Fundamentals of Accounting 2021

21100119
QP CODE: 21100119 Reg No : .....................
Name : .....................
UNDERGRADUATE (CBCS) EXAMINATION, FEBRUARY 2021

Fifth Semester
(Offered by the Board of Studies in Commerce)
Open Course - CO5OPT03 - FUNDAMENTALS OF ACCOUNTING
2017 Admission Onwards
1F8FC043
Time: 3 Hours Max. Marks : 80
Part A
Answer any ten questions.
Each question carries 2 marks.
1. Explain Double Entry System of Accounting.
2. What is opening entry?
3. Narrate the rules of debit and credit as per Modern Approach.
4. Define real account? Give Example.
5. List out any two reasons of cash discount allowed by business houses?
6. Explain Posting.
7. Explain Debit Note and Credit Note.

8. What are the limitations of a Trial Balance?
9. What is a Balance Sheet? What is the need of preparing it?
10. What do you mean by direct expense?
11. Prepare Trading Account from the following items:

Purchases Rs. 41000
Opening stock Rs. 9000
Sales Rs. 75000
Carriage inwards Rs. 1500
Wages Rs. 2000
Closing stock Rs. 12000
12. What do you mean by grouping and marshalling of assets and liabilities?
Page 1/4 Turn Over

(10×2=20)
Part B
Answer any six questions.
13. Why accounting is called the language of the business world? Explain.
14. Distinguish between Book Keeping and Accounting
15. What is a Liability? Explain its types
Pass the opening entry on the basis of the following information obtained from the
16.
business of Mr. Shyam
Rs.
Cash in hand 2000
Sundry debtors 6000
Stock of Goods 4000
Machinery 5000
Land and Buildings 10000
Sundry Creditors 10000
17.
Journalise the following transaction
1. Mr. Raju sold to Mr. Sonu goods of the catalogue price 10,000 at a trade
discount of 10%
2. Mr. Sam owes an amount of 1,000 to Mr. Ram. Mr. Sam makes the payment
promptly and Mr. Ram allows a reduction of 50.
18. Explain the advantages of Journal?
19. From the following particulars prepare the account of Mr.Sangeeth as it would appear in
the books of Mr.Roy
March
2019
7 Sold goods to Mr.Sangeeth 3000
15 Mr.Sangeeth returned goods 500
18 Mr.Sangeeth paid on account 1000
20 Discount allowed to Mr.Sangeeth 300
Received a cheque from Mr.Sangeeth and
21 700
deposited into bank
25 Paid cash 70
Page 2/4
20. Prepare a Trial Balance from the Following
Particulars Amount (Rs)
Cash 38750
Capital 50000
Purchases 4500
Creditors 2000
Furniture 8000
Debtors 1000
Sales 3000
Commission 750
Rent 3500
21. Mention the differences between a Balance sheet and a Trial balance.
(6×5=30)
Part C
Answer any two questions.
22. From the following particulars prepare cash book with cash, bank and discount columns.
2019 April
1 Nikesh commenced business with cash Rs.25000
and by transferring Rs.50000 from his savings
account to current account opened in the name of
business
2 Goods purchased by cheque Rs.4000
4 Cash sales Rs.5000
6 Goods purchased from Sunil Rs.3000
8 Goods sold to Akash Rs.8000
Akash issued a cheque for Rs.7900 in full settlement
10
of his account
14 Deposited cash into bank Rs.4000
Purchased goods from Soman for Rs.5000 and sold
16
the same goods to Cheriyan for Rs.6000
18 Cheriyan returned 25% of goods
Received cheque from Cheriyan for Rs.4475 in full
20 settlement. The cheque was deposited in the bank on
the same day
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22 Issued a cheque to Soman for Rs.4800 in full
settlement of his account
30 Withdrew by cheque for Rs.500 for personal use
23. Explain in detail the various Accounting Concepts and Conventions.
24. Explain the various subsidiary books maintained by a firm. Also Explain the advantages of
Subdivion of journal
25. The following is the trial balance on 31st March 2019
Particulars Debit (Rs.) Credit (Rs.)

Capital 58400
Opening stock 15000
Purchases 60000
Sales 110000
Purchases return 3500
Sales return 2200
Advertisement 3000
Freight 3800
Bank charges 1000
Discount allowed 1200
Discount received 1800
Machinery 20000
Sundry debtors 30000
Sundry creditors 18000
Drawings 8000
Cash in hand 1200
Cash at bank 2500
Manufacturing expenses 3800
Land and building 40000
191700 191700
The closing stock is valued at Rs. 19500
Prepare Trading and Profit and Loss Account for the year ending 31st March 2019 and
Balance Sheet as on that date.
(2×15=30)
Page 4/4

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21100119

QP CODE: 21100119 Reg No : .....................

UNDERGRADUATE (CBCS) EXAMINATION, FEBRUARY 2021

1. Explain Double Entry System of Accounting.

2. What is opening entry?

3. Narrate the rules of debit and credit as per Modern Approach.

4. Define real account? Give Example.

7. Explain Debit Note and Credit Note.

9. What is a Balance Sheet? What is the need of preparing it?

10. What do you mean by direct expense?

11. Prepare Trading Account from the following items:

Page 1/4 Turn Over

14. Distinguish between Book Keeping and Accounting

15. What is a Liability? Explain its types

18. Explain the advantages of Journal?

Page 3/4 Turn Over

23. Explain in detail the various Accounting Concepts and Conventions.

25. The following is the trial balance on 31st March 2019

Particulars Debit (Rs.) Credit (Rs.)

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