DELHI PUBIC SCHOOL, Nacharam

Accountancy – XI
Question Bank
Q1.What are the due dates of the following instruments?
(i) A Bill of Exchange, dated 12th July, 2018 payable 3 months after date.
(ii) A Promissory Note, dated 31st March, 2018 payable 90 days after date.
(iii) A Bill of Exchange, dated 5th August, 2018 payable 60 days after sight, acceptance on
10th August, 2018.
(iv) A Bill of Exchange, dated 30th June, 2018 payable 3 months after date.

Q2. Dev owes Rs. 10,000 to Krishan. On 1st May, 2019 he sent his Promissory Note for the
amount payable, after 3 months. On 1st June, 2019, Krishan endorses the Promissory Note
in favour of Wahid to whom he owed the like amount. On the due date, Dev paid the amount.
Pass the Journal entries in the books of Krishan, Dev and Wahid.

Q3. Ashok draws on Brij three Bills of Exchange for Rs. 5,000; Rs. 4,000 and Rs. 3,000
respectively for goods sold to him on 1st February, 2019. These bills were for one month, two
months and three months respectively. The first bill was endorsed to his creditor Chand. The
second bill was discounted @ 12% p.a. with bank on 4th February, 2019 and the third bill was
sent to bank for collection on 30th April. On the due dates, all the bills were met by Brij. The
bank sent the collection advice for the third bill after deducting Rs. 25 as collection charges.
Pass the Journal entries in the books of Ashok and Brij.

Q4. Rakesh draws a bill on Bhavesh for Rs. 20,000 on 4th September, 2018 payable after 4
months. Rakesh discounts the bill with the bank @ 12% p.a. on 7th October. The bill is
dishonoured on the due date. Pass the necessary Journal entries in the books of Rakesh
and Bhavesh if the bank paid Rs. 300 as noting charges.

Q5. On 1st October, 2018, X sells goods to Y for Rs. 25,000 and draws two bills of exchange
on him: the first for Rs. 15,000 for 2 months and second for the balance for 3 months. Y
accepts and returns these bills to X Both the bills are sent to the bank for collection. In due
course, X receives the information from the bank that the bill for Rs. 15,000 has been duly met
and the other bill has been dishonoured. Noting charges paid on the dishonour of the second
bill are Rs. 500.
Pass Journal entries in the books of X.

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Q6. Pass the Journal entries to rectify the following errors detected during preparation of the
Trial Balance:
(i) Purchases Book is undercast by Rs. 1,000.
(ii) Wages paid for construction of office debited to Wages Account Rs. 20,000.
(iii) A credit sale of goods Rs. 1,200 to Ramesh has been wrongly passed through the
Purchases Book.
(iv) Goods purchased for Rs. 5,000 were posted as Rs. 500 to the Purchases Account.
(v). 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 has been posted to the personal account of
Mahesh Chand.
(vi) A credit purchase of Rs. 1,040 from Ramesh was passed in the books as Rs. 1,400.
(vii) Goods (Cost Rs. 5,000; Sales Price Rs. 6,000) distributed as free samples among
prospective customers were not recorded anywhere.
(viii) Goods worth Rs. 1,500 returned by Green & Co. have not been recorded anywhere.

Q7. Give the Journal entries to rectify the following errors using Suspense Account, where
necessary:
(i) Goods of the value of Rs. 2,000 returned by Mr. Gupta were entered in the Sales Book and
posted therefrom to the credit of his account.
(ii) Goods worth Rs. 1,500 bought by the proprietor for his personal use without any payment
being made as yet, was wrongly entered in the Purchases Book.
(iii) A cheque for Rs. 500 received from Ashok was dishonoured and has been posted to the
debit of Sales Return Account.
(iv) The total of one page of the Sales Book was carried forward to the next page as Rs. 680
instead of Rs. 860.
(iv) An item of Rs. 500 relating to Prepaid Insurance Account was omitted to be brought
forward from the previous year’s books.

Q8. Rectify the following errors identified in the books of Dutt. The Trial Balance did not match,
Rs. 14,930 being excess credit. The difference was placed in Suspense Account:
(i) An amount of Rs. 100 was received from Das on 31st March, 2019 but was entered in the
Cash Book on 4th April, 2019.
(ii) Returns Inward Book for December was shortcasted by Rs. 1,000.
(iii) Purchase of an office table for Rs. 3,000 was passed through the Purchases Book.
(iv) Rs. 3,750 paid for wages to workmen for making showcases was charged to the Wages
Account.
(v) Purchase of Rs. 670 was posted to Creditor’s Account as Rs. 600.
(vi) A cheque for Rs. 200 received from Pradeep was dishonoured and was debited to the
‘Printing and Stationery Account’.
(vii) Rs. 10,000 paid for purchase of a motor cycle was debited to ‘Miscellaneous Expenses
Account’.
(viii) An amount of Rs. 10,000 owed by Deepak was omitted from Sundry Debtors.
(ix) Daman paid Rs. 6,700 but her account was wrongly credited with Rs. 10,700.

