1st PUC Accountancy Model Question Paper 2 with Answers

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Karnataka 1st PUC Political Science Model Question Paper 2 with Answers

Time: 3.15 minutes
Max. Marks: 100

SECTION – A

I. Answer any 8 questions each carry 1 mark. (1 × 8 = 08)

Question 1.
Commission received is a example for
(a) Revenue
(b) Cost
(c)Expenses
(d) Production
Answer:
(a) Revenue.

Question 2.
Write any two Accounting standards, accepted under IAS.
Answer:

1. IAS 1 – Disclosure of Accounting Policies
2. IAS 2 – Valuation of Inventories.

Question 3.
What is real account?
Answer:
The accounts relating to properties, assets, and pocessions with which we carry on business comes under one head of accounts called Real a/c. Example: Cash, goods, land and building, machinery, copy rights etc.

Question 4.
Write any three features of subsidiary⁷ books.
Answer:
Features of subsidiary books are:

1. It is a book of original entry of transactions. They substitute the journal.
2. Each subsidiary7 books contains specialised transactions having common characterstics.
3. Entering transactions is simple and much earlier than journalising.

Question 5.
Write any four items appeared on credit side of trial balance.
Answer:
The items appeared in trial balance credit side are :

• Sales
• Purchase return
• Capital
• Interest received

Question 6.
Define bills of exchange.
Answer:
“An instrument in writing, containing an unconditional order signed by the maker, directing a certain person, to pay on demand or at a fixed or determinable future time, a certain sum of money only, to or to the order of a certain persons, or to the bearer of the instrument”.

Question 7.
What is Indirect expenses?
Answer:
The expenses which is not directly involved in production but relating to the business called indirect expenses. There expenses are recorded in profit and loss a/c debit side.

Question 8.
How do you ascertain profit or loss under Single Entry System?
Answer:
Under single entry system profit or loss of a concern can be found in two ways. They are Statement of Affairs method. Conversion of single entry to double entry system method.

Question 9.
State any two elements of computer system.
Answer:
Two elements of computer system are:

1. Hardware: A physical components, it includes keyboard, mouse, monitor etc.
2. Software: A set of programmes, which is helpful to work with Hardware.

Question 10.
Mention the different types of procedure in computer system.
Answer:
The different types of computer system procedures are:

1. Hardware – oriented
2. Software oriented
3. Internal procedure.

SECTION – B

II. Answer any 5 questions each carries 2 marks. (2 × 5 = 10)

Question 11.
What is end product of financial accounting?
Answer:
Balance sheet is the end product of financial accounting. It show the true financial positions of a business concern, that provides required informations like assets & liabilities of a business firm.

Question 12.
Write any two features of double entry system.
Answer:
The two features of double entry system are:

1. It maintain complete record of all transactions.
2. It is a costly system and requires a specialised skills to maintain.

Question 13.
Write the rule of incomes a/c
Answer:
Income a/c rule are
⇒ “Debit decrease in income
Credit increase in income”

Question 14.
What is bank overdraft?
Answer:
It is a current a/c. Where bank provide opportunity to withdraw more than deposit called (B.O.D.) Bank Over Draft.

Question 15.
Give any two example for errors of principle.
Answer:

1. Purchase of furniture from vishwantha Rs. 10000 but it is wrongly entered in purchase book.
2. Sale of old machinery Rs. 1000 wrongly entered into sales a/c.

Question 16.
Name any four fixed assets.
Answer:

1. Machinery
2. Goodwill
3. Building
4. Furniture

Question 17.
State any two important aspects of Computerised Accounting.
Answer:
Following are the two important aspects of Computerised Accounting.

1. Data Processing
2. Spread Sheets.

Question 18.
Give the meaning of depreciation fund method.
Answer:
Under this system, the amount written off as depreciation should be kept aside and invested in readily saleable securities. When the life of the asset expires, the securities are sold and a new asset is purchased with the help of sale proceeds.

SECTION – C

III. Answer any 4 questions each carries 6 marks. (6 × 4 = 24)

Question 19.
What is cash book? Explain the types of cash book.
Answer:
Cash Book is a book of original entry. It records all transactions related to receipts and payments of cash and deposits in and withdrawals from a bank in a chronological order. In the debit side of the cash book, the cash receipts are recorded in the cash column while all deposits into bank account are recorded in the bank column.

