VIJAYAM JUNIOR COLLEGE::CHITTOOR

SR. I TERMINAL EXAMINATIONS

SR.MEC 12-08-2015 MARKS:100
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I . ANSWER ANY TWO OF THE FOLLOWING. 2X10=20
1. Who is a whole saler? What are his services.
2. Define a Bank. Explain the important functions of a bank.
3. Discuss the advantages and disadvantages of Transportation.
II ANSWER ANY FOUR OF THE FOLLOWING. 4X5=20
4. What is International trade? Explain its advantages.
5. Distinguish between Home Trade and Foreign Trade.
6. What is a SEZ? Explain its advantages.
7. Explain the principles of Insurance.
8. What are the benefits of Insurance.?
9. State the advantages and disadvantages of Rail Transportation.
III. ANSWER ANY FIVE OF THE FOLLOWING. 5X2=10
10. Entrepot trade
11. Cheap-Jacks
12. Super Markets
13. Whole life policy
14. Cargo Insurance
15. Bonded ware houses
16. National high way
17. Reinsurance
IV. ANSWER ANY EIGHT OF THE FOLLOWING. 8X5=40
18. On 1-1-99, Raman purchased machinery worth Rs.50,000. On 1-4-2000 additional machinery worth
Rs.10,000 was purchased. On 30-6-2001, machinery purchased on 1st January 99 became unsuitable and
was sold for Rs.35,000. Prepare Machinery account for 4 years charging the depreciation @ 15% p. a. on
both the machines under Fixed Installment Method.
19. Sita Ram purchased a machine on 30-6-99, for Rs.80,000 and spent Rs.5,000 for its installation. On 1-1-
2000 he purchased another machine worth Rs.15,000. The machine purchased on 30-6-99, was unsuitable
and was sold for Rs.70,000 on 31-12-2002. Find the machinery value as on 31-12-2002 charging
depreciation @ 10% on Reducing Balance Method.
20. A second hand machine was purchased for Rs.12,000 on 1-1-2000 and Rs.3,000 spent towards repairs.
On 30-6-2003 the machine became unsuitable and was sold for Rs.10,000. Charge depreciation @ 15%
on Diminishing Balance Method. Show the Profit or loss on the sale of the machine.
21. Nagaraju sold goods on credit and draft a bills of exchange on Omkar for Rs.15,000 on 1 st November 2004
for 4 months. Omkar accepted and returned the same to Nagaraju. Nagaraju endorsed the same to his
Creditor Keerti in full settlement of his debt of Rs.15,500. The bill was duly met on maturity.
Enter the above transactions in the books of Nagaraju.
22. On 1st March 2006, Mr. Mitra sent to Mr. Sukla a three months bill for Rs.5,000 Mr. Sukla accepted the bill
and returned it to Mr. Mitra, who there upon discounted it @ 6% p. a. on maturity the bill was dishonoured and
bank paid 200/-as noting charges. Pass the entries in the books of both the parties.
23. On 15th October 2006 Basu sold goods to Dasu for Rs.9,000 and drew upon him a bill for 3 months for the
amount. Dasu accepted the draft. On the due date Dasu expressed his inability to meet the bill and offered to
pay Rs.2,000 in cash and to accept a new bill for the balance plus interest at 12% p. a. for two months. Basu
agreed to the proposal. On maturity the bill was dishonoured on account of insolvency and 10 paise in rupee
was received from Dasu ‘s estates.
Pass necessary journal entries in the books of Basu.
24.
25.
26.
V. ANSWER ANY FIVE OF THE FOLLOWING. 5X2=10
27.Who are the parties to a bills of exchange.
28. What are the causes of depreciation?
29. Explain days of grace.
30. How is the depreciation calculated in the Fixed Installment Method?
31. Cost of asset is Rs.95,000
Installation charges Rs.10,000, Scarp value is Rs.5,000.
Estimated life of asset is 10 years. Calculate annual depreciation.
32.Two differences between single entry and double entry systems.
33.Compute the net profit for the year ending 31-12-2014.
Capital as on 01-01-2014 Rs. 82,675/-
Capital as on 31-12-2014 Rs 97,230/-
34. Prepare Statement of Affairs on 01-01-2015.
cash 99,000 bills receivable 75,000 plant 48,000 land and buildings 1,80,000 furtuniture 43,000
creditors 32,000 bills payable 12,500

1.
1. Define Entrepreneur. Explain the characteristics of Entrepreneur.
2. From the following Receipts and Payments account of Chittoor club prepare the Income and Expenditure

for the year ended 31-3-2015 :

Receipts Amount Payments Amount
Rs. Rs.
To Balance b/d By Charities(Revenue) 29,000
Cash 500 By Salaries 5,200
Bank 5,000 By Printing and Stationery 800
Fixed Deposits 30,000 By Rent & Taxes 2,400
To Donations 16,000 By Advertisements 500
To Subscriptions 8,000 By Purchase of furniture 2,000
To Legacies 12,000 By Government Bonds 32,000
To Receipts for building fund 30,000 By Advance to Building 16,000
construction
To Interest on Investments 19,000 By Balance c/d
To Interest on deposits 300 Cash 1,050
To Sale of old furniture 150 Bank 2,000
Fixed Deposits 30,000
1,20,950 1,20,950
Additional Information:
1. Treat half of amount received on legacies and donations as income.
2. Outstanding expenses at the end of the year Rent Rs.400, Salaries Rs.600, Advertisements Rs.100
3. Interest on Investments Rs.500 had accrued but not received.
3. From the under mentioned Receipts and Payment account for the year ending 31-3-2014 of Masanic
Grounds, prepare Income and Expenditure Account and Balance Sheet on that date.
Receipts & Payable Account (for the year ended 31-3-20014)
Dr. Cr.
Receipts Amount Payments Amount
Rs. Rs.
To Balance b/d By Purchase of furniture 5,000
(30th June 2013)
Bank 25,000 By Salaries 2,000
To Subscriptions By Telephone expenses 300
2004 – 05 1,500 By Electricity Charges 600
2005 – 06 10,000 By Postage & Stationery 150
2006 –07 500 By Purchase of Books 2,500
To Donations 2,000 By Entertainment expenses 900
To Rent 300 By Purchase of govt. bonds 8,000
To Interest on Bank Deposits 450 By Miscellaneous expenses 600
To Entrance Fees 1,000 By Balance c/d
Cash 300
Bank 20,400
40,750 40,750
The following additional information is available:
1. Salaries outstanding Rs.1,500 2. Entertainment expenses outstanding Rs.500
3. Bank Interest receivable Rs.150 4. Subscriptions outstanding Rs.400
5. 50% of entrance fee is to be capitalized. 6. Furniture is to be depreciated at 10% per annum