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INTERNATIONAL INDIAN SCHOOL RIYADHACCOUNTANCY WORK SHEET 1 – CLASS 11

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CHAPTER: INTRODUCTION & THEORY BASE ACCOUNTING

Q.1 Define any two of the following terms:(i) Assets (ii) Revenue (iii) Capital (March 2006. Marks 2)

Q.2 Give examples, explain each of the following accounting terms:(i) Short term liability (b) Revenue (iii) Fixed Assets

(March 2007. Marks 3)Q.3 Answer in one word:

(a) The amount invested by the owner in business.(b) A person to whom the firm owes money(c) Amount spent by a business in the process of earning revenue.

(March 2008. Marks 3)Q.4 Explain the following terms briefly:

(a) Profit (b) Expenses (c) Creditors (March 2009. Marks 3)

Q.5 Explain the following terms in brief:(i) Drawing (ii) Voucher (iii) Capital (March 2010. Marks 3)

Q.6 Explain the following terms:(a) Assets (b) Creditors (c) Capital (March 2011. Marks 3)

Q.8 What are the major limitations of accounting information?(March 2006. Marks 4)

Q.9 Describe the Accounting informational needs of external users.(March 2009. Marks 4)

Q.10 Who are the users of Accounting information? What purpose does it serve to various interest groups? (March 2005. Marks 6)

Q.11 Explain the Matching concept (March 2011. Marks 1)

Q.12What is meant by term ‘Accounting Standards’? (March 2006. Marks 2)

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Q.13What are Accounting Standards? (March 2007. Marks 2)

Q.14 Discuss cash basis as well as accrual basis of accounting.

(March 2007. Marks 2)

Q.15What will be the effect of the following on the Accounting equations?

a. Harish started business with cash Rs. 18,000.b. Purchased goods for cash Rs. 5,000 and on credit Rs. 2,000c. Sold goods for cash Rs. 4,000 (costing Rs. 2,400)d. Rent paid Rs. 1,000; and Rent Outstanding Rs. 200


Q.16 Prepare accounting equation from the following.

(a) Hari started business with cash Rs. 20,000

(b) Purchased machinery on credit Rs. 4,000

(c) Paid to creditors in full settlement Rs. 3,800

(d) Purchase goods for cash Rs. 7,000

(e) Sold goods for cash (costing Rs. 5,000) Rs. 4,500

(f) Paid rent Rs. 500 (March 2007. Marks 3)

Q.17. Fill in the blanks:

(a) The..................................concept states that is Straight line method of depreciation is used in one year, then it should also be used in the next year.

(b) Recognition of expenses in the same period as associated revenues is called .............................concept.

(c) Revenue is generally recognized at the point of sale denoted the concept of .........................................

(d) Recording business transaction on the basis of document is known as the

principle of ...........................................

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(e) The ..............................concept requires that accounting transactions should free from the bias of accountants and others.

(f) The concept of.......................................assumes that business has a distinct and separate entity from its owners. (March 2007. Marks 3)

Q.18. Prepare Accounting Equation on the basis of the following:

(i) Started business with cash Rs. 70,000, goods Rs. 30,000 and furniture Rs. 40,000.

(ii) Bought goods for Rs. 18,000on credit and Rs. 16,000 for cash.

(iii) Paid rent Rs. 2,000 and outstanding Rs. 1,600.


Q.19Prepare Accounting Equation on the basis of the following.

(i) Started business with cash Rs. 60,000.

(ii) Rent received Rs. 2,000.

(iii) Accrued Interest Rs. 500 (March 2009. Marks 3)

Q.20. Show the effect of following transactions on Accounting equation:

(i) Started business with cash amounting to Rs. 35,000 and goods Rs. 15,000

(ii) Interest due but not paid Rs. 100

(iii) Accrued interest. Rs. 500

(iv) Commission received in advance Rs. 625

(v) Interest on drawings Rs. 125 (March 2010. Marks 3)

CHAPTER: RECORDING OF TRANSACTIONS

Q.1 Pass necessary journal entries for the following.(a) Opened a Bank Account with ICICI Rs. 50,000.(b) Purchased goods from Kumar for cash Rs. 6,000.

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(c) Received Rs. 2,400 from Sahil which were written off as bad debts in the previous year. (March 2008. Marks 2)

Q.2 Journalise the following transactions:(a) Mohan is insolvent and only 60 paise per rupee were received from him out of a debt of Rs. 5,000(b) Issued a cheque in favour of landlord Mr Anwar towards rent Rs. 4,600

(March 2006. Marks 3)Q.3 Pass Journal Entries for the following.

