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Tuesday, April 17, 2018

AHSEC - Class 11 solved Question Paper: Accountancy' 2017


2017
(ACCOUNTANCY)
Full Marks: 100
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. (a) Fill in the blanks:                                   1x4=4
a)      “Recognize all losses, anticipate no GAIN.”
b)      Accounting is the LANGUAGE of business.
c)       Journal is a book of PRIME OR ORIGINAL entry.
d)      Under incomplete record system, profit is indicated if the opening capital is LESS than the closing capital.
(b) State whether the following statements are True or False:                                    1x2=2
a)      A Bank Reconciliation Statement is prepared by bank.                            FALSE, CUSTOMER
b)      Trial Balance is a proof only of the arithmetical accuracy of the accounts.       TRUE
(c) Rewrite the following sentences with appropriate alternatives:                           1x2=2
a)      Accounting software is an integral part of the Computerized Accounting System/Manual Accounting System.
b)      The full form of CPU is Central Processing Unit/Computer Programming Unit.
2. Write any two advantages of Accounting.                        2
Ans: The main advantages of accounting are mentioned below:               
a)      Accounting information is used by the management in taking various menageries at decision.
b)      It shows the financial position of business on a particular data.
3. Mention two distinctions between Purchase Book and Purchase Account.                       2

Ans: 1) Purchase book is a journal whereas purchase account is a ledger. 2) Purchase account is prepared with the help of purchase book but purchase book is not prepared with the help of purchase account.
4. Write two features of a Trial Balance.                                                 2
Ans: Features of trial balance: The following are the important features of a Trial balances:
a)      A Trial balance is prepared as on a specified date.
b)      It contains a list of all ledger account including cash account.
5. Mention two main causes of depreciation.                      2
Ans: a) Wear and Tear b) Major accident.
6. State two roles of computer in the field of accounting.                              2
Ans: Advantages of Computerized Accounting:
1.       Better Quality Work: The accounts prepared with the use of computers are usually uniform, neat, accurate, and more legible than manual job.
2.       Lower Operating Costs: Computer is a labour and time saving devise.
7. Explain three primary objectives of book-keeping.                                      1x3=3
Ans: Objectives of Book- keeping:  A businessman records the transaction in a set of book in order to ascertain the following objects:
a)      To have a permanent records of each transaction of the business.
b)      To show the financial effect on the entity of each transaction recorded.
c)       To know the financial position of the business on a particular data.
8. Write three distinctions between event and transaction.                         1x3=3
Ans: Difference between transaction and event
Transaction
Event
1. It is the consequence of exchange.
2. It can be internal as well as external.
3. It is an economic activity.
4. All transactions are events.
5. It can involve more than two party.
1. It is consequence of occasion.
2. It is always internal activity.
3. It is a historical activity.
4. All events are not transactions.
5. Only one party is involved.

9. Mr. Baruah kept his accounts in single-entry system. From the following particulars, ascertain his profit or loss:     3
Rs.
Capital at the beginning
Capital at the end
Drawing were Rs. 400 per month
Fresh Capital introduced during the year Rs. 2,000
20,600
19,000
Statement of Profit or Loss
Particulars
Amount
Amount
Capital at the end
Add: Drawings (400 x 12)

19,000
4,800

Less: (i) Opening Capital
(ii) Additional Capital

20,600
2,000
23,800

22,600
Profit for the year

1,200
Or
Mention three disadvantages or limitations of single-entry system.                         1x3=3
Ans: Demerits of Single Entry System:
a.      It is not a scientific method of accounting because it does not record the two-fold aspect of each transaction.
b.      No trial balance can be prepared under Single Entry System.
c.       The arithmetical accuracy of the books cannot be checked in the absence of trial balance.

