CBSE Class 11 Accountancy Revision Assignment Set C

Q1. Prepare Accounting Equation from the following –

1. Sandeep started business with cash Rs.1,00,000, goods Rs.20,000 and furniture Rs.50,000.

2. Purchased goods from Ram Rs.20,000 and for cash Rs.5,000.

3. Goods costing Rs.30,000 sold at a profit of 20% , half of the payment received in cash.

4. Rent paid Rs.700 and rent outstanding Rs.500.

5. Withdrew goods for personal use Rs.1,000.

6. Goods costingRs.5,000 sold for Rs.4,000 to Rakesh.

7. Received Rs.800 for commission.

8. Rent paid for 16 months Rs.64,000.

9. Cash paid to Ram (creditor) Rs.19,500 in full settlement of his account.

10. Accrued interest Rs.500.

11. Goods Rs.200 destroyed by fire.

12. Depreciation on furniture Rs.500.

13. Received cash from Rakesh (debtor) Rs.3800, discount allowed Rs.200.

14. Interest on capital Rs.1,000.

15. Goods worth Rs.300 and cash of Rs.200 given as charity.

16. Purchased goods from Ram worth Rs. 10,000 at a trade discount of 10% and cash discount of 2%. Half of the amount is paid in cash immediately.

Q2. Y started a business on 1st Jan, 2007 with a capital of Rs.2,00,000 and a loan of Rs.75,000 from the bank. During the year he had introduced additional capital of Rs.60,000 and had withdrawn Rs.36,000 for personal purpose. On 31st Dec, 2007 his assets were Rs.3,80,000. Find out his closing capital and profit earned during the year.

Q1. Prepare Accounting Equation from the following –

1. Sandeep started business with cash Rs.1,00,000, goods Rs.20,000 and furniture Rs.50,000.

2. Purchased goods from Ram Rs.20,000 and for cash Rs.5,000.

3. Goods costing Rs.30,000 sold at a profit of 20% , half of the payment received in cash.

4. Rent paid Rs.700 and rent outstanding Rs.500.

5. Withdrew goods for personal use Rs.1,000.

6. Goods costingRs.5,000 sold for Rs.4,000 to Rakesh.

7. Received Rs.800 for commission.

8. Salary paid in advance Rs.3,000.

9. Cash paid to Ram (creditor) Rs.19,500 in full settlement of his account.

10. Accrued interest Rs.500.

11. Goods Rs.200 destroyed by fire.

12. Depreciation on furniture Rs.500.

13. Received cash from Rakesh (debtor) Rs.3800, discount allowed Rs.200.

14. Interest on capital Rs.1,000.

15. Goods worth Rs.300 and cash of Rs.200 given as charity

1. What do mean by error of principle?

2. Rectify the following errors?

a) Purchases of goods of Rs.50,000 from Ford recorded as sales return.

b) Sales of goods of Rs.1,50,000 to Rabindra recorded as purchases in the book.

c) Paid cash to Sohan Rs. 65,000 recorded in the credit side of Sohan as Rs.56,000.

d) Sales return book over cast by Rs.6700.

e) Rent paid to land lord  Rs.5500 debited to rent account Rs.4500.

f) Salary paid to clerk Rs.6800 recorded to debit side of clerk.

3. From the following Trial Balance of Bharat Hind Sales Organisation as on 31 March 2011,

Prepare Final Account.

Plant & Machinery Rs.1,00,000, B/R Rs.5,000, B/P Rs.4,000, Salaries Rs.10,000, Office Expense Rs.4,000, Discount a/c(Cr.) Rs.1,500, Land & Building Rs.42,000, Sales Rs.2,30,000, Stock(1.7.00) Rs.50,000, Motor Car Rs.42,000, Factory Lights  Rs.15,500, S/Creditors Rs.40,000, Return inward Rs.5,000, Return Outward Rs.3,000, Loan Rs.20,000, Furniture Rs.6,000, Advertisement Rs.1,200 Income Tax Rs.1,500, Traveling Exp. Rs.6,850, Reserve Fund Rs.28,000, Capital Rs.2,00,000.Drawing Rs.15,000, Purchases Rs.85,000.Investment Rs.25,000, Interest on Investment Rs.1,250, wages Rs.30,000, Cash in hand Rs.1,000, Cash at Bank Rs.10,000, Sundry Debtors Rs.70,700, Legal expenses Rs.4,000, provision for bad debts Rs.2,000.

Adjustments : a) Closing Stock Rs.78,000. (b) Goods of Rs.3,000 given as charity. (c) Rs.7,000 taken by proprietor for personal use. (d) Write off further bad debts Rs.700 and create provision for bad debts 5% on debtors and also create provision for discount on debtor 2%.

 

1. A bill for Rs. 1,000 is drawn by A on B and accepted by the latter payable at the New Bank of India. Show what entries should be passed in the books of A under each of the following circumstances:

a. If A retained the bill till the due date and then realised it on maturity.

b. If A discounted it with his bankers for Rs. 950.

c. If A endorsed it to his creditor C in full settlement of his debt.

d. If A sent it to his bankers for collection.