On the contrary, in the credit side of the cash book, all cash payments are recorded in the cash column, while all payments through cheques are recorded in the bank column. Usually, it is prepared on monthly basis. Cashbook also serves the purpose of principle book (i.e. cash account and bank account).

a. Single column Cash Book:
A single column Cash Book contains one column of amount on both sides, i.e., one in the debit side and other in the credit side. In the single column Cash Book, only cash transactions are recorded. In the debit side of the Cash Book, all cash receipts are recorded, while in the credit side all cash payments are recorded.

b. Double column Cash Book:
A double column Cash Book contains two columns of amount, namely cash column and bank column on both sides. In the cash column of Cash Book, all cash receipts and payments are recorded, according to the rule of Real Accounts. All deposits either in cash or through cheques into the bank account of the business are debited in the bank column and al withdrawals of cash and payments through cheques are credited in the bank column.

c. Triple column Cash Book:
In a triple column Cash Book, there are three columns of amount namely, cash, bank and discount. Discount allowed and discount received are recorded in the discount column. While in the debit side, discount allowed is recorded along with the receipts, either in cash or through cheque; whereas, in the credit side, discount received is recorded, along with the payments made either in cash or by issuing cheques.

d. Petty Cash Book:
This book is used for recording payment of petty expensed, which are of smaller denominations like, postage, stationery, conveyance, refreshment, etc. is known as petty cash book.

Question 20.
Explain the classifications of accounting under American system.
Answer:
Every business organisation have properties, liabilities capital. For running business it will earn certain income or revenue or has to incur expenses or losses.

As per American approach accounts of a business can classified into five heads. They are,
1. Assets accounts:
Assets are properties of Business. The rights and resources owned by business for running its activities as per objectives come under Assets accounts.
Example: Land and Building, Machinery, Furniture etc.

2. Liabilities accounts:
These are the amounts of credit or debt owed by business to external persons.
Example: Creditors Bank loan, Bills payable, outstanding expenses etc.

3. Capital accounts:
It represent owner’s fund or internal funds, owners claim on assets of the business. Capital is an excess of Assets over liabilities. It includes fund invested by owners, reserves and surplus. Capital is personal accounts of owner.

4. Income accounts:
Amount received or receivable by business from sale or service of its product. Example: Commission Discounts, Rent Interests, dividend received etc. These accounts are same as the “Nominal A/c” in English system.

5. Expenses accounts:
Amount paid or payable for service obtained by business from outsiders are recorded in these a/c. These Expenses need for carrying out business operations. Example: Salary, Rent, Carriage, Advertising etc.

Question 21.
List out the advantages and limitations of manual accounting.
Answer:
Advantages of manual accounting are:

1. Comparatively cheap workforce and resources.
2. Reliability.
3. Independence from machines.
4. Skilled workers availability.

Limitations of manual accounting are:

1. Reduced speed.
2. Increased effort of accountants.
3. Duplication of work and less integrity.
4. Relatively slower internal control reporting, routine work, and some others.

Question 22.
Classify the following accounts into

a. Personal accounts
b. real accounts
c. nominal accounts and give reason.

1. Building account
2. Salaries account
3. Bad debts account
4. Drawings account
5. Depreciation account.

Answer:

1. Real account as it is a fixed asset.
2. Nominal account as it is an expense.
3. Nominal account as it is a loss.
4. Personal account as it is withdrawl for own use.
5. Nominal account as it is an expense.

Question 23.
Record the following actions in the purchase book.
2014
Apr. 1. Purchased from A.K. Garments
100 Trousers at ? 300 each
150 Jeans at ₹ 400 each

15. Purchased from Kumar Garments
100 Ladies suits at ₹ 500 each
20 Blazers at ₹ 1000 each

24. Purchased from Dinesh suitings
50 Pants at ₹ 5,00 each
Answer:

Question 24.
Pass the closing entries from the ledger balances picked out of the Trial Balance of Mr. Anand as on 31.12.2014:
Purchase A/c : ₹ 1,00,000, Sales A/c : ₹ 1,50,000
Opening stock A/c : ₹ 20,000, Gross Profit: ₹ 30,000
Rent paid : 12,000, Interest Received : ₹ 2,000
Answer:

Question 25.
What are the steps in preparation of a Trial Balance.
Answer:
Steps in preparation of a Trial Balance are as follows:

1. Draw the form of a trial Balance
2. Transfer the ledger account balances to the respective sides.
3. Total both the sides and see that they are equal
4. If any difference is found, then check all the ledger accounts and their transfer in Trail Balance.
5. Still if any difference is found, than the difference should be shown as “Suspense A/c” on the side which shows the balance.

SECTION – D

IV. Answer any 4 questions each carries 12 marks. (12 × 4 = 48)

Question 26.
M/s Vikrant Tires Ltd. took a property on lease for ₹ 60,000 for 5 years term on 1.4.2008. It was decided to charge depreciation on the annuity method. As per the annuity tables Re. 1 for 5 years at 5% would be Re. 0.230975.

Show the Lease A/c and Depreciation A/c for 5 years.
Depreciation = 60,000 × 0.230975 = 13858.5
Answer:

Depreciation Account: Same procedure to be followed as in the previous sum.

Question 27.
On 31^st March, 2014, Prasad drew a 3 months’ bill on Ravi for ₹ 2,000 and the latter accepted the same. On the due date, Ravi approached Prasad and requested him to cancel the bill and draw on him a bill for ₹ 2,080 for 3 months including interest. Prasad agreed to this proposal. Pass Journal Entries in the books of both the parties.
Answer:

Question 28.
The following is the Trial balance of Sri Rajkumar of Bombay as on 31^st December, 2013. Prepare a Trading and Profit and Loss Account for the year ended 31^st December, 2013 and the Balance Sheet as on that date after taking into consideration the following adjustments.

