SADA RAM BANSAL MEMORIAL SR. SEC.

SCHOOL
Affiliated to C.B.S.E, New Delhi (Affiliation No-1631207)

Jaito Road,Kotkapura – 151204 (Pb.)

Time : 1Hrs Class-+1 Comm Subject- ACCOUNTANCY M.M 30 Set- A

A. Each question carrying one mark (1*7=7)

1. Bank reconciliation statement is prepared by:

(a) Creditors (b) Debtors

(c) Bank (d) Account holder

2. On purchase of old furniture, the amount of ₹ 1,000 spent on its repair should be debited to

(a) Repairs A/C (b) Furniture A/C

(c) Cash A/C (d) None of these

3. ₹ 200 Received from smith whose account was previously written off as bad debts should be credited
to
(a) Bad debts recovered A/c (b) Smith’s A/C
(c) cash A/C (d) None of these
4. Provisions are
(a) External transactions (b) Internal transactions
(c) Both (a) and (b) (d) None of these
5. If the amount of any known liability cannot be determined with accuracy
(a) A liability should be provided
(b) A provision should be made
(c) A reserve should be set aside
(d) None of these
6. A bill of exchange has_____________ parties
(a) Two (b) Four
(c) Three (d) One
7. A 4 months bill drawn on 1st January,2016 will Mature for payment on
(a) 3rd May, 2016 (b) 5th May, 2016
(c) 4th may, 2016 (d) 1st may, 2016

B. Each question carrying 3 mark (3*1=3)

1. Define the provision. What is the importance of creating a provision?

C. Each question carrying 4 mark (4*2=8)

1. Prepare bank reconciliation statement as on 30th setpember,2016 from the following particulars:
(i) Bank balance as per pass book ₹ 10,000.
(ii) Cheque deposited into bank but no entry was passed in cash book ₹ 500.
(iii) Cheque received and entered in cash book but not sent to bank ₹ 1,200.
(iv) Insurance premium paid directly by the bank ₹ 800.
(v) Bank charges entered twice in cash book ₹ 20.

2. On 1st January,2017 A sold goods to B for ₹ 5,000 and drew upon him a bill for the amount payable
3 months after date. The bill was duly accepted by B. A retained the bill till due date. On the due
date, the bill was paid.
Pass the journal entries in the books of A and B.

D. Each question carrying 6 mark (6*2=12)

1. A purchases goods worth ₹ 6,200 from B and gives him his acceptance for ₹ 6,000 in full settlement.
B purchases goods worth ₹ 10,000 from c and endorses the bill to him, paying the balance by cheque.
On maturity the bill is dishonoured, nothing chares amounted to ₹ 100.
Give journal entries in the books of A, B and C.
2. Rectifying the following errors:
(i) Sale of old furniture worth ₹ 3,000 treated as sales of goods.
(ii) Sales book added ₹ 5,000 short.
(iii) Rent of proprietor’s residence, ₹ 6,500 debited to rent account.
(iv) Goods worth ₹ 11,970 returned by Manav posted to his debit as ₹ 11,790.
(v) Salary paid to Yash ₹ 1,000 was debited to his personal account.
(vi) Good sold to Surinder recorded in purchases book ₹ 3,000.
(vii) ₹ 1,500 paid for furniture purchased had been charged to ordinary purchase account.
 SADA RAM BANSAL MEMORIAL SR. SEC. SCHOOL
Affiliated to C.B.S.E, New Delhi (Affiliation No-1631207)

Jaito Road,Kotkapura – 151204 (Pb.)

Time : 1Hrs Class-+1 Comm Subject- ACCOUNTANCY M.M 30 Set- B

A. Each question carrying one mark (1*7=7)

1. Bank reconciliation statement is

(a) A part of double entry system.
(b) Not a part of double entry system.
(c) Part of bank statement.
(d) None of these
2. ₹ 2,000 paid as wages for installing a machine should be debited to
(a) Wages A/C (b) Cash A/C
(c) Machinery A/C (d) None of these
3. Purchase of office furniture worth ₹ 1,200 has been debited to the general expenses A/C. It is:
(a) A clerical error (b) An error of principle
(c) An error of omission (d) Compensation error
4. Reserve arising from capital receipts are known as
(a) Capital reserve (b) Reserve fund
(c) Both (a) and (b) (d) None of these
5. If the amount of any known liability can be determined with accuracy
(a) A liability should be provided
(b) A provision should be made
(c) A reserve should be set aside
(d) None of these
6. The party which is ordered to pay the amount is known as:
(a) Drawer (b) Payee
(c) Drawee (d) Endorsee
7. Three days are added for ascertaining the date of maturity. These are known as days of
(a) Maturity (b) Grace
(c) Payment (d) None of these

B. Each question carrying 3 mark (3*1=3)

1. Define the reserve. What is the importance of creating a reserve.

C. Each question carrying 4 mark (4*2=8)

1. Cash book shows a balance of ₹ 12,500. On comparing the cash book with the pass book following
discrepancies were noted:
(i) Cheque issued but not yet presented for payment ₹ 6,000.
(ii) Cheque issued but not yet presented for payment ₹ 9,000.
(iii) Bank paid insurance premium ₹ 5,000
(iv) Bank charges ₹ 300.
(v) Directly deposited by a customer ₹ 8,000.
Prepare bank reconciliation statement.
2. Manish sold goods to Kumar to the value of ₹ 10,000 drawing upon him a bill for the amount payable
3 months after date. Kumar accepted the bill and returned it to Manish. On due date, Manish presented
the bill to Kumar who honored it.
Pass the Journal entries in the books of both the parties.

D. Each question carrying 6 mark (6*2=12)

1. On 1st January, 2017 for goods sold, Ramesh drew a bill of exchange on Mahesh for ₹ 4,000 for a
period of 3 Months. Mahesh accepts it and returns to Ramesh. Ramesh then endorses it to Mukesh.
On due date, bill is dishonoured, nothing charges amounted ₹ 200.
Give the journal entries in the books of Ramesh, Mahesh and Mukesh.
2. Rectify the following errors:
(i) Purchases book was overcast by ₹ 1,000.
(ii) Installation charges on new machinery purchased ₹ 500 was debited to sundry expenses account as
₹ 50.
(iii) Radhey Sham returned goods worth ₹ 500 which was entered in the purchases return book.
(iv) A sale of ₹ 6,540 to Rajat has been credited to his account.
(v) ₹ 1,500 received for sale of old furniture, has been credited to sales account.
(vi) ₹ 5,100 spent on legal expense for the newly acquired building was debited to the building account
as ₹ 1,500.
(vii) Goods taken by the proprietor for ₹ 5,000 have not been entered in the books at all.