Topic: Full Test SET A (MVP) Standard: 11th CBSE

Total Time: 3 Hours Date:27/01/2024 Total Marks: 80

1. Find in the following assuming GST Rate is 12%. 1

Date Particulars LF Dr. Cr.
Purchases A/c Dr. ?
Input IGST a/c Dr. 30,000
To Cash A/c ?
To Discount Received A/c ?
(Being goods purchased from Shyam at
20% trade discount and 5% cash discount)
(a)Purchases Rs.2,60,000; Cash Rs.2,47,000 and Cash Discount Rs.13,000
(b)Purchases Rs.2,50,000; Cash Rs.2,37,500 and Cash Discount Rs.12,500
(c)Purchases Rs.2,80,000; Cash Rs.2,66,000 and Cash Discount Rs.14,000
(d)Purchases Rs.2,50,000; Cash Rs.2,67,500 and Cash Discount Rs.12,500
2. The balance of machine on 31st March 2019 is Rs. 97,200. The machine was purchased on 1st April 1
2017. Depreciation is charged @ 10% p.a. by diminishing balance method. The cost price of the
machine as on 1st April 2017 would be:
(a) Rs. 1,00,000 (b) 1,20,000 (c) Rs. 1,08,000 (d) Rs. 1,32,000
3. Bought goods of list price Rs. 50,000 less trade discount of 10% and 2% cash discount from Neha. Paid 1
30% amount by cash and 40 % by Cheque. The amount of trade discount received is:
1. (a)Rs.270 (b)Rs.900 (c)Rs.5000 (d)Rs.630
4. A customer from whom Rs. 1,000 is due becomes insolvent so only 40% amount is recovered. Amount 1
not recovered will be debited to___________ acc and amount:
(a)Discount Allowed A/c, 400 (b)Bad Debt A/c, 600
2. (c)Bad Debt A/c, 400 (d)Discount Allowed A/c, 600
5. Sold goods to Raman for list price Rs. 10,000, less 15 % trade Discount and 2% cash discount. He paid 1
the payment on the spot. The amount of cash discount allowed to him is:
(a)Rs. 170 (b)Rs. 1,500 (c)Rs. 1,470 (d)None of these
6. Assets which have a fixed content and value of asset goes down as the contents are taken out are 1
called ___ and by _____name this reduction is denoted in books.
7. Match items in List I with terms in List II using the codes given below the lists: 1
List - I List – II
1.X Sold goods to Y for Rs.10,000 at 10% trade (a)Rs.5,400
discount and 2% cash discount what will be
credited to Sales A/c?
2.X Sold goods to Y for Rs.10,000 at 10% trade (b)Rs.2,500
discount and 2% Cash discount.40 % amount
is paid immediately, what amount will be
debited to Y
3.Capital invested in business is Rs.1,00,000. (c)Rs.9,000
Rate of interest on capital is 10%. Interest on
capital for 3 months will be debited by
4.In the above entry of interest on capital, (d)None of the above.
cash account would be credited with
Choose the correct option available from below:
(a)1-c; 2-a; 3-b; 4-d (b)1-a; 2-c; 3-b; 4-d
(c)1-c; 2-a; 3-d; 4-b (d)1-b; 2-d; 3-a; 4-c

