Annamalai University 2010-1st Year B.Sc Mathematics - .- Maths - - Ancillary - Accountancy - Question Paper

B.Sc. DEGREE EXAMINATION, 2010
( MATHEMATICS )
( 1st YEAR )
( PART - III - B : ANCILLARY )
550. ACCOUNTANCY - I
May ] [ Time : three Hours
Maximum : 75 Marks
part - A ( six × five = 30)
ans any 6 ques..
All ques. carry equal marks.
1. What is double entry system ? discuss its principles.
2. describe 'ledger'. Why is it known as the principal books of accounts ?
3. What do you understand by 'trial balance'? explain its main objects.
4. elaborate subsidiary books ? Name them.
5. discuss 'business entity concept' and 'money measurement concept'.
6. What is a bank reconciliation statement ? State the causes of the difference in balances
ranging from pass book and cash book.
7. discuss 'rectification of errors'. Why is it necessary ?
8. elaborate adjusting entries in final accounts? Why are they needed ?
9. State the various methods of providing depreciation.
10. Write short notes on :
(a) Account current.
(b) avg. due date.
part - B ( three × 15 = 45)
ans any 3 ques..
All ques. carry equal marks.
11. From the subsequent list of balances, prepare the trading and profit and loss account for the
year ended 31st December, 2008 and a balance sheet on that date after taking the adjustments :
Rs.
Doss 's capital 60,000
Land & buildings 36,000
Printing & stationery 600
Rent & rates 800
Insurance 400
Sales 62,000
Fuel & power 1,700
Debtors 21,000
Sales returns 1,500
Commission received 400
Bills receivable 1,000
Cash 2,000
Drawings 2,000
Salaries 6,000
Wages 2,000
Purchases 40,000
Stock at the beginning 10,000
Carriage 400
Loan borrowed 5,000
Creditors 10,000
Purchase returns 1,200
Furniture 2,000
Discount (Dr.) 1,200
Adjustments :
1. Closing stock was Rs. 12,000.
2. Interest on capital 5%.
3. Insurance prepaid Rs. 100.
4 Outstanding wages Rs. 400 and salaries Rs. 250.
5. Commission receivable Rs. 200.
6. Write-off bad debts Rs. 1,000 and create a provision for bad debts at five %.
7. Depreciation on machinery 10 % and furniture five %.

12. Mr.Asokan accepted the subsequent bills drawn by Akbar. obtain out the avg. due date.
Date of bill Terms Amount Rs.
15-1-2008 two months 5,000
18-1-2008 one month 2,500
3-2-2008 two months 8,000
15-2-2008 three months 2,000

13. Pass journal entries to rectify the subsequent
errors :
1. Rs. 1,000 spent to repair the building was posted to buildings account.
2. A sale of Rs. 730 to Mohan was entered in the sales book as Rs. 370.
3. Goods worth Rs. 300 purchased from Gandhi was omitted to record in the books.
4. Rs. 400 paid as salary to Prakash was debited to his personal account.
5. Rs. 75 discount received was debited to discount account.
6. The total of sales book has been added Rs. 100 much.
7. Sales to Murugan Rs. 2,000 was wrongly debited to Murugan account.

14. A machinery was acquired on first January, 2004 at a cost of Rs. 40,000. The life of the
machinery was five years. It was decided to establish a depreciation fund to give funds
for replacement. Investments are expected to yield a net 5% interest. Sinking fund tables
show that Re. 0·180975 invested annually at 5% produces Re.1 in 5 years. Prepare a
depreciation fund account and depreciation fund investments account for five years.

Earning:   Approval pending.