913-R.V.S.
COLLEGE OF ENGINEERING AND TECHNOLOGY, DINDIGUL-5
INSTITUTE OF MANAGEMENT STUDIES
Section –A & B - I Semester – I Cycle Test
BA*117 - Accounting for Management
Date: 22.10.10 October / 2010
Time: 09.00 AM to10.30 AM Maximum marks: 50
Part – A
Answer all the Questions 5 x 2 = 10 Marks
1. Define Accounting and mention any three advantages of Accounting.
2. What are the different types of Accounts? Give the Rules for Debit and Credit.
3. Meaning of Dual aspect concept?
4. Meaning of Trial balance.
5. Journalize the given transactions Mr. Kumar commenced Business with cash
Rs.50,000/-, Building Rs.1,00,000/- Bank Balance 1,00,000/-
Due from Rajesh. 15,000/- Due from Rakesh 25,000. Due to Mukesh 10,000,
Due to Kailash 15,000.
Part – B
Answer any Four Questions 4 x 10 = 40 Marks
1) From the following Transactions Pass Journal entries, prepare ledger accounts and
also prepare trial balance.
1994 Balan started Business with capital Rs.10,000.
Jan.
4 Bought goods from Velan Rs.6, 750
7 Cash purchases Rs.3, 000
10 Cash Sales Rs.4, 000
13 Bought goods from Velan Rs.2, 000
16 Sold goods to Gobi Rs.5, 000
18 Paid cash to Velan Rs.2, 850
19 Sold goods to Gobi Rs.500
24 Paid to velan Rs.2, 400
26 Received casntrom Gobi Rs.1, 650
27 Paid salaries Rs.1, 250
30 Received cash from Gobi Rs.200
2) What are the Accounting concept Explain Briefly?
3) Following are the Ledger Balances of Sri Ram & Co. you are asked to prepare
Trial Balance as on 31.12.2000
Opening Stock 10,000 Wages 1,000
Salaries 5,000 prepaid Insurance 2,500
Bills payable 5,000 Depreciation on plant 8,000
Cash In hand 12,000 Capital 60,000
Bank O/D 4,000 Creditors 10,000
Debtors 15,000 Loan from Krishna 25,000
Cash at Bank 18,000 Out standing salaries 2,000
Sales 80,000 Plant & Machinery 90,000
Discount allowed 700 Outstanding Interest on
Accrued Interest payable 5,000 overdraft 500
Purchase 30,000
Reserve for
Doubtful debts 1,200
Trade Expences 500
4) Journalize the follwing transaction in the book of Mr. Ram August 1 2007
Aug1 Mr. Ram started Business with cash 700 Bank Balance 7,300, plant &
machinery 10,000 stock 4,000, building 15,000
Amount due from Gobi 2000
Amount due from Ravi 3000
Amount due to Ganash & Co 4000
Amount due to Sankar 6000
Aug
1 Purchase goods from Ajay Rs.5500
2 Paid to Raj by Cheque Rs.6000
3 Sold goods for cash Rs.2000
7 Deposited into CANARA Bank Rs.3000
10 Sold goods on credit to Ganesh Rs.1,700
13 Purchase government Securities Rs.5000
15 Paid for stationary Rs. 200
16 Received cash from Ganesh Rs.1,500
17. Paid electric charges Rs. 300
18 Cash purchase Rs. 5,000
19 Cash Sales Rs. 3,000
20 Purchased goods worth 20,000 less 20% Trade discount and 5% cash discount
from Malaya & Co for cash supplied them to Kumar & Co. at list price less
10% Trade discount
26 Goods worth Rs.1000 were damaged in transit a claim was mode on transport
authorities for same
27 Paid for rent 1,500
Salaries 2000
30 Ravi is declared insolvent and a Divident of 25 paise per rupee is received
from him in full settlement
31 Paid for postage 150
5) Prepare a Trading account profit and loss account and Balance sheet from the
following Trial Balance of Mr. Rajkumar on 31.12.2005.
Sl.No. Particulars Debit Credit
1 Opening Stock 60,000
2 Drawings 22,000
3 Trade Expenses 1350
4 Salaries 11200
5 Advertising 840
6 Discount 600
7 bad debts 800
8 Business premises 12,000
9 Furniture and fixtund 10,000
10 Cash Inhand 2060
11 Capital 70,000
12 Purchase return 2600
13 Purchases 1,50,000
14 Sales return 5400
15 Wages 7000
16 Conveyance charges 1320
17 Rent, Rates, Taxes and Insurance 5600
18 Interest 430
19 Plant & machinery 20,000
20 Sundry debtors 92,000
21 Sales 2,50,000
22 Sundry Creditors 60,000
23 Bank O/D 20,000
4,02,600 4,02,600
Adjustments:
1. Closing stock 90,000
2. Outstanding Rent was Rs.500. and wages Rs.400
3. Prepaid Insurance was Rs.300 and prepaid salaries were Rs.700
4. Write off Rs.800 as further bad debts
5. Provide for doubtful debts. 5% on sundry debtors.
6. Depreciation on premises @ 2.5% plant and machinery 7.5% and
furniture 10%.
