NEB Class 11 account model question set
Principles of Accounting-I
Grade-XI- Model Set 1
Candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.
Program: Management || Time: 3 hrs || F.M. 100
Attempt ALL questions
1) What is book-keeping? Mention any two objectives of it. [3]
2) Write about business entity concept with suitable examples. [3]
3) Write the meaning of error of omission with suitable examples. [2]
4) Differentiate between capital expenditure and revenue expenditure. [2]
5) State any two objectives of creating secret reserve. [2]
6) Mention any three objectives of government accounting. [3]
7) Write in brief about the different parts of budget sheet. [3]
8) Following transactions are given: [2]
a) Invested Rs. 50,000 in a business.
b) Bought goods of Rs. 15,000 in cash and Rs. 7,500 on credit.
c) Withdrew Rs. 5,000 for private use.
d) Salary outstanding Rs. 10,000.
Required: Accounting equation
9) Following transactions are given: [4]
a) Goods sold to Rabi on cash Rs. 70,000.
b) Goods sold to Rabi on credit Rs. 30,000.
c) Goods returned by Rabi Rs. 10,000.
d) Rabi settled his account paying cash Rs. 18,000.
Required:
- Journal entries
- Rabi's account
10) Following transactions relating to purchases are given: [2]
Magh 10: Purchased from Indreni Petrol Pump:
50 Litres Petrol @ Rs. 116 per litre.
100 Litres Diesel @ Rs. 85 per litre.
Magh 20: Purchased from Kalyani Petrol Pump:
100 Litres Petrol @ Rs. 118 per litre.
50 Litres Diesel @ Rs. 90 per litre
Magh 26: Purchased a Computer of Rs. 50,000 for office use.
Required: Purchase Book
11) Following cash and banking transactions are given: [6]
Magh 1: Cash balance Rs. 40,000 and bank overdraft Rs. 30,000.
Magh 5: Goods purchased and paid through cheque Rs. 20,000.
Magh 7: Goods sold for cash Rs. 30,000.
Magh 8: Purchased furniture and paid through cheque Rs.10,000.
Magh 20: Cash deposited into bank Rs. 40,000.
Magh 25: Withdrawn cash Rs. 10,000 from bank for office use.
Required: Cash Book with Cash and Bank Column
12) Following information are given: [6]
a) On Magh 31, Cash book showed a bank balance of Rs. 85,000.
b) Cheque issued but not presented for payment Rs. 15,000.
c) Cheque deposited but not credited by bank Rs. 10,000.
d) Interest on saving account credited by bank Rs. 5,000.
e) Bank charge debited only in pass book Rs. 500.
f) Insurance premium paid by bank not recorded in cash book Rs. 3,000.
Required: Bank Reconciliation Statement
13) Following errors were located before preparing trial balance: [6]
a) Salary paid to Usha Rs. 5,000 was debited to her personal account.
b) Depreciation of Rs. 5,000 on machinery wrongly entered as Rs. 500.
c) A credit purchase of Rs. 3,000 from Ram was recorded as sales to him.
Required: Entries for rectification
14) An unadjusted trial balance of a firm as on 31st Dec., 2018 is given: [3]
| Debit | Rs | Credit | Rs |
| Purchases | 50,000 | Sales | 1,00,000 |
| Furniture | 30,000 | Creditors | 25,000 |
| Debtors | 10,000 | Capital | 50,000 |
| Salaries | 20,000 | ||
| Rent | 25,000 | ||
| Machinery | 40,000 | ||
| Total .................. | 1,75,000 | Total ............. | 1,75,000 |
Additional information:
a) Write off bad debts Rs. 1,000.
b) Depreciate machinery by 10%.
Required: Adjusted trial balance
15) The following is the trial balance of a trader as on 31st Chaitra, 2075: [4+6+5=15]
| Particulars | Debit (Rs) | Particulars | Credit (Rs) |
| Opening stock | 1,40,000 | Sales | 3,00,000 |
| Salaries | 51,000 | Capital | 4,00,000 |
| Drawing | 50,000 | 12% Loan | 50,000 |
| Building | 2,00,000 | Commission | 3,000 |
| Furniture | 30,000 | Creditors | 50,000 |
| 10% Investment | 50,000 | Bills payable | 134,000 |
| Purchases | 2,50,000 | Provision for bad debt | 2,500 |
| Interest on loan | 3,000 | ||
| Wages | 20,000 | ||
| Insurance | 5,000 | ||
| Debtors | 1,00,000 | ||
| Cash balance | 10,500 | ||
| Bills receivable | 30,000 | ||
| 9,39,500 | 9,39,500 |
Additional information:
a) Closing stock Rs. 1,50,000.
b) Outstanding expenses: Wages Rs. 2,000, Salaries Rs. 9,000.
c) Write off bad debts Rs. 10,000.
d) Create provision for bad debts @ 5% on debtors.
e) Insurance prepaid Rs. 2,500.
f) Depreciate furniture by 10%.
