GRADE XI
Time: 3 Hours
Full Marks: 75
Candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate.
Attempt All Questions [11 x 1 mark = 11 marks]
Q: 1. What is bookkeeping?
Bookkeeping is the combination of two words ‘book and keeping’.
Book is the collection of financial data or information; keeping is the process of recording these data.
Q: 2. Mention any two objectives of accounting.
The main objective of bookkeeping is to find out financial transactions.
After finding out financial transactions, they must be classified into personal, real and nominal accounts.
Q: 3. Write the meaning of the money measurement concept.
According to the money measurement concept, only monetary terms are recorded.
It ignores those transactions that cannot be expressed in-term-of money.
Q: 4. Define trial balance.
According to the Microsoft Corporation, “Trial balance is a statement to check the debits and credits.”
Q: 5. What is a cross cheque?
When two slanted or parallel lines are drawn on the left-hand side of the cheque, it is known to cross of the cheque.
Cross cheque is deposited into account then the amount of cheque will be credited into the account.
Q: 6. Write about the error of principle.
When an accountant does not know properly about capital and revenue, the principle of error occurs.
Example: Salary paid to staff is debited to his/her personal account.
Q: 7. What is the reserve?
In accounting, a reserve means an amount keep aside out of profit.
Reserve helps to make strong financial position of the business firm.
Q: 8. Write any one difference between capital expenditure and revenue expenditure.
Differences between Capital and Revenue Expenditures
Bases |
Capital expenditures |
Revenue expenditures |
Purpose |
It is incurred to purchase fixed assets or improve their life. |
It is incurred to manage day-to-day business activities. |
Q: 9. What is dhapot?
Dhapot was final statement under syaha sresta pranali.
It was similar to the final accounts of the modern accounting system.
Q: 10. Define bank cash book.
A bank cash book is a book of account maintained by operating level offices in the government office.
In this book, cash and banking transactions are recorded.
Q: 11. State the use of the budget sheet.
A budget sheet is used for controlling budget expenditures.
It provides information about annual appropriation, budget release and budget expenditure.
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Attempt All Questions [8 x 5 marks = 40 marks]
Q: 12 A. State accounting process in brief.
A complete sequence of accounting procedures is an accounting process.
It is also popularly known by accounting cycle.
It includes recording, classifying, summarizing and interpreting.
An accounting cycle begins with the recording of transactions and ending with the preparation and interpretation of the final account.
Accounting process is of cyclic and sequential order.
It is given in the following:
> Documenting the financial transactions
> Classifying and recording the financial transactions into the journals
> Posting the transactions into the respective ledger accounts
> Balancing the ledger accounts
> Preparing a trial balance
> Preparing the financial statements like Trading account, Profit and loss account and Balance sheet
Q: 12 B. Prepare accounting equation from following details:
a. Started business with cash $ 200,000 and furniture $500,000
b. Purchase goods worth $80,000 on cash and 70,000 on credit.
c. Paid rent $90,000
d. Sold goods costing $20,000 in cash for $25,000.
[Answer: A = $685,000; C = $615,000; L = $70,000]
SOLUTION
Accounting Equation
Particulars |
Assets |
= |
Capital |
+ |
Liabilities |
||||
a |
Business started with cash and furniture |
200,000 |
cash |
= |
700,000 |
|
+ |
0 |
|
|
|
500,000 |
furn. |
|
|
|
|
|
|
|
First equation |
700,000 |
|
= |
700,000 |
|
+ |
0 |
|
b |
Goods purchased in cash and credit |
150,000 |
stock |
|
0 |
|
|
70,000 |
A/P |
|
|
(80,000) |
cash |
|
|
|
|
|
|
|
New equation |
770,000 |
|
= |
700,000 |
|
+ |
70,000 |
|
c |
Rent paid |
(90,000) |
cash |
|
(90,000) |
exp |
|
0 |
|
|
New equation |
680,000 |
|
= |
610,000 |
|
+ |
70,000 |
|
d |
Sold goods costing $20,000 in cash for |
25,000 |
cash |
|
5,000 |
profit |
|
0 |
|
|
$25,000. |
(20,000) |
stock |
|
|
|
|
|
|
|
Final equation |
685,000 |
|
= |
615,000 |
|
+ |
70,000 |
|
Q: 13 A. Cash and banking transactions are given below by ABC Traders:
Sep 1: Opening balance of cash and bank are $60,000 and $200,000 respectively.
Sep 13: Cash deposited at the bank of $30,000.
Sep 22: Paid $32,000 to Ram through cheque for settling the account of $35,000.
Sep 27: Received a cheque from Aviral cheque of $19,000 and cash of $3,000 for selling the machine.
