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DELHI PUBLIC SCHOOL, CHANDIGARH

Which convention suggested that all natural information should be disclosed in the preparation of final accounts? (1) Name the different kind of accounts under modern system of accounting? What do you mean by source document? Explain the term Marshalling in context of Balance Sheet. Explain an objective of Accounting. Balance c/d at the time of balancing the account is written on which side. (1) (1) (1) (1)

What will be the accounting treatment of endorsement of cheque in Cash Book? (1) What do you mean by capital expenditure? Give one example also. (1) (1)

Prepaid salaries on December 31,2009

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Prepaid salaries on December 31,2008

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In 2009, the actual salaries paid amounted to Rs 20,000. Ascertain the amount chargeable to Income and Expenditure Account for the year ending December 31, 2009 from the following additional information: (3) Rs 2,400 Rs 1,200 Rs 1,800 Rs 1,500 (5)

Outstanding salaries on December 31,2008 Outstanding salaries on December 31,2009 11. 12.

What do you mean by business entity and money measurement concept? A started a business of a small printing press on April 1, 2007 with a capital of Rs 75,000. A did not maintain his books on double entry system. During the year he introdouced additional capital of Rs 22,500. He also withdrawn Rs 15,000 for his private use On March 31st ,2008, his assets and liabilities were s follows:

Creditors Rs 1,35,000 ; Debtors Rs 1,88,400 ; Stock Rs 37,125 ; Cash Rs 37,740 ; Calculate profit or loss made by A during the year. 13. Journalize the following transactions: (a) (b) Mr. A who owes Rs.3000 become insolvent. Only 45% of the amount is realized Withdrew goods for domestic use Rs.500. (5)

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What are the advantages of computerized accounting system in modern business organisation. (3)

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(c)

Sold goods to Shyam of the list price Rs.1500 at a trade discount 10% and cash discount 2%. He issued cheque the same day after availing cash discount. (5) Mr. A started business with case Rs. 1,50,000 and Building Rs. 2,00,000 .Purchased a car for Rs. 70,000. Rs. 10,000 paid in cash and rest of payment made through bank loan. Insurance paid Rs. 2000; out of which Rs. 500 belongs to next year. Goods worth Rs. 30,000 purchased out of which Rs. 14000 was on credit. Goods costing Rs. 5000 sold for Rs. 4900. (5)

14.

Prepare the accounting equation with the help of following transactions: (a) (b) (c) (d) (e)

15.

Enter the following transactions in the Two Column Cash Book with Cash and Bank Column. (6) 2004 June 1 June 3 June 5 June 7 June 11 June 16 Cash in hand Rs 9,500 Bank overdraft Rs 1,000

Payment by cheque for household expenses Rs 3,000

(b) (c) (d) (e) 17.

Cheque issued Rs 5000 in the month of December, out of these cheques of Rs 300 paid by the bank in the first week of January. Cheque deposited in the bank but wrongly entered in cash column of cash book for Rs 2,05 Bank charges recorded twice in cash book Rs 30. Cheque received was sent to bank for collection but not yet credited Rs 920. (6)

Motia Ltd., purchased a machine for Rs. 30,000 on January, 2009. An additional machinery was purchased on July 1,2010, costing Rs. 25,000. On 31st March, 2011, one of the original machines which had cost Rs. 15000 on January 1, 2009 obsolete so was sold for Rs. 12500. On the same date a new machine was purchased for Rs. 6,000. You are required to draw up Machinery Account for three years if company closes its books of accounts on 31st December, each year and charges depreciation @10% p.a. on the basis of Reducing Instalment method. (6)

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(a)

Debit balance as per cash book Rs 3,800

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16.

From the following particulars, prepare a Bank-Reconciliation Statement and ascertain the balance as per pass Book on 31st December in the books of Ramesh:

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Cheque of shyam dishonoured by bank; bank debited our account with Rs 20 as dishonoured charges

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Cheque received from shyam Rs 4500

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Honoured our own acceptance by cash Rs 1,000 and cheque Rs 2,000

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Discounted a bill of exchange at 2% through bank Rs 15,000

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18.

A) Ls acceptance given to M FOR Rs 8,000 was discounted with bank for Rs 7,900 has been dishonoured. Noting charges were paid Rs 160. L pays the amount due to M. Journalise the above in the books of M. B) Ps acceptance in favour of Q was endorsed for Rs 9,000 to R was dishonoured. R paid noting charges Rs 190. Journalise the transactions in the books of Q. (6)

19.

