MAHARISHI VIDYA MANDIR GROUP OF SCHOOLS

CLASS: XI ANNUAL EXAMINATION

DURATION :3 HOURS MARKS: 80
01/03/2024
ACCOUNTANCY (055) – SET 1 (AK)
General Instruction:-
1. This question paper contains 34 questions.
2. Questions 1-20 carry 1 mark each
3. Question 21-26 carry 3 marks each
4. Question 27-29 carry 4 marks each.
5. Question 30-34 carry 6 marks each.

SECTION A (20 X 1 MARK = 20 MARKS)

1. D. Decrease Motor vehicle by ₹5,000 and decrease capital by ₹5,000.
2. A. Debit of Irfan’s A/c and credit of sales A/c
3. B. Goodwill
4. B. Recorded in the debit side of bank column
5.B. Journalising
6. Consistency
7. (a) IGST
8.A. Assertion and Reason are correct, and Reason is the correct explanation of Assertion.
9. (c) ₹ 800 (Dr.)
10. A. Capital expenditure.
11. a) Loss
12. C. (i) internal; (ii) external
13. (D) Debit side at ₹ 19,000
14. Differed Revenue Expenditure
15. (C) ₹ 14,600
16. d) Information should be presented in qualitative terms.
17. b) Rs 400000 ( Net profit + Non operating incomes - Non operating Expenses)
18. (C) Cash-Stock-Furniture-Machinery-Building
19. Error of Principle
20. (B) Reliable

SECTION B (6 X 3 MARK = 18 MARKS)

21. Only item No. (i) will affect the trial balance because it is error of posting
in one account. Item
No. (ii), (iii) and (iv) will not affect the trial balance because these are errors
of principle.]
Or

One Sided Errors

Journal
Dat Particulars L.F Debit Amount (Rs) Credit Amount (Rs)
e .
i) Supplier’s Dr. 891
A/c
To 891
Suspense
A/c
(Goods
purchased of Rs
99 on credit
posted to the
credit side of
Supplier’s
Account as Rs
990)

ii) Suspense Dr. 75

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 A/c
To 75
Discount
Received
A/c
(Discount
received from a
creditor omitted
to be posted to
Discount
Account)

iii) Sales A/c 1,400

To 1,400
Furniture
A/c
(Sale of
furniture
recorded in
Sales Book)

22.
Trial Balance
as on March 31
S.No. List of Items Debit Credit
Balances Balances
1 Capital - 8,000
2 Bad Debts - 250
Recovered
3 Creditors - 1,250
4 Returns - 350
Outward
5 Bank Overdraft - 1,570
6 Rent 360 -
7 Salaries 850 -
8 Trade Expenses 300 -
9 Cash in Hand 210 -
10 Opening Stock 2,450 -
11 Purchases 11,870 -
12 Debtors 7,580 -
13 Bank Deposits 2,750 -
14 Discount 40 -
Allowed
15 Drawings 600 -
16 Returns Inward 450 -
17 Sales - 13,690
18 Bills Payable - 1,350
19 Grants - 1,000
Received
Total 27,460 27,460

S. Assets = Liabilities + Capital

No Transactions Cash Stock O/s Expenses
+ ( `)
. ( `) ( `) ( `)

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(a) Started business with 1,20,000 + = + 1,20,000
cash
1,20,000 + = + 1,20,000
(b) Purchased goods for -10,000 +10,00 =
cash 0
1,10,000 + 10,000 = + 1,20,000
(c) Rent Received +5,000 +5,000
1,15,000 + 10,000 = + 1,25,000
(d) Salary outstanding +2,000 -2,000
1,15,000 + 10,000 = 2,000 + 1,23,000
(e) Sold goods for cash +7,000 -5,000 +2,000
(costing `5,000) ` 7,0
00
1,22,000 + 5,000 = 2,000 + 1,25,000
(f) Goods destroyed by -500 = -500
fire
1,22,000 + 4,500 = 2,000 1,24,500

23.

24. Going Concern Assumption: This concept assumes that an enterprise has an
indefinite life or existence. It is assumed that the business has neither intention to
liquidate nor to scale down its operations significantly.
Relevance:
(a) Distinction is made between capital expenditure and revenue expenditure.
(b) Classification of assets and liabilities into current and non-current.
(c)Depreciation is charged on fixed assets and fixed assets appear in the Balance
Sheet at book value, without having reference to their market value.
2. Consistency Assumption: According to this assumption, accounting practices
once selected and adopted, should be applied consistently year after year. This will
ensure a meaningful study of the performance of the business for a number of
years.
Consistency assumption does not mean that particular practices, once adopted,
cannot be changed. The only requirement is that when a change is desirable, it
should be fully disclosed in the financial statements along with its effect on income
statement and Balance Sheet.
Any accounting practice may be changed if the law or Accounting standard requires
so, to make the financial information more meaningful and transparent.
Relevance: It helps the management in decision-making by utilizing the
comparable financial information.

