Accountancy – I 1

QUESTION PAPER

COMMERCE PAPER – I

JUNE – 2004

Time: 3 Hours] [Max. Marks:100

PART – A
(Marks : 50)
I. Answer any TWO of the following not exceeding 40 lines each :
2 X 10 = 20

(a) Define partnership Business. Explain its merits and demerits.

(b) What is meant by a Joint Stock Company? Distinguish between a company and a
partnership firm.

(c) Explain the functions of Reserve Bank of India.

II. Answer any four of the following questions not exceeding 20 lines each.
4X5=20

(a) Define the Business, Explain its important characteristics.

(b) Give the classification of various kinds of partners.
(c) Problems of Public enterprises.
(d) Elements of Office Management
(e) Types of Business Finance
(f) Types of Debentures.

III. Answer any five of the following not exceeding five lines each .
5 X 2 = 10

(a) Extractive Industry

(b) Karta
(c) Unlimited company
(d) Prospectus
(e) Government company
(f) Numerical filing
Accountancy – I 2

(g) Working Capital

(h) Define Bank

PART – B
(Marks: 50)
IV. Answer any Two of the following 2 X 5 = 10

(a) Advantages of Accounting

(b) Explain the Double Entry system and its advantages.
(c) Prepare Suman account from the following information.

2002 Rs.
August 1 Balance due from Suman 8,000
4 Cash sales to Suman 2,800
10 Goods returned by Ramu 500
15 Suman purchased goods 5,000
19 Goods returned by suman 500
21 Cash Sales 2,000
31 Cash paid by Suman 3,000

(d) Record the following transactions in the Subsidiary books.

2002 Rs.
March 1 Purchased goods from Ravi 2,000
8 Sold goods to Ranga 5,000
12 Purchased goods from Soni 2,500
18 Sold goods to Suman 3,000
21 Purchased goods from Naveen 1,000
30 Sold goods to Rama 1,500

V. Answer any ONE of the following 1 X 10 = 10

(a) From the following information, prepare the three column cashbook.
2002 Rs.
January 1 Cash in hand 28,000
1 Cash at Bank 10,000
2 Furniture purchased 1,000
8 Cash purchases 5,000
9 Sales to Naveen for cash 4,000
12 Sales to Rajakapoor 2,000
16 Cash received from Rajakapoor 1,900
And discount allowed 100
17 Cash paid to Misra 2,900
And discount received 100
20 Cash withdrawn from bank 5,000
Accountancy – I 3

OR
Prepare Bank Reconciliation Statement as on 31-12-2002.
1. Bank overdraft as per Cash Book Rs.6, 220
2. A cheque issued to Raja for Rs.2, 630 was not encashed from the Bank
3. An amount of Rs.500 was collected by the bank. The same is not recorded in
the cashbook.

4. Interest on overdraft Rs.150 was debited in the passbook only.

5. A cheque for Rs.1, 000 received, but it was not sent to bank
6. Dividend received by the bank Rs.500, not written in the cashbook.
7. Bank charges of Rs.50 debited in the pass book only.

VI. Answer any FIVE of the following 5 X 2 = 10

(a) Money Measurement Concept

(b) Personal account with example
(c) Journalise the following transactions.

2002 Rs.
January 1 Paid Salaries 5,000
10 Sold goods to Venkat 10,000
15 Sold Machinery 30,000
18 Commission received 2,000

(d) Creditors Ledger.

(e) Sales returns book
(f) Overdraft
(g) From the following balances, write the Opening entry.
Rs.
Cash in hand 1,000
Cash at Bank 3,000
Buildings 10,000
Creditors 10,000
Bills receivable 4,000
Debtors 5,000
Machinery 7,000
Bills payable 5,000

(h) Prepare Trial balance das on 31-12-2002.

Accountancy – I 4

Rs.
Capital 20,000
Cash at Bank 30,000
Sales 10,000
Stock 10,000
Bills payable 9,000
Debtors 5,000
Creditors 6,000

VII. Answer the following question 1 X 20 = 20

From the following Trial Balance prepare trading and profit and loss account and
Balance Sheet as on 31-12-2000.

Debit balances Rs. Credit balances Rs.

Purchases 1,00,000 Capital 75,000
Stock (1-1-2000) 40,000 Returns 2,500
Machinery 50,000 Creditors 50,000
Returns 4,000 Bank overdraft 20,000
Debtors 60,000 Discount 2,000
Cash at Bank 25,000 Sales 2,25,000
Taxes 3,500
Wages 28,000
Carriage on purchases 3,000
Furniture 12,000
Rent 4,000
Bills receivable 45,000
3,74,500 3,74,500

Adjustments:

1. Closing stock Rs.42, 000

2. Outstanding Wages Rs.4, 500
3. Write off Rs.1, 000 as bad debts
4. Provide 5% depreciation on machinery
5. Charge 5% Interest on capital.

****

*****