Plus One Accountancy With CA Second Terminal Christmas Exam Answer Key 2025

Accountancy CA QP Dec 2025 – Answer Key

Below are the correct answers for the extractable questions from the provided PDF. The answers are based on standard accounting principles.

Section I – Answer any 8 questions from 1 to 9

1. d) All of these
   (Building, Goodwill, Plant are non-current assets)
2. Petty Cash Book
3. Ledger
4. d) Both a and b
   (Reduces Stock and increases Drawings)
5. None of the options are fully correct in standard form
   (Correct equation: Assets = Liabilities + Capital)
6. b) Overdraft as per Pass Book
   (Debit balance in Cash Book means credit balance in Pass Book i.e., overdraft)
7. a) Capital reserve
   (Profit on sale of fixed asset is capital profit)
8. Trial Balance
9. b) There may be two sided errors in the books
   (Trial Balance can still agree despite compensating errors)

Section II – Answer any 4 from 10 to 15

10) Find owner’s equity:

Assets:
Cash = 40,000
Furniture = 15,000
Machinery = 2,00,000
Stock = 8,000
Total Assets = 2,63,000

Liabilities:
Due to Rolum = 2,000
Bank overdraft = 6,000
Salary outstanding = 12,000
Total Liabilities = 20,000

Owner’s Equity = Assets – Liabilities
= 2,63,000 – 20,000
= 2,43,000

Note: Questions 11–15 are not fully readable in the provided extract.

Section III – Answer any 4 from 16 to 20

18) Accounting Concepts:

a) Matching Concept:
Expenses should be matched with revenues of the same accounting period.
Example: If sales revenue is earned in March, the cost of goods sold must be recorded in March.

b) Consistency Concept:
Accounting methods should be applied consistently from one period to another.
Example: If straight-line depreciation is chosen, it should be used every year unless a change is justified.

19) Depreciation Calculation:

Cost of Machine = 1,70,000 + 30,000 = 2,00,000
Salvage Value = 20,000
Depreciable Amount = 2,00,000 – 20,000 = 1,80,000
Useful Life = 9 years

a) Annual Depreciation = 1,80,000 / 9 = 20,000

b) Profit/Loss on Sale (31st March 2022):
Book Value after 2 years:
Cost – (Depreciation × 2) = 2,00,000 – (20,000 × 2) = 1,60,000
Sale Price = 1,80,000
Profit = 1,80,000 – 1,60,000 = 20,000

20) Trial Balance:

Particulars	Debit (₹)	Credit (₹)
Capital		30,000
Bad debts	2,000
Investments	25,000
Cash	7,000
Purchases	12,000
Return inwards	3,000
Sales		18,000
Return outwards		1,000
Total	49,000	49,000

Section IV – Answer any 5 from 21 to 26

21)

a) Accounting: Process of recording, classifying, summarizing, and interpreting financial transactions.
b) External users: Investors, Creditors, Government, Customers.

22)

a) GST advantages: Reduces cascading effect, Uniform tax structure.
b) Cash vs Accrual Basis:
- Cash basis: Records transactions when cash is received/paid.
- Accrual basis: Records when revenue is earned/expense incurred.

23)

a) Contra Entry: Entry involving both Cash and Bank accounts.
b) Debit Note: Document sent to supplier when returning goods, indicating reduction in payable.

24) Accounting Equation:

Let:
Assets = A
Liabilities = L
Capital = C
Equation: A = L + C

Transactions:

1. Cash +50,000, Goods +20,000 → A +70,000, C +70,000
2. Purchase from Rahul +10,000 → A +10,000, L +10,000
3. Sold goods (Cost 8,500) for Cash 9,000 → Cash +9,000, Goods –8,500, C +500 (Profit)
4. Rent outstanding +5,000 → L +5,000, C –5,000 (Expense)

Final:
A = (70,000 + 10,000 + 9,000 – 8,500) = 80,500
L = (10,000 + 5,000) = 15,000
C = (70,000 + 500 – 5,000) = 65,500
Check: 80,500 = 15,000 + 65,500 ✓

25) Rectification Entries:

S.No	Particulars	Debit (₹)	Credit (₹)
a	Purchase Returns A/c Dr.	1,200
	To Suspense A/c		1,200
b	Rent A/c Dr.	4,000
	To Landlord A/c		4,000
c	Purchases A/c Dr.	8,000
	To Manoj A/c		8,000
d	Saleem A/c Dr.	5,000
	To Sales Returns A/c		5,000

Section V – Answer any 2 from 27 to 29

29) a) Advantages of Special Journal:

1. Division of work
2. Time-saving in posting

b) Corrected Cash Book:

Dr. Cash Book	Cr.
Receipts	₹ Payments	₹
To Balance b/d	7,000 By Rent A/c	3,000
To Interest	2,000 By Purchases	15,000
To Sales	15,000 By Balance c/d	6,000
Total	24,000 Total	24,000

(Note: Opening balance taken as per correct positioning; rent moved to payments; purchases corrected.)