Subject: 11th Accountancy

Topic: Full Accounts FINAL Paper

Date of Test: 04.2.24
Total Marks: 80 marks
Time Limit: 3 hrs Confidence Holds Our Heads High

QUESTIONS

Question No. 1 and 2 are based on the given text. Read the text carefully and answer the questions:
Ram and Shyam are two friends who both have just attended their first class of accountancy. The friends were
intrigued by the different branches of accounting and their widespread application. Ram personally liked the
branch of accounting in which fund flow statement and budgetary control is used and that branch helps in
planning and controlling of operations. As the concept of accounting was further explored, they began
discussing the different users of accounting. Ram said that he finds it interesting that even the employees
demand information relating to business. Shyam said he finds more interesting the fact that even competitors
want information on the relative strengths and weaknesses of the enterprise and for making comparisons,
Shyam further said that even accounting helps owners to compare one year’s costs, expenses, and sales with
those of other years. However, they were quite shocked by the fact that the management-worker relations
were not taken into consideration in the accounting. Meanwhile, Ram and Shyam had an argument at the end
of the discussion. Ram was saying that accounting is an art whereas Shyam was saying that accounting is a
science. Their teacher came in and said something to them which made them stop the argument.

1. Which branch of accounting is liked by Ram? [1]

(a) Financial accounting (b) Management accounting
(c) Cost accounting (d) Tax accounting

2. Which limitation of accounting is being talked about by them? [1]

(a) Influenced by personal judgment (b) Omission of qualitative information.
(c) Based on historical costs (d) Incomplete information

3. Find in the following assuming GST Rate is 12%. [1]

Date Particulars LF Dr. Cr.
Purchases A/c Dr. ?
Input IGST a/c Dr. 30,000
To Cash A/c ?
To Discount Received A/c ?
(Being goods purchased from Shyam at
20% trade discount and 5% cash discount)
(a)Purchases Rs.2,60,000; Cash Rs.2,47,000 and Cash Discount Rs.13,000.
(b)Purchases Rs.2,50,000; Cash Rs.2,37,500 and Cash Discount Rs. 12,500
(c)Purchases Rs. 2,80,000; Cash Rs. 2,66,000 and Cash Discount Rs.14,000.
(d)Purchases Rs. 2,50,000; Cash Rs.2,67,500 and Cash Discount Rs. 12,500

4. Cheque received amount Rs. 46,000 from Mr. Z after cash discount @8%. Amount due from Z was? [1]
(a) 42,320 (b) 50,000
(c) 49,680 (d) 40,000

5. ‘Bank issued a demand draft for Rs. 15,000 in favour of Mayank. Bank charged Rs. 50 for issuing the
draft. effect in cash book would be [1]
(a) Credit side: Mayank 15,050 (b) Debit side: Mayank 15,050
(c) Credit side: Mayank 15,000, Bank Charges 50 (d) Debit side: Mayank 15,000, Bank Charges 50
6. From the following which is not a feature of Provision: [1]
(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

7. If the accounting information is based on facts and it is verifiable by documents, it has the quality of __.[1]
(a) Relevance (b) Reliability
(c) Understandability (d) Comparability

8. Given below are two statements, one labelled as Assertion (A) and the other labelled 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. [1]
(a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
(b) Both (A) and (R) are correct but (R) is not the correct explanation of (A)
(c) Only (R) is correct
(d) Both (A) and (R) are incorrect

9. The W.D.V. of an asset after 3 years of depreciation on reducing balance method @ 10 % p. a. is Rs.
58,320. What was its original cost? [1]
(a) 70,000 (b) 80,000
(c) 80,500 (d) 70,500

10. Which type of Ledger Accounts is not carried forward to next year? [1]
(a) Personal Accounts (b) Real Accounts
(c) Nominal Accounts (d) All of these

11. The arrangement of assets and liabilities in a particular order in the Balance Sheet is called _____ [1]

12. Provision for Doubtful Debts has a __________ balance. [1]

13. Pass the Adjustment entry for Commission due to manager @ 12% on net profit after charging such
commission. The profit before charging such commission was ` 1,12,000. [1]

14. Name the subsidiary book in which you would record the following transaction: Cheque received from
Aarav endorsed to Suhani on the same day. [1]

15. Bad Debts Recovered is a ___________ receipt. [1]

16. Freight paid on purchase of Machinery is debited to ___________ Account. [1]

17. From the following statements identify the Accounting Concept:- [3]
(a)Mishra Steel Limited purchased ball-point pens of Rs. 500. These were issued to the employees and
were still in use at the end of the year were not shown it as an asset in its financial statement.
(b)Kamal Foods Limited charges 10% p.a. depreciation on fixed assets as per one particular method years
after year.
(c)The entry of a new competitive firm, strike of workers and quarrel between Production Manager and
Sales Manager are not recorded in the books of accounts
18. Prepare Accounting Equation with the help of following information. [3]
(i) Commenced business with cash ₹700000
(ii) Purchased goods ₹50000 for cash and ₹5,000 on credit
(iii) Paid salary ₹10000 and ₹2000 is due.
(iv) Sold goods costing ₹20000 at a profit of 5000 and received half amount in cash.
(v) Commission of ₹2000 received in advance.

