Elements of Account Essay Example

Elements of Account Essay Sample Question Paper Code-254 ELEMENTS OF BOOK KEEPING ACCOUNTANCY Class-IX Summative Assessment-II March 2011 Examination Design of Question paper Time Allowed : 3 Hrs 01. Weightage to form of Questions Type of questions 1. 2. 3. 4. MCQs Short Answer Questions Long Answer Questions(i) Long Answer Questions(ii) Total No. of Questions 16 8 4 4 32 Marks for each Question 1 3 4 6 Total Marks 16 24 16 24 80 Maximum Marks : 80 Duration of the examination will be 3 3 ? hours. Evaluation will be done from following topics Unit 4 Unit 5 Unit 6 Unit 7 Journal Ledger Recording and posting of cash transactions Trial balance 20 20 20 20 80 marks 1 Sample Question Paper ELEMENTS OF BOOK KEEPING ACCOUNTANCY (Code-254) Class-IX Summative Assessment-II Time Allowed : 3 Hrs GENERAL INSTRUCTIONS : 1. 2. 3. 4. 1. The Question Paper has 32 questions in all. All questions are compulsory. Maximum Marks : 80 Questions from serial No. 1 to 16 are multiple choice questions. These are to be answered by writing the correct option in your answer sheet. Attempt all parts of a question together. Business transactions are recorded:(a) (c) in chronological order at the end of the month (b) (d) weekly None of the above 1 2. Trial Balance is prepared generally for a particular period which is ? (a) (c) week Quarter (b) (d) month Year 1 3. Goods returned of Rs. 500/- by a customer, Anil will be entered in(a) (c) Purchases Book Sales Book (b) (d) Purchases Returns book Sales Returns Book 1 4. Purpose of Sales Book is(a) (b) (c) (d) To record all sales made by the firm To record payment due to creditors To record all credit sales made by the firm to record credit sales of goods made by the firm 1 5. Salaries paid to staff will be debited to (a) (c) Salary A/c Staff A/c (b) (d) Cash A/c Expense A/c 1 1 (b) (d) Secondary entry None of the above 1 Transactions None of the above 6. A ledger is called a book of :(a) (c) Primary entry Final entry 7. A Ledger Account is prepared from:(a) (c) Events Journal (b) (d) 8. Cash Book is used to record. (a) (c) All Cash receipts only. All Cash c redits sales (b) (d) All Cash payments only All receipts payments of Cash 1 (b) (d) Original entry None of the above 1 9. Journal is called a book of (a) (c) Secondary entry Final entry 10. We will write a custom essay sample on Elements of Account specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Elements of Account specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Elements of Account specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Transactions entered on the debit side of Cash-Book are posted to (a) (b) (c) (d) Debit side of the Cash Account Debit side of the respective ledger account Credit side of the respective ledger account Credit side of the Cash Account 11. If the total of the debit side of Cash Book exceeds the total on the credit side it indicates: 1 (a) (c) Favourabel cash balance (b) Excess of expenditure (d) Unfavourable cash balance Bank Overdraft 1 12. Petty Cash Book is generally prepared by: (a) (c) Every business unit Large business units (b) (d) Small business units None of the above 3 13. The object of preparing trial balance is: (a) (b) (c) (d) To ascertain the profits for the period To ascertain the accuracy of accounts To ascertain the financial position of the concern To ascertain cash balance 1 14. Purchase of furniture on credit is recorded in (a) (b) (c) (d) Purchase book Journal Cash-Book Sales-Book 1 15. Cash discount received on payment to creditor is recorded on the (a) (b) (c) (d) Credit side of the cash column of the Cash-Book On the debit side of the cash column of the Cash-Book On the credit side of the discount column of the Cash-Book On the debit side of the discount column of the Cash-Book 16. Ledger contains: (a) (b) (c) (d) All accounts Only personal accounts Only nominal accounts Only real accounts 1 17. Prepare the Purchases Book from the following details:(a) (b) (c) 3 Purchase of goods costing Rs. 5000 from M/s. Ramesh vide invoice no. 120 dated 15. 