Category: Class 12

Students can Download Tamil Nadu 12th Accountancy Model Question Paper 4 English Medium Pdf, Tamil Nadu 12th Accountancy Model Question Papers helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

TN State Board 12th Accountancy Model Question Paper 4 English Medium

Instructions:

1. The question paper comprises of four parts.
2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
3. All questions of Part I, II. III and IV are to be attempted separately.
4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer.
5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about 50 words.
6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in about 150 words.
7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in about 250 words. Draw diagrams wherever necessary.

Time: 2.30 Hours
Max Marks: 90

PART – I

Answer all the questions. Choose the correct answer. [Answers are in bold] [20 x 1 = 20]

Question 1.
Companies cannot keep books on single entry system because of……….
(a) tax properties
(b) legal provisions
(c) both (a) and (b)
(d) None of these
Answer:
(b) legal provisions

Question 2.
Bills receivable endorsed are debited to………
(a) Bills receivable A/c
(b) Debtors A/c
(c) Creditors A/c
(d) None of these
Answer:
(c) Creditors A/c

Question 3.
The amount or property received by a non-profit organisation as stated by the will of a decreased person is commonly referred to as……….
(a) Donations
(b) Honorarium
(c) Legacy
(d) Endowment
Answer:
(c) Legacy

Question 4.
In non-profit organisation the sale of old newspapers is generally considered as a/an …….
(a) Revenue Receipts
(b) Expenditure
(c) Income
(d) capital Receipt
Answer:
(c) Income

Question 5.
Which of the following method, the capital of the partners is not altered and it remains generally fixed?
(a) Fixed capital method
(b) Fluctuating capital method
(c) Both ‘a’ and ‘b’
(d) None of these
Answer:
(a) Fixed capital method

Question 6.
All the transactions between the partner and the firm are recorded in the……..
(a) Capital A/c
(b) Drawing A/c
(c) Profit and loss A/c
(d) Revaluation A/c
Answer:
(a) Capital A/c

Question 7.
Which of the following method goodwill is calculated by multiplying the weighted average – profit?
(a) Super profit method
(b) Annuity
(c) Weighted average profit method
(d) All of these
Answer:
(c) Weighted average profit method

Question 8.
Self-generated goodwill should not be shown in the……….
(a) Journal
(b) Ledger
(c) Balance sheet
(d) Books of accounts
Answer:
(d) Books of accounts

Question 9.
When A and B sharing profits and losses in the ratio of 3:2 they admit C as a partner giving him 1/3 share of profits. This will be given by A and B………
(a) Equality
(b) In the ratio of their capitals
(c) In the ratio of their profit
(d) None of these
Answer:
(c) In the ratio of their profit

Question 10.
In order to maintain fair dealings, at the time of admission it is necessary to revalue assets and liabilities of the firm to their………
(a) Cost price
(b) True value
(c) Selling price
(d) None of these
Answer:
(b) True value

Question 11.
In both types of policies the insurance premium is paid by the……….
(a) Sale tradership
(b) Partnership firm
(c) Hindu undivided family
(d) None of these
Answer:
(b) Partnership firm

Question 12.
The policy amount received from the insurance company, is used to settle the amount due to the………..
(a) Increased partner
(b) Decreased partner
(c) Partnership at will
(d) Partnership deed
Answer:
(b) Decreased partner

Question 13.
The capital of a company is divided into small units of………..
(a) Current amount
(b) fixed amount
(c) Capital amount
(d) None of these
Answer:
(b) fixed amount

Question 14.
Equity shares do not enjoy any ………..
(a) Equity rights
(b) Preference rights
(c) Dividend of rights
(d) Ordinary shares
Answer:
(b) Preference rights

Question 15.
Comparative statements and trend percentages are examples of …………
(a) Cash flow analysis
(b) Trend analysis
(c) Horizontal analysis
(d) Vertical analysis
Answer:
(c) Horizontal analysis

Question 16.
Preparation of common size statements and computation of ratios are examples………..
(a) Ratio analysis
(b) vertical analysis
(c) Horizontal analysis
(d) None of these
Answer:
(b) vertical analysis

Question 17.
Which ratio is the proportion, of fixed income bearing funds to ………..
(a) Debt, equity ratio
(b) Capital gearing ratio
(c) Propreetory ratio
(d) Profitability ratio
Answer:
(b) Capital gearing ratio

Question 18.
Which ratio indicates the efficiency of utilisation of fixed assets ……….
(a) Inventory turnover ratio
(b) Trade receivables turnover ratio
(c) Trade payable turnover ratio
(d) Fixed assets turnover ratio
Answer:
(d) Fixed assets turnover ratio

Question 19.
All transactions related to receipt either in cash or through bank are recorded using……….
(a) Payment voucher
(b) Centra voucher
(c) Receipt voucher
(d) Sales voucher
Answer:
(c) Receipt voucher

Question 20.
All transactions related to payments either in Cash or through bank are recorded using………..
(a) Journal voucher
(b) Centra voucher
(c) Receipt voucher
(d) Payment voucher
Answer:
(d) Payment voucher

PART – II

Answer any seven questions in which question no. 30 is compulsory. [7 × 2 = 14]

Question 21.
What is a statement of affairs?
Answer:
A statement of affairs is a statement showing the balances of assets and liabilities on a particular date. The balance of assets are shown on the right side and the balance of liabilities on the left side. This statement resembles a balance sheet. The difference between the total of assets and total of liabilities is taken as capital.
Capital = Assets – Liabilities

Question 22.
How will the following appear in the final accounts of Marthandam woman Cultural Association.
Stock of sports materials on 1.4.2018 16,000
Sport materials purchased 84,000
Stock of sports materials on 31.3.19 10,000
Answer:

Question 23.
Mani is a partner, who withdrew Rs 30,000 on 1st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31st December, 2018 and show the journal entries by assuming that fluctuating capital method is followed.
Answer:
Mani:
30,000 × \(\frac{6}{100}\) x \(\frac{4}{12}\) = Rs 600
Interest on drawings of Mani = Rs 600

Question 24.
The following are the profits of a firm in the last five years: 2014: Rs 4,000; 2015: Rs 3,000; 2016: Rs 5,000; 2017: Rs 4,500 and 2018: Rs 3,500. Calculate the value of goodwill at 3 years purchase of average profits of five years.
Answer:
Goodwill = Average profit × Number of years of purchase

Goodwill = Average profit × Number of years of purchase
= 4,000 × 3 = Rs 12,000.

Question 25.
What is goodwill?
Answer:
Goodwill is the good name or reputation of the business which brings benefit to the business. It enables the business to earn more profits. It is the present value of a firm’s future excess earnings.

Question 26.
Anbu and Raju are partners sharing profits in the ratio of 3 : 2. Akshai is admitted as a partner. The new profit sharing ratio among Anbu. Raju and Akshai is 5 : 3 : 2. Find out the sacrificing ratio.
Answer:
Old ratio of Anbu and Raju = 3 : 2 that is, \(\frac{3}{5}\) : \(\frac{2}{5}\)
New Ratio of Anbu, Raju and Akshai = 5 : 3 : 2 that is, \(\frac{5}{10}\) : \(\frac{3}{10}\) : \(\frac{2}{10}\)
Share sacrificed = Old share – New share

Question 27.
Vivin, Hari and Joy are partners sharing profits and losses in the ratio of 3 : 2 : 1. On 31.3.2017, Hari retired. On the date of retirement, the books of the firm showed a general reserve of Rs 60,000. Pass the journal entry to transfer the general reserve.
Answer:
Journal Entry

Question 28.
List the tools of financial statement analysis.
Answer:

1. Comparative Statement
2. Common size statement
3. Trend analysis
4. Funds flow analysis
5. Cash flow analysis

Question 29.
Calculate quick ratio of Ananth Constructions Ltd from the information given below.

Answer:

Quick assets = Current assets – Inventories – Prepaid expenses
= 2,50,000 – 50,000 – 15,000
= Rs 1,85,000

Question 30.
What are the pre-defined ledgers available in Tally.ERP-9.
Answer:
Tally has two-predefined ledgers cash and profit and loss A/c. The user has to create various other ledgers based on their requirements. Pre-defined group/ledger cannot be deleted.

PART-III

Answer any seven questions in which question No. 40 is compulsory. [7 × 3 = 21]

Question 31.
On 1st April 2017, Ganesh started his business with a capital of Rs 75,000. He did not maintain proper book of accounts. Following particulars are available from his books as on 31.03.2018.

During the year he withdrew Rs 15,000 for his personal use. He introduced further capital of Rs 20,000 during the year. Calculate his profit or loss.
Answer:
Statement of affairs of Ganesh as on 31st March, 2018

For finding out the closing capital, Statement of affairs as on 31st March, 2018 is prepared. Statement of profit or loss for the year ending 31st March, 2018

Question 32.
Compute income from subscription for the year 2018 from the following particulars relating to a club.

Answer:
Subscription received during the year 2018: Rs 45,000.
Income and Expenditure Account for the year ended 31.03.2019

Question 33.
State the difference between fixed capital method and fluctuating capital method.
Answer:

Question 34.
From the following information, calculate the value of goodwill based on 3 years purchase of super profit
(i) Capital employed: Rs 2,00,000
(ii) Normal rate of return: 15%
(iii) Average profit of the business: Rs 42,000
Answer:
Normal profit = Capital employed × Normal rate of return
= 2,00,000 × 15% = Rs 30,000
Super profit = Average profit – Normal profit
= 42,000 – 30,000 = Rs 12,000
Goodwill = Super profit × Number of years of purchase
= 12,000 × 3 = Rs 36,000

Question 35.
Govind and Gopal are partners in a firm sharing profits in the ratio of 5 : 4. They admit Rahim as a partner. Govind surrenders 2/9 of his share in favour of Rahim. Gopal surrenders 1/9 of his share in favour of Rahim. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:

Question 36.
Balu, Chandru and Nirmal are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March 2018, Nirmal retires from the firm. On the date of Nirmal’s retirement, goodwill appeared in the books of the firm at Rs 60,000. By assuming fluctuating capital account, pass the necessary journal entry if the partners decide to
(а) write off the entire amount of existing goodwill
(b) write off half of the existing goodwill.
Answer:

Question 37.
State the different between preference shares and equity shares?
Answer:

Question 38.
Briefly explain any three limitations of financial statements.
Answer:
(i) Lack of qualitative information : Qualitative information, that is non-monetary information is also important for business decisions. For e.g. Efficiency of the employees and efficiency of the management. But this is ignored in financial statements.

(ii) Record of historical data : Financial statement are prepared based on historical data. They may not reflect the current position.

(iii) Ignores price level changes : Adjustments for price level changes are not made in the financial statements. Hence financial statements may not reveal the current position.

Question 39.
State any three advantages of ratio analysis.
Answer:
(i) Measuring operational efficiency : Ratio analysis helps to know operational efficiency of a business by finding the relationship between operating cost and revenues and also by comparison of present ratios with those of the past ratios.

(ii) Intra firm comparison : Comparison of efficiency of different divisions of an organisation is possible by comparing the relevant ratios.

(iii) Inter firm comparison : Ratio analysis helps the firm to compare its performance with other firms.

Question 40.
Explain any five applications of computerised accounting system (CAS).
Answer:
The applications of CAS are as follows

1. Maintaining accounting records
2. Inventory management
3. Pay-roll preparation
4. Report generation
5. Data Import/Export
6. Taxation

PART – IV

Answer all the following questions. [7 × 5 = 35]

Question 41(a).
From the following details you are required to calculate credit sales and credit purchases by preparing total debtors account, total creditors account, bills receivable account and bills payable account.

Answer:

[OR]

(b) From the following Receipts and Payments account of Yercaud Youth Association, prepare Income and expenditure account for the year ended 31st March, 2019 and the balance sheet as on that date.

Additional information:
(i) Opening capital fund Rs 20,000.
(ii) Stock of books on 1.4,2018 Rs 9,200.
(iii) Subscription due but not received Rs 1,700.
(iv) Stock of stationery on 1.4.2018 Rs 1,200 and stock of stationery on 31.3.2019, Rs 2,000
Answer:
Income and Expenditure Account for the year ended 31.03.19

Question 42(a).
Following is the Receipts and Payments Account of Salem Recreation Club for the year ended 31st March, 2019.
In the books of Salem Recreation Club

Additional information:
(i) There are 450 members each paying annual subscription of Rs 30.
(ii) Stock of stationery on 31st March, 2018 Rs 300 and on March 31, 2019 Rs 500.
(iii) Capital fund as on 1st April 2018 was Rs 9,300.
Prepare income and expenditure account for the year ended 31st March, 2019 and the balance sheet as on that date.
Answer:

[OR]

(b) From the following‘details you are required to calculate credit sales and credit purchases by preparing total debtors account, total creditors account, bills receivable account and bills payable account.

Answer:

Question 43(a).
Arulappan and Nallasamy are partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st January 2018, their capitals were Rs 20,000 and Rs 10,000, respectively. The partnership deed specifies the following:
(a) Interest on capital is to be allowed at 5% per annum.
(b) Interest on drawings charged to Arulappan and Nallasamy are Rs 200 and Rs 300, respectively.
(c) The net profit of the firm before considering interest on capital and interest on drawings amounted to Rs 18,000.
Give necessary journal entries and prepare Profit and loss appropriation account for the year en’ding 31st December 2018. Assume that the capitals are fluctuating.
Answer:
Journal entries

[OR]

(b) Calculate the value of goodwill at 5 years purchase of super profit from the following information:
(i) Capital employed: Rs 1,20,000
(ii) Normal rate of profit: 20%
(iii) Net profit for 5 years:
2014: Rs 30,000; 2015: Rs 32,000; 2016: Rs 35,000; 2017: Rs 37,000 and 2018: Rs 40,000
(d) Fair remuneration to the partners Rs 2,800 per annum.
Answer:

Normal profit = Capital employed × Normal rate of return
= 1,20,000 × 20%
= Rs 24,000
Super profit = Average profit – Normal profit
= 32,000 – 24,000
= 8,000
Goodwill = Super profit × Number of years of purchase
= 8,000 × 5
= Rs 40,000

Question 44(a).
Distribution of Profits: Anitha, Ramita were partners sharing profit and losses in the ratio of 7 : 3. Their capitals were Rs. 80,000 and Rs. 60,000, respectively.
(i) Interest on capital @10% p.a
(ii) Interest on drawings @12% p.a
(iii) Both to get a salary of Rs. 10,000 each per annum
(iv) Anitha to get a commission of 10% on the net profit before charging such commission. The profit for the year Rs. 60,000. Drawings were Anitha Rs. 12,000 and Ramita Rs 8,000. Show profit and loss appropriation account and the capital A/c.
Answer:

[OR]

(b) From the following information relating to Sridevi enterprises, calculate the value of goodwill on the basis of 4 years purchase of the average profits of 3 years.
(a) Profits for the years ending 31st December 2016, 2017 and 2018 were Rs 1,75,000, Rs 1,50,000 and Rs 2,00,000, respectively.
(b) A non-recurring income of Rs 45,000 is included in the profits of the year 2016.
(c) The closing stock of the year 2017 was overvalued by Rs 30,000.
Calculation of adjusted profit.
Answer:

Average profit = \(\frac{Total profit}{Number of years}\)
Total profit 1,60,000 + 1,20,000 + 23,000
= 4,80,000
Average profit = \(\frac{4,80,000}{3}\) = Rs 1,60,000
Goodwill = Average profit × No. of year purchase
= Rs 1,60,000 × 4 = Rs 64,00,000

Question 45(a).
Vetri and Ranjit are partners sharing profit in the ratio 3 : 2. Their balance sheet as on 31st December 2017 is under.

On 1.1.2018 they admit suriya into their firm as a partner on the following arrangements.
(i) Suriya brings Rs 10,000 as capital for 1/4 share of profit
(ii) Stock to be depreciated by 10%
(iii) Debtors to be revalued at Rs 7,500
(iv) Furniture to be revalued at Rs 40,000.
(v) There is an outstanding wages Rs 4,500 not yet recorded. Prepare revaluation account, partners’ capital account and the balance sheet of the firm after admission.
Answer:

[OR]

(b) Sundar and Suresh are partners sharing profits in the ratio of 3 : 2. Their balance sheet as on 1st January, 2017 was as follows:

They decided to admit Sugumar into partnership for 1/4 share in the profits on the following terms:
(a) Sugumar has to bring in Rs 30,000 as capital. His share of goodwill is valued at Rs 5,000. He could not bring cash towards goodwill.
(b) That the stock be valued at Rs 20, 000.
(c) That the furniture be depreciated by Rs 2,000.
(d) That the value of building be depreciated by 20%.
Prepare necessary ledger accounts and the balance sheet after admission.
Answer:

Question 46(a).
Charles, Muthu and Sekar are partners, sharing profits in the ratio of 3 : 4 : 2. Their balance sheet as on 31st December 2018 is as under:

On 1,1.2019, Charles retired from the partnership firm on the following arrangements:
(i) Stock to be appreciated by 10%
(ii) Furniture to be depreciated by 5%
(iii) To provide Rs 1,000 for bad debts
(iv) There is an outstanding repair of Rs 11,000 not yet recorded
(v) The final amount due to Charles was paid
Prepare revaluation account, partners capital account and the balance sheet of the firm after retirement.
Answer:

[OR]

(b) Varsha, Shanthi and Madhuri are partners, sharing profits in the ratio of 5 : 4 : 3. Their balance sheet as on 31st December 2017 is as under:
Balance Sheet as on 31st December 2017

On 1.1.2018, Madhuri died and on her death the following arrangements are made:
(i) Stock to be depreciated by Rs 5,000
(if) Premises is to be appreciated by 20%
(iii) To provide Rs 4,000 for bad debts
(iv) The final amount due to Madhuri was not paid
Prepare revaluation account, partners capital account and the balance sheet of the firm after death.
Answer:

Question 47 (a).
Lalitha Ltd. offered Rs 30,000 equity shares of ? 10 each to the public payable Rs 2 per share on application, Rs 3 on share allotment and the balance when required. Applications for 50,000 shares were received on which the directors allotted as:
Applicants for 10,000 shares – Full
Applicants for 35,000 shares – 20,000 shares (excess money will be utilised for allotment)
Applicants for 5,000 shares – Nil
All the money due was received. Pass journal entries upto the receipt of allotment.
Answer:
Journal Entries

Working notes

[OR]

(b) Prepare common-size income statement for the following particulars of Sam Ltd.

Answer:
Common Size Income statement of Sam Ltd.

Students can Download Tamil Nadu 12th Accountancy Model Question Paper 3 English Medium Pdf, Tamil Nadu 12th Accountancy Model Question Papers helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

TN State Board 12th Accountancy Model Question Paper 3 English Medium

Instructions:

1. The question paper comprises of four parts.
2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
3. All questions of Part I, II. III and IV are to be attempted separately.
4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer.
5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about 50 words.
6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in about 150 words.
7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in about 250 words. Draw diagrams wherever necessary.

