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#GrowWithGreen
Grade XIAccountancy(Mock Test)
Q.1 Outstanding payment of honorarium is shown on the
I. Debit side of Receipts & Payments A/c
II. Credit side of Receipts & Payments A/c
III. Liabilities side of the Balance Sheet
IV. Debit side of Income & Expenditure A/c
Which of the following alternatives correctly describes its treatment? [1 mark]
a. II & IV
b. I, III & IV
c. III & IV
d. Only IV
Q.2 Write any one limitation of Single Entry System. [1 mark]
Q.3 Which of the following alternatives is an example of profit for a firm? [1 mark]
a. Compensation received from winning a court case
b. Excess of receipts over the book value of fixed asset
c. Excess of revenue over its related expenses during an accounting year
d. All of the above
Q.4 Ascertain the amount to be recorded in the Income and Expenditure A/c from the data given
below:
Receipts from annual function Rs 3,500
Annual function Expenses Rs 4,500. [1 mark]
a. Rs 500; Debit side
b. Rs 1,000; Credit side
c. Rs 1,000; Debit side
d. Rs 8,000; Debit side
Q.5 What do you understand by Customised Accounting Software? [1 mark]
Q.6 Subscription receivable at the end of the year is _____for the organisation. [1 mark]
a) an expense
b) an income
c) an asset
d) a liability
Q.7 State whether the following statements are true or false? [3 marks]
a) According to the Revenue Recognition Concept, cash received from debtors is considered as
revenue.
b) An asset is recorded at the price paid to acquire it.
c) According to the Full Disclosure Convention, business has indefinite life.
Q.8 Differentiate between Accounting and Accountancy on the following basis. [3 marks]
a) Purpose
b) Dependence
c) Scope
Q.9 As per the Matching Concept, which of the following transactions will be considered as
revenue expenditure? [3 marks]
(a) Wages due but not paid Rs 200
(b) Wages paid in advance for the next year Rs 100
(c) Depreciation charged on machinery Rs 400
(d) Purchase of plant for Rs 1,00,000
(e) Payment to creditors Rs 2,000
(f) Cash withdrawn Rs 1,000 for personal use
(g) Cash withdrawn from bank Rs 500
(h) Interest Rs 300 paid on loan for the current year
Q.10 Prepare Profit and Loss Account for the year 2017. [3 marks]
Particulars Rs Particulars Rs
Gross Profit 32,000 Loss on Exchange 150
Salaries and Wages 5,000 Safe of Old Newspaper 200
Rent 2,000 Sale of Machinery 5,000
Rent from Tenant 3,000 Stationery 200
Interest on Investment 500 Depreciation on Machinery 500
Interest on Loan 800 Provision for Doubtful Debt 600
Interest on Capital 400 Manager’s Commission 50
Interest on Drawing 200
Commission Paid 500
Commission Payable 100
Q.11 List any three advantages of readymade software. [3 marks]
Q.12 “Trial Balance is a conclusive proof of the accuracy of the books of accounts.” Comment
[3 marks]
Q.13 Name any four external users of accounting information and briefly explain their interest.
[4 marks]
Q.14 Prepare Two Column Cash Book of Mr. Deewan for April, 2017. [4 marks]
Rs
Apr.01 Cash in hand 500
Apr.01 Bank overdraft 1,200
Apr.02 Additional capital introduced 5,000
Apr.05 Cash sales 2,000
Apr.07 Cash purchases 3,000
Apr.10 Sold goods to Amrita 2,000
Apr.12 Received cheque from Amrita 1950
Discount allowed 50
Apr.15 Amrita’s cheque deposited into bank
Apr.18 With drawn from bank 300
Apr.20 Paid wages 800
Apr.22 Paid to Mr. B 1,500
Q.15 On December 31, 2017, Shyam Babu’s Pass Book showed an overdraft balance of Rs
7,200. On comparing with the Bank Column of the Cash Book, the following differences were
found.
a) Out of the two cheques of Rs 2,000 and Rs 1,200 deposited into the bank, the first cheque got
cleared in January 2018 but the second cheque was yet not cleared.
b) Out of the three cheques (totaling Rs 12,000), a cheque of Rs 5,000 was presented for
payment in the month of January 2018.
c) Bank debited interest of Rs 300, which was not recorded in the Cash Book.
d) A cheque of Rs 200 debited in the Cash Column of the Cash Book and credited in the Pass
Book in the month of December 2017.
