Q1. what do you understand by Accounting Principles?

What are the

accounting Concept and conventions? Q2. From the following particulars, write out a cash book, with Cash, Bank and Discount Columns of M/s Ramji and Co. Calcutta for the month of January 1998 and balance the Cash Book.1998 January 1- Balance of Cash on hand Rs 2,000 and overdraft with State Bank of India Rs 10,000. January 5 Received Cash from Chetty & Co. , Rs 2000 and allowed his a discount of Rs 60. January 7- Paid into Bank Rs 3,500. January 15- Paid to Govind by cheque Rs 520 in full settlement of his accounts for Rs 550. January 20- Received for Cash sales:- Cash Rs.175 and cheque Rs 100. January 22- Paid Ram & Co. by cheque Rs 1200 discount allowed Rs 45. January 25- Paid by cheque to Shanti Kumar Stores for private use of proprietor Rs 525. January 28- Drew for office use Rs 500. January 31- Harish Paid directly into our Bank Account Rs 600 Q3. a)What is Bank Reconciliation Statement? b)From the following particulars, ascertain the Bank balance as per Pass Book as on 31st March 2009. i. The Bank balance as per Cash book on 31st March, 2009. Rs 80,000 ii. Cheques issued but not encashed up to 31st March, 2009 to Rs 20,000. iii. Cheques paid into the bank, but not cleared up to 31st March, 2009 amounted to Rs 30,000. iv. Interest on investments collected by the bank but not entered in the Cash Book Rs 1,000. v. Cheques deposited in the bank but not entered in the cash book Rs 25,000. vi. Bank charges debited in the Pass Book but not entered in the Cash Book Rs 200. Q4. Explain single entry system of accounting is different from that of double entry explain Also explain the step needede to convert a set of book kept under single entry system in to double entry system. Q5.. from the following balances of the year ending 31st December ,2006 and additional

information prepare the Trading and Profit and Loss Account and the Balance sheet of M/s Ram Lal and Sons:Capital Purchases Sales Return Outward Building 80000 82000 110000 1000 45000 Insurance Salaries Bad Debts Carriage on Purchases Commission (Cr.) 600 12500 200 200 1500

Opening Stock Debtors Creditors Furniture Wages Rent

15000 20100 28000 7000 1800 5100

Cash in Hand Cash at Bank Sales Tax paid Sales Tax Collected Interest on Investment

5000 25000 5000 3500 500

Additional Information:a. closing stock was valued at Rs 20,000 b. Provide depreciation on building @ 5% and on furniture @10% c. Outstanding salaries Rs 1000. d. Unexpired insurance Rs. 50. e. Accrued commission Rs 300. f. Provide for Managers commission at 5% on net profit after charging such commission.
Q6. a)What are the causes of Depreciation? b) A company purchased machinery for Rs 50,000 on 1st July, 1988. Another machinery costing Rs 10,000 was purchased on 1st September, 1989. On 31st December, 1990, the machinery purchased in 1988 was sold at a loss of Rs. 5,000. The company charges Depreciation at the rate of 15% on Diminishing Balance Method. Accounts are closed on 31st December every year. Prepare Machinery Account for 3 years Q7. What adjustment entries are required to be made at the time of preparing final account? Give illustrative example of any seven such adjustment entries. Q8. From the following data calculate the value of inventory on 31st JJan1990 by LIFO ,FIFO method.1990 1990 1st Jan Opening Stock 200 pieces @ Rs. 2 each 4th Jan Purchases 100 pieces @ Rs.3 each 10th Jan Purchases 150 pieces @ Rs.3.50 each 20th Jan Purchases 180 pieces @ Rs.4 each 2nd Jan Issues 150 pieces th 7 Jan Issues 100 pieces 12th Jan Issues 200 pieces Q9. write short note on anythree a) accounting equation b) suspense account

c) error not disclosed by trial balance d) what are rectifying entries? How two sided and one sided error rectified? Explain with the help of example. e) Accounting for negotiable instruments Q10. a)what are the function of trial balance? Explain the error which are not disclosed by a Trial balance b) what is a voucher? Prepare an imaginary specimen of a voucher.