Time: 2.30 Hours
Max Marks: 90

PART – I

Answer all the questions. Choose the correct answer.[Answers are in bold] [20 x 1 = 20]

Question 1.
The total assets of the proprietor are ? 5,00,000. His liabilities ? 3,50,000. Then his capital in the business is
(a) Rs 8,50,000
(b) Rs 1,50,000
(c) Rs 3,50,000
(d) Rs 4,25;000
Answer:
(b) Rs 1,50,000

Question 2.
A firm has assets worth Rs 60,000 and capital 45,000; then its liabilities is
(a) Rs 45,000
(b) Rs 1,05,000
(c) Rs 60,000
(d) Rs 15,000
Answer:
(d) Rs 15,000

Question 3.
Income and expenditure accounts show
(a) Cash available to an organization
(b) Closing capital of an organization
(c) Cash available in the bank account
(d) Surplus or deficit for the current accounting period
Answer:
(d) Surplus or deficit for the current accounting period

Question 4.
On what basis the receipts and payments account is prepared
(a) Cash basis
(b) Credit basis
(c) Both
(d) None of these
Answer:
(a) Cash basis

Question 5.
The balance in the appropriation account is transferred to the partner’s capital account in the
(a) Agree ratio
(b) Sacrifice ratio
(c) Profit sharing ratio
(d) Old ratio
Answer:
(c) Profit sharing ratio

Question 6.
Amount invested by partners in the partnership business is called
(a) Owner’s capital
(b) Partners capital
(c) Profit and loss appropriation
(d) None of these
Answer:
(b) Partners capital

Question 7.
The profit earning capacity of the firm determines the value of its
(a) Balance Sheet
(b) good will
(c) Profit and Loss Account
(d) All of these
Answer:
(b) good will

Question 8.
Goodwill acquired by making payment in cash or kind is called
(a) Purchased goodwill
(b) Self-generated goodwill
(c) Average goodwill
(d) (a) and (b)
Answer:
(a) Purchased goodwill

Question 9.
A new partner may be admitted to a partnership
(a) with the consent of all the partners
(b) with the consent of any one partner
(c) with the consent of two-third of the old partners
(d) with the consent of three-fourth of the old partners
Answer:
(a) with the consent of all the partners

Question 10.
An incoming partner is liable for all the acts of the firms dare
(a) Before his admission
(b) After his admission
(c) From six months prior to his admission
(d) None of these
Answer:
(b) After his admission

Question 11.
The profit or loss arising therefrom is transferred to the capital accounts of all the partners in the
(a) New profit sharing ratio
(b) Old profit sharing ratio
(c) Gaining ratio
(d) Sacrificing ratio
Answer:
(b) Old profit sharing ratio

Question 12.
The settlement is to be done in the manner prescribed in the
(a) Partnership-at-will
(b) Partnership deed
(c) Both (a) and (b)
(d) None of these
Answer:
(b) Partnership deed

Question 13.
Company is a voluntary association of persons which has separate
(a) legal entity
(b) voluntary association
(c) common seal
(d) limited liability
Answer:
(a) legal entity

Question 14.
The liability of the shareholders of the company is limited to the extent of face value of the shares held by the
(a) share holders
(b) card holders
(c) debenture holders
(d) None of these
Answer:
(a) share holders

Question 15.
The term fund refers to
(a) working capital
(b) opening capital
(c) closing capital
(d) None of these
Answer:
(a) working capital

Question 16.
When figure relating to several years are considered for the purpose of analysis, the analysis is called
(a) Horizontal analysis
(b) vertical analysis
(c) Trend analysis
(d) Cash flow analysis
Answer:
(a) Horizontal analysis

Question 17.
Which ratios measure the firm’s ability to meet its short term obligations in time?
(a) Profitability Ratios
(b) Liquidity Ratios
(c) Activity Ratios
(d) None of these
Answer:
(b) Liquidity Ratios

Question 18.
For Calculating Quick Assets – and- are excluded from current assets
(a) Debtors and inventory
(b) Inventory and Bills payable
(c) Cash and Bank balances
(d) Inventory and Prepaid Expenses
Answer:
(d) Inventory and Prepaid Expenses

Question 19.
Ideal current Ratio is
(a) 1 : 1
(b) 1 : 2
(c) 2 : 1
(d) 3 : 1
Answer:
(c) 2 : 1

Question 20.
Which of the following options is used to view Trial Balance from Gateway of Tally?
(a) Gateway of Tally → Reports → Trial Balance
(b) Gateway of Tally → Trial Balance
(c) Gateway of Tally → Reports → Display → Trial Balance
(d) None of these
Answer:
(c) Gateway of Tally → Reports → Display → Trial Balance

PART – II

Answer any seven questions in which question no. 30 is compulsory. [7 × 2 = 14]

Question 21.
From the following particulars ascertain profit or loss?
Capital as on 1. 4. 2018 1,60,000
Capital as on 31. 3. 2019 1,50,000
Additional capital introduced 25,000
Drawings made during the year 30,000
Answer:
Statement of profit or loss for the year ended 31.3.2019

Question 22.
From the following particulars of Tamil Educational Society.
Prepare Receipts and Payments for the year ended 31.03.2019

Answer:

Question 23.
What is partners current account?
Answer:
Under fixed capital method, Capital account and current accounts are maintained. In current account all adjustments relating to partners are recorded on the credit side of current account viz: Interest on capital, Share of profits, Salary and commission etc are recorded.
On the debit side drawings interest on drawings, share of loss are recorded. Current account sometimes show credit or debit balance.

Question 24.
The following are the profits of a firm in the last five years 2014 – Rs 4,000, 2015 – Rs 3,000, 2016 – Rs 5,000, 2017 – Rs 4,500, 2018 – Rs 3,500. Calculate the value of goodwill at 3 years purchase of average profit of five year.
Answer:
Goodwill = Average profit × No. of years of purchase

Good will = Average profit × No. of years of purchase
= Rs 4,000 × 3
Goodwill = Rs 12,000

Question 25.
Mala and Vimala were partners sharing profit and losses in the ratio of 3 : 2. On 31.3.2017. Varshini was admitted as a partner. On the date of admission. The book of the firm showed a reserve fund of Rs 50,000. Pass the journal entry to distribute the reserve fund.
Answer:
Journal Entry

Question 26.
Mary, Vleena, Mariam are partners of a firm sharing profit and losses equally. Many retired from the partnership on 1.1.2019. On that date, their balance sheet showed accumulated loss of Rs 75,000. On the assets side of Balance Sheet. Give the journal entry to distribute the accumulated loss.
Answer:
Journal Entry

Question 27.
Anitha was holding 500 equity shares of Rs 10 each of Thanjavur Motors Ltd. issued at par. She paid Rs 3 on application Rs 5 on allotment but could not pay the first and final call of Rs 2. The directors forfeited the shares for non payment of call money. Give Journal Entry for forfeiture of shares.
Answer:
Journal Entry

Question 28.
What is working capital?
Answer:
Working capital statement or schedule of changes in working is prepared to disclose net changes in working capitals on two specific dates (generally two balance sheet dates). It is prepared from current assets and current liabilities.
Working Capital = Current Assets – Current Liabilities

Question 29.
What is meant by accounting ratio?
Answer:
Ratio is a mathematical expression of relationship between two related or interdependent items. It is the numerical or quantitative relation ship between two items. It is calculated by dividing one item by the other related item. When ratios are calculated on the basis of accounting information, these are called ‘accounting ratio’.

Question 30.
What are accounting reports?
Answer:
Accounting report is a compilation of accounting information that are derived from the accounting records of a business concern. Accounting reports may be classified as routine reports and special purpose reports.

PART – III

Answer any seven questions in which question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
Following are the balances of Shanthi as on 31.12.2018

Answer:
Prepare a statement of affairs as on 31.12.2018 and calculate capital as at that date.

Question 32.
Compute income from subscription for the 2018 from the following particulars relatiiig to a club.

Answer:
Subscription received during the year 2018 Rs 1,50,000
Calculation of incomes from subscription for 2018

Question 33.
From the following information prepare capital accounts of partners Mannan and Sevagan when their capitals are fluctuating.

Answer:
Partners Capital Account

Question 34.
From the following information relating to Sridevi Enterprises, calculate the value of goodwill on the basis of 4 years purchase of the average profit of 3 years.
(a) Profits for the year ending 31st December 2016, 2017 and 2018 were Rs 1,75,000, 1,50,000 and Rs 2,00,000 respectively.
(b) A non – recuring income of Rs 45,000 is included in the profits of the year 2016.
(c) The closing stock of the year 2017 was overvalued by Rs. 30,000
Answer:
Calculation of adjusted profit

Goodwill = Average profit × Number of years of purchase
= 1,60,000 × 4
= Rs 6,40,000

Question 35.
A, B and C were partners. Sharing profits and losses in the ratio of 5 : 3 : 2. D is admitted into a partnership. The following adjustments are to be made.
(a) Increase the value of premises by Rs 60,000
(b) Depreciate stock by Rs 5,000; Furniture by Rs 2,000 and Machinery by Rs 2,500.
(c) Provide for an outstanding liabilities of Rs 500. Pass the journal entries.
Answer:
Journal Entries

Question 36.
Kavitha, Kumudha and Lalitha are partners sharing profit and losses in the ratio of 5 : 3 : 3 respectively. Kumudha retires on 31st Dec 2018. On the date of retirement, her capital account shows a credit balance of Rs 2,00,000 pass journal entries of
(i) The amount due is paid off immediately by cheque.
(it) The amount due is not paid immediately
(iii) Rs 70,000 is paid immediately by cheque
Answer:

Question 37.
Maruthu Ltd. forfeited 150 equity shares @ Rs 10 each for non-payment of final call of Rs 4/- per share of these 100 shares were reissued @ Rs 9/- per share. Pass journal entries for forfeiture and reissue.
Answer:
Journal entries

Forfeited shares:
150 shares = Rs 900
100 shares \(\frac{900}{150}\) × 100 = Rs 600
Gain or loss = Amount forfeited – loss on reissue
= Rs 600 – 100 = Rs 500

Question 38.
From the following particulars prepare comparative income statement of Mary Co. Ltd.

Answer:
Comparative income statement of Mary Co. Ltd. for the year ended 31st March 2016 and 31st March 2017

Note: Calculation of income tax
For 2015-16 = 2,00,000 × 20% = Rs 40,000;
For 2016-17 = 3,20,000 × 50% = Rs 1,60,000

Question 39.
Explain the objectives of ratio analysis?
Answer:
Following are the objectives of ratio analysis.

1. To Simplify accounting figures
2. To Facilitate analysis of financial statements
3. To analyses the operational efficiency of a business.
4. To help in budgeting and forecasting
5. To facilitate intro firm and inter firm comparison of performance.

Question 40.
Mention the commonly used voucher types in Tally ERP.9. Following are some of the major accounting vouchers used in an organisation.
Answer:

1. Receipt voucher
2. Payment voucher
3. Contra voucher
4. Purchase voucher
5. Sales voucher
6. Journal voucher

PART – IV

Answer all the following questions. [7 × 5 = 35]

Question 41 (a).
Raju does not keep proper books of accounts. Following details are taken from his records.

During the year introduced further capital of? 50,000 and withdraw ? 2,500 per month from the business for his personal use. Prepare statement of profit or loss with above information.
Answer:
Statement of affairs as on 1.1.2018

[OR]

(b) From the following particular calculate total purchases.

Answer:

Total Purchases = Cash Purchases + Credit Purchases
= Rs 3,20,000 + Rs 4,80,000
= Rs 8,00,000

Question 42(a).
From the following Receipts and Payments Account of Friends Football club for the year ending 31st March 2017. Prepare income and expenditure Account for the year ending 31.3.2017.

Additional information:
(i) The club had furniture of Rs 12,000 on 1.4.2016. Ignore depreciation on furniture
(ii) Subscription outstanding for 2016-17- Rs 600
(iii) Stock of sports material on 31.03.2017- Rs 100
(iv) Capital Fund as on 1st April 2016 was Rs 23,000
Answer:
Income and Expenditure Account for the year ended 31.03.17

[OR]

(b) From the following balance sheets of Brindha and Praveena who share profits and losses in the ratio of 3 : 4, calculate interest on capital at 6% p.a. for the year ending 31st December 2017.
Balance sheet as on 31st December 2017

On 1st July 2017, Brindha introduced an additional capital of Rs 6,000 and on 1st October 2017, Praveena introduced Rs 10,000. Drawings of Brindha and Praveena during the year were Rs 5,000 and Rs 7,000 respectively. Profit earned during the year was Rs 31,000.
Answer:

Profit credited = Profit earned Rs 31,000 – Balance profit as per balance sheet Rs 10,000 = Rs 21,000. This amount is distributed in their profit sharing ratio of 3 : 4.
Calculation of interest on capital:

Question 43(a).
Anand and Narayanan are partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1st January 2018, their capitals were Rs 50,000 and Rs 30,000 respectively. The partnership deed specifies the following:
(a) Interest on capital is to be allowed at 6% per annum.
(b) Interest on drawings charged to Anand and Narayanan are Rs 1,000 and Rs 800 respectively.
(c) The net profit of the firm before considering interest on capital and interest on drawings amounted to Rs 35,000.
Give necessary journal entries and prepare profit and loss appropriation account as on 31st December 2018. Assume that the capitals are fluctuating.
Answer:

[OR]

(b) The following particulars are available in respect of a business carried on by a partnership firm:
(i) Profits earned: 2016: Rs 30,000; 2017: Rs 29,000 and 2018: Rs 32,000.
(ii) Profit of 2016 includes a non-recurring income of Rs 3,000.
(iii) Profit of 2017 is reduced by Rs 2,000 due to stock destroyed by fire.
(iv) The stock is not insured. But, it is decided to insure the stock in future. The insurance premium is estimated at Rs 5,600 per annum.
You are required to calculate the value of goodwill on the basis of 2 years purchase of average profits of the last three years.
Answer:

Goodwill = Average profit × Number of years of purchase
= 24,400 × 2 = Rs 48,800

Question 44(a).
Sri Ram and Raj are partners sharing profits and losses in the ratio of 2 : 1. Nelson joins as a partner on 1st April 2017. The following adjustments are to be made.
(i) Increase the value of stock by Rs 5,000
(ii) Bring into record investment of Rs 7,000 which had not been recorded in the books of the firm.
(iii) Reduce the value of office equipment by Rs 10,000
(iv) A provision would also be made for outstanding wages for Rs 9,500. Give journal entries and prepare revaluation account.
Answer:
Journal Entries

[OR]

(b) Kannan, Rahim and John are partners in a firm sharing profit and losses in the ratio of 5 : 3 : 2. The balance sheet as on 31st December, 2017 was as follows:

John retires on 1st January 2018, subject to following conditions:
(i) To appreciate building by 10%
(ii) Stock to be depreciated by 5%
(iii) To provide Rs 1,000 for bad debts
(iv) An unrecorded liability of Rs 8,000 have been noticed
(v) The retiring partner shall be paid immediately
Prepare revaluation account, partners capital account and the balance sheet of the firm after retirement.
Answer:

Question 45(a).
Sudha Ltd. offered 1,00,000 shares of Rs 10 each to the public payable Rs 3 on application, Rs 4 on share allotment and the balance when required. Applications for 1,40,000 shares were received on which the directors allotted as:
Applicants for 60,000 shares – Full
Applicants for 75,000 shares – 40,000 shares (excess money will be utilised for allotment)
Applicants for 5,000 shares – Nil
All the money due was received. Pass journal entries upto the receipt of allotment.
Answer:
In the books of Sudha Ltd. Journal entries

Working note

[OR]

(b) Prepare common-size statement of financial position for the following particulars of Rani Ltd.

Answer:
Common Size Balance sheet of Rani Ltd. as on 31st March 2016 to 31st March 2017

Question 46(a).
Lalitha Ltd. offered 30,000 equity shares of Rs 10 each to the public payable Rs 2 per share on application, Rs 3 on share allotment and the balance when required. Applications for 50,000 shares were received on which the directors allotted as:
Applicants for 10,000 shares – Full
Applicants for 35,000 shares – 20,000 shares (excess money will be utilised for allotment)
Applicants for 5,000 shares – Nil
All the money due was received. Pass journal entries upto the receipt of allotment.
Answer:
Journal Entries

[OR]

(b) From the following particulars of Neithal Ltd, calculate trend percentages.

Answer:
Trend analysis for Neithal Ltd

Question 47 (a).
From the following particulars, calculate the trend percentages of Babu Ltd.

Answer:
Trend Percentage of Babu Ltd. (In Thousands)

[OR]

(b) Calculate
(i) Inventory turnover ratio
(ii) Trade receivable turnover ratio
(iii) Trade payable turnover ratio and
(iv) Fixed assets turnover ratio from the following information obtained from Delphi Ltd.

Additional information:
Revenue from operations for the year Rs 10,50,000
Purchases for the year Rs 4,50,000
Cost of revenue from operations Rs 6,00,000
Assume that sales and purchase are for credit
Answer:

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TN State Board 12th Accountancy Model Question Paper 5 English Medium

Instructions:

1. The question paper comprises of four parts.
2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
3. All questions of Part I, II. III and IV are to be attempted separately.
4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer.
5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about 50 words.
6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in about 150 words.
7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in about 250 words. Draw diagrams wherever necessary.

Time: 2.30 Hours
Max Marks: 90

PART – I

Answer all the questions. Choose the correct answer. [20 × 1 = 20]

Question 1.
A firms total sales Rs 80,000 and its credit sales Rs 60,000. Then its cash sales is…………
(a) Rs 1,40,000
(b) Rs 70,000
(c) Rs 20,000
(d) Rs 80,000
Answer:
(c) Rs 20,000

Question 2.
A firm has assets worth 47,500, and liabilities 17,700, Then its capital is…………
(a) Rs 29,800
(b) Rs 65,200
(c) Rs 35,400
(d) Rs 17,700
Answer:
(a) Rs 29,800

Question 3.
Some organisations are established for the purpose of rendering services to the public without…………
(a) any profit motive
(b) any service motive
(c) both
(d) None of these
Answer:
(a) any profit motive

Question 4.
Charitable institutions and educational institutions are example of………….
(a) Profit organisation
(b) Not-for-profit organisation
(c) both
(d) None of these
Answer:
(b) Not-for-profit organisation

Question 5.
The rate of interest on capital is generally agreed by the partner and is mentioned in the…………
(a) Capital A/c
(b) Profit and Loss A/c
(c) Partnership deed
(d) None of these
Answer:
(c) Partnership deed

Question 6.
Interest on capital is to be calculated on the capitals at the begining for the…………..
(a) Particular period
(b) Relevant period
(c) average period
(d) all of these
Answer:
(b) Relevant period

Question 7.
The total capitalised value of the business is calculated by capitalising the average profits on the basis of………….
(a) average profit
(b) normal rate of return
(c) actual capital employed
(d) none of these
Answer:
(b) normal rate of return

Question 8.
Goodwill is to be valued when …………
(a) analgamation takes place
(b) a partner is admitted
(c) one company takes over another company
(d) all of the above
Answer:
(d) all of the above

Question 9.
On admission of a partner if goodwill account is to be raised this should be debited to………….
(a) Partner’s capital A/c
(b) Goodwill A/c
(c) Revaluation A/c
(d) None of these
Answer:
(b) Goodwill A/c

Question 10.
The old partners share all the accumulated profits and reserves in their……………
(a) new profit sharing ratio
(b) old profit sharing ratio
(c) capital ratio
(d) sacrificing ratio
Answer:
(b) old profit sharing ratio

Question 11.
At the time of retirement of partners, the existing partners stand to…………..
(a) Gain
(b) Loss
(c) Income
(d) None of these
Answer:
(a) Gain

Question 12.
At the time of retirement of a partners, calculation of new profit ratio is……………
(a) Compulsory
(b) Optional
(c) Necessary
(d) Not necessary
Answer:
(c) Necessary

Question 13.
Equity’ shares are known as …………
(a) authorised capital
(b) issued capital
(c) subscribed capital
(d) ordinary capital
Answer:
(d) ordinary capital

Question 14.
Authorised capital is also known as…………
(a) paid up capital
(b) called up capital
(c) nominal capital
(d) subscribed capital
Answer:
(c) nominal capital

Question 15.
Common size statement can be prepared with……….
(a) Double columns
(b) single columns
(c) three columns
(d) five columns
Answer:
(c) three columns

Question 16.
Which of the following are techniques tools or methods of analysis and interpretation of financial statements………..
(a) Ratio analysis
(b) Average analysis
(c) Trend analysis
(d) All of the above
Answer:
(d) All of the above

Question 17.
Interpretation of accounts is the………….
(a) art and science of translating the figures
(b) to know financial strengths and weakness of a business
(c) to know the causes for the prevailing performance of business
(d) All the above
Answer:
(d) All the above

Question 18.
The term ‘Financial Statement’ covers………….
(a) Profit and Loss Account
(b) Balance sheet and profit and loss statement appropriation account
(c) profit and loss statement and balance sheet
(d) none of these
Answer:
(c) profit and loss statement and balance sheet

Question 19.
A technique that is used in comparative analysis of financial statement is…………..
(a) graphical analysis
(b) preference analysis
(c) common size analysis
(d) returning analysis
Answer:
(c) common size analysis

Question 20.
In payment voucher cash or batik account is credited and other ledger account is…………..
(a) debited
(b) Credited
(c) both ‘a’ and ‘b’
(d) none of these
Answer:
(a) debited

PART – II

Answer any seven questions in which question no. 30 is compulsory. [7 × 2 = 14]

Question 21.
What is a statement of Affairs?
Answer:
A statement of affairs is a statement showing the balances of assets and liabilities on a particular date. The balance of assets are shown on the right side and the balance of liabilities on the left side. This statement resembles a balance sheet. The difference between the total of assets and total of liabilities is taken as capital.
Capital = Assets – Liabilities

Question 22.
From the following details calculate the amount that will be shown as subscription in Income and Expenditure Account for the year ending 31st March, 2017.

