Accounts 11

DELHI PUBLIC SCHOOL
Indirapuram, Ghaziabad
Assignment Booklet
(Class - XI : ACCOUNTS)
SYLLABUS BREAKUP
UNITS
MARKS
Part A: Financial AccountingI

Unit 1. Theoretical Framework
Unit 2. Accounting Process and Special Accounting Treatment
Part B: Financial AccountingII
Unit 3. Financial statements of Sole Proprietorship:
from complete and Incomplete Records
Unit4. Financial Statements of Not-for Profit Organisations
Unit5. Computers in Accounting
Part C: Project Work
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Assignment Booklet
MONTH WISE SYLLABUS BREAKUP

April & May (Unit 1)
1.
Introduction to Accounting
2.
Basic Accounting Terms
July
1.
Theory Base of Accounting (Unit 1)
2.
Accounting Equation (Unit 2)
3.
Rules of Debit and Credit (Unit 2)
4.
Source Documents and Preparation of vouchers (Unit 2)
5.
Journal, Ledger posting and preparation of Trial Balance (Unit 2)
August
Cash Book and ledger (Unit 2)
September
1.
Bank Reconciliation statement (Unit 2)
October
1.
Subsidiary Books and ledger posting unit (2)
2.
Depreciation
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Revision For Half Yearly Examination
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November
1.
Provision and Reserves
2.
Accounting for Bills of Exchange
3.
Rectification of Errors (Unit 2)
December
1.
Rectification of Errors (continues) (Unit 2)
2.
Financial statements of Sole Proprietorship (Unit 3)
January (Unit 4)
Financial Statements of Not-for-Profit Organisations.
Accounts from Incomplete Records
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Revision For Annual Examination
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Assignment Booklet
ASSIGNMENT
Introduction to Accounting
Q.1. Define Accounting and state its objectives.
Q.2. Accounting is an Art as well as a Science. Explain the statement.
Q.3. Differentiate between Book Keeping & Accounting.
Q.4. Accounting information should be comparable. Do you agree with this statement?
Give reason.
Q.5. List any four users who have indirect interest in accounting.
Q.6. Explain any two limitations of Accounting.
Q.7. Explain the qualitative characteristics of Accounting information.
Q.8. If the accounting information is not clearly presented, which of the qualitative
characteristics of the accounting information is violated?
3Q.9. Accounting can also be recognized as a language because it communicates each
and every thing about the business activities, viz. profitability, solvency and its
future prospects to various users viz. management, investors, creditors, banks etc.
Books of accounts are its script and rules of debit and credit are its style i.e.,
ways of expression. Like any other language, one needs to study accounting in
such a way that one is able to learn, converse in and communicate the same in
best possible manner. Identify the value(s) being reflected by the functions of
accounting.
Sol: value(s):
(i)
Human Interaction: By communicating the profitability solvency of the
business to its users viz. Management, investors, etc.
(ii)
Transparency: By recording all the activities of business, it will show the true
and fair position of the business entity.
(iii) Sharing: By sharing its information with users viz. Management, investors,
banks, creditors, etc.
Basic Accounting Terms
Q.1. Define the following terms:(i)
Trade Receivables
(ii)
Capital
(iii) Current Assets
(iv)
(v)
(vi)
Discount
Financial Transaction.
Non Current Liabilities
Q.2. Differentiate between

(i)
Capital Expenditure and Revenue Expenditure.
(ii)
Revenue Expenditure and Deferred Revenue Expenditure.
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Assignment Booklet
Q.3. Debts or obligations that the business enterprise has to pay are known as liabilities.
For example, goods purchased on credit, loan taken from bank or any financial
institution etc. Liabilities are to be shown on the liabilities side of the Balance
Sheet. Identify the value(s) being reflected above.
Sol: The values are:
(i)
Honesty: By showing all its obligation or debts on the liability side, business
entities can prove that they are honest.
(ii)
Recognition: By recognizing its obligation or debts under the separate head
known as liabilities in the Balance Sheet.
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Theory Base of Accounting
Q.1. Why is it necessary for accountants to follow accounting principles?
Q.2. Complete the following sentences with appropriate words:(i)
(ii)
(iii)
(iv)
(v)
(vi)
Everything a firm owns, it also owes out to somebody. This co-incidence is

explained by the _____________concept.
If a firm believes that some of its debtors may default, it should act on this
by making sure that all possible losses are recorded in the books. This is an
example of the _________ concept.
The___________ concept states that if straight line method of depreciation is
used in one year, then it should also be used in the next year.
The fact that a business is separate & distinguishable from its owner is best
exemplified by the ___________concept.
A firm may hold stock which is heavily in demand consequently, the market
value of this stock may be increased. Normal accounting procedure is to
ignore this because of the ____________ concept.
The management of a firm is remarkably incompetent but the firms
accountants cannot take this into account while preparing book of accounts
because of __________concept.
Q.3. Why is it necessary to adopt a consistent basis for the preparation of financial
statements? Explain.
Q.4. What is Matching concept? Why should a business concern follow this concept?
Discuss.
Q.5. Discuss the concept based on the premise do not anticipate profits but provide for
all losses.
Q.6. What is the difference between IFRS and Indian GAAP or Accounting Standards?
Q.7. Explain Cash Basis of Accounting.
Q.8. What is the difference between Cash Basis of Accounting and Accrual Basis of
Accounting?
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Q.9. State any two disadvantages of Cash Basis of Accounting.

Q.10. State any two advantages of Accrual Basis of Accounting.
Q.11. Going concern means with the expectation of continuing indefinitely. This
concept underlines the assumption that the enterprise has neither any intention nor
any necessity to close the business. The chances to cease to operate the business
are too remote. Identify the value(s) involved in the assumption of going concern.
(i)
Growth: By following the Going Concern Assumption, the business activities
are to be carried out for growth and future prospects.
(ii)
Preparing for the future: By following the assumption of going concern;
entity always intend to prepare for the future.
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Recording of Business Transactions
Accounting Equation
Q.1. Which of the following is correct?
(i)
Assets = Liabilities capital
(ii)
Assets = Capital liabilities
(iii) Assets = liabilities + capital
(iv) Assets = external equities
Q.2. Which of the following is correct?
(i)
Opening capital = Closing capital + additional capital- profit Drawings.
(ii)
Opening capital = Closing capital + Drawing Additional capital loss.
(iii) Opening capital = Closing capital + Drawing Additional capital Profit.
Q.3. Accounting equation holds good under all circumstances Justify this statement
with the help of five illustrations.
Q.4. (i)
(ii)
(iii)
Sonu started a business on 1. 1. 2005 with a capital of Rs. 10,000 & a loan
of Rs. 5,000 borrowed from Bharat. On 31st December 2005, his assets
were Rs. 30,000. Find out his capital as on 31. 12. 2005 & Profit made or
losses incurred during the year 2005.
If in the above problem during 2005, the proprietor had introduced
additional capital of Rs. 5, 000 & had withdrawn Rs. 3,000 for personal
purposes, find out the profit.
If in the above problem on 31st Dec 05, apart from loan, Sonu owes Rs.
2500 to a supplier of goods, Find out his capital as on 31st Dec 05 & Profit.
Q.5. Prepare Accounting Equation from the following:(i)

Started business with cash Rs. 75, 000 & goods Rs. 25,000.
(ii)
Paid rent Rs. 2,000.
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(iii)
(iv)
Bought goods for cash Rs. 30,000 & on credit for Rs. 44,000.
Goods costing Rs. 50,000 sold at a profit of 25% out of which Rs. 27,500
received in cash.
(v)
Purchased a Motor cycle for personal use for Rs. 20,000.
(vi) Purchased furniture from Shyam for Rs.15,000.
(vii) Rent due but not received Rs.500.
(viii) Payment made to Creditors Rs.42, 000 in full settlement.
(ix) Rent paid Rs. 12,000 for 15 months.
(x)
Purchased a computer from computer plaza worth Rs. 45,000. 50%
payment made in cash and remaining is to be paid three months later.
Q.6. Prepare Accounting equation from the following & also prepare a Balance sheet :(i)
(ii)
(iii)
Reema started business with cash Rs. 1, 50,000

Bought goods for cash Rs. 80,000 & on credit for Rs. 40,000.
Sold goods to Anil costing Rs.20,000 at a profit of 10% and allowed him
10% Trade Discount and 10% Cash Discount. Received half of the amount
in cash and balance half by cheque.
(iv) 1/4th of the remaining goods were sold at a profit of 10% on cost and half of
the payment was received in cash.
(v)
Paid for rent Rs. 2,000 & for salaries Rs. 4,000.
(vi) Goods costing Rs. 20,000 sold for Rs. 18,500 for cash.
(vii) Wages Outstanding Rs. 1,200.
(viii) Rent paid in advance Rs.1,100.
(ix) Commission received in advance Rs. 600.
Q.7. Give one example of each of the following transactions
(i)
Increase in asset, Increase in liability.
(ii)
Decrease in asset, Decrease in liability.
(iii) Increase in assets, Increase in capital.
(iv) Decrease in assets, Decrease in capital.
(v)
Increase in Asset, Decrease in Asset.
(vi) Increase in Liability, Decrease in Liability.
Q.8. Which value is reflected in the concept of accounting equation?
Ans. Value:- Equality In accounting equation, assets are equal to Capital and liabilities.
Hence, the value of equality is reflected in the concept of accounting equation.
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Rules of Debit and Credit
Q.1. What is an account?
Q.2. Explain Representative Personal Accounts.
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Q.3. Classify the following (both Traditional and Modern Classification) :(i)
Bank A/c
(iv) Outstanding Salary A/c
(v)
Bank Overdraft A/c
(ii)
Salary A/c
(iii) Capital A/c
Q.4. On which side will the increase in the following accounts be recorded?
(i)
Purchases A/c
(iv) Capital A/c
(vi) Creditors A/c
(ii)
Building A/c
(iii) Rent received A/c
Q.5. All business transactions can be recorded in the books of account by using the
traditional approach or modern approach of accounting equation. Identify the
values which are being reflected by the rules of debiting and crediting the business
transactions.
(i)
Recognition: The value of recognition by recognizing the account to be
debited or credited is being reflected.
(ii)
Transparency: By recording all the transaction as per the rule, the entities
can show true and fair view of business concern.
Source Documents and Preparation of Vouchers
Q.1. Differentiate between Debit note and Credit note
Q.2. How is Accounting Voucher prepared?
Q.3. The documents which provide evidence of business transactions are called source
documents. These source documents provide all necessary information about the
nature of business transactions and all the amount involved therein. Identify the
values being reflected by preparing all source of documents.
(i)
Responsibility: By preparing all source documents, management fulfills its
responsibility towards all stakeholders.
(ii)
Respect for law: By maintaining the source documents entity not only
follows the guidelines issued by the Institute of Chartered Accountants of
India but can also show these documents as evidence in the court of law.
Journal, Ledger and Trial Balance
Q.1. What is narration?
Q.2. What is an opening entry?
Q.3. What is a compound entry? Give example.
Q.4. Why Journal is called Book of Original Entry?
Q.5. Differentiate between Trade Discount and Cash Discount.
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Assignment Booklet
Q.6. Journalise the following transactions:

(i)
Paid rent of building Rs. 12,000, Half of the building is used by the
proprietor for residential use.
(ii)
Paid fire insurance of the above building in advance Rs. 1,000.
(iii) Paid life Insurance premium Rs. 2,000.
(iv) Paid income tax Rs. 3,000
(v)
Salary due to clerk Rs. 500.
(vi) Charge depreciation on furniture @ 10% p.a. for one month (Furniture
Rs. 12,000)
(vii) Provide interest on capital (Rs. 60,000) at 15% p.a. for six months.
(viii) Charge interest on drawing (Rs. 10,000) at 18% p.a. for two months.
Q.7. Journalise the following transactions: (i)
Purchased a motorcar for Rs. 60,000 & paid Rs. 5,000 for its repair &
renewal.
(ii)
Received Rent Rs. 500
(iii) Goods worth Rs. 2,000 were distributed as free samples.
(iv) Charge depreciation on Motorcar Rs. 6,500.
(v)
Rent due to landlord Rs. 1,000 & salary due to clerks Rs. 8,000.
(vi) Rs.750 due from Sanjay Gupta is bad debts.
(vii) Goods uninsured worth Rs. 5,000 were destroyed by fire
(viii) Cash Rs. 500 & goods worth Rs 2,000 were stolen by an employee.
(ix) Goods destroyed by fire: cost price Rs.40,000, Sale price Rs. 50,000.
(x)
Sold household furniture for Rs. 5,000 in cash and paid the money into
business.
(xi) Goods costing Rs. 80,000 sold to Anuj at an invoice price 20% above cost
less 20% trade discount.
(xii) Goods destroyed by fire Rs. 20,000. Insurance company admitted the claim
85% and the claim was received.
(i)
Cheque received from Ram and not deposited into bank the same day.
(ii)
Collection of dividend by bank on our behalf.
(iii) Cheque received from Ram deposited into the bank.
(iv) Deposited cheque dishonoured.
(v)
Repayment of bank loan by issue of cheque.
Q.9. Complete the journal by filling entries corresponding to the narration or narration
corresponding to the journal entries given below:
Date
2008
March 1
Particulars
L.F
Dr
To
(Being goods sold to sunny of
list price Rs. 20,000 at 10%
trade discount)
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Debit (Rs.)
Credit (Rs.)
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March 3
March 4
March 8
March 12
March 15
March 23
March 27
March 31
Assignment Booklet
Dr
To Cash A/c
To
(Being cash paid Rs. 11,500, in
full settlement of Rams
account of Rs. 12,000)
Dr
Dr
To sales A/c
(Being goods sold for cash of
the list price Rs. 15,000 at 10%
trade discount & 1% cash
discount)
Machinery A/c
Dr
To Bank A/c
(Being ---------------------------)
Advertisement A/c
Dr
To
(Being goods costing Rs. 9,000
distributed as free sample)
50,000
50,000
9,000
9,000
Dr
To Sales A/c
(Being goods sold to sunil on
credit costing Rs. 26,000 at a
profit of 20% on cost)
Dr
To
To
(Being Rent paid Rs. 7,000 and
rent due Rs. 3,000 to the
landlord)
Cash A/c
Dr
Bad debts A/c
Dr
To
(Being 25 paise in a rupee
received from the estate of
Gajan on his insolvency)
Depreciation A/c
Dr
To Machinery A/c
(Being ---------------------------)
6,000
600
600
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Assignment Booklet
Q.10. Goods worth Rs. 5,000 were destroyed by fire and the insurance company
admitted the claim of Rs. 3,500.
(i)
Journalise the above transaction.
(ii)
Identify the values involved in the above transaction.
Sol:
Date
Particulars
L.F. Debit
Credit
(Rs.)
(Rs.)
Loss by fire A/c
Dr.
5,000
To Purchases A/c
5,000
(Being goods destroyed by fire)
Insurance Company A/c
Dr.
3,500
Profit & Loss A/c
Dr.
1,500
To Loss by Fire A/c
5,000
(Being insurance company admitted the claim)
Values:
(i)
Safety: The business has worked towards safety by taking insurance policy
for goods.
(ii)
Responsibility: The business has shown responsible behavior by insuring the
goods and preparing for any future contingencies.
Q.11. Why is ledger called Principal Book of accounts?
Q.12. (i)
The following balances appeared in the books of Sh. Ashok chakravarti as

on 1st January 1994:-
Assets
Cash Rs. 20,000; Stock Rs. 45,000; Anil Brothers Rs.15,600; Gopal
Rs.22,000; Machinery Rs.60,000;
Liabilities Mohan Kapur Rs. 4,000.
Following transaction took place in January 1994:
1994:Jan 3
Sold goods for cash Rs. 5,000 and on credit Rs.8,000 to Anil bros.
Jan5
Anil Bros. returned goods for Rs.2,000
Jan 7
Purchased goods from Mohan Kapur, list price Rs.6,000 valued at
Rs. 5,400
Jan 8
Bought goods of the list price of Rs. 20,000 from Raghu Thakur, less
15% trade discount and 5% cash discount and paid 60% price
immediately.
Sol:
Pass Journal entries for the above transactions, post them into ledger, balance the
accounts and prepare Trial Balance.
(ii)
Identify the value(s) involved in the above case.
Value: Division of Work:- By maintaining various journals and ledgers accounts.
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Assignment Booklet
Q.13. Journalise the following transactions, post them into ledger, balance the accounts
& prepare Trial Balance
(i)
Started Business with cash Rs. 1,00,000
(ii) Purchase goods Rs. 10,000 from Ram
(iii) Sold goods for cash RS. 10,000 (Cost of Rs. 8,000)
(iv) Drawings Rs. 1,000
(v) Rent paid Rs. 500
Q.14. What are the objectives of Trial Balance?
Q.15. Identify the value(s) reflected in preparing Trial Balance.
Sol:
The values are:

(a)
Doing your Best: By preparing Trial Balance, the entities can show true and
fair view of the business concern.
(b)
Honesty: By preparing Trial Balance, the Management can show the value
of honesty towards all stakeholders.
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Bills of Exchange
Q.1. Fill in the blanks:
(i)
A bill of exchange is an _________in writing given by creditors to the
debtors.
(ii)
The debtor on whom the bill of exchange is drawn is called the________.
(iii) A promissory note is a _________ in writing given by the debtor to the
creditor.
(iv) When a bill is endorsed by the drawer, he is called an __________.
(v)
A bill of exchange is called a ________ by one who is liable to pay it on the
due date.
(vi) The person other than the original creditor, to whom the amount in the bill is
made payable is Known as the _________of the bill.
Q.2. A bill for Rs. 10,000 is drawn by A on B and accepted by the latter. Show what
Journal entries would be recorded in the books of both the parties under each of
the following circumstances.
(i)
If A retained the bill till the due date and then realized it on maturity.
(ii)
If A discounted it with his Bank for Rs. 9,800.
(iii) If a endorsed the bill to Z in settlement of a debt of Rs. 9,500.
(iv) If a sent the bill to his bank for collection.
Q.3. Amit draws on Raj three Bills of Exchange for Rs. 5,000, Rs. 8,000 and Rs. 10,000
respectively for goods sold to him on 1st Dec, 2011. These bills were for one
month, two months and three months respectively. The first bill was endorsed to
Rihan. The second bill was discounted with the bank on 4th December, 2011 @
10% p.a. discount and the third bill was sent to bank for collection on 28th
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February, 2012. On the due dates all the bills were duly met by Raj. The bank sent
collection advice for the third bill after deducting Rs. 40 as collection charges. Pass
journal entries in the books of Amit and Raj.
Q.4. On 1st January, 2011, Hiten owed Rs. 40,000 to Abhishek. On 1st February, he
sent a promissory note to Abhishek for the amount payable, after 3 months. On the
due date, the promissory note was dishonoured, noting charges being Rs. 100.
Give the journal entries in the books of Abhishek in each of the following cases:(i)
The promissory note is held till maturity.
(ii)
The promissory note is endorsed in favour of Ritesh in full settlement of a
debt of Rs. 41,000.
(iii) The promissory note is discounted with the bank at 10% p.a. immediately.
Q.5. A drew a bill of Rs. 1,000 on B for 3 months which was duly accepted by the latter.
A endorsed the bill to C in full payment of his own acceptance to C for a like
amount. C endorsed the bill to B. Pass Journal entries in the books of A,B and C.
Q.6. Leena sold goods to Meena on 1st March, 2009 for Rs. 68,000 and drew two Bills
of Exchange of the equal amount upon Meena payable after three months. Leena
immediately discounted the first bill with her bank at 12% p.a. The bill was
dishonoured by Meena and Bank paid Rs. 55 as noting charges.
The second bill was retired on 4th May, 2009 under a rebate of 6% p.a. with
mutual agreement.
(i)
Journalise the above in the books of Leena and Meena.
(ii)
Identify the value(s) which according to you have been violated in the above
case.
Sol: Values violated:
(a)
Responsibility: By not honouring the bill.
(b)
Courtesy: Meena has not shown courtesy towards Leena by not honouring
the bill on due date.
Q.7. On 15th April, 2009 A agrees to draw on B, who is his Debtor for Rs. 2,400, three
bills of exchange : No. 1 for Rs. 700 at 1 month, No. 2 for Rs. 800 at 2 months,
and No. 3 for Rs. 900 at 3 months. B accepts and returns these bills to A. On 20th
April, 2009 A endorsed the first bill to his creditor C, in full settlement of his
account for Rs. 710. He discounted the second bill on 22nd April for Rs. 792.
The first bill was met on maturity. The second bill was dishonoured Rs. 10 being
the noting charges. A agreed to draw on B a fourth bill for Rs. 825 at 3 months.
The third and fourth bills were met on the due dates. Record the Journal entries in
the books of A, B and C.
Q.8. On 15th January, 2006 Sachin sold goods for Rs. 30,000 to Narain and drew upon
later a bill for the same amount payable after 3 months. The bill was accepted by
Narain. The bill was discounted by Sachin from his bank for Rs. 29,250 on 31st
January, 2006. On maturity the bill was dishonoured. He further agreed to pay Rs.
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10,500 in cash including Rs. 500 interest and accept a new bill for two months for
the remaining Rs. 20,000. The new bill was duly met by Narain on maturity. Give
the Journal entries in the books of Sachin.
Q.9. B owed to A Rs. 60,000 on 1st January, 2009. On the same date, A drew upon B a
bill for the amount at 2 months and B returned the bill duly accepted. A got the bill
discounted at his bank @ 15% p.a. Before the bill was due for payment, B told A
that he will not able to pay the full amount and requested A to accept Rs. 20,000
immediately and draw upon him another bill for the remaining amount for 2
months together with interest @ 18% p.a. A agreed. The second bill was duly met.
Give the Journal entries in the books of both A and B.
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Cash Book
Q.1. Cash Book is both journal as well as ledger. Explain the statement.
Q.2. Define the following:(i)
Contra Entry
(ii)
Bank Charges
(iii) Bank Overdraft
Q.3. Multiple choice questions:
(i)
Cash book is used to record
(a)
All receipts only,
(b)
All payments only
(c)
All cash & credit sales
(d)
All receipts & payments of cash
(ii)
Which of the following is correct?

(a)
Cash book is a journal & not a ledger.
(b)
Cash book is ledger & not a journal.
(c)
Cash book is both a journal & a ledger.
(iii)
When a firm maintains a simple cashbook, it need not maintain

(a)
Sales journal
(b)
Purchase journal
(c)
General Journal
(d)
Cash A/c in the Ledger
(e)
Bank A/c in the ledger
(iv)
When a cheque is returned dishonoured, it is recorded in ;

(a)
Cash column on the Cr. side.
(b)
Cash column on the Dr. side.
(c)
Bank column on the Cr. side.
(vi)
If the Dr. as well as Cr. Aspects of a transaction are recorded in the cash
book itself, it is called:
(a)
an opening entry
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(b)
(c)
(d)
(vii)
Assignment Booklet
a compound entry
a transfer entry
a contra entry
Bank column of cash book may show:

(a)
Only a Dr. balance
(b)
Only a Cr. Balance
(c)
Either Dr. or a Cr. Balance
(viii) When a firm maintains Double column cash Book, it need not maintain:
(a)
Cash A/c in the ledger
(b)
Bank A/c in the ledger
(c)
Discount A/c in the ledger
(d)
Both cash A/c & Bank A/c in the ledger.
Q.4. (i)
2011
April 1
April 1
April 2
April 3
April 5
April 6
April 7
April 8
April 9
April 10
April 11
April 12
April 13
April 14
April 15
April 16
April 17
(ii)
Sol:
Prepare a Triple Column Cash Book from the following transactions of Mr.
Shiv Kumar of Chandigarh.
Commenced business with cash Rs. 1,50,000.
Purchased furniture for Rs. 20,000.
Deposited Rs. 70,000 in the newly opened Bank Account.
Purchased goods from Mohan worth Rs. 15,000.
Purchased goods from Gopal worth Rs. 20,000 at 10% Trade Discount and
5% Cash Discount.
Sold goods to Mahesh for Rs. 5,000.
Sold goods to Rachit for Rs. 10,000.
Received cheque from Mahesh. Allowed him Cash discount @ 5%.
Withdrew Rs. 30,000 from the bank out of which Rs. 12,000 were used to
pay domestic expenses.
Received a B/R from Rachit.
Maheshs cheque deposited in the bank.
Paid Rs. 5,000 as Donation to a Blind School.
Rachits B/R discounted through bank at a discount of 10%.
Maheshs cheque returned dishonoured.
Paid cheque to Mohan after deducting a cash discount of 5%.
Paid to cleaner in cash Rs. 600.
Loan given to Rajesh Rs. 10,000.
Identify the value(s) involved in the above transactions.

