NEB Class 11 account solved model questions and numericals

National Examination Board (NEB) Class 11 model question.

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Sub. Code : 124

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Model Question

Time : 3 hours Principal of Accounting-I Full Marks : 100

2077 (2020)

Candidates are required to give their answer in their own words as far as practicable. The figure in the margin indicate full marks.

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1. Write the meaning of book-keeping and mention two objectives of it. 3

2. Write about money measurement concept with suitable examples. 3

3. State the meaning of error of omission with suitable examples. 2

4. Write the meaning of capital expenditure with two suitable examples. 2

5. Write two differences between reserve and provision. 2

6. Mention any three objectives of Government Accounting. 3

7. Define petty cash fund and write the reason of creating petty cash fund.3

8. Following transactions are given:

a. Started business with cash Rs. 1,50,000.

b. Loan taken from Sahakari Sanstha Rs. 50,000.

c. Purchased goods on cash for Rs. 20,000.

d. Interest received Rs. 30,000.

Required: Accounting equation

Accounting Equation

S.N.	Transaction	Assets	=	Capital	+	Liability
a.	Started business with cash	150,000		150,000		0
b.	Beginning equation Loan taken from Sahakari Sanstha	150,000 50,000	=	150,000 0	+	0 50,000
c.	New equation Purchased goods on cash	200,000 20,000 (20,000)	=	150,000 0	+	50,000 0
d.	New equation Interest received	200,000 30,000	=	150,000 30,000	+	50,000 0
	Final equation	230,000	=	180,000	+	50,000

9. Following transactions are given:

a. Goods purchased from Ram on cash Rs. 30,000.

b. Goods purchased from Ram on credit Rs. 50,000.

c. Goods returned to Ram Rs. 10,000.

d. Ram's account is fully settled by paying cash Rs. 35,000.

Required:

Journal entries 2
Ram's account 2

Journal Entries

Date	Particulars	L.F.	Debit	Credit
a.	Purchases a/c Dr To Cash a/c		30,000	30,000
b.	Purchases a/c Dr To Ram's a/c		50,000	50,000
c.	Ram's a/c Dr To Purchase return a/c		10,000	10,000
d.	Ram's a/c Dr To Cash a/c To Discount received a/c		40,000	35,000 5,000

Ram's Account

Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
c.	To Purchases return a/c		10,000	b.	By Purchases a/c		50,000
d.	To Cash a/c		35,000	z.	By Balance c/d		30,000
d.	To Discount received a/c		35,000
			80,000				80,000

10. Following transactions relating to sales are given:

Chaitra 12: Sold good on credit to Mahila, Kathmandu:

100 Table fans @ Rs. 1000 each.

200 Ceiling fan @ Rs. 1,200 each.

Chaitra 22: Sold goods on credit to Sahila, Bhaktapur:

400 Table fans @ Rs. 1,400 each.

300 Ceiling Fans @ Rs. 1,700 each

(Trade discount @ 10 % on both items)

Required: Sales Book 2

Sales Book

Date	Particulars	Invoice No.	LF	Details Rs.	Total Rs
12/12	Mahila, Kathmandu: 100 Table fans @ Rs. 1,000 each 200 Ceiling fans @ Rs. 1,200 each			1,00,000 2,40,000	3,40,000
12/22	Sahila, Bhaktapur: 400 Table fans @ Rs. 1,400 each 300 Ceiling fans @ Rs. 1,700 each			5,60,000 5,10,000
	Less: Trade discount @ 10%			10,70,000 (1,07,000)	9,63,000
	Total				13,03,000

11. Following cash and banking transactions are given:

Poush 1: Cash in hand Rs. 70,000 and cash at bank Rs. 50,000.

Poush 5: Goods purchased and paid through cheque Rs. 20,000.

Poush 7: Received cash for the sale of goods Rs. 22,000.

Poush 8: Purchased furniture and paid through cheque Rs.10,000.

Poush 20: Cash deposited into bank Rs. 30,000.

Poush 25: Withdrawn cash Rs. 15,000 from bank for domestic purpose.

