Accounting Model Test Paper - 8 (Answers) | Mock Tests & Past Year Papers for CA Foundation PDF Download

 Page 1


ANSWERS OF MODEL TEST PAPER 8 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
ANSWERS 
1. (a) (i)  False: Depreciation is a charge against profit and not an 
appropriation of profit. Therefore, depreciation has to be provided 
for, even in case of loss in a financial year. 
(ii)  False: At the end of the accounting year, all the nominal accounts 
of the ledger book are totalled and transferred to Profit & Loss A/c.   
(iii) False: Amount spent for replacement of any worn- out part of a 
machine is revenue expense since it is part of its maintenance cost. 
(iv)  False: In case of admission of new partner in a partnership firm, 
profit/loss on revaluation account is transferred to old partners in 
their old profit-sharing ratio. 
(v) False: The debit notes issued are used to prepare purchases return 
book. 
(vi) False: Debentures Suspense Account appears on asset side of 
Balance Sheet under Non-Current Asset. 
(b) Accounting Standards are selected set of accounting policies or broad 
guidelines regarding the principles and methods to be chosen out of 
several alternatives. The Accounting Standards Board of the Institute of 
Chartered Accountants of India (ICAI) formulates Accounting Standards 
to be established by the Council of the ICAI.  The main objective of 
Accounting Standards is to establish standards which have to be 
complied with, to ensure that financial statements are prepared in 
accordance with generally accepted accounting principles. Accounting 
Standards seek to suggest rules and criteria of accounting 
measurements. These standards harmonize the diverse accounting 
policies and practices at present in use in India. 
(c)  Corrected Trial Balance of Mr. Govind as on 31
st
 March, 2024 
Particulars Dr. Amount ` Cr. Amount `  
Govind ’s Capital 
 
14,004 
Govind ’s Drawings 5,076  
Leasehold Premises 6,750  
Sales 
 
24,750 
Due from customers 4,770  
Purchases 11,331  
Purchases Returns   2,376 
Loan from Bank   2,304 
Trade expenses 6,300   
Trade Payable   4,752 
586
Page 2


ANSWERS OF MODEL TEST PAPER 8 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
ANSWERS 
1. (a) (i)  False: Depreciation is a charge against profit and not an 
appropriation of profit. Therefore, depreciation has to be provided 
for, even in case of loss in a financial year. 
(ii)  False: At the end of the accounting year, all the nominal accounts 
of the ledger book are totalled and transferred to Profit & Loss A/c.   
(iii) False: Amount spent for replacement of any worn- out part of a 
machine is revenue expense since it is part of its maintenance cost. 
(iv)  False: In case of admission of new partner in a partnership firm, 
profit/loss on revaluation account is transferred to old partners in 
their old profit-sharing ratio. 
(v) False: The debit notes issued are used to prepare purchases return 
book. 
(vi) False: Debentures Suspense Account appears on asset side of 
Balance Sheet under Non-Current Asset. 
(b) Accounting Standards are selected set of accounting policies or broad 
guidelines regarding the principles and methods to be chosen out of 
several alternatives. The Accounting Standards Board of the Institute of 
Chartered Accountants of India (ICAI) formulates Accounting Standards 
to be established by the Council of the ICAI.  The main objective of 
Accounting Standards is to establish standards which have to be 
complied with, to ensure that financial statements are prepared in 
accordance with generally accepted accounting principles. Accounting 
Standards seek to suggest rules and criteria of accounting 
measurements. These standards harmonize the diverse accounting 
policies and practices at present in use in India. 
(c)  Corrected Trial Balance of Mr. Govind as on 31
st
 March, 2024 
Particulars Dr. Amount ` Cr. Amount `  
Govind ’s Capital 
 
