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Kerala Plus One Accountancy Previous Year Question Paper June 2022
Time: 2 Hours
Maximum Score: 60
I. Answer any Eight questions from 1 to 9. Each carries 1 Score. (8 × 1 = 8)
Question 1.
Costs incurred by a business in the process of earning revenue are called ____________
(a) Capital Expenditure
(b) Expenses
(c) Capital
(d) Assets
Answer:
(b) Expenses
Question 2.
The process of recording transactions in the journal is called ____________
(a) Posting
(b) Balancing
(c) Journalising
(d) Totalling
Answer:
(c) Journalising
Question 3.
Purchased machinery from Rajesh on credit will be recorded in ____________
(a) Purchases Book
(b) Purchases Returns Book
(c) Journal Proper
(d) Cash Book
Answer:
(c) Journal Proper
Question 4.
The amount of depreciation charged under Diminishing balance method ____________
(a) increases every year
(b) remains constant every year
(c) equals to its scrap value
(d) decreases every year
Answer:
(d) decreases every year
Question 5.
The value of closing stock given in the Trial Balance will be shown on:
(a) the credit side of the Trading account
(b) the asset side of the Balance Sheet
(c) the credit side of the Profit & Loss account
(d) both (a) & (b)
Answer:
(b) the asset side of the Balance Sheet
Question 6.
Statement of affairs is prepared to find out ____________
(a) Capital
(b) Net profit
(c) Total assets
(d) Total liabilities
Answer:
(a) Capital
Question 7.
Which of the following is not an element of a computer system?
(a) Hardware
(b) Software
(c) Reports
(d) Connectivity
Answer:
(c) Reports
Question 8.
Which of the following is an error of commission?
(a) Wages paid for installation of machinery debited to wages account.
(b) Purchased goods for cash not recorded in cash book.
(c) Wrong balancing of Furniture account.
(d) Sale of fixed assets credited to sales account.
Answer:
(c) Wrong balancing of Furniture account.
Question 9.
Which of the following is not included in the Financial statements of a sole trading concern?
(a) Trading A/c
(b) Balance Sheet
(c) Cash Book
(d) Profit and Loss A/c
Answer:
(c) Cash Book
II. Answer any 4 questions from 10 to 15, each carries 2 scores. (4 × 2 = 8)
Question 10.
Fill in the blank as per the hint given:
Hint: Investment by the owner in the firm – Capital
(a) Assets held for a short period – ____________
(b) ____________ – Debtor
Answer:
(a) Assets held for a short period – Current Assets
(b) One who owes something to the business – Debtor
Question 11.
Expand the following:
(i) GAAP
(ii) IFRS
Answer:
(i) GAAP – Generally Accepted Accounting Principle
(ii) IFRS – International Financial Reporting Standard
Question 12.
Briefly explain the need for the preparation of a Bank Reconciliation statement.
Answer:
Need for preparation of Bank Reconciliation Statement (BRS):
The main reasons for preparing bank reconciliation statements are as follows.
- To identify the reasons for the difference between the bank balance as per cash book and bank balance as per bank statement.
- To identify the delay in the clearance of cheques.
- To ascertain the correct balance of the bank column of the cash book.
- To discourage the accountant of the business as well as the bank from misusing funds.
Question 13.
State any two features of a bill of exchange.
Answer:
The following are the features of a 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.
Question 14.
Sort the following into Input devices and Output devices:
Keyboard, Monitor, Printer, Optical Scanner
Answer:
Input Devices – Keyboard, Optical Scanner
Output Devices – Monitor, Printer
Question 15.
Compute the amount of Gross profit for the year 2020-21 from the following information:
Sales – ₹ 6,00,000
Purchases – ₹ 3,50,000
Wages – ₹ 30,000
Stock (Apr. 01, 2020) – ₹ 50,000
Stock (March 31, 2021) – ₹ 70,000
Answer:
Gross Profit = Net Sales – Cost of Goods Sold
Cost of Goods Sold = Opening Stock + Net Purchase + Direct Expenses – Closing Stock
Cost of Goods Sold = (50,000 + 3,50,000 + 30,000) – 70,000 = Rs. 3,60,000
Gross Profit = 6,00,000 – 3,60,000 = Rs. 2,40,000
III. Answer any 3 questions from 16 to 19. Each carries 3 scores. (3 × 3 = 9)
Question 16.
Show the effect of the following transaction on the accounting equation:
(a) Business started with cash ₹ 50,000
(b) Purchased goods for cash ₹ 20,000
(c) Purchased furniture ₹ 25,000
Answer:
Question 17.
Describe any three objectives of Accounting.
Answer:
Objectives of Accounting:
- Keeping records of business transactions: The main objective of accounting is to maintain systematic records of business transactions and events.
- Ascertainment of profit or loss: Another objective of accounting is to ascertain the net profit earned or loss suffered on account of business transactions during a particular year.
