Model Paper 5 Account - Model Paper 5

Good debts are

Which of the following is/are not recorded in purchase book?
i. Cash purchase of goods worth ₹ 5,000.
ii. Purchase of furniture on credit worth ₹ 75,000.
iii. Purchase of stationery of ₹ 3,000 on credit.

The person, firm or institution who does not pay the price in cash for the goods purchased or the services received is called:

Current Liabilities include: Debentures, Bills Payable, Long-term Loans, Capital

Calculate total expenses if capital Rs.2,00,000, creditors Rs. 50,000, revenue Rs.5,00,000 and asset Rs. 5,00,000.

Classify the following into (i) Assets (ii) Liabilities (iii) Expenses and (iv) Revenues
Sales, Bank balance, Debtors, Bank Overdraft, Creditors, Salary to the manager,Discount to debtors, Cost of goods sold

Mr. Abhinav Kumar, a homeopath doctor in practice has been advised by his Accountant to maintain his accounts on Accrual Basis instead of the presently followed Cash Basis of Accounting. Do you agree with the advice of the Accountant? Give reasons.

International Financial Reporting Standards (IFRS) provides a number of benefits. Explain any three.

What is Trade Discount? Give an example.

Give any three points distinguishing between a journal and a ledger ?

On 31st March 2018, the Cash Book of B.Babu showed an overdraft of Rs. 18,000 with the Bank of India. This balance did not agree with the balances as shown by the Bank Pass Book. You find that Babu had paid into the Bank on 26th March, four cheques for Rs. 10,000 , Rs. 12,000 Rs. 6,000 and Rs. 8,000 . Of these, the cheques for Rs. 6,000 was credited by the Bank in April 2018. Babu had issued on 24th March, three cheques for Rs. 15,000 , Rs. 12,000 and Rs. 7,000 . The first two cheques were presented to the Bank for payment in March 2018 and third cheque in April 2018.
You also find that on 31st March 2018 the Bank had debited Babu's account with Rs. 500 for interest, Rs. 20 as charges, but Babu had not recorded these amounts in his Books.
Prepare Bank Reconciliation Statement as on 31st March 2018 and ascertain the balance as per the Bank Pass Book.

i. On 31st March, 2023, the Bank Pass Book of Renu Enterprises showed a credit balance of ₹ 15,000 .
ii. Before that date, she had issued cheques amounting to ₹ 8,000 out of which cheques of ₹ 3,200 were presented for payment till 31st March, 2023.
iii. A cheque of ₹ 2,200 deposited by her into the bank on 28th March, 2023 is not yet credited in the Bank Pass Book.
iv. She had also received a cheque of ₹ 500 which although entered by her in the bank column of Cash Book, was omitted to be paid into the bank.
v. On 30th March, 2023, a cheque of₹ 1,570 received by her was paid into the bank but the same was omitted to be recorded in the Cash Book.
vi. There was a credit of ₹ 150 for interest on current account and a debit of ₹ 25 for bank charges.
vii. A wrong credit of ₹ 2,000 was given by bank on 27th March, 2023 and was reversed on 10th April, 2023.
Prepare Bank Reconciliation Statement as on 31st March, 2023.

Explain the need for drawing up the special purpose books.

Prepare the trial balance of Mahesh as on 31st March, 2023. He has omitted to opena Capital Account:

	₹		₹
Bank Overdraft	95,000	Purchases	4,45,000
Sales	8,10,000	Cash in Hand	8,500
Purchases Return	22,500	Creditors	2,15,000
Debtors	4,00,500	Sales Return	15,750
Wages	96,000	Equipment	25,000
Capital	?	Opening Stock	3,00,500

On April 01,2010 , Bajrang Marbles purchased a Machine for ₹1,80,000 and spent ₹ 10,000 on its carriage and ₹10,000 on its installation. It is estimated that its working life is 10 years and after 10 years its scrap value will be ₹ 20,000 .
i. Prepare Machine account and Depreciation account for the first four years by providing depreciation on the straight-line method. Accounts are closed on March 31st every year.
ii. Prepare Machine account, Depreciation account, and Provision for depreciation account (or accumulated depreciation account) for the first four years by providing depreciation using straight-line method accounts are closed on March 31 every year.

Rectify the following errors which are detected before preparation of the Trial Balance:
i. Sale to Prakash ₹ 50,000 posted to his account as ₹ 5,000 .
ii. Sale to Prakash ₹ 30,000 debited to his account as ₹ 3,000 .
iii. Sale to Prakash ₹ 20,000 credited to his account as ₹ 2,000 .
iv. Sale to Ravi ₹ 5,600 posted to his account as ₹ 6,500 .
v. Purchases of ₹ 8,755 from Nitin posted to his account as ₹ 5,578 .
vi. Purchases of ₹ 6,580 from Nitin posted to his account as ₹ 8,560 .
vii. Cash sale to Abhi of ₹ 30,000 posted as ₹ 3,000 .
fiii. Debit balance of ₹ 5,000 was carried forward as a credit balance in Ritesh's Account.
ix. Credit purchase of furniture ₹ 30,000 from Rohit was posted as ₹ 3,000 .

Following particulars are given in Trial Balance:
Purchases ₹ 1,10,000; Sales ₹ 2,00,000; Wages ₹ 30,000; Closing Stock was ₹ 8,000 more than the Opening Stock. Two-third of the Wages was charged to the Cost of goods sold in Trading Account. Gross Profit was:

Wages paid for the installation of the machine is added to the cost of machine because of

Payment of Income Tax is considered as:

Single entry system records

Two methods for ascertaining profit and loss in case of single entry system:

Illustrate with example the principle for valuation of stock or inventory.

Ascertain Gross Profit from the following information :

	(₹)
Opening Stock	3,00,000
Closing Stock	2,80,000
Purchases	8,50,000
Carriage on Purchases	23,000
Carriage on Sales	30,000
Office Rent	58,000
Sales	14,07,000

 

From the following information, prepare trading account for the year ended 31st March, 2013

	Amt (Rs.)
Cost of goods sold	45,00,000
Sales	72,00,000
Closing Stock	2,40,000