11 Accountancy SP 01

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Class 11 - Accountancy
Sample Paper - 01 (2022-23)
Maximum Marks: 80
Time Allowed: : 3 hours
General Instructions:
1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.
3. Question 1 to 17 and 27 to 29 carries 1 mark each.
4. Questions 18 to 20 and 30 to 32 carries 3 marks each.
5. Questions from 21 to 23 carries 4 marks each.
6. Questions from 24 to 26, 33 and 34 carries 6 marks each.
Part A
1. The vouchers which are prepared for transactions not involving cash, i.e. non-cash transactions, are known as
vouchers.
a) Token
b) Credit
c) Transfer
d) Unilateral
2. Assertion (A): Statements prepared through management account are helpful in decision making process.
Reason (R): The information provided by management accounts is financial and non-financial as well.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
3. Goodwill account is a:
a) Nominal Account
b) Real Account
c) None of these
d) Personal Account
4. What shall be the amount of Capital if Cash is ₹ 5,000; Furniture ₹ 12,000; Stock ₹ 30,000 and Creditors ₹
6,000? a) ₹ 41,000
b) 43,000
c) ₹ 53,000
d) ₹ 47,000
OR
Purchase of machine by cash means:

a) increase in asset and decrease in the asset
b) none of these
c) the decrease in asset and increase in capital
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d) increase in asset and decrease in liability
5. Source of documents are
a) Cash Memo
b) Both Cash Memo and Invoice
c) Neither Cash Memo Nor Invoice
d) Invoice
6. Income statement include
a) Profit and loss account only
b) Trial Balance only
c) Balance sheet only
d) Statement of profit and loss
OR
Which of the following is not a limitation of accounting?

a) Evidence in Legal Matters
b) Based on accounting conventions
c) Incomplete Information
d) Omission of Qualitative Informations
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7. Which of the following correctly differentiates between provision and reserves?
i. A provision is a charge against profit whereas reserve is an appropriation of profit.
ii. Provision is made for a known liability or expense the amount of which is not certain whereas reserve is created for
strengthening the financial position of the business.
iii. Provision is deducted before calculating taxable profits whereas a reserve is created from profit after tax and
therefore it has no effect on taxable profit.
iv. All of these
a) Option (ii)
b) Option (i)
c) Option (iii)
d) Option (iv)
8. Rule of Debit and Credit for Impersonal account is
a) Dr. the receiver and Cr the giver
b) Dr. what goes out and Cr what comes in
c) Dr. all expenses and Cr all gains & Dr. what goes out and Cr what comes in
d) Dr. all expenses and Cr all gains
OR
When a total of the debit side of an account exceeds the total of its credit side, the account is said to have .
a) Debit Balance
b) None of these
c) Debit as well as credit balance
d) Credit Balance
Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions:

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A business purchased goods for ₹ 2,00,000 and sold 75% of such goods during accounting year ended 31st March 2020.
The market value of remaining goods was ₹ 43,000. Accountant valued closing stod at cost. According to him,
i. Owner of the business is treated as creditor to the extent of his capital;

ii. All expenses incurred to earn revenue or a particular period should be charged against that revenue to determine
the net income:
Financial statements are prepared on 31st March every year.
9. A business purchased goods for ₹ 200,000 and sold 75% of such goods during the accounting year ended 31st
March, 2020. The market value of the remaining goody was ₹ 43,000 Accountant valued closing stock it cost:
Identify the concept violated in the above situation.
a) Matching
b) Conservatism
c) Business entity
d) Accounting period
10. Under which concept owner of the business is treated as creditor to the extent of his capital.
a) Conservatism
b) Business entity
c) Matching
d) Accounting period
11. Match the following. Options are
a. General reserve i. reserve are created for specific purpose
b. Specific reserve ii. reserve may or may not involve any receipts of cash
c. Capital reserve iii. created in business for rainy day
a) a - (ii), b - (iii), c - (ii)
b) a - (iii), b - (i), c - (ii)
c) a - (iii), b - (ii), c - (i)
d) a - (ii), b - (i), c - (iii)
12. Which of the following is not a fixed asset?
a) Computers
b) Furniture
c) Building
d) Cash in hand
13. Return of goods purchased on credit to the suppliers will be entered in Book.
a) Purchase
b) Sales
c) Sales Return
d) Purchase Return
14. When goods are returned to supplier assets and are by same amount.
a) liabilities, increased
b) assets, decreased
c) liabilities, decreased
d) assets, increased
15. Which of the following is not a fixed asset?
i. Balance with bank
ii. Plant and Machinery
iii. Building

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iv. Goodwill
a) B only
b) C only
c) A only
d) D only
OR
Out of the following assets, which one is not an intangible asset?

a) Patents
b) Trade Mark
c) Machinery
d) Goodwill
16. Goods sold for Cash Rs 25,000 plus 12% IGST. Sales A/c will be credited
by: a) Rs 28,000
b) Rs 22,000
c) Rs 25,000
d) None of these
17. How secret reserve can be created
a) All of these
b) By charging capital expenditure to revenue
c) Under valuating stock
d) By making excessive provisions
18. When an account is said to have a debit balance and credit balance?
OR
Pass Journal entry for purchase of goods by Amrit, Delhi from Add Gel Pens, Delhi for ₹ 15,000 less Trade Discount
10% and Cash Discount 3%. CGST and SGST is levied @ 6% each. Assume payment is made at the time of purchase.
19. Why is the consistency principle important?
OR
What is meant by Accounting Standard? State any two benefits of it.

20. Distinguish between debtors and creditors.
21. Following balances were extracted from the books of Ravinder Associates as at 31st March, 2017:
(₹) (₹)
Sundry Debtors 4,10,000 Stock (April 1, 2016) 2,30,000
Sundry Creditors 80,000 Premises 12,00,000
Rent and Taxes 48,000 Fixtures & Fittings 3,10,000
Purchases 34,00,000 Bad Debts written off 8,000
Sales 56,00,000 Rent received from sub-let of part of premises 30,000
Trade Expenses 12,000 Loan from Mukul 1,50,000
Returns Outwards 80,000 Interest on Mukul's Loan 15,000
Returns Inwards 1,20,000 Drawings 40,000

