Padasalai.Net s Quarterly Exam Model Question Paper Time Allowed : 2:30 hours Maximum Marks : 90 XII-Accountancy I. CHOOSE THE CRECT ANSWER 20 X 1 =20 1. Pick the odd one out. a) Outstanding salary b) Accrued income c) Prepaid expenses d) Interest on capital 2. Expenses which have incurred turt not yet paid a) outstanding expenses b) prepaid expenses c) Accrued income d) Income received in advance 3. Final accounts are prepared on the basis of the a) Balance sheet b) Trial Balance c) Journal d) Ledger 4. Interest on drawings is on income for the business and will a capital of the owner. a) Profit b) Income c) Loss d) Expenses. 5. Match list I with List II and select the correct answer using the codes given below. List I List II a) Opening Capital - Conversion Method b) Credit purchase - Debtors Account c) Credit sales - Creditors Account d) Trading account - Gross profit.
Codes:- (i) (ii) (iii) (iv) a) 1 2 3 4 b) 3 4 1 2 c) 1 3 2 4 d) 2 3 1 4 6. State the Order in which accounting system is followed. (i) Final A/c (ii) Ledger (iii) Trial Balance (iv) Journal. a) (i) (ii) (iii) (iv) b) (iv) (iii) (ii) (i) c) (iv) (ii) (iii) (i) d) (iii) (iv) (i) (ii) 7. If adjusted closing capital is less than opening capital it denotes. a) Profit b) Loss c) Income d) Expenses 8. A firm opening capital 10,00,000 and the closing capital 15,00,000 the profit of the business is. a) 5,00,000 b) 10,00,000 c) 15,00,000 d) 7,50,000 9. Under method depreciation funds are made available for the replacement of assets at the end of useful life. 10. The firm as asset worth 60,000 and capital.45,000 then its liability is. a).1,05,000 b).25,000 c).15,000 d).35,000
11. Cost of an asset.50,000 scrap.5,000 estimated life 10 years. find the amount of depreciation. a) 9% b).4,500 c).45,000 d).70,000. 12. Financial position of a firm will be known by preparing. a) Trading account b) capital account c) Balance sheet d) Profit and loss. 13. Income tax is deducted from a) Capital b) Drawing c) Expenses d) income 14. The provision for bad and doubtful debts in trial balance is.1,000 as per adjustment it is created at.1,750. then the amount shown in the debit side of profit and loss account under this item is a).1,000 b).1,750 c).750 d).250. 15. can be ascertained by deducting cost of goods sold from sales. a) Net profit b) Gross Profit c) Operating profit d) Operating ratio. 16. Fixed assets.4,50,000 sales.22,50,000. Then the fixed asset Turnover ratio is a) 5 times b) 10 times c) 2 times d) 4 times
17. an account of the probable future income and expenditure. a) cash b) Plan c) Budget d) Future. 18. The term, cash in cash budget stands for and a) Cash balance or bank balance b) Bank balance and future balance. c) cash balance and physical balance d) Money and bank balance. 19. The opening balance of cash in April is.1,250. Total receipt for the month are.4,300 and total payments amounted to.3,750. Opening balance of cash in may will be a).1800 b).700 c).6800 d).9800 20. 100% Less operating profit ratio is equation to ratio. a) Gross profit b) Net Profit c) Operating Profit d) Operating Profit ratio. SECTION II Answer any seven questions in which Question No.30 is Compulsory. 7X2=14 21. A Person who receives a benefit without giving money or money s worth immediately, bet liable to pay in future or in due course of time called as debtors who is good debtors? 22. Give adjusting entry and transfer entry for Depreciation at 10% per annum on Machinery of 25,000 23. calculate the missing information: Profit made during the year 2,500 Capital at the end 6,000 Drawings 2,000 Capital at the beginning 1,200 24. Calculate the missing information: Drawings 50,000 Additional Capital 10,000 Opening capital 1,00,000 Profit made during the year 25,000 Closing Capital?
