Samacheer Kalvi students, how did you do your Accountancy exam? The paper was a little bit lengthy, but easy. If you’re still not sure of the answers here the Class XI Accountancy Answer Key 2024 for your reference. If you need clarification for any answers, please let us know in the comments section.
Here are the answers for the SET A question paper. Scroll down for the answers to set B.
Part I
1. Closing stock is an item of: | |||
(a) Fictitious asset | (b) Fixed asset | (c) Intangible asset | (d) Current asset |
Ans: (d) Current asset | |||
2. The concept which assumes that a business will last indefinitely is: | |||
(a) Periodicity | (b) Business Entity | (c) Conservatism | (d) Going concern |
Ans: (d) Going concern | |||
3. The process of transferring the debit and credit items from Journal to Ledger accounts is called: | |||
(a) Journalising | (b) Casting | (c) Balancing | (d) Posting |
Ans: (d) Posting | |||
4. Customised accounting software is suitable for: | |||
(a) Large, medium business | (b)Large, Typical business | (c) Small conventional business | (d) None of the above |
Ans: (a) Large, medium business | |||
5. The Trial balance contains the balances of: |
|||
(a) Only nominal accounts | (b) Only personal accounts | (c) All accounts | (d) Only Real accounts |
Ans: (c) All accounts | |||
6. Which one of the following is correctly matched? | |||
(a) Bad debt-creditor | (b) Depreciation - Trading account | (c) Indian Income Tax Act - 1961 | (d) Closing stock - Profit and loss account |
Ans: (c) Indian Income Tax Act - 1961 | |||
7. The process of allocating the cost of an intangible asset over a period of time is called: | |||
(a) Profit and loss account | (b) Amortisation | (c) Provision for depreciation | (d) Annual depreciation |
Ans: (b) Amortisation | |||
8. If there is no existing provision for doubtful debts, provision created for doubtful debts is | |||
(a) Credited to bad debts account | (b) Debited to bad debts account | (c) Debited to profit and loss account | (d) Debited to sundry debtors account |
Ans: (c) Debited to profit and loss account | |||
9. A bank statement is a copy of | |||
(a) A customer’s account in the bank’s book | (b) Cash column of the cash book | (c) Cheques issued by the business | (d) Bank column of the cash book |
Ans: (a) A customer’s account in the bank’s book | |||
10. GAAPs are | |||
(a) Generally Accepted Accounting Principles | (b) Generally Accepted Accounting Provisions | (c) Generally Accepted Accounting Policies | (d) None of these |
Ans: (a) Generally Accepted Accounting Principles | |||
11. Depreciation is caused by: | |||
(a) Usage | (b) Obsolesence | (c) Lapse of time | (d) (a), (b) and (c) |
Ans: (d) (a), (b) and (c) | |||
12. Trading and profit and loss account is______ in nature. | |||
(a) Personal account | (b) Nominal account | (c) Representative Personal account | (d) Real account |
Ans: (b) Nominal account | |||
13. The incorrect accounting equation is: | |||
(a) Liabilities = Assets + Capital | (b) Assets = Liabilities + Capital | (c) Capital = Assets – Liabilities | (d) Assets = Capital + Liabilities |
Ans: (a) Liabilities = Assets + Capital | |||
14. The difference in trial balance is taken to | |||
(a) The suspense account | (b) The capital account | (c) The profit and loss account | (d) The trading account |
Ans: (a) The suspense account | |||
15. Who is considered to be the internal user of the financial information? | |||
(a) Customer | (b) Creditor | (c) Government | (d) Employee |
Ans: (d) Employee | |||
16. A bank reconciliation statement is prepared by | |||
(a) Debtor to the business | (b) Bank | (c) Creditor to the business | (d) Business |
Ans: (d) Business | |||
17. Balance sheet shows the ______ of the business. | |||
(a) Sales | (b) Profitability | (c) Purchases | (d) Financial position |
Ans: (d) Financial position | |||
18. If the rate of depreciation is same, then the amount of depreciation under straight line method vis-à-vis written down value method will be | |||
(a) Equal in the first year but lower in subsequent years | (b) Equal in all years | (c) Lower in the first year but equal in subsequent years | (d) Equal in the first year but higher in subsequent years |
Ans: (d) Equal in the first year but higher in subsequent years | |||
19. The source document or voucher used for recording entries in sales book is | |||
(a) Invoice | (b) Debit note | (c) Cash receipt | (d) Credit note |
Ans: (a) Invoice | |||
20. Small payments are recorded in a book called | |||
(a) Bills payable book | (b) Cash book | (c) Petty cash book | (d) Purchases book |
Ans: (c) Petty cash book |
Part II
21. Define accounting.
According to the American Institute of Certified Public Accountants “Accounting is the art of recording, classifying and summarising in a significant manner and in terms of money, transactions and events which are in part, at least of a financial character and interpreting the results thereof ”.
22. Give the golden rules of double entry accounting system.
Personal account | Debit the receiver | Credit the giver |
---|---|---|
Real account | Debit what comes in | Credit what goes out |
Nominal account | Debit all expenses and losses | Credit all income and gains. |
23. What are the methods of preparation of trial balance?
A trial balance can be prepared in the following methods:
(i) Balance method
(ii) Total method and
(iii) Total and Balance method
24. What are wasting assets?
Wasting assets are the assets which get exhausted gradually in the process of excavation. Examples: mines and quarries.
25. What are mnemonic codes?
A mnemonic code consists of alphabets or abbreviations as symbols to codify a piece of information. For example:
Code Information
SJ Sales Journals
HQ Head Quarters
26. State whether the balance of each of the following accounts should be placed in the debit or the credit column of the trial balance.