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Expenses 4,000 Cash in hand 75,000
Motor Vehicles 6,50,000 Stock on 31st March, 2017
Electricity 25,000 (not adjusted) 3,80,000
You are required to prepare the trial balance treating the difference as his capital.
22. Record the following transactions in a cash book with cash and bank columns:
2017 ₹
Jan. 1 Bank overdraft 12,000
Cash in hand 2,300
Jan. 7 Cheque received from Ram ₹ 4,000 and discount allowed ₹ 200
Jan. 8 Deposited the above cheque into Bank 4,000
Jan. 12 Banked 200
Jan. 15 Received a money order from Gopal 500
Jan. 16 Money is withdrawn from Bank for office use 300
Jan. 18 Bank Charges 20
Jan. 20 Interest on bank overdraft 1,000
23. From the following particulars ascertain the balance that would appear in the Bank Pass Book of A at 31st December
2013:
i. The bank overdraft as per Cash Book on 31st December 2013 ₹ 63,400.
ii. Interest on overdraft for 6 months ending 31st December 2013, ₹ 1,600 is entered in the Pass Book.
iii. Bank charges of ₹ 300 for the above period are debited in the Pass Book.
iv. Cheques issued but not cashed prior to 31st December 2013 amounted to ₹ 11,680.
v. Cheques paid into bank but not cleared before 31st December 2013 were for ₹ 21,700.
vi. Interest on investments collected by the bank is credited in the Pass Book ₹ 12,000.
OR
On 31st March 2018, the Bank Pass Book of Naresh & Co. showed an overdraft of Rs.10,700. From the following
particulars prepare Bank Reconciliation Statement
i. Cheques issued before 31-03-2018 but presented for payment after that date amounted to Rs.900.
ii. Cheques paid into the Bank but not collected and credited until 31-03- 2018 amounted to Rs.2,200.
iii. Interest on overdraft amounting to Rs.1,200 did not appear in the Cash Book.
iv. Rs.5,000 being interest on investments collected by the Bank and credited in the Pass Book were not shown in the
Cash Book.
v. Bank charges of Rs.50 were not entered in the Cash Book.
vi. Rs.800 in respect of dishonoured cheque were entered in the Pass Book but not in the Cash Book.
24. On the basis of the narrations, fill in the missing values:
Journal Entries
Amount Amount
Date Particulars L.F.
(Rs) Cr. (Rs)
(i) Dr.

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To
(Being the bank draft of Rs 10,000 issued to Suman, bank charges Rs 100)
Dr. 10,000
(ii) To 10,000
(Being the cheque of Ranjan dishonoured)
Dr.
To
(iii)
To
(Being the purchase of goods of Rs 30,000; received cash discount @ 2%)
Dr.
(iv)
To
(Being the sale of goods of Rs 30,000 allowed cash discount @ 3% )
Dr.
(v) To
(Being the goods costing Rs 15,000 lost in the fire)
Dr.
(vi)
To 10,000
(Being the rent paid, th of the premises used for residence)
1
4
Dr.
To
To
(vii)
To
(Being the machinery (cost Rs 2,00,000) recorded, adjusting advance (Rs
20,000), old machine (Rs 10,000 cost) and balance by payment by cheque)
Dr. 20,000
(viii) To 20,000
(Being a computer out of stock used for office purposes)
Dr.
(ix) To
(Being the computer (stock) costing Rs 15,000 taken for domestic use)
(x) Dr.
To

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To
(Being the salaries (Rs 40,000) and rent (Rs 15,000) outstanding)
OR
Journalise the following transactions:

2017 Amount (₹)
Dec.01 Hema started business with cash 1,00,000
Dec.02 Open a bank account with SBI 30,000
Dec.04 Purchased goods from Ashu 20,000
Dec.06 Sold goods to Rahul for cash 15,000
Dec.10 Bought goods from Tara for cash 40,000
Dec.13 Sold goods to Suman 20,000
Dec.16 Received cheque from Suman 19,500
Discount allowed 500
Dec.20 Cheque given to Ashu on account 10,000
Dec.22 Rent paid by cheque 2,000
Dec.23 Deposited into bank 16,000
Dec.25 Machine purchased from Parigya 10,000
Dec.26 Trade expenses 2,000
Dec.28 Cheque issued to Parigya 10,000
Dec.29 Paid telephone expenses by cheque 1,200
Dec.31 Paid salary 4,500
25. Trial Balance of Rahul did not agree. Rahul put the difference to Suspense Account. Subsequently, he located
the following errors:
i. Wages paid for the installation of Machinery Rs 600 was posted to Wages A/c.
ii. Repairs to Machinery Rs 400 debited to Machinery A/c.
iii. Repairs paid for the overhauling of second-hand machinery purchased Rs 1,000 was debited to Repairs A/c.
iv. Own business material 8,000 and wages Rs 2,000 were used for the construction of the building. No adjustment was
made in the books.
v. Furniture purchased for Rs 5,000 was posted to Purchases A/c as Rs 500.
vi. Old machinery sold to Karim at its Book value of Rs 2,000 was recorded through sales book.
vii. Total of Sales Returns Book Rs 3,000 was not posted to the ledger.
Rectify the above errors and prepare Suspense Account to ascertain the original difference in Trial Balance.
OR
There was a difference of Rs. 8,595 in a trial balance. It has been transferred to debit side of suspense account. Later on
following errors were discovered. Pass the rectifying entries and prepare the suspense account.
i. Rs 283 discount received from a creditor had been duly entered in his account but not posted to discount account.
ii. Goods bought from a merchant for Rs 770 had been posted to the credit of his account as Rs. 7,700.

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iii. Rs 6,000 owing by a customer had been omitted from the schedule of sundry debtors.
iv. An item of Rs 2,026 entered in the sales return book had been posted to the debit of the customer who returned the
goods.
26. On 1st April, 2016 a firm purchased machinery for ₹ 3,00,000. On 1st October, 2016, additional machinery costing
₹ 1,50,000 was purchased On 1st October, 2017, the machinery purchased on 1st April, 2016 having become obsolete,
was sold for ₹ 1,35,000. On 1st October, 2018, new machinery was purchased for ₹ 3,75,000 while the machinery
purchased on 1st October, 2016 was sold for ₹ 1,27,500 on the same day. The firm provides depreciation on its
machinery @ 10% per annum on original cost on 31st March every year.
Show Machinery Account, Provision for Depreciation Account and Depreciation Account for the period of three
accounting years ending 31st March, 2019.
OR
You are given following balances as on 1st April 2014:

Plant & Machinery A/c Rs 25,00,000
Provision for Depreciation A/c Rs 5,80,000
Depreciation is charged on the plant at 20% p.a. by the diminishing balance method. A piece of machinery purchased on
1st April 2012 for Rs 5,00,000 was sold on 1st October 2014 for Rs 3,00,000.
Prepare the Plant & Machinery Account and Provision for Depreciation Account for the Year ended 31st March 2015.
Also, prepare Machinery Disposal Account.
Part B
27. The time between the acquisition of an asset for processing and its conversion into cash and cash equivalent is called
a) Production cycle
b) Operating cycle
c) None of these
d) Time gap
OR
is the arrangement of various assets and liabilities in a particular order

a) Marshalling
b) Grouping
c) All of these
d) Balancing
28. Loss on sale of an old car is debited to:
a) Profit and Loss A/c
b) Depreciation A/c
c) None of these
d) Car A/c
29. Closing Stock, if given outside the Trial Balance is shown in:
a) Profit and Loss Account
b) Trading Account and Balance Sheet
c) Profit and Loss Account and Balance Sheet
d) Balance Sheet
OR