25.rakshitha Ltd purchased Plant and machinery for 32,000.this is expected to last for 10 years. Estimated scarp value is 3,200. Find out the rate of depreciation under straight line method. 26.A company purchased machinery for 1,00,000 its installation costs amounted to 10,000.Its estimated life 5 years and the scarp value is 5,000.calculate the amount and rate of depreciation under straight line method. 27.From the following information calculate Debt equity Ratio: Debentures 2,00,000 Loan from Banks 1,00,000 Equity share capital 1,25,000 Reserves 25,000 28.From the following information calculate Capital turn over ratio: Sales 3,75,000 Sales Returns 25,000 Equity share capital 1,00,000 Long term loan 50,000 Reserves 25,000 29.Compute Debtors turn over ratio Total sales 7,50,000 Sales returns 50,000 Opening debtors 1,17,000 Closing debtors 83,000 30.Calculate capital Turn over ratio: Sales 10,20,000 Sales returns 20,000 Equity share capital 1,00,000 Preference Share capital 50,000 Loans 25,000 Reserves 25,000 SECTION III Answer any seven Questions in which Question No.31 is Compulsory. 7X3=21 31 The following balances have been extracted from the Trial balance of Mr. Ashok as on31.3.2002 Trail balance as on 31.3.2002 particulars Debtors Bad debts Debit 2,01,200 1,200 Credit - - Adjustments: 1. Write off additional bad debt of 5,000 2. Create provision of 10% for bad and doubtful debts on debtors 3. Create provision of 2% for discount on debtors Give necessary adjustment entries 32. The Trial Balance show on 31.3.2007 as follows Sundry debtors 52,000 Adjustment: 1. Write off bad debt of 2,000 2. Create provision of 5% for bad and doubtful debts on debtors 3. Create provision of 2% for discount on debtors Give necessary adjustment entries
33. Calculate the missing information: Profit made during the year 5,000 Capital at the end 12,000 Additional Capital 4,000 Drawings 2,400 Capital in the beginning? 34. Mrs.Sankari started business with 1,50,000 as Capital as on 1.4.2006.During the year she has withdrawn at the rate of 3,000 per month. She introduced 40,000 as additional Capital Bank Balance 15,000 Stock 85,000 Sundry debtors 75,000 Machinery 45,000 Cash in hand 20,000 Sundry creditors 30,000 Prepaid expenses 4,000 She keeps her books under Single entry system Find out her Profit Or Loss for the year 2006-07 35.Arul & co purchased a machinery for 5,00,000 on 1.4.2005.after having used it for three years, it was sold for 3,50,000 Depreciation is to provided at 10% p.a under Diminishing Balance method. Accounts are closed on 31st March of every year Prepare Machinery account 36.M& co bought a plant for 4,70,000 on 1.7.2001.They spend 30,000 on repairs and installed the plant. Depreciation is Written off at 10%p.a on the straight line method. On 30.9.2003 this was sold for 3,50,000. Accounts are closed on 31st March of every year Prepare Plant account 37.From the following calculate Gross profit, profit and Operating profit ratio Sales 1,00,000 Dividend Received 400Gross profit 30,000 Administration Expenses 1,000 Selling Expenses 2,000 Loss on sale investments 800 Net profit 26,600 38.From the following information calculate Current ratio, Liquid ratio and absolute liquid ratio Cash 2,400 Debtors 13,600 Stock 18,000 Bills payable RS 3,000 Bank overdraft 9,000 Creditors 5,000 39.Prepare cash Budget for the months of June.July and August 2004 from the following information: 1.Opening cash balance in June 21,000 2.Cash sales for June 60,000:July 90,000:and August 1,20,000 3.Wages payable 18,000 every month 4.Interest receivable 1,500 in the month of August 5.Purchases Of machinery For 48,000 in July 6.Cash purchases for June 30,000:July 27,000:August 42,000 40.From the following information prepare a cash Budget for three months from October 2003 1.Opening cash balance in October 6,000 2.Cash sales :October 50,000:November 40,000:December 30,000 3.Credit purchases :September 20,000:October 24,000:November 28,000:December 32,000 The period of credit allowed by suppliers is one month 4.Dividend to be received in December 8,000 5.Sale of an old assets for 24,000 during November
