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Kerala Plus One Business Studies Previous Year Question Paper March 2019 with Answers

Time Allowed: 2^1/2 hours
Cool off time: 15 Minutes
Maximum Marks: 80

General Instructions to Candidates

• There is a ‘cool off time of 15 minutes in addition to the writing time.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Answer all questions from question numbers 1 to 9. Each carries one score. (9 × 1 = 9)

Question 1.
Which among the following is a ‘human cause’ of business risk?
a) Earthquake
b) Mismanagement
c) Change in demand
d) Competition in market
Answer:
b) Mismanagement

Question 2.
‘One man one vote’ is the principle of ………… form of business organisation.
a) Joint stock company
b) Partnership
c) Co-operative societies
d) Hindu joint family business
Answer:
c) Co-operative societies

Question 3.
Which among the following is an example of departmental undertaking?
a) LIC
b) RBI
c) Doordarshan
d) KSRTC
Answer:
c) Doordarshan

Question 4.
Give one example for ‘discretionary responsibility’ of business.
Answer:
Give donation to a charitable institution

Question 5.
Complete the series as per hint given.
a) Equity Shares – Owned Capital
b) Debentures – …………..?
Answer:
Borrowed capital / Debt capital

Question 6.
The only international non-governmental organization of micro, small and medium enterprises in India is ………..
a) NABARD
b) SIDBI
c) WASME
d) UTI
Answer:
c) WASME

Question 7.
Suggest two products which are suitable for dealing through vending machines.
Answer:
News paper, Softdrinks

Question 8.
Which among the following is a document relating to the payment in international business?
a) Shipping bill
b) Certificate of origin
c) Letter of credit
d) Export invoice
Answer:
c) Letter of credit

Question 9.
Find the odd one out:
a) Trade credit
b) Certificate of deposit
c) Bank overdraft
d) Plaughing back of profits
Answer:
d) Plaughing back of profits

Answer any six from questions from 10 to 16. Each carries two scores. (6 × 2 = 12)

Question 10.
What is franchising?
Answer:
Franchising is arrangement where one party grants another party the right to use its trademark, name or patent in return of agreed payment for specified period of time.

Question 11.
Who are cheap jacks?
Answer:
Cheap Jacks: They are small retailers who have independent shops of a temporary nature in a business locality. They keep on changing their business from one locality to another.

Question 12.
Distinguish between ADR and GDR.
Answer:

Question 13.
Anu and Varghese are working in a business organization doing the same job. Anu is paid Rs. 500 per day, while Varghese is at 750. Is the act of management genuine? Why?
Answer:
a) No.
b) It is against business ethics and social responsibility of business.

Question 14.
Name any two types of payment machanisms used in e-Business transactions.
Answer:

1. Cash on delivery
2. Cheque
3. Net banking
4. Credit card/Debit Card

Question 15.
Bring out any two features of business services.
Answer:
Nature of Services:

1. Intangibility: Services are intangible, i.e., they cannot be touched.
2. Less Inventory: Services cannot be stored for future use.
3. Involvement: participation of the customer in the service delivery is a must.

Question 16.
What do you mean by plaughing back of profits?
Answer:
Retained Earnings (Ploughing Back of Profit): A company generally does not distribute all its earnings amongst the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as retained earnings. It is a source of internal financing or self financing or ‘ploughing back of profits’

Answer any four from questions numbers from 17 to 21. Each carries three scores. (4 × 3 = 12)

Question 17.
What do you mean by business risk? What is the reward of businessman for taking this risk?
Answer:

• The term ‘business risks’ refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events.
• Profit is the reward for taking business risks

Question 18.
Explain any three features of a statutory corporation.
Answer:

1. Statutory corporations are set up under an Act of Parliament and are governed by the provisions of the Act.
2. It has a separate legal entity
3. The employees of these enterprises are not government or civil servants.

Question 19.
Write any three reasons for international business.
Answer:
Reasons for international business:

1. Because of unequal distribution of natural resources and differences in productivity levels, a country cannot produce all that they need.
2. Labour productivity and production costs differ among nations due to various socio-economic, geographical and political reasons.
3. Availability of various factors of production such as labour, capital and raw materials differ among nations.

Question 20.
Write a short note on ‘District industrial Centres’ (DIC’s).
Answer:
The District Industries Centers (DICs): DICs were established in May 1978. District Industries Centers is the institution at the district level which provides all the services and support facilities to the entrepreneurs for setting up small and village industries.

Identification of suitable schemes, preparation of feasibility reports, arranging for credit, machinery and equipment, provision of raw materials and other extension services are the main activities undertaken by these centers.

Question 21.
Distinguish between public warehouses and bonded warehouses.
Answer:
Public warehouses: They are owned by some agencies, offer storage facilities to the public after charging certain fees. The working of public warehouses is subject to some govt, regulations. They are also known as Duty paid warehouses.

Bonded warehouses: These warehouses are used to keep the imported goods before the payment of import duties. It offers many advantages to the importer, i.e. The importer can release the goods in part by paying the proportionate amount of duty. The goods can be branded, blended and packed in the warehouse itself.

Answer any three questions from 22 to 25. Each carries four scores. (3 × 4 = 12)

Question 22.
Write short notes on the following:
a) H.U.F. (Hindu Undivided Family Business)
b) Partnership deed
Answer:
a) Joint Hindu Family Business (HUF):
It refers to a form of organisation where in the business is owned and carried on by the members of a joint Hindu family. It is also known as Hindu Undivided Family Business (H.U.F). It is governed by Hindu succession Act, 1956. It is found only in India.

The business is controlled by the head of the family who is the eldest member and is called karta. All members have equal ownership right over the property of an ancestor and they are known as co-parceners.

b) Partnership Deed:
The written agreement which specifies the terms and conditions that govern the partnership is called the partnership deed.

Contents:

• Name of firm
• Nature of business and location of business
• Duration of business
• Investment made by each partner
• Profit sharing ratio
• Rights, duties and powers of the partners

Question 23.
Who is a promotor? Describe any two of his functions in relation with the formation of a company.
Answer:
a) The person who undertakes to form a company is called promoter.
Functions of a promoter:

• Identification of business opportunity: The first and foremost activity of a promoter is to identify a business opportunity.
• Feasibility studies: After identifying a business opportunity, the promoters undertake some feasibility studies to determine the viability and profitability of the proposed activity.
• Name approval: After selecting the name of company the promoters submit an application to the Registrar of companies for its approval. The selected name is not the same or identical to an existing company.

