Accounting (Paper-1) - September 2024 | Mock Tests & Past Year Papers for CA Foundation PDF Download

 Page 1


 
 
QUESTIONS 
True and False  
1. State with reasons, whether the following statements are true or false:  
(a)  Accrual concept implies accounting on cash basis. 
(b)  The Sales book is kept to record both cash and credit sales. 
(c)  Bank reconciliation statement is prepared to arrive at the bank 
balance. 
(d) The provision for bad debts is debited to sundry debtors 
account. 
(e)  Periodic inventory system is a method of ascertaining inventory by 
taking an actual physical count.  
(f)  Discount at the time of retirement of a bill is a gain for the drawee. 
(g) The provision for discount on creditors is often not provided in 
keeping with the principle of conservatism.  
(h)  Partners can share profits or losses in their capital ratio, when 
there is no agreement. 
(i)  Both revenue and capital nature transactions are recorded in the 
Receipts and Payments Account.  
(j) A fixed charge generally covers all the assets of the company 
including future one. 
Theoretical Framework  
2. Explain Cash and Mercantile system of accounting. 
PAPER – 1: 
ACCOUNTING 
Page 2


 
 
QUESTIONS 
True and False  
1. State with reasons, whether the following statements are true or false:  
(a)  Accrual concept implies accounting on cash basis. 
(b)  The Sales book is kept to record both cash and credit sales. 
(c)  Bank reconciliation statement is prepared to arrive at the bank 
balance. 
(d) The provision for bad debts is debited to sundry debtors 
account. 
(e)  Periodic inventory system is a method of ascertaining inventory by 
taking an actual physical count.  
(f)  Discount at the time of retirement of a bill is a gain for the drawee. 
(g) The provision for discount on creditors is often not provided in 
keeping with the principle of conservatism.  
(h)  Partners can share profits or losses in their capital ratio, when 
there is no agreement. 
(i)  Both revenue and capital nature transactions are recorded in the 
Receipts and Payments Account.  
(j) A fixed charge generally covers all the assets of the company 
including future one. 
Theoretical Framework  
2. Explain Cash and Mercantile system of accounting. 
PAPER – 1: 
ACCOUNTING 
 
FOUNDATION EXAMINATION 
 
 
2 
 
REVISION TEST PAPER 
SEPTEMBER 2024 EXAMINATION 
Journal Entries  
3. (a) You are required to pass necessary journal entries in the books of 
Kewal: 
(i) Cheque amounting ` 9,000 from Hari Krishan in full 
settlement of his account for ` 10,000. 
(ii) Withdrawn for personal use: Goods (Sales Price ` 8,000, Cost 
` 6,000), cash ` 1,000 
(iii) Goods costing ` 3,000 (Sale price `4,000) distributed as free 
samples. 
(iv) Received commission ` 10,000, half of which does not relate 
of current year and is received in advance. 
(v) Purchased second hand machinery from Jawahar industries 
for ` 3,00,000 plus CGST and SGST @ 6% each. Paid ` 
1,00,000 immediately by cheque and balance to be paid after 
two months. 
Capital or Revenue Expenditure  
(b) Classify the following expenditures as capital or revenue 
expenditure: 
(i) Travelling expenses of the directors for trips abroad for 
purchase of capital assets. 
(ii) Amount spent to reduce working expenses. 
(iii) Amount paid for removal of stock to a new site. 
(iv) Cost of repairs on second-hand car purchased to bring it into 
working condition. 
(v) Amount spent on renewal fee of patent rights. 
Cash Book   
4. (a) Prepare a Triple Column Cash Book from the following transactions 
of M/s Ram Agencies and bring down the balance for the start of 
next month: 
 
Page 3


 
 
