ANSWER KEY FIRST SEMESTER EXAMINATION XI ACCOUNTANCY MARKS-100 2017-18 TIME-3 HRS 1. Any 2 differences between Book Keeping and Accounting to be given.(1/2 + ½ = 1) Book keeping is the primary stage /basis of accounting. The objective is to maintain a systematic record of financial transactions. Accounting is the secondary stage and begins where book keeping ends. The objective is to ascertain net results of operations and financial position. 2. i.)capital /Loan ii.)debtors (1/2 + ½ = 1) 3. This is in accordance with the accounting /business entity concept. (1) 4. Quality of staff. (1) 5. Any 1 difference between IFRS and Indian GAAP / AS to be stated. (1) IFRS are principle based and are based on fair value concept. GAAP /AS are rule based and are based on historical cost concept. 6. The advance received should be treated as a liability because Rohit has not yet made the sales.(1) 7. A debit cash balance signifies cash in hand while a debit bank balance signifies balance lying deposited in the bank. (1/2 + ½ = 1) 8. Those entries which appear on both sides of the double column cash book are called contra entries. Eg. Cash deposited in bank, cash withdrawn from bank for business use.(any 1 eg.) (1) 9. Rs 6000 transferred from SBI to PNB will be shown on the receipt side of PNBs cash book (bank column) and payment side of SBIs cash book (bank column). (1) 10. No it should not be credited to debtors account but to bad debts recovered account as it s a gain (1/2 + ½=1) 11. Trade discount. Its not recorded separately in the books of accounts, instead purchases are recorded at net value. (1/2 + ½=1) 12. a.)conservatism / Prudence concept. b.)accounting Period concept c.)money measurement concept (To be explained clearly) (3*1=3) 13.a.)Profit= Revenue Expenses = 300000, total assets = 300000 + 400000+ 100000 =Rs 800000 b.)capital = 500000 00(creditors) 00(bank loan) = Rs100000 (1.5 + 1.5 =3) 14.Any 3 objectives of preparing a Trial Balance to be stated. (3*1=3) a.)to check the arithmetical accuracy of transactions recorded in journal, ledger accounts. b.) To facilitate preparation of financial statements- trading & P&L a/c and B/S. c.)to help in detection of errors. 15.Closing stock = Rs 0, Sales = Rs 10000, Purchases = Rs 0 (1/2+1/2+1/2) Cost of goods sold = Opening stock + Purchases - Closing stock = Rs 0 (1.5) Gross loss = Cost of goods sold - Sales = Rs 10000.(1) 16. Utility of accounting information to Management, Banks & financial institutions, Researchers and Investors to be explained. (4 * 1=4)
a.)management-analyse profitability, liquidity, take managerial decisions. b.)banks & financial institutions-information on co.s creditworthiness,loan repayment ability c.)researchers-accounting theory, business practices,indepth studies d.)investors-information on risks & returns on investments 17.Operating profit = G/P Operating expenses = Rs (440000-277700)= Rs162300 (2) N/P = Operating profit Non operating expenses + Non operating incomes = Rs(162300-40000 +56000) =Rs 178300. (2) 18. ASSETS = LIABILITIES + CAPITAL a.)cash 50000 + Stock 30000 = 0 + 80000 b.)cash 0 + Stock 80000 = Karan 0 + 80000 c.) Cash 75000 + Stock 40000 = Karan 0 + 95000 d.) Cash 65000 + Stock 40000 = Karan 0 + 85000 e.) Cash 65000 + Stock 40000 = Karan 0 + 83000 Outstanding rent f.) Cash 64000 + Stock 40000 = Karan 0 + 83000 +Unexpired insur ance 1000 Outstanding rent Rs 105000 = Rs 105000 6*1=6 19. Book of Mr. Ashok Trading Company Amount Received(Rs) 800 2016,Sept01 Sept 01 Sept 04 Sept 06 Sept 10 Sept 14 Sept 18 Sept 20 Sept 22 Sept 25 Sept 28 Sept 29 Sept 30 Petty cash book Date Particulars Amounts Cash taxi fare pens, pencils files, folders Printing charges courier charges stamps bus fare office cleaning Auto fare Fax Charges Refreshment Recharge coupons paid Rs 30 Rs 15 Rs 41 Rs 40 Rs 17 Rs 20 Rs 35 Rs 20 Rs 50 Rs 48 Rs 30 Rs 60 406 Analysis of Payments ConveyancePos & Tel Prin &Stat Misc. 30 15 17 20 41 40 35 20 50 48 30 60 115 145 96 50