Prepare a Bank Reconciliation Statement. [4 marks]
Q.16 Ram Kapur keeps his books on Single Entry System on April 01, 2017 his capital balance
is Rs 1,75,000. On March 31, 2018, accounts are showing the following balances.
Machinery Rs 20,000 Sundry Debtors Rs 45,000, Stock of Goods Rs 41,000, Cash in Hand Rs
15,000, Bills Receivable Rs 42,000, Bank (Cr.) Rs 4,500 and Creditors Rs 15,000.
Mr. Kapur deposited Rs 10,000 in National Savings Certificate in the name of his wife and
purchased an Office Furniture for Rs 2,500.
Interest on Capital is to be provided at 10% on opening Capital Balance.
Provide 2% as Provision for bad and doubtful debts.
You are required to prepare Statement of Profit and Loss for Mar 31, 2018 by following the
Alternative Method. [4 marks]
Q.17 The following data related to bats and balls of Delhi Sports Club. [4 marks]
Particulars Rs
Payment made for bats and balls during the year 2017 80,000
Creditors for bats and balls on January 01, 2017 20,000
Creditors for bats and balls on December 31, 2017 30,000
Stock of bats and balls on January 01, 2017 10,000
Stock of bats and ball on December 31, 2017 12,000
Ascertain the amount of bats and balls purchased and the amount of bats and balls to be shown in
the Income and Expenditure Account for the year ended 2017.
Q.18 What is meant by errors in accounting? Explain any three types of clerical errors. [6 marks]
Q.19 On May 01, 2017, A sold goods to B for 5,000 and on the same date A drew a three months
bill for the same amount on B. B accepted the bill and returned it to A. On May 04, 2017, A
discounted the bill with the bank at 12% p.a. On the due date, the bill dishonoured and bank paid
Rs 150 for noting charges. B paid immediately Rs 2,000 plus noting charges and got another bill
drawn together with interest 200 for another three months. On the due date B became insolvent
and nothing was recovered from his official receiver.
Pass the necessary Journal entries in the books of A and B. [6 marks]
Q.20 On January 01, 2009, a machinery was purchased for Rs 1,20,000 and another machine was
purchased on October 01, 2009 for Rs 50,000. On January 01, 2011, 1/3rd of the machine
purchased on January 01, 2009 was sold for Rs 25,000 and on the same date another machine
was purchased for Rs 1,00,000. Depreciation is charged at 10% p.a. on the original cost of the
machinery. Prepare a Machinery Account for three years. Accounts are closed on December 31,
every year. [6 marks]
Q.21 Pass the necessary rectification entries for the errors given below. [6 marks]
(1) Purchase of Rs 1,500 from Ramesh was wrongly passed through Sales Book.
(2) Sales day book on a folio was carried forward to next page as Rs 560 instead of Rs 650.
(3) Cash of Rs 800 paid to Pallav, but only Rs 80 were debited to his Account.
(4) Goods costing Rs 2,500 having the sale value of Rs 2,800 were returned by a customer
were not recorded.
(5) One item of Rs 250 relating to Prepaid Insurance Account was omitted to be brought
forward from the books of previous year.
(6) Purchases Return Book undercast by Rs 50.
Q.22 What is a computer? How computer is useful in accounting. [6 marks]
Q.23 The Trial Balance of Mr. Somnath is given below.
Particulars
Debit
Amount
(Rs)
Particulars
Credit
Amount
(Rs)
Bills Receivables 3,000 Sales 70,000
Debtors 6,000 Bills Payable 5,600
Pant & Machinery 30,000 Creditors 32,850
Land & Building 20,000 Bank Overdraft 4,000
Stock (Opening) 4,500 Capital 22,750
Purchases 40,000 Discount on issue of shares 2,000
Wages 3,000 Mortgage 1,500
Salaries 2,400
Royalty on Sales 2,000
Export Duty 1.500
Carriage 1,200
Drawings 20,000
Rent 1,100
Additional Information:
a) Building valued at Rs 16,250 and Machinery will be shown at 90% in the balance sheet.
b) Stock at the end valued at Rs 5,000. It includes goods costing Rs 500 which were sold and
recorded as Sales but not delivered to the customer.
c) Provide 10% Manager Commission on net profit after charging such commission.
d) 2% commission to be provided to salesmen on sales and Rent is paid for 11 months.
f) Ramesh who owed Rs 200 to firm and included in the list of debtors became insolvent and
nothing was recovered from his estate.
