11th Accountancy Objective Questions

Sir I need the CBSE 11th Accountancy Objective Questions so please can any one provide me the questions?

[Arun Vats]

As you required the CBSE 11th Accountancy Objective Questions so here I am providing you the same.

1 Journalize the following transactions:

(a) Mr. A who owes Rs.3000 become insolvent. Only 45% of the amount is realized

(b) Withdrew goods for domestic use Rs.500

(c) Sold goods to Shyam of the list price Rs.1500 at a trade discount 10% and cash discount 2%. He issued cheque the same day after availing cash discount. (5)

2 Prepare the accounting equation with the help of following transactions:

(a) Mr. A started business with case Rs. 1,50,000 and Building Rs. 2,00,000

(b) .Purchased a car for Rs. 70,000. Rs. 10,000 paid in cash and rest of payment made through bank loan.

(c) Insurance paid Rs. 2000; out of which Rs. 500 belongs to next year.

(d) Goods worth Rs. 30,000 purchased out of which Rs. 14000 was on credit.

(e) Goods costing Rs. 5000 sold for Rs. 4900.

Net Interest income is

(i) Interest earned on advances
(ii) Interest earned on investments
(iii) Total interest earned on advances and investment
(iv) Difference between interest earned and interest paid


Interest rate risk is a type of

(i) Credit risk
(ii) Market risk
(iii) Operational risk
(iv) All the above


European opinion can be exercised on any day at the option of the buyer on or before the expiry of the option.

(i) True
(ii) False



What is the beta factor for corporate finance under Standardized approach ?

(i) 15%
(ii) 18%
(iii) 12%
(iv) None of the above


A bank suffers loss due to adverse market movement of a security. The security was however held beyond the defeasance period. What is the type of the risk that the bank has suffered ?

(i) Market Risk
(ii) Operational Risk
(iii) Market Liquidation Risk
(iv) Credit Risk

The June 1999 Basle Committee on Banking Supervision issued proposals for reform of its 1988 Capital Accord (the Basle II Proposals). These proposals contained MAINLY.

(I) Settlement risk management
(II) Capital requirements
(III) Supervisory review
(IV) The handling of hedge funds
(V) Contingency plans
(VI) Market discipline

(i) I, III and VI
(ii) II, IV and V
(iii) I, IV and V
(iv) II, III and VI



Which of the following is not a type of credit risk ?

(i) Default risk
(ii) Credit spread risk
(iii) Intrinsic risk
(iv) Basis risk

8% Government of India security is quoted at RS 120/- The current yield on the security, will be----

(i) 12%
(ii) 9.6%
(iii) 6.7%
(iv) 8%

Risk of a portfolio with over exposure in steel sector will be

(i) More than systematic risk
(ii) Equal to intrinsic risk
(iii) Less than intrinsic risk
(iv) None of these

A company declares RS 2/- dividend on the equity share of face value of RS 5/-. The share is quoted in the market at RS 80/- the dividend yield will be----

(i) 20%
(ii) 4%
(iii) 40%
(iv) 2.5%

How many accounts have suffered rating migration in the following table

Rating Migration of 100 A Rated Accounts
Migration between 31.03.06 and 31.03.07

Last Rating No. of Accounts Present Rating
A++ A+ A B+ B C Default
A 100 1 1 79 10 4 3 2

(i) 2
(ii) 19
(iii) 21
(iv) 25



The risk that arises due to worsening of credit quality is

(i) Intrinsic Risk
(ii) Credit spread Risk
(iii) Portfolio risk
(iv) Counterparty risk

A debenture of face value of As. 100 carries a coupon of 15%. If the current yield is 12.5%. What is the current market price ?

(i) Rs.100
(ii) Rs.120
(iii) Rs.150
(iv) Rs.125

In order to develop an capability to actively manage an credit portfolio one must have in place the following:

(a) Credit Rating Model (or models for different categories of loans and advances)
(b) Develop and maintain necessary data on defaults of borrowers rating category wise, i.e., ‘Rating Migration’.

