SAMPLE QUESTION PAPER

IN
ACCOUNTANCY
Time : Three Hours Maximum Marks: 100
Note : The question paper is divided into two sections A and B. Attempt all questions of Section
A and five questions of one part of Section B.
SECTION A
1. What is a Trial Balance? 1
2. State the meaning of sacrificing ratio. 1
3. What is meant by over subscription of shares of a company? 1
4. Give any two objectives of financial accounting. 2
5. Cash Book always shows a debit balance Give your opinion. 2
6. Give any two differences between manual accounting and computerized
accounting. 2
7. Distinguish between capital Expenditure and Revenue Expenditure on the basis
of : 2
(a) Purpose
(b) Earning Capacity
8. Explain the following items of revenue of a Not for Profit Organization: 2
(a) Legacy
(b) Entrance fees
9. A partnership firm does not have a partnership deed; How will you deal with the following
problems that have arisen in your business:
(a) One of the partners claim interest on the amount of his capital which is in excess of
the capital amounts of other partner.
(b) Another partner claims interest on Drawings 2
10. Accounting equation remains intact under all circumstances. Justify the statement with
the help of an example. 4
11. State the meaning of the following accountmg concepts/conventions with two examples
each.
(a) Business Entity concept
(b) Consistency convention 4
12. Name and give the meaning of any four special purpose Books. 4
13. What is an accounting voucher? State the meaning of various types of accounting
vouchers. 4
14. On a particular date the bank balance shown by the Bank Column Cash Book of a businessman
should be equal to the balance shown by the Pass-Book Statement issued by the bank. Justify
the statement by giving examples. 4
15. Harish, Jagdish and Manish are partners in a firm sharing profits equally. On lst June Harish
dies. His executor is entitled for the followings :
Capital balance, share in General Reserve, share of goodwill, profit till date of death from
the date of the last balance sheet.
Accounts are closed on 31st March every year. On the date of death his capital balance was
Rs. 45000 General Reserve was Rs. 2000, Goodwill was to be calculated on the basis of
twice for the average of last three years profits. The average profit of the firm was Rs. 20000.
Profit for the months of May and June is calculated on the basis of average profits. Interest
on capital is allowed @9% pa. Drawings of Harish of the two months proceeding his death
amounted to Rs. 5400.
Prepare capital Account of Harish to be rendered to his executors. 4
16. A company has issued shares to the public. One shareholder holding 500 shares has not
paid the call money after repeated reminders. What is the option with the company? How
can the company make up the deficiency of the capital of these shares? In case company
gets amount in excess of the deficiency where would this amount will be transferred? 4
17. A friend of yours who is a social worker and runs a NGO which is working for AIDs
awareness and counselling HIV patients so they can lead a normal life. One of the main
source of revenue of the NGO is subscription, the details of which are given below. Calculate
the amount for subscription of this NGO for the year 2006.
Rs.
Total Subscription received during the year 2006 70,500
Subscription outstanding as on 1. 1.2006 2000
Subscription Received in advance in 2005 for 2006 6,000
Subscription outstanding as on 31.12.2006 3,000
Subscription Received in advance in 2006 for 2007 1,000 4
18. S.V. Ltd. appointed Mr. Sumit as an Accountant. The Company had already issued
Debentures Rs. 10,00,000 at a discount of 6% on January 1, 2002. Debentures are to be
redeemable at par as per following schedule:
Rs.
