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 Series ARSP/11 Set ~ 11
Roll No. Q.P Code 15/11/11
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 11 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. When goods are sold on credit the seller prepares: [1]

a) Invoice b) Accounting Voucher

c) Cash Memo d) Transfer Voucher

2. Assertion (A): The main objective of book-keeping is to ascertain the profit or loss and financial position of the [1]
business.
Reason (R ): Book-keeping includes identifying, measuring and recording of financial transactions 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. Rule of Debit and Credit for Impersonal account is [1]

a) Dr. the receiver and Cr. the giver b) Dr. all expenses and Cr. all gains & Dr. what
goes out and Cr. what comes in

c) Dr. all expenses and Cr. all gains d) Dr. what goes out and Cr. what comes in
4. Which equation is correct out of the following: [1]
i. Liabilities = Assets + Capital
ii. Assets = Liabilities - Capital
iii. Capital = Assets + Liabilities
iv. Capital = Assets - Liabilities

a) Statement (ii) is Correct. b) Statement (iv) is Correct.

c) Statement (i) is Correct. d) Statement (iii) is Correct.

 OR
Voucher is prepared from:

a) Ledger Account b) All of these

c) Source Documents d) Journal Entry

5. When a trader sells goods on credit, he prepares a sale ________ which contains the name of the party to whom [1]
goods are sold, the rate, quantity and the total amount of sale.

a) both bill and invoice b) bill

c) memo d) invoice
6. Income statement include [1]

a) Profit and loss account only b) Trial Balance only

c) Balance sheet only d) Statement of profit and loss

OR
Which one of the following is not an objective of accounting?
A. To provide information about the assets, liabilities and capital of the enterprise
B. To provide information about the private assets and liabilities of the proprietor
C. To maintain records of the business
D. To provide information regarding the profit and loss of the enterprise

a) Statement (D) is correct. b) Statement (B) is correct.

c) Statement (A) is correct. d) Statement of (C) is correct.

7. Reserve created for maintaining a stable rate of dividend is termed as [1]

a) Specific Reserves b) Capital Reserves

c) General Reserves d) Dividend equalization fund

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
Which of the following is not a type of personal account?

a) Ram's A/c b) Investment A/c

c) SBI Bank A/c d) Atul's Capital A/c

9. Accounting standards are formulated by [1]

a) By Companies Act b) By Institute of Chartered Accountants of

India

c) By Planning Commission d) By Institute of Company Secretaries of

India
10. According to the Convention of Consistency: [1]
 a. accounting policies and practices once adopted should be consistently followed.
b. accounting policies and practices adopted may be changed as per the management’s decision.
c. accounting policies and practices once adopted cannot be changed under any circumstances.
d. None of these

a) Statement (d) is correct b) Statement (c) is correct

c) Statement (b) is correct d) Statement (a) is correct

11. Provision is a: [1]

a) Capital Reserve b) Specific Reserve

c) None of these d) General Reserve

12. Bank overdraft is ________. [1]

a) contingent liability b) contingent liability

c) long-term liability d) short-term liability

13. A trader made the following transactions. Total of Purchase Book on the basis of these transactions will be: [1]
i. Goods purchased from Gopal ₹ 8,000
ii. Goods purchased from Sumit for Cash ₹ 10,000
iii. Goods purchased from Kunal on credit ₹ 25,000
iv. Machinery purchased from Dhiraj on credit ₹ 40,000

a) ₹ 73,000 b) ₹ 33,000

c) ₹ 83,000 d) ₹ 25,000
14. Goods costing ₹ 20000 have sold for cash at 25 % profit. By what amount cash will increase [1]

a) ₹ 20500 b) ₹ 25000

c) ₹ 15000 d) ₹ 15500
15. Tangible Asset is: [1]

a) Stock b) Prepaid Expenses

c) Patents d) Goodwill
OR
Current assets do not include
Stock, Short term investment, Prepaid expenses, Unearned income

a) Prepaid expenses b) Short term investment

c) Stock d) Unearned income

16. Which of the following entries are recorded in journal proper? [1]

a) All of these b) Endorsement and dishonor of bills

of exchange

c) Purchase of items on credit other than goods d) Goods withdrawn by the owner for personal
use
17. The arrangement is made for meeting future uncertainties: [1]
 a) Investments b) Reserves

c) Provisions d) Provisions and Reserves

18. Explain the procedure of balancing personal accounts. [3]
OR
Journalise the following transactions:
i. Goods destroyed by Fire for ₹ 5,000.
ii. Paid by cheque ₹ 25,000 as wages on the installation of a Machinery.
iii. Issued a cheque in favour of M/s Sudarshan Saran & Sons on account of purchase of goods ₹ 75,000.
iv. Goods sold costing ₹ 60,000 to M/s Karan Sons at an invoice price 10% above cost less 5% Trade discount.
19. Give two advantages of GST. [3]
OR
Why fixed assets are not shown in the books at market value?
20. Distinguish between debtors and creditors. [3]
21. Prepare a trial balance form the following balances taken on 31st March, 2013 [4]

