Dr, SRK VIDHYALAYA SENIOR SECONDARY SCHOOL CBSE

THAMARAIPAKKAM Annual EXAMINATION 2023-24

CLASS: XI
SUBJECT: ACCOUNTANCY
TIME: 03 HOURS M.M.: 80
General Instructions:
1. This question paper contains 34 questions. All questions are compulsory.
2. This questions paper is divided into two parts ,Part A and B
3. Questions 1 to 15 and 25 to 29 carries 1 marks each.
4. Questions 16 to 18 and 30 to 32 carries 3 marks each.
5. Questions 19,20 and 33 carries 4 marks each
6. Questions 21 to 24 and 34 carries 6 marks each
7. ** There is no overall choice. However, an internal choice has been provided in 7 questions of
one mark,
2 questions of three marks, 1 questions of four marks and 2 questions of six marks.

Q. N. Questions Marks
PART A: Financial Accounting - I
Which of the following limitations of accounting states that accounts may be
(1) manipulated to conceal vital information?
(a) Accounting leads to window dressing 1
mark
(b) Accounting is not fully exact
(c) Accounting ignores price level changes
(d) Accounting ignores qualitative concepts

Which term is used for an accrual accounting technique used to allocate the
(2) cost of extracting natural resources such as timber, minerals and oil from the 1
earth mark
(a) Amortization (b) Obsolescence
(c) Depletion (d) None of these
Using “lower of cost and net realisable value’ for the purpose of inventory
(3) valuation is the implementation of which of the following concepts 1
(a) Cost (b) Money measurement mark
(c) Objectivity (d) Prudence
Under which method of depreciation, the value of fixed asset could become to 1
(4) zero at the expiry of the working life mark
(a) Straight line method (b) written down value method
(c ) both a and b (d) none of these
Or
Book value of an asset after 2 years is Rs 80,000 .Rate of depreciation is 10%
p.a under straight line method the original cost of an assets would be
(a) Rs 8,000 (b) Rs 1,00,000
(c ) Rs 8,00,000 (d) Rs 80,000

From the following, which accounting equation is not correct? 1

(5) (a) Assets – Liabilities = Capital (b) Asset - Capital = Liabilities mark
(c) Liabilities + Capital = Assets (d) None of these
Or
From the following calculate liabilities
Capital Rs 5,00,000 , cash in hand Rs 40,000 , building Rs 8,00,000, bank
overdraft
Rs 50,000
(a) Rs 1,39,0000 (b) Rs 4,20,000
( c) Rs 3,90,000 (d) none of these

Goods purchased from Raghav for ₹ 4,500 but goods recorded as ₹ 5,400 in the 1
(6) Purchases Book. The type of error related to: mark
(a) Error of Omission (b) Error of Commission (c)
Error of Partial Omission (d) Error of Principle
or
Bank Reconciliation Statement is prepared by:
(a) Debtors of the firm (b) Creditors of the firm
(c) Account holder of bank (d) Bank
The revenue recognition principle dictates that all types of income should
(7) be recorded or recognized when 1

(a) Cash is received mark

(b) At the end of accounting period

(c) When they are earned
(d) When interest is paid
(8) The depreciation value after two years of an asset costing Rs 10,000
depreciated at 10% on fixed instalment is Rs --------- and on reducing
 balance method is --------------
(a) Rs 8100 and Rs 8000 1
(b) Rs 9000 and Rs 8000 mark

(c) Rs 8000 and Rs 8100

(d) Rs 8000 and Rs 9000
Or
Which is not advantage of written down value method
(a) Income tax act accept this method for tax purpose
(b) Assets can be depreciated up to the net scrap value or zero.
(c) Large portion of depreciation charge in earlier years.
(d) None of these
Moon trader lucknow, provide the Following information for the year ended
(9) 31st March, 2023:
Cost of Goods sold ₹ 500,000; Office expenses paid ₹ 1,10,000 (salary of ₹
5,000 is outstanding and ₹ 25,000 Rent paid-in advance).
1
Goods sold for ₹ 10,00,000 (including ₹ 1,50,000 as debtors and bills
mark
receivable).
As per the Accrual base of accounting, the profits/loss of the Moon trader
lucknow for the year ending 31st March, 2023 is ₹ _________.
(a) 3,90,000 (b) 4,10,000 (c) 4,90,000 (d)3,55,000
(10) The accounting concept which suggested that each transaction should be
recorded in the books of account by supporting vouchers of transactions 1
___________. mark
(a) Objectivity (b) Dual aspect (c) Materiality (d) Consistency
(11) Given below are two statements : one labelled as assertion A and other labelled 1
as Reason R mark
Assertion (A) : provision is the amount of any known liability to be determined
with substantial accuracy.
Reason (R): provision and reserves used interchangeably
In the light of the above statement choose the most appropriate answer from
the options given below:
(A) Both (A) and (R) are true and (R) is the correct explanation of (A)
(B) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(C) (A) is true ,but (R) is false

