No.

of Printed Pages : 8 2464 7 I ECO-002

BACHELOR'S DEGREE PROGRAMME
Term-End Examination, 2019
ELECTIVE COURSE : COMMERCE
ECO-002 : Accountancy-I
Time : Two Hours] [Maximum Marks : 50
Weightage : 70%

Note : Answer any four questions including Question Number

1 which is compulsory.

1. Attempt any two questions from the following 47+7=14]

(a) Define Accounting and state its limitations.

(b) Who are interested in accounting information ?

What are their needs ?

(c) State the most commonly used instruments of

credit. Which are the various parties to a Bill of
Exchange ?

(d) What are the different types of cash books used

in business ? Explain the use of any one of these.

ECO-002/30000 (1) [P.T.O.]

2. (a) Identify the types of errors which are usually
committed in the process of accounting. [4]

(b) Rectify the following errors assuming that a

Suspense Account had been opened :

(i) A purchase of Rs. 8,000 from 'B' on credit

was debited to him.

(ii) An amount of Rs. 300 received from Mr.

C was debited to his account.

(iii) A credit sale of Rs. 500 to Ramesh was

credited to his account.

(iv) A sale of Rs. 3,000 to Goel was debited

to his account as Rs. 8,000.

Pass necessary rectifying journal entries. [8]

3. Rohan and Sohan entered into a contract to construct a

building for Rs. 40,00,000. Rohan and Sohan contributed
Rs. 20,00,000 and Rs. 15,00,000 respectively. They
agreed to share profits and losses in the ratio of 4 : 3. It
was decided that the work will be looked after by Rohan
who will be paid 5 per cent commission on contract price
in addition to his share of profits. Rohan purchased the

ECO-002/30000 (2)
 necessary materials for Rs. 32,00,000 and paid
Rs. 90,000 for expenses. Rohan also contributed building
materials from his own stock worth Rs. 2,00,000.
Rs. 50,000 remained to be paid for wages. Sohan took
over the stock of materials for an agreed valuation of
Rs. 1,60,000. The building was completed and the
contract money was duly received. Show the Joint Venture
Account and Sohan's Account in the books of Rohan
assuming that the outstanding wages were paid by
Rohan. [12]

4. (a) Explain briefly the Self-Balancing System of

Accounting. Also state its advantages. [6]

(b) What is Single Entry System ? Distinguish it from

Double Entry System. [6]

5 (a) Distinguish between Capital Reserve and

Revenue Reserve. [4]

(b) Mohan and Sons purchased a machine for Rs.

50,00,000 on April 1, 2013. The machinery was
depreciated at 10 per cent under the straight line
method. On April 1, 2016, they changed the
method of depreciation from straight line method

ECO-002/30000 (3) [P. T.0.]

 to written down value method without changing
the rate and effective from the beginning. Show
the Machinery Account from April 1, 2013 to March
31, 2017. [8]

6.. (a) Show how will you deal with the following items
while preparing the final accounts of a non-trading
concern : [4]

Donation when purpose is not mentioned.

(ii) Receipts for Tournament Fund.

(b) From the following particulars, draw up a General

Ledger Adjustment Account in the Debtors
Ledger : [8]

Rs.
Opening Balance 12,200
Credit Sales 37,200
Cash received from Debtors 20,050
Sales Returns 3,170
Discount Allowed 1,300
Bad Debts Written-off 3,710
Allowances 420
Bills Receivable Received 1,300
Bills Receivable Dishonoured 500

ECO-002/30000
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ECO-002/30000 ( 5 ) [P.T.O.]
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[8]

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1 I 15,00,000 Wil-e4 4 3 i al -147

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ECO-002/30000 (6)
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[6]
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[8]
ECO-002/30000
( 7) [P.T.O.]
6. (a) ITT

1717 GMT 1*-1kNci TT-a ttr Pi : [4]

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(b)
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[8]

12,200
gr(ftwg &fiET
37,200
\Stilt UZE
20,050
•-lqlt (debtors) # ATTI . 7ft (-1c+A)
3,170
ftwzr grcrEit
1,300
aTTia. VIA. (discount allowed)
W3I (Bad Debts W/O) 3,710
SIC 7M
420
(allowances)

ATV r TIPzr ci (B/R) 1,300

500
3T9T-4.12M. r 51-Fi ita- (B/R)

ECO-002/30000 (8)