CARMEL CONVENT SR. SEC.

SCHOOL, BHEL, BHOPAL

ANNUAL EXAMINATION --- 2020-21
ACCOUNTANCY
DATE : . 16.02. 2021 TIME : 3 HRS
STD : XI M.M. : 80
GENERAL INSTRUCTIONS
i.There are 32 questions in the question paper. All questions are compulsory.
ii.Give importance to neatness and Performa.
iii.Questions no. 1 to 20 are Objective Type questions of 1 mark each.
iv.Question no. 21 and 22 carry 3 marks each.
v.Question no. 23 to 27carry 4 marks each.
vi.Question no 28 to 30carry 6 marks each.
vii.Question no 31 and 32 carry 8 marks
viii.There is internal choice in few questions. Only one of the choice in such questions to be attempted.
ix.In addition to this, separate instructions are given with each section and question, wherever necessary.

1. Why employee requires accounting information? [1]

2. What is the end product of accounting? [1]
3. What is error of omission? [1]
4. Define fictitious asset. [1]
5. What is the other name of balance sheet? [1]
6. Stock is valued at cost price or market price whichever is less as per which principle? Identify and explain
the principle involved. [1]
7. Differentiate between gain and profit. [1]
8. Define livestock. [1]
9. What do you understand by tangible assets? [1]
10. What is deferred revenue expenditure? [1]
11. ______ Basis of accounting suffers from personal judgement? [1]
12. _______ Basis of accounting is most suitable for profit making concerns? [1]
13. Define invoice. [1]
14. What is debit note? [1]
15. Why ledger is called book of final entry? [1]
16. What do you understand by narration? [1]
17. Cash column of cash book always shows a debit balance. Comment. [1]
18. What is dividend equalization reserve? [1]
19. Distinguish between provision and reserve on the basis of investment. [1]
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20. Calculate the due date if the bill is drawn and accepted on 12 June 2019 for 2 months. [1]

21. Show the impact on accounting equation by the following transactions. [3]
a) Started business with cash Rs 2,00,000; goods Rs 60,000 and furniture Rs 1,00,000.
b) Goods costing Rs 40,000 are sold for Rs 50,000.
c) Received commission Rs 2000 and interest Rs 5,000

22. Prepare trial balance of Krishna enterprises from the following balances as on 31st march 2020.[3]
PARTICULARS AMOUNT PARTICULARS AMOUNT
Opening stock 21,000 Loose tools 44,000
Purchases 1,94,200 Bills receivables 36,000
Sales 1,61,000 Purchases returns 1,200
Bills payable 24,000 Discount allowed 4,000
Capital 1,20,000 Drawings 12,000
Advertisement 3,000 Bank overdraft 8,000
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23. Prepare bank reconciliation statement as on 30 June 2020. [4]
a) Credit Balance as per cash book stands Rs 4800.
b) Interest and dividend collected by bank Rs 300.
c) Amount wrongly credited by bank in pass book Rs 400.
d) Cheque issued but not presented for payment Rs 320.
e) Overcasting of payment side of cash book Rs 760.
OR
a) Balance as per pass book stands Rs 7200.
b) Draft issued by bank not recorded in cash book Rs 300.
c) Interest allowed by bank is Rs 240.
d) Direct deposit by customer in our bank account Rs 3400.
e) Cheque paid into bank for collection but not yet been credited Rs 710.

24. Bharat industries bought a machinery on 1st April, 2017 for Rs 80,000. On 1st may, 2018 it bought another
machinery for Rs 30,000.
On 31st march, 2019 the machinery bought on 1st April 2017 was sold for Rs 50,000. It bought a new
machine on the same date for Rs 27,000. It was decided to provide depreciation on machinery @ 20 %
p.a. on straight line method. Accounts are closed on 31st December each year.
Show machinery A/c for 3 years.
OR
Ajanta industries purchased a machinery for Rs 1,20,000 on 1st august, 2017. It was decided to depreciate
it @ 10 % p.a. on written down value method. On 1st July, 2019 one fourth of the machinery was damaged
and could realise only Rs 10,000. On the same date a new machinery was purchased for Rs 50,000.
Show machinery account from 2017-18 to 2019-20 assuming that books of accounts were closed on 31st
march each year. [4]

25. On January 1st, 2017 vibha sold goods worth Rs 18,000 to sudha and drew upon the latter a bill of
exchange for the same amount payable after two months. Sudha accepted vibha’s draft and returned the
same to vibha after acceptance. Vibha discounted the bill immediately with bank @ 12 % p.a.
However On maturity the bill was dishonoured and bank paid noting charges of Rs 200. Record the
necessary journal entries in the books of both the parties [4]

