Practice paper 3

Subject Accountacy

Class XI
Time : 3 hrs Marks: 90

General Instruction

1. This Question Paper contains two part A and B.

2. All question are compulsory.
3. Answer the question after carefully reading the text.
4. All parts of question should be attempted at one place.

Part A Financial Accounting-I

1. Is cash memo a source document or an accounting voucher?

2. Rent is Paid for the month of April, 2013 in March, 2013. The accounting year
ended on 31st March, 2013. The accountant has shown it on the assets side of
balance sheet. Is he correct? Identify the value followed by the accountant.
3. A ledger account is prepared from
(a) Journal (b) transactions (c) events
(d) None of these
4. A compound journal entry
(a) has equal habits
(b) does not require narration
(c) extends to several pages
(d) None of the above (1x4)
5. State the nature of accounting information required by
(a) Management (b) Owners (3)
6. From the following particulars, prepare a bank reconciliation statement
showing the balance as per cash book on 31st December, 2013.
(i) The following cheques were paid into bank in December, but
were credited in January X Rs. 35,000, Y Rs. 25,000 and Z Rs. 20,000.
 (ii) The following cheques were issued by the firm in December, but were
presented in January P Rs. 40,000, Q Rs. 45,000.
(iii) A cheque for Rs. 10,000 which was received from a customer was
entered in the bank column of the cash book in December, but was
omitted to be banked in December.
(iv) The pass book shows a debit entry of Rs. 10,000 for bank charges and
credit entry of Rs. 20,000 for interest.
(v) Interest on investment Rs. 25,000 collected by bank appeared in the pass
book.
(vi) The bank balance as per pass book was Rs. 6,20,000 on 31st December
2013.Briefly discuss the three branches of accounting ?(3)
7. Explain briefly an three advantages of double entry system of accounting ?
(3)
8. Explain briefly any three advantages of double entry system
(3)
9...Record the following in the appropriate book of original entry.

2013 Amt. (Rs.) 2013

Amt. (Rs.)
Aug. 1 Cash in hand 62,000 Aug. 5 Received cheque from Varun
27,000
Aug. 1 Bank overdraft 7,000 Aug. 6 Deposited Varun’s Cheque into
Aug. 3 Deposited into bank 15,000 bank
Aug. 31 Bank Charges
325 (4)

10..Rectify the following errors

(i) Wages paid kfor installation of machinery Rs. 500 was posted to wages
account Rs. 50.
(ii) Machinery purchased from Ram & Co for Rs. 10,000 on credit was
entered in purchased book as Rs. 6,000 and posted there from to Ram &
Co as Rs. 1,000.
(iii) Credit sales to Vishal Rs. 5,000 were recorded in purchase book.
 (iv) Credit purchases from Sohan & Co for Rs. 6,000 were recorded in sales
book, However, Sohan & Co was correctly credited . (4)
11. The rough book of M/s MNO & Co contains the following

2013
Dec. 1 Purchased from M/s ONG & Co on credit
5 gross pencils @ 100 per gross
1 gross register @ 200 per dozen
(-) trade discount @ 10%
Dec 2 Purchased for cash from the RST stationery mart.
10 gross exercise books @ Rs. 60 per dozen
Dec 3 Purchased computer printer for officer use from M/s office goods Co on
credit for Rs. 4,000
Dec 4 Purchased on credit from the XYZ paper Co
5 reams of white paper @ Rs. 100 per ream
10 eams of ruled paper @ Rs. 65 per ream
(-) Trade discount @ 10%
Dec 5 Purchased 1 dozen ink-post @ Rs.10 each from M/s Verma Bros on
credit.
Prepare the purchases book of M/s MNO & Co. (4)

12. Mr. Nanda started business as on 1st April, 2013 with a capital of 15,00,000.

During the year, the following transaction took place.

Amt. (Rs.)
(i) Furniture purchased for cash 2.00.000
(ii) Purchased goods from N on credit 2,50,000
(iii) Sold good (costing Rs. 1,00,000) to M for cash 1,40,000
(iv) Additional capital introduced 2,00,000
(v) Commission received in advance 20,000
(vi) Paid to credit Z Rs. 2,25,000 in full settlement.
(vii) Sold good (costing Rs. 1,50,000) for Rs. 1,80,000 out
which Rs. 50,000 received in cash.
 (viii) Depreciation on furniture provided @ 10% (4)

13. On 1st October, 2011 the MNP transport company purchase a truck for Rs.
40,00,00 on 1st April, 2013 this truck was involved in an accident and was
completely destroyed and Rs. 30,00,000 were received form the insurance
company in full settlement. On the same date another truck was purchased by
the company for Rs. 50,00,000. The Company writers off 20% depreciation
per annum on written down value method. Give the truck account from 2011 to
2013. (6)

14. A sell goods to B for Rs. 10,000 and draws a bill on him for the same amount
for 3 months, Before the due date, B requests A to cancel the bill, to accept Rs.
3,000 as part payment and to draw a fresh bill on him for Rs. 7,200 for a further
period of 2 month Rs. 200 being the interest for the extended period. A agrees
to the proposal. The new bill is duly honoured. Pass the necessary journal
entries and other party’s account in the books of both parties. (6)
15. (i) Briefly explain the concept based on the premise ‘do not anticipate
profit but provide for all losses’.
(ii) Explain briefly ‘full disclosure’ principle of accounting ? (6)

Part B Financial Accounting -II

16. It is an information system the provide needed information to the managers to
manage the organisation effectively?
(a) System software (b) Application software

(c) MIS (d) AIS (1)

17. State the similarity between a receipt and payment account and an income an
expenditure account? (1)
18. Briefly discuss any three elements/components of a computer system? (3)
19. Calculate the value of opening stock.
 Amt. (Rs.)
Amt. (Rs.)
Cash sales 4,00,000 Credit sales
16,50,000
Sales return (out of credit sales) 50,000 Purchases
12,40,000 Purchases return 40.000 Carriage
inwards 80,000
Closing stock 3,60, 000 Rate of gross profit
40% on sale

(3)

20. Varun Malhotra Keeps incomplete records. The Statement of affairs of his
business as on 1st April, 2012 was as follows

Liabilities Amt. (Rs.) Assets Amt. (Rs.)

