Accountancy (लेखांकन 320) | Set A1 • Code 71/SS/320/A1

Ans. (D) Voucher
Curricular Justification: A voucher is a written documentary evidence prepared by the accountant and verified by authorized signatories confirming the authenticity and business justification of an economic transaction.

Ans. (C) Assets = Capital + Liabilities
Curricular Justification: The fundamental accounting equation is based on the dual aspect principle: all resources owned by the business (Assets) are financed either by owners (Capital) or external creditors (Liabilities).

Ans. (B) Suspense account
Curricular Justification: When a Trial Balance fails to balance due to one-sided errors, the difference is temporarily transferred to a newly opened Suspense Account to facilitate finalization of accounts pending error location.

Ans. (B) Debiting Suspense A/c by ₹1,000 and Crediting sales A/c by ₹1,000
Curricular Justification: The Sales Book has a normal credit balance. An undercasting means the credit side of Sales Account is short by ₹1,000. To rectify, we credit Sales Account by ₹1,000 and debit Suspense Account by ₹1,000.

Ans. (C) Entrance fees is an item of income
Curricular Justification: In standard accounting practice for NPOs, entrance fees are treated as recurring revenue receipts and credited to the Income and Expenditure Account as income (unless specific instructions state it must be capitalized).

Ans. (D) Bad debts
Curricular Justification: Wages, Fuel and Power, and Carriage Inwards are direct operating expenses related to production and purchase of goods shown in the Trading Account. Bad debts are an indirect selling/financial loss debited to Profit & Loss Account.

Ans. (A) Stationery
Curricular Justification: Donations, entrance fees, and life membership fees represent cash receipts (inflows). Payment for purchasing stationery is a cash outflow recorded on the credit (payment) side of Receipts and Payments Account.

Ans. (C) Realisation Account
Curricular Justification: When any asset (recorded or unrecorded) is realized in cash upon dissolution, the accounting entry is: Cash/Bank A/c Dr. to Realisation A/c. Realisation Account is credited with the proceeds.

Ans. (D) Balances of Assets Accounts other than Cash and Cash at Bank
Curricular Justification: Cash/Bank accounts maintain their own separate closing ledger account. Reserves and P&L balances are transferred directly to Partners' Capital Accounts. All other realizable assets are transferred to the debit of Realisation Account at book values.

Ans. (D) Goodwill is an intangible asset
Curricular Justification: Goodwill is a real asset with real earning power and realizable value, but it lacks physical substance. Hence, it is an intangible non-current asset (not a fictitious asset like preliminary expenses).

Ans. (C) Cash Account
Curricular Justification: On receipt of premium for goodwill in cash, the journal entry is: Cash/Bank A/c Dr. to Premium for Goodwill A/c. Therefore, the amount is debited to Cash/Bank Account.

Ans. (B) Application money
Curricular Justification: Application money is the statutory initial sum paid by potential investors when applying for shares offered by a company.

Ans. (A) for non-payment of call money
Curricular Justification: Under the Companies Act and Articles of Association, a company has the legal right to cancel and forfeit shares only if a shareholder defaults on paying allotment or call money after being given due statutory notice.

Ans. (B) ₹8
Curricular Justification: At the time of forfeiture of shares, Share Capital Account is debited with the called-up value per share (here ₹8), Share Forfeiture A/c is credited with the amount already received (₹6), and Calls in Arrears A/c is credited with the unpaid amount (₹2).

Increase in the value of an asset is debited and decrease in the value of an asset is credited.
Note: In revaluation of assets, increase is credited to Revaluation A/c and decrease is debited to Revaluation A/c. In the Asset account itself, increase is debited and decrease is credited.

(i) Cash basis of accounting (Companies Act 2013 mandates the Accrual / Mercantile basis).
(ii) Ledger (Principal Book of Accounts).

The commonly used output devices include monitor also called VDU (Visual Display Unit) and Printer (or Speakers / Plotter).

(i) Customised software (अनुकूलित सॉफ्टवेयर).
(ii) One-sided errors (एकपक्षीय अशुद्धियाँ / Errors affecting the Trial Balance).

(i) Asset (Unrecorded Asset).
(ii) Unrecorded Asset.

(i) The remaining partners acquire the retiring partner's share in Gaining ratio (लाभ-प्राप्ति अनुपात).
(ii) On dissolution, if a partner undertakes to make payment of a liability of the firm Realisation account is debited (Entry: Realisation A/c Dr. to Partner's Capital A/c).

1. (i) Compensating Error (क्षतिपूरक अशुद्धि): The excess debit of ₹540 in Vidushi's account is counter-balanced by the short debit of ₹540 in Yashika's account.
2. (ii) Error of Principle (सैद्धान्तिक अशुद्धि): Revenue expenditure on ordinary repairs has been wrongly capitalized as capital expenditure.
3. (iii) Error of Commission (हिसाब की अशुद्धि / Casting Error): Arithmetical totaling mistake in a subsidiary book.
4. (iv) Error of Complete Omission (पूर्ण भूल की अशुद्धि): The transaction was completely omitted from original entry in the books.

(i) Liabilities side (Loan taken is a capital receipt creating an obligation).
(ii) Bad Debts (डूबत ऋण).
(iii) ₹1,500 (\(\text{Calculation: } 30,000 \times \frac{5}{100} = ₹1,500\)).
(iv) Debit side (As an indirect operating expense).

(i) Capital Reserve Account (पूंजीगत संचय खाता).
(ii) Under-subscription (अल्प-अभिदान).
(iii) 14 days (Minimum 14 days clear statutory notice).

