Q. NO. | QUESTION | MARKS |
PART A : FINANCIAL ACCOUNTING-I |
1. | Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented? Reliability (c) Relevance Comparability (d) Understandability
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2. | Which external user of accounting information is most interested in knowing the long term solvency position of the firm? Employees (c) Management Bank and Financial Institutions (d) Researchers
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3. | ‘Closing Stock is valued at lower of cost or market price.’ Which concept of Accounting is applied here?
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4. | Accrual basis of Accounting Does not give a true and fair view of profit and financial position. Gives a true and fair view of profit and financial position. May or may not give a true and fair view of profit and financial position. None of these.
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5. | Bank overdraft is Short-term liability (c) long-term liability Contingent liability (d) None of these.
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6. | ‘X’ commenced business on 1st April, 2013 with a capital of Rs.6,00,000. On 31st March, 2014 his assets were worth Rs.8,00,000 and liabilities Rs.50,000. Find out his closing capital. Rs.7,50,000 (c) Rs. 2,00,000 Rs. 5,50,000 (d) None of these.
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7. | Akhil, who owed Rs.10,000 became insolvent. Rs.0.75 in a rupee was received from his estate. Amount received and credited to Akhil’s Account will be Rs.7,500 (c) Rs.2,500 Rs.10,000 (d) Rs.5,000
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8. | Mohit paid Rs.9,800 in settlement of his account of Rs.10,000. Discount Allowed will be recorded in Cash book (c) Journal Book Both Cash Book and Journal (d) Petty Cash Book
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9. | Debt balance in the Cash book is equivalent to Overdraft as per Pass book Credit balance as per Pass book Overdraft balance as per Cash book
(d) None of these | 1 |
10. | Trial Balance is prepared to locate Error of Principle (c) Errors of Omission
(c) Compensating Errors (d) None of these. | 1 |
11. | The W.D.V. of an asset after three years of depreciation on reducing balance method @ 15%p.a. is Rs.49,130. What was its original value? Rs.40,000 (c) Rs.80,000 Rs.45,000 (d) Rs.70,250
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12. | On 29th August, 2017, Mudit draws a bill on Paresh for one month, the due date will be …….. 2nd October, 2017 (c) 29th September, 2017 3rd October, 2017 (d) 1st October, 2017
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13. | Purchased goods from Gopal for Rs.3,600 but was recorded in Gopal’s A/c as Rs.6,300. In the rectifying entry, Gopal’s A/c will be debited with: Rs.9,900 (c) Rs.2,700 Rs.3,600 (d) Rs.6,300
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14. | Complete the following: The management of a firm is remarkably incompetent, but the firm’s accountant cannot take this into account while preparing books of accounts because of ………… concept. If a firm believes that some of its debtors may ‘default’, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ………… concept. The ………….. concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
OR ‘Accounting Standards have been evolved to improve the reliability and credibility of Financial statements. Accounting standards provide the solution in case of conflicts among various groups.’ In the light of this statement, enumerate the objectives of accounting standards. | 3 |
15. | Accounting provides information about the profitability and financial soundness of a concern. In addition, it provides various other valuable information also. However, accounting has certain limitations. Explain any four of such limitations.
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16. | Enter the following transactions in a Two Column cash book of Gupta Stationery House with cash and Bank column: Date | Transaction | Amount (Rs.) | 1.1.2016 | Cash in hand Bank Overdraft | 15,000 8,000 | 8.1.2016 | Received a cheque from ram | 2900 | 10.1.2016 | Ram’s cheque deposited into bank |
| 15.1.2016 | Withdrew from bank | 6000 | 20.1.2016 | Sold goods for cash | 5000 | 22.1.2016 | Paid to Gupta by cheque | 9000 | 28.1.2016 | Paid wages | 150 | 30.1.2016 | Withdrawn from bank to pay rent of house | 2000 |
OR Enter the following transactions in the Cash Book with Cash and Bank Columns:− 2016 | | (₹) | June 1 | Cash in hand | 800 | | Bank Overdraft | 5,700 | 7 | Received a cheque from Bharti | 3,250 | 9 | Deposited the above cheque into bank | | 12 | Paid to Bhavana by cheque | 2,425 | 15 | Bharti's cheque returned dishonoured | | 20 | Withdrew from Bank for office use | 250 | 25 | Cheque received from Panna Lal and endorsed it in favour of Kamal on 28th June | 1,200 | 30 | Income Tax paid by cheque | 150 | 30 | Bank charges | 25 |
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17. | Complete the following Rectification Entries: S.No. | Particulars | L.F. | Dr.(Rs.) | Cr.(Rs.) |
1.
