P.P.

SAVANI CHAITANYA VIDYA SANKUL, CBSE

Solution of ANNUAL-EXAM (2023-24)
SET-A
STD: - 11 COMM.
TH MAX. MARKS: 80
SUBJECT: - ACCOUNTANCY TIME: 3 HOURS
DATE: - 13.03.2024
General Instructions: -

1. This question paper is divided into two parts – Part A and Part – B.
2. Part- A: Financial Accounting – I and Part- B: Financial Accounting –II.
3. This question paper contains 34 questions and questions are compulsory.
4. Attempt all parts of a question together and show your working clearly.
5. Question No. 1 to 16 and 27 to 30, carries 1 mark each.
6. Question No. 17 to 20 and 31 to 32, carries 3 mark each.
7. Question No. 21 to 22 and Question No. 33 carries 4 marks each.
8. Question No. 23 to 26 and Question No. 34 carries 6 mark each.

PART – A
FINANCIAL ACCOUNTING – I

1. Which of the following is not recorded in the books of account:

(a) Purchase of goods for resale amounted to Rs.15,000
(b) Paid Salary and Wages amounted to Rs.20,000
(c) Paid Rent for office premises Rs.5,000
(d) Sale of household furniture for Rs.7,000

(d) Sale of household furniture for Rs.7,000

2. If the accounting information is based on facts and it is verifiable by documents, it has the quality of
____________.
(a) Relevance
(b) Reliability
(c) Understandability
(d) Comparability

(b) Reliability

OR

Which of the following is not a limitations of Accounting:

(a) Influenced by Personal Judgments
(b) Based on Historical Costs
(c) Affected by Window Dressing
(d) Enables Comparative Study

(d) Enables Comparative Study

3. The nature of Accrued Income is:

(a) Asset
(b) Revenue
(c) Expense
(d) Liability

(a) Asset
4. Which of the following is not a Current Liability:
(a) Creditors
(b) Bank Overdraft
(c) Outstanding Expenses
(d) Prepaid Expenses

(d) Prepaid Expenses

OR

From the following Account which is not related to Personal Account

(a) Rent Paid
(b) Rent Paid in Advance
(c) Rent Received in Advance
(d) Outstanding Rent

(a) Rent Paid

5. Which of the following will increases Capital?

(a) Drawing
(b) Expense
(c) Loss
(d) Profit

(d) Profit

OR
Assets (Except Securities) may be valued under Ind- AS on:
(a) Historical Cost
(b) Fair Value
(c) Both Historical Cost and Fair Value
(d) Market Price

(a) Historical Cost

6. Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R):
Assertion (A): Human Resources in a business firm are important but are not reflected in the financial
statements of the firm.
Reason (R): Transactions should be recorded from view point of business and not from the view point of
businessman/owner.
In the context of the above statements, which one of the following is correct?
(a) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(b) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(c) Only (R) is correct.
(d) Both (A) and (R) are incorrect

(a) Both (A) and (R) are correct and (R) is the correct explanation of (A).

7. On intra-state sale of goods, which of the following account is credited?

(a) Input IGST A/c
(b) Output CGST A/c
(c) Output IGST A/c
(d) Output SGST A/c

(c) Output IGST A/c

OR
 GST Collected on Sales (Output GST) is a __________ for the seller:
(a) Cost
(b) Liability
(c) Asset
(d) Income

(b) Liability

8. Which of the following is known as ‘Principal Book’?

(a) Journal
(b) Ledger
(c) Trial Balance
(d) Balance Sheet

(b) Ledger

OR

The following expenses were incurred by Petty Cashier during the month of November2021,
Postage Rs.1,200; Conveyance Rs.500; Sundries Rs.300. If Interest Amount is Rs.8,000, then what will be the
amount of reimbursement to him.
(a) Rs.2,000
(b) Rs.6,000
(c) Rs.8,000
(d) Rs.10,000

(a) Rs.2,000

9. Match the following:-

(a) Purchased goods from X on credit (i) Return Inwards Book
(b) Purchased goods from Y for cash (ii) Return Outwards Book
(c) Returned goods to Y (iii) Purchase Book
(d) Goods returned by Z (iv) Cash Book

(A) a-(i),b-(iii), c-(ii), d-(iv)

