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PLUS ONE ACCOUNTANCY - PREVIOUS QUESTIONS (d) Deferred Revenue Expenditure (2023 Imp - 1 Mark)
14. The person who owes money to the firm is _________.
CHAPTER 1 (a) Debtor (b) Creditor (c) Owner (d) Manager (2023 Imp - 1 Mark)
Introduction to Accounting 15. Classify the following items as Revenue, Expense. Gain and Profit.
1.Note books purchased by a stationery shop comes under …………… a) Profit on sale of investments b) Interest received
a) Assets b) Income c) Purchases d) Liabilities (2018 Mar -1 Mark) c) Goods sold at above cost d) Depreciation (2018 Imp -2 Marks)
2. Which one of the following events is NOT a business transaction? 16. Give examples for each of the following terms :
a) Furniture purchased for cash. b) Goods are ordered for next month. c) 10% of debtors are i. Revenue ii. Gain iii. Short-term liability iv. Fixed assets (2019 Imp -2 Marks)
treated as bad d) Salary outstanding to the employee. (2018 Imp - 1 Mark) 17. Match the following :
3. Pick out the wrong pair (a) A person who owes money to an enterprise i) Profit
a) Land-Building b)Cash-Stock c)Debtors-Machinery d)Copyright -Patent (2019 Mar - 1 Mark) (b) Withdrawal of money or goods by the owner from (ii) Assets
4. Creative Traders provides accounting information to its users whenever it is required for. Specify the the business
qualitative characteristics of accounting. (c) Excess of revenue over expenses (iii) Drawings
(a) Understandability (b) Relevance (c) Comparability (d) Reliability (2019 Imp - 1 Mark) (d) Economic resources of an enterprise (iv) Debtor
5. Find out the wrong Pair. (2021 Mar - 2 Marks)

(a) Salary - Revenue expenditure (b) Furniture - Capital expenditure 18. Complete the series from the items given in the brackets. I. Revenue Expenditure …………… II.
(c) Bank loan - Revenue receipt (d) Sale of machinery - Capital receipt (2019 Imp - 1 Mark) Capital Expenditure …………… III. Revenue Receipts …………… IV. Capital Receipts ……………
6. The Person who owes money to the business is called (Bank Loan, Machinery, Salary, Rent received) (2021 Mar - 2 Marks)
a) Debtor b) Creditor c) Partner d) None of these (2020 Mar - 1 Mark) 19. Fill in the blanks as shown in example.
7. Choose an internal user from the given users of accounting information Example : The person who owes money to the business – Debtor
a) Creditors b) Bank c) Managers d) Government (2020 Imp - 1 Mark) (a) The person to whom the business owes Money – ?
8. Cash or other assets invested by the owner in the business is ______. (b) Money invested by businessman into the business – ? (2021 Imp - 2 Marks)
(a) Fixed Asset (b) Capital (c) Current Asset (d) None of these (2021 Mar - 1 Mark) 20. Fill the blank as per the hint given :
9. Which among the following is an intangible asset ? Hint : Investment by the owner in the firm - Capital
(a) Goodwill (b) Building (c) Cash (d) Stock of goods (2021 Imp - 1 Mark) (a) Assets held for a short period of time - _____
10. Costs incurred by a business in the process of earning revenue are called as ________. (b) ______________________________ - Debtor (2022 Mar - 2 Marks)
(a) Capital Expenditure (b) Expenses (c) Capital (d) Assets (2022 Mar - 1 Mark) 21. State the qualitative characteristics of accounting information. (2022 Imp - 2 Marks)
11. A person to whom the business owes money is called 22.Complete as per hint given
(a) Debtor (b) Creditor (c) Manager (d) Partner (2022 Imp - 1 Mark) Current Asset : Cash in hand Fixed Asset : ? Intangible Asset : ?
12. Amount invested by the owner in the business is called _______ . Long term liabilities : ? Current liabilities : ? (2023 Mar - 1 Mark)
(a) drawings (b) investment (c) capital (d) asset (2023 Mar - 1 Mark) 23. List out the qualitative characteristics of Accounting information. (2023 Imp - 2 Mark)
13. Heavy expenditure incurred on advertising is __________. 24. In a business organization, goods are known in different names. Write the names used for the goods
(a) Capital Receipt (b) Capital Expenditure (c) Revenue Expenditure in the following cases.
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a) Goods remaining unused at the end of the year. 2. As Per business entity concept owner of the business is …………….
b) Goods returned by the buyer due to breakage in transit. a) supplier b) creditor c) debtor d) borrower (2018 Imp – 1 Mark)
c) Goods sold for cash and credit. (2018 Mar -3 Marks) 3. While preparing final accounts outstanding wages is added to wages account. identify the accounting
25.What are the objectives of accounting (Any Three) (2020 Mar &2022 Mar - 3 Marks) principle related with this statement. (2019 Mar -1 Mark)
26.Explain briefly about any Three branches of accounting (2020 Imp - 3 Marks) 4. Which accounting concept specifies the practice of crediting closing stock to the trading account?
27. Briefly explain about any 3 qualitative characteristics of accounting. (2021 Mar - 3 Marks) (a) Cost concept (b) Revenue realization concept (c) Going concern concept (d) Mating concept
28. Classify the following users of accounting information into internal and external users : (2019 Imp -1 Mark)
(a) Chief Executive Officer (b) Customers (c) Finance Officer (d) Plant Manager (e) Labor Unions 5. Multiple types of taxes in goods and services were abolished through the introduction of __.
(f) Banks (2021 Imp - 3 Marks) (a) VAT (b) GST (c) Octroi (d) Income tax (2020 Mar -1 Mark)
29. Categorize the following as Revenue income, Revenue expenditure, Capital income and Capital 6. Name the new tax system introduced in our country, with the slogan ‘One country One Tax’
expenditure : (2020 Imp-1 Mark)
(a) Rent paid (b) Machinery purchased (c) Commission received (2022 Imp - 3 Marks) 7. Identify the accounting principles related to the following:
30. State any three objectives of accounting. (2023 Mar - 3 Mark) a. Purchased 10 kg of raw materials for Rs. 5,000 was entered in the books of account as Rs.5,000.
31. Explain briefly any three objectives of Accounting. (2023 Imp - 3 Mark) b. Assets of business are always equal to the claims of owners and outsiders. (2018 Mar -2 Marks)
32. Accounting has certain objectives to business. Explain. (2021 Mar - 4 Marks) 8. Arun constructed a building for Rs.5,00,000 for his new business concern. After 2 years the market
33. Name the following : value of the building is enhanced to Rs.8,00,000.
(a) Withdrawal of money by the owner from the business for personal use. a) If you are the accountant, which amount appear in the books?
(b) The amount of goods lying unsold at the end of an accounting period. b) What is the accounting principle in support your recording? (2018 Imp - 2 Marks)
(c) Excess of income over expenditure of a business organization. 9. i. State the concept of the policy of anticipate no profit and provide for all possible losses.
(d) The documentary evidence in support of a transaction. (2021 Imp - 4 Marks) ii. Recommend any one practice of applying this concept in accounting. (2019 Imp -2 Marks)
34. Match the following : 10. Identify the accounting concepts.
A B (a) A business is separate from its owner
(a) Sales - (1) Asset (b) Assets = Liabilities + Capital (2021 Mar - 2 Marks)
(b) Carriage inwards - (2) Indirect income 11. ‘For every debit, there is an equal credit.’ Explain this statement with the applicable accounting
(c) Rent received - (3) Direct income principle. (2021 Imp - 2 Marks)
(d) Carriage outwards - (4) Direct expense 12. Expand the following :
(e) Cash at bank - (5) Indirect expense (2021 Imp - 5 Marks) (i) GAAP
(ii) IFRS (2022 Mar - 2 Marks)
CHAPTER 2 13. Write a note on Business entity concept. (2022 Imp -2 Marks)
14. Royal Furniture received an order for making a dining table on 10th May 2017 and they complete the
THEORY BASE OF ACCOUNTING
work on 15th July, 2017. The dining table was delivered to the customer on 20th July 2017 and received
1. State the accounting concept, if a business charges depreciation under written down value method and
the payment on 25th July, 2017. In which date this transaction will be recorded in the books of the Royal
it follows the same method in the subsequent 5 years. (2018 Imp – 1 Mark)
Furniture? Why? (2018 Mar -3 Marks)
3 4
15. What are the following terms stand for? 21. Match the following :
a) GAAP b) 1FRS c) ICAI (2018 Imp – 3 Marks) A B
16. Write any 3 advantages of Goods and Service Tax. (2023 Mar – 3 Marks) (i) Creating provision for doubtful debt (a) Dual aspect concept
17. State which principles / concepts are applicable in the following cases.
(ii) Transactions are to be supported by source (b) Conservatism
(a) Creation of provision for doubtful debts. (b) Capital brought by the owner is treated as a liability.
documents
(c) Method of calculation of depreciation is not changing year after year. (d) Accounting should focus on
(iii) Salary outstanding added to salary in P/L (c) Objectivity
material facts. (2020 Mar – 4 Marks)
A/c
18. . Match the following item given in set A with that of set B
(iv) Every transaction has a two fold effect (d) Matching concepts
A B
(2023 Mar - 4 Marks)
(a) Creating provision for doubtful debts - (i) Business entity concept
22.
(b) Owner and business are separate and distinct - (ii) Money measurement concept
A B
(c) Business has fairly long life - (iii) conservatism concept
(a) Policy of Playing Safe (1) Money Measurement Concept
(d) Qualitative aspects are ignored in accounts - (iv) Consistency concept
- (v) Going concern concept (2020 Imp- 4 Marks) (b) Capital is treated as liability of the business (2) Matching Concept
19.Match the following : (c) Profit = Revenue – Expenses (3) Conservatism Concept
A B (d) Qualitative aspects are ignored in accounting (4) Business Entity Concept
(a) The existence of business is separate from its (1) Conservatism Concept (2023 Imp - 4 Marks)
owner
(b) Assets = Liabilities + Capital (2) Cost Concept 23. (a) Give the full form of GAAP.
(c) The recording price of assets is its acquisition (3) Business Entity Concept (b) Write the meaning of GAAP.
price (c) Identify the relevant principles and concepts associated with the following :
(d) Do not anticipate profit, but provide for all (4) Dual aspect Concept (1) The quality of manpower is not recorded in the books of accounts.
losses (2) For every debit there is an equal credit.
(2022 Mar - 4 Marks) (3) Treatment of Outstanding salary.
20. Match the following : (4) Business have got indefinite life.
A B (5) Stock is valued at cost price or market price whichever is less. (2021 Mar- 8 Marks)
A Closing stock is valued at cost price or market price Money measurement 24. Explain any four accounting concepts from the following :
whichever is less (a) Accounting period concept. (b) Business entity concept. (c) Money measurement concept
B Every transaction has two aspects Consistency (d) Matching concept (e) Conservatism concept (2021 Imp - 8 Marks)
C Accounting records monetary events only Conservatism

