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 Series ARSP/04 Set ~ 4
Roll No. Q.P Code 15/4/4
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 10 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80

General Instructions:

1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.

3. Question 1 to 17 and 27 to 29 carries 1 mark each.

4. Questions 18 to 20 and 30 to 32 carries 3 marks each.

5. Questions from 21 to 23 carries 4 marks each.

6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Which written document is prepared by seller for goods sold against cash which acts as evidence for both the [1]
seller and the purchaser of goods?

a) Cash bill b) Voucher

c) Cash memo d) Cash-in-slip

2. Assertion (A): Qualitative aspects of the business unit are completely ignored from the books while preparing [1]
financial statements.
Reason (R): Window dressing refers to the practice of manipulating accounts so as to conceal vital facts, so that
the financial statements may disclose a more favourable position than the actual position.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

3. Sundry Creditors Account is a: [1]

a) Liability Account b) Asset account

c) Capital Account d) Revenue Account

4. The company has collected money from its debtors by cheque.What is the effect on assets and liabilities [1]

a) Decrease creditors b) Decrease debtor

c) No effect d) Increase Creditors

OR
If the total liabilities of a business decrease by Rs.5000 what will be the effect on total asset? (assuming the amount
of capital remain same)

a) Increase by Rs.5000 b) Increase by Rs.10000

 c) Decrease by Rs.5000 d) Remain constant
5. In which situation, a source document containing the date of transaction, the name of the account debited, the [1]
amount, and the reasons for debit is prepared?

a) When goods are returned to a Purchaser b) Both when goods are returned to a supplier
and when goods are received from a
customer

c) When goods are received from a customer d) When goods are returned to a supplier
6. Which of the following is the most relevant accounting information for taxation authorities? [1]

a) Profit generated during the year b) Book Value of the Fixed Assets

c) Cash Balance of the firm d) Credit Sales of the year

OR
________ are those assets which cannot be realised in cash or no further benefit can be derived from these assets.

a) Real assets b) Nominal assets

c) Realisable assets d) Current assets

7. If the amount of any known liability can be determined with accuracy: [1]

a) a Provision should be set aside b) a provision should be made

c) a liability should be provided d) a reserve should be set aside

8. Balance of Capital Account is shown as: [1]

a) Liability Account b) Revenue Account

c) Asset account d) Capital Account

OR
Drawings Account is a

a) Artificial personal account b) Personal Account

c) Nominal Account d) Real Account

9. Which of the following is/are objectives of GST? [1]

a) To restrict the movement of goods across b) All of these

the country

c) To maximise tax rate slabs d) To eliminate classification dispute between

goods and services
10. As per Income Tax Act, the accounting period is: [1]

a) From 1st January to 31st December b) From 1st July to 30th June

c) From Diwali to Diwali d) From 1st April to 31st March

11. ________ is specific reserve: [1]

a) All of these b) Investment Fluctuation Fund

c) Workmen Compensation Fund d) Debenture Redemption Reserve

12. Purchase refers to the buying of [1]
 a) assets for the factory b) stationery for office use

c) Investment d) goods for resale

13. Goods taken away by the proprietor from the business for his personal use will be recorded in: [1]

a) Sales Book b) Purchases Book

c) Purchases Return Book d) Journal Proper

14. When goods are returned to supplier assets and ________ are ________ by same amount. [1]

a) liabilities, increased b) liabilities, decreased

c) assets, increased d) assets, decreased

15. A liability arises because of: [1]

a) credit transactions b) cash transactions

c) cash as well as credit transactions d) On recording the transaction

OR
Goods taken by the proprietor for personal use is

a) Drawings b) Purchase

c) Capital d) Sale
16. Opening entry is recorded: [1]

a) anytime during the year. b) at the closing of the accounting year

c) in the middle of the accounting year d) at the beginning of the accounting year
17. When the purpose for which reserve is created is not specified, it is called ________. [1]

a) General reserve b) Revenue reserve

c) Specific reserve d) Capital reserves

18. What do you mean by posting? [3]
OR
Pass journal entries for the following:

2023

Jan. Purchased goods from Hitesh for ₹ 50,000 on 10% trade discount and 4% cash discount and paid 60%
6 amount by cheque.

Jan. Bought goods from Abhishek for ₹ 2,00,000 at terms 5% cash discount and 20% trade discount. Paid 3/4th of
15 the amount in cash at the time of purchase.

Jan. Sold goods to Sujeet at the list price of ₹ 50,000 less 20 % trade discount and 4 % cash discount if the
18 payment is made within 7 days. 75 % payment is received by cheque on Jan. 23rd.