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Calculate provision for doubtful debt. If debtor closing balance is Rs.3,400 and provision for the reserve of doubtful
debts at 10% on sundry debtors
a) Rs.2,060
b) Rs.3,400
c) Rs.340
d) Rs.3,060
30. Distinguish between Capital Receipts and Revenue Receipts.
31. From the following information, prepare the Trading Account for the year ended 31st March, 2017:
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000;
Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.
32. Why is it necessary to create a provision for doubtful debts at the time of preparation of final accounts?
33. Following is the Trial Balance of Shamit on 31st March, 2019. Pass closing entries and prepare Trading and Profit
and Loss Account for the year ended 31st March, 2019.
TRIAL BALANCE as on 31st March, 2019
Particulars Dr.(₹) Cr.(₹)

Capital A/c - 1,00,000
Stock A/c (1st April, 2018) 20,000 -
Cash at Bank 10,000 -
Cash In Hand 4,400 -
Machinery A/c 60,000 -
Furniture and Fittings A/c 13,600 -
Purchases A/c 1,50,000 -
Wages A/c 1,00,000 -
Power and Fuel A/c 30,000 -
Factory Lighting A/c 2,000 -
Salaries A/c 70,000 -
Discount Allowed A/c 5,000 -
Discount Received A/c - 3,000
Advertising A/c 50,000 -
Sundry Office Expenses A/c 40,000 -
Sales A/c - 5,00,000
Sundry Debtors 85,000 -
Sundry Creditors - 37,000
Total 6,40,000 6,40,000
Value of Closing Stock as on 31st March, 2019 was ₹ 27,000
OR

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From the following trial balance, prepare the trading and profit and loss account for the year ended 31st March 2013 and
the balance sheet as at that date
Debit Credit
Name of Account Name of Account
Amount Amount
(Rs.) (Rs.)
Debit Balances Rent, Rates, and Taxes 800
Sundry Debtors 1,500 Salaries 2,000
Stock on 1 st April 2012 5,000 Drawings 2,000
Land and building 10,000 Purchases 10,000
Cash in hand 1,600 Office expenses 2,500
Cash at bank 400 Plant and machinery 5,700
Wages 3,000 Credit Balances
Bills Receivable 2,000 Capital 25,000
Interest 200 Interest 600
Bad debts 500 Sundry creditors 7,000
Repairs 300 Sales 17,000
Furniture and fixtures 1,500 Bills payable 400
Depreciation 1,000
On 31st March 2013, the stock was valued at Rs. 10,000.
34. From the following Trial Balance of Mr. Alok, prepare Trading and Profit & Loss Account for the year ending
31st March, 2019, and a Balance Sheet as at that date:-
Dr. Balances ₹ Cr. Balances ₹

Drawings 5,275 Capital 59,700
Bills Receivable 4,750 Loan at 8% p.a. (on 1.4.2018) 10,000
Machinery 14,400 Commission Received 2,820
Debtors (including X for dishonoured Bill of ₹1,000) 30,000 Creditors 29,815
Wages 20,485 Sales 1,78,215
Returns Inward 2,390
Purchases 1,28,295
Rent 2,810
Stock (1.4.2018) 44,840
Salaries 5,500
Travelling Expenses 945
Insurance 200
Cash 9,750
Repairs 1,685

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Interest on Loan 500
Discount Allowed 2,435
Bad-Debts 1,810
Furniture 4,480
2,80,550 2,80,550
The following adjustments are to be made :
i. Stock in the shop on 31st March, 2019 was ₹ 64,480.
ii. Half the amount of X's Bill is irrecoverable.
iii. Create a provision of 5% on other debtors.
iv. Wages include ₹ 600 for erection of new Machinery.
v. Depreciate Machinery by 5% and Furniture by 10%.
vi. Commission includes ₹300 being Commission received in advance.
OR
From the following trial balance extracted from the books of MMN, prepare the trading and profit and loss account for
the year ended 31st December, 2013 and the balance sheet as at that date.
Name of Accounts Debit Balance(Rs) Credit Balance(Rs)
Capital 90,000
Drawings 6,480
Land and buiding 25,000
Plant and machinery 14,270
Furniture and fixtures 1,250
Carriage inwards 4,370
Wages 21,470
Salaries 4,670
Provision for bad debts 2,470
Sales 91,230
Sales return 1,760
Bank charges 140
Coal, gas and water 720
Rates and taxes 840
Discount 120
Purchases 42,160
Purchases return 8,460
Bills receivable 1,270

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Trade expenses 1,990
Sundry debtors 37,800
Sundry creditors 12,170
Stock (1st January, 2013) 26,420
Apprentice premium 500
Fire insurance 490
Cash at bank 13,000
Cash in hand 850
Total 2,04,950 2,04,950
Additional Adjustments
Charge depreciation on land and building at 2 1 %, on plant and machinery account at 10% and on furniture and fixtures
2
at 10%. Make a provision of 5% on debtors for doubtful debts. Carry forward the following unexpired amounts.
i. Fire insurance Rs 125
ii. Rates and taxes Rs 240
iii. Apprentice premium Rs 400
iv. Closing stock Rs 29,390

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Class 11 - Accountancy
Sample Paper - 01 (2022-23)
Solution
Part A
1. (c) Transfer
Explanation: Transfer
2. (a) Both A and R are true and R is the correct explanation of A.
Explanation: Both A and R are true and R is the correct explanation of A.
3. (b) Real Account
Explanation: Goodwill account is a Real Account, goodwill is an intangible asset and all assets are real.
4. (a) ₹ 41,000
Explanation: Rs. (5000+12,000+30,000-6,000)=₹ 41,000
OR
(a) increase in asset and decrease in the asset

Explanation: Purchase of machine by cash means an increase in asset and decrease in the asset. For example Machinery
purchase at Rs. 10,000 so Machinery increase and Rs. 10,000 Cash decrease.
5. (b) Both Cash Memo and Invoice
Explanation: yes. Cash memo are prepared on cash sale or cash purchase and Invoices are on credit transaction of sale
and purchase.
these both are source documents, on the basis of which we record transaction.
6. (d) Statement of profit and loss
Explanation: The other name of Profit and loss account is the income statement.
OR
(a) Evidence in Legal Matters

