CLASS-XI MM, : 80 ACCOUNTANCY (055) Marking Scheme/Hints to Solution {Note : Any other relevantanswer, not given herein but given by the candidate be suitably rewarded. S.No. Value Pointe Key Points [aiaris Attotted| Total toeach value | Marks pointe Pata, 1. | B~ Principle based accounting standards 1 1 2. | B~ Indirect tax 1 1 3, | D~Donation of goods 1 1 4. | Objective of Accounting 1 1 Caleulation of Profit or Lose oR, Objective of Accounting 1 Depreciation of Finareial Position of the firm 5, | A~ Both A and R are correet and Ris the correct explanation of A. 1 1 oR B ~ Both A and R are correct but R is not the correct explanation of A. 1 6. | A An Tee Cream seller sold his Deep-Freezer havi a book value € 16,000 for eash € 11,000 and 1 1 earned a profit of € 1000, 7 | B— Receipt 1 MsiAccountney 110. u 2, Debit Voucher Sh ant Maer en | VoucherNo, Dat: ine Amount (2) Da Tania sa rua [ 600 i B | [raacantheqeme ra so Se Mae ‘comtt Difference between Basle “Trade Discount Gash Discount Objeive | —Ilis general alowed] “Its allowed to Wtherecaistwenable | nurse prompt then tstarnpotig en | papment IThoy ell he pwd Hap B 23,b2,e4,e4 Bt 3,400 Journal ote) Pardee LE | De Amount | Ce Amount i ‘ Ghaiy Ae De veo My Purses Ae 600 ‘Te Input OGST Ae 30 1 Input SOST Ae a0 (Goede given as charity and input CGST and input SGST reversed @ 65) Working Note 100 “ia Value of Purchase oR siAccounancy 238, 4, 15; 16. Journal Datel Particlars Lt] De Amount | Cr. Amount z ‘ Furniture Ne Dr 40,000 Input IGST Ne Dr, 4,800 ‘To Bank Ne 4,800 (Fomiture purchased and IGST paid @ 125) ‘Working note 100 Value of Furniture = 4,800 500 50,000 A. © 21,500 oR = 40,000 rue and statement 1 is false, oR A. Both And R are correct and R is the eorvect explanation of A, B. Only statement 3 is . * 800 oR D. Unintentional mistakes Capital ® 10,00,000 Sales = ¥ 10,00,000 (Cash sale € 4,00,000 + Credit sale & 6,00,000) Payment by Debtor/Asyush = € 6,00,000 ~ ¥ 5,000 (Discount) *5,95,000, oR Current Assots = Prepaid Rent ¢ 5,000 Creditors € 15,000 ~¢ 1,000 (Purchase return) = ¢ 14,000 1,000 (Masks) + € 5,000 (from Bank) = % 6,000 Drawings MsiAccountaney a1. in the books of Khayti Date} Particulars IF] De Amount | Cr Amount z z 1 | tint Dr 50,000 Divya Dr 5,000 ‘Te Suspense Ne 55,000 {Goods sold 0 ‘pt for & 50,000 was credited to Divya as ¢ 6,000 now rectified) 2 De 15,000 "Te Amitabh 15,000 (Cegal charges € 16,000 paid to her Lawyer Me Amitabh was debited to his personal account now rectified) 3 | Suspense Ac Dr 10,000 ‘Ta Sales Ae 10,000 (Gales Book was undereast by # 10,000 aow rectified) 18, Books of Jeetendra Accounting Equation Na | Tamsin Assets Capital Liabilities Cash + Machinery + Stork + Avrusd Commission = Capital 1 | Balazobrought [25000 60000 25000 ——=6,000 = 100,000 fra 2 | Rewived 2000 | 2000 2000) bbroerued New Equation | 27000 80000 20000 84007] Biewivag [om a a «tam rch samt vada TP emit ‘0 wi sony ee 7 | Genarann [am a seh 800 ‘were used by In = ee Th m0 iorking nt 2. Pratt « 2 400-€ 2000 "erfor, Cnh sein rom Salo = 800 + #2000 = # 10,00 . Rooke of Karey Traders ial Balance Ae a 08 Dei | Parcs = aan latanes t 7 Fata | | Cin a0 Dat sno | si ‘601000 stAccountancyStock (31/922) 25,000 | Provision for doubtful 5,000 detts Ontice expenses 2,000 | Discount (Ce) 5,000 Advertisement | (a) 3,000 | 10% Loan from Bank "| 200000 Building 5,00,000 | Rent received in advance} | 2,000 Interest on loan 2,000 | Outstanding Salary 8,000 Machinery 10,00,000 | Capital (BR) (4) 3.62,000 Cash at Bank 35,000 Total cw [2.27,000 21,27,000 20, Difference between Reserve and Provision Basis Reserve Provision Nature tis an appropriation | Te isa change against profit, profit. iy Investment | [emay be invested | Tt snot invested fF buts the busines, Compulsion’ | Wisereated out of | It is made because of accounting prudence profits as matter | principles (Prudence) F