(i) Sundry creditors
(ii) Furniture
(iii) Discount allowed
(iv) Bank Overdraft
Item | Accounting |
---|---|
(i) Sundry creditors | Credit column of Trial balance |
(ii) Furniture | Debit column of Trial balance |
(iii) Discount allowed | Debit column of Trial balance |
(iv) Bank Overdraft | Credit column of Trial balance |
27. The following errors were detected before the preparation of trial balance. Rectify them.
(i) Purchases returns book is undercast by Rs. 500.
(ii) Purchases returns book is overcast by Rs. 600.
(iii) Sales returns book is undercast by Rs. 700.
(iv) Sales returns book is overcast by Rs. 800.
Answer:
(i) Purchases returns account should be credited with Rs.500 |
(ii) Purchases returns account should be debited with Rs.600 |
(iii) Sales returns account should be debited with Rs.700 |
(iv) Sales returns account should be credited with Rs.800 |
28. Compute the cost of goods sold from the following information.
Particulars | Rs. | Particulars | Rs. |
---|---|---|---|
Opening stock | 10000 | Indirect expenses | 5000 |
Purchases | 80000 | Closing stock | 15000 |
Direct expenses | 7000 |
Cost of goods sold = Opening stock + Net purchases + Direct expenses – Closing stock
=10,000+80,000+7000-15000
= Rs. 82,000
29. Calculate the due date for the bill.
Date of bill | Period of bill | Days of grace | Due date |
---|---|---|---|
12th July | 1 Month | 3 | |
1st October | 30 days | 3 |
Date of bill | Period of bill | Days of grace | Due date |
---|---|---|---|
12th July | 1 Month | 3 | 14th August, since 15th August (being Independence day) is a public holiday. |
1st October | 30 days | 3 | 3rd November |
30. Which formula is used to compute annuity factor?
The following formula is used to compute annuity factor:
Annuity factor = where, i = interest rate; n = estimated life of the asset in number of years.
Part III
31. State the differences between book keeping and accounting. (any 3)
Basis of distinction | Book-keeping | Accounting |
---|---|---|
Scope | It is concerned with recording and classifying the business transactions. | It is concerned with recording, classifying, summarising, analysing and interpreting the financial data. |
Stage | Book-keeping is the primary stage in accounting. It is the base for accounting. | Apart from the primary stage, it includes secondary stage of analysis and interpretation. |
Nature of job | It is routine and clerical in nature. | It is analytical in nature. |
Knowledge | Requires basic knowledge of the principles of journalising and posting. | Requires thorough knowledge of accounting principles, procedures and practices. |
Skills | Analytical skill is not required for book-keeping. | It requires analytical skill. |
32. Classify the following into Personal, Real and Nominal accounts.
(a) Bank | (b) Purchases |
(c) Kavitha | (d) Sales |
(e) Commission received | Outstanding wages |
Item | Classification |
---|---|
(a) Bank | Personal |
(b) Purchases | Nominal |
(c) Kavitha | Personal |
(d) Sales | Nominal |
(e) Commission received | Nominal |
(f) Outstanding wages | Representative Personal Account |
33. Explain any three procedures for balancing a ledger account.
(i) The debit and credit columns of an account are to be totalled separately.
(ii) The difference between the two totals is to be ascertained.
(iii) The difference is placed in the amount column of the side having lesser total. ‘Balance c/d’ is to be entered in the particulars column against the difference and in the date column the last day of the accounting period is entered.
34. Journalise the following transactions and post them in the ledger. On May 20, 2018, Ram paid Salaries Rs. 15,000, Electricity charges, Rs. 8,000 and Wages Rs.2000.
In the books of Ram (Journal ) | ||||
Date | Particulars | LF | Debit | Credit |
May 20 2018 | Salaries A/c Dr. Electricity charges A/c Dr. Wages A/c Dr. To Cash A/c (Expenses paid) | 15,000 8,000 2,000 | 25000 |
Dr | Salaries Account | Cr | |||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
May 20 2018 | To Cash A/c | 15000 | |||||
Dr | Electricity Charges account | Cr | |||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
May 20 2018 | To Cash A/c | 8000 | |||||
Dr | Wages account | Cr | |||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
May 20 2018 | To Cash A/c | 2000 | |||||
Dr | Cash account | Cr | |||||
Date | Particulars | JF | Amount | Date | Particulars | JF | Amount |
May 20 2018 | By Salaries A/c By Electricity charges A/c By Wages A/c | 15,000 8,000 2,000 |
35. Prepare the trial balance from the following information.
Name of the account | Rs. | Name of the account | Rs. |
---|---|---|---|
Bank Loan | 1,00,000 | Purchases | 90,000 |
Bills payable | 50,000 | Sales | 1,50,000 |
Stock | 35,000 | Debtors | 2,00,000 |
Capital | 1,25,000 | Bank | 1,00,000 |
Name of the account | LF | Debit Balance (Rs.) | Credit Balance (Rs.) |
---|---|---|---|
Bank Loan | 1,00,000 | ||
Bills payable | 50,000 | ||
Stock | 35,000 | ||
Capital | 1,25,000 | ||
Purchases | 90,000 | ||
Sales | 1,50,000 | ||
Debtors | 2,00,000 | ||
Bank | 1,00,000 | ||
Total | 4,25,000 | 4,25,000 |
36. What are the objectives of providing depreciation?
The objectives of providing depreciation are:
(i) To find out the true profit or loss
The expenses incurred during a period must be matched with revenue earned during that period. When an asset is used for generating income for a business, the cost of the asset attributable to the use should be charged against the revenue. This is to be done to find out the true cost of production and profit or loss of the business for every accounting period.