QUESTIONS 
True and False  
1. State with reasons, whether the following statements are true or false:  
(a)  Accrual concept implies accounting on cash basis. 
(b)  The Sales book is kept to record both cash and credit sales. 
(c)  Bank reconciliation statement is prepared to arrive at the bank 
balance. 
(d) The provision for bad debts is debited to sundry debtors 
account. 
(e)  Periodic inventory system is a method of ascertaining inventory by 
taking an actual physical count.  
(f)  Discount at the time of retirement of a bill is a gain for the drawee. 
(g) The provision for discount on creditors is often not provided in 
keeping with the principle of conservatism.  
(h)  Partners can share profits or losses in their capital ratio, when 
there is no agreement. 
(i)  Both revenue and capital nature transactions are recorded in the 
Receipts and Payments Account.  
(j) A fixed charge generally covers all the assets of the company 
including future one. 
Theoretical Framework  
2. Explain Cash and Mercantile system of accounting. 
PAPER – 1: 
ACCOUNTING 
 
FOUNDATION EXAMINATION 
 
 
2 
 
REVISION TEST PAPER 
SEPTEMBER 2024 EXAMINATION 
Journal Entries  
3. (a) You are required to pass necessary journal entries in the books of 
Kewal: 
(i) Cheque amounting ` 9,000 from Hari Krishan in full 
settlement of his account for ` 10,000. 
(ii) Withdrawn for personal use: Goods (Sales Price ` 8,000, Cost 
` 6,000), cash ` 1,000 
(iii) Goods costing ` 3,000 (Sale price `4,000) distributed as free 
samples. 
(iv) Received commission ` 10,000, half of which does not relate 
of current year and is received in advance. 
(v) Purchased second hand machinery from Jawahar industries 
for ` 3,00,000 plus CGST and SGST @ 6% each. Paid ` 
1,00,000 immediately by cheque and balance to be paid after 
two months. 
Capital or Revenue Expenditure  
(b) Classify the following expenditures as capital or revenue 
expenditure: 
(i) Travelling expenses of the directors for trips abroad for 
purchase of capital assets. 
(ii) Amount spent to reduce working expenses. 
(iii) Amount paid for removal of stock to a new site. 
(iv) Cost of repairs on second-hand car purchased to bring it into 
working condition. 
(v) Amount spent on renewal fee of patent rights. 
Cash Book   
4. (a) Prepare a Triple Column Cash Book from the following transactions 
of M/s Ram Agencies and bring down the balance for the start of 
next month: 
 
 
ACCOUNTING 
 
 
 
3  
REVISION TEST PAPER 
SEPTEMBER 2024 EXAMINATION 
 
2024   
` 
March 1 Cash in hand 30,000 
 1 Cash at bank 1,20,000 
 2 Paid into bank 10,000 
 5 Bought furniture and issued cheque 15,000 
 8 Purchased goods for cash 5,000 
 12 Received cash from Mohan 9,800 
  Discount allowed to him 200 
 14 Cash sales 50,000 
 16 Paid to Lata by cheque 14,500 
  Discount received 500 
 19 Paid into Bank 5,000 
 23 Withdrawn from Bank for Private 
expenses 
6,000 
 24 Received cheque from Gupta 14,300 
  Allowed him discount 200 
 26 Deposited Gupta's cheque into 
Bank 
 
 28 Withdrew cash from Bank for Office 
use 
20,000 
 30 Paid rent by cheque 8,000 
Rectification of Errors  
(b) Pass the Journal entries to rectify the following errors detected 
during preparation of the Trial Balance: 
(i) Wages paid for construction of office building debited to 
wages account ` 20,000. 
(ii) A credit sale of goods ` 1,200 to Ramesh has been wrongly 
passed through the Purchase Book.  
(iii) An amount of ` 2,000 due from Mahesh Chand which had 
Page 4


 
 
QUESTIONS 
True and False  
1. State with reasons, whether the following statements are true or false:  
(a)  Accrual concept implies accounting on cash basis. 
(b)  The Sales book is kept to record both cash and credit sales. 
(c)  Bank reconciliation statement is prepared to arrive at the bank 
balance. 
(d) The provision for bad debts is debited to sundry debtors 
account. 
(e)  Periodic inventory system is a method of ascertaining inventory by 
taking an actual physical count.  
(f)  Discount at the time of retirement of a bill is a gain for the drawee. 
(g) The provision for discount on creditors is often not provided in 
keeping with the principle of conservatism.  
(h)  Partners can share profits or losses in their capital ratio, when 
there is no agreement. 
(i)  Both revenue and capital nature transactions are recorded in the 
Receipts and Payments Account.  
(j) A fixed charge generally covers all the assets of the company 
including future one. 
Theoretical Framework  
2. Explain Cash and Mercantile system of accounting. 
PAPER – 1: 
ACCOUNTING 
 