Prepare the Trading Account, Profit and Loss Account and the Balance Sheet. [8 marks]
Q.24 From the following Receipts and Payment Account of Youth Club, prepare Income and
Expenditure Account and Balance Sheet for the year ended 31 March, 2014. [8 marks]
Youth Club
Receipts and Payments Account
for the year ending March 31, 2014
Dr. Cr.
Receipts Amount
(Rs) Payments Amount (Rs)
Balance b/d 550 Balance b/d 3,400
Sale of Billiard Table (at book value) 4,000 Consumables purchased 500
Donation for Building 35,000 Salaries 2,500
Subscription Tournament Fees 3,400
2012-13 1,000 Advance against construction of
Building
10,000
2013-14 16,000 Sports Material purchased 13,500
2014-15 1,000 Municipal Taxes (Rs 2,000 for
2012-13)
4,500
2015-16 2,000 20,000 Balance c/d
Interest on investments (for 6 months) 5,000 Cash 33,700
Legacies 12,000 Bank 5,050 38,750
76,550 76,550
Additional Information:
1) Subscription amounting to Rs 1,400 were outstanding on 31.03.13 and Rs 3,500 are still
outstanding for 2013-14.
2) Depreciation is charged on Fixed Assets @ 10% p.a.
3) Position of some Assets and Liabilities as on 31.03.13 and on 31.03, 2014 were as follows:
Particulars March
31, 2013
March
31, 2014
Advance Subscription Received 2,000 3,000
Furniture 40,000
Stock of Sports Material 10,800 21,500
Building 45,000
Billiard Table 12,000 8,000
Stock of Consumables 500 200
A.1 Receipts and Payments Account is a summary of cash and bank transactions of the NPO, so,
when honorarium is outstanding, it will not appear in the Receipts and Payments Account. We
know, outstanding expenses are recorded on the Expenditure side (Debit side) of Income and
Expenditure Account and Liabilities side of the Balance Sheet.
Hence, the correct answer is option (c).
A.2 Single Entry System is an incomplete and unscientific system because in this system, both
the aspects (debit and credit) of transaction are not taken while recording in the books of
account.
A.3 The excess of revenues of a period over its related expenses during an accounting year is
profit. But a profit that arises from the events that are incidental to business such as sale of fixed
assets, winning a court case, etc is called gain.
Hence, the correct answer is option (c).
A.4 Annual Function expenses are more than the receipts from annual function by Rs 1,000
(4,500 – 3,500).
So, the difference will appear on the Debit side i.e. Expenditure side of the Income and
Expenditure Account.
Hence, the correct answer is option (c).
A.5 Customised Accounting Software means altering the readymade software available in the
market as per the specific needs of the users.
A.6 Subscription receivable at the end of the year (i.e. outstanding subscription at the end of the
year) is an asset for the organisation because it is an income which is due but still not received.
Hence, the correct answer is option (c).
A.7 a) False, as according to the Revenue Recognition Concept, revenue is recognised when
sales take place and not when actual amount is received from the debtors for sales.
b) True, as according to the Cost Concept, an asset is recorded in the books of accounts at its
acquisition price, i.e. the price paid to acquire it and not the (current) market price of the asset.
c) False, as according to the Going Concern Concept, business has indefinite life. No matter
whether the owners of the business are alive or dead, business will continue.
A.8
Basis of
Distinction Accounting Accountancy
Purpose Main purpose is to find out the net
results and financial status of the
business and communicating the
results to its various users.
Main purpose of accountancy
includes decision making
function.
Dependence Accounting depends on the
information provided by book
keeping.
Accountancy independently
guides both book-keeping and
accounting.
Scope Accounting is narrow in scope. It
starts where book keeping ends.
It is wider in scope because it
explains the principles and
techniques that are required to be
followed in accounting and
includes both accounting and
book keeping.
A.9 According to the Matching Concept, the following transactions will be considered as
revenue expenditure.
(a) Wages due but not paid Rs 200
(c) Depreciation charged on machinery Rs 400
(h) Interest Rs 300 paid on loan for the current year
A.10
Profit and Loss Account
Dr. Cr.
