File 9563

ACCOUNTANCY
XI
FULL SYLLABUS
1. Govind maintains his Current Account with HDFC Bank. On 31st March, 2023, the bank column of Cash Book [4]
showed an overdraft of ₹ 42,000 in his Current Account. From the following particulars, prepare Bank
Reconciliation Statement as on 31st March, 2023:
i. A cheque of ₹ 1,040 deposited was dishonoured and bank charges debited in the Pass Book were ₹ 110. It
was not recorded in the Cash Book.
ii. Out of the total cheques of ₹ 1,00,000 issued, cheques aggregating ₹ 30,000 were debited in March, cheques
aggregating ₹ 40,000 were debited in April, and the rest have not yet been debited.
iii. Payments side of the Cash Book is undercast by ₹ 3,000.
iv. A cheque of ₹ 4,000 received from Om on 20th March, 2023 was recorded in the discount column of the
Cash Book and was not banked.
v. ₹ 80 for bank charges were recorded two times in the Cash Book whereas bank levied annual charges of ₹
70, which were not recorded in the Cash Book.
2. On 31st March 2018, the Bank Pass Book of Naresh & Co. showed an overdraft of Rs.10,700. From the [4]
following particulars prepare Bank Reconciliation Statement
i. Cheques issued before 31-03-2018 but presented for payment after that date amounted to Rs.900.
ii. Cheques paid into the Bank but not collected and credited until 31-03- 2018 amounted to Rs.2,200.
iii. Interest on overdraft amounting to Rs.1,200 did not appear in the Cash Book.
iv. Rs.5,000 being interest on investments collected by the Bank and credited in the Pass Book were not shown
in the Cash Book.
v. Bank charges of Rs.50 were not entered in the Cash Book.
vi. Rs.800 in respect of dishonoured cheque were entered in the Pass Book but not in the Cash Book.
3. Prepare Bank Reconciliation Statement as on 31st January, 2023, if Cash Book of Mr. Suraj showed a credit [4]
balance of ₹ 20,100.
i. The bank had paid fire insurance premium of ₹ 550 which does not appear in the Cash Book.
ii. Cheques for ₹ 25,000 issued during January, but cheques for only ₹ 18,500 were presented for payment.
iii. Interest collected by bank ₹ 740.
iv. Cheques of ₹ 8,700 were deposited into bank, but cheques for ₹ 7,000 were cleared till 31st January, 2023.
v. A customer deposited ₹ 620 directly into bank without informing Mr. Suraj.
4. The Cash Book of Mr. Sharma showed a balance, of 3,560 as on 31st Dec. 2013 at the bank whereas Pass Book [4]
showed a balance of Rs. 4,230. Comparison of the Cash Book and Pass Book revealed the following:
i. The Bank has debited Mr. Sharma With Rs. 460, the annual premium of his life Policy according to his
standing instructions and Rs. 20 as Bank charges.
FOLLOW US
Head Oﬃce: 106- VIII, IX,X BOARD, NTSE, FOUNDATION, XI, XII COMMERCE | CA- FOUNDATION 1
@braincafesurat
ii. Mr. Sharma paid into the Bank cheques totalling Rs. 3,100 on Dec. 26, 2013 of which those for Rs. 2,500
were collected in December. One cheque for Rs. 200 was returned dishonoured on 2nd Jan. 2014.
iii. The Bank has credited Mr. Sharma by Rs. 1,600, the proceeds of a bill.
iv. Cash collected, on 31st Dec. 2013 totalling Rs. 850 was entered in the Cash Book in the Bank column on the
same date but banked on 2.1.2014.
v. Mr. Sharma issued cheques totalling Rs. 2,300 in the month of Dec. out of which cheques for Rs. 1,000 have
not been presented for payment for payment till 31st Dec.
5. You are given the following particulars: [4]
i. Debit balance in the bank column as per the Cash Book on 31st March, 2019 was ₹ 50,000.
ii. Cheques and drafts deposited into the bank but not collected ₹ 5,000.
iii. Cheque of ₹ 10,000 was issued but not presented for payment.
iv. Bank charges of ₹ 50 for expenses were not recorded in the Cash Book.
v. Interest of ₹ 5,000 wrongly debited by the bank and also recorded in the Cash Book was reversed by it on
31st March, 2019.
vi. Interest on investments ₹ 3,000 was collected by the bank but not recorded in the Cash Book.
Pass necessary entries in Cash Book and prepare Bank Reconciliation Statement on 31st March, 2019.
6. A Company purchased on 1st April, 2009, machinery for ₹80,000. On 1st October, 2010, it purchased another [4]
machine for ₹50,000 and on 1st October, 2011, it sold off the first machine purchased in 2009 for ₹23,000.
Depreciation was provided on the machinery at the rate of 20% p.a. on the original cost annually. Give the
Machinery Account for four years commencing from 1st April, 2009. Accounts are closed on 31st March every
year.
7. A Company purchased a second-hand machine on 1st April, 2021, for ₹ 30,000 and immediately spent ₹ 4,000 [4]
on its repair and ₹ 1,000 on its installation. On Oct. 1, 2023, the machine was sold for ₹ 25,000. Prepare
Machine Account after charging depreciation @ 10% p.a. by diminishing balance method, assuming that the
books are closed on 31st March every year. IGST was charged @12% on purchase and sale of machine.
Note: There will be no effect of IGST on Machine A/c.
8. Books of Mumbai Chemicals Ltd. showed the following balances on 1st April 2022: [4]
Machinery A/c 10,00,000
Provision for Depreciation A/c 4,05,000
On 1st April, 2022, a machine which had a cost of ₹ 2,00,000 on 1st October, 2019 was sold for ₹ 80,000. The
firm writes off depreciation @ 10% p.a. under the Reducing Balance Method and its accounts are made up on
31st March each year. You are required to prepare the Machinery A/c and Provision for Depreciation A/c for the
year ending 31st March 2023.
9. A Company, which closes its books on 31st March every year, purchased on 1st July, 2020, machinery costing ₹ [4]
30,000. It purchased further machinery on 1st January, 2021, costing ₹ 20,000 and on 1st October, 2021, costing
₹ 10,000. On 1st April, 2022, one-third of the machinery installed on 1st July, 2020, became obsolete and was
sold for ₹ 3,000.
Show how the machinery account would appear in the books of the Company, it being given that machinery was
FOLLOW US
@braincafesurat
depreciated by Diminishing Balance Method at 10% per annum. What would be the balance of Machinery
Account on 1st April, 2023?
10. Manas L.td. purchased on 1st July 2013 machinery costing Rs 3,00,000. It purchased additional machinery on [4]
1st January 2014 costing Rs 2,00,000 and on 1st October 2014 costing Rs 1,00,000.
On 1st April 2015, one-third of the machinery which was purchased on 1st July 2013 become obsolete due to
industrial accident and was sold for Rs 40,000.
Prepare the Machinery Account for three years as would appear in the books of the company it is given that
depreciation was charged @ 10% p.a. by fixed installment method. Find the balance of machinery account on
1st April 2016.
11. State with reasons whether the following are capital or revenue expenditures: [4]
i. A new machine is purchased for ₹ 60,000, ₹ 800 were spent on its carriage and ₹ 1,500 were paid as wages
for its installation.
ii. A sum of ₹ 40,000 was spent on painting the new factory.
iii. ₹ 6,000 were paid for the annual insurance premium.
iv. ₹ 20,000 were spent on repairs before using a second-hand generator purchased recently.
v. ₹ 5,000 were spent on the repair of machinery.
vi. ₹ 50,000 were spent for air conditioning of the office of the manager.
12. Calculate Gross Profit, Operating Profit and Net Profit from the following: [4]
Particulars ₹ Particulars ₹
Opening Stock 2,00,000 Commission Paid 2,400
Purchases 19,00,000 Commission Received 6,000
Sales 25,00,000 Travelling Expenses 4,800
Purchase Returns 70,000 Office Expenses 3,500
Sales Returns 1,00,000 Interest on Long Term Loans 22,000
Wages 80,000 Dividend on Investments 2,800
Advertising 12,000 Printing & Stationery 3,600
Salaries 1,78,000 Loss on sale of Machinery 35,000
Rent & Taxes 62,000 Carriage Outwards 1,400
Lighting 15,000 Loss by Theft 25,100
Gain on Sale of Building 50,000
Closing Stock was valued at ₹ 2,50,000