D Frequent changes in accounting policies are not Duality CHAPTER 3
advisable Recording of Transactions-I
(2022 Imp – 4 Marks) 1. Fill in the blank.
5 6
……….... A/c Dr. 11. Complete the table as per the hint.
To Thomas & Co. A/c (Purchased Machinery from Thomas & Co.) (a) Asset increases Debit
a) Purchase b) Cash c) Machinery d) Goods (2018 Mar - 1 Mark) (b) Income increases ……………….
2. A furniture merchant used 2 chairs for his office use, which was credited in (c) Expenses increases …………………….
(a) Purchases account (b) Furniture account (c) Office furniture account (d) Drawings account (2021 Mar - 2 Marks)
(2019 Imp- 1 Mark) 12. Complete the journal.
3. The process of recording transactions in journal is called as ________.
(a) Posting (b) Balancing (c) Journalizing (d) Totaling (2022 Mar -1 Mark) Cash A/c Dr. 50000 50000
4. The book in which all accounts are maintained is known as To …………
(a) Journal (b) Ledger (c) Cash book (d) Sales book (2022 Imp -1 Mark) (a) (Started business with cash)
5. _______ is a collection of all the accounts debited or credited in journal or day books. (b) …………….. Dr. 4000 4000
(a) Journal (b) Ledger (c) Cash book (d) Sales book (2023 Mar -1 Mark) (c) ……………..
6. The process of entering transactions in a journal is called _______ . (paid rent)
(a) Posting (b) Balancing (c) Journalising (d) Trial balance (2023 Mar -1 Mark) Cash A/c Dr. 20000 20000
7. The principal book of account is _______. To Sales (
(a) Journal (b) Ledger (c) Purchase Book (d) Sales Book (2023 Imp -1 Mark) (d) ……………..)
8. Which of the following is correct ? (2023 Mar - 2 Marks)
(a) Liabilities = Assets – Capital 13. Pass Journal Entries for the following transactions :
(b) Assets = Liabilities – Capital (a) Goods taken by the proprietor for personal use Rs. 5,000.
(c) Capital = Assets + Liabilities (b) Withdraw cash from bank for office use Rs. 2,000. (2023 Imp -2 Marks)
(d) Capital = Liabilities – Assets (2023 Imp -1 Mark) 14. Show the effect of following transactions on Assets, Liabilities and Capital based on accounting
9. Complete the following as per hint given equation
Transaction Effect on Business a) Started business with cash Rs. 1,50,000
a Purchased goods for cash Increase in asset b) Rent received Rs. 5,000
Decrease in asset c) Purchased goods on credit from Rema Rs. 2000
b Bought furniture on credit ………..?.......... d) Paid cash for household expenses Rs. 4000
………..?.......... e) Sold goods for cash (cost Rs. 10,000) Rs.13, 000
c Bank loan repaid ………..?.......... f) Deposited into bank Rs.25,000 (2018 Imp- 3 Marks)
………..?.......... 15. Write the accounting equation and find out the missing figure'
(2019 Mar - 2 Marks) Assets Liabilities Capital
10. Pass journal entries for the following transactions 1 80000 50000 ?
a)Goods costing Rs.5,000 taken away from the business by the proprietor for his personal purpose 2 ? 45000 15000
(2020 Imp -2 Marks)
7 8
3 60000 ? 35000 To Capital A/c 10,000 (…………………………)