(i) Both 1 and 2 are required
(ii) Only 1 is required
(iii) Only 2 is required
(iv) None of the above

An increase in cash reserve ratio will cause yield curve to

(i) Shift downward
(ii) Remain unchanged
(iii) Become steeper
(iv) Become flatter


The model that combines five financial ratios using reported accounting information and equity values to produce on objective measure of borrower’s financial health is

(i) Altman’s 2 score
(ii) ‘Credit Metrics’
(iii) Credit Risk +
(iv) None of the above


A bank holds a security that is rated A+. The rating of the security migrates to A. What is the risk that the bank has faced ?

(i) Market risk
(ii) Operational risk
(iii) Market liquidation risk
(iv) Credit risk



When interest rates go up, prices of fixed interest bonds –

(i) Go up
(ii) Go down
(iii) Remain unchanged

VaR is not enough to assess market risk of a portfolio. Stress testing is desirable because

(i) It helps in calibrating VaR module
(ii) It helps as an additional risk measure
(iii) It helps in assessing risk due to abnormal movement of market parameters
(iv) It is used as VaR measure is not accurate enough




STUDY THE FOLLOWING STATEMENTS AND ANSWER
(COVERS ALL MODULES)

(a) Bond with ‘BBB’ rating will carry lower interest rate than one with ‘AA’ rating

i. False
ii. True
iii. Difficult to say

(b) Fall in interest rate cause the rate causes the bond prices also to fall.

i. False
ii. True
iii. Difficult to say
(c) A normal yield curve is sloping upward.

i. False
ii. True
iii. Difficult to say

(d) Stamp duty on transfer of dematted shares is lower.

i. False
ii. True
iii. Difficult to say

(e) Large Government borrowing can cause yield curve to shift upward.

i. False
ii. True
iii. Difficult to say

(f) Growth Funds assure growth in return.

i. False
ii. True
iii. Difficult to say

(g) If short term interest rates remain higher than the long term interest rates, the yield curve will be inverted.

i. False
ii. True
iii. Difficult to say


(h) Credit rating agencies determine interest rates on debt securities.

i. False
ii. True
iii. Difficult to say

(i) The shares of software companies carry high P/E ratio.

i. False
ii. True
iii. Difficult to say

(j) Closed end mutual funds are trading at discount to NAV.

i. False
ii. True
iii. Difficult to say

(k) In a rising interest rate phase Zero coupon bond will be traded at a premium

i. False
ii. True
iii. Difficult to say

(l) A sharp decline in short term interest rates will cause yield curve to be steeper

i. False
ii. True
iii. Difficult to say

(m) A fall in interest rates reduces the demand for bonds in the secondary market

i. False
ii. True
iii. Difficult to say

(n) Increase in the cash reserve ratio can cause the yield curve going temporarily inverted.

i. False
ii. True
iii. Difficult to say


(o) Dematerialization of stocks has increased turnover on the stock market.

i. False
ii. True
iii. Difficult to say

(p) Tight money and credit policy will cause bond prices to fall.

i. False
ii. True
iii. Difficult to say

(q) Increasing Government borrowing will raise interest rates.

i. False
ii. True
iii. Difficult to say

(r) Bond carrying ‘AA’ rating will carry highest interest rate than one carrying ‘BBB’ rating.

i. False
ii. True
iii. Difficult to say

(s) Mutual fund redemption bring bearish influence on the stock market.

i. False
ii. True
iii. Difficult to say

(t) Decline in the interest rates on long dated Govt. bonds will cause yield curve to be steeper.

i. False
ii. True
iii. Difficult to say

(u) Demat shares carry lower stamp duty on transfer than physical shares.

i. False
ii. True
iii. Difficult to say

(v) Increase in interest rates will cause bond prices to fall.