14,004 
Govind ’s Drawings 5,076  
Leasehold Premises 6,750  
Sales 
 
24,750 
Due from customers 4,770  
Purchases 11,331  
Purchases Returns   2,376 
Loan from Bank   2,304 
Trade expenses 6,300   
Trade Payable   4,752 
586
Bills payable 900 
Salaries and Wages 5,400 
Cash at Bank 2,034 
Opening Inventory (1.4.2023) 2,376 
Rent and rates 4,167 
Sales return 882 
49,086 49,086 
Reasons: 
1. Due from customers is an asset, so its balance will be a debit
balance.
2. Purchases return account always shows a credit balance because
assets goes out.
3. Trade Payable is a liability, so its balance will be a credit balance.
4. Bills payable is a liability, so its balance will be a credit balance.
5. Inventory (opening) represents assets, so it will have a debit
balance.
6. Sales return account always shows a debit balance because assets
come in.
2. (a)   Valuation of Physical Stock as at March 31, 2024
` 
Stock at cost on 31
st
 December,2023 80,000 
Add:  (1)   Undercasting of a page total 200 
(2) Goods purchased and delivered
during January – March, 2024
` (70,000 – 3,000 + 4,000) 71,000 
(3) Cost of sales return ` (1,000 – 200)     800    72,000 
1,52,000 
Less:(1) Overcasting of a page total 
` (6,000 – 5,000) 
(1,000 ) 
(2) Goods sold and dispatched during
January – March, 2024
      ` (90,000 – 5,000 + 4,000)   89,000 
Less: Profit margin ?
?
?
?
?
?
×
125
25
  89,000  17,800 
(71,200 )    (72,200 ) 
Value of stock as on 31st March, 2024    79,800 
Note:  In the above solution, transfer of ownership is assumed to take 
place at the time of delivery of goods.  If it is assumed that transfer of 
ownership takes place on the date of invoice, therefore ` 4,000 goods 
delivered in March 2024 for which invoice was received in April, 2024, 
would be treated as purchases of the accounting year 2024-2025 and 
thus excluded.  Similarly, goods dispatched in March, 2024 but invoiced 
587
Page 3


ANSWERS OF MODEL TEST PAPER 8 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
ANSWERS 
1. (a) (i)  False: Depreciation is a charge against profit and not an 
appropriation of profit. Therefore, depreciation has to be provided 
for, even in case of loss in a financial year. 
(ii)  False: At the end of the accounting year, all the nominal accounts 
of the ledger book are totalled and transferred to Profit & Loss A/c.   
(iii) False: Amount spent for replacement of any worn- out part of a 
machine is revenue expense since it is part of its maintenance cost. 
(iv)  False: In case of admission of new partner in a partnership firm, 
profit/loss on revaluation account is transferred to old partners in 
their old profit-sharing ratio. 
(v) False: The debit notes issued are used to prepare purchases return 
book. 
(vi) False: Debentures Suspense Account appears on asset side of 
Balance Sheet under Non-Current Asset. 
(b) Accounting Standards are selected set of accounting policies or broad 
guidelines regarding the principles and methods to be chosen out of 
several alternatives. The Accounting Standards Board of the Institute of 
Chartered Accountants of India (ICAI) formulates Accounting Standards 
to be established by the Council of the ICAI.  The main objective of 
Accounting Standards is to establish standards which have to be 
complied with, to ensure that financial statements are prepared in 
accordance with generally accepted accounting principles. Accounting 
Standards seek to suggest rules and criteria of accounting 
measurements. These standards harmonize the diverse accounting 
policies and practices at present in use in India. 
(c)  Corrected Trial Balance of Mr. Govind as on 31
st
 March, 2024 
Particulars Dr. Amount ` Cr. Amount `  
Govind ’s Capital 
 
