Q1 Which of the following is not a current asset?

(a) Accrued Commission (b) Prepaid Expenses

(c) Computer (d) Debtors
OR

Accounting standard are needed

(a) To bring uniformity in the financial statements of different enterprises
(b)To limit the area within which accountant has to function
(c) To bring clarity in accounting terminology
(d) All of the above
Q2 Fill in the missing figures assuming CGST@ 6% and SGST @ 6% 1

April 10 Purchases Alc Dr1,40,000

Dr 16,800
To Barshal,56,800
(Purchase of goods from outside the state)
(a) Input CGST (b) Input SGST
(c) Input IGST (d) Debtors
Q3 Manipulation of accounts to show a better position then what actually is, known as 1

(a) Reliability (b) Relevance

(c) Comparability (d) Window dressing
1
Q4 Which qualitative characteristics of accounting information is reflected when accounting
information is clearly presented?
(a) Reliability (b) Understandability
(c) Comparability (d) Relevance
OR

Which of the following is not a characteristic of accounting?

(a) Recording non-monetary transaction (b) Classifying
(c) Analysis () Summarising
Q5 Which of the following accounting principle is ignored by the cash basis of accounting?
(a) Business entity (b) Matching
(c) Accounting period (d) Consistency
Q6 Consider the following items: 1

1. Prepaid Salary 2. Accrued Interest (Receivable)

3. Loan (Short Term) 4. Bank Overdraft
Current Liability would include
(a) 1, 2, 3, 4 (b) 2, 3, 4
(c) 4, 3, 1 (d) 3, 4
07 Which type of Ledger Accounts is not carried forward to next year?
(a) Personal Accounts (b) Real Accounts
(c) Nominal Accounts (d) All of these
Q8 Which principles highlights that provide for anticipated expenses and losses but do not record
anticipated incomes and profits?
(a) Materiality Principle (b) Matching Principle
(c) Money Measurement Principle (d) Prudence Principle
Q9 Pass book is a copy of:
(a) Bank transactions in the cash book (b) Receipts and Payments of the Business
(c) Customer's account prepared by the bank (d) Allcash and Bank transactions
 O10 A company purchased a plant for Rs.50,000. The useful life of the plant is 10 years and the 1
residual value is Rs.10,000. Find out the rate of depreciation under straight line method.
(a) 8% (b) 7%6
(c) 66 (d) 56
OR

Which of the following statements is not appropriate in relation to Provision?

(a) Provision is a charge against profit
(b) Provision is created for known Liability
(c) Provision is created to strengthen the financial position of the business
(d) Creation of Provision satisfies the principle of conservatism
Q11 The W.D.V. of an asset after 3 years of depreciation on reducing balance mnethod @ 10 % p. a.
is Rs. 58,320. What was its original cost?
(a) 70,000 (b) 80,000
(c) 80,500 (d) 70,500
OR

A machine is purchased for Rs.80.000 and its installation charges are Rs.10,O00. If its scrap
value is Rs.6,000 and effective life is 10 years, its yearly depreciation as per fixed installment
method will be

(a) Rs.8,600 (b) Rs. 9.600

(C) Rs.8,400 (d) Rs.9,000
Q12 Credit Balance as per pass book means 1

(a) Favorable balance (b) Unfavorable balance

(c) Either Favorable or Unfavorable balance (d) None of the above
Q13 According to Going concern concept. a business is viewed as having 1

(a) a limited life (b) a very long life

(c) an indefinite life (d) None of these

Q14 The convention of conservatism takes into account 1

(a) all prospective profits and prospective losses.

(b) all prospective profits and leaves out prospective losses.
(c) all prospective losses but leaves out prospective profits.
(d) None of the above

Q15 Credit means

(a) an increase in asset (b) an increase in liability
(c) a decrease in liability (d) a decrease in proprietors' cquity
Q16 After closing of the accounts, one sided error is rectified through: 1

(a) Drawings A/c (b) Capital Alc

(c) Suspense A/c (d) Profit & Loss Alc
Q17 Differentiate between Reserves and Provision on the basis of: 3

1. Meaning.
2. Necessity
3. Mode of Creation.

Q18 Give one example of the following types of transactions: 3

I) Increase in one liability and decrease in another liability.

ii) Increase in one asset and decrease in another asset.
iii) Decrease in asset and decrease in liability
Q19 Explain any three qualitative characteristics of Accounting Information. 3

Q20 Prepare a Trial Balance from the following balances of Parakram Ltd. as on 31 March, 2021 3

Name of Account Rs. Name of Account Rs.

Bank Overdraft 85,000 Purchases 4,45,000

Sales 8,10,000 Cash in Hand 8,500
Purchases Return 22,500 Creditors 2,15,000

Debtors 4,00,500 Sales Return 15,750

Wages 96,000 Equipment 25,000
Capital 1,58,75o Opening Stock 3,00,500

Q21 Journalize in the books of Malaika 4

April 2019
2 Sold goods costing Rs.10,000 to Anita for cash at a profit of 20% on cost, less 10%
Trade discount.