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

Capital 3,75,000 Purchases 3,22,950

Drawings 36,000 Sales 5,70,000

Debtors 85,500 Miscellaneous Expenses 12,300

Creditors 42,750 Miscellaneous Receipts 5,400

Land and Building 2,70,000 Bad debts 10,650

Plant 1,80,000 Bills debts 7,500

Stock on 1st April,2012 34,200 Bills Receivable Loan from Naina 30,000

Factory Expenses 24,900 Interest on Naina's Loan 4,500

Office Expenses 11,550 Cash in Hand 12,600

Purchases Return 9,000 Goodwill 15,000

Stationery 750

Freight 3,750

22. Record the following transactions in a cash book with cash and bank columns: [4]

2023 ₹

Jan. 1 Bank overdraft 12,000

Cash in hand 2,300

Jan. 7 Cheque received from Laxman ₹ 4,000 and discount allowed ₹ 200

Jan. 8 Deposited the above cheque into Bank 4,000

Jan. 12 Banked 200

Jan. 15 Received a money order from Ganesh 500

 Jan. 16 Money is withdrawn from Bank for office use 300

Jan. 18 Bank Charges 20

Jan. 20 Interest on bank overdraft 1,000

23. In the following Bank Reconciliation Statement, determine the missing amounts: [4]
BANK RECONCILIATION STATEMENT
as on 31st March, 2023

Plus Items Minus items

Particulars
(₹) (₹)

Balance as per Cash Book (Dr.) 16,000

(i) Cheques of ₹ 30,000 deposited into bank but cheques of ₹ 17,500 only
- -
cleared

(ii) Cheques of ₹ 40,000 issued but cheques of ₹ 21,000 presented for

- -
payment

(iii) Receipt column of Cash Book overcast by ₹ 500 - -

(iv) Interest on Investment collected by bankers 600

(v) Bank charges debited by bank 400

(vi) Direct deposit made by the customer ₹ 400 - -

Balance as per Pass Book - -

36,000 36,000

OR
Prepare a Bank Reconciliation Statement from the following particulars on 31st March, 2023:
Bank Statement showed a favourable balance of ₹ 12,400.
i. Cheques amounting to ₹ 45,000 were drawn on 27th March, 2023 of which cheques of ₹ 33,000 were encashed
on 2nd April, 2023.
ii. Cheque issued returned on technical grounds ₹ 4,000.
iii. Bank recorded a Cash deposit of ₹ 3,210 as ₹ 3,120.
iv. Bill for collection not advised by the bank but credited to our account ₹ 8,000.
v. A bill for ₹ 10,000 was retired by the Bank under a rebate of ₹ 200 but the full amount of the bill was credited in
the bank column of the Cash Book.
24. Pass Journal entries in the books of Shyam Bros, from the following transactions: [6]
2016
June 1 - Shyam Bros, started the business with cash ₹ 80,000; Goods ₹ 40,000 and furniture ₹ 20,000.
June 2 - Sold goods to Nitin of the list price of ₹ 20,000 at a trade discount of 10%.
June 4 - Nitin returned goods of the list price of ₹ 4,000.
June 8 - Received from Nitin₹ 14,150 in full settlement of his account.
June 10 - Purchased goods from Krishna of the list price of ₹ 10,000 at 15% trade discount.
June 13 - Returned goods to Krishna of the list price of ₹ 1,000.
June 16 - Settled the account of Krishna by paying cash, under a discount of 4%.
 June 18 - Purchased goods from Aman ₹ 5,000; Suraj ₹ 10,000.
June 19 - Paid cash to Aman ₹ 1,900 and discount received ₹ 100.
June 20 - Paid ₹ 9,800 to Suraj in the full settlement of his account.
June 20 - Bought a ‘Table Fan’ for ₹ 8,000 for the domestic use of Shyam.
June 25 - Sold goods for cash of the list price of ₹ 8,000 at 10% trade discount and 3% cash discount.
June 30 - Paid Rent ₹ 8,000; Trade Expenses ₹ 7,000 and Travelling Expenses ₹ 3,800.
OR
Following transactions of Rajesh for April, 2023 are given below. Journalise them.