1|Page
8. Paid Telephone bill including GST @18% Rs. 10,620. 1
What is the amount of GST in the transaction?
(a)Rs. 1,912 (b)Rs. 1,620 (c)Rs. 810 (d)None of these
9. Goods sold to Kholi costing Rs. 1,12,500 @ profit of 25% on list price, trade discount @ 10%. Charged 1
CGST and SGST @ 6% each. Made 1/4th payment in cash immediately and availed Cash Discount @ 2%.
Pass journal entry.
10. Provision is created for: 1
(a) Known Liability (b) Unknown Liability
(c) Strengthening Financial Position (d) Distribution of Dividend
11. The credit balance as per cash book is Rs. 1,500. Cheque for Rs. 400 were deposited but were not collected. 1
The cheque issued but not presented were ₹275. Overdraft as per pass book will be
(a) 1,625 (b) 1,375 (c) 2,175 (d) 825
12. Match with the suitable option: 1
List-I List-I
I Sold to M/S Ajit Agakar A. Rs. 6,720
30 Shirts @ Rs. 400 each
40 trousers @ Rs. 300 each
Trade Discount @ 10 %
II Return 60 pen drive to M/S X purchased @ Rs. B. Rs. 12,544
100, IGST @12%
C. Rs. 21,600
D. Rs. 65,000
13. Calculate cost of goods sold from the following information: 1
Opening Stock Rs. 8,500; Purchases Rs. 30,700; Direct wages Rs. 4,800; Interest on loan Rs. 2,800;
Closing stock Rs. 9,000.
(a)Rs. 30,000 (b)Rs. 32,000 (c)Rs. 35,000 (d)Rs. 40,000
14. Purchase of office furniture for Rs. 1,200 was debited to General Expenses Account. It is 1
(a)a Clerical error (b)an error of principle (c)error of commission (d)None of these
15. Out of the following which is a trade discount and which is a cash discount? 1
(a)Anil has purchased 1,000 pieces of Add Roller Pen and therefore entitled to discount of Rs. 15,000
(b)Anil has paid the amount due towards the above purchase within 7 days and therefore, entitled to
discount of 2%.
16. Point out in which subsidiary book the following transaction will appear with the reason thereof: 1
(a)Endorsed Ram’s Cheque to Mohan
(b)Deposited Cash into bank
(c)Purchased furniture on credit from Mr. Ratan for Rs. 15,000 for use in the business.
(d) Goods returned by debtors.
17. Which of the following errors will be rectified through a suspense account? 1
(a) Sales return by XYZ of Rs. 20,000 recorded through purchase return book
(b) Sales return by XYZ of Rs. 20,000 is not recorded
(c) Sales return by XYZ of Rs. 20,000 is recorded as Rs. 2,000.
(d) Sales return from Ravi, posted as Rs.2,000 instead of Rs.20,000
18. Features of reserves are: 1
(a) It is created to strengthen the financial position of firm
(b) They belong to owners
(c) They are created to meet unknown liabilities in future
(d) All of the above
19. Insurance Premium paid during the year is Rs. 10,000 and Opening Prepaid Insurance is Rs. 3,000. 1
Insurance Expenses shown in the Profit and Loss Account will be:
(a) Rs. 13,000 (b) Rs. 7,000 (c) Rs. 3,000 (d) Rs. 10,000