Particulars
Amount
Rs Particulars
Amount
Rs
Salaries and Wages 5,000 Gross Profit 32,000
Rent 2,000 Rent from Tenant 3,000
Interest on Loan 800 Interest on Investment 500
Interest on Capital 400 Interest on Drawings 200
Commission paid 500 Sale of Old Newspaper 200
Loss on Exchange 150
Stationery 200
Depreciation on Machinery 500
Manager‟s Commission 50
Net Profit 26,300
35,900 35,900
A.11 Readymade software is the software that is designed and developed not for a specific
purpose but for the purpose in general. The following are the various advantage of readymade
software.
(i) The cost of readymade software is comparatively low. Thus, it is economical.
(ii) It is user-friendly and easier to implement and learn.
(iii) Training provision from vendor is available.
A.12 Trial Balance is a statement prepared with the debit and credit balances of ledger accounts
to test the arithmetical accuracy of books. If both the debit and credit column are equal, it is
assumed that books of accounts are arithmetically correct. But it should never be taken as
conclusive proof of accuracy of books of accounts as only those errors that affect the agreement
of a trial balance are detected. Such errors are generally one sided errors as they affect only one
side of the trial balance and due to this the one of the side of the trial balance does not match
with the other side, hence, these are detected and then rectified. However, certain errors like
errors of principle that do not affect the arithmetic accuracy of trial balance may be present.
These are two sided errors wrongly recorded in the books of accounts. In case of Errors of
Principle, Compensating errors and complete omission of transaction, the trial balance will
match but in reality there is an undetected error.
A.13 External users of information are the individual or the organisations that have direct or
indirect interest in the business firm; however, are not a part of management. They do not have
direct access to the internal data of the firm and uses published data or reports like profit and loss
accounts, balance sheets, annual reports, press releases, etc. Some examples of external users are
government, tax authorities, labour unions, etc.
1. Banks and other financial institutions– Banks provide finance in form of loans and
advances to various businesses. Thus, they need information regarding liquidity,
creditworthiness, solvency and profitability to advance loans.
2. Creditors– These are those individuals and organisations to whom a business owes money on
account of credit purchases of goods and receiving services; hence, the creditors require
information about credit worthiness of the business.
3. Investors and potential investors– They invest or plan to invest in the business. Hence, in
order to assess the viability and prospectus of their investment, creditors need information about
profitability and solvency of the business.
4. Tax Authorities- They need accounting information to know whether the amount of sales,
production, profits, revenues, etc. are correctly calculated and shown unambiguously in the
books. This is very important so that appropriate and correct tax rates (of taxes such as sales tax,
excise duty, etc.) are levied on the business.
A.14
Books of Mr. Deewan
Cash Book
Dr. Cr.
Date Particulars L.F. Cash
Rs
Bank
Rs Date Particulars L.F. Cash
Rs
Bank
Rs
2017 2017
Apr.01 Balance B/d 500 Apr.01 Balance b/d 1,200
(Overdraft)
Apr.02 Capital 5,000 Apr.07 Purchases 3,000
Apr.05 Sales 2,000 Apr.15 Bank (c) 1,950
Apr.12 Amrita 1,950 Apr.18 Cash (c) 300
Apr.15 Cash (c) 1,950 Apr.20 Wages 800
Apr.18 Bank (c) 300 Apr.22 Mr. B 1,500
Apr.30 Balance c/d 2,500 450
9,750 1,950 9,750 1,950
A.15
Bank Reconciliation Statement of Shyam Babu as on December 31, 2017
Particulars (+)
items
(–)
items
Over draft as per the Pass Book 7,200
a) Cheques deposited but not cleared in December 3,200
b) Cheques issued but not presented for payment in
December
5,000
c) Interest on overdraft charged by the bank 300
d) Cheques wrongly debited in the Cash Column of the
Cash Book but cleared in December
200
Overdraft as per the Cash Book 8,900
12,400 12,400
A.16
Statement of Profit and Loss as on March 31, 2018
Particulars Amount
(Rs)
Capital at the end as on March 01, 2018 1,46,000
Add: Drawings 10,000
1,56,000
Less: Capital in the beginning as on April 01, 2017 1,75,000
Loss incurred before adjustments 19,000
Less: Interest on Capital @ 10% 17,500
Less: Provision for bad and doubtful debts 900
Loss incurred during the year 37,400
Working Note:
Calculation of capital as on Mar 31, 2018
Statement of Affairs as on March 31, 2018
Liabilities Amount
(Rs) Assets
Amount
(Rs)
Sundry Creditors 15,000 Machinery 20,000
Bank overdraft 4,500 Sundry Debtors 45,000
Capital (Balancing
Figure)
1,46,000 Stock of Goods 41,000
Cash in Hand 15,000
Bills Receivable 42,000
Office Furniture 2,500
1,65,500 1,65,500
A.17
Particulars Rs
Amount paid for bats and balls during the year 2017 80,000
Less: Creditors for bats and balls on January 01, 2017 (20,000)
Add: Creditors for bats and balls on December 31, 2017 30,000
Bats and balls purchased 90,000
Bats and balls purchased 90,000
Add: Stock of bats and balls as on January 01, 2017 10,000
Less: Stock of bats and balls as on December 31, 2017 (12,000)
Bats and balls to be shown in Income and Expenditure Account 88,000
The amount of bats and balls purchased during the year 2017 is Rs 90,000 and bats and balls to
be shown in the Income and Expenditure Account as on December 31, 2017 is Rs 88,000
A.18 Errors in simple terms are unintentional mistakes committed at the time of recording any
business transactions or at the time of their posting in the Ledgers. Examples of these errors are
recording of wrong amount, recording in wrong Account (Ledger), posting in wrong ledger, or
incorrect calculations.
