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KUWAIT SAHODAYA EXAMINATION2018-2019

ACCOUNTANCY (055)

SET 1

Date: 10/02/19

Class:XI

Time:3hrs. Max.Marks:90

General instructions

i. This question paper contains Two parts A & B.

ii. Both the parts are compulsory for all.

iii. All parts of questions should be attempted at one place.

iv. Marks are given at the end of each question.

PART-A

1.

Give the area of interest for the creditors while using accounting information.

1

2. Under which principle the caliber or quality of the management is not disclosed in the

balance sheet?

1

3. Calculate the due date of a bill of exchange written on July 13, 2014 for 30 days. 1

4. What is the effect of one-sided errors on Trial Balance? 1

5. Write down any three differences between Cash Basis and Accrual Basis of Accounting.

3

6. Define the following basic accounting terms with example:

(i) Drawings.

(ii) Liability.

(iii) Business Transactions.

3

7. Explain any three qualitative characteristics of Accounting Information.

OR

Define the term Accounting. Explain in brief any two objectives of Accounting.

3

8. What is meant by Accounting Standards? Explain any three objectives of Accounting

Standards.

OR

State the meaning of GST. Briefly explain any three characteristics of GST.

4

9. Pass Journal Entries in the books of Sh. Gopi Chand of Kerala assuming CGST @ 9% and 4

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SGST @ 9%:

2018

APRIL

Transactions

1 Purchased goods for ₹3,00,000 from Karunakaran of Chennai (Tamilnadu)

3 Purchased goods for ₹50,000 from Ganeshan of Ernakulam

(Kerala)

10 Sold goods costing ₹80,000 to Naidu of Hyderabad (Telangana) at a profit

of 25% on cost less trade discount 10%.

20 Purchased a computer for office use for ₹30,000 and payment made by

cheque.

10. Chhabra & Sons find that overdraft shown by their Cash book on 31st March 2013 is ₹30,500

but the pass book shows a difference due to the following reasons.

a) A cheque for ₹6,000 drawn in favour of Shyam has not been presented for payment.

b) A post-dated cheque for ₹1,000 has been debited in the Bank column of the cash

book but it could not have been presented in Bank.

c) Cheque totaling ₹12,000 deposited with the Bank have not yet been collected.

d) A bill for ₹5,000 was retired by the Bank under a rebate of ₹120 but the full amount

of the bill was credited in the Bank column of the Cash Book.

Prepare a Bank Reconciliation statement and find out the balance as per Pass Book.

4

11. Record the following transactions of Harry Marketing, Amritsar into proper subsidiary

books, close the subsidiary books on 31st January.

2018

January

Transactions

1 Purchased Readymade clothes from Mahendra of Delhi of the list price of

₹40,000 less 10% Trade Discount plus IGST @ 12%.

5 Sold Readymade clothes to Mohan,Amritsar for ₹10,000 less Trade

Discount 10%, charged CGST and SGST @ 6% each.

7 Shyam Singh, Delhi sold Readymade (Men) Clothes to us for ₹30,000 plus

IGST @ 12%.

8 Sold Readymade Clothes (Men) to Harish, Amritsar for ₹12,000. Charged

CGST and SGST @ 6% each.

4

12.

Bhuvan owed to Adarsh ₹90,000 on 1st January, 2018. On the same date, Adarsh drew upon

Bhuvan a bill for the amount at 3 months and Bhuvan returned the bill duly accepted. Adarsh

got the bill discounted at his bank @ 12% p.a. Before the bill was due for payment, Bhuvan

told Adarsh that he would not be able to pay the full amount and requested Adarsh to accept

₹30,000 immediately and draw upon him another bill for the remaining amount for 3 months

together with interest @ 15% p.a. Adarsh agreed. The second bill was duly met. Give the

Journal entries in the books of both Adarsh and Bhuvan.

6

13. Prepare Cash Book with Bank column of Rohit, Lucknow from the following transactions: 6

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2018

April

Transactions Amount (₹)

1 Cash in Hand

Cash at Bank (Overdraft)

2,20,000

60,000

3 Deposited in Bank 80,000

4 Goods purchased for ₹34,000 plus CGST and SGST @ 6%

each and issued a cheque for the same.

