No. of Printed Pages : 8 I ECO-2 co co BACHELOR'S DEGREE PROGRAMME Term-End Examination December, 2015 ELECTIVE COURSE : COMMERCE ECO-2 : ACCOUNTANCY-I Time : 2 Hours Maximum Marks : 50 Weightage : 70% Note : Attempt any four questions, including question no. 1 which is compulsory. 1. Answer any two of the following : 7+7 (a) (b) (c) (d) Distinguish between Single Entry System and Double Entry System of Accounting. What is the difference between Receipts and Payment Account and Income and Expenditure Account? Explain. Explain the concepts of 'Conservatism and 'Consistency' with examples. State the difference between Capital Expenditure and Revenue Expenditure. ECO-2 1 P.T.O.
2. (a) What is 'Net Worth'? How is it computed? Explain with an example. (b) What do you understand by Self-Balancing System? State its advantages. 6+6 3. On 1st April, 2013 a firm of Sportswear, Delhi 12 sent a consignment of 500 swimming suits to M/s Ram Niwas and Sons of Kanpur (consignee) valuing Z 1,25,000. The consignor incurred an amount of Z 1500 in sending the goods to the consignee. At the end of the month, the consignee sent a statement of sales showing that 400 suits were sold @ Z 350 per suit and his selling expenses amounted to Z 8000. The consignee is entitled for a commission of Z 25 per suit sold. The unsold stock is to be valued at cost plus proportionate expenses. The consignee had also spent Z 500 on consignment received. You are required to show necessary ledger accounts in the books of the consignor. 4. From the following Ledger Balances extracted 12 from the books of a proprietor as on 31st March, 2013 prepare the Trading and Profit and Loss Account for the year ending on 31-03-2013 and also the Balance Sheet after taking into account the following additional information : ECO-2 2
Name of Ledger Account Debit Credit Balance (Z) Balance (!) Capital 8,00,000 Sales 15,00,000 Return inward 35000 Purchases 7,65,000 Return outward 22000 Stock (1-4-2012) 80000 Land and Building 8,00,000 Plant and Machinery 4,00,000 Furniture and Fixtures 1,50,000 Wages 70000 Carriage inward 15000 Salaries 48000 Rent 35000 Interest on loan 15000 Discount 5000 Bad debts 5000 Interest on Investment 9500 Cash in hand 21500 Cash at Bank 55000 Investments 75000 Debtors 1,52,000 Creditors 2,00,000 1 50000 Bills Receivable and Payable 20000 15000 Loan 2,50,000 Total 27,96,500 27,96,500 ECO-2 3 P.T.O.
Additional Information : (a) Unsold stock on 31-3-2013, Z 1,75,000. (b) Depreciate : Plant and Machinery @ 15% Furniture and Fixtures @ 15%. (c) Provide Bad debt Reserve @ 5%. (d) Outstanding Rent, 13,000. 5. On January 1, 2010, a firm purchased a Machine 12 for Z 75,000 and spent Z 5,000 on its erection. On 1st July, the same year, a second machine was purchased for Z 40,000. On 1st July 2011, the firm sold the machine which had been purchased on 1-1-2010, for Z 55,000. On July 1, 2012, a new plant costing Z 60,000 was added and the machinery purchased on 1st July 2010 was disposed off for Z 30,000. Firm charges depreciation annually @ 10% on fixed instalment basis. Prepare Machinery Account for 3-years showing balance as it would appear on 1-1-2013. 6. Write short notes on any two of the following : (a) Joint Venture as a temporary partnership. 6+6 (b) Secret reserves. (c) Selection of a method of charging depreciation. (d) Types of Assets. ECO-2 4
11-34.-2 FrI21 : 2 hiu 37A1M74 37W : 50 Tff : 70% *F. : fin.6' d1t 7. r7-q# SR/ til&-ll Ffifi6 e 3t i 1. ri 4--110 tgc-f -14 fffftir : 7+7 (a) 7T-0' A-ur ITT-A' -z7r ITT'- 31.-7,sit-IIL; 1 (b) Trcii i yrdri tgicif dgf 31{-0444 (Aid' qzrf 31'7 t? cqrsql Tri-A7 I (c) 72TIch(c\4cl dqwul 710 0441t.se41W-A7 I (d) ttttd owl 72TT 3.71 17 t 3 ECO-2 5 P.T.O.