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Q9. Pass Journal entries rectifying the following errors:
(i) A cheque for Rs. 10,000 was received from Ranjan on which Rs. 200 Cash Discount was
allowed. The cheque was not honoured on due date and the amount of discount was credited
to Discount Received Account.
(ii) Rs. 2,000 paid as wages for machinery installation was debited to Wages Account.
(iii) Rs. 5,000 received from Rakesh were credited to his Personal Account. The amount had
been written off as bad debts earlier.
(iv) Repair bill of machinery was recorded as Rs. 100 against the bill amount of Rs. 1,000.

Q10. Rectify the following errors:

(i) Sales Book has been totalled Rs. 1,000 short.
(ii) Goods worth Rs. 1,500 returned by Green & Co. have not been recorded anywhere.
(iii) Goods purchased worth Rs. 2,500 have been posted to the debit of the supplier, Gupta &
Co.
(iv) Furniture purchased from Gulab & Co. worth Rs. 10,000 has been entered in Purchases
Book.
(v) Cash received from A Rs. 2,500 has not been posted in his account.

Q11. Ascertain Gross Profit from the following information:

Rs. Rs.

Opening Stock 2,00,000 Carriage on Sales 30,000

Closing Stock 1,80,000 Office Rent 58,000

Purchases 8,50,000 Sales 14,07,000

Carriage on Purchases 23,000

Q12. From the following balances, prepare Trading and Profit and Loss Account for the year
ending 31st March, 2020 and the Balance Sheet as on that date:

Debit Balances: Rs. Debit Balances (Contd.): Rs.

Machinery 2,00,000 Rent 45,000

Building 1,50,000 Sundry Expenses 20,000

Debtors 2,70,000 Carriage 15,000

Drawings 90,000 Credit Balances:

Purchases 9,50,000 Capital 10,00,000

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Wages 5,00,000 Creditors 1,40,000

Bad Debts 10,000 Sales 14,50,000

Bank 1,50,000 Commission 10,000

Opening Stock 2,00,000
Closing Stock was of Rs. 70,000 but its net realisable value (market value) is Rs. 60,000.

Q13. Following Trial Balance is extracted from the books of Nikesh as at 31st March, 2020:

Debit Balances Rs. Credit Balances Rs.

Stock on 1st April, 2019 50,000 Capital 3,20,000

Furniture 16,000 Creditors 80,000

Building 1,60,000 Purchases Return 2,000

Debtors 60,000 Commission 6,000

Drawings 20,000 Sales 4,65,600

Plant and Machinery 1,40,000 Bad Debts Recovered 1,400

Wages 24,000

Salaries 40,000

Bad Debts 2,000

Purchases 2,40,000

Electricity Charges 2,400

Telephone Charges 4,800

General Expenses 9,600

Sales Return 1,800

Insurance Premium 3,000

Cash in Hand 6,400

Cash at Bank 95,000

8,75,000 8,75,000

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Prepare Trading and Profit and Loss Account for the year ended 31st March, 2020 and
Balance Sheet as at that date after taking into account the following adjustments:
1. Stock on 31 st March, 2020 was valued at Rs. 14,000. Closing Stock includes goods costing
Rs. 10,000 which were sold and recorded as sales but not delivered to the customer.
2. Plant and Machinery includes a machine purchased for Rs. 20,000 on 1st October, 2019.
3. Outstanding liabilities for Wages Rs. 1,200 and Salaries Rs. 2,800.
4. Depreciation @ 5% p.a. is to be provided on all fixed assets.
5. Write off bad debts Rs. 1,500.
6. Insurance premium paid in advance Rs. 400.
7. 80% of the commission earned was received and credited to Commission Account during
the year.

Q14. From the following balances taken from the books of Amit, prepare Trading and Profit
and Loss Account for the year ended 31st March, 2020 and Balance Sheet as at that date
after taking into consideration the adjustments given below:
TRIAL BALANCE
as at 31st March, 2020

Heads of Accounts ............................................................ L.F. Dr. (Rs.) Cr. (Rs.)

............................................................
Capital 60,000
............................................................
Drawings 7,500
............................................................
Purchases 72,100
............................................................
Sales 95,000
............................................................
Returns 1,300 2,700
............................................................
Sundry Debtors 18,200
............................................................
Creditors 35,750
............................................................
Opening Stock 19,800
............................................................
Bad Debts 3,000
............................................................
Bills Receivable 22,000
............................................................
Bills Payable 23,000
............................................................
Cash In Hand 300
............................................................
Office Expenses 6,210
............................................................
Delivery Van 15,000
............................................................
Delivery Van 1,400

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Expenses
............................................................
Discount 2,910
............................................................
Rent 10,700
............................................................
Telephone Charges 1,050
............................................................
Postage Expenses 950
............................................................
Furniture 5,000
............................................................
Printing and 2,750
Stationery
............................................................
Commission 8,400
............................................................
Carriage Inwards 3,200
............................................................
Salaries and Wages 20,500

Total 2,19,360 2,19,360

Adjustments:
(i) Closing Stock was valued at Rs. 67,700. However, its market value is Rs. 61,700.
(ii) Depreciate Furniture and Machinery @ 10% p.a. and Delivery Van @ 20% p.a.
(iii) Outstanding Rent amounted to Rs. 900.
(iv) Bad Debts Rs. 200.
(v) Charge l/4th of Salaries and Wages to the Trading Account.
(vi) A new machine was installed on 31st December, 2019 costing Rs. 15,000 but it was not
recorded in the books as no payment was made for it.

