ITL Public School Annual Examination ( )

ITL Public School Annual Examination (2015-1) Date: 29.02.1 Class: XI Accountancy (055) (Set -B) Time: hrs M. M: 90 General Instructions: 1. All questions are compulsory 2. Marks for each question are indicated against it. Attempt all parts of a question at one place. 4. Do write narrations with journal entries 1 Which accounting principle brings objectivity in the preparation and presentation of financial statements? 2 An accountant of a large sized firm records all the transactions in a Journal instead of maintaining 1 subsidiary books. His view on this are that it will result in better control and also large team of accountants will not be required. Is his decision correct? Give reason. State the nature of Income and Expenditure Account. 1 4 Mr Anuj dealing in readymade garments pays Rs.0,000 as rent for his shop from which he runs his business of garments. One day fire broke off in his shop and goods worth Rs.1,50,000 were destroyed by fire. Identify which one is an expense and give reason for the same. 5 Vijay, a consultant, during the financial year 2015-1 earned Rs.10,00,000. Out of which he received Rs.8,50,000. He incurred expenses of Rs.8,40,000, out of which Rs.20,000 were paid in advance. He also paid Rs.20,000 expenses of last year. You are required to determine his income for the year if he follows accrual basis of accounting. What is the difference between Credit note and Debit note? 1 7 Accounting information provides information about the profitability and financial soundness of a concern. In addition, it provides various other advantages also. Explain other three advantages. 8 (i) Calculate the value of opening stock from the following information: Cash sales Rs. 40,000; Sales return Rs. 5,000; Purchase return Rs. 4,000; Closing stock Rs.,000; Credit sales Rs. 1,5,000; Purchases Rs. 1,24,000; Carriage inwards Rs. 8,000; and Rate of gross profit 40% on sales. (ii) Which Accounting principle is certainly followed and which one is certainly ignored while preparing the accounts under Single Entry System? 1 1 1 2+1 9 (i) Justify the purpose of need of Ledger Folio numbers at the time of recording entries in the accounts. (ii) Journalise in books of Prakash from the ledger given below for the financial year 2014-15: Capital A/c Date Particulars Amount Date Particulars Amount Dec.1 To balance c/d,50,000 Jan.1 By Bank a/c 1,00,000 Jan.1 By Building a/c 2,00,000 Jan.1 By Goodwill a/c 50,000,50,000,50,000 1+2 XI B Page 1 of

10 How will you deal with the following information while preparing the Income & Expenditure A/c and Balance Sheet for the year ending 1..2015: Rs. Stock of Sports Equipment as on 1-4-2014 50,000 Amount paid for sports equipment during 2014-15 2,05,000 Creditors for Sports Equipment as on 1-4-2014 5,000 Sports Equipment returned to supplier during the year 20,000 Stock of Sports Equipment as on 1--2015 1,000 Creditors for Sports Equipment as on 1--2015 17,000 11 Following is the information given in respect of certain items of a Sports Club. You are required to show them in the Income and Expenditure Account and Balance Sheet of the club as at 1 st March, 2015. Rs. Tournament Fund as at 1 st April 2014 4,00,000 Tournament Fund Investments 4,00,000 Interest on Tournament Fund Investments 80,000 Donation for Tournament fund 90,000 Tournament prizes awarded 0,000 Expenses on Tournament events 2,000 General Fund,50,000 General fund Investments 2,80,000 Interest on General Fund Investments 8,000 12 Akshay s liabilities amounted to Rs. 1,85,000 and his capital is Rs.70,000. His fixed assets are 70% of current assets. In fixed assets, Building in 0%; Plant and Machinery is 25% and balance is the furniture. Find out the value of different fixed assets individually. 1 Fill in the missing information in the following journal entries: 4 S.no Particulars LF Debit amt(rs) Credit amt(rs) (i)?..dr.? To cash a/c 4,000 To?.?. (being purchase of building, paid 2% brokerage on its purchase, in cash, balance was paid through cheque along with Rs. 24,000 as registration charges) (ii)?.dr. To?. (being cash paid to Suresh on behalf of Naresh) 2,000 2,000 (iii)? Dr.? Dr. To Cash a/c To discount received a/c To Manik (being purchased goods worth Rs. 0,000 at 10% trade discount from Manik; paid VAT @20%. Cash discount received 10%)?.?..?.. 1,20?.. XI B Page 2 of