(D) (A) is false ,but (R) is true

 12 television sets of Rs 10000 each are purchased on 1.4,2022 , then on
(12) 1.10.2022 1
14 computer set of Rs 11000 each are purchased. On 01.06.2023 6 mark
typewriter purchased for Rs 2000 each and order given for another 6
typewriter then according to concept of accounting in books which closed
on 31.03.2024 must record
(a) Rs 12000 (b) Rs 24000
(c ) 286000 (d) RS 274000
GST is imposed on the production of all services and goods except…. 1
(13) (a) Liquor intended for human ingestion mark
(b) Tobacco
(c) Health care service
(d) All of the above
(14) Which is not qualitative characteristics of accounting information 1
(a) Relevance (b) Understandability mark
(c ) Comparability (d) Materiality
(15) When two or more errors are committed in such a way that the net effect of 1
these errors on the debits and credits of accounts are nil, such errors are called mark
.....
(a) Compensating errors (b) errors of principle
(c ) Errors of omission (d) Errors of commission
Or
If credit purchases from Raghu Rs 20000 were recorded through sales book
Rectifying entry will be
(a) Sales a/c Dr 20000
Purchase a/c Dr 20000
To raghu’s a\c 40000
(b) Sales a/c Dr 20000
Purchase a/c Dr 20000
To suspense a\c 40000
(c) Raghu’s a\c Dr 40000
To Sales a/c 20000
To Purchase a/c 20000

(d) None of these

 (16) Differentiate between Provision and Reserve on the basis of following: 3
marks
(a) Basic Nature
(b) Purpose
(c) Use for payment of dividend
Or
Differentiate between capital and revenue reserve on the basis of following
(a) definition (b) tenure (c) dividend payout

(17) What is trial balance? Write two objectives of trial balance? 3

Or marks
Prepare trial balance from following information
Rawat’s capital Rs 60,000, Rohan (creditor) Rs 20,000, Rahul (debtors) Rs
82,000,sales Rs 70,000, goodwill Rs 17,000, bills receivable Rs 5,000 , cash in
hand Rs 3,000, stock (opening balance) Rs 43,000

(18) From the following business transactions of a business firm for the month of July 3
marks
2020, prepare Accounting Equation:
July 01: Balance of Cash ₹ 1,20,000; Goods ₹45,000; Debtors ₹24,000;
Capital ₹ 1,79,000 and creditors ₹10,000.
July 05: Goods sold (costing ₹15,000) on credit to Dinesh at 20% profits on cost.
July 12: Outstanding salary ₹9,000.
July 17: Commission received in advance ₹12,000.
July 26: Goods purchased for cash ₹25,000.
July 31: Goods given as charity ₹1,000.

(19) Mr.Satyanand Sharma Account has debit balance of ₹ 19,000. In the month of 4
marks
March, 2020 the following transactions has been made with him, as under:

March 05: Goods sold (costing ₹ 9,000) to him at 20% profit on credit.
March 11: Cheque received from him for ₹ 9,500 and discount allowed to
him ₹ 500.
March 13: Goods returns from him for ₹ 3,000.
March 22: Cash received from him ₹ 12,000 on his account.
 March 25: Goods sold to him for cash ₹ 7,000.
March 29: Received cheque from him dated March 11 was dishonoured.
March 31: Mr.Satyanand Sharma declared insolvent and from his estate only 50
paise in a rupee was recovered.
Prepare Mr.Satyananad Sharma’s Account from the above transactions.

