MODEL TEST PAPER 1 DEPRECIATION ACCOUNTING Q.1 The following balances appear in the books of Mastana & Co., Ltd. as on 1 st Jan., 2002: Rs. Machinery Account 6,00,000 Provision for Depreciation Account 2,40,000 On 1 st Oct., 2002 they decided to sell a Machine for Rs.20,000 which was purchased on 1 st July, 1999 for Rs.70,000. Show the Machinery account, Provision for Depreciation account and Machinery Disposal Account if the depreciation has been charged @ 20 % p.a. on the Straight line method. (8 Marks) Q.2 On January 1, 2008 a Company purchased machinery for Rs. 20,00,000. Depreciation is provided @ 15% p.a. on Diminishing Balance Method. On September 1, 2009 another machinery was purchased by the company for Rs. 15,00,000.On April 1, 2010 one-fourth of machinery become obsolete and realized Rs. 40,000. On September 1, 2010 another machinery was purchased by the company for Rs. 5,00,000. Write up the Machinery A/c from 2008 to 2010. Books are closed on December 31 every year. (12 Marks)
MODEL TEST PAPER 2 CASH BOOK AND SUBSIDIARY BOOKS Q. 1 What do you mean by Imprest system of petty cash book. Explain. Q. 2 Define Contra entry with examples. Q. 3 Whether Bank column of cash book always show debit balance. State with reason (1 Mark) Q. 4 When a Cheque Endorsed is Dishonored it must be entered on : (i) Credit side of the Cash Book only. (ii) Debit side of the Cash Book only. (iii) Both side of the Cash Book only. (iv) Will not be recorded in Cash Book. (1 Mark) Q. 5 What are Subsidiary books? Explain them. Q. 6 Record the following transactions in the Cash Book and find out Cash and Bank balance: 2008 Jan.1 Cash in hand. Rs.25000 Jan.1 Bank overdraft Rs.5000 Jan.3 Purchase goods from Ashish Rs.2000 less 10% trade discount. CGST and SGST is 6%. Jan.5 Sold goods to Prerna Rs.5000. Prerna paid 40% amount in cash was allowed a cash discount of 5%. CGST and SGST is 6% Jan.9 Received cheque from Priya Rs.5000 in full settlement of his account standing in books at Rs.6000 Jan.11 Bank allowed Interest Rs. 300 Jan.13 Priya's cheque deposited into bank Jan.20 Received a cheque from Charu for Rs.800 which was endorsed to Nishant on 22 Jan. Jan.21 Cash paid into Bank Rs.300 Jan 23 Cheque Received from Charu was dishonored Jan.25 Received Repayment of a Loan Rs.4500 and deposited out of it Rs.4000 in bank Jan.27 Cashed a cheque Rs. 2000 Jan.29 An amount of Rs. 500 due from Kashish written off as bad debts in the previous year, now recovered Jan.31 Cash in excess of Rs. 2000 deposited into bank (10 Marks) Q. 7 On Jan. 1, 2018 Anurag s Assets were : Cash Rs. 2,000; Due from Jagdish Rs. 1,000; Stock Rs. 3,000; Furniture Rs. 500; Harish Rs. 1,000; His liabilities were: He had to pay to Krishnamurthy Rs. 2,000, Mahesh Rs. 1100. Transactions of the month Jan. 4 Purchased furniture from Anshuman for Rs. 200. IGST @ 12% Jan. 6 Received payment from Jagdish, discount being allowed @ 2% Jan. 10 Sold to Madhav 10 Locks, invoiced at Rs. 30 per Lock. Allowed T.D. @ 10% CGST & SGST @ 6% Jan. 15 Sent to Madhav a Credit note because 1 Lock was returned by him. Jan. 17 An amount of Rs. 100 which was previously declared as bad debts from Ram recovered now. Jan. 20 Settled Krishnamurthy s Account to the extent of Rs. 1,000 only, he allowed discount @ 2.5% Jan. 25 Purchased from Krishnamurthy s goods of the list price of Rs. 1,500. He allowed 20% trade discount. IGST 2 12% Jan. 26 A cheque of Rs. 1000 received from Harish our Debtor, endorsed in favor of Mahesh, a creditor in full Settlement. Jan. 28 Paid the amount due to Anshuman. Jan. 29 Rent Due to Landlord Rs. 500. Jan. 31 Paid Salaries Rs. 300. Required: Prepare necessary Subsidiary Books of Anurag. (12 Marks)
