18,000, income tax Rs.5,000

and citizen investment fund of Rs.7,000.
Falgun 27 Mr. Kesab produced bills of expenditure of Rs.8000 of furniture
and
Rs.45,000 of a computer to clear his advance.

20. Following information are provided to you:
Magh 1 I Balance at bank Rs. 50,000
Magh 5 Received budget release order of Rs. 4,00,000 and bank order of Rs.4.25,000.
Magh 22 Mr Kamal was paid in advance Rs 9,000 through cheque for furniture
Magh 26 Paid Rs. 1,000 through cheque for the establishment of petty cash fund.
Magh 29 Mr Kamal submitted bills of expenditure of Rs 11,000 and the excess amount and
paid through cheque to settle his advance.
Magh 30 Issued a cheque of Rs 200 for the payment of tea, coffee & coke.
Required: Bank Cash Bank
21 Following information is provided to you.
Annual
Budget appropriation Expenditure of Budget
heads Bhadra Balance
Salary 3 , 96, 000 33 , 000 1 ,32,000
TADA 20 ,000 5 ,000 8 ,000
Office
expenses 35 ,000 6 000 12000
Rent 1 , 80,000 60 000
Furniture 75 ,000 15 , 000 20,000
20 ,000
Additional information
a) Total Revolving Fund Rs. 5,50,000.
b) Petty cash Balance Rs. 500.
c) Security deposit received Rs. 8,000.
d) TADA advance still not cleared Rs. 2,000.
Required: (i) Expenditure report for month of Bhadra showing bank balance
22. Following is a balance sheet & Receipt and Payment Account of a club.
Liabilities Amount (Rs) Assets Amount (Rs)

Capital fund 49,250 Building 25,000
Prize fund 5,000 Equipment 12,000
subscription 750 Fixed deposit 15,000
Loan 10,000 Subscription 600
Cash & bank 12,400
65,000 65,000
12+2+11
80
Amount Amount
To Balance b\d
12,400 By wages & sala 2,600
To Subscription 16,000 By Interest on Loan 1,200
To Legacies 5,000 By Loan Paid 5,000
To Return from fixed
deposit— 1,000 By printing & stationery 1,200
To Rent of Hall 1,200 By Prize expenses 1,000
To Proceeds from
concerts 3,000 By concert expenses 2,400
To Sundry incomes 400 By Furniture 7,500
By equipments 8,000
By sundry expenses 1,700
B Balance c\d 8,400
39,000 39,000
Additional information
a) Salary paid in advance Rs. 200.

b) Return from fixed deposit receivable Rs 500
ce) Equipments and Furniture to be depreciated at 10% per annum

d) Subscription outstanding Rs 850.
154
e) 40% of the legacies is to be treated as revenue.

Required: (i1) Income and Expenditure account
(ii) Balance Sheet as on 31" Chaitra 20
Model Question -4 [2010] Subject: Accountancy
Class: XI P.M: 35
Time: 3 Hrs
F.M: 100
Rs.20,000.
Time: 3 Hrs
Class: XI
P.M:35 F.M: 100
1. What is accounting? Write its functions.

2.
[2.]
[3.] What do you mean by 'Cost concept"? Explain.
[4.]
a) Started business with cash Rs. 100,000 and furniture
b) Purchased goods costing Rs.20,000 making payment of Rs.5,000

c) Furniture destroyed by fire Rs. 2,000.
d) Prepaid rent Rs.3,000.
3.[5.] Following transactions are provided to you:

[6.]
a. Transfer Rs. 5000 from purchase account to drawing account.
b. b) Purchased machinery costing Rs. 45,000 and paid cheque Rs. 25,000 as partial
[b.]
payment.
c.
c) Salary still due for payment Rs. 1,000
e. Paid rent Rs 20,000 through cheque including house rent of the proprietor of Rs.
5,000.
Required: a) Journal entries. b) Machinery account

5. Following transactions are provided to you.
12+11
Mar 3. Returned to Mr.Basu
48 boxes of chewing gum @ Rs.300 per dozen.
6 bottles of pickle @ Rs.150 per bottle

(Trade discount 15% )
2
6 bottles of pickle @ Rs.150 per bottle (Trade discount 15% )
Mar 17 Returned to Naveen
1291
11 bags of rice @ Rs. 600 per bag

