Monday, March 21, 2016

AHSEC - Class 11: Accountancy Question Bank for March' 2016 Exam

Unit – 1: Introduction to Accounting
Expected Marks: 10
1)      What is accounting? What are its objectives? Give two characteristics of Accounting.
2)      Explain five points of advantages and limitations of accounting.
3)      What is Accounting Information? Mention any two three of accounting information. Mention the qualitative characteristics of accounting information.
4)      Mention three functions of Accounting.
5)      Define book-keeping. Give three differences between Book-keeping and Accountancy.      
6)      Mention the objectives and features of book-keeping.
7)      Write name of the parties who are interested in accounting information.
8)      What is source of document? Mention two sources of document.
9)      Mention any four process of Accounting. (Accounting Cycle)
10)   Define the following term in two lines: Capital, Drawings, Assets, Liability, Expenses, Incomes, Debtors, Creditors, Voucher, Revenue, Income, Debit note, Credit note, Proprietor, Deferred revenue expenditure, Contra entry.
Unit – 2: Theory Base of Accounting
Expected Marks: 8
1)      What is the Accounting standard? Mention its objectives.
2)      Mention the advantages and limitations of Accounting standard.

3)      What is GAAP? Mention its features.
4)      Mention three basic accounting assumptions.
5)      What are general considerations in selection of accounting policies?
6)      What are three bases of accounting? Define in one line.
7)      What is double entry system? Mention its merits and limitations
8)      Explain any two basic principles of Accounting.          
9)      Write short notes on: Dual Aspect Concept, Money Measurement Concept, Going Concern Concept, Accounting Period Concept, Full Disclousure, Consistency, Conservatism, Cost Concept
10)   Mr. A. Baruah is the owner of a business. If the capital of his business is Rs. 90,000 and the liabilities are Rs. 35,000, ascertain his total assets.
11) Draw an accounting equation from the following information.
a.       Amar started business with cash Rs. 50,000.
b.      Purchased goods from Bimal worth Rs. 7,000.
c.       Sold goods costing Rs. 10,000 are Rs. 11,000 for cash.
d.      Purchase Furniture for Rs.10,000.
e.      Rent paid Rs.500.
f.        Cash paid to Bimal Rs.5,000.

Unit – 3: RECORDING OF BUSINESS TRANSACTIONS
Expected Marks: 30
1)      What is an Account? What are its various types? Give a specimen form of Account.
2)      Define a Transaction. Mention its features. Explain briefly the classification of transactions.
3)      What is Journal and What is Journalising? What are various classes of journal?
4)      Where from the word “Journal” has been derived and what does it mean?
5)      What is subsidiary books? Mention its significance.
6)      Mention the transactions recorded in various types of journal.
7)      Mention five distinction between Journal and Ledger.          
8)      Define account, debit and Credit.
9)      Define Ledger. State its importance. What do you mean by “Balancing the Account”.
10)   Define Ledger. What are the Sub-divisions of a Ledger?        
11)   How are the rules of Debit and Credit applied in recording transaction in different types of accounts?
12)   What is BRS? Mention its need. State and explain briefly and five causes for differences between bank balance as per cash book and bank balance as per pass book.
13)   What is Debit Voucher and credit voucher?
14)   Explain any four points of differences between Cash Discount and Trade Discount.
15)   What is Journalising? Mention the steps from journalising a transaction.
16)   What is a Cash Book? State different types of Cash Book. Is Cash Book a ledger or a journal?
17)   Ascertain the class of the following accounts.
a)      Unexpired Insurance Account.
b)      Interest Received in Advance Account.
c)       Drawing Account
d)      Interest Account
e)      Prepaid insurance.
f)       Outstanding rent.
g)      Outstanding Salary Account.
h)      Reserve Account
i)        Purchase Return Account.
j)        Bills Receivable Account.
k)      Provision for discount
18)   From the following particulars prepare a Purchase Journal of M/s Bhattacharya Bros.
                Jan. 10 Purchased from Bose & Bose on account
                                30 shirts @ Rs. 100 each.
                                20 trousers @ Rs. 200 each case trade discount @ 10%.
                Jan. 12 Purchased from Kakati Brothers on credit
                                2 typewriters for office use for Rs. 16,000.
                Jan. 15 Purchased by 50 shirts on credit from Gogoi & Co. at Rs. 80 each.
                Jan. 22 Purchased for cash from Kalita Stores
                                10 shirts @ Rs. 75 each.
                Jan. 28 Purchased on credit from Prasad & Co.
                                100 shirts @ Rs. 75 each less trade discount 10%.
19) From the following particulars prepare Sales Book of M/s Ramesh Furniture House,                 deals in furniture:
                March 6. Sold in Credit to Bimal Stores
                                5 Almirah @ 650
                                5 Stools @ 50
                                Less 5% Trade discount, VAT 10%, Carriage 100
                March 12. Sold to Bora Furniture house
                                100 Chairs @ Rs. 75.
                                40 Tables @ Rs. 60.
                                Less Trade discount @ 10%
March 18. Sold in credit two old typewriters to Madan & Co. @ Rs. 800
                March 28. Sold to Satya Brata Baishya in Cash
                                1 Sofa set @ Rs. 750
                                1 Dining set @ Rs. 900
20) Make out the Returns books from the following:
                Nov.6 Returned goods to Bhaben                                            Rs. 50
                Nov. 11 Received goods returned by Naren.                        Rs. 100
                Nov. 15 Prabir returned us goods worth                                                Rs. 60
                Nov. 20 Arup received goods returned                                   Rs. 50
                Nov. 24 Returned goods as damaged to Ram.                     Rs. 35

