Accountancy – I 1

QUESTION PAPER

COMMERCE PAPER – I

MARCH – 2006
Time: 3 Hours] [Max. Marks: 100

PART – A
(Marks: 50)

I. Answer any TWO of the following questions not exceeding 40 lines

each.
2 X 10 = 20

(a) Explain the merits and demerits of Co-operative Societies.

(b) Define Joint Stock Company. Explain its characteristics.
(c) Define Money. Explain characteristics of the good money.

II. Answer any FOUR of the following questions, not exceeding 20 lines
each.
4 X 5 = 20

(a) Define Business. Explain its characteristics.

(b) State the contents of the partnership deed.
(c) Explain the Rationale of Public Enterprises.
(d) What is Indexing? Explain its types.
(e) Explain the characteristics of Equity Shares.
(f) Explain various kinds of Debentures.

III. Answer any FIVE of the following questions, not exceeding 5 lines each.
5 X 2 = 10

(a) What is Extractive Industry?

(b) ‘DAYABAGA’.
(c) Objective clause.
(d) What is statement in lieu of prospectus?
(e) Write any two advantages from Multi-national Corporations.
(f) Addressing Machine
(g) Retained earnings.
Accountancy – I 2

(h) State any two General Banking functions of Reserve Bank of India.

PART – B
(Marks: 50)
IV. Answer any TWO of the following questions. 2 X 5 = 10

(a) Explain any five accounting concepts.

(b) State the differences between Double Entry System and Single Entry system.
(c) Prepare Laxminarayana account from the following transactions.

2005 Rs.
July 1 Amount due from Laxminarayana 11,000
5 Sales made to Laxminarayana 3,000
11 Cash received from Laxminarayana 10,000
15 Cash sales to Laxminarayana 1,500
25 Goods returned by Laxminarayana 200
31 Laxminarayana’s account settled with Rs.100
discount

(d) Enter the following transactions in proper subsidiary books.

2005 Rs.
Oct. 1 Goods sold to Venkatesh 3,000
5 Goods purchased from Nagarjuna 2,500
8 Goods sold to Shriya 2,200
12 Cash purchases from Suman 800
20 Goods returned from Shriya 100
25 Goods purchased from Shriya 1,800
28 Goods returned to Nagarjuna 200
30 Goods sold to Sravanthi 1,600

V. Answer any ONE of the following 1 X 10 = 10

(a) Prepare the Triple Column Cash-book of SANIA from the following transactions.

2005 Rs.
Nov 1 Cash in hand 2,400
1 Cash at Bank 8,200
4 Purchased furniture and paid by cheque 2,000
6 Cash Sales 3,500
12 Cheque received from Saibabu for Rs.3,800 in
full settlement of his account of Rs.4, 000
(deposited in the bank on the same day)
18 Cash deposited in bank 4,000
23 Cheque given to Shyam Prasad 1,950
Discount received 50
25 Cash drawn from bank for office use 500
30 Paid salaries by cheque 1,000
Accountancy – I 3

(b) Prepare Bank Reconciliation Statement of SISODIA as on 31-12-2005 from the

following information.

(a) Balance as per Pass book Rs.9, 800

(b) Rs.4, 000 cheques deposited in the bank, but only Rs.1, 200 were collected.

(c) Amount directly deposited by a customer in the bank Rs.1, 500.

(d) Bank charges Rs.100 and Interest on Investments collected by bank Rs.400,
not entered in Cash Book.

(e) Cheques issued, but not presented for payment Rs.2, 800

(f) Insurance Premium paid by bank Rs.600 was recorded only in Passbook.

VI. Answer any FIVE of the following questions. 5 X 2 = 10

(a) Define Accountancy.

(b) Principle of Personal account
(c) Write the Journal entries for the following transactions.
(1) 2002, Feb. 1 Business started by cash Rs.25, 000
Stock Rs.5, 000
(2) 10 Goods purchased from Bhavani Rs.2, 000
(3) 18 Cash Sales Rs.4, 000
(4) 25 Commission received Rs.300

(d) What is Balancing an Account?

(e) Overdraft (O.D)
(f) Petty Cash Book
(g) Pass Opening entry from the following balances.

Rs.
Machinery 20,000
Creditors 10,000
Debtors 12,000
Bills receivable 4,000
Outstanding salaries 1,000
Bills payable 3,000
Cash in hand 1,200
Cash at Bank 6,800

(h) Prepare Trial Balance from the following Balances.

Rs.
Opening Stock 10,000
Accountancy – I 4

Sales 31,000
Purchases 22,000
Salaries 4,000
Carriage 600
Debtors 8,000
Creditors 4,000
Cash at Bank 5,400
Capital 15,000

VII. From the following Trial Balance of Sri Nidhi Stores, Hyderabad, Prepare Final
Accounts for the year ended 31-12-2005
1X 20 = 20

Debit balances Rs. Credit balances Rs.

Machinery 20,000 Sales 80,800
Opening Stock 8,000 Purchase returns 600
Salaries 6,000 Creditors 8,000
Purchases 50,600 Discount 600
Sales Returns 800 Capital 40,000
Carriage Inwards 1,600
Furniture 5,000
Debtors 20,000
Insurance and Taxes 1,200
Carriage outwards 2,500
Wages 4,000
Drawings 1,800
Bad debts 2,000
Cash in hand 800
Cash at Bank 5,700
1,30,000 1,30,000

Adjustments:

(1) Closing Stock Rs.32, 000

(2) Provide 5% reserve for doubtful debts on debtors.
(3) Outstanding salaries Rs.400
(4) Prepaid Insurance Rs.100
(5) Provide depreciation on Machinery 5% and Furniture 10%.

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