Download Ans key First term Acc XI

ITL Public School
Answer Key First Term (2015-16)
Accountancy(055)(Set -A)
Date:24.09.15
Time:3 hrs
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Class: XI
M. M: 100
How is Accounting information useful for ‘Banks and Financial Institutions’?
Ans.provide loan; ensure safety & recovery of loan advanced. (any 2)
The owner of the firm does not record his personal expenses in the firms’ books.Which
principle is violated in this case?
Ans.Business Entity principle
Godrej Ltd imported from Germany one machinery for sale in India and another machinery for
production purposes. Which will be treated as goods and which as fixed asset?
Ans. 1st machinery as goods & 2nd as fixed asset.
‘Charity given through cash’ - State its effect on Accounting equation.
Ans. Reduce the cash as well as the capital of business
Differentiate between Trade Discount and Cash Discount on the basis of ‘nature’.
Ans. T.D is allowed on bulk purchases but C.D. on prompt payment.
(i)
What is a compound journal entry?
(ii)
Is Cash Book a Journal or a ledger?
(iii) For what purposes is a journal proper used?
Ans.i. it is a journal entry in which one or more accounts are debited or credited
ii.it is a journal as both cash & bank transactions are first recorded in it & a ledger since it
serves the purpose of a cash account also. When a cash book is prepared, no separate cash
account is opened in the ledger.
iii. it is a book in which transactions that are not recorded in other subsidiary books are
recorded.
Comment upon the following statements by giving appropriate reasons:
i.
Accounting is not fully exact
ii.
Accounting information must be presented in such a way that only accounting
people understands it.
iii.
Accounting information must be reliable.
Ans. i. True as some estimates are made to calculate profit or loss.
ii.False – Acc info must be presented in a simple & logical manner that they are understood
easily by the users.
iii.True as it must be based on facts & reliable(1 x3)
Shri Hariharan had started a new mid - sized business. He being new to accounting sought
advice from a chartered accountant on maintenance of accounts. He was advised that he should
follow Double Entry System of Accounting maintaining accounts on accrual basis. Some of his
friends advised him to maintain accounts on Cash Basis of Accounting. He decided to follow
the advice of the chartered accountant. Is the decision of Hariharan correct? Justify your
answer by giving appropriate reasons.
Ans. Yes his decision is correct. (0.5)
Give meaning / advantages of accrual basis.
(1.5)
By following cash basis of accounting, bs does not show correct financial performance &
financial position as credit transactions would not be recorded.(1)
From the following particulars, prepare the account of D. Budhiraja, the proprietor of a
business: Rs.
i.
Capital introduced
30,000
ii.
Drawings made by him
6,500
iii.
Further capital introduced
22,000
iv.
Profit for the period
7,500
Ans.
D. Budhiraja’s Capital A/c
1
1
1
1
1
3
3
3
3
Particulars
To drawings
To bal c/d
10
11
12
Amt
Particulars
6500 By Cash A/c
53000 By Cash A/c
By Profit & Loss A/c
59,500
By bal b/d
Amt
30,000
22,000
7,500
59,500
53,000
(0.5 for each entry)
Explain the‘Imprest System’ of Petty Cash Book by giving an example.
Ans. Imprest System of Petty Cash – The petty cashier is given a certain amount of cash for a
particular period (a week, a month) to meet various petty expenses for the period. At the end of
the period, the amt actually spent by the Petty Cashier is reimbursed by the Chief Cashier.
Any one example
(2 + 1)
Classify the following into per Modern or Traditional approach:
i.
Purchases A/c
v. Accrued income A/c
ii.
Rahul’s A/c (a supplier)
vi. Trademarks A/c
iii.
Bad debts written off A/c
vii. Commission received A/c
iv.
Investments in XYZ Ltd
viii. Purchase returns A/c
Ans.
i.
Purchases A/c - Expense / Nominal
v. Accrued income A/c – Asset /Personal
ii.
