APPENDIX-IIA (IREM) EXAMINATION, 2020
SUBJECT: ELEMENTARY BOOK KEEPING
Time: 3 Hours Maximum Marks: 100
INSTRUCTIONS
Questions may be answered in Hindi or English.
Question 1 is compulsory. Attempt any four of the remaining questions.
QUESTION 1
(1 × 28 = 28 Marks)
From the following Trial Balance of ABCD Ltd. and the additional information, prepare the Trading and Profit & Loss Account and Balance Sheet for the year ended 30th June 2019.
Trial Balance
| Particulars | Debit (₹) | Credit (₹) |
|---|---|---|
| Capital | — | 1,00,000 |
| Furniture | 20,000 | — |
| Purchases | 1,50,000 | — |
| Debtors | 2,00,000 | — |
| Interest Earned | — | 4,000 |
| Salaries | 30,000 | — |
| Transportation Outwards | 7,000 | — |
| Creditors | — | 1,20,000 |
| Provision for Bad Debts | — | 6,000 |
| Printing and Stationery | 8,000 | — |
| Insurance Expense | 12,000 | — |
| Opening Stock | 50,000 | — |
| Sales | — | 3,21,000 |
| Purchase Returns | — | 5,000 |
| Office Expenses | 12,000 | — |
| Bank Overdraft | — | 2,000 |
| Wages | 20,000 | — |
| Drawings | 24,000 | — |
| Rent | 15,000 | — |
| Sales Returns | 10,000 | — |
| TOTAL | 5,58,000 | 5,58,000 |
Additional Information
Depreciate furniture by 10%.
A provision for doubtful debts is to be created to the extent of 5% of sundry debtors.
Salaries for the month of June 2019 amounting to ₹3,000 were unpaid and must be provided for. However, salaries included ₹2,000 paid in advance. Office expenses outstanding amounted to ₹8,000.
Insurance amounting to ₹2,000 is prepaid.
Stock used for private purposes amounted to ₹6,000 and closing stock was ₹60,000.
QUESTION 2
(4 × 4.5 = 18 Marks)
Write short notes on any four of the following:
Accrual Accounting
Balance Sheet
Promissory Note
Intangible Assets
Accrued Income
Bills Payable
QUESTION 3
(4 × 4.5 = 18 Marks)
Differentiate between any four of the following:
Revenue Expenditure and Capital Expenditure
Single Entry System and Double Entry System
Fixed Assets and Current Assets
Journal and Ledger
Trade Discount and Cash Discount
QUESTION 4
(1 × 14 = 14 Marks)
From the following particulars, prepare a Bank Reconciliation Statement as on 31st December 2016 for PQRS Ltd.
| S. No. | Particulars | Amount (₹) |
|---|---|---|
| i | Bank balance overdraft as per Cash Book | 80,000 |
| ii | Cheque recorded for collection but not sent to the bank | 10,000 |
| iii | Credit side of the Cash Book cast short | 1,000 |
| iv | Premium on proprietor's Life Insurance Policy (LIP) paid on standing order | 5,000 |
| v | Bank charges recorded twice in the Cash Book | 100 |
| vi | Customer's cheque returned by the bank as dishonoured | 4,000 |
| vii | Bill Receivable collected by the bank directly on behalf of the company | 20,000 |
| viii | Cheque received entered twice in the Cash Book | 6,000 |
| ix | Cheque issued but dishonoured on technical grounds | 3,000 |
| x | A cheque deposited into the bank of worth ₹45,000, but ₹8,000 cheques were not collected by the bank | 45,000 |
QUESTION 5
(1 × 18 = 18 Marks)
What is Depreciation? What are the causes and need for providing depreciation? Explain any two methods of calculating depreciation.
QUESTION 6
(1 × 18 = 18 Marks)
What are Subsidiary Books? What are the advantages of maintaining them? Explain the different types of Subsidiary Books.
QUESTION 7
(6 × 3 = 18 Marks)
Define the following terms:
Capital
Liabilities
Assets
Income
Stock
Book Keeping
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