Class 10 Optional-II Account Model Questions 2079 with Solutions.

Hello, and welcome to this latest post related to SEE Account Model Questions with Solutions Set-1. The questions and answers provided for preparing SEE Exams for Class 10 students are strictly based on latest syllabus and exam pattern, and the answers provided are easy to understand and are focused to the point. So, this post will be very fruitful for Exam preparing students or teachers assisting students for revision and practice. So, start practicing these model questions with answers to ace your upcoming SEE exam with confidence.

1. Write the full form of WTO.

World Trade Organization.

2. What is a bearer cheque?

A cheque is said to be a bearer cheque if the amount specified in the cheque is paid to anyone who presents the cheque into the bank for payment.

3. How is the net profit determined?

Net profit is determined by deducting administrative expenses, selling and distribution expenses and other nominal expenses from gross profit.

4. Which institution does the final audit of government offices?

The Office of the Auditor General does the final audit of the government offices.

5. Write the AGF number of Bank Cash Book and Statement of Expenditure.

The AGF numbers of the Bank Cash Book and Statement of Expenditure are 5 and 13 respectively.

6. What is Tippani? Mention any four points to be considered while drafting it.

A tippani is a written statement of facts, information, related rules and regulations which is prepared by lower level staff and submitted to the higher level for taking decisions.lt reaches to the level where final decision is taken.

Any four important points that must be considered while drafting Tippani are:

The subject or the topic of a tippani should be clearly mentioned.
Since a tippani is a means of communication, it must be simple and clear.
It should clearly state the related facts, information, rules and regulations in an orderly manner.
A tippani should include all the suggestions, opinions and recommendations of the concerned authorities etc.

7. What is filing? List out any four advantages and four disadvantages of numerical filing method.

Filing is the process of preserving valuable documents systematically and safely for future references. Filing helps to locate the needed file as and when required.

The main advantages of numerical filing method are as follows:

This method is useful for the organizations having large number of files.
This is suitable in those offices where numbers are more important than names.
It is flexible method. So addition and deduction of files do not create any technical difficulty.
It can maintain confidentiality since numbers are used.

The main disadvantages of numerical filing method are as follows:

It is not suitable for small organizations having few numbers of files.
Separate indices are required so it is more expensive and not suitable for small and medium Scale offices.
Since files are searched out with the help of index, it is time consuming.
It is more technical method. Hence, it may be difficult to understand and it.

8. Why is foreign trade necessary? Write any two similarities and dissimilarities of home trade and foreign trade.

Foreign trade is necessary for the fulfilment of the goods and services that is not produced in a country. It is an important means for maintaining the balance of payment between countries.

The similarities of home and foreign trade are as follows:

Buyer and seller are required in both the home trade and foreign trade.
Exchange of goods and services in return of money is essential in both trades.

The dissimilarities of home and foreign trade are as follows:

Home trade takes place within the national boundary, where as foreign trade takes place between two or more countries.
In home trade, payment is made in local currency but in foreign trade, payment is made in foreign Currency.

9. Prepare a trial balance of Nepal Store for the fiscal year 2063/064 based on the following particulars.

Particulars	Amount	Particulars	Amount
Capital	2,13,000	Salary	25,000
Purchase	75,000	Discount received	2,000
Sales	1,25,000	Stationery	5,000
Goodwill	45,000	Machine	1,90,000

Solution:

Trial Balance of Nepal Store

Trial Balance as on 31st Ashad 2064

Heads of Account	Debit RS	Credit RS
Capital	-	2,13,000
Purchase	75,000	-
Sales	-	1,25,000
Goodwill	45,000	-
Salary	25,000	-
Discount received	-	2,000
Stationery	5,000	-
Machine	1,90,000	-
Total	3,40,000	3,40,000

10. Prepare balance sheet of B & D Distributor on the basis of following particulars as on 31st Ashadh 2064.

Particulars	Amount	Particulars	Amount
Capital	1,75,000	Land	1,25,000
Investment	80,000	Accrued income	10,000
Bank Overdraft	30,000	Debtors	35,000
Net profit	40,000	Wages payable	5,000

Solution:

Balance Sheet of B and D Distributor

As on 31st Ashadh 2064

Capital and Liabilities	Amount	Assets	Amount
Capital..........1,75,000		Investment	80,000
Net profit.......40,000	2,15,000	Land	1,25,000
Bank Overdraft	30,000	Accrued income	10,000
Wages payable	5,000	Debtors	35,000
	2,50,000		2,50,000

11. From the following particulars, prepare profit and loss account to find out the net profit or net loss.

Particulars	Rs	Particulars	Rs
Gross Profit	1,00,000	Interest	3,000
Salary	25,000	Depreciation	6,000
Discount Received	2,000	Dividend received	5,000
Carriage out	7,000	Advertisement	12,000

Solution:

Profit and Loss Account of ....