19.

20.

21.
22.

“OR”

23.

24. From the following transaction of M/s. Ridhima Sales, Kolkata, prepare Sales Book. [4]
March 1 Sold to M/s Gayatri Tea, Assam, vide Invoice No. 2005, @ chests of tea for Rs. 5000 per chest
less trade discount @5 %
March 4 Sold to M/s Mohan and sons Kolkata Vide invoice No.2006, 20kg Amul Butter Rs.250/Kg
less trade discount @ 5%
March 5 Sold to M/s. Gary & sons, Delhi vide invoice No. 2007, 20 Kgs Assam Tea Rs. 600/kg @ trade
discount less 5%. Freight (Rs. 1,000) and packing charges (Rs. 600) were separately charged
in the amount.
March 6 Sold 10 kgs of Amul butter To Ganguly bros. for cash @Rs.250/kg.
March 7 Sold of his furniture to Raman & Co. for Rs.10,000.

25. Enter the following transactions in three columnar cashbooks with cash, bank columns: [4]
2016
Oct 1 Cash in hand Rs. 5,000; Bank overdraft Rs. 9,500
Oct 3 Sold goods to Ram on credit Rs. 10,000
Oct 5 Bought goods from Mahesh for Rs. 8,000 & paid by cheque under 2% discount
Oct 7 Received two cheques from Ram for Rs. 4,000 & for Rs. 6,000
Oct 9 Cheque received from Ram for Rs. 4,000 was deposited in bank but cheque for Rs. 6,000 was
endorsed to Sohan in full settlement of his claim for Rs. 6,200
Oct 11 Withdrew cash from bank for office use Rs. 3,000
 Oct 15 Withdrew cash from bank for domestic use Rs. 2,000
Oct 18 Bought furniture for Rs. 4,000 & issued cheque. Also paid carriage charges Rs. 100
Oct 21 Bought goods for cash Rs. 3,000 & paid carriage charges Rs. 50
Oct 25 Goods sold for cash Rs. 5,000; 60% amount deposited in bank
Oct 27 Bank charged Interest Rs. 500 & bank charges were Rs. 200
Oct 30 Deposited the cash into bank in excess of Rs. 4,000

26. (COMPULSORY FOR DPS) X Ltd. has the following balances as on 1-4-2016:
Machinery A/c Rs.4,00,000
Provision for Depreciation A/c Rs.1,60,000
On 1st July, 2016, it was sold a machine bought for Rs.1,20,000 on 1st April, 2013 for Rs.30,000. and a
new machinery was purchased for Rs.1,25,000 on the same date.
Prepare Machinery A/c and Provision for Depreciation A/c and Machinery Disposal A/c for 2016-17 if
depreciation is provided @20% p.a. on reducing balance method. [4]
“OR”
st
A company has the following balances on 1 April, 2016:
Machinery A/c Rs.2,50,000
Provision for Depreciation A/c Rs.1,20,000
Depreciation was provided @20% p. a. on original cost method and accounts were closed on 31st March
each year. On 1st July, 2016, a part of machinery bought for Rs.1,00,000 on 1st July, 2013 was sold for
Rs.45,000 and a new machinery was purchased for Rs.1,25,000 on the same date. Prepare machinery A/c
and provision for Depreciation A/c and Machinery Disposal A/c for the year 2016-17.

27. On 30th September, 2008, Pass Book of Mr. Sanjay showed a balance of Rs. 2,200. You are required to
prepare Bank Reconciliation Statement with the help of the following information:
(i) Cheques of Rs. 27,000 have been issued, but cheques of Rs. 7,000 were presented before 30th
September and cheques of Rs. 15,000 have been presented in the month of October and rest of the cheques
were not presented at all.
(ii) Cash book has been overcastted by Rs. 200.
(iii) Amount wrongly debited by bank Rs. 8,000.
(iv) Cheques of Rs. 6,000 were sent to bank for collection, out of which cheques of Rs. 2,500 only were
collected in the month of September. Cheque of Rs. 1,600 was collected in the month October and rest of
the cheques were not collected at all.
(v) Interest allowed by bank Rs. 2,200.
(vi) Cheques recorded twice in the Cash Book in September, 2008 but sent to bank in October, 2008, Rs.
1,100. [6]

