SEE Model Questions of Account with Solutions 2079 Set-2
Welcome to the latest post on SEE Account Model Questions 2079 with answers set-2. This post is written and prepared specially for the students of class 10 studying Optional 2 subject Office Practice and Accounting (in Short Account Subject). The goal is to provide comprehensive and accurate solutions to the 2079 Account Model Questions. By reading this post Class 10 Office Practice and Accounting students like you will gain a clear understanding of the Office Practice and Accounting concepts, which will improve your chances of scoring better in exams. Get ready to boost your knowledge and excel in your exams with these up-to-date and reliable Class 10 Office Practice and Accounting Model Questions and Solutions.
Group A: Answer the following questions in one sentence:
1. Write the full name of GATT.
The full name of GATT is General
Agreement on Tariffs and Trade.
2. Who appoints the governor of Nepal Rastra Bank?
The governor of Nepal Rastra Bank is
appointed by the Government of Nepal.
3. Which part of balance sheet does bank overdraft record?
Bank overdraft records in capital and
liabilities side of balance sheet.
4. When was Kumari Chowk Adda established in Nepal? Mention in B.S.
Kumari Chowk Adda was established on
6th Baishakh, 1828 B.S. in Nepal.
5. Why bank cash book is called multi accounts book?
 Bank cash book involves various accounts like-
Cash Account, Bank Account, Budget Expenditure Account, Advance Account and
Miscellaneous Account. Hence, it is called multi accounts book.
Group B: Give
short answer to the following questions:
6. What is resolution? Explain two types of it.
The subject matter or topic which is
presented in the meeting for discussion and decision is called a resolution.
Ordinary Resolution:
The resolution that is presented in
the general assembly of a company is called ordinary resolution. The general
meeting is the meeting of the shareholders of a company that takes place on the
completion of a fiscal year. Such resolutions are related to the general and
regular activities of a company. They are passed by a simple majority i.e. more
than 50% of the shareholders.
Special Resolution:
A resolution that is presented in the
special meeting of the shareholders is called a special resolution. A special
or urgent meeting is conducted to discuss and decide on some special or
abnormal cases. The resolutions which are to be passed by a specific majority
i.e. 3/4 or 75% of the members even in the general meeting are also called
special resolutions.
7. Introduce numerical filing method and mention four advantages and four disadvantages of it.
The filing under which files of
persons or organizations are preserved in drawers or cabinet in numerical order
is numerical filing method. In this method, when file is created, a certain
number is written instead of name of person or institution. Files are arranged
in the drawer in serial like 1, 2, 3, and 4 and so on.
The main advantages of numerical
filing method are as follows:
- Confidential: The files are arranged according to number
not names. So this method is a confidential method.
- Flexible: It has unlimited ground for the addition of
new files. Hence, this is a flexible method of filing.
- Suitable for
large organization: This method is
suitable for the organizations having a large number of files.
- Quick location: This method ensures quick location of files
through a separate index. The main disadvantages of numerical filing method are
as follows
- Unsuitable for
small organization: This method is
unsuitable for small organizations having less numbers of files and folders.
- Costly system: This method of filing needs separate index
and cabinet. So, it is costly. iii. Time consuming: Under this method, location
of files is time consuming due to the need of referring the separate index
card.
- Not suitable for
names: This method is not suitable for the
organizations where names are more important than numbers.
8. Explain five procedures of foreign trade orderly.
The procedures of foreign trade are
mentioned below:
Enquiry:
This is the first step of foreign trade. An
importer seeks information from the probable exporter about different aspect of
goods and services. These aspects are price, quantity, quality, discount,
credit facility, transportation facility, and modes of payment. Enquiry is made
by an importer using different means such as letter, telephone, and email. This
step of trade helps the importer to search for the best exporter of goods and
services. This is sometimes made through international newspaper or media.
Reply/ Quotation letter:
After getting the enquiry from the
importer, the exporter writes a letter replying all the queries made by the
importer. The letter written against the enquiry is called the quotation or
reply letter. It includes all the terms and conditions such as price, quality, quantity,
discount, terms of payment, and modes of transportation. The quotation letter
should not be tar from the reality so that the probable importer accepts it.
