III – Short Essay / Paragraph Questions (Answer Any Five Questions)

III –Short Essay / Paragraph Questions (Answer Any Five Questions)

22)      Define revenue expenditure and give two examples

23)     X purchased a radiogram on HP system. He is required to pay Rs 800/- down, Rs. 400/-at the end of first year and Rs. 300/- at the end of second year and Rs.700/- at the end of third year.Interest is charged at 5% p. a. calculate cash price and interest of each instalment

24) Prepare accounting equation and balance sheet on the basis of the following :

Ram started business with cash 60,000

He purchased furniture 10,000

He paid rent 2,000

He purchased goods on credit from Mr.Anil 30,000

He sold goods (cost price Rs.20,000) for cash 25,000

25)Enter the following transactions in the double column cash book of  Mr.Rajesh and balance it.

2003

Aug. 1 Opening Balance : Cash in Hand Rs.4,250  Cash at Bank Rs.13,750

          2            Paid to petty cashier Rs.2,500

          2  Cash sales Rs.1,750

           3 Paid to Arun by cheque Rs.3,750

           3 Received a cheque from Mr.Ram Babu Rs.4,500 paid into bank.

           5 Received cheque from Mr.Jayaraman Rs.6,000 paid into bank

           8 Cash purchases Rs.2,500

           8 Paid rent by cheque Rs. 2,500

           9 Cash withdrawn from bank for office use Rs.2,500

         10 Cash sales Rs.3,750

         14 Stationery purchased Rs.1,000

         20 Cash sales Rs.6750

         21 Paid into bank Rs.10,000

26)Mr. Lal occupied a room in the Sagar Hotel, Trissur on 15 th January 2010. He came at 8 a.m. for accommodation only at a Rent of Rs. 800 per day for every 24 hours or part thereof.

Compute the amount payable by Mr. Lal under each of the following conditions assuming that

service charge levied by the hotel @ 10%

(a) If he checks out at 4.00 p.m. on 15-01-2010

(b) If he checks out at 7.00 a.m. on 16-01-2010

(c) If he checks out at 1.00 p.m. on 16-01-2010

(d) If he checks out at 8.00 p.m. on 17-01-2010

27)What are the adjusting entries passed for the following ?

Salary outstanding Rs 1450

Insurance paid in advance Rs 660

Depreciation on plant and machinery Rs 1750

Interest received in advance Rs 340

Goods distributed as free samples Rs 500

28)From the following data ascertain total sales

Balance of debtors on 1-1-2011                 24000

Sales returns                                                 10000

Cash received from customers                    90000

Discount allowed t them                              6000

B/R received                                     34000

Bad debts                                           3000

B/R dishonoured                              7000

Balance of debtors as on 31-12-2011        20000

Cash sales                                          50000

                                                      (5 × 2 = 10 Weightage)