Subscription outstanding for the year 2016-17 is Rs 2,400. Subscription for 2016-17 received in 2015-16 was Rs 1,000.
Answer:

Tutorial note:
(i) Subscription for the year 2015-16 Rs 7,500 and for the year 2017-18 Rs 1,500 do not relate to the current year. So they should not be recorded in Income and Expenditure Account.
(ii) Subscription outstanding for the current year 2016-17 is Rs 2.400. it should be added with the’ amount of subscription received during 2016-17.

Question 23.
Mani is a partner, who withdrew Rs 30,000 on 1st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31st December, 2018 and show the journal entries by assuming that fluctuating capital method is followed.
Answer:
Mani:
30,000 x \(\frac{6}{100}\) × \(\frac{4}{12}\) = Rs 600
Interest on drawings of Mani = Rs 600

Question 24.
What is goodwill?
Answer:
Goodwill is the good name or reputation of the business which brings benefit to the business. It enables the business to earn more profit. It is the present value of a firm’s future excess earnings.

Question 25.
Arul and Anitha are partners sharing profits and losses in the ratio of 4 : 3. On 31.3.2018, Ajay was admitted as a partner. On the date of admission, the book of the firm showed a general reserve of Rs 42,000. Pass the journal entry to distribute the general reserve.
Answer:

Question 26.
Mary, Meena and Mariam are partners of a firm sharing profits and losses equally.
Answer:
Mary retired from the partnership on 1.1.2019. On that date, their balance sheet showed accumulated loss of Rs 75,000 on the asset side of the balance sheet. Give the journal entry to distribute the accumulated loss.
Answer:
Journal entry

Question 27.
What is over-subscription?
Answer:
When the number of shares applied for is more than the number of shares offered for . subscription it is said to be over subscription.

Question 28.
What is working capital?
Answer:
Working capital statement or schedule of changes in working is prepared to disclose net changes in working capitals on two specific dates (generally two balance sheet dates). It is prepared from current assets and current liabilities.
Working Capital = Current Assets – Current Liabilities

Question 29.
Calculate quick ratio of Auantfe Constructions Ltd from the information given below.

Answer:

Quick assets = Current assets – Inventories – Prepaid expenses
= 2,50,000 – 50,000 – 15,000
= 1,85,000

Question 30.
What are accounting reports?
Answer:
Accounting report is a compilation of accounting information that are derived from the accounting records of a business concern. Accounting reports may be classified as routine reports and special purpose reports.

PART – III

Answer any seven questions in which question No. 40 is compulsory. [7 × 3 = 21]

Question 31.
Find out credit sales from the following information:

Answer:

Question 32.

Subscription of Rs 9,000 is still in arrears for the year 2012-13. Prepare Income and Expenditure Account for 2013-2014.
Answer:
Income and Expenditure Account for the year 31.03.14

Question 33.
Arul is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 12% p.a. During the year ended 31st December 2018 he drew as follows:

Calculate the amount of interest on drawings.
Answer:
Interest on drawings = Amount of drawings × Rate of interest × Period of interest

Question 34.
A firm’s profit for the last 5 years were Rs 20,000, Rs 30,000, Rs 40,000, Rs 50,000, and Rs 60,000. Calculated the value of firm’s goodwill on the basis of three years purchase of weighted average profit after using weight of 1, 2, 3, 4, 5 respectively.
Answer:

Goodwill = Weighted avg. profit × Number of years purchase
= 46,667 × 3 = Rs 1,40,000 (appr.)

Question 35.
What are the adjustments required at the time of admission of a partner?
Answer:
The following adjustments are necessary at the time of admission of a partner.

1. Distribution of accumulated profits, reserves and losses
2. Revaluation of assets and liabilities
3. Determination of new profit sharing ratio and sacrificing ratio
4. Adjustment for goodwill
5. Adjustment of capital on the basis of new profit sharing ratio

Question 36.
Distinguish between sacrificing ratio and gaining ratio.
Answer:

Question 37.
Anu Company forfeited 200 equity shares of Rs 10 each issued at par held by Thiyagu for non-payment of the final call of Rs 3 per share. The shares were reissued to Laxman at Rs 6 per share. Show the journal entries for forfeiture and reissue.
Answer:
In the books of Anu Company
Journal entries

Question 38.
From the following particulars, prepare comparative income statement of Arul Ltd.

Answer:
Comparative Income Statement Analysis of Arul Ltd. for the year ended 31.3.2016 to 31.3.2017

Question 39.
From the following statement of profit and loss of Mukesh Ltd. calculate
(i) Gross profit ratio
(ii) Net profit ratio.
Statement of Profit and Loss

Answer:

Gross profit = Revenue from operations – Cost of revenue from operations
= 5,00,000 – 2,00,000
= Rs 3,00,000
Cost of revenue from operations = Purchase of stock in trade + Changes in inventories
= 1,80,000 + 20,000 = Rs 2,00,000

Question 40.
Explain arty five applications of computerised accounting system (CAS).
Answer:
The applications of CAS are as follows

1. Maintaining accounting records
2. Inventory management
3. Pay-roll preparation
4. Report generation
5. Data Import/Export

PART – IV

Answer all the following questions. [7 × 5 = 35]

Question 41 (a).
Ananth does not keep his books under double entry system. Find the profit or loss made by him for the year ending 31st March, 2019.

Ananth had withdrawn Rs 60,000 for his personal use. He had introduced Rs 17,000 as capital for expansion of his business. Create a provision of 5% on debtors. Plant and machinery is to be depreciated at 10%.
Answer:

[OR]

(b) What are the applications of computerised accounting system?
Answer:
Computerised accounting system refers to the system of maintaining accounts using computer. It involves the processing of accounting transactions through the use of computer in order to maintain and produce accounting records and reports.
The applications of computerised accounting system are as follows:
(i) Maintaining accounting records:
In computerised accounting system, accounting records can be maintained easily and efficiently for long time period. It does not require a large amount of physical space. It facilitates fast and accurate retrieval of data and information.

(ii) Inventory management:
Computerised accounting system facilitates efficient management of inventory, fast moving, slow’ moving and obsolete inventory can be identified. Updated information about availability of inventory, Level of inventory etc, can be obtained instantly.

(iii) Payroll Preparation:
Payroll involves the calculation of amount due to an employee. Pay of an employee may be calculated based on hours/days worked or units produced.

(iv) Report generation:
Computerised accounting system helps to generate various routine and special purpose reports.

(v) Data import/export:
Accounting data and information can be imported from or exported to other users within the organisation as well as outside the organisation.

(vi) Taxation:
Computerised accounting system helps to compute various taxes and to deduct these and deposit .the same to the Government account.

Question 42 (a).
What are the Sailent Feature of tally ERP.9?
Answer:
(i) A leading accounting package:
The first version of Tally was released in 1988 and through continuous development is now recognised as one of the leading accounting packages across the world with over a quarter million of customer Tally’s market share is more than 90%.

(ii) No accounting codes:
Unlike other computerised accounting packages which require numeric codes. Tally ERP 9 pioneered the “no accounting codes’” concept. Tally ERP 9 users have the freedom to allocate meaningful names in plain english to their data items in the system.

(iii) Compute business solution:
Tally ERP 9 provides a comprehensive solution to the accounting and inventory needs of a business. The packages comprises financial accounting book keeping and inventory accounting. It also has various tools to extract interpret and present data.

(iv) Speed:
It allows the user to maintain multiple companies and with unlimited levels of classification andJgrouping capabilities. It also allows dried down facility from report level to transaction level.

(v) Versatibility:
Tally ERP is suitable for a range of organisations from small grocery stores to large corporations with international locations and operations.

(vi) Online help:
The Tally ERP 9 online help (AH + H) provides instant assistance on basic and advanced feathers or any other relavent topics of Tally ERP. 9.

[OR]

(b) From the following Receipts and Payments account and from the information given below of Ramanathapuram Sports Club, prepare Income and Expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.

Additional information:
(j) Capital fund as on 1st January 2018 Rs 30,000.
(ii) Opening stock of sports material Rs 3,000 and closing stock of sports material Rs 5,000.
Answer:
Income and Expenditure Account for the year ended 31.12.18

Question 43 (a).
From the following Receipts and Payments account of Yercaud Youth Association, prepare Income and expenditure account for the year ended 31st March, 2019 and the balance sheet as on that date.
Answer:

Additional information:
(i) Opening capital fund Rs 20,000.
(ii) Stock of books on 1.4.2018 Rs 9,200.
(iii) Subscription due but not received Rs 1,700.
(iv) Stock of stationery on 1.4.2018 Rs 1,200 and stock of stationery on 31.3.2019, Rs 2,000
Answer:
Income and Expenditure Account for the year ended 31.03.19

[OR]

(b) From the following details of Rakesh, prepare Trading and Profit and Loss account for the year ended 31st March, 2019 and a Balance Sheet as on that date.

Answer:

Question 44 (a).
Arulappan and Nallasamy are partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st January 2018, their capitals were Rs 20,000 and Rs 10,000, respectively. The partnership deed specifies the following:
(a) Interest on capital is to be allowed at 5% per annum.
(b) Interest on drawings charged to Arulappan and Nallasamy are Rs 200 and Rs 300, respectively.
(c) The net profit of the firm before considering interest on capital and interest on drawings amounted to Rs 18,000.
Give necessary journal entries and prepare Profit and loss appropriation account for the year ending 31st December 2018. Assume that the capitals are fluctuating.
Answer:
Journal entries

[OR]

(b) Find out the value of goodwill by capitalising super profits:
(a) Normal Rate of Return 10%
(b) Profits for the last four years are Rs 30,000, Rs 40,000, Rs 50,000 and Rs 45,000.
(c) A non-recurring income of Rs 3,000 is included in the above mentioned profit of Rs 30,000.
(d) Average capital employed is Rs 3,00,000.
Answer:

Total profit = 27000 + 40000 + 50000 + 45000 = 162000

Question 45 (a).
Vetri and Ranjit are partners sharing profits in the ratio 3 : 2. Their balance sheet as on 31st December 2017 is as under.

On 1.1.2018 they admit suriya into their firm as a partner on the following arrangements,
(i) Suriya brings Rs 10,000 as capital for 1/4 share of profit
(ii) Stock to be depreciated by 10%
(iii) Debtors to be revalued at Rs 7,500
(iv) Furniture to be revalued at Rs 40,000.
(v) There is an outstanding wages of? 4,500 not yet recorded. Prepare revaluation account, partners capital account and the balance sheet of the firm after admission.
Answer:

[OR]

(b) Chandru, Vishal and Ramanan are partners in a firm sharing profits and losses equally. Their balance sheet as on 31st March, 2018 is as follows:

Ramanan retired on 31st March 2019 subject to the following conditions:
(i) Machinery is valued at Rs 1,50,000
(ii) Value of furniture brought down by Rs 10,000
(iii) Provision for doubtful debts should be increased to Rs 5,000
(iv) Investment of Rs 30,000 not recorded in the books is to be recorded now.
Pass necessary journal entries and prepare revaluation account and capital account of partners.
Answer:

Question 46 (a).
Kannan, Rahim and John are partners in a firm sharing profit and losses in the ratio of 5 : 3 : 2. The balance sheet as on 31st December, 2017 was as follows:

John retires on 1st January 2018, subject to following conditions:
(i) To appreciate building by 10%
(ii) Stock to be depreciated by 5%
(iii) To provide ? 1,000 for bad debts
(iv) An unrecorded liability of ? 8,000 have been noticed
(v) The retiring partner shall be paid immediately
Prepare revaluation account, partners capital account and the balance sheet of the firm after retirement.
Answer:

[OR]

(b) Sudha Ltd. offered 1,00,000 shares of Rs 10 each to the public payable Rs 3 on application, Rs 4 on share allotment and the balance when required. Applications for 1,40,000 shares were received on which the directors allotted as:
Applicants for 60,000 shares – Full
Applicants for 75,000 shares – 40,000 shares (excess money will be utilised for allotment)
Applicants for 5,000 shares – Nil
All the money due was received. Pass journal entries up to the receipt of allotment.
Answer:

Working note

Question 47 (a).
Prepare common-size statement of financial position of Saleem Ltd as on 31st March, 2017 and 31st March, 2018.

Answer:
Common-size balance sheet of Saleem Ltd as on 31st March, 2017 and 31st March, 2018

[OR]

(b) From the following Balance Sheet of James Ltd. as on 31.03.2019 calculate
(i) Debt-equity ratio
(ii) Proprietary ratio
(iii) Capital gearing ratio
Balance Sheet of James Ltd. as on 31.03.2019

Answer:

Long term debts = Debentures = 3,00,000
Shareholder’s funds = Equity share capital + Preference share capital + Reserves and surplus
= 2,50,000 + 2,00,000 + 1,50,000
= 6,00,000

Funds bearing fixed interest or dividend = Preference share capital + Debentures + Long term borrowings.
= 2,00,000 + 3,00,000
= 5,00,000
Equity shareholder’s funds = Equity share capital + Reserves and surplus
= 2,50,000 + 1,50,000
= 4,00,000
Capital gearing ratio = 4 00 000 = \(\frac{500000}{400000}\) = 1.25 : 1

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TN State Board 12th Accountancy Model Question Paper 1 English Medium

Instructions:

1. The question paper comprises of four parts.
2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
3. All questions of Part I, II. III and IV are to be attempted separately.
4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer.
5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about 50 words.
6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in about 150 words.
7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in about 250 words. Draw diagrams wherever necessary.

Time: 2.30 Hours
Max Marks: 90

Part -I

Answer all the questions. Choose the correct answer. [Answers are in bold] [20 × 1 = 20]

Question 1.
Capital in the beginning of the accounting year is ascertained by preparing
(a) Debtors A/c
(b) Cash A/c
(c) Opening statement of affairs
(d) None of these
Answer:
(c) Opening statement of affairs

Question 2.
Single entry system can be adopted by
(a) Small firms
(b) Joint stock companies
(c) Co-op societies
(d) None of these
Answer:
(a) Small firms

Question 3.
An advance receipt of subscription from a member of the non-profit organisation is considered as an
(a) Expenses
(b) Liability
(c) Equity
(d) Assets
Answer:
(b) Liability

Question 4.
Income and expenditure account is based on
(a) Cash Accounting
(b) Government Accounting
(c) Management Accounting
(d) Accrual Accounting
Answer:
(d) Accrual Accounting

Question 5.
The name under which the business of a firm is carried on is called the
(a) Company name
(b) Firm name
(c) Partnership firm
(d) Partner’s name
Answer:
(b) Firm name

Question 6.
The profit or loss arising from the partnership business is shared by the partners ………. in the
(a) Old ratio
(b) New ratio
(c) agreed ratio
(d) Sacrifice ratio
Answer:
(c) agreed ratio

Question 7.
Which is the present value of a firm’s future excess earnings?
(a) Fixed assets
(b) Current assets
(c) Goodwill
(d) None of these
Answer:
(c) Goodwill

Question 8.
Goodwill is shown under fixed assets in the
(a) Trial balance
(b) Balance sheet
(c) Trading A/c
(d) P and L A/c
Answer:
(b) Balance sheet

Question 9.
Revaluation account is also called
(a) Accumulation profit and loss A/c
(b) Profit and loss adjustment A/c
(c) Profit and loss appropriation A/c
(d) None of these
Answer:
(b) Profit and loss adjustment A/c

Question 10.
When the value of assets increases it results in
(a) profit
(b) loss
(c) income
(d) expense
Answer:
(a) profit

Question 11.
When a partner leaves from a partnership firm, it is known as
(a) Admission
(b) Retirement
(c) Dissolution
(d) Death
Answer:
(b) Retirement

Question 12.
The firm is reconstituted and other partners continue the partnership firm with a new………..
(a) contract
(b) agreement
(c) start business
(d) none of these
Answer:
(b) agreement

Question 13.
In order to meet them production must be carried on a
(a) small scale
(b) large scale
(c) medium scale
(d) none of these
Answer:
(b) large scale

Question 14.
The capital of companies is divided into small unit is
(a) shares
(b) debentures
(c) dividend
(d) none of these
Answer:
(a) shares

Question 15.
Which statement are prepared by the business concerns at the end of the accounting period to ascertain the operating results and the financial position?
(a) Trend analysis
(b) Income statement
(c) Financial statement
(d) Balance sheet
Answer:
(c) Financial statement

Question 16.
Financial statements are prepared based on………..
{a) Past data
(b) Future cost
(c) Terminal cost
(d) Historical cost
Answer:
(d) Historical cost

Question 17.
The financial status and financial performance of business entities can be assessed through………..
(a) Financial analysis
(b) Managerial analysis
(c) Cash flow statement
(d) None of these
Answer:
(a) Financial analysis

Question 18.
If both items in a ratio are from balance sheet it is classified as………..
(a) Inter statement ratio
(b) Income statement ratio
(c) Balance sheet ratio
(d) All of these
Answer:
(c) Balance sheet ratio

Question 19.
CAS helps to compute various taxes and to deduct these and deposit the same to the………..
(a) Private A/c
(b) Company A/c
(c) Government A/c
(d) None of these
Answer:
(c) Government A/c

Question 20.
In 2009, Tally solutions introduced the software………..
(a) Tally ERP 9
(b) Tally ERP 10
(c) Tally ERP 6.0
(d) None of these
Answer:
(a) Tally ERP 9

PART – II

Answer any seven questions in which question No. 30 is compulsory. [7 × 2 = 14]

Question 21.
What shall be the profits of the concern? if,
Opening capital 3,20,000, Drawings 72,000
Closing capital 3,60,000, Additional capital 20,000
Statement of Profit or Loss
Answer:

Question 22.
How will the following items appear in income and expenditure account?

Answer:

Question 23.
What is partnership deed?
Answer:
Partnership deed is a documents in writting that contains the terms of agreement among the partners. It is not compulsory for a partnership to have a partnership deed as per the Indian partnership Act 1932.

Question 24.
What is normal rate of return?
Answer:
Normal rate of return refers to the rate at which profit is earned by similar business entities in the Industry under normal circumstances.

Question 25.
Give the Journal Entry for writing off existing goodwill at the time of admission of a new partner?
Answer:

Question 26.
A, B and C are partners sharing profits in the ratio of 3:2:1. A retires and the new profit sharing ratio between B and C is 2:3. Calculate the gaining ratio.
Answer:
Share gained = New share – old share

∴ The gaining ratio of B, C = 2 : 13

Question 27.
What are the methods of issue of equity shares?
Answer:
A public company may raise capital by issue of equity shares through the following ways:
Public issue
Private placement
Rights issue
Bonus issue

Question 28.
What are “Financial Statements”?
Answer:
Financial statements are the statements prepared by the business concern at the end of the accounting period to ascertain the operating results and the financial position. The basic financial statements prepared by business concerns are income statement and balance sheet.

Question 29.
Calculate quick ratio; Total current liabilities Rs 2,40,000; Total current assets Rs 4,50,000; Inventories Rs 70,000; prepaid expenses Rs 20,000.
Answer:
Current liabilities
Quick ratio = \(\frac{Quick assets}{Current liabilities}\)
Quick assets = Current assets – Inventories – Prepaid expenses
Rs 4,50,000 – 70,000 – 20,000
= Rs 3,60,000
Quick ratio = \(\frac{360000}{240000}\)
= 1.5 : 1

Question 30.
What are accounting reports?
Answer:
Accounting report is a compilation of accounting information that are derived from the accounting records of a business concern. Accounting reports may be classified as routine reports and special purpose reports.

