Marking Scheme of Sample Paper

Elements of Book Keeping and Accountancy

Class X (2017-18)

1. (a)
2. (c)
3. (a)
4. (b)
5. (a)
6. (a)
7. (b)
8. (d)
9. (a)
10. (b)
11. Bill of Exchange:
A bill of exchange is an instrument in writing drawn by the creditor upon his debtor containing an unconditional
order to pay a certain sum of money on a certain date to a certain person or to his order or to the bearer of the
instrument for the value received. 2
12.
Journal
Date Particulars LF Dr. Cr.
Amount Amount
(Rs.) (Rs.)
Machinery Account Dr. 80,000
To Bank Account 80,000
(Machinery purchased)
Machinery Account Dr. 20,000
To Bank Account 20,000
(Paid Installation charges)
Depreciation Account Dr. 10,000
To Machinery Account 10,000
(Depreciation charged on Machinery)
½ + ½ + 1 =2

13. Bank Reconciliation Statement: This statement is prepared to reconcile the difference in bank balance as shown
by Cash Book and Pass Book. 2

14. Credit balance of Cash Book implies unfavourable balance. It is called Bank Overdraft. 2

15. Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses - Closing Stock
= 75,000 + 8,000
= 83,000
Or
Cost of Goods Sold = Net Sales – Gross Profit
= 1,25,000 – 42,000
= 83,000
1 mark for formula and 1 mark for correct calculation
16. Any two of the following limitations:
(i) A Trial Balance can’t be prepared and accuracy of accounts can’t be assured.
(ii) Correct ascertainment and evaluation of financial results of business operations can’t be made.
(iii) The owners face great difficulty in filing insurance claims.
(iv) It becomes difficult to convince the ‘Income Tax Authorities’ about the reliability of the computed income.
1X2=2

17. Examples of Revenue Expenditure:

(i) Payment of Expenses
(ii) Depreciation charged of fixed assets
(iii) Maintenance Expenditure like repairs, white washing etc. 1X3=3

18. Fixed Installment Method of charging Depreciation:

(i) Under this method the amount of depreciation remains constant from year to year.
(ii) The original cost of the asset is reduced to zero at the end of its useful life.
(iii) This method is suitable for those assets whose useful life can be estimated accurately and where the use of
the asset is constant from year to year. 1X3=3

19. Deferred Revenue Expenditure is the expenditure of revenue nature which gives benefits for more than one
accounting period e. g. heavy advertisement expenditure on launching a new product is likely to give benefit for
more than one accounting period. Example: Heavy expenditure on advertisement for launching a new product
whose benefits will be available for over a period of one year. 3

20. Difference between Trading Account and Profit & Loss Account:
Basis of Difference Trading Account Profit & Loss Account
Expense Direct Expenses are debited in this Indirect Expenses are debited in
account this account
Profit It is prepared to ascertain gross It is prepared to ascertain net
profit or gross loss. profit or net loss.
1 ½ + 1 ½ =3

21. Closing Capital = Opening Capital + Additional Capital + Profit – Drawings 1

= 3,40,000 + 40,000 + 2,40,000 – 1,40,000 1
= 4,80,000 1

22. Difference between Statement of Affairs and Balance Sheet:

Basis of Difference Statement of Affairs Balance Sheet

Objective Its objective is to estimate the Its objective is to show the true
balance in capital account on a financial position of a business
particular date. on a particular date.
Reliability It is less reliable as it is prepared
It is more reliable as it is
from incomplete records. prepared on the basis of double
entry system.
Omission Omission of assets or liabilities Omission of assets or liabilities
can’t be discovered easily. can be discovered easily.
1X3=3
23.
Machine Account

Date Particulars JF Amount Date Particulars JF Amount

(Rs.) (Rs.)
2014 2015
Oct 1 To Bank Account 90,000 Mar 31 By Depreciation Account 5,000
To Bank Account 10,000 Jun 30 By Balance c/d 95,000
1,00,000 1,00,000

