BOMBAY SCOTTISH SCHOOL, MAHIM TERM 2 ASSESSMENT ACCOUNTS Grade :11 Max. Marks +80 Date 1 08.02.2022 No. of Questions 209 Duration : 3 hours No, of Printed sides: 07 (Answers to this paper must be written on the paper provided separately.) Candidates are allowed an additional 15 minutes of only reading the paper. They must NOT start writing during this time. Part I is Compulsory. Answer any five Questions from Part IT The intended marks for questions or parts of questions are given in the brackets []. Transactions should be recorded in the answer book. All calculations should be shown clearly. All working, including rough work, should be done on the same page as, and adjacent to, the rest of the answer. Nothing should be written on the question paper. 5 PART I (20 Marks) Attempt alll questions. Question 1 Answer briefly each of the following questions: i, What is meant by Deferred Revenue Expenditure? Give one example. State whether provisions are a charge against profit or an appropriation of profit. Give two reasons to support your answer. iii. State any two types of errors not disclosed by ‘Trial Balance, = The Building account of a high school stands in its book value at 21,00,000. The undermining expenses were incurred on the building during the year 2020-21. ‘ 1. White washing the entire building for 220,000. 2. Repairs of a few classrooms 21,000, 3. Addition of a new cycle parking shed 240,000. 4. Rebuilding of Library 725,000. State whether each of the above transactions is capital/ revenue in nature, [2] [2] [2] [2]v. Name the book maintained to record small payments. Who is 1) entrusted to maintain it? vi, Calculate the due date of following instruments: Q] 1. A promissory note dated 10th July, 2021 payable 3 months after date. 2. A bill of exchange date 1st January, 2022 payable after 60 days. vii. State any two advantages of preparing a Trial Balance. R viii, Explain contingent liability with the help of an example. a ix. Give the closing entry for discount received and discount allowed. Ry x. Name and explain any two fundamental accounting concepts Q reorganized by accounting standards. PART II (60 Marks) Attempt any five questions. Question 2 On 1" October, 2018, Power puff girls Ltd. purchased machinery worth %6,00,000. On 31 May, 2020, a part of machinery purchased on 1*,October, 2018 for 280,000 was sold for 230,000. On the same day additional machinery was purchased for 1,50,000. The company writes off machinery @ 20 % p.a. on the written down value method. The accounts are closed every year on 31" March every year. You are required to prepare: 1, Machinery Accounts for three years. 2, Provision for depreciation account for three years. 3. Machinery Disposal Account 113]Question 3 Harry Potter purchased goods from Ron Weasley for ¢2,000 on 1" January, 2020. He accepted a bill of exchange for the amount at two months drawn on him by Ron Weasley on the same date. On 4" January, 2020, Ron Weasley got the bill discounted with his bank @ 18 % p.a. At maturity, the bill was dishonoured, noting charges amounting to 215. However, Ron Weasley agreed to receive a sum of 2575 (including interest %60) from Harry Potter in cash and two bills first at one month for 500 and the other at 3 months for 71,000 in fulll settlement. The first bill was duly honoured. The second bill was dishonoured due to insolvency and could recover 30% of the amount due from him. | You are required to: [12] 1, Pass the journal entries in the books of Ron Weasely. 2, Prepare Bad Debts Account. Question 4 The books of Anakin Skywalker could not be tallied. The accountant transferred the difference of 21,270 in the suspense account on the debit side. The following mistakes were found later. 1, The purchase of 2400 from Kylo Ren was entered into the sales book but Kylo Ren’s personal account was rightly credited. 2. The sale of 2430 to Yoda was credited in his account as 2340. 3. The sale of old furniture of 2540 was credited to the sales account as 2450. 4, Goods worth 2100 were taken by proprietor for his personal use was not recorded in the books, 5. The sales of 2296 to Chewbacca was entered in the sales book as %269. 