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QUESTION PAPER

COMMERCE PAPER – I

MARCH – 2007
Time: 3 Hours] [Max. Marks: 100

PART – A
(Marks: 50)

I. Answer any two questions from the following not exceeding 40 lines each
2 x 10 = 20
(a) Define sold trading business. Explain the merits of sole trading business.
(b) Explain the differences between private company and public company.
(c) Define money and explain its functions.

II. Answer any four of the following question not exceeding 20 lines.
4 x 5 = 20
(a) Explain the characteristics of business.
(b) Explain any five types of partners.
(c) Explain the problems in public enterprises.
(d) Mention the essentials of good filing system.
(e) Explain the type of debentures.
(f) Mention the merits of preference shares.

III. Answer any Five of the following questions not exceeding 5 lines each .
5 x 2 = 10
(a) What is commerce ?
(b) Dayabhaga rules.
(c) What is minimum subscription ?
(d) Name clause
(e) What is multinational corporation?
(f) Mention any two demerits of office mechanisation.
(g) Deferred shares.
(h) Lead bank scheme.

PART – B
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(MARKS 50)

IV. Answer any two of the following :

2 x 5 = 10
(a) Explain the accounting concepts.
(b) Explain the type of accounts.
(c) From the following particulars prepare Siddu’s account.

2005 Rs.
Jan 1 Balance due from Siddu 5,000
3 Purchased from Siddu 3,000
7 Goods returned to Siddu 500
9 Cash received from Siddu 2,000
11 Sold goods to Siddu 1,500
15 Siddu’s account settled with 10% discount.

(d) Record the following transactions in the appropriate subsidiary books.

2006 Rs.
Feb 1 Purchased from Madhu (Trade Discount 10%) 5,000
3 Goods sold to Pandu (Trade discount 5%) 2,000
5 Saraswathi sold goods to us 1,000
7 Yadagiri purchased goods from us 2,000
10 Purchased from Pandari for cash 1,500
15 Purchased from Prasad on credit 3,000
20 Sold to Srikanth 2,500

V. Answer any one of the following :

1 x 10 = 10
(a) From the following particulars, prepare three columns cash book of Smt.
Tejaswini.
2006 Rs.
March 1 Cash in hand 2,000
Cash at Bank 3,000
Mar 3 Purchased for cash 1,000
6 Received from ‘Y’ 3,960
Discount allowed 40
9 Cash remitted into bank (Deposited) 2,000
12 Cash sales Rs.1,500 of which Rs.500 was
deposited into Bank.
15 Withdrawn from bank for office use 1,000
17 Paid wages 200
25 Cash sales 500
30 Paid to ‘X’ 480
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Discount received 20

(b) From the following particulars, prepare Chakravarthy’s Bank reconciliation Statement as
on 31-3-2006.
(i) Overdraft balance as per pass book Rs.10,000
(ii) Cheques deposited into bank Rs.5,000, out of which only cheques of Rs.2,000 have
been collected.
(iii) Cheques issued Rs.1,500, but not presented for payment in the bank.
(iv) A customer directly paid into bank Rs.1,200
(v) Bank charges Rs.200, Insurance Premium Rs.500 debited in pass book only.
(vi) An amount of Rs.300 have been collected as dividend by bank but not recorded in
cash book.

VI. Answer any five of the following questions .

5 x 2 = 10
(a) What is book-keeping?
(b) What is double entry system?
(c) Journalise the following transactions :
2006
Jan 1 ‘X’ Commenced his business with cash Rs.5,000 and goods Rs.2,000
Jan 5 Cash sales Rs.3,000
Jan 7 Salaries paid by cheque Rs.1,500.

(d) Write any two advantages of ledger.

(e) How many subsidiary books are there? What are they ?
(f) Contra entry
(g) From the following balances, write the opening entry.
Rs.
Cash 5,000
Debtors 10,000
Creditors 8,000
Bank overdraft 2,000
Buildings 12,000
Bills receivable 9,000

(h) Prepare Trial balance from the following balances.

Rs.
Opening stock 10,000
Purchases 20,000
Sales 30,000
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Debtors 20,000
Creditors 10,000
Salaries 5,000
Cash 10,000
Capital 25,000

VII. Answer the following question :

1 x 20 = 20
From the following Trial Balance of Smt. Girija Stores, prepare final accounts
for the year ending 31-12-2006.
Debit balances Rs. Credit balances Rs.
Purchases 70,000 Sales 1,00,000
Sales returns 1,000 Capital 80,000
Carriage 500 Purchase returns 2,000
Salaries 1,500 Creditors 25,000
Rent 1,000 Commission 2,000
Insurance 500 Provision for bad debts 2,100
Debtors 20,000 Bills payable 5,000
Plant & Machinery 50,000
Furniture 9,000
Cash at Bank 20,000
Opening stock 25,000
Bills receivable 16,000
Wages 1,100
Advertisement 500
2,16,100 2,16,100

Adjustments :
(a) Closing stock Rs.30,000
(b) Outstanding salaries Rs.200
(c) Depreciate machinery by 10% and furniture by 5%
(d) Provide 5% reserve for bad debts on debtors.
(e) Prepaid wages Rs.100.

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