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Accounting Very Important Questions Concepts

Accounting & finance for BankingV. Important

JAIIB Exam Study Material: Accounting Very Important Questions Concepts

The balance at bank as at 17th July 2017 is stated on the bank statement as Rs. 18,450. Cheques yet to be presented to the bank on this date amount to Rs. 19,720. Assuming that the balance in the Bank Account written up in the Cash Book differs only because of circumstances stated in each of the following, what is the bank balance to be reported in the Statement of financial position as at 17th July 2017:

1. The deposits awaiting clearance on that date amount to Rs. 32,475.

a. Rs. 31,205
b. Rs. 5,695
c. Rs. 18,450
d. Rs. 8,450

Ans - a

Bank account balance
18,450
Less Cheques not yet presented
19,720
------------
(1,270)
Add Deposits awaiting clearance
32,475
------------
Overdrawn Balance in Bank Statement
31,205
------------
.............................................

2. Bank balance stated in the Cash Book is Rs. 17,240. Trade Association subscription of Rs. 450 paid by direct debit, a dividend of Rs. 3,000 collected on a mandate are yet to be recorded in the Cash Book. Any difference is deposit awaiting clearance.

a. Rs. 17,240
b. Rs. 19,790
c. Rs. 20,690
d. Rs. 18,450

Ans - d

Business Bank account balance
17,240
Less Direct Debit
450
------------
16,790
Add Dividend
3,000
------------
Revised Cash account balance
19,790
Add cheques not presented
19,720
------------
39,510
Less Deposits awaiting clearance
21,060
------------
Balance in Bank Statement
18,450
------------
.............................................

3. Cash book reports a bank balance on that date of Rs. 11,420. Deposits awaiting clearance amount to Rs. 29,460. Any difference may be attributed to credit transfers from customers and standing order payments not recorded in the Cash Book.

a. Rs. 28,190
b. Rs. 8,710
c. Rs. 1,680
d. Rs. 18,450

Ans - d

Revised Cash account balance
28,190
Add cheques not presented
19,720
------------
47,910
Less Deposits awaiting clearance
29,460
------------
Balance in Bank Statement
18,450
------------
.............................................

4. The Cash book reports an overdraft of Rs. 7,650, having carried over a bank balance of Rs. 21,460 from one folio of the Cash Book to the next as Rs. 12,460 and having recorded twice bank charges of Rs. 25. Any difference is deposit awaiting clearance

a. Rs. 16,700
b. Rs. 1,375
c. Rs. 1,400
d. Rs. 10,700

Ans - b

Cash Book overdrawn
(7,650)
Adjust
9,000
------------
1,350
Add double charge
25
------------
1,375
------------
.............................................

Trial balance of Mr. X did not agree. He put the difference to suspense account and discovered the following errors :

1. Credit sales to Manas Rs. 16,000 were recorded in the purchases book as Rs. 10,000 and posted to the debit of Manas as Rs. 1,000. (i) Credit the purchases account with Rs. 10,000, (ii) Credit the sales account with Rs. 16,000, (iii) Debit Mana’s account with Rs. 16,000, (iv) Credit the suspense account with Rs. 11,000

a. Only (i), (ii) and (iii)
b. Only (i), (ii) and (iv)
c. Only (i), (iii) and (iv)
d. All (i), (ii), (iii) and (iv)

Ans - d

Credit sales to Manas were wrongly recorded in purchases book (instead of sales book) as Rs. 10,000 and wrongly posted to the debit of Manas debit as Rs. 1,000 while the actual sale was for Rs. 16,000, the rectification entry would be to
Credit the purchases account with Rs. 10,000 to rectify the wrong debit.
Credit the sales account with Rs. 16,000
Debit Mana’s account with the difference to be debited (Rs. 1,000 was already debited) i.e. Rs. 16,000 – Rs. 1,000 = Rs. 15,000
Credit the suspense account with the difference i.e. Rs. 10,000 + Rs. 16,000 – Rs. 15,000 = Rs. 11,000
.............................................

