"R!

ICVIONS:
This question paper consists questions,
Question nos. I to 20 ate ()hiectivv (vee questions carrving I mark each.
Question nos. 21 to 26 ate short arts)svr type Questions carrying S'4 titarks each.
4, Question 'toss to SO ate long (vpe -l Questions eart:ving 6 'narks each,
5. Question nos31 ate long ansuvr type- Il Question carrving S "tarks each.
6. The"?is no overall choice. an internal choice has been ptvvided in senvn Questions of
one mark, questions marks, one Questionqtltbur ,ltarks and neo Questions(f 6 marks.

1. Bhuvan imported a Machine for business use for He Blid e 10.000as import duty,
on transportation, {4,000 on its Installation: paid to the engineer for
installation and demonstration of its working. Atlet operating the machine for six months
was incurtvd as annual maintenancecharges,
The cost of the machinerywill be :
d.

Following is the e.xtnet of Trial Balance as on 31st March 202'

Particulars Dr [O
Interest on loan soo

Additional information: Loan of was taken tivm State Bank of India at an interest
rate of 12% p.a. on 1st July 2021 and the Principal was repaid on October 2021. Interest
outstanding on loan will be: 1
(a) e,soo (b) el,SOO,

3. A debtor whose account was off as bad debt three years back has paid 15% now and
promised to pay 40% oftotal written offamount by the end ofthe yean Following Journal entry mas
rcorded: 1
Cash a/c Dr 720
To Bad Debts Recovered 720
(Being 15% of the bad debts written off now
How much total amount was written off three years ago?
Q Paper
Exam Code # FTEEtCommon
 -2-
(c) 26,000

4.

Cash Book
LF cash Bank
Date Particulars LF Cash Bank Date Particulars
20,000 3,000
To Sales 10,000 By Balance b/d 5,000
To Debtors A/c 4,000 By Rent
600
By Bank Charges
Which posting is wrong in the above Cash Book?
(a) Bank Charges <600
(b) Debtors account
(c) Cash credit side
(d) Rent paid

5. Goods were purchased from Gagan on 1st January 2023 on credit 00,000. Paid to Gagan
account < 18,000 on 10th January 2023.
Identify the correct Statement from the following:
(a) Received Cash Discount from Gagan
(b) Received Trade Discount from Gagan
(c) Full Settlementis made
(d) is still payable to Gagan

6. Which of the following transactions/ events/entries can be attributed to matching principle? I

(i) Outstanding expenses, though not paid in cash are shown in profit and loss account.
(ii) When insurance premium is paid partly for next year also, the part relating to next year
will be shown as expense only next year and not this year.
(iii) Depreciation is charged only as per straight line method each year.
Which of the statements above are true?
(a) Only (i)
(b) Only (ii)
(c) (i) and (ii)
(d) All of these
OR
Sonia runs a small firm dealing in fancy candles, diyas and incense sticks made with organic
ingredients. In the last year, she earned higher revenue due to online sales. She invested a part
of extra cash in the stock market by buying shares of In the current year, she sold

Q. Paper :
Exam Code # FTEE/Common Paper/23_Accountancy_Xl-12
 -3-
that investment at a price of
This differenceof will be termed as:
(a) Revenue (b) Profit (c) Income .(d) Gain
7. Assertion (A): A claim for a
very big sum pending in a court of law against the enterprise
should be brought to the notice
of the users of financial statements, otherwise the statements
would be misleading. 1
Reason (R): According to the principle of full disclosure,
all significantinformationrelating to
the economic affairs of the enterprise should be
completelydisclosed.
(a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation
of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation
of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false

8. Which of the following is not a business transaction? 1

(a) Bought furniture of 10,000 for business,
(b) Paid for salaries of employees
(c) Paid son's fees from her personal bank account
(d) Paid sons fees from the business
(i) only (a) (ii) only (c) (iii) only (c) and (d) (iv). only (b) and (c)
OR
Mr. A started a business of readymadegarments with He opened a current account
with Bank of Baroda for business transactions.Which of the following transaction will not be
recorded in the books of accounts by Mr A?
(a) Transfer of funds from Saving account to Business Current Account.
(b) Sold household furniture and deposited amount in Business Current Account.
(c) Sold personal investment and deposited amount in Savings Account.
(d) Opened a fixed deposit account by transfer of money from Current Account.