SECTION III Answer all the Questions 7X5=35 41.From the following information prepare a cash budget for June, July and August 2009 Month Credit Sales Credit Purchases Wages April 2009 May 2009 June 2009 July 2009 August 2009 2,50,000 2,65,000 3,25,000 3,75,000 3,50,000 1,80,000 1,25,000 1,75,000 1,90,000 2,25,000 25,000 10,000 25,000 15,000 20,000 Additional information: 1.Opening cash balance on 1st June 2009 1,20,000 2.period of Credit allowed to customer-one month 3.period of credit allowed by suppliers two month 4.lag in payment of wages is one month 5.sale of machinery 40,000 in July Prepare a cash budget for the month of March.April and May 2006 from the following information: Month Credit Sales Credit Purchases Expenses January 2006 2,50,000 2,00,000 50,000 February 2006 3,00,000 3,50,000 60,000 March 2006 April 2006 May 2006 4,50,000 2,00,000 3,50,000 3,00,000 4,00,000 5,00,000 70,000 80,000 70,000 Additional information: 1.Expected cash balance as on 1.3.2006 75,000 2.Suppliers allowed credit of two months 3.Credit of two months is allowed to the customers 4.lag in payment of expenses one month 5.Sale of fixed assets in the month of April 95,000 42.Prepare a cash budget for the month of august and September 2004 from the following information: Month June 2004 July 2004 August 2004 September Cash sales 75,000 60,000 50,000 45,000 Credit Sales 1,87,000 1,92,000 1,94,000 1,26,000 Credit Purchases 1,24,800 1,83,600 1,46,000 1,73,400 wages 12,000 14,000 11,000 10,000 Selling expenses 8,600 4,800 6,600 7,500
Additional information: 1.Suppliers allowed two months credit 2.Customers were given one month credit 3.Wages are payable in the same month and delay in payment of selling expenses was one month 4.Commission receivable 11,000 in august 5.estimated cash balance as on 1st august 9,100 Prepare a cash Budget for October,November and December 2004 from the following information: Month September 2004 October 2004 November 2004 December 2004 Sales 10,00,000 12,00,000 14,00,000 16,00,000 Purchases 8,00,000 12,00,000 8,00,000 10,00,000 Expenses 1,10,000 1,30,000 1,50,000 1,70,000 Additional information: 1.All sales are for cash 2.The period of credit allowed by the suppliers is one month 3.Lag in payments fro expenses is one month 4.Opening balance of cash on 1.10.2004 is 90,000 5.In December an asset of 4,00,000 is to be bought. 43. From the following balance sheet calculate : a) Current Ratio b) Liquid Ratio C) Debt-Equity Ratiod) Proprietary Ratio Balance sheet as on 31.03.2010 Liabilities RS Assets Share capital 1,40,000 Fixed Assets 1,30,000 Reserves 10,000 Stock 30,000 Loans 75,000 Sundry Debtors 60,000 Creditors 50,000 Bills Receivables 20,000 Bank Overdraft 10,000 Cash 10,000 Goodwill 35,000 From the following particulars from balance sheet calculate i)debt equity ratio ii)proprietory ratio iii) Fixed assets turnover ratio IV)Current ratio Balance sheet as on 31.03.2005 Liabilities Assets Share Capital 2,00,000 Fixed assets 2,00,000 General Reserve 40,000 Current assets 2,00,000 Debentures 60,000 Current Liabilites 1,00,000 Additional information : Credit sales during the year.8,00,000
44. From the following balance sheet calculate. 1) Current ratio 2) liquid ratio 3) absolute liquid ratio and debtors turnover. Balance sheet Liabilities Assets Equity share capital 85,000 Land & buildings 15,000 Preference share capital 15,000 Plant&machinery 32,000 Furniture 6,500 General reserve 23,000 Stock 72,000 Debenture 38,000 Bills receivable 11,000 Bills payable 2,500 Debtors 27,000 Bank overdraft 4,000 Short term investment 3,000 Creditors 12,500 Prepaid expenses 1,500 Outstanding expenses 6,000 Cash 18,000 Additional information : Credit sales. 1,65,000 ; credit purchase. 