Question Paper 2015 (Set 1) | Additional Study Material for Commerce PDF Download

Annual Examination – (2015-16)
Accountancy (Set 1)
Class – XI

Time: 3 Hrs. M.M. 90

General Instructions:

(i) All the questions are compulsory.
(ii) Question no. 1 to 4 and 16 to 17 are very short answer type question carrying 1 mark each.
(iii) Question no. 5 to 8 and 18 to 19 are short answer type question carrying 3 marks each.
(iv) Question no. 9 to 12 and 20 are also short answer type question carrying 4 marks each.
(v) Question no. 13 to 15 and 21 to 22 are long answer type question carrying 6 marks each.
(vi) Question no. 23 and are very long answer type question carrying 8 marks each.
(vii) All parts of the question must be attempted at one place.
(viii) Show working notes wherever necessary.

Section-A

1. What are the two bases of Accounting? 1

2. Which of the following is not a specific Reserve:- 1
a) Investment Equalisation Reserve
b) Debenture redemption Reserve
c) General Reserve

3. Pass necessary journal entry when goods are withdrawn for personal use. 1

4. Bank overdraft is – 1
a) Short Term Liability
b) Contingent Liability
c) Long Term Liability

5. What are Accounting standards? State the objectives of Accounting Standards 3

6. Identify and explain the following principles
a) Closing stock is valued at lower of cost or market price which concept of accounting is applied here?
b) Rent for the month of march 2014 is not paid under which accounting concept it should be recorded as expense for the year ended 31 ^st March 2014 3

7. Name two types of errors (with examples) which do not affect the Trial Balance 3 8. Distinguish between “Provision” and “Reserve” 3

9. Record the following in an appropriate Book of Original Entry : 2013
Jan. 1 Cash in hand Rs. 12,400 Bank Overdraft Rs. 1,400
Jan. 3 Deposited into Bank Rs. 3,000
Jan. 5 Received Cheque from Sharma Rs. 5,400
Jan. 6 Deposited Sharma’s Cheque int bank
Jan. 31 Bank Charges Rs. 65 4

10. There was a difference in the Trial Balance of Raj & sons, prepared for the year ending 31 ^st March 2013. The accountant put the defence in a Suspense Account. Subsequently The following errors were found:
(a) Purchases Returns Book total of Rs. 400 has not been posted to Ledger Account.
(b) Rs. 5,100 spent on legal expense for the newly acquired building was debited to Building Account as Rs. 1,500
(c) A sale of Rs. 6540 to Rajesh has been credited to his account. Rectify the above mentioned errors and show the Suspense Account. 4

11. Anand runs a small Bakery business. He was not maintain his accounts on Double entry system.
On May 1,2013 he had stated the business with a capital of Rs. 78,000. On 31 ^St March 2014 his incomplete records could provide the following date:
a) Amount due to suppliers of raw materials Rs. 17,500
b) Stock of raw material Rs. 2,000
c) Stock of finished products Rs. 2,500
d) Fixed Assets Rs. 34,000
e) Amount due from customers Rs. 42,000
f) He had withdrawn Rs. 2,500 per month for meeting his personal expenses.
g) He had introduced Rs. 7,000 as capital during the year.
h) He has cash at bank Rs. 21,000 and cash in hand Rs. 1,800
i) Outstanding electricity bill Rs. 2250
Calculate the profit/loss of his business during the year using statement of Affairs method. 6

12. On 31 ^st Dec.2013 the pass book of Teneja showed an overdraft of Rs. 7,700/- . On the basis of the following particulars prepare a Bank Reconciliation Statement.
a) Cheques issued before 31 ^st Dec. 2013 but not yet presented for payment amounted to Rs. 3,500
b) Cheques paid into the Bank but a Cheque amounting to Rs. 2,600 has not yet been collected yet.
c) Interest on loan amounting to Rs. 554, directly debited by the bank did not appear in the Cash Book
d) Rs. 4,800 directly deposited by the customer entered in the pass book but not in the cash book.

13. ABC Construction Ltd. Purchased a machinery on 1 ^st October 2006 for Rs. 6,55,000. On March 1, 2007, it purchased another machinery for Rs. 2,40,000. On July 1,2008 it sold off the first machinery purchased in 2006, for Rs. 5,24,000. Depreciation Account is maintained by charging depreciation @ 10% p.a. on Straight Line Method. Account, Provision for depreciation Account for the year ended 31 ^st March 2007-2008 and 2008-09. Also prepare A machinery disposal account 6

14. A purchased goods for Rs. 23,000 from B on 15 ^th October 2013 and accepted a bill of exchange drawn upon him by B payable after two months. On the due date the bill was duly presented for payment. A dishonored the bill. The payee noted with RS. 95 as noting charges. Record the necessary journal entries in the books of B and A, when: a) The bill was immediately discounted by B with his bank @ 9% p.a. b) The bill was endorsed by B in favour of his creditor C after one month. 8
 

Section – B
Financial Accounting – II

15. What entry is passed when additional bad debts are written off? 1

16. The receipt and payment account is a summary of:-
a) Debit and Credit balance of ledger account
b) Income and expenditure
c) Cash received and cash paid 1

17. What is meant by Deferred Revenue Expenditure? Give two examples. 3

18. Extract of a Trial Balance on 31 ^st March 2013 is as follows:

Additional Information: A debtor of Rs. 2,000 could not be recovered. It is decided to maintain a Provision for Bad and Doubtful Debts @ 5% on Debtors. Show how these adjustments be shown in the financial Statements.

19. Mr. Suresh, a Manager in a not-for-profit organization received a sum of Rs. 50,000 for construction of building as Donation. He however, used this amount for his personal use.
(i) Is he right?
(ii) Identify the value missing in the above case.
(iii) Give the accounting treatment of such donation in the Financial Statements.

20. Distinguish between a Receipts & payments Account and an Income & Expenditure Account and an Income & Expenditure Account 4

21. Write explanatory notes on
(i) Utility Software and
(ii) Application Software 4

22. Make a comparison between manual and Computerized Accounting 6

23. RECEIPTS AND PAYMENTS ACCOUNT OF ABC CLUB

FOR THE YEAR ENDED 31 ^ST MARCH 2014

Additional Information:
(i) Rent outstanding was Rs. 600.
(ii) 50% of the Entrance fees was to be capitalized.
(iii) Subscriptions outstanding for 2013-2014 were Rs. 500.
(iv) Subscriptions outstanding for 2013-2014 Rs. 100.
(v) Internet charges were unpaid for 2013-2014 Rs. 100.
Prepare Income and Expenditure Account and the Balance sheet of the Club. 6

24. Anand runs a small Bakery business. He was not maintaining his accounts on Double entry Prepare a Trading and Profit & Loss
Account and Balance Sheet of swami & Sons for the year ending March 31, 2009, from the following figures taken from the Trial Balance on the same date.

Additional Information: (i) Stock as on March 31, 2009 valued at Rs. 10,000;
(ii) Depreciation on Fixed Assets to be charged @ 5% p.a.
(iii) Rs. 1,000 Debtor found to be unrecoverable;
Provision for Doubtful Debtor to be created @ 5%
(iv) Salary paid in advance Rs. 1,000.