Required: Triple column cash book for the month
[Answer: Balance b/d: Cash = $33,000; Bank = $217,000]
(Assume Poush = September)
SOLUTION
Triple Column Cash Book
Date |
Particulars |
LF |
Cash |
Bank |
Dis |
Date |
Particulars |
LF |
Cash |
Bank |
Dis |
Sep 1 |
To Balance b/d |
|
60,000 |
200,000 |
|
Sep 13 |
By Bank |
C |
30,000 |
|
|
Sep 13 |
To Cash |
C |
|
30,000 |
|
Sep 22 |
By Ram |
|
|
32,000 |
3,000 |
Sep 27 |
To Machine |
|
3,000 |
19,000 |
|
Sep 30 |
By Balance c/d |
|
33,000 |
217,000 |
|
|
|
|
63,000 |
249,000 |
Nil |
|
|
|
63,000 |
249,000 |
3,000 |
Oct 1 |
To Balance b/d |
|
33,000 |
217,000 |
|
|
|
|
|
|
|
Q: 13 B. Transactions related to ABC Furniture House for the purchase of furniture are given below:
Dec 5: Purchase from Karuna Suppliers:
10 coffee tables for $100,000
20 small chairs @ $4,000 each
Trade discount @ 10%
Dec 19: Purchased from Anjali Traders:
5 beds @ 15,000 each
8 pieces of sofa @ $25,000 per sofa
Required: Purchase book
[Answer: Total creditors ($162,000 + $275,000) = $437,000]
SOLUTION
Purchase Book
In the book of ABC Furniture House
Date |
Particulars |
LF |
Invoice |
Amount |
Amount |
Dec 5 |
Purchase from Karuna Suppliers: |
|
|
|
|
|
10 coffee tables @ $10,000 each |
|
|
100,000 |
|
|
20 small chairs @ $4,000 each |
|
|
80,000 |
|
|
|
|
|
180,000 |
|
|
Less: Trade discount (180,000 x 10%) |
|
|
(18,000) |
162,000 |
|
|
|
|
|
|
Dec 19 |
Purchased from Anjali Traders: |
|
|
|
|
|
5 beds @ $15,000 each |
|
|
75,000 |
|
|
8 pieces sofa @ $25,000 |
|
|
200,000 |
275,000 |
|
Total creditors or suppliers |
|
|
|
437,000 |
Q: 14. Following information are given by XYZ Traders:
(a) Cashbook showed a balance of $80,000.
(b) Bank credited $20,000 only out of various cheques of $75,000 deposited in the bank.
(c) Cheques were issued of $90,000 but a cheque of $10,000 was not presented for payment till the date.
(d) A customer deposited a cheque of $44,000 directly in the bank but has not been recorded in the cash book.
(e) Bank debited $500 as bank charge in the passbook.
(f) Cheque of $12,000 received and entered into the cash book but failed to deposit in the bank.
Required: Bank Reconciliation Statement [5]
[Answer: Balance as per passbook = $66,500]
SOLUTION
Bank Reconciliation Statement
For the month of ….
Particulars |
Amount |
Amount |
|
Debit balance as per cashbook |
|
80,000 |
|
Add: |
Cheque issued but not presented for payment |
10,000 |
|
|
Customer directly deposited at the bank but not recorded in the cashbook |
44,000 |
54,000 |
|
|
|
|
Less: |
Cheque deposited into bank but not yet cleared (75,000 – 20,000) |
55,000 |
|
|
Bank charge debited in the passbook |
500 |
|
|
Cheque entered into cashbook but failed to deposit at the bank |
12,000 |
(67,500) |
Balance as per passbook |
|
66,500 |
Q: 15 A. Rectify the following errors before preparing of trial balance. [3]
(a) Cash sales to Sharma $45,000 debited to his account
(b) Sales of machinery @ $19,000 were wrongly credited in the sales account.
(c) Purchase goods from Pema $20,000 recorded in the sales book.
[Answer: (a) Sharma credited $45,000;
(b) Machine credited $19,000;
(c) Pema credited $40,000]
SOLUTION
Rectified Journal Entry
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
a. |
Cash account |
Dr |
|
45,000 |
|
|
To Sharma |
|
|
|
45,000 |
|
(Being- wrong entry, now rectified) |
|
|
|
|
|
|
|
|
|
|
b. |
Sales account |
Dr |
|
19,000 |
|
|
To Machine account |
|
|
|
19,000 |
|
(Being- wrong entry, now rectified) |
|
|
|
|
|
|
|
|
|
|
c. |
Purchase account |
Dr |
|
20,000 |
|
|
Sales account |
Dr |
|
20,000 |
|
|
To Pema |
|
|
|
40,000 |
|
(Being- wrong entry, now rectified) |
|
|
|
|
|
|
|
|
|
|
Given and working note:
a. Cash sales to Sharma $45,000 debited to his account
Step 1, |
÷ |
Step 2, |
||||||
Correct entry |
|
Wrong entry |
||||||
Cash |
Dr |
45,000 |
|
|
Sharma |
Dr |
45,000 |
|
To Sales |
|
|
45,000 |
|
To Sales |
|
|
45,000 |
Again, correct entry just copy and paste but wrong debit entry credited and wrong credit entry debited
Step 3, |
|
Step 4, |
||||||
Correct entry |
x |
Wrong entry |
||||||
Cash |
Dr |
45,000 |
|
|
Sales |
Dr |
45,000 |
|
To Sales |
|
|
45,000 |
|
To Sharma |
|
|
45,000 |
Step 5,
Sales Dr |
45,000 |
|
Final entry |
|
|
|
Sales Cr |
45,000 |
|
Cash |
Dr |
45,000 |
|
|
Nil |
|
To Sharma |
|
|
45,000 |
b. Sales of machinery @ $19,000 were wrongly credited in the sales account.
