111. (8)
0)

V. ()

83

Differentiate between Capital Expenditure and Revenue Expenditure. (5)

Mr. Rahim has three ledgers in use — a debtor's ledger, a-creditor’s ledger and a
nominal ledger which are all kept on self balancing system. From the following
particulars, prepare 2601078 Ledger Adjustment Account and Creditor's Ledger
Adjustment Account as would appear in the nominal ledger for the month of

March 2015. - (10)
. ‘ 115.
Balance of Sundry Creditors as on 1/03/2015 7,720
Balance of Sundry Debtors as on 1/03/20156 7 5,600
Credit Purchases _ 80,000
Bills Receivables from customers ? 5,000
Return outwards ध 100
Allowance received 800
Credit sales . ⋅ 1,00,000
Interest on custormers’ Accounts overdue for payment. _ : 700
Collection from Debtors '. 58,000
Sales Return ' 1,200
Credit balances transferred from Purchase ledger to Sales ledger ` 150
Cash sales ' 4,000
Bills receivable dishonoured ↴↴ 1,400
Paid to Creditors - 26,000
Bills payable accepted 5 4,000
Allowances to Customers i _ 20
Bad debts written off है 120

. Debit balances transferred from Debtor's Ledger to Creditor’s Ledger 500°

A bill for Rs. 1,00,000 is drawn by M/é Menon & Co: ‏دہ‎ M/s Narayan & Co. and
accepted by the latter payable at the State bank of India. Show what entries would be
passed in the books of both the parties under each of the following circumstances.’

൫ Ifthey retained the billtill the due date and then realized it on maturity.

(i) Ifthey discounted it with their banker, Bank of India for Rs. 98,000,

(ॐ) If they endorsed it over to their creditors Mathew & Sons in settlement of their
debt Rs. 1,01,000. , ⋅ 4 ⋅∙ ↴

(1) 1೯0೪ ഭ്‌: the same to their bankers for collection. (1)
What are the objectives of providing depreciation? Consider the case of a Machinery
purchased for Rs. 5,00,000 on 1* January 2012 and 10% depreciation on the reducing

balance has been written off as depreciation for three years. Show how this account will
appear in the ledger during the period? 5 00

2 1072016

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