21) Pass the opening journal entry on April, 1 1996 on the basis of the following information taken from the business of Mr. Chetia:
                (i) Cash in hand Rs. 2,000
                (ii) Sundry Debtors Rs. 6,000
                (iii) Stock of goods Rs. 4,000
                (iv) Land & Buildings Rs. 10,000
                (v) Sundry Creditors Rs. 10,000
22) Enter the following transaction in a Three-Column Cash book:
                Jan. 1                     Started business with cash. Rs. 20,000
                Jan. 2                     Deposited cash into bank Rs. 8,000
                Jan. 3                     Bought goods by cheque Rs. 150
                Jan. 4                     Received cheque from Traun Rs. 200
                                                Allowed him discount 10
                Jan. 5                     Sold goods for cash Rs. 40
                Jan.7                      Paid into Bank Rs. 230
                                                Cash                      Rs.30
                                                Cheque                Rs. 200
                Jan. 8                     Paid Shankar by Cheque Rs. 345
                                                Discount received Rs. 5
                Jan. 9                     Paid rent by cheque Rs. 180
                Jan. 10  Drew from Bank cash for office use. Rs. 200
                Jan. 30  Paid wages in cash Rs. 60
23) Prepare on Analytical Petty Cash Book under Imprest System  from the following particulars.
                Jan. 16  Received from the head cashier Imprest money Rs. 300.
                Jan. 16  Purchased Stationery goods Rs. 30
                                                Bought Stamps Rs. 25
                Jan. 18  Bought Revenue Stamps Rs. 25
                Jan. 19  Bought Carbon Papers Rs. 25
                Jan. 20  Paid cartage on goods purchased Rs. 70
                                                Paid wages for unloading Rs. 20
                Jan. 25  Paid for repairs of furniture Rs. 20
                Jan. 30  Paid to Ram on account Rs. 55
24) Record following transactions in the Sales Journal.
Jan. 10  Sold on credit to Pradeep Das Maligaon
                                                30 Chairs @ 50 each,
                                                20 Tables @ Rs. 50 each,
Less 5% Trade discount, VAT 10%, Carriage 100
Jan. 15  Sold on Credit to Dilip Kalita, Tura
                                                20 Chairs @ Rs. 55 each,
                                                10 Tables @ Rs. 60 each
Less 5% Trade discount, VAT 10%, Carriage 100
Jan. 20  Sold on cash to Arabinda Das
                                                30 Chairs @ Rs. 55 each,
                                                Trade discount @ 10%
Jan. 30  Sold on credit to Ramkishore old furniture for Rs. 200
25) Prepare a Three-column Cash Book with following transactions:
                March 1                Started business with cash                                                                          Rs. 20,000
                March. 2              Deposited cash into Bank                                                                             Rs. 18,000
                March. 3              Bought Goods by Cheque                                                                            Rs. 15,000
                March. 10            Drew from Bank for personal use                                                             Rs. 2,000
                March. 15            Sold goods for cheque which was paid into Bank the same day   Rs. 8,000
                March. 25            Drew from Cash for office use                                                                   Rs. 5,000
                March. 31            Received from Ram Krishna who owes us Rs. 300, cash Rs. 290 in full settlement of Account.
26) Enter the following transactions in a simple Cash Book of Mr. Nayan Kalita : 
                March. 1              Cash in hand                                                                                      Rs. 11,200
                March. 2              Paid into Bank                                                                                   Rs. 5,000
                March. 4              Purchased goods from Naresh on credit.                                              Rs. 2,500
                March. 5              Received from Rahim                                                                     Rs. 300
                March. 7              Paid rent                                                                                                              Rs. 30
                March. 8              Sold goods                                                                                                          Rs. 300
                March. 10            Paid to Manoj                                                                                    Rs. 700
                March. 27            Purchased furniture                                                                                       Rs. 200
                March. 31            Paid Salaries                                                                                       Rs. 100
27) Enter the following transactions in a Simple Cash Book :
                March. 1              Cash in hand                                                                                                      Rs. 11,200
                March. 5              Received from Rahim                                                                     Rs. 300
                March. 7              Paid Rent                                                                                             Rs. 30
                March. 8              Sold goods                                                                                          Rs. 300
                March. 10            Paid to Manoj                                                                                    Rs. 700
                March. 27            Purchased Furniture                                                                       Rs. 200
                March. 31            Paid Salaries                                                                                       Rs. 100
28) Prepare a Double Column Cash Book from the following transactions of Sri K. Choudhury.
                March. 1              Cash in Hand                                                                                      Rs. 8,000
                March. 6              Cash purchases                                                                                 Rs. 4,000
                March. 10            Wages paid                                                                                         Rs. 80
                March. 11            Cash sales                                                                                           Rs. 12,000
                March. 12            Cash received from Suraj                                                             Rs. 3,960
                                                And Allowed him discount                                                           Rs. 40
                March. 19            Cash paid to Mohan                                                                        Rs. 4,940
                                                And discount received                                                                   Rs. 60
                March. 27            Cash paid to Rejesh                                                                        Rs. 800
                March. 28            Purchased goods for cash                                                            Rs. 4,140
29) Prepare  Purchase Returns Book from the following transactions and post them into Ledger Accounts :          March. 4                Returned to Roy & Co. Calcutta
                                                2 wooden chair @ Rs. 200 each.
                March. 8              Returned to Mohan Furniture, Delhi
                                                4 V.I.P chair @ Rs. 1,500 each
                                                Less : 10% Trade Discount
                March. 15            Returned to Rao & Co. Mumbai
                                                1 Steel Almirah of Rs. 4,000
30) Write up the following transactions in a Three –Column Cash Book.   
                Dec. 1    Cash in hand                                                                                                      Rs. 2,000
                                Cash at Bank                                                                                                      Rs. 18,000
                Dec. 4    Received Cash from Ram                                                                              Rs. 950
                                Allowed him discount                                                                                    Rs. 50
                Dec. 6    Purchased stationery for cash                                                                    Rs. 200
                Dec. 7    Paid Shyam by cheque                                                                                  Rs.3,300
                Dec. 12 Rahim settled his account for  5,000 less 5% Discount by cheque.
                Dec. 18 Paid sundry expenses in cash                                                                     Rs. 300
                Dec. 23 Paid Jadu in cash                                                                                              Rs. 1,900
                                Received Discount                                                                                           Rs. 100
                Dec. 24 Withdrew from Bank for office use                                                          Rs. 1,000
                Dec. 28 Withdrew from Bank for personal use                                                    Rs. 1,500
                Dec. 29 Bought goods by cheque                                                                              Rs. 5,000
                Dec. 31 Sold goods for cash                                                                                         Rs. 2,000

