myCBSEguide

Class 11 - Accountancy
Sample paper - 03 (2024-25)

Maximum Marks: 80
Time Allowed: : 3 hours

General Instructions:

1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.
3. Question 1 to 17 and 27 to 29 carries 1 mark each.
4. Questions 18 to 20 and 30 to 32 carries 3 marks each.
5. Questions from 21 to 23 carries 4 marks each.
6. Questions from 24 to 26, 33 and 34 carries 6 marks each.

Part A
1. Which of the following item is not concerned with credit voucher?
a) Purchase of goods for cash
b) Payment received from debtors
c) Sale of goods for cash
d) Income received
2. Assertion (A): Bookkeeping involves summarising the classified transactions in the form of profit and loss account and
balance sheet.
Reason (R): Bookkeeping is the art of recording in books of accounts, the monetary aspect of commercial or financial
transactions. It is concerned with record keeping maintenance of books of accounts.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
3. Which of the following accounts has a credit balance?
a) Discount Allowed
b) Discount Received
c) Carriage Inward
d) Carriage Outward
4. If the total liabilities of a business decrease by Rs.5000 what will be the effect on total asset? (assuming the amount of
capital remain same)
a) Increase by Rs.5000
b) Increase by Rs.10000
c) Decrease by Rs.5000
d) Remain constant

OR

Find out the value of assets if: Liabilities= Rs.5000 and Capital= Rs.1000
a) Rs.4000
b) Rs.3000
c) Rs.5000

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

1 / 30
myCBSEguide
d) Rs.6000
5. Pulkit has returned goods worth ₹20,000 to Mohan as he found it defective. Which document will be prepared by Mohan?
a) Credit note
b) Debit note
c) Invoice/bill
d) Credit voucher
6. External users of accounting information are not:
a) Lenders
b) Public
c) Officers
d) Employees

OR

Use of common unit of measurement and common format of reporting promotes:

a) Reliability
b) Relevance
c) Understandability
d) Comparability
7. Which of the following does not correctly differentiate between revenue reserve and capital reserve?
a) Revenue reserve is created to strengthen the financial position, to meet unforeseen contingencies or for some specific
purposes. Whereas capital reserve is created for compliance of legal requirements or accounting practices.
b) Revenue reserve is created out of revenue profits where as capital reserve is created primarily out of capital profit.
c) Workmen compensation fund
d) Revenue reserve can be utilised only for a specific purpose whereas capital reserve can be utilised for any purpose.
8. Which account will be debited if proprietor pays ₹ 5,000 as life insurance premium from business cash?
a) Bank A/c
b) Drawings A/c
c) Cash A/c
d) Insurance A/c

OR

According to Modern approach, the decrease in assets will be?

a) Credited
b) Added to the liability
c) Debited
d) Deducted from the liability
9. The concept that a business enterprise will not be sold or liquidated in the near future is known as
a) Going Concern Concept
b) Economic Entity.
c) Monetary Unit.
d) Consistency
10. Which of the following transactions/events/entries can be attributed to the matching principle?
i. Outstanding expenses, though not paid in cash are shown in the profit and loss accounts.
ii. When insurance premium is paid partly for next year also, the part relating to next year will be shown as an expense
only next year and not this year.
iii. Depreciation is charged as per the straight line method each and every year.
a) Only (i) and (ii)

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

2 / 30
myCBSEguide
b) (i) and (iii)
c) Only (ii)
d) (i), (ii), and (iii)
To practice more questions & prepare well for exams, download myCBSEguide.com App. It provides complete study
material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8.com App to create
similar papers with their own name and logo.
11. Calculate provision for doubtful debt from the following information Sundry debtor- Rs.95200, Further bad debts (new)
Rs.11200, provision fro doubtful debt to be maintained is 10 %
a) Rs.6523
b) Rs.8400
c) Rs.9520
d) Rs.1120
12. Which one of the following is not a fictitious asset?
a) Deferred revenue expenditure
b) Loss on issue of debentures
c) Goodwill
d) Discount on issue of shares
13. Purchase return book is used to record:
a) All purchase returns
b) Return of assets purchased on credit
c) Return of goods purchased on credit
d) Return of goods purchased for cash
14. For which of the following transactions, capital account will be increased and decreased by the same amount?
a) Interest on drawings provided
b) Income received in advance
c) Bad debts on the insolvency of a debtor
d) Outstanding expenses paid
15. Goods means:
a) Commodity to be used as an asset
b) Commodity to be bought and sold
c) All of these
d) Commodity to be bought but not to be sold

OR

________ represents the excess of assets over liabilities.

a) Stock
b) All of these
c) Capital
d) Goodwill
16. The total of the Sales Book is posted to
a) credit of the Sales Account
b) credit of Customers' Accounts.
c) credit of the Capital Account
d) credit of the Purchases Account
17. The arrangement is made for meeting future uncertainties:
a) Investments
b) Reserves

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

3 / 30
myCBSEguide
c) Provisions
d) Provisions and Reserves
18. Name and briefly discuss the principal book of accounting system.

OR

Fill in the missing information in the following journal entries:

JOURNAL

S. Amount Amount
Particulars L.F.
No. Dr. Cr.

₹ ₹

(i) Dr. -
To
-
(Goods costing ₹ 2,00,000 destroyed by fire)

(ii) Mohan Dr. -

To -

To
2,400
(Payment made by cheque and discount received at 4%)

(iii) Dr. 25,000

To
25,000
(Salary outstanding at the end of the year)

(iv) Dr. -
To
(Depreciation provided on Computers costing -
₹ 1,50,000 @20% p.a.)

(v) Dr. -

To Bank A/c -
To
(Goods of the list price of ₹ 40,000 purchased at 15% Trade Discount and 5% cash -
discount)
19. International Financial Reporting Standards (IFRS) provides a number of benefits. Explain any three.

