Accounting - Paper 1 - For Class ICOM - Part 1 (Commerce Group) - Model papers with solved MCQs 2020 -2021

Go To Index
Accounting - Paper I
For Class XI (Commerce Group)
Model papers 2020 -2021

Time: 1 Hour 30 Min.       Max. Marks: 50

SECTION "B" (SHORT-ANSWER QUESTIONS) (30 Marks)

Note: Attempt any Three questions from this section. All questions carry equal marks.
Q.No.2: The following transactions relate to Mr. Kashif, a sole trader during March 2021:
Mar 01: Started business with cash investment of Rs.50,000.
Mar 04: Opened a bank account with Rs.10,000.
Mar 07: Purchased goods on credit from Mr. Adnan for Rs.4,000.
Mar 10: Goods returned to Mr. Adnan for Rs.500
Mar 16: Sold goods on account to Mr. Basit for Rs.6,000.
Mar 22: Received cash Rs.3,000 from Mr. Basit.
Mar 25: Withdrew cash from bank Rs.2,000 for personal use.
Required:
Make journal entries in standard form giving narration below each entry.
SOLUTION 2:

MR. KASHIF

GENERAL JOURNAL

Date	Particulars	P/R	Debit	Credit
Mar. 01	Cash   Capital  (To record cash invested in the business)		50,000	50,000
Mar. 04	Bank   Cash   (To record the cash deposited into bank)		10,000	10,000
Mar. 07	Purchases   Accounts payable (Mr. Adnan)  (To record the goods purchased on account)		4,000	4,000
Mar. 10	Accounts payable (Mr. Adnan)   Purchase return and allowance  (To record the goods returned to supplier)		500	500
Mar. 16	Accounts receivable (Mr. Basit)   Sales  (To record the sold goods on account)		6,000  -:-	6,000
Mar. 22	Cash   Accounts receivable (Mr. Basit)  (To record the cash collected from customer)		3,000	3,000
Mar. 25	Drawings   Bank  (To record the withdrew cash from bank for personal use)		2,000	2,000

Q.No.3: Take the transactions contained in question no.2 of this paper and
Required:
Setup necessary T-accounts in the general ledger and post the transactions there-in. Foot and Balance the accounts.
SOLUTION 3:

MR. KASHIF

GENERAL LEDGER

Q.No.4: Majid, a trader, uses a three column cash book. On September 1, 2020 he had cash on hand Rs.78,000 and cash at bank Rs.109,000. During September, he completed the following transactions:
Sep 01: Sold goods for cash Rs.30,000 and on account Rs.20,000.
07: Received a cheque for Rs.17,500 from Jamal in full settlement of his account of Rs.18,000.
11: Issued a cheque for Rs.14,700 to Mubeen in full settlement of their account of Rs.15,000.
18: Deposited into bank the cheque received on Sep. 7.
27: Withdrew cash from bank Rs.7,000 for personal use and Rs.5,000 for office use.
Required:
a) Prepare a three-column cash book and record the above transactions.
b) Balance the Cash Book on September 30. Bring down the balances on October 1, 2020.

SOLUTION 4

MAJID

THREE COLUMN CASH BOOK

FOR THE MONTH OF SEPTEMBER 2020

5. The following transactions were completed by Mr. Fahim during October 2020:
Oct. 02: Purchased goods on account from Mr. Salim for Rs.24,000.
Oct. 06: Purchased merchandise on credit from Mr. Rahim for Rs.16,000.
Oct. 10: Purchased Furniture on credit from Mr. Shah for Rs.12,000.
Oct. 14: Returned merchandise to Mr Salim worth Rs.4,000. Oct.
20: Defective Furniture returned to Mr. Shah worth Rs.1,000.
Oct. 24: Purchased goods from Mr. Akram for Rs.18,000.
Oct. 28: Goods returned to Mr. Rahim worth Rs.3,000.
Required:
Record the above transactions in appropriate Special Journals. Ignore the irrelevant transactions.