20 bags of sugar @ Rs.300 per bag.
Required: a) Purchase return book
6605
2600
b) Purchase return account.
Required: a) Purchase return book
Feb 1 Cash in hand Rs.3,000
82
Name-
Cathor Name-
Cash at bank Rs 25,000 (Cr)

Feb 4 Purchased goods costing Rs.6,000 from George Michael on credit.
Feb 9 Withdrawn cash from the bank Rs 8,000.
Feb 11 Issued a cheque to settle George Michael account Rs.5,500.
Feb 20
Sold goods costing Rs. 9,000 to Bryan and received a cheque of Rs 8,300
Feb 11 Issued a cheque to settle George Michael account Rs.5,500.
after, discount. Purchased goods and payment made through cheque Rs. 4,500 and cash
Feb 28 Purchased goods and payment made through cheque Rs. 4,500 and cash
Rs. 1,000.
Feb 29 Cheque of Bryan dishonored by the bank and bank charged Rs. 100.
[6]
a) On 30th June the Pass Book
showed a debit balance of Rs 11,000
b) Cheques deposited into bank Rs. 10,000 but wrongly recorded in credit side of cash
book
c) The bank debited interest of Rs. 300 and paid insurance premium of Rs.1,500 as per standing order.
d) Cheques drawn for Rs.20,000 but a cheque of Rs.8,000 was lost in transit.
e) A customer directly made a deposit of Rs.4,200.
f)
1) There was an over cast of Rs. 400 in the credit side of cashbook.
Required: Bank Reconciliation Statement
[6]
8. What is error of Principle? Explain it with an example.

9. The following errors are located after the preparation of trial balance:
a) Purchase book was undercast by Rs.2,000.
121
b) Goods sold to Aamir Rs.5,000 recorded through Purchase book.

c) Interest of Rs. 200 received was posted to the debit side of Interest account.
d) Wages paid Rs.2,000 has been debited to salary account. Required: Entries for rectification.
10
141
10. On 1 Oct.2004 a company purchased a machine costing Rs.1,90,000 and spent Rs.10,000 on its
installation. On 1" July 2005 second machine of Rs.1,00,000 was purchased. On 30th June.2006 the first
machine became obsolete and was disposed off at loss of Rs.15,000 and on the same date a new
machine was purchased adding
Rs 25,000 on the selling price of the machine. Depreciation is charged @ 10% pa. under diminishing
balance method on 31 Dec. each year.
Required: Machinery account for first three years.
12+2+41
11. Following information are provided to you: Closing balance of debtors Rs. 15000 & provision for bad
debts at the beginning of the year Rs.2,500. Bad debts written off during the year Rs.2000 It was decided
to create a
provision for doubtful debts @ 5%.
121
12. What is secret reserve? Give some examples of it.

13. Following is the trial balance of Shrestha Concern extracted on 31" Chaitra 2063.
(2)
Amount( Amount
Debit balances Rs) Credit balances (Rs)
Stock 25,000 Sales 1 ,25,OOO
Plant & machinery 96,000 Capital 2,45,000
Purchases 45,000 Sale of scrap 1,000
12% Govt.Bonds (1 st 50,000 Suppliers 13,000
Kartik 2063) 14,000 Reserve fund 19,000
Manufacturing wages 2,000 Pre-received income 3,300
Carriage on sales 11,000 Interest on govt. bonds 1,500
Rent 100,000 Bad debts provision 700
Land & building 6,400
Debtors 700
Printing and stationery 13,000
Bank balance 2,900
Royalty 5,500
Bills receivable 14,000
Salary 20,000
Trademark 3,000
Sales return
4,08,500
4,08,500
83
nited
on (1) of sect
DRAT
ste of Inco
Debit balances
Amount (Rs)
Credit balances
Amount (Rs)
Sales
Capital
Sale of scrap
Suppliers
Reserve fund
Pre-received income Interest on govt. bonds
Bad debts provision
1.25,000
245,000 1,000
13,000
19,000
3,300
1,500
700
Stock
Plant & machinery Purchases
12% Govt Bonds (1 Kartik 2063)
Manufacturing wages Carriage on sales
Rent
Land & building
Debtors
Printing and stationery
Bank balance
Royalty
Bills receivable
Salary
Trademark
Sales return
25,000
96,000 45,000
50,000
14,000
2,000
11,000
6,400
700
13,000
2,900
5,500
14,000
20.000
3,000
4.08.500
4,08,500
a) The market price of closing stock was Rs.35,000 and market price was Rs.5,000
more.
b) Write off bad debts Rs.400 and create a provision of Rs.1.000.

c) Depreciate plant @ 10% and land was revalued Rs. 1, 15,000.
d) Rent has been paid for 11 months and income earned to the extent of Rs.2,000.
e) Goods lost by fire Rs. 5,000 but the insurance company accepted a claim of
Rs.3,000.
f) Wages include Rs.4,000 the cost of erection of plant
Required:
(i) Trading account (i) Profit & loss account (iii) Balance sheet
13+5+7] 121
14. Give two differences between Reserve & provision.
15. Following is the trial balance of a trading concern as on 31 Dec.2005.