- Ascertainment of Financial Position: The businessman wants to know the financial position of the business. For this purpose, a statement called ‘Balance Sheet’ is prepared.
- Provide Information to Various Parties: Accounting records provide meaningful information to different groups of people having an interest in the business.
Question 18.
Find out the amount of credit sales from the following:
Debtors as on 1-4-2021 – ₹ 10,000
Debtors as on 31-3-2022 – ₹ 20,000
Cash Received from Debtors – ₹ 70,000
Return inwards – ₹ 5,000
Answer:
Total Debtors Account
Question 19.
Enter the following transactions in the sales day book of M/s Baby Stores:
2021
Jan 1 – Sold to Rahul Traders (invoice no. 1001)
50 Registers @ 50 each
100 Notebooks @ 30 each
Trade discount 10%.
Jan 5 – Sold to Global Stationeries (invoice no. 1002)
50 Colour Books @ 30 each
200 Files @ 10 each
Answer:
Sales Day Book
IV. Answer any 3 questions from 20 to 23. Each carries 4 scores. (3 × 4 = 12)
Question 20.
Match the following:
| A | B |
| (a) The existence of a business is separate from its owner | (1) Conservatism Concept |
| (b) Assets = Liabilities + Capital | (2) Cost Concept |
| (c) The recording price of assets is its acquisition price | (3) Business Entity concept |
| (d) Do not anticipate profit, but provide for all losses | (4) Dual Aspect Concept |
Answer:
| A | B |
| (a) The existence of a business is separate from its owner. | (1) Business Entity Concept |
| (b) Assets = Liabilities + Capital | (2) Dual Aspect Concept |
| (c) The recording price of assets is its acquisition price. | (3) Cost Concept |
| (d) Do not anticipate profit, but provide for all losses. | (4) Conservatism Concept |
Question 21.
Briefly explain the need for providing depreciation. (any four)
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 22.
Sudheesh sold goods for ₹ 10,000 to Prasad on Jan 01, 2022, and drew a bill of exchange payable after 2 months. Prasad accepted Sudheesh’s draft and handed over the same to Sudheesh. Sudheesh discounted the bill with his bank @12 % p.a. on Jan 04, 2022. On the due date, Prasad met his acceptance. Give journal entries in the book of Sudheesh.
Answer:
Journal (In the Book of Sudeesh)
Question 23.
Write the adjusting entry for the following:
(a) Rent prepaid ₹ 1,000.
(b) Commission received in advance ₹ 500.
Answer:
V. Answer any 3 questions from 24 to 28. Each carries 5 scores. (3 × 5 = 15)
Question 24.
Briefly explain any five advantages of a Computerised Accounting System.
Answer:
The following are the merits of a Computerised Accounting System:
- Speed
- Accuracy
- Reliability
- Up-to-date information
- Legibility
- Efficiency
- Quality Reports
Question 25.
Prepare a Trial Balance from the following ledger balances:
Answer:
Trial Balance as on ____________
Question 26.
Fill in the blanks in the following journal:
Answer:
Journal
Question 27.
(a) Describe the concept of “Marshalling of assets and liabilities”.
(b) Arrange the following assets in the order of liquidity in a Balance Sheet:
Furniture, Cash at the bank, Debtors, Cash in hand, Building, Closing stock.
Answer:
(a) ‘Marshalling’ denotes the order in which the assets and liabilities are shown in the Balance Sheet.
Marshaling can be done in any of the following two ways:
- In the order of liquidity
- In the order of permanence
(b) Balance Sheet (In the order of liquidity)
Question 28.
The cash book of Prasad Associates shows a bank balance of ₹ 10,000 as of 31/03/2022. On comparing the cash book with the passbook the following discrepancies were noted, Prepare Bank Reconciliation statement as of 31/03/2022.
(a) Cheque deposited in the bank but not credited ₹ 5,000
(b) Cheque issued but not yet present for payment ₹ 2,500
(c) Insurance premium paid by the bank ₹ 1,500
(d) Direct deposit by a customer to the bank ₹ 5,000
Answer:
Bank Reconciliation Statement as of 31.03.2022
VI. Answer any 1 question from 29 to 30. Carries 8 scores. (1 × 8 = 8)
Question 29.
Prepare double column cash book from the following transactions for December 2021:
Answer:
Double Column Cashbook
Question 30.
Prepare a Trading and Profit and Loss account and Balance Sheet of M/s Arjun Associates for the year ending March 31, 2022, on the basis of the following balances taken from his Trial Balance and adjustments given:
Adjustments:
1. Depreciate Furniture @ 10% p.a.
2. Wages outstanding ₹ 1,000
3. Insurance prepaid ₹ 1,000
4. Closing stock ₹ 12,000
Answer:
Trading and Profit and Loss Account for the Year ended 31-03-2022
Balance Sheet as of 31.03.2022