(2019 Imp – 3 Marks) c) Rejitha's A/c Dr 20,000
16. Give journal entries for the following transactions : To Bank 20000 ( ... …………………………)
(a) Sold goods to Midhun Rs.18,000. (b) Paid Rent Rs.10,000. d) Sales A/c Dr. 60,000
(c) Withdrew cash from business for personal use Rs.4000 (2020 Mar - 3 Marks) To Trading A/c 60000 (…………………. . .. ) (2018 Imp- 4 Marks)
17. Journal and ledger are two major components of the double entry system of accounting. Write any 23. Akhil has the following transactions
three differences between these books . (2020 Imp - 3 Marks) a) Started busi9ness with cash Rs. 50,000
18. What does the following journal entry mean ? ` ` b) Purchased goods on credit Rs. 40,000
(a) Drawings A/c Dr. 2,000 c) Sold goods costing Rs. 27000 on credit for Rs. 30,000
To Cash A/c 2,000 d) Bank loan received Rs. 80,000
(b) Bank A/c Dr. 5,000 Prove the accounting equation. (A= L+C) (2019 Mar - 4 Marks)
To Babu’s A/c 5,000 24. Journalize the following transactions :
(c) Cash A/c Dr. 10,000 i. Insurance Paid by cheque Rs.2,000 ii. Goods costing Rs. 2,500 gave as charity
To Sales A/c 10,000 (2021 Mar- 3 Marks) iii. Withdrew cash from bank for office use Rs.1,500 iv. Goods returned to Nirmal Rs.6,000
19. Show the effect of following transaction on the accounting equation : (2019 Imp - 4 Marks)
(a) Business started with cash Rs.50,000 25. Complete the Journal Entry for the following :
(b) Purchased goods for cash Rs. 20,000 2020 April 1 Rachana A/c Dr 80,000
(c) Purchased furniture Rs.25,000 (2022 Mar -3 Marks) To …………. 80,000
20. From the following details, prepare the account of Royal Traders and balance it : (Sold goods on Credit
2021 January 5 Sold goods to Royal Stores Rs.10,000 to Rachana)
10 Received goods returned by Royal Stores Rs.1,000 ,, 2 …………. A/c. Dr. 1,000
17 Received cash from Royal stores Rs.5,000 (2022 Imp - 3 Marks) To Cash 1,000
21. Prepare Minerva Traders A/c from the following information for the month of December 2017 (Purchase stationery
2017 Dec 1 Purchased goods from Minerva Traders Rs. 50,000. for Cash)
Dec 5 Paid Rs. 40,000 to Minerva Traders. ,,5 Furniture A/c. Dr. 15,000
Dec 10 Sold goods to Minerva Traders Rs. 70,000. To …………. A/c. 15,000
Dec 15 Purchased Furniture from Minerva Traders Rs. 26,000 (furniture purchased
Dec 20 Purchased Machinery from Minerva Traders Rs. 75,000. and paid by cheque)
Dec 25 Paid Rs. 1,00,000 to Minerva Traders. (2018 Mar- 4 Marks) ,,7 …………. A/c. Dr. 7,000
22. Give narration for the following journal entry To Cash 7,000
a) Drawings A/c Dr 5,000 (Cash withdrawn for
To Purchases A/c 5,000 ( …………………………………..) personal use)
b) Stock in Trade A/c Dr 10,000 (2021 Imp - 4 Marks)
9 10
26. Prove the accounting equation : (e) Paid salary Rs.5,000 (2022 Imp - 5 Marks)
(a) Started business with cash Rs.20,000 30. Prepare a journal for the following transactions :
(b) Purchased goods for cash Rs.8,000 01-01-2021 Business started with cash Rs. 1,00,000
(c) Sold goods to Bhanu on credit costing Rs.5,000 for Rs.8,000 (2023 Mar- 4 Marks) 03-01-2021 Deposited into bank Rs. 50,000
27. Prepare accounting equation on the basis of the following : 05-01-2021 Purchased goods Rs. 20,000
(a) Started business with cash Rs.2,00,000 08-01-2021 Wages paid Rs. 2,000
(b) Purchased goods from Sonu Rs.10,000 10-01-2021 Commission received Rs. 5,000
(c) Sold goods to Afsal (costing Rs.6,000) for cash Rs.8,000 15-01-2021 Furniture purchased Rs. 10,000
(d) Rent paid Rs.5,000 (2023 Imp- 4 Marks) 20-01-2021 Withdrew cash from bank of private use Rs. 4,000
28. Fill in the blanks in the following journal : 30-01-2021 Sold goods for cash Rs. 40,000 (2021 Mar - 8 Marks)
JOURNAL 31. Journalise the following transactions in the books of Minta Fashions for the month of May, 2020.
Date Particulars L/F Amount Amount 2020 May1 Commenced business with cash Rs.2,00,000
2022 Mar-1 Purchases A/c Dr. 10,000 " 1 Cash deposited into bank Rs.1,50,000
To ………….. A/c 10,000 " 8 Purchased machinery Rs.23,500
(Purchased goods from Hari) " 11 Purchased goods from Star Traders Rs.34,000
“ Mar-5 ………….. A/c Dr. ,, 16 Goods returned to Star Traders Rs.1,250
To Purchases A/c 3,000 ,, 28 Cash sales Rs.21,000
(Took goods for personal use) 3,000 ,, 31 Salary paid Rs.12,000
“ Mar-10 Furniture A/c Dr. 6,000 ,, 31 Rent paid by cheque Rs. 5,000 (2021 Imp- 8 Marks)
To Bank A/c 6,000
(…………………………) CHAPTER 4
“ Mar-15 Binu A/c Dr. 4,000
Recording of Transaction -II
To ………….. A/c 4,000
1. Ramesh, a dealer of Television, sold old furniture to Rafeeque for Rs. 3,000 on credit. Identify the day
(Goods returned to Binu)
book to record this transaction.
“ Mar-20 Cash A/c Dr. 5,000
a) Purchase day book b) Journal proper c) Sales day book d) Cash book
To Sabu A/c 5,000
(2018 Mar-1 Mark)
(…………………………)
2. Computer purchased from Mr. X on credit is recorded in the ....
(2022 Mar- 5 Marks)
a) Purchase book b) Journal proper c) Cash book d) Sales book (2018 Imp-1 Mark)
29. Prepare accounting equation on the basis of the following :
3. Which one of the following is not a contra transaction in Two column cash book?
(a) Anil started business with cash Rs.1,00,000
a) Cash deposited in to bank b) Opened a new account with bank c) Cash withdrawn from bank for
(b) Purchased goods on credit Rs. 20,000
domestic purpose d) Cash withdrawn from bank for office use ( 2019 Mar-1 Mark)
(c) Sold goods costing Rs.8,000 to Udayan for Rs.12,000
4 . Machinery purchased from Sheeba Industries Ltd on credit is recorded in
(d) Received commission Rs.6,000
11 12
(a) Purchases day book (b) Purchases ledger (c) Journal proper (d) Cash book (2019 Imp-1 Mark) Less trade discount 8%
5. Credit sales of goods are recorded in ……….. day book. ( 2019 Imp- 3 Marks)
(a) Cash book (b) Petty Cash book (c) Sales book (d) Journal proper (2021M ar-1 Mark) 17. Enter the following transactions in sales day book of M/s Baby Stores :
6 . Sold goods on credit to Archana is recorded in 2021 Jan – 1 Sold to Rahul Traders (invoice no. 1001)
(a) Cash book (b) Purchases book (c) Sales book (d) Journal proper (2021 Imp-1 Mark) 50 Registers @ Rs. 50 each
7. Purchased machinery from Rajesh on credit will be recorded in ________. 100 Note books @ Rs. 30 each
(a) Purchases Book (b) Purchases returns Book (c) Journal Proper(d) Cash Book (2022 Mar-1 Mark) Trade discount 10%.
8. Identify the source document for recording transactions in the Sales returns book. Jan 5 Sold to Global Stationeries (invoice no. 1002)
(a) Invoice (b) Debit note (c) Credit note (d) Pay roll ( 2022 Imp- 1 Mark) 50 Color Books @ Rs.30 each
9. Assets sold on credit are entered in _______ . 200 Files @ Rs. 10 each (2022 Mar-3 Marks)
(a) Cash book (b) Purchase book (c) Sales book (d) Journal proper (2023 Mar-1 Mark) 18. Write the name of special journals where the following transactions are recorded :
10. Sales Journal records _______. (a) Purchased machinery for cash Rs.10,000
(a) Cash Sales (b) Credit Sales (c) Sales Returns (d) Purchase Returns ( 2023 Imp- 1 Mark) (b) Bought goods from KV Stores Rs. 3,000
11 . Cash book is both a Journal and ledger. Justify your views (2018 Imp – 2Marks) (c) Returned goods to Arul Jyothi Traders Rs. 1,000
12 . Name any four special journals used in large business firm. (2020 Mar-2 Marks) (d) Bought Furniture from Alankar Traders Rs. 5,000
13. Write a short note on : (e) Sold goods to Pratheesh for cash Rs.2,000
(a) Contra Entry (b) Debit Note (2021 Mar -2 Marks) (f) Paid salary Rs.4,000 ( 2022 Imp-3 Marks)
14. Write two examples for ‘source Documents’ (2021 Imp -2 Marks) 19. Enter the following transactions in Purchase journal of July, 2022.
15. Explain ‘Sales day book’. Write an example for transaction recorded in sales day book. 2022 July 01 Purchased from Surya Traders as per invoice No. 1201
(2021 Imp-2 Marks) 20 Boys watches @ Rs.180 each 30 Kids sunglasses @ Rs.240 each
16. Prepare suitable day book from the following information : Less 10% trade discount
Date Details 2022 July 12 Purchased from Maya Agencies invoice No. 4843
Sold goods on credit to Krishna Store as per invoice no.401 15 Ladies Watches @ Rs. 200 10 Stop watches @ 120 Less 5% trade discount
2018 Jan 1 40 T-shirts @ Rs.500 each (2023 Mar-3 Marks)
25 Jeans @ Rs. 750 each 20. Enter the following transactions in Purchase Book :
Less 10% trade discount 2022 Sept. 08 Purchased from Megha Electronics (Invoice No. 4142)
Jan. 8 Sold goods on credit on M/s. Danya Tex as per invoice no.403 20 Mini-size TV @ Rs. 2,500 per piece.
20 Churidars @ Rs. 400 each 15 Ear-phone @ Rs.500 per piece. Less Trade discount 10%
50 Kurtas @ Rs. 300 each Sept. 10 Purchased from Soorya Electronics (Invoice No. 435)
Less trade discount 5% 15 Speakers @ Rs.600 per piece. Less Trade discount 5%
Jan. 20 Sold goods on credit to Salu Textile Mart as per invoice no. 404 Sept. 18 Purchased from Neema Electronics for cash Rs.5,000 (Invoice No. 620) ( 2023 Imp-3 Marks)
75 Sarees @ Rs. 700 each 21 .Record the transactions in a double column cash book following
30 Pardas @ Rs. 900 each Oct 01 Cash in hand Rs.40,000
13 14
Oct 01 Cash at bank Rs.25,000 30 Telephone charges Rs.28 (2019 Mar – 5 Marks)
Oct 02 Purchased goods Rs.20,000 25. Prepare a petty cash book Under Imprest System
Oct 04 Rent paid by cheque Rs.4,000 Jan. 1st Cash received from main cashier Rs.2,000
Oct 05 Cash deposited into bank Rs.10,000 2nd Photocopy Rs.35
Oct 10 Purchased machinery by cheque Rs.15,000 3rd Auto charges Rs. 60
Oct 12 Sold goods and the customer deposited Rs.12,000 the amount in to bank 5th Ink, pen, pencil Rs.70
Oct 22 Cash withdrawn for office use Rs.7,000 6th Bus fare Rs. 85
Oct 31 Paid salary Rs.6,000 (2018 Imp - 4 Marks) 8th Postage stamp Rs.160
22. Identify the transactions from the given Cash Book. 10th Cartage Rs. 40
Date Particulars JF Amount Date Particulars JF Amount 11th Courier charges Rs.80
01-01-21 Balance b/d 40,000 02-01-21 Purchases a/c 30,000 15th Refreshment Rs.180
20-01-21 Rakesh 50,000 31-01-21 Salary 10,000 20th Telegram charges Rs.40
(2021 Mar-4 Marks) 25th Taxi fare Rs.120 (2019 Imp-5 Marks)
23 . Enter the following transactions in the purchase book of M/s. Venus Shoe Mart. 26. From the following transaction prepare sales book.
2020 May 1 Purchased from Jasmine Traders as per invoice No. 624 Jan. 1, 2021 Sold to Babu
30 Umbrella @ Rs. 230 each 7 tables @ Rs. 3,000 per table
20 Leather bags @ Rs.560 each Jan. 8, 2021 Sold Mini
30 School bags @ Rs. 200 each 5 wooden chair @ Rs. 4,000 per chair
" 15 Purchased from Hari Traders as per invoice No. 831 Jan. 10, 2021 Sold Sreejith
10 Pairs of leather shoes @ Rs. 800 per pair 4 Dining table @ Rs. 7,000 per table
Trade discount 10% ( 2021 Imp -4 Marks) Jan. 20, 2021 Sold Salini
8 Computer table @ Rs.2,500 per table
24.From the following particulars prepare an analytical petty cash book for the month of November 2018, Jan. 30, 2021 Sold Ramu
under the imprest system 2 Dressing table @ Rs.4,000 per table (2021 Mar-5 Marks)
2018 November 1 Balance in hand Rs.87 27. From the following particulars prepare a Petty Cash Book.
1 Cheque received from main cashier Rs.413 2021 April 01 Imprest amount received from Cashier Rs.1,500
3 Stamp purchased Rs.60 " 02 Printing charges Rs.300
6 Stationery Rs.44 " 03 Postage Stamp Rs.40
8 Printing charges Rs.62 " 07 Travelling expenses Rs.150
10 Cartage Rs.50 " 12 Courier charges Rs.120
14 Travelling expense Rs.64 " 14 Taxi fare Rs.160
15 Repairs Rs.74 " 20 Stationery Rs.230
26 Paper and pencil Rs.38 " 25 Telephone charges Rs.180 (2021 Imp- 5 Marks)
15 16
28. Prepare a double column cash book from the following transactions for the month of January 2018. ii) Prepare double column cash book from the given information:
January 2018 1 Cash in hand Rs.16,000 2018 Jan. 1 Cash in hand Rs.60,000
Bank overdraft Rs.6,000 Cash at bank Rs.40,000
4 Salaries paid Rs.2,000 Jan. 2 Cash received from Mohan Rs.30,000
5 Sold goods Rs.8,000 Jan. 5 Purchased goods for cash Rs.15,000
7 Purchased goods by cheque Rs.4,000 Jan. 6 Electricity charges paid through cheque Rs. 2,000
8 Purchased machinery Rs.5,000 Jan. 8 Cash deposited into bank Rs. 25,000
12 Deposited into bank Rs.8,000 Jan. 10 Cash sales Rs. 40,000
15 Interest charged by bank Overdraft Rs. 500 Jan. 15 Issued cheque to Babu Rs. 8,000
18 Commission received Rs.3,000 Jan.20 Bank charges debited by bank Rs. 250
20 Withdrew cash for personal use Rs.2,000 Jan 31 Interest credited by bank Rs. 500 (2019 Imp-8 Marks)
25 Suresh, a customer directly bank account Rs.6,000 31. Mr. Sharma, the petty cashier of Megha Traders received Rs.1,500 on June 01, 2018 from the head
30 Withdrew cash from bank Rs.2,000 (2018 Mar- 6 Marks) cashier. For the month, details of petty expenses are listed as under :
29. Consider the following transactions and record them into appropriate special journals for the month Date Particulars Amount(Rs)
of January 2018 2018 June 02 Postal stamps 35
2018 January 1 Sold goods for cash Rs. 48000 03 Auto charge 50
7 purchased goods from M/s Sivaram Electricals (invoice no. 2345). 05 Refreshments 85
20 Fans @ Rs. 1,200 per piece less trade discount 10% 06 Auto fare 60
10 Purchased goods for cash Rs. 13,800 07 Telegram 42
11 Sold goods to M/s Parvathy Traders (Invoice No. 327) 08 Bus fare 35
4 Color TV @ Rs.14,000 per piece 08 Cartage 48
5 Computers @Rs. 28,000 per piece 11 Stationery 25
8 Table fans @ Rs. 1,550 per piece. 12 Paper, Pen, Pencil 85
15 Purchased goods from M/s Ragam Agencies (Invoice No. 046) 13 Refreshments 40
15 Color TV @ Rs. 12,800 per piece 18 Photostat charges 38
8 Computers @ Rs. 26,000 per piece 21 Courier services 85
20 Cash sales Rs. 3,400 27 Postage stamps 45
28 Sold goods to M/s Alpha Electronics (Invoice No. 328) 30 Taxi fare to Manager 100
2 Computers @ Rs. 30,000 per piece less trade discount 5% Prepare a Petty Cash Book (2020 Mar -8 Marks)
31 Purchased goods from M/s Aruna Ltd. (Invoice No. 864) 32 .Prepare a cash book with bank column from the given transaction of a trader for the month of
12 Washing machines @ Rs. 20,000 per piece less trade discount 10 % November 2019
(2019 Mar-8 Marks) 2019 November 1 Cash in hand Rs.8,000
30. i) Cash book is both journal and ledger accounts. Do you agree? State your view in three points. 1 Cash at bank Rs.34,000
17 18
3 Cash sales Rs.12,000 December 01 Cash in hand Rs,20,000