9. A cheque of <7,500 is deposited in the bank on 28thMarch, 2022 and the same is collected by
the bank on 4thApril, 2022. Bank Statement is reconciled with the Cash Book on 31" March,
2022. Which of the following statement is correct? 1
(a) Cash book balance will be lower by <7,500 from the pass book balance
(b) Pass Book balance will be higher by <7,500 from the cash book balance
(c) If the Cash Book has debit balance of then the pass book will have credit
balanceof
(d) If the Cash Book has debit balance of < 12,500 then the pass book will have debit balance
of
Q. Paper :
Exam Code # FTEE/Common Paper/23_Accountancy_Xl-12
 -4-
OR
by bank under the
Bank Statement shows dividends of directly collected 3 1stMarch,
recorded in cash book till
instructions on 25thMarch, 2022. This entry was not
book and the pass book balan
Which of the following statement is correct when the cash
are reconciled on 31st March, 2022?
will show debit balance
(a) If cash book shows overdraft balance of 04,900, pass book
debit balance
(b) If cash book shows overdraft balance of pass book will show

show credit
(c) If cash book shows overdraftbalance of 04,900, pass book will
of
(d) If cash book shows overdraft balance of pass book will show credit
of

10. Match the following

Column A Column B
1. Decline in the Value of Coal Mine by (a) Depreciation
2. Value of Building decline by < 1 (b) Amortisation
3. Value of Patents Written off by < 10,000 (c) Depletion
Choose the correct option to match the above:

OR
Decrease in the value of mines and quarries is known as:
(a) Depreciation (b) Depletion (c) Amortisation (d) None of these

11. Which of the following will not be debited to purchase account while preparing accounts of a
businessman dealing in stationery items
(a) Purchase of pens and registers for resale.
(b) Purchase of a photocopymachine for the purpose of providing photocopy servicesto
customers
(c) Purchase of Accountancybook to be sold to a customer.
(d) Purchase of Drawing Sheets.
OR
Which of the following statement/sare not true:
(a) Record of credit sale of Machinerywill not be made in the Sales book
(b) Format of Journal Proper is same as of Journal
Q Paper :
Exam Code # FTEE/Common Paper/23_Accountancy_Xl-12
 -5-
(c) Sales Account is a part of subdivisionof Journal
(d) purchase Book records all credit purchases including other assets
(iv) only (c)
(i) only (a) & (b) (ii) only (c) and (d) (iii) only (b) and (c)
were cleared
Assertion (A) - Cheques of were deposited in bank of which only there
12. till date. While preparing Bank ReconciliationStatement with balance as per Pass Book
will be no effect.
credited with
Reason (R) - Only cheques of were cleared, so Pass book was already
the same amount.
Codes:
(a) Both A and R are correct but R is not the correct explanation/reasonfor A
(b) Both A and R are incorrect
(c) Both A and R are correct and R is the correct explanation/reasonfor A
(d) A is incorrectbut R is correct.
1
13. Closing stock appearing in the Trial Balance is shown:
(a) On the Dr. side of Trading A/c
(b) On the Cr. Side of Trading A/c
(c) On the Assets side of Balance Sheet
(d) On the Cr. Side of TradingA/c and on the assets side of Balance Sheet
1
14. Match the columns .
Column 1 Column 2
1. Capital expenditure a. Large amount spent on Publicity of new product
a part of which was not written off yet.
2. Revenue expenditure b. Building Purchased
3. Deferred Revenue expenditure c. Benefit received in a year
Choose the correct option:
(a) l:a; 2: b; 3: c
l:b; 2: c; 3: a

15. Which of the following is correct? 1

(a) Operating profit Operating profit -Non operating expenses —non-operating income
(b) Operating profit = Net profit + non-operatingexpenses + non-operating income
(c) & Operating profit = Net profit + non-operating expenses - non-operating income
(d) Operating profit = Net profit - non-operatingexpenses + n n-operating income
OR
What do you mean by Direct Expenses?
Q. Paper :
ExamCode # FTEE/Common Paper/23_Accountancy_Xl-12
 -6-
16. There is an accrued income of CO,OOOfor the year ended 31st March, 2022. Which basis of
accounting will show higher profit due to this? 1
(a) Accrual Basis (b) Cash Basis
(c) Both will show same profit. (d) Inadequate Information

17. In the year 2021-22, some goods costing were purchased but half of these could not
be sold in that year. During the same year, were spent as cartage and as wages
On 31stMarch 2022, the market value of these goods was e 18,400. At what figure should the
stock be valued?
(a) 0 8,400
OR
In the year 2021-22, some goods costing 00,000 were purchased but half of these could not
be sold in that year. During the year, were spent as cartage and as wages. On
31stMarch 2022, the market value of these goods was < 18,500.At what figure should the stock
be valued?
(b) a 8,000 (c) a 8,500

Read the followingcase study and answer Q.Nos 18 to 20 :

An accountant while balancing his books on 31st March 2022 found that there was an error
in the trial balance. To prepare the financial statements she records the difference to Suspense
Account, which was carried forward to the next year and the following errors were found:
Salary for the month was posted twice <155; interest on investment collected by the banker
but was not recorded <75; Rent of 050 received from Ashok credited both to rent account
and Ashok A/c; Old machinery sold to the proprietor,Reena for cash <400 was entered in the
sales book as sale to Reena.