26. Pass rectification entries in the books of ashok from the following particulars: [4]
a) The total of sales return book was overcast by Rs 1,000.
b) Wages paid for installation of plant wrongly debited to wages a/c Rs 1000.
c) Discount Rs 500 allowed bysahu a creditor has not been entered in the books of accounts.
d) Sold goods to ramanRs 2000 was recorded in purchase book, but raman’saccount correctly
debited.
e) Bills receivable worth Rs 1800 received from debtor was entered in bills payable book though
correctly entered in the debtor;s account.
f) A sum of Rs 2500 collected from suraj a debtor, whose dues were already written off bad debts,
was posted to the credit side of suraj account.
g) Goods worth Rs 1500 bought by owner for personal use without any payment was wrongly
entered in purchase book.
h) Cheque received from ashok Rs 1200 was dishonoured and it has been debited to trade expense
account.

27. Present the following information in final accounts from the extract of trial balance: [4]
PARTICULARS DEBIT CREDIT
Debtors and Creditors 60800 40000
Bad debts and provision for doubtful debts 1000 4000
ADJUSTMENTS:
a) Further bad debts amounts Rs 800.
b) Create a provision for doubtful debts on debtors @ 10 %
c) Create a provision for discount @ 2 % on debtors and creditors.
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28. Prepare ledger accounts from the following journal entries (prepare only cash a/c; hero ltd; purchases
a/c and rent a/c) [6]

DATE PARTICULARS LF DEBIT CREDIT

2017 Cash a/c …Dr 2,00,000
APRIL 1 To Capital a/c 2,00,000
(being started business)
APRIL 3 Furniture a/c …Dr 20,000
To cash a/c 20,000
(being purchased furniture)
APRIL 5 Purchases a/c …Dr 50,000
To cash a/c 50,000
(being goods purchased)
APRIL 8 Purchases a/c …Dr 41,000
To vishal 25,000
To mohan 16,000
(being goods purchased)
APRIL 10 Vishal …Dr 5,000
To purchases return a/c 5,000
(being goods returned)
APRIL 14 Vishal …Dr 20,000
To cash a/c 19,000
To discount received a/c 1,000
(being amount paid)
APRIL 15 Cash a/c …Dr 40,000
To sales a/c 40,000
(being goods sold)
APRIL 18 Hero ltd …Dr 27,000
To sales a/c 27,000
(being goods sold)
APRIL 20 Drawings a/c …Dr 14,000
To cash a/c 10,000
To purchases a/c 4,000
(being cash and goods withdrawn)
APRIL 21 Mohan …Dr 8,000
To cash a/c 7,800
To discount received a/c 200
(being amount paid)
APRIL 22 Cash a/c …Dr 8,850
Discount allowed a/c…Dr 150
To hero ltd 9,000
(being amount received)

APRIL 25 Cash a/c …Dr 12,000

To sales a/c 12,000
(being goods sold)
APRIL 28 Purchases a/c …Dr 24,000
To pawan 24,000
(being goods purchased)
APRIL 30 Rent a/c …Dr 2,000
Salary a/c …Dr 4,000
To cash a/c 6,000
(being rent and salary paid)
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29. Enter the following transactions in cash book with cash and bank column of sumit: [6]
2020 Cash in hand 4,000
Jan 1 Bank overdraft 7,300
Jan 4 Received cheque from hari 5,000
Discount allowed 2000
Jan 6 Cheque of hari deposited in bank
Jan 8 Paid ram by cheque 4,300
Discount received 200
Jan 9 Sold goods to mohan of list price Rs 5,000 less 10 % trade discount plus
12 % IGST. Mohan agreed to pay cash.
Jan 11 Hari;s cheque dishonoured
Jan 13 Received cheque from manoj 3,900
Discount allowed 100
Jan 15 Cheque received from manoj endorsed to creditor gopal
Jan 17 Bank charge paid by bank Rs 400 plus CGST and SGST @ 6 % each.
Bank charged interest Rs 1,200
Jan 21 Sold goods against cheque and it was banked on the same day Rs 10,000
plus CGST and SGST @ 6%
Jan 28 Paid salary Rs 2,000 and rent paid Rs 1000.
Jan 31 Deposited the entire balance of cash into bank after retaining Rs 1,000 in
the office.

