shri vidhyabharathi matric hr. sec. school · 2019-03-05 · shri vidhyabharathi matric hr. sec....

SHRI VIDHYABHARATHI MATRIC HR. SEC. SCHOOL - 99655-31727

SHRI VIDHYABHARATHI MATRIC HR. SEC. SCHOOL SAKKARAMPALAYAM, AGARAM (POST), ELACHIPALAYAM

TIRUCHENGODE (TK), NAMAKKAL(DT) – 637 202

CELL: 99655-31727, 94432-31727 XI - STANDARD ACCOUNTANCY

COMMON HALF YEARLY EXAMINATION - DEC - 2018

Answer Key Q.No SECTION - I Mark 1. b) Employee 1 2. b) Stewardship accounting 1 3. d) The institute of chartered Accounts of India 1 4. c)Conservatism 1 5. b)Outstanding salary A/c 1 6. b)Debit balance 1 7. c) Suspense A/c 1 8. c)Invoice 1 9. d)Bank column credit side 1 10. b) 3000 favorable 1 11. b) Principle 1 12. c)Technological changes 1 13. d) Capital receipts 1 14. a) In trading accounts 1 15. b) Fixed assets accounts 1 16. a) Bad debts 1

17. a) Dual aspects 1

18. b) Cash A/c 1

19. c)Purchase A/c 1

20. b) 19,600 1

SECTION - II 7 X 2 = 14 Journal Entry 21. S.No Particulars Debit L.f Credit

1) 2)

Purchase A/c Dr To cash A/c (goods purchase for cashRs.20,000) Cash A/c Dr Discount A/c Dr To Niha A/c (Received Rs.18,800 from in full settlement of the due Rs.19,000)

20,000 18,800 200

20,000 19,000

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22. Basis of recording accounting information: Cash basis Accrual or mercantile basis Mixed or hybrid basis

2

23. Full Disclosure Concepts:

It implies that the accounts must be prepared honestly and all material information should be disclosed in the accounting statement.

This is important because the management is different from the owners in most of the organizations.

2

24. Golden rules of double entry system

Personal account Debit the receiver Credit the giver

Real account Debit what comes in Credit what goes out

Nominal account Debit all expenses and losses Credit all incomes and gains

2

25. Define Depreciation:

According to Spicer and Pegler, “Depreciation is the measure of exhaustion of the effective life of an asset from any cause during a given period”.

According to R.N. Carter, “Depreciation is the gradual and permanent decrease in the value of an asset from any cause”.

2

26. Accounting Equation in the books of Rani Transitions Cash Stock Furnitur

e = Capital Creditors

stated business with cash +80,000 +80,000

=

+ 80,000 +80,000

Equations Credit purchase Equations

+10,000 = + 10,000

+80,000 -6,000

+10,000 +6,000

=

+80,000 +10,000

Cash purchase of furniture Equations +74,000

-8,000

+10,000 +6,000 = +80,000 +10,000

-8,000 Paid creditors by cash

Equations +86,000 +10,000 +6,000 = +80,000 +2,000

BALANCE SHEET FOR THE YEAR ENDED

Liabilities Rs Rs. Assets Rs Rs Capital Creditors

80,000 2,000

Cash stock furniture

6,000 10,000 6,000

82,000 82,000 .

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27. AVERAGE DUE DATE

Date of bill

Period of Bill

Days of Grace

Due date

1st March

12th July

2-month

1-month

3

3

4th May

14Th Aug since 15th Aug (being

independence days is public

holiday)

2

28. Bank Reconciliation statement of veera as on 31.12.2017 Particulars Amount Amount

Credit balance as per bank statement Add: Amount received by Bank through NEFT Cheque dishoarded amounting not entered Balance as per cash book

3,500 2,500

6,000

6,000

12,000

2

29. Rectification of Errors a) Purchase account should be debited with Rs.900 b)

Particulars Debit Credit

Sales A/c Dr To Furniture A/c (being sale of old furniture was credited)

