Accountancy - Sample Question Paper

Attempt any 4 questions. Question 1 is compulsory.

1. (a) Define accounting and state any two of its objectives. (b) What is a bills receivable? State the various parties to a bill of exchange.
2. Rectify the following errors by passing journal entries: (i) Purchase of machinery for Rs.5,00,000 was debited to Purchase Account. (ii) Goods sold to Ramesh for Rs.50,000 was credited to Suresh.
3. On 1st April 2022, Mohan Ltd. consigned 200 radio sets costing Rs.15,000 to Khan & Co. The invoice price was fixed at Rs.1,000 per set. Expenses incurred were: freight Rs.2,000; insurance Rs.1,500. Khan & Co. sold 180 sets for Rs.2,25,000 and spent Rs.10,000 on godown rent and advertising. Commission is 10% on sales. Prepare necessary accounts.
4. (a) Distinguish between revenue reserves and capital reserves. (b) Explain the provisions for bad debts with suitable example.
5. Mahesh maintains his books under single entry system. From his books, you are provided the following information as on 31st March 2023. Prepare income statement for the year and statement of affairs on that date: Cash balance Rs.42,000; Debtors Rs.25,000; Stock Rs.80,000; Land & Building Rs. 5,00,000; Creditors Rs.35,000; Bills payable Rs. 20,000; Outstanding rent Rs.5,000; Capital on 1.4.2022 was Rs.6,00,000. Drawings made during the year Rs.50,000.
6. Write short notes on (any 2): (a) Errors not revealed by a Trial Balance
   (b) Depreciation under Straight Line Method (c) Difference between Joint Venture and Consignment