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 Series ARSP/10 Set ~ 10
Roll No. Q.P Code 15/10/10
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 prepared when goods are sold [1]

a) both on credit and cash b) on credit

c) On transfer d) on cash
2. Assertion (A): Accounting is merely concerned with recording of the financial events. [1]
Reason (R): Accounting also provides insightful information that helps businesses in their decision making
process.

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. Debit mean [1]

a) a decrease in asset b) an increase in the proprietor’s equity

c) an increase in asset d) an increase in liability

4. Goods costing Rs.15,000 were sold for cash at a profit of 20%. By what amount cash increase [1]

a) Rs.13,000 b) Rs.12,000

c) Rs.18,000 d) Rs.15,000
OR
Goods costing Rs. 15,000 were sold for cash at a profit of 20%. By what amount stock account will decrease:

a) Rs.20,500 b) Rs.15,000

c) Rs.25,000 d) Rs.1,500
5. Pulkit has returned goods worth ₹20,000 to Mohan as he found it defective. Which document will be prepared [1]
by Mohan?
 a) Credit note b) Debit note

c) Invoice/bill d) Credit voucher

6. ________ need the information to form policies at the macro level and for providing subsidies. [1]

a) Competitors b) Management

c) Tax authorities d) Government and its agencies

OR
Stores is one of the accounting terms used to describe certain kind of materials in the production process. Which of
the following is an example of stores?

a) Lubricants b) Packing materials

c) All of these d) Spare parts of machinery

7. Reserve is created from: [1]

a) Liabilities b) Assets

c) Profits d) Losses
8. The data is classified for creating groups of accounts in the heads of: [1]

a) Assets, Liabilities and Capital b) Assets, Owners’ equity, Revenue and

Expenses

c) Assets, Capital, Liabilities, Revenue and d) Capital, Revenue and Expenses

Expenses
OR
Sundry Creditors Account is a:

a) Liability Account b) Asset account

c) Capital Account d) Revenue Account

9. To promote worldwide uniformity in published accounts, the International Accounting Standards Committee [1]
(IASC) has been set up in June

a) 1975 b) 1972

c) 1973 d) 1971
10. According to the Convention of Conservatism: [1]

a) Recording is made of outstanding expenses b) Depreciation is charged on assets

c) Provision is made for bad and doubtful d) All of these

debts
11. Reserves are important because they help in: [1]
A. meeting the future contingencies
B. strengthening the financial position of the business
C. redemption of liabilities like debenture

a) (A) b) All of these

c) (B) d) (C)
12. Which of the following is an asset? [1]

a) Sales Return b) Purchases

c) Interest Received d) Machinery

13. If XYZ Electronics Ltd. purchases 20 TV @ ₹2,000 per piece and 15 tape recorders @ ₹12,500 per piece. There [1]
was a trade discount of 20%. What will be the amount recorded in the purchase book?

a) ₹2,27,500 b) ₹1,87,500

c) ₹40,000 d) ₹1,82,000
14. Payment to a creditor means [1]

a) Increase in asset and increase in liability b) Increase in asset and decrease in liability.

c) Decrease in asset and increase in liability. d) Decrease in asset and decrease in liability.
15. Which of the following is Revenue Expenditure? [1]

a) Purchase of Investments b) Expenses on purchase of Machinery

c) Building Construction Expenses d) Repair Expenses

OR
The amount invested by the proprietor in a business is called ________.

a) capital b) revenues

c) cash d) loan
16. ________ is not a subsidiary book. [1]

a) Sales Book b) Ledger

c) Purchase Return Book d) Purchase Book

17. To whom do the reserves belong to: [1]

a) Debtor b) Creditors

c) Seller d) Proprietor
18. Write the process of preparing ledger from a journal. [3]
OR
Journalise the following:

1. Purchased goods for ₹ 25,000 for Cash and paid ₹ 200 for carriage on these goods.

2. Purchased goods for ₹ 40,000 on Credit from Suraj and paid ₹ 500 for carriage on these goods.

3. Purchased machinery for ₹ 20,000 and spent ₹ 500 on its carriage and ₹ 300 on its installation.

4. Purchased goods from Ajay for ₹ 15,000.

5. Sold 1

3
rd of the above goods at a profit of 20% on cost.