2023 ₹

April 1 Rajesh started business with cash 1,00,000

April 2 Paid into bank 20,000

April 3 Bought goods for cash 50,000

April 4 Drew cash from bank for office use 10,000

April 13 Sold goods to Karan 15,000

April 20 Bought goods from Sumit 22,500

April 22 Karan returned goods 2,000

April 24 Received from Karan 12,500

Allowed him discount 500

April 28 Paid cash to Sumit 21,500

Discount received 1,000

April 30 Sold for Cash to Manoj, Raman and Mohan 80,000

April 30 Paid rent 5,000

April 30 Paid salary 10,000

25. Rectify the following errors: [6]

i. Purchases Book is overcast by ₹ 500.
ii. Salary paid to an employee, Mr. Abhi, is debited to his Personal Account ₹ 3,000.
iii. Goods sold to Mehak on credit ₹ 300 have been wrongly passed through the Purchases Book.
iv. Total of Returns Inward Book has been added ₹ 9 short.
v. Purchase of chair from Happy Traders for ₹ 35 has been entered in the Purchases Book as ₹ 53.
OR
Give Journal Entries to rectify the following errors:
i. ₹ 2,000 paid for furniture purchased has been debited to Purchases Account.
ii. ₹ 3,000 paid to Ram Lal for salary were debited to his Personal Account.
iii. ₹ 500 paid for proprietor’s medical bill were debited to Sundry Expenses Account.
iv. Typewriter purchased for ₹ 7,500 has been wrongly passed through the Purchases Book.
v. An Office Table purchased for ₹ 5,000 has been passed through an invoice book.
vi. An amount of ₹ 1,200 spent on annual white-washing was debited to Building A/c.
 vii. ₹ 800 paid for Rent wrongly debited to Landlord’s A/c.

26. On 1st April, 2019 Manwar Ltd purchased 10 machines of ₹ 30,000 each. On 30th June, 2020, one machine out [6]

of the 10 machines purchased on 1st April, 2019 was sold for ₹ 24,000 and on 31st December, 2021 one more

machine was sold for ₹ 22,500. A new machine was purchased on 30th September, 2022 for ₹ 32,000. The
company has adopted the practice of providing depreciation at 10% per annum on original cost of machine. The
company closes its books on 31st March, every year. You are required to prepare machinery account upto 31st
March, 2023.
OR
On 1st October 2014, Bansal Pvt. Ltd. purchased machinery for Rs 12,00,000. On 31st May, 2016, a part of the
machinery purchased on 1st October 2014 for Rs 1,60,000 was sold for Rs 60,000. On the same date, fresh
machinery was purchased for Rs 3,00,000. Depreciation is provided at 20% per annum on the written down value
method and the books are closed on 31st March each year. You are required to prepare (a) Machinery Account, (b)
Provision for Depreciation Account, and (c) Machinery Disposal Account.
Part B
27. Incomplete records system suitable for which type of business: [1]

a) Tea shop b) Washer man

c) All of these d) Flower shop

OR
Calculate profit if closing capital is Rs.14,250, additional capital is Rs.200, opening capital is Rs.11,300 and
drawings @ Rs.100 per month

a) Rs.5,950 b) Rs.6,950

c) Rs.3,950 d) Rs.1,950
28. Choose the Liquid Assets from the following: [1]

a) None of these b) Prepaid Expenses

c) Stock d) Loose Tools

29. Closing Stock was shown at ₹ 49,500 while preparing the final accounts. Later on it was discovered that it was [1]
overvalued by 10%. What was the effect on Current Year’s profit?

a) Increase in gross profit and net profit by ₹ b) Decrease in gross profit and net profit by ₹
4,950 4,500

c) Decrease in gross profit and net profit by ₹ d) Increase in gross profit and net profit by ₹
5,500 4,500
OR
A trial balance contains Debtors ₹ 15,000, Bad Debts ₹ 400 and Provision for Doubtful Debts ₹ 600. Further bad
debts given in adjustments are ₹ 400. If a provision at 5% is made on Debtors, P & L A/c will be debited with:

