CLASS: XI COM
ST. AUGUSTINE’S DAY SCHOOL
SUB: ACCOUNTS
SELECTION EXAM 2021-22
FULL MARKS: 40
TIME: 1 HOUR 30 MINS
Q1.a) Purchased goods from A on credit ₹100000. TD being 10% immediately sold the goods to B at a profit
of 33.33% on cost. TD being 10%. B paid 40% of the amount and availed 5% cash discount. (b) Advance
for motor ₹ 50000 by cheque to “Matrix Motors”. (2x2)
Q2. A accepted a bill for ₹40000 drawn on him by B on 1.5.2020 for 3 months. The bill was discounted for
₹39000. Just before due date A approached B agreeing to pay ₹10000 together with interest calculated on the
remaining amount of bill @12% p.a. for 3months. B agreed to the proposal. On due date the bill was
dishonoured with noting charges ₹500. A was declared insolvent and could pay only 40% of the amount due.
Prepare necessary Journal entries in the books of B and prepare B’s account in the books of A. (8)
Q3. On 01.07.20 a machine was purchase for ₹60000. 1/3rd of this machine was sold on 01.06.22 at a loss of
25% on sales. Another machine was purchased on 01.10.21 for ₹40000. 2/5th of this machine was sold on
31.12.22 at a profit of 25% on cost. Depreciation was charged @ 10% on written down value method. Show
all necessary Journal entries. (8)
Q4. A started business on 1st Aril 2020 with a capital of ₹100000. He immediately bought furniture for ₹20000.
On 30th September 2020 he borrowed from his wife ₹50000 @ 9% p.a. (interest not yet paid) and introduced
a further capital of his own amounting to ₹15000. A drew ₹3000 p., at the end of each month for household
expenses. On 31st March 2021 his financial position was as under:
Particulars
Cash in hand
Sundry Debtors
Stock
₹
28000
48000
68000
Particulars
Bills Receivable
Sundry Creditors
Owing for Rent
₹
16000
5000
1500
Calculate profit or loss of A for 2020-2021. (10)
Q5. Prepare a correct trial balance from the following trial balance given and prepare the final account after
taking into consideration the adjustments given below:
Heads of Accounts
Adjusted Purchase
Closing Stock
Debtors
Creditors
Fixed Assets
Opening Stock
Expenses
Sales
Capital
Dr.(₹)
150000
Cr.(₹)
40000
60000
30000
50000
60000
20000
200000
90000
350000
350000
Adjustments:
i.
ii.
iii.
iv.
The manager is entitled to a commission of 10% on Net Profit after charging such commission.
Bad Debt written off ₹20000.
Create PDD @ 5% on provision for discount @ 3% on Debtors.
Create provision for discount on creditors @ 3%. (10)