5 Received cheque from Rahul and paid into bank Rs.15,000 Cash at bank Rs.5,000
8 Paid in to bank Rs.10,000 03 Purchased goods for cash Rs. 3,000
10 Cheque issued to Mohan Rs.5,000 05 Received cheque from Hari and deposited the same in bank Rs. 7,000
14 Cash withdrawn from bank for personal use Rs.8,000 08 Sold goods for cash Rs. 4,000
19 Paid for stationery Rs.500 12 Purchased goods and paid by cheque Rs. 2,000
20 Rent paid by cheque Rs.2,000 15 Paid establishment expenses through bank Rs. 1,000
24 Cash withdrawn from bank for office use Rs.4,000 18 Cash sales Rs. 6,000
28 Purchased goods by issuing cheque of Rs.6,000 20 Deposited into bank Rs. 7,000
29 Insurance premium paid by cheque Rs.1,000 24 Paid trade expenses Rs. 3,000
30 Cheque of Rs.15,000 received from Rahul was returned Dishonored by bank 27 Dividend collected by bank Rs. 2,000
(2020 Imp – 8 Marks) 29 Paid Rent Rs. 4,000
33 . Prepare a Petty Cash Book from the following. 30 Withdrew cash for personal use Rs. 3,000
2020 March, 1 Received Petty Cash Rs.2,000 31 Salary paid Rs.8,000 (2022 Mar - 8 Marks)
2 Paid Cartage Rs.50 36.Record the following transactions in a double column cash book
4 Paid for Postage Rs.140 2021 Jan 1. Cash in hand Rs. 90,000
5 Paid for Taxi Fare Rs.100 Cash at bank Rs. 60,000
10 Paid for Refreshment Rs.70 5. Deposited in bank Rs.40,000
15 Purchased Stationery Rs.80 10. Received cash from Rinu Rs. 10,000
20 Paid for Telegraph Rs.40 12. Bought goods for cash Rs. 5,000
25 Paid for Repairs Rs.300 (2021 Mar-8 Marks ) 15. Bought furniture and paid by cheque Rs.12,000
34 .From the following information prepare a cash book with bank column of Mr. Harikrishnan for the 18. Paid Sabu by cheque Rs. 2,000
month of April 2021. 20. Drew from bank for office use Rs. 10,000
2021 April 1 Cash in hand Rs.22,500 25. Paid salary by cheque Rs. 3,000 (2022 Imp-8 Marks)
Cash at bank Rs.74,300 37. Prepare Double Column Cash Book.
" 2 Cash sales Rs.14,300 2022 ` Jan. 1 Opening balance : Cash 8,000
" 5 Cash withdrawn from bank Rs.10,000 Bank 6,200
" 6 Purchased goods and paid by cheque Rs.17,800 Jan. 4 Received cash from Rajesh 4,000
" 10 Paid salary by cheque Rs 14,000 Jan. 5 Cash deposited into bank 7,000
" 18 Stationery purchased Rs 1,200 Jan. 6 Paid salary by cheque 8,000
" 27 Interest received in cash Rs 800 Jan. 8 Cheque issued to Aman 2,000
" 30 Withdrawn from bank for personal use Rs 2,500 (2021 Imp-8 Marks) Jan. 10 Withdrew cash from bank 1,200
35. Prepare double column cash book from the following transactions for the month of December 2021: Jan. 14 Rent paid 1,800
19 20
Jan. 18 Cheque received from Nadeer paid into bank 5,400 (c) Debit Balance in the Cash Book
Jan. 24 Bank charges 200 (d) Both (b) and (c) (2023 Imp -1 Mark)
Jan. 31 Withdrew from bank for personal use 3,000 (2023 Mar - 8 Marks) 7. Give any two situations which increases the pass book balance while preparing a bank reconciliation
38. (a) What is Petty Cash Book ? Write any two advantages of Petty Cash Book. (3) statement (2020 Mar-2 Marks)
(b) Prepare a Double Column Cash Book for the month of June 2022. 8. List out any two items which will increase the amount of overdraft as per pass book.
2022 June 01 Opening Balance : Cash in hand 50,000 (2020 Imp- 2 Marks)
Cash at bank 30,000 9 .Briefly explain the need for the preparation of Bank Reconciliation statement. (2022 Mar-2 Marks)
03 Purchased Furniture for cash 6,000 10. Write a note on Bank Reconciliation Statement. (2022 Imp -2 Marks)
05 Purchased goods from Rahul for cash 3,000 11. Explain any two reasons for the disagreement between Cash book balance and Pass book balance.
08 Received commission 4,000 (2023 Mar-2 Marks)
10 Sold goods to Amit on credit 2,000 12. State any four causes of difference between bank balance as per Cash Book and Bank Pass book.
12 Cash deposited into bank 10,000 (2023 Imp -2 Marks)
24 Drew from bank for office use 5,000 13. From the following particulars of Sree Agencies prepare a Bank Reconciliation Statement as on
30 Paid rent by cheque 6,000 (5) (2023 Imp-8 Marks) March 3lst 2018.
1. Balance as Per cash book Rs.80,000
CHAPTER 5 2. Cheques for Rs.10,000 is deposited in the bank, but not yet collected by the bank
3. Rs. 500 bank charges debited to Sree Agencies account which is not recorded in cash book.
Bank Reconciliation Statement
4. A cheque for Rs.15,000 is issued by Sree Agencies not presented for payment. (2019 Imp-4 Marks)
1. Bank Reconciliation statement is prepared by
14 . Prepare a Bank Reconciliation Statement as on 31st December, 2017.
a) Bank b) Depositor C) Creditor d) Debtor (2018 Mar-1Mark)
a) Balance as per cash book Rs.20,000
2. Find the odd one.
b) Cheques deposited and cleared ,but omitted to record in cash book Rs.4,000
(a) Direct payment by bank on behalf of account holder (b) Bank charges debited by bank
c) Cheque issued but not presented for payment Rs.6,000
(c) Interest allowed by bank (d) Dishonor of a bill discounted with the bank (2019 Imp - 1 Mark)
d) Bank charges debited in pass book Rs.800
3 . Overdraft means ______ balance of Cash book.
e) Cheque deposited but not collected Rs.7,000
(a) Debit (b) Credit (c) Both (a) and (b) (d) None of these (2021 Mar- 1 Mark)
f) Interest credited in passbook Rs.500 (2018 Mar -5 Marks)
4 . The reason for the difference in bank balance as per cash book and pass book is revealed by
15. The cash book shows a debit balance of Rs. 10,800 .On comparing the cash book with passbook the
(a) Trial Balance (b) Balance Sheet (c) Bank Reconciliation Statement (d) Fund Flow Statement
following discrepancies were found. Help them to reconcile the same.
(2021 Imp -1 Mark)
a. Cheque deposited in bank, but not credited Rs. 2,000
5. Bank reconciliation statement is prepared by
b. Cheque issued, but not yet presented for payment Rs. 15,000
(a) Bank (b) Creditors (c) Account holder in a bank (d) Debtors (2023 Mar- 1 Mark)
c. Insurance premium paid by the bank Rs. 800
6. Favourable bank balance means
d. Bank interest credited by the bank Rs. 450
(a) Credit Balance in the Cash Book
e. Bank charges Rs. 150
(b) Credit Balance in Passbook
f. Directly deposited by a customer Rs. 3,500 (2018 Imp – 5 Marks)
21 22
16. On March 31st, 2017 the cash book of Mr. Sreejith, a trader showed a deposit balance of Rs. 48,400. (c) Insurance premium paid by the bank Rs.1,500
His passbook balance as on that date was Rs. 51,880. On comparing the cash book with pass book, the (d) Direct deposit by a customer to the bank Rs.5,000 (2022 Mar-5 Marks)
following difference were observed 22. Prepare a bank reconciliation statement as on 31-03 -2021.
a) Direct payment by the customer to the bank amounted to Rs. 7,800 (a) Debit balance as per cash book on 31-3-2021 Rs.10,000
b) Insurance premium paid by bank Rs. 1,200 (b) Cheque issued, but not presented to the bank for payment Rs.8,000
c) Bank charges debited in pass book Rs. 120 (c) Direct deposit made by a customer to the bank Rs.7,000
d) Cheque issued to a customer, but not presented for payment Rs. 6,000 (d) Bank charge found debited only in the passbook Rs. 800
e) Four cheques paid into bank for collection, but not collected amounted to Rs. 9,000 (e) Cheque deposited into the bank, but not collected till date Rs. 6,000 (2022 Imp-5 Marks)
Prepare a bank reconciliation statement as on 31st March 2017. (2019 Mar – 5 Marks) 23. Prepare a bank reconciliation statement as on 31 March 2022 :
17. Mr. Prakash the Chief Accountant of a business identified some differences in their cash book balance (i) Balance as per Cash Book Rs.9,600.
and bank passbook balance as on June 30, 2017. You are required to prepare a bank reconciliation (ii) Cheque issued but not presented for payment Rs.5,400
statement to reconcile the balances. (iii) Cheque deposited into bank but not collected Rs.6,000
(a) Balance as per cash book Rs.64,000. (iv) Bank charges debited by bank Rs.450
(b) Cheque issued but not presented for payment Rs.5,000. (v) Direct payment by a customer Rs.1,000 (2023 Mar-5 Marks)
(c) Bank charges debited by bank Rs.500. 24. From the following particulars, prepare a Bank Reconciliation statement as on 31st December 2022 :
(d) A cheque of Rs.10,000 was deposited but not collected by bank. (a) Overdraft as per Cash Book Rs.12,500.
(e) A customer directly deposited Rs.3,000 in the bank. (b) Cheque issued but not presented for payment Rs.6,000
(f) Bank directly collected the dividend and credited to bank account Rs. 4,000. (2020 Mar - 5 Marks) (c) Cheque deposited into bank but not collected Rs.4,000
18. Prepare bank reconciliation statement as on 31-12-2019 from the given details (d) Insurance premium paid by bank Rs.1,500
(a) Balance as per pass book Rs.28,000 (e) Bank charges debited in Pass Book Rs.200 (2023 Imp-5 Marks)
(b) Cheque issued ,but not presented in the bank for payment Rs.1,200
(c) Cheque paid into bank, but not yet collected Rs.3,800 CHAPTER 6
(d) Interest credited in the pass book only Rs.800
Trial Balance and Rectification of Errors
(e) Bank charges debited in the pass book only Rs.200 (2020 Imp-5 Marks)
19. What are the various reasons for the difference between balance as per Cash Book and Pass Book ?
1. Rent paid Rs. 4,500 was entered in cash book as Rs, 400. This is an error of
(2021 Mar-5 Marks)
a) Principle b) Omission c) Compensating error d) Commission (2018 Mar-1 Mark)
20. State any five causes of difference between bank balance as per cash book and bank pass book.
2.The statement prepared to test the arithmetical accuracy of the books of accounts.
(2021 Imp – 5 Marks)
a) Balance Sheet b) Trial Balance c) P/L Account d) Journal (2019 Mar – 1 Mark)
21.The cash book of Prasad Associates shows a bank balance of Rs.10,000 as on 31/03/2022. On
3.A Trial balance is prepared to
comparing the cash book with passbook the following discrepancies were noted. Prepare Bank
(a) Ascertain the arithmetical accuracy of Ledger Accounts (b) Locating Errors
Reconciliation statement as on 31/03/2022.
(c) Help in the preparation of Final Accounts (d) All of the above (2021 Mar – 1 Mark)
(a) Cheque deposited in bank, but not credited Rs.5,000
4.Which among the following is not an objective of preparing Trial Balance ?
(b) Cheque issued, but not yet presented for payment Rs.2,500
23 24
(a) To check the arithmetical accuracy of Ledger accounts. (b) To know the financial position of the (a) Payment to supplier of goods for Rs. 30,000 is wrongly posted to the debit of their account as
business. (c) To help in the preparation of financial statements. (d) To help in locating errors. Rs.3,000.
(2021 Imp – 1 Mark) (b) Credit sales to Majeed Rs.25,000, not entered in the sales book.
5. Which of the following is an error of commission ? (c) Purchase of machinery for Rs. 50,000 is debited to purchases account (2020 Mar – 3 Marks)
(a) Wages paid for installation of machinery debited to wages account
(b) Purchased goods for cash not recorded in cash book 11. Explain the basic objectives of preparing Trial balance. (2020 Imp – 3 Marks)
(c) Wrong balancing of Furniture account 12. Rectify the following errors :
(d) Sale of fixed assets credited to sales account (2022 Mar – 1 Mark) (a) Wages paid Rs. 3,000 for the erection of machinery debited to wages account.
6.Name the account which is temporarily opened to agree the trial balance artificially. (b) Rent paid Rs.2000 was fully omitted to record.
(a) Profit and loss account (b) Trading account (c) Suspense account (d) Temporary account (c) Salary paid to Raju Rs.4,000 debited to his personal account. (2023 Mar – 3 Marks)
(2022 Imp - 1 Mark) 13. Prepare a Trial Balance from the following balances :
7. These type of errors affect the agreement of Trial Balance. Investments 85,000
(a) Error of complete omission (b) Error of principle Bad debts 5,000
(c) Compensating errors (d) Error of partial omission (2023 Mar – 1 Mark) Capital 60,000
8. Trial Balance is _________ Debtors 20,000
(a) An account (b) A principal book (c) A subsidiary book (d) A statemen (2023 Imp - 1 Mark) Sales 52,000
7. Rectify the following errors Return inwards 2,000 (2023 Imp – 3 Marks)
a) Sold goods for Rs. 7,000 to Sangi & Co. entered in Purchase day book. 14. Pass rectification entries :
b) Rent paid Rs. 4,000 debited to Landlord account. (2018 Mar – 2 Marks) (a) Purchase book undercast by Rs.1,800.
9. A Trial Balance is given below Rewrite it, if there is any mistake. Trial Balance as on 31st March, 2017 (b) Rent paid to landlord Rs.4,000 was debited to landlord’s account.
Account Debit Credit (c) Wages paid for the installation of Machinery Rs.3,000 was debited to wages account.
Capital 2,00,000 (d) Cash received from Salini Rs.2,000 was posted to Sajini’s account.
Purchases 50,000 (e) Credit purchases from Abu Rs.8,500 were not recorded. (2023 Imp – 5 Marks)
Sales Return 4,000 15. Rectify the following errors
Sales 1,28,000 a) Purchase day book overcast by Rs. 500
Purchase Return 3,000 b) Salary paid to Mr. Kumar is debited to his personal account Rs. 26,000
Machinery 1,50,000 c) Purchase of goods from Geetha Rs. 25,800 is omitted to record in day book
Building 1,00,000 d) Sale of office furniture for Rs. 4,000 posted to sales account (2019 Mar – 4 M arks)
Cash 27,000 16. Give rectification entries for the following transactions :
2,53,000 4,09,000 (a) Salary paid to Ramu Rs. 5,000 was debited to his personal account.
(2018 Mar – 3 Marks) (b) Credit sales to Sajan Rs.10,000 was recorded as Rs. 1,000 in sales book.
10. Mr. Anand an accountant of a business identified the following errors in their book of accounts. Name (c) Credit purchase from Zakariya Rs. 20,000 were not recorded.
the type of error occurred. (d) Cash received from Sakeer Rs. 4,000 was wrongly posted to Shaheer’s account
25 26
(2020 Mar - 4 Marks) Investment 50,000

