PUBLIC EXAM MARCH -2023 – ANSWER KEY

XI STANDARD – ACCOUNTANCY – ENGLISH MEDIUM

Dr.A.VENNILA
PRINCIPAL
MYDEEN MATRIC. HR.SEC. SCHOOL
Time Allowed : 3 Hours MELACAUVERY – KUMBAKONAM.

Maximum Marks : 90 CELL NO.: 8220179521

8608481579

I. Choose the most suitable from the given four alternatives and write the option code and the
corresponding answer 20 x 1 = 20

A B
1 D Ready-made Accounting Software 1 A All Credit sales of goods
2 A Decreasing Every Year 2 D Ready-made Accounting Software
3 C Machinery 3 B Endorsement
4 D Printer 4 B Error of Principle
5 C An intangible Asset 5 A Balance Sheet
6 A Bank statement and bank column of 6 A Suspense Account
the cash book
7 C Assets of a business are capital to 7 A Current Period
the total of Capital and Liabilities
8 C Both a subsidiary and a principal 8 A Decreasing Every Year
book
9 B Asset is put to use 9 C Know the balance of each ledger
account
10 C The Institute of Chartered Accounts 10 A Bank statement and bank column of
of India the cash book
11 D Luca Pacioli 11 C Capital
12 A Balance Sheet 12 C Assets of a business are capital to the
total of Capital and Liabilities
13 B Error of Principle 13 C The Institute of Chartered Accounts
of India
14 C Capital 14 A The Balance Sheet, on the assets side
15 A Suspense Account 15 C Both a subsidiary and a principal
book
16 A The Balance Sheet, on the assets 16 C Machinery
side
17 C Know the balance of each ledger 17 D Printer
account
18 A Current Period 18 C An intangible Asset
19 B Endorsement 19 B Asset is put to use
20 A All Credit sales of goods 20 D Luca Pacioli
II. Answer any seven questions. Question No.30 is compulsory. 7 x 2 = 14
21) Parties interested in accounting information
a. Internal users: Owners, Management and Employees.
b. External users: Creditors, Investors, Customers, Tax authorities, Government, Researchers and
General Public.

22) Going concern concept

 It is the basic assumption that business is a going concern and will continue its operations
for a foreseeable future.
 Going concern concept influences accounting practices in relation to valuation of assets
and liabilities, depreciation of the fixed assets, treatment of outstanding and prepaid
expenses and accrued and unearned revenues.

23) Principles of double entry accounting system:

Personal Account Debit the receiver Credit the giver

Real Account Debit what comes in Credit what goes out
Nominal Account Debit all expenses and losses Credit all incomes and gains

24) Trial Balance

S.No. Name of account Debit balance Credit balance
i Carriage Outwards Debit ----
ii Sales --- Credit
iii Investment Debit ----
iv Bad Debts Debit ---

25) Journal Proper – Meaning:

 Journal proper is a residuary book which contains record of transactions, which do not find a place in
the subsidiary books such as cash book, purchases book, sales book, purchases returns book, sales
returns book, bills receivable book and bills payable book.
 Thus, journal proper or general journal is a book in which the residual transactions which cannot be
entered in any of the sub divisions of journal are entered.
26) Petty cash book? Petty Cash Book – Meaning:
 Business entities have to pay various small expenses like taxi fare, bus fare, postage, carriage,
stationery, refreshment and other sundry items.
 These are small payments and repetitive in nature.
 If all these small payments are recorded in the main cash book, it will be loaded with lot of entries.
 Hence, all petty payments of the business may be recorded in a separate book, which is called as petty
cash book and the person who maintains the petty cash book is called the petty cashier.

27) Solution
(i) Sales book should be credited with ` 100.
(ii) Purchase book should be credited with ` 400.
(iii) Purchase return book should be debited with ` 600.
(iv) Sales returns book should be debited with ` 700.

28) Calculation of Rate of Depreciation:

29) Computerised Accounting System (CAS) Meaning:

1. Computerised Accounting System (CAS) refers to the system of maintaining accounts using computers.
2. It involves the processing of accounting transactions through the use of hardware and software in order to
keep and produce accounting records and reports.