Rahul’s A/c (supplier) - Liability/Personal
vi. Trademarks A/c – Asset /Real
iii.
Bad debts A/c – Expense / Nominal
iv.
Investments in XYZ Ltd – Asset/Real
vii. Commission recd A/c – revenue/ Nominal
viii. Purchase returns A/c - expense/ nominal
Define the following Accounting terms:
i.
ii.
iii.
iv.
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Non – current liabilities
Current assets
Revenue receipts
Trade Payables
Ans.i. Non – current liabilities – which is payable after a period of more than a year
ii.Current assets – which are held for the purpose of converting them into cash within a short
period – 1 yr
iii.Revenue receipts – amtrecd or receivable in the normal course of business.
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iv.Trade Payables – amt payable for purchase of G & S taken in the ordinary course of
business; it is the sum of creditors & bills payable.(1 x 4)
(i)
X Ltd has the following assets and liabilities as on 31st March, 2015. Ascertain his
capital:
Cash Rs.25,000; Bank Rs.47,500; Debtors Rs. 18,000; Creditors Rs. 22,000; Plant and
Machinery Rs.80,000; Building Rs. 2,00,000; Furniture Rs. 24,000; Bills
receivable Rs. 56,500; Bills Payable Rs. 23,500.
(ii)
Capital as on 1st April, 2014: Rs.50,000;
Capital as on 31stMarch, 2015:Rs. 59,000;
Additional capital invested: Rs.5,000;
Amount withdrawn:Rs. 2,000. Find out profit earned or loss suffered.
Ans. (i) Capital = Assets – Liabilities
(0.5)
= (cash + bank + debtors + p & m + bldg + furniture + B/R ) – (cred + B/P)
= (25,000 + 47,500 + 18,000 +80,000 + 2,00,000 + 24,000 + 56,500) – (22,000
+ 23,500)
(1)
= 4,51,000 – 45,500 = Rs. 4,05,500
(0.5)
(ii)Cl cap = op cap + profit + add profit – drawings
(1)
2+
2
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59,000 = 50,000 + x + 5,000 – 2,000
(0.5)
X = Rs. 6,000 (profit)
(0.5)
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i.
Bought goods from Arun for Rs.2,00,000 at a trade discount of 15% and cash
discount of 2%. Paid 80% amount immediately. Pass journal entry.
ii.
Sold goods costing Rs. 40,000 to Ashok for cash at a profit of 25% on cost less 20%
trade discount and charged 8% Central Sales Tax .And paid cartage on sales Rs.200
.
Ans. i. Purchases A/c
Dr.1,70,000
To Arun A/c
1,70,000
Arun A/c
Dr. 1,36,000
To Cash A/c
1,32,280
To Dis recd A/c
ii. Cash A/c
3,720
Dr.
43,200
To Sales A/c
40,000
To CST A/c
3,200
Cartage A/c
Dr.
200
To Cash A/c
200
(1 mark each)
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Explain the following source documents:
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i.
Invoice
iii. Credit Voucher
ii.
Transfer Voucheriv. Receipt
Ans. i. Invoice- a document of sale of goods on credit. has details of goods sold.
ii.Transfer Voucher – prepared for transactions not involving cash; for credit sales, credit
purchases
iii.Credit voucher – prepared when cash is recd ; for cash sales; sale of fixed assets
iv.Receipt – document issued against receipt of amount. It has the details for date, amt& the
name of the payee of the amt.
(1 x 4)
From the following information, draw up the Trial Balance in the books of Vimal Traders as on 6
31st March, 2015:
Building Rs. 77,000; Sales Rs. 1,04,000; Capital Rs. 73,600; Fixtures Rs. 5,600; Cash Rs. 400;
Creditors Rs. 52,600; Discount received Rs.3,000; Loan from Ram Rs. 10,000; Debtors Rs.