Adjustments :

1. Stock on 31^st December, 2013 was ₹ 10,000
2. Debts worth ₹ 2,000 should be written off as bad.
3. Depreciate Machinery by 5% and motor vans by 15%.
4. Provision for bad and doubtful debts should be increased by ₹ 600.
5. Commission accrued and not received ₹ 500.
6. Goods worth ₹ 500 were used by the proprietor for his personal use.
7. On 20^th December, 2013, a fire broke out in the shop and goods worth ₹ 2,000 were completely destroyed. The Insurance Company accepted the claim for ₹ 1500 only and paid the amount on 1^st January, 2014.

Answer:

Note :

1. Returns given in the debit column of the trial balance mean sales returns. So, they should be deducted from sales on the credit side of the Trading Account.

2. Returns given in the credit column of the trial balance mean purchases returns. So, they should be deducted from purchases on the credit side of the Trading Account.

3. The statement “Provision for Bad and Doubtful Debts should be increased by ₹ 600” means that the New Provision for Bad and Doubtful Debts should be ₹ 3,600 (i.e., the existing or Old Provision for Bad and Doubtful Debts of ₹ 3,000 plus ₹ 600 more).

4. Income-tax paid is a personal expenses of the proprietor. So, it should be treated as drawings. As drawings, it should be deducted from capital on the liabilities side of balance sheet.

5. Goods of ₹ 500 used by the proprietor for his personal use should be deducted from purchases on the debit side of the Trading Account, further, as drawings, they should be deducted from capital on the liabilities side of the balance sheet.

Question 29.
Sri Krupashankar, a retailer had not kept proper books of accounts. From the following, you are asked to find out his profit or loss for the year ending 31-3-2014. Also prepare a Revised Statement of affairs as on that date.

Following additional details are supplied to you.

1. Sri Krupashankar was transferring ₹ 200 per month from his business Bank Account to his private account. He had also paid ₹ 600 to his son as pocket expenses out of his business funds.
2. During the year, he sold his private property for ₹ 5,000 and invested the proceeds into the business.
3. Out of sundry debtors, ₹ 900 worth is irrecoverable and further 10% RBD is to be provided.
4. Provide Depreciation on Motor Van and Furniture at 10% each.
5. Appreciate investment by 25%
6. Rent unpaid amounted to ₹ 600.

Answer:

Question 30.
On checking Ram’s Cash Book with the Bank Statement of his overdrawn Current. Account for the month of November, 2013 find the following.

1. 1. Cash Book showed an overdraft of ₹ 500.
2. 2. The payment side of the cash book had been undercast by ₹ 150.
3. 3. A cheque amounting to ₹ 7,000 drawn and entered in the cash book had been presented.
4. 4. A cheque for ₹ 750 drawn on his saving deposit account has been shown as drawn on current account in cash book.
5. Cheques amounting to ₹ 6,000 sent to the bank for collection, though entered in the cash book, had not been credited by the bank.
6. Bank charges of ₹ 75 as per bank statement of account had not been taken in the cash book.
7. Dividends of the amount of ₹ 2,500 had been paid direct to the bank and not entered in the cash book.

You are requested to arrive at the Balance as it would appear ion the Bank statement as on 30^th November, 2013.
Answer:

Net profits for the year:
Note: As motor car was purchased on 30-6-2013, depreciation on motor car should be provided only for half year.

Question 31.
Enter the following transaction in proper subsidiary books, and post them to ledger.

Answer:

Question 32.
The following particulars are related to B R Company

1. Machine ‘P’ purchased on 01.10.2011 at ₹ 30,000
2. Machine‘Q’purchased on 01.01.2013 at ₹ 24,000
3. Machine ‘P’ sold for ₹ 25,600 on 31.03.2013.

The Company charges depreciation at 10% p.a. on 31^st March every year.
Show the Machinery A/c and Depreciation A/c for three years ending on 31.3.2014 underwritten down value method.
Answer:

SECTION – E

V. Answer any 2 questions each carry 5 mark. (5 × 2 = 10)

Question 33.
Prepare a specimen of a simple petty cash book with imaginary figures.
Answer:
1. Format of Journal

2. Format of Ledger

Question 34.
Prepare a trading account with imaginary figures.
Answer:

Question 35.
Prepare a specimen of a promissory note.
Answer:
1. Capital = ₹ Assets – Liabilities
₹ 1,20,000 = ₹ 4,00,000 – ₹ 1,80,000

2. Assets = Liabilities + Capital
₹ 3,30,000 = ₹ 1,50,000 + ₹ 1,80,000

3. Liabilities = Assets – Capital
₹ 3,20,000 = ₹ 6,00,000 – ₹ 2,80,000.