Creditors 50,000 Cash in hand 4,000
Capital 7,00,000 Cash at bank 16,000
Debtors 1,70,000
Debtors 2,00,000
Stock 60,000
Furniture 3,00,000
7,50,000 7,50,000
His position on 31st March, 2013 was cash in hand Rs. 10,000 cash at bank Rs.
20,000, bills receivable Rs. 40,00,000, Debtors Rs. 2,10,000, Stock Rs.
3,20,000 furniture Rs. 80,000 plant and machinery Rs. 4,00,000 and creditors
Rs. 1,80,000.

He withdraw during the year Rs. 3,00,000 out of which he spent Rs. 1,80,000
for purchasing a scooter for the business.

Calculate his net profit for the year after the following adjustments
 (i) Depreciation furniture and scooter @ 20%
(ii) 5% of the debtors are doubtful and Rs. 8,000 are absolutely bad.
(iii) Make a prevision of 5% on bills receivable also. (4)
(iv)
21. (i) A Computer system possesses some characteristics which in comparison
to human beings, turn out to its capabilities. Discuss any three such
characteristics.
(ii) Briefly discuss management information system? (6)

22. (i) From the following items of receipt &payments a/c of young ladies club ,
prepare an income & expenditure a/c for the year ended 31st March 2013.

Amount

Salaries paid 50,000

Lighting & Heating 5,000

Printing & Stationary (including Rs 500 for previous year) 3,500

Subscription Received (including Rs 2000 received in advance &

Rs 5000 for previous year) 40,000

Net Proceeds of refreshment room 45,000

Miscellaneous expenses 16,000

Interest paid on loan for half year 1,200

Rent & Rates (including Rs1000 prepaid) 7,500

Locker rent received 4,500

ADDITIONAL INFORMATION

Subscription in areas on 31st March 2013 were Rs 8000 and half year interest
on loan was also outstanding .

(ii) Give two main sources of income of non-profit organization (NPO) ? (6)
23. (i) From the following receipt &payments a/c for the year ended 31st Dec.
2013 & additional information given , prepare an income & expenditure a/c of
Nariman Club for the year ended 31st March 2013.

Receipt & Payment a/c

For the year ended 31st Dec. 2013

Receipts Amount Payment Amount

Balance B/D Salary 1,65,000
Cash 8900 Billiards Table 1,75,000
Bank 70,000 78,900 Office Expenses 41,000
Subscriptions 2,22,000 Stationary 23,000
Life Membership 3,22,000 Tournament Exp. 2,05,000
Tournament 2,00,000 Furniture. Purchased 77,000
Fund
Locker Rent 15,000 Sports equipments 1,20,000
purchased
Sale of old sports 25,000 Cash in hand 6900
material (costing=
2200)
Interest on F.D. 5,000 Cash at bank 2,20,000 2,26,900
st
Legacy 3,75,000 F.D. (as on 1 Mar.2008 at 3,00,000
10% per annum)
Entrance Fees 90,000

Total 13,32,000 Total 13,32,000

ADDITIONAL INFORMATION

Subscription outstsnding on 1st Jan. 2013 were Rs 1500 and on 31st Dec. 2013
were Rs. 20000 on 1st Jan. 2013 the club had building Rs. 4,00,000 & furniture
Rs. 1,50,000 sports equipment Rs 1,60,000 . Charge depreciation on these
items @10% including purchases during the year.

(ii) How is subscription calculated ? (8)

24. On 31st mar,2013,the following trial balance was extracted from the books
of a merchant .
Dr. balance Amt. Dr. balance(cont.) Amt.
Drawings 3,00,000 advertising 2,26,100
Sundry debtors 20,10,000 General expenses 3,48,900
Interest on loan ,30,000, Bill receivable 6,88,000
Cash in hand 2,05,000, Credit balances
Stock on 1st 6,83,900 Capital 28,00,000
apr,2012
Motor vehicles 10,00,000 Sundry creditors 10,40,000
Cash at bank 3,55,000 Loan on mortgage 9,50,000
building 12,00,000 Provision for 71,000
doubtful debts
Bad debts 52,500 Sales 1,10,24,300
Purchases 66,45,800 Purchase return 1,34,600
Sales return 7,82,100 Discount 54,000
Carriage outward 2,40,400 Bills payable 2,61,400
Carriage inward 2,92,900 Rent receivable 25,000
Salaries 9,09,700
Rates, taxes and 2,89,100
insurance

Prepare the trading and P&L a/c for the year ended 31st mar,2013 and balance
sheet as at that date after making adjustments from the following matters.

1. depreciate buildings at 2.5% and motor vehicles at 20%

2.interest on loan at 6% per annum is unpaid for 6 months.

3. Salaries amounted to Rs,75,000 and rates amounted to 35,000 are

outstanding.

4.Prepaid insurance amounted to 15,000

5. Provision for doubtful debts is to be maintained at 5% on sundry debtors.

6. Provision for manager ‘s commission at 10% on net profit after changing

such commission.

7. Stock in hand on 31st March 2013 was valued at Rs 57,68,200 (8)