09. 2010. Purchase of Fixed Assets costing Rs. 8000 from M/s. Renu vide invoice no. 016 dated 20 . 09. 2010. Paid wages Rs. 600 in cash vide receipt no. 16 dated 25. 09. 2010. 4 18. Classify the following under the three types of accounts ( Real, Nominal and Personal): (a) (c) (e) Drawings Capital Bank (b) (d) (f) Cash Machinery Depreciation 3 3 3 3 3 3 9. Give any three uses of a ledger. 20. Differentiate between Journal and Ledger on the basis of any three points. 21. Cash Book is both a Journal a ledger. Explain. 22. Give three examples of entries which appear in a Journal Proper. 23 . Write any three limitations of preparing a Trial Balance. 24. State whether the following account will have a debit or a credit balance ? (a) (c) (e) Sales Capital Rent Paid (b) (d) (f) Purchase Return Salary Purchases 3 25. Enter the following transactions in appropriate Subsidiary Books of Ramesh for the month of January 2010: 4 Date Jan. Jan. 5. Jan. 15 Jan. 25 Transactions Sold goods to Ram Purchased goods from Hari Ram Returned goods to Hari Ram Ram Returned Goods Rs. 5,000 2,000 500 800 26. Rearrange the following steps in preparing ledger: 1. Enter the relevant amount in the amount column . 2. Record the page no. of the Journal . 3. Identify in the Ledger the account in which transactions are to be recorded. 4. Enter the date of the transaction in the date column. 4 5 27. Insert the following in Tabular Petty Cash Book. On 1st Feb. 2010 Rs. 40 were given to petty cash clerk. Feb. 2009 1. 2. 8. 12. 14. 15 Transactions Chowkidars Wages Pencils Railways freight on account of books Postage Stamps Telegrams Sundry Expenses Amount (Rs. ) 15. 00 5. 25 2. 31 1. 25 2. 44 0. 56 28. What is the main objective of preparing a Trial Balance? 29. Journalise the following transactions Date 2009 Jan. 1 Jan. 3 Jan . 7 Jan. 20 Jan. 25 Jan. 30 Started business with cash Sold Goods to Rohan Goods purchased from Sohan Paid Rent Commission Received Machinary purchased 50,000 40,000 20,000 500 200 10,000 Transactions Rs. 4 6 0. Pass the Journal Entries of M/s. Ram Traders. Post them to the Ledger from the following transactions: 6 Date 2010 April 1 April 3 April 5 April 15 Commenced Business with cash Purchased Furniture Goods purchased Cash Sales 1,50,000 25,000 30,000 40,000 Transactions Rs. 6 31. From the following information, draw up a Trial Balance in the books of Shri Subhash Chand as on 31st March,2009: 6 Transactions Capital Purchases Cash in Hand Cash at Bank Electricity exp. Stationery Office Equipment Sundry Debtors Machinery Salaries 32. Rs. ,50,000 40,000 7,000 8,500 4,800 500 2,400 8,000 1,60,000 11,400 Transactions Sales Sundry Creditor Rent Furniture Bank Loan Investment Commission paid Opening Stock Commission Received Postage Telegram Rs. 1,05,400 5,000 2,000 16,000 10,000 6,000 1,050 3,200 1,200 750 Prepare a Cash Book with discount column of Shri Shyam from the following transactions and balance it. 2009 March 1 March 3 March 5 March 10 March 12 March 15 March 18 March 25 Balance of cash in Hand Rs. 25,000 Rent paid Rs. 2,000 Purchased goods for cash Rs. 10,000 Stationery purchased Rs. 2,500 Sold Goods for Cash for Rs. ,000 Cash received from Ram Rs. 980 and discount allowed Rs. 20 Cash paid to Shyam Rs. 950 and discount Received Rs. 50 Wages Paid Rs. 2,000 7 Marking Scheme ELEMENTS OF BOOK KEEPING ACCOUNTANCY Class-IX Summative Assessment-II Time : 3 hours Q No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17. 