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 Series ARSP/15 Set ~ 15
Roll No. Q.P Code 15/15/15
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

General Instructions:

1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Which document evidencing that the account of the named person is debited for the reason stated therein [1]

a) Credit note b) Cash Memo

c) Cheque d) Debit Note

2. Assertion (A): Accounting records only those transactions which can be measured in terms of money. [1]
Reason (R): Transactions and events that are not measurable in terms of money can't be valued in Accounts.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Goodwill account is a: [1]

a) Nominal Account b) Real Account

c) representative personal account d) Personal Account

4. Capital of a business decreases if there is an increase in [1]

a) Income b) Drawings

c) Fresh Capital d) Gains

OR
What will be the effect on the accounting equation for outstanding expenses?
(Options are in the format of assets, liabilities, capital).

a) No change, Increase, Decrease b) Decrease, Increase, Decrease

c) Decrease, Decrease, No change d) Decrease, No change, Decrease

5. Which of the following statements about original copy of invoice/bill is correct? [1]
 a) It is kept with seller for making records in b) It is made for cash transactions
books of accounts

c) When goods are returned to a supplier d) It is sent to the purchaser

6. Which stakeholder would be most interested in whether the firm has a long-term future: [1]

a) Management b) Suppliers

c) Government and other regulators d) Lenders

OR
Which of the following is the process of entering business transactions of financial character in the books of original
entry in terms of money?

a) Summarising b) None of these

c) Interpretation d) Classifying
7. Creation of provision is: [1]

a) Necessary b) Voluntary

c) Unnecessary d) Illegal
8. Which account will be debited if proprietor pays ₹ 5,000 as life insurance premium from business cash? [1]

a) Bank A/c b) Drawings A/c

c) Cash A/c d) Insurance A/c

OR
Sale of goods to Rahul for cash is debited to:

a) Rahul A/c b) Sales A/c

c) Stock account d) Cash A/c

9. According to Convention of Conservatism closing stock is valued at: [1]

a) At real value b) At cost price

c) Cost price or relisable value whichever is d) At realisable value

less.
10. According to which, accounting principle personal expenses of proprietor are recorded in drawings account. [1]

a) Prudence b) Matching

c) Business Entity Concept d) Money measurement

11. Features of reserves are: [1]

a) It is created out of divisible profits b) Their creation is voluntary

c) All of these d) They are available for distribution as

dividends
12. The term fixed assets include: [1]

a) Furniture b) Bills Receivable

c) Debtors d) Closing Stock

13. The sales return book does not record which of the following? [1]
 i. Return of goods sold on cash basis.
ii. Return of goods sold on credit basis.
iii. Return of assets other than the goods in which the firm deals in.

a) i b) ii

c) iii d) i and iii

14. X commenced business on 1st April 2022 with a capital of ₹ 6,00,000. On 31st March 2023, his assets were [1]

worth ₹ 8,00,000 and liabilities ₹ 50,000. Find out his closing capital.

a) ₹ 5,50,000 b) ₹ 7,50,000

c) ₹ 6,50,000 d) ₹ 2,00,000
15. The objective of providing discount is to encourage the debtors to pay the dues promptly is [1]

a) Rebate b) Seasonal discount

c) Trade discount d) Cash discount

OR
Expenditure on purchase of machinery is a

a) Deferred revenue expenditure b) Revenue expenditure

c) Expense d) Capital expenditure

16. In the Purchases Book, transactions recorded are [1]

a) cash purchases of goods dealt in. b) purchase of anything.

c) credit purchases of goods dealt in. d) all purchases of goods dealt in.
17. Name the reserve which has been created out of profit which has been earned in the normal course from day to [1]
day activities of the business concern.

a) Specific reserve b) General reserve

c) Revenue Reserve d) Capital Reserve

18. Enumerate four advantages of Ledger. [3]
OR
Journalise the following transactions:
i. Goods destroyed by fire for Rs 4,500
ii. Paid Rs 1,500 in cash as wages on the installation of machinery
iii. Issue a cheque in favour of M/s. Parmatma Saran & Sons on accounts of purchase of goods Rs 7,500
iv. Goods sold costing Rs 6,000 of M/s. Kalu sons at an invoice price of 10% above cost less 5% Trade Discount.
19. Explain the business entity assumption. [3]
OR
What is meant by the Accrual Basis of Accounting? Give any two advantages of the Accrual basis of accounting.
20. Write a note on types of assets with one example of each. [3]
21. Following balances were extracted from the books of Rajesh Associates as at 31st March, 2023: [4]

(₹) (₹)