13. Following balance is extracted from the books of a trader ascertain gross profit, operating profit and net profit [4]
for the year ended March 31, 2017.
Particulars Amount (₹)
Sales 75,250
Purchases 32,250
Opening stock 7,600

FOLLOW US
@braincafesurat
Sales return 1,250
Purchases return 250
Rent 300
Stationery and printing 250
Salaries 3,000
Misc. expenses 200
Travelling expenses 500
Advertisement 1,800
Commission paid 150
Office expenses 1,600
Wages 2,600
Profit on sale of investment 500
Depreciation 800
Dividend on investment 2,500
Loss on sale of old furniture 300
Closing stock (March 31, 2017) valued at ₹ 8,000

14. From the balance sheet given below, calculate [4]
i. fixed assets,
ii. current assets,
iii. current liabilities,
iv. working capital.
BALANCE SHEET
as at 31st March, 2023
Liabilities Amount (₹) Assets Amount (₹)
Trade creditors 42,000 Stock in Hand 48,000
Expenses Accrued 3,200 Debtors 36,000
Band overdraft 4,800 Prepaid Expenses 400
Long-term loan 20,000 Goodwill 20,000
Interest on loan 1,000 Land 20,000
Capital 93,400 Plant 32,000
Furniture 8,000
1,64,400 1,64,400
15. From the following information, prepare a profit and loss account for the year ending 31st March, 2017. [4]
Amt (₹)
FOLLOW US
@braincafesurat
Gross profit 60,000
Rent 5,000
Salary 15,000
Commission paid 7,000
Interest paid on loan 5,000
Advertising 4,000
Discount received 3,000
Printings and stationary 2,000
Legal charges 5,000
Bad debts 1,000
Depreciation 2,000
Interest received 4,000
Loss by fire 3,000
16. From the following information, prepare the trading account for the year ended 31st March, 2013 [4]
Amt (Rs.) Amt (Rs.)
Opening Stock 3,00,000 Wages 6,000
Purchases 8,40,000 Freight 10,800
Closing stock 2,40,000 Carriage inwards 3,000
The percentage of gross profit on sales is 20%.

17. From the following particulars, prepare a Profit & Loss Account for the year ending 31st March, 2023: [4]
Particulars Amount ₹ Particulars Amount ₹
Gross Profit 10,52,500 Discount allowed 15,000
Trade Expenses 10,000 Lighting 3,900
Carriage on Sales 50,000 Commission Received 4,200
Office Salaries 79,000 Bad-debts 6,000
Postage 3,600 Discount Cr. 3,000
Office Rent 37,500 Interest on Loan 11,000
Legal Charges 2,000 Stable Expenses 7,000
Audit fee 8,000 Export Duty 11,500
Donation 5,500 Miscellaneous Income 2,500
Sundry Expenses 1,800 Unproductive Expenses 20,500
Selling Expenses 26,600 Travelling Expenses 12,500
18. Prepare petty cash book from the following transactions. The imprest amount is ₹ 2,000. [4]
FOLLOW US
@braincafesurat
2017 January ₹
01 Paid cartage 50
02 STD charges 40
02 Bus fare 20
03 Postage 30
04 Refreshment for employees 80
06 Courier charges 30
08 Refreshment of customer 50
10 Cartage 35
15 Taxi fare to manager 70
18 Stationery 65
20 Bus fare 10
22 Fax charges 30
25 Telegrams charges 35
27 Postage stamps 200
29 Repair on furniture 105
30 Laundry expenses 115
31 Miscellaneous expenses 100
19. Enter the following transactions in Sanjay Gupta's Single Column Cash Book: [4]
2023 ₹
March 1 Balance of Cash in Hand 82,000
March 5 Goods purchased 20,000
March 10 Goods purchased from Gaurav 40,000
March 15 Goods purchased from Neha in Cash 50,000
March 18 Goods sold 25,000
March 20 Goods sold to Sita 36,000
March 25 Goods sold to Dhruv in Cash 15,000
March 28 Received from Sita 30,000
March 31 Paid salary to office clerk 10,000
March 31 Paid office rent 5,000
20. Record the following transactions in a Petty Cash Book drawn with suitable columns and then balance the same: [4]
2023 ₹
FOLLOW US
@braincafesurat
Jan. Petty cashier is given a monthly imprest amount of ₹ 10,000. He spent last month ₹ 9,200 and got
1 the balance from the head cashier today.
2 Paid for Wages 600
3 Paid for sundry expenses 100
5 Paid for stationery 700
9 Paid for courier charges 200
12 Stamps purchased 750
14 Paid wages to casual labour 500
16 Stationery purchased 400
19 Paid for general expenses 610
20 Paid for cartage 800
22 Paid for advertising 900
24 Paid for postage 400
25 Paid for Taxi Fare 840
27 Paid for entertainment 600
29 Paid for carriage 500
31 Paid for petty repairs 700
21. Write up the Cash Book of Bhavesh Yadav with Cash and Bank Columns from the following transactions: [4]
2023 ₹
March 1 Cash in hand 2,710
Cash at Bank 27,500
3 Received from Sachin 3,500
4 Sold goods for cash 10,000
7 Paid Rent by Cheque 800
8 Paid Suresh by cheque 3,000
10 Bought goods for cash 15,000
12 Paid cash for stationery 200
Drew from Bank for office use 8,000
15 Received cheque from Sanjay and sent it to Bank 6,600
16 Paid for advertisement 750
18 Issued cheque in favour of Manglam Brothers 4,300
19 Cash Sales 13,000
FOLLOW US
@braincafesurat
Paid into Bank 16,000
20 Received cheque from Vishal and sent it to Bank 2,400
22 Bought Scooter and paid for the same by cheque 18,000
25 Bank returned Sanjay's cheque dishonoured
28 Paid salary by cheque 7,200
Paid Trade expenses 2,000
29 Cash sales 9,500
30 Paid into Bank 10,000
22. Enter the following particulars in the Cash Book with Cash and Bank columns: [4]
2023
April 1 Balance of cash in hand ₹ 2,000 and at Bank ₹ 12,000
April 3 Received cash from Manish ₹ 1,800
April 5 Cash Sales ₹ 1,000
April 6 Purchases by cheque ₹ 745
April 9 Paid into Bank ₹ 1,850
April 10 Paid cash for freight ₹ 54
April 12 Drew from Bank for office use ₹ 600
April 13 Issued a cheque in favour of M/s Amit & Sons for ₹ 985
April 16 Paid into Bank ₹ 715
April 17 Drew Cash for his son's birthday party ₹ 175
April 19 Received a cheque from Naresh for ₹ 380 and deposited it into the bank on the same day.
April 20 Cash Sales ₹ 200
April 25 Drew from Bank for office use ₹ 200.
April 26 Purchased furniture for ₹ 1,000 and payment made by cheque.
April 27 Naresh's cheque dishonoured, Bank charges ₹ 5.
April 29 Purchased business premises, payment made by cheque ₹ 12,000.
April 30 Received a cheque for ₹ 675 from Himesh.
23. Prepare a Cash Book with Cash and Bank Columns: [4]
2014 Rs
Cash in Hand 5,000