Sold goods to Geeta for ₹ 1,00,000, allowed her 20% trade discount and 5 % cash discount if the payment is
Jan.
made within 15 days. She paid 1/4th of the amount by cheque on Feb.5th and 60% of the remainder on Feb.
25
15th in cash.

19. Briefly explain your understanding of Ind-AS. [3]

OR
 Explain the accounting treatment of GST.
20. Explain the following terms with examples: [3]
a. Capital Expenditure
b. Non-Current Assets
21. The Accountant of Gurpreet prepared the following Trial Balance wrongly. You are required to draw the correct [4]
Trial Balance stating reasons for the change made:
TRIAL BALANCE
as on 31st March, 2023

Debit Balance ₹ Credit Balance ₹

Opening Stock 16,000 Sales 1,90,000

Purchases 1,60,000 Insurance Premium 6,000

Salaries 21,000 Equipment 25,000

Outstanding Salaries 14,000 Repairs to Building 5,000

Wages 10,000 Drawings 31,000

Wages Due 9,000 Sundry Receipts 15,000

Building 1,00,000 Bank Overdraft 93,000

Plant 80,000 Ground Rent 8,000

Interest Received 2,000 Returns Inward 16,000

Advertisement 12,000 Capital 2,00,000

Outstanding Expenses 17,000 Investments 44,000

Depreciation on Plant 8,000

Prepaid Expenses 10,000

Returns Outward 12,000

Closing Stock 1,62,000

6,33,000 6,33,000

22. Prepare a two - column Cash Book with cash and bank column with following information: [4]

Date Particulars Amount (Rs)

01 - Apr - 14 Cash-in-hand 1,00,000

Bank Overdraft 40,000

4 - Apr - 14 Bought goods for cash 50,000

7 - Apr - 14 Sold goods for cash 20,000

10 - Apr - 14 Paid Rent 6,000

12 - Apr - 14 Cash deposited into bank 20,000

15 - Apr - 14 Goods sold to Ajay 4,000

 18 - Apr - 14 Cheque received from Ajay 3,800

Discount allowed to Ajay 200

20 - Apr - 14 Cheque received from Ajay deposited with Bank _______

22 - Apr - 14 Paid salaries through cheque 5,000

25 - Apr - 14 Withdrawn from bank for office use 5,000

28 - Apr - 14 Paid insurance premium of cheque 5,000

30 - Apr - 14 Paid Taxes through Bank 1,000

23. On 30th June 2014, the Cash Book of a trader shows a bank overdraft of ₹2,500. Following informations are [4]
available:
i. Cheques amounting to ₹14,600 had been paid to the bank, but of these only ₹12,200 were credited in the
Pass Book, up to 30th June, 2014.
ii. He had also issued cheques amounting to ₹10,000, but of which only Rs 3,600 had been presented for
payment.
iii. A cheque of ₹500 which he had debited to the bank account was not sent to bank for collection by mistake.
iv. There is a debit in the Pass Book of ₹10 for Bank Charges and ₹50 for interest.
v. A customer directly paid into his bank ₹1,000, but it was not shown in the Cash Book.
vi. Bank has paid insurance premium of ₹400 according to his instructions, but this is not recorded in the Cash
Book.
Prepare a Bank Reconciliation Statement.
OR
On 31st January, 2017 Cash Book showed an overdraft balance of ₹ 40,000. On comparing it with the Pass Book, the
following differences were noticed:

i. On 27th January, cheques amounting ₹ 6,450 were sent to the bank, but out of these one cheque of ₹ 840 was
credited on 2nd February and one cheque of ₹ 220 was returned by the bank as dishonored on 4th February.
ii. During the month of January, cheques were issued worth ₹ 7,580. Out of these, cheques worth ₹ 6,420 were
presented for payment on 5th February.
iii. As per standing order, the Bank had paid the following amounts during January 2017:
a. Life Insurance Premium ₹ 710.
b. Electricity Bill ₹ 615.
iv. Bank collected ₹ 500 as a dividend on'share and gave wrong credit for ₹ 650.
v. Interest charged on overdraft by the Bank ₹ 600 Prepares a Bank Reconciliation Statement on 31st January, 2017.
24. Prepare journal form the transactions given below: [6]

Cash paid for installation of machine 500

Goods given as charity 2,000

Interest charge on capital @ 7% per annum when total capital were 70,000

Received ₹ 1,200 of a bad debts written-off last year

Goods destroyed by fire 2,000

Rent outstanding 1,000

 Interest on drawings 900

Sudhir Kumar who owed me ₹ 3,000 has failed to pay the amount He pays me a compensation of 45
paise in a rupee.