14,004 
Govind ’s Drawings 5,076  
Leasehold Premises 6,750  
Sales 
 
24,750 
Due from customers 4,770  
Purchases 11,331  
Purchases Returns   2,376 
Loan from Bank   2,304 
Trade expenses 6,300   
Trade Payable   4,752 
586
Bills payable 900 
Salaries and Wages 5,400 
Cash at Bank 2,034 
Opening Inventory (1.4.2023) 2,376 
Rent and rates 4,167 
Sales return 882 
49,086 49,086 
Reasons: 
1. Due from customers is an asset, so its balance will be a debit
balance.
2. Purchases return account always shows a credit balance because
assets goes out.
3. Trade Payable is a liability, so its balance will be a credit balance.
4. Bills payable is a liability, so its balance will be a credit balance.
5. Inventory (opening) represents assets, so it will have a debit
balance.
6. Sales return account always shows a debit balance because assets
come in.
2. (a)   Valuation of Physical Stock as at March 31, 2024
` 
Stock at cost on 31
st
 December,2023 80,000 
Add:  (1)   Undercasting of a page total 200 
(2) Goods purchased and delivered
during January – March, 2024
` (70,000 – 3,000 + 4,000) 71,000 
(3) Cost of sales return ` (1,000 – 200)     800    72,000 
1,52,000 
Less:(1) Overcasting of a page total 
` (6,000 – 5,000) 
(1,000 ) 
(2) Goods sold and dispatched during
January – March, 2024
      ` (90,000 – 5,000 + 4,000)   89,000 
Less: Profit margin ?
?
?
?
?
?
×
125
25
  89,000  17,800 
(71,200 )    (72,200 ) 
Value of stock as on 31st March, 2024    79,800 
Note:  In the above solution, transfer of ownership is assumed to take 
place at the time of delivery of goods.  If it is assumed that transfer of 
ownership takes place on the date of invoice, therefore ` 4,000 goods 
delivered in March 2024 for which invoice was received in April, 2024, 
would be treated as purchases of the accounting year 2024-2025 and 
thus excluded.  Similarly, goods dispatched in March, 2024 but invoiced 
587
in April, 2024 would be excluded and treated as sale of the year 
2024-2025. 
(b) Bank Reconciliation Statement of Ramesh Traders as on 31
st
 March,
2024
Particulars Amount 
(`) 
Amount 
(`) 
Balance as per Cash Book 8,24,400 
Add: 
Mistake in bringing forward ` 37,000/- debit 
balance as credit balance on 22nd March 
74,000 
Cheques issued but not presented  
Issued = ` 84,000 less cashed ` 57,000 
= ` 27,000/- 
27,000 
Dividend directly collected but not entered in 
cash book 
70,000 
Cheques recorded twice in the cash book 2,58,000 
Wrongly credited cheque by bank 50,000 
Discount amount wrongly entered in bank 
column  
1,000 4,80,000 
Less: 
Wrong casting in cash book on 12th March, 
2024 
(24,000 ) 
Cheque issued and not entered in the Bank 
Column 
(1,70,000 ) 
Fire Insurance premium paid directly by bank (40,000 ) 
Cheque dishonored not recorded in books (10,000 ) 
Credit card payment not recorded in cash book (5,000 ) 
Cheque wrongly deposited by bank in savings 
account 
(4,000 ) 
Bank charges debited not recorded in cash 
book 
(400 ) 
(2,53,400 ) 
Balance as per the Passbook 10,51,000 
Note : No effects of cheque deposit directly and dishonored in the same 
Month. Alternatively amount of ` 64,000/- can be added as well as 
deducted from balance as per cash book. 
588
Page 4


