Part A – Financial Accounting I [50 Marks]
Q. 1. Which basis of accounting gives a correct picture of operating results and financial position of a firm ? [HOTS] 
Q.2. Give the classification of Reserve. 
Q.3. Jay and Vaishali are partners in a firm. The firm receives an order for goods. Vaishali wants to include it in the sales figure but Jay opposes it. Settle the issue. [HOTS] 
Q. 4. Mr. Rohan started a business of chit funds. He collected of 10 Crores from small investors with an assured 5 times return in next 5 years. He suddenly closed the company and ran away. Which value is not followed by Mr. Rohan and what legal remedy is available to the small investors? [VB]
Q.5. Define Accounting Standards. Explain their need. [HOTS] 
Q.6. The following are some of the transactions of Mis Kishore & Sons as per Waste Book.Make out their Sales Book: 
Sold to Mis Gupta & Verma on credit:
30 shirts @ ₹ 150
20 trousers @ ₹ 300
Less: Trade Discount@ 10%.
Sold old furniture to MIs Sehgal & Co. on credit ₹ 800
Sold 50 shirts on credit to MIs Jain & Sons @ ₹ 150 each.
Sold on credit to MIs Mathur & Jain
10 shirts @ ₹ 175
10 overcoats @ ₹ 500
Less: Trade Discount @ 10%.
Q. 7. Write difference between Trial Balance and Balance Sheet. 
Q. 8. Explain in brief any four limitations of accounting. 
Q. 9. Prepare Bank Reconciliation Statement on the basis of following information: 
Q. 10. Explain the advantages of accounting. 
Q.ll. Journalise the following in the books of Neelam: [HOTS]
(i) Neelam acceptance to Dinesh for ₹ 2;000 renewed at 3 months together with interest @ 18%per annum.
(ii) Ranjan requests Neelam to renew her acceptance. for ₹ 1,500 for two months. Neelam agrees to it provided interest .is paid to her @ 20% per annum in cash.
(iii) Neelam’s acceptance in favour of Guddi for ₹ 15,000 dishonoured and noting charges paid by Guddi ₹ 20, which was paid by cheque later on.
Q. 12. Ram purchased on 1.4.2008,a Machine for ₹ 75,000. The Machinery is to be depreciated by 10% p.a. on the Fixed Installment Method and accounting year being April-March.
On 1.10.2010,some part of the Machine costing₹ 10,000 was sold for₹ 7,000. On the same date, a new Machine costing ₹ 10,000 was installed.
Prepare Machinery Account and Provision for Depreciation Account for three years. 
Q. 13. (a) Give necessary Journal entries to rectify the following errors: (HOTS] 
(i) Rent received ₹ 1,000 was wrongly entered as commission received ₹ 1,000 in the Cash Book.
(ii) ₹ 2,500 paid for rent, has been wrongly debited to Interest Account.
(iii) An amount of ₹ 8,000 received on account of interest, was credited wrongly to
(iv) ₹ 35,000 paid for the purchase of a motor cycle to proprietor has been charged to
Miscellaneous Expenses Account.
(v) Contractor’s Bill of₹ 27,500 for expansion of building was wrongly debited to Repairs
(vi) ₹ 5,000 paid in installment to an injured worker for compensation. The worker’s compensation claim was debited to Wages Account.
(b) Goods worth ₹ 10,000 returned by Keshwari were taken into stock but the transaction was not recorded by Mr. Shaad (accountant) in the books of account as he was doing some of his personal work and left the company after office hours not caring for the transaction to be entered in the books of accounts.
(i) Identify the value missing in the above case.
(ii) Rectify the error. [VB]
Q. Write the following transactions in Cash Book with Discount and Bank Columns: 
Jan. 1 Opening balance of cash ₹ 2,00,000.
Jan. 3 He pays ₹ 1,80,000 into Bank’s Current A/c.
Jan. 4 He receives cheque of ₹.6,000 from Kirti & Co., on account.
Jan. 7 He pays into Bank Kirti & Co’s cheque for ₹ 6,000.
Jan. 10 He pays Ratan & Co., by cheque ₹ 3,300 and is allowed discount ₹ 200.
Jan. 12 Tripathi & Co., pay into his Bank Alc₹ 4,750.
Jan. 15 He receives cheque for ₹ 4,500 from Warsi and allows him discount ₹ 350.
Jan. 20 He receives cash ₹ 750 and cheque ₹ 1,000 for Cash Sales.
Jan. 25 He pays into Bank ₹ 10,000.
Jan. 27 He pays John & Co. ₹ 3,750 in cash and is allowed discount ₹ 350.
Jan. 30 He pays sundry expenses in cash ₹ 500.
Jan. 31 He pays office rent by cheque ₹ 2,000.
Jan. 31 He pays staff salaries by cheque ₹ 3,000.
Jan. 31 He draws a cheque for personal use ₹ 2,500.
Jan. 31 He pays Jagpal by cheque for commission ₹ 3,000.