61,800; Interest on Ram’s loan Rs. 1,000; Purchases Rs. 1,00,000; Purchase Returns Rs. 2,600.
Ans.
Trial Balance
st
As on 31 March, 2015
S.No.
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2
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Name of Account
Building
Sales
Capital
Fixtures
Cash
Creditors
Discount received
Loan from Ram
Debtors
Interest on Ram’s loan
Purchases
Purchase returns
Dr. bal
Cr. Bal
77,000
1,04,000
73,600
5,600
400
52,600
3000
10000
61,800
1,000
1,00,000
2,45,800
2600
2,45,800
(0.5 for each entry)
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Prepare an Accounting equation from the following information:
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i.
Started business with cash Rs.2,75,000 and goods Rs.25,000
ii.
Bought goods for cash Rs.30,000 and on credit Rs.44,000
iii.
Goods costing Rs.50,000 sold at a profit of 25%; out of which Rs.25,000 is received
in cash.
iv.
Building purchased from Sohan for Rs.10,00,000 by taking a loan of Rs. 8,00,000
from SBI.
v.
Amount withdrawn for personal use Rs.5,000.
vi.
Charge interest on drawings @5% .
Ans.
Accounting Equation
Cash
+
Goods +
25000
Capital
Creditors
+
+
=
300000
245000 +
30000
44000
99000
=
iii. 25000
270000 +
(50000)
49000
i.2,75,000
+
ii. (30000)
iv.
(200000)
70000 +
v. (5000)
65000 +
65000 +
Debtors +
49000
49000
49000
Building
=
37500
37500
=
=
37500
1000000 =
1000000
=
37500
37500
1000000
=
1000000
=
1151500
18
300000
+
12500
312500
+
312500
+
(5000)
307500
+
+ 250
(250)
307500
+
1151500
Loan
(1)
44000
44000
(1.5)
(1.5)
44000
44000
800000
800000
(1)
(0.5)
44000
800000
(0.5)
44000
800000
Fill in the missing information in the following journal entries:
JOURNAL
S.No.
i.
Particulars
______________
Dr.
______________
Dr.
To ___________
(Being goods sold for cash, list price of
Rs.5,000 sold at 10% trade discount & 2%
cash discount)
ii.
Chaturvedi’s A/c
Dr.
To __________
To ___________
(Being Chaturvedi’s A/c settled, cash
discount 3% )
iii. __________
Dr.
To _________
(Being rent due to landlord)
Ans.
S.No.
i.
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L.F. Dr. Amt
______________
____________
Cr. Amt
___________
5,000
___________
___________
___________
______________
JOURNAL
Particulars
_CASH_
Dr.
_DIS ALLOWED_
Dr.
To SALES_
(Being goods of the list price of Rs.5,000
sold at 10% trade discount & 2% cash
L.F. Dr. Amt
Cr. Amt
4410
90
4500
discount)
ii.
Chaturvedi’s A/c
Dr.
To CASH A/c
To DIS RECD_
(Being Chaturvedi’s A/c settled, cash
discount 3% )
iii. RENT___
Dr.
To RENT OUTSTANDING_
(Being rent due to landlord)
5,000
4850
150
2,000
2,000
(3 + 2 + 1)
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Identify and explain the Accounting principle followed in the following statements:
i.
Closing stock is valued at cost or net realizable value.
ii.
During the year, the company purchased ball point pens of Rs.300. These were
issued to employees and were still in use at the end of the year.
iii.
Aditya Enterprises assumes that the business will not be liquidated in the near
future.
Ans. i.Conservatism
ii.Materiality
iii.Going concern
(0.5 for pt& 0.5 for expl)
Pass journal entries:
i.
Received cash from Ram for a bad debt written off last year Rs.1,000.
ii.
Sohan is declared insolvent. Received from his Official Receiver a dividend of 60
paise in the rupee on a debt of Rs.2,500.
iii.