Values:
(a)
Responsibility: Owner has shown responsibility towards society by paying
donations to a blind school.
(b)
Courtesy: Owner has shown courtesy by allowing discount to debtors for
prompt payments.
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Q.5. Prepare a Triple Column Cash Book from the following transactions:
2011
Sept 1
Cash in hand
Bank Overdraft
Sept 2
Cash received from the sale of shares
Sept 4
Received from Mohan a cheque for Rs. 980 in full
Settlement of a claim of Rs. 1,000
Sept 4
Received a cheque from subhash for the sale of goods
Sept 6
Discounted bill for Rs. 10,000 returned dishonoured.
Sept 10
Mohans cheque returned dishonoured
Sept 12
Received from Ved Rs. 6,000, half of the amount was
deposited into bank on the same day.
Sept 13
Received a cheque from Ram Lal on account Rs. 290
and allowed him discount of Rs. 40.
Sept 14
Paid Bills Payable by cheque
Sept 15
Instructed the bank to issue a Bank draft for Rs. 5,000 in
favour of Suresh. The bank charged Rs. 10 for issuing the
draft.
Sept 16
Placed an order with Vikas for goods Rs. 1,000 and sent
cheque for Rs. 1,000 with the order.
Sept 17
Withdrew from bank for paying income tax.
Sept 18
B/R endorsed in favour of Mohit returned dishonoured.
Sept 19
Cheque received from Anil Rs. 15,000 and endorsed it in
favour of Sugandh in full settlement of Rs. 16,200.
Rs.
40,000
15,000
5,000
22,000
600
1,000
Q.6. Prepare a Triple Column Cash Book from the following transactions:2011
April 1
Cash in Hand Rs. 5,000; Overdraft at bank Rs. 15,000.
April 3
Further Capital introduced Rs. 20,000 out of which Rs. 16,000 deposited in
the bank.
April 5
Sold goods for cash Rs. 13,000.
April 6
Settled the account of Mohan Rs. 750 by paying cash Rs. 680.
April 10
An amount of Rs. 500 due from Gupta Brothers written off as bad debts in
the previous year, now recovered.
April 11
Received a cheque for Rs. 700 from Anil; endorsed to Rahul on 19th April.
April 13
Purchased goods from Manmohan Rs. 10,000.
April 15
Shyam who owed Rs. 400 became bankrupt and paid 60 paise in a rupee.
April 16
Cash purchases Rs. 800 less trade discount 5%.
April 18
Received cheque from Rakesh Rs. 3,450. Allowed him discount Rs. 100.
April 19
Withdrew for office use Rs. 2,000.
April 20
Purchased postage stamps Rs. 50.
April 21
Paid for office furniture Rs. 500.
April 22
Purchased typewriter for Rs. 1,500.
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Assignment Booklet
April 23
April 24
April 25
April 26
April 27
April 28
April 29
April 29
April 29
Paid for furniture repair Rs. 150.

Purchased a mobile for personal use Rs. 4,000.
Paid for V.P.P of goods from Luckhnow Rs. 275.
Sent money order to Lakshman Rs. 250.
Money order commission Rs. 10.
Received from Ram, who owes Rs. 4,000, Rs. 1,500 only on account.
Interest allowed by bank Rs. 200.
Income tax paid by cheque Rs. 1,500.
Recovered from the Manager Rs. 200 being excess travelling allowance
drawn by him.
April 29
Settled a debt of Rs. 1,200 by cheque receiving a discount of 5%.
April 29
Purchased 50 bonds for Rs. 100 each at Rs. 95 each and paid for them by
cheque.
April 30
Received a money order Rs. 500.
Received Rs. 2,000 for a Bill of Exchange from Hari Ram and deposited the
same into bank.
Paid Rs. 5,000 on account of repayment of loan from Bank including Rs.
1,000 as interest on Loan.
Sold goods for Rs. 12,500, received cheque for them, discount allowed 1%.
Deposited with the bank the entire balance after retaining Rs. 1,000 at office.
Q.7. Enter the following transactions in the three columnar cash book with cash, bank
and discount columns:
Oct, 2010
1
Cash in hand Rs. 5,000; Bank overdraft Rs. 9,500.
3
Sold goods to Ram on credit Rs. 10,000.
5
Bought goods from Mahesh for Rs. 8,000 and paid by cheque under 2%
discount.
7
Received two cheques from Ram for Rs. 4,000 and for Rs. 6,000.
9
Cheque received from Ram for Rs. 4,000 was deposited in bank but chque
for Rs. 6,000 was endorsed to Sohan in full settlement of his claim for Rs.
6,200.
11
Withdrew cash from bank for office use Rs. 3,000.
15
Withdrew cash from bank for domestic use Rs. 2,000.
18
Bought furniture for Rs. 4,000 and issued cheque. Also paid carriage charges
Rs. 100.
21
Bought goods for cash Rs. 3,000 and paid carriage charges Rs. 50.
25
Goods sold for cash Rs. 5,000; 60% amount deposited in bank.
27
Bank charges interest Rs. 500 and bank charges were Rs. 200.
30
Deposited the cash into bank in excess of Rs. 4,000.
=============================================
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Assignment Booklet
Subsidiary Books
Q.1. Multiple choice Questions:
(i)
Purchases Book is used to record:
(a)
All purchases of goods.
(b)
All credit purchases.
(c)
All credit purchases of goods.
(d)
All credit purchases of assets other than goods.
(ii)
Sales Book is used to record:

(a)
All sales of goods.
(b)
All credit sales.
(c)
All credit sales of assets other than goods.
(d)
All credit sales of goods.
(iii)
Purchases Return Book is used to record:

(a)
Return of goods purchased for cash.
(b)
Return of fixed assets purchased on credit.
(c)
Return of goods purchased on credit.
(iv)
Sales Returns Book is used to record:

(a)
Return of fixed assets sold on credit.
(b)
Return of goods sold for cash.
(c)
Return of goods sold on credit.
Q.2.(i)From the following transactions, prepare the Purchases Book of Jindal & Co., a
saree dealer.
Date
3.1.2006
8.1.2006
15.1.2006
31.1.2006
Particulars
Purchased on credit from Goyal Mills, Surat, 55 Polyester Sarees@ Rs.100,
Less :Trade discount @10%
Purchased for cash from Garg Mills ,Kota, 50 Kota Sarees @ Rs.40.
Purchased on credit from Mittal Mills, Bangalore 10 Silk sarees @ Rs.260,
Less :Trade discount @10%
Purchased on credit from Bansal & Co. 2 typewriters @ Rs.3,500
(ii)
Sol:

Values:
(a)
Division of work: Business has shown division of work by dividing books of
original entries into various special purpose journals.
(b)
Courtesy: Suppliers have shown courtesy by allowing discounts.
Q.3. From the following transactions, prepare the Sales Return Book of Gupta & Co, a
saree dealer.
Date
Particulars
5.1.2006 Goyal & Co.,Rohtak, Returned 2 Polyester Sarees @ Rs.125
10.1.2006 Accepted return of goods(which were sold for cash) from Garg & Co, Bhiwani,10
Kota Sarees @Rs.50
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Assignment Booklet
17.1.2006 Mittal & Co, Hisser returned 2 Silk sarees @ Rs.325

31.1.2006 Mohan Returned old Typewriter@ Rs.500
Q.4. From the following information prepare Sales Book of Sheesh Mahal furniture
House :
2005
April 1
Sold goods to Rahul Furniture House, Karnal

14 Almirahs @ Rs. 2,000 each.
04 Sofasets @ Rs. 5,250 each
Trade discount 15%
April 12
Sold on credit to Neelam Machinery Store

4 old Machinery @ Rs. 350 per machine
2 old type writers for Rs. 840 per type writer
April 15
Sold goods to Prem Furniture House, Faridabad

60 Chairs @ Rs. 420 each
Less 5% Trade discount
April 20
Sold goods to Rohan Furniture House, New Delhi

60 Tables @ Rs. 560 each
Less: discount 10%
April 28
Sold to Sunlight Furntiure Co. for cash

40 Tables @ Rs. 200 each.
=============================================
Provision & Reserves
Q.1. What is meant by provision?
Q.2. What is meant by Reserve?
Q.3. Differentiate between Provisions and Reserves.
Q.4. Differentiate between General Reserve and Specific Reserve.
Q.5. Multiple Choice Questions:
(i)
(ii)
(iii)
Provision is :
(a)
charge against the profits
(b)
Appropriation of profits
If the amount of any Known Liability cannot be determined with substantial
accuracy:
(a)
A definite liability should be created
(b)
A provision should be created
(c)
A reserve should be created
If the amount of any known liability can be determined with substantial
accuracy:
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(a)
(b)
(c)
Assignment Booklet
A definite liability should be created

A provision should be created
A reserve should be created
Q.6. Provision means setting aside a part of the profits for meeting a liability in future,
the amount of which is not known accurately at the time of finalization of financial
statements. Identify the values being reflected in creating provisions.
(i)
Preparing for future: Entity prepares itself for the future by creating provision
out of profits for meeting liability in the future.
(ii)
Safety: By creating the provision entity secures itself from the actual loss
arising in the future.
(iii) Recognition: Provision is a charge against profits and by recognizing the
provision management shows a true and fair financial position of the entity.
(iv) Responsibility: By creating the provision entity shows its responsibility
towards the investors/owners by securing them from the future liability.
=============================================
Depreciation
Q.1. Define Depreciation.
Q.2. State the objectives for providing depreciation.
Q.3. State the merits of Straight Line Method.
Q.4. State the demerits of Written Down Value Method.
Q.5. Distinguish between Depreciation & Obsolescence.
Q.6. Multiple choice Questions:(i)
Depreciation is related to
(a)
Current asset
(c)
Fixed asset
(b)
Investment
(ii)
The amount of depreciation remains constant year after year under:
(a)
Written Down Value Method
(b)
Straight line Method
(iii) Depreciation is:
(a)
A fall in the original cost of an asset
(b)
A fall in the Market value of an asset
Q.7. (i)
X ltd. which closes its books of account every year on 31st march, purchased
on 1st October, 2001 machinery costing Rs. 4,40,000. It purchased further
machinery on 1st April, 2002 costing Rs.5,20,000. On 30th June 2003, the
first machine was sold for Rs. 2,50,000 & on the same date a fresh machine
was installed at a cost of Rs. 3,00,000. On 1st July 2004, the second
machine purchased on 1st April 2002 was sold for Rs. 3, 25,000.
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Sol:
Assignment Booklet
The company writes off depreciation at 10%p.a. on fixed installment method

each year. Show the Machinery A/c for all the four years
(ii)
Identify the value(s) being reflected in the above case:
Values shown by business are:
(a)
Preparing for future: Business has prepared for future by providing
depreciation on Machinery.
(b)
Respect for law: Business has shown respect for law by charging
depreciation on Machinery.
Q.8. A company whose accounting year is a calendar year, purchased on 1st April, 2003
machinery costing Rs. 30,000.
It purchased further machinery on 1st October, 2003 costing Rs. 20,000 and on 1st
July, 2004 costing Rs. 10,000
On 1st January, 2005 one-third of the machinery installed on 1st April, 2003
became obsolete and was sold for Rs. 3,000.
Show how Machinery Account would appear in the books of the company. It
being given that machinery was depreciated by Fixed Installment method at 10%
p.a. What would be the value of Machinery Account on 1st January, 2006?
Q.9. On 1st January, 2004, machinery was purchased by X for Rs. 50,000. On 1 st July,
2005, additions were made to the extent of Rs. 6,400.
On 30th June, 2007 machinery, the original value of which was Rs. 8,000 on 1st
January, 2004, was sold for Rs. 6,000. Depreciation is charged at 10% p.a. on the
original cost.
Show the Machinery Account for the years from 2004 to 2007 in the books of X.
X closes the books on 31st December.
Q.10. Raja Textiles co. which closes its books on 31st Dec, Purchased a machine on 1-11988 for Rs. 50,000. On 1-7-1989, it purchased an additional machine for
Rs. 30,000. The part of the machine which was purchased on 1-1-1988 costing
Rs. 10,000 was sold for Rs. 3,600 on 30 June 1991.Prepare Machinery A/c for four
Years, if the depreciation is provided @ 10% p.a. on Diminishing Balance method.
Q.11. A company whose accounting year is the calendar year purchased on 1st April,
2001 machinery costing Rs. 30,000. It further purchased machinery on 1st
October, 2001 costing Rs. 20,000 and on 1st July, 2002 costing Rs. 10,000.
On 1st January, 2003 one-third of the machinery installed on 1st April, 2001
became obsolete and was sold for Rs. 3,000.
Show how the Machinery Account would appear in the books of company if
Depreciation is charge at 10% p.a. on Written Down Value Method.
Q.12. The following information relates to Tit-Bit & Companys Machinery Account:
Amount (in Rs.)
Balance of Machinery Account as on 1st January, 2006
6,00,000
st
Machinery purchased on 1 July, 2006
2,50,000
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Q.13.
Q.14.
Q.15.
Q.16.
Assignment Booklet
On 1st October, 2006, a machine, the original cost of which was Rs. 80,000 (which
was purchased on 1st April, 2005) was sold for Rs. 60,000.
Assume that Depreciation was charged @ 10% p.a. on the Diminishing Balance
Method. Show the Machinery Account in the books of Tit-Bit & Company for the
year ended 31st December, 2006.
ABC Ltd. Purchased on 1st April, 2006 a small plant for Rs. 1,00,000. On 1st
October, 2006 an additional plant was purchased costing Rs. 50,000. On 1st
October, 2007 the plant purchased on 1st April, 2006, having become obsolete,
was sold for Rs. 40,000. Depreciation is provided @10% p.a. on the original cost
on 31st March every year. Show the Machinery and Provision for Depreciation
Accounts for the years 2006-07 and 2007-08.
On 1st April, 2003, X Ltd. Purchased a machinery for Rs. 12,00,000. On 1st
October, 2005, a part of the machinery purchased on 1st April, 2003 for Rs. 80,000
was sold for Rs. 45,000 and a new machinery at the cost of Rs. 1,58,000 was
purchased and installed on the same date. The company has adopted the method
of providing 10% p.a. depreciation on the Diminishing Balance of the machinery.
Show the necessary Ledger accounts assuming that (i) Provision for Depreciation
Account is not maintained, (ii) Provision for Depreciation Account is maintained.
The accounting year ends on 31st March.
On 1st January, 2000 X Ltd. Purchased from Y Ltd. a plant costing Rs. 4,00,000 on
installment basis payable as follows:
on 1st January, 2000
Rs. 1,00,000
on 1st July, 2000
Rs. 1,00,000
st
on 1 January, 2001
Rs. 1,00,000
st
on 1 January, 2002
Rs. 1,00,000
The company spent Rs. 10,000 on transportation and installation of the plant. It
was decided to provide for Depreciation on the Straight Line Method. Useful life of
the plant was estimated at 5 years. It was also estimated that at the end of the
useful life, realizable value of the plant wuld be Rs. 12,000 (gross) and dismantling
cost of plant, to be paid by company was estimated at Rs. 2,000. The plant was
destroyed by fire on 31st December, 2003 and an insurance claim of Rs. 50,000
was admitted by the insurance company. Prepare the Plant Account and
Accumulated Depreciation Account assuming that the company closes its books on
31st December every year.
A machine was purchased on 1st October, 1998 at a cost of Rs. 3,00,000 & Rs.
20,000 were spent on its installation. The Depreciation is written off at 10% p.a. on
diminishing Balance Method. The books are closed on 31st March every Year.
The machine was sold for Rs. 1,30,000 on 1st July 01. Show the machinery A/c &
Provision for Depreciation A/c for all the years.
=============================================
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Assignment Booklet
Bank Reconciliation Statement

Q.1. Who prepares a Bank Reconciliation Statement?
Q.2. When can a Bank Reconciliation Statement be prepared?
Q.3. Why is the preparation of BRS necessary?
Q.4. State any two causes of disagreement between the balances shown by the Cash
book & Passbook.
Q.5. (a)
The bank column of a Cash Book showed a debit balance of Rs. 45,000 on
30th June, 2011. From the following particulars, ascertain the Bank Balance
that would appear in the Bank Pass Book:
(i)
Two cheques one for Rs. 4,000 and another for Rs. 6,000 were collected by
the bank in the first week of July, 2011 although they were banked on 26th
June, 2011.
(ii)
Out of total cheques, amounting to Rs. 8,000 issued as donations to Mandir,
Mosques, Gurudwara and church; cheques amounting to 3,400 have been
presented for payment in June 2011, cheques aggregating Rs. 2,500 were
encashed in July 2011 and the rest have not been presented at all.
(iii) On 29th June, 2011 the bank credited the sum of Rs. 1500 in error.
(iv) A cheque of Rs. 600 received, deposited and credited by bank, was
accounted as a receipt in the cash column of the Cash Book.
(v)
Bank has made payment of Rs. 5,000 for fire insurance premium during the
month of June under standing order.
(vi) The Bank has paid a bill payable amounted to Rs. 10,000 but it has not
been entered in the Cash Book and a bill receivable of Rs. 5,000 which was
discounted with the bank was dishonoured by the drawer on the due date.
(vii) Withdrawal Column of the Pass Book undercast by Rs. 200.
(viii) Bank collected a cheque of Rs. 600 but wrongly credited it to the account of
another customer.
(ix) The credit balance of Rs. 1,500 as on Page 10 of the Pass Book was
recorded on Page 11 as a debit balance.
(x)
Pass Book showed that bank had collected Rs. 4,000 as interest on Govt.
Securities.
(b)
Sol:
Values:
(i)
Secularism: By giving donations to Mandir, Mosque, Gurudwara and
Church, business has shown the value of secularism.
(ii)
Safety: By paying insurance premium, business has ensured safety from any
possible fire accident.
(iii) Doing Your best: By investing in government securities, business has played
safely.
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Assignment Booklet
Q.6. Prepare a Bank Reconciliation Statement as on 31st March, 2011 from the
following information:
(i)
Balance as per the Pass Book is Rs. 22,000.
(ii)
Dividend directly collected by bank Rs. 125.
(iii) Payment of a cheque of Rs. 450 was recorded twice in the Pass Book.
(iv) Bank recorded a cash deposit of Rs. 2,589 as Rs. 2,598.
(v)
Bills for collection not advised by the bank but credited to the account, Rs.
16,000.
(vi) A cheque for Rs. 7,500 drawn on the Savings Account has been shown as
drawn on current Account.
(vii) A cheque of Rs. 2,000 received form Mr. Gupta was recorded in the Cash
Column of the Cash Book but was not banked.
(viii) Cheques amounting to Rs. 8,000 drawn on 25th March, 2011 of which
cheques or Rs. 5,000 were encashed on 2nd April, 2011.
(ix) A bill of Rs. 10,000 was retired by the bank under rebate of Rs. 150 but the
full amount was credited in the Cash Book.
(x)
Cheques of Rs. 10,000 were sent to the bank for collection. Out of these,
cheques of Rs. 2,000 and of Rs. 1,000 were credited respectively on 7th April
and 9th April.
Q.7. On 31st December, 2008, the Cash Book of a merchant showed a bank
overdraft of Rs. 1,50,000. From the following particulars, prepare a Bank
Reconciliation Statement and show what balance the Bank Pass Book would
indicate on 31st December, 2008.
(i)
A cheque of Rs. 15,000 received from Gopal and deposited in the bank was
dishonoured but the non-payment advice was not received from the bank till
1st January, 2009.
(ii)
A post-dated cheque for Rs. 100 has been debited in the bank column of the
Cash Book but under no circumstances was it possible to present it.
(iii) During the month, the total amount of cheques for Rs. 94,000 were
deposited into the bank but out of them, one cheque for Rs. 11,160 has
been entered into the Pass Book on 5th January.
(iv) During the month, cheques for Rs. 89,500 were drawn in favour of creditors.
Of them, one creditor for Rs. 38,500 encashed his cheque on 7th January
whereas another for Rs. 4,320 has not yet been encashed.
Q.8. Prepare a Bank Reconciliation Statement from the following particulars as on
31st December, 2008, when the Pass Book shows a debit balance of Rs. 4,500.
(i)
Rs. 800 in respect of dishonoured cheque were entered in the Pass Book but
not in the Cash Book.
(ii)
Cheques amounting to Rs. 8,000 drawn on 25th December of which cheques
of Rs. 5,000 cashed in January, 2009.
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Assignment Booklet
(iii)
Cheques paid into bank for collection of Rs. 5,000 but cheques of Rs. 2,200
could be collected in December, 2008.
(iv) Cheques dishonoured and debited by the bank but not given effect to it in
the Ledger Rs. 800.
(v)
Bank charges debited by the bank but Debit Memo not received from the
bank Rs. 50.
(vi) A bill for Rs. 6,000 dishonoured on 30th December, 2008 and bank paid
Noting charges Rs. 20.
This bill was discounted on 30th October, 2008.
(vii) The Bank Pass Book shows credit for Rs. 1,000 representing Rs. 400 paid by
debtor directly into the bank and Rs. 600 collected directly by the bank in
respect of interest on investment.
(viii) A cheque of Rs. 1,080 credited in the Pass Book on 28th December, being
dishonoured is debited again in the Pass Book on 1st Jaunuary, 2009. There
was no entry in the Cash Book about the dishonour of the cheque until 15th
January.
(ix) Out of Rs. 20,500 paid in by Mr. X in cash and by cheques on 31st
December, cheques amounting to Rs. 7,500 were collected on 7th January.
(x)
Out of cheques amounting to Rs. 7,800 drawn by him on 27th December, a
cheque for Rs. 2,500 was encashed on 3rd January.
(xi) A bill for Rs. 3,000 (discounted with the bank in November) dishonoured on
31st December, 2008 and noting charges paid by the bank Rs. 100.
=============================================
Rectification of Errors
Q.1. What is a Suspense Account?
Q.2. What is a Rectifying Entry?
Q.3. If a Trial Balance tallies, can it be concluded that there are no errors?
Q.4. Name the errors which do not affect the Trial Balance.
Q.5. Name the errors which affect the Trial Balance.
Q.6. (a)
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Rectify the following errors:Goods for Rs.5,500 were purchased from Modern Traders on credit, but no
entry has yet been passed.
Purchase Return for Rs.1,500 not recorded in the books.
Goods for Rs.2,000 sold to Geeta Traders on credit were entered in the
sales book as Rs.200 only.
Goods of the value of Rs.1,800 returned by Sunil & co. were included in
stock, but no entry was passed in the Books.
Goods purchased for Rs.900, entered in the purchases book as Rs.9,000.
An invoice for goods sold to X was overcast by Rs.100
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Assignment Booklet
(b)
Sol:

Values shown by the business are:
(i)
Honesty: By rectifying the mistakes business has shown the value of honesty.
(ii)
Respect for Law: By showing true and fair view of the business concern.
Q.7. Give Journal entries to rectify the following errors:(i)
Goods purchased from Ajay for Rs.2,600 were recorded in Sales Book by
mistake.
(ii)
Goods taken by proprietor for Rs.1,000 has not been entered in the books at
all.
(iii) A cheque of Rs.500 received from X was credited to the account of Y &
debited to cash instead of Bank A/c.
(iv) A cheque of Rs. 1,300 received from Ram Lal was dishonoured & debited to
General Expense A/c.
(v)
A cheque of Rs.6,500 received for the loss of stock by fire from Insurance
Company has been deposited in the proprietors Bank A/c.
(vi) A sum of Rs.3,000 drawn by the proprietor for his private travel was debited
to Traveling Expense A/c.
(vii) Credit purchase of Rs.500 from Ajay was posted to the credit of Vijay.
(viii) An amount of Rs.1,600 due from Chandan Lal was written off as Bad debt
in previous year, was unexpectedly received this year, & has been credited
to the A/c of Chandan Lal.
Q.8. In taking out a Trial Balance, An Accountant finds an excess debit of
Rs.1,098.Being desirous of closing his books he places the difference to Suspense
A/c and later on he detects the following errors:(i)
Goods purchased from Surinder for Rs. 350 has been credited to his A/c as
Rs. 530.
(ii) Goods sold to Dinesh for Rs. 800 have been debited to his A/c as Rs. 880
(iii) A cheque of Rs. 1,250 received from a debtor had been correctly entered in
the Cash Book but posted to his personal A/c as Rs. 1,200.
(iv) Rs. 780, paid for freight on Machinery Purchased was debited to Freight A/c
as Rs. 708.
(v)
Goods of the value of Rs. 130 returned by a customer, Navin Kumar had
been posted to the debit of his A/c.
(vi) Rs. 1,440 paid for Repairs to Motor Car were debited to Motor Car A/c as
Rs. 1400.
(vii) Rs. 500 being purchase return were posted to the debit of Purchase A/c.
Give necessary rectifying entries & prepare Suspense A/c.
Financial Statements of Sole Proprietorship
Q.1. What is prepaid expense?
Q.2. What is Outstanding Expense?
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Assignment Booklet
Q.3. What is accrued income?

Q.4. Multiple choice Question:
(i)
Salaries & wages appearing in Trial Balance are shown

(a)
On the debit side of Trading A/c.
(b)
On the debit side of P&L A/c.
(c)
On the liabilities side of Balance sheet
(ii)
Wages & salaries appearing in Trial Balance are shown

(a)
On the debit side of Trading A/c.
(b)
(c)
On the liabilities side of the Balance sheet.
(iii)
Apprenticeship Premium received appearing in Trial Balance is shown:

(a)
(b)
On the credit side of P&L A/c.
(c)
On the asset side of Balance sheet.
(iv)
Prepaid Insurance appearing in the Trial Balance is shown :

(a)
On the credit side of Trading A/c.
(b)
On the asset side of Balance sheet.
(c)
On the credit side of P&L A/c.
(v)
Goodwill is:
(a)
Current Asset
(b)
Fictitious Asset
(vi)
(c)
(d)
Drawings are deducted from:

(a)
Sales
(c)
Returns outward
Tangible Asset
Intangible Asset
(b)
(d)
Purchases
Capital.
Q.5. State with reasons whether the following items of expenditure are of capital or
revenue nature:
(i)
A second-hand car was purchased for a sum of Rs. 50,000. A sum of Rs.
10,000 was spent on its overhauling.
(ii)
Rs. 2,500 paid for the installation of a new machine.
(iii) Repairs for Rs. 5,000 necessitated by negligence.
(iv) Cost of annual taxes paid and the annual insurance premium paid on the
car mentioned above.
(v)
Cost of airconditioning of the office of the General Manager.
Q.6. Calculate the Gross Profit when Total Purchases during the year are Rs. 8,00,000;
Return Outwards Rs. 20,000; Direct Expenses Rs. 60,000 and 2/3 rd of the goods
are sold for Rs. 6,10,000.
Q.7. From the following information, prepare the Trading Account for the year ended
31st March, 2011:
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Assignment Booklet
Amount (in Rs.)