(ii) To present the true and fair view of financial position
When the depreciation is charged on fixed assets, the book value of fixed assets are reduced to that extent and the remaining value is shown in the balance sheet. The balance sheet must represent a true and fair view of financial status. Hence, fixed assets must be shown at their at written down value.
(iii) To facilitate replacement of fixed assets
When the depreciation is debited to profit and loss account, an equal amount is either retained in the business or invested outside the business. When the useful life of an asset comes to an end, a new asset can be purchased by using the resources available in the business.
(iv) To avail tax benefits
As per the Indian Income Tax Act, while computing tax on business income, depreciation is deductible from income. Hence, depreciation is computed and charged to profit and loss account to reduce tax liability.
(v) To comply with legal requirements Depreciation is provided on fixed assets to comply with the provisions of law apart from Income Tax Act. For example, Section 123(1) of the Indian Companies Act, 2013, requires every company to provide depreciation on fixed assets before declaring dividend to its shareholders.
37. Enter the following transactions in a simple cash book of Kunal.
Jan. (2017) | Rs. | |
1 | Cash in hand | 11,200 |
5 | Received from Ramesh | 300 |
7 | Paid rent | 30 |
8 | Sold goods for cash | 300 |
10 | Paid Mohan | 700 |
27 | Purchased furniture for cash | 200 |
31 | Paid salaries | 100 |
In the Books of Kunal
Cash Book (Single column)
Date | Receipts | LF | Amount | Date | Receipts | LF | Amount |
---|---|---|---|---|---|---|---|
2017 | 2017 | By Rent A/c | 30 | ||||
Jan 1 | To Balance b/d | 11,200 | Jan 7 | By Mohan A/c | 700 | ||
5 | To Ramesh A/c | 300 | 10 | By Furniture A/c | 200 | ||
8 | To Sales A/c | 300 | 27 | By Salaries A/c | 100 | ||
31 | By Balance c/d | 10770 |
|||||
Total | 11800 | 31 | Total | 11800 | |||
Feb 1 | To Balance b/d | 10,770 |
38. From the following particulars of Simon traders, prepare a bank reconciliation statement as on 31st March, 2018.
(a) Debit balance as per bank statement Rs. 2,500
(b) Cheques deposited amounting to Rs. 10,000, not yet credited by bank.
(c) Payment through net banking for Rs. 2,000, omitted in the cash book.
Bank reconciliation statement as on 31st March, 2018
Particulars | Amount | Amount |
---|---|---|
Debit balance as per bank statement | 2,500 | |
Less: | ||
Cheques deposited not yet credited by bank. | 10,000 | |
Payment through net banking omitted in the cash book. | 2000 | 12,000 |
Balance as per cash book | - 9,500 |
39. From the following transactions write up the Sales daybook of M/s. Ram & Co., stationery. merchant.
2017
Jan. 1 – Sold to Anbu & Co., on credit 20 reams of white paper @ ₹ 150 per ream
Jan. 2 – Sold to Jagadish & Sons on credit 6 dozen pens @ ₹ 360 per dozen
Jan. 10 – Sold old newspapers for cash @ ₹ 620
Jan. 15 – Sold on credit M/s. Elango & Co., 10 drawing boards @ ₹ 170 per piece Jan. 20 Sold to Kani & Co., 4 writing tables at ₹ 1,520 per table for cash.
In the Books of M/s. Ram & Co
Date (2017) | Particulars | IN | LF | Amount (in Rs) |
---|---|---|---|---|
Jan 1 | Anbu & Co | |||
20 reams of white paper @ ₹ 150 per ream | 3000 | |||
Jan 2 | Jagadish & Sons | |||
6 dozen pens @ ₹ 360 per dozen | 2160 | |||
Jan 15 | M/s. Elango & Co. | |||
10 drawing boards @ ₹ 170 per piece | 1700 |
|||
Sales a/c Cr. | 6860 |
40. What is bad debts? Give the adjusting entry for it?
Debts which cannot be recovered or irrecoverable debts are called bad debts. It is a loss for the business and should be charged against profit.
The Adjusting entry for bad debts is:
Bad debts A/c Dr XXXX
To Sundry debtors A/c XXXX
(Bad debts written off)
Part IV
41. (a) Pass journal entries in the books of Sasi Kumar who is dealing in automobiles.
2017 | Amount (Rs.) | |
---|---|---|
Oct 1 | Commenced business with goods | 40000 |
3 | Cash introduced in the business | 60,000 |
4 | Purchased goods from Arul on credit | 70,000 |
6 | Returned goods to Arul | 10,000 |
10 | Paid cash to Arul on account | 60,000 |
15 | Sold goods to Chandar on credit | 30,000 |
18 | Chandar returned goods worth | 6,000 |
20 | Received cash from Chandar in full settlement | 23,000 |
25 | Paid salaries through ECS | 2,000 |
30 | Sasi Kumar took for personal use goods worth | 10,000 |
In the books of Sasi Kumar (Journal)
Date | Particulars | LF | Debit (Rs.) | Credit (Rs.) |
---|---|---|---|---|
2017 Oct 1 | Stock a/c Dr | 40,000 | ||
To Sasi Kumar’s Capital account | 40,000 | |||
(commenced business with goods) | ||||
3 | Cash a/c Dr | 60,000 | ||
To Sasi Kumar’s Capital account | 60,000 | |||
(commenced business with cash) | ||||
4 | Purchases a/c Dr | 70,000 | ||
To Arul account | 70,000 | |||
(purchased goods from Arul on credit) | ||||
6 | Arul a/c Dr | 10,000 | ||
To Purchase returns | 10,000 | |||
(returned goods to Arul) | ||||
10 | Arul a/c Dr | 60,000 | ||
To Cash | 60,000 | |||
(paid cash to Arul on account) | ||||
15 | Chandar a/c Dr | 30,000 | ||
To Sales a/c | 30,000 | |||
(sold goods to Chandar on credit) | ||||
18 | Sales Returns a/c DR | 6,000 | ||
To Chandar a/c | 6,000 | |||
(Chandar returned goods ) | ||||
20 | Cash a/c Dr | 23,000 | ||
Discount a/c Dr | 1,000 | |||
To Chandar a/c | 24,000 | |||
(Received cash from Chandar in full settlement) | ||||
25 | Salaries a/c Dr | 2000 | ||
To Bank | 2000 | |||
(Paid salaries through ECS) | ||||
30 | Drawings a/c Dr | 10,000 | ||
To Purchases a/c | 10,000 | |||
Sasi Kumar took goods for personal use ) |
41. (b) Prepare accounting equation for the following table.
