St.

Xavier’s Collegiate School, Kolkata

Class : 11 Date : 24-09-2021

Instructions :
• Make sure you write your name, class, section, roll no, subject and page no (in advance) on all sheets that
you submit.
• Ensure that the quality of the image/pdf of the answer script submitted is easily readable.

Part I
Question 1 Answer all questions: [10 x 2 = 20]
(i) Why do we record assets in our books of accounts at cost or net realizable value, whichever is less?
(ii) Under what conditions do we record closing stock in the Trial balance.
(iii) The accounting equation holds true after every transaction. Illustrate with the help of examples.
(iii) Under what conditions would you credit Purchases a/c in the Journal.
(iv) Real Accounts will always have a debit balance. Justify either for or against.
(v) What is use of the voucher number column, and where would you find it?
(vi) How is posting from an opening journal entry different from the posting from all other journal entries?
(vii) What do you understand of the imprest system of the Petty Cash Book?
(viii) Can a suspense account be recorded in the Cash Book? If yes, explain.
(ix) What do you understand of a bank overdraft? How would you classify it as an account?
(x) What is scrap value? How is it used to determine the rate of depreciation under the two methods?
Part II
(Answer any five questions)
Question 2 Enter the following transactions in the Journal of Sachin for the month of April 2021. [12]
Apr 1 The following balances appeared in his books:
Assets: Cash Rs 150000; Bank Balance Rs 50000; Stock Rs 400000; Furniture Rs 36000; Debtors Rs 240000
Liabilities: Bank Loan Rs 100000; Creditors Rs 125000
Apr 4 Purchased goods Rs 140000, half of which was on credit.
Apr 7 Purchased a building for Rs 200000 by cheque, and paid 2% as brokerage and Rs 24000 as registration by cash.
Apr 12 Sold goods to Arun for Rs 200000 and received only Rs 50000 by cheque at the time.
Apr 14 Received a cheque to clear the balance receivable on Apr 1 and allowed a 5% discount.
Apr 16 Purchased stationery Rs 2000
Apr 17 Paid insurance on building Rs 2000 and life insurance of Rs 1000.
Apr 20 Cleared half our dues to Creditors, availing a discount of 5%.
Apr 22 Paid rent for three months Rs 9000.
Apr 25 Gave goods as free samples Rs 5000 and placed an advertisement in the newspaper Rs 1000.
Apr 28 Arun became insolvent and a dividend of 80 paisa on his estate was received.
Apr 30 Rent for letting a part of the building Rs 5000 was cleared by the tenant.

Question 3 For the entries of Question 2, Prepare the following ledger accounts. [12]
(i) Cash Account (ii) Bank Account
(iii) Debtors Account (iv) Creditors Account

Question 4 R and Bros has an overdraft limit of Rs 100000. Prepare his Cash Book for the month of March 2021. [12]
Mar 1 Opening balance: Cash Rs 12000; Bank Overdraft Rs 4000.
Mar 2 Cashed a cheque Rs 15000 and paid salaries for the month of February Rs 12500 in cash.
Mar 4 Direct deposit by Mr Seth Rs 3000, discount received by him Rs 100.
Mar 10 Received an outstation cheque of Rs 9500 after allowing a discount of 5%. The bank charged Rs 50 thereon.
Mar 11 Gobind settled his account of Rs 6000 by cheque getting a discount of 5% which was deposited the next day.
Mar 16 Settled Ravi’s account of Rs 8200 with a cheque of Rs 6000 and cash Rs 2000.
Mar 17 Withdrew Rs 15000 from the bank to buy equipment Rs 12000, the balance being taken by the proprietor.
Mar 18 Sold Goods to Sanjay on credit Rs 8000.
Mar 19 Sanjay returned defective goods Rs 2000 and cleared his account by cheque getting a 2% discount.
Mar 22 Sanjay’s cheque was dishonoured and the bank charged Rs 50.
Mar 26 The bank collected interest on securities Rs 500
Mar 31 Withdrew from bank to the maximum limit.

