Alagappa University 2007 Diploma Accounting & Finance BASIC ACCOUNTING - Question Paper

2007.
BASIC ACCOUNTING
Time : 3 hours Maximum : 100 marks


PART A — (5 x eight = 40 marks)


ans any 5 ques..
1. State the objectives of Accounting.
2. What are the accounting conventions?
3. What are the different kinds of subsidiary books?
4. What is meant by Errors? elaborate its different kinds?
5. Differentiate ranging from Trading Account and Profit and Loss Account.
6. Pass Journal Entries for the subsequent transactions:
(a) Capital Introduced Rs. 1,50,000.
(b) Cash purchases Rs. 40,000.
(c) Purchases from ‘‘X’’ Ltd., Rs. 50,000.
(d) Goods sold to ‘‘Y’’ Rs. 1,25,000.
7. Prepare Trading Account from the subsequent particulars.
Rs.
Opening stock 2,50,000
Closing stock 4,75,000
Cash purchase 3,70,000
Credit purchase 8,25,000
Cash sales 5,10,000
Credit sales 11,50,000
Return to suppliers 25,000
Return by customers 20,000
Goods distributed as free samples 4,000
Duty and clearing charges 55,000
Goods with drawn for personal use 21,000
8. From the subsequent particulars prepare Bank Reconciliation statement.
Balance as per cash Book on 30.6.1999 Rs. 10,000
Cheque issued but not presented into bank before 30.6.1999 Rs. 1,000.
Cheque deposited but not credited by the bank Rs. 3,000.
Interest credited in the pass book Rs. 100.


PART B — (4 x 15 = 60 marks)


ans any 4 ques..
9. Differentiate ranging from Income and Expenditure Account and Receipts and Payments account.
10. Explain the Accounting concepts.
11. Explain the errors which are disclosed by the Trial balance.
12. From the subsequent Trial Balance, prepare Trading profit and loss account and balance sheet.
Trial Balance as on 31.12.1995
Particulars Debit
Rs. Credit
Rs.
Cash in hand 2,400
Purchases 2,40,000
Stock 1.1.1995 70,000
Sundry Debtors 1,00,000
Plant and Machinery 1,20,000
Furniture 30,000
Bills Receivable 40,000
Rent and Taxes 20,000
Wages 32,000
Salaries 37,600
Capital 2,00,000
Bills Payable 44,000
Sundry Creditors 48,000
Sales 4,00,000
6,92,000
6,92,000
Adjustments :
(a) Closing stock Rs. 50,000
(b) Outstanding wages Rs. 5,000
(c) Depreciate plant and machinery at 10% and furniture at 5%.
13. From the subsequent info prepare bank Reconciliation statement as on 31.12.1982.
(a) Bank overdraft as per pass book Rs. 16,500.
(b) Cheque issued but not presented for payment
Rs. 8,750.
(c) Cheque deposited with the bank but not collected Rs. 10,500.
(d) Cheque received in the cash book, but not sent to the bank for collection Rs. 2,000.
(e) Payments received from customers directly by the bank Rs. 3,500.
(f) Bank charges debited in the pass book Rs. 20.
(g) Premium of life policy paid by the bank Rs. 180.
(h) A bill for Rs 3,000 (discounted with the bank in November) dishonour on 31.12.1982 and noting charges paid by the bank Rs. 10.
14. A Book keeper obtains that the debit side of the Trial Balance is short by Rs. 308 and the difference is entered in the suspense account and the subsequent errors were located.
(a) Goods sold to Madan for Rs. 102 was posted to his account as Rs. 120.
(b) Rs. 100 being the monthly total of discount allowed to customers were credited to discount account in the ledger.
(c) Rs. 275 paid by Madan was credited to Mohan account.
(d) Rs. 26 for the purchase of stationary recorded in the cash book have not been posted to the ledger.
(e) The debit side of the purchase book was undercast by Rs. 100.
Make necessary Journal entries and suspense account.
15. Following is the Receipts and payments account of a Delhi Foot Ball Club as on 31st December 1990.
Receipts and Payments Account.
Receipts Rs. Payments Rs.
Donations 50,000 Building 40,000
Life member
subscription
4,000 Tournament
Expense
900
Tournament Fund 8,000 Furniture 2,100
Subscriptions 5,200 Investments 16,000
Locker Rent 50 Salaries 1,800
Interest on Investment 240 Wages 600
Sundry receipts 350 Insurance premium 350
Telephone Charges 250
Electricity charges 110
Sundry Expenses 210
Cash balance 5,520
67,840 67,840
Additional info :
(a) Subscription outstanding Rs. 250.
(b) Salary Outstanding Rs. 170.
(c) Wages Outstanding Rs. 90.
(d) Sundry expenses outstanding Rs. 40.
(e) Prepaid Insurance Premium Rs. 50.
(f) Donations to be fully captalised.
Prepare Income and Expenditure account and Balance sheet of Foot Ball club for the year ended 31.12.1990.

Earning:   Approval pending.