44,000. From the following information calculate Operating profit ratio, Operating ratio, Gross Profit ratio. Sales 1, 00,000 Dividend Received 400 Gross profit 30,000 Net profit 26,000 Administration Expenses 1,000 Selling Expenses 2,000 Loss on sale investments 800 45. prakash company purchased a machinery on 1.6.2005 for.4,50,000. On 1st october 2007.it purchased another machinery for.2,00,000. on 1st oct 2007 ; it sold off the first machinery purchased on 1.6.2005 for.2,70,000. Accounts are closed every year on 31st March. Depreciation is written balance method. Prepare machinery a/c and off at 10% per annum on diminishing depreciation a/c for the first 3 years. Define depreciation. what are the reasons for providing depreciations? 46. Define cash budget. mention the features and limitation of cash budget. Mohan maintain books on single entry. He gives you the following information Particulars Jan1,2006 Dec31.2007 Cash in hand Cash at bank Stock Furniture Sundry debtors Creditors 2,000 1,000 16,000 3,000 21,000 5,000 3,000 2,000 18,000 5,000 30,000 7,000 He has taken 4,000 from the business to meet his personal expenses. depreciate furniture by 10% per annum calculate the profit Or Loss for the year 2006
47. Find out total purchases and total sales from the following details by preparing necessary accounts: Opening Sundry debtors 1,00,000 Opening Sundry creditors 65,000 Cash received from Sundry debtors 5,90,000 Discount received 3,000 Cash paid to Sundry creditors 40,000 Discount allowed 5,000 Returns outward 10,000 Returns inward 6,000 Closing Sundry debtors 70,000 Closing Sundry creditors 50,000 Cash sales 50,000 Cash purchases 25,000 Mrs.Sankari started business with 1,50,000 as Capital as on 1.4.2006.During the year she has withdrawn at the rate of 3,000 per month. She introduced 40,000 as additional Capital Bank Balance 15,000 Stock 85,000 Sundry debtors 75,000 Machinery 45,000 Cash in hand 20,000 Sundry creditors 30,000 Prepaid expenses 4,000 She keeps her books under Single entry system Find out her Profit Or Loss for the year 2006-07 48.Mr Suresh started business with 2,00,000 on 1.4.2003.His books are kept under single entry. On 31.3.2004 his position was under Liabilities Assets Creditors Bills payable Outstanding expenses 40,000 5,000 7,500 Cash Cash at Bank Furniture Plant & machinery Debtors Stock Bills receivable Ascertain Profit or Loss made by Suresh for the year ended 31.3.2004 From the following particulars calculate closing balance of Sundry debtors and Sundry creditors.. Sundry debtors as on 1.4.2002 30,000 Sundry creditors as on 1.4.2002 41,000 Credit purchases 1,50,000 Credit sales 1,70,000 Discount earned 5,000 6,000 10,000 30,000 1,00,000 50,000 90,000 15,000
Discount allowed 6,000 Purchase returns 7,500 Sales returns 6,500 Cash received from Sundry debtors 1,50,000 Cash paid to Sundry creditors 1,40,000 49. The following are the balances extracted from the books of Mrs. Sundari as on 31st March 2006 Trial balance as on 31.3.2006 Debit Balance RS Credit balance RS Furniture cash in hand Opening stock Purchases Investment @10% Drawings Salaries Insurance Rent Debtors Advertising General expenses 30,000 8,000 1,00,000 3,40,000 20,000 60,000 72,000 12,000 26,000 1,80,000 40,000 27,500 Capital Commission Sales Creditors Interest received 2,00,000 14,000 6,00,000 1,00,000 1,500 9,15,500 9,15,500 Adjustment: 1. Closing stock was valued at 80,000 2. Provide for accrued interest on Investment 500 3. Commission received in advance 4,000 4. Depreciation furniture by 10% 5. Provide an interest on capital @ 5% Kannan started business with 2,62,500 on 1.4.2003.he bought furniture for 42,000.he borrowed 52,500 from Bank. He withdrew for personal expenses 75,600.From the details given prepare final accounts on 31.3.2004: Credit sales 7,00,000 Cash sales 3,50,000 Credit Purchases 7,87,500 Cash Purchases 1,40,000 Wages 15,750 Discount Allowed 3,500 Salaries 17,500 Business Expenses 14,000 Advertisement 17,500 Closing sundry debtors 2,62,500 Closing sundry creditors 1,75,000 Closing stock 1,22,500 Closing cash balance 1,64,150 Depreciation to be provided on furniture @ 10% R.Balamurugan.M.com,B.ed Puttuthakku,vellore Ph:9600652017