Jan. 1
Bank Overdraft 1,000
Jan. 2 Paid Wages 1,500
FOLLOW US
@braincafesurat
Jan. 3 Deposited into bank 2,000
Jan. 4 Cash Sales 7,500
Jan. 5 Sold goods for cheque which was deposited in bank on the same day 5,000
Jan. 6 Purchased goods from Hariom on credit 4,000
Jan. 7 Drew from bank for personal use 1,000
Jan. 8 Paid to Hariom in full settlement 3,500
24. Prepare double column cash book from the following information for July 2017: [4]
01 Cash in hand 7,500
Bank overdraft 3,500
03 Paid wages 200
05 Cash sales 7,000
10 Cash deposited into Bank 4,000
15 Goods purchased and paid by cheque 2,000
20 Paid rent 500
25 Drew from bank for personal use 400
30 Salary paid 1,000
25. Enter the following transaction in a cash book with cash and Bank columns [4]
2013 Amt (Rs.)
Dec 1 Started business with cash 50,000
Dec 2 Pays into bank 29,000
Dec 3 Received cheque form Raja & Co 800
Dec 5 Withdrew cash form bank for private use 240
Dec 14 Received cheque from Kamla 395
Discount allowed 15
Dec 16 Kamla's cheque endorsed to Bala in full settlement of her account of Rs. 425
Dec 29 Paid Bills payable by cheque 1,000
Dec 30 Deposited into bank, balance of cash in excess of Rs. 450
26. On 31st March, 2023, the Bank Pass Book of Sumit Enterprises showed an overdraft of ₹ 7,700. On the basis of [6]
the following particulars, prepare Bank Reconciliation Statement:
i. Cheques issued before 31st March, 2023 but not yet presented for payment amounted to ₹ 3,500.
ii. Cheques paid into the Bank but a cheque amounting to ₹ 2,600, has not been collected yet.
iii. Interest on Loan amounting to ₹ 554, debited by the Bank was not recorded in the Cash Book.
iv. A debtor deposited ₹ 4,800 directly into the bank but the information was received on 3rd April, 2023.
FOLLOW US
@braincafesurat
v. Payment side of Cash Book was totalled ₹ 1,000 short.
27. Prepare Bank Reconciliation Statement from the following particulars on June 30, 2023: [6]
Bank Statement showed a favourable balance of ₹ 9,214.
i. On 29th June, the bank credited a sum of ₹ 1,650 in error.
ii. Cheques totaling ₹ 4,500 issued before June 30, were not cleared.
iii. A hire purchase payment of ₹ 950, made by a standing order was not recorded in the Cash Book.
iv. A cheque of ₹ 600 received, deposited and credited by bank, was accounted as a receipt in the cash column
of the cash book.
v. Other cheques for ₹ 8,500 were deposited in June but cheques for ₹ 6,000 only were cleared by the bankers.
28. Prepare a bank reconciliation statement of Mr Careless on 31st December, 2013 [6]
i. The payment of cheques for Rs 1,100 was recorded twice in the pass book.
ii. Withdrawal column of the pass book under cast by Rs 400.
iii. A cheque of Rs 400 has been debited in the bank column of the cash book but it was not sent to bank at all.
iv. A cheque of Rs 600 debited to bank account of the pass book has been omitted to be recorded in cash book.
v. Rs 1,000 in respect of dishonoured cheque were entered in the pass book but not in the cash book. Overdraft
as per pass book is Rs 40,000.
29. Prepare a bank reconciliation statement from the details given below and ascertain the balance as per Mrs [6]
Geeta's cash book as on 31st December, 2013.
i. Bank overdraft balance as per pass book Rs 3,000.
ii. Cheques issued to creditors amounting to Rs 5,000 in the month of December, 2013 of which cheques worth
Rs 750 were presented to the bank upto 31st December, 2013.
iii. A cheque of Rs 1,500 received from Shyam was deposited in the bank account on 26th December, 2013 but
no entry was passed in the cash book. The same was collected and credited to Mrs Geeta account on 29th
December, 2013.
iv. A cheque of Rs 500 received from Raju on 20th December, 2013 was recorded in the discount column of the
cash book and was not banked.
v. The pass book showed that the bank had collected Rs 1,000 as interest on government securities. The bank
had charged interest Rs 125 and bank charges 150. There was no entry in the cash book for the same.
30. The following facts relate to the business of Ravi who requires you to reconcile his cash book with the pass book [6]
balance.
Amt (₹)
Balance as per cash book (Credit) 2,800
Cheques issued but not presented for payment 3,440
Cheques deposited but not credited 2,260
Additional Information:
1. The debit side of the cash book (bank column) is undercast by ₹ 500.
2. A cheque of ₹ 200 paid to a creditor has been entered by mistake in the Cash Column.
3. Bank charges ₹ 80 have not been entered in the Cash Book.
31. On 31st March, 2013 pass book of Shri Rajendra shows a debit of Rs 10,000. From the following, prepare a [6]
bank reconciliation statement.
FOLLOW US
@braincafesurat
i. Cheques amounting to Rs 8,000 drawn on 25th March, 2013 of which cheques of Rs 5,000 were encashed on
2nd April, 2013.
ii. Cheques paid into the bank for collection Rs 5,000 but cheques of Rs 2,200 could only be collected in
March, 2013.
iii. Bank charges Rs 25 and dividend of Rs 350 on investments collected by the bank could not be shown in the
cash book.
iv. A bill of Rs 10,000 was retired by the bank under rebate of Rs 150 but the full amount was credited in the
cash book.
32. On 30th June, 2013, the cash book of Galaxy Ltd, showed a balance of Rs 400 at bank. They had sent cheques [6]
amounting to Rs 2,000 to the bank before 30th June but it appears from the pass book that cheques worth only
Rs 800 had been credited before that date. Similarly, out of cheques of Rs 1,000 issued during the month of June,
cheques for Rs 50 were presented and paid in July.
The passbook also showed the following payments
i. Rs 64 as premium on the life policy according to standing instructions.
ii. Rs 400 against a pro-note, as per instructions.
The pass book showed that the bank had collected Rs 120 as interest on government securities.
The bank had charged interest Rs 10 and bank charges Rs.4.
There was no entry in the cash book for the payments, interest, etc.
Prepare the bank reconciliation statement as on 30th June, 2013.
33. The cash book of John shows Rs 16,728 as the balance at bank as on 31st December, 2013 but you find that this [6]
does not agree with the balance as per the bank pass book. On scrutiny, you find the following discrepancies
i. On 15th December, the payments side of the cash book was undercast by Rs 200.
ii. A cheque for Rs 262 issued on 25th December, was recorded in the cash column.
iii. One deposit of Rs 300 was recorded in the cash book as if there is not bank column therein.
iv. On 18th December, the debit balance of Rs 3,052 on the previous day, was brought forward as a credit
balance.
v. Of the total cheques amounting to Rs 23,028 drawn in the last week of December, cheques aggregating Rs
15,630 were encashed in December.
vi. Dividends of Rs 500 collected by the bank and subscription of Rs 200 paid by it were not recorded in the
cash book.
vii. One out-going cheque of Rs 700 was recorded twice in the cash book.
Prepare a bank reconciliation statement as on 31st December, 2013
34. The following particulars relate to the business of Varun on 31st March, 2013. [6]
S.no. Amt(Rs)
(i) Cheques issued but not presented for payment 34,500
(ii) Cheques paid into the bank but not yet collected 7,500
(iii) Interest credited by the bank but not entered in the cash book 1,650
(iv) Bank charges debited in the pass book but not entered in the cash book 105
(v) Credit balance as shown by the pass book 1,06,590
(vi) Debit balance as shown by the cash book 78,045

