DIPLOMA EXAMINATION, NOVEMBER 2017
Catering and Hotel Administration
PRINCIPLES OF ACCOUNTANCY
(Upto 2015 batch)
Time 3 Hours Maximum 60 Marks
Part A x 3 18)
Answer all questions.
1. What is dual concept?
2. Write note on accounting principle.
3. What is capital expenditure?
4. Enumerate different types of errors.
5. What do you mean by depreciation?
6. What is cash book?
Part B x 8 32)
Answer any four questions.
7. What are the functions of accounting?
8. What are the merits of double entry system of book
keeping?
9. What are the need for providing depreciation?
10. Discuss the merits of single and double column cashbook.
11. What is meant by bank reconciliation statement?
Sub. Code
11
CP-8438
2
Ws9
12. The following balances extracted from the book of a
trader Murugan Co. as on 31.7.2015. Prepare Net
profit. Gross profit Rs. 5,25,000, Rent Rs. 10,000, Interest
on loan Rs. 5,000, Distribution charges Rs. 2,500, Bad
debts Rs. 2,200, Commission received Rs. 3,000, Interest
received Rs. 5,000, Tax and Insurance Rs. 2,000,
Salaries Rs. 1,00,000, Depreciation Rs. 5,000, Office
expense Rs. 1,500, Salesman salaries Rs. 8,000,
Stationery Rs. 500, Discount received Rs. 2,000,
Advertising Rs. 9,000.
Part C x 10 10)
Compulsory.
13. Prepare trading account and P and L A/c for the sole
trader Mr. Ramesh and balance sheet for the year ended
31.12.2005.
Rs. Rs.
Salaries 11,000 Creditors 19,000
Rent 2,800 Sales 64,000
Cash 2,000 Capital 60,000
Debtors 80,000 Loans 20,200
Factory expense 1,200
Purchase 50,000
Advances 5,000
Bank 11,200
1,63,200 1,63,200
Closing stock Rs. 18,000
One month salary is in arrear
Two month rent has been paid in advance
Provide 10% for doubtful debts.
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