AHSEC| CLASS 11| ACCOUNTANCY| SOLVED PAPER - 2023| H.S. 1ST YEAR
2023
ACCOUNTANCY
Full Marks: 100
Pass Marks: 30
Times: 3 hours
The figures in the margin indicate
full marks for the questions
1. Answer the following as directed: 1x6=6
(a)
Accounting starts where Book-keeping End.
(Fill in the blank with appropriate word/ words)
(b) Building
is Assets Account. (Fill in the blank
with appropriate word/ words)
(c) "All
events are transactions, but all transactions are not events."(State
whether the statement is True or False)
(d) Purchases
Book records all credit purchases.
(Fill in the blank with appropriate word/ words)
(e)
Depreciation is a loss in the value of assets. (State whether the statement is True or False)
(f) In India,
Goods and Services Tax was introduced with effect from the date 1st April 2010. (Fill in the blank with
appropriate word/ words)
2. Mention any two objectives of Goods and Services Tax.
2
Ans: (i) To eliminate cascading effect. (ii) Uniform
tax structure.
3. What is GAAP? 2
Ans:- The full form of GAAP is Generally Accepted
Accounting Principles. Generally accepted accounting principles are the set of
rules and practices that are followed to record transactions and prepare
financial statements.
4. Mention any two features of a voucher. 2
Ans:- (i) It is written documentary evidence. (ii) It
gives complete details of the transaction.
5. What is Trial Balance?
2
Ans:- A statement showing a summary of the balances
(debit/credit) of various accounts in the ledger with a view to verifying the
arithmetical accuracy of postings in the ledger. It shows the final position of
all the accounts and helps in preparing the final statement.
6. Explain any three causes of depreciation. 3
Ans: Causes for Depreciation of Assets:
(i) Wear and
tear due to use or passage of time: Wear and tear means the decline in the
value of an asset and consequential depletion, arising from its use in business
operations to earn revenue. This reduces the technical capabilities of the
asset to fulfill the purpose for which it is intended.
(ii) Expiry
of legal rights: Certain categories of assets lose their value after the
expiry of a pre-determined period and the agreement governing their use in the
business. Examples of such assets are patents, copyrights, leases, etc.
(iii)
Obsolescence: Another factor in depreciation of fixed assets. In simple
language, obsolescence means “growing old”. Obsolescence refers to the existing
asset becoming obsolete due to the availability of a better type of asset.
Or
Explain any
three distinctions between Provision and Reserve.
Ans: There
are three differences between provision and reserves: -
|
Provision |
Reserve |
|
(i) Charge against profit. (ii) It is created for a known liability or expenditure relating to
the current accounting period, the amount of which is not certain. (iii) It reduces taxable profits. |
(i) Appropriation of profits. (ii) It is designed to strengthen the financial position of the
business. Some reserves are also mandatory under the law. (iii) It has no effect on taxable profit. |
7. Explain any three distinctions between a Bill of
Exchange and a Promissory Note. 3
Ans: There are three differences between Bill of Exchange
and Promissory Note: -
|
Bill of Exchange |
Promissory Note |
|
(i) It is taken out by the creditor. (ii) It contains an order to make payment. (iii) There may be three parties i.e., drawer, drawee, and payee. |
(i) It is drawn by the debtor. (ii) It involves a promise to pay. (iii) There are only two parties i.e., drawee and payee. |
Or
Briefly explain
the meaning of accommodation bill.
Ans:
Accommodation bills is a bill, draft, or note made, drawn, acknowledged, or
endorsed by one individual for one more without consideration to empower that
other to fund-raise or get credit subsequently.
8. Explain any three distinctions between Capital
Expenditure and Revenue Expenditure. 3
Ans:- There are three differences between capital
expenditure and revenue expenditure:-
|
Capital Expenditure |
Revenue Expenditure |
|
(i) More than
one year. (ii) Long
term gain (iii) Money
spent on Fixed Assets. |
(i) Less than
one year. (ii) Short
term gain. (iii) Money
spent on Management and operations. |
Or
Briefly
explain the meaning of marshalling of assets and liabilities in Balance Sheet.
Ans: Marshalling
of assets and liabilities refers to the process of arranging the items of the
balance sheet (assets and liabilities) in a specific order. In other words, it
is a process of arranging various assets and liabilities as per a specific
order appearing in the balance sheet.
There are
two methods by which assets and liabilities can be managed and these are:
(i) In order
of liquidity
(ii) In order
of stability
(i) In
order of liquidity: Liquidity refers to the quality of an asset by which it
can be easily converted into cash. We can say that an asset is highly liquid if
that asset can be instantly converted into cash. So, if we arrange the assets
and liabilities of the balance sheet in order of liquidity, the assets and
liabilities are placed in a specific order based on their decreasing liquidity.
(ii) Order
of permanence: Order of permanence is based on the principle of permanence.
In other words, durability means the tendency of the asset to remain within the
organization or the extent of life of the asset within the organization. When
an asset remains with the organization for a long period of time it is said to
have a high degree of permanence.
9. Explain any three disadvantages of accounting from
incomplete records. 3
Ans: There are three disadvantages of accounting due to
incomplete records: -
Although it is
easy to maintain incomplete records, it is not a systematic way of maintaining
accounts. Its limitations are as follows:
(i) In the
absence of double entry system, we cannot prepare trial balance to ensure
accuracy of accounts.
(ii) It fails to
ascertain the exact financial results of the organisation.
(iii) It is
difficult to check and verify profitability, solvency and liquidity. Therefore,
outsiders and banks cannot lend money for the expansion of the business.
Or
Explain any
three distinctions between Double-entry System and Single-entry System of
Book-keeping.
Ans: There
are three differences between double-entry system and single-entry system of bookkeeping:
-
|
Double-entry System |
Single-entry System |
|
(i) All
accounts like personal, real, nominal are maintained. (ii) The
arithmetical accuracy of the book can be checked. (iii) Under
this system adjustments are made while preparing final accounts. |
(i) Only
personal account and cash book are maintained. (ii)
Arithmetical accuracy cannot be checked. (iii) No
adjustment is made under this system. |
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