18. Salary for the month was posted twice < 155 is which type of Error: 1
(a) Error of omission (b) Error of commission
(c) Error of Principle (d) CompensatingErrors

19. Rent of 050 received from Ashok, credited to both Rent Account and Ashok A/c, can be
rectified as by crediting which A/c by what Amount: 1
(a) SuspenseA/c, 050 (b) Rent A/c, e700
(c) Ashok A/c, 050 (d) SuspenseA/c, 000

20. Interest on investment collected by the banker but was not recorded 75 will be rectified by
debiting & Crediting 1

(a) Interest on Investment. A/c, Bank A/c (b) Suspense A/c, Bank A/c
(c) Bank A/c, Suspense A/c (d) Bank A/c, Int. on Investment. A/c

Q. Paper
Exam Code # FTEE/Common Paper/23_Accountancy_Xl-12
21. cash Sales Credit Sales Sales Returns e 16,000; Gross Profit e
opening Stock Cash Purchases < I ,50,000 Credit Purchases Purchase Returns
Cartage Inward < 15,000. Based on above information, answer the following:
(i) Value of Net Purchases?
(d) None of these
(ii) Value of Closing Stock?
(d) None of these
(ii) What is the Cost of Goods Sold?

22. Answer the following questions: Il

[a] How does the Matching principle apply to Depreciation?
[b) Elon constructions Ltd gets a contract of 600 crore to build an elevated road to be
constructed in 5 years. The director of the company wants to determine the profit or loss
on the contract only after completion of the contract. Do you think director is justified
in this approach?Why?
[c] Naman paid college fees of his sister by issuing a cheque from the bank account of
of
his business. According to Naman, such payment should be treated as an expense
the business. Was Naman•s approach correct in treating the college fees as a business
expense? CJÅ• reason.
OR
each of the following
Identify the Accounting Assumption or Accounting Principle involved in
situations:
It facilitates inter firm and intra-firm comparison
long term
It facilitates the distinction between current assets and Non-currentAssets,
and short-term liabilities.
when the settlement
A transaction is recorded in the books when it is entered into and not
takes place.
data.
The accountant is required to adhere as closely as possible to verifiable
associated with the recognized
This concept deals with when to recognize the costs that are
revenue
more account and vice versa.
For every debit, there is a credit of equal amount in one or

3
23. Briefly describe the Branches of Accounting
OR
and the type information they
Briefly describe three external users of accounting information
will be interested in?

Q Paper
Exam Code # FTEE/Common Paper/23_Accountancy_Xl-12
 -8-
24, Fill in the missing informationin the 3
journal entries:
f.

o Particulars L.F. Debit Credit

1.

(goods costine market price was

destroy•d by fire)
25,0000
To 25,0000
(Salary outstandingat the end of the year.)

(Being Interest on loan received on Loan of

given to Mr A @ 10% p.a)

On 1stOctober, 2021 a business sold machinery

costing for Business provides
depreciation every year on 31stMarch and maintains provision for Depreciation a/c. All the
machineries are depreciated at the same rate. Its provision for Depreciation account for the year
appeared as follows: 4
Provision for Depreciation A/c
Cr.
Date Particulars Date Particulars
1/102021 Machinery a/c 70,000 1/4/2021 Bal b/d 92,500
3132022 Bal c/d 82,500 1/10/2021 Depreciation a/c 10,000
31/3/2022 Depreciation a/c 50,000

Based on the information given above answer the following:

