XI CBSE 2024-25 Batch: Half Yearly Exam Oct 2024 – Accountancy

SUGGESTED ANSWERS
1 (c) 2 (d) 3 (a) 4 (c) 5 (c)

6 (c) 7 (d)

8. Furniture A/c Dr. 1,000

To Purchases A/c 1,000

9 (d) 10 (b)

11. Tangible assets

12 (a) 13 (a) 14 (b)

15. False. Goods purchased in cash are recorded in cash book and credit purchase of goods is recorded in purchases book.

16 (a) 17 (c)

18. Cash column of the cash book always have a debit balance because actual cash payments cannot be more than the actual
cash in hand.

19 (c) 20 (d)

Solution 21
Difference between Accrual Basis of Accounting and Cash Basis of Accounting (Any 3 points)

Basis Accrual Basis of Accounting Cash Basis of Accounting

1. Nature of Transactions Both cash and credit transactions are recorded. Cash transactions are recorded.

2. Prepaid/ Outstanding Prepaid expenses, outstanding expenses, Prepaid and outstanding expenses are not
Expenses/ Accrued Income/ accrued income and income received in advance adjusted. Similarly, accrued income and
lncome Received in Advance are accounted and adjusted for while preparing income received in advance are not
final accounts. adjusted.

3. Profit or Loss Correct profit or loss is ascertained because it Correct profit or loss is not ascertained
records both cash and credit transactions. because it records only cash transactions.

4. Technical Knowledge The Accrual Basis of Accounting requires It does not require much of technical
technical knowledge as many adjustments like knowledge as is required for Accrual Basis
prepaid, outstanding, capita! and revenue are of Accounting,
required to be made.

5. Legal Position Accrual Basis of Accounting is recognised by the Cash Basis of Accounting is not recognised
Companies Act, 2013. by the Companies Act, 2013.

6. Acceptability Accrual Basis of Accounting is more acceptable Cash Basis of Accounting is not acceptable
in business as it reveals correct income and in business as it does not reveal the required
expense besides assets and liabilities. information.

7. Reliability Accrual Basis of Accounting is more reliable as it Cash Basis of Accounting is less reliable as
records both cash and credit transactions and it records only cash transactions and as a
thus, reveals correct profit or loss besides assets result does not reveal correct profit or loss
and liabilities. and also assets and liabilities.

8. Suitability Accrual Basis of Accounting is suitable for Cash Basis of Accounting is suitable for Not-
businesses as it requires information that is for-Profit Organisations and Professionals
complex. It can be made available by Accrual such as chartered accountants, lawyers,
Basis of Accounting. etc., since they require comparatively less
information.

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Solution 22
(i) Purchase Book – Reason: Goods are purchased on credit.
(ii) Journal Proper – Reason: Furniture is purchased on credit.
(iii) Return Inwards Book / Sales Return Book – Reason: Goods received back due to defect.

Solution 23
Differences between book-keeping and accounting are (Any 3 points)
Basis Book-keeping Accounting
Scope Book-keeping includes identification of Accounting in addition to book-keeping includes
transactions, measuring of identified transaction summarising the classified transactions, analysing
in terms of money, recording of transaction and and interpreting the summarised results and
classification of transaction into ledgers. communicating the results to the interested parties.

Stage Book-keeping is the primary stage. Accounting is the secondary stage.

Relation It provides basis for accounting. Accounting begins where book-keeping ends.
Required skills Book-keeping does not require analytical skills. The accountant is required to possess analytical
skills.

Objective The objective of book-keeping is to record The objective of accounting is to analyse and
business transactions in a systematic manner. interpret the results disclosed by final accounts.
Branches Book-keeping has no branch. Accounting has several branches.

Solution 24
(i) Goodwill – Asset
(ii) Depreciation – Expense
(iii) Prepaid Expenses – Asset

Solution 25
JOURNAL OF SOHEL & CO.
Date Particulars L. Amount Amount
F. Dr Cr.
2024 Rs. Rs.
April 1 Purchases A/c Dr. 36,000
To Abhijeet A/c 36,000
(Goods of the list price of Rs.40,000 purchased at 10% trade discount)
April 2 Abhijeet A/c Dr. 900
To Purchases Return A/c 900
(Goods of the list price of Rs. 1,000, returned to Abhijeet; Actual price being Rs.
1,000 less 10% trade discount)
April 6 Abhijeet A/c Dr. 35,100
To Cash A/c 34,000
To Discount Received A/c (See Note 1) 1,100
(Cash paid to Abhijeet and discount received from him)