MODEL TEST PAPER 3 THEORY BASE OF ACCOUNTING AND JOURNAL Q.1 What is inter-firm comparison? (1 Mark) Q.2 Provision for Bad Debts is created on Debtors following which principle? (1 Mark) Q.3 Explain Periodicity concept. (1 Mark) Q.4 Explain the process of accounting. (1 Mark) Q.5 What are Representative Personal accounts? Explain with example. (1 Mark) Q.6 Explain how accounting information may be useful to Management and Potential Investors? (1 Mark) Q.7 Classify the following accounts as per Traditional and Modern Classification: (1) Capital (2) Bank (3) Bad Debts Recovered (4) Premises Q.8 Explain the concept of consistency. What are its exceptions? Q.9 Differentiate between Book Keeping and Accounting on the basis of Performance and Objective Q.10 Write the limitations of accounting in detail. (Any four) Q.11 A businessman commenced his business on 1st April, 2010 with the assets having value of Rs. 6,00,000 and liabilities owning to outsiders Rs. 40,000. During the year, he earned a profit of Rs. 20,000 and had withdrawn Rs. 30,000 from his business. Calculate the value of its capital as on 31st March, 2011. Also find the value of closing assets on that date. Q.12 During the financial year 2016-17, Ashok had cash sales of Rs.3,90,000 and credit sales of Rs.1,60,000. Total purchase during the year were Rs. 2,00,000 of which 1,80,000 is on cash. His expenses for the year were Rs.27,000 out of which Rs.8,000 is still to be paid. Find out Ashok s income for 2016-17 following: (a) Cash Basis of Accounting. (b) Accrual basis of Accounting. Q.13 Define the following terms: (a) Revenue (b) Bills Payable (c) Drawings (d) Bad Debts (e) Return Outward (f) Creditor (3 Marks) Q.14 What are the Fundamental Accounting Assumptions? Explain them in detail. (3 Marks) Q.15 Show the accounting equation on the basis of the following transactions and also prepare Balance Sheet : 1. Harshit commenced business with cash Rs. 1,00,000, Goods Rs. 60,000 Machinery Rs. 10,000 and Furniture Rs. 20,000. 2. 1/4 th of the above Goods were sold at Rs. 18,000. Only 40% of payment was received by cheque. 3. Purchase goods from Ankur Rs. 10,000 at 10% trade Discount. 4. Charge Depreciation on fixed assets @ 10% 5. Goods worth Rs. 1,000 withdrawn by proprietor for personal use. 6. Paid rent Rs. 3,000 out of which 1,000 belongs to next year. 7. Interest on Capital Rs. 1,000. (6 Marks)
MODEL TEST PAPER 4 ACCOUNTING EQUATION AND JOURNAL 1. Raja started a business on 1 st April, 2016 with a capital of Rs. 1,00,000 and a loan of Rs. 50,000 borrowed from Ram. During 2016-17, he had introduced additional capital of Rs. 50,000and had withdrawn Rs. 30,000 for personal use. On 31 st March, 2017 his assets were Rs. 3,00,000. Find out his capital as on 31 st March, 2017 and profit made or loss incurred during the year 2016-17. 2. Show that accounting equation is satisfied in the following cases :- (i) Ram commenced business with cash Rs. 50,000 and goods Rs. 30,000. (ii) Sold 40% of above goods at a profit of 25% to Mohan. (iii)paid salary Rs. 4,000 but Rs. 1,000 still remains unpaid. (iv) Paid insurance premium Rs. 2,000 of which Rs. 500 relates to next year. (v) Goods costing Rs. 2,000 was distributed as free samples (vi) Goods worth Rs. 3,000 was withdrawn by Ram for personal use (vii) Interest on capital allowed Rs. 5,000 (viii) Mohan paid Rs. 13,000 in full settlement of his account. (ix) Interest earned of Rs. 4,000 out of which 1000 not yet received. (6 Marks) 3. Pass Journal Entries in case of the following transactions a) Rohan became insolvent. Received from his official receiver a first & final Dividend of 30 paisa in a rupee. He owed us Rs. 10,000 b) Purchased goods worth Rs. 20,000 from Amit at a Trade discount of 10% and 5% cash discount. Full amount was paid immediately. c) Sold goods at the list price of Rs.25000 from Vaibhika less 20% trade discount and 2% cash discount and received 50% by cash immediately. d) Paid Salary to manager Rs. 22,000. 