Total No. of Questions 10] [Total No. of Pages 03
P.G. DIPLOMA DEGREE EXAMINATION, MAY 2018
COMPUTER APPLICATIONS
Accounts Finance
Time 3 Hours Maximum Marks 70
Answer any FIVE questions x 14 70)
All questions carry equal marks
Q1) Define accounting. Explain the concepts and conventions of accounting.
Q2) Distinguish between single entry and double entry system of accounting. Explain the benefits
of using double entry system.
Q3) Enumerate the need for preparing a Bank Reconciliation statement. State in which
situations it should be prepared.
Q4) Define cost accounting. State its objectives.
Q5) Prepare a flexible budget in your own with various levels of production.
Q6) Explain the need for and significance of financial analysis.
Q7) What is meant by working capital? Explain about types of working capital.
Q8) Journalise the following transactions.
Jan. 1 Started business with Rs. 20,000
Jan. 4 Purchased goods from Ram Rs. 2,000
Jan. 5 Sold goods to Hari Rs. 2,000
Jan. 9 Sold goods to Ramlal for cash Rs. 3,000
Jan. 12 Purchased goods worth Rs. 600 from Ganesh
Jan. 15 Sold goods for cash Rs. 2,000
Jan. 18 Paid salaries Rs. 1,600
Jan. 20 Received commission from Gopal Rs. 200
Jan. 25 Paid interest on loan Rs. 300
Jan. 28 Received Rs. 1,900 from Krishna
Q9) From the following transactions prepare bank reconciliation statement.
Over draft balance as per cash book Rs. 2,000.
ii) Out of cheques issued 3000 payment was made for only Rs. 2,000.
iii) Rs. 20,000 cheques sent for collection Rs. 2,000 not realized upto the date of
reconciliation.
iv) Bank charges recorded in the debit side of the cash book Rs.
A cheque issued to Ram for Rs. 99 was recorded in the cash book as Rs. 9.
vi) Interest on investments Rs. 350 was realized by the banker but not recorded in the cash
book.
vii) The cash book receipts side was over caste by Rs. 100.
viii) The pass book payments side was under caste by Rs. 300.
Q10) From the following trial balance prepare trading and profit and loss A/c for the year ended
31st March 2012 and balance sheet as on that date.
Particulars Debit Credit
Rs. Rs.
Drawings 10,000
Opening stock 46,000
Purchase and Purchase returns 1,50,200 600
Cash in hand 3,400
Bank balance 22,660
Free hold premises 38,600
Trade expenses 840
Printing Stationary 1,640
Professional charges 280
Commission Received 3,300
10% Investments 4,000
Interest on deposits 200
Debtors Creditors 36,000 29,000
Wages 25,000
Salaries 14,000
Capital 1,14,000
Income-tax 1,600
Discount allowed Received 6,300 4,600
Sales return sales 500 2,08,950
Bills Receivables Bills payables 3,200 10,000
Office furniture 3,500
Rent, rate Insurance 4,000
Provision for bad and doubtful debts 670
3,71,320 3,71,320
Adjustments
Outstanding wages Rs. 5,000.
Write off depreciation on freehold premises and 10% on office furniture.
Insurance to the extent of Rs. 200 relates to 2012.
Stock on 31-12-2012 is Rs. 52,000.
Charge interest on capital at and interest on drawings Rs. 300
Further bad debts are Rs. 1,000.
Provision for bad and doubtful debts on debtors.
Make provision for discount on debtors and reserve for discount on creditors