Question 24.
Write any four differences between a share and a debenture.
Answer:

Question 25.
Illustrate any four major problems faced by small business in India.
Answer:
Problems of small business:
Small businesses are faced with the following problems

1. Small scale industries find it difficult to get adequate finance from banks and other financial institutions.
2. They are not able to get quality raw materials at reasonable prices.
3. Small business is generally operated by people who may not have all the managerial skills required to run the business.
4. Small business firms cannot afford to pay higher salaries to the employees.

Question 26.
Match the following: (4 × 1 = 4)

Answer:

Answer any three questions from 27 to 30. Each carries five scores. (3 × 5 = 15)

Question 27.
Describe the importance of profit in business.
Answer:
Merits:

• It is a permanent source of funds available to an organization
• No costs in the form of interest, dividend or flotation cost.
• It is more dependable than external sources.
• There is no commitment to pay dividend.
• It increases the financial strength and earning capacity of the business.

Question 28.
Explain the features of a ‘global enterprise’.
Answer:
Features of MNCs:
1. Huge capital resources: Multinational companies have the ability to raise huge funds from different sources such as equity shares, debentures, bonds, etc. They can also borrow from financial institutions and international banks.

2. Foreign collaboration: Global enterprises usually enter into agreements relating to the sale of technology, production of goods, use of brand name, etc. with local firms in the host countries.

3. Advanced technology: Multinational companies can possess latest and advanced technology so that they can provide quality products.

4. Product innovation: Multinational companies are able to conduct sophisticated research so that they can develop new products.

5. Marketing strategies: They use aggressive marketing strategies in order to increase their sales in a short period. Their advertising and sales promotion techniques are normally very effective.

Question 29.
This document is called as the charter or constitution of a ‘Joint Stock Company’.
a) Identify the document.
b) Explain its contents.
Answer:
Memorandum of Association: It is the charter or Magna Carta of the company. It defines the objects of the company and provides the framework beyond which the company cannot operate. It lays down the relationship of the company with outside world. Memorandum of Association must be printed, divided into paragraphs, numbered consecutively. The Memorandum of Association must be signed by at least seven persons in case of a public company and by two persons in case of a private company.

1. The name clause: Under this clause the name of the company is mentioned. A company can select any name subject to the following restrictions.

• The proposed name should not be identical with the name of another company
• A name which can mislead the public
• Incase of a public company the name should end with the word ‘Limited’ and in case of a private company the name should end with the word ‘Private Limited’

2. Registered office clause: This clause contains the name of the state, in which the registered office of the company is proposed to be situated.

3. Objects clause: This is the most important clause of the memorandum. It defines the purpose for which the company is formed.

4. Liability clause: It states that the liability of members is limited to the face value of shares held by them or the amount guaranteed to be paid on winding up.

5. Capital clause: This clause specifies the maximum capital which the company will be authorised to raise through the issue of shares.

Question 30.
Write how the business impart their responsibility to the following interest groups, (one each)
a) Customers
b) Government
c) Suppliers
d) General public
e) Owners
Answer:

• Responsibility toward consumers: Supply right quality and quantity of goods and services at reasonable prices.
• Responsibility Towards Government: Pay taxes regularly and honestly.
• Suppliers: Make payments in time
• General Public: Make employment opportunities
• Responsibility towards shareholders or owners: To ensure the safety of their investment.

Answer any two questions from 31 to 33. Each carries eight scores. (2 × 8 = 16)

Question 31.
Jisha and Lekha jointly start a business on the basis of an agreement. They contributed capital and sharing risks, engaged in business jointly and severally.
a) Identify the form of business organization mentioned above.
b) Describe any four merits and three demerits of it.
Answer:
Partnership: The Indian Partnership Act, 1932 defines partnership as “the relation between persons who have agreed to share the profit of the business carried on by all or
any one of them acting for all.”

Merits of Partnership:

• Easy formation and closure: A partnership firm can be formed and closed easily without any legal formalities.
• Balanced decision making: In partnership, decisions are taken by all partners. So they can take better decisions regarding their business.
• Division of labour: Division of labour is possible in partnership firm. Duties can be assigned to different partners according to their ability.
• Large funds: In a partnership, the capital is contributed by a number of partners. So they can start business on a large scale.

Limitations of Partnership:

• Unlimited liability: The partners of a firm have unlimited liability. The partners are jointly and individually liable for payment of debts.
• Limited resources: There is a restriction on the number of partners. Hence capital contributed by them is also limited.
• Possibility of conflicts: Lack of mutual understanding and co-operation among partners may affect the smooth working of the partnership business.

Question 32.
‘Super market is a large retailing business unit dealing consumer goods’.
a) Describe its features.
b) List any four of its merits and demerits.
Answer:
Features of Super Market:

• They are located at the centre of a town.
• They sell goods on cash basis only.
• They deal wide variety of goods.
• There is no salesman to help consumers

Advantages:

• Consumers can purchase everything from supermarket
• There is no bad debt as sales are on cash basis only.
• They are located at the centre of a town.
• It attracts a large number of consumers.

Disadvantages:

• Large premises at central location is not available easily.
• It lacks personal advice of salesman
• They do not provide credit facilities to customers.
• The employees in a supermarket do not take initiative to increase sales.

Question 33.
Explain the following principles of Insurance.
a) Causa proxima
b) Utmost good faith
c) Mitigation of loss
d) Contribution
Answer:
a) Causa Proxima: When the loss is the result of two or more causes, the proximate cause for the loss alone will be considered by the insurance company for admitting the claim.

b) Utmost good faith: The insured must disclose all material facts about the subject matter to the insured. Otherwise the insurer can cancel the contract. The insurer must disclose all the terms and conditions in the insurance contract to the insured.

c) Mitigation of loss: This principle states that it is the duty of the insured to take reasonable steps to minimize the loss or damage to the insured property. If reasonable care is not taken then the claim from the insurance company may be rejected.

d) Contribution: In certain cases, the same subject matter is insured with one or more insurers. In case there is a loss, the insured is eligible to receive a claim only up to the amount of actual loss suffered by him.