28. On 1st April, 2020, machinery was purchased for ₹ 80,000. On 1st September, 2021 new machinery
costing ₹60,000 was purchased. On 30th June, 2022, machinery purchased on 1st April, 2020 was sold at
a loss of ₹ 5000 and on 30th September, 2020 machinery purchased on 1st september, 2021 was sold for
₹20,000 and a new machinery for ₹50,000 was acquired. Depreciation was charged @ 10% p.a. on the
Straight line Method.
Prepare Machinery Account, provision for depreciation account for three years ending on 31st March,
2023. [6]

29. Trial balance of Khatau did not agree. He put the difference to suspense account and discovered the
following errors. [6]
i) Credit sales to Manas Rs. 16,000 were recoded in the purchases book as Rs. 10,000 and posted to the
debit of Manas as Rs. 1,000.
ii) Furniture purchased from Noor Rs. 6,000 was recorded through purchases book as Rs. 5,000 and
posted to the debit of Noor Rs. 2,000.
iii) Goods returned to Rai Rs. 3,000 recorded through the Sales book as Rs. 1,000.
iv) Old machinery sold for Rs. 2,000 to Maneesh recorded through sales book as Rs. 1,800 and posted to
the credit of Manish as Rs. 1,200.
v) Total of Returns inwards book Rs. 2,800 posted to Purchase account.
vi) In the sales book for the month of January total of page 2 was carried forward to page 3 as Rs. 1,000
instead of Rs. 1,200 and total of page 6 was carried forward to page 7 as Rs. 5,600 instead of Rs. 5,000.

30. From the following trial balance, prepare the trading and profit and loss account for the year ended 31st
March, 2023 and the balance sheet as at that date.
Name of Accounts Amt(₹) Name of Accounts Amt(₹)
Bills receivable 13,000 Sales 1,32,800
Furniture 24,000 Capital 1,00,000
Opening stock 9,000 Provision for doubtful debts 5,000
Purchases 60,000 10% Loan (1st October, 2022) 20,000
Sundry debtors 80,000 Discount received 800
Interest on loan 1,000 Sundry creditors 18,600
Insurance premium 1,800 Outstanding salaries 1,000
Wages & Salaries 30,600 Bad debts recovered 400
Rent 3,000
Bad debts 2,200
Cash at Bank 34,000
Depreciation of furniture 5,000
Advertisement 15,000
2,78,600 2,78,600
Additional Information
i. Closing stock ₹ 12,000.
ii. Goods costing ₹ 2,000 were distributed as free samples while goods costing ₹ 1,000 were taken by the
proprietor for personal use.
iii. Insurance premium includes Rs. 1,200 paid for the year ending 1st September. 2/3rd of the wages needs
to be transferred to profit and loss.
iv. Maintain provision for doubtful debts @ 5%. [6]
“OR”
The following is the Trial Balance of Sh. Siya Ram as at 31st March, 2016. Prepare Trading and Profit &
Loss Account and Balance Sheet from the same:
Dr. Balances ₹ Cr. Balances ₹
Materials Purchased 1,15,900 Sales 2,10,000
Administration Expenses 16,800 Outstanding Wages 800
Wages 42,700 Creditors 39,500
Freight 5,100 Capital 81,800
Rent 3,100 Bank overdraft 12,300
Debtors 36,400 Loan on Mortgage 16,000
Drawings 2,700 Income from Investments 900
Commission Paid 1,000
Commission Paid in Advance 400
Mortgage Interest 1,600
Loose Tools 5,000
Investments 8,500
Plant 60,000
Furniture 7,200
Leasehold Property 50,000
Patents 4,100
Depreciation on Furniture 800
3,61,300 3,61,300
Adjustments
(i) Closing Stock amounted to ₹20,000.
(ii) Make a provision for Doubtful Debts at 5% on debtors.
(iii) General Manager is to be allowed a Commission of 5% on Net Profit before charging his Commission.

31. The following information is available from Sachin, who maintains books of accounts on Single entry
system:
Particulars On 1st April, 2009 (Rs.) On 31st March, 2010 (Rs.)
Cash and Bank 20,000 21,000
Sundry Debtors 17,000 25,000
Stock 40,000 60,000
Furniture 29,000 29,000
Sundry Creditors 32,000 22,000
10% loan from Mrs. Sachin 30,000 30,000
Sachin withdrew Rs. 5,000 from the business every month for meeting his household expenses. During
the year, he sold investments held by him privately for Rs. 35,000 and invested the amount in his business.

At the end of the year 2009-10, it was found that full year’s interest on loan from Mrs. Sachin has not
been paid. Depreciation @ 10% per annum was to be provided on furniture for the full year. Shop assistant
was to be given a share of 5% on the Profits ascertained before charging such share.
Calculate profit earned during the year ended 31st March, 2010 by Sachin. [6]

***END OF EXAMINATION***