Opening Stock
1,00,000
Wages
Purchases
2,80,000
Freight
Closing Stock
80,000
Carriage Inwards
The percentage of Gross Profit on sales is 20%.
Q.8. Pass Journal Entries for the following:(i)
For recording Closing Stock A/c in Trading A/c.
(ii)
For adjusting purchases for closing Stock.
(iii) For transferring gross profit to Profit and Loss Account.
(iv) For transferring Wages A/c to Trading Account.
(v)
For transferring Sales A/c to Trading Account.
(vi) For transferring Net Profit to Capital A/c.
(vii) For transferring Net Loss to Capital A/c.
(viii) For adjusting Rent A/c for pre-paid rent.
Amount (in Rs.)

2,000
3,600
1,000
Q.9.(a)
From the following Trial Balance extracted from the books of A, prepare
Trading & P&L A/c for the year ending 31st Dec, 2006 & a Balance sheet as on
that date:Trial Balance
Particulars
Furniture
Motor Vehicles
Building
Share in X Ltd.
Capital A/c
Bad debts
Prov. For bad Debts
Debtors & Creditors
Stock on Jan 1,2006
Purchases & sales
Bank Overdraft
Sales return & purchase return
Excise Duty
Interest on Bank overdraft
Commission
Cash in hand
Taxes & Insurance
Charity
Salaries
Dr.
640
4,250
7,500
2,000
Cr.
12,500
125
3,800
3,460
5,475
200
450
118
200
2,500
15,450
2,850
125
375
650
782
1250
3,300
34,000
The following adjustments are to made:

(i)
Stock in trade on 31st Dec, 2006 was Rs. 3,250.
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DELHI PUBLIC SCHOOL

Assignment Booklet
(ii)
(iii)
(iv)
(v)
(b)
Sol:
Depreciate Building at 5% & Furniture at 10%. Motor Vehicles @20% p.a.

Salaries Rs. 300 & taxes Rs. 200 are outstanding.
Insurance Premium amounting to Rs. 100 is prepaid.
Write off a further Rs. 100 as Bad debts & provision for doubtful debts is to
be made equal to 5% on Debtors
(vi) Rs 85 is due for interest on Bank overdraft.
(vii) One third of the commission received is in respect of work to be done next
year.
Which values are shown by business?
Values shown by business are:
(i)
Respect for law: By paying Excise duty the business has shown respect for
law.
(ii)
Empathy: By paying charity, the business has shown empathy towards
weaker section of the society.
(iii) Safety: Business has worked towards safety by making some investments
outsides the business i.e., in shares in X Ltd.
Q.10. From the following balances, prepare Final A/c of Mr. Bal Gopal:Particulars
Life
Insurance
Premium(self)
Stock(1-1-2005)
Return Inward
Furniture
Freehold property
Carriage Inwards
Advertising
S. Creditors
Return Outwards
Commission(cr)
Lighting
Loan from Bank
Wages & salaries
Amount
500
Particulars
Capital
P&M
Purchases
S.Debtors
Coal, gas & water
Carriage outwards
Sales
Discount (Dr)
Rent for premises sublet
Trade expenses
Stationery
Interest charged by Bank
Cash
7,500
1,000
4,600
10,000
400
200
4,850
500
600
250
5,000
7,500
Amount
40,000
12,500
36,000
10,500
1,000
100
60,000
400
500
8,650
2,000
450
7,900
Adjustments
(i)
Stock on 31st Dec 2005 was Rs. 10,000 & stationery unused at the end was
Rs. 400.
(ii)
Rent of premises sublet received in advance Rs. 100.
(iii) Provision for doubtful debts is to be created @ 10% on Debtors
(iv) Provision for Discount on Debtors is to be created @ 2%.
(v)
Stock of the value of Rs. 4,000 was destroyed by fire on 25th Dec 2005. A
claim of Rs. 3,000 has been admitted by Insurance Co.
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(vi)
Assignment Booklet
Bank Loan has been taken at 12% p.a. interest.
=============================================
Accounting for not-for-profit organisation
Q.1. Give two examples of Not- for -Profit Organisations.
Q.2. What is the purpose of setting up of a Not- for- profit organisation.
Q.3. Give two major sources of income of Not- for-profit organisation.
Q.4. Name the financial statements prepared by Not- for -profit organisations.
Q.5. Not- for- profit organisations do not maintain any capital account, What do they
maintain instead of capital account?
Q.6. A not for- profit organisation prepares Receipts and Payment A/c in spite of the
fact that they maintain cash book, which contains all this information Why?
Q.7. Explain the term deficit.
Q.8. What do you understand by Honorarium?
Q.9. Name the account which shows the classified summary of transactions of a Cash
Book in a not- for -profit organisation.
Q.10. What do Opening and Closing Balances of Receipt and Payment A/c show?
Q.11. What type of Account is the Income & Expenditure A/c?
Q.12. Name the account prepared by Not-For-Profit organisations which records Receipts
and Payments of Current Period only.
Q.13. Explain Fund-based Accounting.

Q.14. Explain the term endowment fund in brief.
Q.15. Name any two items which are shown in the debit side of Receipt and Payment
Account but are not shown in the Income and Expenditure Account.
Q.16. Differentiate between Receipts and Payments Account and Cash Book.
Q.17. Extract of Receipt and Payment A/c for the year ended March 31, 2006 are given
below.
Receipt
Subscriptions
Rs.
2004 2005
2,500
2005 2006
26,750
2006 2007
1,000
30,250
Additional information:Total No. of Members: 230
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Assignment Booklet
Annual Membership fee: Rs.125

Subscriptions Outstanding on April 01, 2005: Rs. 2,750
Prepare a Statement showing all relevant items of subscription Viz income,
advance, outstanding etc.
Q.18. (i)
(ii)
Show the following information in financial statement of a Not- for- Profit

Organisation.
Details
Amount(Rs.)
Match expenses
16,000
Match Fund
8,000
Donation for Match fund
5,000
Sale of Match tickets
7,000
What will be the effect, if match expenses go up by Rs.6,000 other things

remaining the same?
Q.19. Prize fund Rs.22,000; Interest on prize fund investment Rs.3,000; Prize given
Rs.5,000; Prize fund Investment 18,000. How would you treat above items in the
case of a not- for-profit organisation?
Q.20. Extract of a Receipt and Payment A/c for the year ended on March 31, 2006
Payments:Stationery Rs. 23,000
Additional Information
Details
Stock of stationery
Creditors for Stationery
April 1, 2005
4,000
9,000
March 31,2006
3,000
2,500
Q.21. What amount of sports material will be posted to Income and Expenditure Account
for the year ended March31,2006 as expenditure?
Rs.
Stock of sports materials as on April 1,2006
7,500
Creditors for sports material as on April 1,2006
2,000
Stock of sport material as on March 31,2007
6,200
Amount paid for sports material during the year 2006-2007 17,000
Advance paid for sports material as an March 31,2007
3,500
Creditors for sports material as on March 31,2007
1,200
Q.22. How would you treat the following items in the case of a Not-For-Profit
Organisation?
(i)
Tournament Fund Rs. 20,000; Tournament Expenses Rs. 6,000; Receipts
from Tournament Rs. 8,000.
(ii)
Billiard Match Expenses Rs. 2,500.
(iii) Prize Fund Rs. 10,000; Interest on Prize Fund Investments Rs. 1,000; Prize
paid Rs. 2,000; Prize Fund Investments Rs. 8,000.
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Assignment Booklet
(iv)
Receipts from Cinema Show Tickets Rs. 5,000; Expenses on Cinema Show
Rs. 1,500.
(v)
Expenditure on construction of Pavilion Rs. 6,00,000. The construction
work is in progress and not yet completed. Pavilion Fund as on 31 st March,
2010 Rs. 8,00,000. Donation for Pavilion received on 15th September,
2010 Rs. 10,00,000; Capital Fund as at 31st March, 2010 Rs. 20,00,000.
How will you deal with the above items while preparing the final accounts of
a social club for the year ended 31st March, 2011?
Q.23. How will you deal with the following case while preparing the final accounts of
National Club for the year ended 31st March, 2010:
RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT)
(for the year ended 31st March, 2010)
Dr.
Cr.
Receipts
Amount Payments
Amount
(in Rs.)
(in Rs.)
To Sale of Sports Materials
By Creditors for Sports Materials
30,500
(Book value Rs. 10,000) 13,000 By Cash Purchases of Sports Materials 5,000
Additional Information:-
Sports Materials
Creditors for Sports Materials
As at 1st April, 2009

In Rs.
10,000
3,500
As at 31st March, 2010

In Rs.
12,500
7,500
Q.24. The Treasurer of Royal Tennis Club presented the following Receipts and
Payments Account for the year ended 31st March, 2009:
RECEIPTS AND PAYMENTS ACCOUNT
(for the year ended 31st March, 2009)
Dr.
Cr.
Receipts
Cash at Bank (Opening)
Subscriptions
Court Hire
Amount(
in Rs.)
10,200
24,000
2,700
Payments
Purchases of Balls
Creditors for Refreshments
Marking and Repairing of Tennis Courts
Construction of New Court
Sundry Expenses
Cash at Bank (Closing)
71,100
He also provides the following additional information:

(i)
The Clubs Tennis Courts were valued at Rs. 1,00,00 on 1st April, 2008.
31
Amount(
in Rs.)
4,000
22,000
3,800
25,000
3,100
13,200
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Assignment Booklet
(ii)
Particulars
1.4.2008 31.3.2009
(in Rs.)
(in Rs.)
Tennis Ball in hand (At cost)
400
900
Creditors for Refreshments
4,000
3,000
Subscription Outstanding
2,000
3,500
st
Prepare the Income and Expenditure Account for the year ended 31 March, 2009 and
show the Balance Sheet as at that date.
Q.25. From The following Receipts and Payments A/c of sonic club and from the given
additional information prepare Income & Expenditure A/c for the year ending 31st
Dec, 2006 and the Balance sheet as on that date :Receipt & Payment A/c
Dr.
for the year ending 31st Dec, 2006
Cr.
Receipts
To Balance b/d
To Subscriptions
To interest on Investment @
8% P.a.for full year
Rs.
1,90,000
6,60,000
Payments
By Salaries
By Sports equipment
Rs.
3,30,000
4,00,000
40,000
By Balance C/d
1.60,000
8,90,000
8,90,000
Additional Information:(i)
The Club had received Rs. 20,000 for sub in 2005 for 2006
(ii)
Salaries had been paid only for 11 month
(iii) Stock of Sports equipment on 31st Dec,2005 was Rs.3,00,000 and on 31st
Dec,2006 Rs.6,50,000
Q.26.(a)
Following is the Receipts and Payments Account of ABC Club for the year
ending 31st March 2007. The Club was formed for the welfare of Blind children.
Receipts
Balance B/d
Subscriptions
(Including
Rs.100 for 2005-06 and
Rs.150 for 2007-08)
Interest & Investments
Sale of Furniture
(Book Value of Rs.250)
Realisation from charity show
Rs.
615
Payments
Salaries
Stationery
Rs.
3,120
3,550
2,025
300
Meeting expenses
Library Books
Investments
450
1,000
1,000
7,490
Balance c/d
285
1,000
1,635
7,490
Additional Information:(i)
On 1st April, 2006 the club had investments worth Rs.40,000, furniture
Rs.3,000, library books Rs.5,000 and salary outstanding Rs.260.
(ii)
On 31st March ,2007, salary outstanding are Rs.330.
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(b)
Sol:
Assignment Booklet
Prepare Income and Expenditure A/c for the year ending 31st March 2007 and the
Balance Sheet on that date.
Values:
(i)
Responsibility: By forming a not for profit organization for the welfare of
blind children.
(ii)
Doing your Best: By conducting charity shows for the welfare of blind
children.
=============================================
Accounts from Incomplete Records
Q.1. Choose the correct answer:
(i)
Incomplete record mechanism of book, keeping is:
(a) Scientific
(b) Unsystematic
(c) Unscientific
(d) Both (b) and (c)
(ii)
Opening capital is ascertained by preparing:

(a) Total debtors account
(b)
Total creditors account
(c) Cash A/c
(d)
Opening statement of affairs
(iii)
Generally, incomplete records are maintained by a:

(a) Trader
(c) Society
(b)
(d)
Company
Government
(iv)
When closing capital is less than opening capital, it denotes:

(a)Profit
(b)
Loss
(c) Loss if there is no drawing (d)
None
(v)
Credit purchase during the year is ascertained by preparing:

(a) Total creditors account
(b) Cash account
(c) Total debtors account
(d) Opening statement of affairs.
(vi)
When closing capital is greater than opening capital, it denotes:

(a) Profit
(b) Loss
(c) Profit if there is no introduction of fresh capital
(d) No profit
(vii)
If opening capital is Rs 60,000, drawings Rs. 5,000 capital introduced during

the period Rs. 10,000, closing capital Rs. 90,000. The value of profit earned
during the period will be:
(a) Rs. 20,000
(b) Rs. 25,000
(c) Rs. 30,000

(d) Rs. 40,000
Q.2. What practical difficulties are encountered by a trader due to incompleteness of

accounting records?
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Assignment Booklet
Q.3. Mrs. Shweta started her readymade garments business on April1, 2004 with a
capital of Rs. 50,000. She did not maintained her books according to double entry
system. During the year she introduced fresh capital of Rs. 15,000. She withdraw
Rs. 10,000 for personal use. On March 31, 2005 her assets and liabilities were as
follows:Total creditors Rs. 90,000; total debtors Rs. 1,25,600; stock Rs. 24,750; cash at
bank Rs. 24,980. Calculate profit or loss made by Mrs. Shweta during the first year
of her business using the statement of affairs method.
Q.4. The following information is obtained from the books of Mohan lal Trader:Debtors on April 01, 2005
50,000
Debtors on March 31, 2006
70,000
Cash received from debtors
60,000
Discount allowed
1,000
Bills receivable
30,000
Bad debts
3,000
Calculate credit sales
Q.5. Mr. Om Prakash did not keep his books of accounts under double entry system.
From the following information available from his records, prepare profit and loss
account for the year ending on March 31, 2005 and a balance sheet as at that
date, depreciating the washing equipment @ 10%.
Dr.
Receipts
To Bal b/d
To cash sales
To Received from debtors
Summary of cash
Amount
8,000
40,000
30,000
Cr.
Payments
By Cash Purchases
By paid to creditors
By S. expenses
By cartage
By Drawings
By Bal c/d
78,000
Amount
14,000
20,000
6,000
2,000
8,000
28,000
78,000
Other Information:
Debtors
Creditors
Stock of materials
Washing equipment
Furniture
Discount allowed during the year
Discount received
March 31, 2004 (Rs.)

9,000
14,400
10,000
40,000
3,000
March 31, 2005 (Rs.)

12,000
6,800
16,000
40,000
3,000
1,400
1,700
=============================================
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Assignment Booklet
HALF YEARLY EXAMINATION-2011-12

Time : 3 hrs
Set A
Max. Marks : 100
=============================================
General Instructions
(i)
Attempt all the parts of a question together.
(ii)
Marks are indicated against the question.
=================================================
Q.1. Define Financial Accounting.
[1]
Q.2. What is the difference between IFRS and Indian GAAP?
[1]
Q.3. State one disadvantage of Cash Basis of Accounting.
[1]
Q.4. Represent diagrammatically the relationship between Accountancy,

Book Keeping and Accounting.
[1]
Q.5. What is the other name for Non-Cash Vouchers?
[1]
Q.6. Bank A/c is a Personal/Real A/c.
[1]
Q.7. A Trial balance is prepared on the basis of balances in the ledger.

True/False.
[1]
Q.8. Why is Journal referred to as the Book of Original Entry?
[1]
Q.9. Differentiate between Cash Basis of Accounting and Accrual Basis of
Accounting on the basis of:[2]
(i)
Profit or Loss
(ii)
Suitability
Q.10.State two circumstances when a credit note is issued.
[2]
Q.11.Differentiate between Purchases Book and Purchases Account.
[2]
Q.12.During the financial year 2010-11, Ajay had cash sales of Rs.90,000 and
credit sales of Rs.40,000. His expenses for the year were Rs.80,000 out
of which Rs. 50,000 is still to be paid. Find out Ajays income for 201011 following the Cash Basis of Accounting.
[2]
Q.13.If you are a Senior Accountant of ABC Ltd. What steps would you take
to make your companys financial statements reliable and
understandable?
[3]
Q.14.Give
(i)
(ii)
(iii)
an example for each of the following types of transactions:Decrease in asset, decrease in liability
Increase in asset, increase in owners capital.
Increase in one liability, decrease in another liability
[3]
Q.15.On 31st March,2011, the total assets and external liabilities were
Rs.1,00,000 and Rs.3,000 respectively. During the year, the proprietor
had introduced additional capital of Rs.10,000 and had withdrawn
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Assignment Booklet
Rs.6,000 for personal use. The capital on 1st April, 2010 was Rs.83,000.
Calculate the capital as on 31st March, 2011 and profit or loss incurred
during the year 2010-11.
[3]
Q.16.Explain the attributes of accounting.
[4]
Q.17.Journalise the following transactions:[4]

(i)
Sold goods to Tanmay at a list price of Rs. 2,000. Sales subject to 10%
Trade discount and 5% Cash discount if payment is made immediately.
Tanmay availed the cash discount by paying half the amount.
(ii)
Paid Rs.250 in cash as wages on installation of machine.
Pass an opening entry:
(iii) Cash in hand Rs.200, plant Rs. 5,000, Furniture Rs. 2,500, Salary
outstanding Rs. 300, Goodwill Rs. 2,000, Creditors Rs. 1,300, Debtors Rs.
1,800.
(iv) Gave as charity Cash Rs.150, Machinery Rs,2000, goods Rs.250.
Q.18.Identify the following:
[6]
(i)
Summarised record of transactions relating to a particular head at one place
___________
(ii)
Liabilities payable within a year _____
(iii) An expense that has been paid in advance and the benefit of which will be
available in the following year or years ______
(iv) Evidence of a business transaction _____
(v)
Expenditure that is revenue in nature but is written off to Profit and Loss
Account in more than one accounting period _______
(vi) Difference between Revenue and Expense _______
Q.19.From the following information, prepare an Analytical petty cash book:
[6]
2011
Rs.
Jan 1
Amount received from cashier Rs.750
Jan 2
Paid for printing
92.50
Jan 3
Paid for sundry expenses
46.50
Jan 5
Paid for stationery
42.50
Jan 9
Paid for coolie
25.00
Jan 12
Stamps purchased
45.00
Jan 14
Paid for tonga charges
23.00
Jan 16
Stationery purchased
36.00
Jan 19
Paid for general expenses
52.50
Jan 25
Paid for cartage
37.00
Jan 31
Paid for advertising
57.00
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Assignment Booklet
Q.20.Record the following transactions of M/s Kajal Electronics in the Return

Inwards Book:
[6]
2010
Jan 15 One washing machine sold on credit to M/s Mohan and Co. for Rs.30,000
received back.
Jan 18 Received back Santro car sold for Rs.80,000.
Jan 25 Paid Rs.14,500 to Mahesh for return of one T.V.
Jan 26 Received back one electric toaster sold to Ajay on credit for Rs.10,000.
Q.21.On which side the increase in the following accounts will be recorded?
Also, mention the nature of account. ( Real, Nominal or Personal). [8]
(i)
Shyam (proprietor)
(v)
Rent Outstanding A/c
(ii)
Rent received A/c
(vi) Bank Overdraft A/c
(iii) Ram (Creditor)
(vii) Purchases A/c
(iv) Buildings A/c
(viii) Capital A/c
Q.22.Enter the following transactions in the double column Cash Book of M/S
Gupta & Co General stores:
[8]
2010
March 1
Cash in hand Rs.415 and Cash at Bank Rs. 2530
March 2
Paid wages by cheque Rs.950
March 5
Made cash purchases Rs.150
March 15 Received Rs.530 by cheque from Krishna and allowed him discount
Rs.20
March 16 Paid cheque to Mohan Rs.400 in full settlement of his account Rs.
415
March 18 Cash sales amounted to Rs.150.
March 20 Bought furniture for Rs.300, paid by cheque
March 22 Bank credited the account with Rs.200 for interest.
Q.23.State and Explain the Accounting assumption/principle involved in each
of the following situation:
[24=8]
(i)
(ii)
(iii)
(iv)
The accountants assume that the business will not be liquidated in the near
foreseeable future.
Revenue is generally recorded at the point of sale.
The insignificant items or events, having an insignificant economic effect
need not be disclosed.
Expenses need to be recorded in the period in which the associated
revenues are recognized.
Q.24.Prepare accounting equation from the following and also prepare the
Balance Sheet:
[8+2=10]
(i)
Started business with cash Rs.50,000.
(ii)
Paid salary Rs.5,000.
(iii) Rent outstanding Rs.1,000.
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Assignment Booklet
(iv)
(v)
(vi)
(vii)
Accrued Interest Rs.1,500.

Interest on Capital Rs.2,500.
Bought goods for cash Rs.30,000 and on credit for Rs.50,000.
Goods costing Rs.10,000 sold at a profit of 25%, out of which Rs.7,000
received in cash.
(viii) Purchased a television for personal use Rs.2,500.
Q.25.Journalise the following transactions, post them into ledger and also prepare the
trial balance.
[15]
(i)
Monica started business with Rs.1,00,000 cash, Machinery worth Rs.50,000 and
Building Rs.70,000.
(ii)
Purchased goods worth Rs.20,000 out of which goods worth Rs.12,000 were
purchased on credit from Shyam.
(iii) Sold goods to Ram for Rs.16,000.
(iv) Paid Rs.11,800 to Shyam in full settlement of his account.
(v)
Depreciation provided on the machinery is 10%p.a.
(vi) Ram was declared insolvent and a payment of 60 paise in a rupee received from
his estate.
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Assignment Booklet
HALF YEARLY EXAMINATION 2011-12

Time : 3 hrs
Set B
Max. Marks : 100
=============================================
(i)
(ii)
=========================================================================
Q.1. Define Cost accounting.
[1]
Q.2. What is the need of International Accounting Standards?
[1]
Q.3. State one disadvantage of Accrual Basis of Accounting.
[1]
Q.4. Why is the Government interested in accounting information?
[1]
Q.5. Which are the two types of Cash Vouchers?
[1]
Q.6. Rent receivable A/c is a personal A/c. True/False.
[1]
Q.7. Trial Balance is an Account/Statement.
[1]
Q.8. What is a Compound Journal Entry?
[1]
Q.9. Differentiate between Cash Basis of Accounting and Accrual Basis of

Accounting on the basis of:[2]
(i)
Reliability
(ii)
Legal position
Q.10.State two circumstances when a debit note is issued.
[2]
Q.11.Differentiate between Sales Book and Sales Account.
[2]
Q.12.During the financial year 2010-11, Ajay had cash sales of Rs.90,000 and
credit sales of Rs.40,000. His expenses for the year were Rs.80,000 out
of which Rs. 50,000 is still to be paid. Find out Ajays income for 201011 following the Accrual Basis of Accounting.
[2]
Q.13.If you are a Senior Accountant of ABC Ltd. What steps would you take
to make your companys financial statements relevant and comparable?
[3]
Q.14.Give an example for each of the following types of transactions:[3]
(i)
Increase in one asset, decrease in another asset.
(ii)
Decrease in asset, decrease in owners capital.
(iii) Increase in asset, increase in liability
Q.15.A started a business on 1st April,2010 with a capital of Rs.1,00,000 and
a loan of Rs.25,000 borrowed from wife. During 2010-11, he had
introduced additional capital of Rs.50,000 and had withdrawn Rs.1,000
every month for personal use. On 31st March, 2011 his assets were
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DELHI PUBLIC SCHOOL

Assignment Booklet
Rs.2,00,000. Find out his capital as on 31st March, 2011 and profit or
loss incurred during the year 2010-11.
[3]
Q.16.Explain the limitations of accounting.
[4]