7 Cash Purchases plus CGST and SGST @ 6% each. 16,000

8 Paid commission by cheque plus CGST and SGST @ 6% each. 12,000

9 Withdrew from Bank for private use 2,500

16 Interest collected by Bank 14,000

20 Cash Sales plus CGST and SGST @ 6% each. 42,000

22 Salaries paid 40,000

22 Goods sold to Sona & Co, Kolkata plus IGST @ 12% 36,000

14. Pass the necessary journal entries to rectify the following errors:

(i) A credit purchase of ₹450 from Raja was recorded as ₹540.

(ii) A Bills Receivable of ₹500 received from Raja was entered in Bills Payable Book.

(iii) A credit sale of old furniture to sheetal for ₹560 was entered in the sales book

for ₹650.

(iv) A cash purchase of ₹780 from Mukesh was recorded as ₹870.

(v) ₹600 paid to pooja were recorded as ₹60 and ₹60 paid to Pankaj were recorded

as ₹600.

(vi) A payment of ₹500 as repairs has been debited to Repairs A/c twice.

OR

Rectify the following errors assuming that suspense account was opened. Ascertain the

difference in Trial balance.

(i) Depreciation provided on machinery ₹4,000 was not posted to Depreciation

Account.

(ii) Bad debts written off ₹5,000 were not posted to Debtors account.

(iii) Discount allowed to debtor Rs.100 on receiving cash from him was not posted to

discount allowed account.

(iv) Goods withdrawn by proprietor for personal use ₹800 were not posted to

drawings account.

(v) Bill receivable for ₹2,000 received from debtor was not posted to Bills

Receivable account.

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15. On 1st October, 2010, X Ltd. purchased a machinery for ₹6,00,000. On 31stMay

2012, a part of the machinery purchased on 1st October, 2010 for ₹80,000 was sold for

₹30,000. On the same date a fresh machinery was purchased for ₹1,50,000. Depreciation is

provided @ 20% per annum on the written down value method and the books are closed on

31st March each year. You are required to prepare (a) Machinery Account, (b) Provision for

Depreciation Account, and (c) Machinery Disposal Account.

OR

Bansal Construction Ltd. purchased a Machine on October 01, 2006 for ₹6,55,000. On March

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01, 2007, it purchased another Machine for ₹2,40,000. On July 01, 2008 it sold off the first

Machine purchased in 2006, for ₹ 5,24,000. Accumulated Depreciation Account is maintained

charging depreciation @ 10% per annum on straight line method. Accounts are closed each

year on March 31st. PrepareMachinery Account and Accumulated Depreciation Account for

the year ended on March 31, 2007, 2008 and 2009. Also prepare the Machine Disposal

Account.

PART- B

16. When does closing stock appear inside the Trial Balance?

1

17. State any two limitations of Incomplete records.

1

18. Mohan who keeps his books on Single Entry System, has his capital on 31st March, 2016

₹20,000 and on 1st April, 2015 was ₹16,700. He further informs that during the year, he

withdrew for his personal expenses ₹9,400. He also sold his personal investment of ₹10,000

@ 5% premium and brought that money into the business.

Prepare a Statement of Profit or Loss.

3

19. Computerised accounting system is the best form of accounting system. Do you agree?

Comment.

3

20. What types of Software are available for Accounting purpose?

3

21. Briefly explain any four differences between Computerised Accounting and Manual

Accounting.

4

22. (i) Calculate Cost of Goods Sold and Gross profit when:

Total purchases during the year are ₹8,00,000

Returns outward ₹20,000

Direct Expenses ₹60,000

2/3 of the goods are sold for ₹6,10,000.

(ii) Calculate Net Sales and Gross Profit from the following information:

Cost of Goods sold ₹1,00,000.

Gross profit 20% on sales.

6

23. From the following information calculate Total purchases:

Particulars Amount

Creditors Jan.01, 2013 30,000

Creditors Dec.31, 2013 20,000

Opening balance of Bills Payable 25,000

Closing balance of Bills Payable 35,000

Cash paid to creditors 1,51,000

Bills discharged 44,500

Cash purchases 1,29,000

Return Outwards 6,000

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24. From the following balances extracted from the books of Raga Ltd. prepare a Trading and 8

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Profit and Loss account for the year ended March 31st, 2014 and a Balance Sheet as on that

date.

