Accountancy – I 1

QUESTION PAPER

COMMERCE PAPER – I

MARCH – 2005
Time: 3 Hours] [Max. Marks: 100

PART – A
(Marks: 50)

I. Answer any TWO of the following questions not exceeding 40 lines.

2 X 10 = 20

(a) Define a Co-operative society and state the principles and characteristics of Co-
operative societies with examples.

(b) Distinguish between a private company and a public company.

(c) Explain the functions of Reserve Bank of India (RBI)

II. Answer any FOUR of the following questions not exceeding 20 lines.
4 X 5 = 20

(a) Define trade and explain the different types of trades with relevant examples.
(b) Discuss the rights, duties and liabilities of partners.
(c) What are the problems of Public Enterprises?
(d) What factors are to be considered in the selection of a communication system?

(e) Explain redeemable preference shares.

(f) Explain the merits of debentures as a source of finance.

III. Answer any FIVE of the following questions not exceeding 5 lines each.
5 X 2 = 10

(a) Define commerce.

(b) Minor partner.
(c) Articles of Association
(d) Minimum Subscription.
(e) Define Public Enterprises.
Accountancy – I 2

(f) Indexing
(g) Limitations of Institutional Finance.
(h) NABARD

PART – B
(Marks: 50)
IV. Answer any TWO of the following questions.
2 X 5 = 10

(a) Define accountancy and explain its function.

(b) Explain the rules/principles of debit and credit of different
accounts with examples.

(c) Prepare Venkatesh a/c up to 31-12-2003 in the books of

Vandana Stores and find out whether he is a debtor or
creditor.

2003 Rs.
Dec 4 Sold goods to Venkatesh 5,000
7 Cash received from Venkatesh 4,000
12 Returned goods by Venkatesh 200
17 Purchased goods from Venkatesh 2,000
19 Received cash from Venkatesh 1,000
21 Goods returned from Venkatesh 1,000
24 Venkatesh purchased goods from Vandana Stores 1,500
28 Venkatesh bought goods for cash 800

(d) Record the following transactions in the purchase book.

2004 Rs.
Mar 1 Goods purchased from Krishna 5,000
4 Purchased goods from Pal for cash 2,000
6 Goods purchased form Choudary 1,000
8 Goods purchased from Prasad 500
12 Goods purchased from Naveen brothers 15,000
21 Goods purchased from Upendra 2,500

V. Answer any ONE of the following questions:

1 X 10 = 10

(a) Prepare triple column Cash Book from the following:

2004 Particulars Rs.

June 1 Cash in hand 8,000
Cash at Bank 5,800
4 Cash sales 3,200
6 Issued a cheque to ‘B’ 2,950
Discount 50
7 Received cash from ‘R’ 1,200
Accountancy – I 3

Cheque 2,500
Discount 100
12 Cash withdrawn from bank for office use 800
20 Paid salaries by cheque 1,000

(b) Prepare bank Reconciliation Statement of Maruthi as on 31-12-2003.

(b) Overdraft as per cash book as on 31-12-2003 Rs.6, 000

(ii) Interest on overdraft Rs.200. Bank charges, Rs.50 debited in the passbook only.

(iii) Cheques issued but not cashed before 31-12-2003 are Rs.1, 500

(iv) Cheques paid in bank, but not collected before 31-12-2003 are Rs.1, 800

(v) Interest on Govt. Securities collected and credited in the passbook only Rs.2,
000.

VI. Answer any FIVE of the following questions.

5 x 2 = 10

(a) Consistency.
(b) Single entry system
(c) Define ledger.
(d) Credit Note
(e) Contra entry
(f) Explain the two causes for showing differences between the balances of Cash
Book and Pass Book

(g) Write Journal entries

2003 Rs.
Mar 9 Started business 10,000
11 Cash Sales 2,000
13 Purchases 1,500
14 Sold plant and machinery 3,000

(h) Prepare Trial Balance on 31-12-2003

Cash on hand 10,000

Cash at Bank 35,000
Salaries 2,000
Purchases 2,00,000
Sales 2,25,000
Stock 20,000
Buildings 20,000
Bills payable 5,000
Bills receivable 5,000
Capital 62,000
Accountancy – I 4

VII. Answer the following questions.

1 X 20 = 20

From the following trial balance as on 31-12-2003 prepare Trading, Profit and Loss
a/c and Balance Sheet.

Trial Balance
Debit balance Rs. Credit Balance Rs.
Salaries 6,000 Capital 25,000
Purchases 26,000 Sales 47,000
Trade Expenses 1,000 Discount 200
Wages 7,800 Creditors 21,000
Carriage 400 Bills payable 6,800
Office expenses 500
Commission 600
Bad debts 1,200
Debtors 30,000
Furniture 3,000
Machinery 10,000
Insurance 400
Bills receivable 2,000
Opening Stock 7,000
Cash in hand 500
Cash in bank 3,600
1,00,000 1,00,000

Adjustments:

(a) Closing Stock Rs.11, 000

(b) Outstanding wages Rs.2, 000
(c) Prepaid Insurance Rs.50
(d) Provide bad debts reserve at 5%
(e) Depreciation on machinery and furniture by 5%.

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