STUDY WITH CA PARAG GUPTA
GUESS PAPER
CA Foundation (NSET) - Paper - 1 Accounting
Time Allowed: 3 hours Maximum Marks: 100
General Instructions:
Question No. 1 is compulsory.
Answer any four questions from the remaining five questions.
Working notes should form part of the answers.
Attempt any 5 questions
1. Answer the following: [20]
(a) State with reasons, whether the following statements are True or False :
i. Bank Reconciliation Statement can be prepared in two formats - "Balance" [1]
presentation and "Plus & Minus" presentation.
ii. Trial balance forms a base for the preparation of Financial statement. [1]
iii. Journal proper is also called a subsidiary book. [1]
iv. Days of rebate are added to the due date to arrive at the maturity date. [1]
v. Only legal heirs of deceased partner are entitled to amount received from joint [1]
life policy.
vi. Retiring partner has to forego his share of goodwill in the firm. [1]
(b) Answer the following:
i. Describe in brief, the alternative measurement bases, for determining the value [2]
at which an element can be recognized in the balance sheet or statement of profit
and loss.
ii. When and how is Suspense account used to rectify errors? [2]
(c) Write out the Journal Entries to rectify the following errors, using a Suspense Account. [4]
1. Goods of the value of ₹ 100 returned by Mr. Sharma were entered in the Sales Day
Book and posted therefrom to the credit of his account;
2. An amount of ₹ 150 entered in the Sales Returns Book, has been posted to the debit
of Mr. Philip, who returned the goods;
3. A sale of ₹ 200 made to Mr. Ghanshyam was correctly entered in the Sales Day Book
but wrongly posted to the debit of Mr. Radheshyam as ₹ 20; and
4. The total of "Discount Allowed" column in the Cash Book for the month of
September, 2022 amounting to ₹ 250 was not posted.
2. Answer the following: [20]
(a) The following is the trial balance of Mr. Pandit for the year ended 31st March, 2022: [12]
Trial Balance as on 31st March 2022
Particulars Dr. ₹ Particulars Dr. ₹
Opening Stock:
1/7
, Raw Materials 1,50,000 Sundry Creditors 50,000
Finished goods 75,000 Purchases Returns 5,000
Purchase of Raw
5,00,000 Capital 1,00,000
Materials
Land & Building 1,00,000 Bills Payable 24,000
Loose tools 30,000 Long-Term loan 2,00,000
Provision for Bad and Doubtful
Plant & Machinery 30,000 2,000
Debts
Investments 25,000 Sales 8,50,000
Cash in Hand 20,000 Bank Overdraft 23,000
Cash at Bank 5,000
Furniture & Fixtures 15,000
Bills Receivable 15,000
Sundry Debtors 40,000
Drawings 20,000
Salaries 20,000
Coal and Fuel 15,000
Factory rent & rates 20,000
General Expenses 4,000
Advertisement 5,000
Sales Return 10,000
Bad Debts 4,000
Direct Wages (Factory) 80,000
Power 30,000
Interest Paid 7,000
Discount Allowed 3,000
Carriage Inwards 15,000
Carriage Outwards 7,000
Commission Paid 9,000
12,54,000 12,54,000
Additional Information
Stock of finished goods at the end of the year ₹ 1,00,000.
A provision for doubtful debts is to be created. at 5% on Sundry Debtors. Depreciation
2/7
GUESS PAPER
CA Foundation (NSET) - Paper - 1 Accounting
Time Allowed: 3 hours Maximum Marks: 100
General Instructions:
Question No. 1 is compulsory.
Answer any four questions from the remaining five questions.
Working notes should form part of the answers.
Attempt any 5 questions
1. Answer the following: [20]
(a) State with reasons, whether the following statements are True or False :
i. Bank Reconciliation Statement can be prepared in two formats - "Balance" [1]
presentation and "Plus & Minus" presentation.
ii. Trial balance forms a base for the preparation of Financial statement. [1]
iii. Journal proper is also called a subsidiary book. [1]
iv. Days of rebate are added to the due date to arrive at the maturity date. [1]
v. Only legal heirs of deceased partner are entitled to amount received from joint [1]
life policy.
vi. Retiring partner has to forego his share of goodwill in the firm. [1]
(b) Answer the following:
i. Describe in brief, the alternative measurement bases, for determining the value [2]
at which an element can be recognized in the balance sheet or statement of profit
and loss.
ii. When and how is Suspense account used to rectify errors? [2]
(c) Write out the Journal Entries to rectify the following errors, using a Suspense Account. [4]
1. Goods of the value of ₹ 100 returned by Mr. Sharma were entered in the Sales Day
Book and posted therefrom to the credit of his account;
2. An amount of ₹ 150 entered in the Sales Returns Book, has been posted to the debit
of Mr. Philip, who returned the goods;
3. A sale of ₹ 200 made to Mr. Ghanshyam was correctly entered in the Sales Day Book
but wrongly posted to the debit of Mr. Radheshyam as ₹ 20; and
4. The total of "Discount Allowed" column in the Cash Book for the month of
September, 2022 amounting to ₹ 250 was not posted.
2. Answer the following: [20]
(a) The following is the trial balance of Mr. Pandit for the year ended 31st March, 2022: [12]
Trial Balance as on 31st March 2022
Particulars Dr. ₹ Particulars Dr. ₹
Opening Stock:
1/7
, Raw Materials 1,50,000 Sundry Creditors 50,000
Finished goods 75,000 Purchases Returns 5,000
Purchase of Raw
5,00,000 Capital 1,00,000
Materials
Land & Building 1,00,000 Bills Payable 24,000
Loose tools 30,000 Long-Term loan 2,00,000
Provision for Bad and Doubtful
Plant & Machinery 30,000 2,000
Debts
Investments 25,000 Sales 8,50,000
Cash in Hand 20,000 Bank Overdraft 23,000
Cash at Bank 5,000
Furniture & Fixtures 15,000
Bills Receivable 15,000
Sundry Debtors 40,000
Drawings 20,000
Salaries 20,000
Coal and Fuel 15,000
Factory rent & rates 20,000
General Expenses 4,000
Advertisement 5,000
Sales Return 10,000
Bad Debts 4,000
Direct Wages (Factory) 80,000
Power 30,000
Interest Paid 7,000
Discount Allowed 3,000
Carriage Inwards 15,000
Carriage Outwards 7,000
Commission Paid 9,000
12,54,000 12,54,000
Additional Information
Stock of finished goods at the end of the year ₹ 1,00,000.
A provision for doubtful debts is to be created. at 5% on Sundry Debtors. Depreciation
2/7
