BACHELOR'S DEGREE PROGRAMME Term-End Examination June, 2018 ELECTIVE COURSE : COMMERCE ECO-002 : ACCOUNTANCY-I

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1 LO co CO C.1 No. of Printed Pages : 11 BACHELOR'S DEGREE PROGRAMME Term-End Examination June, 2018 ELECTIVE COURSE : COMMERCE ECO-002 : ACCOUNTANCY-I IECO-002 Time : 2 Hours Maximum Marks : 50 Weightage : 70% Note : Attempt any four questions, including question no. 1 which is compulsory. 1. Attempt any two questions from the following : 7+7 (a) What is Accounting? Explain its main objectives. (b) (c) (d) Enumerate the accounting concepts which relate to final accounts, and explain any one of these with its accounting implications. How do professionals account for outstanding fees? How does debit note differ from credit note? State the utility of these notes. 2. Rectify the following errors by journal entries 12 assuming that a suspense account had been opened : (a) 5,400 received from M. Mehta were posted to the debit side of his account. ECO P.T.O.

2 (b) (c) (d) (e) (f) 1,000 being purchase returns were posted to the debit of Purchases Account. 5,740 paid for repairs of a motor car were debited to the Motor Car Account as 1,740. Purchase of a machine for 60,000 was recorded in the Purchases Book. A sale of goods for 3,500 to Sethi was entered in the Sales Book at 5,300. 5,000 paid towards wages for installing a machine was debited to Wages Account. 3. (a) What is Single Entry System? State its 6+6 salient features. (b) From the following particulars relating to Bhasin Brothers for the year ascertain their credit sales for the year : Debtors as on Returns Inwards Cash received from debtors Discount allowed to debtors Bills Receivable accepted by debtors ECO-002 Bad Debts Debtors as on Bills Receivable dishonoured Z 1,20,000 50,000 4,50,000 30,000 1,70,000 15,000 1,00,000 35,000

3 4. (a) What do you mean by Sectional Balancing? 6+6 How does it differ from self-balancing? (b) Differentiate between provisions and reserves. 5. From the following Receipts and Payments 12 Account and Balance Sheet of a Club prepare the Income and Expenditure Account for the year ending 31 December, 2015 and the Balance Sheet as on that date. Receipts and Payments A/c For the Year Ending Dec. 31, 2015 Balance b/d Z 10,00,000 Expenses Z Subscriptions ,40, , ,00,000 3,40, ,10,000 Lease hold Land 4,00, ,000 2,63,000 Interest Paid 40,000 Entrance Fees 80,000 Refreshment Exp. 2,00,000 Locker Rent 70,000 Balance c/d 8,33,000 Income From Refreshments 4,00,000 18,13,000 18,13,000 ECO P.T.O.

4 Balance Sheet as on Dec. 31, 2014 (Opening for 2015) Liabilities Z Assets Z Capital Fund 33,62,000 Bldgs. 30,00,000 Subs. recd. in advance Outstanding Expenses Outstanding 60,000 Subs. 38,000 Outstanding 1,40,000 Locker Rent 24,000 Loan 5,00,000 Cash in hand 10,00,000 40,62,000 40,62,000 Adjustments : (a) Exp. Outstanding ,000 (b) Subs. Outstanding ,000 (c) Salary due but not paid upto ,000 (d) Depreciation of 2,00,000 to be charged on buildings. (e) Entrance fees are to be capitalised. ECO-002 4

5 6. (a) R and S entered into a contract for 8+4 constructing a building for 4,00,000. R and S contributed 2,00,000 and 1,50,000 respectively. They agreed to share profits and losses in the ratio of 4 : 3. It was decided that the work will be looked after by R who will be paid 5% commission on contract price in addition to his share of profits. R purchased the necessary materials for 3,20,000 and paid 9,000 for expenses. R also contributed building materials from his own stock worth 20,000. 5,000 remained to be paid for wages. S took over the stock of materials for an agreed value of 16,000. The building was completed and the contract money was duly received. Prepare Joint Venture A/c in the books of R. (b) Distinguish between Account Sales and Invoice. ECO P.T.O.