(20) Write the further classification of Assets on basis of non current assets and 4
marks
currents assets
Or
Write the further classification of liabilities on basis of non current liabilities and
current liabilities

(21) From the following particulars of Mr. Vinod, prepare bank reconciliation 6
marks
statement as on March 31, 2005.
1. Bank balance as per cash book ₹ 50,000.
2. Cheques issued but not presented for payment ₹ 6,000.
3. The bank had directly collected dividend of ₹ 8,000 and credited to bank
account but was not entered in the cash book.
4. Bank charges of ₹ 400 were not entered in the cash book.
5. A cheque for ₹ 8,000 was deposited but not collected by the bank.
6. Discounted bill from the bank was dishonoured but not taken into cash
book of ₹ 12,000.
(22) Journalise the following transactions in the books of Himanshu: 6
Jan. 02: Goods use for household’s₹ 2,000. marks
Jan. 08: Charge depreciation @ 10% p.a. for two months on Machinery costing ₹
30,000.
Jan. 12: Provide interest on capital on ₹ 1,50,000 at 6% p.a. for 9 months.
Jan. 15: Goods destroyed by fire ₹ 4,500.
Jan. 19: Goods sold (list price ₹ 20,000) at 10% trade discount and at 5% cash
discount, to Mukesh. Half of payment received in cash and the balance by a
cheque.
Jan. 29: Invested in the shares of Government sector ₹ 50,000.
OR
Record the following transactions in double column cash book of Mr. Rakesh
Verma and balance it.
Sept. 01: Balance of cash ₹ 22,000 and Bank overdraft ₹ 2,500.
Sept. 06: Received cheque on October 28 th, for ₹ 4,000 from Gaurav sent into the
bank.
Sept. 10: Bank has collected and deposited: Interest of ₹ 6,000; Dividend of ₹
8,000.
Sept. 16: Bank has paid several payments on its due date: Insurance premium of
₹ 3,000 and School fees of the child of Rakesh Verma ₹ 5,000.
Sept. 24: Cash deposited into the bank ₹ 12,000.
Sept. 29: Sold goods (costing ₹ 25,000) at 20% profit for cash.

(23) B & Company purchased Machinery on 1st April, 2019, for Rs 54,000 and spent 6
Rs 6,000 on its installation. On 1st December, 2020, it purchased another marks
machine for Rs 30,000.On 30th June 2021, the first machine purchased on 1st
April, 2019, is sold for Rs 36,000 and on the same date it purchased new
machinery for Rs 80,000. Depreciation was provided on machinery @ 10% p.a.
on Original Cost Method annually on 31st March. Give the machinery account for
three years.

Or
On April 1 , 2015 following balances appeared in the books of M/s Kamisha
traders : furniture account Rs 50,000 , provision for depreciation on furniture
Rs 22,000.on October 1,2015 a part of furniture purchased for Rs 20,000 on
01 April ,2011 was sold for Rs 5000.on the same date a new furniture costing
Rs 25,000 was purchased .the depreciation was provided @10% p.a on
original cost of the asset and no depreciation was charged on the asset in the
year of sale .prepare furniture account and provision for
 depreciation account and disposal of furniture account for the year ending
march 31,2016.

24 Trial balance of M/s Rathi Brothers did not agree and the accountant put the 6
marks
difference to suspense account. He discovered the following errors:
(a) Sales return book overcast by ₹ 800.
(b) Purchases return to Sahu ₹ 2,000 were not posted.
(c) Goods purchased on credit from Narula ₹ 4,000 though taken into stock,
but no entry was passed in the books.
(d) Installation charges on new machinery purchased ₹ 500 were debited to
sundry expenses account as ₹ 50.
(e) Rent paid for residential accommodation of Mohan (the proprietor) ₹
1,400 was debited to Rent account as ₹ 1,000.
Rectify the errors and prepare suspense account to ascertain the difference in
trial balance.

PART B: Financial Accounting – II

(25) Net Sales ₹ 5,00,000; Cost of goods sold ₹ 3,00,000 and Operating Expenses ₹
1,20,000. 1
Operating profit of the firm will be ₹ ________. mark