1000

1000

2

30. Amount of depreciation Original cost = 1,00,000 (80,000 + 20,000)

= original cost –scrape value

Expected useful life

= 1,00,000 – 4000

4

= 96,000

4

Amount of depreciation = Rs.24,000

2

SECTION - III 7 X 3 = 21 31. Formula for Amount of depreciation and Rate of depreciation:

Amount of depreciation

= original cost –scrape value

Expected useful life

Rate or depreciation

=Amount of depreciation

Original cost X 100

3


32. Causes of depreciation:

There are different reasons causing the reduction in the book value of the fixed assets. Such causes are as follows:

(i) Wear and tear

The normal use of a tangible asset results in physical deterioration which is called wear and tear. When there is wear and tear, the value of the asset decreases proportionately.

(ii) Efflux of time

Certain assets whether used or not become potentially less useful with the passage of time.

(iii) Obsolescence

It is a reduction in the value of assets as a result of the availability of updated alternative assets. This happens due to new inventions and innovations. Though the original asset is in a usable condition, it is not preferred by the users and it loses its value. For example, preference of latest computers by the users.

(iv) Inadequacy for the purpose

Sometimes, the use of assets may be stopped due to their inadequacy for the purpose. These may become inadequate due to expansion in the capacity of a firm.

(v) Lack of maintenance

A good maintenance will naturally increase the life of the asset. When there is no proper maintenance, there is a possibility of more depreciation.

(vi) Abnormal factors

Decline in the usefulness of fixed asset may be caused by abnormal factors like damage due to fire accidents, natural calamities, etc. These may even lead to the state of an asset being discarded.

3

33. Role of an accountant :

An accountant designs the accounting procedures for an enterprise. He plays several roles in an organisation as follows:

(i) Record keeper

The accountant maintains a systematic record of financial transactions. He also prepares the financial statements and other financial reports.

(ii) Provider of information to the management

The accountant assists the management by providing financial information required for decision making and for exercising control.

(iii) Protector of business assets

The accountant maintains records of assets owned by the business which enables the management to protect and exercise control over these assets. He advises the management about insurance of various assets and the maintenance of the same.

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(iv) Financial advisor

The accountant analyses financial information and advises the business managers regarding investment opportunities, strategies for cost savings, capital budgeting, provision for future growth and development, expansion of enterprise, etc.

(v) Tax manager

The accountant ensures that tax returns are prepared and filed correctly on time and payment of tax is made on time. The accountant can advise the managers regarding tax management, reducing tax burden, availing tax exemptions, etc.

(vi) Public relation officer

The accountant provides accounting information to various interested users for analysis as per their requirements.

34. Type of personal Accounts: Personal account: Account relating to persons is called personal account. The personal

account may be natural, artificial or representative personal account.

(a) Natural person’s account: Natural person means human beings. Example: Vinoth account, Malini account.

(b) Artificial person’s account: Artificial person refers to the persons other than human beings recognized by law as persons. They include business concerns, charitable institutions, etc. Example: BHEL account, Bank account.

(c) Representative personal accounts: These are the accounts which represent persons natural or artificial or a group of persons. Example: Outstanding salaries account, Prepaid rent account. When expenses are outstanding, it is payable to a person. Hence, it represents a person.

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35. Distinction between capital and revenue receipts Following are the main differences between capital and revenue receipts:

Basis Capital receipts Revenue receipts i) Nature Non-recurring in nature. Recurring in nature. ii) Size Amount is generally substantial. Amount is generally

smaller. iii) Distribution These amounts are not available

for distribution as profits. The excess of revenue receipts over the revenue expenses can be used for distribution as profits.