Salaries 6,000 Capital 34500
Plant 20,000 Loan 10,000
Furniture 10,000 Creditors 5,000
Goodwill 8,000 Commission 1 200
Debtors 7,000 received soo
Purchases 16,000 Discount 3,500
Insurance 1,000 Bills payable
Wages 2,000
75,000 75,000
Debit balances
Amount
Credit balances
Amount
Stock Salaries
Plant
Furniture Goodwill
Debtors
5,000
Sales
6,000 Capital 20,000 Loan
10,000 8,000 Commission

Creditors
7,000 received
20,000
34,500
10,000
5,000
1,200
800
84
Name-
Father Name-
3,500
Purchases
Insurance
16,000 Discount
1,000 Bills payable
2,000
75,000
Wages
75,000
a) Closing stock in hand Rs.10,000.
b) Depreciate plant @20%

ce) Prepaid salaries Rs.2,000

16. Mr. Raghu keeps his accounts under single entry system. He started his business with cash Rs.
100,000. During the year he withdrew Rs. 40,000 from the business of which
he bought furniture worth 30,000 for the business and rest of it were used for domestic purpose. He
further introduced capital of Rs.25000 He borrowed loan of Rs.10,000 from his sister @10%. His position
at the end of the year (excluding furniture and loan)
were as follows:
Plant
Rs.60,000 Debtors Rs. 6,000
Creditors- Rs. 18,000 Cash at bank- Rs.25,000

Premises- Rs.80,000.
Debtors Rs. 6,000 Cash at bank- Rs.25,000
Premises- Rs.80,000. Additional information:
a) Interest on loan still not paid.
b) Depreciate furniture and plant @5%
c) Create a provision of 2% on debtors for doubtful debts
Required: (i1) Statement of Affairs
17 Write the features of New Accounting System
12+21
(1) Statement of Affairs
18 Differentiate between Government Accounting and Commercial Accounting.

19. Following are the transactions of District Office Lalitpur
Shrawan 5 Received bank transfer order equal to 1/6" of last year's total
expenditure Rs.36,00,000 as initial imprest fund.
131 131
Shrawan10 Mrs. Jha was paid through cheque Rs.5,000 for settling her advance
on the basis of bills of expenditure

of expenditure of Rs.15,000 of a typewriter.
expenditure
Rs.36,00,000 as initial imprest fund.
Shrawan28 Rent for the month Asad, Shrawan & Bhadra was paid @ Rs.12000
per month.
Required: Journal Voucher.
[1+2+2]
20.
20. Following are provided to you:

Chaitra 1 Balance at bank Rs.50,000
Chaitra 7 Received bank transfer order and budget release order of Rs.500,000.
Chaitra 18 Mr. Gaurav was paid in advance Rs.40,000 for purchasing a computer through cheque.
Received bank transfer order and budget release order of Rs.500,000. Mr. Gaurav was paid in advance
Rs.40,000 for purchasing a computer
Chaitra 23
through cheque.
Issued a cheque of Rs.88,000 for the Distribution of salary deducting provident fund of Rs. 16,000,
Advance salary of Rs. 9,000 and income tax of Rs.3,000 through cheque.
Chaitra 26
Mr.Gaurav submitted bills of expenditure of Rs.39000 and a bank deposit voucher of the excess amount
to settle his advance.
of Rs.3,000 through cheque.
Chaitra 26
85
Issued a cheque of Rs.8
Advance salary of Rs. 9,
Chaitra 30 Purchased a printer of Rs.12,500 through cheque