OR

International Accounting Standards Board (IASB) has a number of objectives to serve. Explain any three such objectives.
20. Classify the following into (i) Assets (ii) Liabilities (iii) Expenses and (iv) Revenues
Sales, Bank balance, Debtors, Bank Overdraft, Creditors, Salary to the manager, Discount to debtors, Cost of goods sold

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

4 / 30
myCBSEguide
To practice more questions & prepare well for exams, download myCBSEguide.com App. It provides complete study
material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8.com App to create
similar papers with their own name and logo.
21. The following trial balance has been prepared by an inexperienced accountant. Redraft it in the correct form:-
Name of Accounts Balance Dr. Balance Cr.
₹ ₹

Land and Building 1,20,000

Plant and Machinery 92,000

Wages 18,200

Discount Allowed 1,620

Discount Received 730

Purchases 1,26,000

Sales 2,40,000

Return Inwards 6,500

Return Outwards 3,370

Opening Stock 15,000

Debtors 30,000

Creditors 20,000
Carriage on Sales 3,280

Carriage on Purchase 2,800

Insurance 1,500
General Expenses 6,100

Cash in Hand 2,400

Bank Overdraft 12,100

Capital 1,54,000
Drawings 4,800

Total 4,30,200 4,30,200

22. Prepare petty cash book from the following transactions. The imprest amount is ₹ 2,000.
2017 January ₹

01 Paid cartage 50

02 STD charges 40
02 Bus fare 20

03 Postage 30

04 Refreshment for employees 80

06 Courier charges 30
08 Refreshment of customer 50

10 Cartage 35

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

5 / 30
myCBSEguide
15 Taxi fare to manager 70

18 Stationery 65

20 Bus fare 10
22 Fax charges 30

25 Telegrams charges 35

27 Postage stamps 200

29 Repair on furniture 105

30 Laundry expenses 115

31 Miscellaneous expenses 100

23. Prepare a Bank Reconciliation Statement from the following particulars on 31st March, 2023:
Bank Statement showed a favourable balance of ₹ 12,400.
i. Cheques amounting to ₹ 45,000 were drawn on 27th March, 2023 of which cheques of ₹ 33,000 were encashed on 2nd
April, 2023.
ii. Cheque issued returned on technical grounds ₹ 4,000.
iii. Bank recorded a Cash deposit of ₹ 3,210 as ₹ 3,120.
iv. Bill for collection not advised by the bank but credited to our account ₹ 8,000.
v. A bill for ₹ 10,000 was retired by the Bank under a rebate of ₹ 200 but the full amount of the bill was credited in the
bank column of the Cash Book.

OR

Malhotra and Sons find that the bank balance shown by their Cash Book on December 31, 2023 is ₹ 40,500 (credit) but the
Pass Book shows a difference due to the following reasons:
i. A cheque for ₹ 5,000 drawn in favour of Manoj has not yet been presented for payment.
ii. A post-dated cheque for ₹ 900 has been debited in the bank column of the Cash Book but it could not have been
presented in any case.
iii. Cheques totaling ₹ 10,200 deposited with the Bank have not yet been collected and an another cheque for ₹ 4,000
deposited in the account has been dishonoured.
iv. A bill payable for ₹ 10,000 was retired by the Bank under a rebate of ₹ 150 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.
24. Pass Journal entries for the following adjustment on 31st March, 2023:
i. Interest due but not received ₹ 10,000.
ii. Salaries due to staff ₹ 50,000.
iii. Out of the rent paid this year, ₹ 5,000 is for the next year.
iv. Provide 10% depreciation on Furniture costing ₹ 1,00,000
v. Goods used in making Furniture (Sales Price ₹ 5,000; Cost ₹ 4,000).
vi. Received commission of ₹ 20,000 by cheque, half of which is in advance.
vii. Allow interest on capital ₹ 8,000
viii. Charge interest on drawings ₹ 1,500.

OR

Pass the Journal entries for the following transactions of Suraj:

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

6 / 30
myCBSEguide
2023 ₹
April 1 Suraj introduced cash as capital 1,00,000

Gave cheque from his Savings Account 10,00,000

April 2 Purchased goods of ₹ 1,00,000 against cheque less 10% Trade Discount
April 2 Issued cheque as advance for Machinery 1,00,000

Purchased Goods of ₹ 2,00,000 less 25% Trade Discount and paid immediately availing Cash
April 3
Discount of 2%
April 7 Sold goods to Ritik against cheque 50,000
April
Sold goods to Ramesh ₹ 25,000 less 10% Trade Discount
10

April
Received cheque from Ramesh and allowed 2% Cash Discount
14
April
Cheque received from Ramesh deposited in bank
16

April
Cheque received from Ramesh was dishonoured, Bank charged bank charges 200
20
April
Paid Life Insurance Premium of Suraj by Bank Draft. Paid bank charges of ₹ 100 10,000
25
April
Amount transferred to fixed deposit 5,00,000
30
25. There was a difference of ₹ 430 in a Trial Balance. It was placed on the Debit side of a Suspense A/c. Later on, the
following errors were discovered. Pass rectifying entries and prepare Suspense A/c.
i. Purchases book was overcast by ₹ 100
ii. Sales book was overcast by ₹ 1,000
iii. Goods for ₹ 800 purchased from Vinay, though entered in the purchase book, has not been posted to his account.
iv. An amount of ₹ 500 has been posted to the credit side of the commission account instead of ₹ 570
v. Goods sold to Divya for ₹ 4,400 has been posted to her account as ₹ 4,000
vi. Goods sold to X for ₹ 750 were recorded in the purchase book.

OR

The following errors were found in the book of Rajan & Sons. Give the necessary entries to correct them.
i. Repairs made were debited to building account Rs 100.
ii. An amount Rs 200 withdrawn by the proprietor for his personal use has been debited to trade expenses account.
iii. Rs 200 paid for rent debited to landlord's account.
iv. Salary Rs 250 paid to a clerk due to him has been debited to his personal account.
v. Rs 200 received from Rina & Co has been wrongly entered as from Reena & Co.
vi. Rs 1400 paid in cash for a typewriter was charged to office expenses account.
26. On 1st Jan. 2020, Worldfast Dry fruits Ltd. bought a plant for ₹ 15,00,000. The company writes off depreciation @ 20% p.a.
on Written Down Value Method and closes its books on 31st March every year. On 1st Oct. 2022, a part of the plant
purchased on 1st Jan. 2020 for ₹ 3,00,000 was sold for ₹ 1,75,000. On 1st Jan. 2023 a fresh plant was purchased for ₹
5,00,000. Prepare Plant A/c, Provision for Dep. A/c and Plant Disposal A/c.

