PT 3 EXAMINATION

DECEMBER
2024
ACCOUNTANCY

NAME: MAX MARKS: 80

GRADE: XI A TIME: 3 hrs
DATE: 10/12/24 TEACHER SIGNATURE:
10110/12/20
24

GENERAL INSTRUCTIONS:

1. This question paper contains 35 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.
3. Part – A (Financial Accounting I) (56 marks) Part – B (Financial Accounting II) (24 marks) is
compulsory for all the candidates.
4. Question Nos.1 to 16 and 27 to 30 carries 1 mark each.
5. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
6. Questions Nos. from 21 ,22 and 33 carries 4 marks each
7. Questions Nos. from 23 to 26 and 34 to 35 carries 5 marks each
8. There is no overall choice. However, an internal choice has been provided in 7 questions of one
mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.

PART A
Qns. FINANCIAL ACCOUNTING I 56
marks
1. Which of the following best describes the evolving role of accountants in today's business
environment?

a) Accountants focus solely on recording financial transactions and preparing reports.

b) Accountants provide relevant information for decision-making and work in various
growth areas such as forensic accounting and e-commerce. 1
c) Accountants focus only on internal auditing within an organization.
d) Accountants are responsible only for maintaining tax records for firms.

1|P a g e SUBJECT:ACCOUNTANCY GRADE: 11 PT 3

ECT:ACCOUNTANCY
 2. Which of the following best describes the purpose of Generally Accepted Accounting
Principles (GAAP)?

a) To provide a legal framework for taxation purposes

b) To ensure uniformity and consistency in the recording and reporting of financial
1
transactions
c) To regulate auditing standards globally
d) To prepare government budgets

3. A. It refers to those persons whose business buys goods on credit & payment has not
been done yet.
a) Creditors
b) Debtors
c) Cash in hand
d) Entrepreneurs OR
B. Amount received or receivable from the sale of goods and/ or services or bothis 1
called as
a) Expenses
b) Income
c) Revenue
d) Sales
4. Which of the following best describes an accounting voucher?

a) A document used to record only cash transactions

b) A document that serves as evidence for financial transactions and is used for recording 1
them in the books of accounts
c) A document issued by the government for tax purposes
d) A report generated at the end of the financial year

5. The concept that ensures expenses are recorded in the same period as the revenues they
help generate is known as:

a) Accrual Concept 1
b)Matching Concept
c) Conservatism Concept
d) Dual Aspect Concept
6. Mr. X showed that, Wages paid during the year 2011-2012 ` 45,000. Wages outstanding for
the year 2011-2012 ` 5,000. The accounting treatment of wages outstanding in the books of
Mr.X will be as follows:
a) Wages account Dr 5000
To Wages outstanding 5000
b) Wages outstanding account Dr 5000 1
To Wages 5000
c) Cash account Dr 5000
To wages 5000
d) P/L account Dr 5000
To Wages outstanding 5000

2|P a g e SUBJECT:ACCOUNTANCY GRADE: 11 PT 3

ECT:ACCOUNTANCY
 7. What is the primary purpose of preparing a Bank Reconciliation Statement (BRS)?

a) To record daily bank transactions

b) To reconcile the difference between the Cash Book and Bank Statement balances 1
c) To calculate the bank’s interest charges
d) To maintain a company's petty cash balance

8. Depreciable assets are those which:

a) Are expected to be used during more than one accounting period

b) Have an unlimited useful life 1
c) Are held for resale purposes
d) Are intangible assets
9. This is a type of discount allowed by the sellers to their customers at a fixed percentage on
the list price of goods and also it is not entered in the books of accounts.

a) Trade discount
1
b) Cash discount
c) Commission paid
d) Perks paid

10. Withdrawal of goods by owner for personal use:

a) Drawings a/c Dr
To Purchase a/c

b) Drawings a/c Dr
1
To cash

c) Cash a/c Dr
To Purchase

d) Drawings a/c Dr
To Goods
11. When an asset is sold at the end of its useful life, the amount realized as scrap is:

a) Debited to the asset account

b) Credited to the asset account 1
c) Debited to the profit and loss account
d) Added to accumulated depreciation

3|P a g e SUBJECT:ACCOUNTANCY GRADE: 11 PT 3

ECT:ACCOUNTANCY
 12. Goods purchased worth Rs 1,000 on credit are recorded in the Purchases Book as Rs
10,000.
a) Error of Omission 1
b) Recording error
c) There is no error
d) Principal error

