ST.

GEORGE’S SCHOOL, ALAKNANDA

ACCOUNTANCY REVISION TEST

1. Identify the accounting principle and assumption involved in the following: (2)
I. The life of an enterprise is divided into smaller parts so that the performance
can be measured at a regular interval.
II. Business shall continue for an infinite period of time and there is no intention
to close the business and scale down its operation significantly.
III. Anticipate all the future losses but not future profits.
IV. The transactions of the Business are recorded on the basis of the evidences
and source documents.

2. Pass journal entries in the books of Mona & Co. for the following transactions: (3)
i. 1/4/2022: Balances in the books carry forward from the previous year:
Machinery 2,0,000, Building 5,00,000, Furniture 1,00,000, Goods
50,000, Creditors 2,50,000
ii. 15/04/2022: Bought goods from Rajan & Sons, Kanpur of list price 40,000
at 20% Trade Discount and 5% cash discount. Paid 20% payment by cheque
immediately.

3. Open a T shape account of ‘Bank’ and Put the following transactions on the proper
side. Balance the same and state what closing balance indicates: (4)
i. Commence business with cash 1,00,000, Machiery 50,000 and
bank 1,20,000
ii. Purchase goods for 20,000 at terms 10% trade discount. Half of the
payment is made in cash and remaining through cheque
iii. 1/3 of the available goods were sold at a profit of 20% on Sales. 30%
of the payment was accepted by drawing a bill.
iv. Depreciation on Machinery @10% per annum
v. Cash deposited in to the bank 5,000.

4. Journalise the following transactions in the books of Ram enterprises: (6)

i. Out of the amount of 7,500 due from Mohan, an amount of 5,000 is
recovered immediately and balance will not be recovered.
ii. Received a cheque of 14,900 from Bhanu and allowed discount to him for
100. The cheque was deposited into the bank on the same day.
iii. Purchased machinery for 1,70,000 and payment made through cheque.
Installation expenses of 20,000 and freight of 10,000 was paid in cash.
iv. Goods worth 50,000 were destroyed by fire and insurance company paid a
claim of 45,000 after survey.
v. Purchased Goods for 25,000 and paid carriage on the same purchased goods
5,000