Required:
- Trading account
- Balance sheet
- Profit and loss account
16) The following are the information relating to machinery: [8]
Baisakh 1, 2070: Machinery 'Ka' purchased for Rs. 2,00,000.
Magh 1, 2071: Machinery 'Kha' purchased for Rs. 1,00,000.
Asoj 30, 2072: Machinery 'Ka' sold for Rs. 1,60,000.
Asoj 30, 2072: Machinery 'Ga' purchased for Rs. 1,50,000.
The company charged depreciation @ 10% p.a. on fixed installment method. Accounts are closed on 31st Chaitra each year.
Required: Machinery account for 3 years.
17) Following information are provided: [2]
a. Opening provision for bad debts Rs. 15,000.
b. Bad debts written off during the year Rs. 5,000.
c. Sundry debtors at the end of the year Rs. 2,00,000.
d. Maintain provision for bad debts at 10% on sundry debtors.
Required: Provision for bad debts account.
18) The following information are related to a Youth Club. [10]
Balance Sheet
As on 31st Chaitra, 2072
| Liabilities | Amount Rs. | Assets | Amount Rs. |
| Capital fund | 80,000 | Fixed assets | 90,000 |
| Loan | 35,000 | Subscription due | 5,000 |
| Advance subscription | 12,500 | Cash balance | 44,500 |
| Outstanding salaries | 12,000 | ||
| Total | 139,500 | Total | 139,500 |
Receipt and Payment Account
For the year ended 31st Chaitra, 2073
| Receipts | Amount Rs | Payments | Amount Rs. |
| To Balance b/d | 44,500 | By Salaries | |
| To Subscription | For 2072 | 12,000 | |
| For 2072 | 5,000 | For 2073 | 8,000 |
| For 2073 | 52,000 | By Machinery | 25,000 |
| For 2074 | 15,000 | By Interest on loan | 500 |
| To Donation | 10,000 | By Rent | 9,500 |
| To Entrance fee | 5,000 | By Sundry expenses | 7,500 |
| Legacy | 18,000 | By Investment | 20,000 |
| By Balance c/d | 67,500 | ||
| Total | 1,50,000 | Total | 1,50,000 |
Additional information:
- Subscription due for current year Rs. 2,000.
- Depreciate fixed assets @ 10% p.a.
- 50% Entrance fee is to be capitalized.
Required:
a. Income and Expenditure Account
b. Balance Sheet
19) Karna started a business with Rs. 50,000 on 1st Baisakh 2076. His position at the end of the year was as under: [4]
| Cash in hand | Rs. 70,000 | Debtors | Rs. 40,000 |
| Closing inventory | Rs. 30,000 | Equipment | Rs. 15,000 |
| Furniture | Rs. 2,00,000 | Creditors | Rs. 30,000 |
| Outstanding expenses | Rs. 15,000 | Bills payable | Rs. 6,000 |
Additional information:
a. Drawing Rs. 2,000 per month.
b. Invested further capital Rs. 30,000.
c. Write off bad debts Rs. 5,000.
d. Depreciation on equipment @ 10% p.a.
Required:
- Closing Statement of Affairs
- Statement of Profit and Loss
20) Following transactions of a government office are given: [5]
Poush 2: Received bank order of Rs. 4,00,000 and budget release order of Rs. 4,50,000 for the expenditure of last month.
Poush 5: Issued a cheque of Rs. 20,000 to Mr Pokharel as advance to purchase a machine.
Poush 10: Mr. Pokharel submitted the machine purchase bill of Rs. 15,000 and bank voucher of Rs. 5,000 to clear his advance.
Required: Journal Voucher
21) Following transactions are given: [5]
Magh 3: Opening bank balance Rs. 1,50,000.
Magh 6: Received revolving fund of Rs. 3,00,000 through NRB transfer.
Magh 12: Purchased motorcycle for Rs. 75,000 and paid through cheque.
Magh 15: Furniture purchase advance of Madhu Thapa Rs. 50,000 Is cleared as per the bill submitted by him.
Magh 25: The total salary of the month Rs. 55,000 is distributed after deducting provident fund Rs. 10,000 and income tax Rs. 4,000.
Required: Bank Cash Book.
22) Following information are provided: [6]
| Budget Head | Annual Budget | Expenditure upto Falgun | Expenditure of Chaitra |
| Salary | 1,80,000 | 1,20,000 | 15,000 |
| Fuel | 60,000 | 40,000 | 5,000 |
| Office materials | 36,000 | 24,000 | 3,000 |
| Miscellaneous expenditure | 48,000 | 32,000 | 4,000 |
| Furniture | 24,000 | 16,000 | 2,000 |
| Machinery | 96,000 | 70,000 |
Additional information:
- Revolving fund received Rs. 3,50,000.
- Petty Cash balance Rs 1,000.
- Unclear furniture advance Rs 2,000.
Required: Statement of Expenditure for the month of chaitra.
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