Note 1. Discount received from Abhijeet has been calculated as follows : Rs.
Purchases 36,000
Less : Purchases Return 900
Net Amount due to Abhijeet 35,100
Less : Amount paid in full settlement of his account 34,000
Discount received from him 1,100

Solution 26
Following are the important advantages of maintaining a Petty Cash Book :
(i) It saves the time of main cashier.
(ii) It helps in controlling the petty expenses.
(iii) Posting from Petty Cash Book is made at the end of a specified period. It saves the time and
simplifies the posting.
(iv) When expenses paid are reimbursed to petty cashier, these are checked by the main cashier. It
reduces the chances of errors and frauds.

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Solution 27
Cash A/c
Date Particulars JF Amount Date Particulars JF Amount
(Rs.) (Rs.)
2024 2024
Jan 30 To Balance b/d 7,000 Feb 1 By Purchase A/c 2,500
Feb 3 To Mihir A/c 4,000 Feb 3 By Balance c/f 8,500
11,000 11,000

Mihir A/c
Date Particulars JF Amount Date Particulars JF Amount
(Rs.) (Rs.)
2024 2024
Jan 31 To Sales A/c 5,000 Feb 2 By Sales Return A/c 700
Feb 3 By Cash A/c 4,000
Feb 3 By Discount Allowed A/c 300
5,000 5,000

Solution 28
Accounting Equation
Assets = Liabilities + Capital
Transactions Cash + Stock + Debtors + Furniture = Creditors + Capital
(Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
(i) Business started with cash and 2,00,000 + 1,80,000 + 0 + 0 = 0 + 3,80,000
goods
(ii) Bought goods on cash and on - 60,000 + 1,00,000 + 0 + 0 = 40,000 + 0
credit
New Equation 1,40,000 + 2,80,000 + 0 + 0 = 40,000 + 3,80,000
(iii) Goods sold for cash and credit + 64,000 - 96,000 + 64,000 + 0 = 0 + 32,000
New Equation 2,04,000 + 1,84,000 + 64,000 + 0 = 40,000 + 4,12,000
(iv) Purchased furniture for office and - 40,000 + 0 + 0 + 24,000 = 0 - 16,000
personal use
New Equation 1,64,000 + 1,84,000 + 64,000 + 24,000 = 40,000 + 3,96,000

4,36,000 = 4,36,000

Solution 29
Balances as on 31.03.2024 Rs.
Cash 50,000
Bank 95,000
Debtors 36,000
Plant and Machinery 1,60,000
Building 4,00,000
Furniture 48,000
Bills Receivable 1,13,000
Total Assets as on 31.03.2024 9,02,000

Balances as on 31.03.2024 Rs.

Creditors 44,000
Bills payable 47,000
Total Liabilities as on 31.03.2024 91,000

XICBSE/2024-25/Accounts/HY
Capital as on 31.03.2024 = Assets – Liabilities = Rs. 9,02,000 – Rs. 91,000 = Rs. 8,11,000
Capital as on 31.03.2025 = Opening Capital – Net Loss + Additional Capital – Drawings during the year
= Rs. 8,11,000 – Rs. 30,000 + Rs. 10,000 – Rs. 20,000
= Rs. 7,71,000

Solution 30
JOURNAL
Date Particulars L.F. Dr.(Rs.) Cr.(Rs.)
01.04.24 Cash A/c Dr. 12,000
Bank A/c Dr. 15,900
Furniture A/c Dr. 7,000
Raju's A/c Dr. 1,500
Shalu's A/c Dr. 1,800
To Loan from Akash A/c 10,000
To Madan's A/c 4,500
To Nisha's A/c 2,800
To Capital A/c 20,900
(Being the balances brought forward)
10.04.24 Drawings A/c** Dr. 2,160
To Bank A/c 2,160
(Being paid income tax by cheque)
16.04.24 Cash A/c Dr. 5,800
Discount Allowed A/c Dr. 200
To Amar Singh A/c 6,000
(Being cash received from Amar Singh after allowing him
discount of Rs. 200)
19.04.24 Charity A/c Dr. 800
To Purchases A/c 800
(Being goods given as charity)
23.04.24 Cash A/c Dr. 510
To Ganesh's A/c 510
(Being cash received from Ganesh on account)
25.04.24 Interest on Loan A/c Dr. 1,000
To Interest on Loan Outstanding A/c 1,000
(Being interest on loan due but not paid)
**Note: Income Tax is a personal expense. So, it is treated as Drawings.
In the entry dated 25.04.24, alternatively Akash A/c could be credited.