2|Page
20. When goods are sold on credit the seller prepares 1
(a) Cash memo (b) Invoice (c) Accounting voucher (d) None of these
21. Show that accounting equation is satisfied in the following cases: 3
1. Ajay commenced business with cash Rs. 40,000 and goods Rs. 20,000
2. Sold half of the goods at profit of 25% to Ram.
3. Sold half of the goods at a loss of 10%for cash.
4. Bought goods from Rakesh Rs. 25,000 and paid Rs. 9,000 in cash.
5. Bought furniture Rs. 7,000 for office use and for Rs. 3,000 for domestic purpose.
6. Paid insurance premium Rs. 1,000 of which Rs. 200 is prepaid.
22. The rough books of M/s Narain & Co. contain the following: 3
2014
Feb. 1 Purchased from M/s Brown & Co. on credit: 5 gross pencils @ Rs. 100 per gross.
12 gross registers @ Rs. 200 per dozen. Less: Trade Discount @ 10%
Purchased for cash from the stationery mart: 12 gross exercise books @ Rs. 60 per dozen.
Purchased typewriter for office use from M/s Office Goods Co. on credit for Rs.800
Feb. 4 Purchased on credit from the Paper Co:
5 Rims of white paper @ Rs. 100 per rim, 10 rims of ruled paper @ Rs. 65 per rim.
Less: Trade Discount @ 10%
Feb. 5. Purchased one dozen ink-posts @ Rs. 10 each from M/s Verma Bros. on credit.
Prepare the purchases book of M/s Narian & Co.
OR
Pass the necessary journal entries from the following transaction in the books of Mr. Raj for the year ending
31st March2018.
(i) Purchased office equipment on credit Rs. 2,50,000 from Kapoor Traders. Charged CGST and SGST @ 6%
each.
(ii) An old machine with book value of Rs. 40,000 is exchanged for a new machine of Rs. 1,20,000. The old
machine is valued at Rs. 30,000 for the exchange purpose by X Ltd.
(iii) Interest on investment Rs. 6720 received including CGST and SGST @ 6% each.
23. Define the following terms: 3
(a)Debtor (b) Bad Debt (c)Capital Expenditure
st
24. Ram started a business on 1 Jan, 2016 with capital of Rs. 1,00,000. During the year ending 31st Dec, he 3
introduced further capital of Rs. 20,000 and withdrew goods and cash worth Rs. 15,000 for personal use.
On 31st Dec 2016 his assets include cash Rs. 30,000, stock Rs. 80,000 Debtors Rs. 40,000; and furniture
Rs. 30,000 and liabilities includes bank loan Rs. 30,000 and creditors Rs. 20,000. Calculate profit of year.
25. State the Accounting concept involved in each of the following situation. 3
(a) Bharat has a stationery store in Jamnagar. His business is 15 years old. On 31st March every year he
values stationery stock at lower of cost or market value.
(b) Mr. Shaikh owns a Grocery Store; he has staff of 5 people. At the end of every month, he pays salary to
them. Four employees were taking the salary but one employee, Prakash from Bihar, said, he will take
salary after every six months when he will visit his family in Bihar. Mr. Shaikh still continued showing his
salary as his expense every month, which was to be paid at an interval of six months.
(c) Gurpreet Purchased land to build a factory and paid Rs. 15 lakhs towards its cost including registration
charges. At the end of the financial year, the value of the land came down to Rs. 13 Lakh. His wife
suggested him to show loss of Rs. 2 lakhs but, he denied. Which accounting Principle did he follow?
(d) Mr. Hans hired a team of highly qualified personnel for management of business but, their caliber and
quality is not disclosed in the Balance Sheet. Identify the accounting principle followed.

3|Page
26. From the following balances extracted from the books of M/s Ahuja and Nanda. Calculate the amount of: 3
(a) Cost of goods available for sale
(b) Cost of goods sold during the year
(c) Gross Profit

Rs.

Opening stock 25,000

Credit purchases 7,50,000

Cash purchases 3,00,000

Credit sales 12,00,000

Cash sales 4,00,000

Wages 1,00,000
Salaries 1,40,000

Closing stock 30,000

Sales return 50,000

Purchases return 10,000

OR
Following balances were extracted from the books of Shri Palav on 31st March 2022.
You are required to prepare Trial Balance. The amount required to balance should entered as capital.

Items Amount ₹ Items Amount ₹

Purchases 1,70,000 Drawings 7,700

Stock (1st April, 2021) 24,000 Return Inward 3,500

Sales 1,05,000 Premises 5,28,000

Sundry Debtors 23,800 Sundry Creditors 16,100

Discount Received 3,500 Discount Allowed 2,800

Carriage Outwards 700 Carriage Inward 1,400

Cash in Hand 3,500 Cash at Bank 17,500

Machinery 1,24,500 General expenses 2,100

Provision for Depreciation on

24,200 Bad debt Written off 2,450
Machinery

Provision for Doubtful

Capital 7,60,770 2,380
Debts

4|Page
27. Trial balance of Anant Ram did not agree. It showed an excess credit of Rs. 16,000. He put the difference to 4
suspense account. Subsequently the following errors were located:
i. Cash received from Mohit Rs. 4,000 was posted to Mahesh as Rs. 1,000.
ii. Cheque for Rs. 5,800 received from Arnav in full settlement of his account of Rs. 6,000, was
dishonoured. No entry was passed in the books on dishonour of the cheque.
iii. Rs. 800 received from Khanna, whose account had previously been written off as bad, was credited
to his account.
iv. Credit sales to Manav for Rs. 5,000 was recorded through the purchases book as Rs. 2,000.
v. Purchases book undercast by Rs. 1,000.
vi. Repairs on machinery Rs. 1,600 wrongly debited to Machinery account as Rs. 1,000.
vii. Goods returned by Nathu Rs.3,000 were taken into stock. No entry was recorded in the books.