Deferred Revenue Expenditure: It is a heavy revenue expenditure incurred during one accounting period, the economic benefit of which extends over multiple subsequent accounting years (normally 3 to 5 years). The unwritten-off balance is shown on the Assets side of the Balance Sheet.
Example: Massive advertising and promotional expenditure incurred on launching a new product line.

1. If there is no liability against WCR: The entire amount of WCR is credited directly to Partners' Capital Accounts in their profit-sharing ratio.
2. If there is a liability against WCR:
   • An amount equal to the workmen liability is transferred to the credit of Realisation A/c (and subsequently paid: Realisation A/c Dr. to Bank A/c).
   • Any excess surplus of WCR over the liability is credited to Partners' Capital Accounts in their profit-sharing ratio.

Calls in arrears refers to the unpaid amount demanded by the company on allotment or calls that has not been remitted by shareholders by the prescribed due date. It is shown as a deduction from called-up capital under 'Subscribed Capital' in Notes to Accounts on Share Capital.

Accumulated profits, reserves, and accumulated losses appearing on the Balance Sheet belong exclusively to the old partners earned prior to the admission of the new partner. They are transferred to Old Partners' Capital Accounts in their Old Profit Sharing Ratio.

Oversubscription: A situation where the total number of share applications received by a company from the public exceeds the total number of shares offered for subscription.

1. Total Rejection: Reject excess applications completely and refund the application money to unsuccessful applicants.
2. Pro-Rata Allotment: Allot shares proportionally to all applicants and adjust surplus application money towards allotment and future calls.
3. Combination (Hybrid Method): Allot some applicants in full, reject some applications outright with refund, and make pro-rata allotment to the remaining applicants.

1. Default in Call Payment: The shareholder fails to pay allotment or call money by the due date.
2. Service of 14 Days Notice: The company sends a formal written notice giving at least 14 clear days demanding the unpaid sum along with applicable interest.
3. Warning in Notice: The notice explicitly states that in case of non-payment by the appointed day, the shares will be liable to be forfeited.
4. Board Resolution: If the default continues, the Board of Directors passes a resolution forfeiting the shares.
5. Cancellation & Entry: Name of the shareholder is removed from the Register of Members, and amount already paid is forfeited to the company.

Ans. (A) 2 : 1
Curricular Justification: A Current Ratio of 2:1 is widely accepted as an ideal benchmark for commercial enterprises, signifying that the firm maintains ₹2 of liquid current assets for every ₹1 of short-term obligations.

Ans. (A) Cash received from sale of goods and rendering of services
Curricular Justification: Revenue from core commercial operations generates operating cash inflows under AS-3 (Revised). Sale of machinery is an Investing Activity; share issues and bank loans are Financing Activities.

Ans. (C) Financing Activity
Curricular Justification: Dividend paid represents the cost of servicing equity capital and is categorized as a financing cash outflow.

Liquid Assets = Current Assets − (Inventory / Stock + Prepaid Expenses).

A financial statement showing individual asset and liability items as a percentage of Total Assets is known as Common-Size (समान आकार) Balance Sheet.

1. Assessing Earning Capacity & Profitability: To gauge how efficiently the resources of the business are being utilized to generate operating profits and net returns.
2. Evaluating Solvency and Financial Strength: To verify the enterprise's ability to satisfy short-term liabilities on demand (liquidity) and service long-term debt commitments (long-term solvency).

Ans. (A) Cell
Curricular Justification: In spreadsheet software (like MS Excel), the fundamental unit for data storage created by the intersecting coordinate of a vertical column and a horizontal row is termed a cell (e.g., A1, B10).

Ans. (A) = (Equal to)
Curricular Justification: The equals sign (`=`) instructs the spreadsheet calculation engine to parse and evaluate the subsequent characters as a mathematical or logical expression rather than plain text.

Ans. (A) Periodic payment for a loan based on constant payments and interest rate
Curricular Justification: The `PMT(rate, nper, pv, [fv], [type])` formula computes equal periodic repayments (EMIs) covering both principal amortization and accrued interest.

DBMS stands for Database Management System.

A field in a database table that uniquely identifies each individual record is called a Primary key (प्राथमिक कुंजी).

1. Speed and Arithmetical Accuracy: Automated ledger posting, trial balance creation, and report generation eliminate human calculation errors and save vast operational time.
2. Instant Real-time Reporting: Up-to-date final accounts, cash balances, and customized MIS analytical statements are available immediately upon data entry.

Definition: A chart is a graphical/visual representation of worksheet data that enables quick visual interpretation of financial trends, proportions, and comparative performance.

Two Common Types: (i) Bar/Column Chart, and (ii) Pie Chart (used for proportional cost breakups).

Password security and role-based access control restrict unauthorized access, tampering, or fraudulent alterations to sensitive financial records. Access permissions ensure that junior data-entry operators can only record vouchers, while ledger edits and master financial authorizations remain strictly confined to authorized accounting managers.

1. `SLN(cost, salvage, life)`: Computes the straight-line depreciation of an asset for one single period.
2. `PMT(rate, nper, pv)`: Computes the fixed periodic installment (EMI) required to repay a loan at a constant interest rate over a specified number of periods.
3. `FV(rate, nper, pmt, [pv])`: Returns the future accumulated value of an investment based on periodic, constant payments and a fixed interest rate.

1. Hardware: Physical electronic equipment including processors, storage servers, terminals, and printers.
2. Software: Programs comprising system software (OS) and specialized accounting application software (e.g., Tally, ERP, customized packages).
3. People: Trained accountants, data-entry personnel, and systems administrators who operate and maintain the environment.
4. Procedures & Data: Standard operating steps for recording transactions and the structured database storing accounting facts.