ANSWER KEY

FIRST SEMESTER EXAMINATION

XI – ACCOUNTANCY MARKS-100

2017-18 TIME-3 HRS

1. Any 2 differences between Book – Keeping and Accounting to be given.(1/2 + ½ = 1)

Book keeping is the primary stage /basis of accounting. The objective is to maintain a systematic record of

financial transactions. Accounting is the secondary stage and begins where book keeping ends. The objective is

to ascertain net results of operations and financial position.

2. i.)Capital /Loan ii.)Debtors (1/2 + ½ = 1)

3. This is in accordance with the accounting /business entity concept. (1)

4. Quality of staff. (1)

5. Any 1 difference between IFRS and Indian GAAP / AS to be stated. (1)

IFRS are principle based and are based on fair value concept. GAAP /AS are rule based and are based on historical cost concept.

6. The advance received should be treated as a liability because Rohit has not yet made the sales.(1)

7. A debit cash balance signifies cash in hand while a debit bank balance signifies balance lying deposited in the

bank. (1/2 + ½ = 1)

8. Those entries which appear on both sides of the double column cash book are called contra entries. Eg. Cash

deposited in bank, cash withdrawn from bank for business use.(any 1 eg.) (1)

9. Rs 6000 transferred from SBI to PNB will be shown on the receipt side of PNBs cash book (bank column) and

payment side of SBIs cash book (bank column). (1)

10. No it should not be credited to debtors account but to bad debts recovered account as it’s a gain (1/2 + ½=1)

11. Trade discount. Its not recorded separately in the books of accounts, instead purchases are recorded at net

value. (1/2 + ½=1)

12. a.)Conservatism / Prudence concept.

b.)Accounting Period concept

c.)Money measurement concept (To be explained clearly) (3*1=3)

13.a.)Profit= Revenue – Expenses = 300000, total assets = 300000 + 400000+ 100000 =Rs 800000

b.)Capital = 500000 – 200000(creditors) – 200000(bank loan) = Rs100000 (1.5 + 1.5 =3)

14.Any 3 objectives of preparing a Trial Balance to be stated. (3*1=3)

a.)To check the arithmetical accuracy of transactions recorded in journal, ledger accounts.

b.) To facilitate preparation of financial statements- trading & P&L a/c and B/S.

c.)To help in detection of errors.

15.Closing stock = Rs 20000, Sales = Rs 10000, Purchases = Rs 20000 (1/2+1/2+1/2)

Cost of goods sold = Opening stock + Purchases - Closing stock = Rs 20000 (1.5)

Gross loss = Cost of goods sold - Sales = Rs 10000.(1)

16. Utility of accounting information to Management, Banks & financial institutions , Researchers and

Investors to be explained. (4 * 1=4)

a.)Management-Analyse profitability, liquidity, take managerial decisions.

b.)Banks & financial institutions-Information on co.s creditworthiness,loan repayment ability

c.)Researchers-Accounting theory, business practices,indepth studies

d.)Investors-Information on risks & returns on investments

17.Operating profit = G/P – Operating expenses = Rs (440000-277700)= Rs162300 (2)

N/P = Operating profit – Non operating expenses + Non operating incomes = Rs(162300 - 40000 +56000)

=Rs 178300. (2)

18. ASSETS = LIABILITIES + CAPITAL

a.)Cash 50000 + Stock 30000 = 0 + 80000

b.)Cash 20000 + Stock 80000 = Karan 20000 + 80000

c.) Cash 75000 + Stock 40000 = Karan 20000 + 95000

d.) Cash 65000 + Stock 40000 = Karan 20000 + 85000

e.) Cash 65000 + Stock 40000 = Karan 20000 + 83000

Outstanding rent

2000

f.) Cash 64000 + Stock 40000 = Karan 20000 + 83000

+Unexpired insur ance 1000 Outstanding rent

2000

Rs 105000 = Rs 105000 6*1=6

19. Book of Mr. Ashok Trading Company

Petty cash book

Amount

Received(Rs)

Date Particulars Amounts

paid

Analysis of Payments

ConveyancePos & Tel Prin &Stat Misc.

800

2016,Sept01 Sept 01

Sept 04

Sept 06

Sept 10

Sept 14

Sept 18

Sept 20

Sept 22

Sept 25

Sept 28

Sept 29

Sept 30

Cash taxi fare pens, pencils files, folders Printing charges courier charges stamps bus fare office cleaning Auto fare Fax Charges Refreshment Recharge coupons

Rs 30

Rs 15 Rs 41 Rs 40 Rs 17 Rs 20 Rs 35 Rs 20 Rs 50 Rs 48 Rs 30 Rs 60 406

30 15

41

40

17

20

35 20

50

48 30

60 115 145 96 50

800

394

406

Sept 30

Oct 1

Bal c/d

Bal b/d

Cash received

394 800

20. Bank Reconciliation Statement of M/s Ashima Travels as on 31st July, 2006

Particulars Amount (+) Amount (-)

Bank overdraft as per Cash Book 45000

Cheques issued but not presented for payment 17500

Cheques deposited but not yet collected by the bank 9600

Interest on investment collected by the bank 2300

Bank charges debited by the bank 350

Bank overdraft as per Pass Book 35150

54950 54950

6*1=6

21.Journal Proper (Narration & complete format required)

i.)Depreciation a/c Dr 250000

To machinery a/c 250000

ii.)Salary a/c Dr 110000

To outstanding salary a/c 110000

iii.)Loss by fire a/c Dr 100000

To purchases a/c 100000

iv.)Prepaid insurance a/c Dr 18000

To insurance a/c 18000

v.)Interest on capital a/c Dr 240000

To capital a/c 240000

vi.)Free samples/advertisement /sales promotion a/c Dr 3500

To purchases a/c 3500 6*1=6

22.Purchases Book

2016, April 1 - M/s R Ltd :

