Time allowed: 3 hours Maximum Marks: 80

1. There are 29 questions in the question paper.

2. All questions are compulsory

3. Question nos. 1 to 16 carrying 1 mark each.

4. Question nos. 17- 18 are short answer type– I questions carrying 3 marks each.

5. Question nos. 19-24 are short answer type– II questions carrying 4 marks each.

6. Questionnos.25-27 are long answer type– I questions carrying 6 marks each.

7. Questionnos.28-29 are long answer type– II questions carrying 8 marks each.

8. There is no overall choice. However, an internal choice has been provided in 1 question of. three.
marks, 2 questions of four marks, 1 question of six marks and 2 questions of eight marks.

1. Which of the following transactions is not of financial character?

(A) Purchase of asset on credit (B) Purchase of asset for cash (C) Withdrawing of money by
owner for personal use (D) Strike by Employees
2. Ledger is related to :
(A) Provide information to various parties who are interested in business enterprise. (B)
Record transactions in the books. (C) To make summary in the form of financial statements.
(D) To classify the transactions under separate heads in the ledger.
3. Principle of conservation takes into account:
(A) All future profits and losses (B) All future profits and not losses (C) All future losses
and not profit (D) Neither profits nor losses of future
4. Capital invested by owner Show as a liabilities in balance sheet due to
(A) Business Entity Concept (B) Matching Concept (C) Accounting Period Concept (D)
Historical cost concept
5. Cash discount is allowed @10% on Rs.7,750. The amount paid will be
(A) Rs. 7,000 (B) Rs. 6,925 (C) Rs. 6,900 (D) Rs. 6,975
6. Sumit, who owed Rs. 10,000 become insolvent. 70 paise in a rupee was received from his estate.
Bad Debts Account will be debited by:
(A) Rs. 10,000 (B) Rs. 5,000 (C) Rs. 1,500 (D) Rs. 3,000
7. Sunil purchased 1,000 add Ger Roller Pens@ Rs.50 each less Trade Discount of 20%.
Purchase Account will be debited by:
(A) Rs.50,000 (B) Rs.40,000 (C) Rs.45,000 (D) Rs.60,000
8. Outstanding Rent is a......................... account.
(A) Personal (B) Nominal (C) Real (D) None of these
9. Repair expenses paid on purchase of an old machine debited to .
(A) Repair Account (B) Machinery Account (C) Misc Expenses Account (D) None of
these
10. According to which concept the same accounting method should be used each year.
(A) Prudence (B) Materiality (C) Consistency (D) Historical cost concept
11. Where amount of Trade discount given on sale will be recorded?
(A) Journal Book (B) Cash Book (C) Sales Book (D) None of these
12. The differences between the cash-book and bank pass-book is caused by:
A. Timing differences on recording of the transactions. B. Errors made by the business C.
Errors made by the bank D. All of the above
13. Bank reconciliation statement is prepared to reconcile and balances.
A. Cash Book; Pass Book B. Cash book; Cash Account C. Bank Account; Cash Book D.
Cash Account; Passbook
14. The process of transferring the transactions from the Journal to the Ledger is known as:
(A) Balancing (B) Costing (C) Journlising (D) Posting
15. Closing Stock is Rs. 10,000. Journalise in the books of account by crediting
(A) Purchase Account (B) Sales Account (C) Trading Account (D) None of these
16. Which of the following accounts has a credit balance?
(A) Discount Received (B) Wages (C) Bank (D) Discount Allowed
17. Explain Debit note and Credit note. OR
State the meaning of a voucher and types of vouchers.
18. What is matching concept? Why should a business concern follow this concept? Discuss.
19. Mr. A of Baroda purchased goods of Rs. 50,000 from Mr. B of Surat and Rs. 1,20,000 From Mr. X
of Jaipur. Mr.A sold goods costing of 1, 30,000 to a businessman in Gujarat for Rs. 1,50,000. Rate
of IGST is 10%, Rate of SGST is 5 % and Rate of CGST is 5%.Based on the above information
you are required to answer the following questions.
1. Amount of IGST charged by Mr. A
(A) 12000 (B) 17000 (C) Nil (D) 13000
2. Amount of IGST charged by Mr. X
(A) 22000 (B) 17000 (C) 3000 (D) 12000
3. Amount of SGST charged by Mr. A
(A) 15000 (B) 9000 (C) 7500 (D) 6500
4. Amount of CGST charged by Mr. A
 (A) 7500 (B) 6500 (C) 15000 (D) 130000
20. Following are the transactions of Mr. Saurav, Delhi:
He started his business with Cash Rs.10,000; Bank Rs.5,000; Machinery Rs.50,000 and
Stock Rs.5,000. Stock of Rs.500 lost by fire. Cash Sales Rs. 2,000,Purchase of Furniture by
cheque Rs.2,000 Mr. Saurav maintains Principal as well as subsidiaries books of accounts
including Cash Book, Purchase Book, Sales Book, Purchase Return Book, Sales Return Book
and Journal Proper. Answer the following questions from the above case:
1. Mr. Sourav started business with Machinery, where the transaction of machinery recorded.
(A) Cash Book (B) Journal Proper (C) Purchase Book (D) Sales Book