Sundry Debtors 4,10,000 Stock (April 1, 2022) 2,30,000

 Sundry Creditors 80,000 Premises 12,00,000

Rent and Taxes 48,000 Fixtures & Fittings 3,10,000

Purchases 34,00,000 Bad Debts written off 8,000

Sales 56,00,000 Rent received from sub-let of part of premises 30,000

Trade Expenses 12,000 Loan from Rahul 1,50,000

Returns Outwards 80,000 Interest on Rahul's Loan 15,000

Returns Inwards 1,20,000 Drawings 40,000

Expenses 4,000 Cash in hand 75,000

Motor Vehicles 6,50,000 Stock on 31st March, 2023

Electricity 25,000 (not adjusted) 3,80,000

You are required to prepare the trial balance treating the difference as his capital.
22. Prepare Two-column Cash Book of Vinu from the following transactions: [4]

2023 ₹

Oct. 1 Cash in Hand 25,000

Oct. 1 Cash at Bank 75,000

Oct. 7 Bought goods against cheque 15,000

Oct. 8 Bought goods 5,000

Oct. 10 A post-dated cheque issued earlier honoured 5,000

Oct. 14 Paid Miscellaneous expense 150

Oct. 18 Rohit who owed ₹ 5,000 became bankrupt and paid us 50 paise in a rupee

Oct. 20 Received cash from Mohit 7,500

Allowed discount 250

Oct. 23 Withdrew from bank 4,000

Oct. 24 Paid to Gopal & Co. 3,000

Received discount 100

Oct. 25 Withdrew from bank for personal expense 3,000

Oct. 27 Sold goods 11,000

Oct. 28 Received cheque for goods sold 19,000

Oct. 29 Received part payment from Abhishek of ₹ 5,000 and deposited ₹ 3,000 out of it into bank

23. Draw bank Reconciliation statement showing adjustment between your cash book and pass book as on 31st [4]
March 2023.
i. On 31st March, 2023 your passbook showed a balance of ₹ 6,000 to your credit.
 ii. Before that date, you had issued cheques amounting to ₹ 1,500 of which cheques of ₹ 900 have been
presented for payment.
iii. A cheque of ₹ 800 paid by you into the bank on 29th March 2023 is not yet credited in Passbook.
iv. There was a credit of ₹ 85 for interest on current account in the passbook.
v. On 31st March 2023, a cheque for ₹ 510 received by you and was paid into bank but the same was omitted to
be entered in cash book.
OR
Prepare Bank Reconciliation Statement from the following particulars as on 31st March, 2023, when Pass Book
shows a debit balance of ₹ 25,000:
i. Cheque issued for ₹ 50,000 but up to 31st March, 2023 only ₹ 30,000 could be cleared.
ii. Cheques issued for ₹ 10,000 but omitted to be recorded in the Cash Book.
iii. Out of Cheques deposited for ₹ 55,000, cheques for ₹ 5,000 were collected on 4th April, 2023.
iv. A discounted post-dated cheque of ₹ 10,000 was dishonoured.
v. A cheque of ₹ 5,000 debited in Cash Book but omitted to be banked.
vi. Interest allowed by bank ₹ 2,000 but no entry was passed in the Cash Book.
24. Following was the position of Mahesh & Co. as on 1st April, 2023: [6]
Cash in Hand ₹ 10,000; Cash at Bank ₹ 16,800; Furniture ₹ 8,000; Stock ₹ 50,000; Debtors - Rishab ₹ 8,000;
Raman ₹ 12,000; Creditors - Arnab ₹ 4,000; Satish ₹ 5,000.
Following transactions took place during April, 2023:

2023

April 2 Received a cheque from Rishab in full settlement of his account after deducting 5% cash discount.

April 4 Deposited the above cheque into Bank.

Goods purchased for ₹ 20,000 at 10% trade discount and 5% cash discount. Payment made by
April 5
cheque.

Received a cheque from Raman for ₹ 3,860 and discount allowed to him ₹ 140.
April 6
Cheque deposited into the bank on the same day.

April
Cash paid to Arnab after deducting 2% cash discount.
10

April
Old furniture sold for ₹ 800.
15

April
Sold goods to Ram Parshad of the list price of ₹ 10,000 at a trade discount of 15%.
16

April
Ram Parshad returned goods of the list price of ₹ 1,000.
18

April
Paid for furniture repairs to Bahadur Singh ₹ 100.
20

April Received a cheque from Ram Parshad after deducting 4% cash discount. Cheque was deposited into
25 bank.
 April Bank charged ₹ 50 for ‘Bank Charges’.
28

April
Received Commission ₹ 200.
30

OR
Pass entries in the books of Ashok Bros. assuming that all transactions have been entered within the sate of UP and
assuming CGST @6% and SGST @6%:

2023

Jan. 2 Purchased good for 20,0000 on credit.