30) Narration:
(i) Dividend received directly by the bank Rs.2,000
(ii) Rs.12,000 worth of goods taken for personal use
 PART - III
III. Answer any seven questions. Question No.40 is compulsory. 7 x 3 = 21
31) The importance of accounting is:
1. Systematic records:
 All the transactions of an enterprise which are financial in nature are recorded in a
systematic way in the books of accounts.
2. Preparation of financial statements:
 Results of business operations and the financial position of the concern can be ascertained
from accounting periodically through the preparation of financial statements.

3. Assessment of progress:
 Analysis and interpretation of financial data can be done to assess the progress made in
different areas and to identify the areas of weaknesses.
32) ‘Only monetary transactions are recorded in account’ – Explanation:
 This is Money measurement concept
 This concept implies that only those transactions, which can be expressed in terms of
money, are recorded in the accounts.
 Since, money serves as the medium of exchange transactions expressed in money are
recorded and the ruling currency of a country is the measuring unit for accounting.

33) Classification of Accounts

Sl. No. Items Classification
(a) Capital Personal account
(b) Building Real account
(c) Carriage inwards Nominal account
(d) Cash Real account
(e) Commission received Nominal account
(f) Bank Personal account

34) Opening Entry

Date Particulars L.F. Debit Credit
Rs. Rs.
2017 Cash A/c Dr. 1,00,000
April 1 Stock A/c Dr. 40,000
Sundry Debtros A/c Dr. 10,000
Furniture A/c Dr. 10,000
To Sundry Creditors A/c 40,000
To Capital A/c 1,20,000
(Balances of assets and liabilities
brought forward)
 Ledger Accounts
Dr. Cash Account Cr.

Date Particulars J.F. Amount Date Particulars J.F Amount

Rs. Rs.
2017 2017
April 1 To Capital A/c 1,00,000 April 30 By Balance C/d 1,00,000

1,00,000 1,00,000
May 1 To Balance b/d 1,00,000

Dr. Stock Account Cr.

Date Particulars J.F. Amount Date Particulars J.F Amount

Rs. Rs.
2017 2017
April 1 To Capital A/c 40,000 April 30 By Balance C/d 40,000

40,000 40,000
May 1 To Balance b/d 40,000

Dr. Sundry Debtors Account Cr.

Date Particulars J.F. Amount Date Particulars J.F Amount

Rs. Rs.
2017 2017
April 1 To Capital A/c 10,000 April 30 By Balance C/d 10,000

10,000 10,000
May 1 To Balance b/d 10,000

Dr. Furniture Account Cr.

Date Particulars J.F. Amount Date Particulars J.F Amount

Rs. Rs.
2017 2017
April 1 To Capital A/c 10,000 April 30 By Balance C/d 10,000

10,000 10,000
May 1 To Balance b/d 10,000
 Dr. Sundry Creditors Account Cr.

Date Particulars J.F. Amount Date Particulars J.F Amount

Rs. Rs.
2017 2016
Jan 31 To Balance C/d 40,000 Jan. 1 By Capital A/c 40,000

40,000 40,000
Feb.1 By Balance b/d 40,000

Dr. Capital Account Cr.

Date Particulars J.F. Amount Date Particulars J.F Amount
Rs. Rs.
2017 2016
Jan 1 To Anush A/c 40,000 Jan. 1 By Cash A/c 1,00,000
31 To Balance C/d 1,20,000 By Stock A/c 40,000
By Rohit A/c 10,000
By Furniture A/c 10,000

1,60,000 1,60,000
Feb.1 By Balance b/d 1,20,000

35) Contra Entry – Meaning:

 To denote that there are contra entries, the alphabet ‘C’ is written in L.F. column on both sides.
 Contra means that particular entry is posted on the other side (contra) of the same book, because Cash
account and Bank account are there in the cash book only and there are no separate ledger accounts
needed for this purpose.
 The alphabet ‘C’ indicates that no further posting is required and the relevant account is posted on the
opposite side.
Examples
 When cash is paid into bank, it is recorded in the bank column on the debit side and in the
cash column on the credit side of the cash book.
 When cash is drawn from bank for office use, it is entered in cash column on the debit
side and in the bank column on the credit side of the cash book.