Explanation: Evidence in Legal Matters is not part of a limitation of accounting.
7. (d) Option (iv)
Explanation: Option (iv)
8. (c) Dr. all expenses and Cr all gains & Dr. what goes out and Cr what comes in
Explanation: Impersonal account means account other than personal.
Rule of Personal account is debit the receiver credit the giver.
So, option 3 and option 4 is other than personal means Impersonal.
OR
(a) Debit Balance

Explanation: While preparing an account if the debit side is greater than the credit side, the difference is called "Debit
Balance". So, if Debit Side > Credit Side, it is a debit balance.
9. (b) Conservatism
Explanation: Conservatism

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10. (b) Business entity
Explanation: Business entity
11. (b) a - (iii), b - (i), c - (ii)
Explanation: General reserve is created for no specific purpose to meet any unforeseen contingency, specific reserve is
created to meet a specific expense and capital reserves are created out of capital profits which may or may not involve
cash receipt.
12. (d) Cash in hand
Explanation: Cash in hand is a current asset, not a fixed asset.
13. (d) Purchase Return
Explanation: We prepare seprate books of credit transaction for purchase, sale , purchase return or sale return. So, when
we return goods to the which are purchase on credit from supplier it will be recorded in purchase return book.
14. (c) liabilities, decreased
Explanation: Stock (assets) will reduce due to purchase return and creditors (liabilities) will also decrease by the same
amount.
15. (c) A only
Explanation: Balance with the bank is not a fixed asset. It is current asset.
OR
(c) Machinery
Explanation: Machinery is not an intangible asset. It is tangible assets.
16. (c) Rs 25,000
Explanation: Cash A/c ... Dr.....28,000
To Sales A/c....25,000
To IGST A/c....3,000
So, Sales A/c will be credited by Rs 25,000.
17. (a) All of these
Explanation: Secret Reserve :- A secret reserve is one whose existence is not disclosed in the balance sheet. It can be
created by all the methods mentioned above by suppressing sales, by charging over depreciation etc. It is created without
showing to public.
18. The difference between the sum of the two sides of an account is called the balance. This is the most important part of an
account as it shows value or position of asset, liability, capital, income or expenses of which the account is a record. If
the total of the debit side exceeds the total of credit side then this would be represented by a debit balance and opposite is
true for a credit balance.
OR
Journal Entries
In The Books Of Amrit, Delhi
S.No. Particulars L.F. Dr. (₹) Cr. (₹)

Purchases A/c Dr. 13,500
Input CGST A/c Dr. 810
Input SGST A/c Dr. 810
To Cash A/c 14,666
To Discount Received A/c 454

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(Goods purchased for cash and discount received)
Working Notes:
List Price 15,000
Less: Trade Discount @ 10% 1,500
Value of Goods 13,500
Add: CGST @ 6% 810
Add: SGST @ 6% 810
Invoice Value 15,120
Less: Cash Discount @ 3% 454
Amount Paid 14,666
19. It is assumed that accounting policies are consistent from one period to another. The consistency principle states that
companies should use the same accounting treatment for similar events and transactions over time. In other words,
companies shouldn’t use one accounting method today, use another tomorrow, and switch back the day after that.
Similar transactions should be accounted for using the same accounting method over time. This creates consistency in
the financial information given to creditors and investors.
The realization concept states that no revenue should be recognized unless it has been realized. The prudence principle
puts a further brake on it. It is not prudent to record unrealized gain but it is desirable to guard against all possible losses.
Conservatism can be a useful tool in situations of uncertainty and doubt, but the abuse of this principle can definitely
lead to misleading and incorrect financial statements.
OR
An accounting standard is a common set of principles, standards and procedures that define the basis of financial
accounting policies and practices. Accounting standards improve the transparency of financial reporting in all countries.
Accounting standards are principles that guide and standardizes the process of accounting and is notified by the Ministry
of Corporate Affairs.
The advantages are:
i. Accounting practice is standardized and hence comparison of accounts of different companies is possible.
ii. Window dressing manipulation is not possible.
Basis of
Debtors Creditors
20.20. Difference
Persons or organizations that are liable to Persons or organizations to whom the firm is
(i) Meaning
pay money to a firm are called debtors. liable to pay money are called creditors.
(ii) Nature They have debit balance in the firm's books. They have a credit balance in the firm's books.
(iii) Settlement Amount due is received from them. Payments are made to them.
They are shown as assets in the Balance Sheet They are shown as liabilities in the Balance Sheet
(iv) Treatment
under Current Assets. under Current Liabilities.
21. Books of Ravinder Associates

Trial Balance
as on March 31, 2017
Name of Accounts L.F. Dr. (₹) Cr. (₹)

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Sundry Debtors 4,10,000
Sundry Creditors 80,000
Rent & Taxes 48,000
Purchases 34,00,000
Sales 56,00,000
Trade Expenses 12,000
Return Outwards 80,000
Return Inwards 1,20,000
Expenses 4,000
Motor Vehicles 6,50,000
Electricity 25,000
Opening Stock (on April 01, 2004) 2,30,000
Premises 12,00,000
Fixture & Fittings 3,10,000
Bad Debts written off 8,000
Loan from Mukul 1,50,000
Interest on Mukul’s Loan 15,000
Drawings 40,000
Cash in Hand 75,000
Rent received from Sub-let of part of Premises 30,000
Capital (Balancing Figure) 6,07,000
Total 65,47,000 65,47,000
Note: Closing Stock of Rs 3,80,000 will not appear in Trial Balance, it will be shown after trial balance.
Balance remains in trial balance is recorded as capital according to question.
22. Cash Book
Dr. Cr.
Cash Bank
Date Particulars L.F. Date Particulars L.F. Cash (₹)
(₹) (₹) Bank (₹)
2020 2020
Jan. 1 To Balance b/d 2,300 Jan. 1 By Balance b/d 12,000
To Cheques-in-Hand
8 4,000 12 By Bank A/c C 200
A/c
12 To Cash A/c C 200 16 By Cash A/c C 300
By Bank Charges
15 To Gopal's A/c 500 18 20
A/c

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16 To Bank A/c C 300 20 By Interest on O/D 1,000
31 To Balance c/d 9,120 31 By Balance c/d 2,900
3,100 13,320 3,100 13,320
Feb. Feb.
To Balance b/d 2,900 By Balance b/d 9,120
1 1
Journal Entry
Date Particulars L.F. Debit (₹) Credit (₹)

2017
Feb 8 Cheques-in-hand A/c Dr. 4,000
Discount allowed A/c Dr. 200
To Ram's A/c
4,200
(Being cheque received from Ram)
23. Bank Reconciliation Statement

as on 31st December 2013
Particulars Amount (₹)

