AHSEC| CLASS 11| ACCOUNTANCY| SOLVED PAPER - 2022| H.S. 1ST YEAR
2022
ACCOUNTANCY
Full Marks: 100
Pass Marks: 30
Times: 3 hours
The figures in the margin indicate full marks for the questions
1. Fill in the blanks/ Choose the correct answer/ Write True or False of the following: 1x8=8
(a) Accounting records only the
transactions of financial nature.
(b) The convention of conservation
results in under - statement of profits.
(c) The rule for Personal Account is Debit the receiver and Credit the giver.
(d) Trial Balance is an account/ a statement/ an information.
(e) The sale value of an asset after
it becomes useless is called scrap value.
(f) A bill of exchange is a
conditional document. False
(g) Outstanding rent is a revenue/ liability.
(h) The full form of CPU is Central
Processing Unit.
2.
Define Accounting. 2
Ans:- Accounting is the process of
recording, summarizing, analyzing, and reporting the financial transactions of
a business. It involves tracking the flow of money in and out of a business and
providing information to stakeholders such as investors, regulators and tax
authorities.
3.
What is entity assumption? 2
Ans:- The entity assumption is a
fundamental principle in accounting that states that a business is a separate
entity from its owners. This means that the business has its own identity, and
its financial transactions are recorded separately from the financial
transactions of the owners.
4.
What is the principle of double-entry system of book-keeping? 2
Ans:- The principle of double-entry
system of bookkeeping is a method of recording financial transactions where
each transaction is recorded twice: once as a debit and once as a credit. This
system ensures that the total amount of debits is equal to the total amount of
credits, providing balance and accuracy in financial records.
5.
What is Suspense Account? 2
Ans:- A suspense account is a
temporary account used in accounting to record transactions where the proper
account cannot be determined at the time of recording. It is used to stop the
transaction until the correct account is identified, after which the amount is
transferred to the appropriate account.
6.
What is the function of Provision for Bad and Doubtful Debts? 2
Ans:- Provision for bad and doubtful
debts is an accounting concept used to estimate the amount of uncollectible
accounts receivable. It is a reserve account established to cover estimated
losses from bad debts, and is adjusted periodically to reflect changes in the
estimate of uncollectible accounts.
7.
Write three distinctions between Bill of Exchange and Promissory Note. 3
Ans:-
There are three differences between a bill of exchange and a promissory note:-
(i) A bill of exchange is a
written order from one party (drawer) to another party (drawee) to pay a
specified amount to a third party (payee) at a future date. A promissory note
is a written promise from one party (the maker) to another party (the payee) to
pay a specified amount at a future date.
(ii) A bill of exchange is
negotiable, which means that it can be transferred to another party before it
becomes payable. A promissory note is not negotiable, meaning it cannot be
transferred to another party before it becomes due.
(iii) Bills of exchange are
generally used in international trade, while promissory notes are generally
used in domestic transactions.
8.
What is meant by adjustment entry in final accounts? Give two examples of
adjustment entry. 3
Ans:- Adjusting entries in the final
accounts are accounting entries made at the end of the accounting period to
correct any errors or omissions in the financial records. They are designed to
ensure that the financial statements accurately reflect the financial position
of the business. Examples of adjusting entries include accruals, deferrals, and
estimates.
9.
Write three limitations of incomplete records. 3
Ans:-
Incomplete records have three limitations:-
(i) Incomplete records may not provide a complete picture of the
financial position of the business, making it difficult to take informed
decisions.
(ii) Incomplete records may not accurately reflect the actual
financial position of the business, leading to inaccurate financial statements
and potentially poor decision making.
(iii) Incomplete records may not conform to accounting standards and
regulations, potentially leading to legal problems and penalties.
Or
Mention three qualitative
characteristics of accounting information.
Ans:- Qualitative
characteristics of accounting information:-
Accounting information has
several qualitative characteristics that enhance its usefulness for decision
making processes.
The three main qualitative
characteristics are:-
(i) Relevance: This characteristic ensures
that the information is helpful in making financial decisions by providing
insight into past events and helping to predict future outcomes.
(ii) Representational
Reliability:
Also known as reliability, this characteristic focuses on the accuracy of
information in reflecting the resources, transactions and obligations of the
company without any bias.
(iii) Verifiability: This characteristic refers to
the reproducibility of information based on similar data and assumptions,
ensuring that the information can be independently verified for accuracy.
These qualitative
characteristics play an important role in ensuring that accounting information
is reliable, relevant and useful to various stakeholders in making informed
decisions.
10.
Explain money measurement concept. 3
Ans:- The money measurement concept
is a fundamental principle in accounting that states that only those
transactions and events should be recorded in financial statements that can be
measured in monetary terms. This concept is based on the idea that money is a
common unit of measurement for all transactions, making it easier to compare
and understand the financial performance of a business.
The money measurement concept
has several characteristics:-
(i) It uses money as a common
parameter to measure the performance of a company.
(ii) It records only those
transactions which can be expressed in monetary value.
(iii) Presenting the value of a
business in monetary terms helps in easy communication between management and
stakeholders.
(iv) It does not consider the
effect of inflation on recording of transactions.
11.
Explain three benefits of computerized accounting system. 3
***
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