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QUESTION PAPER
COMMERCE, PAPER – II
MARCH – 2004
Time: 3 Hours] [Max. Marks: 100
PART – A
(Marks: 50)
I. Answer any two questions from the following not exceeding 40 lines each
2 x 10 = 20
(a) Explain the functions of Stock Exchanges.
(b) Distinguish between Departmental stores and Multiple Shops?
(c) What is Consumerism? Explain the powers of District Forum.
II. Answer any four questions from the following not exceeding 20 lines each
4 x 5 = 20
(a) Explain the advantages of Insurance
(b) Explain the benefits of indent houses.
(c) What is Print Media?
(d) Explain Bulls and Bears.
(e) Write the advantages of Computer.
(f) What are the leadership qualities?
III. Answer any five questions from the following not exceeding 5 lines each
5 x 2 = 10
(a) What is advertisement?
(b) Time management
(c) State any 4 parts of computer
(d) Speculator
(e) Jettison
(f) Write any two reasons for backwardness of consumer movement in India.
(g) What is the principle of indemnity?
(h) Explain about hawkers?
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PART – B
(Marks: 50)
IV. Answer any one question from the following:
1 x 20 = 20
(a) A & B are partners. They share the profits in the ratio of 3 : 2. Their Balance
Sheet is as follows:
Balance Sheet of A & B
Liabilities Rs. Assets Rs.
Creditors 1,24,350 Cash in hand 7,100
Capital – A 3,40,500 Bank balance 1,19,250
Capital – B 3,40,500 Debtors 55,000
Stock 1,80,000
Furniture 44,000
Buildings 4,00,000
8,05,350 8,05,350
A & B decided to admit ‘C’ with 3/8 share as a new partner as on 1-4-2000. ‘C’
must bring Rs.3,00,000 as Capital and Rs.85,000 as goodwill. Goodwill retain in
the firm. A & B agreed the following adjustments before the new partner’s entry.
(1) 12.5% depreciation on Stock and Furniture
(2) The value of buildings is raised by Rs.75,000
(3) 5% Bad debts on debtors
(4) Value of Rs.21,500 investments must be bring into the Books of Accounts
(5) Rs.6,000 must be deducted from the creditors. Prepare Profit & Loss
Adjustment A/c, Partners capital a/c ‘s and Balance sheet after the entry of
‘C’.
(b) From the following Receipts and Payment a/c, for the year ending 31-12-2000,
Prepare an Income & Expenditure Account and Balance Sheet as on that date.
Receipts and Payments a/c
Receipts (Dr.) Rs. Payments (Dr.) Rs.
To Donations 35,000 By Salaries 37,500
To Subscriptions 1,15,000 By Help to poor students 37,000
To life membership fees 50,000 By Expenses on free
dispensary 34,500
To Legacy 75,000 By Postage & Stationery 3,500
To Interest received 4,000 By Furniture 50,000
By Investments 75,000
By Cash in hand 41,500
2,79,000 2,79,000
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Additional Information:
(1) Subscriptions outstanding for the current year is Rs.5,000.
(2) Salaries unpaid Rs.5,000.
(3) Help to poor students promised but unpaid Rs.16,000
(4) Expenses of dispensary outstanding Rs.3,000
(5) Postage and stationery expenses yet to be paid Rs.4,000.
V. Answer any four questions: 4 x 5 = 20
(a) Krishna purchased an asset for Rs.48,000 and spent Rs.2,000 on its expansion.
The estimated life of the asset is 10 years. The residual value at the end of its life
period is Rs.5,000. Calculate annual depreciation on the asset and prepare Asset
Account for 3 years.
(b) On 1st March, Ravi sold goods to Radha worth Rs.7,000 and drew a bill for the
amount payable 4 months after that date. Radha duly accepted the bill and the
bill was honoured. Pass the necessary entries in both the books.
(c) From the given information calculate the average due date.
Date of Bill Drawn Maturity period Amount (Rs.)
10th Jan 1999 3 months 800
15th Feb 1999 2 months 1,000
10th Mar 1999 2 months 400
5th April 1999 1 month 600
(d) Distinguish between Joint Venture and Partnership.
(e) Hari in Hyderabad sends 150 cycles on consignment to Raman of Repalle. Cost
of each cycle is Rs.500. But its invoice is Rs.600. Hari paid Rs.750 towards
packing and dispatch. Raman receives the consignment and immediately
accepts Hari’s draft for Rs.30,000. Later Raman informs that 120 cycles have
been sold at Rs.600 each. He paid expenses on freight Rs.1,750. He is entitled
to a commission of 5% on sale and 2% of del credere commission. Prepare
Consignment Account.
(f) What is Account Current? When is it used?
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VI. Answer any five questions from the following.
(a) What is Bills of Exchange? Name the different parties concerned.
(b) Red Ink Interest.
(c) Base date April 17th Total of the products Rs.21,000. Total amount Rs.1,500.
What is the average due date?
(d) A & B are partners sharing profits and losses in the ratio of 5 :3. ‘C’ is admitted
as partner. The new ratio is agreed as 7: 5: 4. Find out the sacrificing ratio of A &
B.
(e) What is consignment?
(f) What is Revenue Expenditure?
(g) Explain any two causes of Depreciation.
(h) A & B enter into Joint Venture (4 :1). A supplied goods Rs.10,000 and paid
expenses Rs.1,000. ‘B’ sold a part of goods for Rs.15,000 and his expenses
were Rs.2,000. He also taken over the goods worth Rs.1,500 for his personal
use. The remaining goods were taken over by ‘A’ at an agreed value of Rs.1,000.
Prepare Joint Venture Account in the Books of ‘A’.