Rectify the following errors: a. b. c. d. e. f. Rs 5,000 received from a customer as an advance against order was credited to sales account. Payment of Rs 300 made to Shivani and Rs 500 to Shiv was debited with Rs 300 and Rs 500 reapectively. A piece of furniture purchased for Rs 4,500 for personal use was entered in the purchase book The sales book was overcast to Rs 300. Purchase of a table for Rs 354 from Ram for Rs 354 has been recorded in purchase book as Rs 345. A bill receivable of Rs 770 received from Umar entered through bills payable book. (6)

Debit Balances Drawings Sundry Debtors Interest on loan Cash-in Hand Stock on 1st April, 2006 Motor vehicles Cash at Bank Bad Debts Purchases Sales Returns Carriage Outward Carriage Inward Salaries

Rs. Debit Balances (Contd.) 3,000 Rates, Taxes and Insurance 300 General Expenses

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20.

On 31st March, 2007 the following Trial Balance was extracted from the books of a merchant: Rs. 2,891 3,264 3,489 6,882

20,100 Advertising

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10,000 Capital 3,555 Sundry Creditors 12,000 Loan on Mortgage 525 Provision for Doubtful Debts 66,458 Sales 7,821 Purchases Returns 2,404 Discounts 2,929 Bills Payable 9,097 Rent Received

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2,050 Bills Receivable 6,839 Credit Balances

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28,000 10,401 9,500 710 1,10,243 1,346 540 2,614 250

Land and Buildings

Prepare the Trading and Profit and Loss Account for the year ended 31st March, 2007 and balance Sheet as on that date after following adjustments

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(a) (b) (c) (d)

Stock in hand on 31st March, 2007, was valued at Rs. 6,250/-. (Market price Rs. 8500/-) Provision for doubtful debts to be maintained @5%. Rent receivable during the year Rs 100. Depreciate building at 10% p.a. OR

On March 31st,2009, the following balances was extracted from the books of Raghav Debit Balance Sundry debtor Drawings Bill Receivable Interest on loan Cash at bank Motor van Stock Cash in hand Land & Building General expenses Advertising Rent, rates, taxes & insurance Salaries Bad debts Purchases Carriage Carriage outwards Rs. 20100 3000 6882 300 3555 10000 6839 2050 12000 3489 3264 2891 9097 Credit Balance Capital Loan on mortgage Rent received Sales Discount received Sundry creditors Return outward Rs 28000 9500 250 540 110243 10401 710 1346 2614

Bad debts reserve

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Return inwards

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525 66458 7821 2929 2404 163604 163604
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Prepare trading and profit and loss account for the year ending 31st March,2009 and balance sheet as on that date after making the following adjustments: (a) (b) (c) Closing stock was valued at Rs. 6250 ( market value = Rs 7500) Depreciate Land & Building at 2% and motor van at 20%. Salaries Rs 750 and rates Rs 350 are outstanding.

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Bills payable

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(d) (e) (f) (g) 21.

Goods costing Rs 1000 were taken by the proprietor for private use, has not been recorded in the books Further Bad debts amounted to Rs 1100 and provision for doubtful maintained at 5% on debtors. Provide interest on loan on mortgage 6% p.a. for 6 months Provide for managers commission at 10% on net profit after charging such commission. (8)

Following is the Receipts & Payments Account of the City Club for the year ended 31st March, 2007. Receipts To Balance b/d To Subscriptions 2005-06 2006-07 2007-08 To Sale of Scrap To Interest on Sports Fund Investment 500 15,000 1,000 12,000 200 2,000 Rs. Payments 5,000 By Affiliation Fee to the Pradesh Club By Furniture (Oct 1) By Sports Expenses 16,500 By Balance c/d Rs. 1,000 3,000 2,500 15,200 14,000

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35,700

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To Life Membership fees

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By Sundry Expenses

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On April 1, 2006, the clubs assets and liabilities included Furniture Rs. 2,000; Sports Fund and 10% Sports Fund Investments Rs. 30,000 each. Provide depreciation on Furniture at 20% p.a. and prepare Income & Expenditure Account for the year ended March 31, 2007 and Balance Sheet of the Club as at that date. (8)

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The club has 1600 members, each paying annual subscription of Rs. 10. Subscription of Rs. 450 is still in arrears for 2006-07.

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35,700

OR From the following Receipt and Payment Account of Harimohan Charitable Institution, prepare Income and Expenditure Account for the period ending: Receipts Balance b/d Cash at bank Donation Subscription Endowment fund Amount Payments 22,000 Furniture 8,800 Investment 32,000 Advance for building 50,200 charities 60,000 Salaries Amount 3,000 55,000 20,000 60,000 10,400

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Legacies Interest on investment Interest on deposits Sale of old newspaper

24,000 Rent and taxes 3,800 Printing 800 Postage 500 Advertisements Insurance Cash at bank Cash in hand 2,02,100

4,000 1,000 300 1,100 4,800 32,000 10,500 2,02,100

Following adjustments are to be considered: (a) (b) (c) It was decided to treat 50% of the amount received on account of legacies and donations as revenue income. Liabilities to be provided for are: Rent Rs 1600; Salaries Rs 2,400 ; advertisement Rs 400.

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Rs 4,000 due for interest on investment was not actually received.

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(8)

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