CS CSEET October 2026 Question Paper Fundamentals of Accounting

FOR CS CSEET EXAM PREPARATION

CS CSEET 2026
Question Paper ·
Fundamentals of
Accounting
EXAM YEAR TYPE SUBJECT

CS CSEET 2026 Question Paper Fundamentals of Accounting
DATE

October 2026

Notes · Sample Papers · Previous Year Papers · Mock Tests

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Roll No. ..................................... :1:

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Time allowed : 3 hours
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Maximum marks : 100
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Total number of questions : 8 Total number of printed pages : 12

NOTE : Question No. 1 is compulsory. Attempt any five questions from Q. No. 2 to

Q. No. 8.

1. The trial balance of Raj & Co. as on 31st March 2026 is as follows :
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Particulars Dr (`) Cr (`)

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Sales
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Purchases 248000

Sales Return 25000

Purchase Return 18000

Opening Stock 28000
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Drawings 18000
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Wages 43000
a Salaries 56000

Rent & Taxes 30000

General Expenses 22000
2/2026/FA P.T.O.

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Bills Receivable 25000

Bills Payable 33000

Creditors 162000

Debtors 192600

Cash 42000

Furniture 140000

Plant and Machinery 310000

Provision for bad debts 5600

12% Loan (1st December 2025) 50000

Audit fees 6400

Miscellaneous Receipts 51200

Total 1186000 1186000

(i) Stock on 31st March, 2026 was valued at ` 35,000.

(ii) Goods costing ` 2,500 were given to staff free of cost while goods costing ` 1,500
were taken by the proprietor for personal use.

(iii) Provide depreciation on Furniture @ 10% p.a. and on Plant and Machinery 20%
p.a.

(iv) Interest accrued but not received ` 4,800.

(v) Outstanding salary amounts to ` 7,500.

(vi) Included in general expenses is Insurance premium of ` 3,800 paid in advance for
the next year.

2/2026/FA Contd. ........

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(vii) Provision for doubtful debts is to be maintained @ 5%.
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(viii) Goods costing 4,500 were destroyed by fire and insurance company admitted a claim

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for 3,500. Claim amount was received on 10th April, 2026.

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Prepare Trading and Profit and Loss Account for the year ended 31st March, 2026 and

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Balance Sheet on as that date.

(20 marks)

2. (a) From the following summary of cash transaction of FT Hospital for the year ended
31st December 2025, prepare Income & Expenditure Account and Balance Sheet
as on that date :

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Receipts & Payment Account for the year ended 31st December 2025
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Amount (`) .Payment
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Receipts Amount (`)

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To Balance b/d 18,560

Cash 800 a By Hospital Equipment 7,500

Bank 8360 9,160 By Rent & Taxes 6,500

To Government Grants 5,000 By Office Expenses 4,000

To Subscription By Investment 8,000

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2024 1,580 By Balance c/d
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c. o 2025 15,500 Cash
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2026 1,250 18,330 Bank 4,480

ag To Donation 4,500

To Fees 12,050

49,040 49,040

2/2026/FA P.T.O.

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(i) Government Grants pertains to maintenance.

(ii) Donations are not to be capitalized.

(iii) Salaries include ` 2,600 for the year 2024.

(iv) Value of equipment on 31-12-2025 : ` 18,500

(v) Subscription outstanding as on 31-12-2024 is ` 2,250

(vi) Investment is made in 9% government securities were made on 1st June 2024.

(b) Draft a Trial Balance from the following ledger balances as on 31st March, 2026 :

Particulars Amount (`)

Return Outwards 14,000

Provision for doubtful debts 2,000

Debtors 80,000

Opening Stock 35,000

Carriage Outward 10,000

Salaries 22,000

Capital 3,70,000

Premises 1,90,000

Bank Balance 65,000

Sales 1,55,000

Purchases 99,000

2/2026/FA Contd. ........

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Drawing 40,000

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Cash in hand 2,000
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Bank overdraft 10,000
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Loan to friend 11,000

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3. (a) On 1st October, 2022, Rupa Rice Mill purchased a second-hand machine for ` 2,80,000

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and spent ` 20,000 on its installation.

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On 1st July 2023 additional machinery costing ` 1,00,000 was purchased.
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On 30th September, 2025, the machinery purchased on 1st October 2022 was sold

for ` 1,40,000.

The books are closed 31st March every year and depreciation is charged 10% p.a.

on the written down value.
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Prepare Machinery Account for four accounting years ending 31st March, 2026.

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a (b) Which are the three fundamental accounting assumptions ? Explain these accounting

assumptions with examples.

(2+6=8 marks)

2/2026/FA P.T.O.

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4. (a) Prepare Cash Book with Bank Column of Gurpreet from the following transactions :

2026

April 1 Cash in Hand ` 2,10,000

Cash at Bank (Overdraft) ` 30,000

April 2 Cash purchase of ` 20,000 less trade discount 10%

April 3 Deposited in Bank ` 55,400

April 9 Paid wages ` 10,000

April 9 Paid rent ` 6,000

April 13 Goods purchased against cheque ` 45,000

April 14 Paid Salary by cheque ` 15,000

April 18 Withdrawal from bank for paying income tax ` 2,000

April 20 Interest collected by bank ` 4,000

April 22 Sold old furniture for ` 1,500 in cash

April 25 Raju who owed ` 4,000 became bankrupt and paid 60 paise in a rupee
in cash

April 30 Bank charges ` 1,500

(b) Classify the accounts into personal, real and nominal accounts along with reasoning
of classification :
(i) Outstanding Salary
(ii) Patents
(iii) Carriage inward

2/2026/FA Contd. ........

