Question 1) Explain the functions of money and describe its importance in our day to day life.
Question 2) Explain the factors that affect the demand for money in an economy.
Question 3) Explain the recent developments related to the functioning of commercial banks in India.
Question 4) Write brief notes on the following:
(i) Money Market
(ii) Inflation
(iii) Role of World Bank in poverty alleviation
(iv) Objectives of IMF
Question 5)(a) Describe the following:
(i) Money Measurement concept
(ii) Business entity concept
(iii) Realization concept
(b) What are Final Accounts? What function do they serve?
Question 7)(a) Differentiate “straight line method” and “diminishing balance method” of calculating depreciation. Which one of the above two methods will you recommend to compute depreciation on Plant and Machinery?
(b) From the following particulars, create Income and Expenditure Account:
Rs.
(i) Fees collected, including Rs. 80,000 on account of the previous year 3,80,000
(ii) Fees for the year outstanding 10,000
(iii)Salary paid including Rs. 8,000 on account of the previous year 98,000
(iv)Salary outstanding at the end of the year 9,000
(v) Entertainment Expenses 3,000
(vi)Tournament Expenses 42,000
(vii)Meeting Expenses 18,000
(viii)Traveling Expenses 6,000
(IX) Purchase of Books and Periodicals (including Rs. 18,000for purchase of books) 28,000
(X) Rent paid 17,000
(XI) Advertising Expenses 15,500
(XII) Postage and Stationery 4,500
Donations received (50% of which is to be capitalized) 25,000
Question 8)(a) Rashid and Co. keeps his book on single entry system, his position on 1st January 2011 was as follows:
Cash in hand: Rs. 200, Cash at Bank: Rs. 3,000, Stock in trade: Rs. 20,000,
Sundry Debtors: Rs. 8,500, Furniture: Rs. 1,800, Machinery: Rs. 15,000,
Sundry Creditors: Rs. 22,000.
On 31st December, 2011 the financial position was as follows:
Cash in hand: Rs. 300, Cash at Bank: Rs. 2,000, Machinery: Rs. 27,000,
Furniture: Rs. 1,500, Sundry Debtors: Rs. 14,000, Stock in trade: Rs. 19,000,
Sundry Creditors: Rs. 29,000.
During the year Rashid introduced a new capital of Rs. 5,000 and withdrew for his personal expenditure Rs. 9,000.
From the above figure, prepare a statement showing the profit or loss made by him during 2011.
(b) Describe the meaning of a “Partnership Deed”. Mention the rights and duties of partners in the absence of partnership deed.
Question 9)(a) Differentiate between Hire Purchase System and Instalment System.
(b) A acquired on 1st January, 2009 a machine under a hire purchase agreement which provides for 5 half-yearly instalments of Rs. 6,000 each, the first instalment being due on 1st July, 2009. Assuming that the applicable rate of interest is 10 percent, calculate the cash value of the machine.
Question 10) From the following particulars relating to Kolkata Branch for the year ended December 31, 2010 prepare Branch Account in the books of Head Office:
Rs. Stock at branch on January 1, 2010 10,000
Branch Debtors on January 1, 2010 4,000
Branch Debtors on Dec. 31, 2010 4,900
Petty cash at branch on January 1, 2010 500
Furniture at branch on January 1, 2010 2,000
Pre-paid fire insurance on January 1, 2010 150
Salaries outstanding at branch on January 1, 2010 100
Goods sent to Branch during the year 80,000
Cash Sales during the year 1,30,000
Credit Sales during the year 40,000
Cash Received from Debtors 35,000
Rs. Cash Paid by the branch debtors direct to Head Office 2,000
Discount allowed to debtors 100
Cash sent to branch for Expenses:
Rent 2,000
Salaries 2,400
Petty Cash 1,000
Insurance up to March 31,2011 600 6,000
Goods Returned by branch 1,000
Goods Returned by debtors 2,000
Stock on December 31 5,000
Petty Expenses at Branch 850
Provide Depreciation on furniture 10% p.a.
Goods costing Rs.1,200 were destroyed on account of fire and a sum of Rs. 1,000 was received from the Insurance Company.