Q.Following is the Receipts and Payments Account of Kanpur Seva Hospital for the year ended on 31st December, 2019: Receipts and Payments Account
Receipts | Amount (Rs.) | Payments | Amount (Rs.)
Cash balance (on 1st January, 2019) | 60,300 | Salary of Nurses | 19,680
Subscription | 33,450 | Food, Washing etc. | 11,400
Interest | 1,140 | Rent and Tax | 6,000
Donation for building fund | 46,800 | Cost of Car | 60,000
Government grants | 30,000 | Car expenses | 25,200
Fees from non-members | 8,100 | Medicine expenses etc. | 20,100
| | Cash Balance | 37,410
Total | 1,79,790 | Total | 1,79,790 Hospital owns land for Rs. 2,40,000. Rs. 3,000 of building fund is deposited in Subscription Account by mistake. Medicine purchase for Rs. 3,870 is unpaid. Salaries of Nurses for Rs. 1,320 is outstanding. Prepare an Income and Expenditure Account of the hospital for the year ended on 31st December, 2019 and its Balance Sheet as on that date. (5+5)

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1. CBSE 2026Set ANNUAL1 mark
   Q.State whether True or False: Financial statements are prepared on a particular date.

   ›Reveal solutionSolution

   The statement is True in respect of the Balance Sheet.

   The Balance Sheet is a statement of assets, liabilities and capital as on a particular date (the last day of the accounting period). In this sense financial statements are prepared on a particular date. (The Statement of Profit & Loss …

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2. CBSE 2026Set ANNUAL1 mark
   Q.Answer in one word/sentence: Financial statements ignores which aspect?

   ›Reveal solutionSolution

   Answer: Qualitative (non-monetary) aspects.

   Financial statements record only those facts that can be expressed in money (money-measurement concept). They ignore qualitative or non-monetary factors - such as the skill of management, employee morale, and customer s …

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3. CBSE 2026Set ANNUAL1 markMCQ
   Q.Which of the following is not a salient feature of a computerised accounting system?

   (a) Simple and integrated

   (b) Accuracy and speed

   (c) Complex

   (d) Transparent

   (a) Simple and integrated

   (b) Accuracy and speed

   (c) Complex

   (d) Transparent

   ›Reveal solutionSolution

   'Complex' is NOT a salient feature of a Computerised Accounting System.

   A Computerised Accounting System (CAS) is designed to make accounting work easier, faster, and more reliable than manual bookkeeping. Its genuine salient features include:

   1. Simple and Integrated — a single data entry (voucher) automatically updates all related books of account (ledger, trial balance, financial statements) — this is INTEGRATION, and the system is meant to be simple to operate, not complicated.
   2. Accuracy and Speed — computations (totals, balances, ratios) are done by the software itself, eliminating manual calculation errors and producing reports quickly.
   3. Transparency — any authorised user can view/verify any transaction and trace it to its source, improving reliability and audit-readiness. …

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4. CBSE 2026Set ANNUAL1 markMCQ
   Q.Which command reverses the last action performed in the spreadsheet?

   (a) CUT

   (b) UNDO

   (c) REDO

   (d) DELETE

   (a) CUT

   (b) UNDO

   (c) REDO

   (d) DELETE

   ›Reveal solutionSolution

   UNDO reverses the last action performed in a spreadsheet.

   In an electronic spreadsheet (such as MS Excel), several edit commands help manage changes made to a worksheet:

   • UNDO (Ctrl+Z) — reverses/cancels the most recently performed action, restoring the worksheet to its state just before that action. Most spreadsheet programs allow undoing multiple recent steps, not just one.
   • REDO (Ctrl+Y) — reverses an UNDO, i.e. re-applies the action that was just undone.
   • CUT (Ctrl+X) — removes the selected content from its current location and places it on the clipboard, for pasting elsewhere. …

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5. CBSE 2026Set ANNUAL1 mark
   Q.What is the shortcut key to select the entire worksheet?

   ›Reveal solutionSolution

   Ctrl + A selects the entire worksheet.

   In electronic spreadsheet software (such as MS Excel), several keyboard shortcuts speed up selection and navigation. To select the ENTIRE worksheet (every cell currently in use, or the whole sheet if pressed from an empty area):

   Shortcut: Ctrl + A

   • If the active cell is within a continuous range of data, pressing Ctrl+A once selects that entire data range (a 'Select All' within the contiguous block); pressing it a second time extends the selection to the whole worksheet. …

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6. CBSE 2026Set ANNUAL1 mark
   Q.Which function is used to calculate depreciation using the straight line method in Excel?

   ›Reveal solutionSolution

   The SLN() function calculates straight-line depreciation in Excel.