Purchase order:
After receiving quotation letter from various
exporters, the importer selects the most appropriate supplier. Now, he/she
sends a letter to the exporter ordering the goods or services which is called
letter of purchase order. It contains the detailed information about the goods
and services such as brand name and number, quantity, quality, delivery time
and mode, and payment.
Letter of acknowledgement:
The exporter
sends a letter to the importer informing that he got the letter of purchase
order and the goods and services will be sent as soon as possible. This letter
is called the letter of acknowledgement. It is also called the confirmation
letter since it confirms that the exporter has accepted the purchase order.
Letter of credit:
An exporter exports the goods only against
the bank guarantee on behalf of the importer. So, the importer should open the
letter of credit with the local bank by submiting9 the necessary documents and
charges. The importer gets the LC number which is sent to the exporter. The
exporter presents the LC number to his/her local bank and gets the payment of
the goods exported.
9. Why is new accounting system important nowadays? Justify with five reasons.
New accounting system is designed to
provide required information, data, statistics and other financial details for
administration and financial decisions. It is the base of financial
administration and helps for formulation of plans and policies. It facilitates
for preparation of budget and other financial statement.
The reasons of new accounting system
may be reflected through the following points:
- Source of financial administration
- Formulation of plans and policies
- Reflects financial transactions
- Facilitates preparation of budget
- Helps to control finance
10. If you were an accountant, which five points do you consider to prepare bank cash book?
If I were an accountant, I would like
to consider the following points to prepare Bank Cash Book:
Basis of posting: Journal voucher is the basis of bank cash
book; hence, journal voucher must be prepared for every financial transaction
before posting them into bank cash book.
Posting of
transactions: In bank cash
book, amounts debited in journal voucher are posted in the debit column and
amounts credited are posted in the credit column of the concerned accounts.
Recording of
transactions: Posting of
financial transactions related with cash account, bank account, budget
expenditures account and advance accounts are made in the bank cash book.
Amount of transactions are posted into corresponding accounts on the basis of
journal vouchers prepared for them.
Recording in
miscellaneous account: Miscellaneous
account column is used to record those transactions which are not recorded in
the above columns. Imprest fund, budget release, and petty cash fund are
recorded in this column.
Recording of
advance transactions: All the
financial transactions except advance transactions are to be posted into two
different accounts in bank cash book. Advance transactions are to be posted
into three different accounts at the time of giving advances and also at
clearing advances.
Recording imprest
fund and budget release: Imprest
fund and budget release are the only transactions recorded as receipts in bank
cash book.
Recording of petty
cash transactions: Petty cash fund
expenses are recorded in Bank Cash Book only when reimbursement of such
expenses is made.
11. Prepare Trial Balance of Limbu & Company, llam on 2073 Asar 31 on the basis of following.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| Capital | 5,00,000 | Purchases | 7,00,000 |
| Sales | 11,25,000 | Advertisement | 1,00,000 |
| Depreciation | 50,000 | Land | 8,00,000 |
| Furniture | 1,75,000 | Bank Loan | 2,00,000 |
| Heads of Account | Debit RS | Credit RS |
|---|---|---|
| Capital | - | 5,00,000 |
| Sales | - | 11,25,000 |
| Depreciation | 50,000 | - |
| Furniture | 1,75,000 | - |
| Purchases | 7,00,000 | - |