FOUNDATION EXAMINATION 
 
 
2 
 
REVISION TEST PAPER 
SEPTEMBER 2024 EXAMINATION 
Journal Entries  
3. (a) You are required to pass necessary journal entries in the books of 
Kewal: 
(i) Cheque amounting ` 9,000 from Hari Krishan in full 
settlement of his account for ` 10,000. 
(ii) Withdrawn for personal use: Goods (Sales Price ` 8,000, Cost 
` 6,000), cash ` 1,000 
(iii) Goods costing ` 3,000 (Sale price `4,000) distributed as free 
samples. 
(iv) Received commission ` 10,000, half of which does not relate 
of current year and is received in advance. 
(v) Purchased second hand machinery from Jawahar industries 
for ` 3,00,000 plus CGST and SGST @ 6% each. Paid ` 
1,00,000 immediately by cheque and balance to be paid after 
two months. 
Capital or Revenue Expenditure  
(b) Classify the following expenditures as capital or revenue 
expenditure: 
(i) Travelling expenses of the directors for trips abroad for 
purchase of capital assets. 
(ii) Amount spent to reduce working expenses. 
(iii) Amount paid for removal of stock to a new site. 
(iv) Cost of repairs on second-hand car purchased to bring it into 
working condition. 
(v) Amount spent on renewal fee of patent rights. 
Cash Book   
4. (a) Prepare a Triple Column Cash Book from the following transactions 
of M/s Ram Agencies and bring down the balance for the start of 
next month: 
 
 
ACCOUNTING 
 
 
 
3  
REVISION TEST PAPER 
SEPTEMBER 2024 EXAMINATION 
 
2024   
` 
March 1 Cash in hand 30,000 
 1 Cash at bank 1,20,000 
 2 Paid into bank 10,000 
 5 Bought furniture and issued cheque 15,000 
 8 Purchased goods for cash 5,000 
 12 Received cash from Mohan 9,800 
  Discount allowed to him 200 
 14 Cash sales 50,000 
 16 Paid to Lata by cheque 14,500 
  Discount received 500 
 19 Paid into Bank 5,000 
 23 Withdrawn from Bank for Private 
expenses 
6,000 
 24 Received cheque from Gupta 14,300 
  Allowed him discount 200 
 26 Deposited Gupta's cheque into 
Bank 
 
 28 Withdrew cash from Bank for Office 
use 
20,000 
 30 Paid rent by cheque 8,000 
Rectification of Errors  
(b) Pass the Journal entries to rectify the following errors detected 
during preparation of the Trial Balance: 
(i) Wages paid for construction of office building debited to 
wages account ` 20,000. 
(ii) A credit sale of goods ` 1,200 to Ramesh has been wrongly 
passed through the Purchase Book.  
(iii) An amount of ` 2,000 due from Mahesh Chand which had 
 
FOUNDATION EXAMINATION 
 
 
4 
 
REVISION TEST PAPER 
SEPTEMBER 2024 EXAMINATION 
been written off as a bad debit in the previous year was 
unexpectedly recovered and has been posted to the personal 
account of Mahesh Chand. 
(iv) Goods (Cost being ` 15,000 and Sales price being ` 16,000) 
distributed as free samples amount prospective customers 
were not recorded anywhere. 
(v) Goods worth ` 1,500 returned by Ritu have not been 
recorded anywhere.  
Bank Reconciliation Statement  
5. According to the cash-book of Mihir there was balance of ` 4,45,000 in 
his bank on 30
th
 June, 2024 On investigation you find that : 
(i) Cheques amounting to 60,000 issued to creditors have not been 
presented for payment till the date 
(ii) Cheques paid into bank amounting to 1,10,500 out of which 
cheques amounting to ` 55,000 only collected by bank up to 30th 
June 2024  
(iii) A dividend of ` 4,000 and rent amounting to 60,000 received by 
the bank and entered in the pass-book but not recorded in the 
cash book.  
(iv) Insurance premium (up to 31
st
 December, 2023) paid by the bank  
` 2,700 not entered in the cash book. 
(v) The payment side of the cash book had been under cast by ` 500 
(vi) Bank charges ` 150 shown in the pass book had not been entered 
in the cash book. 
(vii) A bill payable of ` 20,000 had been paid by the bank but was not 
entered in the cash book and bill receivable for ` 6,000 had been 
discounted with the bank at a cost of ` 100 which had also not 
been recorded in cash book. 
You are required: 
(1) To make the appropriate adjustments in the cash book, and  
(2) To prepare a statement reconciling it with the bank pass book.  
Page 5


