CA Foundation Test Paper – Depreciation Accounting
Time Allowed: 1 Hour
Maximum Marks: 50
- On 31st October 2022, the Cash Book of Mr. Shankar showed an overdrawn position of Rs.13,530 although his Bank Statement showed only Rs. 9,600 overdrawn. An examination of the two records showed the following errors:
(i) The debit side of the Cash Book was undercast by Rs. 1,200.
(ii) A cheque for Rs. 4,800 in favour of Hari suppliers Ltd. was omitted by the bank from the statement, the cheque was debited to another customer’s Account.
(iii) A cheque for Rs. 561 drawn for payment of telephone bill was recorded in the Cash Book as Rs. 516 but was shown correctly in the Bank Statement.
(iv) A cheque for Rs. 1,275 from Mr. Satpal paid into bank was dishonoured and shown as such on the Bank Statement, although no entry relating to the dishonoured cheque was made in the Cash Book.
(v) The Bank had debited a cheque for Rs. 450 to Mr. Shankar Account by mistake, it should have been debited by them to Mr. Kar’s Account.
(vi) A dividend of Rs. 300 was collected by the bank but not entered in the Cash Book.
(vii) Cheques totalling Rs.3,900 drawn on October was not presented for payment.
(viii) Cheque for Rs.3,600 deposited on 30th October was not credited by the Bank.
(ix) Interest amounting to Rs. 900 was debited by the Bank but yet to be entered in the Cash Book.
You are required to prepare a Bank Reconciliation Statement on 31st October, 2022.
Answer:
Bank overdraft as per the Cash Book (Cr.) Rs. 13,530 - The Cash-book of M/s Rajat shows Rs. 1,10,280 as the balance at Bank as on 31st March, 2022. But this does not agree with balance as per the Bank Statement. On scrutiny following discrepancies were found:
(i) Subsidy Rs. 41,000 received from the government directly by the bank, but not advised to the company.
(ii) On 15th March, 2022 the payments side of the Cash-book was under cast by Rs. 1400.
(iii) On 20th March, 2022 the debit balance of ` 8624 as on the previous day, was brought forward as credit balance in Cash-book.
(iv) A customer of the M/s Rajat, who received a cash discount of 5% on his account of Rs. 80,000, paid to M/s Rajat a cheque on 24th March, 2022. The cashier erroneously entered the gross amount in the Cash-Book.
(v) On 10th March, 2022 a bill for Rs.22,800 was discounted from the bank, entered in Cash-book, but proceeds credited in Bank Statement amounted to Rs. 22,000 only.
(vi) A cheque issued amounting to Rs. 6,900 returned marked ‘out of date’. No entry made in Cash-book.
(vii) Insurance premium Rs. 3,024 paid directly by bank under a standing order. No entry made in cash-book.
(viii) A bill receivable for Rs.6,120 discounted for Rs. 6,000 with the bank had been dishonoured on 30th March, 2022, but advice was received on 1st April, 2022.
(ix) Bank recorded a Cash deposit of Rs. 6,550 as Rs. 6,505. Prepare Bank Reconciliation Statement on 31st March, 2022.
Answer:
Balance as per Bank Statement Rs. 1,63,639 - 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 Rs. 8,800
(2) Cheques deposited in Bank for Rs.5,800 but only Rs.2,000 were cleared till 31st March.
(3) Cheques issued were Rs.2,500, Rs.3,800 and Rs.2,000 during the month. The cheque of Rs.5,800 is still with supplier.
(4) Dividend collected by Bank Rs.1,250 was wrongly entered as Rs.1,520 in Cash Book.
(5) Amount transferred from fixed deposit A/c into the current A/c Rs. 2,000 appeared only in Pass Book
(6) Interest on overdraft Rs.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 Rs. 400 not entered in Cash Book.
(8) Corporation tax Rs.1,200 paid by Bank as per standing instruction appears in Pass Book only.
Answer:
Overdraft as per Cash Book Rs. 10,800 - On 31st March, 2021 the pass-book of a trader showed a credit balance of Rs. 15,65,000 but the passbook balance was different for the following reasons from the cash book balance:
— Cheques issued to ‘X’ for Rs. 60,000 and to ‘Y’ for Rs. 3,84,000 were not yet presented for payment.
— Bank charged Rs. 350 for bank charges and ‘Z’ directly deposited Rs.1,816 into the bank account, which were not entered in the cash book.
— Two cheques-one from ‘A’ for Rs. 5,15,000 and another from ‘B’ for Rs.12,500 were collected in the first week of April, 2021 although they were banked on 25.03.2021.
— Interest allowed by bank Rs. 4,500.
Prepare a bank reconciliation statement as on 31st March, 2021.
Answer:
Debit balance as per the cash book Rs. 16,42,534 - From the following information (as on 31.3.2020), prepare a bank reconciliation statement after making necessary adjustments in the cash book:
Particulars Rs. Bank balances as per the cash book (Dr.) 32,50,000 Cheques deposited, but not yet credited 44,75,000 Cheques issued but not yet presented for payment 35,62,000 Bank charges debited by bank but not recorded in the cash-book 12,500 Dividend directly collected by the bank 1,25,000 Insurance premium paid by bank as per standing instruction not intimated 15,900 Cash sales wrongly recorded in the Bank column of the cash-book 2,55,000 Customer’s cheque dishonoured by bank not recorded in the cash-book 1,30,000 Wrong credit given by the bank 1,50,000 Also show the bank balance that will appear in the trial balance as on 31.3.2020.
Answer:
The bank balance of Rs.29,61,600 will appear in the trial balance as on 31st March, 2020.