31) From the following particulars prepare a Bank reconciliation statement of Sri B.K. Das as        at 31st March:
a)      The Cash book showed cash at Bank Rs. 12,840 on 31st March,’ 03.
b)      The following cheques were deposited on 30th and 31st March, 03 but collected after 31st March, 2003.
c)       The following cheques were issued but not chashed by 31st March, 03 (a) Rs. 439; (b) Rs. 581; (c) Rs. 1,000; (d) Rs. 180;
d)      A customer paid a cheque for Rs. 500 directly to Bank not written in cash book.
e)      Out of Rs. 20,500 paid in by Mr. X is cash and by cheque on 31st March, cheques amounting Rs. 7,500 were collected on 7 April.
f)       Out of cheques amounting Rs. 7,800 drawn by him on 27 March, a cheque   for Rs. 2,500 was encashed on 3rd April.
32) Prepare a Bank Reconciliation Statement Mr. Ghanshyam on 31,12.98 with the following particulars.
a)      Cash Book showed debited Balance of Rs. 8,000 as on 31.12.98.
b)      Cheques amounting Rs. 3,000 were issued to creditors but were not  presented to Bank for payment up to 31.12.98.
c)       Cheques or Rs. 2,500 were deposited into Bank but were not collected by  Bank up to 31.12.98
d)      (iv)                 Interest on deposit credited by Bank but not recorded in the Cash Book up to 31.12.98 Rs. 100.
e)      (v)  Bank charges debited by Bank but not credited in Cash Book upto 31.12.98 Rs. 30.
f)       (vi) A customer directly deposited in our Bank Account Rs. 500 on 28.12.98 but informed us of it on 2.1.99.
33) Prepare a Bank Reconciliation Statement as on 31st Dec.’99 from the following particulars.
a)      overdraft as per Cash Book as on 31-12-99 was Rs. 7,500.
b)      Cheque amounting Rs. 2,000 were deposited into Bank on 30-12-99 but were collected and credited by the Bank on 2nd January next.
c)       A cheque of Rs. 2,000 was issued on 28th Dec. but the same was presented to Bank after 31st Dec.
d)      Interest on Investment Rs. 1,500 was collected by the Bank but it was not recorded in the Cash Book.
e)      Insurance Premium was paid and debited by the Bank Rs. 500, but it was not recorded in the Cash Book.
f)       A cheque of Rs. 350 was deposited and credited by the Bank but was omitted to be recorded in the Cash Book.
g)      A cheque of Rs. 200 received from Barua and recorded in the bank column of Cash book was omitted to be deposited into Bank.
34) Prepare a Bank Reconciliation Statement as on 31st Dec. 2006 from the following particulars:
a)      Bank balance as on 31st Dec. 06 as per pass book was Rs. 21,000
b)      Cheques paid into bank on 27th Dec. Rs. 5,500 but not collected by the bank before 31st Dec.
c)       Cheques worth Rs. 7,500 issued prior to 31st Dec. were not presented to the bank till 31st Dec .
d)      Interest on deposit credited in the Pass-book Rs. 150 but not recorded in the Cash book.
e)      Bank Charges Rs. 280 recorded in the Pass book only.
35) Prepare a double column Cash book with the following.        
                Jan. 2                     Balance of Cash in hand                                                                                Rs. 25,000
                                                Balance at Bank                                                                                                                Rs. 10,000
                Jan. 3                     Deposited cash into Bank                                                                             Rs. 4,000
                Jan. 4                     Bought goods by cheque                                                                              Rs. 1,000
                Jan. 5                     Sold goods for Cash                                                                                        Rs. 1,400
                Jan. 7                     Drew from bank                                                                                               Rs. 2,300
                Jan. 8                     Received a cheque from Anil                                                                      Rs. 950
                                                Allowed him discount                                                                                    Rs. 50
                Jan. 9                     Anil’s cheque paid into Bank                                                                       Rs. 950
                Jan. 10  Paid wages in cash                                                                                                           Rs. 400
36) Prepare a Bank Reconciliation Statement as on 31st Dec. 2007 from the following  particulars:
a)      Overdraft as on 31st Dec, 2007 as per Cash Book was Rs. 27,000
b)      Cheques paid into bank on 25th Dec. 2007 Rs. 7,500 but not collected by the bank before 31st Dec, 2007
c)       Cheques worth Rs. 9,500 issued prior to 31st Dec. were not presented to the bank till 31st Dec, 2007.
d)      Interest on deposit credited in the Pass Book Rs. 250 but not recorded in the Cash Book.
e)      Bank charges Rs. 300 recorded in the Pass Book only.
37) Enter the following transactions in the Triple Column Cash Book and balance the same.
                March. 1              Cash in hand                                                                                                                      Rs. 3,000
                                                Bank overdraft                                                                                                                  Rs. 36,000
                March. 5              Cash sales                                                                                                                           Rs. 10,000
                                                Discount allowed                                                                                                             Rs. 200
                March. 8              Deposited into Bank                                                                                                       Rs. 9,000
                March. 9              Rent paid by cheque                                                                                                      Rs. 3,000
                March. 14            Received cheque from Mr. Dutta which  is deposited into Bank.                                Rs. 8,000
                March. 18            Paid by cheque to Mr. Das Rs. 6,900 in  full settlement of a claim for Rs. 7,000
                March. 22            Withdrew from Bank for office use                                          Rs. 2,000
                                                And for personal use                                                                      Rs. 1,100
                March. 28            Salaries paid                                                                                       Rs. 4,000
38) Prepare a petty cash book from the following transactions under imprest system. 
                Dec. 1                    Received from cashier                                                                   Rs. 300
                Dec. 3                    Paid Reshow charges                                                                     Rs. 32
                                                Paid for postage                                                                               Rs. 25
                Dec. 4                    Paid for stationery                                                                           Rs. 62
                                                Paid for cartage                                                                                                Rs. 20
                                                Paid for repairs for typewriter                                                    Rs. 70
                Dec. 5                    Paid for bus fare                                                                               Rs. 15
                                                Paid for postage                                                                               Rs. 15
39) Prepare a Bank Reconciliation statement as on 31st Dec, 2009 for the following particulars.
a)      Bank balance as per Pass Book Rs. 5,240
b)      Cheque issued but not presented for payment Rs. 4,050.
c)       Cheques deposited but not entered in the Pass book Rs. 1,400
d)      Bank debited Rs. 80 as bank charges.
e)      Rs. 5,000 wrongly credited by the bank in our pass book.
f)       Bank interest credited by the bank. Rs. 250
g)      Bill receivable Rs. 950 discounted but later dishonourd and no entry has been made in the cash book for this.