 
 
QUESTIONS 
True and False  
1. State with reasons, whether the following statements are true or false:  
(a)  Accrual concept implies accounting on cash basis. 
(b)  The Sales book is kept to record both cash and credit sales. 
(c)  Bank reconciliation statement is prepared to arrive at the bank 
balance. 
(d) The provision for bad debts is debited to sundry debtors 
account. 
(e)  Periodic inventory system is a method of ascertaining inventory by 
taking an actual physical count.  
(f)  Discount at the time of retirement of a bill is a gain for the drawee. 
(g) The provision for discount on creditors is often not provided in 
keeping with the principle of conservatism.  
(h)  Partners can share profits or losses in their capital ratio, when 
there is no agreement. 
(i)  Both revenue and capital nature transactions are recorded in the 
Receipts and Payments Account.  
(j) A fixed charge generally covers all the assets of the company 
including future one. 
Theoretical Framework  
2. Explain Cash and Mercantile system of accounting. 
PAPER – 1: 
ACCOUNTING 
 
FOUNDATION EXAMINATION 
 
 
2 
 
REVISION TEST PAPER 
SEPTEMBER 2024 EXAMINATION 
Journal Entries  
3. (a) You are required to pass necessary journal entries in the books of 
Kewal: 
(i) Cheque amounting ` 9,000 from Hari Krishan in full 
settlement of his account for ` 10,000. 
(ii) Withdrawn for personal use: Goods (Sales Price ` 8,000, Cost 
` 6,000), cash ` 1,000 
(iii) Goods costing ` 3,000 (Sale price `4,000) distributed as free 
samples. 
(iv) Received commission ` 10,000, half of which does not relate 
of current year and is received in advance. 
(v) Purchased second hand machinery from Jawahar industries 
for ` 3,00,000 plus CGST and SGST @ 6% each. Paid ` 
1,00,000 immediately by cheque and balance to be paid after 
two months. 
Capital or Revenue Expenditure  
(b) Classify the following expenditures as capital or revenue 
expenditure: 
(i) Travelling expenses of the directors for trips abroad for 
purchase of capital assets. 
(ii) Amount spent to reduce working expenses. 
(iii) Amount paid for removal of stock to a new site. 
(iv) Cost of repairs on second-hand car purchased to bring it into 
working condition. 
(v) Amount spent on renewal fee of patent rights. 
Cash Book   
4. (a) Prepare a Triple Column Cash Book from the following transactions 
of M/s Ram Agencies and bring down the balance for the start of 
next month: 
 
 
ACCOUNTING 
 
 
 
3  
REVISION TEST PAPER 
SEPTEMBER 2024 EXAMINATION 
 
2024   
` 
March 1 Cash in hand 30,000 
 1 Cash at bank 1,20,000 
 2 Paid into bank 10,000 
 5 Bought furniture and issued cheque 15,000 
 8 Purchased goods for cash 5,000 
 12 Received cash from Mohan 9,800 
  Discount allowed to him 200 
 14 Cash sales 50,000 
 16 Paid to Lata by cheque 14,500 
  Discount received 500 
 19 Paid into Bank 5,000 
 23 Withdrawn from Bank for Private 
expenses 
6,000 
 24 Received cheque from Gupta 14,300 
  Allowed him discount 200 
 26 Deposited Gupta's cheque into 
Bank 
 