2015 2016
Apr 1 To Balance b/d 95,000 Mar 31 By Depreciation Account 10,000
By Balance c/d 85,000
95,000 95,000

2016 2017
Apr 1 To Balance b/d Mar 31 By Depreciation Account
85,000 10,000
By Balance c/d 75,000
85,000 85,000
(1 mark for account of each year) + I mark for calculation of Depreciation 1 + 3 =4

24. Causes of difference between Bank balance as shown by Cash Book and Pass Book:
(i) Cheques issued by the bank but not yet presented.
(ii) Cheques paid into bank but not yet collected.
(iii) Amount directly deposited by customers into bank.
(iv) Direct debit by bank on behalf of customers.
(v) Interest and Dividend collected by bank.
(vi) Bank charges debited by bank in Pass Book.
(1 mark each for any four differences) 1 X 4 = 4

25. Uses of Incomplete records:

(i) This system is useful to the businessmen who do not have the proper knowledge of the accounting
principles.
(ii) It is an inexpensive mode of making records.
(iii) It consumes less times.
(iv) It is a convenient mode because only one aspect of transaction is recorded. 1 X 4 = 4

26. (i) Cheques issued but not encashed Add

(ii) Bank charges Subtract

(iii) Collection of Dividend by the bank Add

(iv) Cheques deposited but not cleared Subtract

(v) Insurance Premium paid by the bank on behalf of customer Subtract 1X5=5
27. Items to be shown on the debit side of Trading Account:
(i) Opening Stock
(ii) Purchases
(iii) Direct Expenses
(iv) Gross Profit
(v) Sales Return ½ X 5 =2 ½

Items to be shown on the debit side of Profit & Loss Account:

(i) Gross Loss

(ii) Net Profit
(iii) Indirect Expenses
(iv) Depreciation
(v) Loss on sale of fixed assets ½ X 5 =2 ½

28. Bill of exchange is drawn when the purchaser is unable to make cash payment at the time of purchase. It
ensures that the payment will be made by the purchaser on the presentation of bill of exchange on due date.
Bill of exchange can be discounted from bank to get payment immediately. 2
Parties to a bill of exchange:
(i) Drawer: Who draws the bill of exchange.
(ii) Drawee: Upon whom the bill of exchange is drawn.
(iii) Payee: Who will receive the payment.
1X3=3
29. Revenue Expenditure:
It is incurred for day to day running of the business. 1

Capital Expenditure Revenue Expenditure

It increases the earning capacity of business. It maintains the earning capacity of business.
It is incurred to acquired fixed assets for operation of It is incurred to conduct day to day business.
the business.
It is recurring in nature. It is non-recurring in nature.
It benefits more than one accounting year. It normally benefits for one accounting year.
It is shown in Balance Sheet. It is shown in Trading and Profit & Loss Account.
(Any four) 1 X 4 = 4
30.

Avinash & Company

Bank Reconciliation Statement

As on December 31, 2017

Particulars Plus Items Minus Items

(Rs.) (Rs.)
Overdraft as per Pass Book 10,000
Interest on Overdraft 375
Insurance Premium paid by Bank 1,525
Cheques issued but not presented 3,250
Cheques deposited but not yet cleared 3,000
Balancing Figure 8,350
13,250 13,250
Overdraft as per Cash Book 8,350
1 X5=5
31. Kamal
Trading and Profit & Loss Account
for the year ended March 31, 2017
Particulars Amount Particulars Amount
(Rs.) (Rs.)
To Opening Stock 8,000 By Sales 42,000
To Purchases 22,000 By Closing Stock 4,500
To Carriage 2,500
To Gross Profit c/d 14,000
46,500 46,500

To Salaries 3,500 By Gross Profit b/d 14,000

To Rent 1,200
To Printing & Stationery 1,000
To Commission 1,100
To Discount Allowed 600
To Trade Expenses 1,200
To Selling Expenses 600
To Repairs 600
To Net Profit 4,200
14,000 14,000
2+3=5