at end of 2003 4,00,000
at end of 2004 2,00,000
at end of 2005 2,00,000
at end of 2006 2,00,000
The Accountant has been asked to find out the amount off discount to be written of every
year on issue of Debentures 6
19. M. Oil Ltd. issued 30,000 equity shares of Rs. 100 each at a discount of Rs. 10 per share
payable as under :
On Application Rs. 30 per share
On Allotment Rs. 30 (Per Share Rs. 40 discount Rs. 10 = 30
On First call Rs. 15 per share
On Second call Rs. 15 per share
Applications were received for 45000 shares. Allotment was made on 40000 shares on
prorata basis. Application of 5000 shares rejected and amount refunded to applicants. Excess
Application money was adjusted against the amount due on Allotment. Naresh, to whom
300 shares were allotted, failed to pay the allotment and calls money. These shares were
subsequently forfeited after the second call was made. All the shares forfeited and reissued
to Bhim as fully paid up at Rs. 95 per share. Record Journal entries in the Books of the
Company. 6
20. Prepare trial balance from the following balances of accounts from the ledger of Pranaya
on 31st December, 2006.
Rs
Cash 1200
Bills Receivable 4500
Debtors 6000
Salary 1200
Stock 5400
Purchases 22800
Sales 32600
Selling expenses 1200
Creditors 2700
Capital 10000
Furniture 3000 6
21. From the following Trial Balance of Jindal Traders, prepare Trading and Profit & Loss
Account for the year ending December 31, 2006 and Balance sheet as on that date:
Dr. Balance Rs. Cr. Balance Rs.
Land & Building 60,000 Capital 96,000
Plant and Machinery 33,000 Sundry Creditors 15,000
Stock 12,000 Sales 60,000
Investment 15,000 Provision for B/d Doubtful Debts 1100
Purchases 45000 Loan 20,000
Wages 2000 Rent Received in advance 1,000
Carriage 2000 Commission Received 3,000
Salary 5000 Bills payable 15,000
Rent 2,000
Cash at Bank 3000
Sundry Debtors 30,000
Discount 300
Bad Debt 500
Sales Returns 1300
211100 211100
Additional Information valued
1. Closing stock valued at Rs. 12,000.
2. Bad Debt 500 and Provision for Bad & Doubtful Debts at 5%.
3. Salary outstanding Rs. 1000.
4. Commission Received in advance 1,000.
5. Depreciate Machinery @ 3% & land and Builders @ 2%. 10
OR
From the following Receipts and Payments and information given below, Prepare Income
and Expenditure Account and opening Balance Sheet of Adult literacy organization as on
31st December 2006.
Receipts and Payments Account as on 30 December 2006
Receipts Amount Payments Amount
Rs. Rs.
Balance b/d General Expenses 6,400
Cash in hand 8,000 Newspaper 6,400
Cash at Bank 31,100 Electricity 3,700
Subscriptions Fixed Deposit with bank on
2005 2,400 30.06.2006)@10% p.a. 36,000
2006 53,000 Books 14,000
2007 1,000 56,000 Salary 7,200
Sales of old newspaper 2,500 Rent 13,000
Govt. grant 24,000 Postage charges 600
Sale of old furniture 7,400 Furniture (Purchased) 21,000
Book value Rs (10,000) Balance c/d
Interest received on FD 900 Cash in hand 6,000
Cash at bank 16,400
1,30,000 1,30,000
Additional Information:
(i) Subscription outstanding as on 31.12.2005 Rs. 4,000 and On. 31.12.2006 Rs. 3,000
(ii) On 31st December 2006 Salary outstanding Rs. 1,200, and one month Rent paid in
advance.
(iii) On 01.01.2005 organiation owned Furniture Rs. 24,000, and Books Rs. 10,000
22. Rohit; & Manu are partners sharing profit in the ratio of 3:2. They admitted Chirag as a
partner for 1/4th Lshare in profit. Chirag contributed Rs. 60,000 as his capital. The Balance
Sheet of Rohit and Manu as on 31st December, 2006 before admission was as follows :
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Sundry creditors 35000 Goodwill 20,000
Bill Payables 10,000 Building 60,000
Loan 25,000 Machinery 70000
General Reserve 10,000 Stock 25000
Capital : Sundry Debtors 42000
Rohit 1,00,000 Less Provision for b/d (2000) 40,000
Manu 80,000 1,80,000 Bill Receivables 15,000
Cash in hand 10,000
Cash at Bank 20,000
2,60,000 2,60,000
Other terms agreed upon were :
(a) He brings Rs. 30,000 for his share of goodwill, and half of Goodwill Amount
withdrawn by existing partners :
(b) Building was valued to be at Rs. 75,000 and Machinery at Rs. 60,000.
