DOEACC Society 2006 DOEACC B Level BE9 Accounting

BE9-R3: ACCOUNTANCY AND FINANCIAL MANAGEMENT
NOTE:
Time: three Hours Total Marks: 100
1.
a) Differentiate ranging from any 5 of the following:
i) Capital expenditure and Deferred revenue expenditure
ii) Revenues and Profits
iii) Cost Concept and Cost Matching Revenue Concept
iv) Direct Costs and Indirect Costs
v) Period Costs and Product Cost
vi) Internal users and External users of accounting info
b) ans the subsequent in not more than 50 words each:
i) What do you understand by cost of capital?
ii) What do you mean by the term “Outstanding Salaries”?
iii) State the application of Job Costing.
iv) What do you understand by Internal Rate of Return?
v) What is the implicit assumption in Money measurement concept?
c) Journalize any 4 of the subsequent transactions in the books of accounts:
i) Purchased goods for Rs. 65,000 for cash and payment made by cheque.
ii) Paid Rs. 6,000 for flowers, refreshment and rent for chairs on account of opening
ceremony of business premises.
iii) 20 Chairs @ Rs. 1,500 every and 40 tables @ Rs. 6,000 every purchased by a
furniture shop, out of which four chairs and two tables are set aside for office use.
The entire payment is made by a cheque.
iv) Rented the premises by paying a security deposit of Rs. 5,00,000 and Rent of
Rs. 10,000 for the month of April.
v) Goods sent on approval to a customer for Rs. 50,000.
(10+10+8)
2. subsequent balances have been extracted from the books of accounts of M/s. Soumya
and Associates for the year ended 31st of March 2005.
Opening Stock 4,00,000
Purchases 16,00,000
Salaries paid 3,20,000
Building 5,80,000
Cash in Hand 8,000
Cash at Bank 5,40,000
Rent, rates and taxes paid 60,000
Insurance Premium paid 12,000
Miscellaneous Receipts 40,000
Sales 28,80,000
Cash Discount allowed 19,000
Bad Debts 13,000
Repairs of Buildings 11,600
Miscellaneous Expenses 34,800
Advertisement 80,000
BE9-R3 Page one of four January, 2006
1. ans ques. one and any 4 ques. from two to 7.
2. Parts of the identical ques. should be answered together and in the identical
sequence.
Commission to Sales Manager 1,29,600
Furniture and Fittings 1,40,000
Air Conditioners 1,20,000
Sundry Debtors 4,00,000
Sundry Creditors 3,20,000
Loan on Mortgage 2,80,000
Interest paid on above 12,000
Prepaid Expenses 16,000
Drawings 72,000
Bills Payable 1,20,000
Bank Charges 8,000
Legal Expenses 54,000
Motor Vehicles 3,20,000
Travelling and Conveyance 40,000
The subsequent further info was obtained:
i) The Closing stock was valued at Rs. 2,20,000.
ii) Travelling and Conveyance include personal travelling of the proprietor to the

Earning:   Approval pending.