Level I

ǪUESTION PAPER-2
Course for Accountants of Panchayats (Main Examination)

Time Allowed: 3 Hours Maximum Marks: 100

General Instructions:

1. This Question paper contains - four sections A, B, C, and D. Each section is compulsory.
However, there are internal choices in sections B & C.
2. 15 minutes of additional time will be given to the candidates to read this question paper
before the commencement of the exam. During this time the candidates will be permitted to
read the question paper only but during this time, candidates will not be allowed to write
anything on answer sheets.
3. In case, any candidate answers extra question(s)/sub-question (s) over and above the
required number. Only the requisite number of questions first answered in the answer
book shall be valued and subsequent extra question(s)answered shall be ignored.
4. Section A: 25 Marks (25 MCQ questions carrying 01 marks each.)
5. Section B to D – Practical Questions (75 Marks): -
a) Section B: 20 Marks (5 questions to be asked, out of which Attempt any 4
questionswould be compulsory to answer, each worth 5 marks).
b) Section C: 30 Marks (3 questions to be asked, out of which Attempt any 2
questionswould be compulsory to answer, each worth 15 marks).
c) Section D: 25 Marks: One 25 Marks compulsory question (on Preparation of
FinancialStatements)
Section A

The following questions are multiple -choice questions with one correct [Link]
question carries 1 mark. There is no internal choice in this section.

Multiple Choice Ǫuestions (MCǪs)

1. Which constitutional amendment is associated with the introduction of the

Panchayati Raj system in India?
a) 42nd Amendment
b) 44th Amendment
c) 73rd Amendment
d) 86th Amendment

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2. What is the role of Panchayat Samiti in the Panchayati Raj system?
a) Village-level governance
b) Coordination of development programs at the block level
c) State-level policy making
d) National defense planning
3. In the Panchayati Raj system, who is responsible for the sanitation and public
health of the village?
a) Gram Sabha
b) Panchayat Samiti
c) Gram Panchayat
d) Zila Parishad
4. Which of the following is the correct hierarchical structure of the Panchayati Raj
system in India?
a) Gram Panchayat, Panchayat Samiti, Zila Parishad
b) Panchayat Samiti, Gram Panchayat, Zila Parishad
c) Zila Parishad, Gram Panchayat, Panchayat Samiti
d) Gram Panchayat, Zila Parishad, Panchayat Samiti
5. Which of the following is a major focus area of the Ministry of Panchayati Raj
(MoPR)?
a) Industrial development
b) Urban infrastructure
c) Capacity building and training of elected representatives of Panchayats
d) Foreign trade policy
6. The Ministry of Rural Development (MoRD) is tasked with improving rural
infrastructure through which of the following programs?
a) Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
b) Pradhan Mantri Awas Yojana (Urban)
c) Pradhan Mantri Gram Sadak Yojana (PMGSY)
d) Smart Cities Mission
7. An employee's gross salary is ₹18,000. The statutory deductions are 12% for PF
and 2% for Professional Tax. What is the net salary payable to the employee?
a) ₹15,840
b) ₹16,200
c) ₹15,840
d) ₹17,280