Particulars Amount (₹) Particulars Amount (₹)

Drawings 20,000 Sales 2,20,000

Land and Buildings 12,000 Capital 1,10,110

Plant and Machinery 40,000 Discount 1,260

Carriage Inwards 100 Apprentice Premium 5,230

Wages 500 Bills Payable 1,28,870

Salary 2,000 Purchase Return 10,000

Sales Return 200

Bank Charges 200

Coal, Gas and Water 1,200

Purchases 1,50,000

Trade Expenses 3,800

Stock (Opening) 76,800

Cash at Bank 50,000

Rates and Taxes 870

Bills Receivable 24,500

Sundry Debtors 54,300

Cash in Hand 30,000

4,66,470 4,66,470

The additional information is as under:

(i) Closing Stock was valued at the end of the year ₹20,000.

(ii) Depreciation on plant and machinery charged at 5% and land and building at 10%.

(iii) Discount on debtors at 3%.

(iv) Make a provision at 5% on debtors for bad debts.

(v) Salary outstanding was ₹100 and wages prepaid was ₹40.

(vi) The manager is entitled a commission of 5% on net profit after charging such

commission.

OR

Prepare Trading and Profit and Loss Account and Balance Sheet from the following

particulars as at 31st March, 2014:

Trial Balance

Particulars Debit (₹) Credit (₹)

Capital/Drawings 1,400 10,000

Cash-in-hand 1,500

Bank Overdraft @ 5% 2,000

Purchases and Sales 12,000 15,000

Returns 1,000 2,000

Salary 2,500

Taxes and Insurance 500

Provision for Doubtful Debts 1,000

Bad debts 500

Sundry Debtors and Creditors 5,000 1,850

Commission 500

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Investments 4,000

Stock on 1st April, 2013 3,000

Furniture 600

Bills Receivable & Bills payable 3,000 2,500

Collected Sales Tax 150

35,000 35,000

Further, you are required to take into consideration the following information:

(i) Salary ₹100 and taxes ₹400 are outstanding but insurance ₹50 prepaid.

(ii) Commission amounting to ₹100 has been received in advance for work to be done

next year.

(iii) Interest accrued on Investments ₹210.

(iv) Provision for Doubtful Debts is to be maintained at 20%.

(v) Depreciation on furniture is to be charged at 10% p.a.

(vi) Stock on 31st March, 2014 was valued at ₹4,500.

(vii) A fire occurred on 25th March, 2014 in the godown and stock of the value of

₹1,000 was destroyed. It was fully insured and the insurance company admitted

the claim in full.

KUWAIT SAHODAYA EXAMINATION 2018-2019

ACCOUNTANCY (055)

Class:XI

Time:3hrs. MARKING SCHEMEMax.Marks:90

Set1/2/3 PART A

1/3/4 Creditors are interested in knowing the ability of business to pay its debts as they become due.

1

2/4/2 Money Measurement Concept.

1

3/1/3 14thAugust, 2014.

1

4/2/1 Trial balance will not agree.

1

5/6/7 Basis Cash Basis Accrual Basis

Legal Position It is not recognized under the

Companies Act.

It is recognized under the Companies

Act.

Capital and Revenue It does not distinguish between

Capital and Revenue items.

It distinguishes between Capital and

Revenue items.

Recognition of

Incomes and expenses.

It is based on collection of cash

and payment of cash.

It is based on accrual of incomes and

expenses irrespective of the fact

whether cash is received or paid.

3

6/7/5 (i) Drawings : Drawings may be defined as cash or goods withdrawn by the owner from the

business for his personal use. For example, Gaurav, a shopkeeper dealing in stationery items,

takes away stationery items of ₹500 for his daughter. Drawings reduce the capital of the owners.

(ii) Liability : Liability means an obligation or debt that an enterprise has to pay within a specified

period. For example, if Mohit purchases goods on credit from Rohit, Mohit has a liability payable

to Rohit.

