I ECO-002 No. of Printed Pages : 6

BACHELOR'S DEGREE PROGRAMME

Term-End Examination

June, 2017 10190 ELECTIVE COURSE : COMMERCE

ECO-002 : ACCOUNTANCY-I

Time : 2 Hours Maximum Marks : 50

Weigh tage : 70%

Note : Attempt any four questions, including question no. 1

which is compulsory.

1. Attempt any two questions from the following : 7+7

(a) Explain briefly the 'conservatism concept' of accounting with examples.

(b) State the advantages of maintaining a Petty Cash Book.

(c) Describe the utility of debit note and credit note.

(d) State the transactions recorded in Bills Receivable and Bills Payable Journals.

2. (a) What do you understand by self-balancing 6+6 system ? State its advantages.

(b) Explain the drawbacks of Single Entry System of accounting.

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3. (a) The balance of Machine Account on January 8+4 1, 2013 was Z 10,00,000. New machines were purchased, one on 1-10-2013 for Z 50,000 and the other on 1-7-2014 for Z 1,00,000. On 1-4-2015, a machine whose book value had been Z 1,50,000 on 1-1-2013 was sold for Z 80,000 and the entire amount was credited to Machine Account. Depreciation had been charged at 10% p.a. on straight line method. Show Machine Account from 1.1.2013 to 31-12-2015.

(b) Distinguish between Provisions and Reserves.

4. There was a difference of Z 5,250 in a Trial 12 Balance. It had been transferred to the credit side of Suspense Account. Later on, the following errors were discovered.

(a) An amount of Z 3,750 had been posted on the debit side of Commission Account instead of Z 2,750.

(b) Goods worth Z 2,000 purchased from if had been posted to his account as Z 2,500.

(c) Total of Sales Returns Book was overcast by Z 4,750.

(d) Goods worth Z 3,000 sold to Mahesh was recorded in Purchases Book.

Pass the necessary rectifying journal entries and prepare the Suspense Account.

5. (a) Distinguish between Joint Venture and 4+8 Partnership.

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(b) Philips Radio Company, Mumbai consigned 100 transistors to their agents Paul Radios, Delhi. The cost price of each transistor was

750. The consignors paid 2,000 for freight, 500 for cartage and 4,000 for insurance. Five transistors were totally destroyed in transit. The insurance claim of 3,000 was admitted by the insurance company. The consignee took the delivery of 95 transistors and spent 6,850 on cartage and godown rent. They sold all the transistors at 1,000 each. Paul Radios are entitled to a commission of 5% on sales. Prepare consignment A/c and Abnormal Loss A/c in the books of the consignors.

Why is an Income and Expenditure Account 6+6 termed as Receipt and Expenditure Account in case of professiorials ? How do they account for the outstanding fees ? From the following information prepare the General Ledger Adjustment Account in Creditors' Ledger :

Opening Balance of Sundry 2,80,100

Creditors Credit Purchases 2,76,000

Payment to Creditors 2,65,000 Discount Allowed by Creditors 18,500

Returns Outwards 22,400

Bills Payable Accepted 53,000

Bills Payable Dis-honoured 5,000

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c\ 3-R (G.L. Adj.A/c)

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'kr( reio 3T9TIM ER 5,000

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4 P.T.O.

3. (a) 1.1.2013 "). 1:174-9 7§1T 10,00,000 .1T I 8+4

1-10-2013 50,000 a-)1 -) 1

1-7-2014 1,00,000 771. 1:1*9 7§tt

7.1t I -1471-1.9, fq7r*-1 1-1-2013

1,50,000 2i1, 1-4-2015 80,000 14

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T' I TV'ti I ti WO -Tea. t 31197 1T

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31-12-2015 doh T 1,1"t7 7g1UT 17117

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317k (_11 2,500 . 1. 1§149). 4 It4 I

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(d) I-1 kl 3,000 WI 4 lqr ,31k 9b

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5. (a)

(b)

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4+8

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