Bank Overdraft Balance as per Cash Book 63,400
Add: Interest debited in Pass Book but not yet entered in Cash Book 1,600
Add: Bank charges debited in Pass Book but not yet entered in Cash Book 300
Add: Cheques paid in bank but not yet credited by bank 21,700
87,000
Less: Cheques issued but not yet presented in bank 11,680
75,320
Less: Interest collected and credited by bank but not entered in Cash Book 12,000
Bank Overdraft Balance as per Pass Book 63,320
OR
BANK RECONCILIATION STATEMENT

as on March 31, 2018
Particulars (+) (-)

Unfavourable balance as per Pass Book (Dr.) 10,700
Cheques not yet presented 900
Cheques but not yet collected 2,200
Interest on Investment 5,000
Cheques dishonoured 800

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myCBSEguid
Interest on overdraft debited by bank 1,200
Bank charges debited by bank 50
Unfavourable balance as per Cash Book (Cr.) (Balancing figure) 12,350
16,600 16,600
24. Journal Entries
Amount Amount
Date Particulars L.F.
Dr (Rs) Cr. (Rs)
Suman's A/c Dr. 10,000
Bank Charges A/c Dr. 100
(i) To Bank Account 10,100
(Being the bank draft of Rs 10,000 issued to Suman, bank charges Rs 100 from
the bank Account )
Ranjan's A/c Dr. 10,000
To Bank A/c 10,000
(ii)
(Being the cheque Rs 10,000 already received from Ranjan now made
dishonoured )
Purchases A/c Dr. 30,000
To Cash A/c (30,000 - 600) 29,400
(iii) To Discount Received A/c (30,000 × )
2
100
600
(Being the purchase of goods of Rs 30,000; received cash discount @ 2%
from supplier )
Cash A/c (30,000 - 900) Dr. 29,100
3
Discount Allowed A/c (30,000 × ) Dr. 900
100
(iv)
To Sales A/c 30,000
(Being the sale of goods of Rs 30,000 allowed cash discount @ 3%)
Loss by Fire A/c Dr. 15,000
(v) To Purchases A/c 15,000

(Being the goods costing Rs 15,000 lost in the fire)
3
Rent A/c (10,000 × ) Dr. 7,500
4
Drawings A/c(10,000 × 1
) Dr. 2,500
4
(vi)
To Bank A/c 10,000
(Being the rent paid and 1
th of the premises used for residence of owner)
4
(vii) Machinery A/c (New Machine) Dr. 2,00,000

To Advance for Machinery A/c 20,000
To Machinery A/c (old machinery) 10,000

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myCBSEguid
To Bank A/c (Balancing Figure) 1,70,000
(Being the machinery (cost Rs 2,00,000) recorded in books by adjusting advance
given to supplier (Rs 20,000) and old machine (Rs 10,000 cost) and balance by
payment made by cheque)
Computer A/c Dr. 20,000
To Purchases A/c 20,000
(viii)
(Being a computer out of stock of Rs 20,000 are used for office purposes for the
company)
Drawings A/c Dr. 15,000
To Purchases A/c 15,000
(ix)
(Being the computer (stock) costing Rs 15,000 are taken for domestic use of
owner recorded in the books)
Salaries A/c Dr. 40,000
Rent A/c Dr. 15,000
To Salary Outstanding A/c 40,000
(x)
To Rent Outstanding A/c 15,000
(Being the salaries (Rs 40,000) and rent (Rs 15,000) are outstanding now
recorded in the books )
OR
Journal of Hema
Date Particulars L.F. Debit (₹) Credit (₹)

2017
Dec. 01 Cash A/c Dr. 1,00,000
To Capital A/c 1,00,000
(Started business with cash)
Dec. 02 Bank A/c Dr. 30,000
To Cash A/c 30,000
(Bank account opened with SBI)
Dec. 04 Purchases A/c Dr. 20,000
To Ashu 20,000
(Goods purchased from Ashu)
Dec. 06 Cash A/c Dr. 15,000
To Sales A/c 15,000
(Goods sold for cash)
Dec. 10 Purchases A/c Dr. 40,000

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myCBSEguid
To Cash A/c 40,000
(Goods purchased for cash)
Dec. 13 Suman Dr. 20,000
To Sales A/c 20,000
(Goods goods to Suman)
Dec. 16 Bank A/c Dr. 19,500
Discount Allowed A/c Dr. 500
To Suman 20,000
(Cheque received from Suman and discount allowed)
Dec. 20 Ashu Dr. 10,000
To Bank A/c 10,000
(Cheque forwarded to Ashu)
Dec.b22 Rent A/c Dr. 2,000
To Bank A/c 2,000
(Rent paid by cheque)
Dec.b23 Bank A/c Dr. 16,000
To Cash A/c 16,000
(Cash deposited into bank)
Dec. 25 Machinery A/c Dr. 10,000
To Parigya 10,000
(Machinery purchased from Parigya)
Dec. 26 Trade Expenses A/c Dr. 2,000
To Cash A/c 2,000
(Trade expenses paid)
Dec. 28 Parigya Dr. 10,000
To Bank A/c 10,000
(Cheque issued to Parigya)
Dec. 29 Telephone Expenses A/c Dr. 1,200
To Bank A/c 1,200
(Telephone expenses paid through cheque)
Dec. 30 Salaries A/c Dr. 4,500
To Cash A/c 4,500
(Salary paid)
Total 3,00,700 3,00,700

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25. In the Books of Rahul
Journal Entries
Debit Credit
Date Particulars L.F. Amount Amount
(Rs) (Rs)
(i) Machinery Account Dr. 600
To Wages Account 600
(Being wages paid for the installation of machinery wrongly debited to wages
account, now entry is rectified)
(ii) Repairs Account Dr. 400
To Machinery Account 400
(Being Repairs paid wrongly debited to Machinery account now entry is
rectified)
(iii) Machinery Account Dr. 1,000
To Repairs Account 1,000
(Being Repairs for overhauling of second-hand machinery purchased, wrongly
debited to Repairs account, now entry is rectified)
(iv) Building Account Dr. 10,000
To Purchases Account 8,000
To Wages Account 2,000
(Being material and wages used for the construction of the building, not
debited to building accounts, now entry is rectified)
(v) Furniture Account Dr. 5,000
To Purchases Account 500
To Suspense Account 4,500
(Being Furniture purchased for Rs 5,000 wrongly debited to purchases
account as Rs 500, now entry is rectified)
(vi) Sales Account Dr. 2,000
To Machinery Account 2,000
(Being Sale of Machinery wrongly recorded in the sales book, now entry is
rectified)
(vii) Sales Return Account Dr. 3,000
To Suspense Account 3,000
(Being total of Sales Returns Book not posted to the ledger, now entry is
rectified)
Suspense Account

