FINAL EXAM /C LASS XI/2017-18

Accountancy
TIME:3 hrs. M.M.90
No of Pages: 8

General Instructions :
This paper divided into two parts A and B.

(i) Part-A carries 50 marks and Part-B carries 40 marks.

(ii) All parts of the questions should be attempted at one place.

(iv) All questions are compulsory.
()Show your working clearly.
PART A
1. Calculate the total equity if 1

Owner's equity in the beginning is 1, 20,000; Creditor's Equity is Rs. 1,00,000

Revenue during the period Rs. 1,40,000 and Expenses during the same period are

Rs. 1,30,000.
Also calculate owner's equity at the end.
Name the source documents recording in the Sales Book. 1
2.
3. Differentiate between reserve and provision on the basis of charge or appropriation. 1
3.
4. Which qualitative features of accounting are reflected in the following cases 2+1

(a) Consistent use of accounting policies and conventions

(b) Free from personal bias

Give two moral values related to reliability highlighted in qualitative information of

accounting.
3
5. Explain the following terms:
Capital Expenditure (i) Trade Payables (ii) Fictitious Assets
()
i)
6. Mohak had started a new mid-sized business. He being new to accounting sought 3
6.
chartered accountant maintenance of accounts. He was advised
advice from a on

that he should follow Double Entry System of Accounting maintaining accounts on

1
 accrual basis. Some of his friends advised him to maintain accounts on Cash Basis
of Accounting. He decided to follow the advice of the chartered accountant. You have
to appraise, judge and justify whether the decision of Mohak is correect
7. Prepare Trial Balance of Ram & Sons from the following information as on 31s
March, 2017
Purchases Rs. 70,500; Stock (1-4-16) Rs. 25,000; Capital Rs. 60,000; Return
Outwards Rs. 2,000; Sales Rs. 55,000; Return Inward Rs. 1,500; Drawings Rs.
7,000; B/R Rs. 10,000; B/P Rs. 11,000; Investment Rs. 16,000; Goodwill Rs. 6,000;
Bank Loan Rs. 15,000; Interest on Loan Rs.
2,500; Debtors Rs. 24,000; Creditors
Rs. 22,000; Discount Allowed Rs.
2,500; Stock (31-3-2017) Rs. 24,000 (not adjusted)
8. Prepare Cash Book with Bank Column of Ansh from the following transactions:
4
April 1 Cash in hand. ..10,000
Bank Overdraft....
.5,000
April3. Received cash from Ashish (debtor). .6,000 .

April4 Received a cheque from Ram Rs.1,000 and sent to bank.

April5 Received a cheque fromMohan.. .. 2,000
April8 Cheque of Mohan was endorsed toSohan.
April 11 Paid life insurance premium of Anshincash 600
April 15 PaidRent.....500
April 30 Deposited into Bank, Balance of cash in excess of Rs,2,000.
9. On checking the Bank Pass Book it was found that it showed an
overdraft of Rs.5,220 as on 4
31st March,2017 while as per ledger it was different. The following differences were
noted.
() cheques deposited but not yet credited by bank Rs. 6,000.
(i) chequesdishonoured and debited by bank but not given effect to it in the
Ledger Rs.800.
(ii) Bank charges debited by the bank but Debit Memo not received from the Bank
Rs.50
(iv) Interest on overdraft excess credited in the Ledger Rs.200.
(v) Wrongly credited by the bank to account, deposit of some other
party Rs. 900.
(vi) Cheques issued but not presented for payment Rs.400.
10. Explain the following Assumptions ofAccounting: 6
(i) Going ConcernAssumption (ii)
ConsistencyAssumption (ii) Prudence Principle
11. On 1st July, 2017, A draws on B, who owed him Rs. 25,000, two bills, one for Rs.15,000 for 6