3

36. Trial balance Particulars Debit Credit Bank loan Bills payable Stock Capital Purchases Sales Debtors Bank

70,000 1,80,000 4,00,000 2,00,000 8,50,000

2,00,000 1,00,000 2,50,000 3,00,000 8,50,000

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37. SALES BOOK

Date

Particulars

Outward

Invoice

no

Amount

Rs

L.F

Amount

Rs

2017 Jan-1

Jan-2

Jan-15

Anbu &co 20X150

Jagdiash &son 6x360

Elango &co 10x 170

Sales A/c(Cr)

3000

2160

1700

6860

3

38. Amount of depreciation: Cost of Machinery 4,25,000 Less: Dep 10% 42,500 ----------- 3,82,500 Less: Dep 10% 42,500 ------------ 3,40,000 Less: Dep 10% 42,500 ----------- Book value = 2,97,500 ------------

3

39. .TRADING ACCOUNT FOR THE YEAR ENDED AS ON 31ST MARCH 2018 PROFIT & LOSS ACCOUNT OF MR.SURESH

Particulars Rs. Rs. Particulars Rs. Rs. To Opening Stock 2,500 By Sales 40,000 To purchases 27,000 Less : Less : By return inwards 7,000 33,000 Return outwards 5,200 21,800 By closing stock 5,200 To Wages 2,500 To Coal & Gas 3,300 To carriage inwards

2,600

To Gross profit 5,500 (Transferred to profit and loss A/c)

38,200 38,200

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40. Profit & Loss Account for the year ended Dr Cr


Adjusting entry Date Particular Debit Credit Bad debts A/c Dr

To Sundry debtors (Being bad debts provided)

1,200 1,200

Particulars Rs. Rs. Particulars Rs. Rs. To Bad debts Add : Further bad debts

800

1,200

2,000

Liabilities Rs. Rs. Assets Rs. Rs. Sundry debtors 16,000

1,200

14,800 Less :

Bad debts

3

41. a) 5

Accounting Equation

Transitions Cash Bank Stock Fur = Capital Credit

ors

Raj stated business with

+40,000 = +40,000

Equations +40,000 = +40,000

Opened bank Account

-30,000 +30,000 =

Equations +10,000 +30,000 = +40,000

Raj withdrew cash for personal use Rs. 1000

-1000 = -1000

Equation +9000 +30,000 = +39,000

Bought goods from hari on credit for 12,000

+12,000 = +12,000

Equation +9,000 +30,000 +12,000 = 39,000 +12,000

Bought furniture by using debit card Rs. 10,000

-10,000 +10,000 =


Equation +9,000 +20,000 +12,000 +10,000 = +39,000 +12,000

Sold goods to murugan and cash received Rs. 6000

+6000 -6,000 =

Equation +15,000 +20,000 +6000 +10,000 = +39,000 +12,000

Money withdrawn From Bank for office use Rs. 1000

+1000 -1000 =

Equation +16,000 +19,000 +6000 +10,000 = +39,000 +12,000


Liabilities Rs. Rs. Assets Rs. Rs. Capital 39,000 Cash 16,000 Creditors 12,000 Bank 19,000 Stock 6,000 Furniture 10,000 51,000 51,000

(OR) Journal Entry

Date Particulars L.F.

Debit Rs.

Credit Rs.

April 1 2018 Purchase A/c Dr. To Bank A/c (Being goods purchase and payment made through cheque)

30,000

30,000

April 5 Bank A/c Dr. To Sales A/c (Being goods sold and payment received through NEFT)

40,000

40,000

April 6 Cash A/c Dr. To Sales A/c (Being goods sold for cash)

20,000

20,000

April 9 Abdul A/c Dr. To Sales A/c (Being goods sold on credit to Abdul)

25,000

25,000

April 18 Cash A/c Dr. To Abdul A/c (Being received from Abdul)

10,000

10,000

5


LEDGER ACCOUNTS

Cash A/c 1.4.2018 To balance b/d 25,000 30.4.18 by bal.c/d 55,000 6.4.2018 To sales A/c 20,000 18.4.2018To Abdul A/c 10,000 ------------ ----------- 55,000 55,000 ------------ ----------- 01.5.18 by bal.c/d 55,000