PART – III

Answer any seven questions in which question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
What are the features of incomplete records?
Answer:
(i) Nature:
It is an unscientific and unsystematic way of recording transactions. Accounting principles and accounting standards are not followed properly.
(ii) Lack of uniformity:
There is no uniformity in recording the transactions among different organisations. Different organisations record their transactions according to their needs and conveniences.
(iii) Suitability:
Only the business concerns which have no legal obligation to maintain books of accounts under double entry system may maintain incomplete records. Hence it may be maintained by small sized sole traders and partnership firms.

Question 32.
From the following particulars, show how the items “subscription” will appear in the income and expenditure account for the year ended 31.2.2018. Subscription received in 2018 is Rs 32,000; which includes Rs 3,000 for 2017 and Rs 5,000 for 2019. Subscription outstanding for the year 2018 is Rs 4,000; subscription of Rs 2,000 was received in advance for 2018 in the year 2017.
Answer:
Income and expenditure account for the year ended 31.12.2018

Question 33.
From the following information, prepare capital accounts of Mannan and Sevagan where their capitals and fluctuating.

Answer:

Question 34.
The following particulars are available in respect of a business carried on by a partnership firm.
a) Profits earned 2016 – 30,000; 2017 – 29,000; 2018 – 32,000.
b) Profit of 2016 includes a non-recurring income of Rs 3,000.
c) Profit of 2017 is reduced by Rs 2,000 due to stock destroyed by fire.
d) The stock is not insured. But it is decided to insure the stock in future. The insurance premium is estimated at Rs 5,600 p.a. You are required to calculate the value of goodwill on the basis of 2 years purchase of average profit of the last three years.
Answer:
Calculation of adjusted profit

Goodwill = Average profit × Number of years of purchase
= 24,400 × 2 = Rs 48,800

Question 35.
A and B are partners sharing profits in the ratio of 3 : 2. ‘C’ is admitted as a new partner and the new profit sharing ratio is decided as 5 : 3 : 2. The following revaluation are made. Pass journal entries.
(a) The value of building is increased by Rs 15,000
(b) The value of the machinery is decreased by Rs 4,000
(c) Provision for doubtful debtors is made for Rs 1,000
Answer:
Journal Entries

Question 36.
Rathna, Baskar and Ibrahim are partners sharing profit and losses in the ratio of 2 : 3 : 4, respectively. Rathna died on 31st December 2018. Final amount due to her showed a credit balance of 1,00,000. Pass journal entries, if
(а) The amount due is paid off immediately by cheque
(b) The amount due is not paid immediately
(c) Rs 60,000 is paid immediately by cheque.
Answer:

Question 37.
Anu company forfeited 200 equity shares of Rs 10 each issued at par held by Thiyagu for non-payment of the final call of Rs 3 per share. The shares were reissued to Laxman at Rs 6 per share. Show the journal entries for forfeiture and reissue.
Answer:
Journal entries

Question 38.
From the following particulars prepare comparative income statements of Tharun co Ltd.

Answer:

Question 39.
Calculate operating profit ratio under the following cases:
Case 1: Revenue from operations and Rs 10,00,000, operating profit Rs 1,50,000
Case 2: Revenue from operations and Rs 15,00,000, operating cost Rs 12,00,000
Case 3: Revenue from operations and Rs 20,00,000, gross profit 30%.
On revenue from operations, operating expenses Rs 4,00,000.
Answer:
case 1:
operating profit ratio =

case 2:
operating profit ratio =

Operating profit = Revenue from operation – operating cost
= 15,00,000 – 12,00,000
= Rs 3,00,000

case 3:
operating profit ratio =

Gross profit = 20,00,000 × \(\frac{30}{100}\) = Rs 6,00,000
Operating profit = Gross profit – operating expenses Operating profit
= 6,00,000 – 4,00,000
= Rs 2,00,000

Question 40.
Write a brief note on accounting vouchers?
Answer:
This type of a voucher basically analyses a business transactions from the accounting stand point and is used for recording purposes. These are commonly prepared by accountants on the basis of supporting voucher and approved by a different individual. They are further sub¬divided into two. Cash and non-cash voucher.
Example of cash type:

1. Credit vouchers
2. Debit vouchers

Example of Non-cash type:

1. Debit Note
2. Credit Note
3. Invoice

PART – IV

Answer all the questions. [7 × 5 = 35]

Question 41(a)
David does not keep proper books of accounts. Following details are given from his records.

During the year, he introduced further capital of Rs 45,000 and withdraw of Rs 2,500 per month from the business for his personal use. Prepare the statement of profit or loss with the above information.
Answer:
Statement of affairs as on 1.4.2018 and 31.03.2019

[OR]

(b) Arun and Selvan are partners who maintain their capital accounts under fixed capital method. From the following particulars prepare capital accounts of partner

Answer:

Question 42(a)
From the following receipts and payments account of friends football club for the year ending 31st March 2017. Prepare income and expenditure account for the year ending , 31st March 2017 and the balance sheet as on that date.
In the books of Friends Football Club

Additional information:
(i) The club had furniture of Rs 12,000 on 1st April 2016. Ignore depreciation on furniture.
(ii) Subscription outstanding for 2016-17 – Rs 600
(iii) Stock of sports materials on 31.3.2017 – Rs 100
(iv) Capital fund as on 1st April 2016 was Rs 23,000
Answer:
In the books of Friends Football Club

[OR]

(b) Calculate the value of goodwill at 5 years purchase of super profit from the following information.
(i) Capital employed: Rs 60,000.
(ii) Normal rate of return: 20%
(iii) Net profit for 5 years: 2014 – 1,00,000; 2015 – Rs 50,000; 2016 – 70,000; 2017 – 54,000; 2018 – 10,000.
(iv) Fair remuneration to the partners Rs 3,600 p.a
Answer:


Normal profit = Capital employed × Normal rate of return
= 60000 × \(\frac{20}{100}\)
= Rs 12,000
super profit = Average profit – Normal profit
= 53,200 – 12,000
= 41,200
Goodwill = Super profit × Number of years of purchased R
= 41,200 × 5
= Rs 2,06,000

Question 43(a)
Hari, Madhavan and Kesavan are partners sharing ratio of 5 : 3 : 2. As from 1st April 2017. Vanmathi is admitted into the partnership and the new profit ratio is decided 4 : 3 : 2 : 1. The following adjustments are to be made.
(a) Increase the value of premises by Rs 60,000.
(b) Depreciate stock by Rs 5,000; furniture by Rs 2000 and machinery by Rs 2,500.
(c) Provide for an outstanding liability of Rs 500.
Pass journal entries and prepare revaluation.
Answer:
Journal Entries

[OR]

(b) Sundar, Vivek, and Pandian are partners sharing profits in the ratio of 3 : 2 : 1. Their balance sheet as on 31st Dec 2018 is as under.

On 1.1.2019 Pandian died and on his death the following arrangements are made,
(i) Stock to be depreciated by 10%.
(ii) Land is to be appreciated by Rs 11,000.
(iii) Reduce the value of debtors Rs 3,000.
(iv) The final amount due to Pandian was not paid. Prepare revaluation account, partner’s capital A/c and the balance sheet of the firm after death.
Answer:

Question 44(a)
Vetri and Ranjit are partners sharing profit in the ratio of 3 : 2. Their balance sheet as on 31st December 2017 as under.

On 1.1.2018, they admit suriya into their firm as a partner on the following arrangements.
(i) Suriya brings Rs 10,000 as, capital for 1/4th share of profit
(ii) Stock to be depreciated by 10%
(iii) Debtors to be revalue at Rs 7,500
(iv) Furniture to be revaluted at Rs 40,000
(v) There is an outstanding wages Rs 4,500 not yet recorded. Prepare revaluation account, partner’s capital account and the balance sheet of the firm after admission.
Answer:

[OR]

(b) Prabu, Raju and Siva are partners sharing profit and losses in the ratio of 3 : 2 : 1. Prabu retires from partnership on 1.4.2017.
The following adjustments are to be made:
(i) Increase the value of building by Rs 12,000
(ii) Reduce the value of furniture by Rs 8,500
(iii) A provision would also be made for outstanding salary for Rs 6500.
Answer:
Journal Entries

Question 45(a)
Mani, Rama and Devan are partners in a firm sharing profit and losses in the ratio of 4 : 3 : 3. Their balance sheet as on 31st March 2019 is as follows:

Vlani retired from the partnership firm on 31.03.2019 subject to the following
adjustments:
(i) Stock to be depreciated Rs 5,000.
(ii) Provision for doubtful debtors to be created for Rs 1,000.
(ii) Buildings to be appreciated by Rs 16,000. The final amount due to Mani is not paid immediately. Prepare revaluation A/c and Capital Account of partners after retirement.
Answer:

[OR]

(b) Joy company issued 10,000 equity shares at Rs 10 per share payable Rs 5 on application, Rs 3 on allotment and Rs 2 on first and final call. The public subscribed for 9,000 shares. The directors allotted all the 9,000 shares and duly received the money. Pass the necessary journal entries.
Answer:
Journal Entries

Question 46(a)
Thangam Ltd issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share payable as follows:
On application Rs 5, on allotment Rs 5 (including premium), on first and final call Rs 2. Issue was fully subscribed and the amount due were received except Priya to whom 500 shares were allotted who failed to pay the allotment money and first and final call money. Her shares were forfeited. All the forfeited share were reissued to devi Rs 8 per share.
Answer:
Journal Entries

[OR]

(b) From the following particulars of Neithal Ltd. Calculate trend percentage.

Answer:

Question 47 (a)
From the following balance sheet of Gupta Ltd, prepare comparative balance sheet as on 31st March 2017 and 31st March 2018.

Answer:
Comparative balance sheet as on 31st March 2017 and 31.3.2018

[OR]

(b) Calculate
(i) inventory turnover ratio
(ii) Trade receivable (or) turnover ratio
(iii) Trade payable turnover ratio
(iv) Gross profit ratio
(v) Fixed assets turnover ratio.
From the following information obtained from Delphi Ltd.

Additional information:
Revenue from operations for the year – 10,50,000
Purchases for the year – 4,50,000
Cost of revenue from operations – 6,00,000
Assume that sales and purchases are for credit
Answer:

Gross profit ratio = Revenue from operation – Cost of revenue from operation
Gross profit ratio = 10,50,000 – 6,00,000 = Rs 4,50,000

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• Chapter 2 கலப்பு எண்கள் Ex 2.7
• Chapter 2 கலப்பு எண்கள் Ex 2.8
• Chapter 2 கலப்பு எண்கள் Ex 2.9

12th Maths Book Back Answers Chapter 3 சமன்பாட்டியல்

• Chapter 3 சமன்பாட்டியல் Ex 3.1
• Chapter 3 சமன்பாட்டியல் Ex 3.2
• Chapter 3 சமன்பாட்டியல் Ex 3.3
• Chapter 3 சமன்பாட்டியல் Ex 3.4
• Chapter 3 சமன்பாட்டியல் Ex 3.5
• Chapter 3 சமன்பாட்டியல் Ex 3.6
• Chapter 3 சமன்பாட்டியல் Ex 3.7

Samacheer Kalvi 12th Maths Guide Chapter 4 நேர்மாறு முக்கோணவியல் சார்புகள்

• Chapter 4 நேர்மாறு முக்கோணவியல் சார்புகள் Ex 4.1
• Chapter 4 நேர்மாறு முக்கோணவியல் சார்புகள் Ex 4.2
• Chapter 4 நேர்மாறு முக்கோணவியல் சார்புகள் Ex 4.3
• Chapter 4 நேர்மாறு முக்கோணவியல் சார்புகள் Ex 4.4
• Chapter 4 நேர்மாறு முக்கோணவியல் சார்புகள் Ex 4.5
• Chapter 4 நேர்மாறு முக்கோணவியல் சார்புகள் Ex 4.6

Maths Guide for Class 12 Chapter 5 இரு பரிமாண பகுமுறை வடிவியல் – II

• Chapter 5 இரு பரிமாண பகுமுறை வடிவியல் – II Ex 5.1
• Chapter 5 இரு பரிமாண பகுமுறை வடிவியல் – II Ex 5.2
• Chapter 5 இரு பரிமாண பகுமுறை வடிவியல் – II Ex 5.3
• Chapter 5 இரு பரிமாண பகுமுறை வடிவியல் – II Ex 5.4
• Chapter 5 இரு பரிமாண பகுமுறை வடிவியல் – II Ex 5.5
• Chapter 5 இரு பரிமாண பகுமுறை வடிவியல் – II Ex 5.6

12th Maths Samacheer Solutions Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள்

• Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள் Ex 6.1
• Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள் Ex 6.2
• Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள் Ex 6.3
• Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள் Ex 6.4
• Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள் Ex 6.5
• Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள் Ex 6.6
• Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள் Ex 6.7
• Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள் Ex 6.8
• Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள் Ex 6.9
• Chapter 6 வெக்டர் இயற்கணிதத்தின் பயன்பாடுகள் Ex 6.10

TN 12th Maths Solutions Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள்

• Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 7.1
• Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 7.2
• Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 7.3
• Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 7.4
• Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 7.5
• Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 7.6
• Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 7.7
• Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 7.8
• Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 7.9
• Chapter 7 வகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 7.10

12th Samacheer Maths Solutions Chapter 8 வகையீடுகள் மற்றும் பகுதி வகைக்கெழுக்கள்

• Chapter 8 வகையீடுகள் மற்றும் பகுதி வகைக்கெழுக்கள் Ex 8.1
• Chapter 8 வகையீடுகள் மற்றும் பகுதி வகைக்கெழுக்கள் Ex 8.2
• Chapter 8 வகையீடுகள் மற்றும் பகுதி வகைக்கெழுக்கள் Ex 8.3
• Chapter 8 வகையீடுகள் மற்றும் பகுதி வகைக்கெழுக்கள் Ex 8.4
• Chapter 8 வகையீடுகள் மற்றும் பகுதி வகைக்கெழுக்கள் Ex 8.5
• Chapter 8 வகையீடுகள் மற்றும் பகுதி வகைக்கெழுக்கள் Ex 8.6
• Chapter 8 வகையீடுகள் மற்றும் பகுதி வகைக்கெழுக்கள் Ex 8.7
• Chapter 8 வகையீடுகள் மற்றும் பகுதி வகைக்கெழுக்கள் Ex 8.8

12th Std Maths Guide Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள்

• Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 9.1
• Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 9.2
• Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 9.3
• Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 9.4
• Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 9.5
• Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 9.6
• Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 9.7
• Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 9.8
• Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 9.9
• Chapter 9 தொகை நுண்கணிதத்தின் பயன்பாடுகள் Ex 9.10

Samacheer Kalvi Guru 12th Maths Chapter 10 சாதாரண வகைக்கெழுச் சமன்பாடுகள்

• Chapter 10 சாதாரண வகைக்கெழுச் சமன்பாடுகள் Ex 10.1
• Chapter 10 சாதாரண வகைக்கெழுச் சமன்பாடுகள் Ex 10.2
• Chapter 10 சாதாரண வகைக்கெழுச் சமன்பாடுகள் Ex 10.3
• Chapter 10 சாதாரண வகைக்கெழுச் சமன்பாடுகள் Ex 10.4
• Chapter 10 சாதாரண வகைக்கெழுச் சமன்பாடுகள் Ex 10.5
• Chapter 10 சாதாரண வகைக்கெழுச் சமன்பாடுகள் Ex 10.6
• Chapter 10 சாதாரண வகைக்கெழுச் சமன்பாடுகள் Ex 10.7
• Chapter 10 சாதாரண வகைக்கெழுச் சமன்பாடுகள் Ex 10.8
• Chapter 10 சாதாரண வகைக்கெழுச் சமன்பாடுகள் Ex 10.9

TN Class 12 Maths Solutions Chapter 11 நிகழ்தகவு பரவல்கள்

• Chapter 11 நிகழ்தகவு பரவல்கள் Ex 11.1
• Chapter 11 நிகழ்தகவு பரவல்கள் Ex 11.2
• Chapter 11 நிகழ்தகவு பரவல்கள் Ex 11.3
• Chapter 11 நிகழ்தகவு பரவல்கள் Ex 11.4
• Chapter 11 நிகழ்தகவு பரவல்கள் Ex 11.5
• Chapter 11 நிகழ்தகவு பரவல்கள் Ex 11.6

Samacheer 12th Maths Solutions Chapter 12 தனிநிலைக் கணிதம்

• Chapter 12 தனிநிலைக் கணிதம் Ex 12.1
• Chapter 12 தனிநிலைக் கணிதம் Ex 12.2
• Chapter 12 தனிநிலைக் கணிதம் Ex 12.3

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Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Accountancy Guide Pdf Chapter 9 Rectification of Errors Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 9 Rectification of Errors

11th Accountancy Guide Bank Rectification of Errors Text Book Back Questions and Answers

I. Multiple Choice Questions

Choose the correct answer.

Question 1.
Error of principle arises when ________.
a) There is complete omission of a transaction
b) There is partial omission of a transaction
c) Distinction is not made between capital and revenue items
d) There are wrong postings and wrong castings
Answer:
c) Distinction is not made between capital and revenue items

Question 2.
Errors not affecting the agreement of trial balance are ________.
a) Errors of principle
b) Errors of overcasting
c) Errors of undercasting
d) Errors of partial omission
Answer:
a) Errors of principle

Question 3.
The difference in trial balance is taken to ________.
a) The capital account
b) The trading account
c) The suspense account
d) The profit and loss account
Answer:
c) The suspense account

Question 4.
A transaction not recorded at all is known as an error of ________.
a) Principle
b) Complete omission
c) Partial omission
d) Duplication
Answer:
b) Complete omission

Question 5.
Wages paid for installation of machinery wrongly debited to wages account is ah error of ________.
a) Partial omission
b) Principle
c) Complete omission
d) Duplication
Answer:
b) Principle

Question 6.
Which of the following errors will not affect the trial balance?
a) Wrong balancing of an account
b) Posting an amount in the wrong account but on the correct side
c) Wrong totaling of an account
d) Carried forward wrong amount in a ledger account
Answer:
b) Posting an amount in the wrong account but on the correct side

Question 7.
Goods returned by Senguttuvan were taken into stock, but no entry was passed in the books. While rectifying this error, which^of the following accounts should be debited?
a) Senguttuvan account
b) Sales returns account
c) Returns outward account
d) Purchases returns account
Answer:
b) Sales returns account

Question 8.
A credit purchase of furniture from Athiyaman was debited tg purchases account. Which of the following accounts should be debited while rectifying this error?
a) Purchases account
b) Athiyaman account
c) Furniture account
d) None of these
Answer:
c) Furniture account

Question 9.
The total of purchases book was overcast. Which of the following accounts should be debited in the rectifying journal entry?
a) Purchases account
b) Suspense account
c) Creditor account
d) None of the above
Answer:
b) Suspense account

Question 10.
Which of the following errors will be rectified using suspense account?
a) Purchases returns book was undercast by ₹ 100
b) Goods returned by Narendran was not recorded in the books ;
c) Goods returned by Akila ₹ 900 was recorded in the sales returns book as ₹ 90
d) A credit sale of goods to Ravivarman was not entered in the sales book.
Answer:
a) Purchases returns book was undercast by ₹ 100

II. Very Short Answer Type Questions

Question 1.
What is meant by rectification of errors?
Answer:
Correction of errors in the books of accounts is not done by erasing, rewriting or striking the figures which are incorrect. Correcting the errors that has occurred is called Rectification of errors.

Question 2.
What is meant by error of principle?
Answer:
Error of principle means the mistake committed in the application of fundamental accounting principles in recording a transaction in the books of accounts.

Question 3.
What is meant by error of partial omission?
Answer:
When the accountant has failed to record a part of the transaction, it is known as error of partial omission. This error usually occurs in posting. This error affects only one account.