OR

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

7 / 30
myCBSEguide
A firm purchased on 1st April 2015 certain machinery for Rs.5,82,000 and spent Rs.18,000 on its installation. On 1st
October 2015, additional machinery costing Rs.2,00,000 was purchased. On 1st October 2017, the machinery purchased on
1st April 2015 was auctioned for Rs.2,86,000 plus CGST and SGST @ 6% each and new machinery for Rs.4,00,000, plus
IGST @ 12% was purchased on the same date. Depreciation was provided annually on 31st March at the rate of 10% on the
Written Down Value Method. Prepare the Machinery Account for the three years ended 31st March 2018.
Part B
27. In the case of the net worth method of Single Entry System, profit is ascertained by:
a) Preparing a trial balance
b) Preparing a Balance Sheet
c) Preparing a Profit and Loss Account
d) comparing the capital at the beginning of the accounting period and the capital at the end of the accounting period.

OR

Some small size business entities do not follow the double-entry system of maintaining the accounting records because:
a) It requires expert staff
b) It is very costly system.
c) It is a time-consuming method
d) All of these
28. If sale is Rs.21,000 and cost of goods sold is 15,000, what is the actual profit:
a) 6000
b) 12000
c) 7000
d) 5000
29. Net profit before the following adjustments is Rs.180000, outstanding salary-Rs.13000, prepaid insurance-Rs.10000
a) Rs.175000
b) Rs.180000
c) Rs.183000
d) Rs.20400

OR

What is the effect of overvaluing Closing Stock on the Current Year’s Profit?
a) Decreases the gross profit and increases net profit.
b) Increase the gross profit but decrease the net profit.
c) Increase the gross profit and net profit.
d) Increases the gross profit and net profit.
30. From the following information, prepare the Trading A/c for the year ended 31st March 2023:
₹
Adjusted Purchases 6,60,000

Sales 7,44,000
Closing Stock 50,400
Freight and Carriage Inwards 3,600

Wages 6,000
Freight and Cartage outwards 2,000

31. From the following information, Gross Profit for the year ended 31st March, 2023:

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

8 / 30
myCBSEguide
Transaction ₹

Opening Stock (1st April, 2022) 50,000

Freight and Packing 20,000

Sales 3,80,000
Goods purchased during the year 2,80,000
Closing Stock (31st March, 2023) 60,000

Packing Expenses on Sales 12,000

32. What is meant by Outstanding Expenses? Give its adjusting entry.
33. X, a retailer, has not maintained proper books of account, but it has been possible to obtain the following details:
Last Year (₹) This Year (₹)
Trade Creditors 6,270 5,890
Loan from Naveen 5,000 5,000

Stock 12,350 11,980

Cash in Hand 570 650

Shop Fittings 7,250 7,800

Trade Debtors 5,280 4,560
Bank Balance 3,990 4,130

Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that:
i. Shop Fittings are to be depreciated by ₹ 780.
ii. X has drawn ₹ 100 per week for his own use.
iii. Included in the Trade Debtors is an irrecoverable balance of ₹ 270.
iv. Interest at 5% p.a. is due on the loan from Naveen but has not been paid for the year.

OR

Raj tells you that his capital on 31st December, 2013 is Rs 18,700 and his capital on 1st January, 2013 was Rs 19,200. He
further informs you that during the year, he gave a loan of Rs 3,500 to his brother on private account and withdrew Rs
3,500 for his brother on private account and withdrew Rs 300 per month for personal purposes. He also used a flat for his
personal purpose, the rent of which @ Rs 100 per month and electricity charges at an average rate of Rs. 10 per month were
paid from the business account. During the year, he sold his 7% government bonds of Rs 2,000 at 2% premium and brought
that money into the business.
You are required to prepare a statement of profit or loss for the year ended 31st December, 2013.
34. Below is given the Trial Balance of Mr. Ramesh as at 31st December, 2022. You are required to prepare Trading and Profit
& Loss Account and Balance Sheet as at that date.
Dr. Balances ₹ Cr. Balances ₹
Opening Stock 42,000 Sales 4,10,000

Purchases 2,00,000 Sundry Creditors 20,000

Plant 60,000 Purchases Return 8,000
Salary 33,000 Commission 7,500

Wages 44,000 Bank 24,000

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

9 / 30
myCBSEguide
Discount 2,000 Capital 1,50,000

Rent 27,500 Interest on Investments 700

Furniture (Including Furniture of
20,000 Special Rebate 800
₹ 5,000 purchased on 1st July, 2022)
Carriage in 5,800

Carriage out 3,200

Sundry Debtors 1,00,000
Office Expenses 6,600

Cash in hand 5,400

Investments at 14% p.a. 10,000

Insurance (Paid to 30th April, 2023) 1,500

Stock on 31st December, 2022 60,000

6,21,000 6,21,000

Adjustments:-
i. Create a provision for Doubtful Debts @ 5% on Debtors and 2% for discount on Debtors.
ii. Provide up-to-date interest on Investments.
iii. Expenses for rent, wages, salaries and office expenses are uniform throughout the year and those for December, 2022
have not been paid.
iv. Depreciate Plant by 10% p.a. and Furniture by 20% p.a.
v. Unearned Commission ₹ 1,500.

OR

From the following ledger balances of Mr Charan Singh, prepare the trading and profit and loss account for the year ended
31st March, 2013 and the balance sheet as at that date after making the necessary adjustments.
Particulars Amt (Rs) Particulars Amt (Rs)
Trade expenses 800 Purchases 82,000

Freight and duty15,000 2,000 Stock (1st April, 2010) 15,000

Carriage outwards 500 Plant and machinery (1st April, 2012) 20,000
Sundry debtors 20,600 Plant and machinery (additions on 1st October, 2012) 5,000

Furniture and fixtures 5,000

Return inwards 2,000 Drawings 6,000
Printing and stationery 400 Capital 80,000

Rent, rates and taxes 4,600 Provision for doubtful debts 800
Sundry creditors 10,000 Rent for premises sublet 1,600
Sales 1,20,000 Insurance charges 700

Return outwards 1,000 Salaries and wages 21,300

Postage arid telegraphs 800 Cash in hand 6,200

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

10 / 30
myCBSEguide
Cash at bank 20,500

Additional Information
i. Stock on 31st March, 2013 was Rs 14,000.
ii. Written-off Rs 600 as bad debts,
iii. Provision for doubtful debts is to be maintained @ 5%.
iv. Provision for depreciation on furniture and fixtures at 5% per annum and on plant and machinery at 20% per annum.
v. Insurance prepaid was Rs 100.
vi. A fire occurred in the godown and stock of the value of Rs 5,000 was destroyed. It was insured and the insurance
company admitted full claim.
To practice more questions & prepare well for exams, download myCBSEguide.com App. It provides complete study
material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8.com App to create
similar papers with their own name and logo.