2.
3.
4. |
……… Dr. To ……….. To ……….. (Furniture purchased for Rs.5,000 wrongly debited to purchase account as Rs.500, now rectified) |
|
……….
2,000
3,000
………. |
………. ……….
2,000
3,000
……… | ……… Dr. To ……….. (Sale of machinery wrongly recorded in sales book, now rectified) | ……… Dr. To………… (Total of sales return book not posted to ledger, now rectified) | ……… Dr. To………… (Purchase book undercast by Rs.1,000) |
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18. | Pass entries in the books of Mr. Roopani of Gujarat assuming CGST @ 9% and SGST @ 9%. Purchased goods for Rs.2,00,000 from Suryakant of Jaipur (Rajasthan) on Credit. Sold Goods for Rs.1,50,000 to Mr. Pawar of Mumbai (Maharashtra) and the cheque received was sent to bank. Sold goods for Rs.2,50,000 within the state on credit. Paid insurance premium of Rs.20,000 by cheque.
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19. | On 31st March, 2017 bank pass book of Mohan showed a balance of Rs.15,000 to his credit. Before that date, he had issued cheques amounting to Rs.8,000, of which cheques amounting to Rs.3,200 have so far been presented for payment. A cheque of Rs.2,200 paid by him into the bank on 26th march is not yet credited in the pass book. He had also received a cheque for Rs.500 which although entered by him in the bank column of cash book, was omitted to be paid into the bank. On 30th March, a cheque for Rs.1,570 received by him was paid into the bank but the same was omitted to be entered in the cash book. There was a credit of Rs.150 for interest on current account and a debit of Rs.25 for bank charges.
Show the bank reconciliation statement. | 6 |
20. | On 1st January, 2018, A sold goods to B for Rs.1,00,000 received Rs.25,000 in cash and drew two bills, first Rs.45,000 and second for Rs.30,000 of two months each. Both bills were duly accepted by B. First bill was endorsed to C in settlement of his account of Rs.45,000 and second bill was discounted from the bank at the rate of 12% p.a. On the due date of these bills, both bills were dishonoured. C has paid Rs.100 and bank has paid Rs.80 as noting charges. Pass journal entries in the books of A. | 6 |
21. | A company whose accounting year is a financial year, purchased on 1st July, 2015 machinery costing ₹ 30,000.
It purchased further machinery on 1st January, 2016 costing ₹ 20,000 and on 1st October, 2016 costing ₹ 10,000.
On 1st April, 2017, one-third of the machinery installed on 1st July, 2015 became obsolete and was sold for ₹ 3,000.
Show how Machinery Account would appear in the books of the company. It being given that machinery was depreciated by Fixed Instalment Method at 10% p.a. What would be the value of Machinery Account on 1st April, 2018? OR On 1st April, 2005, Z Ltd. Purchased machinery for Rs.1,20,000 and on 30th September, 2006, it acquired additional machinery for Rs.20,000. On 30.06.2007 one of the original machine (purchased on 1.4.2005) which had cost Rs.5,000 was found to have become obsolete and was sold as scrap for Rs.500. On the same date a new machine was purchased for Rs.8,000. Depreciation is to be charged @ 15% p.a. on written down value. Accounts are closed on 31st March each year. Show Machinery account for the first three years. | 8 |
PART B : FINANCIAL ACCOUNTING-II |
22. | If sales are Rs.60,000 and rate of Gross Profit on Cost of Goods Sold is 25%, cost of goods sold will be Rs. 45,000 Rs. 50,000 Rs. 48,000 None of these
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23. | Income tax paid by a sole trader is shown On the debit side of the trading Account. On the debit side of the Profit and Loss Account. As deduction from capital in the Balance Sheet. As addition to capital in the balance sheet.
