NEB Class 11 · Exam intelligence
From 3 NEB Class 11 past papers: the chapters that keep coming back and their most important questions, each with a solved model answer. No guarantees; study the whole syllabus.
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Following are given (Budget Head: Annual Budget; Expenditure upto month of Baisakh; Expenditure of Jestha): Salary 3,00,000 / 2,00,000 / 30,000; Allowance 1,00,000 / 40,000 / 20,000; Office Material 50,000 / 5,000 / 40,000; Rent 60,000 / 4,000 / 50,000; Furniture 90,000 / 60,000 / 10,000. Additional: Total revolving fund release Rs. 5,50,000; Petty cash fund balance Rs. 1,000. Required: Statement of expenditure for the month of Jestha showing Bank Balance.
Statement of Expenditure for Jestha showing Bank balance
| Budget Head | Annual Budget | Up to Baisakh | Jestha | Total Expenditure | Budget Balance |
|---|---|---|---|---|---|
| Salary | 3,00,000 | 2,00,000 | 30,000 | 2,30,000 | 70,000 |
| Allowance | 1,00,000 | 40,000 | 20,000 | 60,000 | 40,000 |
| Office Material | 50,000 | 5,000 | 40,000 | 45,000 | 5,000 |
| Rent | 60,000 | 4,000 | 50,000 | 54,000 | 6,000 |
| Furniture | 90,000 | 60,000 | 10,000 | 70,000 | 20,000 |
| Total | 6,00,000 | 3,09,000 | 1,50,000 | 4,59,000 | 1,41,000 |
Balance at Bank:
$$ \begin{aligned} \text{Bank balance} &= \text{Revolving fund released} - \text{Total expenditure} - \text{Petty cash balance}\ &= 5{,}50{,}000 - 4{,}59{,}000 - 1{,}000\ &= \textbf{Rs. } 90{,}000 \end{aligned} $$
Following are given (Budget head: Annual budget; Expenditure up to Magh; Expenditure of Falgun): Salaries 2,50,000 / 1,20,000 / 1,00,000; Fuel 60,000 / 40,000 / 10,000; Office materials 1,00,000 / 50,000 / 40,000; Miscellaneous 50,000 / 20,000 / 20,000; Furniture 1,10,000 / 80,000 / 30,000. Additional:
(i) Total revolving fund received Rs. 5,10,000.
(ii) Petty cash fund balance Rs. 2,000.
(iii) Deposit received Rs. 10,000. Required: Statement of expenditure for the month of Falgun showing balance at bank.
Statement of Expenditure for Falgun showing Bank balance Budget Head Annual Budget Up to Magh Falgun Total Expenditure Budget Balance ------------------ Salaries 2,50,000 1,20,000 1,00,000 2,20,000 30,000 Fuel 60,000 40,000 10,000 50,000...
Following particulars are given (Budget Head: Annual Budget; Expenditure up to Poush; Expenditure of Magh): Salary 10,00,000 / 4,50,000 / 50,000; Allowance 1,00,000 / 45,000 / 5,000; Office supplies 50,000 / 25,000 / 3,000; Rent 60,000 / 30,000 / 6,000; Furniture 1,20,000 / 1,00,000 / -. Additional:
(a) Total revolving fund received Rs. 8,50,000.
(b) Petty cash fund balance Rs. 2,500. Required: Statement of Expenditure showing balance at Bank.
Statement of Expenditure (up to Magh) showing Bank balance Budget Head Annual Budget Up to Poush Magh Total Expenditure Budget Balance ------------------ Salary 10,00,000 4,50,000 50,000 5,00,000 5,00,000 Allowance 1,00,000 45,000 5,000 ...
Following transactions are given: 2074-2-1: Balance at Bank Rs. 80,000. 2074-2-5: Received Bank order and budget release order of Rs. 4,00,000. 2074-2-12: Issued a cheque of Rs. 60,000 to purchase machinery. 2074-2-23: Out of advance of Rs. 10,000 of Mr. Kafle cleared as per bill of Rs. 8,000 and refund of Rs. 2,000. 2074-2-30: Salary for the month of Jestha Rs. 1,00,000 distributed after deducting provident fund as per rule. Required: Bank Cash Book.
