Accounts Test 2 (Basics To Final Accounts)

CA CS Avinash Sancheti
CA Foundation Accounting (New Syllabus)

Test 2 – Basics, BRS, Bills of Exchange, Capital & Revenue, Depreciation,
Inventory & Final Accounts
Marks – 50 Time – 1 hr 30 minutes
All Questions are compulsory
Working Notes should form part of the respective answers
Question 1 [2 X 5 = 10 marks]
State whether the following statements are True or False with reasons: -
(a) Even if the trial balance agrees, some errors may remain.
(b) If the debit side of the trading account exceeds its credit side then the balance is termed
as gross profit.
(c) Discount at the time of retirement of a bill is a gain for the drawee.
(d) The debit notes issued are used to prepare Sales Return Book.
(e) Premium paid on the life policy of a proprietor is debited to profit and loss account.
Question 2 [15 marks]

Mr. Bansal submitted to you the following trial balance, which he has not been able to agree.
Rewrite the trial balance and prepare trading and profit and loss account for the year ended
31.3.2021 and a balance sheet as on that date after giving effect to the undermentioned
adjustments:
Particulars Dr. (₹) Cr. (₹)
Capital – 16,000
Opening stock 17,500 –
Closing stock – 18,790
Drawings 3,305 –
Returns inward – 550
Carriage inward 1,240 –
Deposit with X – 1,400
Returns outward 840 –
Carriage outward – 725
Rent paid 800 –
Rent outstanding 150 –
Purchases 13,000 –
Sundry debtors 5,000 –
Sundry creditors – 2,200
Furniture 1,500 –
Sales – 29,000
Wages 850 –
1
www.navinclasses.com | 08069032130
Cash 1,370 –
Advertisement 950 –
46,505 68,665
Adjustments:
1. Write off ₹600 as bad debt and make a provision for doubtful debts at 5% on balance
sundry debtors.
2. Stock valued at ₹2,000 was destroyed by fire on 25th March,2021, but insurance
company admitted a claim for ₹1,500 only and paid the sum in April,2021.
3. Depreciation to be provided on furniture at 10% per annum.
Question 3 [8 + 7 = 15 marks]
(a) From the following particulars of M/s Swapnil enterprises, prepare a Bank reconciliation
statement:
(1) Bank overdraft as per Pass Book as on 31st March, 2021 was ₹8,800
(2) Cheques deposited in Bank for ₹5,800 but only ₹2,000 were cleared till 31st March.
(3) Cheques issued were ₹2,500, ₹3,800 and ₹2,000 during the month. The cheque of
₹5,800 is still with supplier.
(4) Dividend collected by Bank ₹1,250 was wrongly entered as ₹1,520 in Cash Book.
(5) Amount transferred from fixed deposit A/c into the current A/c ₹2,000 appeared
only in Pass Book.
(6) Interest on overdraft ₹930 was debited by Bank in Pass Book and the information
was received only on 3rd April 2021.
(7) Direct deposit by M/s Rajesh Trader ₹400 not entered in Cash Book.
(8) Corporation tax ₹1,200 paid by Bank as per standing instruction appears in Pass Book
only.
(b) M/s. Seven Seas purchased a second-hand machine on 1st April, 2017 for ₹1,60,000.
Overhauling and erection charges amounted to ₹40,000.
Another machine was purchased for ₹80,000 on 1st Oct, 2017.
On 1st Oct, 2019, the machine installed on 1st April, 2017 was sold for ₹1,00,000. Another
machine for ₹30,000 was purchased and was installed on 31st December, 2019.
Under the existing practice the company provides depreciation @ 10% p.a. on original
cost. However, from 1st April,2020 it decided to adopt WDV method and to charge
depreciation @ 15% p.a. You are required to prepare Machinery account for the years
2017 to 2021. (Year ends on 31st March).
CA Avinash Sancheti (AIR - 1, 3 & 5) CA Avinash Sancheti (AIR - 1, 3 2& 5)

2
www.navinclasses.com | 08069032130 2
Question 4 [7 + 3 = 10 marks]
(a) On 1st January 2021, Swapnil draws two bills of exchange for ₹32,000 and ₹50,000.
The bill of exchange for ₹32,000 is for two months while the bill of exchange for ₹50,000
is for three months. These bills are accepted by Vishal. On 4th March, 2021, Vishal
requests Swapnil to renew the first bill with interest at 15% p.a. for a period of two
months. Swapnil agreed to this proposal. On 25th March, 2021, Vishal retires the
acceptance for ₹50,000, the interest rebate i.e. discount being ₹500. Before the due date
of the renewed bill, Vishal becomes insolvent and only 50 paisa in a rupee could be
recovered from his estate.
Show the Journal Entries (with narrations) in the books of Swapnil.
(b) You are required to pass necessary journal entries in the books of Kewal:
(i) Cheque amounting ₹9,000 from Hari Krishan in full settlement of his account for
₹10,000.
(ii) Withdrawn for personal use: Goods (Sales Price ₹8,000, Cost ₹6,000), cash ₹1,000.
(iii) Goods costing ₹3,000 (Sale price ₹4,000) distributed as free samples.
(iv) Received commission ₹10,000, half of which does not relate of current year and is
received in advance.
(v) Purchased second hand machinery from Jawahar for ₹30,000 against a cheque.
Goods of ₹12,000 (Cost ₹9,000) used in repairs of this machinery which is necessary
to make it ready for working.
3
www.navinclasses.com | 08069032130

Accounts Test 2 (Basics To Final Accounts)

Uploaded by

Copyright:

Available Formats

Accounts Test 2 (Basics To Final Accounts)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Accounts Test 2 (Basics To Final Accounts)

Uploaded by

Copyright:

Available Formats

CA CS Avinash Sancheti

CA Foundation Accounting (New Syllabus)

Question 2 [15 marks]

CA Avinash Sancheti (AIR - 1, 3 & 5) CA Avinash Sancheti (AIR - 1, 3 2& 5)

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.