SECTION B

4Qx5M= 20 Marks

1. Goods purchased for resale are called ------

2. Business property is called----
3. Withdrawal of cash or merchandise for personal use is called ----
4. Internal users are the ..................... of the business entity.
5. The Internet has assisted in decreasing the ..................... in issuing financial reports to
users.

(Purchases, Assets, Management, Drawing, Time-gap)

2. . Provide the adjustment entries to record the following:

A. Outstanding Wages
B. Prepaid Salary
C. Accrued Commission
D. Rent received in advance
E. Provision for bad and doubtful debts

3.

A. a(ii), b(iii), c(i)

B. a(i), b(ii), c(iii)
C. a(ii), b(i), c(iii)
D. a(i), b(ii), c(iii)

4.
State true of false:
1. In Book - keeping & accountancy non- monetary transactions are also recorded.
2. According to money measurement concept, working conditions in which the workers of the
business have to work must be clearly recorded in the books of account.
 3. The double-entry system of accounting refers to the placement of a double line at the end of a
column of figures.
4. Cash book shows always debit balance.
5. Depreciation is also charged on current assets.

SECTION-C
3Qx10M=30 Marks

1. Analyze the effect of each transaction on assets and liabilities of Zuckerberg Ltd.
and show after recording every transaction that both sides of Accounting
Equation remain equal:

I. Business started with cash ₹50,000.

II. Goods purchased form Ramfor ₹6,000.
III. Stationery purchased for cash ₹200.
IV. Opened a bank account with PNB for ₹35,000.
V. Goods sold to MohitLtd. for ₹16,000.
VI. Received a cheque of ₹16,000 from Mohit.
VII. Purchased goods for ₹20,000 on credit from RP Ltd.
VIII. Purchased office furniture for ₹11,200.

2.

Balance Balance
Sr. No Name of Account Sr. No Name of Account
(₹) (₹)
(i) Capital 2,00,000 (ii) Stock 70,000
(iii) Cash 1,80,000 (iv) Debtors 3,00,000
(v) Creditors 1,00,000 (vi) Bank Loan 1,50,000
(vii) Sales 3,00,000 (viii) Purchases 2,00,000
3.

You are given the following information:

Equity Share Capital Rs. 1,00,000
8% Preference Share capital Rs. 80,000
9% Debentures Rs. 60,000
General Reserve Rs. 10,000
Sales Rs. 2,00,000
Opening Stock Rs. 12,000
Purchases Rs. 1,20,000
Wages Rs. 8,000
Closing Stock Rs. 18,000
Selling & Distribution Expenses Rs. 2,000
Other current assets Rs. 50,000
Fixed Assets Rs. 2,12,000
Current Liabilities Rs. 30,000

Calculate the following ratios:

i. Operating Ratio
ii. Gross Profit Ratio
iii. Quick Ratio
iv. Working Capital Turnover Ratio
v. Proprietary Ratio

Prepare a Trial Balance with the following information: