Dear Teachers and Students,

Join School of Educators' exclusive WhatsApp, Telegram, and Signal groups for FREE access
to a vast range of educational resources designed to help you achieve 100/100 in exams!
Separate groups for teachers and students are available, packed with valuable content to
boost your performance.

Additionally, benefit from expert tips, practical advice, and study hacks designed to enhance
performance in both CBSE exams and competitive entrance tests.

Don’t miss out—join today and take the first step toward academic excellence!

Join the Teachers and Students

Group by Clicking the Link Below
 Series ARSP/01 Set ~ 1
Roll No. Q.P Code 15/1/1
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

General Instructions:

1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Cash Memo is [1]

a) a journal b) Transfer Voucher

c) a source voucher d) an accounting voucher

2. Assertion (A): Accounting information is sometimes based on estimations. [1]
Reason (R): The financial statements always reflects true position of the business.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Which account will be debited if proprietor pays ₹ 5,000 as life insurance premium from business cash? [1]

a) Bank A/c b) Drawings A/c

c) Cash A/c d) Insurance A/c

4. Which of the following is the correct accounting equation for repayment of loan amount of ₹ 1,00,000 along [1]
with interest of ₹ 10,000?

a) Assets (1,00,000) = Liabilities (1,00,000) + b) Assets (1,10,000) = Liabilities (0) + Capital

Capital (0) (1,10,000)

c) Assets (1,10,000) = Liabilities (1,00,000) + d) Assets (1,10,000) = Liabilities (1,10,000) +

Capital (10,000) Capital (0)
OR
A business had net capital at 1 January and 31st December 2012 of Rs. 75,600 and Rs. 73,800 respectively. During
the year, the proprietor introduced additional capital of Rs. 17,700 and withdrew cash and goods to the value of Rs.
16,300. What profit or loss was made by the business in 2012.
 a) Rs.3000 Profit b) Rs.3200 Profit

c) Rs.3200 Loss d) Rs.3000 Loss

5. When goods are purchased against cash, the purchaser will get: [1]

a) Cash Memo b) Accounting Voucher

c) transfer Voucher d) Invoice

6. A person or an enterprise which is not in a position to pay its debts is called ________. [1]

a) Solvent b) Both Insolvent and Bad debtor

c) Insolvent d) Bad debtor

OR
Accounting function is ________ in nature.

a) clerical b) routine

c) analytical d) Both routine and analytical

7. Revenue Reserve is created: [1]

a) Out of general profits b) Out of capital profits

c) Out of profits on the purchase of a running d) Out of profits on sale of fixed assets
business
8. Which of the following accounts has a credit balance? [1]

a) Discount Allowed b) Discount Received

c) Carriage Inward d) Carriage Outward

OR
Consider the following statements with regard to the accounting treatment of various accounts:
i. Increase in asset is debited and decrease in asset is credited.
ii. Increase in expenses/losses is debited and decrease in expenses/ losses is credited.
iii. Increase in liabilities is credited and decrease in liabilities is debited.
iv. Increase in capital is credited and decrease in capital is debited.
Identify the correct statement/statements:

a) i and ii b) i, iii and iv

c) i, ii, iii and iv d) ii and iii

9. Which of the following methods of accounting is/are recognised by Companies Act, 2013? [1]

a) Cash basis of accounting b) Both (Cash basis of accounting) and

(Accrual basis of accounting)

c) Can't be determined d) Accrual basis of accounting

10. At the time of goods sold, output CGST/SGST/IGST account is credited because it is a/an [1]

a) Liability b) Assets

c) Revenue/income d) Accrued income

11. Under what situations does a business invest the fund outside [1]
 A. Ready cash is required at a future date
B. The funds cannot be profitably invested in the business itself

a) (A) b) Both (A) and (B)

c) None of these d) (B)

12. The term current assets include: [1]

a) Building b) Machinery

c) Debtors d) Motor Vehicle

13. In which book credit sales of goods are recorded [1]

a) Purchase Book b) Purchase Return Book

c) Sales Return book d) Sales Book

14. For which of the following transactions, assets and capital will decrease by same amount? [1]

a) Goods sold for cash at a profit b) Depreciation provided on fixed assets

c) Goods sold for cash d) Fixed asset purchased on credit

15. Amount paid or payable against the purchase of goods is: [1]

a) cash expenditure b) revenue expenditure

c) capital expenditure d) Both (a) and (b)

OR
Which is the evidence of business transaction:

a) Journal b) Ledger

c) Balance sheet d) Voucher

16. Purchases Book is a part of: [1]

a) The Balance Sheet b) The Ledger

c) The Trading Account d) The Journal

17. Reserves arising from capital receipts are known as: [1]

a) Specific reserve b) Capital Reserve

c) Reserve Fund d) Capital Reserve and Reserve Fund

18. Name and briefly discuss the principal book of accounting system. [3]
OR
Journalise the following:

2023

March 4 Purchased building for ₹ 1,50,000 and incurred expenses of ₹ 10,000 on its purchase.