Unit – 4: TRIAL BALANCE AND RECTIFICATION OF ERRORS
Expected Marks: 12 to 15
1)      What is Suspense Account? Write its utility.
2)      What are various types of Errors? Explain them with examples.
3)      Define one sided and two sided errors. Mention the errors which are detected by Trial Balance.
4)      Is agreement of Trial Balance a proof of the accuracy of the books of accounts? If not, what are the errors which remain undetected in spite of its agreement?
5)      What is Trial Balance? Mention its objectives.
6)      Mention three advantages and disadvantages of Trial Balance.
7)      Mention the various methods of preparing trial balance.
8)      Pass Journal entries to rectify the following errors:
a.       The total of purchases book was sort by Rs. 100.
b.      The total of purchases book overcast by Rs. 100.
c.       A Sale of Rs. 350 to Saha was entered in the Sales Book as Rs. 530.
d.      A Sale of Rs. 350 to Saha was entered in the Sales Book as Rs. 250.
e.      A Sale of Rs. 350 to Saha was posted in the Sales account as Rs. 530.
f.        A Sale of Rs. 350 to Saha was posted in the Sales account as Rs. 250.
g.       A sale of Rs. 480 to Gopal was entered in the sales book as Rs. 840.
h.      Goods returned by Ram was entered in the day book but not posted to Ram’s Account Rs. 500.
i.         While carrying forward total of one page in Kalita’s Account, the Amount of Rs. 250 was written on the credit side instead of the debit side.
j.        the total of one page of the sales book was carried forward to the next pages as Rs. 2,785.
k.       Cash paid to D Rs. 100 was debited to C’s Account.
l.         Cash paid to D Rs. 100 was credited to C’s Account.
m.    Rs. 540 received from Sri P. Gogoi was posted to the debit of Sri. G. Gogoi Account.
n.      Rs. 540 received from Sri P. Gogoi was posted to the debit of his Account.
o.      Rs. 100 being purchase returns was posted to the debit of Purchase Account.
p.      Rs. 100 being purchase returns was entered in purchase book.
q.      Rs. 100 being sales returns was posted to the credit of Sales Account.
r.        Rs. 100 being purchase was posted to the debit of the sales account.
s.       Goods purchased from Gunin Kalita on credit Rs. 4,000 was recorded in the purchase book as 400.
t.        Goods amounting Rs. 5,000 have been sold on credit to Ram but no entry has been made in the books.
u.      Goods worth Rs. 300 taken by the proprietor for his personal use but not recorded in the books of accounts.
v.       Cash sales to Sankar of Rs. 209 was recorded as Rs. 909.
w.     Rs. 1,000 paid as rent to Rajat, the landlord was debited to Rajat account.
x.       A amount of Rs. 6,000 spent for the erection of machinery has been debited to wages account.
y.       Salary Paid to A Rs.5000 is debited to his personal account.
z.       Furniture purchased from Mr. A Rs.5000 was wrongly posted to the purchases account.
aa.   Rs. 850 received from Saurav was debited to Gaurav Account.
bb.  Goods of Rs. 750 withdrawn for personal use was not recorded in the books.
cc.    Rs. 380 being Purchase return was posted to the debit of Purchase Account.
9)      From the following particulars prepare a Trial Balance:
Stock
Machinery
Capital
Cash in hand
Cash at Bank
Sundry creditors
Wages
Purchases (Adjusted)
Closing Stock
Opening Stock
Interest to creditors
600
4,000
9,000
500
1,000
4,500
1,000
8,000
1,000
1,000
500
Bills receivable
Interest received
Sundry debtors
Rent
Sales
Commission allowed
General expenses
Salaries
Suspense Account (Dr)
Interest from debtors
Apprentice premium
2,900
300
4,400
450
16,000
250
800
500
5,400
250
250