Bank A/c 1.4.2018 To balance b/d 3,00,000 01.4.18 by purchase A/c 30,000 5.4.2018 To sales A/c 40,000 13.4.18 by bal.c/d 3,10,000 ------------ ------------- 3,40,000 3,40,000 ------------ ------------- 01.5.18 by bal.c/d 3,10,000

Purchase A/c 1.4.2018 To Bank A/c 30,000 30.4.18 by bal.c/d 30,000 ------------ ------------- 30,000 30,000 ------------ ------------- 01.5.18 by bal.c/d 30,000

Sales A/c 30.4.2018 To bal.c/d 85,000 5.4.18 by bank A/c 40,000 6.4.18 by cash A/c 20,000 9.4.18 by Abdul A/c 25,000 ------------ ------------- 85,000 85,000 ------------ -------------

01.5.2018 To bal.c/d 85,000

Abdul A/c 9.4.2018 To Sales A/c 25,000 8.4.18 by cash A/c 10,000 30.4.18 by balance c/d 15,000 ------------ ------------- 25,000 25,000 ------------ ------------ 01.5.2018 To bal.c/d 15,000

42. Journal Entry Date Particulars L.

F. Debit Rs.

Credit Rs.

1.3.2018 Cement bag A/c Dr.

To Sibi A/c

(Being credit purchase from Sibi)

20,000

20,000

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Mar.2 Electricity charges A/c Dr. To Bank A/c (Being Electricity charges paid through net banking)

500

500

Mar.3 Sibi A/c Dr. To purchase return A/c (Being goods return)

5000

5000

Mar.4 Drawing A/c Dr. To purchase A/c (Being cement taken for personal use)

1000

1000

Mar.5 Advertisement expenses A/c Dr. To Cash A/c (Being Advertisement paid)

2000

2000

Mar.6 Mano A/c Dr. To Sales A/c (Being goods sold to Mano)

20000

20000

Mar.7 Sales return A/c Dr. To Mano A/c (Being goods return by Mano)

5000

5000

Mar.8 Bank A/c Dr. To Mano A/c (Being payment received from Mano through NEFT)

15000

15000

OR

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43. SINGLE COLUMN CASH BOOK IN THE BOOKS OF RAMALINGAM AS ON 31.7.2017

Date Receipt RN

LF

Amt. Date Payment RN

LF

Amt.

1.1.17 To balance b/d 32,000 6.7.17 By packing charges

300

5.7.17 To Keerthana A/c 5,000 7.7.17 By Purchase A/c

12,400

8.7.17 To Sales A/c 26,000 10.7.17 By Salary A/c 7,000 27.7.17 To Bank A/c 2,000 11.7.17 By Bala A/c 3,000

24.7.17 By Cash A/c 4,000 31.7.17 By Rent A/c 6,000 31.7.17 By Balance

c/d 8,900

41,600 41,600 1.8.17 To Balance b/d 8,900

5

OR ANALYTICIL PETTY CASH BOOK AS ON 8.7.2017

Recei

pt

CB

FN

DA

TE

Particulars To

tal

P.&

stat

ion

ary

con

vey

ance

Wages

Po

stag

e &

Telegra

m

carriag

e

sun

dry

2,000 1.7.17 To Cash A/c

1.7.17 By writinBads A/c 100 100

8.7.17 By White PaperA/c 50 50

10.7.17 By Auto Charges A/c 200 200

15.7.17 By Wages A/c 300 300

18.7.17 By Postal Charges A/c 100 100

21.7.17 By Stationary A/c 450 450

23.7.17 By Tea Expenses A/c 60 60

25.7.17 By Speed Post A/c 150 150

27.7.17 By Refreshment A/c 250 250

31.7.17 By Carriage A/c 150 150

31.7.17

To Balance c/d

1,810

190

600 200 300 250 150 310

2,000

1.8.17

1.8.17

To Balance b/d

To Cash

2,000

190

1810

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44. IN THE BOOKS OF SUMAN PURCHASE BOOK

Date Particulars In

voice No.