ANSWERS OF MODEL TEST PAPER 8 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
ANSWERS 
1. (a) (i)  False: Depreciation is a charge against profit and not an 
appropriation of profit. Therefore, depreciation has to be provided 
for, even in case of loss in a financial year. 
(ii)  False: At the end of the accounting year, all the nominal accounts 
of the ledger book are totalled and transferred to Profit & Loss A/c.   
(iii) False: Amount spent for replacement of any worn- out part of a 
machine is revenue expense since it is part of its maintenance cost. 
(iv)  False: In case of admission of new partner in a partnership firm, 
profit/loss on revaluation account is transferred to old partners in 
their old profit-sharing ratio. 
(v) False: The debit notes issued are used to prepare purchases return 
book. 
(vi) False: Debentures Suspense Account appears on asset side of 
Balance Sheet under Non-Current Asset. 
(b) Accounting Standards are selected set of accounting policies or broad 
guidelines regarding the principles and methods to be chosen out of 
several alternatives. The Accounting Standards Board of the Institute of 
Chartered Accountants of India (ICAI) formulates Accounting Standards 
to be established by the Council of the ICAI.  The main objective of 
Accounting Standards is to establish standards which have to be 
complied with, to ensure that financial statements are prepared in 
accordance with generally accepted accounting principles. Accounting 
Standards seek to suggest rules and criteria of accounting 
measurements. These standards harmonize the diverse accounting 
policies and practices at present in use in India. 
(c)  Corrected Trial Balance of Mr. Govind as on 31
st
 March, 2024 
Particulars Dr. Amount ` Cr. Amount `  
Govind ’s Capital 
 
