Sub. code 103
NEB — GRADE XI
Set E
Model Question
Class 11 Accounting Model Question Set E
The candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.
Pass Marks : 32
सबै प्रश्नको उत्तर दिनुहोस् । (Attempt All Questions)
This model question paper is for Class 11 Accounting, Set E (subject code 103), carrying full marks of 75 with a pass mark of 32, to be completed within 3 Hours. Model answers are available for questions that have one — reveal them with a free account (a few reveals) or a paid plan (unlimited).
Group A
Very short question answer
How would you define bookkeeping?
Mention a key characteristic or feature of accounting.
What does accounting actually mean?
Explain the principle known as the "business entity concept."
Define a journal in accounting.
Briefly explain the fundamental concept behind the double-entry system.
Give a primary benefit or importance of double-entry bookkeeping.
What is meant by cash-basis accounting?
What does the acronym GAAP stand for?
Pass the necessary journal entry for outstanding wages amounting to Rs. 1,000.
Write any one difference between capital expenditure and revenue expenditure.
Group B
Short answer question
A.Briefly outline the primary branches of accounting.
B.Formulate an accounting equation based on the following business activities (with updated figures):
i. Commenced a fresh enterprise with cash amounting to Rs. 4,50,000.
ii. Acquired merchandise on credit worth Rs. 50,000.
iii. Disposed of merchandise (sold goods) for Rs. 1,50,000 in cash (assuming cost price is equal or handled via cash/stock change).
iv. Disbursed staff wages totaling Rs. 20,000.
Required:Accounting Equation
(A) The following financial balances and events are gathered from the ledgers of Mr. Karan Bhatt:
January 1: Opening balances of cash and bank stand at Rs. 15,000 and Rs. 60,000 respectively.
January 5: Acquired merchandise from Rohit for Rs. 40,000 and made a partial bank settlement via cheque of Rs. 30,000.
January 8: Disbursed office staff salary of Rs. 8,000.
January 22: Disbursed a cheque of Rs. 10,000 to Rohit for complete account settlement.
Required: Prepare a Triple Column Cash Book.
(B) Record the following purchasing transactions in the Purchase Book:
i. Purchased from Mr. Sah (Parsa):
15 ceiling fans at Rs. 1,200 per unit
10 table lamps at Rs. 600 per unit
ii. Purchased from Mr. Kumar (Pokhara):
15 pressure cookers at Rs. 600 per unit
25 electric heaters at Rs. 400 per unit (subject to a 5% Trade Discount)
From the data detailed below, construct a Bank Reconciliation Statement:
i. Debit balance as per cash book: Rs. 25,000
ii. Cheques dispatched but not yet presented for clearance: Rs. 4,500
iii. Cheques deposited into bank but uncollected: Rs. 3,500
iv. Life insurance premium paid directly by bank: Rs. 2,000
v. Bank service charges debited in pass book: Rs. 800
(a) Rectify the following errors discovered after the preparation of the trial balance (with updated figures): i. Cash sales amounting to Rs. 50,000 made to Sonu were incorrectly debited to his personal account.
ii. The sale of old office furniture for Rs. 15,000 was erroneously credited to the sales account.
iii. Merchandise purchased from Hari worth Rs. 30,000 was mistakenly recorded through the sales book.
(b) The following particulars are extracted from the books of a concern: i. Opening balance of provision for bad debts as of 1 st Jan 2080: Rs. 6,000
ii. Bad debts written off during the year: Rs. 2,000
iii. Sundry debtors at the close of the year: Rs. 60,000
iv. Closing provision for bad debts to be maintained at 10% on debtors.
Required: Prepare the Provision for Bad Debts Account.
Unadjusted trial balance of ‘B’ trading concern is given below:
Particulars | Debit (Rs.) | Particulars | Credit (Rs.) |
Plant and Machinery | 400,000 | Capital | 425,000 |
Debtors | 225,000 | Creditors | 120,000 |
Bank Balance | 145,000 | Sales | 515,000 |
Salary | 80,000 | Loan | 250,000 |
Office expenses | 40,000 | ||
Purchase | 380,000 | ||
Cash | 25,000 | ||
Prepaid insurance | 15,000 | ||
Total | 13,10,000 | Total | 13,10,000 |
Additional information:
a) Salary outstanding Rs. 1,500
b) Depreciation on Plant & Machinery @ 10% p.a.
c) Prepaid insurance expire Rs. 10,000
Required: Adjusted Trial balance
The balance sheet as on Baishak 2072 and receipts and payments account for the year ended Chaitra 2073 of a public organization are as under:
Balance Sheet as on Baishak 2080
Liabilities | Rs. | Assets | Rs. |
Capital Fund | 3,02,500 | Furniture | 40,000 |
Salary due | 1,000 | Buildings | 2,00,000 |
Advance Subscription | 2,000 | Subscription Due | 4,000 |
Cash in Hand | 25,000 | ||
Total | 3,05,500 | Total | 3,05,500 |
Receipts and Payments Account for the year ended Chaitra 2081
Receipts | Rs. | Payments | Rs. |
To Balance b/d | 25,000 | By Salaries | 15,000 |
To Subscriptions: for 2080 | 4,000 | By Office operation expenses | 10,000 |
for 2081 | 90,000 | By Miscellaneous expenses | 18,000 |
To Other income | 15,000 | By Telephone charges | 8,000 |
To Entrance fees | 30,000 | By Closing cash balance | 1,13,000 |
Total | 1,64,000 | Total | 1,64,000 |
Additional Information:
i. Subscription due for the current year is Rs. 5,000.
ii. Depreciation on furniture is to be charged at 10% p.a.
iii. Outstanding salary at the end of the year is Rs. 8,000.
iv. 60% of entrance fees is to be capitalized.