Unit – 5: DEPRECIATION, PROVISION AND RESERVES
1)      What is depreciation? Mention important causes of providing depreciation.
2)      Write five need or objects of providing depreciation.
3)      Write any five differences between ‘Provision and Reserves’.
4)      Explain the basic factors (basis) on which the calculation of depreciation depends?
5)      State the different methods of providing depreciation. Explain briefly any one of them. Also distinguish between SLM and WDV method.
6)      Give three examples of provision.  
7)      Define various reserves: capital reserve, revenue reserve, general reserve, specific reserve and secret reserve.
8)      A firm purchases a plant for a sum of Rs. 10,000 on 1st January, 2002. Installation charges are Rs. 2,000. Plant is estimated to have a scrap value of Rs. 1,000 at the end of its useful life of five year. You are required to prepare the Plant Account for the first three years charging depreciation according to straight line methods.   
9)      On January, 1 1995 Machinery Account showed a balance of Rs. 10,000. On 1st July, 1996, a new machine costing Rs. 6,000 was purchased. On June 30, 1998 machinery other than the machine purchased on 1st July, 1996 was disposed off for Rs. 6,000. Prepare Machinery Account and depreciation for 4 years, the accounting year ends of 31st Dec, and depreciation is to be provided at 10% p.a. on written down value.
10)   On 1st January, 2004 a firm purchases machinery worth Rs. 1,00,000. On 1st July, 2006 the firm buys additional machinery worth Rs. 20,000 and spends Rs. 2000 on its erection. The accounts are closed on 31st December each year. The firm used to charge depreciation @ 10% per annum of Reducing Balance Method. Prepare Machinery Account for the period from 1.1.2004 to 31.12.2007.
11)   On 1st April, 1991 a company purchased a machinery for Rs. 10,000. It spent Rs. 2,000 on its erection. On 1st October 1991, it purchased another machinery for Rs. 4,000. On 1st April, 1993, the machinery purchased on 1st April 1991 was sold for Rs. 4,600. The company written off depreciation at 10% p.a. on diminishing balance method and straight line method. Accounts are closed on 31st March, each year. Prepare Machinery Account for three year ending 31st March, 1994. Show the Machinery Account for the period of above three year.
12)   Following are the extracts from the Trial Balance of a firm.
                Particulars                                                           Debit (Rs.)                                           Credit (Rs.)
Sundry Debtors                                                                                50,000                                                        ---
Provision for bad debts                                                     ----                                                         5,000
Provision for discount                                                        ----                                                         2,000
Bad debts                                                                            3,000
Discount                                                                              1,000
Additional Information:
a)      Additional Bad Debts Rs. 1,000
b)      Create a provision for bad debts @ 10% on debtors.
c)       Create a provision for discount @ 5% on debtors
Pass the necessary Journal Entries, prepare necessary ledger account and show its treatment in final accounts.
13)   Mr. Basu has given you the following details to prepare an Income Statement, showing Revenue Expenses and Net Profit for the year ending 31st March. 1997.
Sales                                                                                                      Rs. 5,000
Cost of goods sold                                                                           Rs. 3,000
Administrative Expenses                                                              Rs. 500
Selling and Distributors expenses paid                                   Rs. 200
Selling and Distributions expenses prep                aid                          Rs. 50
Administrative Expenses unpaid                                               Rs. 100
Loss by fire                                                                                         Rs. 150
Prepare the Statement