14,004 
Govind ’s Drawings 5,076  
Leasehold Premises 6,750  
Sales 
 
24,750 
Due from customers 4,770  
Purchases 11,331  
Purchases Returns   2,376 
Loan from Bank   2,304 
Trade expenses 6,300   
Trade Payable   4,752 
586
Bills payable 900 
Salaries and Wages 5,400 
Cash at Bank 2,034 
Opening Inventory (1.4.2023) 2,376 
Rent and rates 4,167 
Sales return 882 
49,086 49,086 
Reasons: 
1. Due from customers is an asset, so its balance will be a debit
balance.
2. Purchases return account always shows a credit balance because
assets goes out.
3. Trade Payable is a liability, so its balance will be a credit balance.
4. Bills payable is a liability, so its balance will be a credit balance.
5. Inventory (opening) represents assets, so it will have a debit
balance.
6. Sales return account always shows a debit balance because assets
come in.
2. (a)   Valuation of Physical Stock as at March 31, 2024
` 
Stock at cost on 31
st
 December,2023 80,000 
Add:  (1)   Undercasting of a page total 200 
(2) Goods purchased and delivered
during January – March, 2024
` (70,000 – 3,000 + 4,000) 71,000 
(3) Cost of sales return ` (1,000 – 200)     800    72,000 
1,52,000 
Less:(1) Overcasting of a page total 
` (6,000 – 5,000) 
(1,000 ) 
(2) Goods sold and dispatched during
January – March, 2024
      ` (90,000 – 5,000 + 4,000)   89,000 
Less: Profit margin ?
?
?
?
?
?
×
125
25
  89,000  17,800 
(71,200 )    (72,200 ) 
Value of stock as on 31st March, 2024    79,800 
Note:  In the above solution, transfer of ownership is assumed to take 
place at the time of delivery of goods.  If it is assumed that transfer of 
ownership takes place on the date of invoice, therefore ` 4,000 goods 
delivered in March 2024 for which invoice was received in April, 2024, 
would be treated as purchases of the accounting year 2024-2025 and 
thus excluded.  Similarly, goods dispatched in March, 2024 but invoiced 
587
in April, 2024 would be excluded and treated as sale of the year 
2024-2025. 
(b) Bank Reconciliation Statement of Ramesh Traders as on 31
st
 March,
2024
Particulars Amount 
(`) 
Amount 
(`) 
Balance as per Cash Book 8,24,400 
Add: 
Mistake in bringing forward ` 37,000/- debit 
balance as credit balance on 22nd March 
74,000 
Cheques issued but not presented  
Issued = ` 84,000 less cashed ` 57,000 
= ` 27,000/- 
27,000 
Dividend directly collected but not entered in 
cash book 
70,000 
Cheques recorded twice in the cash book 2,58,000 
Wrongly credited cheque by bank 50,000 
Discount amount wrongly entered in bank 
column  
1,000 4,80,000 
Less: 
Wrong casting in cash book on 12th March, 
2024 
(24,000 ) 
Cheque issued and not entered in the Bank 
Column 
(1,70,000 ) 
Fire Insurance premium paid directly by bank (40,000 ) 
Cheque dishonored not recorded in books (10,000 ) 
Credit card payment not recorded in cash book (5,000 ) 
Cheque wrongly deposited by bank in savings 
account 
(4,000 ) 
Bank charges debited not recorded in cash 
book 
(400 ) 
(2,53,400 ) 
Balance as per the Passbook 10,51,000 
Note : No effects of cheque deposit directly and dishonored in the same 
Month. Alternatively amount of ` 64,000/- can be added as well as 
deducted from balance as per cash book. 
588
3. (a) In the books of Natures Beauty Society 
Income and Expenditure Account  
for the year ending 31st March, 2024 
Expenditure ` Income `
To Medicine 2,90,000 By Subscription 5,12,000 
To Honorarium 1,00,000 By donation 1,50,000 
To Salaries 2,80,000 By Interest on investment 90,000 
To Sundry 
expenses 
10,000 By Charity show 1,25,000 
To Depreciation Less: Charity show 
expenses 
(15,000) 1,10,000 
Equipment 60,000 
Building 20,000 
To Surplus 1,02,000 
8,62,000 8,62,000 
Balance Sheet of Natures Beauty Society 
as on 31
st
 March, 2024 
Liabilities ` ` Assets ` `
Capital Fund: Equipment 2,10,000 
Opening balance 18,03,000 Add: Purchases. 1,50,000 
Add: Surplus 1,02,000 19,05,000 3,60,000 
Advance 
subscription 
7,000 Less: dep. (bal. fig) (60,000) 3,00,000 
Creditors 
(medicine) 
1,30,000 Building 5,00,000 
Less: dep. (bal. fig) (20,000) 4,80,000 
Investment  
(` 90,000/9%) 
10,00,000 
Outstanding 
Subscription 
22,000 
Closing 
stock(medicine) 
1,50,000 
Cash 90,000 
20,42,000 20,42,000 
Working Note: 
(i) Subscription for the year ended 31
st
 March, 2024
Particulars Amount 
Subscription Received during the year 5,00,000 
Less: Subscription outstanding as on 1
st
 April, 2023 (15,000) 
Add: Subscription outstanding as on 31
st
 March, 2024 22,000 
Add: Subscription received in advance as on 
1
st
 April, 2023 
12,000 
589
Page 5


ANSWERS OF MODEL TEST PAPER 8 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
ANSWERS 
1. (a) (i)  False: Depreciation is a charge against profit and not an 
appropriation of profit. Therefore, depreciation has to be provided 
for, even in case of loss in a financial year. 
(ii)  False: At the end of the accounting year, all the nominal accounts 
of the ledger book are totalled and transferred to Profit & Loss A/c.   
(iii) False: Amount spent for replacement of any worn- out part of a 
machine is revenue expense since it is part of its maintenance cost. 
(iv)  False: In case of admission of new partner in a partnership firm, 
profit/loss on revaluation account is transferred to old partners in 
their old profit-sharing ratio. 
(v) False: The debit notes issued are used to prepare purchases return 
book. 
(vi) False: Debentures Suspense Account appears on asset side of 
Balance Sheet under Non-Current Asset. 
(b) Accounting Standards are selected set of accounting policies or broad 
guidelines regarding the principles and methods to be chosen out of 
several alternatives. The Accounting Standards Board of the Institute of 
Chartered Accountants of India (ICAI) formulates Accounting Standards 
to be established by the Council of the ICAI.  The main objective of 
Accounting Standards is to establish standards which have to be 
complied with, to ensure that financial statements are prepared in 
accordance with generally accepted accounting principles. Accounting 
Standards seek to suggest rules and criteria of accounting 
measurements. These standards harmonize the diverse accounting 
policies and practices at present in use in India. 
(c)  Corrected Trial Balance of Mr. Govind as on 31
st
 March, 2024 
Particulars Dr. Amount ` Cr. Amount `  
Govind ’s Capital 
 