Question 4.
What is meant by error of complete omission?
Answer:
It means the failure to record a transaction in the journal or subsidiary book or failure to post both the aspects in ledger. This error’ affects two or more accounts. ‘

Question 5.
What are compensating errors?
Answer:
The errors that make up for each other or neutralise each other are known as compensating errors. These errors may occur in related or unrelated accounts. Thus, excess debit or credit in one account may be compensated by excess credit or debit in some other account. These are also known as offsetting errors.

III. Short Answer Questions

Question 1.
Write a note on error of principle by giving an example.
Answer:
It means the mistake committed in the application of fundamental accounting principles in recording a transaction in the books of accounts.
The following are the possibilities of error of principle

1) Entering the purchase of an asset in the purchases book
Example: Machinery purchased on credit for ₹ 10,000 by M/s. Anbarasi garments manufacturing company entered in the purchases book.

2) Entering the sale of an asset in the sales book
Example: Sale of old furniture on credit for ₹ 500 was entered in the sales book.

3) Treating a capital expenditure as a revenue expenditure
Examples: An amount of ₹ 3,000 spent on the construction of an additional room is debited to repairs account. Wages of ₹ 600 paid for installation of a new machine is debited to wages account.

4) Treating a revenue expenditure as a capital expenditure
Example: An amount of ₹ 2,000 paid for repairs to a machine is debited to machinery account.

Question 2.
Write a note on suspense account.
Answer:
1. When the trial balance does not tally, the amount of difference is placed to the debit (whenthe total of the credit column is higher than the debit column) or credit (when the total of thedebit column is higher than the credit column) to a temporary account known as ‘suspenseaccount’

2. Suspense account will remain in the books until the location and rectification of errors.

3. Afterrectifying the errors and posting the rectification entries to the respective ledger accounts, thesuspense account appearing in the ledger is to be balanced.

4. If all the errors are located andrectified, the suspense account gets closed.

Question 3.
What are the errors not disclosed by a trial balance?
Answer:
Certain errors will not affect the agreement of trial balance. Though such errors occur in thebooks of accounts, the total of debit and credit balance will be the same. The trial balance willtally. Errors of complete omission, error of principle, compensating error, wrong entry in thesubsidiary books are not disclosed by the trial balance.

Examples of such errors are as follows:

• Treating revenue expenditure as capital expenditure
• Omitting a transaction completely
• Entering a transaction in a wrong subsidiary book
• Entering a transaction twice in a subsidiary book or journal
• Entering the amount of a transaction wrongly in the journal
• Entering the amount of transaction wrongly in the subsidiary book.

Question 4.
What are the errors disclosed by a trial balance?
Answer:
Certain errors affect the agreement of trial balance. If such errors have occurred in the books of accounts, the total of debit and credit balances will not be the same. The trial balance willnottally. Error of partial omission and error of commission affect the agreement of trial balance. Examples of such errors are follows:

• Entered in the journal but posted to one account and omitted to be posted to the other.
• Posting an amount to the wrong side of a ledger account
• Posting twice in a ledger account.
• Over-casting or under-casting in a subsidiary book.
• Posting a wrong amount to the wrong side of an amount.
• Errors in carrying forward the page total from one page to the next page of an account or subsidiary book.
• Errors arising in the balancing of an account.
• Omission to post an entry from a subsidiary book.

Question 5.
Write a note on one-sided errors and two sided error.
Answer:
(a) Rectification of one-sided errors before preparing trial balance:

• When one-sided error is detected before preparing the trial balance, no journal entry isrequired to be passed in the books.
• In such cases, the error can be rectified by giving anexplanatory note in the account affected as to whether the concerned account is to bedebited or credited.
• Example: Sales book is under cast by ₹ 100.
• In this case, the sales book is under cast by ₹ 100.
• The total of sales book is posted to thecredit side of sales account in the ledger.
• The under casting has resulted in under-creditingof sales account by ₹ 100.
• This is an error of commission.
• The error is only in sales account.There is short credit in sales account by ₹ 100. Hence, it is rectified by crediting salesaccount by ₹ 100.

(b) Rectification of two-sided errors before preparing the trial balance:
1. When a two-sided error is detected before preparing the trial balance, it must be rectifiedby passing a rectifying journal entry in the journal proper after analyzing the error.
Example: Goods sold to Anand for ₹ 1,000 on credit was not entered in the sales book. The entry will be

Method of deriving the rectifying entries

IV. Exercises

Question 1.
State the account/s affected in each of the following errors
a) Goods purchased on credit from Saranya for ₹ 150 was posted to the debit side of her account.
b) The total of purchases book ₹ 4,500 was posted twice.
Solution:
a) Saranya account should be credit with ₹ 300
b) Purchases account should be credit with ₹ 4,500

Question 2.
State the account/s affected in each of the following errors
a) Goods sold to Vasu on credit for ₹ 1,000 was not recorded in the sales book.
b) The total of sales book ₹ 2,500 was posted twice.
Solution:
a) Sales account should be credit with ₹ 1,000
b) Sales account should be Debited with ₹ 2,500

Question 3.
Rectify the following errors discovered before the preparation of the trial balance
a) Sales book was undercast by ₹ 100
b) Purchases returns book was overcast by ₹ 200
Solution:
a) Sales account should be Credited with ₹ 100
b) Purchases returns account should be debited with ₹ 200

Question 4.
Rectify the following errors before the preparation of trial balance
a) Returns outward book was undercast by ₹ 2,000
b) Returns inward book total was taken as ₹ 15,000 instead of ₹ 14,000
c) The total of the purchases account was carried forward ₹ 100 less.
Solution:
a) Purchases return account should be Credited with ₹ 2,000
b) Sales returns account should be Debited with ₹ 1,000
c) Purchases accounts should be debited ₹ 100

Question 5.
Rectify the following errors assuming that the trial balance is yet to be prepared
a) Sales book was undercast by ₹ 400
b) Sales returns book was overcast by ₹ 500
c) Purchases book was undercast by ₹ 600
d) Purchases returns book was overcast by ₹ 700
e) Bills receivable book was undercast by ₹ 800
Solution:
a) Sales account should be credited with ₹ 400
b) Sales return accounts should be Credited with ₹ 500
c) Purchases account should be debited with ₹ 600
d) Purchases returns account should be debited with ₹ 700
e) Bills received account should be debited with ₹ 800

Question 6.
Rectify the following errors before preparing trial balance
a) The total of purchases book was carried forward ₹ 90 less.
b) The total of purchases book was carried forward ₹ 180 more.
c) The total of sales book was carried forward ₹ 270 less.
d) The total of sales returns book was carried forward ₹ 360 more.
e) The total of purchase returns book was carried forward ₹ 450 less.
Solution:
a) Purchases account is to be Debited with ₹ 90
b) Purchases account is to be Credited with ₹ 180
c) Sales account is to be Credited with ₹ 270
d) Sales returns account is to be Credited with ₹ 360
e) Purchases returns account is to be Credit with ₹ 450

Question 7.
The following errors were located by the accountant before preparation of trial balance. Rectify them.
a) The total of the discount column of ₹ 1,100 on the debit side of the cash book was not yet osted.
b) The total of the discount column on the credit side of the cash book was undercast by ₹ 500.
c) Purchased goods from Anbuchelvan on credit for ₹ 700 was posted to the debit side of his account.
d) Sale of goods to Ponmukil on credit for ₹ 78 was posted to her account as ₹ 87.
e) The total of sales returns book of ₹ 550 was posted twice.
Solution:
a) Discount account should be debited with ₹ 1,100
b) Discount account should be Credited with ₹ 500
c) Anbuchelvan account should be Credited with ₹ 1,400
d) Ponmuki account should be Credit with ₹ 9
e) Sales return account should be Credit with ₹ 550

Question 8.
The accountant of a firm located the following errors before preparing the trial balance. Rectify them.
a) Machinery purchased for ₹ 3,000 was debited to purchases account.
b) Interest received ₹ 200 was credited to commission account.
c) An amount of ₹ 1,000 paid to Tamil selvan as salary was debited to his personal account.
d) Old furniture sold for ₹ 300 was credited to sales account.
e) Goods worth ₹ 800 purchased from Soundarapandian on credit was not recorded in the books of accounts.
Solution:
Journal Entries

Question 9.
Rectify the following errors which were located before preparing the trial balance.
a) Wages paid ₹ 2,000 for the erection of machinery was debited to wages account.
b) Sales returns book was short totalled by ₹ 1,000.
c) Goods purchased for ₹ 200 was posted as ₹ 2,000 to purchases account.
d) The sales book was overcast by ₹ 1,500.
e) Cash paid to Mukil ₹ 2,800 which was debited to Akhil’s account as ₹ 2,000.
Solution:
Rectification of Errors:

Question 10.
Rectify the following errors which were located at the time of preparing the trial balance
a) The total of the discount column on the debit side of the cash book of ₹ 225 was posted twice.
b) Goods of the value of ₹ 75 returned by Ponnarasan was not posted to his account.
c) Cash received from Yazhini ₹ 1,000 was not posted.
d) Interest received ₹ 300 has not been posted.
e) Rent paid ₹ 100 was posted to rent account as ₹ 10
Solution:
Rectification of Errors

Question 11.
The following errors were located at the time of preparing trial balance. Rectify them.
a) A personal expense of the proprietor ₹ 200 was debited to traveling expenses account.
b) Goods of ₹ 400 purchased from Ramesh on credit was wrongly credited to Ganesh’s account.
c) An amount of ₹ 500 paid as salaries to Mathi was debited to his personal account.
d) An amount of ₹ 2,700 paid for extension of the building was debited to repairs account.
e) A credit sale of goods of ₹ 700 on credit to Mekala was posted to Krishnan’s account.
Solution:
Rectification of Errors

Question 12.
Rectify the following journal entries.

Solution:
Rectification of Errors

Question 13.
Rectify the following errors discovered after the preparation of the trial balance
a) Rent paid was carried forward to the next page ₹ 500 short.
b) Wages paid was carried forward ₹ 250 excess.
Solution:
a) Rent account should be debited with ₹ 500
b) Wages account should be Credited with ₹ 250

Question 14.
Rectify the following errors after preparation of trial balance
a) Salary paid to Ram ₹ 1,000 was wrongly debited to his personal account.
b) A credit sale of goods to Baiu for ₹ 450 was debited to Balan.
Solution:
Rectification of Errors

Question 15.
Pass necessary journal entries to rectify the following errors located after the preparation of trial balance
a) Sales book was undercast by ₹ 1,000.
b) A amount of ₹ 500 paid for wages was wrongly posted to machinery Account.
Solution:
Rectification of Errors

Question 16.
Give journal entries to rectify the following errors discovered after the preparation of trial balance
a) Purchases book was overcast by ₹ 10,000.
b) Repairs to furniture of ₹ 500 was debited to furniture account.
c) A credit sale of goods to Akilnilavan for ₹ 456 was credited to his account as ₹ 654.
Solution:
Rectification of Errors

Question 17.
Rectify the following errors located after the preparation of trial balance
a) Purchases book was undercast by ₹ 900.
b) Sale of old furniture for ₹ 1,000 was credited to sales account.
c) Purchase of goods from Arul for ₹ 1,500 on credit was not recorded in the books.
Solution:
Rectification of Errors

Question 18.
The following errors were located after the preparation of trial balance. Pass journal entries to rectify them. Assume that there exists a suspense account.
a) The total of sales book was undercast by ₹ 350.
b) The total of the discount column on the debit side of cash book ₹ 420 was not posted.
c) The total of one page of the purchases book of ₹ 5,353 was carried forward to the next page as ₹ 5,533.
d) Salaries ₹ 2,400 was posted as ₹ 24,000.
e) Purchase of goods from Sembiyanmadevi on credit for ₹ 180 was posted to her account as ₹ 1,800
Solution:
Rectification of Errors

Question 19.
Rectify the following errors assuming that the trial balance is already prepared and the difference was placed to suspense account
a) Saies book was undercast by ₹ 250
b) Purchases book was undercast by ₹ 120
c) Sales book was overcast by ₹ 130
d) Bills receivable book was undercast by ₹ 75
e) Purchases book was overcast by ₹ 35.’
Solution:
Rectification of Errors

Question 20.
The following errors were located after the preparation of trial balance. The difference in trial balance has been taken to suspense account. Rectify them.
a) The total of purchases book was carried forward ₹ 70 less.
b) The total of sales book was carried forward ₹ 340 more.
c) The total of purchases book was carried forward ₹ 150 more.
d) The total of sales book was carried forward ₹ 200 less.
e) The total of purchase returns book was carried forward ₹ 350 less.
Solution:
Rectification of Errors

Question 21.
The following errors were located by the accountant after the preparation of trial balance. There exists a suspense account. Rectify them.
a) The total of the discount column of ₹ 1,180 on the debit side of the cash book was not posted.
b) Purchase of goods from Arivuchelvan on credit for ₹ 600 was posted to the debit side of his account.
c) The total of the discount column on the credit side of the cash book was undercast by ₹ 400.
d) The total of sales returns book of ₹ 570 was posted twice.
e) Sold goods to Mukil on credit for ₹ 87 was posted to her account as ₹ 78.
Solution:
Rectification of Errors

Question 22.
The accountant of a firm located the following errors after preparing the trial balance. Rectify them assuming that there is a suspense account.
a) Machinery purchased for ₹ 3,500 was debited to purchases account.
b) ₹ 1,800 paid to Raina as salary was debited to his personal account.
c) Interest received ₹ 200 was credited to commission account.
d) Goods worth ₹ 1,800 purchased from Amudhanila on credit was not recorded ip the books of accounts,
e) Used furniture sold for ₹ 350 was credited to sales account.
Solution:
Rectification of Errors

Question 23.
The book-keeper of a firm found that the trial balance was cut by ₹ 922 (excess credit). He placed the amount in the suspense account and subsequently found the following errors
a) The total of discount column on the credit side of the cash book ₹ 78 was not posted in the ledger.
b) The total of purchases book was short by ₹ 1,000.
c) A credit sale of goods to Natarajan for ₹ 375 was entered in the sales book as ₹ 735.
d) A credit sale of goods to Mekala for ₹ 700 was entered in the purchases book.
You are required to give rectification entries and prepare suspense account.
Solution:
Rectification of Errors

Suspense Account

Question 24.
The books of Raman did not agree. The accountant placed the difference of ₹ 1,270 to the debit of suspense account. Rectify the following errors and prepare the suspense account
a) Goods taken by the proprietor for his personal use ₹ 75 was not entered in the books.
b) A credit sale of goods to Shanmugam for ₹ 430 was credited to his account as ₹ 340.
c) A purchase of goods on credit for ₹ 400 from Vivek was entered in the sales book. However, Vivek’s account was correctly credited.
d) The total of the purchases returns book ₹ 300 was not posted.
Solution:
Rectification of Errors

Suspense Account

11th Accountancy Guide Rectification of Errors Additional Important Questions and Answers

I. Choose the correct answer.

Question 1.
Goods of ₹ 5, 000 purchased from Mr.B were recorded in sales book, the rectification of this error will ________.
a) Increase the gross profit
b) Reduce the gross profit
c) Have no effect on gross profit
d) None of the above
Answer:
b) Reduce the gross profit

Question 2.
When one or both aspects of a transaction are recorded in the wrong category of an account, this is called ________.
a) Error of Principle
b) Error of Omission
c) Error of Commission
d) Error of original entry
Answer:
a) Error of Principle

Question 3.
Goods worth l 500 given as charity should be credited to ________.
a) Charity Account
b) Sales Account
c) Purchases Account
d) None of the above
Answer:
c) Purchases Account

Question 4.
₹ 60,000 paid on extension of building wrongly debited to Repairs account. This is called the error of ________.
a) Commission
b) Omission
c) Principle
d) None of these
Answer:
c) Principle

Question 5.
________ are those transactions which are not recorded as per the rules of debit and credit.
a) Error of principle
b) Error of Commission
c) Error of Omission
d) Compensating errors
Answer:
a) Error of principle

Question 6.
________ are those which cancel themselves out.
a) Error of principle
b) Error of Commission
c) Error of Omission
d) Compensating errors
Answer:
d) Compensating errors

Question 7.
________ errors can be located in the preparation of trial balance.
a) Error of principle
b) Error of Commission
c) Error of Omission
d) Compensating errors
Answer:
b) Error of Commission

Question 8.
An entry of ₹ 75 has been debited to Rajesh’s A/c as ₹ 57 is an error of ________.
a) Error of principle
b) Error of Commission
c) Error of Omission
d) Compensating errors
Answer:
b) Error of Commission

Question 9.
Casting errors are the result of ________.
a) Wrong totaling
b) Wrong Balancing
c) wrong carry forward
d) None of the above
Answer:
a) Wrong totaling

Question 10.
Suspense account is usually closed when ________.
a) Accounts are finalised
b) After the completion of auditing
c) All the errors are rectified
d) None of the above
Answer:
c) All the errors are rectified

II. Very Short Answer Questions

Question 1.
What do you mean by error?
Answer:
Error means recording or classifying or summarizing the accounting transactions wrongly or omissions to record them by a clerk or an accountant unintentionally.

Question 2.
At what stages the errors can occur?
The following types of errors may occur in various stages:
Answer:

• At the stage of journalizing
• At the stage of posting
• At the stage of balancing
• At the stage of preparing trial balance

Question 3.
What do you meaning of errors?
Answer:
Error means recording or classifying or summarising the accounting transactions wrongly or omissions to record them by a clerk or an accountant unintentionally.

Question 4.
What is error of omission?
Answer:
The failure of the accountant to record a transaction or an item in the books of accounts is known as an error of omission. It can be complete omission or partial omission.

Question 5.
What is error of commission?
Answer:
When a transaction is incorrectly recorded, it is known as error of commission. It usually occurs due to lack of concentration or carelessness of the accountant.

Question 6.
Write a note on one-sided errors.
Answer:
When one-sided error is detected before preparing the trial balance, no journal entry is required to be passed in the books. In such cases, the error can be rectified by giving an explanatory note in the account affected as to whether the concerned account is to be debited or credited.

Question 7.
Write a note on two sided errors.
Answer:
When a two-sided error is detected before preparing the trial balance, it must be rectified by passing a rectifying journal entry in the journal proper after analysing the error.

III. Short Answer Questions

Question 1.
What are the Steps to be followed to locate the errors after preparation of trial balance?
Answer:
While preparing trial balance, if it does not tally, it is an indication of presence of errors in the books.of accounts. The difference in trial balance is transferred to suspense account and then errors are to be located and rectified.

The following are the steps to be followed to locate errors after preparing trial balance

1. The totals of debit and credit columns of trial balance are to be checked
2. The balances of various ledger accounts shown in the trial balance are to be checked to ensure whether they are shown in the respective columns (debit or credit).
3. The difference in the trial balance must be halved and compared with balances of ledger to verify whether any ledger balance is recorded on the wrong side of the trial balance.
4. The totals of all the subsidiary books are to be checked, especially if the difference is ₹ 1, T 100 etc.
5. If the difference is divisible by ‘9’, the difference may be due to transposition of figures in the books (Writing ₹ 127 as ₹ 172). Hence, the possibilities of transposition of figures shall be checked.
6. The accounts of all the creditors and debtors are to be verified.
7. The correctness of the balances of various ledger accounts is to be ensured.
8. The correctness of the balances of various ledger accounts is to be ensured.
9. All the amounts carried forward from one page to the next are to be verified. .
10. If the difference still exists, as a final step all the entries in the journals should be verified.

Question 2.
What are the Steps to be followed to locate the errors before preparation of trial balance?
Answer:
Errors may be located before preparing the trial balance either spontaneously or by intentional scrutiny of books of accounts.