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8. The balance as per the cash book on February 28, 2023, is ₹90,000. There are
bank charges of ₹1,000 not recorded in the cash book, and a cheque of ₹5,000
deposited but not yet credited by the bank. What is the balance as per the
passbook?
a) ₹86,000
b) ₹89,000
c) ₹91,000
d) ₹94,000
9. Which document is essential for the reconciliation of Panchayat accounts under
the Model Accounting System?
a) Cash Flow Statement
b) Balance Sheet
c) Bank Reconciliation Statement
d) Income Statement
10. When was the E-GramSwaraj portal launched?
a) 2015
b) 2017
c) 2019
d) 2020
11. In the Model Accounting System for Panchayats, which functional code
represents environmental conservation activities?
a) 400
b) 102
c) 1000
d) 800
12. Which of the following is NOT a functional area typically covered by functional
codes in PRIs?
a) Education
b) Healthcare
c) Infrastructure development
d) Private sector investment
13. Which document provides detailed information on the functional codes used by
PRIs?
a) Census Report
b) Model Accounting System for Panchayats
c) Annual Financial Statement
d) D) State Budget Report
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14. E-Gram Swaraj facilitates online administration, record-keeping, and decision-
making processes within Panchayats.
a) True
b) False
15. What type of reports can PRIASoft generate for PRIs?
a) Environmental reports
b) Financial statements, such as Balance Sheet, Income & Expenditure, and
Receipts & Payments
c) Health statistics reports
d) Educational performance reports
16. What is PRIASoft?
a) A tax collection tool
b) A software for accounting and financial management in Panchayati Raj
Institutions
c) An educational software for rural schools
d) A software for agricultural management
17. What is the primary objective of the Gram Panchayat Development Plan (GPDP)?
a) To centralize rural governance
b) To empower Gram Panchayats in planning and execution of development
programs
c) To increase urban infrastructure
d) To regulate agricultural exports
18. How does PFMS contribute to the Direct Benefit Transfer (DBT) scheme?
a) By issuing physical checks to beneficiaries
b) By enabling electronic fund transfers directly to beneficiaries' bank accounts
c) By setting up beneficiary helplines
d) By managing physical distribution of funds
19. Which of the following is NOT a feature of PFMS?
a) Real-time fund tracking
b) Budget allocation
c) Beneficiary tracking
d) Weather forecasting
20. Which function of PFMS involves managing and controlling all financial
payments within the government's financial system?
a) Fund tracking
b) Accounting of receipts
c) Payment & Exchequer Control
d) Compilation of accounts

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21. Which body typically oversees the data collection and management process for
the National Asset Directory at the district level?
a) District Collector’s Office
b) Ministry of Commerce
c) State Election Commission
d) Ministry of Finance
22. Which technological tool is commonly used to update and manage the National
Asset Directory?
a) Blockchain
b) Geographic Information System (GIS)
c) Quantum computing
d) 3D printing
23. Which Finance Commission made recommendations specifically for rural and
urban local bodies including PRIs?
a) XIV Finance Commission
b) XV Finance Commission
c) XVI Finance Commission
d) XVII Finance Commission
24. Can the XV Finance Commission grants be used for short-term market
borrowings orstate development loans?
a) Yes
b) No
c) Only with Union Government approval
d) Depends on the state's financial situation
25. Tax deduction shall be made if –
a) A contract is for an amount exceeds Rs 25 lakh.
b) A supplier supplies goods or services or both exceeding Rs 2.5
lakh under acontract
c) A recipient receives goods or services or both exceeding Rs 2.5 lakh
in a year from various contractors.
d) None of the above

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 Section B
Candidates are required to answer any Four questions from the remaining five
questions, each carrying 5 marks.

Ǫuestion 1
From the following particulars, prepare a Bank ReconciliationStatement for
Panchayat Chomu:
(1) Balance as per cash book is Rs. 2,40,000
(2) Cheques/DD credited into Bank but not considered in cash book Rs. 24,000
(3) Cheques issued but not presented in the bank amount to Rs. 1,36,000
(4) Cheque drawn but pending to be delivered to the parties Rs. 6,000
(5) Cheques deposited in bank but not yet cleared amounts to Rs.90,000
(6) Cheque deposited into bank got dishonored, not updated in cash
book10,000.
(7) The bank charges amount to Rs.1000.

(8) Interest credited by the bank amounts to Rs. 9,000.

(9) The balance as per the passbook is Rs. 3,14,000.
(5 Marks)
Answer:

Bank Reconciliation Statement of Panchayat Chomu, for the month of ….

Particulars Amount (Rs.)