2. He Purchase furniture by cheque, where it will be recorded in:

(A) Journal Proper. (B) Cheque Book. (C) Purchase Book. (D) Cash Book

3. Mr. Saurav has no need to prepare two accounts if he maintains double column Cash Book.
Which two

accounts he has no need to prepare .

(A) Cash, Bank. (B) Bank, Cheque in hand. (C) Bank Overdraft, Bank. (D) Machinery

4. In which side of Cash Book does Cash Sales recorded:

(A) Credit. (B) Debit. (C) Not recorded in Cash Book. (D) None of these

21. Read the following hypothetical text and answer the given questions:
Sujan initiated her startup Ishika Ltd. in 2018. On 31St March, 2022, She was going through her
Cash book and Pass Book. She found out that the pass book showed a debit balance of Rs. 7,500
which was different from her cash book Bank column balance. So, she decided to prepare a Bank
Reconciliation statement to reconcile both the balances from the following particulars:
 Cheques paid in for collection amounted to Rs. 20,600 but cheques of Rs.7,800 were credited
on 3rd April, 2022.
 A cheque for Rs. 1,000 debited in the cash book was omitted to be banked.
 Cheques amounting to Rs. 7,800 were drawn on 27th March, of which cheques of Rs. 2,400
were cashed upto 31st march, 2022.
 A cheque of Rs. 800 was banked and credited, but omitted to be recorded in the Cash Book.
 Bank charged interest on overdraft Rs, 650.
Based on above information you are required to answer the following questions.
1. How would you dealt with the bank interest charged by bank on overdraft?
A. Plus Rs. 650. B. Plus Rs. 1,300 C. Not be recorded D. None of the above.
2. A cheque of Rs. 800 was banked and credited, but omitted to be recorded in the Cash Book. in
Bank Reconciliation Statement, Sujan should:
 A. Ignore it B. Record it as minus Rs.800 C. Record it as plus Rs. 800 D. Either A or C
3. A cheque for Rs. 1,000 debited in the cash book was omitted to be banked. This error had
not affected the balances so it should be ignored- says Sujan. Sujanis-
A. Right B. No she is wrong, she should minus it from passbook balance C. No she is
wrong, she should plus it in passbook balance D. Cannot be determined
4. Cheques amounting to Rs. 7,800 were drawn on 27th March, of which cheques of Rs. 2,400
were cashed upto 31st march, 2022. This transaction should be recorded as-
A. Minus Rs. 7,800 B. Minus Rs. 2,400 C. Minus Rs. 5,400 D. Minus Rs. 10,200
22. Give one example of each of the following transactions:
(i) Increase in an asset and a liability. (ii) Decrease in an asset and a liability. (iii) Increase
in assets and capital. (iv) Decrease in assets and capital. OR
What entry (debit or credit) would you make to:
(a) increase revenue (b) decrease in expense, (c) record drawings (d) record the fresh
capital introduced by the owner.
23. On which side the increase in the following accounts will be recorded? Also mention the nature
of account:−
1. Furniture 2. Rent Paid 3. Commission Received 4. Salary Paid OR
Open 'T' shape account for Machinery and write the following on the proper side:
1. Machinery purchased for 5,00,000
2. Machinery sold 1,20,000
3. Machinery discarded. 50,000
4. New Machinery purchased. 2,00,000
5. Machinery destroyed. 40,000
24. Accounting information refers to financial statements. The information provided by these
statements can be categorised into various types. Briefly describe them
25. Mr. Gopal started business for buying and selling of readymade garments with ₹ 8,00,000 as an
initial investment. Out of this he paid ₹ 4,00,000 for the purchase of garments and ₹ 50,000 for
furniture and ₹ 50,000 for computers and the remaining amount was deposited into the bank. He
sold some of the ladies and kids garments for ₹ 3,00,000 for cash and some garments for ₹
1,50,000 on credit to Mr. Rajesh.Subsequently, he bought men's garments of ₹ 2,00,000 from Mr.
Satish. In the first week of the next month, a fire broke out in his office and stock of garments
worth ₹ 1,00,000 was destroyed. Later on, some garments which cost ₹ 1,20,000 were sold for