17.Pass rectification entries for the following errors found in the account book of a trader after Stock in Trade 30,000
preparation of trial balance. Furniture 20,000
(a) Sale of old furniture on credit for Rs. 4,000 was recorded in the sales book Rent received 5,000
(b) Credit purchase of goods for Rs. 8,000 from M/s Gopal Bros was posted to credit of M/s Gopi traders Bank Loan 45,000
account (2021 Mar - 5 Marks)
(c) Wages paid for the construction of a new building was debited to wages account Rs.12,000 21. From the following ledger balances, prepare the Trial Balance of Mango Traders as on 31st March,
(d) Sales return book was overcast Rs.100 (2020 Imp – 4 Marks) 2020.
18. Help Ramu a friend of you to prepare a Trial balance with the following items
Particulars Amount Particulars Amount
Loan given to Mohan 75,000 Purchases 60,000
Bills Receivable 25,000 Sales Returns 3,000
Sales 2,00,000 Sundry Debtors 24,500
Preliminary expense 20,000 Sales 89,400
Drawings 40,000 Capital 1,00,000
Investment 50,000 Insurance Premium 5,600
Advance from Rajas 40,000 Sundry Creditors 14,700
Bank overdraft 10,000 Cash in hand 19,000
Buildings 1,40,000 Machinery 75,000
(2018 Imp – 5 Marks) Furniture 17,000
19. Rectify the following errors : (2021 Imp – 5 Marks)
i. Salary paid to Mr. Suresh is debited to his personal a/c Rs.8,000 22.Prepare a Trial Balance from the following ledger balances:
ii. Purchase book is overcast by Rs.5,000 Account Amount
iii. Goods sold to Mr. Sojan on credit Rs.500 have been wrongly passed through purchase book. Cash at bank 45,000
iv. Amount received Rs.10,000 from Shalini was wrongly recorded as Rs.1,000 Sales 60,000
v.Repairs on machinery Rs.4000 debited to machinery a/c (2019 Imp – 5 Marks) Bills Receivable 15,000
20. Prepare Trial Balance from the given Ledger balances. Bank Loan 20,000
Particulars Amount Commission paid 2,000
Cash in hand 25,000 Purchases return 5,000
Purchases 80,000 Machinery 45,000
Capital 60,000 Purchases 40,000
Machinery 35,000 Creditors 12,000
Sales 70,000 Capital 50,000
27 28
(2022 Mar – 5 Marks) CHAPTER 7

