Teachers recommend solving Kerala Syllabus Plus One Accountancy Previous Year Question Papers and Answers Pdf March 2023 to improve time management during exams.
Kerala Plus One Accountancy Previous Year Question Paper March 2023
Time: 2 Hours
Maximum Score: 60
I. Answer any 8 questions from 1 to 9. Each carries 1 Score. (8 × 1 = 8)
Question 1.
Amount invested by the owner in the business is called _____________
(a) drawings
(b) investment
(c) capital
(d) asset
Answer:
(c) capital
Question 2.
_____________ is a collection of all the accounts debited or credited in journals or day books.
(a) Journal
(b) Ledger
(c) Cashbook
(d) Sales book
Answer:
(b) Ledger
Question 3.
The process of entering transactions in a journal is called _____________
(a) Posting
(b) Balancing
(c) Journalising
(d) Trial balance
Answer:
(c) Journalising
Question 4.
Assets sold on credit are entered in _____________
(a) Cash book
(b) Purchase book
(c) Sales book
(d) Journal proper
Answer:
(d) Journal proper
Question 5.
A Bank reconciliation statement is prepared by
(a) Bank
(b) Creditors
(c) Account holder in a bank
(d) Debtors
Answer:
(c) Account holder in a bank
Question 6.
These types of errors affect the agreement of Trial Balance.
(a) Error of complete omission
(b) Error of principle
(c) Compensating errors
(d) Error of partial omission
Answer:
(d) Error of Partial Omission
Question 7.
_____________ is the term used to show the decrease in the value of natural resources like mines, quarries, etc.
(a) Depreciation
(b) Amortisation
(c) Depletion
(d) Error of Partial Omission
Answer:
(c) Depletion
Question 8.
If closing stock is given as an item in the trial balance, then it will be
(a) Credited to Profit/Loss A/c
(b) Credited to Trading A/c
(c) Shown on the assets side of the balance sheet
(d) Non of these
Answer:
(c) Shown on the assets side of the Balance sheet
Question 9.
Prepaid insurance is a/an _____________
(a) Asset
(b) Liability
(c) Expense
(d) Revenue
Answer:
(a) Asset
Answer all questions from 10 to 14. Each carries 2 scores. (5 × 2 = 10)
Question 10.
Complete as per the hint given.
Current Asset: Cash in hand
Fixed Asset: ?
IntangibleAsset: ?
Long-term liabilities: ?
Current liabilities: ?
Answer:
Fixed Asset – Furniture, Building, Machinery
Intangible Asset – Goodwill, Patent, Copyright
Long-term Liabilities – Bank Loans, Debentures
Current Liabilities – Sundry Creditors, Bills Payable
Question 11.
Complete the Journal.
Answer:
(a) Cash A/c Dr
To Capital A/c
(b) Rent A/c Dr
(c) To Cash A/c
(d) Sold goods for cash
Question 12.
Explain any two reasons for the disagreement between the Cashbook balance and the Passbook balance.
Answer:
The reasons for the disagreement between the Cashbook balance and passbook balance are as follows:
- A cheque was issued but not presented for payment.
- The cheque was deposited into the bank but not collected and credited.
- Amount directly deposited into the bank account.
- Interest dividend etc. collected and credited by the bank.
Question 13.
State any two differences between reserves and provisions.
Answer:
| Provisions | Reserves |
| It is charged against profit. | It is an appropriation of profit. |
| Created for meeting known liabilities or losses. | Created for meeting unknown liability. |
| Deducted from the items on the Asset side. | Shown on the Liabilities side after Capital A/c. |
| It is compulsory. | It is not compulsory. |
Question 14.
Capital balance ₹ 50,000 as per trial balance, and you must provide 10% interest on capital.
(a) Show it will appear in P/L Account.
(b) Show the treatment in the Balance Sheet.
Answer:
Interest on capital = 50,000 × 10% = 5000
Interest on capital Rs.5,000 should be shown on the debit side of the P&L Account and it should be added to capital in the Liability side of the Balance sheet.
Answer all questions from 15 to 18. Each carries 2 scores. (4 × 3 = 12)
Question 15.
State any three objectives of 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 16.
Write any 3 advantages of Goods and Service Tax.
Answer:
Advantages of GST:
- Reduce the tax burden by eliminating tax-on-tax.
- Tax administration became simple.
- Helps to reduce tax evasion.
- The tax structure became lean and simple.
- Increase the revenues of central and state governments by reducing administrative costs.