FOLLOW US
@braincafesurat
Prepare (a) Statement reconciling the bank balance as per cash book with that shown by the bank pass book as
on 31st March, 2013. (b) Statement reconciling the bank balance as per pass book with that shown by the cash
book as on 31st March, 2013.
35. The passbook of Mr Kartik showed an overdraft of Rs 81,900 on 31st March, 2013. Prepare bank reconciliation [6]
statement on 31st March, 2013
i. Out of cheques amounting to Rs 16,000 drawn by Mr Kartik on 27th March a cheque for Rs 6,000 was
encashed on 3rd April.
ii. Credited by bank with Rs 7,600 were collected by them but the amount is not entered in the cash book.
iii. Rs 21,800 paid in by Mr Kartik in cash and by cheques on 31st March, cheques amounting to Rs 7,600 were
collected on 7th April.
iv. A cheque of Rs 1,560 credited in the pass book on 28th March being dishonoured is debited again in the pass
book on 1st April, 2013. There was no entry in the cash book about the dishonour of the cheque until 15th
April.
36. On 1st April, 2020, machinery was purchased for ₹ 20,000. On 1st October, 2021 another machine was [6]
purchased for ₹ 10,000 and on 1st April, 2022, one more machine was purchased for ₹ 5,000. The firm
depreciates its machinery @ 10% p.a. on the Diminishing Balance Method. What is the amount of Depreciation
for the years ended 31st March, 2021, 2022 and 2023? What will be the balance in Machinery Account as on
31st March, 2023?
37. On 1st Jan. 2020, Worldfast Dry fruits Ltd. bought a plant for ₹ 15,00,000. The company writes off depreciation [6]
@ 20% p.a. on Written Down Value Method and closes its books on 31st March every year. On 1st Oct. 2022, a
part of the plant purchased on 1st Jan. 2020 for ₹ 3,00,000 was sold for ₹ 1,75,000. On 1st Jan. 2023 a fresh plant
was purchased for ₹ 5,00,000. Prepare Plant A/c, Provision for Dep. A/c and Plant Disposal A/c.
38. M/s Assam Fabrics purchased a Textile machine on April 01, 2013, for Rs 30,000. On July 01, 2014, another [6]
machine costing Rs 25,000 was purchased. The machine purchased on April 01, 2013, was sold for Rs 25,000 on
October 01, 2015. The company charges depreciation 15% p.a. on the straight-line method. Prepare machinery
account up to March 31, 2016. The firm closes its books on 31st March every year.
39. Ravi Traders purchased on 1st April, 2020, a second-hand machinery for ₹ 1,80,000. Further expense of ₹ 20,000 [6]
was incurred to improve its technical reliability. Useful life of the machinery is estimated to be 10 years.
Maintenance during the year was ₹ 10,000. On 1st July, 2021, additional machinery costing ₹ 1,00,000 was
purchased. On 1st April, 2022, the machinery purchased on 1st April, 2020 having become obsolete was sold for
₹ 1,10,000 and on 1st October, 2022, new machinery was purchased at a cost of ₹ 1,50,000.
Depreciation is charged @ 10% p.a. following Straight Line Method (SLM). Prepare the Machinery Account for
three years ending on 31st March, 2023.
40. On 1st April, 2023, Arvind Glass Limited purchased a Machine for ₹ 90,000 and spent ₹ 6,000 on its carriage [6]
and ₹ 4,000 on its erection. On the date of purchase, it was estimated that the effective life of the machine will
be 10 years and after 10 years its scrap value will be ₹ 20,000.
Prepare Machine A/c and Depreciation A/c for 4 years after providing depreciation on Fixed Instalment Method.
Accounts are closed on 31st March every year.
41. M/s Lokesh Fabrics purchased a Textile Machine on April 01, 2011 for ₹ 1,00,000. On July 01, 2012 another [6]
machine costing ₹ 2,50,000 was purchased. The machine purchased on April 01, 2011 was sold for ₹ 25,000 on
FOLLOW US
@braincafesurat
October 01, 2015. The company charges depreciation @15% p.a. on straight line method. Prepare machinery
account and machinery disposal account for the year ended March 31, 2016.
42. A company whose accounting year is the calendar year, purchased on 1st April, 2021 machinery costing ₹ [6]
30,000. It purchased further machinery on 1st October, 2021 costing ₹ 20,000 and on 1st July, 2022 costing ₹
10,000.
On 1st January, 2023 one third of the machinery which was installed on 1st April, 2021 become obsolete and was
sold for ₹ 3,000.
Show how the machinery account would appear in the books of the company, it being given that machinery was
depreciated by fixed installment at 10 % per annum.
43. A Company purchased a machine for Rs. 40,000 on April 1, 2014. On October 1, 2015 it was sold for Rs. [6]
13,000. The company charges depreciation @ 10% p.a. on straight line method. Show Machinery Account,
Provision for Depreciation Account and Machinery Disposal account if books are closed on March 31 each year.
44. On 1st October, 2019, Mishra & Co. purchased machinery worth ₹ 40,000. On 1st October, 2021, it buys [6]
additional machinery worth ₹ 10,000. On 30th September, 2022, half of the machinery purchased on 1st Oct.,
2019, is sold for ₹ 8,200. The company writes off 10 percent p.a. on the original cost. The accounts are closed
every year on 31st March.
Show the Machinery Account for four years.
45. On 1st April, 2020, Blue Ltd. purchased machinery for ₹ 1,20,000 and on 30th September 2021, it acquired [6]
additional machinery at a cost of ₹ 20,000. On 30th June, 2022, one of the original machines which had cost ₹
5,000 was found to have become obsolete and was sold as scrap for ₹ 500. It was replaced on that date by a new
machine costing ₹ 8,000. Depreciation is to be provided @ 15% p.a. on the Written Down Value. Accounts are
closed on 31st March every year. Show Machinery Account for the first three years.
46. The Trial Balance shows the following balances as at 31st March, 2017: [6]
Dr. Balances ₹ Cr. Balances ₹
Purchases 60,000 Capital 1,13,075
Sales Returns 1,500 Sales 1,27,000
Plant and Machinery 90,000 Purchases Returns 1,275
Opening Stock 40,000 Discount Received 800
Discount Allowed 350
Bank Charges 100
Sundry Debtors 45,000
Salaries 7,000
Wages 10,000
Freight: In 1,000
Freight: Out 1,200
Rent, Rates and Taxes 2,000
Advertisements 2,000
FOLLOW US
@braincafesurat
Cash at Bank 7,000
2,67,150 2,67,150
Closing Stock was valued at ₹ 35,000. Prepare Trading and Profit and Loss Account for the year ended 31st
March, 2017 and Balance Sheet as at that date.
47. From the following balance of Aakash, prepare, the Trading A/c, Profit and Loss A/c and the Balance Sheet as at [6]
31st March 2023.
Credit Balance Amount (₹) Debit Balances Amount (₹)
Capital 4,60,000 Postage 2,730
Creditors 1,12,470 bad Debts 2,870
Sales 7,81,820 Interest 12,950
Bad debts Recovered 1,750 Insurance 4,170
Loan 1,20,000 Machinery 1,00,000
Debit Balances: Stock (Opening) 99,450
Debtors 38,850 Purchases 6,20,920
Salaries 40,000 Wages 43,000
Discount 10,000 Building 3,37,800
Fixture and Fitting 1,61,550 Selling Expenses 1,750
Value of goods on hand (31st March, 2023) was ₹ 1,43,000.