Balance as per Cash Book (A) 2,40,000
A. Add
i) Cheques/Cash credited directly into the Bank/Treasurybut
24,000
not taken into the Cash Book
ii) Details of Cheque etc. issued by PRIs but not yetencashed in 1,36,000
Bank/ Treasury
iii) Cheque drawn but not delivered to the parties 6,000
iv) Bank interest not credited into cash book 9,000
Sub-total (B) 1,75,000
B. Deduct
i) Cheques deposited in bank but not yet cleared 90,000
ii) Cheque received from parties and deposited into bankbut 10,000
dishonoured
iii) Bank charges deducted from bank balance but not takeninto
1,000
Cash Book
Sub-total (C) 1,01,000
Closing balance as per Cash Book (A+B-C) 3,14,000
Balance as per Bank/Treasury as intimated 3,14,000
Amount of Difference (if any) -

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Question 2
Panchayat “Z” has provided some of its financial information for the current year. Please prepare
Receivable and Payable register from the below information:

Receivable: Demand for Tax on Profession during the year is Rs. 12,00,000 and for TradeTax is
Rs. 5,00,000. Collection of Profession tax and trade tax during the year is Rs. 10,00,000 and Rs.
2,00,000 respectively.

Payables: Expenditure incurred for Maintenance & Repair during the year is Rs. 2,50,000 and
for hiring of Tent House for Panchayati Raj programmes is Rs. 75,000. Payment made against
Maintenance & Repair during the year is Rs. 1,50,000 and for the Tent House Rs. 25,000
respectively.
(5 Marks)

Answer:

Statement of Receivable and Payable of Panchayat Z at the end of Year 23-

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Receivable Payable
Head of Accounts Particulars Amount Head of particulars Amount
(Rs.) Accounts (Rs.)
0028 Tax on Receivable 2,00,000 Mainte Payables to 1,00,000
Professions, from 205 nance for
Trade- Profession 9 of Maintenan
Trade Tax Tax Comm ce &
(12,00,000- unity Repairs
10,00,000) Assets (2,50,000-
1,50,000)

0028 Tax on Receivable 3,00,000 Pancha Payables to 50,000

Professions, from Trade 251 yati Raj the Tent
Trade- Tax 5 Progra House
Trade Tax (5,00,000- mmes against
2,00,000) supplies
(75,000-
25,000)

Grant Total 5,00,00 1,50,000

0

Question 3: Grant Utilization for Sanitation Project

The Panchayat receives a grant of Rs.60,000 specifically allocated for a sanitation project. The
entire grant is utilized for constructing public toilets. How these transactions are to be recorded in
the Panchayat accounts? (5 Marks)

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Answer:
For receiving the grant for the sanitation project:Ledger Account: Sanitation Project Grant
Debit: Rs.60,000 (Increase in Assets – Cash or Bank) Credit: Rs.60,000 (Increase in Liabilities -
Funds Received)For expenditures on the sanitation project:
Ledger Account: Sanitation Project ExpensesDebit: Rs.60,000 (Increase in Expenses)
Credit: Rs.60,000 (Decrease in Assets - Cash or Bank)
This entry ensures proper tracking of funds allocated for the sanitation project.

Question 4
R Gram Panchayat of Madhy Pradesh furnishes the following informationrelated to
transactions during the month of February 2024:

1. The Gram Panchayat has collected money for property tax which includes watertax as
well and the bifurcation of the same is given below:
Date Particulars Amount (in Rs.)
10.02.2023 Property Tax received 1,000
12.02.2023 Water Tax received 4,500
28.02.2023 Advance collection of Property Tax 1,500
28.02.2023 Penalties for late payment of Taxes 2,000
2. Opening Balance of cash as on 1st February - Rs.12,750.
3. Rs.10,500 incurred on maintenance of sewerage line in panchayat judication area dated
28.02.2024.

