KENDRIYA VIDYALAYA SANGATHAN LUCKNOW REGION

SUPPLEMENTARY EXAMINATION 2023-24

SUBJECT: ACCOUNTANCY (055)
CLASS XI
Time Allowed: 3 Hours Max. Marks: 80
General Instructions: -
1. This question paper is divided into two parts – Part A and Part – B.
2. Part- A: Financial Accounting – I and Part- B: Financial Accounting –II.
3. This question paper contains 34 questions and questions are compulsory.
4. Attempt all parts of a question together and show your working clearly.
5. Question No. 1 to 16 and 26 to 29, carries 1 mark each.
6. Question No. 17 to 20 and 30 to 31, carries 3 mark each.
7. Question No. 21 and Question No. 32 to 33 carries 4 marks each.
8. Question No. 22 to 25 and Question No. 34 carries 6 mark each.

PART –A
FINANCIAL ACCOUNTING - I
1 Given below are two statements, one labelled as Assertion (A) and the other labelled as 1
Reason (R):
Assertion (A): Suspense Account may show either a debit or a credit balance.
Reason (R): Suspense Account always shows a debit balance.
In the context of the above statements, which one of the following is correct?
(a) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(b) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(c) Only (R) is correct.
(d) Both (A) and (R) are incorrect.
2 Voucher is prepared for : 1
a. Cash received and paid b. Cash / Credit Sales
c. Cash / Credit Purchases d. All of the above
or
Mahendra a customer from whom an amount was due, declared insolvent and paid 60
paise in a rupee. Total bad debts from him were written off ₹ 7,200. What was the
amount actually due from him
a. ₹ 24,000 b. ₹ 18,000
c. ₹ 12,000 d. ₹ 15,000

3 Depreciation is calculated from the date of ………….. 1

a. Purchase of Asset b. Receipt of asset at the business
premises
c. Asset put to use d. Asset installed

4 A separate column is made for ‘Credit Note No.’ in 1

a. Purchase Book b. Sales Book

c. Purchase Return Book d. None of the above
or
Debit balances show :
 a. Profits and Incomes b. Liabilities and Incomes
c. Assets and Expenses d. Sales Return Book

5 Which qualitative characteristics of accounting information is reflected when accounting 1

information is clearly presented?
a. Relevance b. Comparability
c. Reliability d. Understandability
or
Which of the following is included in qualitative characteristics of accounting
information?
a. Relevance b. Comparability
c. Reliability d. All of the above

6 Bank Reconciliation Statement is : 1

a. A statement prepared by Bank b. A statement prepared by customer
c. A part of Cash Book d. A part of Pass Book

7 On intra-state sale of goods, which of the following account is credited: 1

a. Input IGST A/c b. Output CGST A/c
c. Output IGST A/c d. Output SGST A/c
or
GST Collected on Sales (Output GST) is a………… for the seller
a. Cost b. Liability
c. Asset d. Income

8 Which of the following is not a Current Liability: 1

a. Creditors b. Bank Overdraft
c. Outstanding Expenses d. Prepaid Expenses
or
Assets (Except Securities) may be valued under Ind- AS on:
a. Historical Cost b. Fair Value
c. Both Historical Cost and Fair d. Market Price
Value

9 The W.D.V. of an asset after three years of depreciation on reducing balance method @ 1
10% p.a. is ₹ 1, 45,800. What was its original value?
a. ₹ 1,80,000 b. ₹ 2,00,000
c. ₹ 1,89540 d. ₹ 1,62,000

1 Which accounting concept you would follow in dealing with the situation given below 1
0 “During the year, the company purchased Pencils worth ₹ 150. These had all been
issued from stock and were still in use at the end of the year.”
a. Money Measurement b. Materiality
c. Accrual d. Going Concern

11 Creation of reserve is : 1
a. useless b. illegal
c. necessary d. not necessary
1 Which one is the advantage of accounting? 1
2 a. Window dressing b. Replacement of Memory
c. Shows the present value of the d. Shows the effect of price level
business changes