6. Goods costing ₹ 12,000 sold to Mr. X, issued an invoice at 25% above cost less 10% trade discount.

7. Provide 20% depreciation on furniture costing ₹ 10,000

8. Gave as charity - Cash ₹ 500 and Goods ₹ 2,000

19. Explain the need for IFRS. [3]

 OR
Production at a factory had to stop for a week due to a labour strike. The owner estimated the loss of production and
the likely loss of profit arising out of the situation. He directed the accountant to record the loss in the books of
account. Is the owner correct in recording the likely loss? Give reasons.
20. Distinguish between Loss and Expense. [3]
21. From the following information, draw up a Trial Balance in the books of Shri Haridas Chaki as on 31st March, [4]
2023:
Capital ₹ 1,40,000; Purchases ₹ 36,000; Discount Allowed ₹ 1,200; Carriage Inwards ₹ 11,000; Sales ₹ 60,000;
Returns Inward ₹ 300; Returns Outward ₹ 700; Plant and Machinery ₹ 1,15,300; Stock on 1st April, 2022 ₹
16,700; Sundry Debtors ₹ 20,200; Sundry Creditors ₹ 12,000; Investments ₹ 3,600; Commission Received ₹
1,800; Cash in Hand ₹ 100; Cash at Bank ₹ 10,100 and Stock on 31st March, 2023 (not adjusted) ₹ 20,500.
22. Prepare double column cash book from the following transactions for the year August 2017: [4]

01 Cash in hand 17,500

Cash at bank 5,000

03 Purchased goods for cash 3,000

05 Received cheque from Jasmeet 10,000

08 Sold goods for cash 7,000

10 Jasmeet’s cheque deposited into bank

12 Purchased goods and paid by cheque 20,000

15 Paid establishment expenses through bank 1,000

18 Cash sales 7,000

20 Deposited into bank 10,000

24 Paid trade expenses 500

27 Received commission by cheque 6,000

29 Paid Rent 2,000

30 Withdrew cash for personal use 1,200

31 Salary paid 6,000

23. Prepare Bank Reconciliation Statement from the following particulars on 31st July 2023: [4]

i. Balance as per the Passbook ₹ 50,000

ii. Three cheques for ₹ 6,000, ₹ 3,937 and ₹ 1,525 issued in last week July 2023 were presented for payment to
the bank in August 2023.
iii. Two cheques of ₹ 500 and ₹ 650 sent to the bank for collection were not entered in the Pass Book by July 31,
2023.
iv. The bank charged ₹ 460 for its commission and allowed interest ₹ 100 which were not mentioned in the
Bank Column of the Cash Book.
OR
 The credit balance as per cash book is Rs 1,500. Cheques for Rs 400 were deposited but were not collected. The
cheques issued but not presented were Rs 100, Rs 125 and Rs 50. Balance as per pass book will be.
24. Journalise the following transactions of Govind: [6]

2023 ₹

Jan. 1 Govind started business with cash 2,00,000

Jan. 2 Paid into bank 60,000

Jan. 3 Bought goods from Pawar & Co. 20,000

Jan. 3 Paid cartage on goods purchased 300

Jan. 4 Purchased furniture 2,000

Jan. 4 Paid advance for purchase of HP Printers for ₹ 15,000 5,000

Jan. 4 Purchased calculator 1,000

Jan. 4 Purchased computer and paid by cheque 13,000

Jan. 6 Paid for Mobile bill and Internet (Office) 5,700

Jan. 8 Sold goods for cash 4,000

Jan. 9 Sold goods to Siya & Co. 10,000

Jan. 9 Paid cartage on goods sold to Siya & Co. 200

Jan. 15 Paid to Pawar & Co. on account 17,500

Jan. 25 Sold goods to Rao & Co. 5,600

Jan. 27 Received cheque from Siya & Co. in settlement of amount due from them 9,750

Jan. 31 Paid for electricity charges 1,000

Jan. 31 Paid salary to office staff 1,500

Jan. 31 ​Cash withdrawn for hospital expenses of owner 7,500

OR
Pass the Journal entries for the following transactions of Suraj:

2023 ₹

April
Suraj introduced cash as capital 1,00,000
1

Gave cheque from his Savings Account 10,00,000

April
Purchased goods of ₹ 1,00,000 against cheque less 10% Trade Discount
2

April
Issued cheque as advance for Machinery 1,00,000
2

April Purchased Goods of ₹ 2,00,000 less 25% Trade Discount and paid immediately availing Cash
3 Discount of 2%
 April Sold goods to Ritik against cheque 50,000
7

April
Sold goods to Ramesh ₹ 25,000 less 10% Trade Discount
10

April
Received cheque from Ramesh and allowed 2% Cash Discount
14

April
Cheque received from Ramesh deposited in bank
16

April
Cheque received from Ramesh was dishonoured, Bank charged bank charges 200
20

April
Paid Life Insurance Premium of Suraj by Bank Draft. Paid bank charges of ₹ 100 10,000
25