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myCBSEguid
Date Particulars L.F. Amount (Rs) Date Particulars L.F. Amount (Rs)
To Difference as per Trial Balance 7,500 By Furniture A/c 4,500
By Sales Returns A/c 3,000
7,500 7,500
OR
Rectifying Entries
S. Dr. Cr.
Particulars L.F.
No. (Rs.) (Rs.)
1. Suspense A/c Dr. 283
To Discount Received A/c 283
(Being Discount received Rs.283, not posted in the books, now corrected.)
2. Supplier A/c Dr. 6930
To Suspense A/c 6930
(Being brought goods for Rs.770, wrongly posted to supplier a/c as Rs.7700, now
rectified.)
3. Debtors A/c Dr. 6,000
To Suspense A/c 6,000
(Being owing by a customer, not included in the list of Sundry Debtors,
now rectified.)
4. Suspense A/c Dr. 4,052
To Customer A/c 4,052
(Being goods of Rs.2,026 returned by customer, wrongly debited to customer
a/c now corrected.)
Suspense A/c
Particulars Rs. Particulars Rs.

To Balance b/d 8,595 By Supplier 6,930
To Discount Received 283 By Debtors 6,000
To Customer 4,052
12,930 12,930
26. MACHINERY ACCOUNT
Dr. Cr.
Date Particulars ₹ Date Particulars ₹
2016 2017

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myCBSEguid
April 1 To Bank A/c (Mach. I) 3,00,000 March 31 By Balance c/d 4,50,000
Oct. 1 To Bank A/c (Mach. II) 1,50,000
4,50,000 4,50,000
2017 2017
April 1 To Balance b/d 4,50,000 Oct. 1 By Bank A/c (Mach. I) (Sale) 1,35,000
Oct. 1 By Provision for Depreciation A/c 45,000
By Loss on Sale of Machinery A/c
Oct. 1 1,20,000
(Profit and Loss A/c) (WN 3)
2018
March 31 By Balance c/d 1,50,000
4,50,000 4,50,000
2018 2018
April 1 To Balance b/d 1,50,000 Oct. 1 By Bank A/c (Mach. II) (Sale) 1,27,500
Oct. 1 To Bank A/c (Mach. III) (Sale) 3,75,000 Oct. 1 By Provision for Depreciation A/c 30,000
2019
To Gain on Sale of Machinery
Oct. 1 7,500 March 31 By Balance c/d 3,75,000
A/c (Profit and Loss A/c) (WN 3)
5,32,500 5,32,500
PROVISION FOR DEPRECIATION ACCOUNT
Dr. Cr.
2017 2017
March 31 To Balance c/d 37,500 March 31 By Depreciation A/c 37,500
2017 2017
Oct. 1 To machinery A/c (Mach. I) 45,000 April 1 By Balance b/d 37,500
(₹ 30,000 + ₹ 15,000) Oct. 1 By Depreciation A/c (Mach. I) 15,000
2018 2018
67,500 67,500
2018 2018
Oct. 1 To Machinery A/c (Mach.II) 30,000 April 1 By Balance b/d 22,500
(₹ 7,500 + ₹ 15,000 + ₹ 7,500) Oct. 1 By Depreciation A/c (Mach. II) 7,500
2019 2019
48,750 48,750

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myCBSEguid
2019
April 1 By Balance b/d 18,750
DEPRECIATION ACCOUNT
Dr. Cr.
2017 2017
March 31 To Provision for Depreciation A/c 37,500 March 31 By Profit and Loss A/c 37,500
2017 2018
Oct. 1 To Provision for Depreciation A/c 15,000 March 31 By Profit and Loss A/c 30,000
2018
March 31 To Provision for Depreciation A/c 15,000
30,000 30,000
2018 2019
Oct. 1 To Provision for Depreciation A/c 7,500 March 31 By Profit and Loss A/c 26,250
2019
March 31 To Provision for Depreciation A/c 18,750
26,750 26,750
Working Notes:
i. Calculation of Accumulated Depreciation on Machine I: ₹

Depreciation for 2016 - 17 30,000
Depreciation for 2017 - 18 (Sold on 1st October, 2018) 15,000
Accumulated Depreciation 45,000
ii. Calculation of Depreciation on Machine II: ₹

Depreciation for 2016 - 17 (Purchased on 1st October, 2016) 7,500
Depreciation for 2017 - 18 15,000
Depreciation for 2018 - 19 (Sold on 1st October, 2018) 7,500
Accumulated Depreciation 30,000
Calculation of Gain/(Loss) on Sale of Machine I: Machine I ₹ Machine II ₹
iii.
Cost of Machinery 3,00,000 1,50,000
Less: Accumulated Depreciation (till the date of sale) 45,000 30,000
Book Value on Date of Sale (A) 2,55,000 1,20,000
Sales Proceeds (B) 1,35,000 1,27,500
Gain/(Loss) on sale (B - A) 1,20,000 7,500

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myCBSEguid
iv. Depreciation under the straight-line method is calculated on original cost of asset after reducing salvage value. Each
year same amount of depreciation is charged. When provision for depreciation account is prepared depreciation is
charged through provision for depreciation account and not asset account.
OR
Machinery Account
Dr. Cr.
Amount Amount
Date Particulars J.F. Date Particulars J.F.
(Rs) (Rs)
2014 April To Balance By Machinery Disposal
25,00,000 2014 Oct. 1 5,00,000
1 b/d Account
2015 March
By Balance c/d 20,00,000
31
25,00,000 25,00,000
2015 April To Balance 2016 March
20,00,000 By Balance c/d 20,00,000
1 b/d 31
20,00,000 20,00,000
Provision for Depreciation Account
Dr. Cr.
Amount Amount
(Rs) (Rs)
2013 To Machinery 2014 April
2,12,000 By Balance b/d 5,80,000
March 31 Disposal Account 1
(WN1)
By Depreciation
2014 Oct. 1 32,000
Account (WN 1)
2015 2015 March By Depreciation
To Balance b/d 7,20,000 3,20,000
March 1 31 Account (WN 2)
9,32,000 9,32,000
2016 April
By Balance b/d 7,20,000
1
Machinery Disposal Account
Dr. Cr.
Amount Amount
(Rs) (Rs)
2014 2014 By Bank Account (Sale of
To Machinery Disposal Account 5,00,000 3,00,000
Oct. 1 Oct. 1 machinery)
2014 To Profit & Loss Account (Gain on 12,000 2014 By Provision for 2,12,000