1 Given below are two statements, one labelled as Assertion (A) and the other labelled as 1
3 Reason (R):
Assertion (A): Accounting records only the transactions of financial nature.
Reason (R): goods taken from the business by the proprietor for his personal use is not
of financial character and hence not will be recorded.
In the context of the above statements, which one of the following is correct.
(a) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(b) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(c) (A) is true, bur (R) is false.
(d) (A) is false, bur (R) is true.
1 Following information is provided by Yashwant for the year ended March 31st 2023. Net 1
4 profit as per Cash Basis of Accounting will be …..
Credit Sales ₹ 12,50,000
Cash Sales ₹ 40,50,000
Expenses (out of which ₹ 35,000 is still to be paid ) ₹ 5,00,000
a. ₹ 48,35,000 b. ₹ 57,65,000
c. ₹ 58,00,000 d. ₹ 35,85,000

1 Rent for the month of March, 2023 is not paid. Under which concept it should be 1
5 recorded as expense for the year ended 31st March 2023.
e. Money Measurement f. Materiality
g. Accrual h. Going Concern

1 Given below are two statements, one labelled as Assertion (A) and the other labelled as 1
6 Reason (R):
Assertion (A): Bank Reconciliation Statement is not a part of Double Entry
Book-Keeping.
Reason (R): It is a method to ensure that there are no errors in recording bank
transactions in the cash book.
In the context of the above statements, which one of the following is correct.
(a) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(b) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(c) Only (R) is correct.
(d) Both (A) and (R) are incorrect.
1 What do you mean by ‘Trial Balance’? Explain any two objective of preparing trial 3
7 balance.
or
Prepare a Trial Balance from the following information : Amount
Prepaid Expenses 5,000
Outstanding rent 2,000
Bad debts recovered 4,000
 Interest on Investment 1,000
Due to Mohan 5,000
Bank Overdraft 2,000
Discount allowed 800
Due from Vinod 1,200
Investment 15,000
Patents 4,000
Machinery 6,000
Capital 18,000

1 Record the following transactions in the Sales Book of Durga Electronics, Lucknow : 3
8 2023
March 1 Sold to Ruchira Electronics, Lucknow, vide invoice No. 123
5 BPL T.V. @ ₹ 20,000 each.
Less : Trade Discount @ 20%.
March 2 Sold to Garun Electronics, Kanpur, vide invoice No. 124
10 Washing Machines @ ₹ 8,000 each.
Less : Trade Discount @ 25%.
March 3 Sold to Hira Bros, Pune, vide Cash Memo No. 125
15 BPL Mixture & Juicer @ ₹ 2,000 each.
Less : Trade Discount @ 10%.
March 4 Sold to Rahat Electronics, Varanasi , vide invoice No. 126
8 Music System @ ₹ 15,000 each.
10 Colour T.V. Sets @ ₹ 22,000 each
Less : Trade Discount @ 20%.

1 Distinguish between Provisions and Reserves on the basis of : 3

9 a. Meaning
b. Object
c. Utilization for dividends.
or
Explain the functions of Accounting. (any three)

2 Prepare accounting equation from the following : 3

0 a. Started business with cash ₹ 2,00,000 and goods worth ₹ 40,000.
b. Sold 50% of the above goods at a profit of ₹ 4,000 to Raghunath.
c. Raghunath paid 90% of his amount in final settlement.

2 Give the journal entries corresponding to the narration given below: 4

1 DATE PARTICULARS L Amount Amount
F
2023 ₹ ₹
Apr 1 …………………. A/c Dr. ……….
To …………. A/c ……….
To …………. A/c ……….
( Goods for ₹ 8,000 purchased at 20% trade
 discount and 5% cash discount)
Apr 8 …………………. A/c Dr. ……….
To …………. A/c ……….
( Goods costing ₹ 15,000 sold at a profit of
33 1/3 % on cost)
Apr …………………. A/c Dr. ……….
10 To …………. A/c ……….
( Goods costing ₹ 4,000 lost by fire)
Apr …………………. A/c Dr. ……….
16 To …………. A/c ……….
( Plant purchased for ₹ 1,00,000 and
installation charges paid ₹ 2,000)