21.
Following information is provided to you:
Budget Annual Expenditure of Expenditure up

heads appropriation Chaitra to Falgun
Salary 2,64,000 22,000 1,76,000
TADA 20,000 7,000 6,000
Office
expenses 35,000 9,500 13,000
Rent 1,50,000 12,500 1,00,000
Vehicles 3,00,000 2,30,000
Budget heads Annual
Expenditure of Chaitra
Expenditure up to Falgun
appropriation
Salary
TADA
Office expenses
Rent
Vehicles
2,64,000
20,000 35,000
1,50,000
22,000
7,000
9,500
12,500
1,76,000
6,000 13,000
2,30,000
a) Total revolving fund
Rs.6,00,000.
b)
Petty cash balance Rs.1,000.
c) Loan advanced to nearby office Rs. 15,000
d) Advance still not cleared Rs.2,000
Required: Statement of expenditure showing bank balance and revolving fund balance.
151
22 The Receipt and Payment Account and Balance sheet of a club are given below:
Balance Sheet as on 1" Jan.2006 Amount (Rs)
Liabilities
Assets
Amount (Rs)
Capital fund
Loan @10%
Rent due
10
1,46,500 15,000 Furniture
Building
3.500
Debtors
Subscription due Cash & bank
30,000
8,000
2,000
25.000
1,65,000
1,65.000
Receipt and Payment Account as on 31" Dec.2006
Receipts
Amount (Rs)
Payments
Amount (Rs)
To balance b/d
To subscription
To admission fee
To life membership
fee
To donation
25,000
21,000
5,000
10,000
4,500
1,500
86
By salary
By postage By loan (31" Dec'06)
By sports material
By rent
By balance c/d
8,500
5,000
15,000
13,500
8,000
21,000
Father Name-
To sale of furniture
(Book value Rs.2000)
4,000
To debtors
71,000
71,000
Amount Amount
Capital fund 1,46,500 Building 1,00,000
Loan @10% 15,000 Furniture 30,000
Rent due 3,500 Debtors 8,000
Subscription due 2,000
Cash & bank 25,000
1,65,000 1,65,000
Receipt and Payment Account as 31st Dec 2006

Amount Amount
To balance b/d 25,000 By salary 8,500
To subscription 21,000 By postage 5,000
By loan (3 1 st
To admission fee 5,000 Dec'06) 15,000
To life membership 10,000 By sports material 13,500
fee 4,500 By rent 8,000
To donation 1,500 balance c/d 21,000
(Book value Rs.2000) 4,000
To debtors
71,000 71,000
a) Donation to be treated as revenue.
b) Depreciate furniture @ 10% pa.

c) 75% of admission to be capitalized.
d) Subscription due for the year Rs.3,000 and advance for 2007 Rs.1,000
Required: (i) Income and Expenditure account (ii) Balance Sheet as on 31" Dec 2006.
15+51
Model Question -5 [2010] Subject: Accountancy Time: 3 Hrs
Class: XI
P.M:35
F.M: 100
Time: 3 Hrs
Class: XI
P.M:35 F.M: 100
1.
[1.] Provide three differences between Book Keeping & Accounting?
2. What do you understand by Realization Concept"? Explain.
[2.]
3.
131 131
[3.]
[4.] Following transactions are provided to you:
a) Started business with bank balance Rs. 3,00,000.
b) Salary still to be paid Rs.5000.
c) Machinery purchased costing Rs. 30,000 from Madan making partial payment of Rs.25,000.
(d) Settled Madan's account after a discount of 10%

[5.]
a) An amount previously written off as bad debts is now recovered Rs. 1000,
b) Intefest earned Rs. 1000 but still receivable Rs.100.
c) Goods worth Rs. 1000 distributed as free sample.

d) Transferred Rs.12,000 from profit & loss to general reserve.
(c)
12+1]
Required: a) Journal entries. b) Purchase AC
5.[6.]
[7.] Following sales transactions are provided to you:
March 1. Sold to Radha Stores, Jhapa
Buck and 5300
120 pieces of ruler @ Rs. 100 per dozen less trade discount 10%
- 40 bottles of ink @ Rs.20 per bottle
March 10 Sold to Nayan Stores, Pokhara
1 old Furniture of Rs. 25,000
2 Suu 28400
March 20 Sold to Kailash Stationers, Kathmandu
87
हुनाले कानून अनुसार कारोबार गर्नु प
30 sets of Copies @Rs 50 each.
1500.
10 packets of eraser @ Rs 250 per packet: 250 (Trade discount 10%)
6805
2000
Required: Sales Book and Sales account
12+11
13
Add
Feb 1 Cash in hand Rs. 10,000
Cash at Bank(Cr.) Rs.1,000