₹ 1,30,000. Expenses paid during the same period were ₹ 15,000. Mr. Gopal withdrew ₹ 20,000
from business for his domestic use. From the above, answer the following:
(i) What is the amount of capital with which Mr. Gopal started the business?
(ii) What fixed assets did he buy?
(iii) What is the value of the goods purchased?
(iv) Who is the creditor and state the amount payable to him?
 (v) Who is the debtor and what is the amount receivable from him?
(vi) What is the total amount of expenses?
26. Ram and Shyam are two friends who both have just attended their first class of accountancy. The
friends were intrigued by the different branches of accounting and their widespread application.
Ram personally liked the branch of accounting in which fund flow statement and budgetary
control is used and that branch helps in planning and controlling of operations. As the concept
of accounting was further explored, they began discussing the different users of accounting. Ram
said that he finds it interesting that even the employees demand information relating to business.
Shyam said he finds more interesting the fact that even competitors want information on the
relative strengths and weaknesses of the enterprise and for making comparisons, Shyam further
said that even accounting helps owners to compare one year’s costs, expenses, and sales with
those of other years. However, they were quite shocked by the fact that the management-worker
relations were not taken into consideration in the accounting. Meanwhile, Ram and Shyam had
an argument at the end of the discussion. Ram was saying that accounting is an art whereas
Shyam was saying that accounting is a science. Their teacher came in and said something to
them which made them stop the argument.
1. What might their teacher have said to solve their argument?
(a) Ram, please understand, Shyamis correct in this situation (b) Shyam, please understand,
Ram is correct. In. this situation.(c) Both are correct (d) None is correct
2. Shyam talked about which type of users of accounting?
(a) Internal users (b) External users (c) Both (a) and (b) (d) None of these.
3. Which limitation of accounting is being talked about by them?
(a) Influenced by personal judgment (b) Omission of qualitative information. (c)
Incomplete information (d) Based on historical costs
4. Which advantage of accounting is being talked about by Shyamin
(a) Provides information regarding profit and loss (b) Provides completes and systematic
record. (c) Enables comparative study (d) Evidence in legal matters
5. Which branch of accounting is liked by Ram?
(a) Financial accounting (b) Cost accounting (c) Management accounting (d) Tax
accounting
6. Shyam further said that even accounting helps owners to compare one year’s costs, expenses ,
and sales those of other years. Which step of accounting process is discussed in above line:
(a) Recording. (b) classifying. (c) identification. (d) analyze
27. What will be the effect of the following on the Accounting Equation?
(i) Harish started business with cash ₹ 1,80,000.
(ii)Purchased goods for cash ₹ 60,000 and on credit ₹ 30,000.
(iii) Sold goods for cash ₹ 40,000; costing ₹ 24,000.
(iv) Rent paid ₹ 5,000; and rent outstanding ₹ 2,000.
 (v) Sold goodson credit ₹ 50,000 (costing ₹ 38,000).
(vi) Salary paid in advance ₹ 3,000.
or
Verma Bros. Kolkata carry on business as wholesale cloth dealer. From the following,
writeup their Purchases Book for January, 2019:
Jan. 3 Purchased from M/s. Birla Mills, Kolkata:
100 pieces long cloth @ ₹ 800 each
50 pieces shirting @ ₹ 500 each
CGST and SGST payable @ 6% each
Jan 5. Purchased for cash from M/s. Ambika Mills, Ahmedabad:
50 pieces muslin @ ₹ 1,000 each
IGST payable @ 12%
Jan. 8. Purchased from M/s. Arvind Mills, Ahmedabad:
20 pieces coating @ ₹ 2,000 each
10 pieces shirting @ ₹ 500 each IGST payable @ 12%
Jan 12. Purchased from M/s. Bharat Typewriters Ltd. Kolkata:
5 typewriters @ ₹ 1,400 each
CGST and SGST payable @ 6% each
Prepare purchase book.