SOLUTION 5:

MR. FAHIM

PURCHASE JOURNAL

FOR THE MONTH OF OCTOBER 2020

Date	Invoice No.	Name Of Suppliers	P/R	Amount
October 02 October 06 October 24		Mr. Salim  Mr. Rahim  Mr. Akram		24,000  16,000  18,000
October 31		Purchase       (Dr.)    Account payable   (Cr.)		58,000

MR. FAHIM

PURCHASE RETURN AND ALLOWANCE JOURNAL

FOR THE MONTH OF OCTOBER 2020

Date	Invoice No.	Name Of Suppliers	P/R	Amount
October 14 October 28		Mr. Salim  Mr. Rahim		4,000  3,000
October 31		Account payable      (Dr.)   Purchase Return and allowance   (Cr.)		7,000

Q.No.6: The following data relate to Yasir and Co. on January 31, 2021:
A. Balance as per Cash Book Rs.10,550.
B. Balance as per Bank Statement Rs.13,000.
C. Cheques deposited into bank for Rs.30,000, of which bank has collected Rs.16,000.
D. Cheques issued for payment Rs.40,000, of which Rs.31,000 were paid by bank.
E. Profit credited by bank Rs.850 not recorded in the cash book.
F. Bank charges Rs.400 recorded in bank statement only.
G. Online deposit by a customer Rs.7,000 not recorded in the cash book.
Required:
Prepare a bank reconciliation statement as on Jan. 31, 2021.

SOLUTION 6:

YASIR AND CO.

BANK RECONCILIATION STATEMENT

FOR THE MONTH OF JANUARY 31, 2021

Particulars	Cash Book	Pass Book
Unadjustable balance  Add: Uncleared cheques  Less: Outstanding cheques  Add: Profit by bank  Less: Bank charges   Add: Direct deposit by customer (Accounts receivable)	10,550 850 (400) 7,000	13,000 14,000 (9,000)
Adjustable Balance	18,000	18,000

SECTION "C" (DETAILED-ANSWER QUESTION)
(20 Marks)

Note: Attempt the following questions which is compulsory.
Q.No.7: The following balances taken from the pre-closing trial balance of Raza Traders as on December 31, 2020:
Cash Rs.42,000, Accounts Receivable Rs.48,000, Merchandise Inventory (01-01-20) Rs.18,000, Furniture Rs.130,000, Allowance for depreciation-furniture Rs.13,000, Accounts Payable Rs.17,000, Capital-Raza Rs.160,000, Sales Rs.210,000, Purchases Rs.106,000, Prepaid Insurance Rs.16,000, Salaries Expense 20,000, Sales returns Rs.10,000, Drawing — Raza Rs.10,000.

Supplementary data for adjustments:
1. Salaries outstanding Rs.4,000
2. Insurance unexpired Rs.10,000
3. 10% Depreciation was estimated on furniture.
4. Provide bad debts @ 2% of net sales.
5. Merchandise Inventory on Dec. 31 Rs.14,000
Required: Prepare any two of the following:
a) Adjusting Entries
b) Income Statement
c) Balance Sheet

SOLUTION 7:

RAZA TRADERS

GENERAL JOURNAL (ADJUSTING ENTRIES)

FOR THE PERIOD ENDED DECEMBER 31, 2020

Date	Particulars	P/R	Debit	Credit
1.	Salaries expenses    Salaries payable  (To adjust the unpaid salaries)		4,000	4,000
2.	Insurance expenses    Prepaid insurance  (To adjust the prepaid insurance)		6,000	6,000
3.	Depreciation expenses (130,000 x 10%)    Allowance for depreciation - Furniture  (To adjust the depreciation expenses on furniture)		13,000	13,000
4.	Bad debts expenses [(210,000 - 10,000) x 2%]    Allowance for bad debts  (To adjust the bad debts expenses)		4,000	4,000
5.	Merchandise inventory    Expense and revenue summary  (To close the merchandise Inventory)		14,000	14,000

RAZA TRADERS

INCOME STATEMENT

FOR THE PERIOD ENDED DECEMBER 31, 2020

RAZA TRADERS

BALANCE SHEET

AS ON DECEMBER 31, 2020

SOURCE: Board Of Intermediate Education Karachi