12 Salary payable to Mr. Raghu Rs.20,000

22 Goods costing 500 given as charity
30 Rs.8,000 due from Ramesh is not recoverable
Q22 From the following particulars, you are required to ascertain the bank balance as would appear 6
in the cash book of Mr. Roshan as on 31# March 2023:
i. The bank pass book showed an overdraft of Rs. 16.500 on 31" March 2023.
ii. Interest of Rs.1,250 on overdraft upto 31 March, 2023 has been debited in the bank pass
book but it has not been entered in the cash book.

iü. Bank charges debited in the bank pass book amounted to Rs.35.
iv. Cheque issued prior to 31% March 2023 amounted to Rs.11,500 but not presented till the
date.

v.Cheque of Rs.2,500 paid into bank before 31" March 2023 but not credited upto that date.
vi. Interest on Investmnent collected by the bankers and credited in the Bank Pass Book
amounted to Rs.1,800.
Q23 Prepare Accounting Equation: 6
i. Started Business with cash RS. 50,000 and goods Rs. 30,000.
ii. Rent paid 10,000
iiü. Rent outstanding Rs.2,000
iv. Goods costing 12,000 sold at 33'/5% profit.
v. Salary paid in advance Rs.7,000.
vi. Bought Furniture on Credit 5,000.
024 On 1" April 2017, Chandani Ltd. purchased a machine for Rs.2,40,000 and spent Rs. 10,000 on 6

its erection. On 1" October, 2017, an additional machinery costing Rs. 1,00,000 was purchased.
On 1" October, 2019, the machine purchased on 1" April, 2017 was sold for Rs.1,43,000 and
on the same date, a new machine was purchased at a cost of Rs.2,00,000.
Show the machinery account for the first three financial years after charging depreciation at
5% p.a.by straight line method.
Q25 Trial Balance of Ashok Enterprises did not agree and the following errors were discovered. 6

Rectify the following errors:

i. A sale of Rs. 172 was posted to sales alc as Rs.217
ii. Furniture Purchased worth Rs.2,000 was recorded through purchase account.
iii. A sum of Rs.200 for household rent has been posted twice to the rent A/C.
iv. A credit sale of goods Rs. 1,200 to Ramesh has been wrongly passed through the Purchases
book.

v. A cheque for Rs.1,000 received from Manmohan was dishonoured and had been posted to
the debit of the Sales Return Account.

vi. Sales Account has been totaled short by Rs.200.

PART-B

Value of Closing Stock is shown at:

a) Cost Price b) Market Price
c) Cost and Market Price whichever is less d) None of these

Q27 Trade expense are shown in: 1

a) Balance Sheet b) Trading Account

) Profit & Loss Account d) None of these
Or

Salaries and WVages is shown in

a) Trading Account b) Profit & Loss Account
c) Balance Sheet d) None of these
Q28 Rearrange the following assets in order of Liquidity 1

1) Bills Receivable ii) Debtor

ii) Stock iv) Prepaid Expenses
a) i, il, iii, iv b) ii, iv, i, ii
c) ii, iii, iv, i d) iv, i, ii, ii
Q29 If 'Prepaid wages' given in Trial Balance, it is shown in: 1

a) Debit of Trading Account b) Debit of Trading Account & as Assets

c) Debit of P&L Account d) Assets
930 Calculate the amount of Operating profit on the basis of the following balances extracted from 3

the books of M.s Rohit and Sons for the year ended March 31,2017
Particulars Rs. Particulars Rs.
Opening Stock 50,000 Net Sales 11,00,000
Net Purchases 6,00,000 Loss due to fire 20,000
Direct Expenses 60,000 Closing Stock 70,000
Administration Expenses 45,000
Selling and Distribution Expenses 65,000

Total Purchases during the year are Rs.8,00,000

Return outward Rs.20,000
Direct Expenses Rs.60,000
2/3 of the goods are sold for Rs.6, 10,000

Q32 From the following information, prepare Trading Account for the year ended 31" March, 2021 4

Opening Stock -Rs.1,00,000: Wages- Rs.2,000; Purchases- Rs.2,80,000; Freight Inwards- Rs.
3,600; Closing Stock- Rs.80,000: Carriage inwards- Rs. 1,000; Gross Profit on Sales is 20%.
 Show the effect for given adjustment on Profit and Loss Account and Balance Sheet. The
following balances appear in the Trial Balance:
Sundry Debtors 32,000
Bad Debts 2,000
Provision for Doubtful Debt 3,500

Additional Information:

1. Write off further bad debts Rs.1,000

2. Create a provision for doubtful debts @ 5% on debtors.

Q33 4
Amit started business on 1" April 2019 with a Capital of Rs. 8,50,000. On 31 March 2020, his
Assets were Rs. 11,0,000 and Liabilities were Rs. 1,80,000. He withdrew during the year for
personal use Rs. 3,000 per month up to 31" July 2018 and there-after Rs. 6,000 per month up
to 31" March 2020. During the year he sold his personal investments of Rs. 60,000 at a loss of
10% and invested this amount in the business.
Q34 Following balances were extracted from the books of Vijay on 31" March, 2021 6

Particulars Amount Particulars Amount

Capital 2,45,000 Loan 78,800

Drawings 20,000 Sales 6,53,600

General Expense 47,400 Purchases 4,70,000

Building 1,10,000 Motor Car 20,000

Machinery 93,400 Provision of Doubtful Debts 9,000

Stock on 1" April, 2020 1,62,000 Commission (Cr) 13,200

Insurance 13,150 Car expenses 18,000
Wages 72,000 Bills payable 38,500
Debtors 62,800 Cash 800
Creditors 25,000 Bank overdraft 33,000
Bad Debts 5,500 Charity 1,050
Prepare Trading and Profit and Loss Account for the year ended 31" March,2021 and Balance
Sheet as at that date after giving effect to the following adjustments:
i)Stock as on 31 March, 2021 was valued at Rs.2,30,000
i) Write off further Rs.1,800 as bad debts and maintain the provision for Doubtful Debts at
5%.

ii) Depreciate Machinery at 10%.

iv) Provide Rs.7,000 as outstanding interest on loan.