394 800 Sept 30 Oct 1 Bal c/d Bal b/d 394 800 406 Cash received 20. Bank Reconciliation Statement of M/s Ashima Travels as on 31st July, 2006 Particulars Amount (+) Amount (-) Bank overdraft as per Cash Book 45000 Cheques issued but not presented for payment 17500 Cheques deposited but not yet collected by the bank 9600 Interest on investment collected by the bank 2300 Bank charges debited by the bank 350 Bank overdraft as per Pass Book 35150 54950 54950 6*1=6 21.Journal Proper (Narration & complete format required) i.)depreciation a/c Dr 250000 To machinery a/c 250000 ii.)salary a/c Dr 110000 To outstanding salary a/c 110000 iii.)loss by fire a/c Dr 100000 To purchases a/c 100000 iv.)prepaid insurance a/c Dr 18000 To insurance a/c 18000 v.)interest on capital a/c Dr 240000 To capital a/c 240000 vi.)free samples/advertisement /sales promotion a/c Dr 3500 To purchases a/c 3500 6*1=6 22.Purchases Book 2016, April 1 - M/s R Ltd : 100 pieces long cloth @ 200 = Rs 0 50 pieces shirts @ 100 each = Rs 5000 less trade discount @ 10%. = Rs 2500 Rs 22500
April 15 - Bihari Ltd. : 200 pieces of terrycot @ Rs.100 = Rs 0 10 pieces of shirts @ Rs. 100 = Rs 1000 Rs 21000 Rs 43500 (4) a.) April 10 - Purchase for cash from Arya Mills : 100 pieces @ Rs. 100 cash book(1) CASH BOOK 2016 To bal c/d 10000 2016 By purchases 10000 April 30 April 10 b.) April 25 - Purchased a computer on credit from Ramlal @ Rs. 45,000 journal proper(1) Computer/office equipment a/c Dr 45000 To Ramlal a/c 45000 23. Trial Balance as on: (6) Name of the account Amount (Dr.) Amount (Cr.) Prepaid Expense 5,000 Profit & Loss A/c (Profit) 8,000 Outstanding Rent 2,000 Bad Debts Recovered 4,000 Interest on Investment 1,000 Due to Mohan 5,000 Bank overdraft 2,000 Discount Allowed 800 Due from Vinod 1200 Investment 15000 Patents 4000 Machinery 6000 Capital 10,000 Total 3 3 24. Dr. Cash a/c Cr. Apr 1 3 16 May 1 To capital To sales To Suresh To bal b/d 100000 18250 11000 129250 53350 Apr 2 3 25 25 30 By furniture By purchases By office rent By drawings By bal c/d 9000 58900 5000 3000 53350 129250
Dr. Purchases a/c Cr. Apr 3 15 To cash To Ramesh 58900 9500 Apr 30 By bal c/d 68400 68400 68400 May 1 To bal b/d 68400 Dr. Sales a/c Cr. Apr 30 To bal c/d 33500 Apr 3 By cash 18250 3 By discount allowed 50 7 By Suresh 15200 33500 33500 May 1 By bal b/d 33500 Dr. Suresh a/c Cr. Apr 7 To sales 15200 Apr 12 By sales returns 4000 16 By cash 11000 16 By discount allowed 200 15200 15200 25.JOURNAL ENTRIES : i.)machinery a/c Dr 10,30,000 To cash a/c 10,30,000 ii.)cash a/c Dr 6000 Bad debts a/c Dr 9000 To Bhupesh a/c 15000 iii.) Cash in hand a/c Dr 0 Sundry debtors a/c Dr 60000 Stock of goods a/c Dr 40000 Plant a/c Dr 50000 Building a/c Dr 100000 To Sundry creditors a/c 100000 To capital a/c 170000 iv.)bank charges a/c Dr 500 To bank a/c 500
v.)cash a/c Dr 9000 To bad debts recovered a/c 9000 vi.)cash a/c Dr 50000 To Commission received in advance a/c 50000 vii.) Salary a/c Dr 24000 To outstanding salary a/c 24000 (Narration & proper format required) (1+1+2+1+1+1+1=8) 26. Trading & P&L a/c of MMN, for the year ended 31st December,2016 PARTICULARS AMOUNT(RS) PARTICULARS AMOUNT(RS) Opening Stock Purchases 42160 less Purchase returns 8460 Salaries Bank charges Rates and taxes Trade expenses Fire insurance Coal, gas and water Wages Carriage inward G/P c/d 26420 33700 140 21470 4370 3370 89470 4670 720 840 1990 490 8710 Less Sales 91230 Sales returns 1760 G/P b/d Apprentice premium Discount N/L transferred to capital 89470 89470 3370 500 120 4720 8710 B/S of MMN, for the year ended 31st December,2016 Liabilities Amount(Rs) Assets Amount(Rs) Capital 90000 Less N/L 4720 Less Drawings6480 Bills payable Creditors 78800 2470 12170 93440 Land and building Plant and machinery Furniture Bills receivable Debtors Cash at bank Cash in hand 25000 14270 1250 1270 37800 13000 850 93440 (2+3+3=8)
27. Double column/bank column cash book (4+4=8) Dr. Cr. Date Particulars Cash(Rs) Bank(Rs) Date Particulars Cash(Rs) Bank(Rs) 2017 Jan 1 5 10 13 22 24 26 29 31 Feb 1 To bal b/d To furniture To Khanna & co To cash (C) To Rahim & co. To Khanna bros To bank (C) To sales To cash (C) To bal b/d 5000 3000 3175 1000 10000 22175 18675 9000 7000 2500 1500 2 14950 2017 Jan 9 13 18 18 20 26 31 31 By Patel By bank(c) By Khanna & co. By bank charges By drawings By cash(c) By bank(c) By bal c/d 1500 18675 22175 3000 50 1000 1000 14950 2 ******************************