i. False
ii. True
iii. Difficult to say

(w) Growth fund is a mutual fund that invests primarily in equity shares.

i. False
ii. True
iii. Difficult to say

(x) Stamp duty on transfer of demated shares is lowest.

i. False
ii. True
iii. Difficult to say

(y) Large Government borrowing in the market can make the yield curve shift upward.

i. False
ii. True
iii. Difficult to say

(z) Bond with ‘A’ rating will carry higher interest rate than one carrying ‘BBB’ rating.

i. False
ii. True
iii. Difficult to say





OBJECTIVE TYPE QUESTIONS
FOR PRACTICE (COVERS ALL MODULES)


When the interest rates fall, the market price of a fixed rate bond

(i) falls
(ii) rises
(iii) does not change

A transaction where financial securities are issued against the cash flow generated from a pool of assets is called

(i) Securitization
(ii) Credit Default Swaps
(iii) Credit Linked Notes
(iv) Total Return Swaps

Growth Fund is a mutual fund that

(i) assures growth in income
(ii) invests in fixed income securities
(iii) gives fixed return
(iv) invests primarily in equities

Operational Risk arises from

1) Inadequate or failed internal processes
2) People and systems
3) External Events
4) Defaults

Which of the following is true ?

(i) All of them
(ii) None of them
(iii) (a) , (b) and (c)
(iv) (a) , (b) and (e)

A decline in cash reserve ratio will cause the yield curve to

(i) shift upward
(ii) shift downward
(iii) become flatter
(iv) remain unchanged

The third consultative paper recommended for

(a) Cause based classification
(b) Effect based classification
(c) Event based classification

For operational risk. Which of the following is true

(i) (a)
(ii) None of them
(iii) (c)
(iv) (b)

12% Government of India security is quoted at Rs.120. If interest rates go down by 1%, the market price of the security will be.....

(i) Rs. 120
(ii) Rs.133.3
(iii) Rs. 109
(iv) Rs. 140

Benefits of integrated risk frame work are:

(a) To relate capital and reserves more effectively to their actual level of risk exposure.
(b) To evaluate pricing decisions and product profitability.
(c) In making risk transfer decisions.

Which of the following is true ?

(i) All of them
(ii) None of them
(iii) (a) and (b)
(iv) (b) and (c)



Rewards of proper management of operational risks are

(a) Lesser risk capital
(b) Cost reductions in operations
(c) Competitive edge

Which of the following is true ?

(i) All of them
(ii) None of them
(iii) (a) , (b) and (c)
(iv) (a) and (b)

A fall in long term interest rates on Government securities will make the yield curve become

(i) flatter
(ii) steeper
(iii) shift downward

A bank expects fall in price of a security if it sells it in the market. What is the risk that the bank is facing ?

(i) Market risk
(ii) Operational risk
(iii) Asset Liquidation risk
(iv) Market liquidity risk


(i) An 8-year 8% semi-annual bond has a BPV of Rs.125. The yield on the bond has

11% Government of India security is quoted at Rs. 110, the yield will be –

(i) 11%
(ii) 10%
(iii) 9%
(iv) None of these

1 day VaR of a portfolio is Rs.500,000 with 95% confidence level. In a period of six months (125 working days) how many times the loss on the portfolio may exceed Rs.500,000 ?

(i) 4 days
(ii) 5 days
(iii) 6 days
(iv) 7 days

A fall in interest rates will make prices of Government Securities -

(ii) Go down
(iii) Go up
(iv) Remain unchanged
(v) None of these

Systemic risk the risk of

(i) Failure of a bank, which is not adhering to regulations
(ii) Failure of two banks simultaneously due to bankruptcy of one bank
(iii) Where a group of banks fail due to contagion effect
(iv) Failure of entire banking system

If the yield on long dated Govt. securities falls, then the yield curve will became:-

(i) Steeper
(ii) Flatter
(iii) Shift downward


11% Govt. of India security is quoted at Rs.110. If the interest rates go down by 1% the market price of the security will be