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

11 / 30
myCBSEguide

Class 11 - Accountancy
Sample paper - 03 (2024-25)

Solution

Part A
1. (a) Purchase of goods for cash
Explanation: Credit voucher is concerned with receipts of cash for any transaction. So there payment of cash for good
purchase which is not related to credit voucher.
2. (d) A is false but R is true.
Explanation: Accounting involves summarising the classified transactions in the form of profit and loss account and
balance sheet.
3. (b) Discount Received
Explanation: As per the Nominal accounting rules discount received is profit and has a credit balance.
4. (c) Decrease by Rs.5000
Explanation: If liability decrease by 5000 this means there is a payment for any liability which means cash outflow . Cash
is an assets which get decreases when we pay liability which means assets also decreases with same amount.

OR

(d) Rs.6000
Explanation: Assets = Capital + liabilities
Assets =1000 + 5000
Assets = Rs. 6000
5. (a) Credit note
Explanation: Credit note
6. (c) Officers
Explanation: Officers are not external users of accounting information because he is not part of external users.

OR

(d) Comparability
Explanation: It becomes easier to compare accounts of one business with the other or intra firm comparison.
7. (d) Revenue reserve can be utilised only for a specific purpose whereas capital reserve can be utilised for any purpose.
Explanation: A specific revenue reserve can be utilised only for the earmarked purpose while a general reserve can be
utilised for any purpose including distribution of dividend whereas a capital reserve can be utilised for specific purposes as
provided in the law in force.
8. (b) Drawings A/c
Explanation: Drawings A/c

OR

(a) Credited
Explanation: According to modern approach of Accounting, assets when increases it is debited and when decreases it is
credited.
9. (a) Going Concern Concept
Explanation: Going Concern Concept
10. (a) Only (i) and (ii)
Explanation: Only (i) and (ii)

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

12 / 30
myCBSEguide
11. (b) Rs.8400
Explanation: Sundry Debtors = 95,200
Less: Further bad debts = 11,200
Balance = 84,000
Provision for doubtful debts = 84000 * 10/100
= 8400
12. (c) Goodwill
Explanation: Goodwill is fixed intangible asset. It is not Fictitious Assets.
13. (c) Return of goods purchased on credit
Explanation: Return of goods purchased on credit
To practice more questions & prepare well for exams, download myCBSEguide.com App. It provides complete study
material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8.com App to create
similar papers with their own name and logo.
14. (a) Interest on drawings provided
Explanation: Interest on drawings is an income for the firm (so increase in capital) and is an expense for the proprietor (so
decrease in capital).
15. (b) Commodity to be bought and sold
Explanation: Good means commodity to be bought and sold. It is a physical item of Trade.

OR

(c) Capital
Explanation: Capital represents the excess of assets over liabilities.
16. (a) credit of the Sales Account
Explanation: The Sales book is a subsidiary book that records only credit sales. Thus, we need to post the total of sales
book to the credit of Sales A/c.
17. (b) Reserves
Explanation: Reserves
18. A ledger is the principal book or computer file for recording and totaling economic transactions measured in terms of a
monetary unit of account by account type, with debits and credits in separate columns and a beginning monetary balance
and ending monetary balance for each account of accounting system which contains all the accounts (assets, liabilities,
revenue, expenses). All the transactions recorded in the books of original entry are transferred to ledger. Ledger is called the
principal book/book of final entry as trial balance is prepared from it and thereafter financial statements are prepared. It is
the ultimate destination of all the transactions. The book which contains a classified and permanent record of all the
business transactions is called a ledger.

OR

JOURNAL

S. Amount Amount
Particulars L.F.
No. Dr. Cr.
₹ ₹

(i) Loss by Fire A/c Dr. 2,00,000

To Purchases A/c
2,00,000
(Goods costing ₹ 2,00,000 destroyed by fire)

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

13 / 30
myCBSEguide
(ii) Mohan(1) Dr. 60,000

To Bank A/c 57,600

To Discount Received A/c

2,400
(Payment made by cheque and discount received at 4%)

(iii) Salaries A/c Dr. 25,000

To Outstanding Salaries A/c

25,000
(Salary outstanding at the end of the year)

(iv) Depreciation A/c Dr. 30,000

To Office Equipments A/c

(Depreciation provided on Computers costing 30,000
₹ 1,50,000 @20% p.a.)

(v) Purchases A/c Dr. 34,000

To Bank A/c 32,300

To discount received A/c

(Goods of the list price of ₹ 40,000 purchased at 15% Trade Discount and 5% cash 1,700
discount)
19. i. Comparability: It is the level of standardization of accounting information that allows the financial statements of
multiple organizations to be compared to each other. This is a fundamental requirement of financial reporting that is
needed by the users of financial statements.

Financial statements are more comparable when the same accounting policies and standards are applied across multiple
reporting periods, as well as across multiple entities within an industry. For example, if a number of oil and gas firms
consistently apply the same industry-specific accounting standards to their financial statements, then there should be a
high level of comparability within that industry.

ii. Flexibility: using a philosophy that is based on the principles, instead of the rules, this set of standards will have the
goal of arriving at a reasonable valuation with various ways to accomplish a task. Financial statements are more easy to
reads and to use.
iii. Beneficial to small and new investors: IFRS can help new and small investors by making, reporting standards to have
better quality and become simpler, putting these investors in a similar position with professional investors, which was
not feasible with previous standards.