40% of the time of manager is devoted for personal work of owner. e) Goods damaged by fire Rs 10000 and Insurance Company admitted a claim of Rs 6000 and out of it 75% received from insurance company. (10 Marks) 4. Journalise the following transaction:- Jan-1 Started business with cash Rs. 10,000 and building Rs. 20,000. Jan-2 Purchased goods from Manish Rs. 10,000 at 10% trade discount. Jan-4 Sold goods to Salman Rs. 15,000 at 10% trade discount. 10% of the amount due was received in cash immediately. Jan-5 Salary paid to Hari Rs. 3,000 Jan-6 Purchased Machinery from Mukesh Rs. 9,000. Paid installation charges on purchase of Machinery Rs. 1000. Jan-7 Cash paid to Manish Rs. 2000 and discount allowed by him Rs. 500. Jan-8 Depreciation charged on Machinery at 10% Jan-10 Cash Rs. 1000 was withdrawn by proprietor for personal use. Jan-12 Cash received from Salman Rs. 2000 and discount allowed Rs. 150. Jan-13 Cash paid to Mukesh on account Rs. 8,500. Jan-14 Rent received from Tenant by cheque Rs. 1000. Jan-15 Cash deposited into Bank Rs. 500. Jan-17 Sold Building to Prakash Rs. 20,000. 30% amount received in cash & 20% by cheque. Jan-19 Received from Prakash Rs. 9,000 in full settlement of his account. Jan-21 Purchases goods from Sunny Rs. 1000 and paid 40% amount immediately. Jan-22 Cash received from Salman Rs. 9000 in full settlement of his account.
Jan-23 Goods returned to Sunny Rs. 200. Jan-24 Cash paid to Sunny Rs. 300 in full settlement of his account. Jan-27 Cash withdrawn from Bank Rs. 200 Jan-30 Commission received from Mohan Rs. 2000 which includes advance commission of Rs. 500 (12 Marks)
MODEL TEST PAPER 5 THEORY BASE OF ACCOUNTING, JOURNAL, LEDGER AND BRS Q.1. Pass the Opening Entry on the basis of the following information taken from the books of Mr. Ashok: (1 Mark) Rs. Cash in Hand 20,000 Sundry Debtors 60,000 Stock of Goods 40,000 Plant 50,000 Land and Buildings 1,00,000 Sundry Creditors 1,00,000 Q.2. A machinery was purchased on 1 st Jan.05 for Rs.100000. Installation expenses incurred on purchase of machinery were Rs.10000. Realizable value of machinery on 31 st Dec.08 was Rs.70000. Repairs incurred on machinery during this period amount to 5000.Depreciation is charged on machinery at 10% p.a. on straight line method. What is the value of machinery on 31 st Dec.08 based on Historical cost concept? (1 Mark) Q.3. Goods sold during May 2008 Rs.10000 Amount received during May 08 Rs.6000 Amount received as advance in March 08 Rs.1500 Amount received during June 08 Rs.2000 Amount not yet received Rs.500 According to Revenue Recognition concept what amount of revenue for May 08 should be recognized? (1 Mark) Q.4. Which of the following statement is True:- (1 Mark) (a) If a business is maintaining subsidiary books than there is still a need to maintain separate ledger accounts for cash and bank (b) Accrued Income means Income not yet earned but received in advance. (c) During the lifetime of an entity accounting produces financial statement in accordance with Accounting period concept. (d) According to revenue recognition concept, revenue is brought into accounts when it is actually realized. Q.5. Give one example of Increase in one liability and decrease in another liability. (1 Mark) Q.6. What is Imprest System of Petty Cash Book? Q.7. A started business on 1 st April 2009 with a capital of Rs. 1,10,000 and took loan from bank Rs. 40,000. At the end of the year on 31 st March, 2010, his assets were for Rs. 2,50,000, creditors for Rs. 70,000. Bank loan has not been paid so for. Find the closing capital and profit earned during year. Q.8. Prepare Trial Balance from the following information of Mohan Lal & Sons as on 31-12-13. (5 Marks) Rs. Rs. Stock Sales Cash Printing & stationery Bank Overdraft Return Inward Purchases Drawing Return outward 16,800 70,200 8,000 4,000 9,000 4,000 50,000 6,500 1,000 Bad Debts Discount Allowed Discount Received Debtors B/P Creditors B/R Loan from Ramesh Prov. for Depreciation 3,000 2,000 1,500 24,000 8,000 22,000 9,000 2,000 1,600