14,004 
Govind ’s Drawings 5,076  
Leasehold Premises 6,750  
Sales 
 
24,750 
Due from customers 4,770  
Purchases 11,331  
Purchases Returns   2,376 
Loan from Bank   2,304 
Trade expenses 6,300   
Trade Payable   4,752 
586
Bills payable 900 
Salaries and Wages 5,400 
Cash at Bank 2,034 
Opening Inventory (1.4.2023) 2,376 
Rent and rates 4,167 
Sales return 882 
49,086 49,086 
Reasons: 
1. Due from customers is an asset, so its balance will be a debit
balance.
2. Purchases return account always shows a credit balance because
assets goes out.
3. Trade Payable is a liability, so its balance will be a credit balance.
4. Bills payable is a liability, so its balance will be a credit balance.
5. Inventory (opening) represents assets, so it will have a debit
balance.
6. Sales return account always shows a debit balance because assets
come in.
2. (a)   Valuation of Physical Stock as at March 31, 2024
` 
Stock at cost on 31
st
 December,2023 80,000 
Add:  (1)   Undercasting of a page total 200 
(2) Goods purchased and delivered
during January – March, 2024
` (70,000 – 3,000 + 4,000) 71,000 
(3) Cost of sales return ` (1,000 – 200)     800    72,000 
1,52,000 
Less:(1) Overcasting of a page total 
` (6,000 – 5,000) 
(1,000 ) 
(2) Goods sold and dispatched during
January – March, 2024
      ` (90,000 – 5,000 + 4,000)   89,000 
Less: Profit margin ?
?
?
?
?
?
×
125
25
  89,000  17,800 
(71,200 )    (72,200 ) 
Value of stock as on 31st March, 2024    79,800 
Note:  In the above solution, transfer of ownership is assumed to take 
place at the time of delivery of goods.  If it is assumed that transfer of 
ownership takes place on the date of invoice, therefore ` 4,000 goods 
delivered in March 2024 for which invoice was received in April, 2024, 
would be treated as purchases of the accounting year 2024-2025 and 
thus excluded.  Similarly, goods dispatched in March, 2024 but invoiced 
587
in April, 2024 would be excluded and treated as sale of the year 
2024-2025. 
(b) Bank Reconciliation Statement of Ramesh Traders as on 31
st
 March,
2024
Particulars Amount 
(`) 
Amount 
(`) 
Balance as per Cash Book 8,24,400 
Add: 
Mistake in bringing forward ` 37,000/- debit 
balance as credit balance on 22nd March 
74,000 
Cheques issued but not presented  
Issued = ` 84,000 less cashed ` 57,000 
= ` 27,000/- 
27,000 
Dividend directly collected but not entered in 
cash book 
70,000 
Cheques recorded twice in the cash book 2,58,000 
Wrongly credited cheque by bank 50,000 
Discount amount wrongly entered in bank 
column  
1,000 4,80,000 
Less: 
Wrong casting in cash book on 12th March, 
2024 
(24,000 ) 
Cheque issued and not entered in the Bank 
Column 
(1,70,000 ) 
Fire Insurance premium paid directly by bank (40,000 ) 
Cheque dishonored not recorded in books (10,000 ) 
Credit card payment not recorded in cash book (5,000 ) 
Cheque wrongly deposited by bank in savings 
account 
(4,000 ) 
Bank charges debited not recorded in cash 
book 
(400 ) 
(2,53,400 ) 