Question 5 (a) The following Trial Balance is erroneous. You are required to prepare the correct Trial Balance [8+4]
Particulars Debit Particulars Credit
Opening Stock 120000 Sales 3300000
Cost of Goods Sold 2540000 Closing Stock 530000
Purchases 360000 Debtors 360000
Office Expenses 120000 Creditors 250000
Selling Expenses 60000
Assets 500000
Capital 650000
Cash 20000
Bank 70000
Total 4440000 Total 4440000
(b) Journalize the following transactions. The rate of CGST and SGST is 6% each in all cases.
(i) Purchased Goods for Rs 20000 at 10% Trade Discount.
(ii) Returned 20% of the above goods as they were defective.
(iii) Sold Goods Rs 10000.
(iv) Goods given as charity were worth Rs 2000 in the market. (The rate of gross profit was 25%)

Question 6 On 30th April 2021, the bank account of Dealer’s Ltd. was overdrawn to the extent of Rs 1062 as per his
Cash Book. An examination of the Cash Book and the Bank Statement revealed the following:
(i) In carrying forward the page totals of the cash book, the total credit side on one page amounting to Rs 10502 has
been carried forward as Rs 10052.
(ii) A hire purchase payment of Rs 91 made by standing instructions has not been entered in the cash book.
(iii) A bank deposit of Rs 698 made on 30th April was recorded in the bank statement in the month of May.
(iv) A cheque payment of Rs 94 has been entered twice in the Cash Book.
(v) Bank charges of Rs 57 has not been entered in the Cash Book.
(vi) On 29th April the bank had credited an amount of Rs 341 received by a trader’s credit but the advice was not
received by Dealer’s Ltd.
(vii) The bank had credited an amount of Rs 1560 to Dealer’s Ltd. in error.
(viii) A cheque sent to the bank in April for Rs 2000 has been credited by the bank only in April. This cheque has been
recorded in the cash column of the Cash Book.
(ix) Dealer’s Ltd. had discounted a bill for Rs 100 with the bank. This bill was dishonoured in April, but no entry was
made by Dealer’s Ltd.
(x) Certain cheques were issued prior to 30th April for Rs 2612. These were not issued to the bank for payment.
Question 7 [12]

On 1st April 2011 a machine was bought by Mr Ram for Rs 50000. On 1st October 2012 additions were made to the
extent of Rs 10000. On 1st July 2013 further additions were made to the extent of Rs 6400. On 30th September 2014,
machinery which was originally bought for Rs 8000 on 1st April 2011 was sold for Rs 6000. Depreciation is charged at
10% p.a. on the original cost.

Show the Machinery Account for the first four accounting years.

Question 8 [8+4]

(a) For the following transactions, prepare a Petty Cash Book of Mr Gopal with Postage and Fax, Printing and
Stationery, Travelling Expenses, Cartage and Carriage and Sundry Expenses as its Analytical Columns. Then imprest
amount is Rs 3000 per month.
May 1 Received from Head Cashier Rs 2710.
May 1 Paid for postage Rs 100, carriage Rs 150 and stationery Rs 200.
May 3 Paid chowkidar Rs 300 and for soaps Rs 100.
May 5 Paid for telephone calls Rs 50, carriage Rs 100 and bus fare Rs 150.
May 7 Travelling expenses was Rs 100 and printing charges was Rs 150
May 9 Paid for coolie charges Rs 80, repair charges Rs 150 and postage Rs 50.
May 13 Paid for fax Rs 40 and bus fare Rs 60.
May 16 Purchased a note book Rs 70 and paid for repairs Rs 70.
May 22 Stationery cost was Rs 50
May 29 Bought envelopes Rs 70 and paid taxi fare Rs 70.

(b) Prepare a Purchase Day Book from the following transactions of Gupta Electric Stores.
Jan 4 Purchased from Modern Dealers on credit (20% Trade Discount):
100 table fans at Rs 300 each
50 tubelights at Rs 25 each
40 electric irons at Rs 60 each
Jan 11 Purchased from Janta Electric Store on credit (10% Trade Discount):
20 ceiling fans at Rs 500 each
20 heaters at Rs 80 each
20 mixers at Rs 1000 each
Jan 14 Purchased from Nav Hind Traders on credit:
20 dozen bulbs at Rs 50 per dozen
10 dozen lamps at Rs 40 per dozen
Jan 25 Purchased from Ashoka Electric Appliances:
5 washing machines at Rs 1200 each and paid in cash
Jan 31 Purchased from Bharat Furniture House on credit:
8 chairs at Rs 80 each
5 tables at Rs 500 each