Final Examination — 2023—2024 Class — XI Subject - ACCOUNTS Time : 3 hrs. Full Marks : 80 ALL QUESTIONS ARE COMPULSORY ALL CALCULATIONS AND WORKINGS TO BE SHOWN CLEARLY 1 i Liabilities and assets amount to Rs. 50,000 and Rs. 78,000 respectively. The difference amount shall represent___. (a) Creditors (b) Debentures (c) Profit (d) Capital () At the end of the year, the depreciation account is transferred to (a) Trading account (b) Profit and loss appropriation account (c) Profit and loss account 4 (d) Balance sheet aya iii | Encashing the bill before the date of its maturity is called (a) Dishonour of! Bill (b) Retirement of Bill (c) Discounting of Bill (d) Endorsement of Bill () iv. The party which is ordered to pay the amount of bill of exchange is called (a) Drawee (b) Payee (c) Drawer (d) None of the above. Qa) be vy. Discounting Charges = (a) Amount of Bill Discounted * Rate x Unexpired PeriodXI-Acet (2) (b) Amount of Bill Discounted = Rate / Unexpired Period (c) Amount of Bill Discounted x Rate + Unexpired Period (d) Amount of Bill Discounted + Rate x Unexpired Period qd) vi. Which of the following is an INCORRECT difference between provisions and reserve? a) Provision is appropriation of profits whereas reserve is charge against profits. b) Creation of provision is usually necessary, whereas Teserves’ creation depend upon management policy. c) None of the above. qd) vi Diminishing method of depreciation provides 8) More depreciation in initial years b) Equal amount of depreciation every year c) More depreciation in later years d) Depreciation amount changes in every 2 year. (1) viii. Sales are equal to a) Cost of goods sold plus Profit. b) Cost of goods sold minus Profit. ¢) Gross Profit minus Cost of goods sold. d) Cost of goods sold plus Closing Stock. qd) ix. What is the accounting treatment for dishonour of a discounted bill of exchange in the books of the drawer? Q) x. a) Hire charges of Rs. 2,500 paid for the computer used for accounting job. b) Incurred expenses of Rs. 10,000 in connection with obtaining a license for starting a factory. State whether capital or revenue with one reason for each case. Q) xi. Define deferred revenue expenditure with an example. 2) gti teXI-Acet Nii Nii xiv. (3) State wo differences between Fixed assets and Current assets. (2) Whatis the accounting treatment for Endorsement of a Bill of exchange? (2) Define Closing entries with an example. (2) From the following particulars, calculate the amount of Subscriptions to be shown in the Income & Expenditure a/c of a club for the year 2023: a) b) °) d) Amount of subscriptions received during the year 2023 is Rs. 15,000, of which Rs.800 pertains to the year 2022. Rs.2.000 are still outstanding for 2023. Rs. 1,200 were received in advance during 2022. Rs. 1,000 was outstanding in 2022. Rs. 1,500 have been received in advance during 2023. @) Fill in the missing information in the following journal entries: (©) LF] Debit | Credit (goods destroyed by fire) Bank A/C Dr Discount allowed A/C’ Dr To Hari A/C (Cash received from Hari by allowing 1% discount)XI-Acct. (4) L:, 4. Prepare a suitable een the following transacti Ctions ; (6) january Cash in hand ea Bank overdraft Rs. 57,000 7 | Received a cheque from B [Rs. 32,500] 9 | Deposited the above cheque Bank charges 5. Rectify the following errors, located after preparing the Trial Balance : Rs.500 paid for the purchase of Radio set for the proprietor a : debited to General expenses a/c. b) Goods sold to Rex for Rs.300 have been entered in the Purchase book. However the account of Rex stands correctly posted. c) Anamount of Rs.50 paid to Kevin have been credited to Klen’s a/c. d) Wages paid for the month Rs.300 was posted twice. e) Sales return book was undercast by Rs. 10. f) Repairs Rs.500 debited to machinery a/c as Rs.550. (6) OR :wae. NI-Acet (5) Pass journal entries to rectify the following errors which were detected after preparation of Trial Balance: a) b) °) d) e) f 6. Anentry for sale of goods for Rs. 102 to Max was posted to his a/c as Rs. 120. Rs. 100 being the discount allowed to customers were credited to discount received a/c. Rs. 275 paid by Madhav was credited to Jadavs a/c. Rs. 26 appearing in the cash book as paid for the purchase of stationery for office use have not been posted to ledger. The debit side of the Purchase a/c was under-cast by Rs. 100. Purchase return to Sam Rs 2.000 was not posted to his account. (6) Following was the Trial