Commission received in advance 7,000

OR
Give the journal entries of M/s Sumit Traders.

Amount
2013
(Rs)

Jan 1 Commenced business with cash 2,20,000

Jan 2 Opened bank account with SBI 1,00,000

Jan 3 Purchased furniture 40,000

Jan 7 Bought goods for cash from M/s Riya traders 60,000

Jan 8 Purchased goods from M/s Priya traders 84,000

Jan 10 Sold goods for cash 60,000

Jan 14 Sold goods on credit to M/s Sharma traders 24,000

Jan 16 Rent paid 8,000

Jan 18 Paid trade expenses 2,000

Jan 20 Received cash from Sharma traders 24,000

Jan 22 Goods return to Priya Traders 4,000

Jan 23 Cash paid to Priya Traders 80,000

Jan 25 Bought postage stamps 200

Jan 30 Paid salary to Karan 8,000

25. Rectify the following errors [6]

a. Credit sales to Mohan ₹ 7,000 were posted to Karan.
b. Credit purchase from Rohan ₹ 9,000 were posted to Gobind.
c. Goods returned to Rakesh ₹ 4,000 were posted to Naresh.
d. Goods returned from Mahesh ₹ 1,000 were posted to Manish.
e. Cash sales ₹ 2,000 were posted to commission account.
OR
Give the journal entries to rectify the following errors using suspense account, where necessary.
i. Rs 3,000 received from a customer as an advance against order was credited to sales account.
ii. A sum of Rs 800 written-off as depreciation on machinery, were not posted to depreciation account.
iii. Purchase of a scooter was debited to conveyance account Rs 16,000. Firm charges 10% depreciation on vehicles.
iv. Payment of Rs 500 to Mohan and Rs 600 to Sohan was made but Mohan was debited with Rs 600 and Sohan with
Rs 500.
v. Sales to X Rs 500 were posted to Y ’s account.
26. Discuss in detail the straight-line method and written down value method of depreciation. Distinguish between [6]
the two and also give situations where they are useful.
OR
Following balance appear in the books of Rama Bros:

1st April, 2022 Machinery Account ₹ 80,000

Provision for depreciation A/c ₹ 36,000

On 1st April 2022, they sold a machine for ₹ 8,700. This machine was purchased for ₹ 16,000 in April 2018. You are
required to prepare Provision for Depreciation A/c and Machinery A/c on 31st March, 2023, assuming the firm has
been charging Depreciation at 10% p.a. on Straight Line Method.
Part B
27. Calculate Opening capital from the following information: Profit: Rs.500, Closing capital- Rs.3,000, Withdrawn- [1]
Rs.600, Fresh capital- Rs.400

a) Rs.3,200 b) Rs.2,300

c) Rs.2,700 d) Rs.2,500
OR
A system of accounting that is not based on a double-entry system is called:

a) Credit system b) Incomplete accounting system

c) Debit system d) Cash system

28. Training fee received appearing in the Trail balance is shown [1]

a) On the debit side of the Profit and loss b) On the credit side of the Profit and loss
account account

c) On the debit side of the Trading account d) On the Credit side of the Trading account
29. Calculate interest on loan of Rs. 2000 taken on 1st May 2010 at 18 % If account are closed on 31st December [1]

a) Rs.210 b) Rs.250

c) Rs.230 d) Rs.240
OR
Adjustment entries are those which are passed

a) For increasing profit b) For adjustment of prepaid and outstanding

Expenses/Income

c) In the middle of the year d) At the beginning of the year

30. Operating profit earned by M/s Arora & Sachdeva in 2016-17 was ₹ 17,00,000. Its non-operating incomes were [3]
₹ 1,50,000 and non-operating expenses were ₹ 3,75,000. Calculate the amount of net profit earned by the firm.
31. From the following information, prepare the Trading Account for the year ended 31st March, 2023: [3]
Adjusted Purchases ₹ 24,00,000; Freight and Carriage Inwards ₹ 20,000; Freight and Carriage Outwards ₹
15,000; Wages ₹ 1,70,000; Fuel and Power ₹ 30,000; Office Rent ₹ 18,000; Trade Expenses ₹ 10,000; Sales ₹
30,00,000; Closing Stock ₹ 1,50,000.