| Advertisement | 1,00,000 | 3,32,000 |
| Land | 8,00,000 | - |
| Bank Loan | - | 2,00,000 |
| Total | 3,70,000 | 3,70,000 |
12. Prepare Profit and Loss Account of Karnali Ghee Industry on the last of Asar 2073 form the given transactions:
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| Gross Loss | 3,50,000 | Interest received | 90,000 |
| Purchase discount | 50,000 | Salaries | 70,000 |
| Commission received | 60,000 | Stationary | 25,000 |
| Carriage outward | 55,000 |
| Particulars | Rs | Particulars | Rs |
|---|---|---|---|
| To Gross Loss | 3,50,000 | By Interest received | 90,000 |
| To Salary | 70,000 | By Purchase discount | 50,000 |
| To Stationary | 25,000 | By Commission received | 60,000 |
| To Carriage outward | 55,000 | By Net Loss | 3,00,000 |
| 5,00,000 | 5,00,000 |
13. Prepare balance sheet of Sharma Guest House, Saptari on the last of Asar for the fiscal year 2072/073 according to the following particulars:
| Particulars | Rs | Particulars | Rs |
|---|---|---|---|
| Capital | 5,83,000 | Machinery | 26,000 |
| Debtors | 17,000 | Reserve Fund | 65,000 |
| Net Profit | 1,98,000 | Cash balance | 22,000 |
| Bills payable | 54,000 | Business premises | 8,35,000 |
| Capital and Liabilities | Amount | Assets | Amount |
|---|---|---|---|
| Capital..........5,83,00 | Debtors | 17,000 | |
| Add: Net profit....1,98,000 | 7,81,000 | Machinery | 26,000 |
| Bills payable | 54,000 | Cash balance | 22,000 |
| Reserve Fund | 65,000 | Business premises | 8,35,000 |
| 9,00,000 | 9,00,000 |
Group C: Write
long answer to the following questions:
14. Introduce insurance and describe it’s any six functions.
Insurance is a contract by which one
party, for a compensation called the premium, assumes particular risks of the
other party and promises to pay to him or his nominee a certain or
ascertainable sum of money on a specified contingency. The functions of
insurance are discussed below:
Risk transfer:
Insurance transfers the risk borne by
the insured to the insurer. For example, house and shop may catch fire and the
car may be stolen. The potential risk of fire and theft may bring severe
financial consequences to your family. By insuring house and business against
fire and the car against theft, one can transfer the risk of fire and theft to
the insurance company.
Creation of
common pool of risk:
Creation of common pool of risk is
another primary function of insurance. Every insurance company creates and
operates such pool. They take contributions, in the form of insurance premiums,
from many people and create the pool; and use the pool to pay the losses of the
few.
Charge equitable
premium:
The insurer must charge fair premium
to the insured. Insurers determine equitable premium by considering the hazard
and value of the property. Charging equal premium for properties with different
level of risk would not be equitable.
Formation of
capital:
An insurance company collects premium
by the way of offering different insurance policies to various insured parties.
The premiums collected are made available for investment in the productive
section of economy. Thus, insurance company involves in the formation of
capital required for investment in productive sector of the nation.
Enhancement in
efficiency through assurance:
Insurance Company provides assurance
of compensation against the possible losses. This creates the environment of
working with security for individual and businesses. As a result, the
individual and business can work with free of tension with increase
efficiently.
Creates awareness
against possible losses:
Insurance Company conducts researches
on the way of minimizing the possible losses in various areas. It also launches
the awareness program for the people and business in joint collaboration with government
and various social agencies. This helps in developing insurable habits to the
people.
15. Prepare A.G.F.No. 10 (Goshwara Voucher) of District Agriculture office Dolakha on the basis of following transactions.