a) ₹ 800 b) ₹ 950

c) ₹ 1,130 d) ₹ 930

30. From the following information, Gross Profit for the year ended 31st March, 2023: [3]

Transaction ₹
 Opening Stock (1st April, 2022) 50,000

Freight and Packing 20,000

Sales 3,80,000

Goods purchased during the year 2,80,000

Closing Stock (31st March, 2023) 60,000

Packing Expenses on Sales 12,000

31. State with reasons whether the following are capital or revenue expenditures: [3]
i. A new machine is purchased for ₹ 60,000, ₹ 800 were spent on its carriage and ₹ 1,500 were paid as wages
for its installation.
ii. A sum of ₹ 10,000 was spent on painting the new factory.
iii. ₹ 5,000 paid for the erection of a new machine.
iv. ₹ 2,000 were spent on repairs before using a second-hand generator purchased recently.
v. ₹ 1,500 were spent on the repair of machinery.
vi. ₹ 10,000 was paid as brokerage on the issue of shares and other expenses of the issue were ₹ 25,000.
32. What is meant by provision for doubtful debts? How are the relevant accounts prepared and what journal entries [3]
are recorded in final accounts? How is the amount for provision for doubtful debts calculated?
33. Radheshyam does not keep proper records of his business. Following information is available from records kept [6]
by him

Items 1st April 2023 (₹) 31st March 2023 (₹)

Cash 20,000 18,000

Bank 30,000 33,000

Debtors 17,000 25,000

Stock 40,000 60,000

Fixed assets 29,000 29,000

Creditors 52,000 32,000

Loan 10,000 25,000

Radheshyam withdrew from the business ₹ 3,000 per month upto 30th September, 2022 and thereafter ₹ 4,000
per month as drawings ₹ 50,000 realised by the proprietor as maturity value of national saving certificates was
invested in the business.
Prepare a statement showing net profit (or net loss) for the year.
OR
Mahesh commenced business on 1st April, 2022 with a capital of ₹ 50,000.
On 1st January, 2023, he introduced ₹ 25,000 into the business of which ₹ 10,000 was borrowed from Rahul. His
position on 31st March, 2023 was as under:
Assets: Cash in hand ₹ 4,000; Bank (Cr.) ₹ 6,500; Debtors ₹ 24,000; B/R ₹ 18,600. Stock ₹ 25,400; Furniture ₹
15,000; Prepaid expenses ₹ 1,000.
Liabilities: Creditors ₹ 13,500; B/P ₹ 4,800; Rahul’s Loan ₹ 10,000; Outstanding expenses ₹ 700. Actual drawings
were not known but his living expenses are ₹ 1,000 p.m. Depreciate furniture by 10%. Interest on the loan is due to
 @12% p.a.
Ascertain his profit or loss for the year 2022-23 & prepare a final statement of affairs.
34. The undermentioned Trial Balance was extracted from the books of M/s Madhav & Sons as at 31st March, 2023: [6]
TRIAL BALANCE

Dr. (₹) Cr. (₹)

Capital 3,50,000

Drawings 48,000

Goodwill 15,000

Plant and Machinery 2,50,110

Purchases 95,000

Sales 3,00,000

Sundry Debtors 54,200

Creditors 16,800

Sales Returns 20,700

Purchase Returns 1,200

Advertising 6,000

Opening Stock 45,400

Cash in hand 22,900

Wages 25,000

Telephone Charges 3,000

Salaries 36,000

Printing and Stationery 390

Sundry Income 7,500

Rent 2,200

Investments 30,000

General Expenses 22,600

Bills Payable 1,000

6,76,500 6,76,500

You are required to prepare Final Accounts after taking into account the following adjustments:-

i. Closing Stock on 31st March, 2023 was valued at ₹ 70,300.

ii. Write off th of Advertising expenses.
1

iii. Sundry debtors include an item of ₹ 2,000 due from a customer who has become insolvent and nothing is
recoverable from his estate.
iv. Create a provision for Doubtful Debts @ 5%.
 v. Interest on Investments at 15% is receivable for the full year.
vi. Annual payments are: Salaries ₹ 43,200 and Rent ₹ 2,400.
OR
From the following trial balance of M/s Amit & Sons as at 31st, March, 2023 prepare trading and profit and loss
account for the year ended 31st March, 2023 And Balance Sheet as at that date:

Debit Credit
Name of Accounts L.F.
Balance (₹) Balance (₹)

Capital ____ 80,000

Drawings 18,000 ____

Sales ____ 1,55,000

Purchases 82,600 ____

Stock (1st April, 2022) 42,000 ____

Returns 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 ____

Total 2,80,500 2,80,500

Adjustments:
i. Closing Stock ₹ 64,000.
ii. Wages outstanding ₹ 2,400.
iii. Bad debts ₹ 600.
iv. Provision for Doubtful debts to be 5%.
v. Rent is paid for 11 months.
vi. Loan from the bank was taken on 1st Oct. 2022.
vii. Provide depreciation on machinery @ 10% p.a.
viii. Provide Manager’s commission at 10% on net profit after charging such
commission.