Advantages of BRS

Q. From the Balance Sheet given below, calculate:
(i) Fixed Assets
(ii) Current Assets
(iii) Current Liabilities
(iv) Working Capital

Balance Sheet as at 31st March, 2018
Liabilities	₹	Assets	₹
Trade Creditors	42, 000	Stock in Hand	48, 000
Expenses Accrued	3, 200	Debtors	36, 000
Bank Overdraft	4, 800	Prepaid Expenses	400
Long-Term Loan	20, 000	Goodwill	20, 000
Interest on Loan	1, 000	Land	20, 000
Capital	93, 400	Plant	32, 000
		Furniture	8, 000
	1, 64, 400		1, 64, 400

Q. From the following information, prepare Balance Sheet of a trader as at 31st March, 2018 arranging the assets and liabilities–(i) in order of permanence and (ii) in order of liquidity:

	₹		₹
Goodwill	20, 000	Bank	20, 000
Capital	1, 80, 000	Sundry Creditors	63, 000
Liabilities for Expenses	1, 200	Bills Receivable	13, 000
Cash in Hand	1, 000	Plant and Machinery	40, 000
Investment	20, 000	Provision for Doubtful Debts	2, 500
Bills Payable	10, 700	Closing Stock	80, 000
Net Profit	92, 600	Furniture	16, 000
Sundry Debtors	50, 000	Drawing	30, 000
Land and Building	60, 000

Q.

The cheque which is deposited into bank but not cleared at the end of a particular year is called?

1. Uncredited Cheques

2. Omitted Cheques

3. Unpresented Cheques

4. Dishonored Cheques

Q.

What is the difference between a petty cash book and a cash book?

Q.

What are the three methods of bank reconciliation?

Q.

Cheque sent for collection but not yet collected is:

1. Recorded in cash book

2. Recorded in pass book

3. Recorded as debit note

4. Not recorded

Q.

What are the 4 steps in bank reconciliation?

Q.

What is meant by Debit Vouchers?

Q.

A debit balance in bank column of cash book is always equal to the credit balance in the account of Mr. X in the books of bank.

1. True

2. None

3. Partly True

4. False

Q.

Who prepares the bank reconciliation statement?

Q.

Which of the following would not affect bank reconciliation?

1. Dishonoured Cheques

2. Discount Received

3. Bank Interest

4. Cheques not presented

Q.

Written Down Value method is also known as

Q.

An inexperienced Accountant has prepared the following Trial Balance as you are expert in Accountancy find out errors and redraft the Trial Balance.

Trial Balance as on 30th March, 2002
Particulars	L.F.	Debit balance Amount Rs	Credit balance Amount Rs
Opening Stock		10, 000
Purchases		40, 000
Sales			50, 000
Machinery			50, 000
Goodwill		50, 000
Wages			200
Commission Received		500
Sundry Debtors		40, 000
Sundry Creditors			20, 500
Bills Payable		50, 000
Postage & Telegrams		500
Interest received		200
Capital			70, 000
Commission allowed			500
		1, 91, 200	1, 91, 200

Q.

Benefits of preparing Bank Reconciliation Statement includes __.

1. It brings out any errors committed in preparation of cash book/bank pass book.

2. Helps know the actual bank balance

3. Highlights under delay in clearance of cheques deposited but not credited

4. All of the above

Q.

Raja started a business on 1st April 2015 with a capital of Rs. 1, 00, 000 and a loan of Rs. 50, 000 borrowed from Ram. During 2015-16, he had introduced additional capital of Rs. 50, 000 and had withdrawn Rs. 30, 000 for personal use. On 31st March 2016, his assets were Rs. 3, 00, 000. Find out his capital as of 31st March 2016 and profit made or loss incurred during the year 2015-16.

Q.

Which one of these is not a cause of difference in balance as per pass book and as per cash book?

1. Errors in cash book

2. Errors in pass book of bank

3. Cheques issued but not presented for payment

4. Cheques issued & cleared

Q.

What are the three components of the balance of payments?

Q.

What is a suspense account, when is it prepared?

Q.

The cash book shows a bank balance of Rs. 8, 000. On comparing the cash book with passbook the following discrepancies were noted:
(a) Cheque deposited in bank but not credited Rs. 3, 000
(b) Cheque issued but not yet present for payment Rs. 1, 500
(c) Insurance premium paid by the bank Rs. 1, 500
(d) Bank interest credit by the bank Rs. 400
(e) Bank charges Rs. 100
(f) Directly deposited by a customer Rs. 4, 000

Find the balance as per pass book.

1. Rs. 9, 700

2. Rs. 10, 300

3. Rs.9, 300

4. Rs.10, 700

Q.