Clerical Errors are those errors that arise due to mistake committed in ordinary course of
accounting work. Following are two types of clerical errors:
(i) Errors of Omission: Whenever any transaction is altogether omitted to be recorded in the
books then such type of an error will be called as “Error of Omission”. These types of error do
not effect trial balance as transaction is not at all recorded so neither debit nor credit aspect of
transaction has been considered. If transaction is although recorded but omitted to be posted in
their respective ledgers then such an error is also Error of Omission.
(ii) Errors of Commission: These errors are related to wrong recording of amount, wrong totaling,
wrong calculation, wrong balancing of Ledgers and often are regarded as clerical errors. All
these errors are either recorded wrongly or they may be recorded correctly but incorrectly
posted in the Ledger Account.
(iii) Compensating Errors: Compensating Errors are those errors in which effect of one error is
compensated by the effect of another error or errors with the same amount. So in this way two
different errors simultaneously counterbalance effect of each other. These errors do not affect
Trial Balance.
A.19
Books of A
Journal
Date
Particulars
L.F.
Debit
Amount
Rs
Credit
Amount
Rs
2017
May 01 B Dr. 5,000
To Sales A/c 5,000
(Goods sold to B)
May 01 Bills Receivable A/c Dr. 5,000
To B 5,000
(B's acceptance for three months received)
May 04 Bank A/c Dr. 4,850
Discount A/c Dr. 150
To Bills Receivable A/c 5,000
(Bill discounted)
Aug. 04 B Dr. 5,150
To Bank A/c 5,150
(B's acceptance dishonoured and the bank paid Rs 150
noting charges)
Aug. 04 Cash A/c Dr. 2,150
To B 2,150
(Amount received from B)
Aug. 04 Bills Receivable A/c Dr. 3,000
To B 3,000
(B's acceptance for three months received)
Nov. 07 B Dr. 3,000
To Bills Receivable A/c 3,000
(Bill dishonoured)
Nov. 07 Bad Debt A/c Dr. 3,000
To B 3,000
(Amount due from B became bad)
Books of B
Journal
Date
Particulars
L.F.
Debit
Amount
Rs
Credit
Amount
Rs
2017
May 01 Purchases A/c Dr. 5,000
To A 5,000
(Goods bought from A)
May 01 A Dr. 5,000
To Bills Payable A/c 5,000
(Bill accepted drawn by A for three months)
Aug. 04 Noting Charges A/c Dr. 150
Bills Payable A/c Dr. 5,000
To A 5,150
(Bill dishonoured on the due date)
A Dr. 2,150
To Cash 2,150
(Cash paid to A)
Aug. 04 A Dr. 5,000
To Bills Payable A/c 5,000
(Bill accepted drawn by A for three months)
Nov. 07 Bills Payable A/c
To A
(Bill dishonoured)
Nov. 07 A 3,000
To Deficiency A/c 3,000
(Amount due to A transferred to Deficiency Account)
A.20
Machinery Account
Dr. Cr.
Date Particulars J.F. Amount
Rs Date Particulars J.F.