2 Enter the following transactions in a Cash Book with Cash and Bank Columns. 6
2 2023 ₹
Feb.1 Bank overdraft 12,000
Cash-in-hand 2,300
5 Purchased goods for ₹ 40,000; Trade discount 15%
6 Sold goods for ₹ 30,000; Trade discount @10%
7 Cheque received from Apex Furnitures 4,000
Discount allowed 200
9 Cheque received from Apex Furnitures deposited in bank
12 Cheque paid to Nimesh Bros. 2,500
Discount received 50
15 Apex Furnitures cheque dishnoured
20 Money withdrawn from bank for office use 3,400
23 Fees of children paid by cheque from business account 75
25 Cheque received from Hemendra and endorsed it to Sanjana 4,500
27 Bank Charges 20
31 Paid into Bank the entire balance after retaining ₹ 700 at office

2 From the following particulars prepare a Bank Reconciliation Statement in the Books of 6
3 Nandan Traders as on 28th February 2023 :-
i. Balance as per Pass Book on 28th February 2023 ₹ 6,000.
ii. Out of total cheques amounting to ₹ 37,500 drawn by Nandan Traders,
cheques aggregating ₹ 5,000 were encashed in March 2023.
iii. Out of total cheques amounting to ₹ 12,000 deposited, Cheques aggregating ₹
7,500 were credited in March 2023.
iv. Bank has allowed interest ₹ 303 on his bank balance.
v. Amount wrongly debited by bank ₹ 2,400.
vi. A cheque of ₹ 1,200 was entered in Cash Book in February 2023, but was
sent to bank in March 2023.
vii. A cheque of ₹ 13,300 paid into bank was returned dishonored but no
intimation was received from the bank till February 2023.
2 Pass Journal entries to rectify the following errors: 6
4
(a) ₹ 350 paid is cash for a typewriter was charged to Office Expenses A/c.
 (b) Goods amounted to ₹ 660 sold to Wilson, were correctly entered in Sales Book
but posted to Wilson’s Account as ₹ 760.
(c) The total sales for the month were overcast by ₹ 1,000.
(d) Goods worth 130 returned by Gita, were entered in Sales Book and posted
therefrom to the credit of Gita’s personal account.
(e) Wages paid for the construction of office, debited to wages account ₹ 13,000.
(f) ₹ 10,000 paid to Garg Furniture Store for the purchase of furniture as per their
Cash Memo were debited to ‘Furniture’ A/c.
2 Green Limited purchased on 1st April, 2020 a plant for ₹ 80,000. On 1st July, 2021, it 6
5 purchased additional Plant costing ₹ 48,000. On 1st December, 2022, the plant purchased
on 1st April, 2020 was sold off for ₹ 42,000 and on the same date fresh plant was
purchased at the cost of ₹ 75,000.
Depreciation is provided at 10% per annum on the Diminishing Balance
Method every year. Account are closed each year on 31st March. Show the Plant
Account for three years.
Or
The following balances appear in the books of Zoo Ltd. As on 01-04-2022 :
₹
Machinery Account 5,00,000
Provision for Depreciation Account 2,25,000

The machinery was depreciated at 10% p.a. on the Fixed Instalment Method; the
accounting year being April – March.

On 1.10.2022, a machinery which was purchased on 01.07.2019 for ₹ 1,00,000 was

sold for ₹ 42,000 and on the same date a fresh machinery was purchased for ₹ 2,00,000.
Prepare the Machinery Account and Provision for Depreciation Account for the
year ended 2022-23.

