Programme Code : BCA
Course Code : eco-02
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Year : 2012 Views: 2857 Submitted By : tejal patel On 20th October, 2012

Do you have solution for this Question. If yes    I aslo want solution.

Q.


Define Accounting. Briefly explain the accounting concepts which guide the accountant at

the recording stage.





(b) “Ledger is said to be the principal book entry and the transactions can even be directly

entered into the ledger account.” Elaborate and explain why journal is necessary. (10+10)





2. The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs.

1,270 in the suspense account on the debit side. The following mistakes were found later on.

Rectify these errors by passing Journal entries and prepare Suspense Account.

(a) The purchase of Rs. 400 from Saran was entered into sales book but Saran’s personal

account was rightly credited.

(b) Sales of Rs. 430 to Ramdas were credited in his account Rs. 340.

(c) Sales of old furniture of Rs. 540 was credited to sales account as Rs. 450.

(d) Goods worth Rs. 100 were taken by the proprietor which was not recorded.

(e) Sales of Rs. 296 to Kishan were entered in sales book as Rs. 269.

(f) Balance of Sales Return Book Rs. 210 was not included in the accounts. (20)





3. A of Surat consigns goods to B of Jaipur to be sold at or above invoice price. B is entitled to get a

commission of 8% on sales at invoice price plus 25% of any surplus price realized. B accepted a bill

of exchange drawn by A amounting to 50% of the invoice price.

In the year 2010 goods consigned by A were invoiced at Rs. 2,50,000. These goods cost to A Rs.

2,00,000 (including freight). Sales made by B during the year amounted to Rs. 2,35,000. At the

end of the year, goods unsold with B represented an invoice value of Rs. 60,000. During the year,

A had received from B Rs. 40,000 by bank drafts, certain remittances being in transit on 31st Dec.,

2010. Prepare necessary ledger accounts in the books of both the parties. Also show how the

consignment stock will appear in the Balance Sheet. (20)

4

4. A merchant keeps incomplete records. During 2010 the analysis of his cash book was as under:

Rs. Rs.

Receipts from Debtors 4,000 Bank overdraft (1-1-2010) 600

Additional Capital Introduced Payments to Creditors 2,700

on 1-9-2010 300 General Expenses 900

Loan from C on 1-7 - 2010 Salaries 300

@ 6% interest p.a. 1,500 Drawings 400

Bank Balance (31-12-2010) 900

5,800 5,800

On 1st January, 2010 the following balances were recorded: Building Rs. 2,500; Stock Rs. 1,800;

Debtors Rs 5,300 and Creditors Rs. 1,500

The Balances on 31st Dec. 2010 were: Debtors Rs. 6,000; Building Rs. 2,500; Creditors Rs 1,900

and Stock Rs. 2,600.

Allow 5% depreciation on Building. Provide interest on C’s loan for six months. Prepare trading,

Profit and Loss Account and Balance Sheet on 31-12-2010. (20)





5. (a) What do you mean by Income & Expenditure Account? How does it differ from Receipts &

Payments Account?





(b) Describe the methods of recording depreciation in books of accounts. How is the balance of

the provisions for depreciation account shown in the Balance Sheet? (10+10)


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