(c) 6% Provision for bad debts created on Debtors.
(d) A Liability for Rs. 2000 included in sundry creditor was not likely to be claimed.
Prepare Revaluation Account, partners capital Account and Balance Sheet of New
firm. 10
OR
Rahul, Vinod & Sonia were.partners sharing profit in the Ratio of 3:2:1, on Jan 1, 2006
their Balance Sheet was as follows :
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Sundry Creditors 23000 Cash at Bank 10,000
General Reserve 10,000 Debtors 30,000
Capital Stock 23,000
Rahul 60,000 Building 40,000
Vinod 40,000 Furniture 10,000
Sonia 20,000 120,000 Motor Car 40,000
153000 1,53,000
The firm was dissolved on that Date, Assets were realized as under :
Debtors Rs. 35,000
Stock Rs. 20,000
Furniture Rs. 9,000
Motor Car Rs. 36000
Building was taken over by Rahul at an agreed value of Rs. 45,000.
Sundry creditoryvere settled for Rs. 22000. There was an unrecorded Asset of Rs. 2700,
which was taken over by Vinod at Rs. 2500. Realization expenses amounted to Rs. 1500.
Prepare Realisaton Account, Cash/Bank Account and partnersCapital Account. 10
SECTION B
Attempt five questions of any one part of Section B.
PART I
23. How is management benefitted from the analysis of financial statements? 1
24. Give the formula of calculating the following ratios : (a) stock turnover ratio (b) Debt equity
ratio. 2
25. State any four tools of analysis of financial statements. 2
26. Bharti Ltd has a current ratio 4.5:1 and quick ratio 3:1. If the stock is Rs. 36,000. Calculate
the current liabilities and current assets. 4
27. From the following information of M/s Nitesh Computers Ltd, prepare Cash Flow Statement.
Balance Sheet of Hi-Life Tools Ltd.
as on March 31, 2004 and 2005
Liabilities 2004 2005 Assets 2004 2005
(Rs.) (Rs.) (Rs.) (Rs.)
Capital 2,50,000 3,50,000 Plant 2,50,000 3,50,000
Long term loan 3,00,000 2,00,000 Goodwill 1,50,000 1,00,000
Accumulated Profits 1,50,000 2,50,000 Stock 2,50,000 3,00,000
Creditors 3,00,000 4,50,000 Debtors 2,00,000 3,00,000
Cash at Bank 1,50,000 2,00,000
10,00,000 12,50,000 10,00,000 12,50,000
Additional information
Depreciation on Plant amounted to Rs. 30,000. 6
OR
Elementary Cost Accounting
PART II
23. Difference between cost accounting and financial accounting on the basis of accounting
system. 1
24. Calculate factory cost from the following details particulars:
Details Amount (Rs.)
Material consumed 80,000
Productive wages 30,000
Direct Expenses 7,000
Consumable stores 3,000
Oil grease 1,000
Salary of a factory manager 9,000
Unproductive wages 4,000
Factory rent 3,000
Repair & Depreciation on Machine 900 2
25. Name any four components of total cost. 2
26. A computer manufacturer purchases 5000 units of certain components for his annual usage.
The order placing cost is Rs. 100 and cost of carrying one unit for a year is Rs. 4. Calculate
the economic order quantity. 4
27. A firm maintains its stores ledger on first in first out (FIFO) method. During the month
of March 2006 the following receipts and issue of material~were made. Record these
transaction in the stores ledger.
Receipts.