Unit – 6: ACCOUNTING FOR BILLS OF EXCHANGE TRANSACTIONS
Expected Marks: 10
1)      What is Promissory note? Mention its features. Name various parties of promissory note.
2)      Mention two Advantages of Bill of Exchange.
3)      Mention the names of the parties to a bills of exchange.
4)      What is bills of exchange? Mention four points of special features of Bill of Exchange.
5)      Write five points of distinction between a bill of exchange and a promissory note.
6)      What is accommodation bill? Mention its uses.
7)      What do you mean by ‘Due date’ of Bill of Exchange?
8)      Find the due date of a bill drawn on 12th May for period of three months, the 15th August being Monday.
9)      Define in two lines: Dishonor of bill, Renewal of bill, Retiring of bill under discount, Endorsement of bill, negotiation and noting charges.
10)   A bill of exchange is drawn on 9th December 2004 for 45 days. Ascertain the due date of bill.
11)   On 1-3-97 Sankar drew a bill for Rs. 12,000 at three months of Apurba, who accepted the bill and returned it to Sankar on 4-4-97. Sankar discounts the bill with his banker at 6% p.a. Just before the due date of the bill Apurba pays  Sankar Rs. 4,000 is cash and request him to draw a new bill for the balance for another two months along with an interest of Rs. 300. Sankar agrees and the new bill is drawn. Snakar take up the old bill for the bank on due date of the new bill it is dishonoured and Sankar pays nothing charges Rs. 20. Pass Journal entries is the books of Sankar and Prepare Sankar Account in the books of Apurba from the above transactions.
12)   2On 1-4-2001 Bijoy accepted a bill drawn by Ajoy for Rs. 10,000 at one month. As the due date of bill came nearer, Bijoy found that it would not be possible for him to meet the bill on maturity. So, on 30-4-2001 Bijoy approached Ajoy and requested him to receive Rs. 3,400 in cash including an interest of Rs. 400 and to draw on him new bill for the balance amount for a further period of three months after cancelling the old bill. Ajay agreed to the proposal and the new bill was drawn on 3-5-2001 and duly accepted. On the due date the Bill was met by Bijoy. Pass Journal entries in the books of Ajoy.
13)   On 1st April, 2003 Ajoy drew a three months bill for Rs. 10,000 on Bijoy, Who accepted the same and return it to Ajoy. On 4th May 2003 Ajoy discounted the bill with his banker at 6% p.a. On due date the bill was dishonoured by Bijoy and the bank incurred a nothing charge of Rs. 15. Pass Journal entries in the books of drawer Mr. Ajoy.
14)   On 1st January Amal drew a three months bill on Bimal for Rs. 3,000 and Bimal accepted it. One the due date the bill was dishonoured and Amal paid Rs. 30 as nothing charge. On 8th April Bimal paid to Amal Rs. 1,070 including Rs. 40 being interest and accepted another bill for the balance for further period of two months. Give Journal entries in the books of Amal.
15)   A drew a bill on B for Rs. 5,000. B accepted it and returned the same to A. On the due date the bill was dishonored. Pass Journal entries in the Books of A under following situation.
a)      If a keep the bill with him till maturity and pays Rs. 30 as noting charges.
b)      If a discounting the bill with his banker for Rs. 4,900 and the bank pays the noting charges of Rs. 30
c)       if a endorses the bill to C and C pay nothing charge Rs. 30.
16)   On 1st January 2006 Sita sold goods to Gita for Rs. 10,000 and on the same day drew upon her a bill at four months for the amount. Gita accepted the bill and sent it to Sita. On 10th January 2006 Sita discounted the bill with her bank Rs. 9,700. On due date the bill was dishonoured and the bank incurred noting charge of Rs. 100. Give journal entries in the books of Sita.
17)   Ananda drew a bill on Binanda for Rs. 8,000, Binanda accepted it and returned the same to Ananda. On due date the bill was dishonoured. Pass necessary Journal entries in the books of Ananda under the following situation.
a)      If Ananda keep the bill with him till maturity and pays Rs. 100 as noting charges.
b)      If Ananda discounting the bill with his banker for Rs. 7,800 and Bank pays nothing change Rs. 100.
c)       If Ananda endorsed the bill to Sunanda and Sunanda pays noting charge Rs. 100.
18)   On 1st April 2008, Suresh sold goods to Sanjoy for Rs. 12,000 and on the same day drew upon him a bill at four months for the same amount. Sanjoy accepted the bill and returned it to Suresh. On 1st June 2008 Sanjoy retired the bill under rebate at 9% p.a. Give Journal entries in the books of Suresh.
19)   Baruah owes choudhury Rs. 8,000. On 1st March 2005 Choudhury draws on Baruah a bill at 30 days due date for this amount. Baruah accepted the bill and returned to Choudhury. On 3rd March Choudhury discounted the bill with his banker for Rs. 7,700. On due date the bill is dishonoured and Choudhury pays Rs. 80 as noting charges. Pass Journal entries in the books of both parties.
Unit – 7: FINAL ACCOUNTS
Expected Marks: 18
1. Define in two lines:  Trading Account, Profit and loss account, Net Profit, Gross Profit, and Operating Profit.
2. Define Balance Sheet. Give two characteristics of Balance Sheet. Why it is necessary?
3. What is “Marshalling” of assets and liabilities?
4. What is grouping of balance sheet?
4. What do you mean by Adjustment entry in final account? Give two examples  of Adjustment entry.  
5. What are financial statements? Mention its users.
6. Define and distinguish between capital and revenue expenditure with examples.
7. What are various assets and liabilities? Explain them briefly.
8. Prepare trading, profit and loss account or Balance sheet. (5 marks)
9. Following is the Trial Balance of Sri Bijay Barua as on 31.3.98. You are required to prepare:
(i) Trading Account (ii) Profit & Loss Account for the year ended 31.3.98 (iii) Balance Sheet as at that date.
Debit
Rs.
Credit
Rs.
Stock on 1.4.97
Purchases
Carriage
Sales Returns
Wages & Salaries
Rent
Discount
Repairs
Sundry Expenses
Cash in hand
Furniture
Debtors
Drawings
Taxes & Insurance
Accrued Income
Life insurance premium
3,000
42,000
300
500
5,000
1,800
1,000
300
1,000
3,000
6,000
12,000
7,000
500
250
250
Sales
Purchase returns
Creditors
Capital
Bills payable
Sundry Receipts
Outstanding expenses
57,000
900
11,000
9,000
5,000
500
500