Feb 5 Sold goods for cash to Nadeem 18,000 and half of the amount deposited in the bank.
Feb 10
Withdrawn cash from the bank. Rs. 5.000
Feb 17 Paid cheque to Lata for Rs 3000 in full settlement for Rs. 3200.
Withdrawn cash from the bank. Rs. 5.000
Feb 22 Paid cheque to Lata for Rs 3000 in full settlement for Rs. 3200. Received cheque from Nigam Rs.
1500 for settling account of Rs.1,650.
Feb 22
Feb 23 Paid rent Rs.4,000 and still to be paid Rs.1000.

Feb 24 Cheque of Nigam dishonored by bank and the bank charges Rs.50.
Required: Triple column Cash Book [6]
[6]
On April 30" 2003 the Cash Book showed a Credit balance of Rs.20.000.
a) Cheques sent to bank of Rs. 10,000 on 5 April of which only cheques of Rs. 5,000
[a)] were
collected before 30 April.
b) Cheque of Rs. 5,000 was drawn and sent to bank but was credited twice in the
Cash Book
c) The bank made a direct payment of Rs 10,000 for rent before 20 April but
information was received only after 30 April.
d) The debit side of Cash Book was undercast by Rs. 1,000.
e) The bank debited Rs. 1,000 for interest which was debited in the cash book as well.
f1) Cheque received and sent to bank of Rs 4,000 but was debited in the cash column
of theCash Book
8. What Error of Principle? Explain it with an example.

9. The following errors are located after the preparation of trial balance:
[6] 121
a) Wages paid Rs.12000 was debited as salary paid Rs.15000,
b) Rs 540 paid for repair of Machine was debited to Machine account Rs.640.
c) Purchase of Rs. 3,000 from Mr.Manish was recorded as sale to him.
d) Rs.1000 commission earned was recorded as commission paid.
[4]
Required: Entries for rectification

10. On 30 June 2,001, a Vehicle costing Rs. 1.90,000 was purchased and Rs. 10,000 was spent on its
erection. On 30Th Dec. the same Year another Vehicle of Rs. 2,00,000 was purchased. On 1 Oct. 2003
the first machine got damaged and as it was insured, the Insurance Company paid the claim of 80% of
the book value of the damaged machine. On the same date, a new machine was purchased adding Rs.
35,000 on the compensation amount. Depreciation is charged under Reducing balance method @ 10%
p.a. and accounts are closed on 31" Dec, each year.
88
Name-
Chor Name-
Required: Vehicle account for first three years.
11.
Following information are provided to you:

Closing balance of debtors Rs. 25,000
Opening balance of provision for bad debts Rs.
4,000.
Bad debts during the year were Rs 1000
It was decided to increase the provision for doubtful debts to Rs 5000,
Required: Provision for had debts account.
12. What is "Sinking Fund"? Why is it created?

13. Following is the trial balance as on 31 March 2005.
Amoıınt Amount
Debit balances (Rs) Crcdit balances (RS)
Opening Stock 10,000 şales 200,000
Plant & machinery 1,10,000 Capital 1,00,000
Purchases 110,000 Commission 2,500
10% ıoan (1 st Juıy
Interest on loan 500 2006) 50,000
Carriage 4,000 S. Creditors 55,000
Wages 18,000 Bank overdraft 27,000
Interest on
Salary 35,000 investment 7,500
Preliminary Expenses 4,300 General reserve 25,000
Fi.xture & fittings 29,000 Accounts Payable 50,000
Customers 12,000
Trade expenses. 1,700
Advertisement 2,500
Copyright 2,000
Goodwill 1,25,000
şales return 2,000
20%Goverment Bond 50,000
(Face Value Rs.60000) 1000
Cash
5,17,000 5,17,000
13
Debit balances
Amount (Rs)
Credit balances
Amount (Rs)
Opening stock
10,000 Sales
Plant & machinery
1,10,000
Capital
Purchases
1,10000 Commission
2.500
Interest on loan
500 10% loan (1 July 2006) 50,000
Carriage
4,000 S. Creditors
55,000
Wages
18,000 Bank overdraft
27,000
Salary
35,000
Interest on investment
7,500 25,000
Preliminary Expenses 4,300 General reserve Fixture & fittings
29,000 Accounts Payable
50,000
Customers
12.000
Trade expenses. Advertisement
1,700
2,500
2.000
Copyright
Goodwill
1.25,000
Sales return
2,000
20%Goverment Bond
50,000
(Face Value Rs.60000)
Cash
1000
5,17,000
5,17,000
a) The market price of closing inventory was Rs. 10,000 less than the cost price which was Rs 60,000.
b) Create a provision for doubtful debts @ 5% on debtors after writing off Rs. 2,000
as bad debts.
c) Salary is paid for 10 months only.
d) Cash worth Rs. 1000 stollen by thieves not recorded.