2. Furniture purchased from Noor Rs. 6,000 was recorded through purchases book as Rs. 5,000 and posted to the debit of Noor Rs. 2,000. (i) Credit the purchases account with Rs. 5,000, (ii) Credit Noor’s account with Rs. 8,000, (iii) Debit the furniture account with Rs. 6,000, (iv) Debit the suspense account with Rs. 6,000

a. Only (i), (ii) and (iii)
b. Only (i), (ii) and (iv)
c. Only (i), (iii) and (iv)
d. All (i), (ii), (iii) and (iv)

Ans - d

Furniture purchased from Noor was wrongly recorded in the purchases book as Rs. 5,000 and wrongly posted to the debit of Noor as Rs. 2,000 (it should have been credited with Rs. 6,000) while the actual purchase was worth Rs. 6,000, the rectification entry would be to
Credit the purchases account to rectify the wrong debit of Rs. 5,000
Credit Noor’s account with Rs. 2,000 to rectify the wrong debit of Rs. 2,000
Credit Noor’s account with the credit value of 6,000
Debit the furniture account with Rs. 6,000
Debit the suspense account with the difference i.e. Rs. 5,000 + Rs. 8,000 – Rs. 6,000 = Rs. 7,000
.............................................

3. Goods returned to Rai Rs. 3,000 recorded through the Sales book as Rs. 1,000. (i) Debit the sales account with Rs. 1,000, (ii) Debit Rai’s account with Rs. 2,000, (iii) Credit returns outward account with Rs. 3,000

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - d

Goods returned were wrongly recorded through the sales book as Rs. 1,000, the rectification entry would be to
Debit the sales account with Rs. 1,000
Debit Rai’s account with the remaining amount (Among Rs. 3,000, Rs. 1,000 is already debited) i.e. Rs. 3,000 – Rs. 1,000 = Rs. 2,000
Credit returns outward account with Rs. 3,000
.............................................

4. Old machinery sold for Rs. 2,000 to Maneesh recorded through sales book as Rs. 1,800 and posted to the credit of Manish as Rs. 1,200. (i) Debit Manish’s account with Rs. 3,200, (ii) Debit the sales account Rs. 1,800, (iii) Credit Machinery account with Rs. 2,000, (iv) Credit the suspense account with Rs. 2,000

a. Only (i), (ii) and (iii)
b. Only (i), (ii) and (iv)
c. Only (i), (iii) and (iv)
d. All (i), (ii), (iii) and (iv)

Ans - d

Old machinery sold to Maneesh was wrongly recorded (credited) through the sales book as Rs. 1,800 and posted to the credit of Manish as Rs. 1,200 while the actual worth was Rs. 2,000, the rectification entry would be to
Debit Maneesh’s account with Rs. 1,200 to rectify the wrongly done credit of Rs. 1,200
Debit the sales account Rs. 1,800 to rectify the wrong credit of Rs. 1,800 to the sales account.
Debit Maneesh’s account with Rs. 2,000
Credit Machinery account with Rs. 2,000
Credit the suspense account with the difference i.e. Rs. 1,200 + Rs. 1,800 + Rs. 2,000 – Rs. 2,000 = Rs. 3,000
.............................................

5. Total of Returns inwards book Rs. 2,800 posted to Purchase account. (i) Credit the purchases account to rectify the wrong debit of Rs. 2,800, (ii) Debit the Returns Inwards account, (iii) Credit the suspense account with Rs. 2,800

a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)

Ans - a

Total of returns inwards book was wrongly posted to the purchases account, the rectification entry would be to
Credit the purchases account to rectify the wrong debit of Rs. 2,800
Debit the Returns Inwards account
.............................................

From the following information, answer the following questions. On 1st June 2018 Mr. Raj started a fast food shop with stock of goods of Rs. 55,000 in Delhi. The following transactions occurred in his business in that month:

Jun-05 - Sold goods to Shahed Rs. 5,000;
Jun-12 - Goods purchased Rs. 12,000;
Jun-20 - Sold goods on credit Rs. 35,500;
Jun-23 - Cash received from Rafi Rs. 5,400;
Jun-28 - Goods returned to seller Rs. 3,400.

1. Which transactions will be recorded in the journal proper of Mr. Raj?

a. Sold goods in cash
b. Sold goods on credit
c. Goods returned to seller
d. Started with stock of goods

Ans - d
.............................................

2. In which book the transactions occurred on June 05 and 20 will be recorded?

a. Purchase journal
b. Purchase return journal
c. Sales journal
d. Sales return journal

Ans - c
.............................................

3. Mr. Raj will prepare ...... on returning goods
a. Debit note
b. Credit note
c. Debit voucher
d. Credit voucher

Ans - a
.............................................

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