23. A Trial Balance is given below. Rewrite it, if there is any mistake.
Depreciation, Provisions and Reserves
1………….. Reserve is not shown in the Balance Sheet.
Account Debit Credit
a) Secret b) General c) Revenue d) Capital (2018Mar-1 Mark)
Sundry Creditors 19,800
2. Which term refers to writing off the cost of intangible assets like Patents, Copyright, Trade Marks etc.?
Sundry Debtors 50,000
a) Amortisation b) Depletion c) Obsolescence d) None of these (2019Mar-1 Mark)
Advertising 1,300
3. Writing off the cost of intangible assets like patent, copy right etc. is known as _____
Commission received 5,500
(a) Depreciation (b) Depletion (c) Amortization (d) Obsolescence (2020 Mar – 1 Mark)
Salaries 5,000
4. The term ‘amortisation’ is related with the decrease in the value of
Discount allowed 500
a. Fixed asset b. Current asset c. Wasting asset d. Intangible asset (2020 Imp – 1 Mark)
Capital 73,100
5. Depreciation is charged on
Cash in hand 10,000
(a) Current Assets (b) Fixed Assets (c) Current and Fixed Assets (d) None of these
Purchases 75,000
(2021Mar & 2021 Imp-1 Mark)
Sales 1,00,000
6. The amount of depreciation charged under Diminishing balance method ________.
Return outwards 1,000
(a) increases every year (b) remains constant every year (c) equals to its scrap value (d) decreases
Bad debts 500
every year (2022 Mar – 1 Mark)
Carriage outwards 600
7. Decrease in the value of intangible asset is known as
Wages 6,500
(a) Depletion (b) Fluctuation (c) Appreciation (d) Amortization (2022 Imp-1 Mark)
Furniture 50,000
8. _______ is the term used to show the decrease in the value of natural resources like mines, quarries etc.
(a) Depreciation (b) Amortisation (c) Depletion (d) Obsolescence (2023 Mar – 1 Mark)
24. Prepare a Trial Balance from the following :
9. Writing-off the cost of intangible assets like Goodwill, Patents, Copyright etc. is _______.
Machinery Rs.29,700
(a) Depreciation (b) Depletion (c) Amortisation (d) Fluctuation (2023 Imp-1 Mark)
Debtors Rs.21,600
10. Point out any two differences between 'Provision' and'Reserve'. (2018 Imp -2 Marks)
Creditors Rs.62,800
11. State any two differences between reserves and provision (2023 Mar – 2
Wages Rs.15,000
Marks)
Purchase Rs.59,900
12. Give two examples of ‘Revenue Reserve’ (2023 Imp -2 Marks)
Cash Rs.4,500
13. Write any three needs for charging depreciation on assets. (2021 Mar - 3 Marks)
Opening stock Rs.6,000
14. Explain the term ‘depreciation’. State any two methods of providing depreciation. (2021 Imp-3Marks)
Bank overdraft Rs.2,800
15.Chandra Traders purchased a Motor Van on 01-01-2013 for Rs.6,00,000. The firm
Sales Rs.73,500
writes-off depreciation at the rate of 10% p.a. on written down value method. Draw up Motor Van
Rent & Taxes Rs.2,400 (2023 Mar – 5 Marks)
account for the first three Years (2018 Imp – 4 Marks)
29 30
16. A company purchased a machinery for Rs. 50,000 on 30th June 2015. Depreciation is charged CHAPTER 8
at 10% under straight line method and accounts are closed on 31st December every year.
Financial Statements – I
a) Show the machinery account up to 31st December 2016.
1. While marshalling the balance sheet in the order of liquidity assets comes last is?
b) Distinguish between straight line method and written down value method. Write two points
a) Debtors b) Cash c) Furniture d) Bank (2019 Imp – 1 Mark)
(2019 Mar-4 Marks)
2. _____ is an example of direct expense.
17 M/s. Radhika Textile Mills purchased a machinery on 1st April, 2015 for Rs.2,00,000 and spent
(a) Salary (b) Wages (c) Rent (d) Office expense (2020 Mar – 1 Mark)
Rs.30,000 for its installation. Another machine was purchased on January 1st 2017 for Rs.30,000.
3. In the Balance sheet of a sole proprietorship concern the assets and liabilities are usually arranged in
Depreciation is charged at the rate of 20% on written down value method. Show machinery account up to
(a) Permanence order (b) Liquidity order (c ) Trial balance order (d) Convenience order
31st March,2018. (2019 Imp – 4 Marks)
(2020 Imp – 1 Mark)
18. Briefly explain the need for providing depreciation. (any four) (2022 Mar – 4 Marks)
4. The value of closing stock given in the Trial Balance will be shown on:
19. Point out any four differences between ‘Provision’ and ‘Reserve’. (2022 Imp – 4 Marks)
(a) the credit side of Trading account (b) the asset side of Balance Sheet
20. Seena Traders purchased a Machinery for Rs.1,00,000 and spent Rs.10,000 for the erection. The
(c) The credit side of Profit&Loss account (d) Both a and b (2021 Imp & 2022 Mar – 1 Mark)
Machinery is expected a life of 10 years and after it will get Rs.10,000 as scrap value. Depreciation is charged
5. Which of the following is not included in the Financial statements of a sole trading concern ?
under straight line method for first 2 years. (2023 Mar – 4 Marks)
(a) Trading A/c (b) Balance Sheet
21. Write any four differences between Straight Line Method and Written Down Value Method of calculating
(c) Cash Book (d) Profit and Loss A/c ( 2022 Mar – 1 Mark)
depreciation. (2023 Imp – 4 Marks)
6. Operating Profit =
22. On July 1, 2014 Elite Printers purchased a machinery for Rs.3,00,000 and spent Rs.10,000 for its
(a) Net Profit + Non-operating expenses + Non-operating incomes
installation. It was decided to provide depreciation @ 10% p.a. on straight line method. Prepare
(b)Net Profit+ Non-operating expenses - Non-operating incomes
machinery account for first 4 years. Assuming that books are closed on 31st December every year.
(c)Net Profit –Non-operating expenses +Non-operating incomes
(2020 Mar – 5 Marks)
(d) Gross Profit – Non-operating expenses + Non-operating incomes (2022 Imp-1 Mark)
23. Arun traders purchased a machinery by issuing a cheque of Rs.64,000 to the vendors on 1-10-2016.
7. If closing stock is given as an item in the trial balance, then it will be
They also incurred erection charges of Rs.6,000 for the machinery. The expected economic life of the
(a) Credited to Profit/Loss A/c (b) Credited to Trading A/c
machine is 5 years and estimated scrap value is Rs.10,000.
(c) Shown on the assets side of balance sheet (d) None of these ( 2023 Mar – 1 Mark)
(a) Calculate the amount annual of depreciation to be charged on the machinery
8. From the following balances taken from Kanth Traders for the year ending March 31st 2018, calculate
(b) Prepare a machinery account for the first three years under the straight line method. Assume that
the gross Profit.
accounts are closed on 31st March every year (2020 Imp – 5 Marks)
Closing stock Rs.1, 50,000
24. On 1st July, 2014 M/s. Golden store purchased a second hand plant for Rs. 85,000, spent Rs. 10,000
Net sales during the Year Rs. 4, 00,000
for its overhauling and Rs. 5,000 for installation, Another plant was purchased on 1st January,2016 for
Net purchase during the Year Rs. 1, 50,000
Rs.50,000. It was decided to charge depreciation at 10% on original cost. On July 1st 2016, the plant
st
Opening stock Rs.80,000
purchased on 1 JuIy, 2014 were sold for Rs. 75,000.Prepare a plant account up to 31stDecember, 2017.
Direct expense Rs.70,000 (2019 Imp – 2 Marks)
(2018 Mar-6 Marks)
9. Briefly explain ‘Balance Sheet’. (2021 Imp – 2 Marks)
10. Compute the amount of Gross profit for the year 2020-21 from following information:
31 32
Sales Rs.6,00,000 Carriage inwards – Rs.4,000 (2020 Mar-3 Marks)

Purchases Rs.3,50,000 15. Calculate the amount of cost of goods sold from the given details using appropriate formula .
Wages Rs.30,000 Purchase Rs. 86,000
Stock (April 01, 2020) Rs.50,000 Purchase Return Rs. 1,000
Stock (March 31, 2021) Rs.70,000 (2022 Mar – 2 Mark s) Opening stock Rs. 15,000
11.Calculate cost of goods sold and gross profit from the following data : Closing stock Rs. 10,000
Opening stock Rs.10,000 Carriage inward Rs. 3,000 (2020 Imp – 3 Marks)
Closing stock Rs.12,000 16. Calculate the cost of goods sold from the given information.
Purchases Rs.28,000 Opening Stock Rs.50,000
Wages Rs.5,000 Closing Stock Rs.70,000
Carriage inwards Rs.3,000 Purchases Rs.1,30,000
Sales Rs.50,000 (2022 Imp – 2 Marks) Direct expenses Rs.20,000 (2021 Mar – 3 Marks)
12.Calculate gross profit from the balances taken from the books of Usha for the year 17. From the following details of M/s. Mahima traders. Calculate cost of goods sold.
ending 31st March, 2017. Opening Stock – Rs.30,000
Opening stock Rs. 1,00,000 Purchases – Rs. 2,30,000
Sales during the year Rs. 15,00,000 Direct expenses – Rs.32,000
Net purchases during the year Rs. 9,00,000 Closing stock – Rs.50,000 ( 2021 Imp – 3 Marks)
Closing stock Rs.1,50,000 18.Compute the cost of goods sold and gross profit with the help of the following information.
Direct expenses Rs.80,000 (2018 Imp – 3 Marks) Purchases Rs. 3,00,000
13.Calculate the cost of goods sold from the following information Sales Rs. 4,00,000
Opening stock Rs.80,000 Purchase return Rs. 2,000
Closing stock Rs.1,30,000 Sales return Rs. 3,000
Purchases Rs.3,75,000 Wages Rs. 50,000
Sales Rs.6,00,000 Carriage inwards Rs. 10,000
Carriage inwards Rs.7,000 Salaries Rs. 25,000
Carriage outwards Rs. 4,000 Stock on 01-01-2017 Rs. 60,000
Wages Rs.12,000 (2019 Mar-3 Marks) Stock on 31-12-2017 Rs 80,000 (2018 Mar – 4 Marks)
19. Find the amount of sales from the given information.
14. Compute the cost of goods sold from the following information using suitable formula : Closing Stock Rs.15,000
Opening stock – Rs. 50,000 Opening Stock Rs. 2,500
Purchases – Rs.1,50,000 Purchases Rs. 13,000
Closing stock – Rs.40,000 Wages Rs. 2,000
Wages – Rs.80,000
33 34
Gross Profit Rs.20,000 (2021 Mar – 5 Marks) Furniture 40,000