Also, give the necessary entries in each of the cases if the bill is dishonoured.

2. On 1-1-09 for goods sold, Ramesh drew a Bill of Exchange on Mahesh for Rs.4,000, for a period of 3 months. Mahesh accepts it and returns to Ramesh. Ramesh then endorses it to Mukesh who in turn endorses it to Suresh on 1-2-09. The bill is then discounted by Suresh on the same date with his banker at 5% p.a. On the due date the bill is dishonoured. Pass the necessary Journal entries in the books of all the four parties.

3. On 1-1-09 Mr. X sold goods to Mr. Y for Rs. 4,500 on credit & drew 3 bills on him: first bill for Rs. 1,000 for 1 month, second bill for Rs. 1,500 for 2 months & third bill for Rs. 2,000 for 3 months. Mr. Y accepted and returned all the bills to Mr. X. The first bill was retained by Mr. X till the date of maturity. Second bill was endorsed to his creditor Mr. Z on 3-1-09 & third bill was sent to bank for collection on 4-1-09. On maturity all the bills were dishonoured & noting charges amounted to Rs. 10, Rs. 15 & Rs. 20 respectively.

Give the Journal entries in the books of X, Y & Z.

4. On 15-6-09, X sold to Y goods to the value of Rs. 1,500 drawing upon the latter two bills, one for Rs. 1,000 payable 2 months after date & other for Rs. 500 payable 3 months after date. X discounted the first bill with his bankers at 6% p.a. & endorsed the second bill in favour of his creditor, Z. The first bill was met on maturity but the second was dishonoured. Z paid Rs. 5 as noting charges. On 1st Oct., Y cleared his account to X by paying Rs. 510 which included Rs. 5 as interest.Record the necessary Journal entries in the books of both X and Y

 5. Ravi Shastri could not agree the Trial Balance. He transferred to the Suspense Account amount of Rs.296, being excess of the debit side total. The following errors were subsequently discovered:-

a. Sales Book was overcast by Rs.300;

b. Purchase of furniture for Rs.615 passed through Purchase Book;

c. An amt of Rs.55 received from Yograj Singh was posted to his account as Rs.550

d. Purchase Return Book total on a folio was carried forward as Rs.221 instead of Rs.112;

e. A cash sale of Rs.1,235 duly entered in the Cash Book but posted to Sales Account as Rs.235;&

f. Rest of the difference was due to incorrect total in the Salaries Account in the Ledger.

Give journal entries to rectify the above & prepare Suspense Account.

 

Q1. Define Accountancy.

Q2. Explain why the investors are interested in financial information.

Q3. Is Book Keeping a part of Accounting? Explain.

Q4. Explain any two objectives of Accounting

Q5. Identify and explain the accounting concept involved in the following-:

a) The calibre or quality of management is not disclosed in the books of accounts.

b) The assumption is made that the entity in question will remain in business for an indefinite period of time.

Q.6. Resignation by a Marketing Manager is not recorded in the books of accounts. Why?

Q.7. Name the branch of commerce , which keeps a record of monetary transactions in a set of books.

Q.8. Mention any two external users of accounting information.

Q.9. Give the area of interest for the creditors while using accounting information.

Q.10. Ajay, a businessman, has paid the school fees of his daughter from his personal bank account. Is it a business transaction?

Q11 Mention the concept on which the following statements are based: -

1} The insignificant items and events having an insignificant economic effect need not be disclosed.

2} “Same accounting method should be used from one accounting period to the Next.”

3} Business is treated as an entity separate and distinct from its owner

4} Only those transactions and events are recorded in accounting which can be expressed in terms of money.

5} Business will continue to exist for a longer period of time and there is no intention to close it or reduce its size significantly

6} All anticipated losses should be recorded in the books of accounts but all unanticipated or unrealized gains should be ignored.

7} There should be sufficient disclosure of information, which is of sufficient interest to the users of financial statement.

Q11. Give any the objectives of Accounting

Q12 Differentiate between Book keeping and Accounting

1. Enumerate the accounting functions or processes?

2. Define accounting?

3. Advantages of accounting?

4. Limitations of accounting?

5. Qualitative characteristics of accounting?

6. Basis of accounting?

7. What are the systems of accounting?

8. Explain the meaning of the following concepts:

a. Accounting period

b. Going concern

c. Conservatism

d. Business entity

e. Dual aspect

f. Full disclosure

g. Revenue recognition

h. Matching concept

i. Materiality

j. Consistency

k. Cost concept

l. Money measurement

9. What is need of basic accounting concept?

10. What do you mean by generally accepted accounting principles?

11. Differences between capital expenditures and revenue expenditures?

12. Explain the branches of accounting?

13. Explain roles of accounting?

14. Enumerate the rules of debit and credit?

15. Write the differences between journal and ledger?

16. What is bank overdraft?

17. What is imprest system?

18. What is organization?

19. Why do the users want accounting information?

20. What are the advantages of maintaining petty cash book?

21. What do you mean by journal proper?

22. What do you mean by balancing of an account?

23. What are the causes of differences between cash book and pass book?

24. What is a trial balance?

25. Objectives of preparing trial balance?