28. Prepare two column cash book from the following transactions for the month of April, 2013
2013 Amt (Rs.)
Apr 1 Cash balance 25,000
Apr 2 Paid to Y in full settlement of Rs. 5,000 4,750
Apr 4 Received from Z, allowing him discount of Rs. 400 9,600
Apr 7 Cash purchases 10,000
Apr11 Cash sales 15,000
Apr 15 Received from X, allowed him discount Rs. 500 19,500
Apr 21 Paid to W against his duesof Rs. 7,500 7,000
Apr 25 Paid into bank 20,000
Apr 30 Withdrew for personal use 5,000
Apr 30 Paid salary and wages 15,000
OR
Journalise the following:−
2017
March 4 Purchased building for ₹ 1,50,000 and incurred expenses of ₹ 10,000 on its purchase.
March 10 Satish who owed us ₹ 20,000 is declared insolvent and 60 paise per ₹ is received
from his estate.
 March 15 Paid ₹ 500 for repairing the office furniture.
March 18 Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 2,000.
March 20 Purchased the following items for business: Iron Safe ₹ 15,000; Filing Cabinet ₹
5,000; Computer ₹
12,000; Postage ₹ 200 and Stationery ₹ 150.
March 28 Paid electricity charges ₹ 1,600.
March 31 Charge depreciation on Machinery @ 10% for one year (Machinery ₹ 75,000).
March 31 Outstanding wages at the end of the year ₹ 6,000.
29. Prepare Bank Reconciliation statement on 31st March 2018 from the following particulars:
i. R’s overdraft as per the Pass Book Rs.12,000 as on 31st March
ii. On 30th March, Cheques had been issued for Rs.70,000 of which cheques worth Rs.3,000
only had been encashed up to 31st March.
iii. Cheques amounting to Rs.3,500 had been paid into the bank for collection but of this only
Rs.500 had been credited in the Pass Book.
iv. Bank has charged Rs.500 as interest on overdraft and the intimation of which has been
received on 2nd April 2018.
v. Bank Pass Book shows credit for Rs.1,000 representing Rs.400 Paid by debtor of R direct
into the Bank and Rs.600 collected directly by Bank in respect of interest on R’s investment. R
had no knowledge of these items.
vi. A cheque for Rs.200 has been debited in bank column of Cash Book by R, but it was not
sent to Bank at all.
vii. Passbook shows a debt of Rs.1,000 for bank charges and credit of Rs.2,000 as interest