(i) Rs.110
(ii) Rs.109
(iii) Rs.122.2
(iv) Rs.130

Balanced fund is a mutual fund that

(i) Assures income
(ii) Invests in debt and equity
(iii) Assure growth
(iv) Gives fixed returns

Back testing is done to

(i) Test a model
(ii) Compare model results and actual performance
(iii) Record performance
(iv) None of the above




Under Basel II, Capital requirement under the accord is

(i) The maximum Capital that is required to be maintained
(ii) The minimum Capital that is required to be maintained
(iii) The capital as specified by the regulatory authority is required to be maintained
(iv) None of the above



STUDY THE FOLLOWING STATEMENTS AND ANSWER
(COVERS ALL MODULES)

(aa) Fall in interest rates cause the prices of Govt. securities to go up.

i. False
ii. True
iii. Difficult to say

(bb) Steeper yield curve means long term interest rates are much lower than short term interest rates.

i. False
ii. True
iii. Difficult to say

(cc) Mutual fund mobilization has bearish influence on the stock market.

i. False
ii. True
iii. Difficult to say

(dd) Convertible debentures carry an element of equity shares.

i. False
ii. True
iii. Difficult to say

(ee) Credit Rating agencies fix interest rates on bonds or debentures issued by companies.

i. False
ii. True
iii. Difficult to say

(ff) Mutual Funds invest only in equity shares.

i. False
ii. True
iii. Difficult to say

(gg) Favorable monsoon brightens the prospects for stock market.

i. False
ii. True
iii. Difficult to say

(hh) Large Government borrowings cause debt securities prices to rise.

i. False
ii. True
iii. Difficult to say

(ii) Falling interest rates have benefited investors in debt securities mutual funds.

i. False
ii. True
iii. Difficult to say

(jj) Large government borrowing would cause interest rates to go down.

i. False
ii. True
iii. Difficult to say

(kk) Falling interest rates cause NAVs of debt mutual fund to go down.

i. False
ii. True
iii. Difficult to say

(ll) Bond with ‘BBB’ rating will carry lower interest rates than one with ‘A’ rating.

i. False
ii. True
iii. Difficult to say

(mm) Money market mutual funds do not invest in equity shares.

i. False
ii. True
iii. Difficult to say

(nn) SEBI gives credit rating to securities issued in the capital market.

i. False
ii. True
iii. Difficult to say


(oo) Mutual funds can offer guaranteed returns.

i. False
ii. True
iii. Difficult to say

(pp) Large government borrowings will cause interest rates to go up.

i. False
ii. True
iii. Difficult to say

(qq) A mutual fund scheme; with a entry load will have its sale price higher than its NAV.

i. False
ii. True
iii. Difficult to say

(rr) Security with A rating will carry higher interest rate than one with BB rating.

i. False
ii. True
iii. Difficult to say

OBJECTIVE TYPE QUESTIONS
FOR PRACTICE (COVERS ALL MODULES)

A fall in the interest rates causes Govt. Securities to

(i) Remain stable
(ii) Fall
(iii) Rise

Capital charge for credit risk requires input for PD, LGD, EAD and M. Under advanced IRB approach, who provide the input for LGD.

(i) Bank
(ii) Supervisor
(iii) Function provided by BCBS
(iv) None of the above

A debenture of Rs.100 carrying 15% coupon rate is quoted in the market at Rs.135/-. The current yield on this debenture will be

(i) 13.5%
(ii) 15%
(iii) 11.11%
(iv) 10%

Investment in Post Office time deposit is

(i) Zero risk investment
(ii) Low risk investment
(iii) Medium risk investment
(iv) High risk investment

If the short term interest rates are temporarily higher than the long term interest rates, the yield curve will be

(i) Sloping upward
(ii) Inverted
(iii) Zigzag
(iv) Horizontal

Premature payment of a term loan will result in interest rate risk of type

(i) Basis risk
(ii) Yield curve risk
(iii) Embedded option risk
(iv) Mismatch risk
A company with equity capital of Rs.50 crores (Face Value of Rs.10/- per share) makes gross profit of Rs.70 crores and net profit after tax of Rs.25 crores. If the market price of its equity share is Rs.50, the PE ratio will be

(i) 50
(ii) 5
(iii) 10
(iv) 20

Daily volatility of a stock is 1%. What is its 10 days volatility approximately ?