Step 1, |
÷ |
Step 2, |
||||||
Correct entry |
|
Wrong entry |
||||||
Cash |
Dr |
19,000 |
|
|
Cash |
Dr |
19,000 |
|
To Machine |
|
|
19,000 |
|
To Sales |
|
|
19,000 |
Again, correct entry just copy and paste but wrong debit entry credited and wrong credit entry debited
Step 3, |
|
Step 4, |
||||||
Correct entry |
x |
Wrong entry |
||||||
Cash |
Dr |
19,000 |
|
|
Sales |
Dr |
19,000 |
|
To Machine |
|
|
19,000 |
|
To Cash |
|
|
45,000 |
Step 5,
Cash Dr |
19,000 |
|
Final entry |
|
|
|
Cash Cr |
19,000 |
|
Sales |
Dr |
19,000 |
|
|
Nil |
|
To Machine |
|
|
19,000 |
c. Purchase goods from Pema $20,000 recorded in the sales book.
Step 1, |
÷ |
Step 2, |
||||||
Correct entry |
|
Wrong entry |
||||||
Purchase |
Dr |
20,000 |
|
|
Pema |
Dr |
20,000 |
|
To Pema |
|
|
20,000 |
|
To Sales |
|
|
20,000 |
Again, correct entry just copy and paste but wrong debit entry credited and wrong credit entry debited
Step 3, |
|
Step 4, |
||||||
Correct entry |
x |
Wrong entry |
||||||
Purchase |
Dr |
20,000 |
|
|
Sales |
Dr |
20,000 |
|
To Pema |
|
|
20,000 |
|
To Pema |
|
|
20,000 |
Step 5,
Pema Cr |
20000 |
|
Final entry |
|
|
|
Pema Cr |
20,000 |
|
Purchase |
Dr |
20,000 |
|
|
40,000 |
|
Sales |
Dr |
20,000 |
|
|
|
|
To Pema |
|
|
40,000 |
Q: 15 B. Following information are extracted from the trial balance:
Particulars |
Amount Dr |
Amount Cr |
Sundry debtors |
52,000 |
|
Provision for bad debts |
|
7,000 |
Bad debts |
1,000 |
|
Additional information:
a. Bad debt $2,000
b. provision for bad debt @ 5%
Required: Provision for bad debt account [2]
[Answer: To P&L (b/f) = $1,500]
SOLUTION
Provision for Bad Debt Account
Particulars |
Amount |
Particulars |
Amount |
To Bad debts (old) |
1,000 |
By Balance b/d |
7,000 |
To Bad debts (new) |
2,000 |
|
|
To P&L account (b/f) |
1,500 |
|
|
To Balance c/d |
2,500 |
|
|
($52,000 – $2,000) x 5% |
|
|
|
|
7,000 |
|
7,000 |
Or
An unadjusted trial balance of ABC Trading Concern is given below:
Particulars |
Amount Dr |
Particulars |
Amount Cr |
Land and building |
4,00,000 |
Capital |
4,25,000 |
Debtors |
2,25,000 |
Creditors |
1,20,000 |
Bank balance |
1,45,000 |
Sales |
5,15,000 |
Salary |
80,000 |
Loan |
2,50,000 |
Office expenses |
40,000 |
|
|
Purchase |
3,80,000 |
|
|
Cash |
25,000 |
|
|
Prepaid insurance |
15,000 |
|
|
|
13,10,000 |
|
13,10,000 |
Additional information:
Office expenses prepaid $3,000
Land appreciated by 10%
Salary outstanding $1,500
Bad debts written off $2,500
Prepaid insurance expire $10,000
Required: Adjusted Trial balance [5]
[Answer: Adjustment = $57,000; Adjusted TB = $13,51,000]
SOLUTION
Journal Entry
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
|
Prepaid office expenses |
Dr |
|
3,000 |
|
|
To Office expenses |
|
|
|
3,000 |
|
(Being: office expenses paid in advance) |
|
|
|
|
|
|
|
|
|
|
|
Land and building |
Dr |
|
40,000 |
|
|
To Appreciation on land |
|
|
|
40,000 |
|
(Being: appreciation on land viz 400,000 x 10%) |
|
|
|
|
|
|
|
|
|
|
|
Salary account |
Dr |
|
1,500 |
|
|
To Salary payable |
|
|
|
1,500 |
|
(Being: salary payable) |
|
|
|
|
|
|
|
|
|
|
|
Bad debts account |
Dr |
|
2,500 |
|
|
To debtors account |
|
|
|
2,500 |
|
(Being: bad debts written off) |
|
|
|
|
|
|
|
|
|
|
|
Prepaid insurance expired account |
Dr |
|
10,000 |
|
|
To Prepaid insurance |
|
|
|
10,000 |
|
(Being: prepaid insurance expired) |
|
|
|
|
|
|
|
|
|
|
Adjusted Trial Balance
|
Trial Balance |
Adjustment |
Adjusted Trial Balance |
|||
|
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Land and building |
4,00,000 |
|
40,000 |
|
4,40,000 |
|
Debtors |
2,25,000 |
|
|
2,500 |
2,22,500 |
