Question Paper

11th ACCOUNTS

Time: 3hrs Max Marks: 80

 All question are compulsory.

 All parts of questions should be attempted at one place.
 Marks for questions are indicated against each question.
 Answers should be brief and to the point.

Q1. Write any three advantages of Accounting.[3marks]

Q2. Rectify the following errors by passing entries:[3 marks]

i. ₹2,000 received from Ramesh wrongly entered as from Suresh.

ii. ii. The Purchase Book was under cast by ₹300.
iii. iii. Total of Sales return was under cast by ₹500.

Q3. Explain Going Concern Assumption and Matching Concept? [3 marks]

Q4. On 1st January, 2014, A drew a bill on B for Rs.20,000 payable after 3
months. B accepted the bill and returned it to A. After 10 days, A endorsed the
bill to his creditor, C. On the due date, the bill was dishonoured and C paid
Rs.200 as noting charges. Record the transactions in the books of A, B and C. [4
marks]

Q5. Give any two difference between Reserves and Provisions. [4 marks]

Q6. From the following particulars, find out the errors in cash book and bank
statement and prepare Bank Reconciliation Statement as on 31-05-2016 for
Ammar Ahmed Sugar Mill Ltd:
i. Balance as per passbook overdraft of Rs. 2,118.
ii. The debit side of the cash book had been undercast by Rs. 300.
iii. A check for Rs. 182 drawn for the payment of telephone bill had been entered
in the cash book as Rs. 281 but was shown correctly in the bank statement.
iv. A check for Rs. 210 by the customer having been deposited into bank was
dishonored by the bank a check was credited twice in Cash Book for worth Rs.
3,000.
v. A Dividend of worth Rs. 90 had been collected by the bank but not recorded in
the cash book.
vi. Checks Rs. 3,000 drawn in December but only 1,200 presented for payment.
vii. Interest amounting 228 had been debited by the bank but not entered in the
cash book.
viii. A check for Rs. 2,077 was issued by the company for purchase of
merchandise and was paid by the bank but not recorded in company’s book.
ix. A check for Rs. 10,500 issued to Salman & Co. for purchase of Equipment
was not encashed. [6marks].

Q7. A company purchased on 1st July, 2015 machinery costing ₹30,000. It

further purchased machinery on 1st January, 2016 costing ₹20,000 and on 1st
October, 2016 costing ₹10,000. On 1st April, 2017, one-third of the machinery
installed on 1st July, 2015 became obsolete and was sold for ₹3,000. The
company follows financial year as accounting year. Show how the Machinery
Account would appear in the books of company if depreciation is charged @10%
p.a. on Written Down Value Method. [8 marks].

Q8. From the following Trial Balance of M/s. Shradha & Sons as on 31st March,
2018, prepare Trading and Profit and Loss Account and Balance Sheet.
 
Dr. Cr.
Balanc Balanc
Heads of Accounts
e e
(₹ ) (₹ )
Capital ............................................................................. … 80,000
...
Drawings ............................................................................. 18,000 …
...
Sales ............................................................................. … 1,55,00
... 0
Purchases ............................................................................. 82,600 …
...
Stock (1st April, ............................................................................. 42,000 …
2017) ...
Returns Outward ............................................................................. … 1,600
...
Carriage Inwards ............................................................................. 1,200 …
...
Wages ............................................................................. 4,000 …
 ...
Power ............................................................................. 6,000 …
...
Machinery ............................................................................. 50,000 …
...
Furniture ............................................................................. 14,000 …
...
Rent ............................................................................. 22,000 …
...
Salary ............................................................................. 15,000 …
...
Insurance ............................................................................. 3,600 …
...
8% Bank Loan ............................................................................. … 25,000
...
Debtors ............................................................................. 20,600 …
...
Creditors ............................................................................. … 18,900
...
Cash in Hand ............................................................................. 1,500 …
...
Total 2,80,50 2,80,50
0 0

Adjustments:
(i) Closing Stock ₹ 64,000.
(ii) Wages outstanding ₹ 2,400.
(iii) Bad Debts ₹ 600 and create a provision for doubtful debt @ 5% after
creating a provision of 10% on provision on discounts on debtors.
(iv) Provision for Doubtful Debts to be 5%.
(v) Rent is paid for 11 months.
(vi) Insurance premium is paid per annum, ended 31st May, 2018.
(vii) Loan from the bank was taken on 1st October, 2017.
(viii) Provide Depreciation on machinery @ 10% and on Furniture @ 5%. [8
marks].
Q9. Give any two difference between Reserves and Provisions . [4 marks].

Q10. Journalise the following transactions.

Jun 5th : Acquired the running business of Max, for cash 50, 000 by taking over
the following assets and liabilities at values stated against them:

Stock of Goods 15,000; Cash 25,000; Furniture 10,000; Debtors 7,000;

Machinery 8,000 & Creditors 15,000.
6th : Opened a bank account with 5,000
7th : Bought goods worth 6, 000 from Usha & Co. & paid half the amount
in cash.
8th : Sold to Bee & Co. goods worth 5,000 and a cheque received for the
due
14th : Sold private car for 4,000 and bought a new one for business with the
proceeds plus 5,000 from office cash.
16th : Bought furniture worth 4,000 of which, those worth 1,000 are for
office use and the balance for stock.
18th : Sold goods to Arial & Co. 8,000 and to Wheel & Co. 7,000
19th : Payment made to Creditors 4,500
20th : Cash received from Debtors 5,800
25th : Paid Rent by cheque 2,500
20th : Commission received 3,000. [8 marks]

Q11. Prepare Trial Balance from the following information: Bank

overdraft ₹28,000, Cash in hand ₹4,000, Purchase return ₹8,000,
Sundry expenses ₹24,000, Sales return ₹16,000, Salaries ₹16,000,
Purchases ₹56,000, Sales ₹88,000, Creditors ₹24,000, Debtors
₹16,000, Stock (opening) ₹20,000, Machinery ₹40,000, Capital
₹44,000. [4 marks]
Q12. Write up Cash Book of Bhanu Partap with Cash and Bank Columns
from the following transactions:−
2017 (₹ )
March Cash-in-hand 2,710
1
Cash at Bank 27,500
3 Received from Subhash 3,500
4 Sold goods for cash 10,000
7 Paid Rent by Cheque 800
8 Paid Sohan by cheque 3,000
10 Bought goods for cash 15,000
12 Paid cash for stationery 200
Drew from Bank for office use 8,000
15 Received cheque from Surendra and sent it to Bank 6,600
16 Paid for advertisement 750
18 Issued cheque in favour of Nath Brothers 4,300
19 Cash Sales 13,000
Paid into Bank 16,000
20 Received cheque from Vinod and sent it to Bank 2,400
22 Bought Scooter and paid for the same by cheque 18,000
25 Bank returned Surendra's cheque dishonoured
28 Paid salary by cheque 7,200
Paid Trade expenses 2,000
29 Cash sales 9,500
30 Paid into Bank 10,000
[8 marks]

OR

What is Matching concept? Why should a business concern follow this concept?
Discuss. [8marks]

Q13.