20. Match the following Sundry Creditors 30,000
(a) Sales (1) Asset Bank Loan 20,000
(b) Carriage inwards (2) Indirect income Land and Building 80,000
(c) Rent received (3) Direct income Rent received 15,000
(d) Carriage outwards (4) Direct expense Salary 6,000
(e) Cash at bank (5) Indirect expense (2021 Imp – 5 Marks) Insurance 4,000
21.(a) Describe the concept “Marshalling of assets and liabilities”. Interest paid 3,000
(b) Arrange the following assets in the order of liquidity in a Balance Sheet: Stationery 2,000
Furniture, Cash at bank, Debtors, Cash in hand, Building, Closing stock ( 2022 Mar – 5 Marks) Rates and Taxes 5,000
22. What is meant by Grouping and Marshalling of assets and liabilities ? Show the ways in which a It is given that closing stock is valued at Rs.30,000 (2021 Mar- 8 Marks)
balance sheet can be marshalled with suitable examples. ( 2022 Imp – 5 Marks)
23. (a) What is grouping of assets and liabilities ? CHAPTER 9
(b) Arrange balance sheet items with imaginary details in the order of liquidity. ( 2023 Mar – 5 Marks)
Financial Statements – II
24. (a) What is Operating Profit ? How is it calculated ? (2)
1. Income Receivable is ……..
(b) Compute Cost of Goods sold from the following information :
(1) a) an asset (b) a liability (c) a profit (d) a loss (2018 Imp – 1 Mark)
Details
2. If the salary paid during an year is Rs.5,000 and outstanding salary at the end of the year is Rs.2,000,
Sales 2,00,000
then, the amount of salary to be debited to profit and loss account is :
Purchases 1,50,000
(a) 3,000 (b) 5,000 (c) 2,000 (d) 7,000 (2020 Mar – 1 Mark)
Wages 10,000 3. Outstanding salary at the end of an accounting period is
Stock (Opening) 30,000 (a) An asset (b) A liability (c) An expense (d) a revenue (2020 Imp-1 Mark)
Stock (Closing) 40,000 4. Prepaid insurance is a/an _______ .
Carriage 20,000 (3) ( 2023 Imp – 5 Marks) (a) Asset (b) Liability (c) Expense (d) Revenue (2023 Mar – 1 Mark)
25. Prepare Trading and Profit and Loss A/c and Balance Sheet from the given details. 5. The insurance premium paid is Rs.1,000 and pre-paid insurance amounted to Rs.300. What is the
Particulars Amount amount of insurance premium to be shown in Profit and Loss account ?
Opening Stock 20,000 (a) Rs 1,300 (b) Rs 1,000 (c) Rs 300 (d) Rs 700 (2023 Imp – 1 Mark)
Purchases 60,000 6. Insurance premium of Rs.6,000 was paid for a period of one year on 1st Apri1, 2015.
Sales 1,20,000 How the transaction will be treated while preparing financial statements for the year
Carriage Inwards 5,000 ending 31st December 2015 (2018 Mar – 2 Marks)
Wages 10,000 7.Write the treatment of returns inwards and returns outwards in the financial statements
Capital 1,50,000 (2019 Mar – 2 Marks)
Cash in hand 50,000 8. Briefly explain how interest on capital is adjusted in the profit and loss account and Balance sheet
35 36
prepared at the end of an accounting period. (2020 Imp – 2 Marks) (a) Rent prepaid Rs.1,000 (b) Commission received in advance Rs.500 (2022 Mar-4 Marks)
9.Fill in the blanks. 19. Write the adjusting entries for the following :
(a) …………..A/c Dr. 2,000 (a) Outstanding salary Rs.5,000 (b) Rent paid in advance Rs.3,000
To furniture A/c 2,000 (Furniture depreciated by Rs.2,000) (c) Depreciation on machinery Rs.2,000 (d) Interest on capital Rs. 8,000 (2022 Imp – 4 Marks)
(b) Rent A/c Dr. 5,000 20. Write the adjustment entries.
To ………….. A/c 5,000 (Rent outstanding Rs.5,000) (2021 Mar – 2 Marks) (a) Outstanding salary Rs 2,000
10.On which side of the Balance Sheet the following items shown. (b) Prepaid insurance Rs 600
(a) Accrued interest (b) Salary outstanding (2021 Mar – 2 Marks) (c) Depreciation of machinery Rs 4,000
11. Classify the following items into Assets and Liabilities : (d) Interest on Capital Rs 2,800 (2023 Mar-4 Marks)
(a) Wages due but not paid. (b) Salary paid in advance. 21. Pass the adjusting entries for the following :
(c) Rent received in advance. (d) Commission due but not received. (2021 Imp- 2 Marks) (a) Rent outstanding Rs 10,000.
12. Briefly explain the following : (b) Depreciation on Machinery Rs 4,000.
(a) Outstanding expenses. (b) Accrued income. (2021 Imp – 2 Marks) (c) Commission received in advance Rs 5,000.
13. Capital balance Rs 50,000 as per trial balance and you are required to provide 10% interest on (d) Bad debts Rs 2,500. (2023 Imp – 4 Marks)
capital. 22. A portion of trial balance as on 31st December 2016 is as follows:
(a) Show how it will appear in P/L Account (b) Show the treatment in Balance Sheet. Sundry Debtors Rs. 62,000
(2023 Mar – 2 Marks) Bad debts Rs. 4000
14. An extract from a Trial Balance of Naj Stores on March 31, 2022 is given below : (`) Sundry Debtors Additional information:-
32,000 Bad debts 2,000 Provision for doubtful debts 3,500 Additional Information : (i) Write-off further a) Further Bad debts to be written off Rs. 2000
bad debts ` 1,000. (ii) Create a provision for doubtful debts @ 5% on debtors. Show how the items will b) Create provision for bad debts @5% on debtors
appear in the Profit and Loss Account. (2023 Imp – 2 Marks) Give journal entries and show how these items will appear in the final statements of the business
15.Identify the debit and credit aspects from the following transactions (2019 Mar – 5 Marks)
a) Insurance premium paid in advance 23. What are the adjustment entries for the following ?
b) Discount allowed to Mr.Anandu (a) Wages outstanding Rs.2,000
c) Goods taken for personal use (b) Depreciation of Machinery Rs. 5,000
d) Depreciation written off on machinery (2018 Imp - 4 Marks) (c) Rent received in advance Rs. 3,000
16. (1) What do you mean by prepaid expenses ? (d) Salary prepaid Rs.7,000
(2) Calculate the amount of insurance premium shown in the Profit and Loss a/c if the insurance (e) Interest receivable Rs.4,000 (2021 Mar – 5 Marks)
premium paid is Rs. 5,000 and Insurance prepaid is Rs.1,000 as at the end of the year 24. Complete the table with suitable account for the following adjustments :
(2021 Mar-4 Marks)
17. Explain the accounting adjustment of the following items while preparing final accounts : Adjustment Account to be Debited Account to be Credited
(a) Depreciation. (b) Prepaid expenses. (2021 Imp – 4 Marks) (a) Commission received in advance ………. Commission received in
18. Write the adjusting entry for the following : advance
37 38
(b) Depreciation on Machinery ………. Machinery

(c)Insurance premium prepaid Prepaid insurance …………... 2,92,800 2,92,800
(d)Interest due but not received ………………. Interest
(e) Salary Outstanding Salary ………………. Additional information:
a) Closing stock was valued at Rs. 45,000.
(2021 Imp – 5 Marks) b) Salaries paid only up to 31st January, 2017.
25. The following is the Trial Balance extracted from the books of Arya Traders for the year c) Insurance prepaid Rs.800.
ended 31st March , 2017 d) Create a provision for doubtful debts at 10% p.a. on debtors.
Trial Balance as on 31st March, 2017 e) Depreciate building at 5% p.a. and furniture at 10% p.a.
Account Title Debit Credit Prepare Trading and profit & Loss account for the year ended 31stMarch, 2017 and a
Purchase 80,000 Balance Sheet as on that date. (2018 Mar – 8 Marks)
Drawings 6,000 26.From the following Trial Balance of M/s. Goutham and Son's as on31st December. 2016
Sales 1,20,000 Prepare a Trading and Profit & Loss account and Balance Sheet.
Opening stock 20,000 Particulars Amount Particulars Amount
Sundry creditors 35,000 Opening stock 12,500 S ales 53,800
Sundry debtors 46,000 Purchases 40,000 Capital 20,000
Purchase return 2,000 Sales returns 300 Loan 5,000
Sales return 1,500 Cash in hand 1,000 Creditors 8,000
Commission 6,900 Cash at bank 5,700 Purchase returns 580
Wages 7,000 Salary 800 Commission 500
Carriage inwards 2,000 Wages 1,250 Bills Payable 1,500
Carriage outwards 1,000 Insurance 1,000 Bank O/D 1,220
Salaries 10,000 Carriage inwards 1,050
Rent 3,400 Debtors 10,000
Bills payable 16,000 Machinery 7,000
Bank overdraft 9,500 Buildings 10,000
Cash in hand 4,300 90,600 90,600
Building 80,000
Furniture 23,000 Adjustments:
Bad debts 2,000 a) Closing Stock Rs. 12,300
General expenses 4,000 b) Outstanding : wages Rs.200 and salary Rs. 100.
Insurance 6,000 c) Accrued commission Rs. 300.
Capital 1,00,000 d) Create 5% provision for bad and doubtful debts.
39 40
e)Charge 10% depreciation on machinery (2018 Imp – 8 Marks) Capital 80,000

