Kerala Plus One Accountancy Board Model Paper 2021 with Answers

Teachers recommend solving Kerala Syllabus Plus One Accountancy Previous Year Question Papers and Answers Pdf Board Model Paper 2021 to improve time management during exams.

Kerala Plus One Accountancy Board Model Paper 2021 with Answers

Time: 2 Hours
Maximum Score: 60

I. Answer all questions from 1 to 7. Each carries 1 Score. (7 × 1 = 7)

Question 1.
Purchased goods for cash is recorded in _________________
(a) Purchases book
(b) Purchases returns book
(c) Cash book
(d) Sales book
Answer:
(c) Cash book

Question 2.
The statement prepared to ascertain the arithmetical accuracy of ledger accounts is _________________
(a) Balance Sheet
(b) Trial Balance
(c) Accounting Equation
(d) Statement of Affairs
Answer:
(b) Trial Balance

Question 3.
Which among the following is not an advantage of a computerized accounting system?
(a) Quality reports
(b) High cost of training
(c) Highly reliable
(d) Accuracy
Answer:
(b) High cost of training

Question 4.
Find the odd one:
(a) Sundry debtors
(b) Bills receivables
(c) Bank overdraft
(d) Closing stock
Answer:
(c) Bank overdraft

Question 5.
The purpose of preparing a bank reconciliation statement is _________________
(a) to know the bank balance as per the cash book.
(b) to know the bank balance as per the book.
(c) to identify the causes of the difference between cash book and pass book balances.
(d) None of these
Answer:
(c) to identify the causes of the difference between cash book and pass book balances.

Question 6.
The amount of depreciation charged under the straight line method.
(a) increases every year
(b) same as every year
(c) equal to its scrap value
(d) decreases every year
Answer:
(b) same as every year

Question 7.
The person to whom the payment of a Bill of Exchange is made is known as _________________
(a) Drawer
(b) Drawee
(c) Payee
(d) Endorser
Answer:
(c) Payee

III. Answer any 4 questions from 8 to 15, each carries 2 scores. (4 × 2 = 8)

Question 8.
Goods are withdrawn by the proprietor for his personal use. Write the debit and credit aspects in this transaction.
Answer:
Debit Aspect – Drawings
Credit Aspect – Purchase

Question 9.
Briefly explain the imprest system with an example.
Answer:
The book maintained by the petty cashier to record small payments of a repetitive nature is made by him during a particular period called the Petty cash book. It is usually maintained under an imprest system. Under the mprest system, the petty cashier is given a definite sum of money, say Rs. 500, at the beginning of a certain period. This amount is called the ‘imprest amount’. The petty cashier goes on making all small payments out of this imprest amount and when he has spent a substantial portion of the preset amount, say Rs. 300, he gets reimbursement of the amount spent from the main cashier. Thus, he again has the full imprest amount at the beginning of the next period. The reimbursement may be made on a weekly, fortnightly, or monthly basis, depending on the frequency of small payments.

Question 10.
State the basic objectives of preparing financial statements.
Answer:
Objectives of preparing Financial Statements:

• To ascertain the financial position of a concern.
• To present a true and fair view of the financial performance of the business.
• These statements depict the effectiveness of a company’s management.
• To disclose information about the earning capacity of the business.

Question 11.
Describe the accounting treatment of closing stock given in the adjustment while preparing financial statements.
Answer:
When closing stock is given in adjustment, it will be shown on the credit side of the trading account and after that it will be shown on the asset side of the balance sheet.

Question 12.
State the meaning of prepaid expenses. Give one example.
Answer:
Expenses which have been paid in advance, whose benefit will be available in future, are called Prepaid expenses. On the balance sheet, prepaid expenses are first recorded as an asset. After the benefits of the assets are realized overtime, the amount is then recorded as an expense.
Example: Insurance premium for Rs. 4000 is paid upto 30th June 2020. The accounting year ends on 31st March 2020. This means that an insurance premium of Rs. 1000 (4000 × \(\frac{1}{3}\) = 1000) for three months (April to June) has been paid in advance.