The budget release order Rs. 4,00,000 is recorded in the budget column (memorandum). Mr. Kafle's advance Rs. 10,000: expenditure Rs. 8,000 booked, refund Rs. 2,000 returned to bank. Provident fund on salary is taken @10% (as per rule) $=...
Following transactions are given: Magh 1: Opening bank balance Rs. 50,000. Magh 5: Received Bank order Rs. 2,00,000 and budget release order for the actual expenditure of last month Rs. 2,50,000. Magh 7: Purchased furniture Rs. 40,000. Magh 15: Office supplies advance of Ram Thapa cleared as per the bill submitted by him Rs. 20,000. Magh 25: Out of total salaries of Rs. 55,000 balance is paid by cheque after deducting P.F. Rs. 10,000. Required: Bank Cash Book.
The budget release order Rs. 2,50,000 is recorded in the budget column (memorandum). Bank order Rs. 2,00,000 is the fund available at bank. Magh 15 clears an earlier advance against a bill (expenditure booking, no fresh bank outflow). Sa...
Following transactions are given: Magh 1: Balance at Bank Rs. 80,000. Magh 2: Received Bank order Rs. 3,20,000 and Budget released order Rs. 4,00,000. Magh 7: Issued a cheque Rs. 35,000 to purchase office supplies. Magh 15: Ram submitted furniture purchased bill of Rs. 60,000; his advance is cleared by issuing a cheque of Rs. 10,000. Magh 27: Issued cheque for salary Rs. 72,000 and for allowance Rs. 10,000 after deducting P. Fund Rs. 16,000. Required: Bank cash book.
The budget release order Rs. 4,00,000 is recorded in the budget column (memorandum); the Bank order Rs. 3,20,000 is the fund actually made available at bank. Ram's advance was Rs. 50,000 (bill 60,000 less cheque 10,000). Salary + allowan...
Mention any three objectives of Government Accounting System.
Three objectives of the government accounting system are:
State any three differences between governmental and commercial accounting.
| Basis | Government Accounting | Commercial Accounting |
|---|---|---|
| Objective | To record collection and authorised spending of public money; no profit motive | To ascertain profit or loss and financial position of the business |
| Basis | Maintained on the basis of the approved budget and government rules | Maintained on the basis of accounting principles (GAAP) |
| Result | Prepares statements of revenue and expenditure; does not prepare Profit and Loss Account | Prepares Trading, Profit and Loss Account and Balance Sheet |
State any three features of governmental accounting.
Three features of governmental accounting are: 1. Budget based. It is maintained strictly within the limits of the approved budget; expenditure cannot exceed the sanctioned budget head. 2. Government rules and directives. It is kept acco...
What do you understand by Budget Sheet?
A budget sheet is a statement (register) maintained by a government office that shows, for each budget head, the annual budget allotted, the expenditure incurred, and the remaining (unspent) budget balance. It helps the office to: - keep...
State three importance of Government Accounting.
Three points of importance of government accounting are: 1. Control over public funds. It records receipts and expenditure of public money and ensures that expenditure is made only within the sanctioned budget and for authorised purposes...
Write the meaning of 'budget transfer'. Give a specimen journal voucher when amount is transferred from Miscellaneous Head to Salary Head.
Budget transfer means shifting a sanctioned budget amount from one budget head (expenditure title) to another within the approved total budget, with proper authority, when the fund of one head is surplus and another head is short. Specim...
Following information are provided: Provision for bad debts (opening) Rs. 10,000; Bad debts Rs. 5,000; Debtors Rs. 60,000; Create provision for doubtful debts @10%. Required: Provision for doubtful debts account.
New provision required: $$ \begin{aligned} \text{New provision required} &= 10% \times 60{,}000 \ &= 6{,}000 \end{aligned} $$ Provision for Doubtful Debts Account Dr. Rs. Cr. Rs. ------------ To Bad debts A/c 5,000 By Balance b/d (open...