14 Mr. X started business with Rs. 70,000 on 1 st April 2014. Following incomplete information is available from records maintained by him:- 4 Particulars Cash Bank Debtors(including R who owes Rs. 2,000) Stock Machinery Creditors Bank loan @ % pa. (taken on 1 st July 2014) 1--2015(Rs.) 1,500 10,000 12,000,000 20,000 10,000 12,000 During the year Mr. X introduced in the business the amount realized on sale of Rs. 10,000 investments at a premium of 5%. Personal expenses of Mr. X paid out of the business amounted to Rs. 1,250 per quarter. R is declared insolvent and only 40 paisa in a rupee is realized from his estate. Prepare Statement of Profit and Loss for the year ended 1..2015. 15 Prepare a Bank Reconciliation Statement for Kevin as on 1 st March, 2015. (i) Cash book showed a credit balance of Rs 19,000 in bank column on this date. (ii) Cheques totalling Rs,050 were issued to creditors. It was found that out of these, cheques for Rs 12,50 were presented for payment after 1 st March 2015. (iii) Sent to bank two cheques: Rs 5,000 and Rs 2,000 out of which the first cheque was lost in transit and the other was not cleared due to over writing. (iv) Debit of Rs 2,000 in pass book recorded in the cash column on debit side of cash book. (v) Debit side of cash book is overcast by Rs,500. (vi) A bills payable for Rs,000 retired by the bank at a rebate of Rs 100 was recorded at its full value in the cash book. (vii) Cheques of Rs. 5,75 which were presented in bank, out of them a cheque of Rs. 2,100 was credited in the first week of April 2015. 4 1 Define inventory. Also explain various kinds of inventory 4 17 (i) A customer of X Ltd. has discontinued his business. He used to purchase 0% of the total goods produced by X Ltd. Is it relevant information in your opinion and should be disclosed by X Ltd. Justify your answer. (ii) The management of Abhir Ltd. has a practice of providing a copy of its financial statement to all the employees at the end of financial year. Comment and identify any two values. 18 Rectify the following errors by passing journal entries:- (i) An amount of Rs. 457 was posted as Rs. 745 on the debit of interest account. (ii) Goods worth Rs. 11,970 returned to Manu posted to his credit as Rs. 11,790. (iii) Freight on purchase of new machinery amounting to Rs. 700 was debited to Sundry expenses as Rs. 90. 2+2 XI B Page of

(iv) Bills Receivable from Brown for Rs.,000 posted to the credit of Bills Payable Account and credited to Brown s account as Rs. 00. (v) Goods costing Rs. 8,000 were purchased for various members of the staff and the cost was included in Purchases. A similar amount was deducted from the salaries of the staff members concerned and the net payments to them debited to Salaries Account. (vi) Debit and Credit totals of discount columns in the Cash Book which come to Rs. 50 and Rs. 50 respectively have not been posted to Discount Accounts. 19 It refers to modifying off the- shelf software according to the specifications of the user. Identify the category of software referred in the above mentioned line. Also explain in detail other two accounting softwares specifying at least three advantages of each. 20 Pass the necessary journal entries in each of the following cases in our books:- (i) A bill worth Rs. 5,000 was accepted by Astha was sent to bank for collection. Astha retired the bill one month before the due date and got the rebate @15% p.a. (ii) Our promissory note of Rs. 7,700 given to Mohan in full settlement of his account of Rs. 8,000 was dishonoured on due date. Noting charges being Rs. 10. (iii) S s bill for Rs. 9000 endorsed in favour of G dishonoured, G pays Rs. 200 as noting charges. S pays Rs. 4000 immediately and agrees to accept a new bill for months for the balance together with interest at % p.a. G s account is settled through cheque. (iv) A bill worth Rs. 10,000 drew on Y was discounted with bank @5% p.a. on 1 st Jan 2015 (due date being 1 st April 2015).On due date the bill is dishonoured. Bank paid Rs. 00 as noting charges. 21 X ltd. purchased a plant on 1 st July, 2010 costing Rs. 5,00,000. It purchased another plant on 1 st September, 2011 costing Rs.,00,000. On 1 st October 2012, the plant purchased on 1 st July, 2010 got out of order and was sold for Rs. 2,15,000. And on the same day another plant was purchased for Rs.,00,000. Depreciation is to be provided at 20% p.a. according to Fixed Installment Method. The accounts are closed every year on 1 st March. Show Plant Account and Provision for Depreciation Account till 1 st March 201. 22 Prepare Three Column Cash Book for the following transactions for the month of January 201:- Jan1 Cash Rs 0,000 Bank(Cr) Rs 20,000 Jan 5 Withdrew from bank Rs 000. Jan 9 Discounted a bill for Rs 20,000 for months with the bank @ 5% p.a. Jan 11 Honoured our own acceptance through cheque Rs 1500. Jan 15 Direct deposit by a customer in our bank account Rs. 4,500 in full settlement of his account of Rs.5,000. Jan 22 Received a cheque from Haider for Rs 22,000 in full settlement of his debt of Rs 22,500. Jan 2 Paid salaries to nurse for mother Rs 10,000 Jan 28 Sent the cheque dated Jan22 to bank. Jan 29 The above cheque is dishonoured. Bank charged Rs 20. Jan 1 Interest on investment collected by the bank Rs 4,000. XI B Page 4 of

