1. Fill in the blanks:
An asset is recorded in books of account at.

(ii) Accounting is more or less compulsory for every business.

(iii) Accounting Concepts and Conventions are also known as

(iv) Cash book always shows a balance. All items of revenue nature are shown in the State whether the following statements are true or false
Excess of sales revenue over the cost of goods sold known as Gross Profit.

(ii) Income received in advance are shown in Balance Sheet as a current assets.

(iii) Debts which cannot be recovered are known as Bad debts.

(iv) Dividend equalization reserve is a form capital reserves. Paid up Capital can exceed called up capital.

2. What do you understand by accounting concepts? Explain briefly any two concepts.

3. What is meant by Accounting Standards? Discuss the utility of Accounting Standard.

4. What is meant by double entry system? How is it different from single entry system

5. Distinguish between: Outstanding Expenses and Prepaid Expenses Outstanding Income and Unearned Income

6. Journalise the following transactions and prepare a trail balance

April 3 Purchased goods for cash 20,000
April 7 Cash sales 70,000
April 10 Returned goods to Ram 5,000
April 11 Paid salaries 70,000
April 20 Purchased stationery 8,000

7. Write short notes on the following:

(a) What is meant by Suspense Account? Why is it opened and how is it closed Briefly explain the errors which are not traced by trial balance.


8. Find out the cost of goods sold and gross profit from the following figures:

Inventory in the beginning 60,000
Purchases Less Returns 6,00,000
Carriage Inwards 20,000
Carriage Outwards 30,000
Cartage and freight 10,000
Wages 50,000
Sales less Returns 1,20,000
Inventory at the end 40,000
What is meant by Financial Schedules? State its importance.

9. Enter the following transactions in cash book with Cash and Bank Columns

2014 March 1 Bank Overdraft 12,000.00 Cash in hand 6,000.00
2014 March 5 Cheque issued to Radha Mohan and 10,000.00 received discount from him 500.00
2014 March 7 Cheque received from Anil and allowed 7,000.00 him discount 300.00
2014 March 11 Cheque received from Anil became dishonoured
2014 March 15 Cash withdrawal from bank for office use 5,000

(b)Distinguish between Profit and Loss 10 Account and Balance Sheet.

10. Distinguish between: Revenue Reserves and Capital Reserves

(ii) General Reserve and Specific Reserve What do you mean by Financial 10 Statements? Explain the meaning and objectives of financial statements.