ICSE CLASS 10 ACCOUNTS SAMPLE PAPER

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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.

ICSE CLASS 10 ACCOUNTS SAMPLE PAPER

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

2011                                                             Rs.
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.

Date	Particulars	LF	Amount	Date	Particulars	LF	Amount
2011 Jan 1

11
18

2011 Feb 1 To balance b/d
To Sales
To Sh Rastogi

To Balance b/d

7800

13500
2560

2011 Jan 18

25By Purchase

By Ashok Kr
By Rent
By Balance c/d

1775

2360
3500
16225

23860

16225

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 31^st March 2010

Particulars	Plus Figures	Minus Figures
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)

8550
1725
175

250
2700
1275

6225

10450

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 1^st 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
                                                   JOURNAL
_________________________________________________________________________
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
                                         JOURNAL
_______________________________________________________________________
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 4^th July 2011

Working Note : Bill was raised on 1^st 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 1^st July + 3 Days of Grace = 4th July.