32. Amit is a trader. While preparing his final accounts on 31st March, 2022, he made a provision for doubtful debts [3]
 @ 4% of the sundry debtors amounting to ₹ 42,000. During the year ended 31st March, 2023, doubtful debts
amounted to ₹ 3,400. On 31st March, 2023, sundry debtors were ₹ 56,500 and the provision for doubtful debts
was maintained at the same rate. Show the entries to record the above matters in Amit's Ledger Accounts.
33. From the following information supplied by Ms. Sudha, calculate the amount of ‘Net Sales’ [6]

Debtors on April 01, 2016 65,000

Debtors on March 31, 2017 50,000

Opening balance of bills receivable as on April 01, 2016 23,000

Closing balance of bills receivable as on March 31, 2017 29,000

Cash received from debtors 3,02,000

Discount allowed 8,000

Cash received against bills receivable 21,000

Bad debts 14,000

Bill receivables (dishonoured) 20,000

Cash sales 2,25,000

Sales return 17,000

OR
Mr Verma started a business with a capital of ₹ 5,00,000. At the end of the year, his position was

Items Amount (₹)

Cash in hand 15,000

Cash at bank 70,000

Sundry debtors 1,20,000

Stock 2,40,000

Furniture 75,000

Machinery 2,00,000

Sundry creditors at this date totalled ₹ 80,000. During the year, he introduced a further capital of ₹ 1,50,000 and
withdrew for household expenses ₹ 90,000.
You are required to calculate profit or loss during the year.

34. On 31st March, 2023 the following Trial Balance was prepared from the books of Manisha: [6]

Debit Balances Amount (₹) Credit Balances Amount (₹)

Furniture 3,400 Capital 1,00,000

Building 21,700 Discount received 2,000

Drawings 4,200 Bank Loan 10,000

Cash at Bank 2,470 Purchases Return 970

 Wages 31,250 Sales 1,91,940

Discount Allowed 2,640 Sundry Creditors 12,450

Bank Charges 90 Provision for Doubtful Debts 800

Salaries 5,610

Purchases 1,32,700

Opening Stock 40,200

Cash in Hand 2,650

Sales Return 1,250

Carriage Inwards 3,400

Machinery 14,600

Sundry Debtors 43,800

Bad Debts 1,000

Insurance 1,250

Rent 2,450

Advertisement 3,500

3,18,160 3,18,160

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2023 and also the Balance Sheet as at
that date after making the following adjustments:
i. Closing Stock at cost was ₹ 35,000 whereas its net realisable value (market value) was ₹ 30,000.
ii. A new machine was purchased for ₹ 3,000 on 1st April, 2022 but it was not paid for and no entry was passed
in the books.
iii. Wages include ₹ 500 paid for the installation of machinery.
iv. Provision for Doubtful Debts was raised to ₹ 1,400 and further bad debts of ₹ 300 were written off.

v. Fire broke out on 20th March, 2023 and destroyed stock to the value of ₹ 8,000. The insurance company
admitted claim for loss of stock of ₹ 5,000 and the amount was paid on 15th April, 2023.
vi. Outstanding wages were ₹ 700 while outstanding salaries were ₹ 500.
vii. Prepaid insurance was ₹ 250 and prepaid advertisement ₹ 500.
viii. Machinery was depreciated by 10% and furniture by 15%.
OR
Prepare trading; profit and loss account and balance sheet from the following particulars as on 31st march, 2013.

Name of Accounts Debit Balance(Rs) Credit Balance(Rs)

Cash in hand 20,000

Cash at bank 1,80,000

Purchase and sales 22,00,000 35,00,000

Return inwards 60,000

Return outwards 75,000

Carriage on purchases 44,000

Carriage on sales 21,000

Fuel and power 1,55,000

Stock (1st April, 2012) 3,60,000

Bad debts 62,000

Bad debts provision 25,000

Debtors and creditors 8,20,000 3,00,000

Capital 21,70,000

Investments 2,00,000

Interest on investments 20,000

Loan from X @ 18% per annum 1,00,000

Repairs 15,200

General expenses 1,06,000

Land and Buildings 18,00,000

Wages and Salaries 1,80,000

Miscellaneous receipts 1,200

Bills Payable 52,000

Stationery 20,000

62,43,200 62,43,200

Additional Information
i. Written-off Rs 20,000 as bad debts and provision for doubtful debts is to be maintained at 5% on debtors.
ii. Loan from X was taken on 1st August, 2012. No, interest has been paid so far.
iii. Included in general expenses is insurance premium % 12,000. Paid for one year ending 30th June, 2013.
iv. 1/3 of wages and salaries is to be charged to trading account and the balance to profit and loss account.
v. Entire stationery was used by the proprietor for own purpose.
vi. Closing stock was valued at Rs 5,00,000.