(i)
Pass an opening entry:
Cash Rs. 10,000, Creditors Rs. 15,000, Bank Rs. 20,000, Bank loan Rs.
10,000, Stock Rs. 40,000, Furniture Rs. 20,000.
(ii)
Bought goods from Anand for Rs.40,000 at a trade discount of 20% and
cash discount of 4%. Paid 50% cash immediately.
(iii) Stock in hand at the end of the year Rs.10,000.
(iv) Purchased a machinery for cash Rs.40,000 and paid Rs.4,000 as wages on
its installation. Goods of Rs.3,000 were also used from business on its
installation.
Q.18.Identify the following:[6]
(i)
Liabilities which may or may not arise in future depending on the happening
of an event______
(ii)
Amount invested by the proprietor in the business ____
(iii) Assets which represent loss or expenses yet to be written off _____
(iv) An expense that has not been paid but the benefit thereof has already been
availed _____
(v)
Value which has expired during the accounting period ______
(vi) Reduction in the prices of goods allowed by the business _____
Q.19.From the following information, prepare an Analytical petty cash book:
[6]
2011
Rs.
Jan 1
Amount received from cashier
230.00
Jan 2
Postage paid
16.00
Jan 3
Paid for coolie charges
11.50
Jan 5
Paid for taxi charges
52.00
Jan 7
Paid for telegram
12.50
Jan 9
Paid for envelopes
3.00
Jan 12
Pencils purchased
3.50
Jan 14
Account register purchased
20.00
Jan 15
Paid for printing
10.00
Jan 17
Paid for coolie
38.00
Jan 18
Paid for telegram
15.00
Jan 19
Paid tonga charges
15.00
40
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Assignment Booklet
Q.20.M/s Kapoor and Co. deals in readymade garments, made the following
purchases during the month of December, 2010. Record the
transactions in the Purchases Book of M/s Kapoor and Co.
[6]
Dec 1
Purchased on credit from M/s Fashion point:100 shirts @ Rs.120 per shirt.
50 Jeans @ Rs.300 per jeans.
Dec 15 Purchased for cash from M/s Bihari and co.:25 T-Shirts @ Rs.300 per piece.
Dec 25 Purchased on credit from M/s Rani fashion point:5 typewriters @ Rs.250 each.
Dec 30 Purchased from M/s Sara Desai Fashion corner:100 T-shirts @ Rs.80 per piece
50 shirts @ Rs.60 per shirt
Q.21.On which side the increase in the following accounts will be recorded?
Also, mention the nature of account. ( Real, Nominal or Personal). [8]
(i)
Prepaid salary A/c
(v)
Loan A/c
(ii)
Depreciation A/c
(vi) Bank A/c
(iii) Mohan (Debtor)
(vii) Drawings A/c
(iv) Cash A/c
(viii) Furniture A/c
Q.22.Enter the following transactions in the double column Cash Book of M/s
Mahinder General stores:
[8]
2010
Jan 1
Jan 5
Jan 8
Jan 10
Jan 12
Jan 13
Jan 14
Jan 20
Rs.
Cash in hand
2,000
Cash at Bank
5,000
Deposited into Bank
1,000
Rent paid by cheque
250
Withdrew money from bank for business use
400
Drawings
100
Received a cheque from Pawan and deposited into the bank 700
Pawans cheque returned dishonoured by the Bank
Deposited into bank, balance of cash in excess of
250
Q.23.State and Explain the Accounting assumption/principle involved in each

of the following situation:
[24=8]
(i)
The Cash withdrawn by the owner to meet personal expenses is recorded in
the books of the business as drawings.
(ii)
Inventory is to be recorded at lower of cost or market value.
(iii) During the lifetime of an entity, accountants prepare financial statements at
arbitrary points of time.
(iv) The assets are recorded in books at the cost incurred in acquisition of such
assets.
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Assignment Booklet
Q.24.Show the accounting equation on the basis of the following transactions

and also prepare the balance sheet:
[8+2=10]
(i)
Started business with: cash Rs.80,000, goods Rs.30,000 and furniture
Rs.40,000.
(ii)
Purchased goods on credit from Y for Rs.15,000 and on cash from X for Rs.
10,000.
(iii) Bought refrigerator for personal use Rs.5,000.
(iv) Goods costing Rs.6,000 sold at the loss of 10%, out of which Rs.2,000
received in cash.
(v)
Received cash from debtors Rs.3,200 in full settlement.
(vi) Sold goods for cash Rs.5,000.
(vii) Introduced fresh capital Rs.1,00,000.
(viii) Rent outstanding Rs.5,000.
Q.25.Journalise the following transactions, post them into ledger and also
prepare the trial balance.
[15]
(i)
Manish started business with cash Rs.10,00,000.
(ii)
Purchased goods for cash Rs.20,000.
(iii) Sold goods to Sonal Rs.6,500.
(iv) Received full and final payment of 50 paisa in a rupee from Sonals estate as
she was declared insolvent.
(v)
Provide 5% interest on capital for 3 months.
(vi) Goods given as charity Rs.2,200.
42
DELHI PUBLIC SCHOOL

Time : 3 hrs
Assignment Booklet

Set A
Max. Marks : 100
=============================================
(iii)
(iv) Marks are indicated against the question.
=================================================
Q.1. State any one qualitative characteristic of accounting information.
[1]
Q.2. What is the other name of business entity?
[1]
Q.3. Who issues the Indian Accounting Standards?
[1]
Q.4. Cash Basis of Accounting does not follow the matching principle of
accounting. Explain the statement.
[1]
Q.5. Give an example of a transaction that leads to increase in one liability
and decrease in another liability.
[1]
Q.6. Profit earned by the business means an increase in the proprietors
capital. Why?
[1]
Q.7. What is the use of Ledger Folio (L.F.)?
[1]
Q.8. Why is Journal called the book of original entry?
[1]
Q.9. Define Bank Overdraft.
[1]
Q.10.What is the difference between Journal and Ledger?
[1]
Q.11.State any two advantages of Accrual Basis of Accounting.
[2]
Q.12.Describe the informational needs of External users.
[3]
Q.13.Identify the accounting term.

[3]
(i)
Liabilities which may or may not arise in future depending on the happening
of an event.
(ii)
Expenditure incurred to acquire assets or improve the existing assets.
(iii) Owners Equity or Net worth.
Q.14.Determine whether the given expenditure is Revenue Expenditure or
Capital Expenditure and explain why?
[4]
(i)
Rs. 25,000 paid for the installation of a new machine.
(ii)
Rs. 5,000 spent on repainting the factory.
Q.15.From the following information, calculate profit, closing capital by
accrual system:
[4]
Revenue received during the year Rs. 45,00,000.
Expenses paid during the year Rs.12,00,000.
Capital at the beginning Rs. 24,00,000.
43
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Assignment Booklet
Creditors in the beginning Rs. 18,00,000.

Accrued income Rs. 6,00,000.
Outstanding expense Rs. 12,00,000.
Prepaid expenses Rs. 15,000.
Q.16.On which side the increase in the following accounts will be recorded:
[4]
(i)
Furniture A/c
(v)
Sales A/c
(ii)
Ram (Proprietor)
(vi) Interest Paid A/c
(iii) Salary A/c
(vii) Sohan (Creditor)
(iv) Purchases A/c
(viii) Shyam (Debtor)
Q.17.Classify the following (Real, Nominal and Personal)
[4]
(i)
Stock
(v)
Furniture
(ii)
Bank Loan
(vi) Commission Received
(iii) Capital
(vii) Discount Received
(iv) Prepaid Salary
(viii) Outstanding Rent
Q.18.From the following particulars, prepare a petty cash book for the month
of April, 2010.
[6]
2010
Rs.
April 1 Drew for petty Cash
2,000
April 3 Paid for postage
300
April 5 Paid for Telephone
40
April 8 Paid for Cartage
140
April 9 Paid for postage
200
April 12 Paid for sundries
100
April 27 Paid for Taxi fare
240
April 30 Paid for wages to casual labour
50
Q.19.Explain the process of accounting.
[6]
Q.20.Explain the following:(i)

Revenue Recognition Concept
(ii)
Accounting Period Principle
(iii) Conservatism Principle
(iv) Historical Cost Principle
[8]
Q.21.Journalise the following transactions:

[8]
(i)
Goods sold costing Rs. 6,00,000 to Aman at an invoice price 10% above
cost less 5% Trade Discount.
(ii)
Purchased goods from Ramesh of Rs. 40,000 on 10% Trade Discount and
5% Cash Discount. Half of the amount was paid at the time of purchase.
(iii) Pass an opening entry: Assets: Cash Rs. 50,000; Stock Rs. 30,000; Debtors
Rs. 50,000; Machinery Rs. 60,000. Liabilities : Anil Rs. 40,000.
(iv) Sold goods costing Rs. 18,000 for Rs. 24,000 and charged VAT @ 10%.
Payment was received in cash.
44
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Q.22.Enter the
2011
June 1
June 7
June 10
June 12
June 15
June 20
June 25
June 28
Assignment Booklet
following transactions in a double column cash book.
[8]
Cash in hand Rs.800 and Cash at Bank Rs. 5700

Received a cheque from Ram Rs. 3,250
Deposited the above cheque into Bank
Paid to Sohan by cheque Rs.2,425
Rams cheque returned dishonoured.
Withdrew from bank for office use Rs. 250.
Cheque received from Hari Rs. 1,200
Haris cheque was endorsed in favour of Mukesh.
Q.23.Prepare an accounting equation from the following and also prepare a

Balance Sheet.
[10]
(i)
Mr. A commenced business with cash Rs.15,000, goods Rs. 6000,
machinery Rs. 1,00,000 and furniture Rs. 50,000.
(ii)
1/3rd of the above goods sold at a profit of 10% on cost and half of the
payment is received in cash.
(iii) Depreciation on machinery provided @ 10%.
(iv) Cash withdrawn for personal use Rs. 10,000.
(v)
Interest on drawings charged Rs. 500.
(vi) Wages outstanding Rs. 6,000.
(vii) Received Rs. 700 as interest.
(viii) Bought goods on credit from Ratan Rs. 20,000.
Q.24.Journalise the following transactions and post them in the following
ledgers cash A/c, Discount Received A/c, Plant A/c, Capital A/c,
Interest on Capital A/c.
[20]
(i)
Gaurav commenced business by introducing capital in cash Rs. 2,00,000
and by cheque Rs. 50,000.
(ii)
Purchased goods for Rs. 50,000.
(iii) Purchased plant for Rs. 20,000 from Mohan.
(iv) Rent outstanding Rs. 5,000.
(v)
Provide interest on capital (Rs. 50,000) at 6%p.a. for six months.
(vi) Goods worth Rs. 500 were used by the proprietor for domestic purpose.
(vii) Received a first and final dividend of 60 paise in a rupee from the official
receiver of Rajan, who owed us Rs. 1,000.
(viii) Charge depreciation on plant Rs. 1000.
(ix) Paid to Sita Rs. 965 in full settlement of her dues of Rs. 1,000.
(x)
Paid Rs. 250 in cash as wages on installation of a machine.
45
DELHI PUBLIC SCHOOL

Time : 3 hrs
Assignment Booklet

Set B
Max. Marks : 100
=============================================
(i)
(ii)
=================================================
Q.1. Which qualitative characteristic of accounting information is reflected

when the accounting information is free from errors?
[1]
Q.2. Give an example of an Intangible Asset.
[1]
Q.3. How many Accounting standards have been issued so far?
[1]
Q.4. Name the two basic Accounting Principles on which Accrual Basis of
Accounting is based.
[1]
Q.5. Give an example of a transaction that leads to increase in liabilities and
decrease in owners capital.
[1]
Q.6. What is the object of preparing an Account?
[1]
Q.7. What is the use of Journal Folio (J.F.)?
[1]
Q.8. Why is Ledger called Principal Book of Accounts?
[1]
Q.9. Define Contra Entry.
[1]
Q.10.What is the difference between Trade Discount and Cash Discount? [1]
Q.11.State any two disadvantages of Cash Basis of Accounting.
[2]
Q.12.Describe the informational needs of Internal users.
[3]
Q.13.Identify the accounting term :

[3]
(i)
A financial event that brings about a change in the assets and liabilities of the
business enterprise.
(ii)
Assets which are neither tangible or intangible but represent loss or expenses
yet to be written off.
(iii) Excess of expenses of a period over its related revenues.
Q.14.Determine whether the given expenditure is Revenue Expenditure or
Capital Expenditure and explain why?
[4]
(i)
Custom duty paid on import of a machinery.
(ii)
Rs 10,000 paid for electricity bill.
Q.15.Classify the following (Modern Classification)
[4]
(i)
Stock
(iv) Prepaid Salary
(ii)
Bank Loan
(v)
Furniture
(iii) Capital
(vi) Commission Received
46
DELHI PUBLIC SCHOOL

(vii)
Assignment Booklet
Discount Received
(viii) Outstanding Rent
Q.16.From the following information, calculate profit, closing capital by

accrual system:
[4]
Revenue received during the year Rs. 50,00,000.
Expenses paid during the year Rs.16,00,000.
Capital at the beginning Rs. 26,00,000.
Creditors in the beginning Rs. 20,00,000.
Accrued income Rs. 5,00,000.
Outstanding expense Rs. 6,00,000.
Prepaid expenses Rs. 30,000.
Q.17.On which side the decrease in the following accounts will be recorded.
[4]
(i)
Furniture A/c
(v)
Sales A/c
(ii)
Ram (Proprietor)
(vi) Interest Paid A/c
(iii) Salary A/c
(vii) Sohan (Creditor)
(viii) Shyam (Debtor)
(iv) Purchases A/c
Q.18.Prepare a petty Cash Book.
2002
Jan. 1
Received from Bank as imprest cash balance
Jan. 7
Bought Postage Stamps
Jan. 8
Paid for stationery
Jan. 17
Paid for Cartage
Jan. 20
Paid taxi charges
Jan. 22
Paid wages
Jan. 23
Paid tips to canteen bearer
Jan. 24
Paid for stationery purchased
Jan. 30
Paid for tea, etc. to travel agent.
Q.19.Explain the process of accounting.
[6]
1,000
200
290
40
50
130
50
100
30
[6]
Q.20.Journalise the following transactions :[8]

(i)
Goods sold costing Rs. 8,000 to Amar Nath at an invoice price 5% above
cost less 5% Trade Discount.
(ii)
Sold goods to Rahim for Rs 10,000, allowing him a trade discount of 5%
and a cash discount of 10%. He paid half of the amount in cash at the time
of purchase.
(iii) Pass an opening entry: Assets: Cash Rs. 50,000; Stock Rs. 30,000; Debtors
Rs. 50,000; Machinery Rs. 60,000. Liabilities : Anupam Rs. 50,000.
(iv) Purchased goods from Ramlal for Rs. 80,000 less 15% trade discount plus
10% VAT.
Q.21.Explain the following :
[8]
(i)
Matching Principle
(ii)
Accrual Principle
47
DELHI PUBLIC SCHOOL

(iii)
(iv)
Assignment Booklet
Business Entity Principle

Verifiable objective concept
Q.22.Prepare cash book for the month of December 2011, from the following
information :
[8]
Dec 1.
Cash in hand 5,560, Bank overdraft 6,250
Dec 2
Cheques worth Rs 800 issued to petty cashier
Dec 7
Received cheque worth Rs 1,200 from Pramod against sale of goods.
Dec 11
A cheque which was received from Pramod on 7.12.11, was
endorsed in favour of Morgan together with Rs 2,800 in cash
Dec 15
Received Rs 1,900 from Neelu.
Dec 23
Cheque endorsed in favour of Morgan was returned dishonoured
Dec 26
Bought goods worth Rs 3,400, from Rustom and paid by cheque after
receiving a discount of Rs 340
Dec 30
Interest on overdraft Rs 100, was charged by bank.
Q.23.Show the Accounting Equation on the basis of the following
transactions and also prepare a Balance Sheet :
[10]
(a)
Started business with cash Rs 2,00,000 and stock of goods Rs 50,000
(b)
Bought goods for cash Rs 30,000 and from Hussain Rs 20,000
(c)
Goods costing Rs 24,000 sold at a profit of 25% on cost.
(d)
Purchased furniture for office use Rs 10,000 and household use Rs 5,000
(e)
Received Rs 2,000 for commission.
(f)
Paid to Hussain in full settlement Rs 19,500
(g)
Purchased Machinery Rs 50,000
(h)
Interest on Capital Rs. 3,000.
Q.24.Journalise the following and post them in the following ledgers cash
A/c, Purchases A/c, Depreciation A/c, Sales tax A/c, Discount allowed
A/c.
[20]
(a)
Started business with cash Rs. 1,00,000, plant Rs. 50,000 and Furniture Rs.
20,000.
(b)
Cash purchases Rs 50,000
(c)
Credit Purchases Rs 5,000
(d)
Returns outward Rs 2,000
(e)
Goods sold for cash to a customer for Rs 10,000 and collected sales tax
@7% on it.
(f)
Salaries due to clerk Rs 5,000
(g)
Rent paid to landlord Rs 2,000
(h)
Depreciation on plant Rs 2,000, Furniture Rs 200
(i)
Shyam became insolvent, first and final dividend received 75 paisa in the
rupee. He owed us a debt of Rs 1,000.
(j)
Received Rs. 9,750 from Hari Ram in full settlement of his account for Rs.
10,000
48
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Assignment Booklet
ANNUAL EXAMINATION 2011-12(solved)

TIME : 3hrs
Set A
Max Marks : 90
=============================================
(i)
All the questions are compulsory.
(ii)
Marks are indicated against each question.
=============================================
Q.1. State any one limitation of Accounting.
[1]
Q.2. Define Fictitious Assets.
[1]
Q.3. State the Assumptions in IFRS.
[1]
Q.4. The two columns of the Trial Balance have the same total. Why?
[1]
Q.5. Differentiate between Capital Expenditure and Revenue Expenditure.

[1]
Q.6. Give an example where an item may have been treated wrongly as
Revenue expenditure and charged in the Trading Account when it should
have been treated as Capital Expenditure?
[1]
Q.7. Give any one cause of difference in the Bank Balance shown by the Cash
Book and the Pass Book.
[1]
Q.8. How would you account for salaries due and paid of the last year in the
books of a Not-for-Profit Organisation?
[1]
Q.9. Cash Basis of Accounting is suitable for Not-for-Profit Organisations
and Professionals. Justify.
[2]
Q.10.Differentiate between Provisions and Reserves on the basis of:
(i) Purpose
(ii) Investment
[2]
Q.11.Sohan Ltd. purchased a Machinery for Rs. 1,08,000 on 1st January,

2000. On 1st July, 2002 the machinery became obsolete and was sold
for Rs. 48,600. Calculate the profit or loss on sale of machinery if
depreciation is charged @ 10% p.a. on Written Down Value Method and
the books are closed on 31st December.
[2]
Q.12.Explain the process of Accounting.
[3]
Q.13.Calculate the gross profit on the basis of the following information:[3]

Rs.
Purchases
6,00,000
Return outwards
30,000
Carriage inwards
20,000
Wages
50,000
49
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Assignment Booklet
3/4th of the goods are sold for Rs. 6,00,000.

Q.14.From the following transactions, prepare the account of Shyam (a
Creditor).
[3]
Rs.
1. Purchased goods from Shyam on credit
50,000
2. Paid to Shyam
40,000
3. Goods returned to Shyam
4,000
4. Repurchased goods from shyam on credit 10,000
5. Paid to Shyam in full settlement
15,000
Q.15.From the following information about a Sports Club, calculate the
amount of Sports Fund that will be shown in its Balance Sheet as on
31.3.2010 :
[3]
Amount
Details
(Rs.)
Sports Fund as on 1.4.2009
35,000
Sports Fund Investments
35,000
Interest on Sports Fund Investments due 6,000
Donations for Sports Fund
11,000
Sports Prizes awarded
18,000
Expenses on Sports events
5,000
Q.16.Pass Journal Entries for the following:(i)
(ii)
(iii)
Q.17.
(i)
(ii)
[4]
For transferring Net Profit to Capital Account.

Sold to Hema on credit old furniture for Rs. 1,200.
Krishna, who owed us Rs. 1,000 is declared insolvent and 60 paisa in the
rupee is received as final dividend from his estate.
[2+2=4]
Closing stock is valued at lower of cost or market value. Explain the Principle
involved.
Which Accounting Principle is followed when Trading Account is credited
with total sales i.e. cash sales and credit sales? Also explain the Principle.
Q.18.Following are the balances appearing in the books of Gupta & Co. [4]
Machinery Account as on 1st January, 2001 = Rs. 4,48,000
Provision for depreciation as on 1st January, 2001 = Rs. 1,78,080
On 1st January, 2001 the machinery was sold for Rs. 19,320. The
machinery sold was purchased on 1st January, 1997 for Rs. 67,200.
You are required to prepare Machinery Account and Provision for
Depreciation Account for the year 2001 if the firm charges depreciation
@ 10% p.a. on the Fixed Instalment Method.
50
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Assignment Booklet
Q.19.Prepare Purchase Book and Sales Book from the following particulars
relating to M/s Anuj Stationers:
[5]
2008
Dec. 4
Purchase from M/s Satish Bros. as per Invoice No. 187.
5 Calculators @ Rs. 235 each.
25 Boxes of Pencils @ Rs. 8 per box.
Dec. 7
Sold to Ashok & Co. as per Invoice No. 773.
28 gross Registers @ Rs. 15 per dozen.
Dec. 12 Bought from M/s Vijay Kumar & Sons for cash as per Invoice no.
281.
40 gross Registers @ Rs. 12 per dozen.
Dec. 18 Sold to Subhash & Co. as per Invoice No. 383.
12 dozen Pens @ Rs. 140 per dozen.
3 Calculators @ Rs. 275 each.
Dec. 23 Purchased from M/s Gayatri as per Invoice No. 784.
20 file Covers @ Rs. 12 each.
Dec. 29 Bought from M/s Malik Book Depot as per Invoice No. 879.
15 dozen pens @ Rs. 125 per dozen.
Dec. 31 Sold to M/s Sandeep Book Store for cash as per Invoice No. 787.
25 boxes of Pencils @ Rs. 45 each box.
Q.20.From the following particulars prepare a Bank-Reconciliation Statement
on 31st March, 2008:
[6]
st
(i)
Cash Book of Mittal Bros, showed an overdraft of Rs. 16,100 on 31 March,
2008.
(ii)
A bills receivable for Rs. 1,150, which was discounted earlier, has been
dishonoured, and was not entered in cash book.
(iii) Bank charges amounted to Rs. 345.
(iv) Cheque issued for Rs. 13,800 was not presented for payment till 31st March,
2008.
(v)
Bank has debited Rs. 230 on account of bill collection charges.
(vi) Cheques paid into bank but not credited amounted to Rs. 17,250.
Q.21.Following is the Receipts and Payments Account of Diamond Literary
Club for the year ended on March 31, 2009:
[6]
Receipts
To Cash at Bank
To Subscriptions
To Annual Day Receipts
To Mushaira Receipts
To Dividend Receipts
Rs.
12,500
52,500
26,800
22,000
2,000
Payments
By Salaries
By Printing and Stationery
By Annual Day Expenses
By Sundry Expenses
By Investment in Shares
By Postage and Fax Charges
By Building Maintenance
By Cash at Bank
1,15,800
51
Rs.
2,500
1,250
15,000
2,000
75,000
2,250
6,000
11,800
1,15,800
DELHI PUBLIC SCHOOL

Assignment Booklet
Additional Information Supplied:

(i)
On April 1, 2008 Building stood in the books at Rs. 50,000, Investment in
shares Rs. 5,000 and Capital Fund Rs. 68,750
(ii)
There were 200 members each paying an annual subscription of Rs. 250.
Some members have paid their annual subscription in advance during the
year.
(iii) As on 1st April, 2008 no subscription had been received in advance but
subscripitions were outstanding to the extent of Rs. 1,000 as on March 31,
2008. Subscription accrued as on 31st March, 2009 was Rs. 1,500.
(iv) Postage Stamps worth Rs. 250 were in stock with Secretary as on April 1,
2008 and as on 31st March, 2009, these were valued at Rs. 150.
(v)
Provide depreciation on Building @ 5% p.a.
You are required to prepare the Income and Expenditure Account for the
year ended on March 31, 2009 and the Balance Sheet as at that date.
Q.22.There was an error in the Trial-Balance of Mr. Bansal on 31st March,
2007, and the difference in Books was carried to a Suspense Account.
On going through the Books it was found that:
[5+2=7]
(i)
Rs. 6,302 paid for Repair of Motor Vehicle was debited to Motor Vehicle
account as Rs. 4,002.
(ii)
Rs. 9,200 paid to W, was debited to Ys account.
(iii) Rs. 12,420 received from Mr. Goyal, was posted to the debit of his account.
(iv) Discount amounting to Rs. 4,600 received was posted to the debit of
Discount Account.
(v)
Rs. 2,300 being Purchase-Return was posted to the debit of Purchase
Account.
Pass Rectifying Journal Entries and ascertain the amount which will be transferred
to Suspense Account on 31st March, 2007 by showing the Suspense Account,
assuming that the Suspense Account is balanced after the above corrections.
Q.23.Enter the following transactions in the Double Column Cash Book. [8]
2002
Jan. 1
Jan. 2
Jan 3
Jan 4
Jan 5
Jan 6
Jan 7
Mehta commenced business with cash Rs. 3,000. He pays Rs. 2,750 into bank
account.
He buys goods for cheque Rs. 690.
He pays rent Rs. 150 by cheque.
He settles a debt of Rs. 75 due to Hari by cheque deducting discount at 5%.
He receives a cheque of Rs. 30 less 5% discount from Gopal.
He draws for personal use Rs. 70 from cash box.
He pays Rs. 20 in cash for refreshments.
Q.24.On 1st January, 2007 Pawan sold goods to Qadir for Rs. 20,000 and
drew a bill on Qadir for 5 months. Qadir accepted the bill and returned
it to Pawan. Pawan endorsed the bill immediately to Rehman. Rehman
discounted the bill with bank after two months of receiving the bill @
52
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Assignment Booklet
10% p.a. On the date of maturity, the bill was dishonoured and noting
charges paid amounted to Rs. 150. You are required to pass necessary
Journal Entries in the books of all the parties except Bank.
[8]
Q.25.From the following Trial Balance of Hari Om & Co. for the year ended
March 31,2006, prepare Trading and Profit and Loss Account for the
year ended March 31, 2006 and Balance Sheet as at 31st March, 2006.
[12]
Particulars
Debtors / creditors
Closing Stock
Bills Receivable/ Bills Payable
Sales/Purchases
Returns
Interest on Loan
Discount
Loan @ 12%
Investments @12% p.a.
Land & Buildings
Loan @ 9% p.a.
Furniture& Fittings
Plant & Machinery
Computer & Printers
Accumulated Depreciation on Machinery
Accumulated Depreciation on Computer & Printers
Bad Debts
Reserve for Doubtful Debts
Drawings
Salaries
Wages &salaries
Fuel & Power
Capital
Cash
Bank overdraft
L.F. Debit (Rs.)

40,000
4,220
75,000
6,00,000
30,000
3,000
980
2,00,000
2,00,000
3,50,000
Credit (Rs.)
1,20,000
78,000
10,25,000
10,000
12,500
720
2,00,000
5,000
50,000
91,000
18,000
9,100
2,000
1,270
48,000
1,36,000
1,90,000
400
4,50,000
8,990
1,10,000
20,34,590
20,34,590
Adjustments :
(i)
Interest on Investments has accrued for seven months.
(ii)
Charge depreciation on Plant and Machinery @ 10% p.a. on straight line method
(iii)
(iv)
(v)
(vi)
(vii)
and 25% p.a. on Computer and Printer on the reducing balance method.
Purchases include Rs. 4,000 for the purchase of furniture.
Debtors include a bills receivable dishonoured for Rs. 1,000 out of which 40% is
considered as bad.
Create Reserve for Doubtful Debts @ 5%.

