1. To find out the true profit or loss.

2. To present the true and fair view of financial position.

Question 28. ADVERTISEMENT

Write any two examples of revenue receipt?

Answer:

1. Rent received
2. Proceeds from sale of goods.

Question 29.
What is outstanding expenses?
Answer:
Expenses which have been incurred in the accounting period but not paid
till the end of the accounting period are called outstanding expenses.

Question 30.
Write any four features of computerised accounting system (CAS)?
Answer:

1. Simple and integrated

2. Speed
3. Accuracy
4. Reliability

PART – III
ADVERTISEMENT

Answer any seven questions in which question No. 31 is compulsory. [7 ×

3 = 21]
Question 31.
Explain the meaning of accounting?
Answer:
Accounting is the systematic process of identifying, measuring,
ADVERTISEMENT

recording, classifying, summarising, interpreting and communicating

financial information. Accounting gives information on;

1. The resources available

2. How the available resources have been employed, and
3. The results achieved by their use.

Question 32.
Show accounting equation from the following information:

1. Started business with cash ₹80,000.

2. Goods bought on credit from Raj ₹10,000.
3. Purchased furniture for cash ₹6,000.

Answer:

ADVERTISEMENT
 ADVERTISEMENT

Oman Prometric Exam

for Nurses

Our unique Prometric Exam

Coaching helps to crack the exam
with first attempt

RESOLVE ITECH CORP

Open Call

ADVERTISEMENT
 ADVERTISEMENT

Question 33.
Enter the following transactions in a single column cash book of
Pandeeswari for the month of June, 2017?

ADVERTISEMENT
 ADVERTISEMENT

Answer:

Question 34.
Prepare a Sales Account from the following transactions?

ADVERTISEMENT
 ADVERTISEMENT

Answer:

ADVERTISEMENT
Question 35.
From the following balances of Arjun, prepare the Trial Balance as on 31st
March, 2018?
ADVERTISEMENT

Answer:

ADVERTISEMENT
 ADVERTISEMENT

Question 36.
From the following particulars of Siva and Company, prepare a bank
reconciliation statement as on 31st December, 2017?

1. Credit balance as per cash book ₹12,000.

2. A cheque of ₹1,200 issued and presented for payment to the bank,
wrongly credited in the cash book as ₹2,100.
3. Debit side of bank statement was undercast by ₹100.

Answer:

ADVERTISEMENT
Question 37.
The following errors was detected before preparation of trial balance.
Rectify them?
ADVERTISEMENT

1. The total of rent received account is carried forward ₹900 short.

2. The total of salary account is carried forward ₹1,100 short.
3. Sales returns book is over cast ₹800.

Answer:

1. Rent received account is to be credited with ₹900.

2. Salary account is to be debited with ₹1,100.
3. Sales returns account should be credited with ₹800.

Question 38.
Find out the rate of depreciation under straight line method from the
following details: Original cost of the asset ₹10,000; Estimated life of the
asset 10 years; Estimated scrap value at the end ₹2,000?
Answer:

ADVERTISEMENT

Question 39.
State whether they are capital and revenue:
 1. Construction of buildings ₹10,00,000.
2. Repairs to furniture ₹50,000.
3. White – washing the building ₹80,000.
ADVERTISEMENT

Answer:

1. Capital expenditure
2. Revenue expenditure
3. Revenue expenditure

Question 40.
Pass adjusting entries for the following?

1. The Closing stock was valued at ₹5,000;

2. Outstanding salaries ₹150;
3. Insurance prepaid ₹450;

Answer:

ADVERTISEMENT

PART – IV
Answer all the questions. [7 × 5 = 35]

Question 41 (a).
Bragathish is a trader dealing in electronic goods who commenced his
ADVERTISEMENT

business in 2015, for the following transactions took place in the month
of March, 2018. Pass Journal entries?