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myCBSEguid
Oct. 1 sale of machinery) Oct. 1 Depreciation Account
5,12,000 5,12,000
Working Note:
S.No. Particular Amount (Rs)
1. Depreciation Provided on Machinery sold till 31st Oct. 2014:
For 2012-2013 (5,00,000 × 20
) 1,00,000
100
For 2013-2014 (400000 × 20

) 80,000
100
20
For 2014-2015 (320000 × 100
× 6
) 32,000
12
Total Depreciation on Machinery sold 2,12,000

2. Calculation of Depreciation on machinery provided for 2014-15:
Balance of provision for Depreciation on 1st April 2014 5,80,000
Add: Depreciation Provided on Sold Machinery 32,000
6,12,000
Less: Accumulated Depreciation on Machinery sold (WN 1) 2,12,000
Depreciation on the Remaining Machinery 4,00,000
Cost of Remaining Machinery 20,00,000

Less: Depreciation on Remaining Machinery 4,00,000
WDV of Remaining Machinery 16,00,000
20
Depreciation on machinery provided during 2014 - 15: 16,00,000 × = Rs 3,20,000
100
Part B
27. (b) Operating cycle
Explanation: it included all the steps from purchasing the raw material and converting it in to finished goods and then
selling it.
OR
(a) Marshalling
Explanation: marshalling refers to the arrangement of assets and liabilities in particular order. it can be done in
two ways- on the basis of permanence and on the basis of liquidity.
28. (a) Profit and Loss A/c
Explanation: Loss on sale of the car will be transferred to Profit and Loss A/c.
29. (b) Trading Account and Balance Sheet
Explanation: Closing stock will be shown in the Trading Account and Balance Sheet if given outside the Trial balance.
OR
(c) Rs.340
Explanation: Amount of Provision for doubtful debts = 10% of 3,400 = 340
30.30. Capital Receipts Revenue Receipts

Amount received from the sale of fixed assets or investments i.e., non-current Money obtained from the sale of

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myCBSEguid
assets. goods or services.
Capital contributed by proprietors, partners or money obtained from the issue of Commission and fees received for
shares and debentures in case of the company. services rendered.
31. Trading Account

for the year ended 31st March, 2017
Dr. Cr.
Particulars Amount (₹) Particulars Amount (₹)
To Adjusted Purchases 15,00,000 By Sales 21,40,000
To Freight and Packing 15,000 Less: Return Inwards 40,000 21,00,000
To Factory Expenses 60,000
To Gross Profit (Balancing Figure) 5,25,000
21,00,000 21,00,000
Working Notes:
Calculation of Adjusted Purchases = Opening Stock + Net Purchases - Closing Stock
Point of Knowledge:
Closing stock is not showing separately in the trading account as it is already subtracted in adjusted purchases.
Packing Expenses on Sales’ and ‘Depreciation’ are indirect expenses and hence not debited to the Trading A/c.
32. For recording business transactions, the convention of conservatism is followed which states that provision should be
made for expected profit and gains should not be accounted for. As it is not possible to accurately know the amount
of bad debts. Therefore, in order to bring an element of certainty in the amount of bad debts from debtors a provision
for doubtful debts is created to cover the loss of possible bad debts. A firm must be convinced with the amount of net
debtors which it is going to realize by the end of the financial year and for this purpose, provision for doubtful debts
certainly provides a helping hand.
33. JOURNAL OF SHAMIT
Date Particulars L.F. Dr.(₹) Cr.(₹)

2019
March
Trading A/c 3,02,000
31
To Stock A/c 20,000
To Purchases A/c 1,50,000
To Wages A/c 1,00,000
To Power and Fuel A/c 30,000
To Factory Lighting A/c
2,000
(Bein the direct expenses debited to Trading Account)
March
Sales A/c 5,00,000
31
To Trading A/c 5,00,000
(Bein the amount of Sales transferred to the credit of the Trading Account)

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myCBSEguid
March
Stock (Closing) A/c 27,000
31
To Trading A/c 27,000
(Being the value of stock on hand on 31 st March, 2019)
March
Trading A/c 2,25,000
31
To Profit and Loss A/c
2,25,000
(Being the transfer of gross profit)
March
Profit and Loss A/c 1,65,000
31
To Discount Allowed A/c 5,000
To Salaries A/c 70,000
To Advertising A/c 50,000
To Sundry Office Expenses A/c
(Being the various indirect expenses accounts transferred to the debit of the 40,000
Profit and Loss Account)
March
Discount Received A/c 3,000
31
To Profit and Loss A/c
(Being the credit balance of discount received transferred to the profit and Loss 3,000
Account)
March
Profit and Loss A/c 63,000
31
To Capital A/c
63,000
(Being the transfer of Net Proft to the Capital Account)
TRADING ACCOUNT OF SHAMIT for the year ended 31st March, 2019
Dr. Cr.
Particulars ₹ Particulars ₹
To Stock 20,000 By Sales 5,00,000
To Purchases 1,50,000 By Closing Stock 27,000
To Wages 1,00,000
To Power and Fuel 30,000
To Factory Lighting 2,000
To Gross Profit c/d 2,25,000
(Transferred to Profit and Loss A/c)
5,27,000 5,27,000

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myCBSEguid
PROFIT AND LOSS ACCOUNT OF SHAMIT
for the year ended 31st March, 2019
Dr. Cr.
Particulars ₹ Particulars ₹
To Salaries 70,000 By Gross Profit 2,25,000
To Discount Allowed 5,000 By Discount Received 3,000
To Advertising 50,000
To Sundry Office Expenses 40,000
To Net Profit 63,000
(Transferred to Capital A/c)
2,28,000 2,28,000
OR
Trading & Profit and Loss A/c
Amount Amount
Particulars Particulars
(Rs) (Rs)
To Opening Stock 5,000 By Sales 17,000
To Purchase 10,000 By Closing Stock 10,000
To Wages 3,000
To Gross Profit c/d 9,000
27,000 27,000
======= ======
To Interest 200 By Gross Profit b/d 9,000
To Office Expense 2,500 By Interest 600
To Salaries 2,000
To Rent, rates and taxes 800
To Depreciation 1,000
To Repairs 300
To Bad Debts 500
To Net Profit 2,300
9,600 9,600
====== ======
Balance Sheet
Amount Amount
Liabilities Assets
(Rs) (Rs)

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myCBSEguid
Capital 25,000 Debtors 1,500
Add Net Profit 2,300 Stock 10,000
Less Drawings 2,000 25,300 Plant & Machinery 5,700
Furniture & Fixture 1,500
Creditors 7,000 Bills Receivables 2,000
Bills Payable 400 Land & Building 10,000
Cash 1,600
Bank 400
32,700 32,700
======= ======
In order to arrive at the balance sheet of a business, one needs to prepare the trading account and profit and loss account
first. This account is prepared to arrive at the figure of revenue earned or loss incurred during a period.
34. Trading Account of Mr. Alok

for the year ended March 31, 2019
Dr. Cr.
Amount Amount
(₹) (₹)
To Opening Stock 44,840 By Sales 1,78,215
To Purchases 1,28,295 Less: Return Inwards 2,390 1,75,825
To Wages 20,485 By Closing Stock 64,480
Less: Erection Charges of New Machinery 600 19,885
To Gross Profit (Balancing Figure) 47,285
2,40,305 2,40,305
Profit and Loss Account of Mr.