6 1.-ft3*.-002 kt/hei : 2 31f ciq 3T.W : 50 Tff : 70% : f 3' WIT Mq-i. drf( w r@- * 3/f-4470e7 1. f-ti treillgo 14-? fwt Ak-11* drik fffti7 : 7+7 (a) 4(.51c1) cl-q I cc 4t? ITC04 3kF4 ch--1 oti I tsq I (b) alf-d14 #-4-rw egict)oi (-1,4,c c)(.11,4)-1 ragurat' Aro 0411(Seil T4) (c) Ifff (professionals) ttn4 4)t)? (d) trqz -ile. A fii9s t? ( -1les i) dtii)plof do.tg Tr-4V ECO-002 6

7 2. 1:119 dmio (51 (suspense a/c) sir 3144FT f t, t 7114i t cl urartdil A-NR : (a) 1.. ArdT 'i cit z 5,400 cf.) 31:fk t.11;. IRT -44 wffrzrl- (b) z t000 wzr arm 9hi 1TaT -44 (gniqf I (c)7 chit "1" :ff TR. oqi TR 5,740 T1 e.k chit INT tf-4-z -cri- z 1,740 -RITP:ft 4 lq I (d) 60,000-4 sm.! -A- 9bq -171, 141 (e) TR 3,500 AIM 1 TifdrisZ twzr ts0 5,300 +Itii I.) za tqat rvti4 5,000 T1V, 71r4 tf-4z Trzil ECO P.T.O.

8 3. (a) e 3TUrll tf I I a17114 t? Tigliff 6+6,Tuff Wf I (b) t ittr19toa Tf4Em F-14-irr1r(go fd-4-tut -TRT -EETR fqthis Tft-r : cbri 1,20,000 fazt -q-fr:11 50,000 a-k ' tier 4,50,000, ,000 -KR gm fch TR TtEr fir 1,70, uf iv( 15, ,00,000 3T9Tqf-Tff 317r icm 35,000 ECO-002 8

9 4. (a) 3ITTITNE (Sectional Balancing) r ITT TM-4 t? Tfflzf-Ttpff (self-balancing) f? (b) MictNti P-TT 4.tii 317 I Trri -L7r.74 TrdT9. 01 Zi.j1 12 Fq. oak 31 fqt4t aic,) AzirT i1 W-TEZ1,1 fafq kl.-1f-a7 TirrxTr Olt11 31 fit 2015.A. 111:Tirki tr4 ak4 ati Z 1,4 b/d 10,00,000 rici ,40, , ,00,000 3,40, ,10, II 4,00, ,000 2,63,000 eelof Trdri 40,000 ma ke -q1-- 80, oiq 2,00,000 oil.) N-uAr 70,000 *i c/d 8,33,000 Aci41-r.4 37:1 4,00,000 18,13,000 18,13,000 ECO P.T.O.

10 .51 lqi-vir ZU14 TR (ZUn ICI I qiotw) tzr0 z (-1 (44 71 Z 33,62,000 30,00,000 60,000 38,000 V' 1,40,000 24,000 L 5,00,000 10,00,000 40,62,000 40,62,000 ti+hlt1 : (a) 31 f-" -F1*-4T 2015 c) attff oqi 50,000 (b) 31 fq1=1.--4t 2015 q-)1 3-iqff -cicr 80,000 (c) *Ti f-ata-tt di, yrdri t 20,000 (d) T-R 2,00,000 tlf - TgRi -tt 511c,NT9. ftzit Alllt (e) TOVE -ct-attur fwqr t I 6. (a) R 2.11 S 4,00, fib t-filtur w 8+4 t-*-tfzil. I d-iq : 2,00,000.ffz1T 1,50,000,qdR I d -a.. 4 : 3 t 31-fird fivfzi fffzit I I ftzit TP:fr i c R giki csii 3 1R 5% till7h t 14 ECO Tft art af-e-{tr t -Trr

11 R z 3,20;000 of 9bq f*-741. Z 9,000 W4 R k TZT- 4 Z 20, IT-4ff t I Z 5, tl S 216,000 t- T1 1:17191-Wr f-- zrr -g3i-r.4) aki 'ART I R -7:TA. `TiTpu d ITe "azir..1-f-a-r I (b) fq- zr fq-1714'um *-4W 3ta ECO