I.

Answer any Two of the following :

2 x 5 = 10
(a) Distinguish between Book-Keeping and Accounting.
(b) State the different types of Accounts and its principles.
(c) Prepare Suman account with the following transactions :
2006 Rs.
Jan1 Amount due to Suman 4,500
7 Bought goods for cash from Suman 2,000
10 Bought goods from Suman 3,000
20 Goods returned to Suman 300
23 Cash paid to Suman 2,000
25 Bought goods on credit from Suman 1,000
28 Bought goods for cash from Suman 3,000
30 Bought goods from Sumanth 2,000

(d) Show the following in the subsidiary books concerned :

2006 Rs.
Mar 1 Purchases from Suresh 3,000
8 Sales to Hari 5,000
12 Purchases from Madhavi 3,500
18 Sales to Madhuri 4,000
21 Purchases from Kavya 2,000
30 Sales to Sai 2,500

II. Answer any one of the following :

1 x 10 = 10
(a) Prepare Three Columnar Cash book of Sai from the following :
2006 Rs.
Apr 1 Cash in hand 8,000
Cash at bank 10,000
2 Machinery purchased by cheque 2,000
8 Cash sales 10,000
10 Cash Sales to Vinay 5,000
12 Sales to Raju 4,000
18 Cash received from Raju 3,900
Discount allowed 100
20 Cash paid to Anand 3,800
Discount received 200
25 Cash withdrawn from Bank for office use 3,000

OR
Prepare Bank Reconciliation Statement as on 31-12-2005 from the following
:
Rs.
(i) Bank Balance as per Cash Book 18,000
(ii) Cheques issued but not presented 3,500
(iii) Cheques deposited in bank but not collected 2,000
(iv) Insurance premium paid by the Bank as per the
Customer’s standing instruction 250
(v) A debtor directly paid to Bank 2,000
(vi) Bank charges debited only in Pass Book 100

III. Answer any five of the following.

5 x 2 = 10
(a) Revenue expenditure
(b) Any two advantages of Double Entry Book-Keeping System
(c) Ledger
(d) Contra entry
(e) Bank Reconciliation Statement
(f) Journalize the following :
2006 Rs.
Mar 1 Teja commenced business with a capital of 50,000
5 Goods sold to Ramana 5,000
15 Goods used for personal purpose 3,000
20 Rent paid 2,000

(g) Show the opening entry in the books of Sai on 1st April, 2006.
Rs.
Cash in hand 3,000
Cash at Bank 10,000
Bills Receivable 5,000
Stock 4,000
Machinery 10,000
Debtors 20,000
Creditors 15,000
Bills payable 6,000

(h) Prepare Trial Balance as on 31-12-2005 from the following.

Rs.
Capital 20,000
Purchases 18,000
Bills payable 3,000
 Sales 10,000
Bills Receivable 9,000
Sales returns 1,000
Furniture 5,000

IV. Answer the following :

Prepare Trading, Profit and Loss Account for the year ended on 31 st March, 2006
and a Balance Sheet on that date from the following Trial Balance of Suresh :

Trial Balance as on 31st March, 2006

Rs. Rs.
Purchases 50,000 Sales 1,00,000
Sales returns 2,000 Purchase returns 1,000
Rent and taxes 3,000 Creditors 5,000
Debtors 30,000 Bills payable 10,000
Salaries 20,000 Bank overdraft 9,000
Carriage 1,000 Mortgage loan 4,500
Wages 10,000 Capital 70,000
Machinery 30,000
Furniture 10,000
Drawings 5,000
Bad debts 4,000
Insurance 2,000
Fuel and Power 2,500
Cash in hand 10,000
Cash at Bank 20,000
1,99,500 1,99,500

Adjustments :
(1) Closing Stock Rs.25,000
(2) Provide reserve for doubtful debts at 5% on debtors.
(3) Charge depreciation on Machinery at 10%.
(4) Allow interest on capital at 5%.
(5) Out standing wages 500/-, salaries 1000/-.

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