32. Printing Machine Account

Date Particulars JF Amount Date Particulars JF Amount

(Rs.) (Rs.)
2014 2015
Jul 1 To Bank Account 40,000 Mar 31 By Depreciation Account 6,750
To Bank Account 5,000 Jun 30 By Balance c/d 38,250
45,000 45,000

2015 2016
Apr 12 To Balance b/d 38,250 Mar 31 By Depreciation Account 9,400
2016 By Balance c/d 63,850
Jan 1 To Bank Account 35,000
73,250 73,250
2017
2016 Mar 31 By Depreciation Account 12,770
Apr 1 To Balance b/d 63,850 By Balance c/d 51,080
63,850 63,850
(2 Marks for account of each year) 2 X 3 = 6

OR

Depreciation: Decrease in the value of a fixed asset due to use, Passage of time, obsolescence and accidents

is called depreciation. 2

Causes of Depreciation:

(i) Because of use, Wear and tear of the asset takes place that results into depreciation.
(ii) Even than an asset may not be used its value may decreases because of passage of time.
(iii) The development of new technology makes the assets with old technology obsolete and the same
may results into depreciation.
(iv) Accidents may reduce the value of asset. 4
33. Books of Ankit

Journal
Date Particulars LF Dr. Cr.
Amount Amount
(Rs.) (Rs.)
2017 Bimal Dr. 10,000
Jan 1 To Sales Account 10,000
(Sold goods to Bimal)
Jan 1 Bills Receivable Account Dr. 10,000
To Bimal 10,000
(Acceptance received from Bimal)
Apr 4 Bank Account Dr. 10,000
To Bills Receivable Account 10,000
(Bimal met his acceptance on maturity)

1X3=3

Books of Bimal
Journal
Date Particulars LF Dr. Cr.
Amount Amount
(Rs.) (Rs.)
2017 Purchases Account Dr. 10,000
Jan 1 To Ankit 10,000
(Goods purchased from Ankit)
Jan 1 Ankit Dr. 10,000
To Bills Payable Account 10,000
(Accepted Ankit’s draft)
Bills Payable Account Dr. 10,000
To Bank Account 10,000
(Met our acceptance in favour of Ankit on maturity)
1 X3=3

OR

Books of Mukesh

Jitender

Date Particulars JF Amount Date Particulars JF Amount

(Rs.) (Rs.)
2017 2017
Jul 1 To Sales Account 30,000 Jul 1 By Bills Receivable A/c 30,000

30,000 30,000

Bills Receivable Account

Date Particulars JF Amount Date Particulars JF Amount

(Rs.) (Rs.)
2017 2017
Jul 1 To Jitender 30,000 Jul 1 By Bank A/c 30,000

30,000 30,000
34. M/s Raj
Statement of Affairs
as on April 1, 2016
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Creditors 66,000 Cash in hand 1,000
Bills Payable 44,000 Cash at bank 15,000
Capital 1,32,500 Stock 1,00,000
Debtors 42,500
Furniture 9,000
Business Premises 75,000
2,42,500 2,42,500

M/s Raj
Statement of Affairs
as on March 31, 2017
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Creditors 87,000 Cash in hand 1,500
Bills Payable 58,000 Cash at bank 10,000
Capital 1,74,000 Stock 95,000
Debtors 70,000
Furniture 7,500
Business Premises 1,35,000
3,19,000 3,19,000
3+3=6

OR

Statement of Affairs of Anil as on March 31, 2017

Liabilities Amount Assets Amount

(Rs.) (Rs.)
Creditors 3,00,000 Cash in hand 37,000
Bills Payable 6,000 Bills Receivable 50,000
Capital (Balancing Figure) 6,21,000 Sundry Debtors 8,00,000
Stock 40,000
9,27,000 9,27,000

Statement of Profit or Loss for the year ended March 31, 2017

Particulars Rs.
Capital at the end 6,21,000
Add: Drawings 80,000 7,01,000 3+3=6

Less: Capital in the beginning 4,50,000

Fresh Capital introduced 14,000 4,64,000
Profit for the year 2,37,000