10. Explain three features of Computerized Accounting System.                                                1x3=3
Ans: Ans: Features of Computerized Accounting System:
1)      It leads to quick preparation of accounts.
2)      It ensures control over accounting work and records.
3)      Errors and mistakes would be at minimum in computerized accounting.
11. State three purposes or needs of Database Management System.                    1x3=3
Ans: Purpose of DBMS
1.       To Reduce Data Redundancy
2.       Protection of information
3.       Greater Consistency
12. What is the Accounting Standard? Mention its three importance.                    2+3=5
Ans: Ans: ACCOUNTING STANDARDS: Accounting Standards are the policy documents or written statements issued, from time to time, by an apex expert accounting body in relation to various aspects of measurement, treatment and disclosure of accounting transactions for ensuring uniformity in accounting practices and reporting. These standards are prepared by Accounting Standard Board (ASB).
Importance or Purposes of Accounting Standards:
a.      To provide information to the users as to the basis on which the accounts have been prepared and the financial statements have been presented.
b.      To harmonize the diverse accounting policies & practices which are in use the preparation & presentation of financial statements.
c.       To make the financial statements more meaningful and comparable and to make people place more reliance on financial statements prepared in conformity with the accounting standards.
Or
Explain the accounting principle which relates to the accounting equation: Assets = Capital + Liabilities
Ans: Dual Aspect Concept: According to this basic concept of accounting, every transaction has a two-fold aspect, Viz., 1.giving certain benefits and 2. Receiving certain benefits. The basic principle of double entry system is that every debit has a corresponding and equal amount of credit. This is the underlying assumption of this concept. The accounting equation viz., Assets = Capital + Liabilities or Capital = Assets – Liabilities, will further clarify this concept, i.e., at any point of time the total assets of the business unit are equal to its total liabilities.
13. Explain five points of non-agreement of the bank balance as shown by cashbook with that of passbook.        1x5
Ans: The following are the causes of difference between balance as per cash book and pass book.
a)      Cheque issued but not yet presented for payment.
b)      Cheque deposited but not yet collected by the bank.
c)       Bank charges not entered in the cash book.
d)      Interest credited by bank but not debited in the cash book.
e)      Amount, directly deposited in the bank by debtor.
Or
Nripen had the following assets and liabilities as on 1st April, 2016. Pass the necessary opening entry: 1/2 x 10 = 5
Rs.
Cash
Bank Deposit
Stock
Furniture
Plant and Machinery
Land and Building
Sundry Debtors
Sundry Creditors
Bills Payable
2,000
5,000
5,000
10,000
25,000
50,000
15,000
35,000
7,000
Opening Journal Entry
Date
Particulars
L/F
Amt. (dr.)
Amt. (cr.)
1-4-16
Cash A/c                                                                 Dr.
Bank deposit A/c                                                  Dr.
Stock A/c                                                                Dr.
Furniture A/c                                                         Dr.
Plant & Machinery A/c                                        Dr.
Land & Building A/c                                             Dr.
Sundry Debtors A/c                                             Dr.
To Sundry Creditors A/c
To Bills Payable A/c
To Capital A/c 
(For opening journal entry)

2,000
5,000
5,000
10,000
25,000
50,000
15,000







35,000
7,000
70,000



1,12,000
1,12,000

14. Define a promissory note. State its three characteristics.                        5
Ans: Ans: Promissory note: A Promissory note is defined as an instrument in writing, containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument.
Features of Promissory note are:
a)      It must be in writing.
b)      It must contain an unconditional promise to pay.
c)       The sum payable must be certain.
d)      It must be signed by the maker.
e)      The maker must sign it.
Or
What is dishonour of bill? State three reasons of dishonour of a bill.                        2+3=5
Ans: When drawee fail to pay the payee on due date, this situation is called dishonour of a bills of exchange.
Reasons of dishonour of a bill:
a)      When the drawee has died.
b)      Where the drawee has become insolvent or an order of adjudication has been passed against him.
c)       When a drawee becomes a lunatic and the banker has got notice of his insanity.
d)      Where the drawee countermands payment.
15. On 1.4.2016, Tanmoy accepted a bill drawn by Nilam for Rs. 10,000 at one month. As the due date of the bill came nearer, Tanmoy found that it would not be possible for him to meet the bill on maturity. So on 30.4.2016, Tanmoy approached Nilam and requested him to receive Rs. 3,400 in cash including an interest of Rs. 400 and to draw on him a new bill for the balance amount for a further period of three months after cancellation the old bill. Nilam agreed to the proposal and new bill was drawn on 3.5.2016 and duly accepted. On the due date, the bill was met by Tanmoy. Pass Journal Entries in the books of Nilam.                        1x5=5
Journal Entries
In the books of Nilam
Date
Particulars
L/F
Amt. (dr.)
Amt. (cr.)
1-4-16
Bills Receivable A/c                                               Dr.
To Tonmoy
(Being the bills receivable received from Tonmoy)

10,000

10,000
30-4-16
Tonmoy A/c                                                            Dr.
To Bills Receivable A/c
(Being the bills receivable dishonoured on due date)

10,000

10,000
3-5-16
Cash A/c                                                                  Dr.
To Tonmoy A/c
(Being the part payment received)

3,000

3,000
3-5-16
Cash A/c                                                                  Dr.
To Interest a/c
(Being the Interest received)

400

400
3-5-16
Bills Receivable A/c                                               Dr.
To Tonmoy A/c
(Being the new bills receivable received)

