SUBJECT CODE: BHM EXAM DATE: 06-02-2020

ROLL NO.:
STATE INSTITUTE OF HOTEL MANAGEMENT
INDORE
MID TERM EXAM - 2020
COURSE : 2nd Semester of 3-year B.Sc. in H&HA
SUBJECT :
TIME ALLOWED :1 Hour 30 Minutes MAX. MARKS: 50
(Marks allotted to each question are given in brackets)

Q1. How will you classify the following into personal, real and nominal accounts? (i) Investments (ii) Freehold
Premises (iii) Outstanding Interest (iv) Punjab Agro Industries Corporation (v) Janata Allied Mechanical Works (vi)
Salary Accounts (vii) Loose Tools Accounts (viii) Purchases Account (ix) Indian Bank Ltd. (x) Capital Account (xi)
Brokerage Account (xii) Toll Tax Account (xiii) Dividend Received Account (xiv) Royalty Account (xv) Sales
Account. (10 Marks)

Q2. : Journlize the following transactions. (a) Ramesh started his business with cash (b) Borrowed from Nikhil (c)
Purchased furniture (d) Purchased furniture from Mohan on credit (e) Purchased goods for cash (f) Purchased goods
from Ram on credit (g) Sold goods for cash (h) Sold goods to Hari on credit (i) Received cash from Hari (j) Paid cash
to Ram (k) Deposited into bank (l) Withdrew cash for personal use (m) Withdrew from bank for office use (n)
Withdrew from bank for personal use (o) Received cash from a customer, Shyam (p) Paid salary by cheque (q)
Received donation in cash (r) Paid to Ram by cheque (s) Paid salary (t) Paid rent by cheque (u) Goods withdrawn for
personal use (v) Paid an advance to suppliers of goods (w) Received an advance from customers (x) Paid interest on
loan (y) Paid instalment of loan (z) Interest allowed by bank. (10 Marks)

Q3Jan. 1. Cash in hand Rs. 50,000. 2. Paid into bank Rs. 10,000. 3. Bought goods from Hari for Rs. 200 for cash. 4.
Bought goods for Rs. 2,000 paid cheque for them, discount allowed 1% 5. Sold goods to Mohan for cash Rs. 250. 6.
Received a cheque from Shyam to whom goods were sold for Rs. 800. Discount allowed 12.5% 8. Purchased an old
typewriter for Rs. 200. Spent Rs. 50 on its repairs. 9. Bank notified that Shyam’s cheque has been returned
dishonoured and debited to the account in respect of charges Rs. 10. 10. Received a money order for Rs. 25 from Hari.
11. Shyam settled his account by means of a cheque for Rs. 820, Rs. 20 being for interest charged. 12. Withdrew from
bank Rs. 10,000. 18. Discounted a bill of exchange for Rs.1,000 at 1% through bank. 20. Honoured our own
acceptance by cheque Rs. 5,000. 22. Withdrew for personal use Rs. 1,000. 24. Paid trade expenses Rs. 2,000. 25.
Withdrew from bank for private expenses Rs. 1,500. 26. Purchased machinery from Rajiv for Rs. 5,000 and paid him
by means of a bank draft purchased for Rs. 5,005. 27. Issued cheque to Ram Saran for cash purchase of furniture Rs.
1,575. 28. Received a cheque for commission Rs. 500 from R. & Co. and deposited into bank. 29. Ramesh who owned
us Rs. 500 became bankrupt and paid us 50 paisa in a rupee. 30. Received payment of a loan of Rs. 5,000 and
deposited Rs. 3,000 out of it into bank. 31. Paid rent to landlord ‘Mohan’ by a cheque of Rs. 500. 31. Interest allowed
by bank Rs. 30. 31. Half-yearly bank charges Rs. 50. (10 Marks)

Q4. State whether the following statements are true or false: a) The ‘materiality concept’ refers to the state of ignoring
small items and values from accounts. b) Accounting principles are rules of action or conduct which are adopted by
the accountants universally while recording accounting transactions. c) The ‘separate entity concept’ of accounting is
not applicable to sole trading concerns and partnership concerns. d) The ‘dual aspect’ concept result in the accounting
equation: Capital+Liabilities = Assets. e) The ‘conservatism concept’ leads to the exclusion of all unrealised profits. f)
The balance sheet based on ‘Cost concept’ is of no use to a potential investor. g) Accounting standards are statements
prescribed by government regulatory bodies. h) Accounting statements are statements prescribed by professional
accounting bodies. i) Accounting concepts are broad assumptions. J) The Policy of ‘anticipate no profit and provide
for all possible losses’ arises due to convention of Conservatism. (10 Marks)

Q5. Prepare the Trail balance from the following data.

Cash Account 580, Interest received 200, Bank Account 25,000, Stock Account 20,000, Furniture Account 2,000,
Building Account 10,000, Carriage inward 1,000, Depreciation 2,000, Capital Account 55,000, Babu's Loan Account
10,000, Purchases Account 8,800, Discount received 380, Rent received 5,000, Plant Account 5,300, Interest on Loan
Account 500, Provision for bad debts 5,000, Sales Account 2,100 ,Bad Debts Account 300, Salary Account
2,000,Drawings Account 200. (10 Marks)