MARKING SCHEME- PRACTICE PAPER-1

1 Receive 1
OR
(C) At least two
2 (b) Debtor 1
OR
A) Intangible assets

3 .(c) Paid sons fees from her personal bank account ` 20,000 1
4 a) Current Assets 1
OR
(a) True
5 Pass Book 1
6 A) Debit Drawings Account, Credit Purchases Account 1
7 D) Suspense Account 1
OR
(b) One sided errors

8 c) Account holder in a bank 1

9 Concept of Consistency. 1
10 Imprest 1
11 Principle 1
12 False 1
13 False 1
14 Cash 1
OR
(a) Office furniture a/c

15 (b) Rs 2,56,000 1
16 True 1
17 (a)The concept of conservatism. This concept requires that profits should not to be recorded 3
until realised but all losses, even those which may have a remote possibility, are to be provided for in
the books of account.
(b) It states that expenses incurred in an accounting period should be matched with revenues during
that period. It follows from this that the revenue and expenses incurred to earn these revenues must
belong to the same accounting period.
Revenue is recognised when a sale is complete or service is rendered rather when cash is received.
Similarly, an expense is recognised not when cash is paid but when an asset or service has been
used to generate revenue

18 GST is a comprehensive indirect tax levied at the prescribed rate each time the supply is made of 3
goods and/or services or both by a registered taxpayer.
Characteristics- Comprehensive indirect tax
Destination based tax
Can be collected by a registered tax payer
Developing a common national market by one indirect tax
OR
CGST, SGST,IGST
19 One mark for each correct answer. 3
20 1.Error of principle 2. Error of commission 3. Error of partial omission (1 Mark seach) 3
21
Date Particulars L.F. Dr. Amount Cr. amount
Prepaid Rent A/c Dr. 3,000
To Rent A/c 3,000
Cash A/c Dr. 6,080
Discount A/c Dr. 320
To Sales A/c 6,400
Cash A/c Dr. 2,500
To Commission A/c 2,500
Cash a/c …Dr 600
To Bad debt Recovered a/c 600
(1 Mark seach)

22
1/2 narks for Jan 1,9,15 & 30 jan for remaining (1 marks each)

Cash Book (Cash and Bank Columns)

Date Particular V Cash Bank Date Particulars VN Cash Bank
s N
201 2015
5 To bal. b/d 18,000 ---- Jan 1 By bal. b/d ---- 8,000
Jan
1
Jan To Sales 20,000 --- Jan 9 By Bank c 15,000 ---
5
Jan To Cash C ----- 15,000
9
Jan 20 By Deepak ----- 9,200
Jan To ------ 9,000 Jan 22 By ---- 2,000
17 Cheque in Drawings
hand
Jan To Bank C 3,000 ---- Jan 22 By Cash C ------ 3,000
22
Jan To Cash C ------- 21,000 Jan 31 By Bank C 21,000 ----
31
Jan 31 By bal .c/d 5,000 22,800
TOTAL 50,000 45,000 TOTAL 50,000 45,000

23 6
(1 marks each)

Bank Reconciliation Statement

Particulars Dr. Cr.
Dr. Balance as per Pass Book 8,000 ----
Cheques issued but not presented for payment yet 4,200 ----
Cheques sent into bank, but not collected by bank ----- 5,300
Cheque banked and credited but omitted to record in 800 ------
Cash Book
Interest on overdraft charged by bank ----- 300
Cheques debited in Cash Book but omitted to be banked ------ 1,700
Amount wrongly credited by bank 400 -----
 Cr. Balance as per Cash Book 6,100
TOTAL 13,400 13,400

24
Depreciation for 2015-16 Rs 12,000 (1 marks)
Depreciation for 2016-17 Rs 22,000 (2 marks )
Depreciation for 2017-18 Rs 27,500 (3 marks)
Balance of Machinery a/c as on 31.03.2018 Rs 1,13,000
Profit on sales Rs 2,500.
OR
One mark for each correct difference