af pradenee and due ‘oIega requirements, Balance Sheet. It is oR 1 reaulted in ereation of ‘Seeret Reserves’. Secret reserve is a roserve the existence andbr the amount of which is not disclosed in the 1 called Hidden Reserve, It eats be ssid (at there is a surplus of assets over liabilities and that the surplus is not diselosed or shown by the Balance Sheet.4, Advantages of a Secret Reserve (any 2) 1. It increases the working capital of the concern and also strengthens its financial position 2 It enables the directors to tide over unfavourable time. As and ‘when profit reduees, the directors can maintain the rata of dividend by utilising it, 8, Heavy losses of an exceptional nature can be met without disclosing the fac! in the published statements and without disturbing the normal business profit, Disadvantages of a Secret Reserve (any 2) 1, The Balance Shoot will not diselose true and fair position of the affairs of the business. 2. Value of shares goes down in the market, 8 The shareholders do not get their due share of profit from the business. 1. Going concern Assumption was violated here. According to this assumption, it is assumed that business shall eantinue for a foreseeable period and there is no intention to close the business or seale down its operations significantly. It is because of this concept that a distinction is made between capital expenditure, ie.| expenditure that will give benefit for « long period and reventie expenditure, Le,, one whose benefit will be consumed or exhausted ‘within the accounting period. On the basis of this eoncept, fixed assets are recorded at their original cost and they ate depreciated in a systematic manner over their expected useful life. For example, ‘@ machine purchased is expected to last 10 years. The cost of the machinery is spread on a suitable basis over the next 10 years for ascertaining the profit or loss for each year. The total cost of the ‘machine is not treated as an expense in the year of purchase itself. 2 Bull Disclosure Principle is followed here. According to the Principle of Full Disclosure, “there should be complete and ‘understandable reporting on che financial statements ofall significant information relating to the economic affairs of the entity.” Apart from legal requirements, good accounting practice requires Nstaccountancy , malow turnover should be disclosed. 22, Books of Sneha Bank Reconciliation Statement as on December 31, 2022 all material and significant information to be disclosed. Whether information svould be disclosed or not always depends on the ‘materiality ofthe information. Disclosure of material information will result in better understanding. For example, the reasons for Particulars Plus Items Minus Items Balance as per Cash book 1,000, Cheques issued but not presented 7,000 Life ineurance premium paid 1,500 directly by bank Dividend eollecteé by bank direetly 3,500 Balance as per Pess book 10,000 11,500 Bank Reconeiliation Statement ‘as on 31/128 Particulars [Plus Items ‘Minus Items Debit balance as per Pass book 15,000 Cheque received and sent to bank 5,000 recorded in eash eolumn of Cash book| Direet deposit in Bank by ceastomer ‘Aryan’ 7,000 Bank oolumn of Cash book is 10,000 covereasted Overdraft as per Cash book 17,000 27,000 27,000 at sttecounlancy ‘23.| Working note ML Ma_| Total ‘Machine (Cost) 2,00,000 (wariay|3,00,000 | 400,000 Depreciation (2019-20) (20,000) BV. 1,80,000 Depreciation (2020-21) (18,000) 162,000 Depreciation (2021-22) (16200) W 148,800 ‘tal provision for deprecation | 54,200, 74,800 | 1,99,000 ull 4722) BV on 1/422 145,800 1,55,200 Depreciation (71022) 7290) BV (4/107) 138,510 Sale price 30,000 Toss an sale 38,510 Depreciation (318728) 15,520 Dr, Machinery Ale ce Date | Particulars LF | Amt. | Date | Particulars Amt. z x waz | ‘To Balance ssonao0 | i022 | By Provision fr 400 ba Dep Ate o22 | By Benk Ae 190,000 111022 | By Loss onsale ofMach, le ansio 8128 | By Bala et 30.00 50,000 50,000 ares | ToBalance We ‘30000 MsiAccountneyDr ion for Depreciation Ale or Date | Particulars | UF] Amt | Date | Particulars | LF] Amt, z z ‘wine | ToMackinyde| | 61490 | vee | By Balance ba 199,00 signs | ToBalaneeott | | 160320} sto) ‘By Depecaton te 750 3185 By Depresiaton Ne 15520 221,810] 221810 4s | By Balance bid 160320 u Books of Shreya De: Cash Book Double Column) ce Date] Particulars] LF [Cash | Bank] Date | Particulars |L.F.