100 pieces long cloth @ 200 = Rs 20000

50 pieces shirts @ 100 each = Rs 5000

less trade discount @ 10%. = Rs 2500 Rs 22500

April 15 - Bihari Ltd. : 200 pieces of terrycot @ Rs.100 = Rs 20000 10 pieces of shirts @ Rs. 100 = Rs 1000 Rs 21000 Rs 43500 (4)

a.) April 10 - Purchase for cash from Arya Mills : 100 pieces @ Rs. 100 – cash book(1) CASH BOOK 2016 To bal c/d 10000 2016 By purchases 10000

April 30 April 10

b.) April 25 - Purchased a computer on credit from Ramlal @ Rs. 45,000 – journal proper(1)

Computer/office equipment a/c Dr 45000

To Ramlal a/c 45000

23. Trial Balance as on: (6)

Name of the account Amount (Dr.) Amount (Cr.)

Prepaid Expense 5,000

Profit & Loss A/c (Profit) 8,000

Outstanding Rent 2,000

Bad Debts Recovered 4,000

Interest on Investment 1,000

Due to Mohan 5,000

Bank overdraft 2,000

Discount Allowed 800

Due from Vinod 1200

Investment 15000

Patents 4000

Machinery 6000

Capital 10,000

Total 32000 32000

24. Dr. Cash a/c Cr.

Date Particulars Amount(Rs) Date Particulars Amount(Rs)

Apr 1

3

16

May 1

To capital

To sales

To Suresh

To bal b/d

100000

18250

11000

129250

53350

Apr 2

3

25

25

30

By furniture

By purchases

By office rent

By drawings

By bal c/d

9000

58900

5000

3000

53350

129250

Dr. Purchases a/c Cr.

Date Particulars Amount(Rs) Date Particulars Amount(Rs)

Apr 3

15

May 1

To cash

To Ramesh

To bal b/d

58900

9500

68400

68400

Apr 30 By bal c/d 68400

68400

Dr. Sales a/c Cr.

Date Particulars Amount(Rs) Date Particulars Amount(Rs)

Apr 30 To bal c/d 33500

33500

Apr 3

3

7

May 1

By cash

By discount allowed

By Suresh

By bal b/d

18250

50

15200

33500

33500

Dr. Suresh a/c Cr.

Date Particulars Amount(Rs) Date Particulars Amount(Rs)

Apr 7 To sales 15200

15200

Apr 12

16

16

By sales returns

By cash

By discount allowed

4000

11000

200

15200

25.JOURNAL ENTRIES :

i.)Machinery a/c Dr 10,30,000

To cash a/c 10,30,000

ii.)Cash a/c Dr 6000

Bad debts a/c Dr 9000

To Bhupesh a/c 15000

iii.) Cash in hand a/c Dr 20000

Sundry debtors a/c Dr 60000

Stock of goods a/c Dr 40000

Plant a/c Dr 50000

Building a/c Dr 100000

To Sundry creditors a/c 100000

To capital a/c 170000

iv.)Bank charges a/c Dr 500

To bank a/c 500

v.)Cash a/c Dr 9000

To bad debts recovered a/c 9000

vi.)Cash a/c Dr 50000

To Commission received in advance a/c 50000

vii.) Salary a/c Dr 24000

To outstanding salary a/c 24000

(Narration & proper format required) (1+1+2+1+1+1+1=8)

26. Trading & P&L a/c of MMN, for the year ended 31st December,2016

PARTICULARS AMOUNT(RS) PARTICULARS AMOUNT(RS)

Opening Stock Purchases 42160 less

Purchase returns 8460

Coal, gas and water Wages Carriage inward G/P c/d Salaries Bank charges Rates and taxes Trade expenses Fire insurance

26420

33700

140 21470 4370 3370

89470 4670 720 840

1990 490

8710

Sales 91230

Less

Sales returns 1760

G/P b/d

Apprentice premium

Discount

N/L transferred to capital

89470

89470

3370

500

120

4720

8710

B/S of MMN, for the year ended 31st December,2016

Liabilities Amount(Rs) Assets Amount(Rs)

Capital 90000

Less N/L 4720

Less Drawings6480

Bills payable

Creditors

78800

2470

12170

93440

Land and building

Plant and machinery

Furniture

Bills receivable

Debtors

Cash at bank

Cash in hand

25000

14270

1250

1270

37800

13000

850

93440

(2+3+3=8)

27. Double column/Bank column cash book (4+4=8)

Dr. Cr.

Date Particulars Cash(Rs) Bank(Rs) Date Particulars Cash(Rs) Bank(Rs)

2017

Jan 1

5

10

13

22

24

26

29

31

Feb 1

To bal b/d

To furniture

To Khanna & co

To cash (C)

To Rahim & co.

To Khanna bros

To bank (C)

To sales

To cash (C)

To bal b/d

5000

3000

3175

1000

10000

22175

18675

9000

7000

2000

2500

1500

22000

14950

2017

Jan 9

13

18

18

20

26

31

31

By Patel

By bank(C)

By Khanna & co.

By bank charges

By drawings

By cash(C)

By bank(C)

By bal c/d

2000

1500

18675

22175

3000

2000

50

1000

1000

14950

22000

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