March 10 Santosh who owed us ₹ 20,000 is declared insolvent and 60 paise per ₹ is received from his estate.

March 15 Paid ₹ 500 for repairing the office furniture.

March 18 Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 2,000.

March 20 Purchased the following items for business:

 Iron Safe ₹ 15,000; Filing Cabinet ₹ 5,000; Computer ₹ 12,000; Postage ₹ 200 and Stationery ₹ 150.

March 28 Paid electricity charges ₹ 1,600.

March 31 Charge depreciation on Machinery @ 10% for one year (Machinery ₹ 75,000).

March 31 Outstanding Wages at the end of the year ₹ 6,000.

19. Following information is obtained from the books of Mr. Sharma for the year ended 31st March, 2023: [3]

Cash Sales 5,20,000

Credit Sales 1,40,000

Expenses (out of which ₹ 60,000 is still to be paid) 4,10,000

Ascertain the Net Profit or Loss of Mr. Sharma if he adopts Cash Basis of Accounting.
OR
Explain the accounting principles of revenue recognition.
20. What is the difference between trade discounts and cash discounts? [3]
21. From the following Ledger account balances extracted from the books of Shivank, prepare a Trial Balance as on [4]
31st March, 2023:

₹ ₹

Purchases 1,04,000 Drawings 7,950

Sundry Debtors 18,550 Sundry Creditors 8,300

Premises 62,000 Returns Inward 5,360

Sales 1,49,000 Furniture 15,600

Returns Outward 8,900 Cash in Hand 390

Discount Allowed 780 Capital 85,000

Cash at Bank 1,560 Factory Wages 5,830

Carriage Inwards 650 Carriage Outwards 260

Salaries 3,900 Rent Received 2,990

Stock (1st April, 2022) 25,000 Insurance 2,100

Input IGST A/c 5,000 Bad Debts 260

Input CGST A/c 2,500 Output IGST A/c 10,000

Input SGST A/c 2,500

22. Explain the need for drawing up the special purpose books. [4]
23. On 31st December, 2013 the Pass Book of Mrs. Menon's Current Account showed a credit balance of ₹20,000. [4]
Prepare a Bank Reconciliation Statement with the following information:
i. Mr. Menon issued a cheque of ₹300 on 25th December, but this was not presented for payment whereas this
was recorded twice in the Cash Book.
 ii. A cheque of ₹200 drawn on his Saving Deposit Account has been shown as drawn on Current Account in
Cash Book.
iii. A cheque of ₹285 issued on 28th December, was taken in the cash column.
iv. In the Pass Book, a Bank charge of ₹25 was recorded twice while another Bank charge of ₹17 was not
recorded in the Cash Book.
OR
From the following particular, prepare the bank reconciliation statement of Shri Krishan as on 31st March, 2017
i. Balance as per pass book is ₹ 10,000.
ii. Bank collected a cheque of ₹ 500 behalf of Shri Kishan but wrongly credited it to Shri Kishan’s account.
iii. Bank recorded a cash deposit of ₹ 1,589 as ₹ 1,598.
iv. Withdrawal column of the passbook undercast by ₹ 100.
v. The credit balance of ₹ 1,500 as on the passbook was recorded in the debit balance.
vi. The payment of a cheque of ₹ 350 was recorded twice in the passbook.
vii. The passbook showed a credit balance for a cheque of ₹ 1000 deposited by Shri Kishan.
24. Journalise the following transactions in the books of B.K. Agencies: [6]
i. Received from Bhuwan cash ₹ 20,000, allowed him discount of ₹ 500.
ii. Received from Vinay ₹ 35,000 by cheque, allowed him discount of ₹ 750.
iii. Received cash from Ankit ₹ 38,000 in settlement of his dues of ₹ 40,000.
iv. Received from Ajay ₹ 50,000 by cheque on account against dues of ₹ 60,000.
v. Paid cash ₹ 39,200 to Suraj in settlement of his dues, availed discount of 2%.
vi. Paid by cheque ₹ 25,000 to Mehta and settled her dues of ₹ 26,000.
vii. Paid ₹ 25,000 to Yuvraj by cheque on account.
viii. Purchased goods costing ₹ 1,00,000 against cheque and availed discount of 3%.
ix. Purchased goods costing ₹ 60,000 from Aman & Co., paid 50% immediately availing 3% discount.
x. Sold goods of ₹ 30,000 against cheque allowing 2% discount.
xi. Sold goods of ₹ 60,000 to Viraj received 50% of due amount allowing 2% discount.
xii. Kumar Bros, purchased 100 shawls @ ₹ 3,000 per shawl. Allowed 10% Trade Discount and 3% Cash