| Cash | Bank © ® oma one m2) TeBalane | f10o00 142 | By Balance Wd 000 | ba wwe} Tecan | p00] 4422] ByBnkAe | | 5,000 Me al ‘422 | By Bank 10 charges ec 6622 | By Outstanting] | 1000 Bente a 8422] ‘to Balan 10 | 6622 | By Balance vt | | 4000 cal hno00 | s,.00| sng | 5,100) 1492] To Balance 4000 ‘22 | By Balance Wad 100 va siaccountancyJournal Proper Date | Particulars LE | Dr Amt. | Cr Amt © ® 21a | Salary Ale De 2,000 ‘To Outstanding Salary Ale 2,000 (Galary still ta be paid) ‘422 | Cheque in hané Ale Dr 5,200 Discountallowel Ale Dr, 300 ‘TW Nano} 5,500 Postdated cheque recived) 28. Journal of ‘Feather Graphics’ Date | Particulars LE | De amt | Cr Amt @ « 1 | Purchase Ae Dr ‘80,000 Input IGST Ne Dr 9,000 ‘ToMites Traders 89,600 (Goods purchased from Mitra Traders) 2 | Machineryave Dr 2,50,000 Input COST Ale Dr. 15,000 Input SGST Ae De 15,000 "To Bank Ave 2,80,000 (Machinery purchased) 3 | Charity Dr 11,200 "To Purchases Ale 10,000 ‘To Input IGST Ae 1,200 (Goods given as charity) Cont Msinecountancy1 | Drawings We De 800 WAL 4,00 purchased for personal us of proprietor) lecrcity expenses Ae De 8000 "To Bank Ale 8,000 (Blestreity axpenses paid) ‘Working note for 2nd transaction) Purchase price = 2,80,000 x 200 - 2,60,000 2 oR Rooks of Dice Furniture House, Pahar Ganj, New Dethi Sales Book Date | Partieula tay. | LF] Details ] Sates | Output | Total No. 16ST z u ‘422 | Laxmi Futniture, Rohtak 4 Sofa set 875,00 oach nooo Less DD, 0 15% 3000 1,00 ‘Add: Outpt IGST @ 18% s3060_| ayo [iro] 3000 | anc60 10422] Star Furnitures, Kanpur 50 Chairs 8200 cach 10,000 10 Tables ©7500 exh 000 Lose: TD.@5 Add: Output IGST @ 18% 2565 i6si5 | 250] 2565 | 1615 stnecountancy aBOR Vishal Mega Mart, Hisar ‘Almira ®3000 neh 2Sofn sts ©5000 enh 20 Chairs @ 600 each Less: TD. 010% ‘Add: Output IGST @ 18% son | 100 | _ 53,10 Sales Ae Ge 7620 | 1are5| waste Note : Output CGST and Output SGST columns are not prepared as there ig no entry in these columns but the examinees may create these columns too, Marks may not be deducted for not preparing these columns. Dr Laxmi Furniture ce Date [Particulars UP | Amt. | Date | Particulars | uP] Amt. t q ‘rd Apel | To Sales A 17,000 Output 060 estate Dr Star Furniture cr: Date | Particulars [ur | Amt. | Date | Particulars | uP | Amt z z 10° Aprlf T Sales Ne 14350 | Output 25 laste Dr ‘Vishal Mega Mart cr Date | Particulars | Lr] Amt. | Date ie ur] Am z t 2B Apo Sales Alc +6000 ‘ToOatpat 8100 1GsTAk Mstnecountancy 828, Part Books of Aksh Profit and Loss Ale for the year ending 81/8/22 Particulars Debit | Particulars Credit x x Insurance Premium 10,000 Balance Sheet as at S1/S/22 [Amount | Assets [Amount z z Prepaid Insurance 2,000 Sales = X Cost of gods sold = € 70,000 126 X Gross profit = 12.6% of sales = Tae x X= Sales = COGS + GP x x x=#7000+% — x-2=710,000 a X= 70,000 x 5 = € 80,000 = Sales Gross Profit = € 80,000 ~ € 70,000 = € 10,000 Any other suitable method may also be accoptod as valid B 28,14 A. Both A and Rare correct and R is the correct explanation of A. stacoountancy “30, an, 2, Difference betwoon Capital Expenditure and Revenue Expenditure Basis Capital Expen« Revenue Expenditure Capacity Teinereases earning Its ineured for earning capacity ofthe business. | profit on. Difference between Capital Expenditure and Revenue Expenditure Basis Capital Expenditure | Revenue