Please prepare Cash book for the February Month incorporating above transactions.
(5 Marks)
Answer:
R Panchayat
Cash Book (Own Source) for the month of February 2024
Amount in Rs.
Receipt Payment
Date Particulars Amount Date Particulars Amount
01.02.2023 Opening Balance 12,750 28.02.202 Maintenanceof 10,500
3 Sewerage line
10.02.2023 Collection of 1,000
property tax
12.02.2023 Collection of 4,500
Water tax
28.02.2023 Advance 1,500
collection of
property tax
28.02.2023 Collection of 2,000 28.02.202 Balance 11,250
Penalties for late 3 Carried
payment of forward to
Taxes next month

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 Total 21,750 21,750

Question 5
The following details are furnished regarding the movable properties of Talod Gram
Panchayat –

The Gram Panchayat purchased 2 Tempo Travellers on 1st April 2021 by the order no. 2020-
21/0040 dated 5th January 2021. The tempo travellers are in good situation and being used as
local public transport. The tempo was valued at Rs. 3,50,000 each at the beginning of the year
2022. As per the rules, depreciation was charged at the rate of 10% p.a.

Prepare a register of Movable Property for the year ending March 2023 with the details
provided above. (5 Marks)
Answer
Register of Movable Property of Talod Gram
Panchayat for the year ending March 2023

Date of
acquisition, Revaluation
purchase, No. and date of orders Whether the if any, the
construction under which the property Description property is used Valuation date and Depreciation
Sl received on was acquired, purchased, and for any at the actual as per rules
No. transfer constructed/transferred situation of purposes beginning amount of
property of the year revaluation
(as per
Rules
2 Tempo
Travellers Rs. Rs. 70,000
Order No. 2020-21/0040, properly Local Public 7,00,000 (Rs. 35,000
1 1st April dated 5th January 2021 working Transportation (Rs. - each)
2021 3,50,000
each)

Initials of
Valuation of at Reasons /authority Amount realized competent
the end of the Whether for disposal on disposal authority Remarks
year disposed

Rs. 6,30,000
(Rs. 3,15,000 No - - - -
each)

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 Section C

 Candidates are required to answer any Two questions from the remaining
Three questions, each carrying 15 marks.

Question 6.
Answer the following questions:
(a)Prepare Receipts & Payment account from the following information
regarding thereceipts & payments of “S” Panchayat for the year ended 31st
March, 2024.
a) Received Grant of Rs.75,000 for water supply project and spends
Rs.60,000forit.
b) Paid to auditors Rs.2,50,000
c) Received income from investments Rs.25,500
d) Received Grant of Rs.80,000 earmarked for education related activities
andspend Rs.55,000 on building classrooms.
e) Incurred Rs.40,000 on maintenance during the year.
f) Cash & bank balance on 1st April were Rs.1,00,000 & 2,50,000 respectively.
g) Cash & bank balance on 31st March is Rs.85,000 & 40,500 respectively.

(8 Marks)
Answer (a):
Receipts & Payment account of “S” Panchayat
for the period from 1st April 2023 to 31st March 2024

Receipts Amount Payments Amount

(Rs.) (Rs.)
To Balance b/d By water supply project 60,000
Cash in HandCash at 1,00,000 expenses
bank 2,50,000
To Grant for Water supply 75,000 By Audit expenses 2,50,000
project
To Income fromInvestments 25,500 By Classroom Construction 55,000

To Grant for Educational 80,000 By Maintenance expenses 40,000

activity
By Balance c/d
Cash in HandCash 85,000
at bank 40,500
5,30,500 5,30,500

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 (b) From the following ledger balances, prepare a trial balance of “T”
Panchayat as on 31st March 2024: (7 marks)

Account Head Amount (Rs.)

