PRE-FI NAL EXAMINATIONS - JAN / FEB -2011 Financial Accounting - Paper-I Time: 3 hrs Max. Marks 70 PART - A I. Answer a ny four questions. 5x4=20 1. Distinguish Book – keeping from accounting and explain the main functions of accounting. 2. What is meant by B ank reconciliation statemen t? Explain the reasons for discrepancy between cash book and pass book. 3. Rectify the following errors. (i) Purchase book is short by Rs.2000 (ii) Sales Return Book is over costly Rs.400 (iii) Machinery purchased but entered in purchase book Rs.600 (iv) Goods sold but entered in purchase book Rs.500 4.Differentiate between Trial balance and balance sheet. 5. What is meant by Account Sales? Prepare an account sales with imaginary figures. 6. A purchased a machine on 1.1.2006 worth Rs.10,000. The life of the machine was 10 Years. The scrap v alue of the mac hine after 10 yea rs is Rs.100. Prepare Machine Account for the first 3 years on fixed instalment method. 7. What is the difference between consignment and joint venture? 8. What is “ Secret Reserves” ? How can be created? What are advantag es of Secret Reserves? PART – B II. Answer to the theory Questions should not exceed four pages each. 5 x 10 = 50 1. (a) Discu ss money me asure ment con cept, go ing conc ern conc ept match ing conc ept and consistency concept as applicable in financial accounting. Or (b) What is double entry sy stem? Give five advantage s of double entry system? 2. (a) Ente r followi ng tran sact ions in th ree co lumns c ash book 2007. Nov. 1 Cash balance (Dr.) Rs.2000; Bank Balance (Cr) Rs.8,000 2. Received Rs.3980 in full settlement of his account of Rs.4,000 from Antony 3. Received a cheque from Rosi Rs.5980 in full settlement of Rs.6000. 4. Paid salaries Rs.1000, Wages Rs.2000 and Rent Rs.1500 through cheques. 8. Paid into Bank Rs.1200 9. Cheque Drawn from bank Rs.2000 for office use. 10. Cheque drawn for personal use Rs.600 15. An intimation from stating that Rosi’s cheque was dishonoured. 20. Cash sales Rs.10,000 21. Cash purchases Rs.6,000 28. Paid Ramesh Rs.1090 and discount Received Rs.10 30. Settled B’s cheque account of Rs.5000 by paying cheque Rs.4,950 Or