Alok for the year ended March 31,
2019
Dr. Cr.
Amount Amount
(₹) (₹)
To Depreciation: By Gross Profit 47,285
Machinery 750 By Commission 2,820
Furniture 448 1,198 Less: Comm. Received in advance 300 2,520
To Old Bad Debts 1,810
Add: Further Bad Debts 500
Add: New Provision 1,450 3,760
To Rent 2,810

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myCBSEguid
To Interest on Loan 500
Add: Outstanding 300 800
To Salaries 5,500
To Travelling Expenses 945
To Insurance 200
To Repairs 1,685
To Discount Allowed 2,435
To Net Profit (Balancing Figure) 30,472
49,805 49,805
Balance Sheet of Mr.

Alok as at March 31, 2019
Amount Amount
Liabilities Assets
(₹) (₹)
Capital 59,700 Fixed Assets
Add: Net Profit 30,472 Machinery 14,400
Less: Drawings 5,275 84,897 Add: Erection charges 600
8% Loan 10,000 Less: Depreciation 750 14,250
Current Liabilities Furniture 4,480
Creditors 29,815 Less: Depreciation 448 4,032
Outstanding Interest 300 Current Assets
Commission received in advance 300 Closing Stock 64,480
Bills receivables 4,750
Debtors 30,000
Less: Bad Debts 500
Less: Pro. for Doubtful Debts 1,450 28,050
Cash in Hand 9,750
1,25,312 1,25,312
Working Note:-
Calculation of Depreciation:-
Depreciation of Machinery = ₹14,400 + ₹600 × 5% = ₹ 750
Calculation of Provision for Doubtful debts:-
Provision for doubtful debts = Sundry Debtors - Further Bad debts - Amount recovered × Rate
Provision for doubtful debts = (₹30,000 - ₹500 - ₹500) × 5%
Provision for doubtful debts = ₹1,450
When adjustments are given in trial balance all the adjustments will be taken in the balance sheet only. Adjustments that
are given after trial balance will be shown both in trading and profit and loss account and balance sheet.

31 /
myCBSEguid
OR
The Trading and Profit and Loss account & Balance Sheet of MMN will be prepared in the following manner :
Trading and Profit and loss Account

for the year ended 31st December, 2013
Dr Cr
Particulars Amt(Rs) Particulars Amt(Rs)
To Opening Stock 26,420 By Sales 91,230
To purchases 42,160 Less : Sales Return (1,760) 89,470
Less : Purchases Return (8,460) 33,700 By Closing Stock 29,390
To Wages 21,470
To Carriage Inwards 4,370
To Coal, Gas and Water 720
To Gross Profit transferred to Profit &
32,180
Loss A/c
1,18,860 1,18,860
To Salaries 4,670 By Gross Profit b/d 32,180

To Bank Charges 140 By Discount 120
To Rates and Taxes 840 By Apprentice Premium(note 1) 500
(-)Prepaid rates & taxes (240) 600 (-)Unexpired Premium (400) 100
By Old Provision for Doubtful
To Trade Expenses 1,990 2,470
Debts
To Fire Insurance 490
(-)Prepaid insurance (125) 365
To Provision for Doubtful Debts
To Depreciation on
Land and Building 625
Plant and Machinery 1,427
Furniture and fixtures 125 2,177
To Net Profit Transferred to Capital A/c 23,038
34,870 34,870
Balance Sheet
as at 31st December,2013

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myCBSEguid
Liabilities Amt(Rs) Assets Amt(Rs)
Sundry Creditors 12,170 Land and Building 25,000
Apprentice Premium Received in Advance 400 (-)Depreciation (625) 24,375
Capital 90,000 Plant and Machinery 14,270
(+)Net Profit 23,038 (-)Depreciation (1,427) 12,843
1,13,038 Furniture and Fixtures 1,250
(-)Drawings 6,480 1,06,558 (-)Depreciation (125) 1,125
Opening Balance 10,000 Debtors 37,800
(-)Provision for Doubtful
(-)Drawings 4,452 (1,890) 25,910
Debts
5,548 Bills Receivable 1,270
(+)Net Profit gtransferred from Profit & Loss
37,666 43,214 Closing Stock 29,390
A/c
Cash at Bank 13,000
Cash in Hand 850
Prepaid fire insurance 125
Prepaid Rates and Taxes 240
1,19,128 1,19,128
Note :
1. Apprenticeship premium is a revenue income of the business. Unearned premium means, premium received in
advance. Thus, it has been deducted from the income received. The amount of unearned premium will be shown in
liability side of Balance sheet.

33 /

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myCBSEguide

1. This question paper contains 34 questions. All questions are compulsory.

Purchase of machine by cash means:

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Which of the following is not a limitation of accounting?

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i. Owner of the business is treated as creditor to the extent of his capital;

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Out of the following assets, which one is not an intangible asset?

What is meant by Accounting Standard? State any two benefits of it.

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Journalise the following transactions:

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You are given following balances as on 1st April 2014:

is the arrangement of various assets and liabilities in a particular order

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TRIAL BALANCE as on 31st March, 2019

Particulars Dr.(₹) Cr.(₹)

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Dr. Balances ₹ Cr. Balances ₹

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(a) increase in asset and decrease in the asset

(a) Evidence in Legal Matters

(a) Debit Balance

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S.No. Particulars L.F. Dr. (₹) Cr. (₹)

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21. Books of Ravinder Associates

Name of Accounts L.F. Dr. (₹) Cr. (₹)

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22. Cash Book

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Date Particulars L.F. Debit (₹) Credit (₹)

23. Bank Reconciliation Statement

Particulars Amount (₹)

BANK RECONCILIATION STATEMENT

Particulars (+) (-)

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24. Journal Entries

(v) To Purchases A/c 15,000

(vii) Machinery A/c (New Machine) Dr. 2,00,000

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Date Particulars L.F. Debit (₹) Credit (₹)

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Particulars Rs. Particulars Rs.

26. MACHINERY ACCOUNT

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PROVISION FOR DEPRECIATION ACCOUNT

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i. Calculation of Accumulated Depreciation on Machine I: ₹

ii. Calculation of Depreciation on Machine II: ₹