No. of Printed Pages 6 IECO-002I
BACHELOR'S DEGREE PROGRAMME
Term-End Examination

06885
December, 2016
ELECTIVE COURSE: COMMERCE

ECO-002: ACCOUNTANCY-!
Time Hours Maximum Marks 50 Weightage 70%
Note: Attempt any four questions, including question no. 1 which is compulsory.

1. Attempt any two questions from the following: 7+7

Define accounting and explain its objectives.

What are the advantages of Maintaining Petty Cash Book? Explain the imprest system of Maintaining Petty Cash.

Distinguish between Sectional Balancing and Self-balancing.

Explain deferred revenue expenditure with examples.


2. Rectify the following errors by making a Journal entry

Machine purchased for Rs.5,000 has been debited to purchase A/c.

Rs.3,000 being the sale proceeds of an old furniture has been credited to sales A/c.

Goods purchased from Sanjay for Rs.2,000 was recorded as Rs.200 only.

Goods sold to Mohan for Rs.380 on credit was recorded as Rs.830.

Rs.800 paid for rent wrongly debited to landlord's A/c.

No entry has been made for sales return of Rs.450.

3. Ajay and Vijay were partners in a joint venture, sharing profit and losses equally. Ajay supplied goods to the value of Rs.2,500 and incurred expenses amounting to Rs.250. Vijay supplied goods to the value of Rs.2,000 and incurred expenses amounting to Rs.200. Vijay sold the entire goods on the behalf of the joint venture and realized Rs.6,000. Vijay was entitled to commission of on sales. Vijay settled his account by bank draft. Show Joint venture account and Ajay's Account in the books of Vijay. 12

4. Surya Ltd. purchased a machine for Rs.40,000 on 1st July 2010. Depreciation is provided 10% on the diminishing balance method. On 1st October 2012, a part of the machine costing Rs.10,000 was found damaged and disposed off for Rs.6,000. On the same date a new machine at a cost of Rs.15,000 was purchased. 12

Prepare machine A/c from 2010 to 2013. The accounts are closed on 31st December each year.

5. Write short notes on any two of the following: 6+6

Accrued Income

Capital Expenditure

Bank Reconciliation Statement

Contingent Liabilities

6. State the features of Income and Expenditure account.

What is meant by Incomplete Records? What are their limitations