13. For deducting depreciation amount from the cost of the asset, entry is,
a) Depreciation A/c Dr
To Asset A/c 1
b) Asset A/c Dr
To Depreciation
c) Asset Disposal account Dr
To Depreciation
d) P/L account Dr
To Depreciation
14. Which of the following is the primary body responsible for issuing Accounting Standards in
India?
1
a) Reserve Bank of India (RBI)
b) Institute of Chartered Accountants of India (ICAI)
c) Securities and Exchange Board of India (SEBI)
d) Ministry of Finance
15. Which of the following is an Accounting Standard issued by the Institute of Chartered
Accountants of India (ICAI)?

a) AS 4 - Contingencies and Events Occurring After the Balance Sheet Date

b) AS 12 - Accounting for Government Grants 1
c) AS 15 - Employee Benefits
d) All of the above

16. Which of the following is TRUE about a cash book?

a) Cash book is maintained only by large organizations.

b) Cash book serves the purpose of both the journal and the ledger account for cash. 1
c) Cash transactions must be recorded separately in the journal and ledger.
d) The cash book is not used for recording cash receipts and payments.
17. Explain the purpose and the process of preparing an Asset Disposal Account. What entries
3
are made in the account when an asset is disposed of, and how is the profit or loss on
disposal determined?

18. Distinguish between Straight line method and Written down value method of Depreciation 3

19. A. Name the State Taxes that have merged into GST
OR
B. Differentiate between Revenue and Capital Reserves 3

4|P a g e SUBJECT:ACCOUNTANCY GRADE: 11 PT 2 REGULAR

 How to calculate the Depreciation value in straight line method? Why the calculation of
20. Depreciation is important? 3
21. Give any 2 differences between Trial balance and Balance sheet. What are the steps taken
by an accountant to locate the errors in the trial balance? 4

22. Explain the need for drawing up the special-purpose books in accounting. Name the
different special purpose books. 4

23. A company purchased a machine for $50,000 on January 1st, 2020. The machine has an
expected useful life of 10 years and a residual value of $5,000. Using the straight-line
method and Written down value method calculate the annual depreciation for the machine.
a) Comment with any 2 reasons for the mismatch in the depreciation value when 5
calculating the value in 2 different methods.
b) Give two reasons for depreciation
24. Berlia Ltd. Purchased a second hand machine for ₹ 56,000 on July 01, 2015 and spent ₹
24,000 on its repair and installation and ₹ 5,000 for its carriage. On September 01, 2016, it
purchased another machine for ₹ 2, 50,000 and spent ₹ 10,000 on its installation.
(a) Depreciation is provided on machinery @10% p.a on original cost method annually on
December 31. Prepare machinery account and depreciation account from the year 2015 to
2018. 5
(b) Prepare machinery account and depreciation account from the year 2015 to 2018, if
depreciation is provided on machinery @10% p.a. on written down value method annually
on December 31.

25.
From the data given above Prepare double column cash book
as on December 2024

Date Particulars Amount

01 Started business with cash 120000

03 Cash paid into bank 50000
05 Purchased goods from Sushmita 20000
06 Sold goods to Dinakar and received cheque 20000
10 Paid to Sushmitha cash 20000
14 Cheque received on November 30th submitted to bank
18 Sold goods to Rani 12000
20 Cartage page in cash 500
5
21 Received cash from Rani 12000
27 Commission received 5000
30 Drew for personal use (cash only) 2000
 26. a) What are the different types of errors connected with Trial balance?
b) Rectify the following errors made by the accountant using proper journal entries.
i) A payment of Rs.500 made for an office expense was posted to the Purchases account
instead of Rent Expense.
ii) The credit sale of Rs.300 to a customer was recorded in the Accounts Payable account 5
instead of Accounts Receivable.
iii) A sales return of Rs.200 was recorded only in the Sales Revenue account and not in the
Sales Returns account.
iv) The balance in the Capital account was understated by Rs.500.

PART B
Qns. FINANCIAL ACCOUNTING II 24
Marks
27. What is the primary purpose of preparing the Trading and Profit and Loss Account?

a) To determine the assets and liabilities of a business.

b) To calculate the net profit or loss earned by the business during a specific period. 1
c) To prepare the balance sheet of the business.
d) To record all the cash transactions of the business
28. What does "Marshalling of Assets and Liabilities" in accounting refer to?

a) The arrangement of assets and liabilities based on their liquidity or permanence.

b) The classification of assets and liabilities based on their market value. 1
c) The order in which assets and liabilities are calculated in the financial statements.
d) The method of calculating depreciation on assets.
29. Ankit needs to record an adjustment entry to account for the accrued commission income
of ₹1,500 that was earned but not yet received by the end of the accounting year.

a) Accrued Commission A/c Dr

To Commission account
b) Commission account Dr 1
To Accrued Commission
c) Income received account Dr
To Commission
d) None of the above
30. Delinquent Accounts is similar to that of,
a) Bad debts
b) Depreciation account 1
c) Trading account
d) None of the above
31. XYZ Ltd. has a balance of ₹50,000 in its Accounts Receivable as of 31st March 2024. It is
estimated that ₹3,000 of this balance will be uncollectible. The company has already
provided for bad debts amounting to ₹2,000 as of the beginning of the year.