36) The main reasons for preparing bank reconciliation statement are:
 To identify the reasons for the difference between the bank balance as per the cash book and bank
balance as per bank statement.
 To identify the delay in the clearance of cheques.
 To ascertain the correct balance of bank column of cash book.
37) Causes of depreciation
1. Wear and tear
 The normal use of a tangible asset results in physical deterioration which is called wear and tear.
 When there is wear and tear, the value of the asset decreases proportionately.

2. Efflux of time
 Certain assets whether used or not become potentially less useful with the passage of time.

3. Inadequacy for the purpose

 Sometimes, the use of assets may be stopped due to their inadequacy for the purpose.
 These may become inadequate due to expansion in the capacity of a firm.

38) Deferred revenue expenditure:

 An expenditure which is revenue expenditure in nature, the benefits of which is to be derived over
a subsequent period or periods is known as deferred revenue expenditure.
 Examples

• Considerable amount spent on advertising

• Major repairs to plant and machinery

39) Dr. Profit and Loss Account Cr.

Particulars Rs. Rs. Particulars Rs. Rs.

To Bad Debts 1,000

(+) Doubtful debts 5% 2,450 3,450

To Discount on Debtors 2% 931

4,381

Balance Sheet

Liabilities Rs. Rs. Assets Rs. Rs.

Sundry Debtors 50,000

(-) Bad Debts 1,000

49,000
(-) Doubtful Debts
2,450
465 50

46,550
(-) Discount on Debtors 45,619
931
40) List the Accounts have only Credit Balances:
 Sales
 Purchases returns
 Capital
 Bank loan
 Sundry creditors
 Bills payable
 Bank overdraft
 Rent received
 Interest received
 Provision for bad debts

PART - IV
IV. Answer all the questions. 7 x 5 = 35

41.a. In the books of Jeyaseeli

Journal entries
Date Particulars L.F Debit Credit
. Rs. Rs.
2018 Cash A/c Dr. 80,000
Jan. 1 To Jeyaseeli’s Capital A/c 80,000
(Jeyaseeli commenced business with cash)
2 Bank A/c Dr. 40,000
To Cash A/c 40,000
(Deposited cash into bank)
3 Purchases A/c Dr. 5,000
To Cash A/c 5,000
(Goods purchased by cash)
4 Purchases A/c Dr. 10,000
To Lipton & Co. A/c 10,000
(Goods purchased on credit)
5 Cash A/c Dr. 11,000
To Sales A/c 11,000
(Cash sales made)
6 Salaries A/c Dr. 5,000
To Cash A/c 5,000
(Salaries paid)
7 Lipton & Co. A/c Dr. 10,000
To Bank A/c 10,000
(Payment made by cheque)
 8 Furniture A/c Dr. 4,000
To Cash A/c 4,000
(Furniture bought for cash)
9 Electricity charges A/c Dr. 1,000
To Cash A/c 1,000
(Electricity charges paid)
10 Insurance premium A/c Dr. 300
To Bank A/c 300
(Insurance premium paid)

[OR]

41.b)

Dr. Trading and Profit and Loss Account of Mr.Edward’s Cr.

Particulars ` Particulars `

To Opening stock 89,700 By Sales 3,56,500

To Purchases 2,56,500 (-) Return Inward 2,500 3,54,000
To Coal, gas & water 10,500 By Closing stock 1,30,000
To Gross profit c/d 1,27,300

4,84,000 4,84,000
To Travelling Expenses 51,250 By Gross profit b/d 1,27,300
To Interest on Loan 300 By Interest on Investment 2,550
(+) Interest Due 900 1,200
To Petty Cash 710
To Repairs 4,090
To Net profit 72,600
(Transferred to capital A/c)
1,29,850 1,29,850

Balance Sheet as on 31st December 2016

Liabilities Rs. Rs. Assets Rs. Rs.

