ICSE CLASS 10 ACCOUNTS SAMPLE PAPER
PART–I(ICSE CLASS 10 ACCOUNTS SAMPLE PAPER)
ICSE class 10 accounts sample paper has been brought for you , so that students may get extra leverage in practicing more and more for board exams.
1. Answer each of the following questions briefly:
I. Explain the “Total Method” of a Trial Balance.
Ans. The total of debit and total of credit Colums are taken and posted as it in the debit and credit column of the Trial Balance. In this method accounts head can be taken as per Groups too. For example Sundry Creditors all the accounting heads under this head of group will be taken first irrelevant to their appurtenance sequence the ledgers.
II. Comment on Summarization of Accounts.
Ans. Writing the balances of all accounts ledger in a statement is called as summarization of Accounts the example of the this can be a Trial Balance.
Ans. After recording the transactions in Journal or Cash Book all these transaction must be posted in their respective ledgers heads in Ledger Books hence the Accounting process involves the posting of the recorded transaction to the ledger accounts, this process part is called as Classification.
IV. What is a Bank Reconciliation Statement?
Ans. Usually at the end of the year or at the end of every month account matches the balances of banks mentioned in his Cash Book with the passbook of bank, there may be many differences due to which the final balance is not matched, so he prepares a statement in which he establish the differences between cash book and passbook transaction in relation to the bank only, this statement is referred as Bank Reconciliation Statement.
V. What is GAAPs Stands for?
Ans. All the Principals of Accounts, connects relating to Accounts are known asGenerally Accepted Accounting Principles or GAAPs.
2. Calculate the Gross profit from the following figures given
a) Opening Stock as on April 1, 17000
b) Purchase during the year 80000
c) Purchase returned during the year 15000
d) Freight paid on purchase 4500
e) Net Sales during the year 165000
f) Closing Stock 2550
Ans. The formula to acquiring the Gross profit is
Net Sales – Cost of Goods Sold
First we need to calculate the cost of goods sold
COG = 17000 + 80000 – 15000 + 45000 – 2550 = 124450
Now COG = Net Sales – Cost of Goods Sale i.e. 165000 – 124450 = Rs. 40550
So Gross Profit = 40550.
3. Record the following transactions in Cash book in the books of Mr MK Singh
Jan 1 Cash in hand 7800
Jan 11 Cash Sales 13500
Jan 18 Cash Purchase 1775
Jan 25 Cash paid to Sh Rastogi 2360
Jan 27 Cash received from Ashok Kr. 2560
Jan 31 Rent paid for the M/o Jan 3500
Ans. MK Singh
Dr. CASH BOOK Cr.
|2011 Jan 1|
2011 Feb 1 To balance b/d
To Sh Rastogi
To Balance b/d
2011 Jan 18
By Ashok Kr
By Balance c/d
4. Prepare a Bank Reconciliation Statement on the base of the following facts.
A) The Bank Balance as per Cash Book is Rs. 8550 (Favorable)
B) A Cheque was issued to Batra Brothers for Rs. 1725 was not presented in bank till date.
C) A Bank Interest Rs. 175 was credited by bank
D) Half Yearly folio Charges debited by Bank Rs. 250
E) A cheque sent for collection but not credited by bank so far for Rs. 2700
F) An electricity Cheque was issued for Rs. 1275 which was not entered in Cash book’s bank Column, which was debited by bank.
G) The balance as per Bank Passbook is Cr Rs. 10450
Ans. BANK RECONCILIATION STATEMENT
As on 31st March 2010
| Balance As per Cash Book|
Add: Cheques Issued but not presented in bank for payment
Bank Interest credited by bank
Less: Half yearly folio charges debited by Bank
Cheque sent for collection but not credited so far
Electricity cheque debited by bank
Balance as per Pass Book (Cr)
5. What are the possibilities of the Trial Balance being wrong despite of matching both Credit and Debit colums?
Ans. The Trial balance can be agreed and can be taken as error less in case both the aspects of debit and credits are matching in relation of the Totals but still it doesn’t mean it’s a correct one, its correct up to the level how much It has got the values ofdebit and Credit, but when an Entry is missed totally it will miss the effect at both of the sides, for example Mr Kamal Chand Sale Entry for Rs. 15000 was not recorded in the books of the account It means the Sale that has been shown in the Trial Balance must be less by Rs. 15000 mean the Credit Side of the Trial Balance and other side i.e. Debit Side the Debtor have been shown less by Rs. 15000 which is Mr Kamal Chand so ifDebit and Credit both have less amount by equal level i.e. Rs. 15000/- then it will not affect the Trial Balance Arithmetical agreement with both sides.
6. How the various Accounts like Assets, Liabilities and Capital are treated underDebit and Credit rules?
Ans. As per the basic concept of the Accounting System in each financial transaction one aspect comes in and other correspondence aspect goes out, so it can be treated vice versa for example, Sale brings Cash and takes out the Stock or we can say the finished goods. So the equal treatment is necessary to streamline the accounting system, now lets see the asked questions aspects
Assets: When Assets are being purchased the transaction will be passed by debiting the Assets and crediting the source of payment be it Bank in case of payment by cheque or Cash in case the payment is being done in cash.
Liabilities: In plain words Liabilities are always payable, like Capital, Bills Payable, Creditors or Loans Liabilities, so as per their nature, it brings something in business be it loan or whatever, same will be credited and Cash, Purchase will be debited.
Capital : Capital is the major source of any business, it plays the role of fuel to the business, the natural balance should be credit, when the Capital is being introduced the Cash or Bank will be debited and Capital Account will be Credited, if the Capital is in name of a proprietor or partner will be credit instead of Capital A/c.
7. Mr. SK Mehta sold goods worth Rs. 15000 to Mr. Sohan Singh on 1st April 2011 and raised a Bill of Exchange stating the Bill is payable 3 months after date. Journalize the Accounting entries in book of Drawer and Drawee and calculate the due date for payment?
Ans. Journal Entries in the Books of SK Mehta
Date Particulars LF Dr. Cr.
1 Apr 2011 Sohan Singh A/c Dr…. 15000
To Sales A/c 15000
(Sale of goods to Mr. Sohan Singh)
1 Apr 2011 Bills Receivable A/c Dr…. 15000
To Sohan Singh 15000
(Amount receivable against Sale)
Journal Entries in the Books of Sohan Singh
Date Particulars LF Dr. Cr.
1 Apr 2011 Purchase A/c Dr…. 15000
To SK Mehta 15000
(being goods purchased from SK Mehta)
1 Apr 2011 SK Mehta Dr…. 15000
To Bills Payable 15000
(Being Bill Accepted for payment of credit purchase)
The Due date will be 4th July 2011
Working Note : Bill was raised on 1st April and it was payable 3 Months after date, the remaining days will be like April 29 Days, May 31 Days and June 30 Days so the due date will be 1st July + 3 Days of Grace = 4th July.