I.

Answer any Five of the following 5X5=25M

1. Define accounting? Explain the accounting cycle.
2. Differences between Book keeping and accountancy?
3. Explain the different types of commissions allowed to consignee?
4. differences between consignment and sales?
5. What are the reasons for difference between cash book and pass book.
6. Explain various types of errors.
7. Explain different types of subsidiary books.
8. Explain the causes of Depreciation?
II. Answer all the following questions 5X10=50m.
9(a). classify the following accounts into personal, real and nominal:
i. Sales v. Interest ix. Krishna & Bros.
ii. Drawings vi. Investments x. Capital
iii. Cash at bank vii. Patents
iv. Land and buildings viii. Bad debts.
(Or)
9.(b). journalize the following transactions.
2015 Jan-1 Rama Raju started business with cash Rs. 20,000, bank Rs. 30,000 and machinery Rs. 40,000
Jan-3 Purchase goods from Ramana Rs. 5,800 for cash.
Jan-5 paid office rent by Cheque Rs. 2,500.
Jan-7 Sold goods to Aravind for cash Rs. 20,000 (T.D. at 5%).
Jan-9 Paid commission by cheque Rs.3,000
Jan-15 cash withdrawn from bank Rs. 15,000
Jan-17 interest received from Raju Rs. 5,000 by cheque.
Jan-19 sold machinery to Giri Rs. 10,000
Jan-21 Loan taken from SBI Rs. 6,500
Jan-25 purchase goods from Arjun Rs10,000

10.(A). Prepare triple column cash book from the following.

2010
April-1 Cash in hand Rs. 50,000 and Bank OD Rs. 3,000
April-3 Cash sales 18,000 April-19 Interest Received 4,500
April-5 cash deposited into bank 4,500 April-21 Cheque Received from Karthik 3,000
April-7 Cheque received from Krishna 6,000 (cheque Sent to bank)
& Discount 200 April-25 cash with drawn for office use 1,200
April-9 purchases 2,500 April-27 Rent paid 2,000
April-11 Above cheque sent to bank April-29 sold furniture 3,500
April-13 commission paid by cheque 500 April-31 Salaries paid 2,000
April-17 Cash paid to NTR & Discount150; 1,500

10(b). Prepare Bank reconciliation statement as on 31-12-2005

a. Bank balance as per Pass book 12,500
th
b. Cheque sent to bank on 29 Dec but not collected 3,500
c. Cheques issued on 27th Dec but not presented 4,000
d. An standing instructions insurance premium paid by bank 1,500
e. Bank charges credited only in cash book 150
f. A customer directly cash deposited in to bank 2,000
g. A wrong debit given by the bankers 500
h. A Cheque Rs. 1600 sent to bank for collection was dishonored but no intimation was received.
 11.(a) from the following trail balance prepare final account as on 31-12-2015

Debit balances Amount Credit balances Amount

Debtors 32,000 Creditors 10,250
Opening stock 22,000 Commission 4,900
Cash at bank 1,580 Sales 1,40,000
Rent 2,100 Bills payable 7,500
Insurance 4,000 Purchase returns 1,130
Purchase 1,20,000 Capital 79,500
Discount allowed 1,100
Premises 34,500
Plant and machinery 17,500
Carriage 1,000
Sales returns 5,500
Salaries 2,000

2,43,280 2,43,280

a) Closing stock Rs. 12,000 c) Depreciate machinery by 10%.

b) Outstanding rent 300
d) Write of 2000 as bad debts and provide 5% doubtful debts on debtors.
e) There is fire accident destroyed goods worth Rs. 10,000 and insurance company agree to pay Rs. 8,000.

11(b). Rectify the following transaction:

a. A sale of old furniture of Rs. 1,400 has been credited to sales account.
b. Purchase book was over costing by Rs.200
c. A sale of Rs. 1,000 to Guptha & co was credited to their account.
d. Rs.2,000 paid as a rent to Landlord was recorded to his account.
e. Under costing of sales book for Rs. 1,500.
12 (a). a firm purchased a machinery on 1.1.2003 for Rs. 40,000. On 1.7.2004 additional machinery costing
20,000 was acquired. On 1.10.2005 the machinery acquired on 1.1.2003 was sold for Rs. 25,000 and on same day
new machinery was purchased for 38,000. Assuming that 10% depreciation is charged under diminishing balance
method. Show machinery account up to 31.12.2006.

12(b). A company acquired a machinery on lease costing Rs. 1,00,000 on 1-1-2006 for a term of 4 years. It
decided to write off depreciation on annuity method. Rate of interest 5% P.a. the annuity table shows that sum of
Rs. 28,201 should be written off every year. Prepare ledger accounts for four years .

13(a). 1,000 toys were consigned by Sitha & Co. of Kanpur To Suman &Co. of Kurnool at a cost of Rs. 300each.
Sitha &Co. paid fright and insurance 23,000. During the transit 100 toys are totally damaged by fire and
Insurance Company accepted to pay Rs 25,000.

Suman & Co took delivery of remaining toys and paid Rs. 28,800 as a customs duties and sent a bank draft for
Rs. 1,00,000 as advance and later sent an account sales showing that 800 toys were sold for Rs.440 each and
they entitled to commission of 5%.prepare ledger accounts in the books of Sitha & Co.

13(b). Krishna and Jeevan under take jointly to construct a building for Rs. 12,00,000. A joint bank account was
opened in their name, Krishna paying in Rs. 2,25,000 and Jeevan Rs. 1,35,000. They are to share profit and loss
in the ratio of 2:1. Their transactions were as follows:
Paid wages 2,70,000, bought materials 6,30,000 material supplied by Krishna from his stock Rs. 45,000 and by
Jeevan from his stock 36,000. Plan fee paid by Krishna 18,000. The contract price was duly received . the closing
stock take over by Jeevan at an agreed value of 27,000.
Prepare joint venture account, joint bank account and co-ventures account.