Plus One Business Studies Previous Year Question Papers and Answers

Kerala Plus One Accountancy AFS Improvement Question Paper Say 2018 with Answers

Time Allowed: 2^1/2 hours
Cool off time: 15 Minutes
Maximum Marks: 80

General Instructions to Candidates

• There is a ‘cool off time of 15 minutes in addition to the writing time.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Answer all questions from 1 to 7. Each carries 1 score. (7 × 1 = 7)

Question 1.
Choose a current asset of a vegetable merchant from the following.
(a) Building
(b) Furniture
(c) Stock of vegetables
(d) Weighing machine
Answer:
(c) Stock of vegetables

Question 2.
Which accounting concept/principle states that every business transaction has a dual or twofold effect?
Answer:
Dual Aspect Concept

Question 3.
Salary paid to Krishnaveni debited to her personal account. Identify the type of error.
Answer:
Error of Principle

Question 4.
On 8/01/2018 Varun draws a 2 months bill on Sudheer for ₹ 27,000/-. If the due date of the bill fall on Sunday, what will be the next due date of the bill?
Answer:
Preceding Saturday

Question 5.
Credit purchase can be ascertained as the balancing figure in the ………. account from incomplete records.
Answer:
Total Creditors A/c

Question 6.
MIS stands for …………
Answer:
Management Information System (MIS)

Question 7.
The interface used for inputting data to a database is called ……………
Answer:
Forms

Answer all questions from question number 8 to 13, each carries 2 scores. (6 × 2 = 12)

Question 8.
Mention any two internal users of accounting information.
Answer:
Internal users of accounting information

1. Management
2. Employees
3. Financial Officers

Question 9.
List any two objectives of preparing a trial balance.
Answer:

1. To ascertain the arithmetical accuracy of ledger accounts.
2. To help in ascertaining errors

Question 10.
The original cost of a Machinery ₹ 3,50,000/-, Erection charges ₹ 40,000/-, Pre operating cost ₹ 20,000/-, Salvage value after 8 years were ₹ 10,000/-. Calculate the annual depreciation of the Machinery.
Answer:

Question 11.
What is mean by Marshalling of Assets and Liabilities?
Answer:
Marshaling denotes the order in which the assets and liabilities are shown in the balance sheet. They are arranged either in the order of liquidity or in the order of permanence.

Question 12.
From the following extract of Cashbook, post them to respective ledger accounts.
Cash Book

Answer:

Question 13.
List out four limitations of Computerized Accounting System.
Answer:

1. Huge Training Cost
2. Staff opposition
3. System failure
4. Inability to check unanticipated errors

Answer any 5 questions from question numbers 14 to 19, each carries 3 scores. (5 × 3 = 15)

Question 14.
Explain the following accounting concepts.
a) Business entity concepts.
b) Matching concept
c) Objectivity concept
Answer:
a. Business Entity Concept:
This concept assumes that the entity of business is different from its owners. The business is treated as a unit or entity separate from the person who control it.

b. Matching concept:
Under ths concept, all the expenses as well as the revenues of a particular period should be accounted or otherwise it should be matched.

c. Objectivity concept:
According to this concept, accounting transactions should be recorded in the manner so that it is free from the bias of accountants and others.

Question 15.
Journalize the following transactions.
2017, October
1 Started a business with cash ₹ 2,00,000/-
3 Purchased goods from Hakkim ₹ 18,000/-
5 Sold goods to Vinu for cash ₹ 26,000/-
8 Withdraw goods for personal use ₹ 1000/-
Answer:

Question 16.
Sunitha’s Cash Book showed an credit balance of ₹ 12000/- but her passbook showed an overdraft of ₹ 20000/-. State any three reasons for this disagreement between cash book and passbook balances.
Answer:

1. Cheque issued but not presented for payment.
2. Cheque paid into bank but not yet collected.
3. Direct deposit by a customer into the bank account.
4. Interest and dividends collected by the bank.

Question 17.
Rectify the following errors.
a) Purchase daybook is undercast by ₹ 900/-
b) Repairs on Machinery ₹ 1000/- debited to Machinery a/c.
c) Purchase of Furniture ₹ 10000/- from Sabari Recorded through Purchase daybook.
Answer:

Question 18.
Calculate manager’s commission on the notional profit of ₹ 1,10,000.
a) 10% on net profit before charging such commission.
b) 10% on net profit after charging such commission.
c) Pass a common adjusting entry for the manager’s commission.
Answer:

Question 19.
From the following information, calculate capital on 1^st January, 2017.
a) Capital on 31.12.2017 ₹ 6,00,000.
b) Drawings made during the year 2017 ₹ 50,000/-
c) Profit made during the year 2017 ₹ 1,50,000/-
d) Capital introduced on 1.07.2017 ₹ 1,00,000
Answer:

Answer any 5 questions from question numbers 20 to 25, each carries 4 scores. (5 × 4 = 20)

Question 20.
Briefly explain the qualitative characteristics of accounting information.
Answer:
Qualitative characteristics of accounting information:
a) Reliability – Accounting information will be reliable if it is free from errors.
b) Relevance – Information should be relevant and must be available in time.
c) Understandability – Accounting information should be easily understood by its users. The information must be clear, brief and intelligible.
d) Timeliness – Accounting information must be available timely. If not, it loses its ability to influence decisions.
e) Comparability – Accounting information should facilitates inter-firm as well as intra-firm comparison.

Question 21.
Show the effect of the following transaction on assets, liabilities and capital through accounting equation.
2017, June
1 Started. business with cash ₹ 1,00,000/-
2 Bought goods from Subhadra ₹ 20,000/-
3 Wages paid ₹ 1,000/-
5 Bought furniture ₹ 10,000/-
Answer:

Assets = Liabilities + Capital
1,10,000 = 20,000 + 99,000

Question 22.
State any four distinctions between Bills of Exchange and Promissory Note.
Answer:
Difference between Bill of Exchange and Promissory Note:

Question 23.
Compute the cost of goods sold for the year 2017 with the help of the following information.
Sales ₹ 12,00,000/-
Purchases ₹ 7,00,000/-
Wages ₹ 50,000/-
Carriage inwards ₹ 12,000/-
Stock on 1-1-2017 ₹ 1,00,000/-
Stock on 31.12.2017 ₹ 1,17,000/-
Answer:
Cost of goods sold = Opening stock + Purchases + Direct expenses – Closing Stock
= (100000 + 700000 + 50000 + 12000) – 117000
= 862000 – 117000 = 745000