1. What is the amount of accumulated depreciation as on 1stApril 2021 on the asset
sold?
(c) co,ooo (d)eo,ooo
2. What is the profit or loss on asset sold?
(a) (gain) (b) (loss) (c) (loss) (d) (loss)
3. What is balance of Machinery account as on 1stApril 2021?
(d) cannot be determined
4. What is the book value of Machinery on 31 March 2022?
OR
Differentiatebetween Reserve and Provisionon the basis of Purpose.
[B] On 1stApril, 2020 followingbalances appeared in the books of the firm:
Plant and Machinery account
Provision for Depreciation on machinery
Q. Paper •
Exam Code # FTEE/Common Paper/23_Accountancy_Xl-12
 -9-
On 1stJanuary 2021, machinery at a loss
costing was sold out for
of < 12,000. Business p.a. on straight line
provides depreciation on machinery
method every year on 3
March.
On the basis of this
information,answer the followingquestions:
(i) What is the accumulated
depreciation as on 1stApril 2020 on the machinery sold during
the year?
a. d. None of the these
(ii) What is the amount
of depreciation that will be charged during the year 2020-21,
including the asset sold?
a. c. oo,ooo
(iii) What is the closing balance of Plant and Machineryaccount as on 31stMarch 2021?

Following are the extracts from the 4

26. Trial Balance of a firm, as at 31.03.2022:
Particulars Cr. (0
Sundry Debtors
Bad Debts
Provision for Bad and Doubtful Debts
Additional information:After preparingthe trail balance, it is learnt that a debtor has become
insolvent, and nothing could be recovered from him and therefore the entire balance of
due from him was irrecoverable.Provision for Bad and Doubtful Debts is to be created at 10%
of Sundry Debtors.
Based on the information above, answer the following questions:
(i) What amount of Sundry Debtors will be shown in the Balance Sheet?
(ii) What is the amount of New Provisionfor Bad and Doubtful Debts to be created?
(iii) Pass journal entry for recording Bad debts only.
(iv) If the Provision for Bad and Doubtful debts appeared at in the Trial balance,
the net effect of the above in the Profit and loss a/c will be:
(a) Debit side Profit & Loss a/c : Provisionfor Bad and Doubtful debt
(b) Credit side Profit & Loss a/c : Provision for Bad and Doubtful debt
(c) Debit. side Profit & Loss a/c : Provision for Bad and Doubtful debt < 13,000
(d) side Profit & Loss a/c : Provisionfor Bad and Doubtful debt < 13,000

27. Pass necessary journal entries for the following: 6

and paid claim of
(a) Goods lost by fire 6,000, Insurancecompanyaccepted
value of was exchanged for a new machinery
(b) The old machine having a book
old caÖwas agreed at 60,000 for exchange purpose.
The price of the
costing
dealer through cheque.
The balance was paid to the car

Q. Paper
:
ElamCode# FTEE/Common Paper/23_Accountancy_Xl-12
 -10- to business and rest
(c) Paid salary of to Pawan who provides60% of his services
for domestic purpose.
on Cost and 20% trade
(d) Sold goods to Govind costing at a profit of 20%immediately received from
discount and 10% cash discount. Half of the amount was
him by cheque that was deposited into bank.
increasing rapidly
28. PQR Ltd. a rmnufacturing companyhas expandedits operations. Its sales are different states.
to
and the demand for its products is also rising. It is expanding geographically
a journal. But
Initially when the operations were small, its accountantMr.Pankaj maintained only cumbersome
as the business expands and the number of transactionsbecomes large, it become subsidiary
to journalise each transaction.So now a need is felt to prepare special journals or subsidiary
books. So accordingly, Mr. Pankaj instructs his subordinates to prepare various
books
On the basis of the following transactions,prepare necessary Subsidiary books:
2022 April l, Opening balances: cash <30,000; Bank overdraft Z12,000; Capital Z 18,000
April 2. Purchased goods from Sheenam Enterprises<16,000 less 10% Trade discount.
April 4. Sold goods to Sohan & Co worth at 10% trade discount.
April 15. Purchased furniture from ABC Ltd half of the amount immediately paid by
cheque.
April 20. Goods worth returned by Sohan& Co.
April 28. Paid to Sheenam Enterprise <14,000in full settlement of account

29. From the following particulars, prepare a Bank Reconciliation Statement as on 3 1st January
2023:
a) Balance as per cash book
b) A cheque for issued in favour of Rohit has not been presented for payment.
c) A payment of < 1,200 made, after deducting 70 as discount received, by cheque but full
amount was credited in the cashbook.
d) A cheque for <200 deposited in bank has been dishonored
e) A sum of depositedin the bank has been credited as 90 in the Passbook.
Payment side of Cash Book has been undercast by <200
g) A bill receivable for 1,000 discountedwith the bank in December 2022, dishonoured
on 31stJanuary 2023 but the dishonour was not recorded in the cash book.
OR
From the following informationprepare Bank ReconciliationStatement as on 30th September
2022:
1. On 30thSeptember 2022, Passbook showed a credit balance of
2. Out of < 12,000 cheques issued, 10,000 cheques were presented for payment till 30th
September,2022.
3. Out of <17,000 cheques deposited,<12,000 cheques were cleared and credited till 30th
September, 2022.

