Question 1

M.
M: 40 Marks
 Question 1 to 10 carries 1 mark each.
 Questions 11,12 carries 3 marks each.
 Questions from 13 to 15 carries 4 marks each.
 Questions from 16,17 carries 6 marks each.
1. Mr. X issued cheques worth Rs.15,000 in March 2014 out of which cheques worth Rs.10,000 only
were presented for payment by 31st March,2014. While reconiling bank and cash book balance as
on 31st March,2014, how much would be added to balance as per cash book to arrive at balance as
per Pass book.
A) Rs.15,000
B) Rs.10,000
C) Rs.5,000
D) Rs.7,500
2. Which Transactions are recorded in journal proper ?

A) Adjustment Entries
B) Rectification entries
C) Transfer entries
D) All of the Above
3. Overdraft as per cash book means ___________.

A) credit balance in the cash column of the cash book
B) credit balance in the bank column of the cash book
C) neither of the two
D) both (a) and (b)
4. _________ will not be recorded in cash book

A) Depreciation
B) Rent paid
C) BR discounted
D) Cash discount allowed
5. When the overdraft as per Cash Book is the starting point, a cheque of Rs.1,00,000 deposited into
Bank but not recorded in Cash Book will be:
A) Deducted by Rs. 1,00,000.
B) Added by Rs.1,00,000.
C) Added by Rs.2,00,000.
D) Deducted by Rs. 2,00,000.
6. Fill in the blanks with appropriate words in the following sentences.

The transaction "Paid salaries" comes under _______ account.
7. On January 1, 1992, there was a balance of Rs. 4,000 in the plant and machinery account. An
addition of Rs. 2,000 was made on July 1, 1992. Accounts were closed for the year on December 31,
1992. If depreciation was charged at 10% per annum, the balance in the plant and machinery
account on the closing date would be:
A) Rs. 5,300
B) Rs. 5,400
C) Rs. 5,500
D) Rs. 5,600
8. Goods sold for cash were returned by a customer but cash was not given immediately. This is
recorded in ______________.
A) Sales Book.
B) Sales Return Book.
C) Cash Book.
D) Journal Proper.
9. The term "___________" is used for the process of writing down long term investment in intangible.
A) Depreciation
B) Depletion
C) Amortization
D) Obsolescence
10. Which of the following statements is/are true?

(i) Cash book records all cash receipts and cash payments.
(ii) Cash book records all sale and purchase transactions of goods both in cash and on credit.
(iii) Cash book records discount on cash payments
Select the correct answer from the options given below :-
A) Only (i) of the above
B) Only (ii) of the above
C) Only (iii) of the above
D) Both (i) and (iii) of the above
11. Give the Journal entries for the following:

I. Gross Profit of 32,000 from Trading Account to Profit & Loss Account.
II. Net Profit of 14,500 to Capital Account of Sri Sankar Saha.
III. Sri Sankar Saha draws 10,000 from his Capital Account.
IV. Purchases Return of 7,000.
V. Sales Return of 6,000.
12. On April 1, 2013 Kannu bought Machinery costing 80,000. On July 1, 2015 Machinery was sold for
40,000. Prepare Machinery Account from April, 1 2013 till July 1. 2015 assuming depreciation was
charged @ 10% per annum on March 31, every year on the basis of Original cost method.
13. From the following particulars, prepare a, bank reconciliation statement as at March 31, 2017.
(i) Balance as per cash book ₹ 3,200
(ii) Cheque issued but not presented for payment ₹ 1,800
(iii) Cheque deposited but not collected upto March 31, 2017 ₹ 2000
(iv) Bank charges debited by bank ₹ 150
14. Enter the following transactions in the Purchase Book of M/s Gupta Traders of July 2017:
01 July,2017
Bought from Rahul Traders as per invoice no.20041
40 Registers @ ₹ 60 each
80 Gel Pens @ ₹ 15 each
50 note books @ ₹ 20 each
Trade discount 10%.
15 July,2017
Bought from Global Stationers as per invoice no.1132
40 Ink Pads @ ₹ 8 each
50 Files @ ₹ 10 each
20 Color Books @ ₹ 20 each
Trade Discount 5%
23 July,2017
Purchased from Lamba Furniture as per invoice no.3201
2 Chairs @ ₹ 600 per chair
1 Table
25 July,2017
Bought from Mumbai Traders as per invoice no.1111
10 Paper Rim @ ₹ 100 per rim
400 drawing Sheets @ ₹ 3 each
20 Packets water colour @ ₹ 40 per packet
15. A Company purchased a machine for Rs. 40,000 on April 1, 2014. On October 1, 2015 it was sold for
Rs. 13,000. The company charges depreciation @ 10% p.a. on straight line method. Show Machinery
Account, Provision for Depreciation Account and Machinery Disposal account if books are closed on
March 31 each year.
16. On comparing the cash book with passbook of Naman it is found that on March 31, 2014 2017, bank
balance of ₹ 40,960 showed by the cash book differs from the bank balance with regard to the
following :
a. Bank charges ₹ 100 on March 31, 2017, are not entered in the cash book.
b. On March 21, 2017, a debtor paid ₹ 2,000 into the company’s bank in settlement of his account, but
no entry was made in the cash book of the company in respect of this.
c. Cheques totaling ₹ 12,980 were issued by the company and duly recorded in the cash book before
March 31, 2017, but had not been presented at the bank for payment until after that date.
d. A bill for ₹ 6,900 discounted with the bank is entered in the cash book without recording the
discount charge of ₹ 800.
e. ₹ 3,520 is entered in the cash book as paid into bank on March 31st, 2017, but not credited by the
bank until the following day.
f. No entry has been made in the cash book to record the dishonor on March 15, 2017 of a cheque for
₹ 650 received from Bhanu.
Prepare a reconciliation statement as on March 31, 2017.
17. Prepare a double column cash book with the help of following information for December 2016:
₹
01 Started business with cash 1,20,000
03 Cash paid into bank 50,000
05 Purchased goods from Sushmita 20,000
06 Sold goods to Dinker and received a cheque 20,000
10 Paid to Sushmita cash 20,000
14 Cheque received on December 06, 2016 deposited into bank
18 Sold goods to Rani 12,000
20 Cartage paid in cash 500
22 Received cash from Rani 12,000
27 Commission received 5,000
30 Drew cash for personal use 2,000

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M.

2. Which Transactions are recorded in journal proper ?

3. Overdraft as per cash book means ___________.

4. _________ will not be recorded in cash book

6. Fill in the blanks with appropriate words in the following sentences.

10. Which of the following statements is/are true?

11. Give the Journal entries for the following:

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