Write the meaning of Reserve and Provision.
Reserve: A reserve is an amount set aside out of profits to strengthen the financial position or to meet future needs. It is an appropriation of profit (made after ascertaining net profit), for example a general reserve. Provision: A pro...
Following information are provided: Opening provision for bad debts Rs. 5,000; Bad debts Rs. 2,000; Closing debtors Rs. 60,000; Provision for bad debts to be maintained @ 10%. Required: Provision for bad debts account.
New provision required: $$ \begin{aligned} \text{New provision required} &= 10% \times 60{,}000 \ &= 6{,}000 \end{aligned} $$ Provision for Bad Debts Account Dr. Rs. Cr. Rs. ------------ To Bad debts A/c 2,000 By Balance b/d (opening) ...
Give two reasons why secret reserve is created.
Two reasons for creating a secret reserve (a reserve not disclosed in the Balance Sheet) are:
Following are given:
(a) Bad debts Rs. 5,000.
(b) Opening balance of provision for bad debts Rs. 6,000.
(c) Closing debtors Rs. 1,20,000.
(d) Provision for bad debts to be maintained @ 5%. Required: Provision for bad debts account.
New provision required: $$ \begin{aligned} \text{New provision required} &= 5% \times 1{,}20{,}000 \ &= 6{,}000 \end{aligned} $$ Provision for Bad Debts Account Dr. Rs. Cr. Rs. ------------ To Bad debts A/c 5,000 By Balance b/d (openin...
Give two reasons why secret reserve is created.
A secret reserve is a reserve that is not disclosed in the Balance Sheet; its existence makes the real financial position of the business stronger than what the accounts show. Two reasons for creating it are:
An unadjusted Trial Balance of a company: Sales 4,00,000 (Cr); Capital 2,00,000 (Cr); Creditor 1,00,000 (Cr); Purchases 3,00,000 (Dr); Wages 50,000 (Dr); Fixed assets 1,00,000 (Dr); Salaries 50,000 (Dr); Debtors 80,000 (Dr); Cash 1,20,000 (Dr); Total 7,00,000. Adjustments: Outstanding wages Rs. 5,000; Bad debts Rs. 2,000. Required: Adjusted Trial Balance.
Adjusted Trial Balance Particulars Debit (Rs.) Credit (Rs.) --------- Sales 4,00,000 Capital 2,00,000 Creditor 1,00,000 Purchases 3,00,000 Wages (50,000 + 5,000) 55,000 Fixed assets 1,00,000 Salaries 50,000 Debtors (80,000 - 2,000) 78,00...
Unadjusted Trial Balance of a company: Capital 80,000 (Cr); Creditors 40,000 (Cr); Sales 1,60,000 (Cr); Purchase 80,000 (Dr); Debtors 16,000 (Dr); Expenditures 72,000 (Dr); Machinery 1,12,000 (Dr); Total 2,80,000. Additional:
(i) Outstanding expenses Rs. 5,000.
(ii) Depreciate Machinery at 10%. Required: Adjusted Trial Balance.
Depreciation on machinery: $$ \begin{aligned} \text{Depreciation on machinery} &= 10% \times 1{,}12{,}000 \ &= 11{,}200 \end{aligned} $$ Adjusted Trial Balance Particulars Debit (Rs.) Credit (Rs.) --------- Capital 80,000 Creditors 40,...
An unadjusted Trial Balance of a company is given: Capital 2,00,000 (Cr); Debtors 60,000 (Dr); Purchases 1,00,000 (Dr); Creditors 50,000 (Cr); Furniture 40,000 (Dr); General expenses 10,000 (Dr); Sales 1,20,000 (Cr); Machinery 1,30,000 (Dr); Cash in hand 30,000 (Dr); Total 3,70,000. Additional information:
(i) Depreciation 10% on machinery.
(ii) Provision for doubtful debt 2.5%.
(iii) Prepaid general expenses Rs. 1,000. Required: Adjusted Trial Balance.