Balance of T K Traders: Debit Balances Rs. | Credit Balances Opening Stock 3,000 | Purchases Return . | Purchases 48,000 | Capital ‘Wages Sales Furniture Trade Expenses ’| Machinery 210% Loan(1.10:2023) Discount Received Bad Debts Recovery Bank Interest Debtors Insurance Rent 8,000 |»Provision for Bad Debts Repairs 7,200 | Creditors 24,000 Advertisement 1,8 Bills Payable Bad Debts Bills Receivable Sales Return Cash at Bank Cash in Hand(6) Additional Information: a) b) c) d) e) Closing stock valued at 31.12.2023 Rs 6,000; Goods valuing Rs 2,000 taken by the proprietor from business for personal use; Further bad debts to be written off Rs 1,000 and provision for bad debts to be created at 10%; Depreciation to be charged on all fixed assets @ 10% per annum, Interest on loan is to be provided. Prepare the Trading Account for the year ended 31.12.2023. (6) Prepare Profit & Loss a/c for the year ended 31.12.2023 from the data given in Question no. 6. (6) On Ist April 2022, H Ltd. purchased for Rs. 1,20,000 and on 30th September 2022,it acquired additional machinery for Rs.20,000. On 30.6.2023, one of the: original machine (purchased on 1.4 2022) which had cost Rs.5,000 was found to have become obsolete and was sold as scrap for Rs.500. On the same date,a new machine was purchased for Rs. 8,000. Depreciation is to be charged @ 15% p.a on written down value method on 31st March every year. Show the Machinery a/c for the first two years. (10) OR ‘ On Ist October 2020, X Ltd purchased a machinery for Rs. 6,00,000. On 31st May 2021, a part of the machinery purchased on Ist October 2020 for Rs.80,000 was sold for Rs. 30,000. On the same date, a fresh machinery was purchased for Rs 1.50.000. Depreciation is provided @20% p.a on the written down value method on3 1st March every year. Prepare (a) Machinery a/c (b) Provision for depreciation a/c and (©) Asset disposal a/c. (10)XI-Aeet (7) 9. From the following Receipts & Payments Account of a club for the year ended 31st December 2023 and from the following information supplied, prepare Income & Ex; penditure A/C for the year ended 31st December 2023 : Receipts Rs. | Payments Rs. To balance b/d 11,400 | By Salaries 15,000 By Entertainment 6,000 expenses By electric charges By General expenses By Investments By Printing & Stationery 2,000 By Newspapers 3,000 To Subscriptions 2,000 To Entertainment receipts 10.000 To sale of old furniture 600 (costing Rs. 1000) To Sale of newspapers 4,000 By Furniture By Miscellaneous 2,000 Expenses By balance c/d 49,000 49,000 The club has 250 members, each paying an annual subscription of Rs. 100. Rs. 500 are still in arrears for subscriptions of 2022. In 2022, ten members had paid their subscriptions for 2023 as well. Salaries paid include Rs.1,000 for 2022 and Rs. 1,500 for 2024 Outstanding salaries for 2023 amounted to Rs. 2,000. On 1-1-2023,the club owned Land & Building valued at Rs. 1,00,000 and Furniture valued at Rs. 11,000. Interest for 3 months at 6% has accrued on Investment. (10) OR From the following Receipts and Payments Account for the year ended 31.12.2023 prepare Income and expenditure Account for the above period:Xt-Acet (8) Receif z To Cash in Hand 18,000 To Subscriptions | 60,000 [By House Rent 11,000 To Donations for 25,000 | By Investment 30,000 Building Fund To Sale of Old Newspaper By Books 17,500 (purchased on 31.12.2023) By Purchase of newspaper | 3,000 | and magazines To Interest on Investment To Miscellaneous By Insurance premium By Repairing expenses By Electricity and lighting. 2,000 3200 1,500 By Cash in hand (closing) | 2,600 8,800 88,800 Further information is given ae a) On31.12.2022 the following assets were available- Furniture Z 12,500 ; Books z 1,00,000 ; Investments = 50,000; >) Subscriptions in advance for 2024 & 2,500 and subscriptions in arrear & for 2023 & 18.000; c) Insurance premium prepaid? 500, d) Outstanding salary? 3,000 and outstanding rent 4,000; €) Furniture and books are to be depreciated @25% and @10% respectively. (10) 10. X draws two bills of exchange on Y of Rs. 5,000 and Rs. 2,000 for 3 months and 2 months respectively. Immediately gets the first bill discounted with the bank at 8% p.a.On maturity both the bills were dishonoured and noting charges being Rs.15 on each bill. On Y’s request, X draws a new bill for Rs. 7,100 for a month, But before maturity Y becomes bankrupt and ultimately pays his creditors 25 paise in a rupee. Pass entries in the books of X and Y. (10)