Q 1. Define Accounting. How does it differ from book-keeping?
Q 2 What is basic accounting equation?
Q 3 What is Journalizing? Give a format of Journal & briefly explain its content.
Q 4.What are the advantages of special Journal & list them.
Q 5 State the reasons for the difference between the cash book balance & pass book balance.
Q1 Define depreciation. Differentiate, with suitable example, between Diminishing Balance Method &Straight Line Method of charging depreciation.
Q2 Define Bills of Exchange and explain the parties involved in it.
Q3 Distinguish between capital expenditure & revenue expenditure.
Q 4 Case Study:
The following is the Trial Balance of Gupta as on 30th June, 2001 Trial Balance of Gupta for the year ending 30th June, 2001
Taking into account the following adjustments prepare the Trading, Profit and Loss account as on 30th June, 2001.
1. Inventory on hand on 30th June, 2001 is Rs.6, 800.
2. Machinery is to be depreciated at the rate of 10% and Patents at the rate of 20%.
3. Salaries for the month of June 2001amounting to Rs.1, 500 were unpaid.
4. Insurance includes an annual premium of Rs.170 on a policy expiring on 31st December, 2001.
5. Bad debts to be written off are Rs.725.
6. Rent receivable Rs.1, 000.
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University: AMITY Year: 2015