28. From the following transactions, prepare Cash Book with Cash and Bank columns: 4
Feb. 1 Cash-in-hand Rs. 7,500, Cash-at-bank Rs. 8,000
Feb. 3 Discount a bill receivable for Rs. 6,000 at 2% through Bank
Feb. 5 Bought goods for Rs.2,000 and paid by cheque
Feb. 15 Paid Trade expenses 120
Feb. 16 Drew from Bank for office use Rs. 1,000
Feb. 17 Sold goods for Rs. 12,500 and received a cheque
Feb. 25 Paid Insurance Rs. 100
Feb. 27 Cheque received on 17th deposited in Bank
Feb. 28 Received a cheque from John & Co. Rs. 6,000
Feb. 28 Purchased 100 National saving certificate for Rs.100 at Rs. 95 each and paid by
cheque.
29. The trial balance of Manish gives the following information: 4
Heads of Accounts Debit (Rs.) Credit (Rs.)
Debtors 2,50,000 ----
Bad Debts 2,500 ----
Discount Allowed 4,500 ----
It is decided to create a Provision for Doubtful Debts @ 10% on debtors and a provision for discount
@ 2.5% on debtors. Show how the adjustment will appear in the Final Account.
30. Pass the Journal Entries for the following: 6
(a) Goods costing Rs. 500 given as donation. These goods were purchased paying CGST and SGST @9%
each.
(b) Sold goods costing Rs. 6,000 to Mohan of Kolkata issued at invoice at 10% above cost less 5% trade
discount plus IGST @18%.
(c) Purchased Machinery on credit from Pele & Sons, for Rs. 50,000 on credit plus CGST and SGST @9%
each.
(d) Goods costing Rs. 1,000 damaged by fire and Insurance company accepted claim of Rs. 800 and
cheque is received from Insurance company. This transaction is subject to levy of CGST and SGST
@9% each.
th
31. On 30 September, 2008, Pass Book of Mr. Sanjay showed a balance of Rs. 2,200. You are required to 6
prepare Bank Reconciliation Statement with the help of the following information:
(i) Cheques of Rs. 27,000 have been issued, but cheques of Rs. 7,000 were presented before 30th September
and cheques of Rs. 15,000 have been presented in the month of October and rest of the cheques were not
presented at all.
(ii) Cash book dr. side has been overcastted by Rs. 200.
(iii) Amount wrongly debited by bank Rs. 8,000.
(iv) Cheques of Rs. 6,000 were sent to bank for collection, out of which cheques of Rs. 2,500 only were

5|Page
 collected in the month of September. Cheque of Rs. 1,600 was collected in the month October and rest of
the cheques were not collected at all.
(v) Interest allowed by bank Rs. 2,200.
(vi) Cheques recorded twice in the Cash Book in September, 2008 but sent to bank in October, 2008, Rs.
1,100.
32. Following is the Statement of affairs of Rakesh who does not keep his books on double entry 6
system.
Statement of affairs as at 1st April 2018
Liabilities Amount Assets Amount
Bank OD 6,500 Cash 5,000
Creditors 24,800 Debtors 18,400
Capital (Balancing Figure) 58,700 Stock 25,600
Fixed 41,000
Assets
90,000 90,000
On 31st March, 2019, his position was an under:
(i)Cash position improved by Rs.2,500 but bank overdraft was 10,000.
(ii)Debtors were increased by Rs.4,600 but creditors were reduced to Rs.22,000.
(iii)There was no change in fixed assets but stock was reduced by Rs.1,600.