The following are the steps to be followed to locate errors before preparing trial balance:

1. Scrutiny of entries made in the journal proper
2. Scrutiny of entries made in the subsidiary books
3. Checking the totals of the subsidiary books
4. Scrutiny of postings made to the ledger accounts
5. Scrutiny of balancing of ledger accounts

Question 3.
Spot out the location of errors before preparation of trial balance.
Answer:
Errors may be located before preparing the trial balance either spontaneously or by intentional scrutiny of books of accounts. The following are the steps to be followed to locate errors before preparing trial balance

1. Scrutiny of entries made in the journal proper.
2. Scrutiny of entries made in the subsidiary books.
3. Checking the totals of the subsidiary books
4. Scrutiny of balancing of ledger accounts.
5. Scrutiny of postings made to the ledger accounts

Question 4.
Rectify the following errors

1. Purchases Book is overcast by ₹ 3,500
2. Sales Book is undercast by ₹ 2,000
3. Purchases returns books has been over cast by ₹ 7,600
4. Sales returns book has been undercast by ₹ 500

Solution:
Rectification:

1. Credit Purchases Account with ₹ 3,500
2. Credit Sales Account with ₹ 2,000
3. Debit Purchases Returns account with ₹ 7,600
4. Debit Sales returns account with ₹ 500

Question 5.
Rectify the following errors
1. Sales book undercast by ₹ 5,000
2. Machinery purchased for ₹ 9000 passed through purchases Book.
3. Sales to Ram for ₹ 11,000 debited to his account as ₹ 10,100.
4. Repairs to building ₹ 3,640 debited to buildings account.
Solution:

Question 6.
Rectify the following errors
1. The purchase of machinery from A for ₹ 3,000 has been entered in purchase day book.
2. Received ₹ 1,000 from M but credited to N’s account.
3. ₹ 800 paid as wages for erection of machine has been charged to Repairs account.
4. ₹ 250 received from Ganesh, previously written off, has been credited to Ganesh account
Solution:

Question 7.
Rectify the following Errors
1. Purchase book is overcast by ₹ 6,000
2. Sales book carried forward ₹ 630 instead of ₹ 360
3. Purchase from Sreesha ₹ 5, 000 has been posted to the debit side of her account.
4. Sale of old machinery for ₹ 50,000 has been entered in Sales book.
Solution:

Question 8.
Rectify the following error
1. Salary paid to manager ₹ 8,000 debited to his personal account.
2. Total of discount column in the debit side of the cash book is wrongly cast short. ₹ 540.
3. Total of sales book has been added ₹ 2,400 excess
4. ₹ 230 received in respect of a book debt was posted to sales account
5. Goods sold for ₹ 3,873 to Raju were returned to us and recorded in sales book.
Solution:

Question 9.
When a Trial Balance failed to agree, ₹ 37,900 was transferred to the credit of suspense account. The following errors were discovered. Give journal entries and prepare suspense account.
1. Sales day book was under cast by ₹ 40,000
2. Purchase of machinery for ₹ 60,000 was passed through the purchase book.
3. Goods sold to Velu for ₹ 4,500 was posted to his account as ₹ 5,400.
4. Purchase returns book was overcast by ₹ 2,000
5. The total of sales book from one page was carried forward to the next page as ₹ 12,000 instead of ₹ 11,000.
Solution:
Rectification of Entries

Suspense Account

Question 10.
In considering the trial balance, a book-keeper finds that debit total exceeds the credit total by ₹ 3,520. The amount is placed to the credit of a newly opened suspense account. The following mistakes were discovered. Pass the necessary entries for rectifying the mistakes and show the suspense account.
a) Sales day book was overcast by ₹ 1000
b) A sale of ₹ 500 to Rajesh was wrongly debited to Ramesh
c) General expenses ₹ 180 was posted as ₹ 800.
d) Cash received from Ganesh was debited to his account ₹ 1,500
e) While carrying forward the total of one page of the purchases day book to the next the amount of ₹ 12,350 was entered as ₹ 13,250.
Solution:
Rectification of Entries

Suspense Account

Question 11.
Pass journal entries to rectify the following entries
1. ₹ 4,500 received in respect of a book debt was posted to sales account
2. Defective goods worth ₹ 260 returned to Saran were recorded through sales returns book.
3. Goods sold for ₹ 950 to Rakesh were returned to us and recorded in sales book.
4. A purchase of ₹ 2,100 from Banu on the last day of the year was taken into stock, but the invoice was not passed through the purchase book.
Solution:
Rectification of Entries

Question 12.
Show how you will rectify the following entries .
1. A Credit sales of ₹ 650 to Raja was debited to Kaja.
2. A purchase of goods for ₹ 750 from Shaji was debited to his account.
3. An office typewriter purchased for ₹ 6,500 was debited to Repairs account.
4. A sum of ₹ 3,900 received from a debtor was debited to his account.
5. Purchase of goods for the consumption of proprietor were debited to purchase account ₹ 1,000
Solution:
Rectification of Entries

Question 13.
Write down the rectifying journal entries for the following errors and show the suspense account.
1. The sales returns books has been under cast by ₹ 5,000
2. Goods worth ₹ 1,500 sold to Batiya has been credited to his account.
3. Purchase of furniture ₹ 7,000 has been entered in the purchases account.
4. Cash Rs.4,500 from Aadhira has been posted to his account as ₹ 5,400.
5. A bill received from X for ₹ 4,000 has been posted to Bills payable account.
Solution:
Rectification of Entries

Suspense Account

IV. Long Question Answers

Question 1.
Explain the steps to he followed to locate errors after preparing trial balance
Answer:
The following steps are to be followed to locate errors after preparing trial balance
1. The totals of debit and credit columns of trial balance are to be checked.

2. The balances of various ledger accounts shown in the trial balance are to be checked to ensure whether they are shown in the respective columns (debit or credit).

3. The difference in the trial balance must be halved and compared with balances of ledger to verify whether any ledger balance is recorded on the wrong side of the trial balance.

4. The totals of all the subsidiary books are to be checked, especially if the difference is ₹1 to ₹ 100 etc.

5. If the difference is divisible by 9 the difference may be due to transposition of figures in the books. (Writing ₹ 127 as ₹ 172). Hence, the possibilities of transposition of figures shall be checked.

6. The accounts of all the creditors and debtors are to be verified.

7. Postings from the subsidiary books to different accounts in the ledger are to be checked.

8. The correctness of the balances of various ledger accounts is to be ensured.

9. All the amounts carried forward from one page to the next are to be verified.

10. If the differences still exists, as a final step all the entries in the journals should be verified.

Question 2.
Briefly explain the Classification or errors
Answer:

The failure of the accountant to record a transaction or an item in the books of accounts is known as an error of omission. It can be complete omission or partial omission.
1. Error of complete omission – It means the failure to record a transaction in the journal or subsidiary book or failure to postboth the aspects in ledger. This error affects two or more accounts.

2. Error of partial omission – When the accountant has failed to record a part of the transaction, it is known as error of partial omission. This error usually occurs in posting. This error affects only one account.

3. Error of commission – When a transaction is incorrectly recorded, it is known as error of commission. It usually occurs due to lack of concentration or carelessness of the accountant.

Errors of Principle: It means the mistake committed in the application of fundamental accounting principles inrecording a transaction in the books of accounts.

4. Compensating errors – The errors that make up for each other or neutralize each other are known as compensatingerrors. These errors may occur in related or unrelated accounts. Thus, excess debit or credit inoneaccount may be compensated by excess credit or debit in some other account. These arealso known as offsetting errors.

5. Errors disclosed by the trial balance and errors not disclosed by thetrial balance – Generally, one-sided errors are revealed by trial balance. They will cause disagreement of totals of debit balances and credit balances. Two-sided errors are not revealed by trial balance.

V. Additional Sums

Question 1.
Rectify the following errors
i) Purchases book overcast by ₹ 1,300
ii) Sales book under cast by ₹ 2,500
Solution:
i) Credit – Purchases A/c with ₹ 1,300
ii) Credit – Sales A/c with ₹ 2,500

Question 2.
Rectify the following errors
i) Purchases return book overcast by ₹ 750
ii) Sales return book under cast by ₹ 600
Solution:
i) Debit – Purchases return A/c with ₹ 750
ii) Debit – Sales return A/c with ₹ 600

Question 3.
Rectify the following errors
i) Purchases book is carried forward ₹ 850 Less
ii) Sales book total is carried toward ₹ 2,500 More
Solution:
i) Debit – Purchases A/c with ₹ 850
ii) Debit – Sales A/c with ₹ 2,500

Question 4.
Rectify the following errors
i) A total of ₹ 7,580 in the purchases book has been carried forward as ₹ 8,570
ii) The total of the sales book ₹ 7,500 or page 20 was carried forward to page 21 as ₹ 5,570
iii) Purchases return book was carried forward as ₹ 1,520 instead of ₹ 5,120
Solution:
i) Credit – Purchases A/c with ₹ 990
ii) Credit – Sales A/c with ₹ 1,980
iii) Credit – Purchases return A/c with ₹ 3,600

Question 5.
Rectify the following errors
i) Purchases from Bagavathi for ₹ 4,500 has been posted to the debit side of her account
ii) Sales to Vijay for ₹ 1,520 has been posted to his credit as ₹ 1,250
Solution:
i) Purchases from Bagavathi should have been posted to the credit of Bagavathi’s A/c, but it has been . debited. Hence, credit Bagavathi’s A/c with double the amount i.e, ₹ 9,000

ii) Sales to Vijay has to be debited in Vijay’s account but his account is credited with ₹ 1,250. Hence Debit Vijay’s A/c with ₹ 1,250 to ₹ 1,520 i.e, ₹ 2,770

Question 6.
Rectify the following errors
i) Purchases from should for ₹ 750 has been omitted to be posted to the personal A/c
ii) Sales to Khader for ₹ 780 has been posted to his account as ₹ 870
Solution:
i) This is an error of omission. Posting must be to the credit of Shakila’s A/c. Hence, post ₹ 750 to the credit of Skakila’s A/c.

ii) Here Khader’s has been debited with a wrong amount i.e., with excess amount. To rectify this error, the excess amount must be credited to his account. Hence, Credit Khader’s A/c with ₹ 90.

Question 7.
The following errors were found in the book of pradhu. Give the necessary entries to correct them.
i) Salary of ₹ 10,000 paid to Murali has been debited to his personal account.
ii) ₹ 3,500 paid for a typewriter was charged to office expenses account.
iii) ₹ 8,000 paid for furniture purchased has been charged to purchases account.
iv) Repairs made were debited to building account for ₹ 500
v) An amount of ₹ 5,000 withdrawn by the proprietor for his personal use has been debited to trade expenses account.
iv) ₹ 2,000 received from Shanthi and Co. has been wrongly entered as from Shakila and Co.
Solution:
In the book of Prathu – Rectification of Errors

Question 8.
Give journal entries to rectify the following errors
i) Purchases of goods from Devi amounting to ₹ 25,000 has been wrongly passed through the sales Book.
ii) Credit sale of goods ₹ 30,000 to Rajan has been wrongly passed through the purchases Book
iii) Sold old furniture for ₹ 3,500 passed through the sales Book.
iv) Paid wages for the construction of Building debited to wages account ₹ 1,00,000
v) Paid ₹ 10,000 for the installation of machinery debited to wages account.
vi) On 31st December 2003 goods worth ₹ 5,000 were retuned by Manjia and were taken into stock on the same date, but no entry was passed in the books.
Solution:
Rectification of Errors

Question 9.
An accountant could not tally the Trial Balance. The difference of ₹ 5,180 was Temporality placed to the credit of suspense account for preparing the final account. The following errors were taken located.
i) Commission of ₹ 500 paid, was posted twice, once to, discount allowed account and once to commission account.
ii) The sales book was under cast by ₹ 1,000
iii) A Credit sales of ₹ 2,780 to Raja though correctly entered in sale book, was posted wrongly to her account as Rs.3,860
iv) A Credit purchase from Nataraj of ₹ 1,500, though correctly entered in purchases book, was wrongly debited to his personal account.
v) Discount column of the payments side of the book was wrongly added as ₹ 2,800 instead of ₹ 2,400
You are required to
i) Pass the necessary rectifying entries.
ii) Prepare suspense Account.
Solution:
Rectification of Errors

Suspense Account

Question 10.
Rectify the following Journal Entries
Rectification of Errors

Solution:
Rectification of Errors

Question 11.
Rectify the following Errors
i) ₹ 12,000 paid of salary to cashier Govind, stands debited to his personal account.
ii) An amount of ₹ 5,000 with drawn by the proprietor for his personal use has been debited to trade Expenses A/c
iii) Cash received from Bala ₹ 300 was credited to Balu.
iv) A credit sale of ₹ 2,000 to Janakiram has been wrongly passed through the purchase book.
Solution:
Rectification of Errors

Question 12.
Rectify the following Errors
i) Repairs made were debited to building account ₹ 5,000
ii) Mahesh networked goods worth ₹ 2,000 no Entry was passed in the Book to this Effects
iii) Purchases of goods from Antony amounting to ₹ 1,500 has been debited to his accounts.
iv) ₹ 5,200 paid for the purchases of typewriter was charged to office expenses account.
Solution:
Rectification of Errors

Question 13.
Rectify the following Errors
i) Credit purchases of goods from Madhan of ₹ 300 has been wrongly Entered in the sales book.
ii) ₹ 500 received from Seivan has been credited to Selvi’s account
iii) ₹ 1,000 received as interest was credited to commission account.
iv) Sales book total ₹ 878 was wrongly totalled as ₹ 788.
v) The total of this discount column, on the debit side of the cash book has been added short by ₹ 400.
Solution:
Rectification of Errors

Question 14.
Rectify the following Errors
A Book keeper found his trial balance not balanced, placed the difference amount in the suspense account and subsequently found the following errors
a) Sales book was over cast by ₹ 1,500
b) ₹ 2900 received from Vani in full settlement of her account of ₹ 3,000 was posted in cash book but omitted to be entered in her account.
c) The total of the sales book ₹ 12,000 was debited to sales return accounts.
d) ₹ 1,000 received as interest was credited to interest as ₹ 100 Give rectifying entries and show the suspense account.
Solution:
Rectification of Errors

Suspense Account

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Accountancy Guide Pdf Chapter 8 Bank Reconciliation Statement Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 8 Bank Reconciliation Statement

11th Accountancy Guide Bank Reconciliation Statement Text Book Back Questions and Answers

I. Multiple Choice Questions

Choose the correct answer.

Question 1.
A bank reconciliation statement is prepared by ________.
a) Bank
b) Business
c) Debtor to the business
d) Creditor to the business
Answer:
b) Business

Question 2.
A bank reconciliation statement is prepared with the help of ________.
a) Bank statement
b) Cash book
c) Bank statement and bank column of the cash book
d) Petty cash book
Answer:
c) Bank statement and bank column of the cash book

Question 3.
Debit balance in the bank column of the cash book means ________.
a) Credit balance as per bank statement
b) Debit balance as per bank statement
c) Overdraft as per cash book
d) None of the above
Answer:
a) Credit balance as per bank statement

Question 4.
A bank statement is a copy of ________.
a) Cash column of the cash book
b) Bank column of the cash book
c) A customer’s account in the bank’s book
d) Cheques issued by the business
Answer:
c) A customer’s account in the bank’s book

Question 5.
A bank reconciliation statement is prepared to know the causes for the difference between:
a) The balance as per the cash column of the cash book and bank column of the cashbook
b) The balance as per the cash column of the cash book and bank statement
c) The balance as per the bank column of the cash book and the bank statement
d) The balance as per petty cash book and the cash book
Answer:
c) The balance as per the bank column of the cash book and the bank statement

Question 6.
When money is withdrawn from bank, the bank ________.
a) Credits customer’s account
b) Debits customer’s account
c) Debits and credits customer’s account
d) None of these
Answer:
b) Debits customer’s account

Question 7.
Which of the following is not the salient feature of bank reconciliation statement?
a) Any undue delay in the clearance of cheques will be shown up by the reconciliation
b) Reconciliation statement will discourage the accountant of the bank from embezzlement
c) It helps in finding the actual position of the bank balance
d) Reconciliation statement is prepared only at the end of the accounting period
Answer:
d) Reconciliation statement is prepared only at the end of the accounting period

Question 8.
Balance as per cash book is ₹ 2,000. Bank charge of ₹ 50 debited by the bank is not yet shown in the cash book. What is the bank statement balance now?
a) 1,950 credit balance
b) 1,950 debit balance
c) 2,050 debit balance
d) 2,050 credit balance
Answer:
a) 1,950 credit balance

Question 9.
Balance as per bank statement is 1, 000. Cheque deposited, but not yet credited by the bank is 2, 000. What is the balance as per bank column of the cash book?
a) 3,000 overdraft
b) 3,000 favourable
c) 1,000 overdraft
d) 1,000 favourable
Answer:
b) 3,000 favourable

Question 10.
Which one of the following is not a timing difference?
a) Cheque deposited but not yet credited
b) Cheque issued but not yet presented for payment
c) Amount directly paid into the bank
d) Wrong debit in the cash book
Answer:
d) Wrong debit in the cash book

II. Very Short Answer Questions

Question 1.
What is meant by bank overdraft?
Answer:
An amount of money that a customer with a bank account is temporarily allowed to owe to the bank. An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero.

Question 2.
What is bank reconciliation statement?
Answer:
The bank reconciliation statement is a statement that reconciles the balance as per the bank column of cash book with the balance as per the bank statement by giving the reasons for such difference along with the amount. The internal record of the business (bank column of cash) can be reconciled with the external record (bank statement).

Question 3.
State any two causes of disagreement between the balance as per bank column of cash book and bank statement.
Answer:

1. Cheques issued but not presented for payment.
2. Cheques paid into bank for collection but not yet collected.

Question 4.
Give any two expenses which may be paid by the banker as per standing instruction.
Answer:

1. Bank Charges
2. Interest

Question 5.
Substitute the following statements with one word/phrase.
Answer:

1. A copy of customer’s account issued by the bank – PASS BOOK
2. Debit balance as per bank statement – BANK OVERDRAFT
3. Statement showing the causes of disagreement between the balance as per cash book and balance as per bank statement – BANK RECONCILIATION STATEMENT

Question 6.
Do you agree on the following statements? Write “yes” if you agree, and write “no” if you Disagree
Answer:

1. Bank reconciliation statement is prepared by the banker. – Yes
2. Adjusting the cash book before preparing the bank reconciliation statement is compulsory. – No
3. Credit balance as per bank statement is an overdraft. – No
4. Bank charges debited by the bank increases the balance as per bank statement. – No
5. Bank reconciliation statement is prepared to identify the causes of differences between balance as per bank column of the cash book and balance as per cash column of the cash book. – Yes

III. Short Answer Questions

Question 1.
Give any three reasons for preparing bank reconciliation statement.
Answer:

1. To identify the reasons for the difference between the bank balance as per the cash book and bank balance as per bank statement.
2. To identify the delay in the clearance of cheques.
3. To ascertain the correct balance of bank column of cash book.
4. To discourage the accountants of the business as well as bank from misusing funds.

Question 2.
What is meant by the term “cheque not yet presented?”
Answer:

1. When the cheques are issued by the business, it is immediately entered on the credit side of the cash book by the business.
2. This may not be entered in the bank statement on the same day.
3. It will be entered in the bank statement only after it is presented with the bank.

Question 3.
Explain why does money deposited into bank appear on the debit side of the cash book, but on the credit side of the bank statement?
Answer:

1. The assets will be entered in the debit side. The balance of deposits held by bank is recorded.
2. It denotes a favourable balance as per cash boor unfavourable balance as per the pass book.
   On the debit side, receipts of cash and cheques are recorded.
3. Deposited cash in to bank decreases the amount of cash available and is, therefore, credited to cash account (cash column of the cash book).
4. But, it also increases the bank balance and is therefore, debited to bank account (bank column of the cash book).

Question 4.
What will be the effect of interest charged by the bank, if the balance is an overdraft?
Answer:

1. If the business has taken any loan or overdrawn, interest has to be paid by the business.
2. The entries for bank charges and interest are made in the bank statement.
3. The cash book shows more balance than the bank statement.