(i) 3%
(ii) 10%
(iii) 1%
(iv) 4%

If call money rates are temporarily higher than the long term interest rates, the yield curve will be

(i) Slopping upwards
(ii) Zigzag
(iii) Inverted
(iv) Horizontal

Capital charge component of pricing accounts for

1) Cost of capital
2) Internal generation of capital
3) Loss provision

Which of the following is true.?

(i) All the statements are correct
(ii) Statements 1 and 2 are correct
(iii) Statements 2 and 3 are correct
(iv) Statements 3 and 1 are correct

Equity oriented mutual funds

(i) Assure income
(ii) Assure growth
(iii) Invest in debentures
(iv) Invest in shares

A bank funds its assets from a pool of composite liabilities. Apart from credit and operational risks, it faces

(i) Basis risk
(ii) Mismatch risk
(iii) Market risk
(iv) Liquidity risk


A branch sanctions Rs.1 core loan to a borrower, which of the following risks the branch is taking

1) Liquidity risk
2) Interest rate risk
3) Market risk
4) Credit risk
5) Operational risk

(i) All of them
(ii) 1,2 and 3 only
(iii) 1,4 and 5 only
(iv) 1,2,4 and 5 only

A rise in Government securities prices will make yield curve –

(i) Slope upward
(ii) Shift downward
(iii) Remain stable
(iv) Shift upward




Risk mitigation measures result in

1) Reducing downside variability
2) Reducing upside potential which of the following is true

(i) Both the statements are correct
(ii) Both the statements are not correct
(iii) Statement 1 is correct
(iv) Statement 2 is correct
9% Government of India security is quoted at Rs.120. The current yield on the security will be –

(i) 12%
(ii) 9%
(iii) 7.5%
(iv) 13.3%

Financial Risk is defined as

(i) Uncertainties resu1ting in adverse variation of profitability or outright losses
(ii) Uncertainties that result in outright losses
(iii) Uncertainties in cash flow
(iv) Variations in net cash flows



Strategic Risk is a type of

(i) Interest Rate Risk
(ii) Operation Risk
(iii) Liquidity Risk
(iv) None of the above


Objective of liquidity management is to:

(i) Ensure profitability
(ii) Ensure liquidity
(iii) Either of two
(iv) Both

A mutual fund charges 1% entry load and no exit load. Its NAV is Rs.16; its sale and repurchase price will -----

(i) Rs.16 and Rs.15.80
(ii) Rs.16.16 and Rs.15.84
(iii) Rs.15.84 and Rs.16
(iv) Rs.16.16 and Rs.16

Banks need liquidity to:

(i) Meet deposit withdrawal
(ii) Fund loan demands
(iii) Both of them
(iv) None of them


OBJECTIVE TYPE QUESTIONS
FOR PRACTICE (COVERS ALL MODULES)

A fall in interest rate of long dated government securities with the short term interest rates remaining unchanged will make the yield curve.

(i) Steeper
(ii) Slop downward
(iii) Shift downward
(iv) Flatter

Adequacy of bank’s liquidity position depends upon:

(i) Sources of funds
(ii) Anticipated future funding needs
(iii) Present and future earnings capacity
(iv) All of the above

Current yield on a government security is 5%. If the market price of the bond is Rs.160, the coupon rate on the bond will ----

(i) 6%
(ii) 5%
(iii) 8%
(iv) 10%

Assets represent source of funds where as liabilities denote the use of funds in a balance sheet.

