KENDRIYA VIDYALAYA SANGATHAN, MUMBAI REGION

SAMPLE PAPER EXAMINATION 2022-23

CLASS XI
ACCOUNTANCY (055)

MARKING SCHEME
Set 2

(PART A-FINANCIAL ACCOUNTING I)

1. Understandability

2. Going Concern

3. Money Measurement Principles

OR

Income= Revenue- Expenses

Rs. 21000- Rs.15000
Rs 6000

4. Bank and cash account in the ledger

OR

An Assets

5. Fixed Assets

6. A Charge against profit

7. Error of Principle

8.(c)To compare the cash book balance with passbook balance and ascertain the
differences.

OR

Sol. 1 Cash Book

2. Bank Pass Book or Bank Statement

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9. C CGST and SGST

10. Rs. 30,000

11. C

12. C

13.a 40888.32

14. C credit balance in cash book

15.d Credit sales of rs. 22000

OR

a. Cash Book

16. b Wrongly totalling of subsidiary books

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Ans1. (c)
Ans2. (c)
Ans3. C

18. 3 marks on correct explanation

The accountants consider that the business entity is a going concern as it provides the
basis for showing the value of the assets in the balance sheet.
This assumption will allow the business to charge only that part of the asset which has
been consumed or used to earn the revenue from the revenues earned during a period.
The rest of the asset will be carried forward to the next few years, over the estimated life
of the asset.

OR

Sol .(11/2 and 11/2 each=3)

Going Concern Concept- The business will continue for an indefinite period and there is
no intention to close the business or downsize its operation significantly. The doubt of
success does not lead to the inference that business will not continue for an indefinite
period and also the intention that the business will be downsized significantly.

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Accounting period concept- According to the Accounting Period Principle, life of an
enterprise is broken into smaller periods so that its performance is measured at regular
intervals. The accounts of an enterprise shall continue its activities for a foreseeable
future. Users of financial statements, especially the management and banks, require
information from the accounts at regular intervals so that decisions can be taken at the
appropriate time.As accounting period is the interval of time at the end of which Income
statement and Balance sheet are prepared to know the results and resources of the
business.

Dual Aspect -Every transition entered into by an enterprise has two aspects, a debit and
a credit of equal amount. Simply stated, for every debit there is a credit of equal amount
in one or more accounts. It is also true vice versa.

19. SOL (3)

Trial Balance as on 31st March ,2022
Name of Accounts. Dr.
Capital. 1,40,000
Purchases. 36000
Discount Allowed. 1200
Carriage inwards. 11,000
Sales. 60000
Return Inward. 300
Return Outward. 700
Plant and Machinery. 1,15,300
Stock (1st April,2021). 16,700
Sundry debtors. 20,200
Sundry Creditors. 12000
Investments. 3600
Commission Received. 1800
Cash in Hand. 100
Cash at Bank. 10,100

Total 2,14,500. 2,14,500

20. Sol (3)

BASIS REVENUE RESERVE CAPITAL RESERVE

Source It is created out of business or It is created out of capital Profits.

revenue profits.

Usage It cab be used for distribution of It can be used for distribution of

dividends without any dividends only if the company
precondition.

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 satisfies certain conditions
prescribed by the companies act.

Purpose It is created for strengthening the It is created for meeting capital

financial position and meeting the losses or to be used for
unforeseen contingencies of some purposes specified by the
specific purpose. companies act.

21. Sol (4)

1. Reliability
2. Relevance
3. Understandability
4. Comparability

22. SOL. ( 4 marks)

Total purchase 4,40,000; Input CGST 18000; INPUT SGST 18000; INPUT IGST
43,200; TOTAL AMOUNT Rs.5,19,200

SOL. 23( one mark each)

BANK RECONCILIATION STATEMENT as on March 31, 2018
WITHOUT ADJUSTING CASH BOOK

Particulars Plus (Dr.) Minus (Cr.)