Question 5.
State the timing differences in BRS with examples.
Answer:
Cheques issues but not presented for payment for payment:
When the cheques are issued by the business, it is immediately entered on the credit side of the cash book by the business. But, this may not be entered in the bank statement on the same day.

lt will be entered in the bank statement only after it is presented with For example, the balances as per cash book and bank statement are ₹ 20,000 for X & Co. X & Co. issued a cheque in favour of Y & Co for ₹ 10,000, on 27th March 2017. So, X & Co’s cash book is credited with ₹ 10,000 on 27th March 2017. But, the cheque is presented to bank on 2nd April 2017.

In case, bank sends a statement to X & Co, upto 31st March 2017, it will not contain this transaction. As a result, there will be a difference of 10,000, between balance shown as per cash book and balance as per bank statement.

Cheques deposited into bank but not yet credited:
When the cheques are deposited into bank, the amount is debited in the cash book on the same day. But, these may not be shown in the bank pass book on the same day because these will be entered in the bank statement only after the collection of the cheques.

For example, the balances as per cash book and bank statement are ₹ 20,000 for X & Co. X & Co. receives a cheque on 25th March 2016, from ABC Limited for ₹ 5,000. On the same day, X & Co, debits its cash book with ₹ 5,000.

But bank credits X & Co’s account only when the cheque is collected from ABC Limited’s bank. This shows that is a time gap between depositing the cheque by the customer (X & Co) and collection of cheque by the bank.

Bank Charges and interest on loan and overdraft charged by the bank:
The bank has to cover the cost of running the customer’s account. So debit is given to the account of the business towards bank charges.

Also, if the business had taken any loan or over drawn, interest has to be paid by the business. These entries for bank charges and interest are made in the bank statement. But, the entry is made in the cash book only when the bank statement is received by the business.

Till then, the cash book shows more balance than bank statement. For example, the opening balance as per cash book and the bank statement as on 1st March 2017 is ₹ 7,000. Bank debits for bank charges ₹ 300 as on 27th March 2017. But there is no entry for the same in the cash book as on such date.

IV. Exercises

Question 1.
From the following particulars prepare a bank reconciliation statement of Jayakumar as on 31st December, 2016.
a) Balance as per cash book ₹ 7,130
b) Cheque deposited but not cleared ₹ 1,000
c) A customer has deposited ₹ 800 into the bank directly
Solution:
Bank reconciliation statement of Jayakumar as on 31st December, 2016.

Question 2.
From the following particulars of Kamakshi traders, prepare a bank reconciliation statement as on 31st March, 2018.
a) Debit balance as per cash book ₹ 10,500
b) Cheque deposited into bank amounting to ₹ 5,500 credited by bank, but entered twice in the cash book
c) Cheques issued and presented for payment amounting to ₹ 7,000 omitted in the cash book
d) Cheque book charges debited by the bank ₹ 200 not recorded in the cash book.
e) Cash of ₹ 1,000 deposited by a customer of the business in cash deposit machine not recorded in the cash book.
Solution:
Bank reconciliation statement of Kamakshi traders as on 31st March, 2018.

Question 3.
From the following information, prepare bank reconciliation statement to find out the bank statement balance as on 31st December, 2017.

Solution:
Bank reconciliation statement of Kamakshi traders as on 31st March, 2018.

Question 4.
On 31st March, 2017, Anand’s cash book showed a balance of ₹ 1,12,500, Prepare bank reconciliation statement,
a) He had issued cheques amounting to ₹ 23,000 on 28,3.2017, of which cheques amounting to ₹ 9,000 have so far been presented for payment.

b) A cheque for ₹ 6,300 deposited into bank on 27.3.2017, but the bank credited the same only on 5th Aprii 2017.

c) He had also received a cheque for ₹ 12,000 which, although entered by him in the cash book, was not deposited in the bank.

d) Wrong credit given by the bank on 30th March 2017 for ₹ 2,000.

e) On 30th March 2017, a bill already discounted with the bank for ₹ 3,000 was dishonoured, but no entry was made in the cash book.

f) Interest on debentures of ₹ 700 was received by the bank directly.

g) Cash sales of ₹ 4,000 wrongly entered in the bank column of the cash book.
Solution:
Bank reconciliation statement of Mr, Anand as on 31st March, 2017

Question 5.
From the following particulars of Siva and Company, prepare a bank reconciliation state- ment as on 31st December, 2017.
a) Credit balance as per cash book ₹ 12,000
b) A cheque of ₹ 1,200 Issued and presented for payment to the bank, wrongly credited in the cash book
c) Debit side of bank statement was under cast by ₹ 100
Solution:
Bank reconciliation statement as on 31st December, 2017.

Question 6.
From the following particulars of Raheem traders, prepare a bank reconciliation statement as on 31st March, 2018.
a) Overdraft as per cash book ₹ 2,500
b) Debit side of cash book was under cash by ₹ 700
c) Amount received by bank through RTGS amounting to ₹ 2,00,000, omitted in the cash book.
d) Two cheques issued for ₹ 1,800 and ₹ 2,000 on 29th March 2018. Only the second cheque is presented for payment.
e) Insurance premium on car for ₹ 1,000 paid by the bank as per standing instruction not recorded in the cash book
Solution:
Bank reconciliation statement as on 31st March, 2018.

Question 7.
From the following information, prepare bank reconciliation statement as on 31st December,

Solution:
Bank reconciliation statement as on 31st December, 2017

Question 8.
Prepare bank reconciliation statement from the following data.

Solution:
Bank reconciliation statement

Question 9.
From the following particulars of Veera traders, prepare a bank reconciliation statement as on 31st December, 2017.
a) Credit balance as per bank statement ₹ 6,000
b) Amount received by bank through NEFT for ₹ 3,500, entered twice in the cash book.
c) Cheque dishonoured amounting to ₹ 2,500, not entered in cash book.
Solution:
Bank reconciliation statement as on 31st December, 2017.

Question 10.
Prepare bank reconciliation statement from the following data and find out the balance as per cash book as on 31st March, 2018.

Solution:
Bank reconciliation statement as on 31st March, 2018.

Question 11.
Ascertain the cash book balance from the following particulars as on 31st December, 2017
i) Credit balance as per bank statement ₹ 2,500
ii) Bank charges of ?60 have not been entered in the cash book
iii) Cheque deposited on 28th December 2017 for ₹ 1,000 was not yet credited by the bank
iv) Cheque issued on 24th December 2017 for ₹ 700, not yet presented for payment
v) A dividend of ₹ 400 collected by the bank directly but not entered in the cash book
vi) Acheque of ₹ 600 had been dishonoured, but no entry was made in the cash book
vii) Interest on term loan ₹ 1,200 debited by bank but not accounted in cash book
viii) No entry had been made in the cash book for a trade subscription of ₹ 500 paid vide banker’s order on 23rd December 2014
Solution:
Bank reconciliation statement as on 31st December, 2017.

Question 12.
From the following particulars of Raja traders, prepare a bank reconciliation statement as on 31st January, 2018.
a) Balance as per bank statement ₹ 5,000

b) Cheques amounting to ₹ 800 had been recorded in the cash book as having been deposited into the bank on 25th January 2018, but were entered in the bank statement on 2nd February 2018.

c) Amount received by bank through NEFT amounting to ₹ 3,000, omitted in the cash book.

d) Two cheques issued for ₹ 3,000 and ₹ 2,000 on 29th March 2018. Only the first cheque is presented for payment.

e) Insurance premium on motor vehicles for ₹ 1,000 paid by the bank as per standing instruction not recorded in the cash book.

f) Credit side of cash book was undercast by ₹ 700

g) Subsidy received directly by the bank from the state government amounting to ? 10,000, not entered in cash book.
Solution:
Bank reconciliation statement of Mr. Raja traders as on 31st January, 2018.

Question 13.
From the following particulars of Simon traders, prepare a bank reconciliation statement as on 31st March, 2018.
a) Debit balance as per bank statement ₹ 2,500
b) Cheques deposited amounting to ₹ 10,000, not yet credited by bank.
c) Payment through net banking for ₹ 2,000, omitted in the cash book.
Solution:
Bank reconciliation statement as on 31st March, 2018.

Question 14.
From the following particulars, ascertain the cash book balance as on 31st December, 2016.
i) Overdraft balance as per bank statement ₹ 1,26,640
ii) Interest on overdraft entered in the bank statement, but not yet recorded in cash book ₹ 3,200
iii) Bank charges entered in bank statement, but not found in cash book ₹ 600
iv) Cheques issued, but not yet presented for payment ₹ 23,360
v) Cheques deposited into the bank but not yet credited ₹ 43,400
vi) Interest on investment collected by the bank ₹ 24,000
Solution:
Bank reconciliation statement as on 31st December, 2016.

Question 15.
From the following particulars of John traders, prepare a bank reconciliation statement as on 31st March, 2018.
a) Bank overdraft as per bank statement ₹ 4,000

b) Cheques amounting to ₹ 2,000 had been recorded in the cash book as having been deposited into the bank on 26th March 2018, but were entered in the bank statement on 4th April 2018.

c) Amount received by bank through cash deposit machine amounting to ₹ 5,000, omitted in the cash book.

d) Amount of ₹ 3,000 wrongly debited to John traders account by the bank, for which no details are available.

e) Bills for collection credited by the bank till 29th March 2017 amounting to ₹ 4,000, but no advice received by John traders.

f) Electricity charges made through net banking for ₹ 900 was wrongly entered in cash column of the cash book instead of bank column.
Solution:
Bank reconciliation statement as on 31st March, 2018.

Question 16.
Prepare bank reconciliation statement from the following data.

Solution:
Prepare bank reconciliation statement.

Question 17.
Prepare bank reconciliation statement as on 31st March, 2017 from the following extracts of cash book and bank statement.
Cash book (Bank column only)

Bank statement

Solution:
Bank reconciliation statement as on 31st March, 2017

Question 18.
A trader received his bank statement on 31st December, 2017 which showed an overdraft balance of ₹ 12,000. On the same day, his cash book showed a debit balance of ₹ 2,000.
Analyse the following transactions. Choose the possible causes and prepare a bank reconciliation statement to show the causes of differences.
a) Cheque deposited for ₹ 2,000 on 21st December, 2017. Bank credited the same on 26th December, 2017.

b) Cheque issued for payment on 26th December, 2017 amounting to ₹ 2,500, not yet presented until 31st, December, 2017.

c) Bank charges amounting to ₹ 200 not yet entered in the cash book.

d) Online payment for ₹ 1,500 entered twice in the cash book.

e) Cheque deposited amounting to ₹ 1,000, but omitted in the cash book. The same cheque was dishonoured by bank, but not yet entered in cash book.

f) Cheque deposited, not yet credited by bank amounting to ₹ 17,800.
Solution:
Bank reconciliation statement as on 31st December, 2017.

11th Accountancy Guide Bank Reconciliation Statement Additional Important Questions and Answers

I. Choose the correct answer.

Question 1.
A Bank Reconciliation Statement is prepared with the help of ________.
a) Bank statement and bank column of the cash book
b) Journal
c) Ledger
d) None of the above
Answer:
a) Bank statement and bank column of the cash book

Question 2.
Bank reconciliation statement is ______
a) Part of bank statement
b) Part of the cash book
c) A separate statement
d) A sub-division of journal
Answer:
a) Part of bank statement

Question 3.
Uncollected cheques are also known as ______.
a) Outstanding cheques
b) Uncleared cheques
c) Outstation cheques
d) Both a & c
Answer:
d) Both a & c

Question 4.
When cheque is not paid by the bank it is called as ______.
a) Honoured
b) Endorsed
c) Dishonoured
d) None of these
Answer:
c) Dishonoured

Question 5.
A bank reconciliation statement is prepared by ______.
a) Banker
b) Accountant of the business
c) Auditors₹
d) None of the above
Answer:
b) Accountant of the business

Question 6.
The cheque which is deposited into bank but not cleared at the end of a particular year is called ______.
a) Uncredited cheque
b) Unpresented cheque
c) Omitted cheque
d) Dishonoured cheque
Answer:
b) Unpresented cheque

Question 7.
In cash book bank charges recorded in the ______.
a) Credit side
b) Debit Side
c) Both a & b
d) None of the above
Answer:
a) Credit side

Question 8.
An amount of Rs,2G0Q is debited twice in the bank statement. What will the reflect when overdraft as per the cash book is the starting point ______.
a) ₹ 2000 will be deducted
b) ₹ 2000 will be added
c) ₹ 4000 will be deducted
d) ₹ 4000 will be deducted
Answer:
b) ₹ 2000 will be added

Question 9.
If any amount is directly deposited into the bank then ______.
a) Cash book will show less balance & bank book will show more
b) Cash book will show more balance & bank book will show less
c) Cash book will show double balance
d) Bank book will show double
Answer:
a) Cash book will show less balance & bank book will show more

Question 10.
Which of the following error results in unadjusted cash book balance?
a) Outstanding cheques
b) Unpresented Cheques
c) deposit in Transit
d) Omission of Bank charges
Answer:
d) Omission of Bank charges

Question 11.
Credit balance in the bank column of the cash book means ______.
a) Credit balance as per bank statement
b) Debit balance as per bank statement
c) Overdraft as per cash book
d) None of the above
Answer:
b) Debit balance as per bank statement

Question 12.
When balance as per Cash Book is the starting point, to ascertain balance as per bank statement interest allowed by Bank is ______.
a) Subtracted
b) added
c) not adjusted
d) None of the above
Answer:
b) added

Question 13.
When balance as per Cash Book is the starting point, to ascertain the balance as per bank statement interest charged by Bank is:
a) Added
b) subtracted
c) not adjusted
d) None of the above
Answer:
b) subtracted

Question 14.
When the balance as per Cash Book is the starting point to ascertain balance as per bank statement, direct deposits by customers are:
a) Added
b) subtracted
c) not adjusted
d) None of the above
Answer:
a) Added

Question 15.
When the balance as per Cash Book is the starting point to ascertain balance as per bank statement, direct payments by bank are:
a) Added
b) subtracted
c) not adjusted
d) None of the above
Answer:
b) subtracted

Question 16.
______ is not possible to have unfavourable cash balance in the cash book.
a) Bank statement
b) Bank overdraft
c) Cash overdraft
d) Cash book
Answer:
b) Bank overdraft

Question 17.
Bank overdraft is available only to the ______ holders.
a) Saving Account
b) Fixed Account
c) Joint Account
d) Current Account
Answer:
d) Current Account

Question 18.
______ is simply a copy of the customer’s account in the books of a bank.
a) Cash book
b) Bank statement
c) Bank Account
d) None of these
Answer:
b) Bank statement

Question 19.
A bank statement is a copy of ______ .
a) the cash column of a customer’s cash book
b) the bank column of a customer’s cash book
c) the customer’s account in the bank’s ledger
d) none of these
Answer:
c) the customer’s account in the bank’s ledger

Question 20.
Debit balance in the Cash Book means ______.
a) overdraft as per bank statement
b) credit balance as per bank statement
c) overdraft as per Cash Book
d) none of these
Answer:
b) credit balance as per bank statement

II. Additional Questions & Answers

Question 1.
Differences between bank column of cash book and bank statement.
Answer:
Bank column of cash book:

• It is prepared by business concern.
• Cash deposits are entered on the debit side.
• Cash withdrawals are entered on the credit side.
• Cheque deposits are debited on the day of deposit.
• Cheques issued are credited on the day of issue of cheque.
• Collections and payments as per standing instructions of the business are entered only after checking with the bank statement.
• It is balanced at the end of a specific period.

Bank statement:

• It is prepared by bank (banker).
• Cash deposits are entered in the credit column.
• Cash withdrawals are entered in the debit column.
• Cheque deposits are credited only at the time of realisation of cheque.
• Cheques issued by customers are debited by bank on the date on which the payment is made.
• Collections and payments as per standing instructions of the business are entered in the banker’s book on the date of realisation or payment.
• It is balanced after each transaction.

Question 2.
What are the items recorded on the debit side of the bank column of the cash book?
Answer:

1. Cheques deposited but not credited.
2. Credits in the pass book only.
   • Interest credited in bank statement
   • Dividend and other income
   • Direct deposit by a party
3. Any error in cash book/ bank statement which has the effect of increasing the balance as per bank statement.

Question 3.
What are the items recorded on the credit side of the bank column of the cash Book?
Answer:

1. Cheques deposited but not credited
2. Cheques dishonoured but not entered in cash book
3. Debits in bank statement only
   • Interest debited
   • Insurance premium, loan instalment, etc., paid as per standing instructions
   • Direct payment by banker
4. Any error in cash book/ bank statement which has the effect of decreasing the balance as per bank statement

Question 4.
What is meant by the term “Cheques deposited into bank but not yet credited?”
Answer:
When the cheques are deposited into bank, the amount is debited in the cash book on the same day. But, these may not be shown in the bank pass book on the same day because these will be entered in the bank statement only after the collection of the cheques.

For example, the balances as per cash book and bank statement are ₹ 20,000 for X & Co. X & Co. receives a cheque on 25th March 2016, from ABC Limited for ₹ 5,000. On the same day, X & Co, debits its cash book with ₹ 5,000.

But bank credits X & Co’s account only when the cheque is collected from ABC Limited’s bank. This shows that is a time gap between depositing the cheque by the customer (X & Co) and collection of cheque by the bank.

Question 5.
What will be the effect of Interest and dividends collected by the bank?
Answer:
The bank may collect dividends on its customer’s investment in shares and also interest on any investment. The entry for this will be made in the bank statement on the date of collection. But the entry is made in the cash book only when the bank statement is received by the customer. Till then, the cash book shows less balance than the bank statement.

Question 6.
What will be the effect of Dishonour of cheques and bills?
Answer:
When the cheque is received from outside parties, it is deposited with the bank and debited in the cash book. If the cheque is dishonoured, the bank cannot collect the amount of such cheque from outside parties’ bank. It is not credited in the bank statement. As a result of this, the two records would differ.

While discounting the bills receivables, in the cash book it is entered in the debit side and in the bank statement it is credited. When the bill is presented by the bank to the drawee of the bill and the payment is not received, the bank debits the same to cancel the credit.

But, credit is made in the cash book only when the customer gets the entries made in the bank statement is received. The bank may also charge some amount for such dishonour.

Question 7.
What will be the effect of Amount paid by parties directly into the bank?
Answer:
Sometimes, debtors or the customers of the business may directly deposit the money into bank account of the business. It may be done by directly visiting the branch of the bank by paying cash (including NEFT, RTGS) or swiping debit or credit or business card or depositing the money in cash deposit machine or transfer through online banking facility.

This will be credited in the banker’s book. But the entry is made in the cash book only when the bank statement is received by the customer. Until then, the cash book shows less balance than bank statement.

Question 8.
What will be the effect of Amount paid directly by the bank to others?
Answer:
Sometimes the bank may be instructed to make payments such as, insurance premium, instalment of loan, etc., as an agent of the customer on behalf of its customer. In all such cases, debit is made in bank statement. But, the entry is made in the cash book only when the bank statement is received by the customer. Till then, the cash book shows more balance than bank statement.

Question 9.
What will be the effect of Bills collected by the bank on behalf of its customers?
Answer:
When goods are sold by the business, the documents may be sent through the bank. When the bank collects the amount, it is credited in bank records. But, the entry is made in the cash book only when the bank statement is received by the business. Till then, the bank statement shows more balance than cash book.

Question 10.
Explain the differences arising due to errors in recording the entries.
Answer:
Errors committed in recording the transactions by the business in the cash book:
Sometimes, errors may be committed in the cash book. For example, omission or wrong recording of transaction relating to cheques deposited or issued, wrong balancing, etc. In these cases, obviously, there will be differences between bank balance as per bank statement and bank balance as per cash book.

Errors committed in recording the transactions by the bank:
Sometimes errors may be committed in the banker’s book. For example, omission or wrong recording of transaction relating to cheques deposited and wrong balancing. In these cases, obviously, there will be differences between bank balance as per bank statement and bank balance as per cash book.

Question 11.
What is the need for bank reconciliation statement?
Answer:

1. To identify the reasons for the difference between the bank balance as per the cash book and bank balance as per bank statement.
2. To identify the delay in the clearance of cheques.
3. To ascertain the correct balance of bank column of cash book.
4. To discourage the accountants of the business as well as bank from misusing funds.