Required: Cash Book with Cash and Bank Column 6

Dr Double Column Cash Book Cr

Date	Particulars	LF	Cash	Bank	Date	Particulars	LF	Cash	Bank
9/1	To Balance b/d		70,000	50,000	9/5	By Purchase a/c			20,000
9/7	To Sales a/c		22,000	-	9/8	By Furniture a/c			10,000
9/20	To Cash a/c	c	-	30,000	9/20	By Bank a/c	c	30,000	-
					9/25	By Drawing a/c			15,000
					9/30	By Balance c/d		62,000	35,000

			92,000	80,000				92,000	80,000
10/1	To Balance b/d		62,000	35,000

12.Following information are given:

a. On Chaitra 31, Cash book showed a bank balance of Rs. 75,000.

b. Cheque issued but not presented for payment Rs. 10,000.

c. Cheque deposited but not credited by bank Rs. 15,000.

d. Interest on investment credited by bank Rs. 10,000.

e. Bank charge of Rs. 2,500 debited by bank only in pass book.

f. Insurance premium paid by bank not recorded in cash book Rs. 3,500.

Required: Bank Reconciliation Statement 6

Bank Reconciliation Statement

Particulars	Detail Rs	Total Rs
a.Bank balance as per cash book		75,000
Add:
b. Cheque issued but not presented for payment	10,000
e.Interest on investment credited by bank	10,000	20,000
		95,000
Less:
c.Cheque deposited but not credited by bank	(15,000)
e.Bank charge debited only in pass book	(2,500)
f.Insurance premium paid by bank not recorded in cash book	(3,500)	(21,000)
Bank balance as per pass book		74,000

13. Following errors were located before preparing trial balance:

a. Goods sold to Ram for Rs. 50,000 wrongly entered in purchase book.

b. Wages for installation of machine debited to wages account Rs. 5,000.

c. A sale of goods of Rs. 650 to Hari was posted as Rs 560 in his account.

Required: Entries for rectification 2+1+1=4

Entries for Rectification

Date	Particulars	LF	Debit Rs	Credit Rs
a.	Ram's a/c Dr To Sales a/c To Purchases a/c		1,00,000	50,000 50,000
b.	Machine a/c Dr To Wages a/c		5,000	5,000
c.	Debit Hari's account with Rs. 90 to rectify the error of under-posting.

14. An unadjusted trial balance of a firm as on 31^st Dec., 2018 is given:

Debit	Rs.	Credit	Rs.
Purchases	1,00,000	Sales	2,00,000
Furniture	1,40,000	Creditors	50,000
Debtors	20,000	Capital	1,00,000
Salaries	40,000
Rent	50,000
Total	3,50,000	Total	3,50,000

Additional information:

Write off bad debts Rs. 2,000.
Depreciate furniture by 10%.

Required: Adjusted trial balance 3

Adjusted Trial Balance

As on 31^st Dec., 2018

S.N.	Particulars	Trial Balance		Adjustments		Adjusted Trial Balance
S.N.	Particulars	Dr	Cr	Dr	Cr	Dr	Cr
1	Purchases	1,00,000				1,00,000
2	Furniture	1,40,000			14,000	1,26,000
3	Debtors	20,000			2,000	18,000
4	Salaries	40,000				40,000
5	Rent	50,000				50,000
6	Sales		2,00,000				2,00,000
7	Creditors		50,000				50,000
8	Capital		1,00,000				1,00,000
	Adjustments
a.	Bad debts			2,000		2,000
b.	Dep. On furniture			14,000		14,000
	Total	3,50,000	3,50,000	16,000	16,000	3,50,000	3,50,000

15.The following is the trial balance of a trader as on 31^st Chaitra, 2075:

Particulars	Debit Rs.	Particulars	Credit Rs.
Opening stock	1,30,000	Sales	4,00,000
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
Vehicles	50,000	Bills payable	44,000
Purchases	2,50,000	Provision for bad debt	2,500
Interest on loan	3,000
Wages	30,000
Insurance	5,000
Debtors	1,00,000
Cash balance	10,500
Bills receivable	40,000
Total	949,500	Total	949,500

Additional information:

Closing stock Rs. 80,000.
Outstanding Wages Rs. 3,000, Prepaid insurance Rs. 2,500.
Write off bad debts Rs. 5,000.
Create provision for bad debts at 5% on debtors.
Insurance prepaid Rs. 2,000.
Depreciation: Furniture 10%, Vehicles 20%.