Question 17.
Enter the following transactions in the Purchase journal of July 2022.
2022 July 01 – Purchased from Surya Traders as per invoice no. 1201
20 Boys watches @180 each
30 Kids sunglasses @ 240 each
Less 10% trade discount
2022 July 12 – Purchased from Maya Agencies invoice No. 4843
15 Ladies Watches @ ₹ 200
10 Stopwatches @120
Less 5% trade discount
Answer:
Question 18.
Rectify the following errors:
(a) Wages paid ₹ 3,000 for the erection of machinery debited to wages account.
(b) Rent paid ₹ 2000 was fully omitted to record.
(c) Salary paid to Raju ₹ 4,000 debited to his account.
Answer:
Answer any 3 questions from 19 to 22. Each carries 2 scores. (3 × 4 = 12)
Question 19.
Match the following:
| A | B |
| (i) Creating provision for doubtful debt. | (a) Dual Aspect Concept |
| (ii) Transactions are to be supported by source documents. | (b) Conservatism |
| (iii) The outstanding salary was added to the salary in P/L A/c. | (c) Objectivity |
| (iv) Every transaction has a two-fold effect. | (d) Matching concepts |
Answer:
| A | B |
| (i) Creating provision for doubtful debt. | (a) Conservatism |
| (ii) Transactions are to be supported by source documents. | (b) Objectivity |
| (iii) Salary outstanding added to salary in P/L A/c | (c) Matching Concepts |
| (iv) Every transaction has a twofold effect. | (d) Dual Aspect Concept |
Question 20.
Prove the accounting equation:
(a) Started business with cash ₹ 20,000
(b) Purchased goods for cash ₹ 8,000
(c) Sold goods to Bhanu on credit costing ₹ 5,000 for ₹ 8,000
Answer:
Note: Profit on Sale = 8000 – 5000 = 3000
Question 21.
Seena Traders purchased Machinery for ₹ 1,00,000 and spent ₹ 10,000 for the erection. The Machinery is expected a life of 10 years and after it will get ₹ 10,000 as scrap value. Depreciation is charged under the straight-line method for the first 2 years.
Answer:
Question 22.
Write the adjustment entries.
(a) Outstanding salary ₹ 2,000
(b) prepaid insurance ₹ 600
(c) Depreciation of machinery ₹ 4000
(d) Interest on capital ₹ 2,800
Answer:
Answer any 2 questions from 23 to 25. Each carries 5 scores. (2 × 5 = 10)
Question 23.
Prepare a bank reconciliation statement as of 31 March 2022.
(i) Balance as per Cash Book ₹ 9,600.
(ii) Cheque issued but not presented for payment ₹ 5,400.
(iii) Cheque deposited into the bank but not collected ₹ 6,000.
(iv) Bank charges debited by bank ₹ 450.
(v) Direct payment by a customer ₹ 1,000.
Answer:
Bank Reconciliation statement as of 31.03.2022
Question 24.
Prepare a Trial Balance from the following:
Machinery – ₹ 29,700
Debtors – ₹ 21,600
Creditors – ₹ 62,800
Wages – ₹ 15,000
Purchase – ₹ 59,900
Cash – ₹ 4,500
Opening stock – ₹ 6,000
Bank overdraft – ₹ 2,800
Sales – ₹ 73,500
Rent & Taxes – ₹ 2,400
Answer:
Trial Balance as on _____________
Question 25.
(a) What is a grouping of assets and liabilities?
(b) Arrange balance sheet items with imaginary details in the order of liquidity.
Answer:
Grouping and Marshalling of Assets and Liabilities:
(a) The term grouping means putting together items of similar nature under a common heading in the balance sheet.
‘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) Marshalling of Assets & Liability (In the order of liquidity)
Answer any 1 from 26 to 27. Carries 8 scores. (1 × 8 = 8)
Question 26.
Prepare Double Column Cash Book.
Answer:
Question 27.
Following is the trial balance of a trader for the year ending 31st Dec. 2022.
Additional Information:
(a) Closing stock is valued at 40,000.
(b) Wages outstanding 2,000.
(c) Rent prepaid 2,000.
(d) Provide 10% depreciation on furniture.
(e) Provision for doubtful debt at 5% of debtors.
Prepare Trading and Profit/Loss Account for the year ended 31st Dec. 2022 and a Balance Sheet as of that date.
Answer:
Trading Profit and Loss Account for the year ended 31-12-22
Balance Sheet as of 31.12.22