April
Amount transferred to fixed deposit 5,00,000
30

25. There was an error in the Trial Balance of Ravi Gupta on 31st March 2023 and the difference in books was [6]
carried to the Suspense Account. On going through the books you find that.
i. ₹ 540 received from Madhav was posted to the debit side of his account.
ii. ₹ 100 being purchases returns was posted to the debit of Purchases Account.
iii. Discount of ₹ 300 received were posted to the debit of Discount allowed Account.
iv. ₹ 374 paid for motor car repairs was debited to Motor Car Account as ₹ 174.
v. ₹ 400 paid to Nitin was debited to the account of Mahesh.
Pass the Journal Entries to rectify the above errors, and state what amount was carried to the Suspense
Account.
OR
Trial Balance of Anurag did not agree. It showed an excess credit ₹ 10,000. Anurag put the difference to suspense
account. He located the following errors:
i. Sales Returns book overcast by ₹ 1,000.
ii. Purchases book was undercast by ₹ 600.
iii. In the sales book, a total of page No. 4 was carried forward to page No. 5 as ₹ 1,000 instead of ₹ 1,200 and total
of page No. 8 was carried forward to page No. 9 as ₹ 5,600 instead of ₹ 5,000.
iv. Goods returned to Ram ₹ 1,000 were recorded through Sales Book.
v. Credit purchases from M & Co. ₹ 8,000 were recorded through Sales Book.
vi. Credit purchases from S & Co. ₹ 5,000 were recorded through sales Book. However, S & Co. were correctly
credited.
vii. Salary paid ₹ 2,000 was debited to Employee's Personal Account.
26. Calculate annual depreciation and rate of depreciation under Straight Line Method in each of the alternative [6]
cases:

Purchase Price of Installation Estimated Scrap Estimated Useful Life (in

Case
Machinery (₹) Charges (₹) Value (₹) Years)
 (a) 1,80,000 20,000 10,000 5

(b) 4,75,000 25,000 50,000 5

(c) 90,000 10,000 20,000 10

(d) 3,40,000 60,000 40,000 10

(e) 90,000 10,000 20,000 4

OR
The cost of the Machinery in use with Pramod & Co. on 1st April 2013 was Rs 3,00,000 against which the
depreciation provision stood at Rs 1,00,000 on that date. The firm provided depreciation at 10% on the diminishing
value.
On 1st October 2013, a machine costing Rs 40,000 purchased on 1st April 2011 was sold for Rs 32,000 and on the
same date, another machine was purchased for 50,000. Show the following accounts in the books of Pramod & Co.
for the year 2013-14:
i. Machinery Account
ii. Provision for Depreciation Account
iii. Machinery Disposal Account
Part B
27. Calculate Drawing from the following information: Profit: Rs.4,000, Opening capital-Rs.30,000, Closing [1]
capital- Rs.35,000, fresh capital-Rs.6,000

a) Rs.12,000 b) Rs.5,000

c) Rs.500 d) Rs.16,000
OR
Capital in the beginning - Rs.16,000, profit made during the year - Rs.6,000, capital at the end - Rs.26,000, Capital
introduced during the year- Rs. 8,000. Calculate drawings:

a) Rs.8,000 b) Rs.10,000

c) Rs.20,000 d) Rs.4,000
28. Preliminary expenses are [1]

a) Fictitious asset b) Revenue receipt.

c) Deferred capital receipt. d) Deferred revenue receipt

29. A machine was purchased in U.P. During transit, the machine was damaged and the cost of repairs incurred is ₹ [1]
20,000. This expense is treated as:

a) Capital expense b) Revenue expense

c) cost d) Deferred Revenue expense

OR
Income tax in case of sole trader is treated as

a) Business expenses b) Personal expenses

c) Owner expense d) Debtors expenses

30. State with reasons whether following are Capital or Revenue Expenditures: [3]
 i. Customs duty paid on import of machinery.
ii. ₹ 5,000 spent on repainting the factory.
iii. Repairs for ₹ 2,000 of the machine.
iv. ₹ 10,000 paid for the electricity bill.
31. Explain the objects of preparing Profit and Loss Account. [3]
32. Give Journal entries for the following adjustments in final accounts: [3]
i. New Machinery was purchased for ₹ 1,00,000, paid as follows:
ii. An old machine valued at ₹ 10,000 (Book Value Nil) was given in exchange.
a. Balance amount by cheque.
b. The new machine was recorded at the net amount.
iii. New furniture was purchased for ₹ 50,000 and in exchange old furniture valued at ₹ 5,000 (Book Value ₹
2,000) was given. Entry for purchase was recorded at ₹ 45,000 in the books of account.
iv. A new car for ₹ 5,00,000 was purchased and Amar (proprietor) gave his personal car valued at ₹ 1,00,000 in
exchange. Car was recorded in the books of account at ₹ 4,00,000.
v. The advance of ₹ 50,000 for the purchase of a building remained unadjusted.
vi. An old discarded asset was sold for ₹ 5,000 against cash which was used by the proprietor for his personal
use. ₹ 5,000 was included in Cash-in-Hand.
vii. Amrish, proprietor of Amrish & Co. sold his old car for ₹ 2,00,000 against cheque which is deposited in his
savings account.
33. Gopal Sharma maintains incomplete records of his business. He wants to know the result of his business on 31st [6]
March, 2023 and for that following information are available:

