Arts (English Medium) Class 11 - 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.

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.

What are the methods of preparing trial balance?

What is ‘Depreciation’?

What is retirement of a bill of exchange?

Briefly explain the purpose and benefits of retiring a bill of exchange to the debtor and the creditor

Name any two types of commonly used negotiable instruments

State any four essential features of bill of exchange

A bill of exchange must contain “an unconditional promise to pay” Do you agree with a statement?

Give the meaning of rebate

Vishal sold goods for ₹ 7,000 to Manju on Jan 05, 2016 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal’s draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank @12% p.a. On the due date Manju met her acceptance.
Journalise the above transactions in the books of Vishal and Manju.

Nikhil sold goods for ₹ 23,000 to Akhil on Dec. 01, 2017. He drew upon Akhil a bill of exchange for the same amount payable after 2 months. Akhil accepted the bill and sent it back to Nikhil. Nikhil discounted the bill immediately with his bank @12 p.a. On the due date Akhil dishonoured the bill of exchange and the bank paid ₹ 100 as noting charges. Akhil requested Nikhil to draw a new bill upon him with interest @10% p.a. which he agreed. The new bill was payable after two months. A week before the maturity of the second bill Akhil requested Nikhil to cancel the second bill. He further requested to accept ₹ 10,000 in cash immediately and drew a third bill upon him including interest of ₹ 500. Nikhil agreed to Akhil’s request. The third bill was payable after one month. Akhil met the third bill on its maturity. Record the necessary journal entries in the books of Nikhil and Akhil and also prepare Akhil’s account in the books of Nikhil and Nikhil’s account in the books of Akhil.

On Jan. 01, 2017 Harsh accepted a month bill for ₹ 10,000 drawn on him by tanu for latter’s benefit. Tanu discounted the bill on same day @ 8% p.a. On the due date tanu sent a cheque to Harsh for honour the bill. Harsh duly honoured his acceptance.
Record the journal entries in the Books of Tanu and Harsh.