07.04.2004
9.00 - 12.00
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI –600 034
B.A., DEGREE EXAMINATION - TAMIL
FOURTH SEMESTER – APRIL 2004
CO 4202/COM 202 - BOOK - KEEPING AND ACCOUNTS
Max:100 marks
SECTION - A
(10  2 = 20 marks)
Answer ALL questions
1.
2.
3.
4.
5.
6.
7.
8.
9.
What is Book-keeping?
Why is a Bank Reconciliation Statement prepared?
What is an error of principle?
Give any two advantages of double entry system.
Who has proposed Double entry theory and is which year was had been published.
What are the Accounts that non-profit organization prepare?
Give the three rules of Double entry.
Why is a Trial Balance prepared?
Rectify the following errors.
a) Rs.5000 paid for furniture has been charged to purchase A/c
b) Salary paid to Mr. Mohan has been debited to his personal A/c
10. Rectify the following errors..
a) Repairs debited to building A/c Rs.250
b) Rs.500 withdrawn by the proprietor of his personal use has been debited to Trade
Expenses Accounts.
SECTION - B
Answer any FIVE questions
(5  8 = 40 marks)
11. Petty Cashier Received Rs.600 on April 1, 1999 from the head cashier, Prepare petty
cash book on the interest system for the month of April 1999 from the following items:
Rs.
Rs.
3 Stamps
50
22 Trunk calls
43
5 Taxi fare
100
25 office cleaning
18
6 pencils pads
75
30 courier services 17
7 Registry
25
10 Speed post
45
12 Telegram
35
15 Refreshment
55
16 Auto fare
20
19 Typing paper
60
20 Bus fare
15
12. What is double entry system of Book-keeping? What are the differences between single
entry and Double entry?
13. Explain any five fundamental concepts in Accounting.
14. Explain different types of errors with examples.
1
15. Record the transaction given below in the proper subsidiary books.
2001 April
3 Goods purchased form Mr. Roy Rs. 50,0000 on credit.
7 Mr. Roy purchased goods form us at Rs.28,000 for cash
10 sold for cash Rs.22,000
12 sold Rs.75,0000 on credit to Mr.Ram
15 Goods Returned to Mr.Roy Rs.5000
18 Mr. Jain sold goods to us worth Rs.95,000
24 Goods sold to Mr. Das Rs.1,20,000
26 Mr. Dass returned goods worth Rs. 7,000
27 Mrs.Jaya purchased Goods valued Rs.12,550 form us.
16. Prepare a three column cash book from the followings:Rs.
2001 March 1
cash in hand
90,000
cash at bank
75,000
3 cash sales deposited in to bank
3,000
4 sold goods to Rakesh on credit
9,000
6 amount deposited by a customer
directly into bank
4,500
8 Received a cheque form Jagan
for discount allowed
100
9 paid to vivek by cheque
4,500
11 cash deposited into bank
7,000
15 cash withdrew form bank for
office use
8,000
17. Prepare trial balance form the following ledger balances of Mr. Shankaran on 31.12.1997
Rs.
Rs.
Cash in hand
600
Purchases
1,48,000
Cash At Bank
9,400
Purchase Returns
2000
Capital
40,000 Sales
2,80,000
Building
30,000 Sales Returns
1,000
Salaries
28,000 Debtors
30,000
Rent
8,000 Insurance
800
Machinery
20,000 Discount Allowed
1,400
18. Prepare a Bank Reconciliation statement form the following data as on 31-12-1995
Rs.
a) Balance as per cash book
12,500
b) Cheques issued but not presented for payments
900
c) Cheques deposited into bank but not collected
1,200
d) Bank paid insurance premium
500
e) Direct deposit by a customer
800
f) Interest on investments collected by the bank
200
g) Bank charges
2
SECTION - C
Answer any TWO questions
(2  20 = 40 marks)
19. From the following transactions of Mr. Velmurugan, you are required to pass Journal
entries and post the entries in the ledger Accounts.
1999 March 1Velmurugan commenced business with furniture Rs.2000, Stock
Rs.12,000 and cash Rs.60,000
5 purchased from satya Rs.12,000
7 goods sold for cash Rs.6,000
9 Returned goods to satya Rs.140
11 purchased goods for cash Rs.6,000
15 sold goods to Anand Rs.8000
19 paid cash to satya Rs.4,120 and he allowed us discount Rs.80
21 paid commission Rs.2,000
26 Velmurugan withdrew cash Rs.200
20. Prepare Trading and profit & Loss A/C and balance sheet form the following Trial
balance of Mr. M. Madan
Debit Balances
Rs.
Credit balances
Rs
Sundry Debtors
92,000
Capital
70,000
Plant Machinery
20,000
Purchase Returns
2,600
Interest Paid
430
Sales
2,50,000
Rent Rates
3,000
Creditors
60,000
Insurance
2,600
Bank overdraft
20,000
Conveyance Charges
1,320
Wages
7,000
Sales Returns
5,400
Purchase
1,50,000
Opening Stock
60,000
Drawings
22,000
Trade Expenses
1,350
Salaries
11,200
Advertising
840
Expenses
Discount Allowed
600
Bad Debts
800
Business Buildings
12,000
Furniture
10,000
Cash In Hand
2,060
Total
4,02,600
4,02,600
Adjustments:(i)
Stock on hand on 31-12-96 Rs.90,000
(ii)
Provide depreciation on building at 20% plant and machinery at 10%
and furniture at 10%
(iii)
Provide for doubtful debts at 5% on debtors.
(iv)
Outstanding Rent was Rs.500 and outstanding wages Rs.400
(v)
Prepaid insurance Rs.300
(vi)
Prepaid salaries Rs.700
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21. The receipts and payments Accounts of friend cricket club for the year ended 31-1291.'
Receipts
Rs
Payments
Rs.
To Balance b/d
20,400
By Salaries & Wages
13,000
To Subscriptions:
by Entertainment Expenses
6,450
1990
850
1991 40,000
1992
1,000
41,850
To Donations
12,000
by Electricity Charges
2,340
To Entertainment Receipts
8,800
by General Expenses
3,500
To Interests form bank
800
by Rent and Taxes
1,200
by Fixed deposit
40,000
by Printing and Stationary 2,410
by Govt. Bonds
10,000
by Balance c/d
4,950
Total
83,850
83,850
Additional information:
1. Capital fund Rs.71,250
2. Fixed assets Rs.5,000
3. There are 450 members each paying Rs.100 annual subscription
4. Half of the donations to be treated as capital receipt.
5. Wages outstandingRs.200
6. Depreciate fixed assets by Rs.2,000
Prepare Income and Expenditure A/C of the club for the year ending 30-12-91 and
the balance sheet as at that date.
4