OR
2020 Balance of cash in hand Rs 4,000
Jan 1 bank overdraft Rs 8,000
Jan 3 Further capital introduced Rs 20,000 of which Rs 15,000 deposited in bank
Jan 5 Ram deposited the cheque of Rs 3,500 in our bank a/c
Jan 7 Settled the account of arun of Rs 4,000 by paying cash Rs 1,300 and Rs 2,600 by cheque.
Jan 9 Received cheque of hari Rs 2,500
Jan 11 Cheque of ram was returned dishonoured and bank debited our account by Rs 20.
Jan 13 Settled the account of gopal by endorsing cheque of hari and by giving cheque for Rs 2,300
in full settlement of Rs 5,000.
Jan 17 Discounted mohan;s bill of exchange for 3 months Rs 2,000 at 8 % p.a. from the bank
Jan 19 Kabir who owed us Rs 800 became insolvent and paid only 50 paisa in a rupee.
Jan 22 Bank charged interest Rs 600
Jan 25 Honoured our acceptance of bill of exchange to X by issuing cheque for Rs 2,100
Jan 26 Withdrew from bank Rs 3,000
Jan 27 Bank is instructed to issue bank draft in favour of rai for Rs 2,500
Bank charged commission Rs 100

30. [3+3=6]
A. Record the following transactions in the purchase book of M/s Raja computers Delhi:
2020 Bought computers from H.P Computers, Delhi
April 1 3 desktops @ Rs 20,000 each
4 laptops @ Rs 30,000 each
Trade discount @ 10 %, GST @ 18 %
April 9 Bought goods from Dell Computers, Bangalore for cash
5 laptops @ Rs 35,000 each
5 printers @ Rs 10,000 each
Trade discount @ 10 %, GST @ 18 %
April 14 Bought from goyal printers , Delhi
10 printers @ Rs 8,000 each
GST @ 18 % and carriage Rs 400
April 19 Purchased from rama computers, Bombay
5 laptops- apple @ Rs 40,000 each
GST @ 18%, packing charges Rs 1,000
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B. Identify and explain the principle highlighted in the following statement:
a) This assumption states that same accounting policies and practices should be followed
year after year.
b) Which principle focuses on preparation of foot notes? Explain
c) This concept states that accounting transactions should be free from personal bias.

31. The following balances appeared in the books of virat stores as on 31st march 2015. [8]
ASSET- Cash Rs 30,000; bank balance Rs 10,000; stock Rs 80,000; furniture Rs 7,200; debtors Rs 48,000
(X Rs 12,000 , Y Rs 16,000 and Z Rs 20,000)
LIABILITIES- Bank loan Rs 20,000; creditors Rs 25,000 (amrit Rs 10,000 and vijay Rs 15,000)
Following transactions took place during March 2015:

March 2 Bought goods from amrit for Rs 40,000 @ 10 % trade discount and cash discount @
2 %. Paid 60 % amount immediately.
March 4 Paid amrit Rs 24,000 in full settlement of his account by cheque.
March 6 Old newspaper sold for Rs 100 and old equipment sold Rs 1500.
March 7 Paid salary to motilal by cheque Rs 10,000
March 10 Received Rs 40,000 from subha which were written off as bad debt in the previous
year.
March 15 Provide 10 % depreciation on furniture.
March 19 Out of the rent paid this year 2000 is related to next year.
March 21 Paid fire insurance premium on building by cheque Rs 2,000 and life insurance
premium Rs 8,000 by cheque.
March 24 Goods worth Rs 40,000 destroyed by fire. Insurance company admitted a claim of 60
% of the amount.

32. From the following trial balance of m/s Arjun and sons as at 31st December 2016, prepare trading and
profit and loss account and balance sheet. [8]
Name of account Dr Cr
Drawing and capital 18,000 80,000
Purchases and sales 82,600 1,55,000
Stock (1.1.2016) 42,000
Return outward 1,600
Carriage inward 1,200
Wages 4,000
Power 6,000
Machinery 50,000
Furniture 14,000
Rent 22,000
Salary 15,000
Insurance 3,600
8 % bank loan 25,000
Debtors 20,600
Creditors 18,900
Cash in hand 1,500
2,80,500 2,80,500

ADJUSTMENTS:
a) Closing stock Rs 64,000
b) \wages outstanding Rs 2,400
c) Rent is paid for 11 months
d) Loan from bank was taken on 1stjuly 2016
e) Provide depreciation on machinery @ 10 % p.a.
f) Provide manager’s commission at 10 % on net profit before charging such commission.

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