(B) a-(iii), b-(i), c-(iv), d-(ii)
(C) a-(iv), b-(iii), c-(i), d-(ii)
(D) a-(iii), b-(iv), c-(ii), d-(i)

(D) a-(iii), b-(iv), c-(ii), d-(i)

10. Bank Reconciliation Statement is prepared:

(a) At the end of each month
(b) At the end of an accounting period
(c) On a certain date
(d) Before the preparation of final accounts

(c) On a certain date

11. Match the following:

(a) Compensating Error
(b) Error of Omission
(c) Error of Principle
(d) Error of Commission
(i) Goods purchased from Ram on credit Rs.500 are recorded in Purchase
Book as Rs.5,000.
(ii) A repair of Machinery Rs.1,000 debited to Machinery Account.
(iii) Shyam’s Account was debited with Rs.100 instead of Rs.1,000 while
Ram’s Account was debited with Rs.1,000 instead of Rs.100.
(iv) Credit purchase from Rajesh Rs.4,000 were not recorded
 (A) a-(i), b-(iii), c-(ii), d-(iv)
(B) a-(ii), b-(iii), c-(i), d-(iv)
(C) a-(iii), b-(iv), c-(ii), d-(i)
(D) a-(iv), b-(iii), c-(ii), d-(i)

(c) a-(iii), b-(iv), c-(ii), d-(i)

12. Suspense Account have:

(a) Debit Balance
(b) Credit Balance
(c) Debit or Credit Balance
(d) None of these

(b) Debit or Credit Balance

13. Which of the following is not correct for Depreciation?

(a) It is a decline in the value of a fixed asset
(b) It is a non-cash expense
(c) It decreases only the book value of the asset, not the market value
(d) It is also known as Depletion

(d) It is also known as Depletion

14. A machine is purchased for Rs.80,000 and spent Rs.10,000 on its immediate installation. Its scrap value is
Rs.6,000 and Estimated Life is 10 years. Its yearly depreciation as per Fixed Installment Method will be:
(a) Rs.8,600
(b) Rs.8,400
(c) Rs. 9,600
(d) Rs.9,000

(b) Rs.8,400

15. From the following which is not a feature of Provision:

(a) It is created to meet known liability
(b) Creation of Provision is compulsory
(c) It is never invested outside the business
(d) It is not shown in Balance Sheet

(d) It is not shown in Balance Sheet

16. Which of the following Reserve is used for meeting Capital Losses:
(a) General Reserve
(b) Revenue Reserve
(c) Capital Reserve
(d) None of these

(c) Capital Reserve

17. Explain any three functions of Accounting.

OR

Distinguish between Opening stock and Closing stock.

18. From the following statements identify the Accounting Concept:-
(a) Partnership firm gives interest on partners’ capital and charges interest on partners’ drawings if it is so
agreed.

(b) Entire expense of a ball pen refill purchased for Rs.5 on 25-03-2016 is debited to Stationery Expenses on
date of purchase itself even if only about a half of this refill is used by 31st March, 2016.
(c) ABC Corporation received free samples of goods worth Rs.5,000 from a supplier but ABC Corporation did
not record this transaction in its books of account even though it received the goods.

(a)

(b)

(c)
19. Journalize the following transactions:-
(a) Out of rent paid Rs.4,000 are related to next year.
(b) Goods costing Rs.8,000 sold to Ganesh at a profit of 25% on cost.
(c) Paid Rs.8,000 as Salary to Sundar Lal.

Date Particulars L.F. Dr. (Rs.) Cr.(Rs.)

Prepaid Rent A/c Dr. 4,000
To Rent A/c 4,000
Ganesh Dr. 10,000
To Sales A/c 10,000
Salary Dr. 8,000
To Cash A/c 8,000

OR

Distinguish between ‘Reserve’ and ‘Provision’.

Reserve Provision
To meet a known liability To meet a unknown liability
Discretionary Mandatory
Appropriation of profit Charge against profit

20. Enter the following transactions in the Purchase Book of Rohit Book Depot, New Delhi

2023
Nov 2 Purchased from Meeta Book Depot, New Delhi, vide Bill No. 555:-
20 dozens pencils @ Rs.5 per pencil
50 registers @ Rs.40 per register.
Trade discount 10%.