Expenditure Pevicd Tis benefit extends to Tis benefit is exhausted rove than one year, within the year Cost of Goods sold = Adjusted purchases + direst expenses = € 5,80,000 + 60,000 = € 640,000 Gross Profit = Net Sales ~ Cost of goods sold = © 11,00,000 ~ @ 6,40,000 = 4,60,000 Operating Profit = Gross Profit ~ Administrative Expenses — Selling Expenses = & 4,60,000 — & 45,000 ~ 2 65,000 = ¥ 3,50,000 Dr: ‘Sundry Debtors x Date [Particulars [tr] Am. [Date | Particulars | uP | Amt 31822 | ToBolaneba || Looo0 | sim | ByBad dasae] — | 5000 summa | ny Ralane 199000 105000 | 105.000 he ad Debts Ae o Date [Particulars [LP | Amt. [Date [Particulars Amt. sama | alacebid | | 000 | 3zaR2 | By Proviso 700 xb debs Ae {sug22 | to Smaey 000 Deore 700 700 stAccountaney 5De Provision for Doubtful Debts Ale co Date | Particulars [LF| Amt | Date | Particulars | Lt | Amt ‘31am | To Bad debts ‘ooo | sve | By Balance ‘0 | Ae be ‘Balance goon | svar | By Profiioss 13,000 ai Ae 17,000 | 000 Working note Debtors 105,000 (1 Further bad debts (6,000) — Not Debtors 100,000 Provision for doubtful debts = 10% of 1,00,000 = 10,000 38, Books of Ayushi Traders Journal Date | Particulars LE] Dr Amt | Cx Amt © © ‘Trading Ale Dr 91900 ‘To Opening stock Ale 45,000 "To Purchases Ne 1,17,500 "To Carriage inward Ne 2,400 "To Dock eharges Ale 5,000 ‘To Power charges Ne 22,000 (Transfer of frect expenses o Trading Al) ‘ira | Sales Ale De 346,800 Closing Stocc Ale Dr 15,000 ‘To Trading Ale 421,800 (Gales and Stock at end ‘aneferred lo Trading Ne) Note : Sales and Closing Stock may be recorded in separate entriessuis ‘Trading Ale Dr "To Profit & Loss Ale (Gross Profit transferred to PALA) 2,29,900 2,29,900 sian Profit & LoseAe De ‘To Carriage utwards Ale ‘To Bad debts le ‘Advertisement Ae ‘Ty Salaries le ‘Th Interest en Bank Laan Ne ‘Rent and Insurance Ae (Indirect expenses transferred to Profit & Loss Ae) 93,600, 4500 1,100 20,000 41,000 2,000 24900 ssi Discount Ae Dr. Commission Ne Dr, ‘Te Profit & Lo Ale (Other incomes transfered to PILA‘) 2,000 14600 3,600 suse Profit & Lass Ae Dr ‘To Capital Ak (Net profit transferred to Capital Al) 140,000 140,000 Msinccountaney3 ‘Trading Account of Kanwar Sen and Sons for the year ended 31/8/2022 ls MstAccountaney Particular Amount | Particulars ‘Amon To Opening Sock 9,200 | By Sales 710,000 less :Broctin = 4000 | 72000 of Machinery co ‘Purchases 40,000 ‘To Carriage on purchases | "] 70 To Gros Prot 195.200 718,100 718,100 Books of Kanwar Son and Sons Profi and Lass Ae for the yoar ending 30922 Particulars Debit ] Particulars Credit t z Mine Expenses 800 Gros Pratt ow | 155200 (Oe Brpenses) _150_ | 2.960 Rent 9 | 64000 | Acsued iaterest on | 5000 Invesinent 00 Depreciation on Machinery | 10,100 Set and Distt Bspenges| 45,300 Not Prof itn Capital — Go| 48,850 1,61,200 1,61,200 onBooks of Raj Kishore and Sons Profit and Loss Ale for the year ending 31/822 Particulars Debit | Particulars Credit x x OutatandingAwditees | 2.000 | Gros Prot 1.67000 Depreciation on Machiey cm] 5000 | Dasont | 0 | 16500 Depreciation on Fumitsry | 200 | Commision 2,000 Rent 10900 (4) rent 22000 Of otereston Laan 2,000 Oc woges 4,000 Lighting oti) 2,000 ‘Telephone expenses: = 3,500 Avert expenns 500 Bnd debs 2.000 Discount allowed 5,000 Net Profit ftoCapitel 0 | 1.26900 170,500 170,500 Balance Sheet As at sua abies Amount | Assets ‘Amount t ‘ sanding A es 2000 | fy wo | sie coms || tm fice) me sinccountancy 10Outstanding Rent stpecountancy rent 12 mate = «10800322 «x 1,00 12,000 ~ & 10,000 = & 2,000 Capital 00 Frit 2000 (Drawings — 000 | a (Depeiaion | 000) | 100 (e)Net Prot 15300 181,300 tom =~ 29000 Tos a0 (oleate _ 2000 00 % Arar ret resid —— ca) | 4500) Debts 40.00 Cashin hand 600 Cash at Bank 110 Bills Resale 7000 1.9100 191.800 Working notes Rent for February and March is outstanding, therefore the rent paid © 10,000 is for 10 months only.