Capital 1,31,500 Sundry Debtors 60,000

(-) Drawings 5,000 Investment 70,000
1,26,500 Closing Stock 1,30,000
(+) Net Profit 72,600 1,99,100

Loan @ 6% 20,000
(+) Interest Due 900
20,900

Sundry Creditors 40,000

2,60,000 2,60,000
42.a)
Journal entries in the books of Ganesan
Date Particulars L.F Debit Credit
. Rs. Rs.
2017 Cash A/c Dr. 25,000
Oct.1 To Capital A/c 25,000
(Started business with cash)
5 Bank A/c Dr. 12,500
To Cash A/c 12,500
(Deposited into Bank)
10 Furniture A/c Dr. 2,000
To Bank A/c 2,000
(Purchased furniture and payment by cheque)
15 Purchase A/c Dr. 5,000
To Cash A/c 5,000
(Goods Purchased for cash)
19 Vasu A/c Dr. 4,000
To Sales A/c 4,000
(Goods sold to Vasu on credit)
22 Drawings A/c Dr. 500
To Purchase A/c 500
(Goods worth Rs.500 taken for personal use)

Dr. Cash Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2017 2017
Oct. 1 To Capital A/c 25,000 Oct. 5 By Bank A/c 12,500
15 By Purchase A/c 5,000
31 By Balance C/d 7,500
25,000 25,000
Nov. 1 To Balance B/d 7,500

Dr. Capital Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.
2017 2017
Oct. 31 To Balance C/d 25,000 Oct. 1 By Cash A/c 25,000

25,000 25,000
Nov.1 By Balance B/d 25,000
 Dr. Bank Account Cr.
Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2017 2017
Oct. 5 To Cash A/c 12,500 Oct. 10 By Furniture A/c 2,000
31 By Balance C/d 10,500
12,500 12,500
Nov. 1 To Balance B/d 10,500

Dr. Furniture Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.

2017 2017
Oct.10 To Bank A/c 2,000 Oct. 31 By Balance C/d 2,000

2,000 2,000
Nov. 1 To Balance B/d 2,000

Dr. Purchase Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.
2017 2017
Oct. 15 To Cash A/c 5,000 Oct. 22 By Drawings A/c 500
31 By Balance C/d 4,500
5,000 5,000
Nov. 1
To Balance B/d 4,500

Dr. Sales Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.
2017 2017
Oct. 31 To Balance C/d 4,000 Oct.19 By Vasu A/c 4,000

4,000 4,000
Nov.1 By Balance B/d 4,000
 Dr. Vasu Account Cr.
Date Particulars J.F. Rs. Date Particulars J.F. Rs.
2017 2017
Oct. 9 To Sales A/c To 4,000 Oct.31 By Balance C/d 4,000
4,000 4,000
Nov. 1 Balance B/d 4,000

Dr. Drawings Account Cr.

Date Particulars J.F. Rs. Date Particulars J.F. Rs.
2017 2017
Oct.22 To Purchase A/c To 500 Oct.31 By Balance C/d 500
500 500
Nov. 1 Balance B/d 500

[OR]

42.b) Classification of Capital or Revenue:

1) Revenue Receipt
2) Capital Receipt
3) Capital Receipt
4) Revenue Receipt
5) Capital Expenditure

43.a) In the books of Rajesh

Trial balance as on 31st March, 2017
Name of account L. Debit Credit
F. balance balance
Rs. Rs.
Bills receivable 13,000 ---
Bank charges 750 ---
Conveyance charges 350 ---
Discount received --- 1,300
Cash in hand 1,000 ---
Drawings 7,000 ---
Sundry debtors 17,100 ---
Bills payable --- 12,000
Capital --- 25,900
Total 39,200 39,200
 [OR]

43.b) Adjusting Entries

Date Particulars L.F. Debit Credit

Rs. Rs.
i) Closing Stock A/c Dr. 5,000
To Trading A/c 5,000
(Being closing stock brought into account)

ii) Salaries A/c Dr. 150

To Outstanding Salaries A/c 150
(Being Salaries Outstanding)

iii) Prepaid Insurance Premium A/c Dr. 450

To Insurance Premium A/c 450
(Being Insurance Premium prepaid )

iv) Commission A/c Dr. 20,000

To Advance Commission A/c 20,000
(Being Commission received in advance )

v) Accrued interest on investment A/c Dr. 1,000

To Interest on investment A/c 1,000
(Being accrued interest on investment)

44.a) In the books of Santhosh Textiles

Purchases Book

Date Particulars Amount Rs.

Invoice L.F. Details Total
No.
2017
April 1 Prasad, Kancheepuram
100 Meters Silk @ Rs. 450 meter 45,000
75 Meters Velvet @ Rs. 180 meter 13,500 58,500
20 Hari Ram & Sons, Madurai
50 Rolls Kada @ Rs. 730 per Roll 36,500
80 Rolls Cotton @ Rs. 650 per Roll 52,000 88,500
Purchases A/c Dr. 1,47,000
 In the books of Santhosh Textiles
Sales Book

Date Particulars Amount Rs.