Provide managers commission @ 10% on the Net Profit after charging
commission.
Loan @ 9% p.a. was availed by the firm on 1st December, 2005.
53
DELHI PUBLIC SCHOOL

Assignment Booklet
Annual Examination
Answer Key
Ans.3.The
(i)
(ii)
(iii)
(iv)
assumptions in IFRS are :Accrual Assumption

Going Concern Assumption
Measuring Unit Assumption
Constant Purchasing Power Assumption
Ans.4.The two columns of the Trial Balance have the same total because
every transaction recorded by an enterprise has two aspects, a debit
and a credit of equal amount.
Ans.6.Wages paid on the installation of a machinery debited to wages A/c.
Ans.8.Salaries due and paid of the last year will be deducted from the
amount of salaries on the debit side of Income and Expenditure
Account and shown on the liabilities side of the opening balance
sheet.
Ans.9.PROFESSIONALS Cash Basis of Accounting is suitable because the
transactions are generally in cash.
NOT FOR PROFIT ORGANISATIONS Cash Basis of Accounting is
suitable because the motive is not to earn profit but to serve the
society and also most of the transactions are basically cash
transactions.
Ans.10.
Basis
Purpose
Investment
Ans.11.
Reserve
It is created to strengthen
the financial position and
to
meet
unforeseen
liabilities or losses.
It may be invested
outside the business
Provision
It is made to meet known
liability or contingency if
the amount is not
determined.
It is not invested
Cost of Machinery Purchased

Depreciation for 2000
=
BV on 31st December, 2000 =
=
st
BV on 31 December, 2001 =
=
=
Rs.
Rs.
Rs.
Rs.
Rs.
BV on the date of sale

Loss on sale
Rs. 48,600
=
Rs. 34,506
54
Rs. 1,08,000
10,800
97,200
9,720
87,480
8748 = Rs. 4374
DELHI PUBLIC SCHOOL

Assignment Booklet
Ans.12. Explanation of the Following points:

Identification of financial transactions recording classifying
summarizing analysis and interpretation communication.
Ans.13. Net Purchases
Cost of goods produced
Cost of 3/4th goods sold

Gross Profit
Gross Profit
Ans.14.
=
=
=
=
=
=
Rs. 6,00,000 Rs. 30,000

Rs. 5,70,000
Adjusted Purchases +Direct Expenses
Rs. 5,70,000 + 70,000
Rs. 6,40,000
6,40,000
=
=
=
=
Rs. 4,80,000
Net Sales Cost of Good sold
Rs. 6,00,000 Rs. 4,80,000
Rs. 1,20,000
Shyam
Dr.
Particulars
Cr.
Amount Particulars
(Rs.)
To Cash A/c
40,000 By Purchases A/c
To Purchase Return A/c
4,000
By Purchases A/c
To Cash A/c
15,000
To Discount Received A/c 1,000
60,000
Amount
(Rs.)
50,000
10,000
60,000
Ans.15.
Rs.
SPORTS FUND:
Opening Balance
Add : Accrued interest
Donation
35,000
6,000
11,000
Less : Sports Prizes awarded

18,000
Expenses on Sports events 5,000
17,000
52,000
23,000
29,000
Amount of Sports Fund that will be shown in Balance Sheet as on 31.3.2010
=Rs.29,000
Ans.16.
(i)
Profit & Loss A/c

Dr.
To Capital A/c
(Being net profit transferred to Capital A/c)
55
DELHI PUBLIC SCHOOL

(ii)
Assignment Booklet
Hema
Dr.
1,200
To Furniture A/c
1,200
(Being old furniture sold to Hema on Credit)
(iii)
Cash A/c
Dr.
600
Bad debts A/c
Dr.
400
To Krishna
1,000
(Being final dividend received from Krishnas estate)
Ans.17.
(i)
(ii)
Ans.18.
Dr.
Principle of Conservatism
Accrual Principle/ Revenue Recognition Principle
Machinery A/c
Date Particulars Amt.

Date
2001
2001
Jan 1 To bal b/d 4,48,000 Jan 1
Cr.
Particulars
Amt.
By provision for Depreciation A/c

By Bank A/c
By P&L A/c
Dec 31 By bal c/d
4,48,000
26,880
19,320
21,000
3,80,8000
4,48,000
PROVISION FOR DEPRECIATION ACCOUNT

Dr.
Cr.
Date
Particulars
Amt.
2001
Jan 1
To Machinery A/c 26,800
Dec 31 To bal c/d
1,89,280
2,16,160
Date
Particulars Amt.
2001
Jan 1
By bal b/d 1,78,080
Dec 31 By Dep A/c 38,080
2,16,160
Working Notes :Calculation of Book value of the machinery on the date of sale
Original Cost of Machinery
=
Rs. 67,200
Accumulated Depreciation
=
Rs. 6,720 4 = Rs. 26,880
Book Value on the date of sale =
Rs. 67,200 Rs. 26,880 = Rs. 40,320
Sale Price =
Rs. 19,320
Loss on sale =
Rs. 40,320 Rs. 19,320 =
Rs. 21,000
Ans.19.
Date
2008
Dec 4
Dec 23
In the books of M/s Ajay Stationers

PURCHASES BOOK
Particulars
Invoice
No.
M/s Satish Bros.

5 Calculator@ Rs. 235 each
25 Boxes of Pencils@Rs. 8 per box
M/s Gayatri
20 file covers @ Rs. 12 each
187
L.F. Details Amount

(Rs.)
(Rs.)
1,175
200
1375
784
240
56
DELHI PUBLIC SCHOOL

Dec 29
Assignment Booklet
M/s Malik Book Depot

15 dozen pens @ Rs. 125 per dozen
Purchases A/c
Dr.
Dec 31
879
1,875
3,490
Note: Purchase of Dec 12 will not be recorded in Purchases Book as it is a Cash

Purchase.
SALES BOOK
Date
Invoice
No.
Particulars
2008
Dec 7
Dec 18
Dec 31
Ashok & Co.

28 gross Registers @ Rs. 15 per dozen
Subhash & Co.
12 dozen pens @ Rs. 140 per dozen
3 Calculators @ Rs. 275 each
Sales A/c
Cr.
L.F.
Details Amount
(Rs.)
(Rs.)
773
5,040
383
1,680
825
2,505
7,545
Note: Sales of Dec 31 will not be recorded in Sales Book as it is a Cash sale.
Ans.20.
Particulars

as on 31st March, 2008
Plus
Items
(Rs.)
Overdraft as per Cash Book

Discounted bill dishonoured, not entered in the Cash Book
Bank Charges not recorded in the Cash book
Cheque issued but not presented for payment
Bill collection charges debited by the bank
Cheques paid into bank but not credited
Overdraft as per pass book
Ans.21.
Minus
Items
(Rs.)
16,100
1,150
345
13,800
230
17,250
21,275
35,075
35.075
INCOME AND EXPENDITURE ACCOUNT

for the year ended 31st March, 2009
Dr.
Expenditure
To Salaries
To Printing and Stationery
To Sundry Expenses
To Postage and Fax Charges
To Building Maintenance
To Annual Day Expenses
To Depreciation on Building
To Surplus
Cr.
Rs.
2,500
1,250
2,000
2,350
6,000
15,000
2,500
69,200
1,00,800
57
Income
By Subscriptions
By Mushaira Receikpts
By Dividend Receipts
By Annual Day Receipts
Rs.
50,000
22,000
2,000
26,8000
1,00,800
DELHI PUBLIC SCHOOL

Assignment Booklet
BALANCE SHEET
as at 31st March, 2009
LIABILITIES
Rs.
Subscription received in 3,000
advance
Capital Fund
68,750
Add : Surplus
69,200
1,37,900
ASSETS
Cash at Bank
Accrued Subscription
Building
50,000
Less: Depreciation 2,500
Investment
Stock of Postage stamps
1,40,950
Rs.
11,800
1,500
47,500
80,000
150
1,40,950
WORKING NOTES:
(i)
Calculation of Subscription received in advance:
(ii)
Amount received on account of subscriptions

Less : Subscriptions received for last year 1,000
Less : Subscriptions received for the year 48,500
(Rs. 50,000 Rs. 1,500)
Subscription received in advance
Calculation of Postage Stamps Consumed:
49,500
3,000
Rs.
250
2,250
2,500
150
2,350
Opening Stock
Add: Purchases
Less: Closing Stock
Postage consumed
Ans.22.
Date
(i)
(ii)
(iii)
Rs.
52,500
RECTIFYING JOURNAL ENTRIES

Particulars
L.F.
Repairs A/c
Dr.
To Motor Vehicle A/c
To Suspense A/c
(Being repairs wrongly debited to Motor Vehicle A/c;
now rectified)
W
Dr.
To Y
(Being amount wrongly debited to Ys A/c; now
rectified)
Suspense A/c
Dr.
To Goyal
(Being amount wrongly posted; now rectified)
Debit
(Rs.)
6,302
4,002
2,300
9,200
9,200
24,840
24,840
9,200
58
Credit
(Rs.)
DELHI PUBLIC SCHOOL

(iv)
Assignment Booklet
Suspense A/c
Dr.
To Discount A/c
To Discount Received A/c
(Being discount received debited to discount A/c; now
rectified)
Suspense A/c
Dr.
To Purchase A/c
To Purchase Return a/c
(Being purchase return wrongly debited to purchase
A/c; now rectified)
(v)
Dr.
4,600
4,600
4,600
2,300
2,300
Suspense Account
Particulars
To Goyal
To Discount A/c
To Discount received A/c
To Purchase A/c
Ans.23.
Cr.
Rs.
Particulars
24,840 By Difference in trial Balance
4,600 By Repairs A/c
4,600
2,300
2,300
38,640
Rs.
36,340
2,300
38,640
In the books of .
CASH BOOK
Dr.
Date
Cr.
Particulars
2002
Jan 1 To Capital A/c
Jan 5 To Gopal
Jan 8
To bal b/d
Ans.24.
Date
Particulars
2007
Jan 1
L.F.
Cash
(Rs.)
Bank
(Rs.)
250
2,750
28.50
250
160
Date
2002
Jan 2
Jan 3
Jan 4
Jan 6
Jan 7
Jan7
Particulars
L.F.
By Purchases A/c
By Rent A/c
By Hari
By Drawing A/c
By Petty Expenses A/c
By bal c/d
Cash
(Rs.)
Bank
(Rs.)
690
150
71.25
70
20
160
2778.50
1867.25
250
2778.25
In the books of Pawan

L.F. Debit
(Rs.)
Qadir
Dr.
Credit
(Rs.)
20,000
To Sales A/c
(Being credit sales made)
20,000
20,000
59
DELHI PUBLIC SCHOOL

Jan 1
Jan 1
June 4
Assignment Booklet
Bills Receivable A/c

To Qadir
(Being bill received from Qadir)
Rehman
To Bills Receivable A/c
(Being bill endorsed in favour of Rehman)
Qadir
To Rehman
(Being bill dishonoured on maturity and
charges paid by Rehman)
Dr.
Dr.
20,000
20,000
20,000
Dr.
20,150
20,150
noting
In the Books of Qadir

Date
2007
Jan 1
Jan 1
June 4
Particulars
L.F. Debit
(Rs.)
Purchases A/c
To Pawan
(Being credit purchases made)
Pawan
To Bills Payable A/c
(Being bill of exchange given to Qadir)
Bills Payable A/c
Noting Charges A/c
To Pawan
(Being bill dishonoured on maturity)
Dr.
Credit
(Rs.)
20,000
20,000
Dr.
20,000
20,000
Dr.
Dr.
20,000
150
20,150
In the Books of Rehman

Date
2007
Jan 1
Mar 1
June 4
Particulars
L.F. Debit
(Rs.)
Bills Receivable A/c

To Pawan
(Being bill received from pawan)
Bank A/c
Discounting Charges A/c
To Bills Receivable A/c
(Being bill discounted with the bank)
Pawan
To Bank A/c
(Being discounted bill dishonoured and noting
paid by bank)
WORKING NOTE :Discounting Charges =
20,000
= Rs.500
60
Dr.
Credit
(Rs.)
20,000
20,000
Dr.
Dr.
19,500
500
20,000
Dr.
charges
20,000
150
20,150
DELHI PUBLIC SCHOOL

Ans.25.
Assignment Booklet
TRADING AND PROFIT & LOSS ACCOUNT

for the year ended March 31, 2006
Dr.
Particulars
To Purchases
6,00,000
Less:
Purchase
of
4,000
Less: Return
To wages & Salaries
To Fuel & Power
To Gross Profit c/d
Cr.
Rs.
Particulars
Rs.
By Sales
10,25,000
Less: Returns 30,000 9,95,000
furniture 5,86,000
1,90,000
10,000
400
2,18,600
9,95,000
9,95,000
To Discount
980 By Gross Profit b/d
2,18,600
To Bad Debts
2,000
By Reserve for D/Debts
1,270
Add: Further Bad Debts
400
By
Discount
720
Add: Prov. for D/Debts 1,980
4,380 Received(old)
14,000
To Salaries
1,36,000 By
Interest
on
To interest on Loan
3,000
Investments
24,000
Add: Outstanding Interest 3,000
6,000 By Int. on Loan
To Depreciation on:
12,500
Plant & Machinery
5,000
Add:
Accrued
Int.
Computer & Printers
20,475
25,475
11,500
To Managers Commission
7,796
To Net Profit transferred to Capital
77,959
A/c
2,58,590
2,58,590
Balance Sheet
as at March 31, 2006
LIABILITIES
Rs.
ASSETS
Rs.
Bank Overdraft
1,10,000 Cash
8,990
Creditors
1,20,000 Debtors
Bills Payable
78,000 40,000
Outstanding Interest on Loan
3,000 Less: Further Bad Debts
Outstanding
Managers
7,796 400
37,620
Commission
2,00,000
75,000
Loan @ 9%
39,600
4,220
Capital
4,50,000
Less: Prov. for D/Detbts
14,000
Less: Drawings
48,000
1,980
11,500
4,02,000
4,79,959 Bills Receivable
2,00,000
Add: Net Profit
77,959
Closing Stock
2,00,000
Accrued
Interest
on
61
DELHI PUBLIC SCHOOL

Assignment Booklet
investment
9,000
Accrued Interest on Loan
Loan @ 12%
27,000
Investments @ 12% p.a.
Furniture & Fittings
5,000
61,425
Add: Purchases
4,000
3,50,000
Plant & Machinery
50,000
Add: Purchases
23,000
(18,000+5,000)
Computer
&
Printers
91,000
Less: Acc. Dep.
29,575
(9,100+20,475)
Land & Building
9,98,755
9,98,755
Working Notes:Depreciation on Plant & Machinery
50,000 = Rs. 5,000
Depreciation on Computer & Printer
(91,000 9,100)
=
81,900
=
Rs. 20,475
Profit before charging Managers Commission=
Rs. 85,755
Managers Commission
85,755
62
Rs. 7,796
DELHI PUBLIC SCHOOL

Assignment Booklet
ANNUAL EXAMINATION2011-12 (Unsolved)

TIME : 3hrs
Set B
Max Marks : 90
=============================================
(i)
(ii)
=================================================
Q.1. What is the basic objective of Accounting?
[1]
Q.2. What is the difference between Debtors and Bills Receivable?
[1]
Q.3. What are the Fundamental Accounting Assumptions?
[1]
Q.4. Explain why the Pass Book shows a credit balance when the Cash Book
shows a debit balance?
[1]
Q.5. Sales during the year is Rs. 2,00,000. Gross Profit is 25% on cost. Find
out gross profit.
[1]
Q.6. Define Indirect expenses.
[1]
Q.7. Give an example of an error that does not affect the Trial Balance.
[1]
Q.8. In case of Not-for-Profit Organisation if after the adjustment of incomes

and expenses related to specific fund, the fund balance is negative, how
would it be shown in financial statements.
[1]
Q.9. Accrual Basis of Accounting is better than Cash Basis of Accounting.
Justify.
[2]
Q.10.Differentiate between Provisions and Reserves on the basis of:
[2]
(i) Nature
(ii) Presentation
Q.11. ABC Company purchased a machinery on 1st May, 2001 for Rs. 1,53,000. On
31st March, 2003 it sold the Machinery for Rs. 98,600. Calculate the profit or
loss on sale of machinery if depreciation is charged at 10% p.a. on the
Written Down Value Method and the books are closed on 31st December. [2]
Q.12. Explain the branches of Accounting.
[3]
Q.13. State with reasons whether the following are Capital or Revenue
Expenditure:[3]
(i)
Registration fee paid at the time of purchase of a building.
(ii)
Custom duty paid on import of a machinery.
(iii) Expenditure incurred on repairs and white washing at the time of purchase of an
old building in order to make it usable.
63
DELHI PUBLIC SCHOOL

Assignment Booklet
Q.14. From the following particulars, prepare the account of Mr. Gupta, the
proprietor of the business.
[3]
Rs.
Capital introduced
90,000
1.
Drawings
6,500
2.
Further Capital introduced
20,000
3.
Profit for the period
30,000
4.
Q.15. From the following information calculate the amount of Match Fund that will
be shown in the Balance Sheet of a Club as on 31-3-2010:
[3]
Amount
Details
(Rs.)
Match Fund as on 1-4-2009
75,000
Investment of Match Fund
99,000
Distribution of the Prizes to winners of the Match
3,000
Expenses relating to Match
10,500
Donations received for Match fund
30,000
Interest on the Investment of Match Fund
7,500
Q.16. Pass
(i)
(ii)
(iii)
Q.17.
(i)
(ii)
Journal Entries for the following:[4]

For closing Purchases Account.
Received cash for a bad debt written off last year Rs. 250.
Bought goods from Sanjeev for Rs. 50,000 at a trade discount of 20% and cash
discount of 5%. Paid 60% cash immediately.
[2+2=4]
Which Accounting Principle is contradicted when different Accounting Methods
are followed in different years? Also explain the Principle.
Which Accounting Principle is followed when Trading Account is credited with the
value of closing stock? Also explain the Principle.
Q.18. Following are the balances appearing in the books of Rajat Ltd.
[4]
st
Machinery Account as on 1 January, 2000
= Rs. 3,20,000
Provision for depreciation as on 1st January, 2000 = Rs. 1,27,200
On 1st January, 2000 the machinery was sold for Rs. 13,800. The machinery
sold was purchased on 1st January, 1996 for Rs. 48,000.
You are required to prepare Machinery Account and Provision for
Depreciation Account for the year 2000, if the firm charges depreciation @
10% p.a. on the Fixed Instalment Method.
Q.19. Prepare Purchases and Sales Book of Hindustan General Merchants from the
following transactions:
[5]
2005
Sept. 1
Purchased from Anurag Co., Agra:

20 tins Ghee @ Rs. 200 per tin
5 bags Sugar @ Rs. 200 per bag
64
DELHI PUBLIC SCHOOL

Sept. 5
Sept. 10
Assignment Booklet
Sold to gupta Stores, Kanpur:

20 bags Gram @ Rs. 30 per bag
15 bags Barley @ Rs. 15 per bag
Purchased from Rastogi Bros., Meerut:
30 tins Ghee @ Rs. 30 per tin.

Sept. 20
Sept. 25
Sept. 26
Sept. 28
Sept. 30
Less : 10% Trade Discount.

Sold to Anil Gupta & Co., Agra:
Bought from Sunil Bros., Aligarh:
5 bags sugar @ Rs. 200 per bag
Sold to Om Prakash & Co., New Delhi:
10 tins Ghee @ Rs. 1,700 per tin
Bought from Santosh Bros., Moradabad:
Less : 10% Trade Discount
Sold to Ahuja Stores, Gandhi Nagar, Delhi:
Less : 10% Trade Discount
Q.20. On 31st March, 2007, Pass Book of Mr. Sushil showed a balance of Rs.
6,820. You are required to prepare Bank-Reconciliation statement after
considering the following differences between Cash Book and Pass Book:
[6]
(i)
Cheques of Rs. 18,600 were sent to bank for collection. Out of which cheques of
Rs. 7,750 were collected in the month of March. Cheques of Rs. 4,960 were
collected in the month of May and rest of the cheques were not collected at all.
(ii)
Cheque for Rs. 3,410 recorded twice in the Cash Book in March, 2007, but was
sent to bank in April, 2007.
(iii) Interest allowed by bank on deposits amounted to Rs. 6,820.
(iv) Amount wrongly debited by bank Rs. 24,800.
(v)
Receipt side of Cash book has been overcast by Rs. 620.
Q.21. The following is the account of cash transactions of Manav Kalyan Samitee,
Bilochpur (Rohtak) for the year ended December 31,2006:
[6]
Receipts
Balance from Last Year
Subscription
Life Membership Fee
Donation
Profit from Entertainment
Sale of Old Books
(Book value Rs. 1,000)
Rs.
2,270
32,500
3,250
2,500
7,600
750
Payments
Lecturers Fee
Office Expenses
Books
Furniture Purchased
Expenses on Nukar Drama
Cash at Bank
48,870
Rs.
730
14,200
6,500
8,600
1,300
17,540
48,870
65
DELHI PUBLIC SCHOOL

Assignment Booklet
You are required to prepare an Income and Expenditure Account and

Balance Sheet after the following adjustments:
(i)
Subscription still to be received is Rs. 750 but subscription includes Rs. 500 for
the year 2007.
(ii)
In the beginning of the year, Sangh owned Building Rs. 20,000, Furniture Rs
3,000 and Books Rs. 2,000.
(iii) Provide depreciation on Furniture @ 5% p.a.(including purchases), Books @
10% p.a. and Building @ 5% p.a.
Q.22. Trial Balance of Gunjan did not agree. The difference was put to Suspense
Account. Later on following errors were detected. You are required to pass
the Rectifying Journal Entries and prepare a Suspense Account:
[5+2=7]
(i)
An office computer purchased for Rs. 27,000 was entered through Purchase
Book.
(ii)
Sales Return Book was undercast by Rs. 6,400.
(iii) A furniture purchased for Rs. 19,440 was entered in furniture account as Rs.
1,944.
(iv) Sales Book was overcast by Rs. 20,000.
(v)
A Bill for Rs. 8,500 drawn by Gunjan was omitted to be entered in Bills
Receivable Book.
Q.23. Prepare a Double Column Cash Book from the following transactions:
[8]
2003
Rs.
March 1 Cash in hand Rs. 5,000, Bank overdraft 1,000
March 2 General Expenses paid
500
March 3 Deposited into Bank
2,000
March 7 Purchased goods from Hari on credit
4,000
March 8 Drew from Bank for personal use
100
March 10 Paid to Hari in full settlement
3,500
March 15 Recovered from Ravi, who owes Rs. 5,000, Rs. 2,000
Q.24. On 1st January, 2008 B accepted a bill drawn by A on him for three months
for Rs. 12,000 on account of payment of a debt. On the due date bill was
dishonoured and noting charges of Rs. 120 were paid. On 5th April, 2008, B
requested A to draw a new bill for the amount due. A agrees to draw a new
bill for one month. It was also agreed that interest @ 15% p.a. will be
charged in cash by A for the extended period of the bill. It was agreed by B
and interest was paid in cash. The new bill was duly met on maturity. You
are required to pass necessary Journal Entries in the books of A and B. [8]
Q.25. Following are balances from the Trial Balance of Amitabh Traders on 31 st
March, 2006.
[12]
Particulars
Stock on commencement
Purchases
Sales
Rs.
2,810
77,100
1,87,400
66
Particulars
Rs.
Interest on Securities
3,200
Land and Building
5,00,000
Securities
3,00,000
DELHI PUBLIC SCHOOL

Wages
Carriage Inward
Freight on Purchases
Salaries
Insurance Charges
Duty on Import of Goods
Repairs to Machinery
Withdrawals (for personal use)
Customers A/c
Postage
Trade Expenses
Assignment Booklet
63,000
450
350
4,000
1,400
2,100
700
2,800
7,900
250
500
Cash in hand
12,800
Bank Overdraft
1,70,000
Discount Allowed
750
Discount Received
210
Bills Payable
2,000
Loan (Cr.)
5,500
Bills Receivable
3,500
Capital Account
6,73,800
Suppliers A/c
20,000
Xs Loan A/c (Cr.)
9,300
Plant and Machinery
91,000
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2006
and Balance Sheet as at that date after taking into account the following
adjustments:
(i)
Closing Stock was valued at Rs. 9,500.
(ii)
Depreciation to be provided on Land and Buildings @ 5% p.a. and on Plant &
Machinery @ 10% p.a.
(iii) Write off Rs. 1,000 as Bad debts.
(iv) Insurance was prepaid Rs. 350.
(v)
Create provision for doubtful debts @ 5% on debtors.
(vi) Wages include Rs. 2,400 for installation of a new Machinery.
(vii) Plant & Machinery includes a Machinery costing Rs. 48,000 which was purchased
on 1st January, 2006.
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Assignment Booklet
Annual Examination 2012-13 (Unsolved)

Set A
(i)
(ii)
=================================================
Q.1. Define Assets.
[1]
Q.2. The total of debit balances in a Trial Balance is equal to the total of credit
balances. Why?
[1]
Q.3. Under which Accounting Concept is Provision for doubtful debts made? [1]
Q.4. Why is outstanding expense debited to Profit and Loss A/c?
[1]
Q.5. State any one objective of preparing a Bank Reconciliation Statement.
[1]
Q.6. An accountant is charging excessive depreciation every year. Which value is

he violating?
[1]
Q.7. Explain the types of Accounting Information.
[3]
Q.8. Prepare Amits account on the basis of the following transactions:(i)

Sold goods to Amit for Rs. 50,000.
(ii)
Sold goods to Amit for Rs. 20,000.
(iii) Received Rs. 30,000 from Amit.
(iv) Goods returned by Amit worth Rs. 5,000.
(v)
Amount received in full settlement and discount allowed Rs. 1,000.
[3]
Q.9. Differentiate between Reserve and Provision on the basis of:(i)

Nature
(ii)
Purpose
(iii)
Q.10. Calculate Closing Stock from the following details:
[3]
Presentation
[3]
Opening Stock Rs. 20,000; Cash sales Rs. 60,000; Credit sales Rs.
50,000; Purchases Rs. 1,00,000. Rate of Gross Profit on Cost is 33%.
Q.11. The following balances existed on 1st April 2011:[1.5+1.5=3]
Capital Account
Rs. 1,00,000
Bank Loan
Rs. 50,000
Creditors
Rs. 10,000
During2011-12, the proprietor introduced additional capital of Rs. 40,000
and withdrew Rs. 15,000 for personal use. Bank Loan of Rs. 5,000 was
repaid and Rs. 6,000 was paid to creditors. Find out capital on 31 st March,
2012 and profit made or loss incurred during the year if the value of total
assets on 31st March, 2012 is Rs. 2,00,000.
Q.12. During the financial year 2011-12, Ajay had cash sales of Rs. 4,00,000 and
credit sales of Rs. 1,50,000. The expenses paid during the year were
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Assignment Booklet
Rs. 70,000 and expenses outstanding are Rs. 1,00,000. Find out Ajays
income for 2011-12 following:[1.5+1.5=3]
(ii)
Accrual Basis of Accounting
(i)
Cash Basis of Accounting
Q.13.
[3+1=4]
(i)
(ii)
Give two examples each to explain the following:(a)

Matching Principle
(b)
Revenue Recognition Principle
The accountant of the business strictly follows the accounting principles. Which
value according to you is being observed by him?
Q.14. The following balances appear in the books of Gupta Ltd.

