Alagappa University 2008 Diploma Accounting & Finance BASIC ACCOUNTING - Question Paper

DISTANCE EDUCATION
DIPLOMA IN ACCOUNTING AND TAXATION EXAMINATION, MAY 2008.
BASIC ACCOUNTING

Time : 3 hours Maximum : 100 marks
PART A — (5 x eight = 40 marks)
ans any 5 ques..
ans to theory ques. should not exceed 200 words.

1.Define accounting. discuss limitations of accounting.
2.What do you understand by ‘Subsidiary Books’? define the objects of preparing such books.
3.What is a Bank Reconciliation Statement? Why is it prepared?
4.Journalise the subsequent transactions in the books of Ramesh.
(a)Purchase goods from Arun – Rs. 6,500
(b)Deposited in bank Rs. 4,800
(c)Purchased government securities – Rs. 15,000
(d)Paid telephone charges – Rs. 250
5.From the subsequent particulars ascertain the balance that would appear in the cash book as on 30th June, 2002.
(a)Overdraft as per pass book as on 30th June 2002 – Rs. 540
(b)Cheques drawn but not presented upto 30th June, 2002 – 2,800
(c)Cheques paid into bank but not cleared upto 30th June, 2002 – Rs. 3,900
(d)Interest on overdraft as per pass book, not entered in the cash book – Rs. 20
(e)Interest on investments collected by the bank appeared in the pass book – Rs. 400.
6.How will you rectify the subsequent errors discovered before preparation of trial balance?
(a)A sale of Rs. 730 to Manoj has been entered in the sales book as Rs. 370
(b)Rs. 400 paid as salary to Balu has been debited to his personal account
(c)Rs. 1,500 spent for repair of building has been posted to building account
(d)Goods of Rs. 600 purchased from Praveen have been omitted to be recorded in the books.
7.Prepare a Trading Account for the year ended 31st December, 2002, from the subsequent info :
Dr. Cr.
Rs. Rs.
Opening stock 30,000 –
Purchases 3,10,000 –
Purchase returns – 8,000
Sales 4,50,000
Sales returns 6,000 –
Wages 5,000 –
Closing stock was valued at Rs. 40,000.
8.On 31st December, 2000, in a club subscriptions outstanding amounted to Rs. 200 and those received in advance amounted to Rs. 300. Amount of subscriptions received during 2001 amounted to Rs. 3,500; out of this Rs. 150 related to 1999 and Rs. 80 related to 2001. On 31st December, 2001 subscriptions outstanding for 2001 amounted to Rs. 130.
Prepare the subscriptions account for 2001 to obtain out the accurate amount to be credited to income and expenditure account for the period ending 31st December 2001.

PART B — (4 x 15 = 60 marks)
ans any 4 ques..
ans to theory ques. should not exceed 400 words.

9.What are the basic accounting concepts? discuss their implications.
10.What do you mean by a trial balance? explain the main objects, limitations and methods of preparing a trial balance.
11.Discuss the main characteristics of receipts and payments account and income and expenditure account. In what concerns these are prepared?

Earning:   Approval pending.