(a) Rs 320000 (b) Rs 80000

(c ) Rs 380000 (d) none of these
(26) If opening capital is Rs 50000 as of april 1, 2021 and additional capital
introduced Rs 10000 on January 2022.interest charge on capital 10% p.a.the 1
amount of interest on capital shown in the profit and loss account as on march mark
31, 2022 will be .....
(a) Rs 5250 (b) Rs 6000
( c) Rs 4000 (d) Rs 3000
(27) Net profit of a firm before charging manager’s commission is Rs 21000.if the 1
manager is entitled to 5% commission after charging such commission how mark
much manger will get as commission ?
(a) Rs 1000 (b) Rs1050
(c ) Rs 990 (d) none of these
(28) Calculate sales if rate of gross profit is 20% on cost of goods sold and cost of 1
goods sold is Rs 120000 mark
(a) Rs 144000 (b) Rs 24000
 (c ) Rs 150000 (d) none of these
Or
Calculate gross profit if rate of gross profit is 20% on sales and cost of goods
sold is Rs 240000
(a) Rs 60000 (b) Rs 48000
(b) Rs 108000 (d) none of these
(29) Goods costing ₹ 8,000 destroyed by fire and insurance company admitted a 1
claim for ₹ 5,000 only. Give Journal entry to adjust in final accounts. mark
(a) Loss by Fire A/c Dr. 3,000
Insurance Claim Receivable A/c Dr. 5,000
To sales A/c
8,000
(b ) Loss by Fire A/c Dr. 3,000
Insurance Claim Receivable A/c Dr. 5,000
To Purchase A/c 8,000
(c ) Loss by Fire A/c Dr. 3,000
Insurance Claim Receivable A/c Dr. 5,000
To trading A/c
8,000
(d) P & L a/c Dr 80,000
To Loss by Fire A/c 3,000
To Insurance Claim Receivable A/c 5,000
Or
The trail balance of a firm shows debtors Rs 30,000, bad debts Rs 200 and
provision for doubtful debts at Rs 1400. A 10% provision for doubtful debts is to
be created on debtors the profit and loss account for the current year is to be
debited by
(a) Rs 3200 (b) Rs 3000
( c) Rs 4600 (d) Rs 1800
(30) Prepare balance sheet from the following information 3mark
Net loss Rs 4,338 , capital Rs 80,000, cash in hand Rs 20,100 , debtor Rs 19,012,
closing stock Rs 20,000, furniture Rs 6,300, building Rs 42,750 , outstanding
salaries Rs 1,000
Bills payable Rs 3000.
(31) State with reasons whether the following are capital , revenue expenditure 3
.deferred revenue expenditure mark
(1) A new machine is purchased for Rs 60,000, Rs 800 were spent on its
carriage and Rs 1500 were paid as wages for its installation.
(2) Rs 1500 were spent on the repair of new machinery
(3) Removal of stock from the old site to new site cost Rs 4,20,000.the new
site is more favourably located
(32) An exact from a Trail Balance on March 31st, 2019 is given below: 3
Particulars Amount (₹) marks
Sundry Debtors 32,000
Bad Debts 2,000
Provision for Bad Debts 3,500
Additional Information:
Write-off further Bad Debts ₹ 1,000 and create a provision for Doubtful Debts @
5% on debtors.
Pass necessary Journal entries for the above adjustments.

(33) Calculate the operating profit and net profit 4

Gross profit Rs 4,60,000, net sales Rs 1,10,000, administrative expenses Rs marks
45,000 , selling and distribution charges Rs 65,000 . loss due to fire Rs 20,000,
commission received Rs 3,000 and closing stock Rs 20,000.

(34) The following balances were extracted from the books of Mr. Surya Pratap on 31st 6
December, 2019: marks
Ledger Accounts Dr. Balance Cr. Balance
Capital 24,500
Drawings 2,000
General Expenses 2,500
Building 11,000
Machinery 9,340
Stock (01.01.2019) 16,200
Power 2,240
Taxes & Insurance 1,315
Wages 7,200
Sundry Debtors 6,280
Sundry Creditors 2,500
Charity 105
Bad Debts 550
11,180
Bank Overdraft
65,360
Sales
Purchases 47,000
Scooter 2,000
900
Bad Debts Provision
1,320
Commission
Trade Expenses 1,780
3,850
Bills Payable
Cash 100
Total 1,09,610 1,09,610
Prepare trading account and P & L account for the year ended 31st December,
2019 after taking into account the following:
1. Stock on 31st December, 2019 was valued at ₹ 23,500.
2. Write-off further Bad Debts ₹ 160 and maintain the provision for Bad
 Debts at 5% on Sundry Debtors.
3. Depreciate Machinery by 10% and Scooter by ₹ 240.
4. Provide ₹ 750 for outstanding interest on bank overdraft.
5. Prepaid Insurance is to the extent of ₹ 50; Commission receivable
amounting to ₹ 50.
6. Provide Manager’s Commission at 10% on net profit after charging such
commission.
 SESSION ENDING EXAMINATION 2022-23
CLASS: XI
SUBJECT: ACCOUNTANCY
TIME: 03 HOURS M.M.: 80
MARKING SCHEME

Q. N. Questions Mark
PART A: Financial Accounting - I
(1) (a) Accounting leads to window dressing 1 ma
(2) (c) Depletion 1 ma
(3) (d) Prudence 1 ma
(4) (a)Original Cost Method/Straight line method 1
Or mar
(b) Rs 100000
(5) (C) or (d) None of these 1 ma
(6) (b) Error of Commission or (c) account holder 1 ma
(7) (c ) When they are earned 1 ma