Nov 7 Purchased from Dev Furniture House, Kanpur:-

60 chairs @ Rs.500 per chair.
70 Stools @ Rs.200 each.

Nov 16 Purchased from Romil Book Depot, Agra (Uttar Pradesh), vide Bill No. 458:-
130 pens @ Rs.12 each
420 pencils @ Rs.6 each

Nov 26 Purchased from Muneet Book Depot, Ambala (Haryana), vide Cash Memo No. 830
80 staplers @ Rs.20 each
60 pens @ Rs.10 each
2023
Nov. 2 Meeta Book Depot, New Delhi: 555

20 1,200
240
2,000
50 3,200
320 2,880

Nov. 16
Romil

130 1,560

420 2520 4080

6960
21. Prepare an Accounting Equation from the following transactions:-
(a) Started business with Cash Rs.2,60,000, Goods Rs.50,000 and Furniture Rs.20,000.
(b) Purchased Goods from Radha for Rs.34,000, 1/3rd payment made in cash.
(c) Commission Received in Advance, Rs.12,000.
(d) Paid Rs.22,000 to Radha in full settlement of her claim.

2,60,000 + 50,000
+ 20,000 = 3,30,000

New Equation 2,60,000 + 50,000

+ 20,000 = 3,30,000 3,30,000
(11,333) + 34,000 + 22667
0 =

2,48,667 + 84,000 + 22,667 + 0 +

New Equation
20,000 = 3,52,667 3,30,000 = 3,52,2667

12,000 + 0 + 0 0 + 12,000 +
= 0

2,60,667 + 84,000 + 22,667 + 12,000 +

New Equation 20,000 = 3,64,667 3,30,000 = 3,64,667

(22,000) + 0 + (22,667) + 0 +
0 = 667

2,38,667 + 84,000 + NIL + 12,000 +

20,000 = 3,42,667 3,42,667
333
22. Prepare a Two Column Cash Book having Cash and Bank columns from the following:-

2024
Jan 2 Cash In hand Rs.17,000
Bank Overdraft Rs.5,000
Jan 6 Goods costing Rs.21,000 sold to Ramesh at a trade discount of 25%.
Jan 8 Cash deposited into bank Rs.11,000.
Jan 10 Rent paid Rs.3,000.
Jan 13 Received a cheque of Rs.16,000 from Ramesh .
Jan 15 Deposited the above cheque into bank.
Jan 19 Ramesh’s cheque returned dishonoured.
Jan 22 Withdrew Rs.2,000 from bank for personal use.
Jan 25 Deposited into bank, cash retaining Rs.2,500.

Bank

202 2024
4 17,0 Jan 2 5,000
Jan 00
2
Jan 11,0 Jan 8 11,000
8 00
3,000

Jan 16,00 By Ramesh 16,000

15 0
500 Jan 2,000
22
Jan 500
25

2,500 4,500

17,00 27,5 17,000 27,500

0 00
 23. On 31st December 2022, the pass book of Tarun showed a balance of Rs.19,300. From the following
particulars, prepare a bank reconciliation statement.
(a) Out of total cheques issued, cheques for Rs.9,200 have not presented for payment so far.
(b) Cheques paid into bank for collection amounted to Rs.7,500, but cheques of Rs.5,300 were credited on
3rd January 2022.
(c) A cheque of Rs.1,200 was banked and credited, not recorded in cash book.
(d) Interest on overdraft charged by bank Rs.100.
(e) A customer deposited Rs.3,400 direct in the bank was recorded in Pass Book only.
(f) Amount wrongly credited by bank, Rs.400.

24. Rectify the following errors:-

(a) Credit Purchase from Arjun Rs.9,000 was recorded as Rs.9,700.
(b)Credit Sale to Charmi Rs.3,250 was recorded in Purchase Book.
(c) Rs.5,000 spent on annual white-washing was debited to Building Account.
(d) Total of Sales Return Book was overcast by Rs.2,800.
(e) Goods sold to Akshay Rs.2,700 was posted to Hiren’ Account.
(f) Furniture purchased for Rs.12,000 wrongly debited to Purchase Account as Rs.3,000.