Question 13.
Complete the series as per the hint:
(a) Investment by the owner in the firm: Capital
(b) Cost incurred to earn revenue: _________________
(c) Assets held for a long period: _________________
Answer:

(a) Investment by the owner in the firm	Capital
(b) Cost incurred to earn revenue	Expense
(c) Asset held for a long period	Non-current/fixed asset

Question 14.
State any two limitations of a computer system.
Answer:
Disadvantages of Computer System:

• Lack of common sense
• Lack of IQ
• Lack of decision-making skills
• Computer system lacks common sense

Question 15.
Choose the correct accounting concepts given in the brackets for the following statements.
(Business entity, Going concern, Accounting period)
(a) The interval of time at which the financial statements of an enterprise are prepared.
(b) The business firm would continue to carry out its operations indefinitely.
Answer:
(a) Accounting Period
(b) Going Concern

III. Answer any 2 questions from 16 to 20. Each carries 3 scores. (2 × 3 = 6)

Question 16.
State any three primary objectives of an Accounting.
Answer:
Objectives of Accounting:

• Keeping records of business transactions
• Ascertainment of profit or loss
• Ascertainment of Financial Position
• Provide Information to Various Parties

Question 17.
Show the effect of the Accounting equation on the following transactions:
(a) Started business with ₹ 1,00,000
(b) Purchased goods for cash ₹ 20,000
(c) Sold goods to Priya on credit ₹ 40,000
Answer:

Question 18.
Compute cost of goods sold from the following:
Opening Stock – ₹ 30,000
Purchases – ₹ 1,00,000
Carriage – ₹ 2,000
Closing Stock – ₹ 30,000
Answer:
Cost of Goods Sold = Opening Stock + Purchase + Direct Expenses – Closing Stock
= 30,000 + 1,00,000 + 2,000 – 30,000
= 1,32,000 – 30,000
= 1,02,000

Question 19.
State any three important needs for providing depreciation.
Answer:
The following are the needs for providing depreciation:

• To ascertain the true results of the business.
• To ascertain the true value of the asset.
• To avoid excess payment of income tax.
• To ascertain the accurate cost of production.
• To create funds for the replacement of assets.
• To fulfill legal requirements.

Question 20.
State any three features of a bill of exchange.
Answer:
The following are the features of the bill of exchange:

• A bill of exchange must be in writing.
• It is an order to make a payment.
• The order to make payment is unconditional.
• The maker of the bill of exchange must sign it.
• The payment to be made must be certain.
• The date on which payment is made must also be certain.

Answer any 2 questions from 21 to 25. Each carries 4 scores. (2 × 4 = 8)

Question 21.
Briefly explain the qualitative characteristics of Accounting information.
Answer:
Qualitative Characteristics of Accounting Information:

• Reliability: Accounting information must be reliable. Reliable information should be free from error and bias and verifiable.
• Relevance: The information should be relevant and it must be available in time.
• Understandability: Relevant Accounting information must be capable of being understood by all its users.
• Comparability: Accounting information should facilitate intra-firm and inter-firm comparisons.
• Timeliness: Information must be available timely. If not, it loses its ability to influence decisions.

Question 22.
Prepare petty cash book from the following transactions. The imprest amount is ₹ 300.

Answer:
Petty Cash Book

Question 23.
Write any four differences between Journal and Ledger.
Answer:
Difference between Journal and Ledger

Journal	Ledger
1. All transactions are first recorded in the journal.	1. All transactions recorded in the journal are Later transferred to the ledger.
2. In the journal transactions are recorded in Chronological order.	2. In the ledger transactions are recorded in Analytical order.
3. Final accounts cannot be prepared With the help of a journal.	3. Final accounts can be prepared with the help of a ledger.
4. The process of recording entries in the journal is Called journalizing.	4. The process of recording entries in the Ledger is called posting.
5. Balancing is noted in the journal.	5. All ledger accounts are Balanced.

Question 24.
Write the adjusting entry for the following:
(a) Wages outstanding ₹ 4,000
(b) Rent received in advance ₹ 2,000
Answer:

Question 25.
Find out the amount of credit sales from the following:
Debtors as on 1-4-20 – ₹ 30,000
Debtors as on 31-3-21 – ₹ 40,000
Cash received from debtors – ₹ 2,00,000
Discount allowed – ₹ 3,000
Answer:
Total Debtors A/c

V. Answer any 3 questions from 26 to 31. Each carries 5 scores. (3 × 5 = 15)

Question 26.
Record the following transactions in the double-column cash book for June 2021:

Answer:
Double Column Cash Book

Question 27.
Briefly explain any five causes of differences between cash book and pass book balances due to timing differences.
Answer:
Causes of difference between bank balance as cashbook and passbook.