Salary Furniture Advertisement 8,000 20,000 5,000 Rent 5,000 Q.9. The following are the causes of discrepancies between cash book balance and pass book balance of Amit on 31 st March, 2010: (i) Bank balance as per cash book Rs. 4,400: (ii) (iii) (iv) (v) (vi) Cheques totalling Rs. 10,600 were deposited into bank on 28 th March, but cheques for 2,200 were collected and credited by bank on 4 th April. A cheque for Rs. 2,400 issued to Kumar was dishonoured on 30 th March but no entry was made in cash book record the dishonour. A customer deposited Rs. 4,000 directly into bank on 28 th March but it was not recorded in the cash book till date. A cheque of Rs. 1,000 was deposited into bank but was wrongly debited in cash column of cash book. Bank charges amounting to Rs. 260 were recorded twice in cash book. Prepare : (i) Amended cash Book and (ii) Bank Reconciliation Statement. (6 Marks) Q.10. The following balance appear in the books of Mastana & Co., Ltd. as on 1st April, 2002: Rs. Machinery Account 6,00,000 Provision for Depreciation Account 2,40,000 On 1st Jan., 2003 they decided to sell a Machine for Rs.20,000 which was purchased on 1st Jan., 1999 for Rs.70,000 and on the same date another machine costing Rs. 50,000 is purchased. Show the Machinery account, Provision for Depreciation and machinery Disposal account if the depreciation has been charged @ 10 % p.a. on the Straight Line method. (8 Marks) Q.11. Journalise the following transactions :- 1. Received an advance of Rs. 10,000 from Ravi against an order of goods for Rs. 30,000. 2. Received Rs. 100 from sale of old newspapers and Rs. 1,000 from sale of old furniture. 3. Supplied goods costing Rs. 10,000 at an invoice price 30% above cost less 10% trade discount to Mohan and charged IGST @ 12%. 4. Allowed interest on capital @ 8% on capital of Rs. 50,000. 5. Bought goods of list price Rs. 50,000 less 10% trade discount and 2% cash discount from Neha. Paid 30% amount by cash and 40% by cheque. 6. Paid insurance premium of building Rs. 2,000 and life insurance premium Rs. 5,000 by cheque. 7. Repaid bank loan Rs. 5000 and paid interest by cheque 500. (8 Marks) Q.12. Ashoka Ltd. bought a machine on 1 st January, 2008 for Rs. 2,40,000 and spent Rs. 4,000 on its carriage and Rs. 6,000 towards installation cost. On 1 st April, 2009, it purchased a second hand machinery for Rs. 75,000 and spent 25,000 on its overhauling. On 1 st October, 2010, it decided to sell the machinery bought on 1 st January, 2008 at a loss of Rs. 20,000. It bought another machine on the same date for Rs. 40,000. Company decided to charge depreciation @ 15% p.a. on reducing balance method. Prepare machinery account for 3 years. (8 Marks) Q.13. Prepare a cash book with cash and bank column from the following transactions: Oct 2010 1 Balance of cash in hand Rs 4,000; Bank overdraft Rs. 8,000