Required:
Income and Expenditure Account
Balance Sheet as on Chaitra 2081
A. Statement of Affairs and Statement of Profit or Loss
Smita commenced her enterprise with a starting capital of Rs. 5,00,000 on January 1, 2022. At the end of the year on December 31, 2022, her financial details stood as follows:
Bank Balance: Rs. 2,00,000
Inventory (Stock): Rs. 60,000
Creditors: Rs. 40,000
Furniture: Rs. 1,20,000
Debtors: Rs. 1,80,000
Outstanding Expenses: Rs. 30,000
Drawings made during the year: Rs. 50,000
Required:
Formulate the Closing Statement of Affairs.
Formulate the Statement of Profit or Loss.
B. Government Accounting (Journal Vouchers)
A government office executed the following transactions:
Acquired furniture items valued at Rs. 1,50,000 through bank cheque payment.
Cleared a previously issued advance amounting to Rs. 40,000.
Disbursed gross staff remuneration amounting to Rs. 1,80,000 after statutory deductions of Rs. 15,000 for income tax and Rs. 10,000 for the provident fund.
Required: Prepare the Government Journal Vouchers (AGF No. 1) for the above transactions.
A manufacturing enterprise purchased a machine for Rs. 7,00,000 on 1st Baisakh 2080. On 1st Kartik 2081, another machine was purchased for Rs. 9,00,000. On 1st Kartik 2082, the first machine was sold for Rs. 4,50,000, and a new machine was purchased for Rs. 12,00,000 on the same date.
Depreciation is charged at 10% per annum under the Straight Line Method (SLM). The books of accounts are closed on 31st Chaitra every year.
Required: Prepare the Machinery Account for three consecutive financial years (2080/81, 2081/82 and 2082/83).
Group C
long answer questions.
Information of Sumit Enterprises is given below:
a. Started business with cash of Rs. 8,00,000
b. Purchased goods on cash of Rs. 2,00,000
c. Sold a vehicle for Rs. 3,50,000
d. Paid rent of Rs. 30,000
e. Deposited cash into bank of Rs. 50,000
Required:
a) Journal Entries
b) Necessary Ledger
c) Trial Balance
Following is the trial balance of Big Company as on Ashadh 31, 2080:
Particulars | Debit (Rs.) | Particulars | Credit (Rs.) |
Opening stock | 90,000 | Share capital | 4,00,000 |
Purchases | 4,00,000 | Bank loan | 2,50,000 |
Salary | 1,50,000 | Sales revenue | 8,40,000 |
Rent | 90,000 | Retained earnings | 70,000 |
Commission | 25,000 | Creditors | 50,000 |
Insurance | 20,000 | Dividend received | 25,000 |
Bank balance | 2,50,000 | ||
Debtors | 1,20,000 | ||
Plant and machinery | 2,00,000 | ||
Goodwill | 40,000 | ||
Other fixed assets | 2,50,000 | ||
Total | 16,35,000 | Total | 16,35,000 |
Additional Information:
Closing stock of Rs. 80,000
Rent outstanding Rs. 10,000
Depreciate plant and machinery by 10%
Income tax rate is 30%
Required: a) Multi-step income statement b) Balance sheet
What is government accounting ? Write any five objectives of government accounting.
a) The following operational transactions are given to prepare a Bank Cash Book. All transactions are recorded as budget releases after their payment:
Magh 1: Paid Rs. 25,000 as travelling expenses in advance to Mr. Tandukar.
Magh 9: Issued a cheque of Rs. 30,000 for purchasing vehicles.
Magh 22: Cleared the advance of Mr. Tandukar against the submission of a traveling expense bill of Rs. 30,000, and the excess amount of Rs. 5,000 was disbursed to him.
Magh 24: Distributed total monthly salary of Rs. 60,000 after statutory deductions of Rs. 10,000 for the Provident Fund and Rs. 5,000 for Income Tax.
b) The following budgetary and expenditure data are provided:
B.H. No | Budget Heads | Annual Budget (Rs.) | Expenditure upto Falgun (Rs.) | Expenditure of Chaitra (Rs.) |
21111 | Employee remuneration | 2,00,000 | 90,000 | 15,000 |
22111 | Water and Electricity | 15,000 | 8,000 | 1,500 |
28142 | House rent | 20,000 | 10,000 | 2,000 |
22612 | Travelling expenses | 50,000 | 12,000 | 3,000 |
31123 | Furniture & fixture | 2,50,000 | 80,000 | 10,000 |
31122 | Machinery & tools | 1,00,000 | 30,000 | 6,000 |
Total | 6,35,000 | 2,30,000 | 37,500 |
Additional Information:
Uncleared advance on the purchase of furniture: Rs. 10,000.
Required:
Bank Cash Book
Statement of Expenditure
Paper Overview & Analysis
Set E
Year
Model Question
Type
75
Full Marks
32
Pass Marks
3 Hours
Duration
22
Question Items
Question Type Breakdown
Group Breakdown