2 From the following Trial Balance of a cloth merchant, you are required to prepare Trading and Profit and Loss Account and Balance Sheet for the year ending 1 st March 2015. Particulars Amt (Dr.) Amt (Cr.) Capital 25,000 Building 28,500 Furniture 2,40 Advertisement 4,000 Returns inwards and outwards 2,00 1,00 Opening stock 8,000 Purchases and Sales,800 5,040 Bad debts 00 Carriage 1,000 General expenses 7,00 Bad debts provision 900 Sales Tax collected 900 Commission 4,800 Accrued commission 2,000 Salaries 2,00 Cash 2,500 Debtors and creditors 2,500 10,000 Stock on 1 st march 2015 1,500 99,240 99,240 8 Adjustments:- (i) Write off Rs. 200 as further bad debts and maintain a provision for doubtful debts at 5%. Also a provision for discount on debtors @2%. (ii) The merchant took cloth for personal use Rs. 500, and also distributed as sample cloth worth Rs. 00. (iii)there is a contingent liability of Rs. 20,000 in respect of a court case. (iv) Goods worth Rs. 5,000 were sold and dispatched on 28 th March 2015, but no entry was passed to this effect. (v) 2/5 th of the expenses on carriage are related to the goods purchased and balance is related to sales. (vi) Included in general expenses is insurance premium Rs. 1,200 paid for one year ending 0 th June 2015. (vii) A new sign board costing Rs. 800 is included in advertisement. XI B Page 5 of

24 Following is the Receipt and Payment Account of Queen s Book Club, for the year ended 1st Dec, 2015: 8 Receipts Rs. Payments Rs To balance b/d To Subscription To entrance fees To Life membership fees To Match Fund To Interest on investment To Donation 11,170 42,200,800,000,000 200,000 15,000 8,700 27,400 1,200,500 2,400 4,000 By rent, Rates and Taxes By Books By Salaries By Insurance premium By Match expenses By Telephone expenses By Furniture (purchased on 1st July, 2015) By Investment @10%p.a. By Balance c/d 4,000,170 9,70 9,70 Prepare Income and Expenditure account with following additional information: Subscription outstanding on 1st Dec, 2014 Rs. 4,000 Subscription outstanding on 1st Dec, 2015 Rs. 5,400 Subscription received in advance on 1st Dec 2014 Rs. 1,500 Subscription received in advance on 1st Dec 2015 Rs. 2,100 Two month s rent Rs. 2,500 was due at the beginning of the year. Insurance prepaid on 1st Dec 2014 Rs. 200 Insurance prepaid on 1st Dec 2015 Rs. 00 Depreciate furniture by 10% p.a. Mr. X a clerk, who is paid salary of Rs. 00 p.m. was paid Rs.,00 during the year. 0% of the entrance fees is to be capitalised. Donation include Rs.2,000 towards Pavillion Fund. XI B Page of