PART – B
FINANCIAL ACCOUNTING – II
2 The correct sequence for preparation of Final Accounts is: 1
6 1. Preparation of Trial Balance
2. Balancing of Accounts.
3. Preparation of annual financial Statements.
4. Passing Adjusting Entries.
Select the correct answer from the code given below;
a. 4,2,1,3 b. 2,4,3,1
c. 2,1,4,3 d. 4,2,3,1

2 Balance Sheet is prepared with the balances of which of the following: 1

7 a. All balances in ledger b. Balances of Personal Accounts
c. Balances of Real Accounts d. Balances of Personal and Real
Accounts
or
which of the following will be treated as drawings of the proprietor :
a. Income Tax b. Life Insurance Premium
c. Both a & b d. Neither a nor b
2 Manoher’s Profit & Loss Account shows net profit of ₹ 1,76,000 before charging 1
8 commission to manager. Provide for manager’s commission at 10% on the net profit after
charging such commission. Net profit and managers commission is …
a. ₹ 1,76,000 and ₹ 17,600 b. ₹ 1,58,400 and ₹ 17,600
c. ₹ 1,60,000 and ₹ 16,000 d. None of the above
or
Indirect Expenses are transferred to
a. Trading Account b. Profit & Loss A/c
c. Balance Sheet d. All of the above

2 Opening capital ₹ 70,000; Profit for the year ₹ 20,000; Drawings ₹ 7,000. During the 1
9 year proprietor sold ornaments of her mother for ₹ 22,000 and invested the same in the
business. Closing Capital is……
a. ₹ 1,03,000 b. ₹ 1,05,000
c. ₹ 1,09,000 d. ₹ 75,000

3 State with reason whether following are capital expenditure or revenue expenditure 3
0 i. Second-hand car was purchased for ₹ 1,35,000. ₹ 15,000 were spent on its
overhauling.
ii. ₹ 25,000 spent on whitewashing of old factory building.
iii. ₹ 22,500 paid for the installation of a new machine.
3 Compute Operating Profit from the following: 3
1 Revenue from operation (Sales) ₹ 44,40,000
Cost of goods sold ₹ 40,00,000
Opening Stock ₹ 4,40,000
Purchases ₹ 40,00,000
Closing Stock ₹ 4,40,000
Selling and distribution expenses ₹ 18,300
Office and Administrative expenses ₹ 3,46,500 (including interest on loans ₹
22,000 ; Loss on sale of furniture ₹ 35,000 ; Donation ₹ 5,100 and Loss by fire ₹ 20,000)

3 Satendra started business on 1st April 2022 with a Capital of ₹ 10,000. On 1st July, 2022 4
2 he borrowed from his friend Dwarika a sum of ₹ 4,000 @ 9% p.a. (interest not yet paid)
for business and also introduced further capital of ₹ 1,500. On 31st March 2023, his
position was: Cash ₹ 600; Stock ₹9,400; Debtors ₹7,000 and Creditors ₹ 6,000.
Ascertain his Profit or Loss taking into account ₹ 2,000 for his drawings during the year.
3 The following balances appeared in the Trial Balance of Kanpur Mobiles as at 31st March 4
3 2023:
Sundry Debtors ₹ 3,05,000
Bad Debts ₹ 5,000
Provision for bad debts ₹ 20,000
The firm agreed to record the following adjustments in the books of accounts.
Further Bad Debts ₹ 3,000; maintain provision for bad debts 10%. Show the treatment of
the above adjustments in Profit & Loss Account and in Balance sheet as on 31st March
2023.
or
Distinguish between Double Entry System and Incomplete Records (Single Entry
 System) on the basis of :
a. Recording of aspects.
b. Trial Balance.
c. Suitability and
d. Reliability.
6
st
3 Prepare Trading and Profit & Loss Account for the year ended on 31 March, 2023 from
the following particulars;
4
Trial Balance
(As on 31st March, 2023)
Dr. ₹ Cr. ₹
Cash on hand 2,000
Cash at Bank 18,000
Purchases and Sales 2,20,000 3,50,000
Return inwards and Return outwards 6,000 7,500
Carriage inwards 4,400
Carriage outwards 2,100
Fuel and Power 15,500
Stock as on 01-04-2022 36,000
Bad debts 6,200
Bad debts provision 2,500
Debtors and Creditors 82,000 30,000
Capital 2,17,000
Investments 20,000
Interest on investments 2,000
Loan from X @ 18% 10,000
Repairs 1,520
General Expenses 10,600
Land and Buildings 1,80,000
Wages and Salaries 18,000
Sundry receipts 120
Bills Payable 5,200
Stationery 2,000
6,24,320 6,24,320