(a) Murugan commenced business with cash Rs. 80,000
(b) Purchased goods for cash Rs. 30,000
(c) Paid salaries by cash Rs. 5,000
(d) Bought goods from Kumar for Rs. 5,000 and deposited the money in CDM.
(e) Introduced additional capital of Rs. 10,000
Transaction | Assets | = | Liabilities | |
---|---|---|---|---|
Cash | Stock | = | Capital | |
(a) Started business with cash | + 80,000 | = | + 80,000 | |
Equation | + 80,000 | = | + 80,000 | |
(b) Cash purchases | -30,000 | + 30,000 | = | |
Equation | + 50,000 | + 30,000 | = | + 80,000 |
( c ) Salaries paid | -5000 | = | -5,000 | |
Equation | + 45,000 | + 30,000 | = | + 75,000 |
(d) Cash purchases | -5,000 | + 30,000 | = | |
Equation | + 40,000 | + 35,000 | = | + 75,000 |
( d ) Additional capital introduced | + 10,000 | = | + 10,000 | |
Equation | + 50,000 | + 35,000 | = | + 85,000 |
42. (a) Given below are the balances extracted from the books of Nagarajan as on 31st March, 2016.
Particulars | Rs. | Particulars | Rs. |
---|---|---|---|
Purchases | 10,000 | Sales | 15,100 |
Wages | 600 | Commission received | 1,900 |
Freight inwards | 750 | Rent received | 600 |
Advertisement | 500 | Creditors | 2,400 |
Carriage outwards | 400 | Capital | 5,000 |
Cash | 1,200 | ||
Machinery | 8,000 | ||
Debtors | 2,250 | ||
Bills receivable | 300 | ||
Stock on 1st January, 2016 | 1,000 | ||
25,000 | 25000 |
Prepare the trading and profit and loss account for the year ended 31st March, 2016 and the balance sheet as on that date after adjusting the following:
(a) Commission received in advance Rs. 400
(b) Advertisement paid in advance Rs. 150
(c) Wages outstanding Rs. 200
(d) Closing stock on 31st March 2016, Rs. 2,100
In the books of Nagarajan
Trading and Profit and Loss Account for the year ended 31st March, 2016
Particulars | Rs. | Rs. | Rs. | Rs. | |
---|---|---|---|---|---|
To Opening stock | 1,000 | By Sales | 15,100 | ||
To Purchases | 10,000 | By Closing stock | 2,100 | ||
To Wages | 600 | ||||
Add: Outstanding | 200 | 800 | |||
To Freight inwards | 750 | ||||
To Gross profit c/d | 4,650 | ||||
Total | 17,200 | Total | 17,200 | ||
To Advertisement | 500 | By Gross profit b/d | 4650 | ||
Less: Prepaid advertisement | 150 | 350 | By Commission received | 1900 | |
To Carriage outwards | 400 | Less: Received in advance | 140 | 1500 | |
To Net profit (transferred to | 6,000 | By Rent received | 600 | ||
Total | 6,750 | 6750 |
Balance Sheet of Nagarajan as on 31st March, 2016
Liabilities | Rs. | Rs. | Assets | Rs. | Rs. |
---|---|---|---|---|---|
Capital | 5000 | Machinery | 8,000 | ||
Add: Net profit | 5000 | 11,000 | Stock in trade | 2,100 | |
Creditors | 2,400 | Debtors | 300 | ||
Commission received in advance | 400 | Bills receivable | 2,250 | ||
Outstanding wages | 200 | Advertisement prepaid | 150 | ||
Cash | 1,200 | ||||
Total | 14,000 | Total | 14,000 |
Q. 42 (b) Identify the following items into capital or revenue.
(i) Audit fees paid Rs.10,000.
(ii) Labour welfare expenses Rs. 5,000.
(iii) Rs. 2,000 paid for servicing the company vehicle.
(iv) Repair to furniture purchased second hand Rs.3,000.
(v) Rent paid for the factory Rs.12,000
Item | Classification |
---|---|
(i) Audit fees paid Rs.10,000. | Revenue expenditure |
(ii) Labour welfare expenses Rs. 5,000. | Revenue expenditure |
(iii) Rs. 2,000 paid for servicing the company vehicle. | Revenue expenditure |
(iv) Repair to furniture purchased second hand Rs.3,000. | Capital expenditure |
(v) Rent paid for the factory Rs.12,000 | Revenue expenditure |
Q. 43 (a) M/s Ramco textile mills purchased machinery on 1st April 2014 for Rs. 2,00,000 on credit from M/s. Nila & Co. and spent Rs. 10,000 on its installation. Depreciation is provided at 10% per annum on the written down value method. Prepare machinery account and depreciation account for the first three years. Books are closed on 31st March every year.