Following adjustments were omitted as on 31st March, 2019:

(i)Salary o/s Rs.2,000, interest on bank o/d Rs. 400 Bad debts were Rs.600 and create
provision for doubtful debts @ 5% on debtors. Also provide 10% depreciation on fixed assets.
(ii)During the year, Rakesh withdrew Rs. 6,000 in cash and goods worth Rs.4,000.
Ascertain his profit or loss for the year 2018-19 and also prepare statement of affairs.
33. On 1st January, 2014, Beta Ltd. bought a machine for Rs 6,00,000. On 1 st April,2016, a part of machine 6
bought for Rs 1,40,000 on 1st January,2014, was sold for Rs 50,000. On 1st May,2016, a new machine
was purchased for Rs 1,50,000. It is decided to depreciate the machine @20% p.a. on straight line
method and Asset Disposal A/c is prepared for sale of assets. Show Ledger account for 3 years
assuming account are closed on 31st Dec. each year.
34. The following balances were extracted from the books of Shri R. Lal on March 31, 2017: 6

Account Title Amount Rs. Account Title Amount Rs.

Capital 1,00,000 Rent (Cr.) 2,100

Drawings 17,600 Railway freight on sales 16,940
Purchases 80,000 Carriage inwards 2,310
Sales 1,40,370 Office expenses 1,340
Purchases return 2,820 Printing and Stationery 660
Stock on April 01, 2016 11,460 Postage and Telegram 820

Bad debts 1,400 Sundry debtors 62,070

Doubtful debts reserve 3,240 Sundry creditors 18,920

6|Page
 Cash in bank 12,400
Rates and Insurance 1,300 Cash in hand 2,210
Discount (Cr.) 190 Office furniture 3,500
Bills receivable 1,240 Salaries and Commission 9,870
Sales returns 4,240 Addition to buildings 7,000
Wages 6,280
Buildings 25,000

Prepare the trading and profit and loss account and a balance sheet as on March 31st, 2017 after keeping in
view the following adjustments:

i. Depreciate old building by Rs. 625 and addition to building at 2% and office furniture at 5%.
ii. Write-off further bad debts Rs. 570.
iii. Increase the bad debts reserve to 6% of debtors.
iv. On March 31, 2017 Rs. 570 are outstanding for salary.
v. Rent receivable Rs. 200 on March 31st, 2017.
vi. Interest on capital at 5% to be charged.
vii. Unexpired insurance Rs. 240.
viii. Stock was valued at Rs. 14,290 on March 31st, 2017.
OR
From the following Trial Balance of Reliable Enterprise, prepare a Trading and Profit and Loss
Account for the year ending 31st March, 2020 and a Balance Sheet as on that date:

Heads of Accounts L.F. Dr. (Rs.) Cr. (Rs.)

Cash in Hand ………………………………………………………………………. 1,080 …
Cash at Bank ………………………………………………………………………. 45,260 …
Purchases ………………………………………………………………………. 81,350 …
Return Outward ………………………………………………………………………. … 1,000
Sales Account ………………………………………………………………………. … 1,97,560
Returns Inward ………………………………………………………………………. 1,360 …
Wages ………………………………………………………………………. 30,420 …
Carriage Inwards ………………………………………………………………………. 4,080 …
Opening Stock ………………………………………………………………………. 16,520 …
Building ………………………………………………………………………. 80,000 …
Machinery ………………………………………………………………………. 40,000 …
Salaries ………………………………………………………………………. 30,000 …
Patents ………………………………………………………………………. 15,000 …
General Expenses ………………………………………………………………………. 6,000 …
Insurance ………………………………………………………………………. 1,200 …
Capital ………………………………………………………………………. … 1,62,000
Drawing ………………………………………………………………………. 10,490 …
Sundry Debtors ………………………………………………………………………. 29,000 …
Carriage Outwards ………………………………………………………………………. 6,400 …
Sundry Creditors ………………………………………………………………………. … 37,600

7|Page
 Total 3,98,160 3,98,160
Adjustments:
a) Stock on hand 31st March, 2020 is Rs. 13,600.
b) Machinery and Patents are to be depreciated @ 10% and @ 20% respectively.
c) Salaries for the month of March, 2020 amounting to Rs. 3,000 were unpaid.
d) Charge interest on capital @ 5%.
e) Provision for Doubtful Debts is to be created to the extent of 5% on Sundry Debtors.
f) Stock valued at Rs. 4,000 were used by the owner for his personal use, the cost of which has not
been adjusted in the books of account.
g) A fire occurred on 25th March, 2020 and goods costing Rs. 5,000 were destroyed. These goods
were fully insured and insurance company admitted the claim in full.