Additional information:
a. Closing stock is valued at ₹ 50,000.
b. Entire stationery was used by the proprietor for own purpose.
c. Write-off ₹ 2,000 as bad debts and provision for Doubtful Debts is to be
maintained at 5% on Debtors.
d. Loan from X was taken on 1st August 2022. No interest has been paid so far.
e. Included in general expenses is insurance premium ₹ 1,200 paid for one year
ending 30th June 2023.
f. 1/3rd of Wages and Salaries is to be charged to Trading Account and balance to
P/L A/c.
Or
Prepare Profit & Loss Account and Balance Sheet as on 31st March, 2023 from the
following particulars;
Dr. ₹ Cr. ₹
Capital 3,20,000
Building 4,00,000
Motor Bike 40,000
Gross Profit 2,83,000
Bad debts 3,000
Bad debts provision 7,000
Bank loan 50,000
Interest on Bank loan 3,000
Commission 9,000
Motor Bike expenses 4,000
Salaries 44,000
Cash on hand 29,200
Debtors and Creditors 30,000 20,000
Income Tax 12,000
Income Tax paid in advance 4,000
Interest on advance payment of income tax 200
Closing Stock 1,20,000
6,89,200 6,89,200
Additional information:
a. Commission includes ₹ 3,000 received in advance.
b. Salaries have been paid for 11 months.
c. Bank loan has been taken at 10% p.a. interest.
d. Depreciate building by 5% and Motorbike by 15%.
g. Write-off ₹ 2,000 as bad debts and provision for Doubtful Debts is to be
maintained at 5% on Debtors.
 KENDRIYA VIDYALAYA SANGATHAN LUCKNOW REGION
SUPPLEMENTARY EXAMINATION 2023-24
SUBJECT: ACCOUNTANCY (055)
CLASS XI
MARKING SCHEME
Q. PART –A
No. FINANCIAL ACCOUNTING - I Marks

1 C. Only (R) is correct 1

2 D. All of the above 1
or
B. ₹ 18,000
3 C. Asset put to use 1
4 D. Sales Return Book 1
or
C. Assets and Expenses
5 D. Understandability 1
or
D. all of the above
6 B. A statement prepared by customer. 1
7 C. Output IGST A/c 1
or
B. Liability
8 D. Prepaid Expenses 1
or
A. Historical cost
9 B. ₹ 2,00,000 1
10 B. Materiality ( An item is recorded in the books of account on the basis of Materiality.) 1
11 D. not necessary 1
12 B. Replacement of Memory 1
13 C. (A) is true, bur (R) is false 1
14 D. ₹ 35,85,000 1
15 C. Accrual 1
16 A. Both (A) and (R) are correct and (R) is the correct explanation of (A). 1
17 What do you mean by ‘Trial Balance’? Explain any two objective of preparing trial balance. 3
Answer: Trial Balance is a statement, prepared with the debit and credit balances of ledger
accounts to test the arithmetical accuracy of the books.
OBJECTIVE OF PREPARING TRIAL BALANCE: (any two with explanation)
1. To ascertain the arithmetical accuracy of the ledger accounts.
2. To help in the locating errors.
3. To obtain a summary of the ledger accounts.
4. To help in preparing Final Accounts. 1+2 =3
or
Trial Balance
 Particular Dr. ₹ Cr. ₹
Prepaid Expenses 5,000
Outstanding rent 2,000
Bad debts recovered 4,000
Interest on Investment 1,000
Due to Mohan 5,000
Bank Overdraft 2,000
Discount allowed 800
Due from Vinod 1,200
Investment 15,000
Patents 4,000
Machinery 6,000
Capital 18,000
Total 32,000 32,000
¼ *12 = 3

18 Sales Book
Date Name of the customer Invoice LF Amount Amount
No.
2023
Mar 1 Ruchira Electronics, Lucknow 123
5 BPL T.V. @ ₹ 20,000 each 1,00,000
Less : Trade Discount @ 20%. 20,000
80,000 80,000