[4]
Machinery A/c as on 1-4-2011 = Rs. 8,00,000
Provision for Depreciation as on 1-4-2011 = Rs. 3,10,000
On 1-7-2011 a machinery which was purchased on 1-4-2008 for Rs.
1,20,000 was sold for Rs. 50,000 and on the same date another machinery
was purchased for Rs. 32,000. The firm charges depreciation @ 15% p.a. on
original cost method and closes its books on 31st March every year. Prepare
the Machinery A/c and Provision for Depreciation A/c for the year 2011-12.
Show your workings clearly.
Q.15.
(i)
(ii)
[2+2=4]
Mention any four causes of difference in the Bank Balance shown by the Cash
Book and the Pass Book.
Define the following:(a)
Promissory Note
(b)
Noting Charges
Q.16.A company whose accounting year is Calendar year purchased on 1 st

April, 1998 machinery costing Rs. 30,000. It purchased further
machinery on 1st Oct, 1998 costing Rs. 20,000 and on 1st July 1999
costing Rs. 10,000. On 1st January 2000, one-third of the machinery
installed on 1st April 1998 became obsolete and was sold for Rs. 3,000.
Show machinery account as it would appear in the books of the
company if machinery was depreciated by diminishing balance method
@ 10% p.a.
[6]
(i)
Income Tax paid Rs. 12,000.
(ii)
Received cash for a bad debt written off last year Rs. 500.
(iii) Expenses outstanding Rs. 1000.
(iv) Purchased goods of Rs. 40,000 from Ram on 10% trade discount and 5%
cash discount. Half of the amount was paid at the time of purchase.
(v)
Bricks, cement etc for Rs. 1,00,000 and timber for Rs. 50,000 purchased
and used for the construction of building. Payment was made by cheque.
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Assignment Booklet
Q.18.Prepare a Double Column Cash Book from the following information:[6]

2012
Rs.
Jan 1 Cash in Hand
6,000
Bank Overdraft
2,000
Jan 2 Sold goods by cheque and deposited in bank on the same day
8,000
Jan 3 Settled a debt of Rs. 1,200 by cheque receiving a discount of Rs. 100
Jan 4 Deposited Rs. 1,500 in bank.
Jan 6 Bank Charges
25
Jan 8 Discounted a 3 months maturity bill receivable for Rs. 1,000 at 6%
discount.
Q.19.From the following information, prepare a Bank Reconciliation
Statement as on 31st Dec 2012, showing balance as per Cash Book. [8]
(i)
Debit balance shown by the Pass Book Rs. 17,800.
(ii)
Cheques of Rs. 21,600 were issued in the last week of December but a
cheque of
Rs. 4,200 was debited in the first week of Jan, 2013.
(iii) Cheques of Rs. 10,750 were deposited in bank in the last week of
December. Out of them a cheque of Rs. 5,000 was credited on 30th
December, 2012 and the rest were credited in the first week of Jan, 2013.
(iv) Insurance premium paid by the bank Rs. 1,400.
(v)
Bank charges Rs. 200.
(vi) Amount Rs. 500 recorded twice on the debit side of Cash Book.
(vii) A discounted bill of exchange dishonoured Rs. 2,000.
(viii) Overcasting of Receipt side of Cash Book by Rs. 600.
Q.20.Record the following transactions of Bajaj Light House in (i) Purchase
Book (ii) Sales Book (iii) Purchase Return Book, and (iv) Sales Return
Book.
[8]
2001
Nov 2
Sold to Ravi Electric:
20 heaters @ Rs. 120 each
50 tubelights @ Rs. 60 each
Nov 8
Purchased from Royal Trader:
25 ceiling fans @ Rs. 600 each
20 table fans @ Rs. 800 each
Nov 12
Sold to Five Stars Lighting House:
72 dozen bulbs @ Rs. 100 per dozen
Nov 15
Purchased from Singh and Co. one almirah for Rs. 6,000
Nov 20
Purchased from Better dealer:
5 water heaters @ Rs. 360 each
Nov 23
Returned by New light house
5 tubelights sold on Nov. 2
Nov 24
Sold goods to Ram Lal and Co. for cash Rs. 10,000.
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Nov 29
Assignment Booklet
Returned to Better dealer 1 water heater purchased on

Nov 20
Q.21.Rohan sold goods worth Rs. 12,000 to Mohan, taking a bill at 3 months,
dated 1st July, 2011. On 4th August, 2011. Rohan discounted the bill at
5% p.a. with his bankers. At maturity the bill was returned by the
bankers dishonoured. Noting Charges of Rs. 50 were paid by the bank.
Mohan paid Rs. 3,000 and gave Rohan another bill at 3 months for the
balance at 6% p.a. interest but before maturity he became insolvent and
ultimately paid his creditors 75 paise in the rupee. Give Journal entries
to record these transactions in the books of Rohan and Mohan.
[8]
Q.22.
[10+2=12]
(i)
From the following balances taken from the Trial Balance of M/s Baba and
Company, prepare:
(a)
Trading and Profit and Loss A/c for the year ending 31st March, 2006.
(b)
Balance Sheet as at 31st March, 2006.
Particulars
Rs.
Particulars
Rs.
Opening Stock
8,100 Freehold Land
9,70,000
Purchases
7,12,000 Capital
2,33,800
Sales
12,12,150 Freight Inward
1,200
Productive Expenses
82,400 Freight outward
2,200
Interest on Loan
33,750 Value Added Tax Collected
40,000
Returns Inward
6,600 Interest on Bank Deposit
2,400
Returns Outward
3,200 Loan
9,00,000
Loose Tools
8,400 Sundry Debtors
30,000
Goodwill
7,000 Sundry Creditors
12,100
Commission (Cr.)
2,000 Bad Debts
1,900
Salaries
11,600 Law Charges
800
Investments
2,00,000 Rent
18,000
Cash in hand
1,700 Motor Car
3,10,000
The following further information was obtained:
(a)
The value of closing stock was Rs. 24,400.
(b)
60% of the rent was paid in respect of factory.
(c)
Sundry Debtors included a sum of Rs. 4,000 in respect of one debtor
who has become insolvent and 75 paise in a rupee was realizable
from him.
(d)
Interest on loan @ 8% p.a. is unpaid for 4 months.
(e)
Depreciation to be charged on Motor car @ 10% p.a.
(f)
Salaries outstanding Rs. 2,200.
Mention any two values which an accountant must consider while presenting
financial statements.
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Assignment Booklet
Annual Examination 2012-13 (Solved)

Set B
(i)
(ii)
=================================================
Q.1. Define Liabilities.
[1]
Q.2. State any one objective of preparing a Trial Balance.
[1]
Q.3. The account of the owner is credited when capital is introduced in the
business and debited when the drawings are made. State the Accounting
Principle involved.
[1]
Q.4. Why is Accrued Income credited to Profit and Loss A/c?
[1]
Q.5. The Bank Balance shown by the Cash Book is normally different from
the Bank Balance shown by the Pass Book. Why?
[1]
Q.6. An accountant is charging excessive depreciation every year. Which

value is he violating?
[1]
Q.7. Explain any three qualitative characteristics of Accounting Information.
[3]
Q.8. Differentiate between Reserve and Provision on the basis of:[3]
(i)
Nature
(ii)
Purpose
(iii) Presentation
Q.9. Prepare Gauravs account on the basis of the following transactions:[3]
(i)
Purchased goods from Gaurav for Rs. 50,000.
(ii)
Purchased goods from Gaurav for Rs. 20,000.
(iii) Paid Rs. 30,000 to Gaurav.
(iv) Returned goods to Gaurav worth Rs. 5,000.
(v)
Amount paid in full settlement and discount received Rs. 1,000.
Q.10.The following balances existed on 1st April 2011:[1.5+1.5=3]
Capital Account
Rs. 1,00,000
Bank Loan
Rs. 50,000
Creditors
Rs. 10,000
During2011-12, the proprietor introduced additional capital of Rs.
40,000 and withdrew Rs. 15,000 for personal use. Bank Loan of Rs.
5,000 was repaid and Rs. 6,000 was paid to creditors. Find out capital
on 31st March, 2012 and profit made or loss incurred during the year if
the value of total assets on 31st March, 2012 is Rs. 2,00,000.
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Assignment Booklet
Q.11.During the financial year 2011-12, Ajay had cash sales of Rs. 4,00,000
and credit sales of Rs. 1,50,000. The expenses paid during the year were
Rs. 70,000 and expenses outstanding are Rs. 1,00,000. Find out Ajays
income for 2011-12 following:[1.5+1.5=3]
(i)
Cash Basis of Accounting
(ii)
Accrual Basis of Accounting
Q.12.Calculate Closing Stock from the following details:
[3]
Opening Stock Rs. 20,000; Cash sales Rs. 60,000; Credit sales Rs.
50,000; Purchases Rs. 1,00,000. Rate of Gross Profit on Cost is
33%.
Q.13.
[3+1=4]
(i)
Give two examples each to explain the following:(a)
Accrual Principle
(b)
Revenue Recognition Principle
(ii)
The accountant of the business strictly follows the accounting principles.
Which value according to you is being observed by him?
Q.14.The following balances appear in the books of X Ltd. as on 1st April
2011.
[4]
Machinery A/c as on 1-4-2011 = Rs. 5,00,000
Provision for Depreciation as on 1-4-2011 = Rs. 2,25,000
The machinery is depreciated at 10% p.a. on the fixed installment
method. The accounting year being April-March. On 1st October 2011, a
machinery which was purchased on 1st April, 2008 for Rs. 1,00,000 was
sold for Rs. 42,000 and on the same date a fresh machine was
purchased for Rs. 2,00,000. Prepare machinery and Provision for
Depreciation A/c for the year 2011-12. Show your workings clearly.
Q.15.
[2+2=4]
(i)
Mention any four causes of difference in the Bank Balance shown by the
Cash Book and the Pass Book.
(ii)
Define the following:(a)
Endorsement of Bill
(b)
Retirement of Bill
(i)
Life insurance premium of the owner Rs. 1500 paid.
(ii)
Rent received in advance Rs. 2,000.
(iii) Withdrawn goods for personal use (Cost Rs. 500, Sales Price Rs. 700)
(iv) A cheque amounted to Rs. 4,000 received from A and not deposited in the
bank on the same day.
(v)
Sold goods to Rohit at the list price of Rs. 50,000 less 20% trade discount
and 2% Cash discount. Half of the amount received in cash.
Q.17.A company whose accounting year is Calendar year purchased on 1st
April, 1998 machinery costing Rs. 30,000. It purchased further
machinery on 1st Oct, 1998 costing Rs. 20,000 and on 1 st July 1999
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Assignment Booklet
costing Rs. 10,000. On 1st January 2000, one-third of the machinery

installed on 1st April 1998 became obsolete and was sold for Rs. 3,000.
Show machinery account as it would appear in the books of the
company if machinery was depreciated by diminishing balance method
@ 10% p.a.
[6]
Q.18.Prepare a Double Column Cash Book from the following information:[6]
2012
Rs.
Jan 1 Cash in Hand
8,000
Bank Overdraft
1,000
Jan 2 Received cheque from Ramesh
3,000
Jan 3 Discounted a bill of Rs. 1,000 at 1% through bank.
Jan 4 Rameshs cheque endorsed in favour of Rajiv
Jan 5 Interest on Bank Overdraft
100
Jan 8 Withdrew for office use
500
Q.19.From the following information, prepare a Bank Reconciliation
Statement as on 31st Dec 2012, showing balance as per Pass Book. [8]
(i)
Credit balance shown by the Cash Book Rs. 18,000.
(ii)
Cheques of Rs. 21,600 were issued in the last week of December but a
cheque of Rs. 4,200 was debited in the first week of Jan, 2013.
(iii) Cheques of Rs. 10,750 were deposited in bank in the last week of December
2012. Out of them a cheque of Rs. 5,000 was credited on 30th December,
2012 and the rest were credited in the first week of Jan, 2013.
(iv) Insurance premium paid by the bank Rs. 1,400.
(v)
Bank charges Rs. 200.
(vi) Amount Rs. 500 recorded twice on the debit side of Cash Book.
(vii) A discounted bill of exchange dishonoured Rs. 2,000.
(viii) Overcasting of Receipt side of cash Book by Rs. 600.
Q.20.Ram sells goods for Rs. 800 to Shyam on 1st January, 2010 and on the
same date draws a bill for 3 months on the latter for the amount. Shyam
accepts it and returns it to Ram, who discounts it with his banker for
Rs. 785. On the due date the bill is dishonoured. Noting charges of Rs.
15, were paid by the bank. Shyam then pays Rs. 300 in cash and
accepts a new bill at 3 months for Rs. 535. Before maturity, Shyam
became insolvent and a final dividend of 50 paise in the rupee was
received. Give the Journal entries to record these transactions in the
books of Ram and Shyam.
[8]
Q.21.Record the following transactions of Bajaj Light House in (i) Purchase
Book (ii) Sales Book (iii) Purchase Return Book, and (iv) Sales Return
Book.
[8]
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Nov 2
Nov 8
Nov 12
Nov 15
Nov 20
Nov 23
Nov 24
Nov 29
Q.22.
(i)
Assignment Booklet
Sold to Ravi Electric:

Purchased from Royal Trader:
25 ceiling fans @ Rs. 600 each
20 table fans @ Rs. 800 each
Sold to Five Stars Lighting House:
72 dozen bulbs @ Rs. 100 per dozen
Purchased from Singh and Co. one almirah for Rs. 6,000
Purchased from Better dealer:
Returned by New light house
5 tubelights sold on Nov. 2
Sold goods to Ram Lal and Co. for cash Rs. 10,000.
Returned to Better dealer 1 water heater purchased on Nov 20
[10+2=12]
From the following balances taken from the Trial Balance on 31st March,
2006 of Moti Lal & Sons, prepare Trading and Profit & Loss Account and
Balance Sheet as at 31st March, 2006.
Debit Balances
Machinery
Building
Computers
Sundry Debtors
Opening Stock
Purchases
Sales Returns
Drawings
Wages
Carriage Inward
Carriage Outward
Rs.
1,48,000
7,00,000
30,000
27,200
8,400
4,52,000
800
36,000
39,800
8,000
2,000
Debit Balances
(Contd.)
General Expenses
Insurance and Taxes
Printing Expenses
Cash in hand
Credit balances
Capital
Creditors
Sales
Purchases Returns
Bank Overdraft
Loan (Long-Term)
Rs.
17,000
8,940
7,100
21,210
3,50,000
18,200
7,80,000
8,250
2,00,000
1,50,000
The following adjustments are to be made:

(a)
The stock was valued at Rs. 7,120 on 31.03.06.
(b)
Audit fees due Rs. 31,400.
(c)
Depreciation to be written off @ 10% p.a. on Machinery and
Computers.
(d)
Taxes due Rs. 2,500 and Insurance was prepaid to the extent of Rs.
1,200.
(e)
Loan was taken on 1st October, 2005 @ 10% p.a.
(f)
Debts of Rs. 1,200 proved irrecoverable hence written off and
provision for doubtful debts was to be created @ 5% on Debtors.
(ii)
Mention any two values which an accountant must consider while presenting
financial statements
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Assignment Booklet
Answer Key SETB

1.
2.
3.
4.
5.
6.
7.
Liabilities mean the amount owed by the business to outsiders and to

the proprietors.
[1]
Any one objective:[1]
(i)
To ascertain the arithmetical accuracy of ledger accounts.
(ii)
To help prepare the Final Accounts.
(iii) Summary of each account.
(iv) To help in locating errors.
Business Entity Principle.
[1]
Accrued Income is credited to Profit and Loss A/c on the basis of the
Accrual Principle to arrive at the true profit or loss.
[1]
Any reason.
[1]
As the accountant is hiding the true profit, he is violating, the value of
truthfulness.
[1]
Qualitative characteristics of Accounting Information:- [Any three
for heading and for explanation]
(i)
Reliability
(iii) Understanding
(ii)
Relevance
(iv) comparability
8.
9.
Basis
Nature
Reserve
It is an appropriation of
profit
Provision
It is a charge against profit.
Purpose
It is created to strengthen
the financial position and
to
meet
unforeseen
liabilities or losses.
It is made to meet known

liability or contingency, if
the
amount
is
not
determined.
Presentation A reserve is shown on the

liabilities side of Balance
Sheet under the head
Reserves and Surplus.
Gauravs A/c
Dr.
It is shown either as a
liability under the head
Current Liabilities or as
deduction from the asset.
Date
(iii)
(iv)
(v)
10.
Cr.
Particular
Amount Date Particulars
Amount
To cash A/c
30,000 (i)
By Purchases A/c 50,000
5,000 (ii)
By Purchases A/c 20,000
To Cash A/c
34,000
To Discount Reserved A/c
1,000
70,000
70,000
Total assets = Total Liabilities + Closing Capital

(Closing)
(Closing)
2,00,000
= (50,000+10,0005,0006,000)+ closing capital
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Assignment Booklet
2,00,000 49,000 = Closing Capital

Closing Capital = Rs.1,51,000
Closing Capital = Op. Capital+Add. CapitalDrawings+Profit
Profit = Rs. 1,51,00025,000
= Rs. 1,26,000
[1.5]
[1.5]
11.
(i)
12.
Cash Basis of Accounting:

Revenue = Rs. 4,00,000
Expense = Rs. 70,000
Income = Revenue Expense
= Rs. 4,00,00070,000
= Rs. 3,30,000
(ii)
Accrual Basis of Accounting:
Revenue = Rs. 5,50,000
Expenses = Rs. 1,70,000
Income = Revenue Expense
= Rs. 5,50,0001,70,000
= Rs. 3,80,000
Let C.O.G.S be Rs. X
G.P. =
x= x
[0.5]
[0.5]
[0.5]
[0.5]
Total Sales = Cash Sales + Credit Sales

= Rs. (60,000+50,000)
= Rs. 1,10,000
G.P.
= Total sales C.O.G.S
x
= 1,10,000 x
xx
= 1,10,000
= 1,10,000
x
C.O.G.S
Cl. Stock
=
=
=
=
=
Rs. 82,500
Op. Stock+PurchasesCl.+D.E. Stock
Rs. 1,20,00082,500
Rs. 37,500
[3]
13.
14.
(i)
(ii)
Dr.
Any two examples each

The value of adherence to rules is being observed by the accountant.
Machinery A/c
Cr. [1.5]
Date
Particulars
Amount Date
2011
2011
April 1 To bal b/d
5,00,000 Oct 1
Oct 1
To Bank A/c 2,00,000
77
Particulars
By Bank A/c
By prov. For Dep. a/c
By P& L A/c
Amount
42,000
35,000
23,000
DELHI PUBLIC SCHOOL

Assignment Booklet
2012
Mar 31 By Bal c/d
6,00,000
7,00,000
Dr.
7,00,000
Prov. For Depreciation A/c
Date
Particulars
Amount
2011
Oct 1
To Machinery A/c
35,000
2012
Mar 31 To bal c/d
2,45,000
Date
2011
Apr. 1
Oct 1
2012
Mar 31
Cr. [1.5]
Particulars
Amount
By Bal b/d
By Dep A/c
2,25,000
5,000
By Dep A/c
(40,000+10,000)
2,80,000
Working Notes:Cost of Machinery sold

Annual Depreciation
Accumulated Depreciation
Current years Depreciation
50,000
2,80,000
[1]
=
=
=
=
Rs. 1,00,000
Rs. 10,000
10,0003 = Rs. 30,000
10,000 = Rs. 5,000
Total Depreciaton
= Rs. 35,000
Book value on the date of sale
= Rs. 1,00,000 35,000
= Rs. 65,000
Loss on sale
= Rs. 65,000 42,000 = Rs. 23,000
15.
(i)
(ii)
Any four causes of difference

[2]
(a)
Endorsement of Bill Endorsement means transfer of the bill to another
person.
[1]
(b)
Retirement of Bill Retirement of Bill means that the Drawee pays the bill
before it becomes due for payment.
[1]
16.
(i)
Drawings A/c
To Cash A/c
(Being life insurance premium paid)
(ii) Cash A/c
To Rent received in Advance A/c
(Being rent received in advance)
(iii) Drawings A/c
To Purchases A/c
(Being goods withdrawn for personal use)
(iv) Cheques in Hand A/c
To A
(Being cheque received from A)
Dr.
1,500
Dr.
2,000
[1]
2,000
Dr.
500
[1]
500
Dr.
4,000
[1.5]
4,000
19,600
78
[1]
1,500
[1.5]
DELHI PUBLIC SCHOOL

(v)
17.
Assignment Booklet
Cash A/c
Dr.
Discount Allowed A/c
Dr.
Rohit
Dr.
To Sales A/c
(Being goods sold at 20% trade discount and 2% cash
discount)
Dr.
Machinery A/c
Date
1998
Apr 1
Oct 1
Particulars
Amount
Date
1998
30,000 Dec 31
20,000
To Bank A/c (M1)

To Bank A/c (M2)
400
20,000
40,000
Cr.
Particulars
Amount
By Dep A/c:
M1 3,000
=2,250
M2 2,000
= 500
2,750
By bal c/d:
M1
27,750
M2
19,500
47,250
50,000
50,000
1999
Jan 1
1999
Dec 31
To bal b/d:
M1
27,750
M2
19,500
To Bank A/c (M3)
July 1
47,250
10,000
Dec 31
By Dep A/c
M1
2,775
M2
1,950
M3
500
By bal c/d:
M1
24,975
M2
17,550
M3
9,500
5,225
52,025
5,7250
57,250
2000
Jan 1
2000
Jan 1
To bal b/d:
M1
(8,325+16,650)
M2
17,550
M3
9,500
Dec 31
52,025
By Bank A/c
By P&L A/c
By Dep A/c:
M1
1,665
M2
1,755
M3
950
By bal c/d:
M1
14,985
M2
15,795
M3
8,550
3,000
5,325
4,370
39,330
52,025
52,025
18. Dr.
Cash Book
Date
Particualrs
2012
Jan 1
Jan 3
Jan 8
Jan 8
To
To
To
To
bal b/d
B/R A/c
Bank A/c
bal c/d
L.F.
Cash
(Rs.)
Bank
(Rs.)
Date
8,000
990
C
2012
Jan 1
Jan 5
500
610
8,500
Jan 8
Jan 8
1,600
Cr.
Particulars
By bal b/d
By int. on O/D
A/c
By Cash A/c
By bal c/d
L.F.
Cash
(Rs.)
Bank
(Rs.)
1,000
100
500
8,500
8,500
1,600
[1 mark each]
79
DELHI PUBLIC SCHOOL

19.
Assignment Booklet

[1 mark each]
st
As on 31 Dec, 2012
Particulars
Plus Items Minus Items
(Rs.)
(Rs.)
(i) Overdraft as per Cash Book
18,000
(ii) Cheque issued but not cleared
4,200
(iii) Cheques deposited but not collected
5,750
(iv) Insurance premium paid by the bank
1,400
(v) Bank charges
200
(vi) Amount recorded twice
500
(vii) Discounted bill dishonoured
2,000
(viii) Overcasting of receipt side of cash book.
600
Overdraft as per Pass Book
24,250
28,450
28,450
20.
Date
2010
Jan 1
Jan 1
Jan 1
April 4
April 4
April 4
April 4
Particulars
In the books of Ram

L.F. Amount
(Rs.)
Shyam
Dr.
To Sales A/c
(Being goods sold on credit)
B/R A/c
Dr.
To Shyam
((Being acceptance received)
Bank A/c
Dr.
Discounting charges A/c
Dr.
To B/R A/c
(Being bill discounted)
Shyam
Dr.
To Bank A/c
(Being bill dishonoured)
Shyam
Dr.
To Interest Received A/c
(Being interest due)
Cash A/c
Dr.
To Shyam
(Being cash received)
B/R a/c
Dr.
To shyam
(Being acceptance received)
Shyam
Dr.
To B/R A/c
80
[4]
Amount
(Rs.)
800
800
800
800
785
15
800
815
815
20
20
300
300
535
535
535
535
DELHI PUBLIC SCHOOL