(a) Received Cash for a bad debt written off last year Rs. 1,100(b) Received Rs. 975 from Hari Krishna in full settlement of his account Rs. 1,000(c) Goods Costing Rs. 11,000 was stolen in Transit.


Q.4 Pass journal entries for the following.(a) Cash paid for installation of machine Rs.10,000(b) Paid Rs. 270 to Muhammad in full settlement of his account of Rs.300(c) Goods withdrawn for personal use.Rs. 1,000 (March 2010. Marks 3)

Q.5 Journalise the following transactions:(a) Rent due to Land Lord Rs. 2,000.(b) Withdrew from Bank for private use Rs. 500.(c) Provide interest on Drawing Rs. 1,000. (March 2010. Marks 3)

Q.6 Journalise the following transactions:(i) Goods worth Rs. 5,000 were used by the proprietor for domestic purpose.(ii) Paid Rs. 3,000 as wages on installation of new machine(iii) Received Rs. 800 which was written off as dab debts in the previous year. (March 2011. Marks 3)

Q.7 Journalize the following transaction in the books of Harish.(a) Sudhir who owed Rs. 3,000 has failed to pay the amount. He pays a compensation of 40 paise in a rupee.(b) Plant and machinery purchased for Rs. 130,000 by paying Rs. 30,000 cash immediately.(c) Goods worth Rs. 12,000 were used by the proprietor and goods worth Rs. 1,000 were destroyed by fire.(d) Sold goods to Kapoor list price Rs. 2,000, trade discount 10% and cash

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discount 5%. He paid the amount on the same day and availed cash discount. (March 2007. Marks 4)

Q.8 Write Journal Entries for the following transactions and prepare Mohan’s A/c in Ledger.2012

Jan 1st Sold to Mohan Rs. 8,000Jan 5 Purchased from Mohan Rs. 5,000Jan 6th Returned to Mohan Rs. 1,500Jan 10th Paid to Mohan Rs. 2,500Jan 15th Received from Mohan Rs. 1,800Jan 20th Cash sales to Mohan Rs. 5,000Jan 25th Cash purchases by Mohan Rs. 8,000Jan 30th Mohan purchased goods from us Rs. 6,500Jan 31st Commission paid to Mohan Rs. 80

Q.9. Prepare Suresh’s A/c from the following. 2012March 1st Balance due from Suresh Rs. 15,000March 8th Bought from Suresh Rs. 13,000March 10th Cash Sales to Suresh Rs. 2,500March 14th Suresh purchased goods from us Rs. 8,000March 18th Suresh returned goods of Rs. 500March 25th Paid to Suresh Rs. 850March 31st Suresh settled his account by cheque. (Ans:Rs.10,350)

Q.10 Write up Ravi Kumar’s A/c from the following particulars.2011Dec 1st Amount due to Ravi Kumar Rs. 18,000Dec 4th Purchased from Ravi Kumar Rs. 2,0000Dec 10th Ravi Kumar purchased goods from us Rs. 5,000Dec 12th Goods returned by Ravi Kumar Rs. 500Dec 20th Sold to Ravi Kumar on Cash Rs. 1,500Dec 25th Paid to Ravi Kumar Rs. 1,000Dec 31st Ravi Kumar A/c is settle

CHAPTER: SUBSIDIARY BOOKS

Q.1 From the following transactions write up a Purchase Book of Verma Brothers, wholesale cloth dealer.

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April 1, 2007 Bought from M/s Birla Mills on credit: 100 pieces long cloth @ Rs. 80 per piece50 pieces shirting @ Rs. 100 per piece.

April 8, 2007 Purchased for cash from M/s Ambika Mills:50 pieces muslin @ Rs. 200 per piece.

April15, 2007 Purchased on credit from M/s Arvind Mills:20pieces coating @ Rs. 1,000 per piece.10 pieces shirting @ Rs. 100 per pieceTrade Discount 10%.

April 20, 2007 Purchased 5 typewriters on credit from M/s Bharat Type writers Ltd. @ Rs. 15,000 each.

(March 2008; Marks 3)

Q. 2 From the following transactions write up a Sales Book of Vijay & Co, furniture dealers.

April 1st ,2007 Sold to Delhi Furniture Mart on credit:5 Sofa Sets @ Rs. 2,500 per set10 steel cabinets @ Rs. 4,000 per cabinetTrade Discount 10%

April 8th ,2007 Sold for cash to Modern Furniture House:5 Almirahs @ Rs. 3,200 each

April 15th ,2007

Sold on credit to Poonam Furniture:50 Chairs @ Rs. 100 each.