Mar 2 Garun Electronics, Kanpur 124 3

10 Washing Machines @ ₹ 8,000 each. 80,000
Less : Trade Discount @ 25%. 20,000
60,000 60,000

Mar 4 Rahat Electronics, Varanasi 126

8 Music System @ ₹ 15,000 each 1,20,000
10 Colour T.V. Sets @ ₹ 22,000 each 2,20,000
3,40,000
Less : Trade Discount @ 20%. 68,000
2,72,000 2,72,00
0
Mar 31 Sales A/c Cr. 4,12,00
0

1+1+1
Note : Goods sold to Hira Bros, Pune, vide Cash Memo No. 125 is cash sales hence it will
not be recorded in the Sales Book.
19
Distinction between Provisions and Reserves
Basis Provisions Reserves
1
Meaning Created to meet known liability Created to meet unknown liability
+
Object Provide for depreciation, doubtful To strengthen the financial position of the
debts etc. business 1
Utilization Cannot be used for Can be used for +
for 1
dividends =

or 3
Functions of Accounting. (any three with explanation)
i. Maintaining Systematic record.
ii. Preparation of final accounts.
iii. Meeting legal requirements.
iv. Communicating the financial information.
v. Assistance to management.

20 Accounting equation 3
Transactions Assets Capital
Debtors Stock Cash Capital
a Started business 40,000 2,00,000 2,40,000
b Sold 50% of the above
goods at a profit of ₹ + 24,000 -20,000 + 4,000
4,000 to Raghunath
24,000 20,000 2,00,000 2,44,000
c Raghunath paid 90%
of his amount in final -24000 +21,600 -2,400
settlement.
Final Equation 0 20,000 2,21,600 2,41,600
1+1+1

21
Answer: 1+1+1+1
DATE PARTICULARS LF Amount Amount
2023 ₹ ₹
Apr 1 Purchases A/c Dr. 6,400
To Cash A/c 6080
To Discount Received A/c 320
( Goods for ₹ 8,000 purchased at 20% trade 4
discount and 5% cash discount)
Apr 8 Cash A/c Dr. 20,000
To Sales A/c 20,000
( Goods costing ₹ 15,000 sold at a profit of
 20% trade discount and 5% cash discount 33
1/3 % on cost)
Apr Loss by fire A/c Dr. 4,000
10 To Purchases A/c 4,000
( Goods costing ₹ 4,000 lost by fire)
Apr Plant A/c Dr. 1,02,000
16 To Cash A/c 1,02,000
( Plant purchased for ₹ 1,00,000 and
installation charges paid ₹ 2,000)

22 TWO COLUMN CASH BOOK

DATE PARTICULARS LF CASH BANK DATE PARTICULARS LF CASH BANK (0.5*8)
2023 ₹ ₹ ₹ ₹
Feb1 To balance b/d 2,300 Feb1 By balance b/d 12,000
=
6 To Sales A/c 27,000 5 By Purchases A/c 34,000
9 To Cheques in hand 4,000 12 By Nimesh Bros. 2,500
20 To Bank A/c C 3,400 15 By Apex Furnitures 4,000
6
31 To Cash A/c C 5,000 20 By Cash A/c C 3,400
31 To Balance c/d 20835 23 By Drawings A/c 75
27 By Bank charges 20
31 By Bank A/c C 5,000
31 By Balance c/d 700
5,700 60,075 5,700 60,075
Mar To Balance b/d 700 Mar By Balance b/d 20835
1 1

23 BANK RECONCILIATION STATEMENT 6

As on 28th February 2023
PARTICULARS + -
Balance as per Pass Book on 28th February 2023 6,000
Cheques drawn but not presented for payment upto 32,500
February 2023 (₹ 37,500 – ₹ 5,000)
Cheques deposited but not credited upto February 2023 4,500
(₹ 12,000 – ₹ 7,500)
Interest allowed by Bank 303
Amount wrongly debited by bank 2,400
A cheque entered in Cash Book but not sent to bank in 1,200
cheque returned dishonored 13,300
27,400 32,803
th
Cr. Balance (OD) as per Cash Book on 28 February 23 5,403
*No Marks will be awarded for the balances.
(1*6 = 6)