Amount
Rs
2009 2009
Jan.01 Bank (i)
(80,000 + 40,000) 1,20,000
Dec.31 Depreciation
(i) 12,000, (ii) 1,250 13,250
Oct.01 Bank (ii) 50,000 Dec.31 Balance c/d
(i) 1,08,000, (ii) 48,750 1,56,750
1,70,000 1,70,000
2010 2010
Jan.01 Balance c/d Dec.31 Depreciation
(i) 1,08,000, (ii) 48,750 1,56,750 (i) 12,000, (ii) 5,000 17,000
Dec.31 Balance c/d
(i) 96,000, (ii) 43,750 1,39,750
1,56,750 1,56,750
2011 2,011
Jan.01 Balance c/d Jan.01 Bank (i) 1/ 3rd
of Machinery 25,000
(i) 96,000, (ii) 43,750 1,39,750 Jan.01 Profit and Loss (loss) 7,000
Jan.01 Bank (iii) 1,00,000 Dec.31 Depreciation
(i) 12,000 × (2/3) = 8,000
(ii) 5,000, (iii) 10,000 23,000
Balance c/d
(i) 56,000 (ii) 38,750
(iii) 90,000 1,84,750
2,39,750 2,39,750
Working Note: Calculation of Loss on Sale of 1/3rd
of the Machinery (i)
Years Opening Balance – Depreciation = Closing Balance Jan 01, 2009 1,20,000 – 12,000 = 1,08,000
Jan 01, 2010 1,08,000 – 12,000 = 96,000
Jan 01, 2011 96,000
January 01, 2011
Book Value of (1/3)rd
of Machinery (i) = 96,000 × (1/3) = 32,000
Sale of 1/3rd
of the Machinery (25,000)
Loss on Sale of Machine Rs 7,000
January 01, 2011
Book Value of (2/3)rd
of the Machinery (i) = 96,000 × (2/3) = Rs 64,000
Depreciation will be charged on the original cost of the Machinery (i) on December 31, 2011
= 1,20,000 × (2/3) × (10/100) = Rs 8,000
A.21
Journal
Date Particulars L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
1. Purchases A/c Dr. 1,500
Sales A/c Dr. 1,500
To Ramesh 3,000
(Goods purchased from Ramesh was wrongly passed
through Sales Book, now rectified)
2. Suspense A/c Dr. 90
To Sales A/c 90
(Sales day book total of one page Rs 560 was carried
forward to next page as Rs 650, now rectified)
3. Pallav Dr. 720
To Suspense A/c 720
(Cash paid to Pallav Rs 800 was wrongly debited to his
Account as Rs 80, now rectified)
4. Sales Returns A/c Dr. 2,800
To Customer A/c 2,800
(Goods returned by customer not recorded, now recorded)
5. Prepaid Insurance A/c Dr. 250
To Suspense A/c 250
(Prepaid Insurance was omitted to be brought forwarded
from Previous Year, now rectified)
.
6. Suspense A/c Dr. 50
To Purchases Return A/c 50
(Purchases Return Book undercast, now rectified)
A.22 A computer may be defined as an electronic device whose basic function is to take
information storing and processing it according to the set of information and gives back the
output (result) to the user.
The following are the various characteristics of computer.
(i) Speed- Speed of a computer is faster than the manual techniques. It can perform a task in
much lesser time with very high speed. It is capable of performing millions of calculation per
second.
(ii) Accuracy- A computer performs any function or computation with very a high degree of
accuracy. Errors if any exist only due to wrong commands or wrong programming.
(iii) Reliable- Function performed by a computer are more reliable as it can work for
comparatively long hours without any tiredness, lack of concentration and without creating any
mistakes. It can perform any number of calculations with the same degree of accuracy.
(iv) Versatility- A computer has the capacity to perform variety of tasks. A task may be simple
as well as complicated. It is able to perform variety of jobs.
(v) Storage- A computer has in-built capacity to store huge data in a very small space. It stores
the data in a safe way. If needed, its storage capacity can also be increased through secondary
storage devices such as floppy disks, optical disks, etc.
A.23
Trading Account
Dr. Cr.
Particulars Amount
(Rs) Particulars
Amount
(Rs)
Opening Stock 4,500 Sales 70,000
Purchases 40,000 Closing Stock 5,000
Wages 3,000 Less: Sold and Wrongly
included 500 4,500
Carriage 1,200
Gross Profit (Balancing
Figure)
25,800
74,500 74,500
Profit and Loss Account
Dr. Cr.