In the books of M/s Ramco textile mills
Machinery Account
Date | Particulars | Rs. | Date | Particulars | Rs. |
---|---|---|---|---|---|
2014 | 2015 | ||||
Apr-1 | To Nila & Co. A/c | 2.00,000 | Mar-31 | By Depreciation A/c (2,10,000 ×10%) | 21,000 |
Apr-1 | To Bank A/c | 10,000 | Mar-31 | By Balance c/d | 1,89,000 |
Total | 2,10,000 | Total | 2,10,000 | ||
2015 | 2016 | ||||
Apr-1 | To Balance b/d | 1,89,000 | Mar-31 | By Depreciation A/c (2,10,000 ×10%) | 18,900 |
Mar-31 | By Balance c/d | 1,70,100 | |||
Total | 1,89,000 | Total | 1,89,000 | ||
2016 | 2017 | ||||
Apr-1 | To Balance b/d | 1,70,100 | Mar-31 | By Depreciation A/c (1,70,100 ×10%) | 17,010 |
Mar-31 | By Balance c/d | 1,53,090 | |||
Total | 1,70,100 | Total | 1,70,100 | ||
2017 | |||||
Apr-1 | To Balance b/d | 1,53,090 |
Depreciation Account
Date | Particulars | Rs. | Date | Particulars | Rs. |
---|---|---|---|---|---|
2015 | 2015 | ||||
Mar-31 | To MachineryA/c | 21,000 | Mar-31 | By Profit & Loss A/c | 21,000 |
Total | 21,000 | Total | 21,000 | ||
2016 | 2016 | ||||
Mar-31 | To MachineryA/c | 18,900 | Mar-31 | By Profit & Loss A/c | 18,900 |
Total | 18,900 | Total | 18,900 | ||
2017 | 2017 | ||||
Mar-31 | To MachineryA/c | 17,010 | Mar-31 | By Profit & Loss A/c | 17,010 |
Total | 17,010 | Total | 17,010 |
Q. 43 (b). Mention any five limitations of computerised accounting system.
Answer: ( You can include any of the below points.)
The main limitations of computerised accounting system include:
(i) Heavy cost of installation: Computer hardware needs replacement and software needs to be updated from time to time with the availability of newer versions.
(ii) Cost of training: To ensure effective and efficient use of computerised system of accounting, newer versions of hardware and software are to be introduced. These require special training and hence, cost is incurred to train the staff personnel.
(iii) Fear of unemployment: On account of the introduction of computerised accounting system, the employees feel insecure that they may lose employment and show less interest in computer related work.
(iv) Disruption of work: When computerised system is introduced, the existing process of accounting and other works are interrupted. This results in certain changes in the working environment.
(v) System failure: The danger of a system crashing due to some failure in hardware can lead to subsequent interruption of work. This is more when no back-up is made.
(vi) Time consuming: When there is system failure, an alternative arrangement needs to be made to avoid loss of work. This consumes some time to bring the regular processes back.
(vii) Unanticipated errors not known: Unlike human beings, computers do not have the capability to judge or detect unanticipated errors in the system.
(viii) Breaches of security: The danger of viruses and hacking into the system from outside creates a strong need for security of the system. Similarly, the person who has created the specific programme can easily defraud by tampering with the original records.
(ix) Health dangers: Extensive use of computers may lead to many health problems such as eye strain, muscular complaints, back ache, etc. resulting in reducing work efficiency as well as increased medical expenditure.