April 20th, 2007

Sold old typewriter on credit to M/s Bharat & Co. @ 1,000


Q.3 Prepare a Purchase book from the following details.

Date Particulars2007Dec. 1 Purchased from Tata Mc Graw Hill, Delhi

20 Accountancy for Class XI @ Rs 250 each.100 Economics for Class XI @ Rs. 147 each.Trade discount @ Rs. 20 %

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Dec. 15

Purchased from Laxmi Kitab Ghar, Delhi.20 copies of English for Class XI @ Rs. 125 each.40 copies of commerce for Class XI @ Rs. 93 each.

Dec. 20

Cash Purchased from Dhanpart Rai & Sons Rs. 30050 reams of white paper @ Rs. 5 per ream100 reams fo ruled paper @ Rs. 7.50 each.


Q.4 Enter the following transactions in Two Columnar Cash Book with Cash and Bank Columns.

01.04.2007: Cash in hand Rs. 1,000 and Bank Overdraft Rs. 500.

05.04.2007: Received payment of loan Rs. 1,500 and deposited out

of it Rs. 1,000 in the bank.

12.04.2007: Withdrew from bank for private expense Rs. 200.

26.04.2007: Paid for office stationery by cheque Rs. 500.


Q. 5 Prepare a Double Column Cash Book from the following transactions.

01.01.2007 : Opening balance: cash:Rs.15,000 Overdraft at bank Rs.

10,000.

02.01.2007 : Cash received from sale of goods Rs. 30,000 and

deposited the same into bank on 4.1.2007.

10.01.2007 : Cash withdrawn from bank Rs. 5,000 for office use.(March 2009; Marks 4)

Q.6 Enter the following transactions in a two columnar cash book with cash & bank columns and balance it.

01-Jan-2009 Cash in hand Rs. 5,960 and bank overdraft Rs. 6,000

05-Jan-2009 Draws a cheque for office use Rs. 300

07-Jan-2009 Bought goods for cash Rs. 2,500

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10-Jan-2009 Received a cheque from M/s Omprakash Ltd. Rs. 500 and

deposited in the bank on the same day.

13-Jan-2009 Withdrew cash Rs. 350 for personal use.(March 2011; Marks 4)

Q.7 Zoom Co. Carry on business as a saree dealer from the following information prepare their Purchase Book.

Date Particulars.03.01.2007 Purchased on credit from Goyal Mills, Surat

33 polyester sarees @ Rs. 100 each24 cotton sarees @ Rs. 75 eachLess: Trade discount @ 10%

08.01.2007 Purchased for cash from Garg Mills, Koata30 Kota sarees @ Rs. 40 each25 Organza sarees @ Rs. 50 each

15.01.2007 Purchased on credit from Mittal Mills, Bangalore6 silk sarees @ Rs. 260 each70 cotton sarees @ Rs. 80 each


Q.8 Prepare Double Column Cash Book from the following information for the month of September 2005.

Sept.Amount

(Rs)01 Cash in hand 13,540

Cash at bank 27,56003 Cash Sales 20,00005 Purchased goods, paid by cheque 16,00006 Received cheque for goods sold

(deposited the same day)10,000

07 Deposited into bank 1,00008 Paid telephone expenses by cheque 30009 Withdrew from bank 1,00010 Cash withdrawn from bank for personal use 200


Q.9Prepare Double Column Cash Book from the following transactions.

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2008Jan.1 Commenced business with cash Rs. 50,000Jan.2 Deposited into bank Rs. 40,000Jan. 3 Bought goods by cheque Rs. 25,000Jan. 5 Sold goods for cheque Rs. 20,000 and deposited into bank the same day.Jan. 5 Paid to Arun by cheque Rs. 1,900 in full settlement of his account

Rs. 2,000.Jan. 6 Drew from bank for office use Rs. 1,000.


Q.10 Enter the following transactions into as Analytical Petty Cash Book and also show Ledger Accounts.