(iii) Business transactions : Business transactions are the events which involve movement of

monetary value from one source to another i.e., which brings change in the financial position of a

business enterprise. For example, when goods are purchased for cash, there is a movement of

goods from seller to buyer and movement of cash from buyer to seller.

3

7/5/6 The following are the qualitative characteristics of accounting information :

(i) Reliability : It means that the user can rely on the accounting information. All accounting

information is verifiable and can be verified from the source document (voucher), viz. cash

memos, bills, etc. Hence, the available information should be free from any errors and unbiased.

(ii) Relevance : It means that essential and appropriate information should be easily and timely

available and any irrelevant information should be avoided. The users of accounting

information need relevant information for decision-making, planning and predicting the

future conditions.

(iii) Understandability : Accounting information should be presented in such a way that every

user is able to interpret the information without any difficulty in a meaningful and

appropriate manner.

3

(iv) Comparability : It is the most important quality of accounting information. Comparability

means accounting information of a current year can be compared with that of the previous

years. Comparability enables intra-firm and inter-firm comparison. This assists in assessing

the outcomes of various policies and programmes adopted in different time horizons by the

same or different businesses. Further, it helps to ascertain the growth and progress of the

business over time and in comparison to other businesses.

OR

Accounting is a systematic process of identifying, recording, measuring, classifying, verifying,

summarizing, interpreting and communicating financial information. It reveals profit or loss for a

period, and the value of assets, liabilities and owner's equity.

The objectives of accounting are follows:

(i) To keep systematic records.

(ii) To protect business properties.

(iii) To ascertain the operational profit or loss.

(iv) To ascertain the financial position of business.

8/10/11 Accounting Standards are the guidelines for the preparation and presentation of Financial

Statements. The objective of setting Accounting Standards is to bring uniformity in accounting

practices and to ensure transparency, consistency and comparability.

Objectives of Accounting Standards are:

(i) Minimise the diverse accounting policies and practices with the aim to eliminate them to

the extent possible.

(ii) Promote better understanding of financial statements.

(iii) Understand significant Accounting Policies adopted and applied. (iv) Enhancing reliability of financial statements.

(v) Facilitating meaningful comparison of financial statements of two or more entities.

OR

Goods and Service Tax is a comprehensive indirect tax levied at the prescribed rate on every

supply, i.e, sale of goods and services except on petroleum and alcohol for human consumption.

Supply of goods means sale of goods whereas supply of services means rendering of services.

Characteristics of Goods and Service Tax: (explain any three points)

(i) GST is a Comprehensive Indirect tax.

(ii) GST is a value added tax.

(iii) GST paid is not cost.

(iv) Uniform GST rate on goods and services across all states.

4

9/11/8

JOURNAL OF SH.GOPI CHAND

Date Particulars L.F Amount

(Dr.)

Amount

(Cr.)

2018

April1

Purchase a/c Dr.

Input IGST a/c Dr.

To Karunakaran a/c

(Being purchased goods from outside the

state)

3,00,000

54,000

3,54,000

April

3

Purchase A/c Dr.

Input CGSTa/c Dr.

Input SGST a/c Dr.

To Ganeshan A/c

(Being Purchased goods within the state)

50,000

4,500

4,500

59,000

April

10

Naidu a/c Dr.

To Sales a/c

To Output IGST a/c

(Being Sale of goods outside the state)

1,06,200

90,000

16,200

April

20

Computer a/c Dr.

Input CGST a/c Dr.

Input SGST a/c Dr.

To Bank a/c

(Being Computer purchased)

30,000

2,700

2,700

35,400

10/8/9

4

11/9/10

4

Jan.31 21,0

00

1,260 1,26

0

23,52

0

12/13/14

6

13/12/12 Dr. Double Column Cash Book Cr.

Date Particulars L

.

F

Cash

(₹)

Bank

(₹)

Date Particulars L

.