Question 24.
Pass the adjusting entry on the following transactions.
a) Prepaid rent ₹ 2,000/-
b) Interest due but not received ₹ 1,000/-
c) Depreciation on furniture ₹ 3,000/-
d) Bad debts ₹ 4,000/-
Answer:

Question 25.
Calculate total sales for the year 2017 from the following data.
Cash sales during 2017 ₹ 12,000/-
Debtors on 1.1.2017 ₹ 18,000/-
Cash received from debtors during 2017 ₹ 47,000/-
Discount allowed during 2017 ₹ 3000/-
Debtors on 31.12.2017 ₹ 20,000/-
Answer:

Total Sales = Cash sales + Credit sales
= 12000 + 52000 = 64000

Answer any 2 questions from question numbers 26 to 28. Each carries five scores. (2 × 5 = 10)

Question 26.
Prepare a Bank Reconciliation Statements as on 31^st December, 2017 from the following information:
a) Cash bookdebit balance on 31.12.2017 ₹ 38,000/-
b) Cheque deposited into bank during 2017 but not collected in the year ₹ 12,000/-
c) Cheque issued during 2017 but not presented for paymnet ₹ 16,000/-
d) Direct payment by a customer on 30.12.2017 not recorded in cash book ₹ 20,000/-
e) Insurance premium paid by the bank as per standing instruction, not appeared in cash book ₹ 5,000/-
f) Interest credited by bank ₹ 3,000/- not appeared in cash book.
Answer:

Question 27.
Anakha purchased a Machinery on 01.01.2014 for ₹ 1,24,000/-. Installation charges were ₹ 16,000/-. On 01.07.2015 an additional machinery purchased for ₹ 40,000/- On 01.04.2016 another machinery bought for ₹ 60,000/-. Prepare Machinery account by charging depreciation @ 10% on original cost from 2014 to 2017 assuming that the books are closed on every 31^st December.
Answer:

Question 28.
Nisha sold goods to Geetha for ₹ 30,000/-. On 18.01.2018 and drew upon her a bill of exchnage payable after 3 months. Geetha accepted the bill and returned the same to Nisha. Record the journal entries in the books of Nisha based on the following cirumstances.
a) Nisha kept the bill till due date and Geetha met the bill.
b) Nisha discounted the bill @ 6% p.a. on 21.01.2018.
c) Nisha endorsed the bill to Salim on 30.01.2018.
Answer:

Answer any 2 questions from question numbers 29 to 31. Each carries 8 scores. (2 × 8 = 16)

Question 29.
Prepare appropriate daybooks from the following transactions in the books of Suresh Cycles.

Answer:

Question 30.
From the following Trial Balance of Krishna Sarees on 31^st December, 2017, prepare Trading and Profit & Loss Account and Balance sheet as on that date.

Additional Information:
a) Stock on 31.12.2017 ₹ 25,000/-
b) Carriages outstanding ₹ 500/-
c) Insurance prepaid ₹ 200/-
d) Write off bad debts ₹ 1,000/- and provision for bad debts 10%.
Answer:

Question 31.
Explain the following with suitable examples.
a) Fixed asset
b) Source document
c) Compensating error
d) Attribute
Answer:
a. Fixed Assets:
Fixed assets are those assets held on long-term basis such as land, building, machinery, plant etc. These assets are used in the normal opera¬tions of the business.

b. Source Document:
It is a written document to be used in support of entry made in the accounts. These provide information about the trasactions involved and helps in verifying the correctness of books of accounts. For examples: the receipts, bills, invoices etc.

c. Compensating error:
These errors arise when a mistake made in one direction is compensated by another mistake made in the opposite direction, to the extent of same amount.

d. Attribute:
Attributes are some properties of interest or characteristics that further described the entity such as height, weight and date of birth in the case of a person and code and name in the case of ac-counts.

Plus One Accountancy Previous Year Question Papers and Answers

Kerala Plus One Accountancy AFS Previous Year Question Paper March 2018 with Answers

Time Allowed: 2^1/2 hours
Cool off time: 15 Minutes
Maximum Marks: 80

General Instructions to Candidates

• There is a ‘cool off time of 15 minutes in addition to the writing time.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Answer all questions from question numbers 1 to 7. Each carry one score. (7 × 1 = 7)

Question 1.
Find the odd one out
a) Cash
b) Bank
c) Stock
d) Furniture
Answer:
d) Furniture

Question 2.
Which accounting principle/concept is based on the policy of playing safe?
Answer:
Principle of conservatism / Prudence

Question 3.
Cheque received from Johnson ₹ 5,000/- deposited into bank. Bank intimates that it was dishonored. But it is not recorded in cash book. Identify the type of error.
Answer:
Error of omission (Complete omission)

Question 4.
A promissory note is drawn by ………..
a) Investor
b) Debtor
c) Bank
d) Creditor
Answer:
b) Debtor

Question 5.
Write the equation on which the statement of affairs is prepared from incomplete records.
Answer:
Capital = Assets – Liabilities

Question 6.
ALU stands for ……….
Answer:
Arithmetic and Logic Unit (ALU)

Question 7.
In DBMS the element used to get only the required data as output is ………..
Answer:
Queries

Answer all questions from question numbers 8 to 13. Each carries two scores. (6 × 2 = 12)

Question 8.
Complete the diagram.

Answer:
a) ManagementAccounting
b) CostAccounting

Question 9.
List out any two advantages of maintaining petty cash book.
Answer:
Advantages of Maintaining Petty cash book

1. Saving of time and effort of chief cashier
2. Effective contorl over cash disbursement

Question 10.
Rectify the following errors.
a) Sales day book overcast by ₹ 9,000/-.
b) Paid rent to Salim ₹ 1,000/- debited to his personal account.
Answer:

Question 11.
List out any two factors affecting the depreciation of fixed assets in a business.
Answer:
Factors affecting the depreciation of fixed assets are as follows

1. Cost of asset
2. Estimated useful life
3. Estimated net residual value
4. Depreciable cost of an asset

Question 12.
Calculate the operating profit from the following profit and loss account.