Charge interest on capital @ 10 % p.a. for 5 months (Capital Rs. 60,000)
iv.
Paid landlord Rs.4,500 for rent. One – third of the premises is occupied by the
proprietor for his own residence.
v.
Out of the insurance paid this year, Rs.5,000 relates to the next year.
vi.
Supplied goods at Rs.6,000 to Suresh, issued invoice at 10% above cost less 5%
trade discount.
Ans.
Journal
Date
i.
Particulars
Cash A/c
Dr
To bad debt recovered A/c
Cash A/c
Dr
Bad debt A/c
Dr
To Sohan
Int on cap A/c
Dr
To Capital
Rent A/c
Dr
Drawings A/c
Dr
To Cash A/c
Insurance A/c
Dr
To insurance paid in advance A/c
Suresh a/c
Dr
To Sales A/c
Ii
Iii
Iv
V
Vi
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lf
Dr. Amt
7
1,000
1,000
1500
1000
2500
2500
2500
3000
1500
4500
5000
5000
6270
6270
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12
6
Rs.
Cash in hand
Bank overdraft
Cheque received from S.Nair
Discount allowed
Cheque received from S.Nair deposited in bank
Cheque paid to Radha
Discount received
6
Cr Amt
(1 mark each)
Enter the following transactions in a Triple Column Cash Book:
2011
Jan 1
6
2,300
12,000
4,000
200
2,500
50
15
20
27
31
S.Nair’scheque returned dishonoured
Money withdrawn from bank for office use
Bank charges
Paid into bank the entire balance after retaining Rs.700 at
office.
Ans.
Three column Cash Book
Receipts
Date Particulars
Jan
1
9
20
31
31
To bal b/d
To cheques
in hand
A/c
To Bank
A/c
To Cash
A/c
To bal c/d
L.F. Dis Cash Bank
All
2300
C
C
3400
Date
Jan1
Feb1 To bal b/d
22
Payments
Particulars L.F. Dis Cash
recd
By bal c/d
4000 12
By Radha
15
By S.Nair
5000 20
By Cash
A/c
By Bank
Charges
By Bank
A/c
By bal c/d
12950 27
31
i.
3,400
50
50
Bank
12,000
2,500
4,000
C
3,400
50
C
31
5,700 21,950
Feb1 By bal b/d
700
5000
700
50 5,700 21,950
12950
Jan 7
Cheques in hand A/c
Dr.
4,000
Discount allowed A/c
Dr.
200
To S. Nair
4,200
ii.
Jan 15
S. Nair
Dr.
200
To dis allowed
200
[0.5 x 10 = 5 marks + 0.5 mark each for journal entry]
From the following information, prepare Bank Reconciliation Statement as on 31st March,
2015:
i.
Credit Balance as per Cash Book as on 31st March, 2015 Rs.35,000
ii.
Out of the total cheques amounting to Rs.10,000 issued, cheques aggregating
Rs.3,000 were encashed in March,2015; cheques aggregating Rs.4,000 were
encashed in April,2015 and the rest have not been presented yet.
iii.
Out of the total cheques amounting to Rs.5,000 deposited, cheques aggregating
Rs.1,500 were credited in March,2015 and balance cheques were credited in
April,2015.
iv.
Bank has debited Rs. 120 as bank charges.
v.
A cheque for Rs.800 was returned dishonoured by the bank.
vi.
The payment side of the Cash Book has been undercast by Rs. 2,800.
vii.
Cheque paid entered twice in the Cash Book Rs. 9,050
Ans.Bank reconciliation Statement
Particulars
as on 31st March, 2015
Plus items
Cr. Balance as per cash book
Cheques drawn but not presented for
payment
Cheques deposited but not credited
Bank charges
Chequedishonoured
Undercasting of payment side
Cheque entered twice
Minus
Marks
items
35,000 1
7,000
1
3500
120
800
2,800
9,050
1
1
1
1
1
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Unfavourable balance as per pass book
36170
52,220
23
\ 1
52,220
The following balances appeared in the books of Vishal Stores on 1st April, 2015:
Cash Rs.15,000; Bank balance Rs.5,000; Stock Rs.40,000; Machinery Rs.3,600; Sundry
debtors: Ashish Rs.11,000; Bimal Rs.13,000
Bank Loan Rs.10,000; Sundry Creditors: Garima Rs.12,500; Vijay Rs.7,500.