3 Further capital introduced Rs. 20,000 of which Rs. 15,000 deposited in bank. 5 Ram deposited the cheque of Rs. 3,500 in our bank A/c 7 Settled the account of Arun of Rs. 4,000 by paying cash Rs. 1300 and Rs. 2,600 by cheque. 9 Received cheque from Hari Rs. 2,500 11 Cheque of Ram was returned dishonoured and Bank debited our account by Rs. 20 13 Settled the account of Gopal by endorsing cheque of Hari and by giving cheque for Rs. 2,300 in full settlement of Rs. 5,000. 19 Kabir who owed us Rs. 800 became insolvent and paid only 50 paisa in a rupee. 22 Bank charges Rs. 200 and bank charged interest Rs. 400. 26 Withdrew from bank Rs. 3000. 27 Bank is instructed to issue demand draft in favour of Raj & Co. for Rs. 2500. Bank charged commission Rs. 100. 30 Deposited into bank after retaining Rs. 1,100 in cash. (8 Marks) Q.14. Prepare proper subsidiary books of Mehra & Co. from the following transactions, 2010 Jan 1 Assets : Cash Rs. 8,000; Ram Rs 14,000; Mohan Rs. 8,000; stock Rs. 31,000; Furniture Rs. 9,000. Liabilities : Bank O/D Rs. 10,000, Gopal Rs. 8,000 Amar Rs. 4,000. Jan 3 Bought goods of list price Rs. 5,000 from Gopal less 10% T.D. and IGST @ 18% Jan 4 Sold goods to Ram for Rs. 4,000 and Mohan Rs. 6,000 (less 10% trade discounts to both) and IGST charged @ 18% Jan 8 Sold goods for cash Rs. 5,000 and CGST & SGST @ 9% each. Jan 10 Goods returned to Gopal of list price Rs. 500. Jan 12 Ram returned goods of list price Rs. 1,000. Jan 14 Bought furniture from Kamal Rs. 3,000 and CGST & SGST @ 9% each Jan 18 Paid salary Rs. 2,000 in cash and rent by cheque Rs. 1,000. Jan 22 Cash deposited into bank Rs. 3,000. Jan 24 Received two cheques from Ram for Rs. 5,000 and Rs. 7,000. Jan 28 Cheque received from Ram for Rs. 5,000 is endorsed to Gopal and cheque for Rs. 7,000 was banked. Jan 30 Cheque of Ram for Rs. 7,000 returned dishonoured. Jan 31 Bank debited interest Rs. 300. (12 Marks) Q.15. On Jan 1, 2010 the position of Mr. S was as follows : Cash in hand Rs.50,000, Cash at bank Rs. 30,000, Machinery Rs.1,500, Hitesh (Dr.) 5,000, Ankit (Cr.)Rs. 4,000, Outstanding salary Rs.1,000, Bills receivable Rs.1,000, Bills payable Rs. 4,000 Jan. 2 Bought goods from Ankit Rs. 10,000 and CGST & SGST @ 9% each, 60% of which was on credit. Jan. 4 Sold goods to Jayesh Rs. 3,000 and IGST charged @ 18%. Jan. 6 Cheque received from Hitesh in full settlement of his account Rs. 4,800. Hitesh cheque deposited into bank. Jan. 8 Outstanding salary paid. Jan. 10 30% of goods purchased by Jayesh was not up to sample and returned by him. Jan. 13 Bank intimate that cheque received from Hitesh got dishonured. Jan. 16 Purchase furniture Rs.10,000 and installation charges paid Rs.1,000. Jan. 17 Interest due but not yet received Rs.1,000 Jan. 19 Hitesh become insolvent.received from his official receiver a first and final dividend of 20 paisa in a rupee. Jan. 20 1/5 of goods purchased from Ankit on Jan.2 was found defective and was returned. Jan. 21 Paid to Ankit Rs. 4,700 in full settlement of his account.
Jan. 28 Depreciation charged on furniture and machinery @ 10%. Journalise the following in the books of Mr. S Also prepare the ledger accounts for the following: (i) Bank a/c (ii) Jayesh a/c (iii) Furniture a/c (iv) Ankit a/c (12 marks) (4 marks)
MODEL TEST PAPER 6 THEORY BASE OF ACCOUNTING, JOURNAL AND ACCOUNTING EQUATION Q.1 Explain Historical Cost Concept. Q.2 Write the limitations of accounting. (any four) Q.3 Explain how Accounting information may be useful to Management and Potential Investors. Q.4 Differentiate between Cash Basis of Accounting and Accrual basis of Accounting on the basis of: (a) Capital and revenue items, (b) Recording of Transactions Q.5 Differentiate between Trade Discount and Cash Discount Q.6 Name the Three Branches of Accounting. (1 Mark) Q.7 Differentiate between Book Keeping and Accounting on the basis of Performance and scope. Q.8 What is Money measurement concept? Explain with example. Q.9 What is inter-firm comparison? (1 Mark) Q.10 Classify the following Accounts as per Traditional as well as Modern approach. (a) Bank A/c (d) Prepaid Rent A/c (e) Bad Debts Recovered A/c (f) Premises