(i) True
(ii) False
(iii) Difficult to say


Deregulated environment has narrowed spreads of the banks.

(i) True
(ii) False
(iii) Difficult to say


Asset Liability management is only management of maturity mismatch and has no bearing on profit augmentation.

(i) True
(ii) False
(iii) Difficult to say

A rise in the short term interest rates with the long term interest rates remaining unchanged will make the yield curve -----.

(i) Steeper
(ii) Shift upward
(iii) Flatter
(iv) Slope upward

Net Interest Margin is also known as ‘Spread’.

(i) True
(ii) False
(iii) Difficult to say

A scheme of mutual fund has units with face value of Rs.10 and NAV of Rs.37. The Fund declares a dividend of 35% in the scheme. The ex-dividend NAV will be ------- per unit.

(i) Rs.37
(ii) Rs.2
(iii) Rs.33.50
(iv) Rs.35.5



7.5% coupon interest Government Security is quoted at Rs.120. Its current yield will be ----------.

(i) 8.55%
(ii) 6.25%
(iii) 7.75%
(iv) 7%

A company with equity capital of Rs.15 crores makes PBIDT of Rs.15 crores and PAT of Rs.10 crores. The face value of its share is Rs.5 and PE is 10, the market price will be ---------.

(i) Rs.50
(ii) Rs.66
(iii) Rs.33
(iv) Rs.100



CASE STUDIES
(COVERS ALL MODULES)

1. A company with equity of Rs.10 crore, earns PBIDT of Rs.30 crore. It incurs interest cost of Rs.35 crore depreciation of Rs.5 crore and pays Rs.10 crore as tax. It has reserve of Rs.30 crore (excluding current year’s profits) and long terms debt of Rs.35 crore. It pays 50% dividends and transfer remaining profit to reserves. Its share of Rs.10 face value is quoted at Rs.150/-

Find the following----

(i) Earning per share

PAT
= ----------------- x 10
Equity

30 – (5 + 5 + 10) 10
= -------------------- x 10 = ------- x 10 = Rs.10
10 10

(ii) Book value of share

= Equity + Reserves

= 10 + 30 + 5

= Rs.45

(iii) Return on Net worth

PAT
= ----------------
NW

10
= -------------- x 100
45

= 22.2%

(iv) Debt-equity ratio


= 35: 45 = 7:9


(v) P/E ratio

PE = MP / EPS = 150 / 10 = 15

(vi) Payout ratio

Dividend 5
= ----------- x 100 = -------- x 100 = 50%
PAT 10

2. A company with equity of Rs. 10 crore earns PBIDT of Rs. 40 crore. It incurs interest of Rs.5 crore, depreciation of Rs. 5 crore and pays tax of Rs. 10 crore. It has reserves of Rs. 30 crore (Excluding current years profits) and long term debt of Rs. 50 crore. It pays 100% dividend and transfers remaining profit to reserves. Its share of Rs. 10 face value is quoted at price of Rs. 200. Find the following :
(i) Book value of share after current year's profit transferred to reserves.

Book Value = Equity + Reserves + Current year’s (PAT – Div)

= 10 + 30 + (20 – 10) = Rs..50

(ii) Earning per share
40 – ( 5+5+10)
EPS = PAT / Equity = ------------------ x 10
10

20
--- x 10 = Rs.20
10
(iii) Return on net worth
PAT x 100 20
40% Return on net worth = ------------ = ------- x 100 = 40%
NW 50

(iv) Debt-equity ratio
50
1:1 Debt equity ratio = ------ = 1:1
50
(v) P/E ratio

10 M.P. = EPs x PE
200 = 20 x PE
PE = 10

(vi) Payout ratio

50%

Dividend 10
----------- = ---- = 50%
PAT 20

Please i need the answers for the objective questions
thank you

I am looking for the CBSE Sample question paper for Class 11 Accountancy . Will you please provide it ?

