4 MARKS:

UNIT-I

1. Explain ‘Journal ‘? Explain its Importance.

2. What is ‘Ledger’? How is it maintained?
3. Explain the Significance of ‘Ledger’?
4. Distinguish between ‘Journal’ and ‘Ledger’.
5. What are ‘Subsidiary Books’?
6. Draw up a trial balance, using imaginary accounts and figures.
7. Explain different types of errors with appropriate examples.
8. What is Suspense account ? Why is it opened?
9. Explain different kinds of ‘cash book’ and their specific uses.
10. Write short notes on: a). Contra Entries b).Imprest System
11. Journalize the following transactions in the books of Sri devi.
1987 Oct 1 Commenced business with Rs.50,000
3 Purchased goods for cash Rs.10,000 at 5% trade Discount
4 Paid Carriage Rs.50
8 Purchased Machinery for Rs.20,000
10 Sold goods to Madan on account for Rs.15,000
12. Journalize the following transactions and post them in the Ledger.
i). Ram Started business with a Capital of Rs.10,000
ii). He Purchased Furniture for Cash Rs.4,000
iii). He Purchased goods from Mohan on Credit Rs.2,000
iv). He Paid cash to Mohan Rs.1,000
12. Prepare the Trial Balance from the following:
Capital 9,000 Bank Loan 22,000
Plant& Machinery 12,000 Rent Outstanding 1,000
Purchases 8,000 Opening Stock 2,000
Sales 12,000 Sales Returns 4,000
Sundry Creditors 8,000 Investments 14,000
Debtors 12,000

13. Rectify the Following Errors:

a). Purchases Book is over cast by Rs.300(for the month of March)
b). Sales book has been under cast by Rs.200
c). Purchase Returns book has been over cast by Rs.75
d) . Sales Returns book has been under cast by Rs.50
14. Enter the following transactions in a Simple Cash book of Shri.Raman
i). Commenced business with Cash Rs. 24,000
ii). Bought goods for cash Rs.6,000
iii). Goods Sold for Cash Rs.11,200
iv). Paid to Bank Rs.2,500
v). Sold Goods to Ganesan on Credit Rs.9,000
UNIT- II
1. Briefly explain the purpose of preparation of Final Accounts.
2. Distinguish between balance sheet and Trial Balance.
3. Give Specimen for ‘Manufacturing Account’?
4. Explain the Features of Manufacturing Account?
5. Give Adjustments following entries:
a).Closing Stock b). Outstanding Expenses c).Interest on Capital
6. Explain the Classification of Assets and Liabilities.
7. Explain the Closing Entries for Profit & Loss A/C
8. Prepare the Trading Account.
Opening Stock 80,000 Purchase Returns 10,000
Purchases 8,60,000 Sales Returns 3,16,000
Freight Inward 52,000 Closing Stock 1,00,000
Wages 24,000 Import Duty 30,000
Sales 14,40,000
9. Prepare Balance Sheet.

Capital 1,00,000 Sundry Creditors 80,000

Closing Stock 40,000 Liabilities for 11,000
Expenses
Fixed Assets less Depreciation Rs.16,000 72,000 Drawings 6,000
Sundry Debtors 1,00,000 Cash & Bank 20,000
Provision for Bad debts 5,000 P & L A/C 42,000
10. Pass necessary adjustment entries for the following adjustments:
a). Insurance unexpired Rs.200
b). Salaries Outstanding Rs.10,000
c). Closing Stock Rs.55,000
d). Interest has accrued on Investments Rs.5,000
e). Commission received in advance Rs.500
UNIT – III
1. What is Single Entry System? What are its Limitations?
2. Explain Single Entry System. How does it differ from double entry System?
3. Explain the meaning and differences between balance Sheet and Statement of Affairs.
4. State the features and defects of Single Entry System.
5. Mention the Procedure for Calculating Profit
a). Statement of affairs Method b). Conversion Method
6. Calculate the Profit from the following details:
Capital in the beginning 80,000
Capital at the end 90,000
Drawings 18,000
Additional Capital introduced 5,000
7.Calculating the missing Figure:
Profit made during the year 2,400
Capital at the end 8,000
Additional Capital 2,000
Drawings 1,200
Capital in the beginning ?
8. Calculate the Profit.