27. Following is the Trial Balance of Mr. Ajayan as on 31st March 2018 Drawings 2,000
Trial Balance as on 31-03-2018 Purchases and sales 35,000 72,000
Particulars Debit Credit Returns 2,000 1,500
Opening stock 24,000 Carriage 500
Purchases 1,38,000 Rent 2,000
Sales 2,68,000 Debtors and creditors 20,000 15,000
Freight 24,300 Opening stock 9,000
Salaries 65,000 Buildings 17,000
Sundry Debtors 26,000 Wages 5,000
Sundry Creditors 24,000 Commission 200 800
Land and Building 1,80,000 Discount 500
Interest 600 Printing 300
Rent 8,000 Salary 2,300
Furniture 15,000 Loan 10,000
Insurance charges 800 Machinery 30,000
Capital 2,07,400 Bad debt 1,000
Cash in hand 7,200 Furniture 10,000
Cash at bank 11,700 Bills receivable/Bills Payable 15,000 13,000
5,00,000 5,00,000 Cash 28,500
Bank 12,700
Additional information: Interest 700
a) Closing stock was valued at Rs. 40,000 1,93,000 1,93,000
b) Freight outstanding Rs. 2,000
c) Salaries prepaid Rs. 5,000 Adjustments :
d) Depreciate furniture by 10 %. 1. Closing stock valued at Rs.12000
e) Interest accrued Rs. 200. 2. Depreciation on machinery @10% and furniture @ 5 % p.a.
Prepare Trading, Profit and Loss account for the year ending 31-03-2018 and 3. Outstanding salaries Rs.1,000
Balance Sheet as on that date. (2019 Mar – 8 Marks) 4. Prepaid rent Rs.300
5.Provision for bad debt @5% on debtors. (2019 Imp- 8 Marks)
28. Prepare Trading and Profit and Loss account and Balance sheet from the given Trial Balance on 31-3- 29. From the following Trial Balance and additional information given in respect of M/s. Kochin
2018 Traders, prepare Trading and Profit and Loss account for the year ended 31st March, 2018.
Particulars Amount Amount Trial Balance as on 31st March, 2018
41 42
Particulars Amount Particulars Amount Bad debts 7,000

Stock on 1-4-2017 12,800 Capital 50,000 Drawing 24,000
Cash 18,000 Creditors 18,400 Stationery 6,000
Wages 35,000 Loan 18,000 Office expense 4,000
Drawings 3,000 Sales 2,23,500 Insurance 12,000
Debtors 20,000 Purchases returns 4,100 8,53,000 8,53,000
Purchases 1,45,800 Discount 800 Additional Information :
Land and Building 45,000 Bills payable 6,500 (a) Closing stock was valued at Rs.2500
Sales returns 8,400 (b) Insurance prepaid to the extent of Rs.2000
Salary 10,000 (c) Rent outstanding Rs.5000
Bad debt 1,000 (d) Write off further bad debts Rs.1000
Insurance 8,300 (e) Depreciate machinery @ 10% p.a (2020 Imp – 8 Marks)
Bills receivable 14,000 31. From the following Trial Balance of Mr. Hameed, you are required to prepare trading and profit and
3,21,300 3,21,300 loss account for the year ended March 31, 2020 and Balance Sheet as on that date.
Additional Information:
(a) Salary outstanding Rs.1,000. Particulars Amount Amount
(b) Provide 5% on debtors for provision for doubtful debts. Opening Stock 15,400
(c) Insurance prepaid Rs.2,500. Purchases 54,500
(d) Depreciation on Land and Building @ 5%. Sales 92,000
(e) Closing stock was Rs.14,200. (2020 Mar- 8 Marks) Wages 14,600
30. From the given ledger account balances as on 31-03-2019 and the additional information prepare the Land & Building 1,50,000
trading and profit and loss account for the year ended 31-03-2019 and the balance sheet as on that date. Carriage inwards 1,300
Particulars Amount Particulars Amount Sundry debtors 14,500
Opening stock 50,000 Sales 4,21,000 Capital 1,20,000
Purchase 3,50,000 Capital 3,00,000 Salaries 7,200
Sales return 5,000 Creditors 1,00,000 Cash in hand 8,000
Cash in hand 32,000 Bank overdraft 28,000 Furniture 5,000
Furniture 1,28,000 Commission received 4,000 Interest 2,600
Debtors 1,40,000 Insurance premium 2,100
Machinery 60,000 Bank Loan 58,000
Carriage on purchase 12,000 2,72,600 2,72,600
wages 8,000 Adjustments :
Rent 15,000 (1) Closing stock valued at Rs.16,500
43 44
(2) Salary outstanding Rs.1,400 Purchases 67,600 Purchase returns 3,200

(3) Depreciate furniture by 10% (2021 Imp – 8 Marks) Sales returns 4,600 Discount 1,400
32. Prepare a Trading and Profit and Loss account and Balance Sheet of M/s Arjun Associates for the Carriage Inward 1,400 Bank overdraft 10,000
year ending March 31, 2022 on the basis of following balances taken from his Trial Balance and General Expenses 2,400 Commission 1,800
adjustments given Insurance 4,000 Creditors 16,000
st
Trial Balance as on 31 March 2022 Carriage outward 200 Capital 1,50,000
Particulars Amount Particulars Amount Salaries 8,800
Purchases 50,000 Sales 64,000 Cash in hand 4,000
Opening stock 10,000 Discount received 1,000 Investment 58,000
Carriage inwards 1,000 Creditors 4,000 Furniture 55,200
Cash in hand 5,000 Bill payable 5,000 Machinery 65,000
Wages 4,000 Capital 40,000 Debtors 6,000
Insurance 3,000 Wages 1,200
Investment 12,000 Total 2,94,400 2,94,400
Debtors 5,000
Bills receivable 2,000 Prepare the Trading and Profit and Loss Account for the year ending 31st December, 2021 and a balance
Commission 1,500 sheet as on that date after considering the following adjustments :
(a) Unexpired insurance Rs.1,000
(b) Salary due but not paid Rs.2,000
Interest 2,500 (c) Wages outstanding Rs.300
Carriage outward 3,000 (d) Machinery is depreciated @ 10% p. a.
Furniture 15,000 (e) Closing stock is valued at Rs. 50,000 (2022 Imp – 8 Marks)
Total 1,14,000 1,14,000 34. Following is the trial balance of a trader for the year ending 31st Dec. 2022
Particulars Debit `Credit
Adjustments : Stock (1-1-2022) 40,000
1. Depreciate Furniture @ 10 % pa Purchases 1,20,000
2. Wages outstanding Rs.1,000 Sales 3,14,000
3. Insurance prepaid Rs.1,000
Sales return 4,000
4. Closing stock Rs. 12,000 (2022 Mar – 8 Marks)
Wages 22,000
33. The following balances were extracted from the books of Raj traders on 31st December, 2021.
Carriage Inwards 6,000
Salary 30,000
Particulars Amount Particulars Amount
Rent 20,000
Opening stock 16,000 Sales 1,12,000
45 46
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Commission received 8,000

Debtors 40,000
Creditors 60,000
Cash at bank 6,300
Furniture 1,50,000
Capital 60,300
Drawings 4,000
Total 4,42,300 4,42,300
(2023 Mar – 8 Marks)
35. From the following balances of M/s. Ajmal Stores, prepare Trading and Profit and Loss account for the
year ended March 31, 2022 and a Balance Sheet as on that date.
Particulars Debit Credit
Capital 1,00,000
Machinery 80,000
Purchases and Sales 60,000 1,27,000
Returns 1,000 700
Opening Stock 30,000
Discount Received 800
Debtors and Creditors 45,000 20,000
Salaries 7,800
Wages 10,000
Carriage inwards 1,200
Bank overdraft 5,500
Rent 10,000
Advertisement 2,000
Cash in hand 7,000
Total 2,54,000 2,54,000
47
PREPARED BY VINOD E B ,HOLYFAMILY H S S , RAJAPURAM , KASARAGOD ,MOB:9544 389 770

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5. Find out the wrong Pair. (2021 Mar - 2 Marks)

losses (2) For every debit there is an equal credit.

(2022 Mar - 4 Marks) (3) Treatment of Outstanding salary.

C Accounting records monetary events only Conservatism

3 60000 ? 35000 To Capital A/c 10,000 (…………………………)

3 Cash sales Rs.12,000 December 01 Cash in hand Rs,20,000

(2020 Mar - 4 Marks) Investment 50,000

(2022 Mar – 5 Marks) CHAPTER 7

Sales Rs.6,00,000 Carriage inwards – Rs.4,000 (2020 Mar-3 Marks)

Gross Profit Rs.20,000 (2021 Mar – 5 Marks) Furniture 40,000

(b) Depreciation on Machinery ………. Machinery

e)Charge 10% depreciation on machinery (2018 Imp – 8 Marks) Capital 80,000

Particulars Amount Particulars Amount Bad debts 7,000

(2) Salary outstanding Rs.1,400 Purchases 67,600 Purchase returns 3,200

Commission received 8,000

PREPARED BY VINOD E B ,HOLYFAMILY H S S , RAJAPURAM , KASARAGOD ,MOB:9544 389 770

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