March 2006
1. Balance 100 units @ 8 per unit
7. Purchase order No. 234, 400 units @ Rs. 10 per unit
16. Purchase order No. 249,600 units @ Rs. 12 per unit
Issues:
9 Material Requisition No. 76 350 units
18 Material Requisition No. 79 500 units
30 Shortage 10 Units 6
SAMPLE QUESTIONS PAPER
(ACCOUNTANCY)
MARKING SCHEME
SECTION A
Q.No. Value Points Distribution Total
of Marks Marks
1. Trial Balance is a statement which contains balances of all ledger accounts on a 1 1
particular date
2. Sacrificing ratio is the ratio in which the existing partners sacrifice 1 1
their share of profits in favour of incoming partner
3. Oversubscription of shares means receiving applications by a company 1 1
for more number of shares than the number of shares offered to the public
for subscription
4. Objectives of financial accounting
It provides knowledge of transactions as the books of accounts contain 1+1 2
details of every transaction.
The financial statements depict the financial position of business
5. Cash book contains amounts received in a particular period by a concern 2 2
on its debit side and the payments made during that period on the credit
side. Payments are made out of receipts (that includes opening balance
also) therefore payments cannot be more than receipts their cash
6. Any two differences
1. In manual accounting the recording of financial transactions is through 1+1 2
books of original entry while in computerised accounting the data
content of such transactions is stored in well designed data base.
2. In manual accounting system transactions recorded in the books of original
entry are further classified, while in computerised accounting no such
classification is required.
7. Basis Capital expenditure Revenue expenditure
Purpose It is incurred for acquiring It is incurred for the 1+1 2
fixed assets. maintenance of fixed asset.
Earning It increases the earning It helps in maintaining the
capacity capacity of business. earning capacity of the business.
8. (a) It is the amount which is received by organisations as per the will of a 1+1 2
deceased person. It is treated as a capital receipt.
(b) Entrance fees. It is the amount charged from a person when he is
admitted as a member of the organisation.
9. (a) As no interest on capitals of partners is allowed so partners claim 1+1 2
will be rejected.
(b) No interest can be charged on the drawings of partners
10. Assets, liabilities and capital are the three basic elements of every business
transaction. The relationship of these is expressed in the form of accounting
equation. The equation always remains equal. At any point of time there
can be change in the individual asset, liability or capital but the effect on
the accounting equation will be such that it will remain intact. This can be
made clear by the fallowing examples :
1. Minoo commenced business with cash Rs 10000
2. She purchased goods for cash Rs 6000
3. Purchased goods for Ramesh on credit 4000
1. Asset = Capital + Liabilities
10000 (cash) 1000 + Nil
2. (+) 6000 (Goods)
() 6000 (cash) 2 + 2 4
New equation 10000 = 10000 +
3. +4000 (Goods) + 4000 (Ramesh)
New equation 14000 = 10000 + 4000
4. Paid selling expenses Rs 200
4. 200 (cash) 200 (expenses) +
New Equation 13800 = 10000 + 3800
11. (a) Business entry concept : This concept assumes that for accounting
purpose the business enterprise and its owners are two separate
independent entities. Thus the business and personal transactions of
its owner are not mixed up 1 + 1 4
Sample Ram Krishan withdraws money of Rs 5000 from business for
domestic expenses. This amount is his private expense and not the
expense of business.
(b) Consistency convention : It means that same accounting principles 1+1
should be used for preparing financial statements year after year.
Example : to charge depreciation on Machinery diminishing value
method is used in one year. This very method should be used of in
the next years also.
12. Name of special purpose books
1. Purchases Book : It is a book prepared to record the credit purchases
of goods
2. Sales Book : It is a book prepared to record the credit sales of goods.
3. Purchases Return Book : It is a book to record the return of goods
purchased on credit tot he supplier.
4. Sales return Book. It is a book to record the goods return of good by
the customers sold on credit. 14 4
13. The documents that support the business transactions is called voucher.
It is the written proof of occurrence of business transactions.