LF

Amount

Amount

2017 Jan.2 M/s Raj Electronics 20x500 10 x 14500

1,10,000 1,45,000

2,55,000

Jan-5 M/s Ruby Electronics 10 x 1650 8 x 2500

16,500 20,000

32,850

Jan-20 M/s Suganthi Electronics

10 x 3700 2 x 27,000 Less : Trade discount 5% Total Purchase A/c Dr.

37,000 54,000

86,450

91,000 4,550

3,74,300

PURCHASE RETURN BOOK Date Particulars

Deb

it

No

te

No

. L

F

Amount Remarks

10.6.17 M/s Raj Electronics 4 x 5500 Total Purchase return A/c Cr.

22,000

Due to Damaged

22,000

5

OR BANK RECONCILIATION STATEMENT Particulars Amount Amount

Bank balance as per bank statement 15,000 Add: Bank charges not recorded in the cash book

250

Interest charged by bank not recorded in cash book

500

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Bank paid Insurance premium as per standing Instruction but not recorded in cash book

300

Cheques deposited but not yet credited 900 1,950 16,950 Less : Cheques issued but not yet presented for payment

2,500

Balance as per cash book 14,450

45. RECTIFY ENTRY :

a) Rent received account is to be credited with Rs.900

b) Rent received account is to be debited with Rs.1000

c) Salary account is to be debited with Rs.1100

d) Salary account iis to be credited with Rs.1200

e) Wages account should be credited with Rs.2000

5

OR JOURNAL ENTRIES IN THE BOOKS OF JAYSEELI

Date Particulars L.F.

Debit Rs.

Credit Rs.

2018 Jan.1 Cash A/c Dr. To Jayseeli’s capitalA/c (Jayseeli commenced business with cash)

80,000

80,000

2018 Jan.2 Bank A/c Dr. To Cash A/c (Deposited cash in bank)

40,000

40,000

2018 Jan.3 Purchase A/c Dr. To Cash A/c (goods purchased for cash)

5,000

5,000

2018 Jan.4 Purchase A/c Dr. To Lipton & Co A/c (goods purchased on credit)

10,000

10,000

2018 Jan.5 Cash A/c Dr. To Sales A/c (Jayseeli commenced business with cash)

11,000

11,000

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46.

5


OR

Trading Profit & Loss A/c Mr. Murugan for the year end 31.03.13

Particulars Rs Rs. Particulars Rs Rs To opening stock To purchase Less : purchase return To Gross Profit c/d (Transferred to profit and loss A/c) To stationery & printing To Miscellaneous expenses To Advertisement To general expenses To loss on sale of furniture To Rent To salaries To Travelling expenses To commission paid To Office expenses To Net Profit c/d (Transferred to capital A/c)

32,250 250

7,600 29,100 32,000 28,800

By sales Less: sales return By Gross Profit b/d (Transferred from Trading A/c) By Dividend received By Profit on sale of investment

72,250 1,250

71,000

71,000 89,700 250 200 500 2,500 300 300 3000 1800 150 1600 21,200

28,800 2,500 500

31,800

31,800

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47.

5

OR 1) Capital expenditure 2) Capital Expenditure 3) Capital expenditure 4) Capital expenditure 5) Capital expenditure

Prepared By : Valarmathi. s

SHRI VIDHYABHARATHI MATRIC HR. SEC. SCHOOL SAKKARAMPALAYAM, AGARAM (POST), ELACHIPALAYAM

TIRUCHENGODE (TK), NAMAKKAL(DT) – 637 202

CELL: 99655-31727, 98659-51332

www.nammakalvi.org

shri vidhyabharathi matric hr. sec. school · 2019-03-05 · shri vidhyabharathi matric hr. sec....

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