7,000

7,000
6-8-16
Cash A/c                                                                   Dr.
To Bills Receivable A/c
(Being the new bill honoured on due date)

7,000

7,000

Or
How many types of cheque are there in the modern business world? Explain each.                         5
Ans: Various types of cheques:
1) Open cheque which is divided into two parts: Bearer and order cheque.
2) Crossed cheque
An open cheque is one which is presented and paid by the banker over the banks counter in a direct way. An open cheque may be two types:  Bearer cheque and Order cheque.
Bearer cheque is one which is payable to any payee who present it for payment over the counter of the bank.
Order cheque is a cheque which is payable to a certain person named in the cheque by the drawer or to the order of the payee.
2) Crossed cheques: A cheque is said to be crossed when two parallel transverse line with or without any words are drawn on the left hand corner of the cheque. The negotiability of a cheque doesn’t affect for crossing. Crossing of a cheque refers to the instruction to the banker relating to the payment of the cheque. A crossing is the direction to the paying banker that the cheque should be paid only to a banker.
16. From the following particulars, prepare a Trial Balance:                           5
Rs.
Stock
Machinery
Capital
Cash in Hand
Cash at Bank
Sundry Creditors
Wages
Purchases
Bills Receivable
Interest Received
Sundry Debtors
Rent
Sales
Commission Allowed
General Expenses
Salaries
Furniture
600
4,000
9,000
500
1,000
4,500
1,000
8,000
2,900
300
4,400
450
16,000
250
800
500
5,400
Trial Balance
Particulars
Amount
Particulars
Amount
Stock
Salaries
Machinery
Furniture
Cash in hand
Cash at bank
Wages
Purchases
Bills Receivable
Sundry Debtors
Rent
Commission allowed
General Expenses
600
500
4,000
5,400
500
1,000
1,000
8,000
2,900
4,400
450
250
800
Capital
Sundry Creditors
Interest received
Sales
9,000
4,500
300
16,000

29,800

29,800
Or
Explain five errors which are not disclosed by a Trial Balance.                       1x5=5
Ans: Errors not disclosed by the Trial Balance
i)        Error of principle
ii)       Error of omission
iii)     Errors of Commission
iv)     Recording wrong amount in the books of original entry
v)      Compensating errors
17. Prepare a Trading Account of M/s Sarma Sweets for the year ended 31st March, 2016 from the following information and additional information:                         5
Particulars
Dr. (Rs.)
Cr. (Rs.)
Purchases
Sales
Return Outward
Return Inward
Wages
Carriage Inward
Duty and Clearing Charges
Electric and Water charges
Factory Rent
Stock on 1.4.2015
1,50,000


30,000
25,000
3,000
500
500
3,500
38,000

2,70,000
20,000
Additional Information:
a)      Stock as on 31.3.2016 was valued at cost price Rs. 55,000 and market price Rs. 59,000.
b)      Wages outstanding Rs. 1,000.
c)       Factory rent paid in advance to the extent of Rs. 300.
Trading account
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase                                   1,50,000
Less: Outward                                   20,000
To Wages                                           25,000
Add: Outstanding                               1,000
To Carriage Inward
To Duty & Charge
To Electric
Factory Rent                                      3,500
Less: Adv.                                               300
To G/P
38,000

1,30,000

26,000
3,000
500
500

3,200
93,800
By Sales                                                    2,70,000
Less: Sales Return                                      30,000
By C/S

2,40,000
55,000

2,95,000

2,95,000

18. Give five distinctions between the following:                              1x5=5
Balance Sheet and Trial Balance
Or
Capital Expenditure and Revenue Expenditure
Ans: The following are the points of distinction between Capital Expenditure and Revenue Expenditure :
Basis
Capital Expenditure
Revenue Expenditure
1. Benefits
More than one accounting period.
Benefits enjoyed within a particular accounting period.
2. Nature
Non-recurring (Irregular)
Recurring (Regular)
3. Conversion
All Capital Expenditures eventually become Revenue Expenditures like depreciation
Revenue Expenditures are not generally capital expenditures.
4. Matching
These are not matched with Capital Receipts.
These are matched with Revenue Receipts.
19. Prepare a Triple-column Cashbook from the following particulars:                     8
2016
Rs.
Dec. 1
Dec. 2
Dec. 3
Dec. 4

Dec. 10
Dec. 12
Dec. 20

Dec. 25
Dec. 28
Dec. 30
Started business with cash
Deposited cash into bank
Bought goods by cheque
Received cash from Raja
Allowed him discount
Sold goods for cash
Paid into bank
Paid to Hari by cheque
Discount received
Paid rent by cheque
Drew from bank for office use
Paid wages in cash
25,000
10,000
1,150
500
25
1,500
300
545
5
500
200
400
Triple Column Cash Book
Date
Particulars