2
 three months and another for Rs.10,000 for two months. B accepts these bills. A endorses
on 3rd July the first bill to his creditor C in full settlement of his account of Rs. 15,500 and
discounts the second bill on 4th July with his banker @ 12% p.a. The first bill is duly paid at
maturity but the second bill is dishonoured and Rs.150 are paid as noting charges. On 5th
September A draws and B accepts a third bill for three months for Rs. 10,450 in lieu of the
dishonoured bill. This bill is duly paid at maturity.
Give Journal Entries to record these transactions in the books of A Also prepare B A/c in
A's Book.
12. Fill in the missing information in the following Rectifying Journal Entries: 6
Date Particulars Dr (Rs.) Cr(Rs.)
...(1).. . Dr. 18,000
To..(2).. ...(3).
To Mehak A/c ..(4)..
(Being the goods returned by Khushbu for
Rs. 6,000 wrongly debited to Mehak as
Rs.12,000, now corrected)

(5). .. Dr. . (6)..

..(7). . Dr.

To Suspense A/c ...(8)..

(Being the goods returned to Madhur 8,000
forRs. 6,000 wrongly credited to Mishthi as

Rs.2,000, now rectified)

Srishti... Dr. ...(10)..
To...(9).. ...(10)
(Being the goods sold to Srishti for Rs.

12,000 credited to her as Rs. 2,000, now

rectified)
.(11). ...Dr. 2,500
2,500
To...(12)..
(Being the baddebts recovered wrongly
credited to Akshima, now rectified)

3
13 DC Limited purchased a machinery of Rs.3,00,000 on 1stOct., 2012 and Rs.3,00,000 8

on 1st Feb. 2013. Company purchased one more machinery on 1slApril 2013 for
Rs.2,00,000. Company sold one machinery for Rs.2,10,000 on 30m June 2014 which
was purchased on 1stOct. 2012. Company purchased on second hand machinery on

the same day for Rs.1,0o,000. Rate of Depreciation is 10% p.a. by Straight Line

Method and closes its accounts on 31stMarch every year.

Prepare Machinery Alc, Machinery Disposal A/c and Provision for Depreciation A/c.
OR
AB Ltd., purchased a Plant on 1st July, 2005 for Rs.15,000. It purchased another
plant on 1st Jan., 2006 costing Rs.20,000 and on 1st Oct., 2006 costing Rs.30,000.
On 1st April, 2007 the Plant purchased on 1st July, 2005 became useless and was
sold for Rs.2,000. Show Plant Account charging 10% p.a. depreciation by fixed
instalment method for four years. The plant purchased on 1st Jan., 2006 was sold for
Rs.8,000 on 1st April, 2008. Accounts of the company are closed on 31st Marcheach

year.
PART-B
14. What is SingleEntrySystem?
15. What is the basis of accounting followed while preparing Income and Expenditure 1
Account.
16. Name the account which shows classified summary of transactions of a Cash Book
in a Not-For-Profit Organisation.
17. Kashishstarted a business with a capital of Rs.5,00,000. At the end of the year his 3
position was as follows:
Particulars Amount
Plant and Machinery 3,00,000
Office furniture 1,00,000
Stock 2,80,000
Sundry debtors 1,50,000
Bank balance 80,000
Cash in hand
20,000
4
 During the year Kashish introduced further capital of Rs.1,00,000 and withdrew for personal

use Rs.40,000.SundrycreditorsattheendwereRs.90,000.Calculateprofitorloss.

18. Prayas Foundation for women empowement is formed to provide jobs to unemployed 3
women. ldentify the values involved (any three).
19 Calculate Net Income from the following information:
Purchases (100 Units) 50,000
Carriage and Freight 6,000
Rent and Advertising 3,000
Sales (75 Units) 54,000

20 Computerised Accounting is much better than Manual Accounting' Justify this

statement by giving a comparison of Manual Accounting and Computerised

Accounting.
21
21 Show the following information in the Balance Sheet of the Cosmos Club as at 31st 4

March,2007:
Particulars Debit Credit

Tournament Fund 3,00,000

Tournament Fund Investment 3,00,000

Income from Tournament fund 36,000

investment

Tournament Expenses 24,000

Additional Information:
interest accrued on Tournament fundinvestment Rs.12,000.
ExplainReadymadeandCustomizedsoftwarewiththeiradvantages. ( two each) 3+3-6
22
following 6
23 Prepare Income and Expenditure Account and Balance Sheet form the

Receipts and Payments Account and the Balance Sheet of Rahat Club.