|
Bank balance |
1,45,000 |
|
|
|
1,45,000 |
|
Salary |
80,000 |
|
1,500 |
|
81,500 |
|
Office expenses |
40,000 |
|
|
3,000 |
37,000 |
|
Purchase |
3,80,000 |
|
|
|
3,80,000 |
|
Cash |
25,000 |
|
|
|
25,000 |
|
Prepaid insurance |
15,000 |
|
|
10,000 |
5,000 |
|
Capital |
|
4,25,000 |
|
|
|
4,25,000 |
Creditors |
|
1,20,000 |
|
|
|
1,20,000 |
Sales |
|
5,15,000 |
|
|
|
5,15,000 |
Loan |
|
2,50,000 |
|
|
|
2,50,000 |
|
13,10,000 |
13,10,000 |
|
|
|
|
Prepaid office expenses |
|
|
3,000 |
|
3,000 |
|
Appreciation on land |
|
|
|
40,000 |
|
40,000 |
Salary payable |
|
|
|
1,500 |
|
1,500 |
Bad debts |
|
|
2,500 |
|
2,500 |
|
Prepaid insurance expired |
|
|
10,000 |
|
10,000 |
|
Total |
|
|
57,000 |
57,000 |
13,51,500 |
13,51,500 |
Q: 16. On 1st January 2018 ABC Company purchased a motor van for $6,00,000. On 1st July 2019, the company purchased another van worth $8,00,000. On 1st July 2020, the first motor van was sold bearing the loss of $50,000 and on the same date, the company purchased another van for $10,00,000. Depreciation was charged @10% p.a. under the fixed installment method. The accounts of the company were closed on 31st December each year.
Required: Motor van account for the first three years [1+2+2 = 5]
[Answer: Depreciation in 2018 = $60,000;
Depn in 2019 ($60,000 + $40,000) = $100,000;
Depn in 2020 ($30,000 sold + $80,000 + $50,000);
Balance on 31 Dec 2020 = $16,30,000;
Loss (given); CSV (450,000 – 50,000 loss) = $400,000
SOLUTION
Given and working note:
Depreciation @ 10% p.a. on FIM
Particulars |
Date |
Assets |
Total |
|||||||
|
Old |
New |
Year |
V1 = 6,00,000 |
V = 8,00,000 |
V = 10,00,000 |
Depn |
|||
Purchase |
1 Jan |
|
2018 |
600,000 |
|
|
|
|
|
|
Depreciation |
31 Dec |
|
2018 |
60,000 |
|
|
|
|
|
60,000 |
Book value/Purchase |
1 Jan |
1 July |
2019 |
540,000 |
|
800,000 |
|
|
|
|
Depreciation |
31 Dec |
31 Dec |
2019 |
60,000 |
|
40,000 |
(6m) |
|
|
100,000 |
Book value/Purchase |
1 Jan |
1 July |
2020 |
480,000 |
|
760,000 |
|
10,00,000 |
|
30,000 + |
Depreciation |
31 Dec |
31 Dec |
2020 |
30,000 |
(6m) |
80,000 |
|
50,000 |
(6m) |
130,000 |
Balance |
|
450,000 |
|
680,000 |
|
950,000 |
|
|
CSV = $450,000 BSV – $50,000 loss = $400,000
Motor Van Account
For the year ended 31st December
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
2018 |
|
|
2018 |
|
|
1 Jan |
To Bank account (V1) |
6,00,000 |
Dec 31 |
By Depreciation |
60,000 |
|
|
|
Dec 31 |
By Balance c/d |
5,40,000 |
|
|
6,00,000 |
|
|
6,00,000 |
2019 |
|
|
2019 |
|
|
Jan 1 |
To Balance b/d |
5,40,000 |
Dec 31 |
By Depn (V1 + V2) |
1,00,000 |
Jul 1 |
To Bank account (V2) |
8,00,000 |
Dec 31 |
By Balance c/d |
12,40,000 |
|
|
13,40,000 |
|
|
13,40,000 |
2020 |
|
|
2020 |
|
|
Jan 1 |
To Balance b/d |
12,40,000 |
Jul 1 |
By Bank account (sold) |
4,00,000 |
Jul 1 |
To Bank account (V3) |
10,00,000 |
Jul 1 |
By Depn (on sold) |
30,000 |
|
|
|
Jul 1 |
By P&L account (loss) |
50,000 |
|
|
|
Dec 31 |
By Depn (V2 + V3) |
1,30,000 |
|
|
|
Dec 31 |
By Balance c/d |
16,30,000 |
|
|
22,40,000 |
|
|
22,40,000 |
Q: 17. Trial balance of Nabin Trader on 31st December 2021 is given below:
Particulars |
Amount Dr |
Particulars |
Amount Cr |
Selling expenses |
5,000 |
Gross profit b/d |
87,000 |
Interest |
5,000 |
Creditors |
8,000 |
Debtors |
25,000 |
Bank loan |
19,000 |
Bad debts |
2,000 |
Provision for bad debts |
2,000 |
Insurance |
1,000 |
Capital |
50,000 |
Salaries |
20,000 |
|
|
Investment |
40,000 |
|
|
Cash |
14,000 |
|
|
Machinery |
50,000 |
|
|
Rent |
4,000 |
|
|
|
166,000 |
|
166,000 |
Additional information:
a. Depreciation on machinery 10% p.a.