Jan. 5 Sold goods for 30,0000 on credit.

Jan. 10 Purchased Computer Printer for office for 50,000 and payment made by cheque.

Jan. 20 Legal consultation fee of 10,000 paid in cash.

Jan. 22 Rent of 20,000 paid by cheque.

Jan. 31 Payment made of balance amount of GST.

25. Ritik Gupta was unable to reconcile his Trial Balance as on 31st March 2023 and has opened a suspense account [6]
from the difference. Later on the following errors were discovered:-
i. There were three compensating errors:
a. The total of Sales Return Book was overcast by ₹ 100
b. The total of one page of the Purchase Book was carried forward as ₹ 1,286 instead of ₹ 1,826
c. Goods purchased from C for ₹ 400 was debited to his account as ₹ 40
ii. ₹ 425 paid for wages to workmen for making office table were debited to wages account.
iii. Rent paid ₹ 1,500 were posted to the credit of Rent account as ₹ 150
iv. Cash received from Govind ₹ 500 were correctly recorded in cash book but were posted to his account as ₹
50
v. ₹ 720 paid to Kamlesh has been debited to Kamal A/c as ₹ 520
vi. The total of Purchase Return Book ₹ 2,500 was left unposted.
Pass rectifying entries and prepare Suspense A/c.
OR
Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.
a. Credit sales to Maadhav ₹ 7,000 were recorded in purchase book. However, Maadhav's account was correctly
debited.
b. Credit purchase from Ronak ₹ 9,000 were recorded in sales book. However, Ronak's account was correctly
credited.
c. Goods returned to Rahil ₹ 4,000 were recorded in sales return book. However, Rahil's account was correctly
debited.
d. Goods returned from Manoj ₹ 1,000 were recorded through purchase return book. However, Manoj's account was
correctly credited.
e. Goods returned to Nitin ₹ 2,000 were recorded through purchase book. However, Nitin's account was correctly
debited.
26. A company had bought Machinery for ₹ 1,00,000 including therein a boiler worth ₹1 0,000. Depreciation was [6]
charged on Reducing Balance Method at the rate of 10% p.a. for first five years and Machinery Account was
credited accordingly. During the fifth current year, the boiler became useless on account of damages to some of
its vital parts. The damaged boiler is sold for ₹ 2,000. Prepare the Machinery Account for five years.
OR
On 1st October 2014, Bansal Pvt. Ltd. purchased machinery for Rs 12,00,000. On 31st May, 2016, a part of the
machinery purchased on 1st October 2014 for Rs 1,60,000 was sold for Rs 60,000. On the same date, fresh
machinery was purchased for Rs 3,00,000. Depreciation is provided at 20% per annum on the written down value
method and the books are closed on 31st March each year. You are required to prepare (a) Machinery Account, (b)
Provision for Depreciation Account, and (c) Machinery Disposal Account.
Part B
27. In a single entry system, it is not possible to prepare: [1]

a) Balance sheet b) Account sales

c) Receipts and payments A/c d) Trial balance

OR
The opening capital is ascertained by preparing

a) Cash book b) Opening statement of affairs

c) Creditors d) Debtors
28. Closing Stock appearing in the Trial Balance is shown: [1]

a) On the Liability side of the Balance Sheet b) On the Cr. side of Trading A/c

c) On the Assets side of the Balance Sheet d) On the Dr. side of Trading A/c
29. Wages paid for the installation of the machine is added to the cost of machine because of [1]

a) Cost Principle b) Accrual Concept

c) Materiality Principle d) Matching Principle

OR
Insurance paid ₹ 16,000 (including premium of ₹ 12,000 per annum paid upto 30th June, 2023). What will be the

adjusting closing entry necessary as on 31st March, 2022:

a) Insurance Prepaid A/c Dr. 3,000 b) Insurance Prepaid A/c Dr. 1,000

To Insurance A/c 3,000 To Insurance A/c 1,000

c) Insurance A/c Dr. 3,000 d) Insurance Prepaid A/c Dr. 4,000

To Insurance Prepaid To Insurance A/c 4,000

3,000
A/c

30. Following information was taken from an Income Statement: [3]

Opening Stock ₹ 5,000; Sales ₹ 16,000; Carriage Inwards ₹ 1,000; Sales Return ₹ 1,000; Gross Profit ₹ 6,000;
Purchases ₹ 10,000; and Purchases Return ₹ 900. Calculate Closing Stock and the Cost of Goods Sold.
31. Explain the concept of cost of goods sold. [3]
32. Suraj’s Trial Balance as on 31st March, 2023 shows the following information: [3]
 Heads of Accounts Debit (₹) Credit (₹)

Purchases 2,80,000 ____

Sales ____ 3,50,000

Carriage on Purchases 10,000 ____

Suraj took goods costing ₹ 20,000 for his personal use but entry was not passed in the books of account. Show
the treatment in the Final Accounts.
33. C maintain his books according to Single Entry System. Following figures were available from the books for the [6]
six months ended 31st December, 2017-

1st July, 2017 (Rs.) 31st Dec. 2017 (Rs.)