83,900

83,900
The following adjustments are to be made:
(i) Closing Stock was Rs. 8,000. (Market price is Rs. 10000)
(ii) Rent includes Rs. 300 paid in advance.
(iii) Furniture is to be depreciated by 10% p.a.
(iv) Bad debt Rs. 1000 and provision for bad debt @5% on debtors.
10. The following is the Trial Balance of Mr. Anil Kalita as on 31st March, 1999, you are required to prepare a Trading Account, a Profit & Loss Account for the year ended 31st March, 1999 and Balance Sheet as on that date.
Debit
Rs.
Credit
Rs.
Stock on 1.4.98
Purchases
Carriage
Sales Returns
Salaries & Wages (10 Months)
Rent
Discount
Repairs
Sundry expenses
Cash in hand
Furniture
Debtors
Drawings
3,000
37,000
300
500
5,000
1,800
1,000
300
1,000
3,000
6,000
12,000
7,000
Sales
Purchase Returns
Creditors
Capital
Bills Payable

52,000
900
11,000
9,000
5,000

77,900

77,900
The following adjustments are to be made:
(i) Closing stock was Rs. 8,000. (Market price is Rs. 7000)
(ii) Rent includes Rs. 300 paid in advance.
(iii) Furniture is to be depreciated by 10% p.a.
(iv) Provide manager’s commission @10% on net profit before charging such commission.
(v) Outstanding repairs Rs. 200
(vi) Interest on Capital @10%.
11. Following is the Trial Balance of Sri Arabinda Barua as on 31.3.2000. You are required to prepare Trading Account; Profit & Loss Account for the year ended 31.3.2000 ; A Balance Sheet as at the date.
Debit
Rs.
Credit
Rs.
Stock on 1.4.99
Purchases
Carriage
Sales Returns
Wages & Salaries
Rent
Discount
Repairs
Sundry Expenses
Cash in Hand
Furniture
Debtors
Drawings
Taxes & Insurance (expired on 30.6.00)
Demurrage
4,000
40,000
400
600
4,800
1,800
1,000
300
1000
3,000
8,000
15,000
6,000
1,500
600
Sales
Purchase Returns
Creditors
Capital
Bills Payable
Sundry Receipts
Sales tax payable
Cash credit