(8) (c) Rs 8000 and Rs 8100 1 ma

or (b)
(9) (b) 4,10,000 1 ma
(10) (a) Objectivity 1 ma
(11) (c) (A) is true ,but (R) is false 1 ma

(12) (a) Rs 12000 1 ma

(13) (a) Liquor intended for human ingestion 1 ma
(14) (d) Materiality 1 ma
(15) (a) or (a) 1 ma
(16) Basis of Difference Provision Reserve
Basic Nature Charge against profit Appropriation of profit
Purpose Created for known liability To strengthening financial 1x3
or expense of current year, position of firm. However, mar
amount is uncertain. some are mandatory
under Law.
Dividend payment Cannot be used for Can be used for dividend
dividend distribution distribution
Basis of Difference Capital reserve Revenue reserve Or
definition A capital reserve is created Revenue reserve is created 1X
to finance long term to meet unforeseen events mar
projects for a in a business organisation
business
Tenure Long term Can be for short term
Dividend payment Cannot be used for Can be used for dividend
dividend distribution distribution
 (17 A trial balance is a statement showing the balances or total of debits and credits, of all
the accounts in the ledger account with a view to verify the arithmetical accurac y of
)
posting into the ledger accounts
(a) To ascertain the arithmetical accuracy of the ledger accounts (b)
To help in locating errors
(c) To help in the preparation of the financial statements (any two) Or

Total of trail balance Rs 150000

(18 Accounting Equation:
) Transactions Assets Capital + Liabilities
1
July 01: Balance 1,89,000 1,79,000 + 10,000
1
July 05: Goods sold on credit (15,000) 3,000
18,000
½
July 12: Outstanding Salaries (9,000) 9,000
July 17: Commission received in
½
Advance 12,000 12,000
½
July 26: Goods purchase for cash 25,000
(25,000)
½
July 31: Goods given as charity (1,000) (1,000)
2,03,000 1,72,000 + 31,000
(19 Satyanand Sharma’s Account 4
) Date Particulars Amt. (₹) Date Particulars Amt. (₹) marks
2020 2020
March 01 To Balance b/d 19,000 March 11 By Bank A/c 9,500
March 05 To Sales A/c 10,800 By Discount A/c 500
March 29 To Bank A/c 9,500 March 13 By Sales Return A/c 3,000
To Discount A/c 500 March 22 By Cash A/c 12,000
March 31 By Cash A/c 13,400
By Bad Debts A/c 13,400
39,800 39,800
March 25: Goods sold to him for cash ₹ 7,000.Not to be entered
(20 Non current assets: fixed assets, non current investment, deferred tax assets
) (net) , long term loan and advances , other non current assets (any four) 4
Current investment, inventories , trade receivables , cash and cash equivalent , short
term loan and advance ,other current assets (any four) Or marks
Non current liabilities : long term borrowing , deferred tax liabilities (net ) ,other long
term liabilities , long term provisions
Current liabilities :short term borrowings , trade payables.other current liabilities ,
short term provisions

(21 Bank Reconciliation Statement (as on 31st March 2005)

) Particulars Amt.(₹)
 Balance as per Cash Book: 50,000
Add: Cheque issued but not yet presented 6,000
Bank has collected dividend & deposited into bank 8,000 14,000 1x6=6
marks
Less: Bank charges debited by bank
Cheque deposited but not yet credited into bank 400
Discounted bill dishonoured, not entered in cash book. 8,000
12,000 20,400

Balance as per Pass Book 43,600

(22 Journal Entries (in the book of Himanshu)

