AHSEC| CLASS 11| ACCOUNTANCY| SOLVED PAPER - 2024| H.S. 1ST YEAR

 

AHSEC| CLASS 11| ACCOUNTANCY| SOLVED PAPER - 2024| H.S. 1ST YEAR

2024
ACCOUNTANCY
(Commerce)
Full Marks: 80
Pass Marks: 24
Time: 3 hours
The figures in the margin indicate full marks for the questions

 

1. Answer the following as directed: 1×6=6

(a) Accounting does not record quantitative events. (State whether the statement is True or False)

(b) All cash transactions are recorded in the Cashbook. (Fill in the blank with appropriate word/words)

(c) Debit balance in the Passbook shows bank overdraft. (Fill in the blank with appropriate word/words)

(d) Depreciation is charged on tangible fixed assets. (Fill in the blank with appropriate word/words)

(e) Balance Sheet shows financial position. (State whether the statement is True or False)

(f)  Trial Balance is the base for preparing Final Accounts. (State whether the statement is True or False)

2. Mention any two objectives of accounting. 2

Ans:- Two objectives of accounting:-

(i) Recording financial transactions: Accounting systematically records all financial transactions to maintain a clear and chronological record for reference and analysis.

(ii) Determining financial position: It helps to ascertain the financial position of a business by preparing financial statements such as the balance sheet, which shows assets, liabilities and equity.

3. What is going-concern concept? 2

Ans:- The going-concern concept assumes that a business will continue to operate for the foreseeable future. This principle ensures that assets are recorded based on their ongoing use rather than their liquidation value.

4. What is a Bank Reconciliation Statement? 2

Ans:- The bank reconciliation statement (BRS) is a document prepared to reconcile the difference between the bank balance as per the cash book (maintained by the company) and the bank statement (provided by the bank). It identifies discrepancies such as un-presented cheques or un-credited deposits.

5. What is Suspense Account? 2

Ans:- A suspense account is a temporary account used to record uncertain or ambiguous transactions until they can be properly classified. It helps maintain accuracy in accounting records when there are discrepancies or incomplete information.

6. Briefly explain any three qualitative characteristics of Accounting Information. 3

Ans:- Three qualitative characteristics of accounting information:-

(i) Relevance: Accounting information should be relevant to the decision-making needs of users. It should help predict future results or confirm past decisions.

(ii) Reliability: Information should not contain material errors and biases, representing transactions and events faithfully.

(iii) Comparability: Users should be able to compare financial information across different entities or time periods to identify trends and make informed decisions.

7. Briefly explain any three limitations of GAAP. 3

Ans:- Three limitations of GAAP:-

(i) Complexity: GAAP contains extensive rules that can make financial reporting unnecessarily complex for organizations.

(ii) Lack of global uniformity: GAAP is used primarily in the U.S., making international comparisons difficult because other countries use IFRS.

(iii) Costly compliance: Complying with GAAP standards requires significant resources, which can be cumbersome for small businesses.

Or

Briefly explain any three advantages of single-entry system of accounting. 3

Ans:- There are three advantages of the single-entry system of accounting:-

(i) Simplicity: The single-entry system is straightforward and easy to maintain, especially for small businesses.

(ii) Cost-effectiveness: It is less expensive as it does not require special software or expertise.

(iii) Time savings: Recording transactions is quick as it involves minimal bookkeeping.

8. Briefly explain any three distinctions between Journal and Ledger. 3

Or

Briefly explain any three needs for preparing a Bank Reconciliation Statement. 3

Ans:- Three Requirements for Preparing Bank Reconciliation Statement:-

(i) Error Detection: Helps to identify discrepancies between bank records and the company's books.

(ii) Fraud Prevention: Ensures that unauthorised transactions are identified in time.

(iii) Accurate Cash Position: Provides clarity on the actual cash available for business operations.

9. Briefly explain any three objectives of preparing a Trial Balance. 3

Ans:- Three Objectives of Preparing Trial Balance:-

(i) Accuracy Check: Ensures that total debits equals total credits, confirming arithmetical accuracy.

(ii) Financial Statement Preparation: Serves as the basis for preparing financial statements such as Profit and Loss Account and Balance Sheet.

(iii) Error Detection: Helps to identify errors in ledger posting or balancing.

Or

Briefly explain any two types of errors which do not affect the Trial Balance. 3

Ans:- Two types of errors that do not affect the trial balance:-

(i) Errors of Omission: When a transaction is completely omitted from the books.

(ii) Errors of commission: When an entry is made in the wrong account but with the correct amount (for example, recording a purchase in another expense account).

10. Briefly explain any five distinctions between Revenue Reserve and Capital Reserve. 5


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