SET 1

Candidates are required to give answers in their own words as far as practicable. Figures in the margin
indicate full marks.
Attempt all the questions.
Group "A" [11×1=11]
Very Short Answer Questions
1. Define book-keeping.
2. Mention any two objectives of accounting.
3. Write briefly about 'going concern concept'.
4. Mention any three items of current assets.
5. Define 'endorsement of cheque'.
6. Write the meaning of 'errors of omission'.
7. What is capital reserve?
8. Define 'revenue expenditure' with an example.
9. What is balance sheet?
10. Mention any two differences between government accounting and commercial
accounting.
11. List out any two objectives of preparing trial balance.
Group "B"
Short answer questions: [8×5=40]
12. A. Define 'double entry system'. Mention any two features of it. [1 + 2]
B. Consider the following transactions: [2]
a. Started business with cash Rs. 80,000 and bank balance Rs. 60,000
b. Purchased goods of Rs. 20,000 on cash and Rs. 7,000 on credit
c. Commission received in advance Rs. 5,000
d. Outstanding salary of Rs. 3,000
Required: Accounting equation
13. A. Cash and banking transactions are given below:
Jan-1. Opening balance of cash Rs. 60,000 and bank Rs. 50,000
Jan-15. Purchased goods for Rs. 15,000 and received a discount of 10%
Jan-24. Deposited cash into bank Rs. 20,000
Jan-28. Goods sold for Rs. 25,000 and received cash of Rs. 15,000 and
cheque of Rs. 9,500 in full settlement
Required: Triple column cash Book [3]
 B. Following sales transactions are given to you:
January 2: Sold to Anjita stationery:
50 dozens of pencil @ Rs. 120 per dozen
70 pcs of erasers @ Rs. 15 per erasers
Less: 10% trade discount
January 15 : Sold to Kriti stationery :
80 piece of register @ Rs. 150 per piece
120 piece of exercise book @ Rs. 130 per piece
January 20: Sold to Asmita stationery on cash:
30 pcs of rulers @ Rs. 90 per pcs
Required : Sales book [2]
14. The following transactions are given below:
a. Bank overdraft as per cashbook Rs. 60,000
b. Cheques issued Rs. 6,000 but only presented for payment Rs. 4,000
c . Cheques deposited but not yet credited by bank Rs. 5,000
d. Service charges debited by bank Rs. 100
e. A customer directly deposited in to bank Rs. 7,000 but not shown in
cashbook
f. Cheques received but entered twice in cashbook Rs. 1,000
Required : Bank reconciliation statement [5]
15. An unadjusted trial balance of POR Co. is given below:
Particulars Debit (Rs.) Credit (Rs.)
Capital 2,50,000
Purchases 1,20,000
Building 1,50,000
Rent 20,000
Bank loan 60,000
Cash at bank 80,000
Sales revenue 3,00,000
Plant and machinery 1, 70,000
Opening stock 35,000
Commission received 5,000
Wages 40,000
Total 6,15,000 6,15,000
Additional information:
a. Wages due Rs. 3,000
b. Appreciate building by @ 10% p.a.
c. Pre-paid rent Rs. 5,000
Required: Adjusted trial balance [5]
 OR
Rectify the following errors after preparation of trial balance:
a. Goods purchased from Ram for Rs. 56,000 was recorded as Rs. 65,000.
b. Sales book was over cast by Rs. 300.
c. Purchased goods from Hari for Rs. 12,000 but wrongly recorded in sales
book.
Required : Entries for rectification [2+1+2=5]
16. A company purchased a Computer for Rs. 2,50,000 on 1 st July 2018. On 1st
January 2019, the company purchased another computer costing Rs. 1,30,000.
On 30th June 2020, The computer purchased on July 1st 2018 was sold for
Rs. 90,000 and on the same date, another computer was purchased for
Rs. 1,00,000. The company charged depreciation @ 10% p.a. under straight-line
method. Accounts are closed on 31st December each year.
Required : Computer accounts for first three years [1+2+2=5]
17. The trial balance of ABC trading concern is given below:
Particulars Debit Rs. Particulars Credit Rs.
Legal expenses 21,000 Sales revenue 2,50,000
Salary 8,000 Creditors 15,000
Opening stock 20,000 Commission received 30,000
Purchase 1,15,000 Purchase return 5,000
Prepaid insurance 5,000
Audit fee 6,000
Furniture 1,00,000
Wages 8,000
General expenses 7,000
Factory rent 10,000
Total 3,00,000 Total 3,00,000
Additional information:
a. Closing stock at the end of the year was Rs. 40,000
b. Depreciation on furniture @ 10% p.a.
c. Prepaid insurance has been expired to the extent Rs. 3,000
Required : a. Trading account
b. Profit and loss account [2+3=5]
18. The balance sheet and receipt and payment account of a United Club are given
below:
Balance sheet as on 31st Chaitra 2078
Liabilities Amount (Rs.) Assets Amount (Rs.)