24 JOURNAL
a Office Equipment’s A/c Dr. 350
To Office Expenses A/c 350
 b Suspense A/c Dr. 100
To Wilson 100
c Sales A/c Dr. 1,000 (1*6)
To Suspense A/c 1,000
d Sales Return A/c Dr. 130 =6
Sales A/c Dr. 130
To Suspense A/c 260
e Building A/c Dr. 13,000
To Wages A/c 13,000
f Correct Entry

25
Plant Account
Date Particulars ₹ Date Particulars ₹
1.4.20 To Bank A/c 80,000 31.3.2 By Depreciation A/c 8,000
0
31.3.2 By Balance c/d 72,000
0
80,000 80,000 6
1.4.21 To Balance b/d 72,000 31.3.2 By Depreciation A/c 10,800
1 (7,200 + 3,600)
To Bank A/c 48,000 31.3.2 By Balance c/d 1,09,20
1 (64,800+ 44,400) 0
1,20,00 1,20,00
0 0
1.4.22 To Balance b/d 1,09,20 1.12.2 By Bank A/c 42,000
0 2
1.12.22 To Bank A/c 75,000 1.12.2 By Depreciation A/c 4,320
2 (64,800*10%*8/12)
1.12.2 By P/L A/c (loss ) 18,480
2 (64,800-42000-4,320)
31.3.2 By Depreciation A/c 6,940
3 (4,440+2,500)
31.3.2 By Balance c/d 1,12,46
3 (39,960 +72,500) 0
1,84,20 1,84,20
0 0
1.4.23 To Balance b/d 1,12,46
0
(1+2+3 = 6)
Or

Machinery Account
Date Particulars ₹ Date Particulars ₹
1.4.22 To Balance b/d 5,00,00 1.10.2 By Bank A/c 42,000
 0 2
1.10.22 To Bank A/c 2,00,00 1.10.2 Provision for 32,500
0 2 Depreciation A/c
1.10.2 By P/L A/c (loss ) 25,500
2 100000-42000-32500
31.3.2 By Balance c/d 6,00,00
3 0
7,00,00 7,00,00
0 0
1.4.23 To Balance b/d 7,00,00
0

Provision for Depreciation Account

1.4.22 To Machinery A/c 32,500 1.4.22 By Balance b/d 2,25,00
(total dep on 0
machinery sold t/t
machinery A/c)
31.3.23 To Balance c/d 2,47,50 1.10.2 By Depreciation A/c 5,000
0 2 (Dep.on machine sold)
31.3.2 By Depreciation A/c 50,000
3 (40,000+10,000)
2,80,00 2,80,00
0 0
1.4.23 By Balance b/d 2,47,50
0
(3+3 = 6 )

PART – B
FINANCIAL ACCOUNTING - II
26 C. 2,1,4,3 1
27 D. Balances of Personal and Real Accounts 1
or
C. Both a & b
28 C. ₹ 1,60,000 and ₹ 16,000 1
or
B. Profit & Loss A/c
29 B. ₹ 1,05,000 1
30 Capital Expenditure or Revenue Expenditure: 1+1+1
3
i. Total Expenditure of ₹ 1,50,000 is Capital Expenditure. ₹ 1,35,000 for capital
asset while ₹ 15,000 were spent to make the car ready for use.
ii. ₹ 25,000 spent on whitewashing of old factory building is Revenue
Expenditure as it’s for the maintaining the asset and not for improving the asset.
iii. ₹ 22,500 paid for the installation of a new machine is a Capital Expenditure
because the amount spent is up to the point when the asset is ready for use.
31 Operating Profit = Gross profit (Revenue from operation – COGS) – Operating Expenses 3
= ₹ 4,40,000 – { ( 3,46,500-22,000-35,000-5,100-20,000) + (18,300)}
= ₹ 4,40,000- {2,64,400+ 18,300}
= ₹ 1,57,300

32 4
Statement of Affairs (as at 31-03-2023)
Liabilities ₹ Assets ₹
Creditors 6,000 Cash 600
Dwarika’s Loan 4,000 Stock 9,400
Add : Interest on loan 270 4,270 Debtors 7,000
Capital (balancing g figure) 6,730
17,000 17,000