48. Prepare trading and profit and loss account of M/s Sports Equipments for the year ended March 31, 2017 and [6]
balance sheet as on that date:
Account Title Debit (₹) Credit (₹)
Opening stock 50,000
Purchases and sales 3,50,000 4,21,000
Sales returns 5,000
Capital 3,00,000
Commission 4,000
Creditors 1,00,000
Bank overdraft 28,000
Cash in hand 32,000
Furniture 1,28,000
Debtors 1,40,000
Plants 60,000
Carriage on purchases 12,000
FOLLOW US
@braincafesurat
Wages 8,000
Rent 15,000
Bad debts 7,000
Drawings 24,000
Stationery 6,000
Travelling expenses 2,000
Insurance 7,000
Discount 5,000
Office expenses 2,000
Closing stock as on March 31, 2017 ₹ 2,500

49. From the Following Trial Balance of Sumit, Pass closing entries and prepare Trading and Profit and Loss [6]
Account for the year ended 31st March, 2023.
TRIAL BALANCE
as at 31st March, 2023
Particulars Dr. (₹) Cr. (₹)
Capital A/c - 10,00,000
Stock A/c (1st April, 2022) 2,00,000 -
Cash at Bank 1,00,000 -
Cash In Hand 44,000 -
Machinery A/c 6,00,000 -
Furniture and Fittings A/c 1,36,000 -
Purchases A/c 15,00,000 -
Wages A/c 10,00,000 -
Power and Fuel A/c 3,00,000 -
Factory Lighting A/c 20,000 -
Salaries A/c 7,00,000 -
Discount Allowed A/c 50,000 -
Discount Received A/c - 30,000
Advertising A/c 5,00,000 -
General Expenses A/c 4,00,000 -
Sales A/c - 50,00,000
Sundry Debtors 11,00,000 -
Sundry Creditors - 6,20,000

FOLLOW US
@braincafesurat
Total 66,50,000 66,50,000
Value of Closing Stock as on 31st March, 2023 was ₹ 2,70,000

50. The following are the balances as at 31st March 2023 extracted from the books of Devendra: [6]
Particulars Amount (₹)
Sales 9,20,000
Postage and Courier 6,200
Purchases 6,83,000
Miscellaneous Expenses 9,000
Returns Inward 13,000
Bad Debts 4,000
Returns Outward 22,000
Debtors 2,20,000
Stock on 1st April, 2022 1,76,000
Creditors 1,28,000
Carriage Inwards 24,000
Loan from Sahil 50,000
Rent 22,000
Capital 5,25,000
Discount 37,500
Drawings 19,100
Printing 7,200
Business Premises 3,90,000
Insurance 5,000
Travelling Expenses 14,000
Office Furniture 15,000
The Stock on 31st March 2023 was ₹ 2,40,000

You are required to prepare the Trading A/c, Profit and Loss A/c and Balance Sheet, as at 31st March 2023.
51. Prepare trading and profit and loss account and balance sheet, as on March 31, 2017: [6]
Account Title ₹ Account Title ₹
Machinery 27,000 Capital 60,000
Sundry debtors 21,600 Bills payable 2,800
Drawings 2,700 Sundry creditors 1,400
Purchases 58,500 Sales 73,500

FOLLOW US
@braincafesurat
Wages 15,000
Sundry expenses 600
Rent and taxes 1,350
Carriage inwards 450
Bank 4,500
Openings stock 6,000
Closing stock, as on March 31, 2017 ₹ 22,400.

52. From the following balance, prepare the Trading and Profit and Loss Account and the Balance Sheet [6]
Debit Balance Rs. Credit Rs.
Machinery 3,50,000 Capital Account 10,00,000
Rent 45,000 Creditors 1,40,000
Debtors 2,70,000 Sales 14,50,000
Sundry Expenses 20,000
Drawings 90,000
Carriage 15,000
Purchases 9,50,000
Wages 5,00,000
Bank 1,50,000
Opening Stock 2,00,000
Closing Stock was Rs.30,000.