OR

Objectives of IASB
The objectives of IASB are as follows:
i. To issue accounting standards which facilitate transparency and comparability to facilitate right decisions.
ii. To promote use of these standards.
iii. To bring uniformity in national accounting standards and IFRS.
20. Classification is as follows:-
i. Assets: Bank balance, Debtors

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

14 / 30
myCBSEguide
ii. Liabilities: Bank overdraft, creditors
iii. Expenses: Salary to Manager, Discount to debtors, cost of goods sold
iv. Revenues: Sales

21. Trial Balance of

for the year

Name of Accounts L.F. Debit Balance (₹) Credit Balance (₹)

Land & Building 1,20,000

Plant & Machinery 92,000

Wages 18,200

Discount Allowed 1,620

Discount Received 730

Purchases 1,26,000

Sales 2,40,000

Return Inwards 6,500

Return Outwards 3,370

Opening Stock 15,000

Debtors 30,000
Creditors 20,000

Carriage on Sales 3,280

Carriage on Purchases 2,800

Insurance A/c 1,500

General Expenses 6,100

Cash in Hand 2,400

Bank Overdraft 12,100

Capital 1,54,000

Drawings 4,800
Total 4,30,200 4,30,200
Since the debit and credit side of the trial balance tallies, it is accurate.

22. Petty Cash Book

Amount Voucher Amount

Date Particulars Analysis of Payments
Received No. Paid

Telephone Remarks
2017
₹ ₹ Postage & Conveyance Stationery Misc.
July
Telegram

2017
2000 01 Jul Cash

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

15 / 30
myCBSEguide
received
01 Jul Cartage 50 50

02 Jul STD Charges 40 40

02 Jul Bus fare 20 20

03 Jul Postage 30 30
04 Jul Refreshments 80 80

Courier
06 Jul 30 30
Charges

08 Jul Refreshments 50 50
10 Jul Cartage 35 35

15 Jul Taxi fare 70 70

18 Jul Stationery 65 65
20 Jul Bus fare 10 10

22 Jul Fax 30 30

Telegram
25 Jul 35 35
Charges
27 Jul Postage 200 200

Furniture
29 Jul 105 105
Repair

30 Jul Laundry 115 115

31 Jul Misc 100 100

1065 260 105 185 65 450

31 Jul Balance c/d 935

2,000 2,000

935 01 Aug Balance b/d

Cash
1,065 01 Aug
received

23. BANK RECONCILIATION STATEMENT

as on 31st March, 2023

Particulars Plus Items Minus Items

₹ ₹

Balance as per Pass Book (Cr.) Favourable 12,400

(i) Cheques drawn but not encashed upto 31st March, 2023 33,000
(ii) Cheque issued returned on technical grounds 4,000

(iii) Short Credit for Cash deposit 90

(iv) Bill for Collection credited by bank 8,000

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

16 / 30
myCBSEguide
(v) Rebate on payment of bill by bank not recorded in Cash Book 200
12,490 45,200

Overdraft (Cr.) balance as per Cash Book 32,710

Since balance as per pass book is given, errors can be rectified in pass book only.

OR

BANK RECONCILIATION STATEMENT

as on December 31, 2023

Particulars (+) (-)

Unfavourable balance as per Cash Book (Cr.) 40,500

Cheques issued not yet presented 5,000

Post dated Cheque received but it could not have been presented in any case 900

Cheques not yet credited 10,200

Cheques dishonoured 4,000

Bill retiring Under the Rebate. 150

Unfavourable balance as per Pass Book (Dr.) (Balancing figure) 50,450

55,600 55,600

24. Journal Entries

Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)

(i) Accrued Interest A/c Dr. 4,000

To Interest A/c
4,000
(interest due but not received)

Salaries A/c Dr. 50,000

(ii) To Outstanding Salaries A/c
50,000
(salaries due to staff)

Prepaid Rent A/c Dr. 5,000

(iii) To Rent A/c
5,000
(rent paid in advance)

Depreciation A/c Dr. 10,000

(iv) To Furniture A/c
10,000
(Depreciation provided on furniture)

(v) Furniture A/c Dr. 4,000

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

17 / 30
myCBSEguide
To Purchases A/c 4,000
(goods used for making office furniture)

Bank A/c Dr. 20,000

(vi) To Commission Received A/c
20,000
(Commission Received)

Commission Received A/c Dr. 10,000

To Commission Received in Advance A/c

10,000
(commission received in advance adjusted)

(vii) Interest on Capital A/c Dr. 8,000

To Capital A/c
8,000
(interest allowed on capital)

(viii) Capital A/c Dr. 1,500

To Interest on Drawings A/c

1,500
(interest on drawings charged)

OR

JOURNAL OF SURAJ

Date Particulars L.F. Dr. (₹) Cr. (₹)

2023
Cash A/c ...Dr. 1,00,000

April Bank A/c ...Dr. 10,00,000

1
To Capital A/c
11,00,000
(Capital introduced in cash and by cheque)

Purchases A/c ...Dr. 90,000

April
2 To Bank A/c
90,000
(Goods purchased of ₹ 1,00,000 less 10% Trade Discount against cheque)

Advance for Machinery A/c ...Dr. 1,00,000

April
2 To Bank A/c
1,00,000
(Advance for purchase of machinery)

April Purchases A/c ...Dr. 1,50,000

3
To Cash/Bank A/c 1,47,000

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

18 / 30
myCBSEguide

To Discount Received A/c

(Goods purchased of ₹ 2,00,000 at Trade Discount of 25%, paid immediately and 3,000
availed 2% Cash Discount) (Note)

Bank A/c ...Dr. 50,000

April
To Sales A/c
7 50,000
(Goods sold against cheque)

Ramesh ...Dr. 22,500

April
To Sales A/c
10 22,500
(Goods sold at 10% Trade Discount)

Cheques in Hand A/c ...Dr. 22,050

April Discount Allowed A/c ...Dr. 450
14
To Ramesh
22,500
(Cheque received, allowed 2% Cash Discount)

Bank A/c ...Dr. 22,050

April
To Cheques in Hand A/c
16 22,050
(Cheque of Ramesh deposited)

Ramesh ...Dr. 22,500

Bank Charges A/c ...Dr. 200
April
To Bank A/c 22,250
20
To Discount Allowed A/c
450
(Cheque dishonoured, Cash Discount reversed, Bank charges paid)

Drawings A/c ...Dr. 10,100

April
25 To Bank A/c
10,100
(LIC premium paid of ₹ 10,000 by bank draft, paid ₹ 100 as bank charges)

