CSEET Accounts Model Questions : Practice Problems with Solutions

FUNDAMENTALS OF ACCOUNTING

MODEL QUESTION PAPER

Time: 3 HoursMaximum Marks: 100

General Instructions

1. Answer all questions.

2. Working notes should form part of the answer.

3. Wherever necessary, show calculations clearly.

4. Proper formats should be followed for Journal, Ledger, Cash Book, Bank Reconciliation Statement and Financial Statements.

5. Figures should be rounded off to the nearest rupee wherever required.

6. Narrations are expected for journal entries wherever appropriate.

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PART A – ACCOUNTING FUNDAMENTALS & ACCOUNTING PROCESS

Question 1 – Accounting Concepts and Classification

10 Marks

(a)

State the accounting concept/principle applicable in each of the following situations and give a brief reason:

1. The owner of a business treats ₹2,00,000 withdrawn for personal use as drawings and not as business expenditure.

2. A company continues to depreciate its machinery even though the market value of the machinery has increased.

3. Revenue is recognised when goods are sold on credit even though cash has not yet been received.

4. Closing stock is valued at cost or net realisable value, whichever is lower.

5. A business follows the same accounting method from year to year.

(5 × 1 = 5 Marks)

(b)

From the following information, calculate Capital:

· Cash – ₹50,000

· Furniture – ₹80,000

· Machinery – ₹1,50,000

· Creditors – ₹70,000

· Bank Loan – ₹60,000

· Debtors – ₹90,000

· Stock – ₹40,000

(5 Marks)

PART B – JOURNAL, LEDGER & TRIAL BALANCE

Question 2 – Journal Entries

10 Marks

Pass journal entries for the following transactions in the books of Arun Traders:

1. Commenced business with cash ₹4,00,000.

2. Purchased goods for cash ₹80,000.

3. Purchased goods on credit from Babu ₹1,20,000.

4. Sold goods for cash ₹1,00,000.

5. Sold goods on credit to Ravi ₹1,50,000.

6. Paid carriage ₹8,000.

7. Returned goods worth ₹15,000 to Babu.

8. Ravi returned goods worth ₹10,000.

9. Paid Babu ₹1,00,000 by cheque.

10. Received ₹1,35,000 from Ravi in full settlement of his account.

Question 3 – Ledger Posting

10 Marks

From the following transactions, prepare:

(a) Cash Account(b) Mohan Account

Transactions:

· Started business with cash ₹2,00,000.

· Purchased goods for cash ₹40,000.

· Purchased goods from Mohan ₹70,000.

· Sold goods to Mohan ₹30,000.

· Paid Mohan ₹50,000 by cheque.

· Received cash from customers ₹60,000.

· Paid salaries ₹20,000.

· Purchased furniture for ₹25,000.

Balance the accounts wherever necessary.

PART C – SUBSIDIARY BOOKS & CASH BOOK

Question 4 – Three Column Cash Book

10 Marks

Prepare a Three Column Cash Book of Suresh Traders, with Cash, Bank and Discount columns, from the following:

Date	Transaction
April 1	Cash in hand ₹40,000; Bank balance ₹60,000
April 3	Received cash from Raj ₹18,000 and allowed discount ₹500
April 5	Paid Kumar by cheque ₹24,000 and received discount ₹1,000
April 8	Cash sales ₹30,000
April 10	Deposited cash into bank ₹25,000
April 15	Withdrew from bank for office use ₹10,000
April 20	Paid wages ₹8,000
April 25	Received cheque from Manoj ₹15,000 and allowed discount ₹500
April 28	Paid electricity charges by cheque ₹6,000

Balance the Cash Book.

PART D – BANK RECONCILIATION STATEMENT

Question 5 – BRS

10 Marks

The Cash Book of ABC Traders showed a bank balance of ₹75,000 on 31 March 2026.

On comparing it with the Bank Statement, the following differences were found:

1. Cheques amounting to ₹20,000 issued to suppliers were not presented for payment.

2. Cheques of ₹15,000 deposited into the bank had not yet been credited.

3. Bank charges of ₹1,500 were entered only in the Bank Statement.

4. Interest credited by the bank ₹2,000 was not entered in the Cash Book.

5. A cheque of ₹5,000 deposited into the bank was dishonoured, but the Cash Book had not been adjusted.

6. The bank wrongly debited ₹3,000 to the company's account.

Prepare a Bank Reconciliation Statement as on 31 March 2026, starting with the balance as per Cash Book.

PART E – DEPRECIATION

Question 6 – Straight Line Method

10 Marks

On 1 April 2023, XYZ Ltd. purchased machinery for ₹5,00,000.

Additional machinery was purchased on 1 October 2024 for ₹2,00,000.

The original machinery has a useful life of 10 years and a residual value of ₹50,000.

The additional machinery has a useful life of 8 years with no residual value.

Calculate depreciation for:

1. Year ended 31 March 2024

2. Year ended 31 March 2025

3. Year ended 31 March 2026

Also calculate the book value of both machines as on 31 March 2026.

Question 7 – Written Down Value Method

10 Marks

A machine was purchased on 1 April 2023 for ₹4,00,000. Depreciation is charged at 20% per annum under the Written Down Value Method.

On 1 October 2025, the machine was sold for ₹2,30,000.