Discount if payment is made within 14 days. Kumar Bros, received 10 shawls of poor quality, which it
returned. Kumar Bros, settled the payment in 10 days.
xiii. Sold to Sharma Shawls, 100 shawls @ ₹ 200 per shawl on 4th January, 2023. Trade Discount 25% and Cash
Discount 5% if full payment is made within 14 days. Sharma Shawls sent 50% of the payment on 14th
January, 2023 and balance payment on 10th February, 2023.
OR
Analyse the following transactions, state the nature of accounts and the account that will be debited and credited as
per the Traditional Classification of Accounts:
i. Deepak started business introducing capital of ₹ 1,50,000 in cash.
ii. Opened a Bank Account by depositing ₹ 1,00,000 in cash.
iii. Received Loan of ₹ 1,00,000 from Naveen by cheque.
iv. Purchased furniture for ₹ 20,000 in cash from Raj Furniture House.
v. Purchased furniture from U.P. Safe for ₹ 40,000.
vi. Purchased goods for cash ₹ 15,000.
 vii. Purchased goods from Manoj ₹ 30,000.
viii. Sold goods to Kamal for cash ₹ 25,000.
ix. Sold goods to Sumit on credit ₹ 30,000.
x. Cash received from Sumit ₹ 20,000.
xi. Cash paid to Manoj ₹ 10,000.
25. Rectify the following errors which were detected before preparing the Trial Balance: [6]
i. The total of Sales Book carried forward ₹ 5,000 less.
ii. A credit sale to Geeta ₹ 6,300 posted as ₹ 3,600.
iii. A credit sale to Krishna ₹ 2,400 posted as ₹ 4,200.
iv. A credit sale to Pratibha ₹ 3,000 credited to her account.
v. A credit sale to Monika ₹ 5,600 credited as ₹ 6,500.
OR
Rectify the following errors:
i. ₹ 4,500 spent on the extension of Buildings were debited to Repairs A/c.
ii. Wages paid to the firm’s own workmen ₹ 3,600 for the installation of a new machinery were posted to Wages
Account.
iii. The contractor’s bill for the construction of a godown at a cost of ₹ 10,000 has been charged to Repairs A/c.
iv. ₹ 1,500 paid as Wages to a worker Brijesh Pal, has been debited to his personal account.
v. Old furniture sold for ₹ 500 has been credited to Sales Account.
vi. A cheque of ₹ 620 received from Ryan, has been wrongly credited to Sarthak.

26. On April 1, 2020, Z Ltd. purchased a plant for ₹ 5,00,000. On 1st October in the same year, additional plant [6]

costing ₹ 2,00,000 was purchased. On 1st October 2021, the plant purchased on 1st April 2020, having become
obsolete was sold off for ₹ 2,65,000. On 1st July 2022, new plant was purchased for ₹ 8,00,000 and on the same

date plant purchased on 1st October 2020 was sold for ₹ 1,70,000. The firm provides depreciation @ 10% p.a. on

original cost on 31st March every year.

You are required to show
i. Plant Account,
ii. Depreciation Account, and

iii. Provision for Depreciation Account for three accounting years ending 31st March, 2023.
OR
Following balance appear in the books of M/s Anandi as on 1st April 2022:

Machinery Account 60,000

Provision for depreciation A/c 36,000

On 1st April 2022, they decided to dispose off machinery for ₹ 8,400, which was purchased on 1st April 2018 for ₹
16,000.
You are required to prepare Machinery Account, Provision for Depreciation Account and Machinery Disposal A/c for
the 2022-23. Depreciation was charged at 10% p.a. on original cost method.
Part B
27. If the Opening capital is ₹60,000, drawings ₹5,000, capital introduced during the period ₹10,000, closing capital [1]
₹90,000. The value of profit earned during the period will be:

a) ₹30,000 b) ₹20,000

c) ₹25,000 d) ₹40,000
OR
Capital in the beginning - Rs.24,000, profit made during the year - Rs.4,000, drawings - Rs.8,000, Capital introduced
during the year- Rs.12,000.Calculate capital at the end

a) Rs.35,000 b) Rs.20,000

c) Rs.32,000 d) Rs.28,000
28. Types of account shown in the balance sheet are [1]

a) Nominal and real b) Nominal and personal

c) Nominal only d) Real and Personal

29. What is the effect of overvaluing Closing Stock on the Current Year’s Profit? [1]

a) Decreases the gross profit and increases net b) Increase the gross profit but decrease the net
profit. profit.

