NIOS| ACCOUNTANCY (224)| SOLVED PAPER – (APRIL - 2023)| SECONDARY| ENGLISH MEDIUM
ACCOUNTANCY(224)[APRIL - 2023]Time: 3 HoursMaximum Marks: 100
Note: (i) All questions are compulsory.
(ii) Marks allotted to each question are indicated against it.
1. "The business enterprise and its owners are separate" is the theme of 1
(A)
convention of consistency
(B) business-entity concept
(C)
convention of full disclosure
(D) dual-
aspect concept
2. Income received in advance ₹7,000. What effect will
the transaction have on the accounting equation? 1
(A) Increase
and decrease in asset
(B) Increase
and decrease in liability
(C) Increase in asset and increase in liability
(D) Increase
in liability and decrease in asset
3. Which of the following is the book of original entry?
1
(A) Trial
Balance
(B) Journal
(C) Ledger
(D) None of
the above
4. Under which method of depreciation, the amount of
depreciation goes on reducing year after year? 1
(A)
Straight-line Method
(B) Diminishing Balance Method
(C) Both (A)
and (B)
(D) None of
the above
5. Carriage inward is shown in the 1
(A) debit side of Trading Account
(B) debit
side of Profit and Loss Account
(C) credit
side of Trading Account
(D) credit
side of Profit and Loss Account
6. Which of the following is not included in Central
Processing Unit (CPU)? 1
(A) Control
Unit
(B) Memory
Unit
(C) Arithmetic
and Logic Unit
(D) Output Unit
7. State any three limitations of accounting. 3
Ans:- Limitations of Accounting:-
(i)
Measurability: Accounting cannot measure intangible factors that do not
have a monetary value, such as management quality, employee loyalty or brand
reputation. These important elements are crucial to a company's success, but
are excluded from financial statements.
(ii)
Historical cost: Financial records usually rely on historical costs, which
do not take into account inflation or market fluctuations. This can lead to a
distorted view of a company's current financial position, as the values of
assets and liabilities may differ significantly from their market values.
(iii) No
future estimation: Accounting provides a snapshot of a company's financial
position at a specific point in time, making it difficult to predict future
performance. Users often want information about future profitability and
viability, which standard accounting practices do not provide.
8. What is transfer voucher? Give a specimen of transfer
voucher. 3
Ans:- Transfer Voucher:
A transfer
voucher is an internal document used to record the transfer of funds or assets
between accounts within an organization. It serves as evidence for the
transaction and helps maintain accurate financial records.
Sample of Transfer Voucher:
9. Define (a) Trial Balance and (b) Suspense Account. 3
Ans:- A trial balance is a statement that lists all
the balances of a business's general ledger accounts at a specific point in
time. Its primary purpose is to ensure that the total debits equal the total
credits, which helps identify any discrepancies in the accounting records.
Ans:- A suspense account is a temporary account used
to hold uncertain or unclassified amounts until they can be properly allocated
to the correct accounts. It is used when there are discrepancies in accounting
entries that require further investigation before final classification.
10. Classify the following assets into fixed and current
assets: 3
Cash in Hand;
Debtors; Land and Building; Stock of Goods; Furniture; Plant and Machinery.
Ans:- (i) Current assets: These are assets that are
expected to be converted into cash or used up within a year. They are generally
liquid and include items such as cash, inventory and receivables.
(ii) Fixed
assets: These are long-term assets that are not expected to be converted
into cash within a year. They are used in the operations of a business and
include property, plant and equipment.
Classification
of assets:-
(i) Current
assets
(a) Cash in
hand: It is liquid and can be used immediately.
(b) Debtors
(accounts receivable): These are amounts payable to the business that are
expected to be recovered within a year.
(c) Stock
of goods (inventory): It includes goods available for sale and expected to
be sold within a year.
(ii) Fixed
Assets
(a) Land
and Buildings: These are long-term investments in property and are not
designed for quick liquidation.
(b)
Furniture: This is a tangible asset used for business operations, with a
useful life usually exceeding one year.
(c) Plant
and Machinery: These are essential for production processes and have long-term
utility in the business.
By properly
classifying these assets, businesses can better manage their financial
statements and understand their liquidity and operational capabilities.
11. What do you mean by computerized accounting? 3
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