IGNOU| ACCOUNTANCY - I (ECO - 02)| SOLVED PAPER – (JUNE - 2023)| (BDP)| ENGLISH MEDIUM
BACHELOR'S DEGREE PROGRAMME
(BDP)
Term-End Examination
June - 2023
(Elective Course: Commerce)
ECO-02
ACCOUNTANCY-I
Time: 2 Hours
Maximum Marks: 50
Note: Attempt four questions in all. Question No. 1
is Compulsory.
1. From the following transactions, make accounting
equation and prepare the Balance Sheet from the balances of new equation: 14
|
Particulars |
Amount (Rs.) |
|
(i) Rahul
started business with cash (ii)
Purchased goods for cash (iii)
Purchased goods on credit (iv)
Purchased furniture for cash (v) Rent
received (vi)
Commission paid (vii)
Withdrew cash for personal use (viii) Sold
goods on credit (Cost Price 40,000) (ix) Paid to
creditors (x) Received
from Debtors |
1,00,000 30,000 15,000 5,000 3,000 1,000 5,000 50,000 10,000 8,000 |
2. Differentiate between a Bill of Exchange and a
Promissory Note. State the transactions recorded in Bills Receivable (BR) and
Bills Payable (BP) book. 12
Ans:- The differences between bill of exchange and
promissory note are:-
A bill of
exchange is a negotiable instrument which is a legally binding document
containing an order to pay a certain amount to a person within a pre-determined
time frame or on demand of the holder of the instrument.
A creditor
issues a bill of exchange to the debtor for payment of money owed for goods and
services received by the debtor. A key feature of a bill of exchange is that to
be valid it must be accepted by the debtor.
A promissory
note is a negotiable instrument containing a written promise by a person or
entity to pay its holder a certain amount of money on demand by the holder or
on a pre-specified date.
The most
important feature of a promissory note is that once it is drawn up by the
debtor, it does not need to be accepted by the lender.
|
Bill of Exchange |
Promissory Note |
|
|
Definition |
A negotiable instrument that orders the
debtor to pay a certain amount to the debtor within a specific date or on
demand. |
A negotiable instrument issued by a debtor
containing a written promise to pay the creditor a certain amount within a
specific date or on demand. |
|
Section |
Mentioned in Section 5 of the Negotiable
Instruments Act, 1881 |
Mentioned in Section 4 of the Negotiable
Instruments Act, 1881 |
|
Issued By |
lender |
Thankful |
|
Parties Involved |
There are three parties involved i.e. a
drawer, a drawee and a payee. |
There are two parties involved i.e. the
payer/maker and the payee. |
|
Acceptance |
The drawee must accept the bill of
exchange before payment. |
Approval from the payer is not required. |
|
Liability |
The responsibility of the drawer is
secondary and conditional. |
The responsibility of the drawer is
primary and absolute. |
|
Dishonouring of instrument |
On dishonor of the instrument, notices
were sent to all concerned parties involved in the transaction. |
No notice given to the drawee in case of
dishonor of the instrument. |
|
Copies |
There may be copies of bills of exchange. |
The promissory note does not permit any
copying. |
|
Is it Payable to drawer/maker |
Yes, the same person can be both the payer
and the payee. |
The same person cannot be the drawer and
the payer. |
Bills
Receivable book records transactions relating to bills of exchange, including:-
(i) Bills were
prepared and accepted
(ii) Bills
received from debtors
(iii) Bills of
exchange receivable for trade
A bill
receivable is a bill of exchange given by a seller to his customer. It serves
as proof of debt.
The following
details of the bill are recorded in the bills receivable book: date, name of
the acceptor, amount, period, place of payment.
The total value
of all bills receivable for an accounting period is transferred to the books of
accounts.
The bills
payable book records transactions relating to bills of exchange.
These
transactions include:- Approved Bill, Endorsement, Rejected Bill, Payee
Name, Payee Name, Period, Due Date, Bill Date, Amount, Period, Place of
Payment, Cash Book Folio.
The Bills Payable
book summarizes information about the drawee's acceptances. This can be used
for future reference.
Bills payable are
business documents that represent amounts owed for goods and services sold on
credit. Examples of bills payable include: service invoices, phone bills,
utility bills.
3. Discuss the drawbacks of Single-Entry System of
Accounting. Explain the methods of ascertaining profit when accounting records
are incomplete. 4, 8
[COMING SOON]
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