Subject Code: COM101
Guidelines:
- Attempt all questions.
- Each question carries 20 marks.
Question 1:
a. Define accounting and explain its objectives. (10 marks)
b. Briefly explain the different types of accounting information users. (10 marks)
Question 2:
a. What is the difference between financial accounting and cost accounting? (10 marks)
b. Explain the difference between capital and revenue expenditure with suitable examples. (10 marks)
Question 3:
a. Prepare the journal entries for the following transactions: (10 marks)
1. Purchased goods from XYZ Company on credit for Rs. 10,000.
2. Paid rent for the month of January Rs. 5,000.
3. Sold goods to ABC Company for Rs. 15,000.
b. Prepare the ledger accounts for the above transactions. (10 marks)
Question 4:
a. Calculate the depreciation using the straight-line method for a machine that cost Rs. 1,00,000 with a useful life of 10 years and a scrap value of Rs. 10,000. (10 marks)
b. Explain the difference between tangible and intangible assets. (10 marks)
Question 5:
a. Prepare the bank reconciliation statement as on December 31, 2022, from the following information: (10 marks)
Cash balance as per cash book: Rs. 20,000
Cash balance as per bank statement: Rs. 25,000
Cheques deposited but not cleared: Rs. 5,000
Cheques issued but not presented for payment: Rs. 3,000
Bank charges: Rs. 500
Interest credited by the bank: Rs. 1,000
b. What is the purpose of a bank reconciliation statement? (10 marks)