When the balance as per cash book is the starting point, direct deposits by customers are:

1. Added

2. Not required to be adjusted

3. None of the above

4. Subtracted

Q.

Under Bank reconciliation statement, while adjusting the cash book:

1. Delays in recording in the passbook due to difference in timing are taken into consideration

2. All the errors and omission in the cash book are taken into consideration

3. All of the above

4. All the errors and omissions in the passbook are taken into consideration

Q.

Which of the following is a benefit of preparing BRS?

1. Know the debtors from whom the balance is pending from a long time

2. Know the profit/loss of the organization

3. It brings out any errors committed in preparation of Cash book/Bank Pass Book

4. Procedure to provide cash adjustments

Q.

When a business compares the balance of its cash book with the balance shown by the bank passbook, there is often a difference, which is caused by the time gap in recording the transactions relating either to payments or receipts. It is known as ___.

1. Permanent Difference

2. Timing Difference

3. Omission

4. Error

Q.

From the following Cash Book (with cash and Bank columns) prepare necessary Ledger Accounts and balance them.

Cash Book (with Cash & Bank Columns)
Dr.						Cr.
Date	Particulars	L.F.	Cash Rs	Bank Rs	Date		Particulars	L.F	Cash Rs	Bank Rs
2011 Apr.					2011 Apr.
1	To Balance b/d		400	1, 000	1		By Purchases A/c		700
2	To Ram ‘s A/c		980		3		By Rent A/c			200
3	To Sales A/c			4, 000	10		By Sita’ s A/c		300
7	To Interest A/c		120		8		By Salaries A/c			450
10	To Sales A/c		500		10		By Purchases A/c			1, 350
25	To Bank A/c		2, 000		30		By Cash A/c			2, 000
					30		By Balance c/d		3, 000	1, 000
			4, 000	5, 000					4, 000	5, 000
May 1	To Balance b/d		3, 000	1, 000

Q.

50-60 transacions with their journal entry, ledger posting, trial balance and final accounts for preparing a project

Q.

Following are the entries recorded in the Cash Book (Book Column) of Deepali Traders for the month ended 31st March, 2011.

Cash Book (Bank Column Only)
Dr.			Cr.
Date	Receipts	Rs	Date	Payments	Rs
2011 Mar. 15 21 22 31	To Cash A/c To Razak’s A/c To Kavita’s A/c To Balance c/d	36, 000 24, 000 10, 000 7, 640	2011 Mar.1 4 6 15 20	By Balance b/d By Jonny’s A/c By Roma’s A/c By Ashish ‘s A/c By Patil’s A/c	40, 000 2, 000 400 240 35, 000
		77, 640			77, 640

On 31^st March 2011, Deepali Trader’s received the Bank Statement, on comparing it with the Cash Book following information was available.
(i) Cheque of Rs 10, 000 deposited into the Bank not Credited by Bank.
(ii) Bank charges debited by Bank not entered in the Cash Book Rs 340.
(iii) Interest on Ovendraft debited Rs 1, 000 by Bank but not recorded in the Cash Book
(iv) Bank transferred and credited Rs 200 in the Pass Book, not recorded in the Cash Book
(v) Cheques issued but not presented to the Bank Rs 37, 400
(vi) Interest on Securities Rs 1, 080 and Dividend on shares Rs 1, 000 collected and Credited by Bank, not entered in the Cash Book.

Q. Why is Bank Reconciliation Statement prepared?

Q.

What are bank reconciliation items?

Q. Rs.1000 received in cash from X whose account was written off as a bad debt should be credited to:

1. Bad Debts Recovered account
2. Bad debts account
3. X's account
4. Cash account

Q.

From the following ledger balances Prepare Trial Balance of Mr. Vinod as on 31^st March, 2012.

Particulars	Rs	Particulars	Rs	Particulars	Rs
Capital	1, 40, 000	Land & Building	20, 000	Insurance	5, 000
Wages	8, 500	Carriage outward	500	Bad Debts	2, 000
Salary	4, 000	Drawings	7, 000	Plant & Machinery	25, 000
Commission (Dr.)	1, 500	Commission (Cr.)	850	Mobile Charges	2, 800
Purchases	30, 000	Sales	84, 500	Opening Stock	15, 500
Sales Return	2, 500	Purchase Return	2, 150	Interest (Cr.)	3, 000
Printing and		R.D.D.	2, 500	Rent, Rates & Taxes	1, 000
Stationery	1, 950	Advertisement	3, 500	Debtors	46, 000
Furniture	60, 000	Cash in Bank	4, 250	Creditors	28, 000
Investment	18, 000	Bank loan	25, 000	Postage & Telegram	2, 000