A/c (2 Mark) Q.11 A businessman commenced his business on 1st April, 2010 with the assets having value of Rs. 4,00,000 and liabilities owning to outsiders Rs. 20,000. During the year, he suffered a loss of Rs. 20,000 and had withdrawn Rs. 30,000 from his business. Calculate the value of its capital as on 31st March, 2011. Also find the value of closing assets on that date. (3 Marks) Q.12 Define the following terms: (a) Revenue (b) Bills Payable (c) Asset (d) Bad Debts (4 Marks) Q.13 Show the accounting equation on the basis of the following transactions and also prepare Balance Sheet : 1. Harshit commenced business with cash Rs. 1,00,000, Goods Rs. 60,000 Machinery Rs. 10,000 and Furniture Rs. 20,000. 2. 1/4 th of the above Goods were sold at Rs. 18,000. 40% of payment was received by cheque & remaning in cash. 3. Purchase goods from Ankur Rs. 10,000 at 10% trade Discount. 4. Charge Depreciation on fixed assets @ 10% 5. Goods worth Rs. 1,000 withdrawn by proprietor for personal use, Rs. 2,000 given as charity, Rs. 3,000 distributed as free samples and Rs. 4,000 destroyed by fire. 6. Paid rent Rs. 3,000 out of which 1,000 belongs to next year. 7. Interest on Capital Rs. 1,000 (10 Marks)
Q.14 Journalise the following transactions: Mar 1 Started business with cash Rs. 10,000, Bank Rs. 20,000 & Building Rs. 30,000. Mar 8 Drew out of Bank Rs. 5,000. Mar 10 Bought goods from Sunil for Rs 2500 at a trade Discount of 20% Mar 15 Goods sold to kunal Rs 5000 at a trade Discount of 10% Mar 18 Bought goods from Gourav of the list price Rs 25000 less trade discount 20%, and cash discount 2% paid 40% amount immediately Mar 20 Kunal became insolvent & 40 paisa in a rupee received from him. Mar 21 Goods sold to Palak costing Rs 20000 at a profit of 25% on cost at 10% trade discount and 4% cash discount. Palak paid ¼ th amount immediately. Mar 22 Cash paid to Gaurav Rs. 10,000 in full settlement of his account. Mar 23 Placed in fixed Deposit Account Rs. 1000 by transfer from current account. Mar 25 Cash paid to Sunil in full settlement after receiving Rs 200 as Discount Mar 25 Purchase Machinery Rs 10000 from Mahesh & paid installation expenses. Rs. 1000. Mar 27 an amount which was previously declared as bad debts now recovered Rs 1000. Mar 28 Goods Rs 500 & cash Rs 1000 withdrawn for personal use. Mar 31 Charge depreciation Rs 1000 on Machinery (15 Marks)
CLASS XI MODEL TEST PAPER 7 BILLS OF EXCHANGE Q.1 On 15 Jan. Sudarshan sold goods to Shashi for Rs. 3,000. Shashi paid Rs. 600 in cash and for balance accepted three Bills, No. 1 for Rs. 700 at one month, No. 2 for Rs. 800 at two months, and No. 3, Rs. 900 at three months. Sudarshan endorsed 1 st bill to Nahar his creditor on 16 Jan. in full settlement of Rs. 710; discounted the 2 nd bill at his bank for Rs. 792 and retained the third bill till maturity. The first bill is met at maturity. The second bill is dishonoured and Rs. 10 being paid as noting charges, Sudarshan charges Rs. 15 for interest and draws on Shashi a fourth bill for the amount at three months. At maturity, the third bill was renewed with interest @ 5% p.a. for three months. The fifth bill was duly accepted by Shashi. The fourth and fifth bills were met at maturity. Give Journal Entries in the books of Sudarshan and shashi. (10 Marks) Q.2 Mr. David draws two bills of exchange on 1 st Jan, for Rs.6,000 and Rs.10,000. The bills of exchange for Rs.6,000 is for two months while the bill of exchange for Rs.10,000 is for three months. These bills are accepted by Mr. Thomas. On 4 th March Mr. Thomas requests Mr. David to renew the first bill with interest at 18% p.a. for a period of two months. Mr. David agrees to this proposal. On 20 th March, Mr. Thomas retires the second bill