Fixed Deposit A/c ...Dr. 5,00,000

April
30 To Bank A/c
5,00,000
(Amount transferred to fixed deposit)
Note:
₹
List Price 2,00,000

Less: Trade Discount (25%) 50,000

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

19 / 30
myCBSEguide
Invoice Price 1,50,000

Less: Cash Discount (2%) 3,000

Net Payment 1,47,000

25. Journal

Debit Credit
Date Particulars L.F.
amount (₹) Amount (₹)

(i) Suspense A/c Dr. 100

To Purchases A/c 100

(Overcasting of Purchases Book now rectified)

(ii) Sales A/c Dr. 1,000

To Suspense A/c 1,000

(Overcasting of Sales Book now rectified)

(iii) Suspense A/c Dr. 800

To Vinay's A/c 800

(Goods purchased from Vinay not posted to his account now rectified)

(iv) Suspense A/c Dr. 70

To Commission A/c 70

(Amount of ₹ 500 posted to the credit side of Commission Account, instead

of ₹ 570 now rectified)

(v) Divya's A/c Dr. 400

To Suspense A/c 400

(Goods sold to Divya for ₹ 4,400 posted as ₹ 4,000 now rectified)

(vi) X's A/c Dr. 1,500

To Sales A/c 750

To Purchases A/c 750

(Goods sold to X recorded in Purchases Book now rectified)

Suspense Account

Dr. Cr.

Particulars Amount (₹) Particulars Amount (₹)

To Difference in Trial Balance 430 By Sales A/c 1,000

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

20 / 30
myCBSEguide

To Purchases A/c 100 By Divya's A/c 400

To Vinay's A/c 800

To Commission A/c 70

1,400 1,400

OR

The following Journal entries will be passed in the books of M/s Rajan & Sons for the rectification of above errors:

Journal

Date Particulars LF Amt(Dr) Amt(Cr)

Repairs A/c Dr 100

To Building A/c
(Being rectification entry for the correction of wrong debit to building account for 100
repairs made)

Drawings A/c 200

To Trade Expenses A/c

(Being rectification entry for the correction of wrong debit to trade expenses Dr 200
account for cash withdrawn by the proprietor for his personal use)
Rent A/c 200

To Landlord's Personal A/c

(Being rectification entry for the correction of wrong debit to landlord's account for Dr 200
rent paid)

Salaries A/c 250

To Clerk's (Personal)A/c
(Being rectification entry for the correction of wrong debit to clerk's personal Dr 250
account for salaries paid)

Reena & Co. Dr 200

To Rina & Co.

(Being rectification entry for the correction of wrong credit to Reena & Co Instead 200
of Rina & Co)
Office Equipment A/c Dr 1,400

To office Expenses A/c

(Being rectification entry for the correction of wrong debit to office expenses 1,400
account for purchases of typewriter)

26. PLANT ACCOUNT

Dr. Cr.

Date Particulars Amount (₹) Date Particulars Amount (₹)

2020 2020

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

21 / 30
myCBSEguide
Jan. 1 To Bank A/c Mar. 31 By Balance c/d

PLANT 1 3,00,000 PLANT 1 3,00,000

PLANT 2 12,00,000 15,00,000 PLANT 2 12,00,000 15,00,000

15,00,000 15,00,000

2020 2021
Apr. 1 To Balance b/d Mar. 31 By Balance c/d

PLANT 1 3,00,000 PLANT 1 3,00,000

PLANT 2 12,00,000 15,00,000 PLANT 2 12,00,000 15,00,000

15,00,000 15,00,000

15,00,000 15,00,000

2021 2022

Apr. 1 By Balance b/d Mar. 31 By Balance c/d

PLANT 1 3,00,000 PLANT 1 3,00,000

PLANT 2 12,00,000 15,00,000 2023 PLANT 2 12,00,000 15,00,000

15,00,000 15,00,000
2022 2022

Apr. 1 To Balance b/d Oct. 1 By PLANT Disposal A/c (PLANT 1) 3,00,000

PLANT 1 3,00,000 2023

PLANT 2 12,00,000 15,00,000 Oct. 1 By Balance c/d

2023 PLANT 2 12,00,000

Jan. 1 To Bank A/c (PLANT 3) 5,00,000 PLANT 3 5,00,000 17,00,000

20,00,000 20,00,000

PLANT DISPOSAL ACCOUNT

Dr. Cr.

Amount Amount
Date Particulars Date Particulars
(₹) (₹)
2022 2022

Oct. Oct. By Provision for Depreciation

To Plant A/c 3,00,000 1,35,840
1 1 A/c

To Profit and Loss A/c (Profit on Sale of Plant

" 10,840 " By Bank A/c (Sale of Plant 1) 1,75,000
1)
3,10,840 3,10,840

PROVISION FOR DEPRECIATION ACCOUNT

Dr. Cr.

Date Particulars Amount (₹) Date Particulars Amount (₹)

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

22 / 30
myCBSEguide
2020 2020

Mar. 31 To Balance c/d 75,000 Mar. 31 By Balance b/d

Plant 1 (for 3 months) 15,000

Plant 2 (for 3 months) 60,000 75,000

75,000 75,000
2021 2020

Mar. 31 To Balance c/d 3,60,000 Apr. 1 By Balance b/d 75,000

2021
Mar. 31 By Depreciation A/c

Machine 1 57,000
Machine 2 2,28,000 2,85,000
3,60,000 3,60,000

2022 2021
Mar. 31 To Balance c/d 5,88,000 Apr. 1 By Balance b/d 3,60,000
2022

Mar. 31 By Depreciation A/c

Plant 1 45,600
Plant 2 1,82,400 2,28,000

5,88,000 5,88,000
2022 2022
Oct,. 1 Plant Disposal A/c (Plant 1) 1,35,840 Apr. 1 Balance b/d 5,88,000

2023 Oct. 1 Depreciation A/c (Plant 1)(for 6 months) 18,240

Mar. 31 To Balance c/d 6,41,320 2023
Mar. 31 Depreciation A/c

Plant 2 1,45,920
Plant 3 (for 3 months) 25,000 1,70,920
7,77,160 7,77,160
Working Note:-
Calculation of Profit and loss on Sale of Plant:-
Particulars Amount (₹)
Value of Plant on Jan 01, 2020 3,00,000
Less: Depreciation for 3 months 15,000