Cash
Bank
Discount
Date
Particulars

Cash
Bank
Discount
Dec. 1
To Capital A/C
To Cash A/c
To Mr. Raja
To Sales A/c
To Cash A/c
To Bank A/c




(c)



(c)
25,000

500
1,500

200


10,000


3,000



25

By Bank A/c
By Purchases
By Bank A/c
By Hari A/c
By Rent A/c
By Cash A/c
By Wages A/c
By balance c/d
(c)

(c)


(c)
10,000

300



400
16,500

1,150

545
500
200

10,605



5



27,200
13,000




27,200
13,000


To Balance c/d

16,500
10,605







Or
What is cashbook? State its five advantages.                                       3+5=8
Ans: Ans: Cash Book: Cash Book is a sub-division of Journal recording transactions pertaining to cash receipts and payments. Firstly, all cash transactions are recorded in the Cash Book wherefrom they are posted subsequently to the respective ledger accounts. The Cash Book is maintained in the form of a ledger with the required explanation called as narration and hence, it plays a dual role of a journal as well as ledger.
All cash receipts are recorded on the debit side and all cash payments are recorded on the credit side. All cash transactions are recorded chronologically in the Cash Book. The Cash Book will always show a debit balance since payments cannot exceed the receipts at any time.
 The advantages of cash book are as follows:
1.       It prevents duplication of work in entering cash transaction in journal and then posting the same into the ledger.
2.       Cash and Bank transactions can be recorded in cash book.
3.       It is possible to find out daily cash and bank balance.
4.       Cash book also serves the purpose of book of original entry as well as ledger.
5.       Frauds involving cash are likely to be minimized and where committed are likely to be detected at an early stage.
20. On 1st April, 2013, a company purchased a machine for Rs. 10,000. It spends Rs. 2,000 on its erection. On 1st October, 2013, it purchased another machine for Rs. 4,000. On 1st April, 2015, the machine purchased on 1st April, 2013 was sold for Rs. 4,600. The company writes off depreciation at 10% p.a. on diminishing balance method. Accounts are closed on 31st March each year.  Prepare Machinery A/c for the three years ending on 31st March, 2016.                            8
Machinery A/c
Date
Particulars
Amount
Date
Particulars
Amount
1-4-13
1-10-13
To Bank A/c (10,000 + 2,000)
To Bank A/c
12,000
4,000
31-3-14


31-3-14
By Depreciation A/c
1st (12,000 x 10% x 1)
2nd (400 x 10% x 6/12)
By Balance c/d

1,200
200
14,600


16,000


16,000
1-4-14
To Balance b/d

14,600
31-3-15

By Depreciation A/c 
(14,600 x 10%)
By Balance c/d

1,460
13,140


14,600


14,600
1-4-15
To Balance b/d
13,140

1-4-15
1-4-15
31-3-18

31-3-18
By Bank A/c
By P/L A/c
By Depreciation A/c
(3,420 x 10%)
By Balance c/d
4,600
5,120

342
3,078


13,140


13,140

Or
The following figures appear in the books of Sri A. Sarma in 2015:
2015
Rs.
Jan. 1
Dec. 31
Dec. 31
Provision for Doubtful Debts
Bad Debts
Sundry Debtors
3,500
1,500
50,600
Additional Information:
a)      Additional bad debts Rs. 600
b)      Keep the provision for doubtful debts @ 5% on debtors.
Show the relevant accounts and show how bad debts and provision for doubtful debts will be reflected in the Profit and Loss A/c and Balance Sheet as at 31st December.                                               8
Bad debts A/c
Date
Particulars
Amount
Date
Particulars
Amount
31-12-15
31-12-15
To Balance b/d
To Sundry Debtors A/c
1,500
600
31-12-15
By Provision for b/d A/c
2,100


2,100


2,100
Provision for doubtful debts A/c
Date
Particulars
Amount
Date
Particulars
Amount
31-12-15
31-12-15
To Bad debts A/c
To Balance c/d
2,100
2,500
1-1-15
31-12-15
By Balance b/d
By P/L A/c
3,500
1,100


4,600


4,600
Profit & Loss A/c

Rs.

Rs.
To Bad debts
Add: Further Bad debts
Add: Provision for bad debts (New)
1,500
600
2,500



Less: Provision for bad debts (Old)
4,600
3,500


Debited to P/L A/c
1,100


Balance Sheet
Liabilities
Rs.
Assets
Rs.