Required: 4+6+5=15

a. Trading account b. Profit and loss account c.Balance sheet

Trading, Profit and Loss Account

For the year ended 31^st Chaitra, 2075

Particulars	Amount	Particulars	Amount
To Opening stock	1,30,000	By Sales	4,00,000
To Purchases	2,50,000	By Closing stock	80,000
To Wages 30,000 Add: Wage due 3,000	33,000
To Wages 30,000 Add: Wage due 3,000	33,000
To Gross profit c/d	67,000
	4,80,000		4,80,000
To Salaries 51,000 Add: Salary due 14,000	65,000	By Gross profit b/d	67,000
To Salaries 51,000 Add: Salary due 14,000	65,000	By Commission received	3,000
To Insurance 5,000 Less: Prepaid insurance (2,000)	3,000	By Provision for bad debts	2,500
To Insurance 5,000 Less: Prepaid insurance (2,000)	3,000	By Net loss c/d	24,000
To Interest on loan 3,000 Add: O/s interest on loan 3,000	6,000
	6,000
To Bad debts (new)	5,000
To Provision for bad debts (new)	4,500
To Dep. On furniture	3,000
To Dep. On Vehicle	10,000
	96,500		96,500

Balance Sheet

As on 31^st Chaitra, 2075

Capital and Liabilities	Amount	Assets	Amount
Capital 4,00,000 Less: Net loss 24,000 Less: Drawing 50,000	3,26,000	Building	2,00,000
	3,26,000	Furniture 30,000 Less: Depreciation ( 3,000)	27,000
12% Loan	50,000	Vehicle 50,000 Less: Depreciation (10,000)	40,000
		Vehicle 50,000 Less: Depreciation (10,000)	40,000
Creditors	50,000	Debtors 1,00,000 Less: Bad debts (5,000) Less: Provision for bad debts (4,500)	90,500
Bills payable	44,000
O/s Wages	3,000
O/s Salaries	14,000	Cash balance	10,500
O/s Interest on loan	3,000	Bills receivable	40,000
		Prepaid insurance	2,000
		Closing stock	80,000
	4,90,000		4,90,000

16. The following are the information relating to machinery:

Baisakh 1, 2072: Purchased a machine for Rs. 3,00,000.

Kartik 1, 2073: Purchased another machine for Rs. 4,00,000.

Srawan 1, 2074: The first machine was sold for Rs. 2,20,000.

Srawan 1, 2074: Another machine purchased for Rs. 5,00,000.

The company charged depreciation @ 10% p.a. on straight line method. Accounts are closed on 31^st Chaitra each year.

Required: Machinery account from 2072 to 2074. 2+2+4=8

Dr Machinery Account Cr

Date	Particulars	Amount	Date	Particulars	Amount
2072-1-1	To Bank A/c	300,000	2072-12-31 2072-12-31	By Depreciation A/c By Balance c/d	30,000 270,000
		300,000			300,000
2073-1-1 2073-7-1	To Balance b/d To Bank A/c	270,000 400,000	2073-12-31	By Depreciation A/c [30,000+20,000] By Balance c/d	50,000 620,000
		670,000			670,000
2074-1-1 2074-4-1	To Balance b/d To Bank A/c	620,000 500,000	2074-4-1 2074-4-1 2074-4-1 2074-12-31 2074-12-31	By Depreciation A/c By Bank A/c By P/L A/c [Loss] By Depreciation A/c [40,000+37,500] By Balance c/d	7,500 220,000 12,500 77,500 802,500
		11,20,000			11,20,000
2075-1-1	To Balance c/d	802,500

17. Following information are given:

Particulars	Debit Rs.	Credit Rs.
Sundry debtors	73,000
Provision for bad debts		5,000

Additional information:

a. Bad debts written off Rs. 3,000.

b. Create a new provision for bad debts @ 5% on sundry debtors.