Assignment Booklet
(Being bill cancelled on account of

insolvency)
Cash A/c
Dr.
Bad Debts A/c
Dr.
To Shyam
(Being final dividend received)
267.50
267.50
535
In the books of Ram

Date
2010
Jan 1
Jan 1
April 4
April 4
April 4
April 4
Particulars
[4]
Amount
(Rs.)
L.F. Amount
(Rs.)
Purchases
Dr.
To Ram
(Being goods purchased on credit)
Ram
Dr.
To B/P
(Being acceptance given)
B/P A/c
Dr.
Noting charges A/c
Dr.
To Ram
(Being bill dishonoured and noting
charges due)
Interest paid A/c
Dr.
To Ram
(Being interest due)
Ram A/c
Dr.
To Cash
(Being cash paid)
Ram a/c
Dr.
To B/P A/c
(Being acceptance given)
B/P A/c
Dr.
To Ram
(Being bill dishonoured on account of
insolvency)
Ram
Dr.
To Cash A/c
To Deficiency A/c
(Being final payment made)
81
800
800
800
800
800
15
815
20
20
300
300
535
535
535
535
535
267.50
267.50
DELHI PUBLIC SCHOOL

21.
Date
2001
Nov 8
Nov 20
Nov 31
Date
2001
Nov 2
Nov 12
Nov 31
Date
2001
Nov 29
Particulars
Assignment Booklet
Purchase Book
L.F. Invoice No.
Royal Trader
25 ceiling fans @ Rs. 600
20 table fans @ Rs. 800
Better dealer
Purchases A/c
Dr.
Particulars
Sales Book
L.F. Invoice No.
Ravi Electric
50 tube lights @ Rs. 60 each
Five Star lighting House
72 dozen bulb @ Rs. 100 per
dozen
Sales A/c
Cr.
Particulars
Details
15,000
16,000
Amount
31,000
1,800
32,800
Details
2,400
3,000
Amount
5,400
7,200
12,600
Purchase Return Book

L.F. Invoice No.
Details
Amount
Better dealer
360
Nov 31
Purchase return A/c
360
Date
2001
Nov 23
Particulars
Cr.
Sales Return Book
L.F. Invoice No.
Details
Amount
New Light house/Ravi Electric

300
Nov 31 Sales return A/c
Dr.
300
Note 1:
Transaction dated Nov 15 will not be recorded in Purchase Book
as
it is purchase of asset.
Note 2:
Transaction dated Nov 24 will not be recorded in Sales Book as it is
cash sale.
82
DELHI PUBLIC SCHOOL

22.
Dr.
Assignment Booklet
Trading & Profit & Loss A/c
Particulars
To opening stock
To Purchases 4,52,000
Less: Purchase Returns
To wages
To Carriage inward
To Gross Profit
To carriage outward
To Audit fees
To Depreciation on:
Machinery
Computer
To Insurance and taxes
Less: Prepaid Insurance
Add: Taxes due
To Interest on loan A/c
To Bad Debts
Add: Prov. For B/debts
To General Expenses
To Printing Expenses
To Net Profit
8,250
7,86,320
2,000 By Gross Profit
31,400
14,800
3,000
8,940
1,200
2,500
1,200
1,300
Cr.
Rs.
Particulars
Rs.
8,400 By Sales
7,80,000
Less: Sales Returns
800 7,79,200
4,43,750 By Closing Stock
7,120
39,800
8,000
2,86,370
7,86,320
2,86,370
17,800
10,240
7,500
2,500
17,000
7,100
1,90,830
2,86,370
2,86,370
Balance Sheet
Liabilities
Rs.
Assets
Rs.
Sundry Creditors
18,200 Cash in hand
21,210
Bank Overdraft
2,00,000 Prepaid Insurance
1,200
O/s Audit fees
31,400 Sundry Debtors
27,200
O/s Interest on Loan
7,500 Less: B/debts
1,200
O/s Taxes
2,500 Less: Prov. for B/Debts
1,300
24,700
Loan (Long term)
1,50,000 Closing Stock
7,120
Capital
3,50,000
Machinery
1,48,000
Less: Drawings
36,000
Less: Dep
14,800
Add: Net Profit
1,90,830 5,04,830 Computers
30,000
Less: Dep
3,000
1,33,200
Building
27,000
7,00,000
9,14,430
9,14,430
(i)
(ii)
Interest on Loan
=
1,50,000
=
Rs. 7,500
Provision for doubtful debts
= (27,200 1,200)
= Rs. 1,300
[1 mark each for adjustment. Remaining 4 marks for the rest]
83
DELHI PUBLIC SCHOOL

Assignment Booklet
Half Yearly Examination 2013-14

Set A
(i)
(ii)
====================================================
Q.1. Aakash a proprietor appointed Danny a physically handicapped as senior

Accountant in the firm and paid him Rs. 20,000 salary. Which value is
involved in this appointment?
[1]
Q.2. What is Compound Journal Entry? Give an example.
[1]
Q.3. Name the categories of accounts that are balanced.
[1]
Q.4. Cash column in cash book cannot have a negative balance. Why?
[1]
Q.5. What is the due date of Bill of exchange dated 24th Nov 2012, payable after
60 days?
[1]
Q.6. Name the types of Vouchers.
[1]
Q.7. What is the objective behind preparing an Account?
[1]
Q.8. What is cash memo?
[1]
Q.9. Godrej Ltd. imported from Germany one machinery for sale in India and
another machinery for production purpose. Will you treat them as goods or
Fixed Asset?
[1]
Q.10. Accounting records transactions and events that can be measured in money
terms. Is this, in your opinion, a limitation of accounting or an advantage?
Give reason.
[2]
Q.11. Differentiate cash basis and accrual basis of accounting on the following
basis:
[2]
(ii)
Acceptability
(i)
Recording
Q.12. Ravi, a factory owner, during the financial year 2012-13 earned Rs.
8,00,000. Out of which he received Rs. 7,75,000. He incurred expenses of
Rs. 3,40,000 out of which Rs. 80,000 are outstanding. He also received
dividend relating to previous year Rs. 90,000 and also paid Rs. 40,000
expenses of last year. You are required to determine his income for the year
if:
[3]
(i)
He follows cash basis of accounting.
(ii)
He follows accrual basis of accounting.
Q.13. Radha draws a bill on Lalita for Rs. 50,000. She endorsed it to Visakha in
settlement of Rs. 62,000 at 4% discount and paid the balance in cash.
Record the transactions in journal of Radha.
[3]
84
DELHI PUBLIC SCHOOL

Assignment Booklet
Q.14. Surender Mohan started business on 1st April 2011 with capital of Rs.
7,50,000 and loan of Rs. 2,00,000 taken from Punjab National Bank. On
31st March 2012, his assets were Rs. 15,00,000. He also introduced
additional capital of
Rs. 1,25,000 and he withdrew Rs. 40,000 for
personal purpose. Find out his capital on 31 March 2012 and profit made or
loss incurred during the year 2011-12.
[3]
Q.15. Explain traditional classification of accounts with examples.
[4]
Q.16. Show the effect of following transaction on accounting equation:
[4]
(i)
(ii)
(iii)
Started business with cash Rs. 50,000 and goods Rs. 20,000.
Bought goods for cash Rs. 15,000 and on credit for Rs. 10,000.
Goods costing Rs. 24,000 sold at profit of 33 %. Half the payment received in
(iv)
cash.
Purchased furniture for office use Rs. 6,000 and for household use of Sudhir Rs.
4,000.
Q.17. What do you mean by accounting information? Explain types of Accounting

information.
[4]
Q.18. Explain the following with examples:
(i)
Deferred Revenue expenditure
(ii)
Types of stock
[6]
(iii)
Discount
Q.19. From the following Transaction state the nature of account and state which
account will be debited and which account will be credited:
[6]
(i)
Harish started business with cash of Rs. 1,00,000.
(ii)
Deposited cash in bank Rs. 60,000 for opening an account.
(iii) Purchased goods from Ram Rs. 60,000.
(iv) Sold goods to Ravi on credit Rs. 50,000.
(v)
Received a cheque from Ravi for Rs. 40,000.
(vi) Received dividend Rs. 2,000.
Q.20.
[6]
(i)
Explain the following:
(a)
Business Entity Principle
(b)
Consistency Assumption
(ii)
Abdul gets a crossed cheque for Rs. 10,000 from Daniel. Bank refused to make its
payment on its counter. Which values are observed by bank in refusing the
payment?
Q.21. Record the following transaction in Petty Cash Book drawn with suitable
columns and then balance the same. The book is kept on imprest system.
Amount of imprest being Rs. 5,000.
[6]
2011
April 1
Petty cash in hand Rs. 420, Received cash to make the imprest. Bought
85
DELHI PUBLIC SCHOOL

April 5
April 10
April 12
April 15
Q.22.
(i)
(ii)
Assignment Booklet
stamps for Rs. 60.

Paid for office cleaning Rs. 400 and repairs to furniture Rs. 250.
Paid taxi fare 440, railway fare 330, telegram 200.
Served refreshment to customer Rs. 150.
Gave tips to office peon Rs. 50.
[8+2]
Ajay sold goods to Vijay on 1 Jan 2013 costing Rs. 20,000 at profit 10% and
allowed trade discount 5%. Vijay accepted 3 bills of Rs. 10,000, Rs. 8,000 and
third bill for remaining amount for 3 months. Ajay discounted first bill at 10% p.a.
with his banker and endorsed the second bill to Harish. Third bill was sent to
bank for collection before the due date. All the bills duly matured on due date.
Pass the journal entries in the books of Ajay and Vijay.
Sunny draws a bill on Vivek. Vivek finds himself in financial difficulties and
requests Sunny to renew the bill for a further period of one month. Sunny agrees
to his request. What are the values involved in renewing the bill?
st
Q.23. Enter the following in Triple Column Cash Book of Shri Krishna:
[10]
2013
Jan 1
Cash at office Rs. 12,300 and bank balance (cr.) Rs. 25,750.
Jan 3
Deposited into bank Rs. 10,000
Jan 15
Sri Ratan settled his account for Rs. 17,500 by giving a cheque Rs.
17,300
Jan 20
Goods purchased from Ravi Shankar for Rs. 20,000 less trade discount
10%.
Jan 21
Sri Ratans cheque deposited into Bank
Jan 23
Sri Ratans cheque dishonoured
Jan 25
Goods sold to Bahal for cash Rs. 30,000
Jan 30
Bank charges Rs. 100
Deposited with bank the entire balance after retaining Rs. 2,000 at office.
Jan 30
Q.24. Journalise the following transaction, post to the ledger and prepare a Trial
Balance.
[10]
2013
Jan 1 Avi started business with cash 1,50,000
Jan 12 Purchased goods from Alok for Rs. 50,000 less 10% trade discount
Jan 14 Sold goods for cash Rs. 50,000 less 10% trade discount
Jan 16 Salary Outstanding Rs. 5,000
Jan 20 Paid to Alok on account Rs. 30,000
Jan 31 Withdrew cash for Private use Rs. 5,000
86
DELHI PUBLIC SCHOOL

Assignment Booklet

[12]
Jan 1
Rakesh started business with cash Rs. 1,00,000 and Building Rs. 3,00,000
Jan 5
Opened a current A/c with Canera Bank and deposited Rs. 50,000.
Jan 6
Goods purchased from Gupta Bros. Rs. 60,000 less 5% trade discount. Paid 1/4th
amount immediately and availed 2% cash discount.
Jan 10 Sold goods costing Rs. 40,000 plus 10% Profit less 10% trade discount to Mehta
Bros. He paid 20% Only.
Jan 20 Mehta Bros became insolvent paid only 30 paise in a rupee.
Jan 23 Purchased second hand machinery for Rs. 20,000 by cheque and paid 2,000 for its
installation and repairs in cash.
Jan 24 Goods damaged by fire Rs. 5,000 and Insurance company accepted a claim of
Rs. 3,000.
Jan 26 Paid life insurance policy premium Rs. 1,000.
Jan 28 Paid salary in advance to Mr. Raj Rs. 10,000.
Jan 30 Goods withdrew for personal use. (Cost Price Rs. 5,000 and Market Price Rs. 4,500)
87
DELHI PUBLIC SCHOOL

Assignment Booklet
Half Yearly Examination 2013-14

Set B
(i)
(ii)
====================================================
Q.1. Mr. Singh dealing in electronic goods sold 20 TV sets costing Rs.30,000
each at Rs. 40,000 each. Out of this Rs. 5,00,000 were received in cash and
balance is not yet received. State the amount of Revenue.
[1]
Q.2. What is Invoice?
[1]
Q.3. Aakash a proprietor appointed Danny a physically handicapped as senior
accountant in the paid him Rs. 20,000 salary. Which value is valued involved
in this appointment?
[1]
Q.4. Name the types of Accounting Vouchers.
[1]
Q.5. Cash column in cash book cannot have a negative balance. Why?
[1]
Q.6. How is Trade discount recorded in the books of accounts?

[1]
Q.7. Name the category of accounts that is not balanced. Where is their balance
transferred?
[1]
th
Q.8. Find the due date of a Bill of exchange dated 27 November, 2007 payable
after 3 months.
[1]
Q.9. What is the objective behind preparing trial balance?
[1]
Q.10. Differentiate cash basis and accrual basis of accounting on the following
basis:
[2]
(ii)
Acceptability
(i)
Recording
Q.11. Recording the transactions and events correctly and preparing financial
statements are the only objectives of accounting. Do you agree?
[2]
Q.12. Hari, a factory owner, during the financial year 2012-13 earned Rs. 6,00,000.
Out of which he received Rs. 4,95,000. He incurred expenses of Rs. 2,45,000
out of which Rs. 30,000 are outstanding. He also received interest in
advance Rs. 20,000 and paid Rs. 10,000 expenses of last year. You are
required to determine his income for the year if:
[3]
(i)
He follows cash basis of accounting.
(ii)
He follows accrual basis of accounting.
Q.13. Yogesh started business on 1st Jan 2008 with capital of Rs. 1,00,000 and
loan from wife of Rs. 50,000. On 31st Dec 2008, his assets were 1,75,000.
During the year he had introduced additional capital of Rs. 60,000 and
withdrew Rs. 36,000 for personal purpose. Find out his capital as on 31 st
Dec 2008, and profit earned or loss incurred during the year 2008.
[3]
88
DELHI PUBLIC SCHOOL

Assignment Booklet
Q.14. Radha draws a bill on Lalita for Rs. 50,000. She endorsed it to Visakha in
settlement of Rs. 62,000 at 4% discount and paid the balance in cash.
Record the transactions in journal of Radha.
[3]
Q.15. Show the effect of following transaction on accounting equation:
[4]
(i)
Started business with cash Rs. 20,000, goods Rs. 50,000 and furniture Rs.
30,000.
(ii)
Goods costing Rs. 20,000 sold at loss of 5% out of which Rs. 12,000 received in
cash.
(iii) Depreciation on Furniture Rs. 2,000.
(iv) Paid rent Rs. 3,000 and Salary outstanding Rs. 1,000.
Q.16. Explain traditional classification of accounts with examples.
[4]
Q.17. What do you mean by Financial Accounting? Explain any three functions of
Accounting.
[4]
Q.18.
[2+2+2]
(i)
Explain the following:
(a)
Going
concern
(b) Prudence principle
Assumption
(ii)
Abdul gets a crossed cheque for Rs. 10,000 from Daniel. Bank refused to make its
payment on its counter. Which values are observed by bank in refusing the
payment?
Q.19. Explain the following with examples:
[2+2+2]
(i)
External
(ii)
Purchases
liabilities
(iii) Trade Payables
Q.20. Record the following transaction in Petty Cash Book drawn with suitable
columns and then balance the same. The book is kept on imprest system.
Amount of imprest being Rs. 5,000.
[6]
2011
April 1
Petty cash in hand Rs. 420, Received cash to make the imprest. Bought
stamps for Rs. 60.
April 5
Paid for office cleaning Rs. 400 and repairs to furniture Rs. 250.
April 10
Paid taxi fare Rs. 440, railway fare Rs. 330, telegram Rs. 200.
April 12
Served refreshment to customer Rs. 150.
April 15
Gave tips to office peon Rs. 50.
Q.21. From the following transaction state the nature of account and state which
account will be debited and which account will be credited.
[6]
(i)
Vijay started business with cash of Rs.5,00,000.
(ii)
Purchased furniture Rs. 20,000 from Ravish furniture house.
(iii) Purchased goods from Mahesh for cash Rs. 40,000.
(iv) Withdrew goods for personal consumption of Rs. 10,000.
(v)
Sold goods to Shyam Rs. 60,000.
(vi) Received cash from Shyam Rs. 40,000.
89
DELHI PUBLIC SCHOOL

Q.22.
(i)
(ii)
Assignment Booklet
[8+2]
A sold goods to B for Rs. 30,000 on 1 Jan 2013 at a profit of of 10% and less
trade discount of 10%. B accepted three bills for 4 months of Rs. 8,000, Rs. 8,000
and third bill for remaining amount. A endorsed first bill to C and discounted
second bill with his banker for Rs. 7,800, Third bill was retained till maturity. All
the bills duly matured. Pass journal entries in the books of A and B.
Sunny draws a bill on Vivek. Vivek finds himself in financial difficulties and
requests Sunny to renew the bill for a further period of one month. Sunny agrees
to his request. What are the values involved in renewing the bill?
st
Q.23. Enter the following in Triple Column Cash Book of Shri Krishna:
[10]
2013
Apr 1
Cash in hand Rs. 2,20,000 and overdraft at bank Rs. 60,000.
Apr 2
Received from Ved Rs. 2,80,000, half of the amount was deposited into
bank on the same day.
Apr 10
Purchased goods from Mukesh for Rs. 30,000 and paid him cheque of
Rs. 29,500.
Apr 11
Received cheque from Manohar Rs. 20,000.
Apr 15
Purchased furniture from Behal Brothers for Rs. 40,000
Apr 16
Manohars cheque endorsed to Nitin.
Apr 18
Drew from bank for household expenses Rs. 10,000 and for Income Tax
Rs. 15,000.
Apr 30
Manohars cheque returned dishonored. Deposited with bank the entire
balance after retaining Rs. 20,000 at office.
Q.24. Journalise the following transaction, post to the ledger and prepare a Trial
Balance.
[10]
2013
Jan 1 Akshay started business with cash Rs. 3,00,000
Jan 13 Purchased goods from Rahul, List price Rs. 60,000 less 5% trade discount
Jan 15 Sold goods to Akhil for Rs. 70,000 less 10% trade discount
Jan 20 Received cash from Akhil on account Rs. 37,000
Jan 25 Rent paid in advance Rs. 1,500
Jan 30 Withdrew for personal use Rs. 10,000
[12]
2012
Apr 1
Anand started business with cash Rs. 10,00,000 and Furniture Rs. 3,00,000
Apr 3
Took a loan of Rs. 3,00,000 from Bank.
Apr 4
Goods purchased from Kavi traders List Price Rs. 80,000 less 5% trade discount.
Paid 25% immediately.
Apr 10
Purchased Building for Rs. 2,00,000 paid by cheque and paid in cash Brokers
Commission Rs. 10,000 and Registration fee Rs. 50,000.
Apr 12
Sold Goods costing Rs. 70,000 plus 20% Profit less 5% trade discount to Krishna
90
DELHI PUBLIC SCHOOL

Apr 16
Apr 18
Apr 20
Apr 25
Apr 29
Assignment Booklet
and received 30% amount immediately and allowed 5% cash discount.

Received an order of goods for Rs. 50,000 from Mittal Brothers.
Paid to Kavi Brothers remaining amount and received 2% discount.
Distributed goods as free samples Rs. 5,000
Charge depreciation on Furniture @ 10%.
Salary outstanding Rs. 30,000
91
DELHI PUBLIC SCHOOL

Assignment Booklet
Annual Examination 2013-14 (Solved)

Set A
(i)
(ii)
====================================================
Q.1. Give two examples of Current Assets.
[1]
Q.2. How is Accrual Basis of Accounting based on the revenue recognition

principle?
[1]
Q.3. What is the difference between specific reserve and general reserve?
[1]
Q.4. What was the need of I.F.R.S?
[1]
Q.5. Define Opening Entry.
[1]
Q.6. What is Debit Balance?
[1]
Q.7. Explain Capital Receipts with an example.
[1]
Q.8. Define Grouping of Assets and Liabilities.
[1]
Q.9. Identify the Accounting Principle involved:

[3]
(i)
A transaction is recorded in the books of accounts at the time when it is entered
into and not when the settlement takes place.
(ii)
Provision for doubtful debts is created for the debtors which are likely to be bad.
(iii) The total cost of the fixed asset is not treated as an expense in the year of
purchase itself.
Q.10. Do the posting to the ledger accounts:(i)
Journal
[3]
Date
Particulars
L.F. Debit (Rs.) Credit (Rs.)
2013
April 1 Cash A/c
Dr.
50,000
Rajesh
Dr.
10,000
To Capital A/c
60,000
(Being balances brought forward)
(ii)
Dr.
Date
2013
Jan 1
Jan
10
Cash Book (Extract)

Particulars L.F. Disc.
All.
(Rs.)
To bal b/d
To Ramesh
100
Cash
(Rs.)
50,000
4,900
Bank
(Rs.)
40,000
92
Date
Cr.
Particulars L.F. Disc. Cash Bank

Rec. (Rs.) (Rs.)
(Rs.)
DELHI PUBLIC SCHOOL

Assignment Booklet
[3]
Q.12. Anil started his business on Jan 1, 2013 with a capital of Rs. 1,00,000 and
loan from friend of Rs. 30,000. During the year he returned Rs. 5,000 to his
friend and withdrew Rs. 25,000 for personal use. Find out his capital at the
end of the year and profit or loss if his assets on 31st Dec, 2013 are Rs.
1,25,000.
[3]
Q.13. From the following information, draw up a Trial Balance in the books of Shri
Ved Prakash as on 31st March, 2013.
Capital Rs. 1,40,000; Purchases Rs. 36,000; Discount Allowed Rs. 1,200;
Carriage outward Rs. 700; Rent and Taxes Rs. Rs. 1,200; Plant and
Machinery Rs. 80,700; Stock on 1st April, 2012 Rs. 15,500; Sundry Debtors
Rs. 20,200; Sundry Creditors 12,000; Investments Rs. 3,600; Commission
Received Rs. 1,800; Cash in hand Rs. 100; Cash at Bank Rs. 10,100; Motor
Cycle Rs. 34,600 and Stock on 31st March, 2013 (not adjusted) Rs. 20,500.
[4]
Q.14. Prepare a sales book of Navketan Furniture House and post to the ledger:- [4]
2013
May 1
Sold goods to Five Star Furniture Co., New Delhi, on credit:150 Chairs @ Rs. 200 each
40 Tables @ Rs. 600 each
Trade Discount 10%
May 15
Sold to Moonlight Furniture Co. for cash:50 chairs @ Rs. 175 each
May 20
Sold goods to Parkash Furniture House, Chandigarh:100 chairs @ Rs. 180 each
Less: 5% Trade Discount
May 28
Sold on credit to Sunil Machinery Store:2 old Machineries @ Rs. 500 per machine.
1 old Typewriter for Rs. 1,200.
Q.15. Calculate the cost of goods sold and Gross Profit from the following
information:[4]
Opening Stock Rs. 30,000; Purchases Rs. 54,600; Expenses on Purchases
Rs. 6,000; Sales Rs. 90,000; Expenses on Sales Rs. 3,000; Closing Stock
Rs. 36,600.
Q.16. Prepare accounting equation for the following transactions:[4]
(i)
Commenced business with cash Rs. 20,000, Goods Rs. 50,000 and Furniture Rs.
30,000.
(ii)
Goods costing Rs. 40,000 sold at a profit of 25%. Three fourth payment received
in cash.
(iii) Introduced fresh capital Rs. 40,000.
(iv) Paid telephone bill amounting to Rs. 800.
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Q.17. Pass journal entries for the following transactions:[6]

(i)
Paid Income Tax Rs. 7,000.
(ii)
A cheque from Mr. A amounted to Rs. 3,000 deposited in the bank was returned
dishonoured.
(iii) Closing stock of Rs. 10,000 adjusted against purchases.
(iv) Rent due to landlord Rs. 500.
(v)
Sold goods to Ramesh for Rs. 20,000, allowed him 10% Trade Discount and
10% Cash Discount. Received half of the amount by cash.
Q.18. Rectify the following errors detected after the preparation of Trial Balance:
[6]
(i)
Goods purchased for Rs. 99 had been posted to the credit of the supplier as Rs.
990.
(ii)
Rs. 75 received as discount from a creditor was duly entered in his account but it
was omitted to be posted to discount account.
(iii) Sale of Furniture for Rs. 1,400 had been entered in sales book.
(iv) Goods of the value of Rs. 3,000 returned by a customer were taken into the stock
but no entry was made in the books.
(v)
Rs. 720 paid to Kamal has been debited to Kamlesh A/c as Rs. 520.
(vi) The total of Purchase Return Book Rs. 2,500 was left unposted.
Q.19. On 1st January, 2004, Machinery was purchased by X for Rs. 50,000. On 1 st
July, 2005, additions were made to the extent of Rs. 10,000. On 1st April,
2006, further additions were made to the extent of Rs. 6,400.
On 30th June, 2007 Machinery, the original value of which was Rs. 8,000 on
1st January, 2004, was sold for Rs. 6,000. Depreciation is charged at 10%
p.a. on the original cost. Show the Machinery Account for the years from
2004 to 2007 in the books of X. X closes the books on 31 st December.
[6]
Q.20.
[8]
(i)
Prepare Bank Reconciliation Statement of M/s Jeet Lal Enterprises as on 31st
March, 2013 from the following information:i. Balance as per Pass Book (credit) Rs. 75,000.
ii. Cheque of Rs. 3,000 received from a customer and deposited in the bank was
dishonoured and advice of non-payment was not received from the bank.
iii. Cheque issued but not cashed before 31st March, 2013 amounted to Rs. 4,500.
iv. A cash deposit of Rs. 500 was omitted to be recorded in the bank column of
cash Book.
v. Dividends of Rs. 200 collected by the bank and donations of Rs. 5,000 paid by
it for the education of poor and needy children through cheques were not
recorded in the Cash Book.
vi. Cheque of Rs. 750 which had been debited to bank account was not sent to the
bank.
vii. One outgoing cheque of Rs. 650 was recorded twice in the Cash Book.
(ii)
Identify the value shown by M/s Jeet Lal enterprises.
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Q.21.
(i)
2013
Dec 1
Dec 3
Dec 4
Dec 8
Dec 12
Dec 22
Dec 26
Assignment Booklet
[8]
Prepare Triple Column Cash Book of Mahendra from the following transactions:-
Cash in hand
Cash at bank
Deposited into bank
Goods Purchased and issued cheque for the same
Paid donation by cheque to a blind school
Received from Ramesh Rs. 2,800 in full settlement of his account of Rs.
3,000. Half of the amount was deposited into bank on the same day.
Received Cheque from Sonia & Co.
Discount allowed
Deposited the cheque received from Sonia & Co. into bank
Rs.
2,15,000
30,000
40,000
17,000
8,000
17,850
150
(ii) Identify the value involved in the above transactions.

