PRESTIGE CONVENT SCHOOL

Pocket B-5, Sector-8, Rohini, Delhi-85

(SESSION: 2024-2025)
ASSIGNMENT
PRACTICE PAPER
SUBJECT: ACCOUNTANCY (055)

General Instructions:
 This assignment contains 20 questions and 4 pages in all. All questions are compulsory.
 Solutions of the questions will be done on loose RULED A-4 Size sheets only.
 Solve the practical questions in proper formats.

1. Consider the following points with respect to the steps of Accounting:

(i) Identification of business transaction.
(ii) Recording of transaction into Journal.
(iii) Posting the transaction into Ledger.
(iv) Paying salary to the accountant.
Identify the correct statement/statements:
(a) (i) only
(b) (i) and (ii) only
(c) (i), (ii) and (iii)
(d) (i), (ii), (iii) and (iv)

2. Assertion: Only financial transactions are recorded in Accounting.

Reasoning: Events or transactions, which can be expressed in terms of money, are recorded in the books of
accounts.
(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 correct, but R is incorrect.
(d) A is incorrect, but R is correct.

3. Mr. Ram creates provisions for certain types of contingencies that may happen in near future but does not
anticipate any future profits.
Identify the accounting concept being followed by Mr. Ram.
(a) Conservatism concept
(b) Full disclosure concept
(c) Dual aspect concept
(d) Money measurement concept

4. Which of the following transactions will become a part of Bank Reconciliation Statement:
(a) Amount wrongly debited by Bank ₹ 5,000
(b) Amount wrongly credited by bank ₹ 500
(c) Both (a) and (b)
(d) None of the above

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5. Mr. Manoj Manohar Lai started a new business with cash of ₹ 60,000 by the name Manohar Lai and Sons
on 1st of March, 2020. For the business, he had to purchase furniture on the 2nd of March worth ₹ 10,000.
He decided to buy the goods for cash as well on that day for ₹ 25,000 and on credit from Janki Das and Sons
for ₹ 50,000. On 4th of March he was able to sell the goods at ₹ 60,000 out of which 75% was on credit to
different people.
For the sale of goods on 4th of March, how much will be recorded in the Cash Account?
(a) ₹ 60,000
(b) ₹ 45,000
(c) ₹ 15,000
(d) ₹ 75,000

6. Explain the following terms citing an example for each:

(i) Double Entry System of Accounting
(ii) Cash Basis of Revenue and Cost Recognition.

7. Drawings ₹ 15,000, Profit for the year ₹ 25,000, Closing Capital ₹ 70,000. Calculate the Opening Capital.

8. Create accounting equations on the basis of the following transactions:

(i) Started business with cash ₹ 8,00,000 and goods ₹ 2,00,000.
(ii) Cash deposited into Bank ₹ 15,00,000.
(iii) Purchased machinery from Arjun ₹ 10,000.
(iv) Bought goods for cash ₹ 80,000.
(v) Paid to Arjun by cash ₹ 10,000.
(vi) Salary paid by cheque ₹ 20,000.

9. Mayank does not keep proper records of his business. He has given you the following information.
Opening Capital ₹ 1,00,000; Closing Capital ₹ 1,25,000; Drawings ₹ 30,000; Additional Capital ₹ 37,500
Calculate the profit.

10. From the following information, prepare Bank Reconciliation Statement as on 31st March, 2016:
₹

(i) Bank overdraft as per Cash Book 1,70,000

(ii) Directly deposited to the bank by Sudhir (customer) 12,000

(iii) Cheques issued but not presented for payment 83,000

(iv) Cheques entered in Cash book but not banked 42,000

11. Opening Stock ₹ 10,000, Purchases ₹ 18,200, Expenses on purchases ₹ 2,000, Sales ₹ 30,000, Expenses
on sales ₹ 1,000, Closing Stock ₹ 12,200. Calculate Cost of Goods Sold and Gross Profit.

12. The following information is given of an accounting year opening creditors ₹ 15,000; cash paid to
creditors ₹ 15,000; Returns outward ₹ 11,000 and closing creditors ₹ 12,000. Calculate credit purchases
during the year.

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13. Enter the following transactions in a simple Cash Book of Lata, Delhi:

2018 Particulars ₹
Jan. 01 Started Business with Cash 1,00,000
Jan. 02 Opened a bank account and deposited 50,000
Purchased goods for cash for ₹ 20,000 plus CGST and
Jan. 03
SGST @6% each from Kala Electricals, Delhi
Sold goods of ₹ 5,000 plus IGST @ 12% to Ram of
Jan. 03
Chandigarh on credit.
Jan. 05 Received from Ram 3,000
Jan. 07 Paid Rent of ₹ 4,000 plus CGST and SGST @6% each
Jan. 10 Withdrew cash from bank 7,000
Purchased furniture in Cash ₹ 15,000 plus CGST and
Jan. 27
SGST @ 6% each from a trader of Delhi
Jan. 31 Paid Salaries 5,000

14. On which side of the Trial Balance the following ledger balances will appear?
(i) Purchases (ii) Capital
(iii) Trade Receivable (iv) Drawings
(v) Discount Received (vi) Buildings

15. Pass journal entries for the following:

(i) Surekha started business with cash ₹ 5,00,000.
(ii) Bought goods from Goyal son’s for ₹ 3,00,000, paid half by cash.
(iii) Sold goods to Sonika for ₹ 1,00,000, received ₹ 60,000 immediately.
(iv) 10% of the goods returned by Sonika being defective.
(v) Paid to Goyal son’s ₹ 1,49,000 in full settlement.
(vi) Paid rent ₹ 15,000, 2/3rd of the premises is occupied for own use.

16. Prepare a Sales Return Journal (Book) from the following transactions of M/s Bansal Electronics for the
November 2014:
(i) M/s Gupta Trader Returned the goods amounted ₹ 1500.
(ii) Goods Return from M/s Harish Traders for ₹ 800.
(iii) M/s Rahul Traders return the goods not as per Specification for ₹ 1,200.
(iv) Goods Return from Sushil Traders for ₹ 1,000.

17. (i) During the financial year 2018-19, Ashok had cash sales of ₹ 3,90,000 and credit sales of ₹ 1,60,000.
His expenses for the year were ₹ 2,70,000, out of which ₹ 80,000 is still to be paid. Find out Ashoka’s
income for 2018-19 following the cash basis of Accounting.
(ii) Distinguish between Cash Basis and Accrual Basis of Accounting.

18. What adjustment entries would you pass for the following?
(i) To write-off further bad debts
(ii) Provision for doubtful debts on debtors
(iii) Provision for discount on debtors.

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19. Prepare a double column Cash Book with cash and bank column with following information:

20. Post the following transactions into Ledger Accounts:

2023
Jan 1: Purchased Readymade Clothes from Mahendra of Delhi of the list price of Rs. 40,000 less 10%
Trade Discount.
Jan 5: Sold Readymade Clothes to Mohan, Amritsar for Rs. 10,000 less Trade Discount 10%.
Jan 6: Returned goods to Mahendra of the list price of Rs. 5,000.
Jan 7: Shyam Singh, Delhi sold Readymade (Men) Clothes ot us for Rs. 30,000.
Jan 8: Sold Readymade Clothes (Men) to Harish, Amritsar for Rs. 12,000.
Jan 19: Sold Readymade Clothes to Mohan, Amritsar for Rs. 6,000, Trade Discount 10%.
Jan 27: Sold Readymade Clothes to Mahesh, Varanasi for Rs. 8,000.