5
 Receipts and Payments Account
2016 Cr.
Dr. for the year ended 31st December,

Receipts (Rs.) Payments (Rs.)

To Balance b/d 8,500 By Saalry
To Subscription: 2015 4,000
2015 400 2016 3,000 4,000
2016 10,000 By Refreshment Exp. 2,000
2017 250 10,650 By Audit Fees 1,500
To Entrance Fees 2,000 By Conveyance 3,500
To Interest on Investment 800 By Sports Equipments 6,000
To locker's Rent 650 By Balance c/d 5,600
22,600 22,600

Balance Sheet
As at 31st December, 2015
Liabilities (Rs.) Assets (Rs.)
Capital Fund 17,000 10% Investment 10,000
Advance Subscription 600 Subscription Outstanding 600
Salary Outstanding 1,500 Cash 8,500
19,100 19.100
24 The following is the trial balance of Ram Krishna on 31st March, 2017, Prepare 8
Trading and Profit and Loss account and Balance Sheet.
Name of Accounts Dr(Rs.) Cr. (Rs.)
Drawing and Capital 15,000 47,000
Purchase and Sales 80,500 1,57,000
Debtors and Creditor 28,400 30,600
Discount 2,400 1,500
Stock (1-4-2016) 32,500
Wages 7,000
Establishment Charges 8,500

6
Rent 10,000
Power 6,400
Furniture 10,000
Machinery 20,000
Investmeent 10,000
10% Bank Load 15,000
Interest on Loan 1,000
Direct Expenses 4,500
Trade Expenses 3,600
Insurance 2,800
Cash at Bank 8,500

2,51,100 2,51.100
Adjustments:
i. Closing Stock Rs.34,000
ii. Rent is paid for 10 months.

ii. Wages outstanding Rs.1,500 and Salary outstanding Rs.2,0000

iv.
iv. Depreciate Furniture and Machinery by 10% p.a.

V.Interest on investment is accrued @8% p.a.

vi. Manager is entitled to 10% commission on net profit before charging his
commission.
OR

From the following information and with the help

of trial balance, prepare a Trading
and Balance Sheet as on 31st March, 2017:
Account, Profit and Loss Account
Dr. Balance (Rs.) Cr. Balance (Rs.)
18.000 Capital 98,000
Stock on 1st April
85.000 Sundry Creditors 30,000
Purchases
2.800 Bills Payable 1,500
Insurance
12.000 Sales 1,50,00
Salaries
10% Loan(1-7-2016) 0
1.500
Law Charges
16.000 Provision for D/D 30,000
Cash at Bank

7
Trade Expenses 1.000 Discount 900

Postage and Call 500 1,600

Plant & Machinery:
Balance on 1st April

1,00,000
Addition on 1st Oct.

10.000 1.10.00
Wages
Sundry Debtors 12.000
Furniture and Fixtures 20.600
Carriage in 10.000
Carriage Out 2.000
Rent and Taxes 1.000

Printing and Stationery 4.600

Drawing 4.000

10.000
,100 3,12,00

Adjustments:
. Stock on 31st March, 2017 was valued at Rs. 21,000
ii. Write off Rs. 600 ss bad debis. The provision for doubtful debts is to be
maintained at 5% on sundry debtors.
IIl. Create a provision for discount on debtors and creditors by 2%
iv. Provide depreciation on plant and machinery @ 10% p.a.
V. A fire occurred on 20th March, 2017 in the godown and stock of the value or
Rs. 8,000 was destroyed. it was insured and the insurance company admitted
the claim of Re. 5,000