Value of Plant on Apr. 1, 2020 2,85,000

Less: Depreciation 57,000

Value of Plant on Apr. 1, 2021 2,28,000

Less: Depreciation 45,600

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

23 / 30
myCBSEguide
Value of Plant on Apr. 1, 2022 1,82,400
Less: Depreciation for 3 months 18,240

Value of Plant on Oct. 1, 2022 1,64,160

Less: Sale Value 1,75,000
Profit on Sale 10,840

OR

MACHINERY ACCOUNT

Dr. Cr.
Date Particulars J.F. Rs. Date Particulars J.F. Rs.
To Bank A/c - cost
01.04.15 6,00,000 31.03.16 By Depreciation A/c 70,000
(M1)

01.10.15 To Bank A/c (M2) 2,00,000 By Balance c/d 7,30,000

8,00,000 8,00,000
01.04.16 To Balance b/d 7,30,000 31.03.17 By Deprecation A/c 73,000
By Balance c/d 6,57,000

7,30,000 7,30,000
01.04.17 To Balance b/d 6,57,000 01.10.17 By Cash A/c 2,86,000

01.10.17 To Bank A/c (M3) 4,48,000 By Profit & Loss A/c 1,75,700

31.03.18 By Depreciation A/c 63,800

By Balance c/d 5,79,500

11,05,000 11,05,000
01.04.18 To Balance b/d 5,79,500
Working Notes:
Particulars Machine I Machine II Machine III Total
Cost (5,82,000+18,000) 6,00,000 2,00,000 4,48,000

Less: Depreciation for 2015-16 @ 10% -60,000 -10,000 0 70,000

W.D.V. 5,40,000 1,90,000 4,48,000
Less: Depreciation for 2016-17 @ 10% -54,000 -19,000 0 73,000

W.D.V. 4,86,000 1,71,000 4,48,000

Less : Depreciation for 2017-18 @ 10% -24,300 -17,100 -22,400 63,800
W.D.V. 4,61,700 1,53,900 4,25,600

Less: Sale value -2,86,000

Loss on sale 1,75,700

Depreciation is calculated by Diminishing value method so it is calculated on balance value of an asset or written down

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

24 / 30
myCBSEguide
value of asset not on the cost of the asset.
GST paid on purchase of asset increase the cost of the asset.
Part B
27. (d) comparing the capital at the beginning of the accounting period and the capital at the end of the accounting period.
Explanation: Profit is calculated by comparing the capital in the beginning of the accounting period and the capital at the
end of the accounting period.

OR

(d) All of these

Explanation: Small size businesses don't want to pay attention in accounting complexities and that's why they
don't maintain their books of accounts through the complex system of double entry system of book keeping. since, double-
entry system of book keeping a costly system in comparison to incomplete records (single entry), it is a time-consuming
system and a small businessman wants to pay all his attention to his business activities rather than accounting activities and
also it requires expert knowledge.
28. (a) 6000
Explanation: sale - cost will give us the profit i e 21000-15000=6000
29. (c) Rs.183000
Explanation: net profit+outstanding salary-prepaid insurance
=180000+13000-10000
=183000

OR

(d) Increases the gross profit and net profit.

Explanation: Increases the gross profit and net profit.

30. TRADING ACCOUNT

for the year ended March 31, 2023

Dr. Cr.

Particulars Amount (₹) Particulars Amount (₹)

To Adjusted Purchases 6,60,000 By Sales 7,44,000
To Freight and carriage inward 3,600

To Wages 6,000
To Gross Profit (Bal. Fig.) 74,400
7,44,000 7,44,000
It is noted that closing stock has not been shown on the credit side of Trading Account because it has already been adjusted
while calculating adjusted purchases.
Freight and cartage outward is an indirect expense and hence not debited to Trading Account.

31. TRADING ACCOUNT

as at March 31, 2023

Dr. Cr.
Particulars Amount (₹) Particulars Amount (₹)

To Opening Stock A/c 50,000 By Sales A/c 3,80,000

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

25 / 30
myCBSEguide

To Freight and Packing A/c 20,000 By Closing Stock A/c 60,000

To Purchase A/c 2,80,000

To Gross Profit A/c (b/f) 90,000

4,40,000 4,40,000
Working Notes:-
i. Gross Profit = Sales + Closing Stock - (Opening Stock + Goods Purchased + Freight and Packing)
= 3,80,000 + 60,000 - (50,000 + 2,80,000 + 20,000)
= 4,40,000 - 3,50,000
Gross Profit = 90,000
ii. Packing Expenses on the sales is an indirect Expenses, so we cannot include it in calculation of Gross profit.
32. Outstanding expenses are expenses relating to the current period that have been incurred but not paid at the end of the
period. In other words, services or benefits from these expenses have been received but payments are not made until the end
of the period.
Adjustment Entry:
Expenses A/c (Say, Salaries A/c) ...Dr.
To Outstanding Expenses A/c (Say Outstanding Salaries A/c)
(Outstanding or Unpaid expenses provided)
33. Incomplete records refer to a situation in which an organization is not using double-entry bookkeeping. Instead, it is using
a more informal accounting system, such as a single-entry system, to maintain a reduced amount of information about its
financial results. So, as per this, the question is to be solved as follows:-

STATEMENT OF AFFAIRS OF X

Liabilities Last year This Year Assets Last Year This Year
T. Creditors 6,270 5,890 Stock 12,350 11,980

Loan from Naresh 5,000 5,000 T. Debtors 5,280 4,560

Capital (Balancing Figure) 18,170 18,230 Shop Fittings 7,250 7,800
Cash in Hand 570 650

Bank Balance 3,990 4,130

29,440 29,120 29,440 29,120

FINAL STATEMENT OF PROFIT OF X

Particulars Amount (₹)

Closing Capital 18,230

Add: Drawings (100 × 52) 5,200

Total 23,430
Less: Opening Capital 18,170

Gross Profit 5,260

Less: Bad Debts = 270
Less: Depreciation = 780

Less: Interest = 5,000 × 5% = 250 1,300

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

26 / 30
myCBSEguide
Net Profit 3,960

STATEMENT OF AFFAIRS OF X

Liabilities ₹ Assets ₹
Creditors 5,890 Stock 11,980

Loan from Naveen (5,000 + 250) 5,250 Debtors (4,560 - 270) 4,290
Capital 18,170 Shop Fittings (7,800 - 780) 7,020
Less: Drawings 5,200 Cash in Hand 650

Add: Net profit 3,960 16,930 Bank Balance 4,130

28,070 28,070

OR

STATEMENT OF PROFIT OR LOSS

for the year ended 31st December, 2013

Particulars Rs. Rs.