1. Prepare the Bad Debts Account. 3

2. Pass the necessary journal entry to adjust the bad debts for the final account
preparation.
32. ABC Ltd. has a net profit of ₹200,000 for the year ending 31st March 2024. The manager
is entitled to a commission of 5% of the net profit before commission.
3
1. Calculate the manager’s commission before and after such commission.
2. Show how the manager’s commission will affect the net profit.

33. The following is the Trial Balance prepared by an inexperienced accountant. Redraft it in a
correct form and give necessary notes : −

TRIAL BALANCE
for the year ending 31st March, 2017

Particulars Amount Particulars Amount

Cash in Hand 5,200 Bank Overdraft 16,400
Plant & Machinery 75,000 Capital 50,000
Typewriter 6,400 Goodwill 8,000
Stock (1-4-2016) 13,100 Sundry Creditors 8,200 4
Purchases 84,100 Sales 1,60,000
Carriage Inwards 2,800 Return Inwards 2,400
Carriage Outwards 1,600 Drawings 2,120
Sundry Debtors 18,300 Investments 4,000
Bills Payable 12,000
Rent Paid 9,600
Wages 16,500
Advertisement 4,500
Discount Received 3,200
2,52,300 2,51,120

34. The trial balance of Ramesh Vyas as on 31st March, 2013 was as follows.

Items Dr Amount Cr Amount

Purchases/sales 81,25,250 1,26,20,000
Provision for doubtful debts 2,60 000
Sundry debtors/sundry
25,10,000 15,26,300
creditors
Bills payable 1,97,500
Opening stock 13,36,250
Wages 11,56,850
Salaries 2,78,750
Furniture 3,62,500
Postage 2,11,300 5
Power and fuel 67,500
Trade expenses 2,91,550
Bad debts 26,250
Loan to Ram @ 10% 1st
1,50,000
December, 2012)
Cash in hand and at bank 5,00,000
Trade expenses accrued but
35,000
not paid
Drawings A/c/capital A/c 2,22,600 5,00,000
Outstanding wages 1,00,000
1,52,38,800 1,52,38,800
 Prepare the trading and profit and loss account for the year ended 31st March, 2013 and
the balance sheet as at that date after taking into consideration the following information.

1. Stock on 31st March, 2013 was Rs 6,27,500.

2. Depreciation on furniture is to be charged @ 10%.
3. Provision for doubtful debts is to be maintained @ 5% on sundry debtors.
4. Sundry debtors include an item of Rs 25,000 due from a customer who has become
insolvent.
5. Goods of the value of Rs 75,000 have been destroyed by fire and insurance
company admitted a claim for Rs 50,000
6. Received Rs 60,000 worth of goods on 27th March, 2013 but the invoice of
purchases was not recorded in purchases book.

35. From the following information, prepare the trading and profit and loss account for M/s
Indian sports house for the year ending March 31, 2017.

Account Title Amount Account Title Amount

Drawings 20,000 Capital 2,00,000

Sundry debtors 80,000 Return outwards 2,000
Bad debts 1,000 Bank overdraft 12,000
Trade Expenses 2,400 Provision for bad 4,000
debts
Printing and 2,000 Sundry creditors 60,000
Stationery
Rent Rates and Taxes 5,000 Bills payable 15,400
Freight 4,000 Sales 2,76,000
Return inwards 7,000
Opening stock 25,000
Purchases 1,80,000
Furniture and Fixture 20,000
Plant and Machinery 1,00,000 5
Bills receivable 14,000
Wages 10,000
Cash in hand 6,000
Discount allowed 2,000
Investments 40,000
Motor car 51,000
5,69,400 5,69,400
Adjustments to be made:

1. 1. The closing stock was valued at ₹ 45,000.

2. 2. Provision for doubtful debts is maintained at 2% of debtors.
3. 3. Depreciation is charged on: furniture and fixture at 5%, plant and machinery at 6% and
motor cars at 10%.
4. 4. A Machine costing ₹ 30,000 was purchased by the business on October 01, 2016.
5. 5. The manager is entitled to receive a commission of 10% of the net profit after charging
such a commission.
****