2. (a) f549 Tn7fff (Net Worth) -A qzif t? 71 6+6 (-44-i44 dial t? v* dqiui (b) TE1 TIVfft 71 1711.9 (Self-Balancing System) 74 31rq izrr Tr1750 t? 77t 'ffri4 Z"gi.-tr-A7 3. 1 31k 2013 qc-ci 12 1:Fri AR f7471-71- ( 11-rEft) 1,25,000 t 500 itui TV Traci f*-7i mac 4-44 -ER z 1,500 oiq f-+-7 10-4 3fff tif?4,rnfirfa --tur -Tq" f-<a-r-zrr 7Tzfi ft 3774 400 td 350 Tit T{ A cif z 8,000 fdwzt od44 ft I th 0.0-51- 25 art 7 writa- 3Tr --*-R)- t I F.4-11 fq--k 1-11C1 ITT itc1.1;-1 rwid s71 1-11 3711Trfd-W &ft t 3747Tri f*--41. zildr t IiffErt 500 taqui 3171.Ft-4 ift oi4 rr,1 01 tt.71ā 317477t tr77 I 4. f, 77-*-1 7-7 -14-1 (gcf 7)1# 12 (31 HI -ci, 2013 lit) 37T0T7 77 31 2013 TP7T7Ala (41(4 17it -gftat aqrr -4--4-R --tr--a7 ECO-2 6
"LA..R (gi wr 9-Ft trqz in (Z) *ftz ilq (Z) - 8,00,000 fawzr - 15,00,000 37714 arm W-41.11 4 arcrt.dtch (1-4-2012) 35,000-7,65,000 - - 22,000 80,000 - IIITE a %Taff 8,00,000 - Lei Id Trvffit TOW.q. f44 cmivit -11-70 4,00,000-1,50,000-70,000-3-1T4W 1-171 15,000 - q1-1 48,000-1-*--uzir 35,000 - itut ITT Cell Zr z (WA) I-4ff WTI 4 T ITT.441,4 15,000-5,000-5,000 - - 9,500 tr*3-tti 21,500 - 'I, *(E 55,000 - MT -Kit r')-kr 75,000-1,52,000 - - 2,00,000.wf-d 50,000 -.5ffuErF AT t4 iq.1 20,000 15,000.t. [ - 2,50,000 T 27,96,500 27,96,500 ECO-2 7 P.T.O.
3ifer4w *Lull : (a) 31-3-2013 7T 3TF-4-7 HIc1 1,75,0001 (b) Loid 1:171-9-# 15%, 791-4T fvtatieit 15% I (c) 317h74 fa7 t974 7T 5% 774 541cM7 f*-zif t1 (d) 3 f*-tt7t 13,0001 5. 179-d1, 2010."). 74 75,000 14 1011 12 Z Rit rziq ci4ir,114,000 04444 f-*7 d41 1 40,000 afft 14'47 TgfTt I 1 2011 '"). 714 1-1-2010 T 1"t 117117 55,000 14 49 frt1 f{11 1 2012 f 60,000 '91 117117 'ff2tt 1 Ac-11 2010 c 30,000 14 714 fa-0:17 f*-77 (Fixed instalment) tqfq. 3INTT 'T 10% 7fff itc-.44vfl 0+1141 tl a1-1 1:1711-911. /TM.91-47 74T 71 14 1-1-2013 TT -7)7 f<u1741 6. F-1 r(5 CI 14 ft-4: 71 17 Tffk,p7 fz wfurz.ii f7ft i7 6+6 (a)t47( dkistoi, T:ft7ft tco-i 14 (b) T 71. (Secret reserves) (c) 4-1C-1 W4 f-qrq q (d) 4Ct4I.1 rig t 7TTT ECO-2 8