Cash in Hand 45,000
Cash at bank 5,00,000
Salaries 2,00,000
Furniture 80,000
Computers 1,50,000
Investments 1,25,000
Property Tax 5,00,000
Skill Development Program Expenses 50,000
Contractor Dues 3,80,000
Earmarked Fund 3,00,000
Maintenance Expenses 30,000

Answer (b):
Trial Balance of P Panchayat as at 31.03.2024
Sl. Name of Account Debit (Rs.) Credit (Rs.)
No.
1. Cash in hand 45,000
2. Cash at bank 5,00,000
3. Salaries 2,00,000
4. Furniture 80,000
5. Computers 1,50,000
6. Investments 1,25,000
7. Property Tax 5,00,000
8. Skill Development Program Expenses 50,000
9. Contractor Dues 3,80,000
10. Earmarked Fund 3,00,000
11. Maintenance Expenses 30,000
11,80,000 11,80,000
(7 marks)

Question 7.
Below are some of the transactions of Jaipur District Panchayat (JDP), Jaipur occurred on 31st
March 2024. JDP records entries (transactions performed by the bank itself) only after
performing reconciliation of the balances.

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 a. Issued a cheque of Rs.95,000 to a contractor, Hills Construction Ltd., which remained
unpresented in the bank.
b. Received cheques totaling Rs.2,56,230 from various commercial houses with respect to
House Tax. The cheques were deposited on the same day but none of them got cleared
by the bank at the end of the day.
c. JDP had authorized the bank to make the annual payment of Insurance premium of
Rs.13,520 on 31st March 2024. Simultaneously, the bank made the payment.
d. Interest on savings account was credited for Rs.38,630.
e. The bank charged an annual maintenance charge of Rs.1,500.
f. The bank collected cheques directly from individuals for Water charges amounting to
Rs.1,50,000 which was not reflected in passbook till the year end.
g. A 7.5% loan of Rs.12,10,000 was outstanding as on the last date for which interest was
debited by the bank.
The closing balance of Cashbook (bank column) as on 31st March 2024 is Rs.15,41,755.
You are required to:
1. Pass journal entries before performing reconciliation of balances.
2. Perform bank reconciliation and calculate balance as per the Passbook.
3. Pass journal entries after performing reconciliation of balances.
4. What will be the Income of JDP for the year ending on 31st March 2024 in
following situations?
Situation I - House Tax collected till 30th March 2024 is Rs.4,32,315.
Situation II- Water Tax collected till 30th March 2024 is Rs.3,80,000 includingsituation I.

Answer 7: (15 Marks)

1. Journal entries before performing reconciliation of balances

In the books of Jaipur District Panchayat

Journal Entries (Amounts in Rs.)

Date Particulars L.F. Amount Amount

(Dr.) (Cr.)
31-03-2024

a. Construction A/c Dr. 95,000

To Bank 95,000
(Being cheque issued to Hills
Construction Ltd.)
(Note: We record the payment in
Cashbookat the time of issuance of
cheque.)

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 b. Bank A/c Dr. 2,56,230
To House Tax 2,56,230
(Being cheque received for House tax
from various commercial houses.) (Note:
We record the receipt in Cashbook at
the time of depositing the cheque in bank.)

c, d, e. No Journal Entry
(Note: DDP records the
transactions incurred by the bank
itself only after performing bank
reconciliation.)
f. No Journal Entry
(Note: Cheques received directly by
the bank is recorded in Cashbook only
after
reflecting the same in Passbook.)
g. No Journal Entry
(Note: DDP records the
transactions incurred by the bank
itself only after performing bank
reconciliation.)

2. Bank reconciliation and balance as per the Passbook

Jaipur District Panchayat

Bank Reconciliation Statement as on 31st March 2024
Particulars Amount (Rs.)
Balance as per Cash Book 15,41,755
Add: Cheque issued but not presented 95,000
Interest credited but not recorded in Cashbook 38,630
16,75,385
Less: Cheque deposited but not cleared 2,56,230
Insurance premium paid but not recorded in Cashbook 13,520
AMC charges debited but not recorded in Cashbook 1,500
Cheques collected by bank and not cleared -
(Note: Since cheque was collected by bank directly and neither
credited in bank account nor recorded in Cashbook, no
treatment is required.)
Interest on loan charged but not recorded in Cashbook 90,750
Balance as per Passbook 13,13,385

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3. Journal entries after performing reconciliation of balances