b. Salary payable $4,000
c. New bad debt $1,000
Required: (i) Profit and loss account; (ii) Balance sheet [3+2]
[Answer: Net profit = $42,000; BS = $123,000]
SOLUTION
Profit and Loss Account
Nabin Trader
As on 31st December 2021
Particulars |
|
Amount |
Particulars |
|
Amount |
To Salaries |
20,000 |
|
By Gross profit |
|
87,000 |
Add: Salary payable |
+ 4,000 |
24,000 |
By provision for bad debts |
|
2,000 |
To Bad debts |
2,000 |
|
|
|
|
Add: New bad debts |
+ 1,000 |
3,000 |
|
|
|
To Depn on machinery |
|
5,000 |
|
|
|
To Selling expenses |
|
5,000 |
|
|
|
To Interest expenses |
|
5,000 |
|
|
|
To Insurance expenses |
|
1,000 |
|
|
|
To Rent expenses |
|
4,000 |
|
|
|
To Net profit |
|
42,000 |
|
|
|
|
|
89,000 |
|
|
89,000 |
Balance Sheet
Nabin Trader
As on 31st December 2021
Liabilities |
|
Amount |
Assets |
|
Amount |
Capital |
50,000 |
|
Cash |
|
14,000 |
Add: Net profit |
+ 42,000 |
92,000 |
Debtors |
25,000 |
|
|
|
|
Less: Bad debts |
(1,000) |
|
Creditors |
|
8,000 |
|
24,000 |
|
Bank loan |
|
19,000 |
Less: PBD |
Nil |
24,000 |
Salary payable |
|
4,000 |
Investment |
|
40,000 |
|
|
|
Machinery |
50,000 |
|
|
|
|
Less: Depreciation |
(5,000) |
45,000 |
|
|
|
|
|
|
|
|
123,000 |
|
|
123,000 |
Q: 18. RC Club provides the following information:
Balance Sheet as on 1-1- 2020
Liabilities |
Amount Dr |
Assets |
Amount Cr |
Capital fund |
400,000 |
Fixed assets |
300,000 |
Loan |
60,000 |
Investment |
100,000 |
|
|
Closing cash balance |
60,000 |
|
460,000 |
|
460,000 |
Receipts and payments of on 31st Dec 2020:
Receipts: |
Payment: |
Subscriptions $50,000 |
Tournament expenses $10,000 |
Entrance fees $30,000 |
Wages expenses $20,000 |
Interest on investment $5,000 |
Printing expenses $7,500 |
Sale of old furniture $5,000 |
General expenses $12,000 |
|
Newspaper expenses $1,800 |
Other information and outstanding are given below:
Printing outstanding $500 and wages outstanding $3,000
40% of the entrance fee is to be capitalized
Fixed assets depreciate by 10%
Subscription due for the year $22,000
Required: (i) Receipts and payment account; (ii) Income and Expenditure account [2+3 = 5]
[Answer: (i) Cash balance = $98,700; (ii) Surplus = $15,200;
*Net Subscription = $72,000; Balance sheet = $490,700;
SOLUTION
Receipt and Payment Account
RC Club
As on 31st December 2021
Receipt |
Amount |
Payment |
Amount |
To Balance b/d (cash balance) |
60,000 |
By Tournament expenses |
10,000 |
To Subscription |
50,000 |
By Wages expenses |
20,000 |
To Entrance fees |
30,000 |
By Printing expenses |
7,500 |
To Interest on investment |
5,000 |
By General expenses |
12,000 |
To Sales of old furniture |
5,000 |
By Newspaper expenses |
1,800 |
|
|
By Balance c/d |
98,700 |
|
150,000 |
|
150,000 |
Income and Expenditures Account
RC Club
As on 31st December 2021
Expenditures |
|
Amount |
Incomes |
|
Amount |
To Tournament expenses |
|
10,000 |
By Subscription |
50,000 |
|
To Wages |
20,000 |
|
Less: O/s last year |
Nil |
|
Add: O/s current year |
3,000 |
23,000 |
Add: O/s current year |
22,000 |
|
To Printing expenses |
7,500 |
|
Add: Advance last year |
Nil |
|
Add: O/s current year |
500 |
8,000 |
Less: Advance next year |
Nil |
72,000 |
To General expenses |
|
12,000 |
By Entrance fees (30,000 x 60%) |
|
18,000 |
To Newspaper expenses |
|
1,800 |
By Interest on investment |
|
5,000 |
To Depreciation |
|
30,000 |
By Sales of furniture |
|
5,000 |
To Surplus |
|
15,200 |
|
|
|
|
|
100,000 |
|
|
100,000 |
Balance Sheet
RC Club
As on 31st December 2021
Liabilities |
|
Amount |
Assets |
|
Amount |
Capital fund |
400,000 |
|
Fixed assets |
300,000 |
|
Add: Entrance fees |
12,000 |
|
Less: Depreciation |
(30,000) |
270,000 |
Surplus |
15,200 |
427,200 |