e) Depreciate plant @ 10% & Vehicle @ 15% and write off 50% of preliminary
f) 89
orporated it on the
of Companies
Plant & Machinery includes Rs. 10000 being the cost of Vehicle Purchase
Required: (i) Trading account (ii) Profit & loss account (iii) Balance sheet
13+5+7
14. What is revenue expenditure? Give some examples.
15.
Following is the trial balance of a trading concern as on 31" Ashad 2061

Insurance 2,000 Capital 1,00,000
Plant &
machinery 70,000 10% Loan 12,000
Vehicles 90,000 Creditors 9,000
Goodwill 5,000 Discount 1,000
Debtors 8,000 Rent received 7,000
Purchases 25,000 Bills payable 6,000
Rent 8,000
wages 1,000
Interest on Loan 1,000
2,15,000 2,15,000
, Amount
Debit balances
Amount
15
Credit balances
Stock
Sales Capital
80,000
Insurance
Plant & machinery
Vehicles
5,000
2,000
70,000
12,000 9,000
10% Loan
Creditors
90,000
1,000
Goodwill
5,000
Discount
7,000
Debtors
8,000
Rent received
6,000
Purchases
25,000
Bills payable
Rent
8,000
1,000
Wages Interest on Loan
1,000
2,15.000
2.15.000
a) Insurance un-expired Rs.500

b) Depreciate vehicles by 15%.
ce) Create a provision for Doubtfull debts Rs.2,000.

131
16. Mrs. Anjita started a beauty parlour on 15 Jan. with a capital of Rs. 60,000 She Immediately bought a
vehicle Rs. 20,000 On 15 July she borrowed Rs. 10000 at 10% interest per annum. She sold her own
scooter for Rs. 50,000 and half of the amount was introduced into business. She withdrew Rs 1500 each
month for domestic use. On 31" Dec. her position was as follows
Cash in hand
Rs.
4,000
Cash at Bank k
Rs. 8,000
Sundry debtors
Rs. 17,500
Bills Receivable
Rs. 4,500
Land & Building
Rs.
30,000
Sundry creditors
Rs. 2,200
Vehicle to be depreciated by 10%
Interest on loan is to be paid Outstanding salary Rs. 800
Required: (1) Statement of affairs

17. 90
Name-
Name-
[31
Explain any three features of New Accounting System
18. Write short notes on Shyahas and Dhapot
19. Following are the transactions of District Education Office Kathmandu
Arwin 3 Received budget release order of Rs.2,00,000 for actual expenditure of the previous month
and a bank order only for Rs. 2.50,000.
Aswin 29 Out of the total salary of the month Rs. 3.30,000 and allowances of Rs 50,000 were
distributed after deducting provident fund Rs. 33,000, Rs 4,000 for personnel loan
and Rs 1,000 for income tax. 0
Aswin 30 Rent for the months of Bhadra, Aswin & Kartik @ Rs. 20,000 per month was paid
through cheque deducting rent tax 15%
20. Following information are provided to you: 4,000 for personnel loan and Rs 1,000 for income tax.
Rent for the months of Bhadra, Aswin & Kartik @ Rs. 20,000 per month was paid through cheque
deducting rent tax 15%
Magh 5 Received bank transfer order of Rs. 2,00,000 and budget release order of only
Rs. 1.75,000 for the actual expenditure of last month.S
Magh 11 Mr.Kishore was paid in advance Rs.5,000 for purchasing office furnishings
through cheque.
Following
are the transactions of District Education Office Kathmandu
Received budget release order of Rs.2,00,000 for actual expenditure of the previous month and a bank
order only for Rs.2.50,000.
Out of the total salary of the month Rs. 3.30,000 and allowances of Rs
50,000 were distributed after deducting provident fund Rs. 33,000, Rs.
4,000 for personnel loan and Rs 1,000 for income tax. Rent for the months of Bhadra, Aswin & Kartik @
Rs. 20,000 per month was paid through cheque deducting rent tax 15%
11+2+21
20.
Following information are provided to you: Received bank transfer order of Rs. 2,00,000 and budget
release order of
only Rs. 1.75,000 for the actual expenditure of last month.
Mr.Kishore was paid in advance Rs.5,000 for purchasing office furnishings through cheque.
Magh 21 Issued a cheque of Rs. 100,000 for the distribution of salary after
deducting provident fund Rs. 8,000, Provident fund loan of Rs.4,000

and
Income tax Rs. 2,000
Magh 24 Purchased a computer costing Rs. 25,000 through cheque.