In the books of Jaipur District Panchayat

Journal Entries (Amounts in Rs.)
Date Particulars L.F. Amount Amount
(Dr.) (Cr.)
31-03-2024
a. Bank A/c Dr. 95,000
To Construction 95,000
(Being payment to Hills Construction
Ltd. Entry reversed)
(Note: Since the cheque was not presented
in the bank, payment wasn’t made. So, the
entry recorded earlier needs to be
reversed.)
b. House Tax A/c Dr. 2,56,230
To Bank 2,56,230
(Being cheque deposited wasn’t cleared
and hence entry reversed.) (Note: Since
the deposited cheque wasn’t cleared,
House tax income wasn’t received.
So, the entry made earlier needs to
bereversed.)
c. Insurance Premium A/c Dr. 13,520
To Bank 13,520
(Being insurance premium paid by
bank directly.)
d. Bank A/c Dr. 38,630
To Interest 38,630
(Being interest on savings account
credited)
e. AMC Charges A/c Dr. 1,500
To Bank 1,500
(Being AMC charges debited in bank.)
f. No Journal Entry

(Note: Cheques received directly by

the bank is recorded in Cashbook only
afterreflecting the same in Passbook.)

g. Interest on Loan A/c Dr. 90,750

To Bank 90,750
(Being Interest charged @7.5% on
loan.)

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4. Income of JDP for the year ending on 31st March 2024:

Situation I -
a. House Tax till 30th March 2024 = 4,32,315
(Amounts in Rs.)
b. House Tax on 31st March 2024 = Nil (As cheque deposited was not cleared)
c. Total House Tax for FY 2023-24 (A) = 4,32,315
d. Interest on savings account (B) = 38,630
e. Water Charges (C) = Nil (As amount was not deposited in bank)
f. Total Income of FY 2023-24 = A + B + C = 4,70,945

Situation II -
a. House Tax till 30th March 2024 = 4,32,315
b. House Tax on 31st March 2024 = Nil
c. Total House Tax for FY 2023-24 (A) = 4,32,315
d. Interest on savings account (B) = 38,630
e. Water charges till 30th March 2024 = 3,80,000
f. Water charges on 31st March 2024 = Nil (As amount was not deposited in bank)
g. Total Water Charges for FY 23-24 (C) = 3,80,000
Total Income of FY 2023-24 = A + B + C = 8,50,945

Question 8.
Answer the following questions:

(a) From the following information of “H” Panchayat, prepare Receipts and
Payment Account for the year ending on 31st March 2024. Cash at Bank at
theyear-end was Rs.1,97,300. Find Cash in Hand at the year end.
a) Balance on 1st April, 2023:
Cash at Bank Rs.83,200Cash in Hand Rs.27,000
b) Penalties received Rs.64,200 (including Rs.11,100 for 2020-21 and
Rs.16,300 for2022-23)
c) Donation received for girls’ education Rs.49,000.
d) Rent from market shops Rs.31,500.
e) Sale of old Newspapers Rs.1,750
f) General grant from state government Rs.22,800
g) Rent realized community Hall Rs.35,500
h) Interest received from Investment Rs.8,000
i) Salaries Rs.28,000 (Rs.6,500 includes for 2020-21)
j) Postage and Stationery Rs.2,020
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 k) Electricity charges Rs.1,765
l) Purchase of Library Books Rs.30,200
m) Expenses on social & cultural event Rs.1,980
n) Fees for documentation Rs.14,220
o) Investments purchased worth Rs.20,000
p) Youth development program expenses Rs.3,050
(8 Marks)
Answer (a) :
Receipts & Payment account of “Q” Panchayat For the year ended on
31st March2024

Receipts Amount Payments Amount

(Rs.) (Rs.)
To Balance b/d By Salaries 28,000
Cash in HandCash at 27,000
bank 83,200
To Penalties 64,200 By Postage & Stationery 2,020
To Donation for Girls’ 49,000 By Electricity charges 1,765
Education
To Rent from market shops 31,500 By Purchase of Library 30,200
Books
To Sale of old newspaper 1,750 By Social & cultural event 1,980
To General Grant fromState 22,800 By Investment purchased 20,000
Government
To Rent from community 35,500 By Youth development 3,050
hall program expenses
To Interest from 8,000 By Balance c/d
Investments Cash in HandCash 52,855
at bank 1,97,300
To Fees for documentation 14,220
3,37,170 3,37,170

(b) The following are transactions of Panchayat “Z” undertaken during the year

Particulars Amount (Rs.)

