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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