Sundry Debtors                           50,600
Less: Further bad debts                  600
50,000
Less: Provision for b/d @ 5%      2,500




47,500

21. Mr. Jadu started business on 1st April, 2015 with Rs. 25,000 as his capital. Immediately he purchased furniture worth Rs. 6,000. During the year, he took loan from his wife Rs. 15,000 and he himself introduced additional capital of Rs. 9,500. He withdrew Rs. 900 at the end of each month for household expenses. On 31st March, 2016, his position was as follows:
Rs.
Cash in Hand
Cash at Bank
Sundry Debtors
Stock-in-trade
Bills Receivable
Creditors
Rent due
600
7,800
14,400
20,400
4,800
1,500
450
Provide depreciation @ 10% on furniture. Ascertain the profit or loss made during 2015 – 16.      8
Statement of Affairs
As on 31-03-2016
Liabilities
Amount
Assets
Amount
Sundry Creditors
Rent due
Loan from wife
Closing Capital
1,500
450
15,000
36,450
Cash in hand
Cash at bank
Sundry Debtors
Stock-in-Trade
Bills receivable
Furniture                                       6,000
Less: Depreciation @ 10%            600
600
7,800
14,400
20,400
4,800

5,400

53,400

53,400

Statement of Profit or Loss
For the year ended on 31-03-2016
Particulars
Amount
Amount
Capital at the end
Add: Drawings (900x12)

36,450
10,800

Less: (i) Opening Capital
(ii) Additional Capital

25,000
9,500
47,250

34,500
Profit for the year

12,750
Or
What do you understand by single-entry system? Mention six points of difference between single-entry system and double-entry system.
Ans: Single entry system: It is defined as the method of accounting which does not follow the principle of double entry system .Under this method only one account is given debit or credit for each transaction. Under this method, only personal accounts are maintained and impersonal account may not be maintained in the books.
Ans: Difference between Double Entry System and Single Entry System
S.N.
Double Entry System
Single Entry System
1.
Under this system, both aspect of each transaction are record.
Under this system, both aspect of each transaction are not recorded.
2.
In this system, Personal, Real and Nominal accounts are kept fully.
In this system, only Personal Accounts are kept and Real and Nominal Accounts are ignored.
3.
In this system, Cash book, General ledger, Debtors’ Ledger and Creditors’ Ledger are maintained.
In this system, only Debtors’ Ledger and creditors’ Ledger are kept. Cash book is also kept but personal transaction gets mixed up with business transaction.
4.
Under this system, arithmetical accuracy can be checked by preparing Trial Balance at any moment of time.
Under this system, arithmetical accuracy cannot be checked because to Trial Balance can be prepared.
5.
In this system, Trading, Profit and Loss Accounts and balance sheet can be prepared.
In this system, Trading, Profit And Loss Accounts and Balance sheet cannot be prepared.
6.
This system is scientific and follows certain rules.
This system is unscientific and does not follow any concrete rules.

22. From the following Trial balance of M/s Sarma as on 31st March, 2016, Prepare –                         4+4=8
a)      A profit and loss account for the year ended 31st March, 2016;
b)      A balance sheet as on that date.
Trial Balance
Debit
Rs.
Credit
Rs.
Building
Salaries
Rent
Furniture
Bad Debt
Advertisement
Drawings
Sundry Debtors
Bills Receivable
Closing stock
18,000
12,400
3,500
4,950
600
2,000
3,000
15,000
6,000
9,750
Provision for Bad Debt
Interest Received
Creditors
Outstanding Wages
Capital
Bills Payable
Trading A/c (Gross Profit)
400
400
4,200
900
45,000
2,000
22,300
75,200
75,200
Adjustment:
a)      Salaries Outstanding Rs. 2,000
b)      Furniture is to be depreciated by Rs. 950
c)       Make provision for bad debts Rs. 500
Profit and Loss A/c
Particulars
Amount
Particulars
Amount
To Salaries                                12,400
Add: O/S                                     2,000
To Rent
To Depreciation
To Bad debts
To Advertisement
To Provision for Bd.
To Net Profit

14,400
3,500
950
600
2,000
500
1,150
By G/P
By Provision for bad debts
By I. received
22,300
400
400

23,100

23,100
Balance Sheet
Liabilities
Amount
Assets
Amount
Capital                                   45,000
Less: Drawing                         3,000
42,000
Less: Net Profit                     1,150

Creditors
Outstanding Salaries
Outstanding Wages
Bills Payable



43,150

4,200
2,000
900
2,000
Building
Furniture                                               4,950
Less: Depreciation                                  950

Sundry Debtors                                  15,000
                                                                   500

Bills Receivable
C/S
18,000

4,000


14,500

6,000
9,750

52,250

52,250