Magh 28
Mr.Kishore's advance was cleared as he produced a bank deposit voucher
Rs. 200 to settle his advance.
Magh 30
Reimbursed the following petty expenses through cheque.
Tea and coffee Rs. 150, postal stamps Rs.10, Taxi fare Rs. 50

Expenditur e
BH. till end of Expenditure
NOS. Budget Head Annual Magh of Falgun
1.01 Salary 3,00,00 1,75,000 25,000
0
1.02 Allowances 20,000 10,000 2,000
1.04 Uniforms 45,000 25,000 3,000
Repairs& 1,80,00
2.05 Maint. 0 90,000 15,000
Office
2.03 expenses 24,000 18,000 2,000
1,20,00
6.01 Furniture 0 55,000 10,000
Machinery\ 2,40,00
6.03 Equip. 0 1,50,000 18,000
92000
0 523000 75000
161
21.
B.H.
Budget Head
Annual
Expenditur e till end of Magh
Expenditur e of Falgun
NOS.
Appropriation
Magh 21
Magh 24 Magh 28
300000
175000
25000
1.01
Salary
10000
2000
20000
Allowances
1.02
25000
3000
45000
1.04
Uniforms
180000
15000
90000
2.05
Repairs & Maint.
18000
2000
2.03
24000
Office expenses
120000
55000
10000
16.01
Furniture
150000
18000
6.03
Machinery Equip 240000
523000
75000
920000
91
fe of
prated it on the 12
Companies Act
Chaitra I
Chaitra S Chaitra &
Chaitra 12
Received bank onder and Budget release order for actual expenditure
last month.
Issued a cheque of Rs 24000 for repairs of machinery and equipment A Cheque of Rs.90000 was
received as additional Budget release An Advance of section officer Mr.Kiran was cleared on the basis of
Purchased two sets of computers from Joshi computer link for Rs 36005
furniture bill of Rs.14000.
Total salary Rs 33000 for the month of Bhadra was distributed through cheque after deducting Rs 6000
for provident fund, Rs1000 for personal foun
and Rs.2000
Chaitra 1 Received bank order and Budget release order for actual expenditure of last month.
Chaitra 5 Issued a cheque of Rs 24000 for repairs of machinery and equipment
Chaitra 8 A Cheque of Rs.90000 was received as additional Budget release
Chaitra 12 An Advance of section officer Mr.Kiran was cleared on the basis of
furniture bill of Rs.14000.
Chaitra 18 Purchased two sets of computers from Joshi computer link for Rs 36000
Chaitra 30 Total salary Rs 33000 for the month of Bhadra was distributed through cheque
after deducting Rs 6000 for provident fund, Rs1000 for personal found and Rs.2000
for income tax.
Required: Posting into the Budget Sheet.
Amount Amount
Capital fund 1,00,000 Premises 90,000
10% Loan 50,000 Furniture 20,000
o/s creditors(stationery) 5,00 Equipment 30,000
Prepaid
Subscription 2,000 insurance 1,500
Salary payable 1,000 Subscription 4,000
Tournament Fund 4,500 Cash Balance 12,500
1,58,000 1,58,000
Amount (Rs)
Liabilities
Amount (Rs)
Assets
Premises
90,000 20,000
Capital fund
Furniture
50,000
10% Loan
30,000
5,00
2,000
1,500 4,000
ols creditors(stationery)
Subscription Salary payable
Tournament Fund
Equipment
Prepaid insurance
Subscription
Cash Balance
1,000
4500
12,500
1,58,000
1.58,000 22. The Receipt and Payment Account and Balance sheet of a club are given below:
Balance Sheet as on 1 Jan 2005
Recei pt and Payment Accountas on 31" Dec.2005