c) Increase the gross profit and net profit. d) Increases the gross profit and net profit.
OR
Net profit before the following adjustments is Rs.180000, outstanding salary-Rs.13000, prepaid insurance-Rs.10000

a) Rs.175000 b) Rs.180000

c) Rs.183000 d) Rs.20400
30. Define capital expenditure. Give six examples of capital expenditure. [3]
31. Calculate Closing Stock from the following: [3]

Particulars ₹ Particulars ₹

Opening Stock 38,000 Sales 3,60,000

Purchases 3,40,000 Return Inwards 5,000

Return Outwards 4,000 Gross Loss 20,000

Freight Inwards 26,000

32. Define Accrued Income. What is its adjusting entry? [3]

33. From the following information ascertain the opening balance of sundry debtors and closing balance of sundry [6]
creditors

Opening stock 30,000

Closing stock 25,000

Opening creditors 50,000

Closing debtors 75,000

 Discount allowed by creditors 1,500

Discount allowed to customers 2,500

Cash paid to creditors 1,35,000

Bills payable accepted during the period 30,000

Bills receivable received during the period 75,000

Cash received from customers 2,20,000

Bills receivable dishonoured 3,500

Purchases 2,95,000

The rate of gross profit is 25% on selling price and out of the total sales ₹ 85,000 was for cash sales.
Hint: Total sales = 4,00,000 = 3,00,000 × 100

75

OR
Kartik started a firm on 1 st April, 2012 with a capital of Rs 30,000. On 1 st July, 2012 he borrowed from his wife a
sum of Rs 12,000 @ 9% per annum (interest not yet paid) for business and introduces a further capital of his own
amounted to Rs 4,500. On 31st March, 2013 his position was, cash Rs 1,800, stocks28,200, debtors Rs 21,000 and
creditors Rs 18,000.
Ascertain his profit or loss taking into account Rs 6,000 for his drawing during the year.
34. From the following Trial Balance of P. Pawar, prepare Trading and Profit & Loss Account for the year ended [6]

31st March, 2023 and Balance Sheet as at that date:

Dr. (₹) Cr. (₹)

Purchases and Sales 2,75,000 5,20,000

Returns Inwards 15,000

Returns Outwards 9,000

Carriage 12,400

Wages and Salaries 58,600

Trade Expenses 2,200

Rent 13,000

Insurance 2,000

Audit Fees 1,200

Debtors and Creditors 1,10,000 62,100

B/R and B/P 3,300 2,200

Printing and Advertising 5,500

Commission 8,000

Opening Stock 36,000

Cash in hand 19,800

Cash at Bank 26,800

Bank Loan 20,000

Interest on Loan 1,500

Capital 2,50,000

Drawings 15,000

Fixed Assets 3,00,000

8,84,300 8,84,300

Adjustments:-
i. Stock at the end ₹ 60,000.
ii. Depreciate Fixed Assets by 10%.
iii. Commission earned but not received amounts to ₹ 2,000.
iv. Rent received in advance ₹ 1,000.
v. Allow 8% interest on Capital and charge ₹ 900 as interest Drawings.
OR
From the following trial balance, prepare the trading and profit and loss account for the year ended 31st March, 2013
and the balance sheet as at that date.

Name of Accounts Amt(Rs) Name of Accounts Amt(Rs)

Salaries 20,446 Sales 1,32,840

Bills receivable 12,754 Capital 1,00,000

Investments 80,000 Provision for doubtful debts 5,000

Furniture 24,000 10% Loan (1st October, 2012) 20,000

Opening stock 9,000 Discount received 800

Purchases 60,000 Sundry creditors 18,600

Sundry debtors 40,000 Bills payable 10,000

Interest on loan 800 Outstanding salaries 1,000

Insurance premium 1,800 Bad debts recovered 400

Wages 9,200 Interest on investments 4,000

Rent 3,040 Trading commission 14,000

Bad debts 2,400

Carriage Outwards 1,200

Cash at Bank 20,000

Depreciation of furniture 5,000

Accrued commission 2,000

Advertisement 15,000
 3,06,640 3,06,640

Additional Information
i. Closing stock Rs 12,000.
ii. Goods costing Rs 2,000 were distributed as free samples while goods costing Rs 1,000 were taken by the
proprietor for personal use.
iii. A credit sale of Rs 4,000 was not recorded in the sales book.
iv. Closing stock included goods costing Rs 2,000 which were sold and recorded as sales but not delivered to the
customer.
v. Maintain provision for doubtful debts @ 5%.