Accounting vouchers can be of three types :
(a) Credit vouchers : These are the vouchers that are prepared to for
recording transactions involving cash receipts only. For example cash
sale of goods
(b) Debit vouchers. These are the vouchers that are prepared for recording
transactions involving cash payments only. For example purchase of
furniture for cash.
(c) Transfer vourchers : These are the vouchers that are prepared to record 14 4
non cash transactions of the business. For example, sold goods for
Rakesh on credit.
14. Every Businessman records all banking transactions in his bank column
cash book. Bank also maintains a corresponding accounting of this
businessman like of others the copy of which is the Bank Pass Book. So
the bank balance shown by the bank column cash Book of the business
man and shown by the pass Book issued by the bank or a particular date
should be the same. But sometimes it is not so. The two balance may
differ from each other. There can be many reasons as follows : 2+1+1 4
(a) Some cheques issued by the businessman might not have been
presented for payment by the date in question.
(b) There may be some cheques which have been deposited in the bank but
have not yet been collected and credited and there are other
reasons also.
15. Harish A/c
Dr Cr
Particulars Amount Particulars Amount
Drawings 5400 Balance b/d 45000
Harish executors A/c 55275 General Reserve 2000 8 4
Jagdish Goodwill 6000
Manish Goodwill 6000
Profit & Loss suspense A/c 1000
Interest on capital 675
60675 60675
Goodwill of the firm Rs 18000 2 = Rs 36000
Harishs share = Rs
36000
1
3

= Rs 12000
Profit for two months =
18000
12
2
= Rs 3000
Harishs share =
3000
1
3

= Rs 1000
16. Company can forfeit the shares 1
Company can reissue these share 1
The excess amount received after making good the deficiency company will 2 4
transfer it to capital Reserve A/c as it is a conjugated gain
Rs
17. Subscription Received during the year 70500
Add outstanding at the end of the year 3000 1
Add subscription received last year for current year 6000 1
79500
Less last years outstanding 2000 1
Subscription for the year 77500 4
18. Year ending Outstanding Ratio Discount
2003 1000000 5 18750
1000000 5 18750
2004 600000 3 11250
2005 40000 2 7500
2006 20000 1 3750
16 4 4
Amount discount = 1000000
6
100
= Rs 60000
19. Particulars Amount Amount
Rs Rs
Bank A/c Dr 1350000
To share Application A/c 1350000
(receipt of application money for 45000
shares @ Rs 30 per share)
Share Application A/c Dr 1350000
To Share Capital A/c 900000
To Bank A/c 150000
To Share Allotment A/c 300000
Adjustment of share Application amount
on allotment
Bank A/c Dr 594000
To Share Allotment A/c 594000
(Receipt of share allotment money
of ............ shares)
Share first call A/c Dr 450000
To Share Capital A/c 450000
Share first call money due.