Statement of Profit or Loss (for the year ended 31st March 2023)
Particulars ₹
st
Capital as on 31 March 2023 6,730
Less : Additional Capital 1,500
5,230
Add : Drawings 2,000
Adjusted Capital 7,230
Less : Capital as on 1st April 2022 10,000
NET LOSS FOR THE YEAR 2,770
2+2= 4

33 Profit & Loss Account (for the year ended 31st March 2023)
Particulars ₹ Particulars ₹
To Provision for Bad Debts A/c:
Bad Debts 5,000
+ Further Bad debts 3,000
8,000
+ New Provision 30,200
38,200
-Old Provision 20,000 18,200

Balance Sheet (As on 31st March 2023)

Liabilities ₹ Assets ₹
Sundry Debtors 3,05,000
- Further Bad debts 3,000
3,02,000
- New Provision 30,200 2,71,800
(10% of 3,02,000)
2½ + 1½
or 4
Difference between Double Entry System and Incomplete Records (Single Entry System)
 Basis Double Entry System Single Entry System
Recording of Both the aspects Both the aspects of very few
aspects transactions and for some only one
aspect is recorded
Trial Balance Can be prepared Can’t be prepared
Suitability For all types of business For small business where no. of
transactions are less.
Reliability reliable Less reliable
1+1+1+1=4

34 6
Trading Account and Profit & Loss Account (for the year ended 31st March 2023)
Particulars ₹ Particulars ₹
To opening stock 36,000 By Sales 3,50,000
To purchases 2,20,000 Less : S Return 6,000 3,44,000
Less : P. Return 7,500 2,12,500 Closing Stock 50,000
To carriage on purchases 4,400
To Fuel and Power 15,500
To Wages and Salaries 6,000
To Gross Profit c/f 1,19,600
3,94,000 3,94,000
To Carriage outwards 2,100 By Gross Profit b/f 1,19,600
To Wages and Salaries 12,000 By Interest on investments 2,000
To Repairs 1,520 By Sundry receipts 120
To General Expenses 10,600
Less : Prepaid Insurance 300 10,300
To Bad-Debts 6,200
Add : further bad debts 2,000
Add : new provision 4,000
12,200
Less : old provision 2,500 9,700
To outstanding Interest 1,200
(10,000*18%*8/12)
To Net Profit t/t Capital A/c 84,900
1,21,720 1,21,720

2½ + 3½

or
Profit & Loss Account (for the year ended 31st March 2023)
Particulars ₹ Particulars ₹
To Interest on Bank loan 3,000 By Gross Profit b/f 2,83,000
Add: O/S Interest 2,000 5,000 By Commission 9,000
To Motor Bike expenses 4,000 Less: Commission in adv. 3,000 6,000
To Salaries 44,000 By Provision for Bad Debts:
 Add :O/S Salaries (44000/11) 4,000 48,000 Old Provision 7,000
To Depreciation : Less: Bad-Debts 5,000
Building 20,000 2,000
Motorbike 6,000 26,000 Less: New Provision 1,400 600
To Net Profit t/t Capital A/c 2.06,600
2,89,600 2,89,600

Balance Sheet (As on 31st March 2023)

Liabilities ₹ Assets ₹
Bank loan 50,000 Cash on hand 29,200
Add : O/S Interest 2,000 52,000 Sundry Debtors 30,000
Creditors 20,000 - Further Bad debts 2,000
O/S Salaries (44000/11) 4,000 28,000
Commission in advance 3,000 -New Provision for BD 1,400 26,600
Capital 3,20,000 Closing Stock 1,20,000
Add : Net Profit 2.06,600 Motor Bike 40,000
5,26,000 Less : Depreciation 6,000 34,000
Less : Drawings 15,800* 5,10,800 Building 4,00,000
Less : Depreciation 20,000 3,80,000
5,89,800 5,89,800
3+3
* ₹ 12,000+ ₹ 4,000 – ₹ 200 = ₹ 15,800