[Rajkumar Agarwal]

Here I am providing the list of few questions of CBSE Sample question paper for Class 11 Accountancy which you are looking for .

Part A – Financial Accounting I [50 Marks]

Q.1. What is meant by capital receipts? [1]

Q.2. Give two examples of liquid assets. [1]

Q.3. Cash book of XYZ Ltd. shows a payment called ‘Travel Expense’. However, this travel was a personal travel of the managing director with no relation to business. Do you think this is right? [VB] [1]

Q. 4. Prepare an accounting equation from the following: [3]

(i) Kunal started business with cash 2,50,000 ₹
(ii) He purchased furniture for cash 35,000 ₹
(iii) He paid commission 2,000 ₹
(iv) He purchased goods on credit 40,000 ₹
(v) He sold goods (costing ₹ 20,000) for cash 26,000 ₹

Q. 5. Explain principle of full disclosure. [HOTS][3]

Q. 6. Distinguish between Trial Balance and Balance-Sheet. [3]

Q. 7. Pass entries to rectify the following errors: [4]

(i) Purchased good from Ravi Rs. 500 passed through sales book.
(ii) Only Rs. 20 were recorded in Bill Receivable Book instead of Rs. 200.
(iii) A repair to Plant amounting to Rs. 1,000 has been changed to plant & Machine Alc.
(iv) A purchase of goods of Rs. 2,000 has been wrongly debited to Furniture Ale.

Q. 8. What is book keeping? Explain its objectives. [4]

Q. 9. Pass necessary Journal entries’ to rectify the following errors: [4]

(i) Goods returned to Mahima for ₹ 5,000, entered into Sales Returns Book.
(ii) Kajol returned goods worth ₹ 2,000, entered into Purchase Returns Book.
(iii) A credit purchase of₹ 3,000 from Ravina was recorded through Purchase Returns Book.
(iv) Goods worth ₹ 1,160 returned to Karishma, were recorded in Purchase Book as ₹ 1,106.

Q.10. Explain the qualitative characteristics of accounting information. [6]

Q.11. Prepare a Bank Reconciliation Statement from the following particulars :

(i) Credit Balance as per Pass Book on 30th June, 2011. 5,010 ₹
(ii) Cheques drawn but not presented for payment. 3,000 ₹
(iii) Cheques and drafts lodged into Bank but not collected until 2nd July, 2011. 2,900 ₹
(iv) A Bill Payable paid by Bank but not entered in Cash Book. 1,700 ₹
(v) The Bank Column of the receipt side of Cash Book under cast. 100
(vi) M/s Ram Lal and Sons, our agent, have remitted ₹ 3,500 for which there was no entry in Cash Book. [6]

Q. 12. On 15th April, 2012, B accepted three bills of exchange for ₹ 2,400: first bill for ₹ 700 for one month; second bill for ₹ 800 for two months; and third bill for ₹ 900 for three months duly written by A.

On 20th April, 2012, A endorsed the first bill to his creditor C to clear his account of₹ 710 and discounted the second bill on 22nd April with his bankers for ₹ 792. The third bill was retained by A till maturity.

The first bill was met on maturity but the second bill was dishonoured on due date. Bank paid ₹ 10 for noting charges. A charges B ₹ 15 for interest and drew on him a fourth bill for ₹ 825 for three months and B accepted it and returned. Bill No.3 and 4 were met on maturity.
Pass necessary Journal entries in the books of ‘A’. [HOTS][6]

Q. 13. On 1st January, 2009, Nagaji Bros., purchased six machineries for ₹ 15,000 each. Depreciation @10%p.a. on original cost of machines has been provided and accumulated in ‘Depreciation Provision Account’ on 31st December every year.

On 1st January, 2010 one machine was sold for ₹ 12,500 and on 1st January, 2011, a second machine was also sold for ₹ 13,000.An improved model with a cost oH 28,000 was purchased on 1st July, 2010 and the arrangement for providing depreciation was kept to be the same as for older machines. Show Machinery a/c, Provision for Depreciation a/c and Machinery Disposal a/c.