Bank A/c Dr 445500
To Share First Call A/c 445500
(Receipt of first call money)
Share Second and Final call A/c Dr 450000
To Share Capital A/c 450000
(Share final call money due)
Bank A/c Dr 445500
To Share first and final call A/c 445500
(Receipt of share first and final call)
Share Capital A/c Dr 30000
To Discount issue of share A/c 3000
To Share forfeited A/c 12000
To Share Allotment A/c 6000
To Share first call A/c 4500
To Share final calls 4500
(Forfeiture of 300 shares for non-payment
of allotment and calls) 6 6
Working Note
Ratio in which shares are
Issued to applicant = 40000 : 30000
4 : 3
Excess Number of applications = 300
4
3
= 400
Excess application money = 100
Received = 100 30 = 13000
Allotment money due = 300 30 = 9000
Less excess application money adjusted = 9000 3000
Net allotment money due but not received 6000
20. Trial Balance of Pranaya
As on 31st December 2006
Particulars Amount Particulars Amount
Rs Rs
Cash 1200 Sales 32600
Bill Receivable 4500 Creditors 2700
Debtors 6000 Capital 10,000
Salary 1200
Stock 5400
Purchase 22800
Selling expenses 1200
Furniture 3000
45300 45300 6 6
21. Trading and Profit and Loss A/c
Particulars Amount Particulars Amount
Rs Rs
Opening stock 12000 Sales 60000
Purchases 45000 Less Returns 1300 58700
Wages 2000 Closing stock 12000
Carriage 2000
Gross profit 9700
70700 70700 2
Salary 5000 Gross profit 9700
+ o/s salary 1000 6000 Rent Received 1000
Rent 2000 Commission 3000
Bad Debts 500 Less : Advance 1000 2000
+ Earlier Bad Debts 500
+New provision 1475
old provision 1100 1375
Depreciation on
Machinery 990
Land & Building 1200 2190
Discount 300
Net profit 835
12700 12700 4
Balance Sheet as on December 31, 2006
Liabilities Amount Assets Amount
Rs Rs
Sundry creditor 15000 Land & Building 60000
Loan 20000 Depreciation 1200 58800
Bills Payable 15,000 Plant & Machinery 33000
Advance commission 1000 Depreciation 990 32010
Salary outstanding 1000 Investment 15,000
Capital 96000 Sundry Debtors 30000
Net Profit 835 F Bad debts 500
29500
96835 New provision 1475
Closing stock 28025
Cash at Bank 3000
148835 148835 4 10
OR
Income & Expenditure A/c
Expenditure Amount Income Amount
Rs Rs
Loss on sales of furniture 2600 Subscription 56400
General expenses 6400 Advance for 07 1000
Newspaper 6400 Opening o/s 4000
51400
Electricity 3700 + Closing o/s 4600 56000
Salary 7200 (1600 + 3000)
+ o/s salary 1200 8400 Sales of Newspaper 2500
Rent 13000 Govt grant 24000
Advance Rent 1000 12000 Interest on Fixed 900
Deposit
Postage 600 +O/s interest 900 1800
Surplus 44600
84300 84300 7
Balance Sheet as on Jan. 1, 2006
Liabilities Amount Assets Amount
Rs Rs
Capital fund 77100 Cash in hand 8000
(Balancing figure) Cash at Bank 31100
Outstanding subscription 4000
Furniture 24,000
Books 10,000
77100 77100 3 10
22. Revaluation A/c
Particulars Amount Particulars Amount
Rs Rs
Machinery 10,000 Building 15000
Provision for Bad Debt 520 S. creditor 2000
Profit transferred to capital A/c of
Rohit 3888
Manu 2592 6480
17000 17000 2
Capital A/c
Particulars Rohit Manu Chirag Particulars Rohit Manu Chirag
Goodwill 12000 8000 Balance b/d 100000 80000
Bank 9000 6000 Revaluation 3888 2592
Balance c/d 106888 84592 60000 General Reserve 6000 4000
Bank 60,000 2+2+1
Premium/ 18000 12000
Goodwill
127888 98592 60000 127888 98592 60000
Balance Sheet as on
Liabilities Amount Assets Amount
Rs Rs
S creditor 33000 Building 75000
Bills Payable 10000 Machinery 60000
Loan 25000 Stock 25000
Capital Sundry Debtors 42000
Rohit 106888 Provision b/d 2520 39480
Munu 84592 Bills receivable 15000
Chirag 60000 151480 Cash in hand 10000
Cash in Bank 95000