53. Following is the Trial Balance of Mr. Dharmendra Sharma as at 31st March, 2023: [6]
Dr. Balances ₹ Cr. Balances ₹
Stock 1-4-2022 10,000 Discount Received 750
Purchases 58,000 Return Outwards 2,600
Wages 4,700 Sales 98,650
Return Inwards 3,520 B/P 3,000
Carriage on Purchases 2,360 Sundry Creditors 5,600
Carriage on Sales 710 Creditors for Rent 500
Office Salaries 4,800 Capital 40,000
Rent and Taxes 2,400 Loan from X 10,000
Cash 1,100 Commission 1,200
Bank Balance 7,820
Bad-debts 600
FOLLOW US
@braincafesurat
Discount allowed 640
Land and Building 20,000
Scooter 6,600
Scooter Repairs 850
B/R 3,500
Commission 1,800
Interest on X's Loan 1,500
Drawings 6,000
1,62,300 1,62,300
Prepare a Trading and Profit and Loss Account for the year ended on 31-3-2023 and the Balance Sheet as at that
date. The Stock on 31st March, 2023 was ₹ 22,000.
54. From the following cash and bank transactions of M r Pulkit, owner of Pulkit Stationery House, prepare a [6]
suitable cash book and strike the balances at the end of the month
2013 Amt(Rs)
Apr
Cash in hand 22,000
1
Cash at bank 27,500
Apr
Purchased goods from M/s Arun for Rs 3,500 and paid by cheque
3
Apr
Cash purchases Rs 4,000 less trade discount 5%
9
Apr
Purchased postage stamps 250
10
Apr
Proceeds of cash sales of Rs 25,000 deposited into bank
12
Apr
Drew cash for personal use 2,050
14
Apr Received from Manan cash Rs 1,500 and cheque Rs 2,500, both deposited into bank allowed
15 Rs 250 as cash discount
Apr
Withdrew from bank for office use 4,000
15
Apr
Paid wages Rs 1,500 and rent Rs 2,500
16
Apr Paid M/s Vrijesh by cheque, cash discount allowed by him Rs 500 12,000
FOLLOW US
@braincafesurat
19
Apr
Received a cheque from Nitin for sale of old goods 4,000
23
Apr
Paid M/s Arun cash Rs 3,750 and Rs 1,800 by a cheque, received cash discount Rs 125
25
Apr
Karan, a customer, deposited into bank 3,000
26
Apr
Withdrew from bank for personal use 1,000
29
Apr
Bank charged commission 300
30
Apr
Withdrew from bank for paying income tax 2,500
30
55. Record the following transactions in a Petty Cash Book with suitable columns. The book is kept on the imprest [6]
system, amount of imprest being ₹ 4,000.
2023
April 1 Petty cash in hand ₹ 540. Received cash to make-up the imprest.
Paid for office cleaning ₹ 100.
4 Paid railway fare ₹ 320, bus fare ₹ 280, wages ₹ 150.
5 Bought shorthand notebooks for office ₹ 370.
7 Paid carriage on parcels ₹ 150, paid for wages ₹ 220.
10 Bought stamps for ₹ 300, envelopes for ₹ 450 and an accounts register for ₹ 400.
12 Paid for repairs ₹ 200, gave tips to office peon ₹ 150.
13 Gave charity ₹ 100, served tea to customers ₹ 250.
15 Paid for wages ₹ 160, rewards to servant ₹ 100.
56. Enter the following in Shri Shateen’s cash book and show the balance [6]
2013
Mar 1 Balance of cash in hand Rs. 1,500
Mar 8 Purchases goods for cash from X for Rs. 3,20
Mar 15 Sold good for Rs. 4,80 to Y
Mar 20 Received commission Rs. 65
Mar 20 Paid commission Rs. 55
Mar 28 Paid to Ashish on account Rs. 7,15
Mar 31 Paid salary to the office clerks 100 and office rent Rs. 60
FOLLOW US
@braincafesurat
57. Prepare an Analytical Petty Cash Book on the Imprest System from the following: [6]
Date ₹
2023
Jan. 1 Received for Petty Cash 10,000
Jan. 2 Paid Metro fare 50
Jan. 2 Paid cartage 250
Jan. 3 Paid for postage 500
Jan. 3 Paid wages for casual labourers 600
Jan. 4 Paid for stationery 400
Jan. 4 Paid auto charges 200
Jan. 5 Paid for repairs of chairs 1,500
Jan. 5 Paid Bus fare 100
Jan. 5 Paid Cartage 400
Jan. 6 Paid for Postage 700
Jan. 6 Paid for Conveyance charges 300
Jan. 6 Paid Cartage 300
Jan. 6 Paid for Stationery 200
58. Prepare Cash Book from the following transactions of Advance Technology, Mumbai for April, 2023 and post [6]
them in the Ledger Accounts:
Date Particulars ₹
2023
Cash in Hand 14,000
April 1
Bank Overdraft 13,200
April 4 Wages paid 1,400
April 5 Cash sales 17,000
Purchased goods from Roshan, Kolkata for ₹ 15,000 less Trade Discount 20% and Cash
April 7
Discount of 2% if paid in 7 days
April 9 Purchased furniture for cash 10,000
April 10 Cash paid to Ronak ₹ 5,000 in settlement of his account of ₹ 5,100
April 10 Issued cheque to Roshan in settlement
April 13 Cheque issued to Roshan was dishonoured
April 13 Cash sales 4,500
April 16 Bank charged interest on overdraft 500
FOLLOW US
@braincafesurat
April 18 Deposited in Bank 7,000
April 20 Paid telephone bill by cheque 600
Sold goods for ₹ 23,500 to Vimal and received cheque in settlement (Deposited same day),
April 25
allowed him discount ₹ 500
April 27 Paid rent 800
April 29 Drew cash for personal use 1,000
April 30 Paid salary. 2,000
April 30 Interest collected by bank 2,500
59. Write a three column cash book with cash and bank columns from the following transactions [6]
2013
Mar 1 Cash in hand Rs 30,000
Mar 3 Purchased goods for cash Rs 12,000
Mar 5 Deposited in bank Rs 10,000
Mar 8 Cash sales Rs 20,000
Mar
Cash withdrew from bank for office use Rs 4,000
10
Mar
Received cash from Daksh Rs 6,000 allowed his discount of Rs 200
12
Mar Received cheque from Kanika Rs 4,000 and deposited in the bank on the same day, allowed her
15 discount Rs 150
Mar
Received cheque from Sakshi for Rs 10,000 (not banked)
18
Mar
Cheque received from Sakshi deposited in the bank
19
Mar
Paid to Simran by cheque Rs 5,000, she allowed discount Rs 250
24
Mar
Withdrew from bank for personal use Rs 3,000
27
Mar
Sold goods on credit to Deeksha Rs 8,000
28
Mar
Purchased goods on credit from Simran Rs 10,000
30
Mar
Received cheque from Deeksha Rs 4,000 and deposited in the bank
31
Mar Bank charges for the month Rs 200
FOLLOW US
@braincafesurat
31
60. From the following transactions in the Petty Cash Book with appropriate analysis Columns: [6]
2023 ₹
Feb. Received from cashier ₹ 9,250, the amount required to make up the amount of the imprest
10,000
1 viz.,
3 Chowkidar's Wages 500
Pencils, Pens etc. 250
5 Bus fare to workmen sent to customer's premises 600
7 Paid for wages 200
10 Postage 800
12 Three Wheeler's charges for manager's trip to the city 100
12 Wages to the casual labourer 850
14 Repair of furniture 300
14 Repair of scooter 400
18 Taxi fare to assistant manager 750
20 Refreshment to Customers 450
22 Paid for cartage 1,500
25 Locks purchased 1,200
25 Conveyance 250
26 Paid for writing pads and registers 900
28 Courier Charges 550
Hint: Repair to Scooter (Conveyance Expenses)

61. Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2023 from the following [6]
Balances of Mr. Sundar Lal:
Capital Account 41,000 Drawings 5,000
Creditors-Trade 30,000 Purchases 1,71,000
Creditors-Expenses 6,800 Carriage inwards 1,500
Rent Received 600 Wages 23,000
Purchases Returns 4,000 Power 9,000
Sales 2,89,600 Rent and Insurance 19,900
Bad-Debts Provision on 1st April, 2022 600 Salaries 34,400
Advertising Development 8,000 Discount Received 1,800
FOLLOW US
@braincafesurat
Goodwill 5,000 General Charges 8,600
Plant and Machinery 20,000 Sales Returns 600
Traveller’s Samples 2,700 Traveller’s Commission 2,890
Stock on 1-4-2022 32,000 Traveller’s Salaries 9,100
Debtors 14,600 Discount Allowed 5,000
Cash at Bank 2,000
Cash in hand 110
Adjustments:- The Closing stock was ₹ 23,000 but there has been a loss by fire on 20th March, 2023, to the
extent of ₹ 20,000, not covered by insurance. Depreciate Plant and Machinery by 10% and Traveller’s Samples
by 33 %. Increase the Bad-debts Provision to ₹ 2,000. Write 20% off Advertising Development Account.
1
Annual premium on insurance expiring 1st June, 2023 was ₹ 1,200. Provide for Manager's commission @ 5% on
Net Profits after charging such Commission.
62. The following balances were extracted from the books of Mr. Deepak as at 31st March, 2023: [6]
Stock at the beginning 41,000 Purchases 2,20,000
Rent 9,600 Sales 2,80,000
Salary 20,000 Returns (Dr.) 6,000
Bad-Debts 400 Returns (Cr.) 2,000
Provision for Doubtful Debts 3,000 Carriage Inward 3,500
Travelling Expenses 1,400 Carriage Outward 500
Insurance Premium 1,800 Capital 1,75,000
Proprietor’s Withdrawals 4,000 Loan (Cr.) 20,000
Telephone Charges 7,300 Debtors 40,000
Printing and Advertising 5,000 Creditors 27,000
Commission (Cr.) 6,000 Investments 5,000
Rent from Sublet 4,800 Interest on Investments 600
Land and Building 1,40,000
Furniture 10,000
Cash 2,900
Prepare Trading and Profit & Loss Account for the year and a Balance Sheet as at 31st March, 2023, after taking
into account the following:
i. Stock was valued at ₹ 75,000 on 31st March, 2023. You are informed that a fire occurred on 28th March,
2023 in the godown and stock of the value of ₹10,000 was destroyed. Insurance Company admitted a claim
of 75%.
FOLLOW US
@braincafesurat
ii. One-third of the commission received is in respect of work to be done next year.
iii. Create a provision of 5% for Doubtful Debts.
iv. 50% of Printing and Advertising is to be carried forward as a charge in the following year.
v. ₹ 900 is due for interest on loan.
vi. Provide for Manager’s Commission at 10% on Net Profit before charging such commission.
63. The following were the balances extracted from the books of Kanta as on March 31, 2013. [6]
Amount Amount
Debit Balance Credit Balance
(Rs.) (Rs.)
Cash in hand 540 Sales 98,780
Cash at bank 2,630 Return Outwards 500
Purchases 40,675 Capital 62,000
Return inwards 680 Sundry Creditors 6,300
Wages 8,480 Rent 9,000
Fuel and Power 4,730
Carriage on sales 3,200
Carriage on purchases 2,040
Opening stock 5,760
Building 32,000
Freehold land 10,000
Machinery 20,000
Salaries 15,000
Patents 7,500
General expenses 3,000
Insurance 600
Drawings 5,245
1,76,580 1,76,580
======= =======
Taking into account the following adjustments, prepare Trading and Profit and loss account and Balance Sheet as
on March 31, 2013:
a. Stock in hand on March 31, 2013, was Rs. 6,800.
b. Machinery is to be depreciated at the rate of 10% and patents @ 20%.
c. Salaries for the month of March, 2013 amounting to Rs. 1,500 were outstanding.,
d. Insurance includes a premium of Rs. 170 on a policy expiring on September 30, 2013.
e. Rent receivable Rs. 1,000.
FOLLOW US
@braincafesurat
64. From the following balances, prepare Trading and Profit and Loss A/c for the year ended 31st March 2023 and a [6]
Balance Sheet as at that date:
Life Insurance: Premium (self) 500 Capital 40,000
Opening Stock 7,500 Plant and Machinery 12,500
Returns Inward 1,000 Purchases 36,000
Furniture 4,600 Sundry Debtors 10,500
Freehold Property 10,000 Coal, Gas and Water 1,000
Carriage Inwards 400 Carriage outwards 100
Advertising 200 Sales 60,000
Sundry Creditors 4,850 Discount (Dr.) 400
Returns outwards 500 Rent for Premises Sublet 500
Commission (Cr.) 600 Trade Expenses 8,650
Lighting 250 Stationery 2,000
Loan from bank 5,000 Interest Charged by Bank 450
Wages & Salaries 7,500 Cash 2,900
Input IGST 5,000
Adjustments:-
i. Stock on 31st March, 2023 was ₹ 10,000 and stationery unused at the end was ₹ 400.
ii. Rent of Premises Sublet received in advance ₹ 100.
iii. Provision for Doubtful Debts is to be created @ 10% on Debtors.
iv. Provision for discount on Debtors is to be created @ 2%.
v. Stock of the Value of ₹ 4,000 was destroyed by fire on 25th March, 2023. Stock was purchased paying IGST
@ 12%. A Claim of ₹ 3,000 has been admitted by Insurance Co.
vi. Bank Loan has been taken at 12% p.a. interest.
65. From the following Trial Balance, prepare Trading and Profit and Loss Account for the year ended 31st March, [6]
2019 and Balance Sheet as at that date:
Debit Balances ₹ Credit Balances ₹
Salaries 10,223 Sales 66,420
Bills Receivable 6,377 Capital 50,000
Provision for Doubtful

