BACHELOR'S DEGREE PROGRAMME
Important Questions for June’ 2015
Examination
ELECTIVE COURSE: COMMERCE ECO-2:
ACCOUNTANCY-I
Time: 2 hours
Maximum Marks: 50
You have to attempt only four out of total
six questions in which Q.N.1 is compulsory
It is advisable to complete at least 4 blocks and current
year assignment.
BLOCK 1:
Accounting Fundamentals
Unit 1 : Basic Concepts of Accounting
Unit 2 : The Accounting Process
Unit 3 : Cash Book and Bank Reconciliation
Unit 4 : Other Subsidiary Books
Unit 5 : Bills of Exchange
BLOCK 2: Final Accounts
BLOCK 2: Final Accounts
Unit 6 : Concepts Relating to Final
Accounts
Unit 7 : Final Accounts – I
Unit 8 : Final Accounts – II
Unit 9 : Errors and their Rectification
BLOCK 3: Consignment and Joint Ventures
BLOCK 3: Consignment and Joint Ventures
Unit 10 : Consignments Accounts – I
Unit 11 : Consignments Accounts – II
Unit 12 : Consignments Accounts – III
Unit 13 : Joint Venture Accounts
BLOCK 4: Accounts from Incomplete Records
BLOCK 4: Accounts from Incomplete Records
Unit 14 : Self Balancing System
Unit 15 : Accounting from Incomplete
Records – I
Unit 16 : Accounting from Incomplete
Records – II
Unit 17 : Accounting from Incomplete
Records – III
BLOCK 5: Accounts of Non-trading Concerns, Depreciation, Provisions and Reserves
BLOCK 5: Accounts of Non-trading Concerns, Depreciation, Provisions and Reserves
Unit 18 : Accounts of Non-trading Concerns
– I
Unit 19 : Accounts of Non-trading Concerns
– II
Unit 20 : Depreciation – I
Unit 21 : Depreciation – II
Unit 22 : Provisions and Reserves
Selected Questions for Block –
1: (Most Scoring Block)
1. What is accounting? Mention its three objectives,
advantages and limitations.
2. Explain the following accounting concept:
a)
Money Measurement concept
b)
Cost Concept
c)
Business Entity concept
d)
Consistency Concepts
e)
Materiality
3. Explain cash basis and accrual
basis of accounting.
4. What is BRS? What are the causes
of disagreement between cash book and pass book? (Refer my solved assignment)
5. What is Bills of exchange and
promissory note? Distinguish between them. Give a specimen of both of them.
6. Why is journal sub-divided? Name the special Journals
generally maintained by business and state the type of transactions entered in
each of them.
7. Discuss
briefly the utility of debit note, credit note and invoice.
8. Learn Preparation of BRS carefully as given in my solved
assignment.
Selected Questions for Block –
2:
1. How would you rectify the following
errors in books of K and CO? 12
a) The
sales returns book has been undercast by Rs. 500.
b) The
Purchases returns book has been overcast by Rs. 500.
c) Sales Book was undercast by Rs. 550.
d) Purchases
Book was undercast by Rs. 550.
e) The
total of the Bill Receivable Book amounting Rs. 4500 has been posted to the
credit of Bill Receivable Account.
f) While
posting purchases book to be ledger the personal Account of Kumar has been
credited with Rs. 221 instead of Rs. 212.
g) Rs.
10,000 paid for the purchases of a T.V. set for the proprietors is debited to
General exp. A/c
h) Goods
sold to Inder for Rs. 1,200 has been entered in the Purchases Book.
i)
Machine purchased for Rs. 10,000 has been
debited to purchases account.
j)
Rs. 3,000 being the sale proceeds of old
furniture has been credited to sales account.
k) Goods
purchased from Sanjay for Rs.4, 000 was recorded in purchase book as Rs. 400.
l)
Rs. 5,000 paid to Anil for salary was debited to
his personal account.
m) Rs.
1,000 paid for cartage for the newly purchased machine has been debited to
cartage account.
n) Rs.
5,000 received from 'Ram' has been credited to 'Shyam' account.
o) Sameer
had paid Rs. 1,000 but it was credited to Rahim's account.
p) Credit
Sales of 720 recorded in Sales Journal as Rs. 270.
q) Credit
Sales of 1,500 rupees to Sameer was omitted from being recorded in books.
r) Discount
Allowed column of Cash Book was overcast by Rs. 75.
s) Goods Rs. 4,000 sold on credit
to B, no entry was made in books.
t) No entry was made for purchases
returns of Rs. 3,000.
u) No entry was made for sales
returns of Rs. 5,000.
v) Goods purchased on credit from S
Rs. 5,000, was recorded in purchase book as Rs. 500
w) Sales of Rs. 6,000 to D were
recorded as Rs. 600 in sales Book.
