RABINDRA VIDYA NIKETAN

PRACTICAL QUESTION PAPER

SUBJECTS -ACCOUNTANCY
Full mark -08 Time-20 minutes
1. XYZ ltd company has purchased a Plant and Machinery worth ₹ 10,00,000 on 1st October,2019
and made an expenditure on transportation ₹40,000 and also take an insurance worth ₹15,000 for
Insurance in transit for a safe deliver of the plant. And purchase a land for the Installation of the
Plant and machinery for ₹ 1,00,00,000 and paid 60,000 for the installation of the plant and
machinery. On 31st march 2021 the firm has again purchased a plant and machinery for ₹
2,00,000 by issue of equity shares of the company to the vendor and sold the first plant and
machinery at a loss of 10℅ after charging of depreciation on the same day. On 30th of November
2021 unfortunately the company factory was burnt out and 25℅ of the second machinery was
destroyed and the company has only taken the insurance for the plant and machinery for the
purpose of pilferage and non technical breakdown issues. Prepare Plant and Machinery Accounts
considering 10℅ depreciation at Diminishing Balance Method till the year 2022 assuming books
are closed on Accounting years. Show your workings clearly.

2. Mr x is an Accountant working in a factory wrongly posted

Interest on capital of ₹ 1000 as interest on drawings in the factory books of Accounts. You are to
pass the journal entries for the rectification of the books of Accounts of the Company.