Investment |
|
100,000 |
Loan |
|
60,000 |
|
|
|
|
|
|
Outstanding subscription |
(OSCY) |
22,000 |
Outstanding wages (OSCY) |
|
3,000 |
Cash balance |
|
98,700 |
Outstanding printing exp |
|
500 |
|
|
|
|
|
490,700 |
|
|
490,700 |
Q: 19 A. Shweta keeps her account under the single entry system. She started a business with $200,000 on 1st Jan 2020. She withdraws $2,000 per month for household work. The position of her business at the end of the year was as follows:
Fixed assets |
190,000 |
Creditors |
50,000 |
Inventory |
85,000 |
Debtors |
40,000 |
Due expenses |
10,000 |
Bank balance |
60,000 |
Required: (i) Closing statement of affairs; (ii) Statement of profit and loss [1+1 = 2]
[Answer: Closing capital = $315,000; Profit = $139,000]
SOLUTION
Statement of Affairs
As on 31 December 2020
Liabilities |
Amount |
Assets |
Amount |
Due expenses |
10,000 |
Fixed assets |
190,000 |
Creditors |
50,000 |
Inventory |
85,000 |
Closing capital (b/f) |
315,000 |
Debtors |
40,000 |
|
|
Bank balance |
60,000 |
|
375,000 |
|
375,000 |
Profit and Loss Statement
Particulars |
Amount |
Amount |
Closing capital |
|
315,000 |
Add: Drawings ($2,000 x 12) |
|
24,000 |
|
|
339,000 |
Less: Opening capital |
|
(200,000) |
Net profit for the year |
|
139,000 |
Q: 19 B. Following transactions of District Level Office are given:
(a) |
Dec 1 |
House rent @ $8,000 per month for three months paid to house owner Sailesh |
(b) |
Dec 15 |
Furniture advance of $5,000 was cleared as per bill of $6,000 and bank voucher of $1,000 submitted by Na. Su. Ramchandra |
(c) |
Dec 30 |
Staff remuneration of Kartik $30,000 (without provident fund) was distributed after deducting PF $6,000, social security $300 and income tax $1,500. |
Required: Journal vouchers
[Answer: (a) Advance rent = $24,000;
(c) Total salary = $33,000; DTCO = $25,200]
*Month has been changed, December = Chaitra
SOLUTION
|
|
AGF No. 203 |
||||||||||
|
Central/Province/Local Level |
|
||||||||||
|
Government of Nepal |
|
||||||||||
|
District Level Office |
Date: Dec 1 |
||||||||||
|
Office Code No. 125 |
JV No. 1 |
||||||||||
|
Journal Voucher |
Electronics Transaction No. |
||||||||||
Types of Journal Voucher: Expenses |
|
|||||||||||
Budget Sub-head No. |
|
|||||||||||
|
||||||||||||
SN |
Code |
Activities |
Particulars |
LF |
Sources |
Debit |
Credit |
|||||
|
Sub-head |
Program |
|
|
Level |
Bearer |
Type |
Payment |
Amount |
Amount |
||
|
No. |
Code No. |
|
|
|
Orgn |
|
mode |
|
|
||
a |
|
|
Dr House owner Sailesh |
|
|
|
|
|
24,000 |
|
||
|
|
|
(advance for rent) |
|
|
|
|
|
|
|
||
|
|
|
Cr DTCO single account |
|
|
|
|
|
|
24,000 |
||
|
|
|
|
|
|
|
|
|
|
|
||
Total |
24,000 |
24,000 |
||||||||||
|
||||||||||||
Amount in words: twenty-four thousand |
||||||||||||
Brief narration of transaction: advance house rent paid $8,000 per month for 3 months. |
||||||||||||
Attach documents: |
||||||||||||
|
||||||||||||
Journal Voucher
SN |
Code |
Activities |
Particulars |
LF |
Sources |
Debit |
Credit |
|||
|
Sub-head |
Program |
|
|
Level |
Bearer |
Type |
Payment |
Amount |
Amount |
|
No. |
Code No. |
|
|
|
Orgn |
|
mode |
|
|
b |
29311 |
|
Dr BE Furniture |
|
|
|
|
|
6,000 |
|
|
|
|
Cr DTCO single account |
|
|
|
|
|
|
1,000 |
|
|
|
Cr NaSu Ram Chandra |
|
|
|
|
|
|
5,000 |
|
|
|
(advance cleared) |
|
|
|
|
|
|
|
Total |
6,000 |
6,000 |
||||||||
Amount in words: six thousand. |
||||||||||
Brief narration of transaction: advance cleared by Ram Chandra |
Journal Voucher
SN |
Code |
Activities |
Particulars |
LF |
Sources |
Debit |
Credit |
|||
|
Sub-head |
Program |
|
|
Level |
Bearer |
Type |
Payment |
Amount |
Amount |
|
No. |
Code No. |
|
|
|
Orgn |
|
mode |
|
|
c |
21111 |
|
Dr BE Salary |
|
|