Or

Q. Record the following transactions in the Cash Book of Ghasidas : [8]

Part B – Financial Accounting D [40 Marks]

Q.14. Mr. Pandey owner of XYZ Ltd firm contributed a large amount of money to a Not-For-Profit Organization. Highlight the values. [VB] [1]

Q. 15. How will you define Payments of Honorarium ? [1]

Q. 16. State anyone feature of incomplete records. [1]

Q. 17. As per Receipts and Payments Account for the year ended on March 31,2012, the subscriptions received is ₹ 2,50,000. Additional information given is as follows: [3]

(i) Subscription Outstanding on 1.4.2011;₹ 50,000.
(ii) Subscription Outstanding on 31.3.2012; ₹ 35,000.
(iii) Subscription Received in Advance as on 1.4.2011; ₹ 25,000.
(iv) Subscription Received in Advance as on 31.3.2012; ₹ 30,000.
Ascertain the amount of income from subscriptions for the year 2011-12.

Q. 18. Mr. Kapil does not keep proper records of his business and he provided the following information.

You are required to prepare a statement showing the profit or loss for the year 2011-12.

Opening Capital (01-04-2011) , 50,000
Closing Capital (31-03-2012) , 1,00,000
Additional capital introduced (2011-12) , 20,000
Drawings made during the year (2011-12) , 40,000 [3]

Q. 19. Prepare specimen of a Balance Sheet in liquidity order with imaginary figures. [3]

Q. 20. What is the role of data as an element of computer? [4]

Q.21. From the information given below, draft receipts and Payments Account of Friends club, Delhi, for the year ended March 31, 2013:

Cash on April 1, 2012 ₹ 3,600, Subscriptions ₹ 37,600, donations ₹ 8000, Entrance Fees ₹ 4,300, Rent Realized from club Hall ₹ 5,250, Electric charges ₹ 3,440, Taxes ₹ 500, Salaries and wages ₹ 21,500, Honorarium to secretary ₹ 2,500, Interest Received on Investments ₹ 2,950, Printing and Stationery ₹ 350, Petty cash Payments ₹ 100, Insurance Premium Paid ₹ 310. [HOTS] [4]

Q.22. What are the advantages of ready made accounting software? [6]

Q. 23. From the following Receipts and Payments Account of a Club and from the additional information supplied, prepare Income and Expenditure Account for the year ended 31st December, 2012 : [6]

Additional Information:

(a) The club has, 50 members each paying annual subscription of 25. Subscriptions outstanding on 31st Dec. 2011 were ₹ 300.
(b) On 31st December 2012 salaries outstanding amounted to f 100. Salaries paid included ₹ 100 for the year 2011.
(c) On 1-1-2012,the club owned Land and Building valued at ₹ 10,000, Furniture ₹ 600 and Books ₹ 500.

Q.24. Mr. Radhe Mohan gives you the following Trial Balance as on 31st December, 2011:

Adjustments :

1. Closing Stock was taken on 31st December, 2011 and was then valued at ₹ 40,000.
2. Create provision for Doubtful Debts @ 5%.
3. Rent paid to Landlord was debited to his personal account.
Prepare Trading and Profit and Loss Account for the year ended 31st Dec., 2011 and a Balance Sheet as on that date. [8]

Or

From the following balances extracted from the books of Sharma, prepare the Trading and Profit & Loss Account for the year ended 31st March, 2012 and a Balance Sheet as on that date after taking into consideration the adjustments given below: [8]

Adjustments :
(a) Closing Stock was valued at ₹ 61,700.
(b) Depreciate Furniture@ 10% and Sales Van@20%.
(c) Outstanding Rent amounted to ₹ 900.
(d) Charge one-fourth of Salaries and Wages to Trading Account.
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