8|Page
 Answer Key

1. (d)Purchases Rs.2,50,000; Cash Rs.2,67,500 and Cash Discount Rs.12,500

2. (b) 1,20,000
3. (c) Rs. 5000
4. (b) Bad Debt A/c, 600
5. (a)Rs. 170
6. Wasting Assets, Depletion
7. (a)1-c; 2-a; 3-b; 4-d
8. (b)Rs. 1,620
9. Cash A/c Dr. 37,044
Kholi A/c Dr. 1,13,400
Discount Allowed Dr. 675
To Sales A/c 1,35,000
To Output CGST 8,060
To Output SGST 8,059
10. (a)Known liability
11. (a)1,625
12. 1-c ; 2-a
13. (c)Rs. 35,000
14. (b)error of principle
15. (a)Trade Discount (b)Cash Discount
16. (a)Journal Proper: because it a transaction not recorded in any other subsidiary books
(b)Cash Book: As it a contra entry related to cash and bank
(c) Journal proper: As it is purchase of furniture for business use and not resale and is not recorded in any other
book.
(d)Sales Return Book: As it is goods returned which were sold to debtors.
17. (d) Sales return from Ravi, posted as Rs.2,000 instead of Rs.20,000
18. (d)All of the above
19. (a) Rs. 13,000
20. (b) Invoice
21.
Assets = Liabilities + Capital
Cash Goods Debtors Furniture Pre. Ins Creditors
(a) 40,000 20,000 60,000
(b) (10,000) 12,500 2,500
(c) 9,000 (10,000) (1,000)
(d) (9,000) 25,000 16,000 (3,000)
(e) (10,000) 7,000 (800)
(f) (1,000) 200
29,000 25,000 12,500 7,000 200 16,000 57,700
73,700 73,700
22. In the Books of M/s Narain & Co.
Purchases Book
Date Particulars L.F. Details (Rs.) Amount (Rs.)
st
1 Feb 2014 M/s Brown & Co.:
5 gross pencils @ Rs. 100 per gross 500.00
12 gross registers @ Rs. 200 per dozen 200.00
700.00
Less: Trade Discount @ 10% 70.00 630.00

9|Page
 4th Feb 2014 The Paper Co.:
5 rims white paper @ Rs 100 500.00
10 rims of ruled paper @ Rs. 65 650.00
1,150.00
Less: Trade Discount @ 10 % each 115.00 1,035.00
th
5 Feb, 2014 M/s Verma Bros:
1 dozen ink pots @ Rs. 10 each 120.00
th
28 Feb, 2014 Purchase A/c 3,765.00

OR
(i)Office Equip A/c Dr. 2,50,000
Input CGST A/c Dr. 15,000
Input SGST A/c Dr. 15,000
To Kapoor Traders 2,80,000

(ii)
Loss on exchange of machine A/C Dr. 10,000
To Machine A/C (Old) 10,000
Machine A/C (New) Dr. 1,20,000
To Cash A/C 90,000
To Machine A/C (Old) 30,000

(iii)Cash/Bank A/c Dr. 6,720

To Interest on investment 6,000
To Output CGST 360
To Output SGST 360
23. (a) Debtors : The person to whom goods have been sold on credit or services rendered on credit are called
debtors. They are the asset for the business.
(b) Bad Debts: Amount of that debt which is irrecoverable. It is written off in the books and is a loss
for the business.
(c) Incurred to acquire assets or improving the existing assets which will increase the earning capacity
of the business.
E.G. Purchase of Fixed Assets etc.
24. Total Assets at end = Cash + Stock + Debtors + Furniture
= ₹30,000 + ₹80,000 + ₹40,000 + ₹30,000
= ₹1,80,000
Closing capital = Closing assets − Closing liabilities
= ₹1,80,000 − ₹30,000 (Bank loan) − ₹20,000 (creditors)
= ₹1,30,000
Profit : We know that
Closing capital = Opening capital + Further capital − Drawing + Profit
∴ Profit = Closing capital + Drawing − Further capital
= ₹1,30,000 + ₹15,000 − ₹20,000 − ₹1,00,000
= ₹25,000
25. (a)Prudence or conservatism
(b)Accrual
(c)Cost Concept or historical cost
(d)Money measurement principle

10 | P a g e
 26.