items 1st April, 2022 (₹) 31st March, 2023(₹)

Cash in hand 1,50,000 1,75,000

Bank balance 7,50,000 6,00,000

Furniture 1,00,000 1,00,000

Stock 5,00,000 4,50,000

Creditors 3,50,000 4,00,000

Debtors 2,50,000 3,00,000

Personal expenses of Gopal Sharma paid from business account amounted to ₹ 4,80,000 and goods worth ₹
20,000 were withdrawn by him for personal use. He sold ornaments of his wife for ₹ 3,50,000 and invested that
amount into the business. Calculate his profit or loss.
OR
Mr. A started business with a capital ₹ 5,00,000. At the end of the year his position was:

Particulars ₹

Cash in hand 15,000

Cash at bank 70,000

Sundry debtors 1,20,000

Stock 2,40,000
 Furniture 75,000

Machinery 2,00,000

Sundry creditors on this date totalled ₹ 80,000. During the year, he introduced a further capital of ₹ 1,50,000 and
withdrew for household expenses ₹ 90,000.
You are required to calculate profit or loss during the year.
34. From the following figures prepare the Trading and Profit and Loss Account for the year ended 31st March, 2023 [6]
and the Balance Sheet as at that date:-

Particulars ₹ Particulars ₹

Stock (1st April, 2022) 75,000 Sundry Debtors 82,000

Purchases 8,00,000 Loan from X 10,000

Sales 12,00,000 Interest on X Loan 1,500

Motor Car 1,50,000 Furniture 20,000

Car Expenses 42,000 Land and Building 2,00,000

Rent 5,500 Capital 2,50,000

Salaries 35,200 Sundry Creditors 91,300

Bad Debts 1,500 Returns Inward 7,500

Provision for bad debts 8,100 Returns Outward 6,000

Commission (Cr.) 4,600 Cash in hand 16,400

Wages 1,25,000

Insurance 8,400

Adjustments:-
i. Commission include ₹ 1,600 being commission received in advance.
ii. Write off ₹ 2,000 as further Bad-debts and maintain Bad-debts provision at 5% on debtors.
iii. Expenses paid in advance are: Wages ₹ 5,000 and Insurance ₹ 1,200.
iv. Rent and Salaries have been paid for 11 months.
v. Loan from X has been taken at 18% p.a. interest.
vi. Depreciate furniture by 15% p.a. and Motor Car by 20% p.a.
vii. Closing Stock was valued at ₹ 60,000.
OR
From the following particulars taken out from the books of Anand General Store, prepare trading and profit and loss
account for the year ended 31st March 2013 and balance sheet as on that date.

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

Plant and machinery on 1st April

16,00,000 Rent 24,000
2012

Plant and machinery purchased on 1st Insurance premium paid from 1st January 2012 to
40,000 2,400
July, 2012 31st December, 2013
Sundry debtors 2,40,000 Cash at Bank 10,800

Creditors 64,000 Wages 40,000

Furniture 10,000 Octrol 800

Motor car 1,40,000 Advertising 9,600

Purchases 3,20,000 Carriage Inwards 20,400

Sales 5,60,000 Carriage Outwards 4,000

Sales Returns 30,000 Fuel and Power 31,400

Salaries 72,000 Majoj's capital 7,00,000

Opening Stock 1,20,000 Majoj's drawings 24,000

Motor Car Expenses 12,000 Brokerage 1,400

Stationery 1,000 Donation 10,200

Additional Information
i. Closing stock Rs 1,10,000 stock valued at Rs 20,000 was destroyed by fire on 18th March, 2013 but the insurance
company admitted a claim of Rs 13,600 only which was received in April, 2013.
ii. Stationery for Rs 300 was consumed by the proprietor.
iii. Goods costing Rs 2,400 were given away as charity.
iv. A new signboard costing Rs 3,000 is included in advertising.
v. Rent is to be allocated 2/3rd to factory and 1/3rd to office.
vi. Depreciate machinery by 10% and motor car by 20%.