Capital fund 1,50,000 Plant 1,40,000
Advance subscription 5,000 Subscription due 3,000
Cash at bank 12,000
Total 1,50,000 Total 1,55,000
Receipt and payment account
For the year ended on 31st Chaitra 2079
Receipt Amount (Rs.) Payments Amount (Rs.)
To Balance b/d 12,000 By Rent 35,000
To Subscription 60,000 By Stationery 25,000
To Donation for furniture 30,000 By Investment 50,000
To Legacy 20,000 By Office expenses 7,000
To Entrance fee 5,000 By balance c/d 10,000
Total 1,27,000 Total 1,27,000
Additional information:
a. Depreciation on plant @ 10%.p.a.
b. Subscription due for the year Rs. 3,000
c. Prepaid Rent of Rs. 5,000
Required: a. Income and expenditure account b. Balance sheet [2+3=5]
19. A. A trader keeps his book of accounts under the single entry system. He
started a business with cash Rs. 65,000 in Baishak 1st 2079. His position on
Chaitra 31st 2079 is as follows:
Furniture Rs. 1,20,000 Computer and equipment Rs. 60,000
Account receivable Rs. 15,000 Creditors Rs. 30,000
Cash and bank Rs. 40,000
Additional information:
 Depreciation on furniture @ 5% p.a.
 He withdrew Rs. 15,000 during the year for personal use
Required: a. Closing statement of affairs. b. Profit and loss statement. [2+1=3]
B. The following information is given:
 Opening provision for doubtful debt Rs. 6,000
 Bad debt written off for the year Rs. 1,000
 Sundry debtors during the year Rs. 1,00,000
 Provision for doubtful is to be maintain @ 5% on debtors
Required : Provision for bad debts account [2]
 Group "C"
Attempt all the questions. [3×8=24]
20. The following transactions of ABC Co. are given below:
March-1: Started business with cash Rs. 75,000 and bank balance Rs. 60,000
March-5: Sold goods on cash Rs. 4,000
March-15: Purchased goods from Deepak for Rs. 30,000 and made partial
payment of Rs. 25,000
March-29: Paid wages of Rs. 6,000
March-25: Deposited cash into bank of Rs. 20,000
March-29: Paid to Deepak Rs. 4,500 in full settlement of the account
Required; a. Journal entries
b. Necessary ledger account
c. Trial balance [4+3+1=8]
21. The trial balance of ABC Company as on 31st December 2022
Particulars Debit (Rs.) Credit ( Rs.)
Opening stock 35,000
Plant 3,00,000
Debtors 45,000
Wages 15,000
Selling expenses 25,000
10% Bank Loan 1,20,000
Purchases 1,30,000
Prepaid salary 15,000
Carriage inward 5,000
Creditors 55,000
Salary 10,000
Investment 1,10,000
Advertisement 6,000
Capital 2,90,000
Sales revenue 4,20,000
Interest on loan 10,000
General expenses 20,000
Interest on investment 35,000
Goodwill 65,000
Cash and bank 50,000
Carriage outward 4,000
Furniture 75,000
Total 9,20,000 9,20,000
 Additional information:
a. Depreciation on furniture @ 10% p.a.
b. Outstanding wages Rs. 2,000
c. Stock at the end valued Rs. 70,000
d. Provision for tax @ 10% of net profit
Required: a. Statement of profit or loss as per NFRS
b. Statement of financial position as per NFRS [4+4=8]
22. A. You are given the following transactions of District Administration office,
Jhapa:
Magh-1: Issued a payment order to DTCO for the payment of furniture
purchase of Rs. 30,000
Magh-6: Issued a payment order to DTCO for the payment of bank
service charges of Rs. 10,000
Magh-15: Issued a payment order to DTCO of Rs. 20,000 to give advance
to Na.Su. Mr. Joshi for purchasing medicine
Magh-25: Procurement officer, Mrs. Rana presented the bill of dress
purchase of Rs. 20,000 against the advance of Rs. 18,000 and
issued a payment order to DTCO for the payment of excess
amount of expenditure.
Required: Journal voucher [1×4=4]
B. What is government accounting? Mention any three features of
government accounting. [1+3=4]

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