OR
Trial Balance as on 31st March 2022
Particulars Dr Cr
Purchases 1,70,000
Stock (1st April, 2021) 24,000
Sundry Debtors 23,800
Carriage Outwards 700
Cash in Hand 3,500
Machinery 1,24,500
Bad debt Written off 2,450
General expenses 2,100
Cash at Bank 17,500
Carriage Inward 1,400
Discount Allowed 2,800
Premises 5,28,000
Return Inward 3,500
Drawings 7,700
Sales 1,05,000
Discount Received 3,500
Provision for Dep on Machine 24,200
Sundry Creditors 16,100
Provision for Doubtful Debts 2,380
Capital 7,60,770
Total 9,11,950 9,11,950

11 | P a g e
 27.

28. In the books of …..

Dr. Cash Book Cr.
Date Particulars L.F Cash Bank Date Particulars L.F Cash Bank
(Rs.) (Rs.) (Rs.) (Rs.)
Feb. 1 To Balance 7,500 8,000 Feb. 5 By Purchase A/c 2,000
b/d
Feb. 3 To Bills 5,880 Feb 15 By Trade Expense 120
Receivable
A/c
Feb 16 To Bank A/c C 1,000 Feb 16 By Cash A/c C 1,000
Feb 27 To cheque in 12,500 Feb 25 By Insurance A/c 100
Hand A/c
Feb 28 To John Co. 6,000 Feb 28 By Investment 9,500
(NSC) A/c
Feb 28 By Balance c/d 8,280 19,880
8,500 32,380 8,500 32,380

12 | P a g e
 29. Dr. Statement of P/L Extract) Cr.
Particulars Rs. Particulars Rs.
Bad debts 2,500
+ PFDD (new) 25,000 27,500

Discount allowed 4,500

(+) Provision Discount (new) 5,625 10,125
Balance Sheet (Extract)
Rs. Assets Rs.
Debtors 2,50,000
(-) PFDD 10% (25,000)
2,25,000
(-) Disc 2.5% (5,625) 2,19,375
30. (a) Donation A/c Dr. 590
To Purchase A/c 500
To Input CGST A/c 45
To Input SGST A/c 45
(Being goods given as donation)

(b) Mohan A/c Dr. 7,399

To Sales A/c 6,270
To Output IGST A/c 1,129
(Being goods sold)

(c) Machinery A/c Dr. 50,000

Input CGST A/c Dr. 4,500
Input SGST A/c Dr. 4,500
To Pele & sons 59,000
(Being machinery purchased)

(d) Bank A/c Dr. 800

Loss of goods A/c Dr. 380
To Purchases A/c 1,000
To Input CGST 90
To Input SGST 90
(Being insurance claim received)
31. Bank Reconciliation Statement as at 30th September,2008
Particular Plus Items Minus Items
Balance as per Pass Book (Credit) 2,200
(1) Cheques issued but not presented for Payment 20,000
(15,000 + 5,000)
(2) Cash Book is overcast Dr. side 200
(3) Wrongly debited by Bank 8,000
(4) Cheques sent to Bank for collection but not yet
collected (1,600 + 1,900) 3,500
(5) Interest allowed by Bank 2,200
(6) Cheques recorded twice in Cash Book but sent to
Bank in the Month of October, 2008 (1,100 x 2) 2,200
16,100 16,100
Overdraft as per Cash Book 6,100
32. Opening cap given in Question – Rs.58,700.