2012 Rs.Jan 1 Cheque received from Head Cashier (Cheque No. T 3209)

2,000.00

” 2 Stationary purchased 85.50 ” 4 Telephone Expenses 50.00 ” 5 Tea expenses 60.00 ” 8 Bus fair 50.00 ” 10 Courier charges 100.00 ” 12 Carriage expenses 85.50 ” 15 Entertainment 200.00 ” 18 Postal stamps, Covers, Inland Letters etc. 320.00 ” 20 Pen, Pencils, Pins etc. 80.00 ” 25 Short advertisement in ‘Times of India’ 225.00 ” 28 Chair repairing 134.00 ” 29 Auto charges 120.00 ” 30 Cartage expenses 100.00 ” 31 Refreshment expenses 150.00

CHAPTER: BILLS OF EXCHANGE

Q.1 What is meant by retiring of a bill. (March 2008. Marks 1)

Q.2 Calculate the due date of the bill, if the bill is drawn on 14th March 2007 and payable after 3 months. (March 2008. Marks 1)

Q.3 How will you treat noting charges in the books of drawer? If: the bill is retained by the drawer. (March 2009. Marks 1)

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Q.4 What is meant by maturity of a bill of Exchanges? (March 2009. Marks 1)

Q.5 On 01.10.2002, A sold goods to B for Rs. 3,000 less 10% trade discount and 5% for cash in one month. These bills were paid by cheque on 2nd November, further goods were invoiced to “B” for Rs. 1,800. For these, B accepted a bill at two months from the date of invoice. On presentation of the bill on the due date it was dishonoured and noting charges of Rs. 25 were paid by bank. “B” was later declared insolvent on 11th April 2003, “A” received a first and final dividend of 25 paise in the rupee. Show the transactions in the journal of “A”.


Q.6 On 10th Jan, 2003 Long got a two months acceptance from Short for Rs. 6,000. On 20th Jan Long discounted the bill with his bank for Rs. 5,780. On due date the bill is dishonoured and bank paid noting charges Rs. 70. On request Long drew a new bill on 15th March for a further period of one month for which an interest Rs. 180 is charged. The second bill is endorsed to Stout, which is met on due date.

Give entries in the books of Long. (March 2006. Marks 7)

Q.7 Anil sold goods Rs. 14,000 to Bala on 31st October, 2005 and drew two bills of Rs. 6,000 and Rs. 8,000 payable after three and four months respectively. He endorsed the first bill in favour of his creditor Chandran. The second bill was discounted on Dec 3rd, 2005 at 12 % per annum. The first bill was met on maturity but the second bill was dishonoured and the bank paid Rs. 50 as Noting Charges.

On March 03, 2006 Bala paid Rs. 4,000 and noting charges in cash and accepted a new bill at two months after date for the balance plus interestRs.100. The new bill was met on maturity by Bala.

You are required to give the journal entries in the books of Anil.


Q.8 On 1st July 2007 Rohan draws a bill on Mohan for Rs. 10,000 payable three months due for goods sold, duly accepted by Mohan. Rohan gets the bill discounted with his Bank on 4th August, at a discount of 12% per annum. On due date bank returned the bill dishonoured with noting charges of Rs. 100. Mohan paid Rs. 2,100 in cash and requested to draw another bill on him for the balance amount for 2 months with interest @ 12% p.a. which Rohan did. Before due date Mohan became insolvent and his estate paid 50% as first and final instalment.

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Give journal entries in the books of Rohan.

OR

On March 1st 2007, Ravi drew upon Navin a bill of exchange for Rs. 25,000 payable after one month, which the latter accepted. On the due date, Navin dishonoured his acceptance. Pass necessary journal entries in the books of Ravi with him till maturity.

When the bill was retained by Ravi with him till maturity. When the bill was discounted by Ravi immediately with his banker

@ 6 % p.a. When the bill was endorsed to is creditor Ganesh. When the bill was sent to his bank for collection a few days before

maturity. (March 2008. Marks 8)

Q.9 On 15th April, 2003 ‘B’ accepted three Bills of Exchange for Rs. 24,000; No. 1 for Rs. 7,000 for one month; No. 2, Rs. 8,000 for two months; and No. 3, for Rs. 9,000 for 3 months.

On 20th April ‘A’ endorsed Bill No. 1 to his creditor ‘C’ to clear his account, discounted his Bill No. 2 on 22nd April with his bankers for Rs. 7,920 and retained the third bill till maturity.

Bill No. 1 was met on Maturity. Bill No. 2 was dishonoured on due date;

Rs. 100 being paid for Noting charges. ‘A’ charged ‘B’ for Rs. 150 for interest and drew on him a fourth bill for Rs. 8,250 for three months and ‘B’ accepted it and returned. Bill No. 3 and 4 were met on due date.

Pass necessary journal entries in the books of A.

OR

Record the following in the journal.

(i) Ram’s acceptance for Rs. 20,000, renewed for three months plus

interest @ 5% per annum.