Plant and Machinery 1,50,000 1,40,000

Debtors 65,000 60,000

Cash and Bank balances 25,000 31,000

Stock 40,000 45,000

Creditors 9,000 10,000

Adjustments-
a. He had withdrawn Rs.200 in the beginning of every month for household purposes.
b. Depreciation on Plant and Machinery @ 10% p.a.
c. Further Bad Debts Rs.5,000 and Provision for Doubtful Debts to be created @ 2%.
d. During the period, salaries have been prepaid by Rs.500 while wages outstanding were Rs.1,000.
e. Interest on drawings to be reckoned @ 6% p.a.
You are required to prepare the Statement of Profit or Loss for the half year ended 31st December, 2017,
followed by Revised Statement of Affairs as on that date.
OR
Following incomplete information is available from records maintained by Mr. A:

1-4-2022 (₹) 31-3-2023 (₹)

Cash 1,000 1,500

Bank 8,000 10,000

Debtors 10,000 12,000

Stock 7,000 6,000

Machinery 20,000 20,000

Creditors 11,000 10,000

Bank Loan 12,000 12,000

During the year Mr. A introduced in the business the amount realised on sale of ₹ 10,000 investments at the premium
of 5%. Personal expenses of Mr. A paid from the business account amounted to ₹ 1,250 per month. Prepare a
statement to calculate Profit (or Loss) during the year.

34. Trial Balance of Gaurav as at 31st March, 2023 was as follows: [6]
 Heads of Accounts Dr. (₹) Cr. (₹)

Purchases 8,12,525 ____

Sales ____ 12,62,000

Provision for Doubtful Debts ____ 26,000

Sundry Debtors 2,51,000 ____

Sundry Creditors ____ 1,52,630

Opening Stock 1,33,625 ____

Wages 1,15,685 ____

Salaries 27,875 ____

Furniture 36,250 ____

Postage 21,130 ____

Power and Fuel 6,750 ____

General Expenses 29,155 ____

Bad Debts 2,625 ____

Loan to Ravi @ 10% p.a. (1st December, 2022) 15,000 ____

Cash in Hand and at Bank 50,000 ____

General Expenses Outstanding ____ 3,500

Drawings A/c 22,260 ____

Capital A/c ____ 50,000

Outstanding Wages ____ 30,250

Input CGST 5,000 ____

Input SGST 5,000 ____

Input IGST 8,000 ____

Output CGST ____ 4,000

Output SGST ____ 4,000

Output IGST ____ 9,500

Total 15,41,880 15,41,880

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2023 and Balance Sheet as at that
date after following adjustments:

i. Stock on 31st March, 2023 was ₹ 62,750.

ii. Depreciation on furniture is to be charged @ 10%.
iii. Sundry Debtors include an amount of ₹ 2,500 due from a customer who has become insolvent.
iv. The remaining debtors are good.
 v. On 26th March, 2023, goods costing ₹ 7,500 were destroyed by fire and insurance company admitted a claim
for ₹ 5,000. The amount was received on 10th April, 2023 (Ignore GST).
vi. Received goods from Rohit & Co. of ₹ 6,000 on 27th March, 2023 but the invoice of purchase was not
recorded in the Purchases Book (Ignore GST).
OR
From the following balances of M/s Nilu Sarees as on 31st March, 2017. Prepare trading and profit and loss account
and balance sheet as on date.

Account Title Debit Amount (₹) Account Title Credit Amount (₹)

Opening stock 10,000 Sales 2,28,000

Purchases 78,000 Capital 70,000

Carriage inwards 2,500 Interest 7,000

Salaries 30,000 Commission 8,000

Commission 10,000 Creditors 28,000

Wages 11,000 Bills Payable 23,700

Rent and taxes 2,800

Repeir 5,000

Telephone expenses 1,400

Legal charges 1,500

Sundry expenses 2,500

Cash in hand 12,000

Debtors 30,000

Machinery 60,000

Investments 90,000

Drawings 18,000

Closing stock as on 31st March, 2017 ₹ 22,000.