Date Particulars L.F. Dr. Amount Cr. Amount

(i) Arjun Dr. 700 700
To Purchase A/c
(ii) Charmi Dr. 6,500
To Purchase A/c 3250
To Sales A/c 3250
(iii) Repairs A/c Dr. 5,000
To Building A/c 5,000
(iv) Suspense A/c Dr. 2,800
To Sales Returns A/c 2,800
(v) Hiren Dr. 2,700
To Akshay 2,700
(vi) Furniture A/c Dr. 12,000
To Purchase A/c 3,000
To Suspense A/c 9,000
25. Aditya Steel Limited purchased machinery on 1 st April 2019 at a cost of Rs.70,000 and spent Rs.2,000 on its
installation. The firm writes off deprecation @ 10% p.a. on written down value method. On 1st October 2021,
the company sold the machinery purchased on 1st April 2019 for Rs.50,000 and purchased a new machinery
costing Rs.20,000 on the same day. If the accounting books are closed 31 st March each year, you are
required to prepare ‘Machinery Account’ for 3 years in the books of Aditya Steel Limited.

OR

You are given the following balances as on 1st April, 2022:

Machinery A/c Rs.5,00,000

Provision for Deprecation A/c Rs.1,20,000

Deprecation is charged on Machinery @ 10% p.a. on Original Cost Method. A piece of machinery purchased
on 1st April, 2020 for Rs.1,00,000 was sold on 1st October, 2022 for Rs.80,000.

Prepare Machinery Account, Provision for Depreciation Account and Machinery Disposal Account for the year
ended 31st March, 2023.
2022 2022
April
1 2023

2022 2022

2023 2023

2022 2022
 PART – B
FINANCIAL ACCOUNTING – II

26. ______ shows the financial-economic position of the business

(a) Trial Balance
(b) Trading Account
(c) Profit and Loss Account
(d) Balance-Sheet

(d) Balance-Sheet

27. Adjusted purchase means __________.

(a) Purchase + purchase expenses
(b) Purchase – purchase return
(c) Opening stock + purchase – closing stock
(d) Opening stock + purchases – purchase return – closing stock

(d) Opening stock + purchases – purchase return – closing stock

OR

Where provident fund interest of trial balance is shown?

(a) Credit side of profit and loss account
(b) Debit side of profit and loss account
(c) Added in provident fund investment on asset side of balance sheet
(d) Added in provident fund on liability side of balance sheet

(d) Added in provident fund on liability side of balance sheet

28. The following is an extract of a Trial Balance:

Name of Account L.F. (Rs.) (Rs.)
15% Bank Loan ----- 40,000
Interest on 15% Bank Loan 4,500 ------
Interest debited to Profit and Loss Account will be:
(a)Rs.1,500
(b) Rs.3,000
(c) Rs.4,500
(d) Rs.6,000

(a)Rs.1,500

OR
Gross Profit is 25% on Sales and Cost of Goods sold are Rs.1,80,000, then Gross Profit will be:
(a)Rs.60,000
(b) Rs.36,000
(c) Rs.45,000
(d) Rs.30,000

(a)Rs.60,000
29. Which of the following is not a Capital Expenditure?
(a) Spent Rs.2,500 on over-hauling of second-hand machinery.
(b) Paid Brokerage of Rs.5,000 paid for purchase of a Land.
(c) Spent Rs.15,000 for white-washing a new building.
(d) Spent Rs.12,000 for annual white-washing of the building.

(d) Spent Rs.12,000 for annual white-washing of the building.

30. Calculate the value of Closing Stock from the following details:-
(Rs.) (Rs.)
Opening Stock 27,000 Purchases 95,000
Sales 1,54,000 Carriage Inwards 7,000
Return Outwards 5,000 Carriage Outwards 8,000
Return Inwards 4,000 Salaries 32,000
Wages 24,000 Rate of Gross 25% on Cost
Profit

27,000 1,54,000
95,000

5000 90,000 4,000

7,000 28,000
24,000
30,000

1,78,000 1,78,000

31. From the following figures, calculate Operating Profit:

(Rs.) (Rs.)
Net Profit 1,00,000 Loss by Fire 2,000
Profit on Sale of Machine 7,000 Rent Received 10,000
Salary 22,000 Donation 5,000
32. Laksh started business on 1st April 2022 with a Capital of Rs.12,60,000. On 31st March 2023, his Assets
were Rs.17,10,000 and Liabilities were Rs.1,90,000. He withdrew during the year for personal use Rs.14,500
per month up to 31st March 2023. During the year he sold his personal investments of Rs.90,000 at a profit
of 20% and invested this amount in the business.