25 Trial Balance total Rs 1450000 (1/4 marks for each correct posting) 3

OR
a) Rent a/c …Dr
To Landlord a/c
(b) Printer a/c..Dr
To Office Expenses a/c
(C)Ghosh a/c …Dr
To Das a/c
(d) Repairs a/c ..Dr
To Building a/c 1 marks each
26 (d) Cost or market value (whichever is less) 1
OR
B) Excess of sales over cost of goods sold

27 (A) Rs 5,250 1
OR
(d) Financial position

28 Debit 1
29 Expenses which are not directly associated with purchase or manufacture of goods 1
30 Closing Stock Rs 15,000 3
31 I mark each for each correct difference 3
32 Debit profit & loss a/c-Rs 1475 and Net Debtor-Rs 75525 (2 marks Each) 4
33 4
(a) Salary a/c …Dr 6,000
To Outstanding salary a/c 6,000 (1 Marks each )
(b) Prepaid insurance a/c ..Dr 2,500
To Insurance a/c 2,500
(C) Accrued Commission ac…Dr 500
To Commission a/c 500
(d) Rent a/c …Dr 5,000
To Pre received rent a/c 5,000
OR
Gross Profit Rs 20,000 (2 Marks each)
Cost of goods sold Rs 80,000
34 Trading A/c and Profit and loss A/c For the year ending 31st march 2015 6

(1/ 2 marks for each correct posting)

Particulars Amount Particulars Amount(₹)

(₹)
To opening stock 40,000 By sales 1,60,000
To purchases 80,000 (-) Returns 3,000 1,57,000
(-) Returns 2,000 78,000 By Closing Stock 40,000
To wages 20,000
(+) O/S Wages 4,000 24,000
To import duty 2,000
To gross profit 53,000

1,97,000 1,97,000
To salary 40,000 By gross profit 53,000
To carriage Outward 3,000 By net loss 18100
To Bad debts 3,000
(+) New Provision 3,100

6,100
(-) Old Provision 4,000 2,100
To fire insurance 5,000
To advertisement 10,000
To depreciation on Machinery 6,000
To interest on loan 5000

72,100 72,100

Balance Sheet As at 31st March 2015

Liabilities Amount(₹) Assets Amount(₹)

12% loan 50000 Cash 7,000
O/s Wages 4,000 Investment 40,000
O/s Salary 4,000 Debtors 62,000
Creditors 30,000 (-) New Prov. 3,100
Capital 1,50,000 58,900
(-) Net loss 18100 Good will 8,000
Machinery 50,000
(-) Drawing 7,000 1,24900 (-)Dep 6,000 44,000
(LIC premium) B/R 15,000
Closing Stock 40,000

2,12900 2,12900
 OR

Trading A/c and Profit and loss A/c For the year ending 31st march 2021

(1/ 2 marks for each correct posting)

To Opening Stock 15,000 By Sales 1,80,000

To Purchases 1,09,000 By Closing Stock 30,000
To Manufacturing Wages 8,000
To Fuel, Power and Light 12,000
To GP 66,000
2,10,000 2,10,000
To Rent 4,000 By GP 66,000
To Bad Debt 500 By Interest on 300
Add Further B D 500 Loan
Less Provision for
DD(old) 1,000 0

By Commission 4,500

To Salaries 11,000 12,000

Add Outstanding 1,000
To Depreciation on Furniture 450
To NP 54350

70800 70800

Balance Sheet as on 31.03.2021

Liabilities Rs Assets Rs
Capital 1,00,000 Machinery 72,000
Add NP 54350
Less Drawings
(Income Tax) 5,500 148850
Sundry Creditors 13,000 Furniture 5000
Less Depreciation 450 4,550
BP 1,600 Loan to Manav 5,000
Rent Outstanding 600 Accrued Interest on Loan 200
Outstanding Salaries 1,000 Sundry Debtors 28,000
Less Further B D 500

27500
BR 6,000
Closing Stock 30,000
Cash in hand 20,000
165050 165050
Depreciation on Furniture
Rs 4,000 for full year
Rs 1,000 for 6 months