F

Cash

(₹)

Bank

(₹)

2018

April 1

To balance

b/d

2,20,000 2018

April 1

By balance

b/d

60,000

April 3 To cash a/c C 80,000 April 3 By Bank a/c C 80,000

April

16

To Interest

a/c

14,000 April 4 By

Purchases

a/c

34,000

April

20

To sales a/c 42,000 April 4 By Input

CGST a/c

2040

April

20

To Output

CGST a/c

2520 April 4 By Input

SGST a/c

2,040

April

20

To Output

SGST a/c

2520 April 7 By

purchases

16,000

6

a/c

April 7 By Input

CGST a/c

960

April 7 By Input

SGST a/c

960

April 8 By

Commission

a/c

12,000

April 8 By Input

CGST a/c

720

April 8 By Input

SGST a/c

720

April 9 By Drawings 2,500

April

22

By Salaries

a/c

40,000

April

30

To balance

c/d

20,020 April

30

By balance

c/d

1,29,120

2,67,040 1,14,020 2,67,040 1,14,020

2018

May 1

To balance

b/d

1,29,120 2018

May 1

By balance

b/d

20,020

14/14/13 Rectifying Entries

Date Particulars L.F Amount

(Dr.)

Amount

(Cr.)

(i) Raja a/c Dr.

To Purchases a/c

(Being credit purchase of ₹450 was

recorded as ₹540, now rectified)

90

90

(ii) Bills Receivable a/c Dr.

Bills Payable a/c Dr.

To Rajaa/c

(Being bills receivable of ₹500 received

from Raja wrongly entered in bills payable

book, now rectified)

500

500

1,000

(iii) Sales a/c Dr.

To Suspense a/c

To Furniture a/c

(Being credit sale of furniture to sheetal

for ₹560 wrongly entered in the sales book

as ₹650, now rectified)

650

90

560

(iv) Suspense a/c Dr.

To Purchase a/c

(being cash purchase of ₹780 from Mukesh

wrongly recorded as ₹870, now rectified)

90

90

(v) Pooja a/c Dr.

To Pankaj a/c.

(Being ₹600 paid to pooja wrongly recorded

as ₹60 and ₹60 paid to Pankaj wrongly

recorded as ₹600, now rectified)

540

540

(vi) Suspense a/c Dr.

To Repair a/c.

500

500

6

(Being repairs account rectified)

OR

JOURNAL

15/15/15

8

OR

PART B

16/17/16 When Closing stock is adjusted against purchases, it is shown inside the Trial Balance.

1

17/16/17 (i) True profit or loss cannot be ascertained.

(ii) Balance Sheet does not disclose true financial position.

1

18/19/2

0

3

19/18/19 Advantages of Computerised Accounting System: (any three points with explanation)

a) High Speed and High Reliability.

b) Accuracy.

c) Updation of Information.

d) Efficiency.

3

20/20/1

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Types of Softwares:(point with explanation.)

(i) Readymade software.

(ii) Customised software.

(iii) Tailor-made software.

3

21/21/21 The differences between Computerized accounting and Manual accounting are as follows:

(i) Manual accounting consists of journalizing and then posting of the same to ledgers whereas in

computerized accounting system the journal entries are passed only and posting happens

automatically

(ii) Computerized accounting is subject to lesser possibility of errors as compared to manual

errors (iii)Trial balance is required to be prepared in manual accounting to determine the arithmetical

accuracy of the books of accounts whereas in computerized accounting the trial balance is automatically prepared.

(iv) Final accounts can be immediately prepared in computerized accounting at any point of time whereas in manual accounting final accounts can be prepared only after the period ends, which requires time as well.

4

22/23/2

2

(i) Cost of Goods sold = Total purchases – Return Outwards + Direct Expenses.

= ₹8,00,000 - ₹20,000 +₹60,000

=₹8,40,000

2/3 of the goods are sold for ₹6,10,000.

Cost of 2/3 of the goods sold = ₹8,40,000 *2/3=₹5,60,000

Gross Profit = Sales – Cost of goods sold

=₹6,10,000-₹5,60,000 = ₹50,000

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(ii) Cost of goods sold is ₹1,00,000

Sales = 1,00,000/80 *100 = ₹1,25,000

Gross profit on sales= 1,25,000*20% = ₹25,000

23/22/2

3

6

24/24/2

4

8

OR