Investments 40,000 2,500
Debts
10% Loan (1st October,

Furniture 12,000 10,000
2018)
Opening Stock 4,500 Discount Received 400

FOLLOW US
@braincafesurat
Purchases 30,000 Sundry Creditors 9,300
Sundry Debtors 20,000 Bills Payable 5,000
Interest on Loan 400 Outstanding Salaries 500
Insurance Premium 900 Bad Debts Recovered 200
Wages 4,600 Interest on Investments 2,000
Rent 1,520 Commission 7,000
Bad Debts 1,200 Output CGST 10,000
Carriage Outwards 600 Output SGST 10,000
Cash at Bank 12,000 Output IGST 8,000
Depreciation on Furniture 2,500
Accrued Commission 1,000
Advertisement 7,000
Input CGST 8,000
Input SGST 8,000
Input IGST 10,000
1,81,320 1,81,320
Additional Information:
i. Closing Stock is ₹ 6,000 at cost.
ii. Goods costing ₹ 1,000 were distributed among staff members as free of cost while goods costing ₹ 500 were
taken by the proprietor for his personal use. These goods were purchased paying CGST and SGST @ 6%
each.
iii. Credit sale to Naresh of ₹ 2,000 plus IGST @ 12% was not recorded in the Sales Book.
iv. Closing Stock included goods costing ₹ 1,000 which were sold and recorded as sales but not delivered to the
customer.
v. Maintain Provision for Doubtful Debts @ 5%.
66. A Book-keeper prepared a Trial balance on 31st March, 2023, which showed a difference of ₹ 2,715. The [6]
difference was placed to the Debit of a Suspense A/c. The undermentioned errors were subsequently discovered:
i. ₹ 710, the total of Sales Return Book has been posted to the credit of the Purchases Return Account.
ii. An item of ₹ 626 written off as a bad-debt from Maharana has not been debited to Bad-Debts A/c.
iii. Goods sold to X and Y for ₹ 1,600 and ₹ 1,200 respectively, but were recorded in the Sales Book as to X ₹
1,200 and Y as ₹ 1,600.
iv. Goods of ₹ 850 were returned to Shrivastav. It was recorded in Purchase Book as ₹ 580.
v. An amount of ₹ 675 for a Credit Sale to Gourav, although correctly entered in the Sales Book, has been
wrongly posted as ₹ 756.
vi. A sum of ₹ 375 owed by Rajesh has been included in the list of Sundry Creditors.
vii. An amount of ₹ 750 spent on the repairs of second-hand machinery has been debited to ‘Repairs A/c.
Pass Journal entries to rectify the errors and prepare a Suspense Account.
FOLLOW US
@braincafesurat
67. Rectify the following errors found in the books of Mr. B. The Trial Balance had ₹ 930 Excess Credit. The [6]
difference has been posted to a Suspense A/c:
i. The total of Returns Inward Books has been cast ₹ 1,000 short.
ii. The purchases of an office table costing ₹ 3,000 has been passed through the Purchases Book.
iii. Cartage paid for the newly purchased machinery ₹ 3,750, posted to Cartage Account.
iv. A Purchases of ₹ 670 had been posted to the creditors' A/c as ₹ 600.
v. A cheque for ₹ 2,000 received from Mr. PC Joshi had been dishonoured and was passed to the debit of the
Allowances A/c.
vi. An amount of ₹ 15,720 due from Yadav written off as bad in a previous year, was recovered and credited to
the personal account of Yadav.
After rectification reflect the transactions in the Suspense A/c.
68. Rectify the following errors: [6]
i. Purchases Book is overcast by ₹ 500.
ii. Salary paid to an employee, Mr. Abhi, is debited to his Personal Account ₹ 3,000.
iii. Goods sold to Mehak on credit ₹ 300 have been wrongly passed through the Purchases Book.
iv. Total of Returns Inward Book has been added ₹ 9 short.
v. Purchase of chair from Happy Traders for ₹ 35 has been entered in the Purchases Book as ₹ 53.
69. Trial Balance of Rahul did not agree. Rahul put the difference to Suspense Account. Subsequently, he located the [6]
following error:
i. Wages paid for the installation of Machinery ₹ 600 was posted to Wages account.
ii. Repairs to Machinery ₹ 400 debited to Machinery account.
iii. Repairs paid for the overhauling of second-hand machinery purchased ₹ 1,000 was debited to Repairs
account.
iv. Own business material ₹ 8,000 and wages ₹ 2,000 were used for the construction of the building. No
adjustment was made in the books.
v. Furniture purchased for ₹ 5,000 was posted to Purchases account as ₹ 500.
vi. Old machinery sold to Karim at its Book value of ₹ 2,000 was recorded through sales book.
vii. Total of Sales Returns Book ₹ 3,000 was not posted to the ledger.
Rectify the above erro₹ and prepare Suspense Account to ascertain the original difference in Trial Balance.
70. Fill up the missing information in the following rectifying entries: [6]
JOURNAL
Amount Amount
Date Particulars L.F.
Dr. (₹) Cr.(₹)
(i) ________ Dr. ________
To ________ ________
(Total of returns outwards book ₹ 6,800 omitted to be posted in the

ledger)
(ii) ________ Dr. ________
________ Dr. ________
FOLLOW US
@braincafesurat
To ________ ________
(Purchases for ₹ 30,000 wrongly entered in the sales book though

correctly entered in the personal account)
(iii) ________ Dr. ________
To ________ ________
(Sale of ₹ 22,000 wrongly credited to Mayank’s account as ₹ 20,000)
(iv) ________ Dr. ________
________ Dr. ________
To ________ ________
(Sale of furniture for ₹ 54,000 wrongly credited to sales account as ₹