Received rent in cash 15,000

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 Received from PHED as an advance for installation ofhand 22,000
pump by cheque
Grant received under the National Rural Employment 30,000
Guarantee Scheme by cheque
Paid as salary expenses under MNREGA by cash 30,000
Grant from Central Government received earlier underNRHM 11,000
is transferred entirely to other Panchayat by cheque

Paid for electricity charges by cheque 5,000

Received amount from Market Rent in Cash & wasdeposited in 16,000
the Bank.

The opening balance of cash and Bank is Rs. 40,000 and Rs. 45,000 respectively.
Prepare various ledger accounts except for cash & bank account. (7 Marks)

Answer (b)

1. In the books of Panchayat Z

Dr. Rent Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount

By Cash A/c 15,000
To Balance c/d 31,000 By Cash A/c 16,000
31,000 31,000
Dr. Advance for installation of Hand Pump a/c Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount

To Balance 22,000 By Bank A/c 22,000
c/d
22,000 22,000
Dr. Grant – National Rural Employment Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount

To Balance 30,000 By Bank A/c 30,000
c/d
30,000 30,000

Dr. Salary Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount

To Cash A/c 30,000 By Balance 30,000
c/d
30,000 30,000
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 Dr. Grant – NRHM Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount

To Bank 11,000 By Balance 11,000
b/d
11,000 11,000

Dr. Electricity Expense Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount

To Bank A/c 5,000 By Balance 5,000
c/d
5,000 5,000

Section D

 Question no 9 would be compulsory to answer, worth 25 marks.

Question 9.

Below are the transactions of “I” Panchayat for the year ended 31st March 2024:

a. Receipts:

i. Property & water tax of Rs.5,45,630

ii. Land revenue of Rs.1,65,400

iii. Total Rent during the year Rs.3,60,000

iv. Document correction charges Rs.37,460

v. Grant from state government for Youth development Rs.2,50,000

b. Payments:

i. Salaries & wages of Rs.3,45,600

ii. Construction of public park Rs.4,25,325

iii. Skill development program to train residents Rs.2,36,500

iv. Books purchased for public library Rs.45,000

v. Purchased tractor under Agricultural Development scheme to

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 helpfarmers Rs.4,00,000

c. Additional information:

i. Salary of 1 employee is being withheld of Rs.45,000 on account of

being accused of sexual harassment. It has been treated as liability on
year-end and isn’t included in Rs.3,45,600

ii. Opening cash balance is Rs.27,540.

iii. Opening bank balance is Rs.27,540 (Cr.).

iv. All above receipts are received through bank account except
Document correction charges.

v. All above payments are made through bank account except purchase
of library books.

Answer:
Date Particulars L. Amount Amount
2023- F. (Rs.) (Rs.)
24
Bank A/c Dr. 5,45,630
5,45,630
To Property & water tax A/c (Being
Property& water tax collected)
Bank A/c Dr. 1,65,400
1,65,400
To Land revenue A/c
(Being Land revenue
collected)
Bank A/c Dr. 3,60,000
3,60,000
To Rent A/c (Being rent received)

Cash A/c Dr. 37,460

37,460
To Document correction charges A/c
(Beingdocument correction charges collected)
Bank A/c Dr. 2,50,000
2,50,000
To Grant for Youth Development A/c
(Being grant received from state government
for youth development)
Salaries & wages A/c Dr. 3,45,600
3,45,600
To Bank A/c
(Being Salaries & wages paid to staff)