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24. | Single Entry system can be adopted by Small Firms (c) Co-operative Societies Joint stock companies (d) None of these.
| 1 |
25. | ‘A computer system is capable of performing many things.’ List any two capabilities of a computer system. | 1 |
26. | Which of the following is a limitation of a computer: Speed (b) Accuracy (c) Intelligence
| 1 |
27. | Which of the following is not an input device: Scanner (b) Keyboard (c) Monitor
| 1 |
28. | What is Accounting Information system? | 1 |
29. | From the following balances taken from the books of Simmi and Vimmi Ltd. For the year ending March 31, 2014, calculate the gross profit. Particulars | Amount (Rs.) | Closing stock | 2,50,000 | Net sales during the year | 40,00,000 | Net purchases during the year | 15,00,000 | Opening stock | 15,00,000 | Direct expenses | 80,000 |
OR Calculate closing stock from the following details: Opening stock-Rs.20,000; Cash Sales-Rs.60,000; Credit sales-Rs.40,000, Purchases-Rs.70,000. Rate of Gross Profit on Cost 33.33%. | 3
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30. | ‘Computerised Accounting is much better than Manual Accounting.’ Justify this statement by giving a comparison of Manual Accounting and Computerised Accounting. OR Computerised accounting system is the best form of accounting system. Do you agree? Comment. | 4
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31. | Hari maintains his books of account on Single entry System. His books provide the following information: 1st April,2018 (Rs.) 31st March, 2019 (Rs.) Furniture 2,000 2,000 Stock 28,000 30,500 Sundry Debtors 21,000 34,000 Cash 1,500 2,000 Sundry Creditors 17,500 19,000 Bills Receivable ------ 3,000 Loan ------ 5,000 Investments ------ 10,000 His drawings during the year were Rs.5,000. Depreciate Furniture by 10% and provide a reserve for bad and Doubtful Debts at 10% on Sundry Debtors. Prepare the statement showing the profits for the year. | 6 |
32. | From the following Trial Balance of Abhinav Kumar as at 31st March, 2014, prepare Trading and Profit and Loss Account and Balance Sheet. Particulars | Dr. | Cr. | Debtors and Creditors Building Furniture and Fixtures Machinery Return inward and outward Stock on 1st April, 2013 Purchase and sales Bad- debts Carriage Inward General expenses Bad- Debts Provision Bank Loan Interest on Bank Loan Commission Insurance premium Repairs Salaries Cash in hand Capital | 3,000 30,000 2,640 14,000 2,300 8,000 43,800 900 700 600
300
2,000 2,600 4,400 5,000
| 11,000
1,600
66,040
700 5,000
900
35,000 |
| 1,20,240 | 1,20,240 |
Adjustments: Closing stock was valued at Rs. 4,000 Commission include Rs. 300 being commission received in advance. Salaries have been paid for 11 months. Bank Loan has been taken at 10% p.a. interest. Depreciate Building by 5% and Furniture and Fixtures by 10%.
OR From the following Trading and Profit and Loss Account for the year ended 31st March, 2020 and Balance Sheet as on the date, determine the missing information. Trading and Profit and Loss Account For the year ended 31st March,2020
Particulars | ₹ | Particulars | ₹ | To Opening Stock To Purchases 54750 Less: Returns 1250
To …………….
To salaries 33000 Add: …… ………
To General Expenses To Taxes & Insurance 12500 Add: Outstanding …. 13700 Less: Prepaid ……..
To Interest 1180 Add: outstanding 850
To Advertisement To Bad Debts 1250 Add: F. B.debts 1000 Add: New Provision1850 4100 Less: old Prov. (2000)
To Depreciation Building 3750 Furniture 640 Motor Vehicle 12500
To Net Profit
| 34600
53500  ……… ………
………
7820
……..
2030
4500
2100
16890
……… 99400 | By Sales 154500 Less: Return 2000
By Closing Stock
By Gross Profit
By Commission 3750 Less: Rec.in advance ….. |
152500 ……..  
………
……….
2500
 99400 | |
Balance Sheet as at 31st March, 2020 Liabilities | ₹ | Assets | ₹ | Creditors Bank Loan 28500 Add: Out. Interest 850 Outstanding taxes Outstanding salaries Commission rec. in advance Capital 125000 Add: Net Profit …… | ………
29350 1200 3000
1250
142360
 202160 | Cash Debtors …….. Less: Bad debt …….. Less: New Prov. ……..
Insurance prepaid Closing Stock Furniture 6400 Less: Dep …… Motor Vehicles 62500 Less: Dep. …... Building 75000 Less: Dep. …….. | 6500
35150
1000 32500
…….
………
…….. 202160 |
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