Q.22. On 1st February, 2010 three bills were drawn by Kiran on Mohanji, who owed
Rs. 50,000. The bills were accepted by Mohanji as follows:
[8]
(i)
Bill for Rs. 10,000 for 1 month.
(ii)
Bill for Rs. 15,000 for 2 months.
(iii) Bill for Rs. 25,000 for 3 months.
The first bill was endorsed in favour of Rina on 5 th February, 2010. The second bill was
sent to bank for collection on 10th February, 2010. The third bill was retained by Kiran
till due date. The first bill was honoured on due date. The bill sent for collection to bank
was dishonoured and noting charges paid Rs. 100. Mohanji paid the amount by cheque
on 20th April, 2010. In respect of third bill, Mohanji request Kiran to renew the bill for 3
months for the amount of third bill together with interest at 10% p.a. Kiran accepted the
proposal. Pass necessary journal entries in the books of Kiran and Mohanji.
Q.23.
(i)
The following is the Trial Balance of Amrit Raj as on 31st March, 2012:[12]
Dr. (Rs.) Cr. (Rs.)
Capital
25,000
Building
30,000
Furniture
2,640
Scooter
4,000
Returns inward and outward
2,300
1,600
st
Stock on 1 April, 2011
8,000
Purchases and Sales
33,800 56,040
Bad Debts
300
Carriage inward
700
General Expenses
1,200
Bad Debts Provision
700
Bank Loan
5,000
Interest on Bank Loan
300
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Commission
Insurance and Taxes
Scooter Expenses
Salaries
Cash in hand
Debtors and Creditors
900
2,000
2,600
4,400
2,000
3,000
8,000
97,240 97,240
You are required to prepare the final accounts for the year ending 31 st March,
2012 taking into account the following adjustments:Closing Stock on 31st March, 2012 was valued at Rs. 4,340.
(a)
Commission includes Rs. 300 being commission received in advance.
(b)
Salaries have been paid for 11 months.
(c)
(d)
Depreciate Building by 5% and Scooter by 15%.
(e)
Write off Rs. 200 as further Bad-debts and maintain bad-debts provision at 5% on
debtors.
(ii)
An accountant is always involved in window dressing. State a value:(a)
That is observed by him.
(b)
That is violated by him.
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Answer Key Set A
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Annual Examination 2013-14

Set B
(iii)
(iv)
================================================
Q.1. Give two examples of Intangible Fixed Assets.
[1]
Q.2. How is Accrual Basis of Accounting based on the matching principle?
[1]
Q.3. What is the basic difference between a reserve and a provision?
[1]
Q.4. State one difference between I.F.R.S and Indian GAAP.
[1]
Q.5. Define Trade Discount.
[1]
Q.6. What is Credit Balance?
[1]
Q.7. Explain Capital Expenditure with an example.
[1]
Q.8. Define Marshalling of Assets and Liabilities.
[1]
[3]
Q.10. Identify the Accounting Principle involved:

[3]
(i)
Closing stock is valued at lower of cost or market value.
(ii)
All accounting transactions should be evidenced and supported by business
documents.
(iii) Amount in the credit of the capital is a liability of the enterprise towards the
proprietor.
Q.11. Do the posting to the ledger accounts:(i)
Journal
Date
Particulars
2013
April 1 Bank A/c
Dr.
70,000
Stock A/c
Dr.
10,000
To Capital A/c
80,000
(Being balances brought forward)
(ii)
Dr.
Cash Book (Extract)
Date
Particulars
2013
Jan 1
To bal b/d
L.F.
Disc.
All.
(Rs.)
Cash
(Rs.)
50,000
Bank
(Rs.)
40,000
111
Date
Particulars
2013
Jan 10
By Ramesh
L.F.
Disc.
Rec.
(Rs.)
100
Cash
(Rs.)
4,900
[3]
Cr.
Bank
(Rs.)
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Q.12. Anil started his business on Jan 1, 2013 with a capital of Rs. 1,00,000 and
loan from friend of Rs. 30,000. During the year he returned Rs. 5,000 to his
friend and withdrew Rs. 25,000 for personal use. Find out his capital at the
end of the year and profit or loss if his assets on 31st Dec, 2013 are Rs.
1,25,000.
[3]
Q.13. Prepare a Purchase book of Pawan Electric Store, New Delhi and post to the
ledger:[4]
2013
June 1
Purchased goods from Surya Electric Store, Chandni Chowk, on
credit:200 Tube lights @ Rs. 50 each
50 Heaters @ Rs. 100 each
Trade Discount 10%
June 15
Bought from Sunny Lamp, Lajpat Nagar, for cash:5 Electric Irons @ 175 each.
June 20
Purchased goods from Ravindra Electric Co., Patel Nagar, on
credit:120 Dozen Bulbs @ 80 per dozen.
20 Water heaters @ Rs. 120 each
Less: 20% Trade Discount
May 28
Bought from Fashion Furniture Co., Chitra Road, on credit:12 chairs @ Rs. 200 each
2 Tables @ Rs. 1,000 each.
Q.14. Calculate the Closing Stock and the cost of goods sold from the following
information:[4]
Opening Stock Rs. 15,000; Sales Rs. 48,000; Carriage Inwards Rs. 3,000;
Sales Return Rs. 3,000; Gross Profit Rs. 18,000; Purchases Rs. 30,000;
Purchases Return Rs. 2,700.
Q.15. From the following information, draw up a Trial Balance in the books of Shri
Ved Prakash as on 31st March, 2013.
Capital Rs. 1,40,000; Purchases Rs. 36,000; Discount Allowed Rs. 1,200;
Carriage outward Rs. 700; Rent and Taxes Rs. Rs. 1,200; Plant and
Machinery Rs. 80,700; Stock on 1st April, 2012 Rs. 15,500; Sundry Debtors
Rs. 20,200; Sundry Creditors 12,000; Investments Rs. 3,600; Commission
Received Rs. 1,800; Cash in hand Rs. 100; Cash at Bank Rs. 10,100; Motor
Cycle Rs. 34,600 and Stock on 31st March, 2013 (not adjusted) Rs. 20,500.
[4]
Q.16. Prepare accounting equation for the following transactions:[4]
(i)
Started business with cash Rs. 60,000 and Goods Rs. 30,000.
(ii)
Goods costing Rs. 20,000 sold at a loss of 5%. Out of which Rs. 12,000 received
in cash.
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(iii)
(iv)
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Paid rent Rs. 6,000.

Purchased typewriter for personal use of the proprietor Rs. 20,000
Q.17. Pass journal entries for the following transactions:[6]

(i)
Paid life insurance policy premium of the proprietor Rs. 6,000.
(ii)
A cheque from Mr. A endorsed in favour of Mr. B amounted to Rs. 3,000 was
returned dishonoured.
(iii) Wages A/c transferred to Trading A/c at the end of the year Rs. 6,000.
(iv) Bad debts recovered Rs. 12,000.
(v)
Purchased goods from Santosh of Rs. 40,000 at terms 10% Trade Discount and
10% Cash Discount. Paid half of the amount in cash.
Q.18. Rectify the following errors detected after the preparation of Trial Balance:
[6]
(i)
The total of purchase return Book Rs. 710 was posted twice.
(ii)
Purchase of machinery for Rs. 5,600 on credit was recorded in Purchase Book.
(iii) Sales Return Book was untotalled Rs. 1,580.
(iv) Goods taken away by Ramesh, the proprietor for his personal use worth Rs. 750
has not been recorded in the books of accounts at all.
(v)
Goods purchased for Rs. 5,000 were posted as Rs. 500 to the purchases account.
(vi) A sale of Rs. 400 has been passed through the purchase day book. The
Customers A/c has however been correctly debited.
Q.19. On 1st January, 2005, Z Ltd. purchased machinery for Rs. 1,20,000 and on
30th June, 2006, it acquired additional machinery at a cost of Rs. 20,000.
On 31st March, 2007, one of the machines purchased on 1st January, 2005 at
a cost of Rs. 5,000 was found to have become obsolete and was sold as
scrap for Rs. 500. It was replaced on that date by a new machine costing Rs.
8,000. Depreciation is to be provided @ 10% p.a. on written down value.
Accounts are closed on 31st December each year. Show the Machinery
Account for the first three years.
[6]
Q.20.
(i)
[8]
Prepare Bank Reconciliation Statement of M/s Jeet Lal Enterprises as on 31st
March, 2013 from the following information:(a)
Balance as per Pass Book (credit) Rs. 75,000.
(b)
Cheque of Rs. 3,000 received from a customer and deposited in the bank
was dishonoured and advice of non-payment was not received from the
bank.
(c)
Cheque issued but not cashed before 31st March, 2013 amounted to Rs.
4,500.
(d)
A cash deposit of Rs. 500 was omitted to be recorded in the bank column
of cash Book.
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Dividends of Rs. 200 collected by the bank and donations of Rs. 5,000
paid by it for the education of poor and needy children through cheques
were not recorded in the Cash Book.
(f)
Cheque of Rs. 750 which had been debited to bank account was not sent
to the bank.
(g)
One outgoing cheque of Rs. 650 was recorded twice in the Cash Book.
Identify the value shown by M/s Jeet Lal enterprises.
(e)
(ii)
Q.21. On 1st February, 2010 three bills were drawn by Kiran on Mohanji, who owed
Rs. 50,000. The bills were accepted by Mohanji as follows:
[8]
(i)
Bill for Rs. 10,000 for 1 month.
(ii)
Bill for Rs. 15,000 for 2 months.
(iii) Bill for Rs. 25,000 for 3 months.
The first bill was endorsed in favour of Rina on 5 th February, 2010. The second bill was
sent to bank for collection on 10th February, 2010. The third bill was retained by Kiran
till due date. The first bill was honoured on due date. The bill sent for collection to bank
was dishonoured and noting charges paid Rs. 100. Mohanji paid the amount by cheque
on 20th April, 2010. In respect of third bill, Mohanji request Kiran to renew the bill for 3
months for the amount of third bill together with interest at 10% p.a. Kiran accepted the
proposal. Pass necessary journal entries in the books of Kiran and Mohanji.
Q.22.
[8]
(i)
Prepare Triple Column Cash Book of Mahendra from the following transactions:2013
Dec 1
Cash in hand
Bank Overdraft
Dec 2
Purchased goods from Ram
Dec 5
Deposited into bank
Dec 6
Paid to Ram by cheque
Discount allowed
Dec 11
A bill of Rs. 20,000 was discounted through bank @ 2%
Dec 17
Sold goods to Ratan
Dec 22
Ratan became insolvent. Though he could pay 50% but Mahendra asked
him to pay 25% only
(ii)
Identify the value involved in the above transactions.
114
Rs.
1,50,000
2,500
10,000
12,000
9,800
200
30,000
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Q.23.
Assignment Booklet
[12]
(i) The following is the Trial Balance of Amrit Raj as on 31 March, 2012:Dr. (Rs.) Cr. (Rs.)
Capital
25,000
Building
30,000
Furniture
2,640
Scooter
4,000
Returns inward and outward
2,300
1,600
st
Stock on 1 April, 2011
8,000
Purchases and Sales
33,800 56,040
Bad Debts
300
Carriage inward
700
General Expenses
1,200
Bad Debts Provision
700
Bank Loan
5,000
Interest on Bank Loan
300
Commission
900
Insurance and Taxes
2,000
Scooter Expenses
2,600
Salaries
4,400
Cash in hand
2,000
Debtors and Creditors
3,000
8,000
97,240 97,240
You are required to prepare the final accounts for the year ending 31 st March,
2012 taking into account the following adjustments:(a)
Closing Stock on 31st March, 2012 was valued at Rs. 4,340.
(b)
Commission include Rs. 300 being commission received in advance.
(c)
Salaries have been paid for 11 months.
(d)
(e)
Depreciation Building by 5% and Scooter by 15%.
(f)
Write off Rs. 200 as further Bad-debts and maintain bad-debts provision at
5% on debtors.
(ii)
An accountant is always involved in window dressing. State a value:(a)
That is observed by him.
(b)
That is violated by him.
st
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Annual Examination 2014-15

Q.1. Use of common unit of measurement and common format of reporting promotes:
(i)
Comparability
(iii) Relevance
(ii)
Understandability
(iv) Reliability
[1]
Q.2. During the life time of an entity accounting produce financial statements every year in
accordance with which basic accounting concept:
[1]
(i)
Conservation
(iii) Accounting period
(ii)
Matching
(iv) None of the above
Q.3. The Journal entry to record purchase of equipments for Rs. 2,00,000 cash and a
balance of Rs. 8,00,000 due in 30 days include.
[1]
(i)
Debit equipment for Rs. 2,00,000 and credit cash Rs. 2,00,000.
(ii)
Debit equipment for Rs. 10,00,000 and credit cash Rs. 2,00,000 and creditors Rs.
8,00,000.
(iii) Debit equipment Rs. 2,00,000 and credit debtors Rs. 8,00,000.
(iv) Debit equipment Rs. 10,00,000 and credit cash Rs. 10,00,000.
Q.4. Overdraft as per cash Book as on 31st March 2014 is Rs. 22,300. Cheques amounting to
Rs. 2,500 paid in the bank before 31 st March 2014, but cheques worth Rs. 700 had been
credited before that date and bank debited Rs. 500 as bank charges. Balance of pass
book is:
[1]
(i)
Rs. 20,000
(ii)
Rs.23,500
(iii) Rs.21,000
(iv) Rs.24,600
Q.5. Which of the following statements is/are false?
[1]
(i)
Provision for Depreciation A/c is debited when Provision for Depreciation is created.
(ii)
Depreciation is a non cash charge i.e. no cash goes out of business, thus it is credited
to Profit & loss A/c.
(iii) The term depreciation, depletion and amortization convey the same meaning.
i. Only (i) above
iii. Only (iii) above
ii. Only (ii) above
iv. All of these
Q.6. Rs. 150 received from sale of old newspapers is a:
[1]
(i)
Capital Receipt
(iii) Capital gain
(ii)
Revenue Receipt
(iv) None of these
Q.7. What do you mean by Accounting Standards? Which key value is reflected in the
accounting standards?
[3]
Q.8. Purchase of goods worth Rs. 5,000 from ABC Ltd. was recorded by Mr. X in the
purchase book with Rs. 1,500. Mr. X has already resigned from the firm and it was his
last day in the firm so he presented it to the management without rectifying the error.
[3]
(i)
Identify the value missing in the above case.
(ii)
Identify the type of error
(iii) Rectify the error.
Q.9. What do you mean by capital reserve? Give any two items which may form capital
reserve?
[3]
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Q.10. Mr. Robin, while drafting a trial balance made a mistake in debit and credit side of a
transaction. However, he did not correct the mistake fearing that his boss will shout at
him of hearing this. Now, as you have been appointed as a head accountant, he needs
your help to correct it for him. Also identify the value which is not followed by Mr.
Robin.
[4]
Trial Balance
as on 31st March, 2012
Name of the Account Debit
Opening Stock
Purchases and sales
20,000
Returns
2,000
Discount
1,000
Capital
65,000
Drawings
Cash
Bank overdraft
12,000
Debtors
19,000
Creditors
12,000
Carriage and Cartage
3,000
Freight outward
Salaries and wages
6,000
Stationery
Land and Building
35,000
Plant and Machinery
Fixtures and fittings
5,000
Bills Receivable
6,000
Bills Payable
4,000
General Reserve
6,000
1,96,000
Q.11. Explain any two concepts with example:

(i)
Money Measurement Concept
(ii)
Going Concern Concept
Credit
10,000
40,000
1,000
2,000
5,000
7,000
4,000
4,000
15,000
88,000
[4]
(iii)
Materiality Concept

[4]
(i)
Rahul who owed Rs.10,000 was declared. Insolvent, a full and final dividend of 60
paise in a rupee is received from his estate.
(ii)
Salary outstanding for previous month was paid Rs. 5,000.
(iii) Provide 12% P.a. Interest on Capital, Capital is Rs. 2,00,000.
(iv) Sold goods to Vishnu list price Rs. 25,000; trade discount 20% and cash discount 2%.
He paid 60% amount on the same day and availed cash discount on it.
Q.13. Complete the following sentences with appropriate words:[4]
(i)
_______ are the internal users of the business entity.
(ii)
Accounting information is _________ in nature.
(iii) The internet has assisted in decreasing the _________ in issuing financial reports to
users.
(iv) A _______ would most likely use an entities financial report to determine whether or
not the business entity is eligible for a loan.
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Q.14. Fill the missing information in respect of the following four business concerns:Business
Concern
A
B
C
D
Capital as at
31st March
2013
Amount
31,000
?
32,000
1,02,000
Profit/(loss)
during the year
2012-13
Amount
?
(14,000)
6,000
(31,000)
Fresh capital
introduced
during 2012-13
Amount
9,000
8,000
12,000
Drawings
during
2012-13
Amount
4,000
6,000
9,000
12,000
[4]
Capital as at 1st
April, 2012
Amount
31,000
24,000
?
1,32,000
Q.15.Prepare Bank Reconciliation statement from details given below and ascertain the
balance as per Ramans Cash Book as on 31st March, 2013.
[6]
(i)
Pass Book of Raman shows an overdraft of Rs. 47,980 on 31st March, 2013.
(ii)
Cheques of Rs. 3,000 paid into bank was not entered in the Cash Book.
(iii) Bank column of payment side of cash book was over cast by Rs. 250.
(iv) A deposit of Rs. 7,000 on March 31 st, 2013 was not included in the Bank Pass
Book.
(v)
A cheque of Rs. 15,700 drawn on his A/c has been charged by the bank to his
another A/c.
(vi) Interest on overdraft charged by bank was Rs. 500.
Q.16.There was an error in records on 31.3.2012 and the difference in books was
carried to a suspense A/c. On going through the books you find that:
[6]
(i)
Rs. 5,400 received from Mr. A was posted to the debit of his A/c.
(ii)
Rs. 1,000 being Purchase return were posted to the debit of purchase A/c.
(iii) Discount received Rs. 2,000 was posted to the debit of Discount A/c.
(iv) Rs. 2,740 paid for repair to Motor car was debited to Motor car A/c as Rs. 1,740.
(v)
Rs. 4,000 paid to B was debited to As A/c.
Give Journal Entries to rectify the above errors and prepare suspence A/c.
Q.17. Mr. Singh is an employee of ABC Ltd. In order to claim reimbursement of
medical expenses, he produced fake medical bills.
[4+2=6]
(i)
Which value is compromised by Mr. Singh?
(ii)
Also help him to identify the type of the following expenditure:i.Preliminary expenses
ii.Expenses for obtaining licence of the factory.
iii.Cost of white washing of building and maintenance of machinery.
(iii) What do you mean by implied adjustments?
Q.18.ecord the following in Three Column Cash Book of Goel Bros:[6]
2013
Aug 1
Cash in hand
55,000
Aug 1
Bank Overdraft 22,800
Aug 5
Paid into Bank
21,000
Aug 10
Sold goods for Rs. 12,500 and allowed cash discount of 2%.
Aug 15
Settled Arshads Account of Rs. 1,500 and received discount of 20%.
Aug 20
Deposited in bank, excess of Rs. 10,000 in bank.
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Q.19.On 1st April, 2009 Madhavan Bros, Purchased ten machines of Rs. 3,000 each. On
30th June, 2010, one machine out of the ten machines purchased on 1 st April, 2009,
was sold for Rs. 2,400 and on 31st Dec, 2011, one more machinery was sold for Rs.
2,250. A new machine was purchased on 30th September 2012 for Rs. 3,200. The
company has adopted the practice of providing depreciation at 10% p.a. on
original cost of machines. The company closes its books on 31st March every year.
You are required to prepare machine A/c till 31st March, 2013. The management
of this business changes depreciation method after every five years. Identify which
value is not followed by this act of management?
[8]
Q.20.Ajay purchased goods from Vijay for Rs. 2,000 on 1st January, 2013. He accepted
a bill of exchange for the amount at 2 months drawn on him by Vijay on the same
day. On 4th Jan, 2013, Vijay got the bill discounted with his bank at 18% p.a. At
maturity the bill was dishonoured, noting charges amounting to Rs. 15. However,
Vijay agreed to receive a sum of Rs. 575 from Ajay in cash and two bills of
exchanges- one at one months for Rs. 500 and the other at 3 months for Rs. 1,000
in full settlement. The first bill of exchange was duly honoured but the second bill
of exchange was dishonoured. Give journal entries in the books of Vijay.
[8]
Q.21.From the following Trial Balance of Hari Om & Co. for the year ended March 31,
2013. Prepare Trading and Profit and Loss Account for the year ended March 31,
2013 and Balance Sheet as at 31st March, 2013.
[15]
Particulars
Debtors/ creditors
40,000
1,20,000
Closing Stock
4,220
Bills Receivable/ Bills Payable
75,000
78,000
Sales/ Purchases
6,00,000
10,25,000
Returns
30,000
10,000
Interest on Loan
3,000
12,500
Discount
980
720
Loan @ 12%
2,00,000
12% Investments
2,00,000
Land & Building
3,50,000
Loan @ 9%
2,00,000
Furniture & Fittings
5,000
Plant & Machinery
50,000
Computer & Printers
91,000
Accumulated Depreciation on Machinery
18,000
Accumulated Depreciation on Computer & Printers
9,100
Bad Debts
2,000
Provision for Doubtful Debts
1,270
Drawings
48,000
Salaries
1,36,000
Wages & Salaries
1,90,000
Fuel & Power
400
Capital
4,50,000
Cash
8,990
119
DELHI PUBLIC SCHOOL

Assignment Booklet
Bank Overdraft
1,10,000
20,34,590
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
20,34,590
Interest on Investments has accrued for seven months.

Charge depreciation on Plant and Machinery @ 10% p.a. on straight line method
and 25% on Computer and Printer on the reducing balance method.
Purchases include Rs. 4,000 for the purchase of Furniture.
Debtors include a bills receivable dishonoured for Rs. 1,000 out of which 40% is
considered as bad.
Create Provision for Doubtful Debts @ 5%.
Provide managers commission @ 10% on the Net Profit after charging his
commission.
Provide Production Managers Commission @ 4% on the Gross Profit before
charging his commission.
Loan @ 9% was taken by the proprietor on 1 st December, 2012.
120

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DELHI PUBLIC SCHOOL

Part A: Financial AccountingI

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MONTH WISE SYLLABUS BREAKUP

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Q.2. Differentiate between

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Everything a firm owns, it also owes out to somebody. This co-incidence is

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Q.9. State any two disadvantages of Cash Basis of Accounting.

Q.5. Prepare Accounting Equation from the following:(i)

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Reema started business with cash Rs. 1, 50,000

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DELHI PUBLIC SCHOOL

Q.6. Journalise the following transactions:

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DELHI PUBLIC SCHOOL

The following balances appeared in the books of Sh. Ashok chakravarti as

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The values are:

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DELHI PUBLIC SCHOOL

Which of the following is correct?

When a firm maintains a simple cashbook, it need not maintain

When a cheque is returned dishonoured, it is recorded in ;

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Bank column of cash book may show:

Identify the value(s) involved in the above transactions.

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DELHI PUBLIC SCHOOL

Paid for furniture repair Rs. 150.

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Sales Book is used to record:

Purchases Return Book is used to record:

Sales Returns Book is used to record:

Identify the value(s) involved in the above transactions.

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17.1.2006 Mittal & Co, Hisser returned 2 Silk sarees @ Rs.325

Sold goods to Rahul Furniture House, Karnal

Sold on credit to Neelam Machinery Store

Sold goods to Prem Furniture House, Faridabad

Sold goods to Rohan Furniture House, New Delhi

Sold to Sunlight Furntiure Co. for cash

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A definite liability should be created

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The company writes off depreciation at 10%p.a. on fixed installment method

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DELHI PUBLIC SCHOOL

Bank Reconciliation Statement

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DELHI PUBLIC SCHOOL

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Identify the value(s) involved in the above case.

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Q.3. What is accrued income?

Salaries & wages appearing in Trial Balance are shown

Wages & salaries appearing in Trial Balance are shown