Required: Provision for bad debts account. 2

Dr Provision for bad debts account Cr

Particulars

Amount

Particulars

Amount

To Bad debts [New]

To Balance c/d [5% of 70,000]

3,000

3,500

By Balance b/d

By Profit and loss [Transfer]

5,000

1,500

6,500

18. Balance Sheet and Receipt and Payment Account of a Club are given below:

Balance Sheet

As on 31^st December, 2016

Liabilities	Rs.	Assets	Rs.
Capital fund	14,000	Furniture	5,000
Loan	4,000	Equipments	7,000
Outstanding salary	1,500	Outstanding subscription	3,000
		Cash in hand	4,500
Total	19,500	Total	19,500

Receipt and Payment Account

For the year ended 31^st December, 2017

Receipts	Rs.	Payments	Rs.
To Balance b/d	4,500	By Salary
To Subscription		For 2016	1,500
For 2016	3,000	For 2017	4,500
For 2017	8,000	By Tournament expense	2,000
For 2018	2,000	By Sundry expenses	3,000
To Donation	4,000	By Furniture	9,000
To Tournament receipt	4,000	By Balance c/d	5,500

Total	25,500	Total	25,500

Additional Information:

Depreciate furniture by 10% p.a.
50% Donation is to be capitalized.
Subscription due for 2017 is Rs. 600.

Required: 5+5=10

a. Income and Expenditure Account

b. Balance Sheet

Dr Income and Expenditure Account Cr

For the year ended 31^st December, 2017

Expenditure	Amount	Income	Amount
To Salary	4,500	By Subscription 8,000
To Tournament expenses	2,000	Add: Sub. due 600	8,600
To Sundry expenses	3,000	By Donation [50%x4,000]	2,000
To Depreciation on furniture	1,400	By Tournament receipt	4,000
To Surplus	3,700
	14,600		14,600

Balance Sheet of a Club

As on 31^st December, 2017

Liabilities	Amount	Assets	Amount
Capital fund 14,000		Equipments	7,000
Add: Surplus 3,700		Furniture[5000+9000]=14,000
Add: Donation capitalized 2,000	19,700	Less: Depreciation (1,400)	12,600
Loan	4,000	Cash balance [Closing]	5,500
Advance subscription	2,000	Outstanding subscription [Income]	600
Total	25,700	Total	25,700

19. Binod started a business with Rs. 50,000 and machinery Rs. 20,000 on

Baisakh 1, 2075. His position at the end of the year was as under:

Furniture	Rs. 10,000	Debtors	Rs. 20,000
Creditors	Rs. 10,000	Stock	Rs. 40,000
Bank balance	Rs. 15,000	Bills payable	Rs. 1,000

His drawing during the year were Rs. 12,000 and also introduced additional capital of Rs. 10,000. Write off bad debts Rs. 1,000. Depreciate machinery by 10%.

Required: 2+2=4

Closing Statement of Affairs
Statement of Profit and Loss

Closing Statement of Affairs

As on

Liability	Amount	Assets	Amount
Creditors	10,000	Bank balance	15,000
Bills payable	1,000	Debtors 20,000
Closing capital [bf]	51,000	Less: Bad debts (1,000)	19,000
		Machinery 20,000
		Less: Depreciation (2,000)	18,000
	62,000		62,000

Statement of Profit or Loss

Particulars	Amount
Closing capital	51,000
Add: Drawing during the year	12,000
Total	63,000
Less: Additional capital	(10,000)
Adjusted capital	53,000
Less: Opening capital	(70,000)
Loss for the year	(17,000)

Note: Provide marks for: Closing capital=Rs. 51,000 OR Closing capital=Rs. 54,000

20. Following transactions of a government office are given:

Bhadra 4: Received bank order of Rs. 2,00,000 and budget release order

of Rs. 2,25,000 for the expenditure of last month.

Bhadra 6: Issued a cheque of Rs. 15,000 for the purchase of furniture.

Bhadra 26: Issued a cheque of Rs. 56,000 for the distribution of salary

for the month after deducting provident fund Rs. 10,000 and

income tax Rs. 2,000.

Required: Journal Voucher 2+1+2=5

[a] Government of Nepal

Ministry/Department/Office

Journal Voucher Date: Bhadra 4

Code

Particulars

B.H.N0.