Q. 44 (a) Show the direct ledger postings for the following transactions:
June 1 Raja commenced business with cash Rs. 50,000
6 Sold goods for cash Rs. 8,000
8 Sold goods to Devi on credit Rs.9,000
15 Goods purchased for cash Rs.4,000
20 Goods purchased from Shanthi on credit Rs.5,000
In the books of Raja
Cash a/c | |||||||
Date | Particulars | JF | Rs. | Date | Particulars | JF | Rs. |
2017 | 2017 | ||||||
Jun-1 | To Capital a/c | 50,000 | Jun-15 | By Purchase a/c | 4,000 | ||
Jun-6 | To Sales a/c | 8,000 | Jun-30 | By Balance c/d | 54,000 | ||
Total | 58,000 | Total | 58,000 | ||||
Jul-01 | To balance b/d | 54,000 | |||||
Capital a/c | |||||||
Date | Particulars | JF | Rs. | Date | Particulars | JF | Rs. |
2017 | 2017 | ||||||
Jun-30 | To balance c/d | 50,000 | Jun-15 | By cash a/c | 50,000 | ||
Jun-30 | |||||||
Total | 50,000 | Total | 50,000 | ||||
Jul-01 | By Balance b/d | 50,000 | |||||
Sales a/c | |||||||
Date | Particulars | JF | Rs. | Date | Particulars | JF | Rs. |
2017 | 2017 | ||||||
Jun-30 | To balance c/d | 17,000 | Jun-6 | By cash a/c | 8,000 | ||
Jun-8 | By Devi a/c | 9,000 | |||||
Total | 17,000 | Total | 17,000 | ||||
Jul-01 | By Balance b/d | 17,000 | |||||
Devi a/c | |||||||
Date | Particulars | JF | Rs. | Date | Particulars | JF | Rs. |
2017 | 2017 | ||||||
Jun-8 | To Sales a/c | 9000 | Jun-30 | By Balance c/d | 9000 | ||
Total | 9000 | Total | 9000 | ||||
Jul-01 | To Balance b/d | 9,000 | |||||
Purchase a/c | |||||||
Date | Particulars | JF | Rs. | Date | Particulars | JF | Rs. |
2017 | 2017 | ||||||
Jun-8 | To cash a/c | 4000 | Jun-30 | By Balance c/d | 9000 | ||
Jun-20 | To Shanti a/c | 5000 | |||||
Jul-1 | Total | 9000 | Total | 9000 | |||
Jul-1 | To Balance b/d | 9,000 | |||||
Shanthi a/c | |||||||
Date | Particulars | JF | Rs. | Date | Particulars | JF | Rs. |
2017 | 2017 | ||||||
Jun-30 | To balance c/d | 5000 | Jun-20 | By Purchase a/c | 5000 | ||
Total | 5000 | Total | 5000 | ||||
Jul-01 | By Balance c/d | 5000 |
Q. 44 (b) The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Rectify them.
(a) Sale of goods on credit to Arun for Rs.152 posted to his account as Rs. 125.
(b) Bought goods from Lakshmi on credit for Rs. 550, credited to her account as Rs. 505.
(c) Purchase of furniture from Abirupa for Rs. 404 on credit was debited to furniture account as Rs. 440.
(d) Purchased machinery for cash Rs. 200 was not posted to machinery account. (e) The total of purchases book Rs. 89 was carried forward as Rs. 98.
Particulars | LF | Dr (Rs.) | Cr (Rs.) | |
---|---|---|---|---|
(a) | Arun A/c Dr. | 27 | ||
To Suspense A/c | 27 | |||
(Wrong amount posted to Arun account rectified) | ||||
(b) | Suspense A/c Dr. | 45 | ||
To Lakshmi A/c | 45 | |||
(Short credit to Lakshmi account rectified) | ||||
( c) | Suspense A/c Dr. | 36 | ||
To Furniture A/c | 36 | |||
(Excess debit to furniture account rectified) | ||||
( e) | Machinery A/c Dr. | 200 | ||
To Suspense A/c | 200 | |||
(Omission to debit machinery account rectified | ||||
(f) | Suspense A/c Dr. | 9 | ||
To Purchases A/c | 9 | |||
(Excess amount carried forward to purchases | ||||
account rectified) |
Q. 45 (a) From the following information, prepare the necessary subsidiary books for Nalanda Book Stores.
2017 | |
---|---|
Dec. 1 | Bought from M/s. Umadevi on credit |
100 copies Business Statistics Book @ Rs. 80 each | |
100 copies Accountancy Book @ Rs. 150 each | |
Dec. 7 | Sold to Sridevi & Co., on credit |
240 copies Business Statistics @ Rs. 90 each | |
250 copies Accountancy books @ Rs. 170 each | |
Dec. 10 | Bought from Subha & Co., |
40 Copies Economics books @ Rs. 80 each | |
Less: 15% Trade Discount | |
Dec. 15 | Returned to M/s. Uma Devi 10 copies of damaged Accountancy book for which cash is not received |