58,000
1,900
14,000
8,300
5,000
400
400
1,000

88,000

88,000
The following adjustments are to be made:
(i) Closing stock on 31.3.2000 Rs. 7,000. (Market price is Rs. 7000)
(ii) Rent includes Rs. 300 paid in advance
(iii) Wages outstanding Rs. 500
(iv) Furniture to be depreciated by 10% p.a.
(v) Unexpired insurance Rs.500
(vi) Provide manager’s commission @10% on net profit after charging such commission.
12. The following is the Trial balance of Sri P. Das as on 31st March, 2001.
(i) Trading Account for the year ended 31.3.2001.
(ii) Profit & Loss Account for the year ended 31.3.2001 and Balance Sheet as on  that date.
Particulars
Debit (Rs.)
Credit (Rs.)
Building
Machinery
Capital
Debtors
Stock (1.4.2000)
Purchase
Cash in Hand
Returns Inward
Sundry Creditors
Wages
Advertisement
Rent Paid
Bills Payable
Drawings
Electric Charges
Expenses on purchase
Cash at Bank
Salaries
Discount Allowed
Sales
Returns Outwards
10% Loan
Interest on loan
18,750
9,250

7,000
16,500
46.850
2,500
10,000

440
800
3,710

650
190
850
3,000
1,110
200


10,000
800


35,000





10,700



5,000






63,500
7,600
10,000
800

1,21,800
1,21,800
Adjustments :
                (i) Stock on 31.3.2001 Rs. 18,210.
                (ii) Wages Outstanding Rs. 500
                (iii) Depreciate Machinery @ 10% per annum
(iv) Bad debt Rs. 1000 and provision for bad debt @5% on debtors, provision for discount @10%.
(v) Write of 1/4 of advertisement
(vi) Provide interest for full year.
13. Following is the Trial Balance of Rahul a sole trader as on 31st March, 2004. You are required to prepare:
(i) Trading Account
(ii) Profit & Loss Account for the year ending 31.3.2004 and a Balance Sheet as on that date.
Debit
Rs.
Credit
Rs.
Buildings
Opening Stock
Furniture
Sundry Debtors
Plant & Machinery
Purchases
Bills Receivable
Octroi and Custom duty
Carriage outwards
Discount allowed
Bad debts
Return inwards
Salaries
Wages
Cash at Bank
1,60,000
64,000
50,000
80,000
1,50,000
2,80,000
45,000
2,400
2,100
1,400
1,900
3,600
48,000
46,000
20,500
Sundry creditors
Bills Payable
Returns outwards
Provision for Doubtful Debts
Capital A/c
Sales

60,000
25,000
3,000
2,500
3,84,400
4,80,000

9,54,900

9,54,900
Adjustments :
(i) Closing Stock Rs. 75,000
(ii) Outstanding salaries Rs. 6,000 and outstanding wages Rs. 5,000
(iii) Provision for bad Debts is to be maintained @ 5% on Sundry Debtors.
(iv) Depreciation is to be provided as follows : On Buildings @ 2½%, On Plant & Machinery @ 15%, On Furniture @ 20%.
14. Following is the Trial Balance of Sri Pradip Barua as on 31st March, 1997. You are required to prepare:
(a) Trading and (b) Profit & Loss Account for the year ended on 31st March, 1997. And
(c) Balance Sheet as at that date:
Debit
Rs.
Credit
Rs.
Purchases
Carriage Inwards
Carriage outward
Wages
Coal and gas
Salaries
Manufacturing expenses
Factory expenses
Office expenses
Discount
Sundry Debtors
Bad Debts
Lease of warehouse (10 years from 1.4.96)
Cash in hand and at Bank
60,000
2,000
1,000
5,000
1,000
6,000
500
500
500
500
24,000
1,000
10,000
2,500
Sales
Sales tax payable
Sundry Creditors
Sundry Receipts
Bad Debts recovered
Bank Interest received
Capital

70,000
7,000
20,000
500
500
100
16,400

1,14,500

1,14,500
Adjustments:
(i) Closing stock Rs. 15,000.
(ii) Goods worth Rs. 500 were taken for personal use of the proprietor.
(iii) Goods valued Rs. 3,000 were destroyed by fire (Insurance Rs.2000).
Unit – 8: Accounts from incomplete records
Expected Marks: 12
1)      What is single entry system? Mention its merits and demerits.
2)      What are various types of single entry system?
3)      Distinguish between single entry system and double entry system.
4)      Distinguish between statement of affairs and a balance sheet.
5)      How profit is determined under single entry system?
6)      Practical problems: Follow RG Question bank
Unit – 9 and 10: Computers in Accounting
Expected Marks: 10
1)      What is Accounting Information System (AIS)? Mention its characteristics and functions.
2)      Mention various components of computer.
3)      What is Computer? Mention its features.
4)      What are various advantages and disadvantages of computers?
5)      Mention five features of computerized accounting system.
6)      Mention various advantages and disadvantages of computerized accounting system. Or write a brief note on application of computers in accounting.
7)      What is database and database management system? Mention its components, advantages and disadvantages.
8)      Define in two lines: Hardware, software, SQL.

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