[15 Marks]

1.
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2.

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3.

What do you mean by Accounting? Explain the functions of Accounting.

What do you mean by GAAP? How Indian GAAP is different than US GAAP?
What do you mean by concepts and conventions in Accounting? Explain the
following concepts with suitable examples.
a. Separate entity concept
b. Matching concept

[10 Marks]
Prepare the three columnar cashbook from the following transaction of Nair, which
took place on 30th September, 2015.
a. Balance brought forward from the previous day: Cash in hand Rs. 100 and at
bank
Rs. 8,000.
b. Instructed the bank to issue a bank draft for Rs. 5,000 in favor of Mr. Sugar.
The bank charged Rs. 10 for issuing the draft.
c. Received a bank draft for Rs. 5,760 from Mr. Michael in full settlement of Rs.
6,000 due from him. Sent the draft to the bank.
d. Received a cheque from Rajesh for Rs. 2,000. Allowed him discount Rs. 120.
e. Endorsed Rajeshs cheque in favour of Mr. Hardy.
f. Sent a cheque for Rs. 50 in payment of school fees of Nairs son.
g. Withdrew Rs. 500 from the bank.
h. Placed an order with Ms. Vicars for goods of the value of Rs. 1,000 and sent
cheque for Rs. 1,000 with the order.
[15 Marks]
st
On 1 October 2015 Mr. Xavier opened a Bank Account by depositing Rs. 12,000 in
cash. All remittances are to be deposited into bank on the same day on which they
are received and all payments are made by cheques. Enter the following
transactions in the journal:
October 2015
2nd Goods sold to Mohan for cash Rs. 500.
5th
Settled Harrys account of Rs. 400 at a discount of 5%.
th
7
Received from Suresh a cheque for Rs. 1,450. Discount allowed Rs. 50
th
10 Purchased a typewriter for Rs. 400. Spent Rs. 100 on its repairs.
12th Sureshs cheque was dishonored.
15th Received cash Rs. 50 from Harry.
20th Suresh settled his account by means of a cheques for Rs. 1,510 (Rs. 10
being for interest charged)
th
27 Purchased machinery from Ramesh for Rs. 10,000 and paid him by bank
draft (bank charged Rs. 10 for bank draft commission).

4.

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