Fill in the blanks

Capital Liabilities

Accounting concepts and conventions are known as

Left hand side of aT-account is known as

is a book of original entry.

Transferring of transactions from Journal to ledger is called

State whether the following statements are True or False:

Excess of cost of goods sold over sales revenue is called gross loss.

AS-2 is meant for revenue Recognition.

Money due from a person not recoverable is called bad-debts.

Accounting is only an art and not a science.

Trade discount is recorded in the Journal proper.

SECTION
Attempt any three questions

2. What is meant by accounting? Discuss the advantages and limitations of accounting.

3. What do you mean by accounting standards? Explain the merits of issuing accounting standards.

4. Journalise the following transactions and post them in to ledger.

2012 Rs
June 3 Purchased goods for cash 2,00,000
June 4 Purchased goods on credit from Anil&Co. 35,000
June 8 Sold goods to Shyam Company 1,70,000
June 12 Return goods to Anil Co. 30,000 June 18 Rent paid to Mohan Co. 36,000

5. How does Debit Note differ from Credit Note? Discuss the utility of these notes.

Attempt any three questions

Explain the subsidiary books and their advantages.

Describe the following

Cash book

Petty cash book

Sales Journal

Bills of Exchange

Sales Return Journal


What do you mean by secret reserves? How are they created? Do you approve of such a practice? Give your views.

Explain various items on the assets side of a balance sheet.

What is meant by financial statements? Describe the objectives of preparing such statements.

Define the term 'Share Capital'. Distinguish between Share and a Debenture.

What is profit and loss account? State the special features of a company profit and loss account.

Define the distinction between Provisions and Reserves.

10. From the following trial balance of
MIS Ram Sons,prepare Trading and Profit and Loss account for e year ended 31st December 2012 and a balance sheet on that date.
Dr. Cr.
Debtors and creditors 32,000 10,650
Opening stock 22,000
Cash in hand 1,580
Plant and Machine 17,500
Commission 5,200
Trade expenses 1,075
Purchases and Sales 1,20,000 1,40,000
Sales return and purchase return 5,500 1,130
Capital 79,500
Discount 1,100
Building 34,500
Bills payable 7,500
Insurance premium 4,000
Rent 2,100
Carriage outwards 400
Salaries 2,225
2,43,980 2,43,980

Adjustments

Stock on 31st December 2012 was 12,450.

Outstanding rent is Rs 85 and outstanding trade expenses are Rs 150.

Rs 400 are to be written off as Bad-debts and is to be provided for doubtful debts.

Provide discount on debtors.

Depreciate plant and machine by 10% and building by 2%.