DATE: 03/11/2017 TIME: 10:30 am to 01:00 pm

NATIONAL LAW UNIVERSITY ODISHA, CUTTACK

End-Semester Examination (Odd-Semester)
November, 2017
BA.LL.B
SEMESTER - III (BATCH OF 2016 – 2021)

Full Mark: 45 Duration: 2 hrs 30 mins.

General Instructions

1. No clarifications can be sought on the question paper. In case of any ambiguity in the question paper
students are expected to rely on the question paper as it is and respond to it.
2. Notes, books, other written and printed matter, other examinations aids, and electronic devices, including
but not limited to mobile phones, laptops and digital diaries, are strictly prohibited in the examination
hall. Any candidate found in possession of any of the above during the examinations, either inside or
outside the Examination hall will be treated as unfair means.
3. Start a new page for each question and take care to identify each answer clearly with the
number of the question and, where appropriate, the part you are answering and write your
answers in sequence i.e. number wise.
Material allowed in the Examination hall: Calculator is allowed.

BASIC PRINCIPLES OF ACCOUNTING

1. Mr. A had prepared following trial balance from his ledger
Trial balance as at 31st March 2017

Purchases 13,00,000

Opening stock 1,00,000

Sales 25,50,000

Wages 55,000

Plant & Machinery 8,00,000

Printing & Stationery 55,000

Motor car 3,00,000

Cash in hand 50,000

cash at bank 1,25,000

Drawings 38,000

Fixed deposit with SBI

(10% ROI) 3,00,000

Mr A's capital 17,50,000

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 Rates & taxes 30,000

Salaries 1,50,000

Telephone expenses 75,000

Provision for depreciation

On Plant & Machinery 2,00,000

On Motor Car 60,000

Provision for bad debt 50,000

Closing stock 2,00,000

Insurance 30,000

Advertisement 1,75,000

Bad debts 30,000

Cash discounts 45,000

General expenses 42,000

carriage inward 50,000

carriage outward 20,000

sundry creditors 4,60,000

sundry debtors 11,00.000

50,70,000 50,70,000

You are requested to prepare Trading and Profit & loss Account for the year ended 31st march, 2017 and
balance sheet as on the date after considering the following information-

1) Provision for bad debts is to created at 10% on sundry debtors.

2) Depreciation on Plant & Machinery by 15% & on motor car 10%.
3) Rs 30,000 salary remaining outstanding on 31st march.
4) 1/3rd of the insurance expenses belong to the f.y 2017-18
5) Fixed deposit made on 01.07.16
[20 Marks]

2. Mrs B purchased one machine worth Rs 1,00,000 on 01.01.13. It was decided to charge depreciation @10%
on SLM basis. On 01.07.14 second machine was purchased for Rs 2,00,000. On 01.09.15 the first machine
was sold for Rs 80,000. On 01.01.16 it was decided to change the method of charging depreciation to RBM
basis at 15%.

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 You are required to show Machinery A/C, Depreciation A/C and Accumulated depreciation A/C (if required)
under following situations:

1. When Accumulated depreciation A/C is not maintained and

2. When Accumulated depreciation A/C is maintained for the year ending on 31 st December 2013, 2014, 2015
& 2016.
[10 Marks]

3. MR. A started his business on 1.1.2014. Following information provided for the year ended 31st December:

YEAR 2014 2015 2016

CREDIT SALES 2,50,000 3,50,000 5,00,000

RECEIVED FROM DEBTORS 1,50,000 2,50,000 2,50,000

DISCOUNT ALLOWED 25,000 35,000 30,000

RETUNS INWARD 15,000 10,000 1,00,000

BAD DEBTS 10,000 30,000 5,000

Provision is to be created for doubt full debts @10% on closing debtors balance .you are required to prepare
sundry debtor A/c, bad debt a/c and provision for bad debt a/c for the year 2014 to 2016.

[10 Marks]
3. Write short notes on:

A. Depreciable Asset
B. Book of original entry and principal books of accounts
[05 Marks]

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