Debit Rs.

Credit Rs.

Dr Nepal Rastra Bank

Cr Revolving fund

Cr Budget release

(Being bank order and budget release order received)

2,00,000

25,000

2,25,000

Receipt No. Cheque No.

Amount received: Two lakhs only. Amount of cheque:

Submitted by: Approved by:

Post: Post:

Date: Date:

[b] Government of Nepal

Ministry/Department/Office

Journal Voucher Date: Bhadra 6

Code

Particulars

B.H.N0.

Debit Rs.

Credit Rs.

Dr B.E.Furniture and Fixture

Cr Nepal Rastra Bank

(Being cheque issued for the purchase of furniture)

29311

15,000

Receipt No. Cheque No.

Amount received: Amount of cheque: Fifteen thousands only

Submitted by: Approved by:

Post: Post:

Date: Date:

[c] Government of Nepal

Ministry/Department/Office

Journal Voucher Date: Bhadra 26

Code

Particulars

B.H.No.

Debit Rs.

Credit Rs.

Dr B.E.Salary

Cr Provident fund

Cr Income tax

Cr Nepal Rastra Bank

(Being cheque issued for the distribution of salary)

21111

68,000

10,000

2,000

56,000

68,000

Receipt No. Cheque No.

Amount received: Amount of cheque: Fifty six thousands only

Submitted by: Approved by:

Post: Post:

Date: Date:

21. Following transactions are given:

Magh 1: Opening bank balance Rs. 1,50,000.

Magh 7: Received bank order and budget release order of Rs. 3,00,000.

Magh 10: Purchased machinery for Rs. 30,000 and paid through cheque.

Magh 15:Travelling expense advance given to Mohan Sharma Rs.

20,000.

Magh 25: The total salary of the month Rs. 55,000 is distributed after

deducting provident fund Rs. 10,000 and income tax Rs. 5,000.

Required: Bank Cash Book. 5

22. Following information are provided:

Budget Head	Annual Budget	Expenditure upto Poush	Expenditure of Magh
Salary	2,50,000	63,000	21,000
Local allowance	1,25,000	33,000	11,000
Communication charge	2,00,000	1,00,000	25,000
Office expenses	1,30,000	33,000	11,000
Furniture and fixtures	1,40,000	1,20,000	10,000
Vehicles	3,00,000	1,25,000	75,000

Additional information:

a. Revolving fund received Rs. 8,50,000.

b. Petty cash balance Rs. 2,500.

c. Security deposit received Rs. 5,000.

d. Unclear furniture advance Rs. 2,000.

Required: Statement of Expenditure for the month of Magh. 6

Exp. Of Magh	Release upto Poush	B.H.No.	Budget Head	Annual Budget	Exp. Upto Magh	Balance
21,000	63,000	21111	Salary	2,50,000	84,000	166,000
11,000	33,000	21112	Local allowance	1,25,000	44,000	81,000
25,000	1,00,000	22112	Communication charge	2,00,000	125,000	75,000
11,000	33,000	22311	Office expenses	1,30,000	44,000	86,000
10,000	1,20,000	29311	Furniture and fixtures	1,40,000	130,000	10,000
75,000	1,25,000	29411	Vehicles	3,00,000	2,00,000	1,00,000
1,53,000	4,74,000	Total		11,45,000	6,27,000	5,18,000
	3,76,000	Revolving fund balance
1,53,000	8,50,000	Total Revolving fund		11,45,000	6,27,000	5,18,000

Total budget release upto Magh: Rs. 8,50,000 Bank balance: Rs. 2,25,000

Total budget expenditure upto Magh: Rs. 6,27,000 Cash balance: Rs. 2,500

Unclear furniture advance: Rs. 2,000 Total Rs. 2,28,000

Net expenditure: Rs. 2,23,000 Security deposit received (-): Rs. 5,000

Working Note:

TBR-TBE=BB+CB-Security deposit received

850,000-627,000=BB+2,500-5,000

BB=225,000

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NEB Class 11 account solved model questions and numericals

National Examination Board (NEB) Class 11 model question.