25. (i) Fixed Assets=Land+Plant+Furniture+Goodwill

=20,000+32,000+8,000+20,000=Rs 80,000

(ii) Current Assets=Stock+Debtors+Prepaid Expenses

=48,000+36,000+400=Rs 84,400

(iii) Working Capital=Current Assets−Current Liabilities

=84,400−51,000=Rs 33,400
OR
(a) Asset side (b) Dr of P/L (c) Asset side
(d) Dr of P/L ( e ) Liability (f)Asset side

26.
Statement of Profit or Loss
for the year ended March 31, 2014

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 Particulars Amount
(Rs)
Capital at the end of the year (60,00,000 – 57,00,00
3,00,000) 0
Add: Drawings made during the year 1,65,000
(10,000 × 3 + 15,000 × 9)
Less: Additional capital introduced during 76,000
the year (WN)
Adjusted capital at the end of the year 57,89,00
0
Less: Capital in the beginning of the year 50,00,00
0
Profit made during the year 7,89,00
0

SECTION C (3 X 4 MARK = 12 MARKS)

27.

28.

Journal
Debit Credit
S. No. Particulars L.F.
(`) (`)
2022
March 31 Accrued Interest A/c Dr. 2,500
To Interest A/c 2,500
(Interest accrued)

March 31 Prepaid Insurance A/c Dr. 1,500

To Insurance A/c 1,500
(Insurance paid in advance)

March 31 Manager’s Commission A/c Dr. 6,000

To Manager’s Commission Payable A/c 6,000
(Manager Commission Charged on Net Profit)

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 Note: Manager’s Commission=1,06,000×6/106

March 31 Interest on Loan A/c Dr. 10,125

To Interest Outstanding A/c 10,125
(Interest on Loan Outstanding for 9 months)
Note: Interest on Loan=1,05,000×9×9/100×12
OR

Journal
Debit Credit
Sr. No. Particulars L.F.
` `

(i) Cash A/c Dr. 7,500

Bad Debts A/c Dr. 2,500
To Shyam’s A/c 10,000
(Insolvency of Shyam with 75 paisa in a rupee
recoverable)

(ii) Cash A/c Dr. 5,000

To Bad Debts Recovered A/c 5,000
(Amount written off as bad debts recovered)

(iii) Rent A/c Dr. 8,000

To Outstanding Rent A/c 8,000
(Rent due to landlord)

( iv) Sanjay Dr. 3,888

To Sales A/c 3,888
(Supplied goods costing 3,600 to Sanjay. Issued
invoice at 20% above Cost less 10% Trade
Discount.)

29.
Returns Inward Book
Credit
Details
Date Particulars Note L.F. (`)
(`)
No
2022
March Mathur Bros., New Delhi
01
5 pairs of Shoes @ ` 2,000 per pair 10,000
Less: 10% Trade Discount (1,000)
9,000 9,000

March Baluja Shoes Co., Delhi

12
12 pairs of Ladies Chappals @ ` 4,000 48,000
per pair
Less: 10% Trade Discount (4,800)
43,200 43,200
March Returns Inward Book A/c 52,200
31

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 Returns Outward Book
Debit
Details Cost
Date Particulars Note L.F.
(`) (`)
No
2022
March Kanpur Leather Private Ltd., Kanpur
05
100 pairs of Chappals @ ` 300 per pair 30,000
Less: 15% Trade Discount (4,500)
25,500 25,500

March Bata Shoes Pvt. Ltd., Mumbai

20
100 pairs B.S.C Canvas Shoes @ ` 500 50,000
per pair
Less: 15% Trade Discount (7,500)
42,500 42,500
March Return Outward A/c Cr. 68,000
31

SECTION D (5 X 6 MARK = 30 MARKS)

30. One Sided Errors

Journal
Dat L.F
Particulars Debit Amount (Rs) Credit Amount (Rs)
e .
a) Suspense Dr. 800
A/c
To Sales 800
Return A/c
(Overcastin
g of Sales
Return
Book)

b) Sahu’s A/c Dr. 2,000

To 2,000
Suspense
A/c
(Goods returned
to Sahu omitted
to be posted)

c) Purchases Dr. 4,000

A/c
To Narula’s 4,000
A/c
(Goods
purchased from
Narula omitted
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 to be recorded)

d) Machinery Dr. 500

A/c
To Sundry 50
Expenses
A/c
To 450
Suspense
A/c
(Installation
charges on new
machinery
debited tp
Sundry Expenses
Account)

e) Drawings Dr. 1,400

A/c
To Rent A/c 1,000
To 400
Suspense
A/c
(Rent paid for
residential
accommodation
of proprietor
debited to Rent
Account)

Suspense Account
Dr Cr.
.
Particulars Amount (Rs) Particulars Amount (Rs)
Difference as per
Trial Balance 2,050 Sahu’s A/c 2,000
(Balancing Figure)
Sales Return A/c 800 Machinery A/c 450
Drawings A/c 400
2,850 2,850

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31.