18 Answer (a) (d) (d) (d) (a) (c) (c) (d) (b) (c) (a) (c) (b) (b) (c) (a) Maximum Marks : 80 Marks Purchase Book Balance Rs. 5,000 (a) (c) (e) Personal Account Personal Account Real Account (b) (d) (f) Real Account Real Account Nominal Account 8 19. (i) It provides complete information about all accounts in one book. ii) It facilitates the preparation of final accounts. (iii) It enables to ascertain the main items of revenues, expenses, assets and liabilities and their amounts. 20. Point of Distinction 1. 2. Nature Stage of Recording Journal It is a book of primary entry. Recording in the journal is the first stage. 3. Balancing Journal is not balanced Ledger It is a book of final entry Recording in the ledger is the second stage. All ledger accounts (except nominal accounts) are balanced in the ledger. 21. The Cash Book is a book of original entry since transactions are recorded for the first time from the source document. The Cash Book is a ledger in the sense that it is designed in the form of a Cash Account and records Cash receipts on the debit side and cash payments on the credit side, Thus, the Cash Book is both a journal and a ledger. 22. (i) Outstanding Expenses. (ii) Prepaid Expenses (iii) Entries for Dishonor of Bills. 23. Limitation of a Trial Balance- A Trial Balance is not a conclusive proof of the accuracy of the books of accounts since certain types of errors remain even when the Trial Balance tallies. The following errors do not affect the trial Balance at all. a) (c) 24 (a) Error of Principle, (B) Compensating error, Error of Recording in the books of original entry. Credit Debit Debit Error of complete omission (d) Credit (b) (d) (f) (c) Credit (e) Debit 25. Sales Book Rs. 5,000, Purchase Book Rs. 2,000, Purchase Return Book Rs. 500, Sales Return Book Rs. 800. 26. In order of 3-4-2-1. 27. Total Payment Rs. 26. 81 Balance c/d Rs. 13. 19 Grand Total Rs. 40. 00 Cash Required Rs. 26. 81 9 28. (i) To ascertain the arithmetical accuracy of Ledger accounts. (ii) To help in locating errors. (iii) To facilitate the preparation of financial statements. 9. Date 2009 Jan. 1 Particulars Cash A/c To Capital A/c (Being business started with cash) Jan. 3 Rohan To Sales A/c (Being the goods sold to Rohan) Jan. 7 Purchase A/c To Sohan (Being the goods purchased from Sohan) Jan. 20 Rent A/c To Cash A/c (Being the rent paid) Jan. 25 Cash A/c Dr. 200 200 Dr. 500 500 Dr. 20,000 20,000 Dr. 40,000 40,000 Dr. Debit (Rs. ) 50,000 50,000 Credit (Rs. ) To Commission Received A/c (Being the commission received) Jan. 30 Machinery A/c To Cash A/c Dr. 10,000 10,000 Being the Machinery purchased Total 1,20,700 1,20,700 10 30. (a) Date 2010 April 1. Particulars Cash A/C To Capital A/c (being started business with cash) Furniture A/c To Cash A/c (being the goods purchased for cash) Purchase A/c To Cash A/c (being the goods purchased for cash) Cash A/c To Sale A/c (bring the goods sold for cash LF Amounts Rs. 1,50,00 Amounts Rs. 1,50,000 April 3. 25,000 25,000 April 5. 30,000 30,000 April 15. 40,000 40,000 (b) Balance of following ledger Accounts Cash A/c Rs. 1, 35,000,Furniture A/c Rs. 25,000, Purchase A/c Rs. 30,000, Sales A/c Rs. 40,000. 31. Trial Balance Total Rs. 2, 71,600. 32. Cash Book Balance C/D Rs. 16530. 00, Discount Dr. Rs. 20. 00, Discount Cr. Rs. 50. 00. 11