The document is an examination paper for the 2016 accounting exam, requiring students to prepare final accounts based on a provided trial balance and answer various accounting-related questions. It includes tasks such as rectifying errors, explaining concepts like depreciation and subsidiary books, and entering transactions into a cash book. The exam consists of multiple sections with specific marks allocated for each question.
The document is an examination paper for the 2016 accounting exam, requiring students to prepare final accounts based on a provided trial balance and answer various accounting-related questions. It includes tasks such as rectifying errors, explaining concepts like depreciation and subsidiary books, and entering transactions into a cash book. The exam consists of multiple sections with specific marks allocated for each question.
The document is an examination paper for the 2016 accounting exam, requiring students to prepare final accounts based on a provided trial balance and answer various accounting-related questions. It includes tasks such as rectifying errors, explaining concepts like depreciation and subsidiary books, and entering transactions into a cash book. The exam consists of multiple sections with specific marks allocated for each question.
The document is an examination paper for the 2016 accounting exam, requiring students to prepare final accounts based on a provided trial balance and answer various accounting-related questions. It includes tasks such as rectifying errors, explaining concepts like depreciation and subsidiary books, and entering transactions into a cash book. The exam consists of multiple sections with specific marks allocated for each question.
Note: Question No.1 is compulsory. Answer any FOUR from the remaining questions. Question No.1 carries 28 marks and the other four questions, 18 marks each.
Q.1 Following is the trial balance of Maheshwari & Sons, as on si" March, 2016. Prepare the final account. (28 Marks)
SI.No. Description Amount (Or) Amount (Cr)
1 Capital 1,00,000 2 Stock 20,000 3 Purchase & Sales 80,000 1,15,000 4 Sales Return 5,000 5 Wages 8,000 6 !nterest on loan from Verma & Company 12,000 7 Manufacturing Expenses 7,000 8 Salaries 5,000 9 Insurance 2,000 10 Provision for doubtful debts 2,500 11 Bad debts 500 12 Bills Payable 6,000 13 Interest 14 Land & Building 50,000 15 Machinery 60,000 16 Furniture 5,000 17 Motor Car 40,000 18 Debtors and Creditors 30,000 74,350 19 Drawings 4,000 20 Cash in Hand 1,500 21 Loan from Verma & Company on i" April. 50,000 2015 @12% per annum 22 Deposit in Bank 15,000 23 Depreciation on office equipment 2,400 24 Accrued interest on bank deposit 450 Total 3,47,850 3,47,850
Adjustments:
1. Stock at the end of the year - Rs.30,OOO
2. Insurance premium paid for 12 months on 1st July, 2015 3. Erection charges for machinery, Rs.l,500, debited to wages account 4. Write off further bad debt of Rs.500 and provision of doubtful debts increase by RS.I000 (2)
0.2 (A) Rectify any FOUR errors among the following: (8 Marks)
1. Credit.sales to Arvind of Rs.8,OOOwere recorded in Purchase Book.
2. Credit purchase from Mls Baheti Steels of Rs.l0,OOO was recorded in Sales Book. 3. Goods returned to Deva Hardware of Rs.5,OOOwere recorded in Sales Return Book. 4. Goods returned from Balaji Fabricators of Rs.3,OOOwere recorded in Purchase return Book. 5. Goods returned from Veera Ceramics of Rs. 4,000 were recorded in Purchase Book.
0.2 (B) What are subsidiary books and the advantages of maintaining them? Explain in brief, the different types of subsidiary books. (10 Marks)
0.3 Explain the. term Depreciation, its importance, the need for providing for depreciation, the different methods adopted along with the merits and demerits of each method. (18 Marks)
Q.4 Enter the following transactions in simple Cash Book and post them into Ledger:
2015 (18 Marks)
October i" Cash in Hand 10,000 • October 4th Paid to Babu 500 October 9th Purchased Goods 5,000 October iz" Sold Goods for Cash 8,000 October zs" Received Cash from Dev 2,000 st October 31 Paid rent 2,000
0.5 Write short notes on any FOUR of the following: (18 Marks)
1. Current Liabilities 2 Bad Debt Provision 3. Prepaid Expenses 4. Accounts Receivable 5. Intangible Assets 6. Trading Account
0.6 Differentiate between any of the four among the following concepts: (18 Marks)
a. Accrual and Cash Methods of Bookkeeping
b. Bills Recoverable and Demands Recoverable c. Fixed Assets and Current Assets d. Bad Debts and Doubtful Debts e. MUlti-step and Single Step Income Statement f. Journal and Ledger
0.7 Explain fully the concept of Bills Recoverable. Explain in brief at least six items under this category and the purpose for which they are billed against the sidings or parties. (18 Marks)