Balance as per the Passbook 10,51,000 
Note : No effects of cheque deposit directly and dishonored in the same 
Month. Alternatively amount of ` 64,000/- can be added as well as 
deducted from balance as per cash book. 
588
3. (a) In the books of Natures Beauty Society 
Income and Expenditure Account  
for the year ending 31st March, 2024 
Expenditure ` Income `
To Medicine 2,90,000 By Subscription 5,12,000 
To Honorarium 1,00,000 By donation 1,50,000 
To Salaries 2,80,000 By Interest on investment 90,000 
To Sundry 
expenses 
10,000 By Charity show 1,25,000 
To Depreciation Less: Charity show 
expenses 
(15,000) 1,10,000 
Equipment 60,000 
Building 20,000 
To Surplus 1,02,000 
8,62,000 8,62,000 
Balance Sheet of Natures Beauty Society 
as on 31
st
 March, 2024 
Liabilities ` ` Assets ` `
Capital Fund: Equipment 2,10,000 
Opening balance 18,03,000 Add: Purchases. 1,50,000 
Add: Surplus 1,02,000 19,05,000 3,60,000 
Advance 
subscription 
7,000 Less: dep. (bal. fig) (60,000) 3,00,000 
Creditors 
(medicine) 
1,30,000 Building 5,00,000 
Less: dep. (bal. fig) (20,000) 4,80,000 
Investment  
(` 90,000/9%) 
10,00,000 
Outstanding 
Subscription 
22,000 
Closing 
stock(medicine) 
1,50,000 
Cash 90,000 
20,42,000 20,42,000 
Working Note: 
(i) Subscription for the year ended 31
st
 March, 2024
Particulars Amount 
Subscription Received during the year 5,00,000 
Less: Subscription outstanding as on 1
st
 April, 2023 (15,000) 
Add: Subscription outstanding as on 31
st
 March, 2024 22,000 
Add: Subscription received in advance as on 
1
st
 April, 2023 
12,000 
589
Less: Subscription received in advance as on  
31
st
 March, 2024 
(7,000) 
Total 5,12,000 
(ii) Medicines purchased during the year ended 31
st
 March, 2024 
Particulars Amount 
Opening due for medical supply 90,000 
Less: Payment made during the year (3,00,000) 
Less: Closing due for medical supply (1,30,000) 
Medicines purchased during the year 3,40,000 
(iii) Medicines consumed during the year ended 31
st
 March, 2024 
Particulars Amount 
Opening stock 
1,00,000 
Add: Purchase during the year 3,40,000 
Less: Closing Stock (1,50,000) 
Medicines consumed during the year 2,90,000 
(iv) Depreciation on Equipment 
Particulars Amount 
Opening Balance 2,10,000 
Add: Purchase during the year 1,50,000 
Less: Closing Balance (3,00,000) 
Depreciation for the year 60,000 
(b)      Joint Life Policy Account 
 `   ` 
10
th
 June, 
2020 
To Bank 
Account 
3,000 31
st
 Dec., 
2020 
By Profit and Loss A/c 3,000 
10
th
 June, 
2021 
To Bank 
Account 
3,000 31
st
 Dec., 
2021 
By Profit and Loss A/c 2,100 
   31
st
 Dec., 
2021 
By Balance c/d 900 
  3,000   3,000 
1
st
 January, 
2022 
To Balance b/d 900 31
st
 Dec., 
2022 
By Profit and Loss A/c 1,900 
10
th
 June, 
2022 
To Bank 
Account 
3,000 31
st
 Dec., 
2022 
By Balance c/d 2,000 
  3,900   3,900 
1
st
 January, 
2023 
To Balance b/d 2,000 31
st
 Dec., 
2023 
By Profit and Loss A/c 1,400 
10
th
 June, 
2023 
To Bank 
Account 
3,000 31
st
 Dec., 
2023 
By Balance c/d 3,600 
590