Q. Paper :
Exam Code # FTEE/Common Paper/23_Accountancy_Xl-12
 -11-
4. cash paid on account of salaries
was wrongly recorded in the bank column of
the cash book.
5. was wrongly credited in the Passbook by the bank on account of cheque cleared,
which was never depositedby the proprietor.
6. Interest on overdraft charged by the bank amounted to
7. Interest on Investment directly credited in the bank amounted to < 1,000.

30. Rectify the following errors found in the books of Manoj and prepare Suspense account. The
Trial Balance showed e720 as excess debit. The difference has been posted to the Suspense
account. 6
a) Goods sold to Rohan were posted to the credit of Mohan < 1,000
b) Goods sold to Akaash for e 1,200 was credited to him as 200.
c) Goods returned to Kamal <3,060 have been entered in the Return Inward book, However,
Kamal's account has been correctly posted.
d) An item of <110 written off as a bad debt from Ankur has not been debited to Bad
Debts account.
OR
Pass rectifying Journal entries for the following errors:
a) Total of return outward book omitted to be posted in ledger
b) Purchases for 00,000 wrongly entered in the sales book though correctly entered in
personal Account of A.
c) Old furniture sold for wrongly credited to sales account as
d) Sales of <22,000 to Manoj wrongly credited to Manoj's account as
Being sales return of 0500 debited to Mukesh, who return the goods.
f) Goods returned by Kamal for 6,000 wrongly debited to Mohan as < 12,000.

31. Determine the missing information in the following Machinery account if the firm charges
depreciation @10% p.a. as per Straight line method. 8
Machinery a/c
Date Particulars Date Particulars
1/4/2019 To bank a/c 31/3/2020 By Depreciation a/c
31/3/2020 By Balance c/d

1/4/2020 To bal b/d 31/3/2021 By Depreciation a/c

31/3/2021 By Balance c/d

1/4/2021 To bal b/d - 1/1/2022 By Depreciation a/c 15,000-

By Bank a/c
By loss on sale 4,000

Q. Paper :
ExamCode # FTEE/Common Paper/23_Accountancy_Xl-12
 -12-
2021:
[B] A company has the following balances on 1StApril
Machinery account
Provision for Depreciation account closed on
original cost and accounts were on
Depreciationwas provided p.a. on for
machinery bought
3 1stMarch every year. On 1stJanuary 2022, a part of machinery bought for
1stOctober 2018 was sold at a profit of and a new
on the same date.
account for the year
Prepare machinery account and Provision for Depreciation
OR
and on 30th June 2021, it
On 1stJanuary 2020, Z ltd purchased machinery for machine was PUrchased
acquired additional machinery for On 31/3/2022, another
[purchased on 1/1/2020] which 1.'
for On 31/8/2022, one of the original machine
and was sold as scrap for
had a cost of was found to have become obsolete value.Accounts are closed on
Depreciation is to be charged p.a on written down
years.
31stDecember each year. Show machinery account for the first three
and
32. The Books of Mohan Singh Bros. show the following balances. Prepare Trading
March
Profit & loss account for the year ended 31stMarch 2022 and Balance Sheet as on 31st
2022.
Particulars Particulars
Capital Cash 27,400
Creditors 36,000 Drawings 24,000
Bank overdraft 16,500 Freehold Property 2, 10,000
Interest on bank overdraft 1,650 Plant and Machinery
Debtors 59,400 Computers
Purchases Rent 6,900
Sales Insurance and taxes 12,300
Return Inward 11,400 Fire insurance Premium 6,000
Return Outward 6,300 Electricity 2,700
Stock [opening] 18,000 Factory lighting 5,100
Freight Inward 5,700 Salaries
Patents 12,000 Coal, Gas and Power 1,800
Interest received 12,400
The following adjustments are to be made:
l. Closing stock in hand on 31stMarch 2022 valued at however the net realizable
value was «0,000.
2. Depreciationcharged on Computers p.a. and on Plant and Machinery @5% p.a.!
3. Interest on Bank overdraft outstanding 300.
4. Insurance was paid for a year ending 30thSeptember 2022
5. Manager's commission to be provided @10% on net
commission.
profit after charging such

Q. Paper :
Exam Code # FTEE/Common Paper/23_Accountancy_Xl-12