Q15. Following Trial Balance is extracted from the books of a merchant as at 31st March,
2020: TRIAL BALANCE as at 31st March, 2020

Heads of L.F. Or. (Rs.) Cr. (Rs.)

Accounts
............................................................
Furniture and 6,400
Fittings
............................................................
Motor Vehicles 62,500
............................................................
Building 75,000
............................................................
Capital A/c 1,25,000
............................................................
Bad Debts 1,250

Provision for Doubtful Debts .................................................. 2,000

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 ............................................................
Sundry Debtors 38,000
............................................................
Sundry Creditors 25,000
............................................................
Closing Stock 34,600
............................................................
Purchases 54,750
(Adjusted)
............................................................
Sales 1,54,500
............................................................
Bank Loan 30,500
............................................................
Wages 2,850
............................................................
Rent 5,000
............................................................
Advertising 4,500
............................................................
Interest 1,180
............................................................
Commission 3,750
Received
............................................................
Cash 6,500
............................................................
Insurance 12,500
............................................................
General 7,820
Expenses
............................................................
Salaries 33,000
............................................................
Prepaid Rent 4,150

Trade Expenses Accrued, not paid ........................................ 9,250

Total 3,50,000 3,50,000

The following adjustments are to be made:

1. Depreciate Building @ 5%, Furniture and Fittings @ 10% and Motor Vehicles @ 20%.
2. Rs. 850 is due for interest on Bank Loan.
3. Salaries Rs. 3,000 and Municipal Taxes Rs. 1,200 are outstanding.
4. Insurance amounted to Rs. 1,000 is prepaid.
5. One-third of the commission received is in respect of work to be done next year.
6. Write off further Rs. 1,000 as Bad Debts and Provision for Doubtful Debts is to be made
equal to 5% on Sundry Debtors.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2020 and
Balance Sheet as at that date.

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Q16. Mohan maintains books on Single Entry System. He gives you the following information:

Rs.

Capital on 1st April, 2018 30,400

Capital on 1st April, 2019 33,800

Drawings made during the period: April, 2018 to March, 2019 9,600

Capital Introduced on 1st August, 2018 4,000

You are required to calculate the profit earned or loss incurred by Mohan. Solution:
STATEMENT OF PROFIT OR LOSS lor the year ended 31st March, 2019

Q17. Hari, who keeps his books on Single Entry System, tells you that his capital on 31st
March, 2019 is Rs. 1,87,000 and his capital on 1st April, 2018 was Rs. 1,92,000. He further
informs you that during the year, he withdrew for his household purposes Rs. 84,200. He once
sold his investment of Rs. 20,000 at 2% premium and brought that money into the business.
You are required to prepare a Statement of Profit or Loss.

Q18. Sanjay started a firm on 1st April, 2018 with a capital of Rs. 10,000. On 1st July, 2018
he borrowed from his wife a sum of Rs. 4,000 @ 9% p.a. (interest not yet paid) for business
and introduces a further capital of his own amounted to Rs. 1,500. On 31st March, 2019 his
position was:
Cash Rs. 600; Stock Rs. 9,400; Debtors Rs. 7,000 and Creditors Rs. 6,000.
Ascertain his Profit or Loss taking into account Rs. 2,000 for his drawings during the year.

Q19. A retailer had not kept proper books of account. From the details given, you are required
to ascertain the Profit or Loss for the year ended 31st March, 2019 and also to prepare his
Statement of Affairs as at that date:

1st April, 2018(Rs.) 31st March,

2019(Rs.)

Stock-in-Trade 16,700 18,100

Sundry Creditors 15,400 19,200

Sundry Debtors 11,200 10,600

Cash in Hand 250 1,400

Bank Overdraft 19,200 Nil

Bills Receivable 16,000 5,000

Fixtures and Fittings 1,500 1,500

Motor Van 1,900 Nil

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Bank Balance Nil 2,900

Drawings during the year amounted to Rs. 2,400. Depreciate Fixtures and Fittings by 10%.
Rs. 600 is irrecoverable from Debtors. Provide 5% for Doubtful Debts and Rs.200 in
respect of Bills Receivable.

Q20. Mr. A started a business with a capital of Rs. 5,00,000. At the end of the year his position
was:

Particulars Amount
Rs.

Cash in Hand 15,000

Cash at Bank 70,000

Sundry Debtors 1,20,000

Stock 2,40,000

Furniture 75,000

Machinery 2,00,000

Sundry creditors on this date totalled Rs. 80,000. During the year he introduced a further
capital of Rs. 1,50,000 and withdrew for household expenses Rs. 90,000.
You are required to calculate Profit or Loss during the year.