You are required to prepare a Statement of Profit or Loss for the year ending 31st March 2023.

(17,10,000 - 1,90,000) 15,20,000

1,74,000
(14,500 x 12)
16,94,000
(1,08,000)
(90,000 x 120/100)
15,86,000
12,60,000
3,26,000

33. The following is extract of Trial Balance. Show the following items in Profit and Loss Account and Balance
Sheet.
Trial Balance
as on 31st March, 2023
Name of Account L.F. Dr. Amount Cr. Amount
(Rs.) (Rs.)
Sundry Debtors 12,000 -----
Bad Debts 200 -----
Provision for doubtful debts ------ 800
Adjustments:-
1. Further Bad Debts amounted to Rs.400
2. Create a Provision for doubtful debts on Sundry Debtors @ 5%.

Bad Debt 200 800

Add: Further 200
600
Bad Debts 400
Add: New
Provision 580
Less: Old Provision 800 380

12000
400
11600
580 11,020
 OR

Distinguish between ‘Trial Balance’ and ‘Balance Sheet’.

34. From the following balances taken from the books of Sharma & Sons and adjustments, prepare Trading and
Profit & Loss Account for the years ending 31st March, 2023 and Balance Sheet as at that date:
Particulars (Rs.) Particulars (Rs.)
Opening Stock 15,000 Rent 4,000
Purchases 1,09,000 Rent Outstanding 600
Sales 1,80,000 Provision for Doubtful Debts 1,000
Wages 8,000 Furniture 5,000
Power and Electricity 12,000 (Purchased on 1st Oct,2022 for Rs.1,000)
Salaries 11,000 Machinery 72,000
Bad Debts 500 Sundry Debtors 28,000
Income Tax 5,500 Sundry Creditors 14,600
Loan to Param at 10% p.a. (1st April, 5,000 Capital 1,00,000
2022)
Interest on Loan to Param 300
Commission Received 4,500
Cash in Hand 26,000
Adjustments:
(1) Closing Stock at cost was Rs.35,000. Its net realisable value (market value) was Rs.30,000.
(2) Write off further Rs.500 as bad debt. Also, maintain a Provision for Doubtful Debts @ 5% on Sundry
Debtors.
(3) Create a provision for 2% for discount on debtors.
(4) Commission received includes Rs.3,000 received in advance.
(5) Depreciate furniture by 10% p.a.
(6) Salaries for the month of March, 2023 were outstanding.
 OR

From the following Trial Balance of Suman, prepare Trading and Profit & Loss Account for the year ended
31st March, 2023 and Balance Sheet as at that date after giving effect to the given adjustments:
Heads of Accounts L.F. Dr. (Rs.) Cr. (Rs.)
Capital …. 60,000
Drawings 7,500 ….
Purchases 72,100 ….
Sales …. 95,000
Returns 1,300 2,700
Sundry Debtors 40,200 ….
Creditors …. 58,750
Opening Stock 19,800 ….
Bad Debts 3,000 ….
Cash in Hand 300 ….
Office Expenses 6,210 ….
Delivery Van 15,000 ….
Delivery Van Expenses 1,400 ….
Discount …. 2,910
Rent 10,700 ….
Telephone Charges 1,050 ….
Postage Expenses 950 ….
Furniture 5,000 ….
Printing and Stationery 2,750 ….
Commission 8,400 ….
Carriage Inwards 3,200 ….
Salaries and Wages 20,500 ….
Total 2,19,360 2,19,360
Adjustments:
(1) Closing Stock was valued at Rs.67,700 and its market value is Rs.61,700.
(2) Depreciate Furniture and Machinery @ 10% p.a. and Delivery Van @ 20% p.a.
(3) Outstanding Rent amounted to Rs.900.
(4) Bad Debts Rs.200.

(5) Salaries and Wages includes wages of Rs.5,125.

A new machine was purchased on 1st Jan, 2023 for Rs.15,000 but it was not recorded in the books as payment
was not made for it.