Answer:
Operating profit = Net profit + Non operating Expenses – Non operating income.
= (43000 + 4000) – 2000
Operating profit = 45,000
OR
Operating profit = (Gross profit – operating expenses) + operating income
= (60,000 – 15000 + 5000) + 5000
= 40,000 + 5000
= 45,000

Question 13.
List out any four advantages of Computerized Accounting System.
Answer:

1. Speed-Accounting data is processed faster by using computer acconting system.
2. Real time user interface
3. Automated document production
4. Generate quality reports
5. Accounting data is updated automatially

Answer any five from question numbers 14 to 19. Each carries three scores. (5 × 3 = 15)

Question 14.
Explain the following accounting concepts.
a) Going concern
b) Dual aspect
c) Consistency
Answer:
a) Going concern concept:
According to this concept, the business unit is assumed to have an indefinite life. There is no intention to wind up or end the business in the near future.

b) Dual aspect concept:
According to this concept, each and every business transaction has two aspects a giving aspect (credit) a receiving aspect (debit) and ultimately it affect a change in the composition of assets and liabilities.

c) Consistency principle:
According to this principle, the accounting practies should remain the same from one year to another.
For eg: stock-in-trade should be valued according to one method from one year to another.

Question 15.
Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation.
a) Started business with cash ₹ 2,00,000/-
b) Purchased goods from Manu ₹ 10,000/-
c) Sold goods to Rinu (costing ₹ 6,000) for ₹ 8,000/-
Answer:

Assets = Liabilities + capital
2,12,000 = 10,000 + 2,02,000

Question 16.
Lekshmi Enterprise’s cash book showed a debit balance of ₹ 18,000/-. Its passbook showed credit balance of ₹ 20,000/-. State any three possible reasons for this differences in balance.
Answer:
The reasons for the difference between cash book balance and passbook balance are as follows :

• Cheques issued but not presented for payment
• Direct payment by a customer into the trader’s bank account
• Cheque paid into bank for collection but not yet collected

Question 17.
Prepare a Trial Balance from the following balances.

Answer:

Question 18.
Pass the adjusting entry on the following.
a) Salary outstanding ₹ 2,000/-
b) Depreciation on machinery ₹ 3,000/-
C) Interest on capital ₹ 1,000/-
Answer:

Question 19.
Calculate capital on 1^st April, 2017 by preparing statement of affairs from the following balances on that date.

Answer:

Answer any five from question numbers 20 to 25. Each carries four scores. (5 × 4 = 20)

Question 20.
Briefly explain the objectives of accounting.
Answer:
Objectives of Accounting are given below:

• To maintain a systematic record of all financial transaction in books of accounts.
• To ascertain the profit earned or loss incurred by a business during an accounting period.
• To ascertain the financial position of the business concern.
• To provide meaningful information to different group of people having interest in the business.

Question 21.
Journalize the following transactions.

Answer:

Question 22.
On August 1, 2017 Anuja sold goods to Blessy for ₹ 24,000/- and immediately draw a bill on Blessy for three months for the same amount. Bill accepted and returned to Anuja, On October 4, 2017 Blessy retired her acceptance at rebate of 10% p.a. Pass the journal entries in the books of Anuja.
Answer:

Question 23.
Arrange the following assets in the order of permanence.
a) Cash in hand
b) Land and building
c) Sundry debtors
d) Stock in trade
e) Furniture
f) Cash at bank
g) Bills receivable
h) Plant & Machinery
Answer:
Assets in the order of permanence:
1. Land and Building
2. Plant and Machinery
3. Furniture
4. Stock in trade
5. Sundry Debtors
6. Bill Receivable
7. Cash at bank

Question 24.
From the extract of Trial Balance and additional information, show how the items will appeared in the final accounts of Mrs. Shamla.

Additional information:
a) Write off further Bad debts ₹ 1,000/-
b) Provision for bad debts @ 10%
Answer:

Question 25.
Calculate total purchase from the following data during 2017.

Answer:

Total purchase = cash purchase + credit purchase
= 72,000 + 80,000
= 1,52,000

Answer any two from question numbers 26 to 28. Each carries five scores. (2 × 5 = 10)

Question 26.
Prepare a Bank Reconciliation Statement from the following information.
a) Overdraftas per the cash book ₹ 12,000/-
b) Cheque issued but not presented ₹ 8,000/-
c) Cheque deposited but not collected ₹ 12,000/-
d) Interest debited by bank ₹ 1,000/-
e) Muncipal Tax paid by bank as per standing instruction ₹ 2,000/-
f) Dividend collected by bank ₹ 5,000/-
Answer:

Question 27.
Athulya bought Plant & Machinery on 01.04.2013 for ₹ 60,000/-. Erection charges amounting to ₹ 10,000/-. On 01.01.2015 a new Machinery purchased for ₹ 30,000/-. On 01.07.2016 an additional Machinery purchased for ₹ 40,000/-. Prepare Plant & Machinery account by charging depreciation @ 10% on diminishing balance method for first four years asssuming that the books are closed on 31^st March every year.
Answer:

Question 28.
On 11.08.2017 Pavithra purchased goods from Kiran for 18,000/-. Kiran draws a 3 months bill on Pavithra and get it accepted. On 14.08.2017 Kiran discounted the bill @ 6% p.a. with his bank. On due date Pavithra dishonoured the bill. Record journal entries in the books of Kiran.
Answer:

Answer any two from question numbers 29 to 31. Each carries eight scores. (2 × 8 = 16)

Question 29.
Prepare the Trading and Profit & Loss account and Balance Sheet of Ramakrishna Textiles from the following Trial Balance as on 31^st December 2017.

Additional information:
a) Stock on 31.12.2017 ₹ 20,000/-
b) Salary outstanding ₹ 3,000/-
c) Depreciate building @ 5%
d) Provision for bad debts @ 10%
Answer:

Question 30.
For the month of October 2017, prepare double column cash book from the following transactions. October 2017

Answer:

Question 31.
Explain the following with suitable examples.
a) Current asset
b) Source document
c) Error of commission
d) Key attribute
Answer:
a) Current Asset:
Current assets are those assets which get converted into cash within an operating cycle generally one year. Current are assets held on a short term basis.
Examples are Sundry debtors, Bill Receivables, stock, cash and bank balances.

b) Source Document:
Source document is a written document to be used in support of entry made in the accounts. They provide information about the transaction involved and helps in verifying the correctness of books of accounts.
Examples are the receipts, bill, cash memos, invoices, salary bill etc.

c) Error of commission:
Errors committed when transactions are incorrectly recorded are called error of commission. These are errors caused by wrong posting, wrong balancing, wrong totalling etc.
Examples are:-

• Sales return from Manu Rs. 1500 were posted to his account as Rs. 1000
• Cash received from Karan Rs. 5000 posted to Amal.

d) Key Attributes:
An attribute which contains unique values for identifying the entity instance is called identifier or key attribute of an entity type.
Examples are:-

• “Roll No” is a key attribute of entity type ‘student’.
• “Employee ID” is a key attribute of entity type ‘Employee’.
• “Code” is a key attribute of entity type ‘Accounts’.