13 | P a g e
 Statement of Profit or Loss
For the year ending 31st March, 2019
Particulars (Rs.)
Closing capital as on 31st March, 2019 55,280
Add: Drawings during the year (Rs. 6,000 + Rs. 4,000 goods) 10,000
Adjusted closing capital 73,500
Less: Opening capital (1-4-2018) 58,700

Net Profit during year 6,580

Final Statement of Affairs

As at 31st March, 2019
Liabilities Rs. Assets Rs.
Bank Overdraft 10,000 Cash in Hand 7,500
Add: Interest on O/d 400 10,400 Debtors 23,000
Creditors 22,000 Less: Books Debts 600
Outstanding Salary 2,000 22,400
Capital (Bal fig) 58,700 Less: Provision 1,120 21,280
Add: Net Profit 6,580 Stock 24,000
65,280 Fixed assets 41,000
Less: Drawings 10,000 55,280 Less: Deprecation 4,100 36,900
89,680 89,680
33. Machinery Account
Date Particular Rs. Date Particular Rs.
2014 2014
Jan 1 To Bank A/c 6,00,000 Dec 31 By Depreciation A/c 1,20,000
Dec 31 By Balance c/d 4,80,000
6,00,000 6,00,000
2015 2015
Jan 1 To Balance b/d 4,80,000 Dec 31 By Depreciation A/c 1,20,000
By Balance c/d 3,60,000
4,80,000 4,80,000
2016 2015
Jan 1 To Balance b/d 3,60,000 April 1 By Depreciation A/c
May 1 To Bank A/c (only Rs. 1,40,000 for 3
1,50,000 months) 7,000
2016
April 1 By Bank A/c 50,000
By PNL A/c 27,000

Dec 31 By Depreciation A/c

(i) on 4,60,000 for 1 year
92,000
(ii) On 1,50,000 for 8
months 20,000 1,12,000
Dec 31 By Balance c/d 3,14,000
5,10,000 5,10000

Note : (i) Book Value of Machine Sold

Cost of Machine sold = ₹1,40,000
Depreciation for

14 | P a g e
 2014 28,000
2015 28,000 63,000
2016 7,000
77,000
(ii) Depreciation of 2016 on Machine
Balance Machine ₹ 4,60,000 @ 20% for 1 year ₹ 92,000
On ₹ 1,50,000 for 8 months @ 20% 20,000
1,12,000
34.

15 | P a g e
 OR
Dr. TRADING AND PROFIT AND LOSS ACCOUNT Cr.
for the year ended 31st March, 2020
Particulars Rs. Particulars Rs.
To Opening Stock 16,520 By Sales
To Purchases 1,97,560
81,350 Less: Returns Inward 1,360 1,96,200
Less : Goods distributed for Sales By Closing Stock 13,600
Promotion (as Samples)
3,000
Goods taken by Owner
4,000
Returns Outward
1,000
Loss due to fire 5,000 68,350
To Wages 30,420
To Carriage Inwards 4,080
To Gross Profit transferred to 90,430
Profit and Loss A/c
2,09,800 2,09,800
To Carriage Outwards 6,400 By Gross Profit transferred from 90,430
To Salaries Trading A/c
30,000

16 | P a g e
 Add: Outstanding Salaries
3,000 33,000
To General Expenses 6,000
To Insurance 1,200
To Depreciation on:
Machinery (Rs. 40,000 10%)
4,000
Patents (Rs. 15,000 x 20%) 7,000
3,000
To Provision for Doubtful Debts 1,450
(Rs. 29,000 x 5%)
To Sales Promotion 3,000
To Interest on Capital (Rs. 1,62,000 x 8,100
5/100)
To Net Profit transferred to Capital 24,280
A/C
90,430 90,430
BALANCE SHEET
as at 31st March, 2020
Liabilities Rs. Assets Rs.
Sundry Creditors 37,600 Building 80,000
Outstanding Salaries 3,000 Machinery
Capital 1,62,000 Less: Depreciation 40,000 36,000
Add: Net Profit 24,280 Patents 4,000
Interest on 8,100 Less: Depreciation 15,000 12,000
Capital
1,94,380 Sundry Debtors 3,000
Less: Drawings Less: Provision for Doubtful 29,000
(Rs. 10,490 + 14,490 1,79,890 Debts 1,450 27,550
4,000) Closing Stock 13,600
Insurance Company 5,000
Cash in Hand 1,080
Cash at Bank 45,260
2,20,490 2,20,490

17 | P a g e