Invoice L.F. Details Total
No.
2017
April 10 Rathinam, Chennai 29,400
60 Meters Silk @ Rs. 490 meter 10,500 39,900
50 Meters Velvet @ Rs. 210 meter

18 Nathan & Sons

100 Meters Silk @ Rs. 510 meter 51,000 51,000

Sales A/c Cr. 90,900

[OR]

44.b)
Differences between cash discount and trade discount

Basis Cash discount Trade discount

1. Purpose Cash discount is allowed to Trade discount is allowed to
encourage the buyers of goods to encourage buyers to buy goods
make payment at an early date. in large quantities.

2. Time of allowance Cash discount is allowed by the Trade discount is allowed by the
seller or creditor to the buyer or seller to the buyer when goods
debtor at the time of making are sold.
payment.

3. Amount of discount Cash discount is related to time. Trade discount is generally

The earlier the payment, the related to the quantity of
more will be the cash discount. purchase or sale.

4. Recording in books of Cash discount is recorded in the Trade discount is not recorded in
accounts books of account. Cash discount the books of account. No journal
allowed is shown on the debit entry is made for the same.
side of cash book. Cash discount
received is shown on the credit
side of the cash book.

5. Deduction from invoice value Cash discount is not deducted Trade discount is deducted from
from the invoice value of goods. the list price of the goods.
45. a)

[OR]

45. b) Calculation of profit or loss on sale of Truck

Particulars Rs.

Cost price 8,00,000

Less: Depreciation for 2014-15 (8,00,000 x 15/100 x 6/12) 60,000
7,40,000
Less: Depreciation for 2015-16 (7,40,000 x 15/100) 1,11,000
6,29,000
Less: Depreciation for 2016-17 (6,29,000 x 15/100) 94,350
Book value on the date of sale 5,34,650
Less: Selling price 5,00,000
Profit on sale 34,650
46. a)

[OR]
46. b) Types of accounting software
1. Readymade software
2. Customised software and
3. Tailormade software

(i) Readymade software

 These packages are standardised or readymade packages which can be used by the
business enterprises immediately on procurement.
 These packages are used by small and conventional business enterprises.
 Cost of installation and maintenance is very low.
(ii) Customised software
 Many a time, it is not possible that ready-to-use packages suit the requirements of the
business enterprise.
 In such circumstances, customised packages may help the business enterprise for
fulfilling their requirements.
 Customised packages can be modified according to the need of the enterprise.

(iii) Tailormade software

 Large enterprises have their own way of functioning.
  For effective management information system, varied and specific information is
frequently required by many users which may not be needed in case of small or
medium scale enterprises.
 In such enterprises, depending upon their functioning, need based softwares known as
tailored packages are installed.

47. a) In the books of Ramalinfam

Dr. Cash Book (Single column) Cr.
Date Receipts L.F. Amount Date Payments L.F. Amount
Rs. Rs.
2017 2017
July 1 To Balance b/d 32,000 July 6 By Packing Caharges
5 To Keerthana A/c 5,000 A/c 300
8 To Sales A/c 2,600 7 By Purchase A/c 12,400
27 To Bank A/c 2,000 10 By Salary A/c 7,000
11 By Balu A/c 3,000
24 By Bank A/c 4,000
31 By Office Rent A/c 6,000
31 By Balance c/d 8,900
41,600 41,600
Aug. 1 To Balance B/d 8,900

47. b) Distinguish between Journal and Ledger

Basis Journal Ledger

1. Order of recording Entries are made in the Entries are made account wise.
chronological order, i.e., date
wise in the order of occurrence.
2. Process The process of recording in The process of recording in the
journal is called journalising ledger is called posting.
3. Facilitating preparation of Amount from the journal does Ledger balances serve as the
trial balance not serve as the basis for basis for preparing trial balance.
preparing trial balance.
4. Basis of entries Entries in the journal are made Posting is done in ledger on the
on the basis of source basis of journal entries.
documents.
5. Net position Net position of an account Net position of an account can
cannot be ascertained from be ascertained from ledger
journal. account.

************* All The Best *************