319480 319480 3 10
OR
Realisation A/c
Particulars Amount Particulars Amount
Rs Rs
Assets Sundry creditors 23000
Debtors 30000 Rahul capital A/c 45000
(Building)
Stock 23000 Banks :
Building 40000 Debtors 35000
Furniture 10000 Stock 20000
Motor car 40000 143000 Furniture 9000
Motor car 36000 100000
Banks : Vinod capital 2500
(unrecorded Asset)
Sundry creditor 22000
Realisation exp 1500 23500
Profit Transferred to capitals of
Rahul 2000
Vinod 1335
Sonia 667 4000
170500 170500 5
Capital A/c
Particulars Rahul Vinod Sonia Particulars Rahul Vinod Sonia
Realisation 45000 2500 Balance b/d 60000 40000 20000
Bank 22000 42166 22334 Realisation 2000 1333 667
General Reserve 5000 3333 1667
67000 44666 22334 67000 44666 22334 3
Cash A/c
Particulars Amount Particulars Amount
Rs Rs
Balance b/d 10000 Realisation 23500
Realisation (Assets) 100000 S creditor)
Rahul capital 22000
Vinod capital 42166
Sonia capital 22334
110000 110000 2 10
SECTION B
(Analysis of Financial Statements)
Part I
Q.No. Value Points Distribution Total
of Marks Marks
23. Management can judge efficiency of various departments. 1 1
24. (a) Stock turnover ratio =
Cost of goods sold
Average stock
1
(b) Debt equity ratio =
Debt
Equity
1 2
25. Following are the tools of financial statements
(a) Trend Analysis
(b) Ratio Analysis
(c) Comparative statement
(d) Fund flow statement
(e) Cash flow statement
(f) Common size statement
Among four of the above. 4 2
26. Current Ratio =
Current Assets
Current Liabilites
=
4.5
1
Liquid Ratio =
Liquid Assets
Current Liabilites
= 3 : 1
Stock = C.A L.A
= 4.5 3 = 1.5
i.e. Rs 36000 = 1.5
1 = 36000 1.5 = Rs 24000 2
Current Asset = 2400 4.5 Rs 10800 +1 4
27.
A. Cash from operating activities
Rs
Net profit 100000
Add goodwill written off 50000
Add depreciation 30000
Operating profit 180000
Add increase in CL and decreases in CA
Creditor 150000
Less increase in Ac & decrease in CL 330000
Stock 50000
Debtor 100000 150000 450
Net flow from operating activities 180000
B. Cash flow from investing Activities
Rs
Purchase of plant 130000
Net cash flow from investing activities 130000
C. Financing Activities
Repayment of long-term loan (100000)
Increase capital 100000
Net cash flow from financing Activities Nil
Net cash flow during the year 50000
Add opening cash or cash equivalent 150000
Closing cash or cash equivalent 200000 6 6
OR
(Elements of Cash Accounting)
Part II
23. In financial accounting double entry system is followed whereas cost accounting ` 1 1
is not based on double entry system
24. Direct material : Material consume 80,000
Direct wages : Productive wages 30,000
Direct Expenses : 7000
Prime cost 117000
Factory overhead
Indirect Material : consumable stores 3000
oil grease 1000 4000
Indirect wages : unproductive wages 4000
Indirect expenses factory Rent 3000
Salary factory Manager 9000 12000
Factory/works cost 137000 2 2
25. Components of total cost :
1. Prime cost
2. Factory cost
3. Cost of production
4. Total cost/cost of sales 2 2
26. EOQ =
2U P
5

1
U = Annual usage 5000 units
P = order placing cost Rs 100
S = Annual cost of carrying per unit = 4
=
2 5000 100
4
=
1000000
4
=
250000
= 500 units 3 4
27. Store Ledger (FIFO)
Date Particulars Receipts Issues Balance
Qty Rate Total Qty Rate Total Qty Rate Total
per value per value per value
unit unit unit
2006
March 1 Balance 100 8 800 1
7 P.O. No. 234 400 10 4000 100 8 800
4800 1
400 10 4000
9 M.R.No. 76 100 8 800
150 10 1500 1
250 10 2500
16 P.O.No. 249 600 12 7200 150 10 1500
8700 1
600 12 7200
18 M.R. No. 79 150 10 1500
350 12 4200 250 12 3000 1
30 Shortage 10 12 120 240 12 2880 1 6
1 marks for each entry