Plus One Accountancy Previous Year Question Papers and Answers

Kerala Plus One Accountancy AFS Previous Year Question Paper March 2019 with Answers

Time Allowed: 2^1/2 hours
Cool off time: 15 Minutes
Maximum Marks: 80

General Instructions to Candidates

• There is a ‘cool off time of 15 minutes in addition to the writing time.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Answer all questions from 1 to 7. Each carry one score. (7 × 1 = 7)

Question 1.
Find the odd one among the given users of accounting information.
a) Managers
b) Creditors
c) Tax Authorities
d) Labour unions
Answer:
a) Managers, others are external users of accounting information.

Question 2.
The accounting concept behind creating provision for doubtful debts is ……………
a) Consistency concept
b) Conservatism concept
c) Materiality concept
d) Objectivity concept
Answer:
b) Conservatism concept

Question 3.
The ‘Book of Original Entry’ is …………..
a) Cash book
b) Sales book
c) Purchases book
d) All of these
Answer:
d) All of these

Question 4.
The overdraft amount as per passbook will be reduced when:
a) Encashment of cheque issued to a supplier.
b) Direct payment made by a customer to the bank.
c) Interest on overdraft charged by the bank.
d) All of these.
Answer:
b) Direct payment made by a customer to the bank.

Question 5.
Which among the following is a TRUE statement?
a) Provision is an appropriation of profit.
b) Maintaining reserve is compulsory for every business.
c) Provision created even if the business incurs losses.
d) Provision for discount on debtors is created to meet the bad debt losses.
Answer:
c) Provision created even if the business incurs losses.

Question 6.
A bill of exchange is to be accepted by ……….
a) Debtor
b) Creditor
c) Drawer
d) Payee
Answer:
a) Debtor

Question 7.
Prepaid salary is treated as:
a) Expenses
b) Income
c) Asset
d) Liability
Answer:
c) Asset

Question 8.
Match the column ‘A’ with ‘B’. (5 × 1 = 5)

Answer:

Answer any four questions from 9 to 13. Each carries two scores. (4 × 2 = 8)

Question 9.
List out any four qualitative characteristics possessed by the accounting information to be useful for decision making.
Answer:

1. Reliability
2. Relevance
3. Understandability
4. Timeliness
5. Comparability

Question 10.
The stationery items purchased for business use are treated as an expense and not shown as an asset in the books of accounts.
a) Identify the guiding concept of this accounting treatment.
b) Give any other example of observing this accounting concept.
Answer:
a) Materiality Principle
b) Amounts are rounded off to the nearest rupee.

Question 11.
From the given list, identify the type of errors which cause disagreement in Trial Balance.
a) Purchases return book overcast by Rs. 200/-.
b) Credit sales of Rs. 2,000/- omitted to be recorded in the sales book.
c) Purchase of furniture on credit for Rs. 8,000/-wrongly passed through the purchases book.
d) Cash sales of Rs. 3,000/- recorded in cash book omitted to be posted to the sales account.
Answer:
a) Purchases return book overcast by Rs. 200/-.
d) Cash sales of Rs. 3,000/- recorded in cash book omitted to be posted to the sales account.

Question 12.
On January 1, 2018 Amal sold goods, having list price of Rs. 15,000/- at a trade discount of 10%, on credit to Benny. On the same day, Amal draws a three months after date bill for the due amount in favour of Benny. The bill was duly accepted and returned by Benny. Based on the given case find out:
a) The amount of bill.
b) The date of maturity of bill.
Answer:
a) 15000 – (15000 × 10%) = 13,500
b) Date of maturity = 04/04/2018

Question 13.
List out the four essential functional areas or sub-systems of Management Information System (MIS).
Answer:

1. Manufacturing Information System.
2. Marketing Information System.
3. Human Resource Information System.
4. Accounting Information System.

Answer any five questions from 14 to 19. Each carries three scores. (5 × 3 = 15)

Question 14.
Classify the following assets as current assets and fixed assets.
a) Machinery
b) Cash in hand
c) Debtors
d) Bills Receivable
e) Furniture
f) Motor vehicles
Answer:

Question 15.
Distinguish between the ‘Journal’ and the ‘Ledger’.
Answer:

Question 16.
Develop Accounting Equation for the following transactions:
a) Started a business with cash Rs. 80,000/- and furniture worth Rs. 20,000/-.
b) Goods purchased on credit Rs. 10,000/-.
c) Sold goods costing Rs. 4,000/-, for cash Rs. 5,000/-.
Answer:

Assets = Liabilities + Capital
1,11,000 = 10,000 + 1,01,000

Question 17.
Name the source documents for recording transactions in the following special journals.
a) Purchase Book.
b) Purchases Return Book.
c) Sales Return Book
Answer:
a) Purchase Book – Invoice
b) Purchase Return Book – Debit Note
c) Sales Return Book – Credit Note

Question 18.
Explain the various objectives of preparing a Trial Balance.
Answer:
A Trial Balance is prepared with the following objectives:

1. To ascertain the arithmetical accuracy of ledger accounts.
2. To help in ascertaining errors.
3. To provide a basis for preparing financial statements.

Question 19.
The Trial Balance of Kavitha Traders as on 31/03/ 2018, shows Debtors of Rs. 81,000/- and Bad debts of Rs. 3,000/-. At the time of preparing the Final Accounts they decided to write off further bad debts of Rs. 1,000/- and to create a provision for doubtful debts at 6% of the debtors.
Pass the necessary journal entries for adjusting these items in the books of Kavitha Traders.
Answer:

Answer any three questions from 20 to 23. Each carries four scores. (3 × 4 = 12)

Question 20.
Explain the implications of the following accounting concept.
a) Business entity concept.
b) Dual aspect concept.
c) Matching concept.
d) Full disclosure concept.
Answer:
a) Business entity concept: This concept assumes that the entity of business is different from its owners. The business is treated as a unit or entity separate from the person who control it.
b) Dual aspect concept: According to this concept, each and every business transaction has two aspects – a giving aspect and a receiving aspect. In other words, at least two accounts will be involved in recording a transaction.
c) Matching concept: This concept states that expenses incurred in an accounting period should be matched with revenues during that period.
d) Full disclosure concept: This concept states that all information significant to the users of financial statements should be disclosed.