|
|
|
33,000 |
|
|
|
|
Cr Provident fund |
|
|
|
|
|
|
6,000 |
|
|
|
Cr Social security |
|
|
|
|
|
|
300 |
|
|
|
Cr Income tax |
|
|
|
|
|
|
1,500 |
|
|
|
Cr DTCO single account (b/f) |
|
|
|
|
|
|
25,200 |
|
|
|
|
|
|
|
|
|
|
|
Total |
33,000 |
33,000 |
||||||||
Amount in words: thirty thousand |
||||||||||
Brief narration of transaction: salary paid after deducting provident fund, social security and income tax |
Or
Following information are given by the Local Level Office:
Budget sub-head |
Annual budget |
Expenses upto November (Falgunj) |
Employee remuneration |
800,000 |
400,000 |
Office materials |
120,000 |
60,000 |
House rent |
140,000 |
80,000 |
Furniture and fitting |
80,000 |
35,000 |
Vehicles |
500,000 |
350,000 |
Expenditure for the month of December (Chaitra):
Dec 1: Purchase furniture $10,000
Dec 5: Purchase vehicles for $100,000
Dec 10: Advance rent paid for $10,000
Dec 28 Distributed $35,000 for employee’s remuneration after deducting income tax $1,000 and PF $8,000.
Required: Budget sheet [5]
[Answer: Balance of budget: $551,000]
SOLUTION
|
Central/Province/Local Level |
|
AGF No. 208 |
||||||||||
Stamp of |
Government of Nepal |
Stamp of |
|
||||||||||
Nepal Govt |
Office Code No. 235 |
State Govt |
|
||||||||||
|
|
|
|
||||||||||
|
Budget Sheet |
|
|
||||||||||
|
For December 2020 |
|
|
||||||||||
|
|||||||||||||
Budget Sub-head No. |
Name of office: Local Level Office |
||||||||||||
Part I: Budget |
Budget sub-head |
|
21111 |
21112 |
22311 |
29311 |
29511 |
||||||
|
|
Salary |
Office |
Rent |
Furniture |
Vehicle |
|||||||
|
Total |
|
Materials |
Expenses |
|
|
|||||||
Appropriation of approved annual budget for the fiscal year |
16,40,000 |
800,000 |
120,000 |
140,000 |
80,000 |
500,000 |
|||||||
Additional appropriation of the budget approved for FY |
|
|
|
|
|
|
|||||||
Add or subtract the amount of budget transfer |
|
|
|
|
|
|
|||||||
Add or subtract the amount of fund |
|
|
|
|
|
|
|||||||
The accumulated budget |
|
|
|
|
|
|
|||||||
Part II: Receipt |
Date |
VN |
Ref. |
Particulars |
|
|
|
|
|
|
|||
|
|
|
Budget release upto LM |
|
|
|
|
|
|
||||
|
|
|
Budget release for CM |
|
|
|
|
|
|
||||
|
|
|
Budget release upto CM |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Part III: Expenses |
Dec |
|
|
Expenditure upto LM |
9,25,000 |
400,000 |
60,000 |
80,000 |
35,000 |
350,000 |
|||
1 |
|
|
Furniture purchased |
10,000 |
– |
– |
– |
10,000 |
|
||||
5 |
|
|
Vehicle purchased |
1,00,000 |
– |
– |
– |
– |
100,000 |
||||
10 |
|
|
Advance rent paid |
10,000 |
– |
– |
10,000 |
– |
– |
||||
28 |
|
|
Salary paid |
44,000 |
44,000 |
– |
– |
– |
– |
||||
|
|
|
|
|
|
|
|
|
|
||||
Total expenditures |
10,89,000 |
444,000 |
60,000 |
90,000 |
45,000 |
450,000 |
|||||||
Balance of budget |
551,000 |
356,000 |
60,000 |
50,000 |
35,000 |
50,000 |
|||||||
Given and working note:
Dr BE Salary (b/f) 44,000
Cr IT 1,000
Cr PF 8,000
Cr DTCO 35,000
###########
Click on the link for YouTube videos: |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance & Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Final Accounts: Class 11 |
|
Adjustment in Final Accounts |
|
Capital and Revenue |
|
Single Entry System |
|
Non-Trading Concern |
|
Government Accounting |
|
Goswara Voucher (Journal Voucher) |
###########
Click on the photo for FREE eBooks
Section C: Long Answer Questions
Attempt All Questions [3 x 8 marks = 24 marks]
Q: 20. Information of Samriyan Enterprises is given below:
(a) Started a business with $200,000
(b) Purchase goods of $15,000 from Ram
(c) Goods sold in cash $18,000
(d) Cash paid to Ram $10,000
(e) Again goods purchase from Ram of $20,000
(f) Paid to Ram $24,000 in full settlement of his account.
