Explain The Following Terms in Not More Than Two Sentences Each: 1x 10 10

ACCOUNTANCY
Full Marks : 100 Time : 3 hours
1. Explain the following terms in not more than two sentences each : 1x 10 = 10
(a) Capital (b) Book-keeping (c) Drawings (d) Liabilities(e)Depreciation (f)
Current Assets (g) Prepaid expenses (h) Journal (i) Sundry creditor (j) Accounting
Equation.
2. Classify the following documents under personal, real and nominal headings: 1x5=5
(a) Wages outstanding (b) Kalyani publishers (c) charity account (d) Purchases
return account (e) Reserve for discount on debtors.
3. Correct the following journal entries: 1x10 = 10
S.L. No. Transactions Entries

1 Received interest from Mr.x Interest A/c Dr.
To Mr.x
2 Salary due in the month December. Cash A/c Dr.
To Outstanding salary A/c
3 Installation expenses incurred on Installation charges A/c Dr.
the machine To Machinery A/c
4 Computer purchased on cash Purchased A/c Dr.
To Cash A/c
5 Commission received in cash Commission A/c Dr.
To Cash A/c
6 Cash withdrawn by the Proprietor Capital A/c Dr.
for self To Cash A/c
7 Receipt on account from Amitabh Amitabh A/c Dr.
To Cash A/c
8 Rent paid to Landlord Rent A/c Dr.
To Landlord A/c
9 Salary paid to Gorika Salary A/c Dr.
To Gorika A/c
10 Received Cheques on account of Sales A/c Dr.
sales To Bank A/c
4. Fill in the Blanks with appropriate words: 1x5 = 5
(i) Nominal account having credit balance represents…………
(ii) Real account can’t have ………. Balance.
(iii) Journal is a book of …………
(iv) Goods distributed as “free samples” should be debited to ……. Account.
(v) When cash is deposited into and withdrawn from bank, the entry is the cash book
is called ……..
5. Answer the following questions within two to three sentences. 2x5 = 10
(i) Give an example of contra entry.
(ii) What is triple column cash Book?
(iii) What is mean by transaction?
(iv) Explain modern rules of double entry system.
(v) What is Accounting year?
GROUP B
Answer any Five Questions from the Followings: 5x12 = 60
6. Journalise the following transactions and post them into ledger.

2008
July 1 Business commenced with cash Rs.40, 000 and own equipments Rs. 8,000
July 4 Deposited into bank Rs. 9,000
July 9 Bought furniture for office use Rs.5,000
July 10 Drew from bank for office use Rs. 2,000
July 11 Bought goods of Rafique Rs. 410
July 17 Paid Rafique in full settlement Rs.400
July 25 Repaid the loan to sunny Rs. 1,000
July 30 Goods uninsured worth Rs. 5,000 were destroyed by fire.
July 31 Interest on capital Rs.500.
7. The following balances appear in various accounts on 31-12-2006. You are

asked to prepare a Trial Balance. Rs.
Rs.
Capital 20,000 Apprentice premium 300

Machinery 8,000 Insurance premium 200
Building 9,000 Interest on investment 600
Carriage inward 500 Bank charges 100
Debtors 6,000 Discount allowed 300
Return inwards 900 Creditors 3,000
Bills payable 1,950 Provision for doubtful debts 650
Loan from Raj & Co. 8,000 Rent outstanding 1,200
Opening stock 500 Sales 9,000
Bank 1500 Purchases 3,500
Cash 500 Furniture 2,000
Drawings 2,000
8. From the following trial balance and subjoined information, prepare trading
and profit and loss account for the year ending 31 st March, 2010 and balance
sheet as on that date.
Debit balance Rs. Credit balance Rs.

Drawings 1,420 Capital account 8,500
Machinery 1,900 Sales 23, 812
Stock 1st April. 2009 2,920 Return outward 582
Purchases 20,724 Apprentice premium 240
Sundry expenses 880 Bank overdraft 400
Return inward 420 Sundry creditors 2,000
Rent 240 Provision for doubtful debts 210
Rates and taxes 400 Bills payable 360
Bad debts 344 Discount 120
Sundry debtors 6,400
Cash at office 96
Bills receivable 480
Adjustments:
(a) Stock on 31st March, 2010 was Rs.3,400.

(b) Provide for doubtful debts at 5% on sundry debtors.
(c) Rent due was Rs. 80
(d) Taxes, Rs.160 were paid in advance.
(e) Depreciate machinery at 10% p.a.
(f) Apprentice premium , Rs.40 was received in advance.
(g) Charge interest on capital at 5% p.a.

9. Enter the following transactions in the three columnar cash book and balance
it.
2006
Nov. 1 Balance of cash in hand Rs. 14,000 and in bank Rs. 10,000.
Nov. 2 Received cash from Mohan Rs. 1,000 and allowed him discount Rs. 30.
Nov. 3 Paid into the bank Rs. 2,000.
Nov. 4 Paid to Divakar by cheque Rs.320 in full settlement of their
account for Rs.350.
Nov. 5 Received from cash sales, cash Rs. 275 and cheque Rs.225.
Nov. 6 Paid for purchases by cheque Rs.645.
Nov. 7 Paid by cheque to Ravi Rs. 725 in full settlement of Rs.800.
Nov. 8 Drew from bank for office use Rs.900 and Rs.100 for personal use.
10. From the following particulars prepare a bank reconciliation statement and
ascertain the balance as per Pass book as on 31st March, 2009.
(i) Balance as per cash Book on 31st March, 2009 was Rs.12,000.
(ii) Cheque issued Rs, 2000 were not presented at Bank by 31-03-09.
(iii) Cheques for Rs.8,000 were deposited in bank but were not cleared.
(vi) Bank received interest on Debenture on behalf of Madhab amounting to Rs.250.

(vii) Bank charges debited in pass book but not recorded in cash book Rs.50.
(viii) A cheque for Rs.200 received from Dhaban and deposited in bank was
dishonoured.
(ix) An amount of Rs. 1,500 was directly deposited by a debtor into bank.
(x) Cheques totaling Rs.800 have been deposited into bank on 20th March, but only
cheque amounting to Rs.300 have been collected and credited in pass book.
(xi) A bill receivable for Rs. 1248.20 was collected by bank but there was no entry
regarding this in the cash book.
11. What is Book-keeping? What are the objectives of Book-keeping ? What are
the advantages of Book-keeping? How does Book-keeping differ from
Accountancy?

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ACCOUNTANCY

Full Marks : 100 Time : 3 hours

S.L. No. Transactions Entries

Answer any Five Questions from the Followings: 5x12 = 60

6. Journalise the following transactions and post them into ledger.

7. The following balances appear in various accounts on 31-12-2006. You are

Capital 20,000 Apprentice premium 300

Debit balance Rs. Credit balance Rs.

(a) Stock on 31st March, 2010 was Rs.3,400.

(g) Charge interest on capital at 5% p.a.

(vi) Bank received interest on Debenture on behalf of Madhab amounting to Rs.250.

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