Roll No.

Total No. of Questions: 07 Total No. of Pages: 02

B.Sc. (IT) (Sem. 4)
BASIC ACCOUNTING
Subject Code: BSIT-405
Paper ID: 74087
Time: 3 Hrs. Max. Marks: 60

INSTRUCTIONS TO CANDIDATES:
1. Section A is COMPULSORY consisting of TEN questions carrying TWO marks each.
2. Attempt any FOUR questions from section B each question carries TEN marks.

SECTION A

1. Explain the following terms:

a) Branches of Accounting
b) Rules of double entry system
c) Accounting Equation
d) Contra entry
e) Rishab Arora had the following balances on 1st April, 2016. Cash at bank Rs. 18,000,
stock Rs. 28,000, Debtors Rs. 85,000, Bills receivable Rs. 12,000, Insurance prepaid Rs.
2.000, Loan to Munish Rs. 6,000, Due from Suresh Rs. 8,000, Loan from Arjun Rs. 17.000,
Due to Rajan Rs. 11,000, Sundry creditors Rs. 13,000, Rent outstanding Rs. 4.000. Pass the
necessary Opening journal entry.
f) If balance as per Cash book on 31 Dec 2016 is Rs.4.200. Cheques issued but not
presented for payment is Rs.1.300 cheques deposited but nor credited by bank is Rs.2,450. Find
the balance as per pass book.
g) Marshalling of Balance sheet
h) Bank statement vs Bank Reconciliation statement
i) Working capital cycle
j) Manual vs. Computerized Accounting

SECTION B

2. Distinction between Accounting and Book-keeping. Explain the objectives and

functions of accounting with suitable examples.

Page 1 of 2
3. What do you understand by Accounting Principles? Discuss the concepts and
conventions of accounting.

4. "A trial balance is merely a proof of arithmetical accuracy." Explain this statement and
bring out clearly the various classes of errors, which a trail balance fails to disclose.

5. From the following particulars write up the sales book of MIS Ram Singh & Sons who
deals in furniture. Also make posting there from.
2016
July. 2 Sold on credit to kwality Sweets.
10 tables @ Rs. 500
30 chairs @ Rs. 200
July. 8 Sold on credit to Banarsi Dass & Co.
2 Almirahs @ Rs. 8,000
1 Dining table @ Rs. 5,000
July. 15 Sold old typewriter on credit to Sohan Singh & Bros. for Rs. 400
July. 22 Sold on cash to Rahul Aneja.
60 chairs @ Rs. 800
15 tables @ Rs. 1,500
Trade discount is given on the sales at the following rates:
Sales up to Rs. 20.000 5%
Sales beyond Rs. 20,000 10%

6. Prepare a bank reconciliation statement as on 30th April, 2013 from the following
particulars:
i. A’s overdraft as per bank pass book was Rs. 15,000/- as on 30th April, 2013.
ii. On 25th April, 2013 cheques have been issued for Rs. 10,000 of which
cheques for Rs. 5,000/- only had been encashed upto 30 April, 2013.
iii. Cheques amounting to Rs. 6,500/- had deposited into bank for collection but of
these only Rs. 1,200/- had been credited in the bank pass book.
iv. Bank had charged Rs. 1,000/- as interest on overdraft, the intimation of
which was received on 10th May, 2013.
v. Bank pass book shows credit for Rs. 2,000/- representing Rs. 800/- paid by a
debtor directly into the bank and Rs. 1,200/- collected by bank in respect of interest
on A's investment. A had no knowledge of these items.
vi. Bank had debited Rs. 2,400/- on account of life insurance premium of A as
per his standing advice which was not recorded in the cash book.
vii. Credit side of the cash book bank column was cast short by Rs. 2,000/-

7. Explain various long term sources of fixed working capital in detail?