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(iv) Bank Overdraft
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(v) Suresh & Co.
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(vii) m Machinery
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(viii)
a (8 marks)

5. (a) Micromax Ltd. issued 3,00,000 Equity Shares of ` 10 each and the amount was
payable as follows :

On application 3 per share,

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On allotment 3 per share,

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First and final call 4 per share and
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Applications were received for 2,90,000 shares. Babloo, who was allotted 10,000
shares failed to pay the allotment and the call money. His shares were forfeited.

Pass Journal entries to record the above transactions in the books of Micromax Ltd.

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c. o (b) Prepare Bank Reconciliation Statement from the following particulars as on
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Balance as per Cash Book (Dr.) ` 25,000
Cheques issued but not yet presented ` 5,000
Cheques deposited but not yet cleared ` 4,000
Bank charges not entered in Cash Book ` 200

2/2026/FA P.T.O.

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Cash book overcast by ` 1,000 (Debit side)
A direct deposit into bank of 3,000 by client, was not recorded in the Cash Book.
Interest credited by bank not entered ` 500
Insurance Premium ` 1,200 paid by bank not recorded.

6. (a) On 31st March, 2026 the following was the Balance Sheet of A and B who were
equal partners :

Balance Sheet

Liabilities Amount (`) Assets Amount (`)

Capital A/c’s Furniture and Fittings 9,500

A 35,000 Land and Buildings 20,000

B 20,000 55,000 Stock 32,710

General Reserve 10,000 Debtors 11,000

Sundry Creditors 8,940 Less : Provision for

bad debts 220 10,780

Cash 950

73,940 73,940

On 1st April 2026, C was admitted as a partner on the following terms :

(i) A, B and C share profits and losses in the ratio 4 : 3 : 2 respectively.
(ii) Prior to C’s admission appreciation of ` 15,000 in the value of land and buildings
would be recorded and provision for bad debts would be brought up to
` 820.
(iii) C would bring ` 20,000 in cash as his capital.

2/2026/FA Contd. ........

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Prepare :

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(a) Revaluation Account
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(c) Balance Sheet of firm immediately after C’s admission.
a (10 marks)

(b) XYZ Sports Club has the following subscription details for 2025-26 :

• Subscriptions received during the year : ` 1,50,000

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• Outstanding subscriptions :

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Opening (1 April 2025) : ` 5,000

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Closing (31 March 2026)
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Subscriptions received
Opening (1 April 2025) : ` 3,000
Closing : (31 March 2026) ` 2,000
Calculate the amount of subscription to be credited to the Income & Expenditure
Account.

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Journalise the following transactions :

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ag (i) Started business with cash ` 50,000
(ii) Sold goods on credit to Ram ` 15,000
(iii) Purchased goods for cash ` 20,000

(iv) Amount transferred to fixed deposit ` 50,000 from bank account

2/2026/FA P.T.O.

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(v) Sold household furniture for ` 7,000 and the proceeds were invested into

the business

(vi) Goods costing ` 5,000 was given as charity

(vii) Goods destroyed by fire–cost price ` 10,000c

(viii) Salaries due to staff at year end ` 30,000.

(b) Timber Ltd. took over the assets worth ` 6,00,000 and liabilities of ` 80,000 of

Zenith Ltd. for an agreed purchase consideration of ` 5,40,000 to be statisfied by

the issue of 10% Debentures of ` 100 each.

Pass necessary Journal entries in the books of Timber Ltd. considering the following

options :

(i) Such debentures are issued at par

(ii) Such debentures are issued at 10% discount

(iii) Such debentures are issued at 20% premium.

(4 marks)

(c) State the advantages of Limited Liability Partnership (LLP) form of organization.

(4 marks)

2/2026/FA Contd. ........

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8. (a) The following errors were detected in the books of BYK and Co. after preparation

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of its trial balance :

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book.

(ii) Sales day book was undercast by ` 2,500.

(iii) A credit purchase of ` 1,400 from Suresh was passed in the purchase day
book as ` 14,000.

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(iv) Rent paid ` 1,500 wrongly debited to furniture account.

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Sold goods worth ` 2,800 .on credit to Prakash but was wrongly debited
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to Umesh’s account. s
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(vi) Recovery of badadebt amounting to 900, which was earlier written off, now

credited to debtors account.

(vii) Sale to Ram ` 5,000 posted to his account as ` 500.

(viii) Purchase of stationery ` 2,000 wrongly entered in purchase account.
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Pass the journal entries to rectify these errors.

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a (b) Which are the four components of Financial Statements ?

(4 marks)

2/2026/FA P.T.O.

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(c) From the following particulars, prepare proprietor’s capital account :

Particulars Amount (`)

Capital introduced 60,000

Drawings made by him 12,000

Further Capital introduced 50,000

Profit for the period 15,000

(4 marks)

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2/2026/FA Contd. ........

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