Required: (i) Journal Entries; (ii) Necessary Ledger; (iii) (Trail Balance [3+4+1]
[Answer: Trial balance = $219,000]
SOLUTION
Journal Entries
In the book of Samriyan Enterprises
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
a. |
Cash account |
Dr |
|
200,000 |
|
|
To Capital account |
|
|
|
200,000 |
|
(Being: business started with cash) |
|
|
|
|
|
|
|
|
|
|
b. |
Purchase account |
Dr |
|
15,000 |
|
|
To Ram’s account |
|
|
|
15,000 |
|
(Being: goods or inventories purchase on credit) |
|
|
|
|
|
|
|
|
|
|
c. |
Cash account |
Dr |
|
18,000 |
|
|
To Sales account |
|
|
|
18,000 |
|
(Being: goods or inventories sold in cash) |
|
|
|
|
|
|
|
|
|
|
d. |
Ram’s account |
Dr |
|
10,000 |
|
|
To Cash account |
|
|
|
10,000 |
|
(Being: cash paid to him partially) |
|
|
|
|
|
|
|
|
|
|
e. |
Purchase account |
Dr |
|
20,000 |
|
|
To Ram’s account |
|
|
|
20,000 |
|
(Being: goods or inventories purchase on credit) |
|
|
|
|
|
|
|
|
|
|
f. |
Ram’s account |
Dr |
|
25,000 |
|
|
To Cash account |
|
|
|
24,000 |
|
To Discount received account |
|
|
|
1,000 |
|
(Being: cash paid and discount received ) |
|
|
|
|
|
|
|
|
|
|
Cash Account
Date |
Particulars |
LF |
Amount |
Date |
Particulars |
LF |
Amount |
a. |
To Capital |
|
200,000 |
d. |
By Bam |
|
10,000 |
c. |
To Sales |
|
18,000 |
f. |
By Ram |
|
24,000 |
|
|
|
|
|
By Balance c/d |
|
184,000 |
|
|
|
218,000 |
|
|
|
218,000 |
|
To Balance c/d |
|
184,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital Account
Date |
Particulars |
LF |
Amount |
Date |
Particulars |
LF |
Amount |
|
To Balance c/d |
|
200,000 |
a. |
By Cash |
|
200,000 |
|
|
|
|
|
|
|
|
|
|
|
200,000 |
|
|
|
200,000 |
|
|
|
|
|
By Balance b/d |
|
200,000 |
|
|
|
|
|
|
|
|
Purchase Account
Date |
Particulars |
LF |
Amount |
Date |
Particulars |
LF |
Amount |
b. |
To Ram |
|
15,000 |
|
By Balance c/d |
|
35,000 |
e. |
To Ram |
|
20,000 |
|
|
|
|
|
|
|
35,000 |
|
|
|
35,000 |
|
To Balance b/d |
|
35,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Ram’s Account
Date |
Particulars |
LF |
Amount |
Date |
Particulars |
LF |
Amount |
d. |
To Cash |
|
10,000 |
b. |
By Purchase |
|
15,000 |
f. |
To Cash |
|
24,000 |
e. |
By Purchase |
|
20,000 |
f. |
To Discount received |
|
1,000 |
|
|
|
|
|
|
|
35,000 |
|
|
|
35,000 |
Sales Account
Date |
Particulars |
LF |
Amount |
Date |
Particulars |
LF |
Amount |
|
To Balance c/d |
|
18,000 |
c. |
By Cash |
|
18,000 |
|
|
|
|
|
|
|
|
|
|
|
18,000 |
|
|
|
18,000 |
|
|
|
|
|
By Balance b/d |
|
18,000 |
|
|
|
|
|
|
|
|