The following are the transactions for the month of April:
2015
April2
April4
April 5
April 9
April 15
April 19
April 22
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Rs.
Bought goods of Garima
Sold goods to Ashish
Bimal returned goods
Sold goods to Bimal
Purchased another machinery for Rs.15,000
and paid installation charges Rs.2,500
Received from Ashish Rs.11,500in full
settlement of his account.
Furniture sold
6,900
1,000
4,200
7,300
3,000
Pass journal entries in the books of Vishal Stores and prepare Ashish’s A/c, Bimal’s A/c,
Garima’s A/c and Machinery A/c.
Ans.
Journal
2015
Apr 1
April2
April4
April 5
April 9
April 15
April 19
April 22
Rs.
Cash
Bank
Stock
Machinery
Ashish
Bimal
To Bank Loan
To Garima
ToVijay.
To Capital
Purchases
To Garima
Ashish
To Sales
Sales returns A/c
To Bimal A/c
Bimal
To Sales A/c
Machinery
To Cash A/c
Cash
Dr
Discount Allowed Dr
To Ashish
Cash A/c
To furniture
Dr.
15,000
5000
40000
3600
11000
13000
10000
12500
7500
57600
Dr
6,900
6900
Dr
1,000
1000
Dr
4,200
4200
Dr
7,300
Dr
17500
7300
17500
11,500
500
12000
Dr
3,000
3000
(1 mark for opening entry + 0.5 for rest - 0.5 x 7 = 3.5)
Discount allowed a/c
Date
Apr 19
Particulars
To Ashish
LF
Amt
500
Date
Apr 30
Particulars
By p & L
a/c
LF
Amt
500
Particulars
By Cash
By Dis
allowed
LF
Amt
11,500
500
(1)
Ashish‘s A/c
Date
Apr 1
Apr 4
Particulars
To bal b/d
To Sales
A/c
LF
Amt
Date
11,000 Apr 19
1000
12000
12000
(1)
Bimal ‘s A/c
Date
Apr 1
Particulars
To bal b/d
Apr 9
To Sales
A/c
May 1
To bal b/d
LF
Amt
13000
Date
Apr 5
7300
Apr 30
Particulars
By sales
returns a/c
By bal c/d
LF
Amt
4200
16100
20300
16100
20300
(1)
Machinery A/c
Date
Apr 1
Particulars
To bal b/d
To Cash
A/c
May 1
To bal b/d
LF
3600
17500
Amt
Date
Apr 30
Particulars
By bal c/d
LF
21,100
21,100
Amt
21,100
21,100
(0.5)
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Enter the following transactions in the Purchase Book and Sales Book of Pawan Electric Store,
New Delhi:
2015
June 2
June 12
June 18
June 20
June 24
June 28
Ans.
