No. of Printed Pages : 7 ECO-2

BACHELOR'S DEGREE PROGRAMME

tr) Term-End Examination

June, 2010

ELECTIVE COURSE : COMMERCE

ECO-2 : ACCOUNTANCY-I

Time : 2 hours Maximum Marks : 50

Note : Attempt any four questions, including question no.1

which is compulsory.

1. Answer any two questions from the following : 7+7

What do you understand by Dual AspectConcept ? Explain its accountingimplications.

What do you understand by an openingentry ? How is an opening entry posted intothe ledger ?

State various causes of disagreementbetween the balances shown by the cashbook and the pass book.

What is Journal proper ? What kind ofentries are usually recorded in the Journalproper ?

2. (a) Differentiate between a Bill of Exchange and 4a Promissory Note.

(b) Explain the separate set of books method 8for maintaining joint venture accounts.

ECO-2 1 P.T.O.

3. Rectify the following errors through Journalassuming that a Suspense Account had beenopened. 6x2=12

An amount of Rs. 500 received fromMr. Roy was credited to Ray's A/c.A sale of Rs. 600 to Gopal was debited tohis account as Rs. 6,000.Salaries paid amounting to Rs. 1,000 waswrongly debited to Wages Account.A credit sales of Rs. 250 to Rakesh waswrongly credited to his Account.A credit sales Rs. 520 to Madhu debited tohim as Rs. 250A credit purchases from Kailash of Rs. 400was debited to him.

4. On June 10, 2008, Raj & Co. of Jaipur consigned 12100 cases of Red wine to Singham Bros. ofSri Lanka. The cost of the consignment amountedto Rs. 7,500 but the goods were charged at proformainvoice price so as to show a profit of 25% on invoiceprice. On the same date, the consignors paid Rs.600 for freight and insurance. On July 1 theconsignees paid Rs. 1,000 for import duty. Rs. 200for dock dues, and remitted a bank draft for Rs. 4,000as an advance against the consignment. On July15, they sold 80 cases for Rs. 10,500. Singham Bros.are entitled to a commission of 5% on gross proceedsof sales as their remuneration. Prepare the necessaryaccounts in the books of the consignor assuming thatthe consignee has remitted the balance due fromthem by draft.

5. (a) What are the merits and demerits of written 8down value method of depreciation ?Distinguish it from the straight line method.

(b) Distinguish between Capital Reserve and 4Revenue Reserves.

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6. From the following details prepare Debtors 6, 6Ledger (Total Debtors) and Creditors Ledger(Total Creditors) Adjustment Account as on31st December 2008.

Rs.Debtors (1-1-2008) Dr. 17,425

Debtors (1-1-2008) Cr. 320

Creditors (1-1-2008) Cr. 27,408

Creditors (1-1-2008) Dr. 204

Purchases 25,200

Sales 28,209

Purchases Returns 714

Sales Returns 208

Cash paid to creditors 12,700

Bills received from Debtors 9,300Bills dishonoured 200

Bills accepted 7,400Discount allowed by creditors 1,020Discount allowed to Debtorbut disallowed later 100Cash received from Debtors 8,700

Cash paid to Debtors 25

Transfer from Debtors toCreditors Ledger 1,242

Cash purchases 4,320

Cash sales 7,400Bad Debts written off 215Discount allowed to Debtors 215

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3 P.T.O.

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•12

ECO-2 7