The Abs Rowland SchoolSummative Assessment

Class: 11Accountancy

Time: 3 hoursMM: 90

General Instructions: All questions are compulsory.Give calculations or working notes where ever required.Q1. Answer the following questions:

a) How many days of grace are added to the period of a Bill of Exchange. Explain it. (1)b) Name two causes of Depreciation. (1)c) What is J.F and L.f (1)d) What is Purchases Book? (1)e) Distinguish between Journal and Ledger. (2)f) What is Suspense Account? When is it opened? (2)g) Define Provision. What is the importance of creating provision? (2)h) What is Fictitious Assets? Give any two examples of Fictitious Assets. (3)i) Distinguish between Cash book and Cash Accounts. (3)j) What is Crossing of cheque? Describe its types. (4)

Q2. Enter the following transactions in Purchases Return Book and post it onto Ledger. (7)2012, May 2 Returned goods to Subhash Chandra for Rs.6,800. May 10 Goods returned to Oswal Brothes being not according to sample worth Rs. 5,000 May 20 Allowance claimed from Sri Ram & Sons on account of mistake in the invoice, Rs.2,000Q3. Prepare a Trial Balance from the following balances of Shri Keshav Chand as at 31st March,2012: (5)

Name of the Accounts Rs. Name of the Accounts Rs.Opening StockPurchasesPurchases ReturnSalesSales ReturnRentSalariesAdvertisementsCommissioned ReceivedDiscount Cr.

20,00085,0005,0001,60,0006,2001,2005,7008801,440710

FurnitureMachineryDebtorsCreditorsBills ReceivableBills PayableCash in HandBank OverdraftInterest on OverdraftCapitalDrawings

6,00062,00036,00012,7504,6002,5005,22010,0001,80050,0007,800

Q4.Describe types of Errors? What are Errors of Principle? Give an example of Errors of Principle. (5)Q5. Enter the following transactions in a three column Cash Book: (7)2011, June 1 Commenced business with cash Rs.100,000 2 Opened a current account in Central Bank and deposited Rs.80,000 3 Further capital introduced Rs.50,000, out of which Rs. 40,000 deposited into bank.

June 3 Purchase goods from Gopal on credit Rs. 50,000 4 Paid to Gopal by cheque Rs.36,000. Discount received Rs. 500 8 Sold goods to Ram on creditRs.7,500 10 Received from Ram In full settlement of his Account Rs.7320 11 Commission paid to agent Rs.650 12 Cheque received on 10th June deposited into Bank. 15 Office Furniture purchased in cash from Modern Furniture House Rs.12,000 16 Paid for rent Rs.550 18 Drew cheque for personal use Rs.2,000 19 Sold goods to Ghanshyam on creditRs.20,000 24 Received from Ghanshyam, cheque for Rs.5,000(Immediately deposited into Bank) and cashRs.3,600. Discount allowed Rs.400 25 Withdrew from bank for office use Rs.10,000 25 Received a cheque from X and endorsed it to Yon 29 th June Rs6,000 28 Received a Money Order from Mohan Rs.300 30 Paid salary by cheque Rs8,000Q6. Birla Cotton Mills purchased a machinery on 1st August,2009 for Rs.90,000. On1st October,2010 it purchased another machine for Rs.40,000.On 30th June,2011 it sold off the first machine purchased in 2009 for Rs.58,000 and on the same date purchased a new machinery for Rs.100,000.Depreciation is provided at 20% p.a. on the original cost each year. Accounts are closed each year on 31 st March. Show the Machinery Account for three years. (5)Q7. Explain Bills of Exchange? Differentiate between Bill of Exchange & Promissory Note. (7)Q8.Calculate Gross Profit, Operating Profit and Net Profit from the following: (7)

Particulars Rs. Particulars Rs.Opening StockPurchasesSalesPurchases ReturnSales ReturnWagesAdvertisingSalariesRent & TaxesLighting

2,00,00019,00,00025,00,00070,0001,00,00080,00012,0001,78,00062,00015,000

Commission PaidCommission Received Travelling ExpensesOffice ExpensesInterest on long term loansDividend on InvestmentsPrinting &StationeryLoss on sale of MachineryCarriage outwardsLoss by theftGain on sale of Building

2,4006,0004,8003,50022,0002,8003,60035,0001,40025,10050,000

Q9.Give any five points of differences between Balance Sheet & Trial Balance. (5)Q10.Rectify the following errors: (5)

a) Credit Sales to Arun Rs.7,000 were recorded in purchases book.b) Credit purchases from Brij Rs.9000 were recorded in sales book.c) Goods returned to Charu Rs.4000 were recorded in the sales return book.d) Goods returned from Deepika Rs.1,000 were recorded in purchases return book.

e) Goods returned from Esha Rs. 2,000 were recorded in purchases book.Q11. Define Cash Book. Explain types of Cash Book. What is the advantage of maintaining a Cash Book? (7)Q12.a) What is Depreciation? Give the formula to calculate annual depreciation as per ‘Straight line method’. Give two points of distinction between Original Cost Method and Written Down Value Methodof providing Depreciation. (5)b) From the following information, prepare the Trading Account for the year ended 31 st March,2010: (5)Adjusted purchases Rs.24,00,000; Freight and carriage inwards Rs. 20,000; Freight and Carriage outwardsRs.15000; Wages Rs.1,68,000; Octroi Charges Rs.2000; Fuel and power Rs.30,000 Office Rent Rs.18,000 ; Trade expenses Rs.10,000; Sales Rs.30,00,000; Closing stock Rs.1,50,000.

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