1-1-1996 31-12-1996
Stock 20,000 25,000
Debtors 30,000 51,000
Creditors 40,000 20,000
Bank 10,000 5,200
Drawings --- 100

UNIT – IV
1. Define Depreciation? What is the necessity for providing depreciation?
2. Explain the meaning of and cause for depreciation.
3. What are the factors affecting the amount of Depreciation?
4. Explain the various methods of providing Depreciation.
5. Distinguish between Straight line method and Written Down value method.
6. Write Short notes on the following methods of Depreciation:
a). Annuity Method b). Sinking Fund Method c). Revaluation Method
d). Depletion Method e). Machine hour Method
7. A Company purchased a plant for Rs.50,000. The useful life of the plant is 10 years and the residual value is
Rs.10,000. Find out the Rate of depreciation under the Straight line method.
8. A Machine purchased on 1st July 1983 at a cost of Rs.14,000 and Rs.1,000 was spent on its installation. The
depreciation is written off at 10% on the original cost every year. The books are closed on 31st December each year.
The machine was sold for Rs.9,500 on 31st March 1986. Show the Machinery account for all the years.
9. A firm purchases a 5 years lease for Rs.80,000 on 1st January. It decides to write off depreciation on the Annuity
Method, presuming the rate of Interest to be 5% Per annum. The annuity tables show that a sum of Rs.18,478
should be written off every year. Show the lease account for five years. Calculations are to be made to the nearest
rupee.
10. A machine was acquired on 1st April 1992 at a cost of Rs.2,70,000, the cost of installation being Rs.30,000. It is
expected that its total life will be 60,000 hours. During 1992, it worked for 15,000 hours and during 1993 for 24,000
hours. Write up the Machinery account for 1992 and 1993.

UINT – V
1. What do you understand by hire purchase system? In what respects does it differ from instalment system?
2. Distinguish between hire purchase system and instalment purchase system. Discuss fully the accounting aspects
of them.
3. What do you mean by hire purchase trading account? Why is it prepared?
4. Discuss the accounting treatment of repossessed goods on default made by hire purchaser.
5. What is instalment purchase system? What are the benefit of instalment system to a buyer?
6. On 1-1-86, X Purchased machinery on hire purchase system. The payment is to be made Rs.4,000 down( on
signing of the contract) and Rs.4,000 annually for three years. The Cash price of the machinery is Rs.14,900
and the rate of interest is 5%. Calculate the interest in each year’s instalment.
7. Mr. X Purchased a machine on hire purchase system Rs.33,000 being paid on delivery and the balance in five
instalments of Rs.6,000 each, Payable annually on 31st December. The cash price of the machine was
Rs.30,000. Calculate the amount of interest for each year.
8. X purchased a typewriter on hsire-purchase system. As per terms, he is required to pay Rs.800 down, at the end
of the first year Rs.300 at the end of the second year and Rs.700 at the end of the third year. Interest is charged
at 5% p.a. Calculate the total cash price of the typewriter and the amount of interest payable on each instalment.
9. X purchased a machine under hire purchase system. According to the terms of the agreement Rs.40,000 was to
be paid on signing of the contract. The balance was to be paid in four annual instalments of Rs.25,000 each plus
interest. The cash price was Rs.1,40,000. Interest is chargeable on outstanding balance at 20% per annum.
Calculate interest for each year and the instalment amount.
10. On 1-1-90 X bought some trucks under hire-purchase system for Rs.51,000 payable by three equal instalments
combining principal and interest , the latter being a normal rate of 5% per annum. Calculate the cash price(The
present value of an annuity of one rupee for three years at 5% is Rs.2.72325).