Question 21.
Write any four examples of transactions to be recorded in the ‘Journal Proper’.
Answer:

1. Purchase of furniture on credit.
2. Sale of machinery on credit.
3. Goods taken by owner for personal use.
4. Goods lost by fire/theft.
5. Goods distributed as free sample.

Question 22.
Pass rectification entries for the following errors located in the books of a sole trader.
a) Sale of old furniture for Rs. 3,500/- recorded in the sales book.
b) Wages paid Rs. 2,000/- for the erection of a new machinery debited to the wages account.
c) Credit purchase of goods from Kumar Traders for Rs. 5,000/- was posted to the credit of Kamal Traders account.
d) Goods costing Rs. 3,200/- taken over by the proprietor for personal use was omitted to be recorded in the journal.
Answer:

Question 23.
Explain the two methods of arranging various items (Marshalling) in a Balance Sheet by giving suitable example.
Answer:
There are two methods of arranging various items in a balance sheet. They are:
a) Order of Liquidity:
Under this method, assets are presented in the order of their liquidity. The most urgent liability is shown first and the least urgent to pay is shown last.
In the order of liquidity
Assets

1. Cash in hand
2. Cash at bank
3. Sundry debtors
4. Stock
5. Furniture
6. Building
7. Goodwill

Liabilities

1. Bills payable
2. Sundry creditors
3. Bank overdraft
4. Loans
5. Capital

b) Order of permanence
Under this method, permanent assets and liabilities are shown first followed by current assets and current liabilities.
In the order of permanence
Assets

1. Goodwill
2. Building
3. Furniture
4. Stock
5. Sundry debtors
6. Cash at bank
7. Cash in hand

Liabilities

1. Capital
2. Loans
3. Bank overdraft
4. Sundry creditors
5. Bills payable

Answer any five questions from 24 to 29. Each carries five scores. (5 × 5 = 25)

Question 24.
Prepare Rajan’s account in the books of Gopal, by posting the following transactions and brought down its balance to the next month.

Answer:

Question 25.
Prepare a double column cash book from the following transactions for the month of January 2018.

Answer:

Question 26.
Prepare a Bank Reconciliation Statement as on 31/ 03/2018, from the given details:
a) Balance as per cash book Rs. 18,000/-.
b) Cheque issued but not presented for payment Rs. 6,000/-.
c) Cheque paid into bank, but not collected Rs. 9,000/-.
d) Interest on deposit credited in passbook only Rs. 200/-.
e) Insurance premium paid by bank not recorded in cash book Rs. 1,000/-.
Answer:
Bank Reconciliation Statement as on 31/03/2018

Question 27.
Arun Traders purchased a machinery by paying Rs. 30,000/- on 01/04/2015. They decided to write off depreciation @ 10% per annum under the fixed installment method. On 01/04/2016 machinery having original cost of Rs. 10,000/- was sold out at its book value. On 01/04/2017 another machinery was purchased for Rs. 15,000/-. Prepare the Machinery account for the first three years.
Answer:

Question 28.
Anu sold goods worth Rs. 60,000/- to Beena on March 1, 2018. For ensuring the payment, Anu draws a two months bill on the same day and Beena duly accepted and returned it. On March 4, 2018, this bill was discounted by Anu with her bank at a discount of 10% per annum. But on the due date the bill was dishonoured for nonpayment.
Pass the journal entries of the bill transactions in the books of Anu.
Answer:

Question 29.
Mrs. Sundas started a coolbar on April 1, 2017 with a capital investment of Rs. 1,00,000/-. She did not maintain her books of accounts as per the double entry system. During the year she introduced further capital of Rs. 30,000/- and withdraw Rs. 20,000 for personal purposes. On March 31, 2018 her financial position was as follows.

Calculate the profit or loss made by Mrs. Sundas during the first year of running the business, by using the Statement of Affairs Method.
Answer:

Answer any one question from 30 to 31. Each carries eight scores. (1 × 8 = 8)

Question 30.
Prepare the Trading and Profit and Loss account and Balance Sheet from the given Trial Balance and additional information.

Additional information:
a) Closing stock is valued at Rs. 18,000/-.
b) Wages outstanding Rs. 2,000/-.
c) Prepaid rent Rs. 350/-.
d) Write off Rs. 1,600/- as bad debts.
e) Create a provision for doubtful debts at 5% of the debtors.
Answer:

Question 31.
Explain any eight adjustments usually needed to ensure that the final accounts reveal the true profit or 14. loss and the true financial position of the business.
(Hint: The journal entries of various adjustments and their treatment in the final accounts should be included).
Answer:

Plus One Accountancy Previous Year Question Papers and Answers

Kerala Plus One Accountancy Previous Year Question Paper March 2019 with Answers

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

General Instructions to Candidates

• There is a ‘cool off time of 15 minutes in addition to the writing time of 2 hrs.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Answer all questions from 1 to 9. Each carries 1 score. (9 × 1 = 9)

Question 1.
The statement prepared to test the arithmetical accuracy of the books of accounts.
a) Balance Sheet
b) Trial Balance
c) Profit and Loss Account
d) Journal
Answer:
b) Trial Balance

Question 2.
Pick out the WRONG pair.
a) Land, Building
b) Cash, Stock
c) Debtors, Machinery
d) Copyright, Patent
Answer:
c) Debtors, Machinery

Question 3.
Which one of the following is NOT an element of Computer System?
a) IQ
b) Hardware
c) Software
d) People
Answer:
a) IQ

Question 4.
A bill is ‘noted’ when it is ………….
a) Discounted
b) Honoured
c) Dishonoured
d) Endorsed
Answer:
c) Dishonoured

Question 5.
Which one of the following is NOT a contra transaction in Two Column Cash Book?
a) Cash deposited into bank
b) Opened a new account with bank
c) Cash withdrawn from bank for domestic purpose
d) Cash withdrawn from bank for office use
Answer:
c) Cash withdrawn from bank for domestic purpose