Balance as per Cash Book (Dr.) 40,000

Cheques not encashed 10,000

Cheques not cleared 15,000

Interest on Investments 500

Cheques deposited, not recorded in Cash Book 12,500

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 Bank charges 100

Balance as per Pass Book (Cr.) 47,900

63,000 63,000

Machinery Account
24. SOL. (6 Marks)

Date Particulars Rs Date Particulars Rs

2019 To Bank A/C 1,20,000 2020

April 1 March By Depreciation A/C 18,000
31 By Balance c/d 1,02,000
March
31

1,20,000 1,20,200

2020 2021
April 1 To Balance 1,02,000 March By Depreciation A/C 16,800
Sept 30 b/d 20,000 31 By Balance c/d 1,05,200
To Bank A/c March
31

1,22,000 1,22,000

2021 2021
April 1 To Balance 1,05,200 June 30 By Bank A/C- Sale 500
June 30 b/d 8,000 June 30 By Depreciation A/c 135
To Bank A/c June 30 (WN 1) 2,977
By Loss on Sale of
Machinery A/C
(Profit & Loss A/c)
2022 (WN 1)
March 16,138
31 93,450
March By Depreciation A/C
31 (WN2)
By Balance c/d

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 1,13,200 1,13,200

2022 To Balance 93,450

April b/d

Working Notes:
1 Calculation of Loss on Sale of Machinery:

Cost of Machinery sold (1st April, 2019) 5,000

Less: Depreciation for 2019-20 (Rs 5,000 x
15/100) 750
----------
Book Value of Machinery (1st, April 2020) 4,250
Less: Depreciation for 2020-21 (Rs 4,250 x 15/100) 638
-----------
Book Value of Machinery (1st April 2021) 3,612
Less: Depreciation up to 30th June 2021 (Rs 3612 x 15/100x 3/12) 135
—--------
Book Value of Machinery sold (30th June 2021) 3,477
Less: Sale proceeds 500
-------
Loss on Sale of Machinery 2,977
2. Calculation of Depreciation after sale of Machinery:
Book Value of Machinery (1st April 2021)
1,05,200
Less: Book Value of Machinery sold (1st April 2021) (WN 1) 3,612
---------
Remaining Machinery 1,01,588
—-----------
Depreciation on Remaining Machinery (Rs. 1,01,588 x 15/100) 15,238
Add; Depreciation on Machinery Purchased during 2021-22
(Rs, 8000 x 15/100 x 9/12) 900
----------
16,138

or
( 3+3 = 6 marks)
Furniture account: - Profit and loss (loss on sale) 7000
Balance c/d – April 01 2021 Rs. 55,000

Provision for depreciation on furniture account

Accumulated depreciation on furniture sold 8000
Depreciation- 2015, March 31 Rs. 4250

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25. (6 marks)
Solution: JOURNAL

Date Particulars L.F. Dr. Cr.

(Rs) (Rs.)

(i) Sales Return A/c ….Dr. 2,000

Sales A/C …..Dr. 2,000
To Suspense A/C
(Goods returned wrongly entered in the Sales Book, 4000
now rectified)

ii Drawings A/C …Dr 1500

To Purchases A/c 1500
(Goods taken for personal use wrongly entered in
Purchases Book now rectified)

(iii) Ashok ….Dr 500

To Sales Return A/C
(Dishonor of cheque debited to Sales Return A/C, now 500
rectified)

(iv) Suspense A/c …..Dr 180

To Sales A/c 180
(Wrong carry forward of total of Sales Book, now
rectified)

(iv) Prepaid insurance A/c …… Dr 500

To Suspense A/C 500
(Prepaid insurance premium was omitted to be
brought forward, now rectified)

( PART – B Financial Statement – II)

26. Ans d (1)

27. Answer: (c) Gross Profit, Operating Profit, Net Profit (1)

28. A Direct Expenses (1)

29. Sol. Revenue expenditure is that expenditure benefit of which is exhausted

within the accounting year in which it is incurred. (1)

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30. Sol. (3)
Accrual Concept of accounting requires that revenue to be recognized when
goods and / or services has been sold and / or provided whether the amount has
been received or not/ Since total income for the year is accounted and transferred
to the credit of Profit & Loss Account, accrued income is transferred to the credit
of Profit & Loss Account, And since the amount is due to the enterprise, it is
shown as a current asset in the Balance Sheet.