(ii) Shyam’s acceptance for Rs. 4,500, due this day, returned

dishonoured, Noting Charges Rs. 10

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(iii) Before the due date of the bill for Rs. 300 X, the acceptor

approaches us and pays Rs. 100 in Cash and asks us to draw on him another bill for Rs. 215 being for interest, we agree to it. March 2009. Marks 8)

Q.10 Ashok sold goods of Rs. 14,000 to Bishan on October 30, 2008 and drew three bills for Rs. 2,000, Rs. 4,000 and Rs. 8,000 payable after two, three and four months respectively. The first bill was kept by Ashok with him till maturity. He endorsed the second bill in favour of his creditor Chetan. Third bill was discounted on 3d December, 2008 @ 12% p.a. The first and second bills were duly met on maturity but the third bill was dishonour and bank paid Rs. 50 as noting charges. On March 3rd 2006 Bishan paid Rs. 4,000 and noting charges in cash and accepted a new bill at two months after date for the balance plus interest Rs. 100. The new bill was met on maturity by Bishan.

You are required to give journal entries in the books of Ashok.(March 2010.

Marks 8)

CHAPTER: TRIAL BALANCE AND RECTIFICATON OF ERRORS

Q.1 Define Trial Balance (March 2008. Marks 1)

Q.2 Name any two errors that are not disclosed by trial balance.


Q.3 What is a Suspense Account. (March 2008. Marks 1)

Q.4 What is the purpose of preparing Trial Balance? (March 2010. Marks 1)

Q.5 Name any two errors that do not affect the Trial Balance?

Q.6 Rectify the following errors.

(a) A purchase of Rs. 536 has been posted to the creditor’s account as Rs. 480.

(b) The total of the Bills Receivable book has been added Rs. 1,000 short.

(c) A cheque for Rs. 929 deposited in the bank on 29th May, 1991 was wrongly entered in the cash book as Rs. 992 through the correct amount was posted in the account of the customer.

(d) Closing stock as on 30th June, 1995 was Rs. 9,570 but the same was

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wrongly carried forward as Rs. 9,750 in the books on 1.7.1996. (e) A sum of Rs. 800 written off on Machinery has not been posted to

depreciation A/c.(f) Rs. 1,000 paid as repairing charges on the reconditioning of a newly

purchased second hand Machinery debited to General Expenses A/c.


Q.7 Rectify the following errors:

a) Rs. 250 received from Gian were debited to is account.b) Office expenses of Rs. 15 were posted as Rs. 50.c) The total of Purchases Book was Rs. 2,650. It was carried forward to

the next page as Rs. 6,250.d) Sales Book was overcast by Rs. 300.

e) A credit sale of Dev of Rs. 6,000 was passed through Purchases Book. However, Dev’s account was correctly posted.

f) Rs. 1,250 paid for wages for construction of Building was charged to Wages Account. (March 2006. Marks 6)

Q.8 Rectify the following errors.

(a) Credit purchases from Ramu & Co. Rs. 5,000 were recorded through

sales book. However, Ramu & Co. were correctly credited.

(b) Furniture purchased for Rs. 5,000 was posted to purchases account as

Rs. 500.

(c) Goods returned by Taj Rs. 3,000 were taken into stock. No entry was

recorded in the books.

(d) Cash received from Mohit Rs. 4,000 was posted to Mahesh’s Account as Rs. 1,000.

(e) Wages paid for installation of machinery Rs. 600 was posted to Wages account.

(f) Sales return book overcast by Rs. 1,000. (March 2007. Marks 6)

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Q.9 How would you rectify the following errors:

(i) Rs. 5,000 spent on extension of building have been debited to building

repairs account.

(ii) A sale of furniture amounting to Rs. 3,000 had been credited to Sales

Account.

(iii) Rs. 500,000 paid for purchase of car for one of the partners had been

charged to trade expenses account.

(iv) The total of purchase book was cast short by Rs. 2,500.

(i) An amount of Rs. 375 posted in Debit side of Commission Account instead of Rs. 275.

(ii) Own business material Rs. 8,000 were used for construction of building no, adjustment was made in the books. (March 2008. Marks 6)

Q.10.Rectify the following errors.

(1) Furniture Purchased for Rs. 10,000 wrongly debited to purchase account as Rs. 4,000.

(2) Goods purchased from Masood for Rs. 3,000 was passed through Sales book.

(3) Rent amounting to Rs. 900 paid was credited to Rent Account.

(4) Returns outward book was overcast by Rs. 1,000.

(5) A discount allowed to a customer has been credited to him as Rs. 136 in the place of Rs. 154.

(6) A sale of Rs. 1,188 was posted as Rs. 990 in the Sales Account.


Prepared by

Teacher, XI- XII Boys Section

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