Particulars Amount
(Rs) Particulars
Amount
(Rs)
Depreciation on: Gross Profit 25,800
Building 3,750
Machinery 3,000 6,750
Outstanding Commission on sale 1,400
Royalty on Sales 2,000
Export Duty 1.500
Bad Debts 200
Salaries 2,400
Rent 1,100
Add: Outstanding rent 100 1,200
Outstanding Manager‟s Commission 941
Net Profit 9,409
25,800 25,800
Balance Sheet
Liabilities Amount
(Rs) Assets
Amount
(Rs)
Capital 22,750 Fixed Assets
Less: Drawings 20,000 Plant & Machinery 30,000
Add: Net Profit 9,409 12,159 Less: Depreciation 3,000 27,000
Mortgage 1,500 Land and Building 20,000
Current Liabilities Less: Depreciation (3,750) 16,250
Bank Overdraft 4,000 Current Assets
Bills Payable 5,600 Closing Stock (5,000 – 500) 4,500
Creditors 32,850 Bills Receivables 3,000
Outstanding Rent 100 Debtors 6,000
Outstanding commission on sale 1,400 Less: Bad Debts 200 5,800
Outstanding Manager‟s Commission 941 Discount on issue of shares 2,000
58,550 58,550
Working Note:
10Manager's Commission 10,350 Rs 941
110
A.24
Youth Club
Income and Expenditure Account
for the year ending March 31, 2014
Dr. Cr.
Expenditure Amount
(Rs) Income
Amount
(Rs)
Consumables consumed (WN4) 800 Subscription (WN3) 21,500
Sports Material (WN5) 2,800 Interest on Investments 5,000
Municipal Taxes 4,500 Deficit (balancing figure) 4,800
Less:Paid for 2012-13 (2,000) 2,500
Salaries 2,500
Tournament Fees 3,400
Advance against construction of
Building
10,000
Depreciation
Furniture 4,000
Billiard Table 800
Building 4,500 9,300
31,300 31,300
Balance Sheet
as on March 31, 2014
Liabilities Amount
(Rs) Assets Amount (Rs)
Capital Fund 3,02,850 Furniture 40,000
Less: Deficit (4,800) 2,98,050 Less: Depreciation (4,000) 36,000
Donation for Building 35,000 Building 45,000
Subscription received in
Advance
3,000 Less: Depreciation (4,500) 40,500
Legacy 12,000 Billiard Table 8,000
Less: Depreciation (800) 7,200
Cash and Bank 38,750
Subscription Outstanding
2012-13 400
2013-14 3,500 3,900
Stock of Sports Material 21,500
Stock of Consumables 200
Investments 2,00,000
3,48,050 3,48,050
Working Notes:
(1) Calculation of Capital Fund
Balance Sheet as on March 31, 2013
Liabilities Amount
(Rs) Assets Amount (Rs)
Subscription received in
Advance
2,000 Furniture 40,000
Outstanding Municipal Taxes 2,000 Cash 550
Bank overdraft 3,400 Stock of Sports
Material
10,800
Capital Fund 3,02,850 Building 45,000
Billiard Table 12,000
Investments 2,00,000
Subscription Outstanding 1,400
Stock of Stationery 500
3,10,250 3,10,250
(2) Calculation of Investments in the beginning of the year
Let the investment be „x‟
Interest on investment for 6 months = 5,000
5 65,000
100 12
5,000 100 12Rs 2,00,000
5 6
x
x
(3)
Statement Showing Calculation of Subscription Income
Particulars Amount
(Rs)
Subscription received during the current year 20,000
Add: Subscription outstanding at the end (3,500 + 400) 3,900
Add: Subscription received in Advance in the beginning 2,000
Less: Subscription outstanding in beginning 1,400
Less: Subscription received in Advance at the end 3,000
Subscription Income to be shown on the Income side of I&E A/c 21,500
(4) Calculation of amount of goods consumed during the year
Particulars Amount
(Rs)
Consumables purchased during the year 500
Add: Stock of consumables at the beginning 500
Less: Stock of consumables in the end (200)
Consumables consumed during the year 800
(5)
Stock of Sports Material Account
Dr. Cr.
Particulars Amount
(Rs) Particulars
Amount
(Rs)
Balance b/d 10,800 Income and
Expenditure A/c
(balancing figure)
2,800
Receipt and Payment A/c 13,500 Balance c/d 21,500
24,300 24,300