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 Construction of public park A/c Dr. 4,25,325
4,25,325
To Bank A/c
(Being public park constructed)
Skill development A/c Dr. 2,36,500
2,36,500
To Bank A/c
(Being skill development program conductedto
train residents)
Books A/c Dr. 45,000
45,000
To Cash A/c
(Being books purchased for public library)
Tractor A/c Dr. 4,00,000
4,00,000
To Bank A/c
(Being tractors purchased to help farmers
under Agriculture Development Scheme)

ii) Ledger Accounts

Dr. Property & water tax Account Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
By Bank A/c 5,45,630
To Balance c/d 5,45,630
5,45,630 5,45,630

Dr. Land revenue Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
By Bank A/c 1,65,400
To Balance c/d 1,65,400
1,65,400 1,65,400

Dr. Rent Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
By Bank A/c 3,60,000
To Balance c/d 3,60,000
3,60,000 3,60,000

Dr. Document correction charges Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
By Cash A/c 37,460
To Balance c/d 37,460
37,460 37,460

20
 Dr. Grant for Youth Development Account Cr
Date Particulars J.F. Amount Date Particulars J.F. Amount
By Bank A/c 2,50,000
To Balance c/d 2,50,000
2,50,000 2,50,000

Dr. Salaries & wages Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
To Bank A/c 3,45,600
By Balance 3,45,600
c/d
3,45,600 3,45,600

Dr. Construction of Public Park Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
To Bank A/c 4,25,325
By Balance 4,25,325
c/d
4,25,325 4,25,325

Dr. Skill Development Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
To Bank A/c 2,36,500
By Balance 2,36,500
c/d
2,36,500 2,36,500

Dr. Books Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
To Cash A/c 45,000
By Balance 45,000
c/d
45,000 45,000

Dr. Tractor Account Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
To Bank A/c 4,00,000
By Balance 4,00,000
c/d
4,00,000 4,00,000

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 Dr. Cash Account Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
To Balance b/d 27,540 By Books A/c 45,000
To Document 37,460 By Balance 20,000
correction c/d
charges A/c

65,000 65,000

Date Particulars J.F Amount Date Particulars J.F Amount

To Property & 5,45,630 By Balanceb/d 27,540
water tax A/c
To Land 1,65,400 By Salaries & 3,45,600
revenue A/c wages A/c
To Rent A/c 3,60,000 By 4,25,325
Construction
of Public Park
A/c
To Grant for 2,50,000 By Skill 2,36,500
Youth Dev.A/c Development
A/c
To Balancec/d 1,13,935 By Tractor A/c 4, 00,000

14,34,965 14,34,965

Dr. Bank Account Cr.

(i) Trial Balance of “I” Panchayat as at 31.03.2024
Sl. Name of Account Debit (Rs.) Credit (Rs.)
No.
1. Property & water tax 5,45,630
2. Land Revenue 1,65,400
3. Rent 3,60,000
4. Document correction charges 37,460
5. Grant for Youth Development 2,50,000
6. Salaries & wages 3,45,600
7. Construction of Public Park 4,25,325
8. Skill Development 2,36,500

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 9. Books 45,000
10. Tractors 4,00,000
11. Cash 20,000
12. Bank 1,13,935
14,72,425 14,72,425

(iv)
Receipts & Payment account of “I” Panchayatfor the year ended on 31st March 2024

Receipts Amount Payments Amount

(Rs.) (Rs.)
To Balance b/d By Balance b/d
Cash 27,540 Bank 27,540
To Property & water tax 5,45,630 By Salaries & wages 3,45,600
To Land revenue 1,65,400 By Construction of Public 4,25,325
Park
To Rent 3,60,000 By Skill Development 2,36,500
To Document correction 37,460 To Books 45,000
charges

To Grant for Youth 2,50,000 To Tractors 4,00,000

Development
To Balance c/d To Balance c/d 20,000
Bank 1,13,935 Cash
14,99,965 14,99,965

23