Amount Amount
To balance b/d 12,500 By Land & Building 80,000
By Equipment (1-7-
To subscription 2005) 20,000
For 2004 : 4000 By Salaries 50,000
By Printing &
For 2005: 110000 Stationery 3,000
1,
For 2006: 5000 19,000 By Repairs 500
By Tournament
To Endowment Fund 20,000 Expenses 20,000
To Donation 27,500 By Insurance 2,500
To Entrance Fees 5,000 By Postage 500
To Tournament Receipts 25,000 By Dance expenses 10,000
To sale of furniture By Balance c\d 27,500
( Book value Rs 4000) 5,000
2,14,000 2,14,000
Receipts
Amount (Rs) Payments
Amount (Rs)
To balance b/d
12,500
80.000
To subscription
By Land & Building
By Equipment (1-7-2005)
By Salaries
20,000
For 2004:
4000
50,000
For 2005: 110000) For 2006:

3,000
5000
1.19,000
500
To Endowment Fund
20,000
20,000
To Donation To Entrance Fees
27.500
By Printing & Stationery
By Repairs
By Tournament Expenses
By Insurance
By Postage
By Dance expenses
By Balance eld
2,500
5,000
500
To Tournament Receipts
25,000
10,000
27,500
92
(Book valoe Rs 4000)
5,000
2,14,000
2,14,000
a)
3/4 of donation to be capitalized.

bh) Depreciate equipment @ 5%
c) Outsanding creditors for printing Rs. 300 and closing stock of stationery Rs.500
d) Subscription outstanding Rs. 1,000.
Required: (1) Income and Expenditure account (ii) Balance as on 31" Dec 2005.
15+5]

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Model Question -1 [2010]

Q.N.14. What is revenue expenditure? Give some examples. [2]

Debit Amoun Amoun

Interest 1000 Rent received 6500

Furniture-Rs.45000 Loan @10%-Rs.50000 Debtors-Rs 20000

Required: (1) Statement of affairs (ii) Statement of profit and loss.

Q.N.21 Following information is provided to you:

Budget Annual Expenditure up Expenditure up

Balance Sheet as on 31" Dec.2005

To admission fee 5000 By wages 2500

All questions are compulsory:

Q.N.3 Following transactions are provided to you:

b. Paid rent Rs.10000 including advance of Rs.2000.

Purchased furniture Rs.20000 on credit and Rs.10000 on cash.

Required: Accounting Equation:

Following transactions are provided to you:

c. Paid insurance premium Rs.6000 in advance.

d. Transferred Rs.3000 profit to capital account.

Q.N.5 Following transactions are provided to you:

10 pieces of flash light @ Rs 200 per piece

(Trade discount 15%)

Mar 15 Returned to Bohara

4 dozen screw drivers @Rs. 100 each

Required: a. Purchase return book b. Purchase return account.

Jan 1 Cash in hand Rs.7500

Cash at bank Rs. 12500

Jan 12 Purchased goods costing Rs.9600 on credit from Geeta.

Jan24 Settled Geeta's account by endorsing cheque of Nanny.

Required: Triple column Cash Book

Q.N.7. Following information are given: Book

a. On 30 Nov. the passbook showed an overdraft balance of Rs 14000.

lost intransitin transit

c. The bank debited interest on overdraft Rs.700 and credited interest on

d. Cheque issued for Rs 7500 but was dishonored by the bank.

but information was received on 5 Dec.only. CB Unice

Required: Bank Reconciliation Statement.

Q.N. 8. What is compensating error? Explain it with an example.

b. Purchased goods from Neelam Rs.2000 debited Neelam's account.

c. Sales book undercast by Rs.1000.

d. Credit sales to Mr.Dhana Rs 3200 treated as cash sales.

ON HFEollowing information are provided to you:

Provision for doubtful debts at the beginning Rs.2300.

Required: Provision for bad debts account.

Local Disk (C)

Amount (Rs) Credit balances

Bills payable Bank loan

Return to suppliers Capital

Rent from tenants

Provision for bad debts

10% Govt Bonds

Cash & bank balance

Trade charges Salaries

Manufacturing expenses Duty & clearing charges

Prepaid insurance Carriage on sales

Drawings 10000 Bills payable 7500

a. The stock at the end was Rs.60000

b. Create a provision for doubtful debts @ 2%.

d. Rent earned but not received Rs.1200.

Q.N.14 Explain the meaning of revenue receipts with some examples.

Debit balances Amount Credit balances Amount