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Solution 31
Cash Book
Date Particulars L.F. Cash Bank Date Particulars L.F. Cash Bank
(Rs.) (Rs.) (Rs.) (Rs.)
2024 2024
May 1 To Balance b/d 5,000 25,000 May 6 By Purchases A/c 10,000
May 18 To Amit A/c 1,100 May 10 By Office Equipments A/c 10,000
May 23 To Bank A/c C 800 May 14 By Trade Expenses A/c 1,100
May 24 To Manoj A/c 4,920 May 23 By Cash A/c C 800
May 28 To Sales A/c 18,400 May 23 By Karan A/c 600
May 29 To Kuldeep A/c 10,000 May 25 By Drawings A/c 600
May 29 To Cash A/c C 6,000 May 29 By Bank A/c C 6,000
May 31 By Bank Charges A/c 220
May 31 By Balance c/d 28,200 13,700
35,300 35,920 35,300 35,920
June 1 To Balance b/d 28,200 13,700

Solution 32
In the Books of Sunil Traders
Analytical Petty Cash Book
Dr. Cr. Analysis of Payments
Amount Cash Date Particulars V. Total Post- Tele- Convey- Refresh- Misc.
Received Book No. Payments age phone ance Ment Exp.
(Rs.) Folio (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
2024
3,000 Apr 1 To Cash A/c
Apr 2 By Postage A/c 250 250
Apr 2 By Conveyance A/c 170 170
Apr 3 By Refreshment A/c 310 310
Apr 3 By Telephone A/c 70 70
Apr 4 By Postage A/c 60 60
Apr 5 By Conveyance A/c 90 90
Apr 5 By Refreshment A/c 110 110
Apr 6 By Telephone A/c 370 370
Apr 6 By Misc. Exp. A/c 80 80
1,510 310 440 260 420 80
Apr 6 By Balance c/d 1,490
3,000 3,000
1,490 Apr 7 To Balance b/d
1,510 Apr 7 To Cash A/c

XICBSE/2024-25/Accounts/HY
Solution 33
In the Books of M/s. Sohanlal & Co., Delhi
PURCHASES BOOK
Date Particulars Invoice No. L.F. Details Amount
Rs. Rs.
2025
Feb. 1 M/s. Rooplal & Co., Kolkata
5 gross Pencils @ Rs. 1,200 per gross 6,000
2 dozen Registers @ Rs. 500 per dozen 1,000
7,000
Less: Trade Discount @ 10% 700 6,300
Feb. 4 The Paper Co., Delhi
8 Reams White Paper @ Rs. 500 per ream 4,000
10 Reams Ruled Paper @ Rs. 600 per ream 6,000
10,000
less: Trade Discount @ 10% 1,000 9,000
Feb. 5 M/s. Verma Bros., Delhi
80 Reynolds Pens @ Rs. 5 per pen 400
Feb. 28 Purchases A/c ...Dr. 15,700
Note: Purchases for cash are recorded in the Cash Book. Purchase of a computer printer is also not entered in the Purchases Book
since the firm does not trade in it.

Solution 34
JOURNAL
S. No. Particulars L. F. Amount Amount
Dr. Cr.
Rs. Rs.
(i) Drawings A/c Dr. 10,000
To Purchases A/c 10,000
(Goods costing Rs. 10,000 sale price Rs. 12,000 withdrawn for personal use)
(ii) Bank A/c Dr. 95,000
Discount Allowed A/c Dr. 5,000
To Vikas 1,00,000
(Cheque received from Vikas and discount allowed)
(iii) Cash A/c Dr. 60,000
Travelling Expenses A/c Dr. 3,000
To Sales A/c 63,000
(Cash received for sales from travelling salesman after deducting his travelling
expenses)
(iv) Purchases A/c Dr. 64,000
To Bank A/c 60,800
To Discount Received A/c 3,200
(Goods worth Rs.80,000 bought at 20% trade discount and 5% cash discount)
(v) Repairs A/c Dr. 1,000
To Cash A/c 1,000
(Amount paid for repairs of furniture)
(vi) Rent A/c (2/3rd of 30,000) Dr. 20,000
Drawings A/c Dr. 10,000
To Bank A/c 30,000
(Paid rent by cheque. One third is occupied by the proprietor)

XICBSE/2024-25/Accounts/HY