Calculate:

1. Depreciation for 2023–24.

2. Depreciation for 2024–25.

3. Depreciation up to the date of sale in 2025–26.

4. Profit or loss on sale of the machine.

Pass the necessary journal entry for the sale of the machine.

PART F – FINAL ACCOUNTS OF SOLE PROPRIETOR

Question 8 – Trading & Profit and Loss Account

15 Marks

From the following Trial Balance of Ramesh Traders, prepare:

(a) Trading Account(b) Profit and Loss Account

for the year ended 31 March 2026.

Particulars	₹
Opening Stock	80,000
Purchases	4,00,000
Sales	7,00,000
Purchase Returns	20,000
Sales Returns	30,000
Carriage Inward	15,000
Wages	40,000
Salaries	60,000
Rent	24,000
Insurance	12,000
Advertisement	10,000
Commission Received	8,000
Discount Received	5,000
Bad Debts	6,000
Debtors	1,50,000
Cash	40,000
Furniture	1,00,000
Capital	2,50,000
Creditors	80,000

Additional information:

1. Closing stock was valued at ₹1,20,000.

2. Salaries outstanding ₹5,000.

3. Insurance prepaid ₹2,000.

4. Depreciation on furniture ₹10,000.

PART G – FINAL ACCOUNTS WITH ADJUSTMENTS

Question 9 – Complete Final Accounts

15 Marks

Prepare the Trading Account, Profit and Loss Account and Balance Sheet of Anil as at 31 March 2026 from the following Trial Balance:

Particulars	Debit ₹	Credit ₹
Capital	—	4,00,000
Drawings	50,000	—
Purchases	4,50,000	—
Sales	—	7,50,000
Opening Stock	1,00,000	—
Wages	50,000	—
Salaries	60,000	—
Rent	30,000	—
Carriage	20,000	—
Debtors	1,80,000	—
Creditors	—	1,20,000
Furniture	1,00,000	—
Machinery	2,00,000	—
Cash	30,000	—
Bank	40,000	—
Insurance	15,000	—
Discount Allowed	10,000	—
Discount Received	—	8,000
Total	13,35,000	13,78,000

Additional information:

1. Closing stock ₹1,50,000.

2. Outstanding wages ₹5,000.

3. Outstanding salaries ₹10,000.

4. Prepaid insurance ₹3,000.

5. Depreciate machinery by 10% and furniture by 10%.

6. Further bad debts ₹5,000.

7. Create provision for doubtful debts at 5% on debtors after writing off further bad debts.

Prepare the necessary working notes.

PART H – PARTNERSHIP ACCOUNTS

Question 10 – Partnership Profit Sharing

10 Marks

A and B are partners sharing profits and losses in the ratio of 3 : 2.

Their capitals are:

· A – ₹3,00,000

· B – ₹2,00,000

The partnership deed provides:

· Interest on capital @ 10% p.a.

· Interest on drawings @ 6% p.a.

· A is entitled to salary of ₹30,000 p.a.

· B is entitled to commission of ₹20,000.

· Profit before these adjustments is ₹2,00,000.

During the year:

· A withdrew ₹60,000 evenly throughout the year.

· B withdrew ₹40,000 evenly throughout the year.

Calculate:

1. Interest on Capital

2. Interest on Drawings

3. A's salary

4. B's commission

5. Divisible profit

6. Share of profit of A and B

7. Final amount credited to each partner's Capital/Current Account.

PART I – NON-PROFIT ORGANISATION

Question 11 – Receipts and Payments / Income and Expenditure

10 Marks

The following information relates to XYZ Sports Club for the year ended 31 March 2026:

Receipts

· Subscriptions received – ₹1,80,000

· Entrance fees – ₹20,000

· Donations – ₹30,000

· Sale of old newspapers – ₹5,000

· Interest received – ₹10,000

Additional Information

Subscriptions:

· Outstanding at beginning – ₹15,000

· Outstanding at end – ₹20,000

· Received in advance at beginning – ₹5,000

· Received in advance at end – ₹8,000

Expenses paid:

· Salaries – ₹60,000

· Rent – ₹36,000

· Sports expenses – ₹40,000

· Printing and stationery – ₹15,000

Additional information:

· Salaries outstanding at year-end ₹5,000.

· Rent prepaid ₹3,000.

· Sports equipment purchased during the year ₹25,000.

Calculate:

(a) Income from subscriptions(b) Revenue expenditure on sports activities(c) Surplus/Deficit from the above information.

QUESTION 12 – COMPREHENSIVE ACCOUNTING PROBLEM

10 Marks

Rahul commenced business on 1 April 2025 with ₹5,00,000 cash.

During the year:

· Purchased goods for cash ₹1,00,000.

· Purchased goods on credit from Sohan ₹2,00,000.

· Sold goods for cash ₹1,50,000.

· Sold goods on credit to Mohan ₹2,50,000.

· Paid Sohan ₹1,50,000 by cheque.

· Received ₹2,00,000 from Mohan.

· Paid salaries ₹40,000.

· Paid rent ₹30,000.

· Purchased furniture ₹50,000.

· Withdrew ₹25,000 for personal use.

Additional information:

· Closing stock ₹1,20,000.

· Depreciation on furniture ₹5,000.

· Salaries outstanding ₹5,000.

Prepare:

(a) Statement of Gross Profit(b) Statement of Net Profit(c) Balance Sheet as at 31 March 2026.