under rebate of 6% p.a. The renewed bill was duly met on maturity. You are to give the journal entries in the book of Mr. David and Mr. Thomas. (8 Marks) Q.3 Journalise the following transactions: (1) Our acceptance to Ram for Rs. 1,200 was settled by issuing cheque for Rs. 700 and a fresh bill for 2 months for the balance; interest being Rs. 100 paid in cash. (2) Our acceptance for Rs. 2,000 in favour of Mohan is paid 2 months before the due date under rebate of 6%p.a. (3+2=5 Marks) Q.4 Define Promissory Note. (1 Mark) Q.5 On 12.5.2017 X draws a bill on Y for 3 months for Rs.20,000. What is the Maturity date of the bill? (1 Mark) Badala Classes, Durga Nursery Road, Udaipur - 9413495256
MODEL TEST PAPER 8 JOURNAL AND CASH BOOK Q.1 Journalise the following Transactions:- (a) Purchase goods at the list price of Rs.25000 from Vaibhika less 20% trade discount and 2% cash discount and paid 30% by cash & 20% by cheque. (b) Goods Damaged by fire Rs.2000 and insurance company accepted a claim of Rs.600. 60% of the amount due from insurance co. is received in cash. (c) Paid rent of building Rs. 20000. 60% of the building is used by proprietor for his residential use. Paid for the insurance of the above building Rs. 5000. (6 Marks) Q.2 Record the following transactions in the Cash Book and find out Cash and Bank balance: 2008 Jan.1 Cash in hand. Rs.25000 Jan.1 Bank overdraft Rs.5000 Jan.3 Purchase goods from Ashish Rs.2000 less 10% trade discount. Jan.5 Sold goods to Prerna Rs.5000. Prerna paid 40% amount in cash, 30% through cheque and were allowed a cash discount of 5%. Jan.9 Received cheque from Priya Rs.5000 in full settlement of his account standing in books at Rs.6000. Jan.11 Bank allowed Interest Rs.300. Jan.13 Priya's cheque deposited into bank Jan.20 Received a cheque from Charu for Rs.800 which was endorsed to Nishant on 22 Jan. Jan.21 Cash paid into Bank Rs.300. Jan 23 Cheque Received from Charu was dishonored. Jan.25 Received Repayment of a Loan Rs.4500 and deposited out of it Rs.4000 in bank. Jan.27 Cashed a cheque Rs.2000. Jan.29 An amount of Rs.500 due from Kashish written off as bad debts in the previous year, now recovered. Jan.31 Cheque Received from Priya was dishonored. (8 Marks) Q.3 Show the accounting equation on the basis of following transactions and prepare a Balance sheet on the basis of last equation: (1) Opening Balance: Cash Rs. 20,000; Bank Rs. 5,000; Creditors Rs. 5,000; Capital Rs. 50,000; Stock Rs. 20,000; Debtors Rs. 10,000. (2) Purchased goods for cash Rs. 7,500 and on credit for Rs. 5,000 (3) Goods costing Rs. 10,000 sold at 20% profit, half of the amount received in cash. (4) Amount received by cheque from debtors 5,000 (5) Paid to creditors by cheque 5,000 (6) Goods sold on credit (Cost price Rs. 4,000). 5,000 (7) Goods withdrawn for personal use 1,000 (8) Interest allowed on capital 2,500 (9) Received commission in advance 2,500 (8 Marks) Q.4 Enter the following transactions of Amrit Book depot in appropriate subsidiary books: April 1 Assets: Cash Rs. 5,000; Due from Naman Rs. 2,000; Stock 6,000; Furniture Rs. 2,000. Liabilities: Due to Gaurav Rs. 4,000. BADALA CLASSES, DURGA NURSERY ROAD, UDAIPUR PH. 9413495256
April 5 Purchased 20 books @ Rs. 250 each from SBPD Publications, Trade Discount being 20%. April 10 Received payment from Naman, Cash discount allowed being 5%. April 15 Purchased furniture for Rs. 5,000 from Delux furniture on credit. April 20 Sold to Jain Book Depot 20 books of Accountancy @ Rs. 250, allowed discount @ 10%. April 25 Paid to Gaurav Rs. 1,980, he allowed discount Rs. 20. April 30 Paid Rent Rs. 500. (6 Marks) Q.5 Explain the Money measurement concept and Materiality concept. BADALA CLASSES, DURGA NURSERY ROAD, UDAIPUR PH. 9413495256