Accounting for Everyone — DU B.Com. (Hons.) Previous Year Question Papers

1. A) Define Accounting? Further Explain the qualitative characteristics of accounting? (9) 8) "Capital is the Liability for the business". Explain this statement with relevant principle applied. Also Discuss the need of Accounting principles (9) A) Who are the users of Accounting Information? How does accounting provide relevant data to these users? (8) 8) Giving examples, Explain each of the following accounting terms: a. Fixed assets b. Revenue c. Expenses d. Short-term liability e. Capital 2. A) What is meant by balancing an account? Explain its procedure. 8) Explain with example following a. Composite entry b. Vouchers c. Accounting cycle d. Accounting Equation A) Record following transactions in Joumal, post them in Ledger and Balance the accounts for the month of April 2024: 3. 4. April 1: Mr. A opened a wholesale grain shop with Rs. 4,00,000 cash Rs. 8,00,000 as bank balance, stock Rs. 9,00,000 and furniture worth Rs. 1,00,000 April 1: Appointed Mr. 8 as cashier on salary of Rs. 3,000 per month and gave advance of April 3: Bought goods from local market for Rs. 2,00,000 and sold them at a profit of Rs. April 5: Paid rent by cheque Rs. 5,000 April 8: Bought from M/s Gupta and Sons goods of the total value Rs. 5,00,000 and paid Rs. April 12: Goods worth Rs. 3,00,000 were purchased in an auction sale from Aggarwal Brothers and paid Rs. 30,000 in cash April 15: Paid for goods bought at auction on April 12, 2024 by cheque for the balance April 20: Sold goods on credit to Mr. G of Chennai for Rs. 2,00,000 and paid Rs. 4,000 for freight and Rs.1,000 for insurance. These expenses were to be collected from Mr. G £ April 24: Deposited cash in bank Rs.1,50,000 April 28: Withdrawn from bank for office use Rs. 50,000 and for private use Rs. 10,000 April 30: Mr. 8, the cashier resigned, and his dues were paid A) Differentiate between commission and discount. 8) Prepare two column Cash Book of M/s Tea Traders for April 2024: April 1: Commenced business with cash Rs. 60,000 April 3: Opened Banks Account with SBI deposited Rs. 45,000 April 5: Purchased goods by cash Rs. 7,000 April 10: Purchased office Machine for cash Rs. 5,000 April 15: Sold goods to Ms. Manjula and received cheque Rs. 6,000 April 18: Cash sales Rs.10,000 April 20: Ms. Manjula's cheque deposited into bank April 22: Paid wages by cheque Rs. 300 April 25: Cash withdrawn from bank for personal use Rs. 3,000 April 30: Rent paid by cheque Rs. 2,000 (12) A) Widson enterprises purchased Plant and Machinery for Rs. 1,00,000 on October 1, 2012. It decides to write off depreciation at 20 percent per annum on Written Down Value Method. On. January 1, 2015 purchased additional machinery for Rs. 40,000. B) Briefly explain the different methods of charging depreciation. (6) A) Distinguish Between DefeITed Revenue expenditure and Prepald Expenses? 8.) From the undermentioned trial balance of Banerjee, prepare the final accounts for the year ended 31St March 2024 and the balance sheet as at that date