31. Sol. 3 marks on correct explanation.

In order to ascertain the true profit or loss of the business for a particular year, it
is necessary that all expenses and incomes relating to that year (whether paid
/received or not) are taken into consideration. Similarly, all items of expenses and
incomes relating to next year are excluded. Due to this reason adjustments are
made for outstanding expenses, prepaid expenses, accrued incomes, unearned
incomes etc. so it is necessary to record the adjusting entries for such
adjustments while preparing the final accounts.

32. Sol 1 mark on each. (4)

1. Determine Gross profit and loss
2. Determine Net profit and loss
3. Comparison with previous year’s profit
4. Ascertaining financial position
Or

Accrued Income- 2 marks

Prepaid expenses- 2 marks

33. Solution- (4)

Cost of goods sold= Total Purchases (8,00,000) - Return Outward (20,000) + Direct
Expenses (60,000) = rs. 8,40,000
2/3rd of the Goods sold for rs. 6,10,000
2/3rd Cost of Goods Sold=840000x2/3=5,60,000
Gross Profit=A-B=rs.6,10,000-rs. 5,60,000=rs.50,000

or

33.
SOL( 1 Mark each )

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Sl. Particulars L.F. Debit Credit
No. ₹ ₹

a) Salaries A/c Dr. 3,50

0

To Outstanding Salaries A/c 3,500

(Salaries Outstanding for Rs. 3,500)

b) Rent A/c Dr. 500

To Outstanding Rent A/c 500

c) Prepaid Insurance A/c Dr. 4,00

0

To Insurance A/c 4,000

(Insurance premium paid in advance for 3

months, i.e. ₹ 4000)

d) Furniture A/c Dr. 7,00

0

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 To Purchases A/c 7,000

(Correction entry for the wrong debit of furniture

to purchases account)

(Rent unpaid for one month = 6000/12 =

₹ 500)

SOL. 34

Dr. Cr.

Particulars Amount Particulars Amount

₹ ₹

Opening Stock 35,000 Sales 2,50,000

Purchases 1,25,000 Less: Sales (25,000) 2,25,000

Returns

Less: Purchase (6,000) 1,19,000 Closing Stock 10,000

Returns

Wages 3,000

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 Less: Prepaid (1,000) 2,000
Wages

Gross Profit 79,000

2,35,000 2,35,000

Profit and Loss Account for the Year Ending March 31, 2017

Dr. Cr.

Particulars Amount Particulars Amount

₹ ₹

Bad Debts 3,500 Gross Profit 79,000

Add: Further Bad 1,500 Interest on Accrued 1,155

Debts Investment

Add: New Provision 2,910 Discount 1,000

Less: Old Provision 4,500 3,410 Interest Received 5,400

Discount on Debtors 2,280

Postage and Telegram 600

Salary 12,300

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Rent and Rates 1,000

Packing and Transport 500

General Expenses 400

Insurance 4,000

Discount 3,500

Depreciation on 1,000
Machinery

Lighting and Heating 5,000

Net Profit 52,565

86,555 86,555

Balance Sheet
as on March 31, 2017

Liabilities Amount Assets Amount

₹ ₹

Creditors 10,000 Cash in Hand 20,000

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Bills Payable 20,000 Cash at Bank 40,000

Capital 75,000

Add: Net 52,565 1,27,565 Debtors 50,000

Profit

Less: Further Bad 1,500

Debts

Less New Provision 2,910

Less: Discount on 2,280 43,310

Debtors

Investment 23,100

Add: Interest on 1,155 24,255

Investment

Machinery 20,000

Less: Depreciation 1,000 19,000

Prepaid Wages 1,000

Closing Stock 10,000

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1,57,565 1,57,565

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