 28 Withdrew cash from Bank for Office 
use 
20,000 
 30 Paid rent by cheque 8,000 
Rectification of Errors  
(b) Pass the Journal entries to rectify the following errors detected 
during preparation of the Trial Balance: 
(i) Wages paid for construction of office building debited to 
wages account ` 20,000. 
(ii) A credit sale of goods ` 1,200 to Ramesh has been wrongly 
passed through the Purchase Book.  
(iii) An amount of ` 2,000 due from Mahesh Chand which had 
 
FOUNDATION EXAMINATION 
 
 
4 
 
REVISION TEST PAPER 
SEPTEMBER 2024 EXAMINATION 
been written off as a bad debit in the previous year was 
unexpectedly recovered and has been posted to the personal 
account of Mahesh Chand. 
(iv) Goods (Cost being ` 15,000 and Sales price being ` 16,000) 
distributed as free samples amount prospective customers 
were not recorded anywhere. 
(v) Goods worth ` 1,500 returned by Ritu have not been 
recorded anywhere.  
Bank Reconciliation Statement  
5. According to the cash-book of Mihir there was balance of ` 4,45,000 in 
his bank on 30
th
 June, 2024 On investigation you find that : 
(i) Cheques amounting to 60,000 issued to creditors have not been 
presented for payment till the date 
(ii) Cheques paid into bank amounting to 1,10,500 out of which 
cheques amounting to ` 55,000 only collected by bank up to 30th 
June 2024  
(iii) A dividend of ` 4,000 and rent amounting to 60,000 received by 
the bank and entered in the pass-book but not recorded in the 
cash book.  
(iv) Insurance premium (up to 31
st
 December, 2023) paid by the bank  
` 2,700 not entered in the cash book. 
(v) The payment side of the cash book had been under cast by ` 500 
(vi) Bank charges ` 150 shown in the pass book had not been entered 
in the cash book. 
(vii) A bill payable of ` 20,000 had been paid by the bank but was not 
entered in the cash book and bill receivable for ` 6,000 had been 
discounted with the bank at a cost of ` 100 which had also not 
been recorded in cash book. 
You are required: 
(1) To make the appropriate adjustments in the cash book, and  
(2) To prepare a statement reconciling it with the bank pass book.  
 
ACCOUNTING 
 
 
 
5  
REVISION TEST PAPER 
SEPTEMBER 2024 EXAMINATION 
 
Valuation of Inventories  
6. From the following particulars ascertain the value of inventories as on 
31
st
 March, 2024 :  
Inventory as on 1st April, 2023     ` 3,50,000 
Purchase made during the year     ` 12,00,000 
Sales            ` 18,50,000 
Manufacturing Expenses      ` 1,00,000 
Selling and Distribution Expenses    ` 50,000  
Administration Expenses      ` 80,000  
 At the time of valuing inventory as on 31st March, 2023, a sum of  
` 20,000 was written off on a particular item which was originally 
purchased for ` 55,000 and was sold during the year for ` 50,000.  
 Except the above mentioned transaction, gross profit earned during the 
year was 20 % on sales.  
Depreciation and Amortisation  
7. M/s. Deepak Transport Company purchased 10 trucks @ ` 50,00,000 
each on 1
st
 October,2020. On 1
st
 January, 2023, one of the trucks is 
involved in an accident and is completely destroyed and ` 35,00,000 is 
received from the insurance in full settlement. On the same date, 
another truck is purchased by the company for the sum of ` 60,00,000. 
The company writes off 20% of the original cost per annum.  
 Give the motor truck account for the years ending 31st March, 2023 and 
31
st
 March,2024. 
Bills of Exchange   
8. Aadya owed ` 1,00,000 to Aanya. On 1
st
 October, 2023, Aadya accepted 
a bill drawn by Aanya for the amount at 3 months. Aanya got the bill 
discounted with his bank for ` 99,000 on 3
rd
 October, 2023. Before the 
due date, Aadya approached Aanya for renewal of the bill. Aanya agreed 
on the conditions that ` 50,000 be paid immediately together with 
interest on the remaining amount at 12% per annum for 3 months and