   Spreadsheet programs such as MS Excel provide built-in financial functions to calculate depreciation using different methods. For the straight-line method (where the same amount of depreciation is charged every year over the asset's useful life), the function used is:

   SLN(cost, salvage, life)

   where:

   • cost = the original purchase cost of the asset
   • salvage = the estimated value of the asset at the end of its useful life (scrap/residual value)
   • life = the number of periods (years) over which the asset is being depreciated

   The function computes a constant annual depreciation = (cost − salvage) / life, and returns the same value for every period.

   …

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7. CBSE 2026Set ANNUAL1 markMCQ
   Q.Or. Which of the following statements shows the financial position of a company?

   (a) Income statement

   (b) Cash flow statement

   (c) Balance Sheet

   (d) All of the above

   ›Reveal solutionSolution

   The Balance Sheet alone shows a company's financial position (assets, liabilities, and equity as on a date) — the Income Statement shows performance, and the Cash Flow Statement shows cash movement, neither of which is "position."

   Each financial statement serves a distinct purpose:

   • Income Statement (Statement of Profit & Loss) — shows the financial performance/results of operations over a period of time (revenue earned, expenses incurred, net profit or loss).
   • Cash Flow Statement — shows the movement of cash (inflows and outflows) over a period of time, classified into operating, investing, and financing activities. …

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8. CBSE 2026Set ANNUAL1 mark
   Q.State one limitation of financial statement of a company.

   ›Reveal solutionSolution

   Financial statements show only monetary facts, so they cannot capture important non-monetary/qualitative aspects of a business.

   Financial statements (the Balance Sheet and Statement of Profit & Loss) are prepared strictly on the money measurement concept — only those transactions and events that can be expressed in terms of money are recorded. This gives rise to several genuine limitations; one important one is:

   Ignore Qualitative Elements: Financial statements completely leave out important factors that have no direct monetary measure but can significantly affect the firm's real worth and future performance — for example:

   • the skill, efficiency, and morale of employees and management,
   • the quality of customer relationships and brand reputation,
   • market conditions and competitive position,
   • the loyalty and satisfaction of customers.

   A company could have excellent financial ratios on paper while its management is weak or its workforce is demoralised — and the financial statements alone would never reveal this.

   …

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9. CBSE 2025Set 67/4/11 markMCQ
   Q.(a) The tool of 'Analysis of Financial Statements' which indicates the trend and direction of financial position and operating results is : (A) Ratio Analysis (B) Cash Flow Analysis (C) Common Size Statements (D) Comparative Statements

   (OR)

   (b) While preparing Common Size Statement of Profit and Loss of a company, each item is expressed as a percentage of _________. (A) Revenue from operations (B) Total liabilities (C) Total expenses (D) Total assets

   ›Reveal solutionSolution

   Part (a): (D) Comparative Statements. Part (b): (A) Revenue from operations.

   Part (a)

   Comparative statements set out each item for two or more periods with the absolute and percentage change, revealing the trend and direction of both financial position (Balance Sheet) and operating results (Statement of Profit & Loss). Ratio analysis, cash flow analysis and common-size statements each serve other purposes and do not, on their own, show period-over-period trend and direction. …

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10. CBSE 2025Set MARCH1 markMCQ
    Q.Which of the following is not required to be prepared under the Companies Act?

    (a) a) Fund flow statement

    (b) b) Balance sheet

    (c) c) Report of directors and auditors

    (d) d) Statement of profit and loss

    ›Reveal solutionSolution

    A Fund Flow Statement is NOT required under the Companies Act. Correct option: (a).

    Under the Companies Act, 2013 every company must prepare and present a Balance Sheet, a Statement of Profit and Loss, and the Board of Directors' report along with the Auditors' report; a Cash Flow Statement is also required for most companies. A Fund Flow St …

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11. CBSE 2025Set MARCH1 mark
    Q.Cash flow statement also helps in ________ of cash flows.

    ›Reveal solutionSolution

    A cash flow statement helps in PLANNING of cash flows (short-term financial planning).

    By classifying cash movements into operating, investing and financing activities, the cash flow statement reveals where cash came from and where it went. This makes it a powerful tool for short-term financial planning: management can forecast future inflows and outflows, a …

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12. CBSE 2025Set ANNUAL1 markMCQ
    Q.An annual report is issued by a company for (A) Directors (B) Management (C) Shareholders (D) Auditors

    ›Reveal solutionSolution

    A company's annual report communicates its yearly performance and financial position to the owners of the company, who are the shareholders. Hence the answer is (C) Shareholders.

    The annual report contains the financial statements (Balance Sheet and Statement of Profit and Loss), the directors' report, the auditor's report and other disclosures. For the BSEB Inter / Bihar Class-12 Accountancy syllabus:

    • The shareholders own the company but do not run it day to day; management runs it on their behalf. …

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