2.
From the following Ledger balances and adjoining information, you are required
to prepare a Trading and Profit and Loss Account for the year ended on 31st
March 2012 and the Balance Sheet as on that date. 12
Particulars
|
Dr.
|
Cr.
|
Opening
Stock
Purchases
Sales
Purchases
Returns
Sales
Returns
Carriage
Inward
Carriage
outward
Bank
Overdraft
Cash
Capital
Sundry
Creditors
Loans
Investments
Accrued
Incomes
Machinery
Drawings
Wages
Salaries
Outstanding
Expenses
Prepaid
Expenses
Postage
Discount
Received
Discount
Allowed
Bad
debts
Debtors
Interest
Paid
Interest
Received
Provision
for Bad debts
Furniture
and Fixtures
|
40,000
4,10,000
2,500
1,500
2,500
4,000
10,000
600
47,500
10,000
11,000
7,300
750
900
1,000
750
1,00,000
3,500
7500
|
4,29,000
1,250
21,000
1,27,750
37,500
41,375
1,000
375
300
1,750
|
6,61,300
|
6,61,300
|
Other
Information :
(a)
Unsold Stock 1,10,000
(b)
Depreciate Machinery by 10%
(c)
Tax Payable 7,500
(d)
Accrued Interest on Investment 1,200
(e)
Interest on Capital @5%
3.
What is trial Balance? Mention various types of errors. What types of errors
not disclosed by trial balance?
4.
List the errors which affect and do not affect the trial balance.
Selected Questions for Block – 3:
1.
What is Joint Venture? What are its features? Distinguish between Joint venture
and consignment.
2. Distinguish
between
a. Consignment and Sale
b. Normal and abnormal loss
3.
How Stocks are valued in case of normal and abnormal loss in consignment
accounts?
4. 3. Radha & Co., Bombay sent
on consignment to Krishna & Co., Chennai 100 Fans, invoiced at Rs. 100 each
on 5th June, 2009. Radha & Co. paid Rs. 2000 for dispatch of goods to the
consignee. Consignee remitted Rs. 6000 as an advance by bank draft on 20th June
2009. The consignee is entitled to a commission of 10% on the sale proceeds. On
receipt of goods the consignee paid Rs. 2000 for godown charges. On 30th June,
2009 Krishna & Co. sent an Account sales showing that the fans have
realised Rs. 250 each. He remits the amount due to Radha & Co. Pass Journal
Entries and Prepare ledger accounts in the books of the consignor and
consignee.
5.
What is invoice price? Give reasons for sending consignments at invoice price.
Selected Questions for Block – 4:
1.
What is single entry system? Distinguish between single entry and double entry.
2.
What are the drawbacks of single entry? How double entry system overcome such
drawbacks?
3.
What is self balancing and sectional balancing? Distinguish between them.
4.
What are the advantages and limitations of self balancing?
Selected Questions for Block – 5:
1.
What is depreciation? What are various causes for providing depreciation?
Mention the factors which affects the amount of depreciation.
2.
Distinguish between:
a) Provisions
and Reserves
b) Provision
for discount on debtors and provision for discount on creditors
c) Income
and expenditure account and receipts and payments accounts
3.
What are secret reserves? How it is created?
4.
Write short notes on: Provision for Bad debts.
5.
The following information is extracted from the
books of businessman.
Debtors as on 31.12.09 Rs.25000
Bad debts during 2009 Rs. 1,000
Provision for Bad debts is to be maintained at 5% of debtors.
A provision for discount on debtors is also to be made at 2% you are required to
calculate the amount to be set aside in respect of provision for bad debts and
provision for discount on debtors respectively, and give the journal entries
thereof.
6.
Prepare Machinery Account for the years 2007 to 2011.
On 30th June 2007, a business man purchased machinery
for Rs. 10,000 and spent on its installation Rs. 1000. It charged
depreciation @ 10% annually according to Fixed Installment method
of charging depreciation. On 30-6-2009, he added another machinery
costing Rs. 8,000. On 30-6-2011, the machinery purchased on 30-6-2007
was sold for Rs. 5,000.
7.
Give Five examples of provisions and reserves.
8. Receipts
and payment Account of a sports club
showed that Rs 50,000 were received by way of subscription for the year ended
31.12.2010. The additional information was as follows:
(i)
Subscription outstanding on 31.12.2009 was Rs. 5000.
(ii)
Subscription received in advance on 31.12.2009 was Rs. 3000.
(iii)
Subscription outstanding on 31.12.2010 was Rs. 10,000.
(iv)
Subscription received in advance on 31.12.2010 was Rs. 6,000.
Show
how above information would appear in the final accounts for the year ended
31st December 2010 of Sports Club.