Preparatory Course in Commerce
PCO-01: PREPARATORY COURSE IN COMMERCE
TUTOR MARKED ASSIGNMENT
1. What are the types of account? Give the rules of debit and credit of the three types
of accounts. Explain the reasons of the popularity of double entry system. (20)
2. Exlain how the following transactions would be recorded in a cash book with
Cash and Bank columns ?
i) Deposit of cash into Bank
ii) Withdrawal of money from Bank for office use
iii) Deposit of cheques (received from others) into Bank
iv) Dishonour of cheques deposited into Bank (4 × 5)
3. While preparing Bank Reconciliation Statements will you add or deduct the following to or from
the Cash Book overdraft balance?
i) Cheques deposited but dishonoured
ii) Cheques drawn but not cleared
iii) Interest on overdraft
iv) Direct amount deposited by the customer into Bank. (4 × 5)
4. ‘‘Trial Balance is not a conclusive proof of the accuracy of the books of accounts.’’
Explain this statement and explain the errors which are not disclosed inspite of the
agreement of Trial Balance. (4 × 5)
5. From the following Trial Balance of Seema Garments as on 31st Dec., 2007, prepare Trading
Profit and Loss Account and Balance Sheet:
Dr. Rs. Cr. Rs.
Opening Stock 15000
Purchases and Sales 109000 180000
Manufacturing Wages 8000
Fuel, Power and Lighting 12000
Income Tax 5500
Loan to Mr. X at 10% pa. 5000
Interest on Mr. X’s Loan 300
Apprentice Premium 4500
Rent Owing 600
Furniture (includes furniture of Rs.1000
purchased on 1st July, 2007) 5000
B/R and B/P 6000 1600
Debtors and Creditors 28000 13000
1. Closing Stock was valued at Rs. 30,000.
2. Goods worth Rs. 5000 was sold on 28th December, but no entry was passed to this effect.
3. Goods costing Rs. 7000 was purchased and included into Stock but no entry was passed to record
4. Create a provision of 2% for discount on debtors.
5. Apprentice premium received on 1st January, 2007 was for 3 years.
6. Depreciate the furniture by 10% p.a.
7. Salaries for the month of December, 2007 are still outstanding. (20)View more....