No.

of Printed Pages : 7 ECO-2

BACHELOR'S DEGREE PROGRAMME

Term-End Examination .
June, 2011

ELECTIVE COURSE : COMMERCE

ECO-2 : ACCOUNTANCY-I
Time 2 hours Maximum Marks : 50
Note : Attempt any four questions, including question no. 1
which is compulsory.

1. Answer any two questions from the following. 7+7

(a) What do you understand by Dual Aspect

Concept ? Explain its accounting
implications with examples.

(b) What is Trial Balance ? Explain the various

forms in which it is prepared.

(c) Explain Bank Reconciliation Statement and

its advantages.

(d) What is Journal Proper ? State the

transactions that are usually recorded in
Journal Proper.

2. (a) Differentiate between a Bill of exchange and

a promissory Note. 6+6

(b) What do you understand by Matching

Costs against revenue ? Explain the main
implication of the Matching Concept.

ECO-2 1 P.T.O.
3. (a) What is the difference between normal loss
and abnormal loss ? Give examples. 6+6
(b) What is Sectional Balancing ? How does it
differ from self balancing ? Give proforma
of a Total Debtors Account.

4. Give journal entries for the following adjustments. 12

(a) Interest received in advance Rs. 60,000.
(b) Interest on drawings Rs.12,000
(c) Provision for discount on creditors Rs. 2,000.
(d) Loss of goods by theft Rs. 8,500.
(e) Drawing of goods by the proprietor Rs.
7,500.
(f) Out standing wages Rs. 3,000.

5. The Trial Balance of Siva did not tally. The credit 12

side exceeded by Rs. 1455. This amount was
entered in the debit column against suspense
account and the Trial Balance was made to tally.
Later the following errors were discovered.
(a) Goods worth Rs. 1,250 were sold to Mahesh
on credit. This was entered in the sales book
but was not posted.
(b) Goods worth Rs. 313 were returned by
Ahmed. The amount was credited to his
account but was not recorded in the return
inwards book.
,(c) Manoj paid Rs. 670 but his account was
wrongly credited with Rs. 607.

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 (d) An amount of Rs. 375 owed by Dinesh was
omitted from the schedules of sundry
debtors.
(e) The sales book was undercast by Rs. 420.
Give journal entries to rectify the errors and show
the suspense account.

6. The receipts and payments account of ABC & Co. 12

is given below.
Receipts and Payments Account For the year ending March 31
2009

Receipts Rs. Payments Rs.

To Balance b/d 5000 By Charities 14500
To cash at Bank 2700 By Salaries 2600
To cash in hand 8000 By Rent & Taxes 1200
To subscriptions 4000 By Printing 300
To Endowment Fund 15000 By Postage 100
To Legacies 6000 By Advertisements 250
To Interest on Investment 9500 By Furniture 650
To Interest on deposits 150 By Insurance 1200
To sales of old news papers 75 By Investments 14000
By Advance for
building 5000
By balance c/d cash
at Bank 8000
Cash in hand 2625
50425 50425
Prepare the Income and Expenditure Account for
the year ended March 31, 2009 after considering
the following.
(a) It was decided to treat one half of the
amount received on account of legacies and
donations as income.

ECO-2 3 P.T.O.
 (b) Liabilities to be provided for are.
Rent Rs. 200 Salaries Rs. 300
Advertisement Rs. 50
(c) Insurance premium was paid in advance
for three months.
(d) Rs. 500 due for Interest on investment was
not actually received.

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ECO-2 6
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ECO-2 7