Date
2015
June 2
June 24
Purchased goods from Surya Electric Store, ChandniChowk
200 tubelights @ Rs.50 each
50 table fans @ Rs.400 each
20 Heaters @ Rs.100 each
Trade Discount 15%
Sold goods to Prakash Electrical, South Extension:
20 ceiling fans @ Rs.650 each
35 Electric Irons @ Rs.500 each
40 Tubelights @ Rs. 50 each
Trade Discount 10%
Sold to Sunny Lamp, Lajpat Nagar, for cash
5 Electric Irons @ Rs.450 each
Purchased a Computer Printer for Rs.10,000 from Kailash
Printers
Moonlight Electricals Sold to us:
120 dozen bulbs @ Rs. 80 per dozen
20 Water Heaters @ Rs.120 each
Trade Discount 10%
Sunbeam Electricals purchased from us:
25 table fans @ Rs.800 each
15 Heaters @ Rs.200 each
Trade Discount 20%
Purchases Book
Particulars
Surya Electric Store
200 tubelights @ Rs.50 each
50 table fans @ Rs.400 each
20 Heaters @ Rs.100 each
L.F. Details
Less: Trade Discount 15%
Moonlight Electricals Sold to us:
120 dozen bulbs @ Rs. 80 per dozen
20 Water Heaters @ Rs.120 each
(2)
Amt
10,000
20,000
2,000
32,000
4,800
9,600
2,400
27,200
8
Less: Trade Discount 10%
Purchases A/c
12,000
2,400
(2)
9,600
36,800
Dr.
Sales Book
Date
Particulars
Prakash Electrical
20 ceiling fans @ Rs.650 each
35 Electric Irons @ Rs.500 each
40 Tubelights @ Rs. 50 each
L.F.
Trade Discount 10%
Sunbeam Electricals
25 table fans @ Rs.800 each
15 Heaters @ Rs.200 each
(2)
13000
17500
2000
32500
3250
(2)
20000
3000
23000
2300
Trade Discount 20%
Sales A/c
Details
Cr.
Amt
29250
20700
49950
ITL Public School
First Term (2015-16)
Accountancy(055)(Set -B)
Date:24.09.15
Time:3 hrs
Class: XI
M. M: 100
General Instructions:
1. All questions are compulsory
2. Marks for each question are indicated against it.
3. Attempt all parts of a question together.
3
5
13
14
How is Accounting information useful for ‘Investors and Potential Investors’?
Ans.provide loan; ensure safety & recovery of loan advanced. (any 2)
Differentiate between Trade Discount and Cash Discount on the basis of ‘recording’.
Ans. T.D is not recorded in books of accounts but C.D. is recorded.
Classify the following as per Modern or Traditional approach:
i.
Sales A/c
v. Investments in XYZ Ltd. A/c
ii.
Harish’s A/c (a supplier)
vi. Drawings A/c
iii.
Bad debts recovered A/c
vii. Rent paid
iv.
Accrued income A/c
viii.Goodwill
Ans. i.Sales A/c - Revenue/ Nominal
v. Inv in XYZ Ltd. A/c - / Asset/Real
ii.Harish’s A/c (a supplier) - Liability/Personal vi. Drawings A/c – Capital /Personal
iii.Bad debts rec A/c - Expense/Nominal
vii. Rent paid – Expense/Nominal
iv.Accr income A/c – Asset/Personal
viii.Goodwill – Asset/Real
(0.5 x 8 = 4)
Define the following source documents:
i.
Cash Memo
iii. Debit Voucher
ii.
Pay – in - slip
iv. Transfer Voucher
Ans. Cash Memo - a document of sale of goods against cash. It is issued by seller to the
buyer. has details of goods sold.
ii. Pay – in – Slip – a form made available by the bank to deposit of amt into the bank. Has a
counterfoil which is returned to the depositor.
iii. Debit Voucher – prepared when payment is made against expenses, purchases of
goods,etc
1
1
4
4
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iv.Transfer Voucher – prepared for transactions not involving cash; for credit sales, credit
purchases
Define the following Accounting terms:
i.
ii.
iii.
iv.
Capital expenditure
Non – current liabilities
Revenue receipts
Trade Receivables
Ans.i. Capital expenditure –incurred to acquire assets or improving the existing assets which
will increase the earning capacity of the business.
ii.Non – current liabilities – which are payable after a long pd of time
iii.Revenue receipts - amt recd or receivable in the normal course of business.
iv.Trade Receivables - amt receivable for sale of G & S taken in the ordinary course of
business; it is the sum of debtors & bills receivable.
(1 x 4)
4