32.
Machinery Account
Dr. Cr.
J.F
Date Particulars (Rs) Date Particulars J.F. (Rs)
.
2018 2019
July 01 Bank Mar.31 Depreciation
I(2/3) 20,000 I(2/3) 1,500
2019 I(1/3) 10,000 30,000 I(1/3) 750
Jan.01 Bank (II) 20,000 II 500 2,750
Mar.31 Balance c/d
I(2/3) 18,500
I(1/3) 9,250
II 19,500 47,250
50,000 50,000
2019 2020
Apr 01 Balance b/d Mar 31 Depreciation
I(2/3) 18,500 I(2/3) 1,850
I(1/3) 9,250 I(1/3) 925
II 19,500 47,250 II 1,950
Oct 01 Bank (III) 10,000 III 500 5,225
Mar 31 Balance c/d
I(2/3) 16,650
I(1/3) 8,325
II 17,550
III 9,500 52,025
57,250 57,250
2020 2020
Apr.01 Balance b/d Apr.01 Bank (I)(1/3) 3,000
I(2/3) 16,650 Apr.01 Profit and Loss (Loss) 5,325
I(1/3) 8,325 Mar.31, Depreciation
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 II 17,550 2021 I(2/3) 1,665
III 9,500 52,025 II 1,755
III 950 4,370
Mar.31 Balance c/d
I(2/3) 14,985
II 15,795
III 8,550 39,330
52,025 52,025

33.
Profit and Loss Account
for the year ended March 31, 2019
Dr. Cr
.
Particulars Amount (₹) Particulars Amount (₹)
Depreciation: Gross Profit 1,06,980
Interest on
Land & Building 50,000 6,400
Securities
Plant & Discount
18,680 68,680 420
Machinery Received
Insurance 2,800
Less: Prepaid 700 2,100
Old Bad Debts –
Add: New Bad 2,000
Debts
Add: New 690
Provision
Less: Old – 2,690
Provision
Postage 500
Trade Expenses 1,000
Salaries 8,000
Repairs to Machinery 1,400
Discount Allowed 1,500
Net Profit (Balancing 27,930
Figure)
1,13,800 1,13,800

Balance Sheet
as on March 31, 2019
Amount Amount
Liabilities Assets
(₹) (₹)
13,47,6
Capital Fixed Assets
00
Add : Net Profit 27,930 Plant & 1,82,00
Machinery 0
Less: Drawings 5,600 13,69,93
Add: Wages 4,800
0
Less: Dep. 18,680 1,68,120
Land & 10,00,0
Building 00

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 Less: Dep. 50,000 9,50,000

Current Current
Liabilities Assets

Creditors 40,000 Closing Stock 19,000

Bills Payable 4,000 Securities 6,00,000
X’s Loan 18,600 Prepaid Insurance 700
Bank Overdraft 3,40,000 Bills Receivable 7,000
Loan 11,000 Debtors 15,800
Less: Bad
2,000
debts
Less:
690 13,110
Provision
Cash in Hand 25,600
17,83,53 17,83,53
0 0

Or
Profit and Loss Account
for the year ended March 31, 2019
Dr Cr.
.
Amount (₹ Amount (₹
Particulars Particulars
) )
Depreciation: Gross Profit 2,66,750
Plant & 30,00 4,00
Commission
Machinery 0 0
30,00 Less: Unearne 1,20
Motor Vehicle 60,000 2,800
0 d 0
Salaries & 24,00 Provision for
Wages 0 Doubtful
Debts
Add: Outstandin 4,800 28,800 (Old Provision - New
5,305
g Provision)
Old Bad Debts 4,250
Add: Further 500 4,750
Bad Debts
Trade Expenses 2,500
Rent, Rates and Taxes 12,000
Net Profit (Balancing 1,66,805
Figure)
2,74,855 2,74,855

Balance Sheet
as on March 31, 2019
Liabilities Amount Assets Amount
(₹) (₹)
Capital 3,25,000 Fixed Assets
Add : Net Profit 1,66,805 Plant & 2,00,000
Machine
ry
Less: Drawings 15,000 4,76,805 Less: 30,000 1,70,000
Dep.

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 Motor 1,50,000
Vehicle
Less: 30,000 1,20,000
Dep.

Current Liabilities Current Assets

Creditors 55,000 Closing Stock 1,12,500
Outstanding Salaries and 4,800 Debtors 70,000
Wages
Unearned Commission 1,200 Less: Bad 500
Debts
Less: 695 68,805
Provision
for Bad
Debts
Cash in Hand 16,500
Cash at Bank 50,000
5,37,80 5,37,805
5

34.
Statement of Affairs
as on March …
Liabilities Amount (Rs) Assets Amount (Rs)
Loan from 1,00,000 Cash in Hand 15,400
Brother
Creditors 1,40,000 Furniture 40,000
Bank Sundry Debtors 2,20,000
40,000
Overdraft
Capital Less: Bad Debts 5,000 2,15,000
(Balancing 4,40,400
Figure)
Stock 4,50,000
7,20,400 7,20,400

Statement of Profit or Loss

for the year ended March 31, 2015
Amount
Particulars
(Rs)
Capital at the end of the year 4,40,400
Add: Drawings made during the year
(2,000 × 52) + (4,000) 1,08,000
Less: Additional capital introduced during
the year 80,000
Adjusted capital at the end of the year 4,68,400
Less: Capital in the beginning of the year 5,00,000
Loss incurred during the year 31,600

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