ADVERTISEMENT
Answer:

ADVERTISEMENT

[OR]
ADVERTISEMENT
(b) The following errors were located after the preparation of the trial
balance. Assume that there exists a suspense account. Pass journal
entries to rectify them?
ADVERTISEMENT

1. The total of purchases book was undercast by ₹100.

2. The total of the discount column on the debit side of cash book ₹575
were not posted.
3. The total of one page of the sales book for ₹5,975 were carried
forward to the next page as ₹5,795.
4. Salaries ₹1,800 were posted as ₹18,000.
5. Purchase of goods on credit from Mukilan for ₹150 have been posted
to his account as ₹1,500.

ADVERTISEMENT
Question 42 (a).
Show the effect of following business transactions on the accounting
equation:
ADVERTISEMENT

1. Anbu started business with cash ₹20,000; goods ₹12,000 and

machine ₹8,000.
2. Purchased goods from Ramani on credit ₹7,000.
3. Payment made to Ramani in full settlement ₹6,900.
4. Sold goods to Raj an on credit costing ₹5,400 for ₹6,000.
5. Received from Raj an ₹5,800 in full settlement of his account.

Answer:

(b) A furniture costing ₹5,000 was purchased on 01.01.2016, the

installation charges being ₹1,000. The furniture is to be depreciated @
10% p.a. on the diminishing balance method. Pass Journal entries for the
first two years?

ADVERTISEMENT
Answer:

ADVERTISEMENT

Question 43 (a).
Journalise the following transactions and past them to the ledger?

ADVERTISEMENT
 ADVERTISEMENT

[OR]

(b) Classify the following receipts into capital or revenue?

1. Sale proceeds of goods ₹75,000

2. Loan borrowed from hank ₹2,50,000
3. Sale of investment ₹1,20,000
4. Commission received ₹30,000
5. ₹1,400 wages paid in connection with the erection of new machinery

Answer:

1. Revenue
2. Capital
3. Capital
ADVERTISEMENT
4. Revenue
5. Capital
Question 44 (a).
Prepare trail balance as on 31st January, 2017?
ADVERTISEMENT

Answer:

(b) From the following information, prepare Trading and Profit & Loss A/c
of Abdul Rahuman for the year ending 31st December, 2016 and Balance
Sheet as on that date. The closing stock on 31st December, 2016 was

ADVERTISEMENT
valued ₹2,000?

ADVERTISEMENT

Answer:

Question 45 (a).
Prepare purchase book and Purchase returns book from the following of

ADVERTISEMENT
 ADVERTISEMENT

[OR]

(b) The following trial balance was extracted from the books of Arun
Traders as on 31st March, 2018?

ADVERTISEMENT
Adjustments:
 1. Depreciate plant & machinery @ 20%.
2. Wages outstanding amounts to ₹750.
3. Half of repairs and maintenance paid is for the next year.
4. Closing stock was valued at ₹15,000.
ADVERTISEMENT

Prepare Trading and Profit and Loss A/c for the year ending 31st
March, 2018 and Balance sheet as on that date.

Answer:

ADVERTISEMENT
 ADVERTISEMENT

Question 46 (a).
Prepare Three Column Cash book in the books of Thiru Durairaj?

ADVERTISEMENT
Answer:

ADVERTISEMENT

[OR]

(b) Enter the following transactions in Ahamed’s Cash book discount and
Cash columns?

ADVERTISEMENT
Answer:

ADVERTISEMENT

Question 47 (a).
From the following particulars of Raheem traders, prepare a bank
reconciliation statement as on 31st March, 2018?

1. Overdraft as per cash book ₹2,500.

2. Debit side of cash book was undercast by ₹700.
3. Amount received by bank through RTGS amounting ₹2,00,000
omitted in the cash book.
4. Two cheques issued for ₹1,800 and ₹2,000 on 29th March 2018. Only
the second cheque is presented for payment,
5. Insurance premium on car for ₹1,000 paid by the bank as per
standing instructions not recorded in the cash book.

ADVERTISEMENT
Answer:

ADVERTISEMENT

[OR]

(b) Prepare an analytical petty cash book under imprest system?

ADVERTISEMENT