ACCOUNTANCY- XI

Time Allowed: 1 Hr. M.M. 25

General Instructions:

(a) Prepare proper formats and give narrations.

(b) Show your workings clearly.

Q.1) Differentiate between Cash Basis and Accrual Basis of accounting. (any two difference) (2)

Q.2) Define the following terms:

a) Proprietor b) Owner’s Equity c) Expenditure (3)

Q.3) Journalize the following transactions:

a) Sold goods to Prateek for Rs. 20,000, allowed him 10% Trade Discount and 10% cash
discount. Prateek paid half of the amount in cash and balance by cheque immediately and
the cheque was deposited in to the bank on same day.

b) Purchased goods from Shashank for Rs.50,000 at terms cash discount 5% and 10% Trade
discount. 40% of the amount was paid in cash.

c) Goods lost by Rs. 20,000 and insurance company accepted the 50% of the claim.

d) Purchased furniture worth Rs. 50,000 from Sudeep Ltd. for which 10,000 were paid in cash,
10,000 were paid through cheque, and old furniture (Book value Rs. 60,000) was exchanged
for Rs. 25,000 for that new furniture and balance to be paid after one month. (8 )

Q.4) Journalize the following transactions and post them into the ledger in the books of Priyam:

Date Transactions
2010
Jan. 01 Cash in hand Rs. 90,000, Cash at Bank Rs. 3,00,000, Stock Rs. 20,000,
Building Rs. 30,000,
Jan.02 Vaishakh (Dr.) Rs. 20,000, Creditors Rs. 50,000, Bills Payable Rs. 60,000,
Jan.05 Nancy (Cr.) Rs. 40,000.
Jan. 06 Sachin paid to Varun on behalf of Priyam Rs. 2,000
Jan. 07 Goods sold to Vaishakh for cash Rs. 3,000.
Jan. 09 Settled Nancy’s account by a cheque of Rs 39,000 in full and final
Jan. 16 settlement.
Received a cheque from Vaishakh for Rs. 22,500 in full and final settlement.
Cheque of Vaishakh was returned dishonored.
Goods worth Rs. 10,000 and cash Rs. 20,000 used for personal use.

(12)