Adjustments: Depreciation: $$ \begin{aligned} \text{Depreciation} &= 10% \times 1{,}30{,}000 \ &= 13{,}000 \end{aligned} $$ Provision for doubtful debts: $$ \begin{aligned} \text{Provision for doubtful debts} &= 2.5% \times 60{,}000 ...
Clarify the meaning of Trial Balance.
A Trial Balance is a statement that lists the debit and credit balances of all ledger accounts on a particular date to check the arithmetical accuracy of the books.
It is prepared by placing every ledger balance in either the debit or the credit column. If the total of the debit column equals the total of the credit column, the books are considered arithmetically correct. The Trial Balance is not an account; it is only a working statement and also serves as the basis for preparing the final accounts.
State any two objectives of Trial Balance.
Two objectives of preparing a Trial Balance are: 1. To check the arithmetical accuracy of the ledger postings; if the total of the debit column equals the total of the credit column, the books are considered arithmetically correct. 2. To...
Following errors were located before preparation of Trial Balance:
(i) Wages paid of Rs. 2,000 for installation of machinery was debited to wages account.
(ii) Goods sold to Raj for Rs. 5,000 was wrongly been debited to Saj's account.
(iii) Salary paid to Ram Rs. 10,000 was debited to Ram's account. Required: Entries for rectification.
Rectifying Entries (i) Wages for installation of machinery are a capital expenditure and should be added to Machinery, not charged to Wages: Particulars Debit (Rs.) Credit (Rs.) --------- Machinery A/c ..... Dr. 2,000 To Wages A/c 2,000 ...
Following errors were located before the preparation of Trial Balance:
(i) Goods sold to Raj for Rs. 5,000 has wrongly been debited to Ram's account.
(ii) Depreciation of Rs. 1,000 on machine wrongly entered as Rs. 10,000.
(iii) A credit sale of Rs. 5,000 to Satish has been recorded to Purchase Book. Required: Entries for rectification.
Rectifying Entries (i) Sale to Raj was debited to Ram instead of Raj: Particulars Debit (Rs.) Credit (Rs.) --------- Raj A/c ..... Dr. 5,000 To Ram A/c 5,000 (ii) Depreciation recorded Rs. 10,000 instead of Rs. 1,000 (excess Rs. 9,000 de...
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Open Accountancy notes and questionsStatement of Expenditure for Jestha showing Bank balance
| Budget Head | Annual Budget | Up to Baisakh | Jestha | Total Expenditure | Budget Balance |
|---|---|---|---|---|---|
| Salary | 3,00,000 | 2,00,000 | 30,000 | 2,30,000 | 70,000 |
| Allowance | 1,00,000 | 40,000 | 20,000 | 60,000 | 40,000 |
| Office Material | 50,000 | 5,000 | 40,000 | 45,000 | 5,000 |
| Rent | 60,000 | 4,000 | 50,000 | 54,000 | 6,000 |
| Furniture | 90,000 | 60,000 | 10,000 | 70,000 | 20,000 |
| Total | 6,00,000 | 3,09,000 | 1,50,000 | 4,59,000 | 1,41,000 |
Balance at Bank:
The budget release order Rs. 4,00,000 is recorded in the budget column (memorandum). Mr. Kafle's advance Rs. 10,000: expenditure Rs. 8,000 booked, refund Rs. 2,000 returned to bank. Provident fund on salary is taken @10% (as per rule) $=...
New provision required: Provision for Doubtful Debts Account Dr. Rs. Cr. Rs. ------------ To Bad debts A/c 5,000 By Balance b/d (open...
New provision required: Provision for Bad Debts Account Dr. Rs. Cr. Rs. ------------ To Bad debts A/c 2,000 By Balance b/d (opening) ...
New provision required: Provision for Bad Debts Account Dr. Rs. Cr. Rs. ------------ To Bad debts A/c 5,000 By Balance b/d (openin...
Depreciation on machinery: Adjusted Trial Balance Particulars Debit (Rs.) Credit (Rs.) --------- Capital 80,000 Creditors 40,...
Adjustments: Depreciation: Provision for doubtful debts: $$ \begin{aligned} \text{Provision for doubtful debts} &= 2.5% \times 60{,}000 ...