) Date Particulars L.F. Dr. (₹) Cr. (₹)
Jan. Drawings A/c Dr. 2,000 1x6
02 To Purchase A/c 2,000
(Being goods taken for personal use) 6
Jan. Depreciation A/c Dr. 500 mar
08 To Machinery A/c 500
(Being depreciation charged @ 10% p.a. for 2
months)
Jan. Interest on Capital A/c Dr. 6,750
12 To Capital A/c 6,750
(Being interest provided @ 6% p.a. for 9 months) 4,500
Loss by Fire A/c Dr. 4,500
Jan. To Purchase A/c
15 (Being goods destroyed by fire) 8,550
Cash A/c Dr. 8,550
Jan. Bank A/c Dr. 900
19 18,000
Discount A/c Dr.
To Sales A/c
50,000
(Being goods sold for cash at 5% cash discount) 50,000
Investment A/c Dr.
To Cash A/c
Jan.
(Being invested in shares of government sector)
29
OR
Double Column Cash Book(in the books of Rakesh Verma)
Date Particular L.F Cash Bank Date Particular L.F Cash Bank
s . s .
Sept Balance 22,00 Sept Balance 2,500
. 01 b/d 0 4,000 . 01 b/d 3,000
Sept Gaurav 6,000 Sept Insurance 5,000
. 06 Interest 8,000 . 16 Drawings C 12,00
Sept Dividend C 12,00 Bank 0
. 10 Cash 0 Sept 19,50
Sales 30,00 . 24 Balance 40,00 0
Sept 0 c/d 0
. 24 Sept
Sept . 30
. 29
 52,00 30,00 52,00 30,00
0 0 0 0
(23 Machinery Account 1mark
) Date Particulars Amt. ₹ Date Particulars Amt. ₹ s
2019 2020 Depreciation 6000
April 01 Bank A/c 60,000 March 31 Balance c/d 54000
60,000 60,000
01.04.20 Balance b/d 54000 31.03.21 Depreciation 7000
01.12.20 Bank a/c 30000 (6000+1000) 2mark
Balance c/d 77000
s
84000 15,00,000
01.04.21 Balance b/d 77000 30.06.21 Depreciation. 1500
30.06.21 Bank 80000 Bank A/c 36000
Profit & Loss A/c 10500
31.03.22 Depreciation

(3000+6000) 9000 3mark

Balance c/d 100000 s

157000 157000

Or
Balance of furniture account Rs 55000, balance of provision for
18250 depreciation and loss on sale Rs 7000 ( 2 marks each aacount) Rs
24 OR 5+1
Rectified Journal entries
Date Particulars L.F. Dr. (₹) Cr. (₹)
a Sales A/c Dr. 800
To 800
Suspense A/c
(Being error rectified) 2,000
b Sahu Dr. 2,000
To
Suspense A/c 4,000
c (Being error rectified) 4,000
Purchase A/c Dr.
To Narula 500
d Being error rectified) 50
Machinery A/c Dr. 450
To Sundry
Expense A/c 1,400
e 1,000
To
Suspense A/c 400
(Being error rectified)
Drawings A/c Dr.
To Rent A/c
To
Suspense A/c
(Being error rectified)
Suspense Account
 Particulars Amt. ₹ Particulars Amt. ₹
Difference of 3,650 By Sales A/c 800
trail balance By Sahu 2,000
(excess of By Machinery 450
debit side) A/c 400
By Drawings A/c
3,650 3,650
PART B: Financial Accounting – II
(25 (B) ₹80,000. 1
)
(26 (a) Rs 5250 1
)
(27 (a) Rs 1000 1
)
(28 (a) Rs 144000 1
) Or
(a) Rs 60000
(29 (b) Loss by Fire A/c Dr. 3,000 1m
) Insurance Claim Receivable A/c Dr. 5,000
To Purchase A/c 8,000
Or
(d) Rs 1800
(30 Balance Sheet (as at 31st 3
) March, 2019)
Liabilities Amt. in ₹ Assets Amt. in ₹
Bills Payable 3,000 Cash in hand 20,100
Creditors 28,500 Debtors 19,012
Outstanding Salaries 1,000 Closing Stock 20,000
Capital 80,000 Furniture 6,300
Less: Net Loss4,338 75,662 Building 42,750

1,08,162 1,08,162
(31 (a) capital expenditure (b) revenue expenditure (c) deferred revenue expenditure 3 ma
)
(32 Re
) ctified Journal entries
Date Particulars L.F. Dr. (₹) Cr. (₹)
 Bad Debts A/c Dr. 1,000
To Debtors A/c 1,000 ½
(Being further bad debts on debtors)
Provision for doubtful debts A/c Dr. 3,500
To Profit & Loss A/c 3,500 1
(Being old provision for doubtful debts reversed)
Profit & Loss A/c Dr.
To Bad Debts A/c (2,000 + 1,000) 4,550 1½
To Provision for doubtful debts A/c 3,000
(Being new provision for doubtful debts provided) 1,550

(33 Operating profit = Rs 353000 Net 2 +2

) profit = Rs 333000

(34 Gross Profit ₹ 16,220 2

) Net Profit ₹ 9,000 3
Provision for Manager’s Commission ₹ 900 1