6. Sales returns book balance of 2210 was not included in the accounts. . Rest of the difference was due to a wrong total in the Sales Account in the ledger. You are required: x 1, Pass the Journal Entries to rectify the above error. 2. Prepare Suspense Account. [12]Question 5 A. Fred Flintstone has the following transactions with Barney Rubble. 2020 Dec 1 3 5 10 20 29 Balance due from Barney Rubble %1,000. Sold goods for 8800. Sold goods for 21,000. Returns Inward 2200. Sold goods for 2675. Barney Rubble sent a cheque for full and final settlement of his 5th December sales, less 5 % cash discount. You are required to show Barney Rubble Account in the books of Fred Flintstone for the month of December, 2020. (8) B. On 1* June, 2021, Goods Costing 25,000 were taken by Hulk for his Personal use on which CGST and SGST @ 9% was paid. On 2% June, 2021, Goods costing %3,000 were given as sample to Spiderman on which IGST @ 12 % was paid. ‘You are Question 6 required to pass the Journal Entries in the books of Hulk. [4] Following transaction of Mr. Bean for the month of November, 2021. a 4 8 12 14 30 Purchased building 10,00,000 and spent 21,50,000 on registration and sundry expenses, Spent %500 on refreshment of a customer. Sold old chairs and tables for 21,000. Opened a bank account with Bank Of India %5,000 Part of furniture destroyed by fire 25,000. Received a cheque for 230,000 as rent of a part of the building given on rent, You are required to: 1, Pass the Journal entries in the books of Mr Bean, 2. Prepare a Bank Account. [12]Question 7 Following is the Trial Balance of Ironman as on 31" March, 2021. Prepare: [12] 1, Trading, Profit and Loss Account. 2. Balance Sheet. Particulars Debit (%) Credit (2) Capital and Drawings 14,000 _1,00,000 Cash in hand 15,000 Wages 22,000 Debtors & Creditors 50,000 20,000 Returns 10,000 20,000 Insurance and Taxes 5,000 Commission 5,000 Furniture 6,000 Bad Debts 5,000 Provision for bad debts 7,000 Deposits 40,000 Opening Stock 30,000 Bills Receivable and Payable 32,000 25,000 Bank Loan 20,000 Purchases and Sales 1,20,000 150,000 Input CGST 10,000 Input SGST 10,000 Output IGST 6,000 Output CGST 8,000 Output SGST 8,000 3,69,000 3,69,000 The following adjustments are to be made: . Closing stock cost is 245,000. 2. Wages 21,000 and Taxes %2,000 are outstanding but Insurance %500 prepaid, . Commission 71,000 received in advance for next year. .. Provision for doubtful debts to be maintained at 210,000. . Depreciation on Furniture by 10% p.a. Qapo . Interest £2,100 is to be received on deposit and Interest on bank loan to be paid %3,000.Question 8 A. Enter the following transactions in a cash book with Cash, Bank and Discount columns and balance the cash book. [8] 2021 Cash In Hand = 75,000 September 1 Bank overdraft 35,000 2 Paid wages % 2,000 Ss Goods sold for cash and cash discount @2% 70,000 10 Cash deposited into bank % 40,000 15 Purchased goods (cost price) = 20,000 Discount received and amount paid by cheque ~% 600 20 Paid rent % 5,000 25 Paid house rent by cheque % 4,000 30 Paid salary % 10,000 Bank overdraft balance should be nil if the firm has sufficient balance. B. Following errors were located in the books of Donal Duck, 1. A credit purchase of goods from Pluto for ¢ 1,000 has been wrongly passed through the sales book. 2, Sales of 600 to Goofy were recorded as 60 in the sales book. 3. Credit sales to Daffy Duck %8,500 were posted to Daisy Duck as 25,800. You are required to pass the Journal Entries to rectify the error, [4]Question 9 A. Acompany purchased a plant for % 2,00,000 on 1* April, 2021. The useful life of the plant is 10 years and residual value is expected to be 20% of the original cost. The company closes its book of account on 31" march every year. You are required to: 1. Determine the rate of depreciation to be charged under the straight-line method. 2. Prepare the Plant Account for the first three year. [6] Following information is available from the books of M/s Rahul and sons, Delhi selling readymade garments, Sold goods to M/s Gupta 30 shirts @ 2400 each Less: 10% Trade discount 20 trousers @ 7600 each Sold goods to M/s Jain 100 shirts @ 400 each Less: 5% Trade discount 10 overcoat @ 21,00 each Goods given to M/s Thomas as a wedding gift worth 28,000. You are required to: 1. Prepare Sales Book. 2. Prepare Journal proper [6]