• A cheque was issued but not presented for payment.
• The cheque was deposited into the bank but not yet collected and credited.
• Bank charges debited by the bank are recorded only in the passbook.
• Interest and dividends collected and credited by the bank recorded only in the passbook
• A customer directly deposited into a bank account is recorded only in the passbook.
• Payment made by the bank on behalf of the customer is recorded only in the passbook.

Question 28.
Prepare Trial Balance from the following ledger balances:
Cash ₹ 25,000
Sundry debtors ₹ 20,000
Furniture ₹ 15,000
Sundry creditors ₹ 8,000
Bills payable ₹ 7,000
Purchases ₹ 30,000
Sales ₹ 40,000
Salary ₹ 5,000
Interest (Cr) ₹ 10,000
Capital ₹ 30,000
Answer:
Trial Balance as on _________________

Question 29.
Arrange the following items under the heads of Direct expenses, Direct income, Indirect expenses, Indirect income, Assets, and Liabilities:
Purchases
Cash in hand
Insurance
Depreciation
Bills payable
Bank Overdraft
Wages
Machinery
Interest (Cr.)
Sales
Answer:

Direct Expenses	Direct Income	Indirect Expenses	Indirect Income	Assets	Liabilities
Purchase Wages	Sales	Insurance Depreciation	Interest (Cr.)	Cash in Hand Machinery	Bills Payable, Bank Overdraft

Question 30.
Match the following:

Part A	Part B
1. Prepaid insurance	(a) Trading Account
2. Depreciation	(b) Capital
3. Opening Stock	(c) Profit and Loss Account
4. Commission received in advance	(d) Asset
5. Drawings	(e) Liability

Answer:

Part A	Part B
1. Prepaid Insurance	a. Asset
2. Depreciation	b. Profit and Loss Account
3. Opening Stock	c. Trading Account
4. Commission Received in Advanced	d. Liability
5. Drawings	e. Capital

Question 31.
State any five differences between Manual Accounting and Computerized Accounting.
Answer:
The following table shows the difference between Manual Accounting and Computerised Accounting:

Manual Accounting	Computerized Accounting
1. Transactions are recorded manually.	1. Transactions are recorded using the computer.
2. Transactions are recorded in volumes of books.	2. Transactions are recorded in a well-designed database.
3. Retrieval of data is very difficult.	3. Retrieval of data is very easy.
4. It takes a lot of time.	4. It saves a lot of time.
5. Closing entries are necessary.	5. Closing entries are not necessary.
6. The possibility of errors is high.	6. The possibility of errors is less in computerized accounting.

VI. Answer any 2 questions from 32 to 35. Each I carries 8 scores. (2 × 8 = 16)

Question 32.
Record the following transactions in the appropriate special journals:

Answer:
Cash Book

Purchase Day Book

Sales Day Book

Question 33.
Explain the following Accounting concepts:
1. Duality
2. Matching
3. Business Entity
4. Money measurement
Answer:
1. Duality Concept:
The dual aspect is the foundation or basic principle of accounting. This concept states that every transaction has dual aspects – a giving aspect and a receiving aspect. The giving aspect of a transaction is called Credit and the receiving aspect of a transaction is called Debit. Based on the duality principle, an accounting equation is developed, ie Asset = Liabilities + Capital

2. Matching Concept:
According to this concept expense should be I matched to the revenue of the appropriate accounting period to determine correct profit/loss for the accounting period. As per this principal expense or revenue are recognized on the basis of period to which they relate and not when these are paid or received. It is because of this principle the adjustment is made for outstanding expense, accrued income, prepaid expenses, unearned income etc.

3. Business Entity Concept:
Business entity concept assumes that business has a distinct and separate entity from its owner. Owners are considered as creditors of the business to the extent of their capital. This principle states that the affairs of business will not be mixed up with the private affairs of the owner.

4. Money Measurement Concept:
According to this concept, only those transactions that can be measured in terms of money only are are recorded in the books of accounts. The qualitative aspects of the business like efficiency of management, favourable location etc. are important for the business, but they cannot be recorded in the books of accounts because they cannot be evaluated in terms of money.

Question 34.
Journalize the following transactions and prepare the ledger of the cash account:


Answer:
Journal

Question 35.
From the following Trial, balance prepares Trading and Profit and Loss Account and Balance Sheet as of 31-03-2021.

Adjustments:
1. Closing stock was valued at ₹ 12,000
2. Salary outstanding ₹ 1,000
3. Interest received in advance ₹ 500
Answer:
Trading and Profit and Loss Account for the Year ended 31-03-2021

Balance Sheet as of 31-03-21