Closing Capital 18,700
Add: Drawings (3,500 + 3,500 + 3,600 + 1,200 + 120) 11,920

30,620
Less: Opening Capital (19,200)
Less: Additional Capital (2,040) (21,240)

Profit during the year 9,380

It is noted that when the capital at the beginning of the year and at the close of the year is compared and capital at the end is
more than the capital in the beginning the result is profit.

34. Trading Account

for the year ended December 31, 2022

Dr. Cr.
Amount Amount
Particulars Particulars
(₹) (₹)
To Opening Stock 42,000 By Sales 4,10,000

To Purchases 2,00,000
Less: Purchases Return (8,000) 1,92,000
To Carriage Inwards 5,800

To Wages 44,000
Add: Outstanding 4,000 48,000
To Gross Profit (Balancing Figure) 1,22,200

4,10,000 4,10,000

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

27 / 30
myCBSEguide
Profit and Loss Account
for the year ended December 31, 2022

Dr. Cr.
Amount Amount
Particulars Particulars
(₹) (₹)

To Depreciation: By Gross Profit 1,22,200

Plant 6,000 By Commission 7,500
Furniture 3,500 9,500 Less: Unearned (1,500) 6,000

To Rent 27,500 By Interest on Investment 700

Add: Outstanding 2,500 30,000 Add: Accrued 700 1,400
To Provision for Doubtful Debts 5,000 By Special Rebate 800

To Provision for Discount on Debtors 1,900

To Carriage Outwards 3,200
To insurance 1,500

Less: Prepaid (500) 1,000

To Salaries 33,000
Add: Outstanding 3,000 36,000

To Office Expenses 6,600

Add: Outstanding 600 7,200

To Discount 2,000
To Net Profit (Balancing Figure) 34,600
1,30,400 1,30,400

Balance Sheet
as on December 31, 2022

Amount Amount
Liabilities Assets
(₹) (₹)
Capital 1,50,000 Fixed Assets

Add: Net Profit 34,600 1,84,600 Plant 60,000

Current Liabilities Less: Depreciation 6,000 54,000
Sundry Creditors 20,000 Furniture 20,000

Outstanding Wages 4,000 Less: Depreciation (3,500) 16,500

Outstanding Rent 2,500 Investment 14% 10,000
Outstanding Salaries 3,000 Current Assets

Outstanding Office Expenses 600 Closing Stock 60,000

Unearned Commission 1,500 Accrued Interest on investments 700

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

28 / 30
myCBSEguide
Bank Overdraft 24,000 Prepaid Insurance 500
Cash in Hand 5,400

Sundry Debtors 1,00,000

Less: Provision for Doubtful Debts (5,000)
Less: Provision for Discount on Debtors (1,900) 93,100

2,40,200 2,40,200
Working Note:-
Depreciation of Plant = ₹ 60,000 × 10% = ₹ 6,000
Depreciation of Furniture = ₹ 15,000 × 20% = ₹ 3,000
Depreciation of Furniture-2 = ₹ 5,000 × 20% × = ₹ 500
6

12

Provision for doubtful debts = ₹1,00,000 × 5 % = 5,000

Calculation of Provision for Discount on Debtors = (₹ 1,00,000 - ₹ 5,000) × 2% = 1,900

OR

The Trading and Profit & Loss A/c and Balance Sheet of Mr. Charan Singh will be prepared in the following manner :

Trading and Profit and loss Account

for the year ended 31st March, 2013

Dr Cr

Particulars Amt(₹) Particulars Amt(₹)

To Opening stock 15,000 By Sales 1,20,000
To Purchases 82,000 Less : Sales return (2,000) 1,18,000

Less : Purchase return (1,000) 81,000 By Loss of stock by fire A/c (note 1) 5,000
To Freight and Duty 2,000 By Closing Stock 14,000
To Gross Profit transferred to Profit &
39,000
Loss A/c

1,37,000 1,37,000
By Gross Profit transferred from
To Trade Expenses 800 39,000
Trading A/c
To Carriage Outwards 500 By Rent for premises 1,600

To Depreciation on Furniture and fixtures 250

To Depreciation on Plant and Machinery
20,000 × 20/100 4,000

5,000 × 10/100 × 6/12 500 4,500

To Printing and stationery 400
To Rent, Rates and Taxes 4,600

To Insurance 700
Less : Prepaid Insurance ( 100) 600
To Salaries and Wages 21,300

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

29 / 30
myCBSEguide

To Postage and Telegraphs 800

To Provision for Doubtful
Debts(Closing)(2,000× 5/100) 1,000

Add :Further Bad Debts 600

1,600
Less : Provision for Doubtful
( 800) 800
Debts(Opening)

To Net Profit transferred to Capital A/c 6,050

40,600 40,600

Balance Sheet
as at 31st March,2013

Liabilities Amt(₹) Assets Amt(₹)

Current Liabilities Current Assets

Sundry Creditors 10,000 Cash in Hand 6,200

Capital Cash at Bank 20,500
Opening Balance 80,000 Sundry Debtors 20,600

Add :Net Profit transferred from Profit & Loss

6,050 Less : Further Bad Debts ( 600)
A/c
86,050 20,000
( Less:Provision for Doubtful (
Less : Drawings 80,050 19,000
6,000) Debts 1,000)

Closing Stock 14,000

Insurance Claim (loss by fire) 5,000
Prepaid Insurance 100

Fixed Assets
Furniture and fixtures 5,000
(-)Depreciation ( 250) 4,750

Plant and Machinery 25,000

(
(-)Depreciation 20,500
4,500)
90,050 90,050

Note : Loss of goods by fire is shown in credit side of Trading account. Alternatively, it can be deducted from Purchases as
well.
To practice more questions & prepare well for exams, download myCBSEguide.com App. It provides complete study
material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8.com App to create
similar papers with their own name and logo.

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

30 / 30