Dec. 18 | Sold to Gupta Bros., on credit |
200 copies of Economics book @ Rs. 95 each | |
Dec. 26 | Returned 6 copies of Economics books to Subha & Co., |
In the books of Nalanda Book Stores
Purchase Book
Date | Particulars | IN | LF | Amount | |
---|---|---|---|---|---|
2017 | Total | ||||
Dec-01 | M/s. Umadevi | ||||
100 copies Business Statistics Book @ Rs.80 | 8,000 | ||||
100 copies Accountancy Book @ Rs. 150 | 15,000 | 23,000 | |||
Dec-10 | Subha & Co., | ||||
40 Economics books @ Rs. 80 each | 3200 | ||||
Less: 15% Trade Discount | 480 | 2720 | |||
Purchase a/c Dr | 25720 |
Sales Book
Date | Particulars | IN | LF | Amount | |
---|---|---|---|---|---|
2017 | Total | ||||
Dec-07 | Sridevi & Co. | ||||
240 Business Statistics @ Rs. 90 each | 21600 | ||||
250 Accountancy books @ Rs. 170 each | 42500 | 64100 | |||
Dec-18 | Gupta Bros. | ||||
200 Economics book @ Rs. 95 each | 19000 | ||||
Sales a/c Cr | 83100 |
Purchase Returns Book
Date | Particulars | IN | LF | Amount | |
---|---|---|---|---|---|
2017 | Total | Remarks | |||
Dec-07 | M/s. Umadevi | ||||
100 Accountancy Book @ Rs. 150 | 1500 | Cash not received | |||
Dec-26 | Subha & Co. | ||||
6 Economics books @ Rs. 68 each | 408 | ||||
(80-12) | |||||
Purchase Returns a/c Cr | 1908 |
Q. 45 (b) From the following information, prepare three column cash book in the books of Thiru Durairaj.
2017 | ||
Mar-01 | Cash in hand | 12,000 |
1 | Cash at bank | 15,000 |
2 | Cash paid into bank | 11,000 |
3 | Goods sold Rs. 18,500. Half of it is received in cash and half of it is received by cheque which is immediately deposited in the bank. | |
4 | Sold on credit to Jayaraj for | 7,000 |
8 | Jayaraj sent a cheque in full settlement | 6,900 |
12 | Jayaraj’s cheque was sent to bank | |
14 | Bought goods from Iqbal and issued a cheque to him immediately | 8,500 |
15 | Bought goods from Murali on credit | 4,000 |
19 | Received a cheque from Kannappan in full settlement of his account of Rs 2,000 | 1,975 |
20 | Drew cash Rs.3,000 and by cheque Rs.5,000 for personal use | |
25 | Paid Vinod by cheque in full settlement of his account of Rs.2,000 | 1,850 |
In the books of Thiru Durairaj
Three column Cash Book
Date | Particulars | LF | Dis. All | Cash | Bank | Date | Particulars | LF | Dis. All | Cash | Bank |
---|---|---|---|---|---|---|---|---|---|---|---|
2017 | 2017 | ||||||||||
Mar-01 | To balance b/d | 12,000 | 15,000 | Mar-02 | By Bank a/c | C | 11,000 | ||||
2 | To Cash a/c | C | 11,000 | 12 | By Bank a/c | C | 6,900 | ||||
3 | To Sales a/c | 9250 | 9,250 | 14 | By Purchase a/c | 8,500 | |||||
8 | To Jayaraj a/c | 100 | 6900 | 20 | By Drawings a/c | 3,000 | 5,000 | ||||
12 | To Cash a/c | 6,900 | 25 | By Vinoth a/c | 150 | 1,850 | |||||
19 | To Kannappan a/c | 25 | 1975 | 31 | By balance c/d | 9,225 | 26,800 | ||||
Total | 125 | 30125 | 42,150 | Total | 125 | 30125 | 42,150 | ||||
Apr-01 | 9,225 | 26,800 |
Q. 46. (a) Prepare analytical petty cash book from the following particulars under imprest system.
2017 July | Rs. | |
1 | Received advance form cashier | 2,000 |
7 | Paid for writing pads and registers | 100 |
8 | Purchased white papers | 50 |
10 | Paid auto charges | 200 |
15 | Paid wages | 300 |
18 | Postal charges | 100 |
21 | Purchased stationery | 450 |
23 | Tea expenses | 60 |
25 | Paid for speed post | 150 |
27 | Refreshment expenses | 250 |
31 | Paid for carriage | 150 |
Petty Cash Book
Receipts | CBFN | Date | Particulars | VN | Total Payments | Stationery | Conveyance | Wages | Postage | Carriage | Sundries | LF |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2017 July | ||||||||||||
2000 | 1 | To Cash a/c | ||||||||||
7 | By writing pads and registers | 100 | 100 | |||||||||
8 | By white papers | 50 | 50 | |||||||||
10 | By conveyance | 200 | 200 | |||||||||
15 | By wages | 300 | 300 | |||||||||
18 | By postal charges | 100 | 100 | |||||||||
21 | By stationery | 450 | 450 | 60 | ||||||||
23 | By tea expenses | 60 | ||||||||||
25 | By speed post | 150 | 150 | |||||||||
27 | By refreshment | 250 | 250 | |||||||||
31 | By carriage | 150 | 150 | |||||||||
Total | 1,810 | 600 | 200 | 300 | 250 | 150 | 310 | |||||
Aug-01 | By bal c/d | 190 | ||||||||||
2000 | 2,000 | |||||||||||
190 | To bal b/d |
Q.46 (b) Show necessary entries to adjust the following on 31st December, 2017.
(i) Outstanding salaries Rs. 1,200
(ii) Outstanding rent Rs. 300
(iii) Prepaid insurance premium Rs. 450
(iv) Interest on investments accrued Rs. 400
(v) Bad debts written off Rs. 200
Adjusting Entries
Date | Particulars | LF | Debit (Rs.) | Credit (Rs.) |
---|---|---|---|---|
2017 | ||||
Dec. 31 | Salaries A/c Dr | 1200 | ||
To Outstanding salaries A/c | 1200 | |||
(Salaries outstanding provided) | ||||
Dec. 31 | Rent A/c Dr | 300 | ||
To Outstanding rent A/c | 300 | |||
(Provided for rent outstanding) | ||||
Dec. 31 | Prepaid insurance premium A/c Dr | 450 | ||
To Insurance premium A/c | 450 | |||
(Insurance prepaid) | ||||
Dec. 31 | Accrued Interest on investment A/c Dr | 400 | ||
To Interest on investment A/c | 400 | |||
(Provided for interest accrued | ||||
Dec. 31 | Bad debts A/c Dr | 200 | ||
To Sundry debtors A/c | 200 | |||
(Bad debts written off) |
Q.47. (a) The following balances are extracted from the books of Ravichandran on 31st December, 2016. Prepare the trial balance.
Rs. | Rs. | ||
Capital | 1,50,000 | Sales | 75,000 |
Debtors | 22,800 | Return inwards | 1,000 |
Rent received | 500 | Discount allowed | 800 |
Bank overdraft | 3,100 | Discount received | 1,000 |
Creditors | 5,500 | Wages | 2,900 |
Premises | 1,46,000 | Salaries | 3,500 |
Opening stock | 10,000 | Commission paid | 1,100 |
Purchases | 45,000 | General expenses | 2,000 |
In the books of Ravichandran
Trial Balance as on 31st December, 2016
Name of Account | LF | Debit balance (Rs.) | Credit balance (Rs.) |
---|---|---|---|
Capital | 1,50,000 | ||
Debtors | 22,800 | ||
Rent received | 500 | ||
Bank overdraft | 3,100 | ||
Creditors | 5,500 | ||
Premises | 1,46,000 | ||
Opening stock | 10,000 | ||
Purchases | 45,000 | ||
Sales | 75,000 | ||
Return inwards | 1,000 | ||
Discount allowed | 800 | ||
Discount received | 1,000 | ||
Wages | 2,900 | ||
Salaries | 3,500 | ||
Commission paid | 1,100 | ||
General expenses | 2,000 | ||
Total | 235100 | 235100 |
Q.47 (b) Prepare bank reconciliation statement from the following data and find out the balance as per cash book as on 31st March, 2018.
