Arts (English Medium) कक्षा ११ - CBSE Question Bank Solutions for Accountancy

Raghav and Co. have two bank accounts. Account No. I and Account No. II. From the following particulars relating to Account No. I, find out the balance on that account of March 31, 2017 according to the cash book of the firm.

1. Cheques paid into bank prior to March 31, 2017, but not credited for ₹ 10,000.
2. Transfer of funds from account No. II to account no. I recorded by the bank on
3. March 31, 2017 but entered in the cash book after that date for ₹ 8,000.
4. Cheques issued prior to March 31, 2017 but not presented until after that date for ₹ 7,429.
5. Bank charges debited by bank not entered in the cash book for ₹ 200.
6. Interest debited by the bank not entered in the cash book ₹ 580.
7. Overdraft as per Passbook ₹ 18,990.

Prepare a bank reconciliation statement from the following particulars and show the balance as per cash book.
(i) Balance as per passbook on March 31, 2017 overdrawn ₹ 20,000.
(ii) Interest on bank overdraft not entered in the cash book ₹ 2,000.
(iii) ₹ 200 insurance premium paid by bank has not been entered in the cash book.
(iv) Cheques drawn in the last week of March, 2017, but not cleared till date for ₹ 3,000 and ₹ 3,500.
(v) Cheques deposited into bank on February, 2017, but yet to be credited on dated March 31, 2017 ₹ 6,000.
(vi) Wrongly debited by bank ₹ 500.

The passbook of Mr. Randhir showed an overdraft of ₹ 40,950 on March 31, 2017.
Prepare bank reconciliation statement on March 31, 2017.
(i) Out of cheques amounting to ₹ 8,000 drawn by Mr. Randhir on March 27, a cheque for ₹ 3,000 was encashed on April 2017.
(ii) Credited by bank with ₹ 3,800 for interest collected by them, but the amount is not entered in the cash book.
(iii) ₹ 10,900 paid in by Mr. Randhir in cash and by cheques on March, 31 cheques amounting to ₹ 3,800 were collected on April, 07.
(iv) A Cheque of ₹ 780 credited in the passbook on March 28 being dishonoured is debited again in the passbook on April 01, 2017. There was no entry in the cash book about the dishonour of the cheque until April 15.

What is a balance sheet?

Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:

1. Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.
2. Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.
3. Registration fees paid at the time of purchase of a building.
4. Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.
5. Depreciation charged on a plant.
6. The expenditure incurred in erecting a platform on which a machine will be fixed.
7. Advertising expenditure, the benefits of which will last for four years. 

Discuss the need of preparing a balance sheet

What is meant by Grouping and Marshalling of assets and liabilities? Explain the ways in which a balance sheet may be marshalled.

What are the possible reasons for keeping incomplete records?

List the distinctive advantages of a computer system over a manual system.

From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.

1. Balance as per cash book ₹ 3,200
2. Cheque issued but not presented for payment ₹ 1,800
3. Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
4. Bank charges debited by bank ₹ 150

From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.

1. Balance as per cash book ₹ 3,200.
2. Cheque issued but not presented for payment ₹ 1,800.
3. Cheque deposited but not collected upto March 31, 2014 ₹ 2,000.
4. Bank charges debited by bank ₹ 150.

From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.

1. Balance as per cash book ₹ 3,200.
2. Cheque issued but not presented for payment ₹ 1,800 Cheque deposited but not collected up to March 31, 2014 ₹ 2,000.
3. Bank charges debited by bank ₹ 150.

From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.

1. Balance as per cash book ₹ 3,200
2. Cheque issued but not presented for payment ₹ 1,800
3. Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
4. Bank charges debited by bank ₹ 150

From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.

1. Balance as per cash book ₹ 3,200
2. Cheque issued but not presented for payment ₹ 1,800
3. Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
4. Bank charges debited by bank ₹ 150

From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.

1.  Balance as per cash book ₹ 3,200.
2. Cheque issued but not presented for payment ₹ 1,800.
3. Cheque deposited but not collected upto March 31, 2014 ₹ 2,000.
4. Bank charges debited by bank ₹ 150.

Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2017.

What is meant by 'Financial Statements' of a company?

State the objectives of 'Analysis of Financial Statements'.

Financial Statements are prepared following the constituent accounting concepts principles procedures and also the legal environment in which the business organisation operate. These statements are the source of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.

From the above statements identify any two values that a company should observe while preparing its financial statements. Also, State under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act 2013

(1) Capital Reserve
(2) Calls-in-Advance
(3) Loose Tools
(4) Bank overdraft

Short Answer Question

State the meaning of financial statements?