| a | 2073/7/20 | Received Rs. 4,00,000 as additional revolving fund through Nepal Rastra Bank. |
|---|---|---|
| b | 2073/7/23 | Petty cash fund of Rs. 10,000 was established through cheque No. 0135. |
| c | 2073/7/24 | Accountant Mr. Siyaram Chaudhary was given advance Rs. 25,000 for furniture through cheque No. 0136. |
| d | 2073/7/29 | Paid Rs. 30,000 as house rent to owner Mr. Netra Karki for the month of Kartik through cheque No. 0137. |
| e | 2073/7/30 | The salary for the month of Kartik Rs. 2,00,000 was distributed, deducting provident fund Rs. 20,000 through cheque No. 0138. |
| Code No. | Particulars | LF | BH No | Debit Rs. | Credit Rs. |
|---|---|---|---|---|---|
| a | Dr. Nepal Rastra Bank | 4,00,000 | |||
| CR, Revolving Fund (Being revolving fund received) | 4,00,000 | ||||
| b | Dr. Petty Cash Fund | 10,000 | |||
| Cr. Nepal Rastra Bank (Being establishment of Petty Cash Fund) | 10,000 | ||||
| c | Dr. Accountant Mr. Siyaram Chaudhary Furinture and Fixture- advance | 29311 | 25,000 | ||
| Cr. Nepal Rastra Bank (Being advance for furniture purchase Siyaramm was given) | 25,000 | ||||
| d | Dr. B.E. House rent | 22121 | 30,000 | ||
| Cr. Nepal Rastra Bank (Being paid to house rent for Mr. Netra Karki) | 30,000 | ||||
| e | Dr. B.E. Salary | 21111 | 2,20,000 | ||
| Cr. Provident fund | 20,000 | ||||
| Cr. Nepal Rastra Bank (Being salary paid after deducting provident fund) | 2,00,000 |
16. Prepare statement of expenditure of District Education Office, Kaski for the month of Falgun, 2072 from the following particulars.
| BH No. | Budget Heads | Annual Appropriation(Rs.) | Expenditure Up to Magh (Rs.) | Expenditure of Falgun(Rs.) |
|---|---|---|---|---|
| 21111 | Salary | 8,00,000 | 4,00,000 | 60,000 |
| 22121 | House rent | 3,00,000 | 1,70,000 | 60,000 |
| 22314 | Fuel | 2,00,000 | 80,000 | 12,000 |
| 27317 | Gratuity | 1,00,000 | 60,000 | - |
| 29411 | Vehicle | 4,00,000 | 2,00,000 | 30,000 |
| 29511 | Machinery and equipment | 50,000 | 20,000 | 3,000 |
| Total | 18,50,000 | 9,30,000 | 1,30,000 |
 Additional information:
- Total revolving fund Rs. 12,00,000
- Bank balance Rs. 1,37,000
- Uncleared advance Rs. 5,000
Show the following from statement of expenditure:
- Total budget release upto Falgun
- Total expenditure upto Falgun
- Revolving fund balance
- Net expenditure
- Cash in hand
| Expenditure of Falgun(Rs.) | Release Upto the end of Falgun(Rs.) | Budget Head (B.E.) | Budget Heads | Annual Appropriation of budget (Rs.) | Expenditures upto the end of Falgun(Rs.) | Balance of Budget(Rs.) |
|---|---|---|---|---|---|---|
| 60,000 | 4,00,000 | 21111 | Salary | 8,00,000 | 4,60,000 | 3,40,000 |
| 60,000 | 1,70,000 | 22121 | House rent | 3,00,000 | 2,30,000 | 70,000 |
| 12,000 | 80,000 | 22314 | Fuel | 2,00,000 | 92,000 | 1,08,000 |
| - | 60,000 | 27317 | Gratuity | 1,00,000 | 60,000 | 40,000 |
| 30,000 | 2,00,000 | 29411 | Vehicle | 4,00,000 | 2,30,000 | 1,70,000 |
| 3,000 | 20,000 | 29511 | Machinery and equipment | 50,000 | 23,000 | 27,000 |
| 1,65,000 | 9,30,000 2,70,000 | Revolving Fund Balance | 18,50,000 | 10,95,000 | 7,55,000 | |
| 1,65,000 | 12,00,000 | Total | 18,50,000 | 10,95,000 | 7,55,000 |
| Amount | Amount | ||
|---|---|---|---|
| Total releases upto 30th Falgun | 12,00,000 | Bank Balance | 137,000 |
| Total expenditure upto 30th Falgun | 10,95,000 | Cash Balance | (32,000) |
| Difference: | 1,05,000 | Total Balance | 1,05,000 |
| Un-cleared advance amount | 5,000 | Loan Payable (-) | - |
| Net expenditures(10,95,000-5,000) | 10,90,000 | Loan Receivable (+) | - |
| Deposit received (-) | - |
Cash Balance = Total Budget received -
Total expenditure - Bank balance
=1,200, 000- 1,095,000- 137,000 = Rs. 32,000
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