For the year ended.....

Particulars	Rs	Particulars	Rs
To Salary	25,000	By Gross profit	1,00,000
To Carriage Out	7,000	By Discount received	2,000
To Interest	3,000	By Dividend received	5,000
To Depreciation	6,000
To Advertisement	12,000
To Net Profit c/d	54,000
	1,07,000		1,07,000

12. Highlight the necessity of New Accounting System and explain any of its three features in brief.

New accounting system is one of the most important instruments for controlling financial transactions and for the attainment of determined target of the government. 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.

Features of new accounting system are mentioned below:

Based on double entry system:

The new accounting system is based on the double entry system of book keeping, according to which, every financial transaction has two aspects i.e. debit and credit.

Emphasis on banking transactions:

This system has emphasized all the receipts and payments through bank accounts only. It has clearly stated that all the revenues collected must be deposited into bank and all payments to be made through cheque.

History of financial transactions:

The new accounting system provides history of financial transactions of Government offices. On the basis of given financial information, Government can prepare budget, plans, policies and make decisions.

13. Why is bank cash book prepared? What kind of effects are seen in which accounts of bank cash book while clearing excess expenditure rather than advance amount?

Bank Cash Book records all the cash transactions incurred in the government offices. It is designed to maintain control over the misuse of budget. It facilitates to sustain proper use of fund. It helps to prepare cash planning for future performance.

While clearing the advance if the actual expenditure exceeds the advance amount, the excess amount should be paid by the office. So, the effects are as follows:

Advance amount cleared should be recorded inside the bracket and actual expenditure incurred outside the bracket in budget expenditure column.
Advance cleared should be recorded on clearance side of advance column
Excess amount paid should be recorded on credit side of bank column. It reduces the bank balance.

14. Introduce bank and describe any six functions of commercial bank.

A bank is a financial institution that involves in exchange of money and other monetary business. The functions of commercial banks are discussed as follows:

Acceptance of deposit:

Commercial banks generate savings from people and organization by offering various kinds of deposit accounts such as saving account, current account and fixed deposit account. In saving deposit banks provide a certain rate of interest. In current account, Banks normally do not provide interest. However, in fixed deposit, banks provide a high rate of interest.

Advancing loan and investment:

Commercial banks offer various forms of loan, overdraft and credit to people and organizations to promote business activities. These activities involve industry, trade, commerce, agriculture, tourism, imports, exports and other service sectors. They also help the government in times of need to finance government deficits.

Creation of credit:

Commercial banks supply money in loan to traders and manufacturers. Generally, when a commercial bank grants loan to its customer, it does not pay in cash. It simply credits the account of the borrower. The borrower can withdraw the amount by cheques whenever he requires.

Financing foreign trade:

Commercial banks provide loan and letter of credit facilities to the merchants and industries involved in foreign trade. They issue guarantee on behalf of the local trader in foreign trade and work as the guarantor in regard to financial status of the clients whenever needed.

Remittance of funds and dealing with foreign exchange:

Commercial banks facilitate the remittances from foreign countries. They help in transferring funds from one country to another and deal with foreign exchanges as permitted by central bank.

Agency service:

Commercial banks provide agency services to the customers. They are involved in collection of cheques of other banks, collection of interest and dividend from other organization, payments of electricity and telephone bills, and discount bills of exchange and promissory notes on behalf of clients.

15. Prepare Goswara Voucher (AGF No. 10) on the basis of following transactions of District Irrigation Office, Sarlahi.

a	. On 2064/4/10	Received bank order of Rs. 3,00,000 as revolving fund.
b	On 2064/4/14	Rs. 10,000 paid for furniture purchase through cheque No. 00245.
c	On 2064/4/17	Senior Clerk Miss Rita Giri was paid an amount of Rs. 4,000 for program travelling expenses in advance.
d	On 2064/4/20	Established a petty cash fund of Rs. 500.
e	On 25th of Shrawan, the advance received by Senior Clerk Rita Giri was cleared according to the statement submitted by her and the excess expenditure of Rs. 500 was paid by cheque No. 00248.

Government of Nepal