Question 6.
Which term refers to writing off the cost of intangible assets like Patents, Copyright, Trade Marks etc.?
a) Amortization
b) Depletion
c) Obsolescence
d) None of these
Answer:
a) Amortization

Question 7.
Fill in the blank with suitable ‘data’ type on the basis of hint given.
a) EmpName : Text/Text (Varchar)
b) Emp Salary : ………….
Answer:
Emp. salary : Number/Currency

Question 8.
‘While preparing final accounts, outstanding wages is added to the wags account’. Identify the accounting principle related with this statement.
Answer:
Matching Principle

Question 9.
Calculate capital at the beginning.
Closing capital – Rs. 6,00,000/-
Profit for the year – Rs. 40,000/-
Drawings during the year – Rs. 58,000/-
Answer:

Answer any 5 questions from 10 to 15, each carries 2 scores. (5 × 2 = 10)

Question 10.
‘Even though computer posses many capabilities it suffers from number of limitations’. Mention any two limitations.
Answer:

• Computer lacks common sense
• Computer have no intelligence

Question 11.
‘Accounting is a post mortem survey’. Do you agree? Justify your answer.
Answer:
Yes. Accounting is a post-mortem survey because it records events as they have taken place.

Question 12.
Identify the following symbols used for constructing ER diagrams.

Answer:
b. Relationship
c. Attribute

Question 13.
Write the treatment of return inwards and return out-wards in the financial statements.
Answer:
Return inwards: It is also known as sales return. It is deducted from total sales in the credit side of trading account or debited to trading account.
Return outwards: It is also known as purchase return. It is deducted from total purchases in the debit side of trading account or credited to trading account.

Question 14.
List out any four advantages of computerized accounting system.
Answer:
Advantages of computerized accounting system are as follows:

• Highspeed
• Mass storage
• Real time user interface
• Automated document production
• Quality reports

Question 15.
Complete the following as hint given.

Answer:

Answer any two questions from 16 and 18. Each carries three scores. (2 × 3 = 6)

Question 16.
From the following particulars ascertain credit sales.

Answer:

Question 17.
Briefly explain any three components of DBMS.
Answer:
Components of DBMS
a) Tables
b) Queries
c) Forms
d) Reports
e) Pages
f) Macros

Question 18.
Calculate cost of goods sold for the year 2017 with the help of the following information.

Answer:
Cost of goods sold = (opening stock + net purchases + Direct expense) – Closing stock
= (80,000 + 3,75,000 + 12,000 + 7,000) – 1,30,000
= 4,74,000 – 1,30,000
Cost of goods sold = 3,44,000

Answer any three questions from 19 and 22, each carries four scores. (3 × 4 = 12)

Question 19.
Akhil has the following transactions.
a) Started business with cash Rs. 5,00,000.
b) Purchased goods on credit Rs. 40,000.
c) Sold goods costing Rs. 27,000 on credit for Rs. 30,000.
d) Bank loan received Rs. 80,000.
Prove the accounting equation. (A = L + C)
Answer:
Assets = Liabilities + Capital

Assets = Liabilities + Capital
6,23,000 = 1,20,000 + 5,03,000

Question 20.
Rectify the following errors.
a) Purchase day book overcast by Rs. 500.
b) Salary paid to Mr.Kumar is debited to his personal account Rs. 26,000.
c) Purchase of goods from Geetha Rs. 2,500 is omitted to record in day book.
d) Sale of office furniture for Rs. 4,000 posted to sales account.
Answer:

Question 21.
On 1^st May 2017, Krishna sold goods to Kripa for Rs. 20,000 and drew a bill of exchange for 3 months. Kripa accepted the bill. On 1^st June 2017 Krishna discounted the bill with her bank for Rs. 19,500. But on the date of maturity of the bill, Kripa was unable to make the payment. Pass the journal entries in the book of Krishna.
Answer:

Question 22.
A company purchased a machinery for Rs. 50,000 on 30th June 2015. Depreciation is charged @ 10% under straight line method and accounts closed on 31^st December every year.
a) Show the Machinery account upto 31^st December 2016.
b) Distinguish between straight line method and written down the value method. Write two points.
Answer:
a)

b. i) Under straight line methods, amount of depreciation is same every year but in the case of written down value method, amount goes on reducing year after year.
ii) Under straight line method, depreciation is calculated on original cost. But in written down value method, depreciation is calculated on reducing balance of asset.

Answer question numbers 23, 24 and 25. Each carries five scores. (3 × 5 = 15)

Question 23.
A portion of Trial Balance on 31^st December 2016 is as follows:
Sundry debtors – Rs. 62,000
Bad debts – Rs. 4,000
Additional information:
a) Further Bad debts to be written off Rs. 2,000.
b) Create provision for bad debts @5% on debtors.
Give journal entries and show how this items will appear in the final statements of the business.
Answer:

Question 24.
From the following particulars, prepare an analytical petty cash book for the month of November 2018, under the imprest system.

Answer:

Question 25.
On March 31^st 2017 the cash book of Mr. Sreejith, a trader showed a deposit balance of Rs. 48,400. His passbook as on that date was Rs. 51,880. On comparing the cashbook with the passbook, the following differences were observed.
a) Direct payment by three customer to the bank amounted Rs. 7,800
b) Insurance premium paid by bank Rs. 1,200.
c) Bank charges debited in passbook Rs. 120
d) Cheque issued to a customer but not presented for payment Rs. 6,000.
e) Four cheques paid into bank for collection but not collected amounted to Rs. 9,000.
Prepare a Bank Reconciliation statement as on 31^st March 2017.
Answer:

Answer any one question from 26 to 27, which carries eight scores. ( 1 × 8 = 8)

Question 26.
Consider the following transactions and record them into appropriate special journals for the month of January 2018.

Answer:

Question 27.
Following is the Trial Balance of Mr. Ajayan as on 31^st March 2018.

Additional Information:
a) Closing stock was valued at Rs. 40,000/-
b) Freight outstanding Rs. 2,000/-
C) Salaries prepaid Rs. 5,000/-
d) Depreciate furniture by 10%.
e) Internet accrued Rs. 200/-
Prepare Trading, Profit and Loss account for the year ending 31.03.2018 and Balance Sheet as on that date.
Answer:
Trading and Profit and Loss A/c for the year ended 31/3/18

Plus One Accountancy Previous Year Question Papers and Answers