Particulars | Rs. |
---|---|
(i) Bank balance as per bank statement | 15,000 |
(ii) Cheques issued but not yet presented for payment | 2,500 |
(iii) Bank charges not recorded in the cash book | 250 |
(iv) Interest charged by bank not recorded in the cash book | 500 |
(v) Bank paid insurance premium as per standing instruction but not recorded in the cash book | 300 |
(vi) Cheques deposited but not yet credited | 900 |
Particulars | Amt | Amt |
---|---|---|
Balance as per bank statement | 15,000 | |
Add: | ||
Bank charges not recorded in the cash book | 250 | |
Interest charged by bank | 500 | |
Bank paid insurance premium as per standing instruction | 300 | |
Cheques deposited but not yet credited | 900 | 1,950 |
16,950 | ||
Less: | ||
Cheques issued but not yet presented for payment | 2500 | 2,500 |
Balance as per cash book | 14,450 |
Here are the answers for the Part I section in Set B Class XI Accountancy Exam Question Paper.
1. GAAPs are | |||
(a) Generally Accepted Accounting Principles | (b) Generally Accepted Accounting Provisions | (c) Generally Accepted Accounting Policies | (d) None of these |
Ans: (a) Generally Accepted Accounting Principles | |||
2. Who is considered to be the internal user of the financial information? | |||
(a) Customer | (b) Creditor | (c) Government | (d) Employee |
Ans: (d) Employee | |||
3. The difference in trial balance is taken to | |||
(a) The suspense account | (b) The capital account | (c) The profit and loss account | (d) The trading account |
Ans: (a) The suspense account | |||
4. Closing stock is an item of: | |||
(a) Fictitious asset | (b) Fixed asset | (c) Intangible asset | (d) Current asset |
Ans: (d) Current asset | |||
5. Customised accounting software is suitable for: | |||
(a) Large, medium business | (b)Large, Typical business | (c) Small conventional business | (d) None of the above |
Ans: (a) Large, medium business | |||
6. A bank reconciliation statement is prepared by | |||
(a) Debtor to the business | (b) Bank | (c) Creditor to the business | (d) Business |
Ans: (d) Business | |||
7. The source document or voucher used for recording entries in sales book is | |||
(a) Invoice | (b) Debit note | (c) Cash receipt | (d) Credit note |
Ans: (a) Invoice | |||
8. Balance sheet shows the ______ of the business. | |||
(a) Sales | (b) Profitability | (c) Purchases | (d) Financial position |
Ans: (d) Financial position | |||
9. The incorrect accounting equation is: | |||
(a) Liabilities = Assets + Capital | (b) Assets = Liabilities + Capital | (c) Capital = Assets – Liabilities | (d) Assets = Capital + Liabilities |
Ans: (a) Liabilities = Assets + Capital | |||
10. Depreciation is caused by: | |||
(a) Usage | (b) Obsolesence | (c) Lapse of time | (d) (a), (b) and (c) |
Ans: (d) (a), (b) and (c) | |||
11. Trading and profit and loss account is______ in nature. | |||
(a) Personal account | (b) Nominal account | (c) Representative Personal account | (d) Real account |
Ans: (b) Nominal account | |||
12. If the rate of depreciation is same, then the amount of depreciation under straight line method vis-à-vis written down value method will be | |||
(a) Equal in the first year but lower in subsequent years | (b) Equal in all years | (c) Lower in the first year but equal in subsequent years | (d) Equal in the first year but higher in subsequent years |
Ans: (d) Equal in the first year but higher in subsequent years | |||
13. Which one of the following is correctly matched? | |||
(a) Bad debt-creditor | (b) Depreciation - Trading account | (c) Indian Income Tax Act - 1961 | (d) Closing stock - Profit and loss account |
Ans: (c) Indian Income Tax Act - 1961 | |||
14. The process of allocating the cost of an intangible asset over a period of time is called: | |||
(a) Profit and loss account | (b) Amortisation | (c) Provision for depreciation | (d) Annual depreciation |
Ans: (b) Amortisation | |||
15. If there is no existing provision for doubtful debts, provision created for doubtful debts is | |||
(a) Credited to bad debts account | (b) Debited to bad debts account | (c) Debited to profit and loss account | (d) Debited to sundry debtors account |
Ans: (c) Debited to profit and loss account | |||
16. Small payments are recorded in a book called | |||
(a) Bills payable book | (b) Cash book | (c) Petty cash book | (d) Purchases book |
Ans: (c) Petty cash book | |||
17. The concept which assumes that a business will last indefinitely is: | |||
(a) Periodicity | (b) Business Entity | (c) Conservatism | (d) Going concern |
Ans: (d) Going concern | |||
18. The Trial balance contains the balances of: |
|||
(a) Only nominal accounts | (b) Only personal accounts | (c) All accounts | (d) Only Real accounts |
Ans: (c) All accounts | |||
19. A bank statement is a copy of | |||
(a) A customer’s account in the bank’s book | (b) Cash column of the cash book | (c) Cheques issued by the business | (d) Bank column of the cash book |
Ans: (a) A customer’s account in the bank’s book | |||
20. The process of transferring the debit and credit items from Journal to Ledger accounts is called: | |||
(a) Journalising | (b) Casting | (c) Balancing | (d) Posting |
Ans: (d) Posting |
Students, if you have any clarifications or questions, please write to us in the comments section.
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