45,000)
(v) ________ Dr. ________
To ________ ________
(Rent of proprietors residence ₹ 18,000 debited to rent account)
SUSPENSE ACCOUNT
Dr. Cr.
To Difference in Trial Balance 86,200 By ________ ________
To ________ ________ By ________ ________
To ________ ________ By ________ ________
________ ________
71. Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial [6]
balance.
a. Credit sales to Maadhav ₹ 7,000 were recorded in purchase book. However, Maadhav's account was
correctly debited.
b. Credit purchase from Ronak ₹ 9,000 were recorded in sales book. However, Ronak's account was correctly
credited.
c. Goods returned to Rahil ₹ 4,000 were recorded in sales return book. However, Rahil's account was correctly
debited.
d. Goods returned from Manoj ₹ 1,000 were recorded through purchase return book. However, Manoj's account
was correctly credited.
e. Goods returned to Nitin ₹ 2,000 were recorded through purchase book. However, Nitin's account was
correctly debited.
72. Trial Balance of Kailash did not agree. He put the difference to Suspense account. The following errors were [6]
discovered:
FOLLOW US
@braincafesurat
a. Goods withdrawn by Kailash for personal use ₹ 500 were not recorded in the books.
b. Discount allowed to Ramesh ₹ 60 on receiving ₹ 2,040 from him was not recorded in the books.
c. Discount received from Rohan ₹ 50 on paying ₹ 3,250 to him was not recorded.
d. ₹ 700 received from Khalil, a debtor, whose account had earlier been written off as bad, were credited to his
Personal account.
e. Cash received from Govil, a debtor, ₹ 5,000 was posted to his account as ₹ 500.
f. Goods returned to Mahesh ₹ 700 were posted to his account as ₹ 70.
g. Bill Receivable from Narayan ₹ 1,000 was dishonoured and wrongly debited to Allowances account as ₹
10,000.
Give Journal entries to rectify the above errors and prepare Suspense Account to ascertain the amount of
difference in Trial Balance.
73. The books of Ritik did not agree. The difference of ₹ 12,700 in trial balance was placed to the debit of suspense [6]
account. Subsequently, the following errors were located. Pass journal entries to rectify the errors and prepare
the suspense account:
i. The total of the purchases returns book, ₹ 2,100 has not been posted.
ii. A sale of ₹ 4,300 to Rahul has been credited to his account as ₹ 3,400.
iii. A purchase from Satyam for ₹ 4,000 has been entered in the sales book. However, Satyam has been correctly
credited with ₹ 4,000.
iv. Old furniture sold on credit for ₹ 5,400 has been recorded in the sales account as ₹ 4,500.
v. Goods taken away by Ritik, the proprietor for his personal use worth ₹ 750 has not been recorded in the
books of accounts at all.
74. A Book-keeper failed to balance his trial balance, the credit side exceeding the debit side by ₹ 175. This amount [6]
was entered in a Suspense Account. Later on, the under-mentioned errors were discovered:
i. Goods amounting to ₹ 620 sold to D & Co. were correctly entered in the Sales book, but posted to the
Company’s A/c as ₹ 260.
ii. A credit balance of ₹ 755 of Rent Received account was shown as ₹ 570.
iii. The total of Returns Outwards Book amounting to ₹ 200 was not posted to the Ledger.
iv. Goods worth ₹ 100 were purchased from Pratik but the amount was entered in the Sales Book. The account
of Pratik was correctly credited.
v. Sales Book was undercast by ₹ 100.
vi. The total of the credit side of Sudhir’s account was overcast by ₹ 100.
Give journal entries to rectify these errors and prepare the Suspense Account.
75. How will you rectify the following errors : [6]
i. Rs.500 spent on building repairs has been debited to Building Account
ii. Furniture worth Rs.5,000 purchased from X on credit omitted from being recorded in the books.
iii. Total of Returns Inward Book was added by Rs.200 instead of Rs.250.
iv. Goods purchased from Mohan of Rs.5,000 was passed through Returns Inward Book.
v. Goods returned to Ram was passed through sales book.
vi. Bill Payable of Rs.5,000 accepted in favour of Murari, was passed through bill Receivable book with Rs.500
but Murari's account was correctly debited.
FOLLOW US
@braincafesurat

File 9563

Uploaded by

Copyright:

Available Formats

File 9563

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

File 9563

Uploaded by

Copyright:

Available Formats

ACCOUNTANCY

Machinery A/c 10,00,000

Provision for Depreciation A/c 4,05,000

Opening Stock 2,00,000 Commission Paid 2,400

Purchases 19,00,000 Commission Received 6,000

Sales 25,00,000 Travelling Expenses 4,800

Purchase Returns 70,000 Office Expenses 3,500

Sales Returns 1,00,000 Interest on Long Term Loans 22,000

Wages 80,000 Dividend on Investments 2,800

Advertising 12,000 Printing & Stationery 3,600

Salaries 1,78,000 Loss on sale of Machinery 35,000

Rent & Taxes 62,000 Carriage Outwards 1,400

Lighting 15,000 Loss by Theft 25,100

Gain on Sale of Building 50,000

Closing Stock was valued at ₹ 2,50,000

Particulars Amount (₹)

Opening stock 7,600

Purchases return 250

Stationery and printing 250

Misc. expenses 200

Travelling expenses 500

Commission paid 150

Office expenses 1,600

Profit on sale of investment 500

Dividend on investment 2,500

Loss on sale of old furniture 300

Closing stock (March 31, 2017) valued at ₹ 8,000

as at 31st March, 2023

Liabilities Amount (₹) Assets Amount (₹)

Trade creditors 42,000 Stock in Hand 48,000

Expenses Accrued 3,200 Debtors 36,000

Band overdraft 4,800 Prepaid Expenses 400

Long-term loan 20,000 Goodwill 20,000

Interest on loan 1,000 Land 20,000

Capital 93,400 Plant 32,000

Commission paid 7,000

Interest paid on loan 5,000

Discount received 3,000

Printings and stationary 2,000

Legal charges 5,000

Bad debts 1,000

Interest received 4,000

Loss by fire 3,000

Amt (Rs.) Amt (Rs.)

Opening Stock 3,00,000 Wages 6,000

Purchases 8,40,000 Freight 10,800

Closing stock 2,40,000 Carriage inwards 3,000

The percentage of gross profit on sales is 20%.

Particulars Amount ₹ Particulars Amount ₹

Gross Profit 10,52,500 Discount allowed 15,000

Trade Expenses 10,000 Lighting 3,900

Carriage on Sales 50,000 Commission Received 4,200

Office Salaries 79,000 Bad-debts 6,000

Postage 3,600 Discount Cr. 3,000

Office Rent 37,500 Interest on Loan 11,000

Legal Charges 2,000 Stable Expenses 7,000

Audit fee 8,000 Export Duty 11,500

Donation 5,500 Miscellaneous Income 2,500

Sundry Expenses 1,800 Unproductive Expenses 20,500