Additional Sums:

Question 1.
Prepare bank reconciliation statement of Mr. Bala as on 31.03.2013.
a) Balance as per cash book ₹ 15,000
b) Cheques deposited but not cleared ₹ 1,000
c) Cheques issued but not yet present for payments ₹ 1500 d. Interest allowed by bank ₹ 200
Solution:
Prepare bank reconciliation statement

Question 2.
Prepare bank Reconciliation statement to find out balance as per bank statement on 31st March 2018,
1. Cheques deposited but not yet collected by the bank ₹ 1,000
2. Cheques issued but not yet presented for payment ₹ 2,000
3. Bank Interest Charged ₹ 200
4. Rent paid by bank as per standing Instruction ₹ 400
5. Cash book balances ₹ 600
Solution:
Prepare bank reconciliation statement

Question 3.
Form the following particulars of Ashok and company; prepare a bank reconciliation statement as on 31st March 2018.
a) Credit balance as per cash book ₹ 10,000
b) Cheques issued but not yet presented for payment ₹ 10,000
c) Cheques Deposited but not credited ₹ 9000
d) Rent collected by the bank as per standing Instruction ₹ 500
Solution:
Bank Reconciliation statement Mr. Ashok as on 31st March 2018

Question 4.
From the following information, Prepare bank Reconciliationstatement of Mr. Mohan as on 31st Dec. 2017 to find out the balance as per bank statement.
i) Overdraft as per cash book – 20000
ii) Cheques deposited but not yet credited – 10000
iii) Amount wrongly deposited by bank – 600
iv) Interest on overdraft debited by bank – 2000
v) Cheque issued but not yet present for payment – 2000
vi) Payment received from the customer directly by the bank – 1000
Solution:
Bank Reconciliation statement Mr. Mohan as on 31st Dec. 2018.

Question 5.
Prepare bank Reconciliation statement as on 31st December 2017. From the following in information.
a) Balance as perbank statement (pass book) is ₹ 50,000
b) Cheques deposited into bank amount into ₹ 7,000 were not yet collected.
c) Bank charges of ₹ 600 have not been entered in the cash book.
d) Cheques issued amount to ₹ 18,000 have not been presented by for payment.
Solution:
Bank Reconciliation statement as on 31st Dec. 2017.

Question 6.
From the following information, prepare bank Reconciliationstatement as of Mr. Pugazh as on 31st Dec. 2017.
i) Credit balance as per bank statement ₹ 12,000
ii) Cheques deposited on 28th December 2017 but not yet credited ₹ 4000
iii) Cheques issued for 20000 on 20th December 2017 but not yet presented for payment 6000.
iv) Interest on debentures directly in cash book ₹ 8000
v) Insurance premium on building directly paid by the bank ₹ 2000
vi) Amount wrongly credit by bank ₹ 1,000
Solution:
Bank Reconciliation statement of Mr. Pugazh as on 31st Dec. 2017.

Question 7.
From the following data, as certain the cash book balance as on 31st Dec. 2017.
1) Overdraft balance as per bank statement ₹ 13,000
2) Cheques deposited into the bank but not yet credited ₹ 21,000
3) Wrongly credit by the bank ₹ 1,000
4) Cheques issued, but not yet presented for payment₹ 6,000
5) Bank charges debited by bank ₹ 360
6) Insurance Premium on building directly paid by bank ₹ 200
Solution:
Bank Reconciliation statement on 31st Dec. 2017.

Question 8.
Prepare bank Reconciliation statement as on 31st Dec. 2017, From the following balance of cash book, and bank statement.
Cash book (Bank column)

Bank Statement

Solution:
Bank Reconciliation Statement on 31st Dec, 2017.

Question 9.
On 31st March 2017, the pass book of Mr, A showed a credit balance of Rs.92,500. A comparison of pass book and cash book revealed the following:

Solution:
Bank Reconciliation Statement of Mr. A as on 31st March 2017

Question 10.
The bank overdraft of Rajini on 31.12.2017 as per cash book is 90,000. From the following particulars, prepare bank reconciliation statement:

Solution:
Bank Reconciliation Statement as on 31,12.2017 3,000

Question 11.
Prepare a bank reconciliation statement from the following data as on 31.12.2017.
a) Balance as per cash book ₹ 1,25,500
b) Cheques issued but not presented for payment ₹ 9,000
c) Cheques deposited in bank but not collected ₹ 12,000
d) Bank paid insurance premium ₹ 5,000
e) Direct deposit by a customer ₹ 8,000
f) Interest on investment collected by bank ₹ 2,000
g) Bank charges ₹ 1,000
Solution:
Bank Reconciliation Statement as on 31.12.2017

Question 12.
The pass book of X with his bank shows a debit balance of Rs. 500 on 31.10.2017. On comparison of the pass book with the cash book, it is observed that:
i. Cheques issued by X in October 2017 amounted to ₹ 4, 535 of which cheques amounting to ₹ 3,535 were paid by the bank by 31st October 2017.

ii. X deposited cheques amounting to ₹ 5, 000 on 31st October 2017. These cheques were realised by the bank on 1st November, 2017.

iii. Y a customer of X had directly deposited a sum of ₹ 3, 000 on 24th October 2017 to the credit of X account with the bank. X recorded this receipt on 4th November, 2017.

iv. The bank had debited X’s account with ₹ 1, 520 on 31.1.2017 on account of a dishonoured bill. No entry for the same has been made in the account books.

v. On 31.10.1995 X’s account was credited with ₹ 130 being dividend collected by the bank. On the same day, his account was debited with ₹ 10 being bank charges. Both these entries were recorded by X only on 5th November, 2017.
Prepare the Bank Reconciliation Statement as at 31.10.2017.
Solution:
Bank Reconciliation Statement as on 31.10.2017

Question 13.
From the following particulars ascertain the bank balance as would appear in the pass‘book as on 31st December, 2016.
i. The bank overdraft (Credit balance) as per cash book on 31st December 2016 was ₹ 60,000
ii. Interest on overdraft, six months ending 31st December, amounting to ₹ 2,000 is debited in the pass book.
i. Bank charges for the above period also debited in the pass book which amounted to ₹ 500.
ii. Cheques issued but not presented for payment before 31st December amounted to ₹ 15,000.
iii. Cheques paid into the bank, but not cleared and credited before 31st December were ₹ 25,000.
iv. Interest on government securities collected by the bank and credited in the pass book amounted to ₹ 18,000.
Solution:
Bank Reconciliation Statement as on 31st March 2016

Question 14.
From the following information available from the books and records of X & Co., prepare BRS:

Solution:
Bank Reconciliation Statement for Bank A/c No. I

Bank Reconciliation Statement for Bank A/c No. II

Question 15.
From the following particulars ascertain the bank balance that would appear in the cash book of Son 31.12.2016.
i) The bank overdraft as per pass book on 31.12.2016 ₹ 6,340
ii) Interest on on for the year ending 31.12.2016 ₹ 160 is debited in the pass book
iii) Bank charges of ₹130 for the above period are also debited in the pass book.
iv) Cheques issued but not cashed prior to 31.12.2016 amounted to ₹ 11,168
v) Cheques paid into bank but not cleared before 31.12.2016 were ₹ 2170
vi) Interest on investments collected by the bankers and credited in the pass book, ₹ 1,200
Solution:
Bank Reconciliation Statement as on 31st December 2016

Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Business Maths Guide Pdf Chapter 10 Operations Research Miscellaneous Problems Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Business Maths Solutions Chapter 10 Operations Research Miscellaneous Problems

Question 1.
The following table summarizes the supply, demand and cost information for four factors S₁, S₂, S₃, S₄ Shipping goods to three warehouses D₁, D₂, D₃.

Find an initial solution by using north west corner rule. What is the total cost for this solution?
Solution:
The given transportation table is

Here total supply = 5 + 8 + 7+14 = 34
Total amount =7 + 9 + 18 = 34
(i.e) Total supply = Total demand.
∴ The given problem is balanced transformation problem.
We can find an initial basic feasible solution to the given problem.
First allocation:



Transportation schedule:
S₁ → D₁; S₂ → D₁; S₂ → D₂;
S₃ → D₂; S₃ → D₃; S₄ → D₃
The transportation cost:
= (5 × 2) + (2 × 3) + (6 × 3) + (3 × 4) + (4 × 7) + (14 × 2)
= 10 + 6 + 18 + 12 + 28 + 28
= 102

Question 2.
Consider the following transportation problem

Determine an initial basic feasible solution using (a) Least cost method (b) Vogel’s approximation method.
Solution:
(a) Least cost method
Given transportation table is

Total Availability = Total Requirement = 100
∴ The given problem is balanced transformation problem.
Hence there exists a feasible solution to the given problem
First allocation:



Here
x₁₂ = 10; x₁₃ = 20; x₂₁ = 30;
x₂₂ = 10; x₂₄ = 10; x₃₂ = 20
Transportation Scheme:
O₁ → D₂; O₁ → D₃; O₂ → D₁;
O₂ → D₂; O₂ → D₄; O₃ → D₂
The transportation cost:
=(10 × 8) + (20 × 3) + (30 × 4) + (10 × 5) + (10 × 4) + (20 × 2)
= 80 + 60 + 120 + 50 + 40 + 40
= 390

(ii) Vogel’s approximation method:
Here Σai = Σbj = 100
∴ The given problem is balanced transformation problem.
Hence there exists a feasible solution to the given problem
First allocation:



Here
x₁₁ = 30; x₁₃ = 20; x₂₂ = 20;
x₂₄ = 10; x₃₂ = 20
Transportation Scheme:
O₁ → D₁; O₂ → D₃; O₂ → D₂;
O₂ → D₄; O₃ → D₂;
Total transportation cost:
= (30 × 5) + (20 × 3) + (20 × 5) + (10 × 4) + (20 × 2)
= 150 + 60 + 100 + 40 + 40
= 390

Question 3.
Determine an initital basic feasible solution to the following transportation problem by using (i) North West Corner rule (ii) least cost method.

Solution:
(i) North West Corner rule:
The given transportation table is

Total supply = 25 + 35 + 40 = 100
Total Requirement = 30 + 25 + 45 + 100
(i.e) Total supply = Total requirement.
∴ The given problem is balanced transformation problem.
Hence there exists a feasible solution to the given problem
First allocation:


Transformation schedule:
S₁ → D₁; S₂ → D₁; S₂ → D₂;
S₃ → D₃; S₃ → D₃;
The transformation cost:
= (25 × 9) + (5 × 6) + (25 × 8) + (5 × 4) + (40 × 9)
= 225 + 30 + 200 + 20 + 360 = 835

(ii) Least cost method
The given transportation table is

(i.e) Total supply = Total requirement = 100
∴ The given problem is balanced transformation problem.
Hence there exists a feasible solution to the given problem
First allocation:


Transportation schedule:
S₁ → D₃; S₂ → D₃; S₃ → D₁
S₃ → D₂;
The transportation cost:
= (10 × 5) + (35 × 4) + (15 × 7) + (25 × 6) + (40 × 9)
= 50 + 140 + 105 + 150 + 360 = 805

Question 4.
Explain Vogel’s approximation method by obtaining initial basic feasible solution of the following transportation problem.

Solution:
The given transportation table is

Here Σai = Σbj =17
(i.e) Total supply = Total Demand
∴ The given problem is balanced transformation problem.
Hence there exists a feasible solution to the given problem
First allocation:



Here
x₁₁ = 1; x₁₂ = 5; x₂₄ = 1;
x₃₁ = 6; x₃₃ = 15;
Transportation schedule:
O₁ → D₁; O₁ → D₂; O₂ → D₄
O₃ → D₁; O₃ → D₃
The transportation cost:
=(1 × 2) + (5 × 3) + (1 × 1) + (6 × 5) + (3 × 15) + (1 × 9)
= 2 + 15 + 1 + 30 + 45 + 9
= 102

Question 5.
A car hire company has one car at each of five depots a,b,c,d and e. A customer in each of the fine towers A, B, C, D and E requires a car. The distance (in miles) between the depots (origins) and the towers (destinations) where the customers are given the following distance matrix.

How should the cars be assigned to the customers so as to minimize the distance travelled?
Solution:
Here the number of rows and columns are equal.
∴ The given assignment problem is balanced.
Step 1.
Select the smallest element in each row and subtract this from all the elements in its row.

Step 2.
Select the smallest element in each column and subtract this from all the elements in its column.

Step 3. (Assignment)
Examine the rows with exactly one zero, mark the zero by □ mark other zeros, in its column by X

Step 4.
Now Examine the rows with exactly one zero, mark the zero by □ mark other zeros, in its column by X

Step 5.
Cover all the zeros of table 4 with three lives. Since three assignments were made please note that check [✓] Row C and E which have no assignment.

Step 6.
Develop the new revised tableau. Examine those elements that are not covered by a line in Table 5. Take the smallest element in each row and subtract from the uncovered cells, depots

Step 7.
Go to step 3 and repeat the procedure until you arrive at an optimal assignments.
depots

Step 8.
Determine an assignment

Here all the five assignments have been made. The optimal assignment schedule and total distance is

∴ The optimum Distance (minimum) 575 kms

Question 6.
A natural truck – rental service has a surplus of one truck in each of the cities 1, 2, 3, 4, 5 and 6 and a deficit of one truck in each of the cities 7, 8, 9, 10, 11 and 12. The distance (in kilometers) between the cities with a surplus and the cities with

How should the truck be dispersed so as to minimize the total distance travelled?
Solution:
Here the number of rows and columns are equal.
∴ The given assignment problem is balanced.
Step 1.
Select the smallest element in each row and subtract this from all the elements in its row.

Step 2.
Select the smallest element in each column and subtract this from all the elements in its column.

Step 3.
Examine the rows with exactly one zero, mark the zero by □ mark other zeros, in its column by X

Step 4.
Examine the Columns with exactly one zero. If there is exactly one zero, mark that zero by □ mark other zeros in its rows by X

Step 5.
Cover all the zeros of table 4 with five lines. Since three assignments were made

Step 6.
Develop the new revised tableau. Examine those elements that are not covered by a line in Table 5. Take the smallest element. This is l(one) in our case. By subtracting 1 from the uncovered cells.

Step 7.
Go to step 3 and repeat the procedure until you arrive at an optimal assignments.

Step 8.
Determine an assignment

Here all the six assignments have been made. The optimal assignment schedule and total distance is

∴The optimum Distance (minimum) = 125 kms

Question 7.
A person wants to invest in one of three alternative investment plans: Stock, Bonds and Debentures. It is assumed that the person wishes to invest all of the funds in a plan. The pay – off matrix based on three potential economic conditions is given in the following table

Solution:

(i) Maximin
Max (3000, 1000, 6000) = 6000. Since the maximum pay of is 6000, the alternative ‘Debentures’, is selected.

(ii) Minimax
Min (10000, 8000, 6000) = 6000, Since the minimum pay-off is 6000. the alternative ‘Debentures’ is selected.

Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Business Maths Guide Pdf Chapter 10 Operations Research Ex 10.4 Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Business Maths Solutions Chapter 10 Operations Research Ex 10.4

Choose the correct answer

Question 1.
The transportation problem is said to be unbalanced if
(a) Total supply ≠ Total demand
(b) Total supply = Total demand
(c) m = n
(d) m + n – 1
Solution:
(a) Total supply ≠ Total demand

Question 2.
In a non – degenerate solution number of allocation is
(a) Equal to m + n – 1
(b) Equal to m + n + 1
(c) Not equal to m + n – 1
(d) Not equal to m + n + 1
Solution:
(a) Equal to m + n – 1

Question 3.
In a degenerate solution number of allocations is
(a) Equal to m + n – 1
(b) Not equal to m + n – 1
(c) Less then m + n – 1
(d) Greater then m + n – 1
Solution:
(c) Less then m + n – 1

Question 4.
The Penalty in VAM represents difference between the first
(a) Two largest costs
(b) Largest and Smallest costs
(c) smallest two costs
(d) None of these
Solution:
(c) smallest two costs

Question 5.
Number of basic allocation in any row or column in an assignment problem can be
(a) Exactly one
(b) At least one
(c) At most one
(d) None of these
Solution:
(a) Exactly one

Question 6.
North – West Corner refers to
(a) Top left corner
(b) Top right corner
(c) Bottom right corner
(d) Bottom left corner
Solution:
(a) Top left corner

Question 7.
Solution for transportation problem using method is nearer to an optimal
(a) NWCM
(b) LCM
(c) VAM
(d) Row Minima
Solution:
(c) VAM

Question 8.
In an assignment problem the value of iedsion variable x_ij is
(a) 1
(b) 0
(c) 1 or 0
(d) none of them
Solution:
(c) 1 or 0

Question 9.
If number of sources is not equal to number of destinations, the assignment problem is called
(a) balanced
(b) unsymmetric
(c) symmetric
(d) unbalanced
Solution:
(d) unbalanced

Question 10.
The purpose of a dummy row or column in an assignment problem is to
(a) prevent a solution from becoming degenerate
(b) balance between total activities and total resources
(c) provide a means of representing a dummy problem
(d) None of the above
Solution:
(b) balance between total activities and total resources

Question 11.
The solution for an assignment problem is optimal if
(a) each row and each column has no assignment
(b) each row and each column has atleast one assignment
(c) each row and each column has atmost one assignment
(d) each row and each column has exactly one assignment
Solution:
(d) each row and each column has exactly one assignment

Question 12.
In an assignment problem involving four workers and three jobs, total number of assignments possible are
(a) 4
(b) 3
(c) 7
(d) 12
Solution:
(b) 3

Question 13.
Decision theory is concerned with
(a) analysis of information that is available
(b) decision making under certainty
(c) selecting optimal decisions in sequential problem
(d) All of the above
Solution:
(d) All of the above

Question 14.
A type of decision – making environment is
(a) certainty
(b) uncertainty
(c) risk
(d) all of the above
Solution:
(d) all of the above

Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Business Maths Guide Pdf Chapter 10 Operations Research Ex 10.3 Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Business Maths Solutions Chapter 10 Operations Research Ex 10.3

Question 1.
Given the following pay – off matrix (in rupees) for three strategies and two states for nature.

Select a strategy using each of the following rule (i) Maximin (ii) Minimax
Solution:

(i) Max min
Max ( 40, -20, -40) = 40. Since the maximum pay-off is 40, the alternative S, is selected.

(ii) Minimax
min (60, 10, 150) = 10, Since the minimum payoff is 10. the alternative S₂ is selected.

Question 2.
A farmer wants to decide which of three crops he should plant on his 100 – acre farm. The profit from each is dependent on the rainfall during the growing season. The farmer has categorized the amount of rainfall as high medium and low. His estimated profit for each is shown in the table.

In the farmer wishes to plant only crop, decide which should be his best crop using (i) Maximin (ii) Minimax
Solution:

(i) Maximin
Max ( 3500, 4500, 2000) = 4500. Since the maximum pay-off is 4500, the alternative ‘Medium’, is selected.

(ii) Minimax
min (8000, 5000, 5000) = 5000, Since the minimum pay-off is 5000. the alternatives both ‘Medium’ and ‘Low’ are selected.

Question 3.
The research department of Hindustan Ltd. has recommended to pay marketing department to launch a shampoo of three different types. The marketing types of shampoo to be launched under the following T estimated pay-offs for various level of sales.

What will be the marketing manager’s decision if (i) Maximin and (ii) Minimax principle applied?
Solution:

(i) Maximin
Max ( 10, 5, 3) = 10. Since the maximum pay of is 10, “Egg Shampoo”, is selected.

(ii) Minimax
min (30, 40, 55) = 30, Since the minimum pay-off is 30. the alternative “Egg Shampoo” is selected

Question 4.
Following pay – off matrix, which is the optimal decision under of the following rule (i) maximin (ii) minimax

Solution:

(i) Maximin
Max ( 5, 7, 9, 8) = 5. Since the maximum pay-off is 5, the alternative A₁ is selected.

(ii) Minimax
min (14, 11, 11, 13) = 11, Since the minimum pay-off is 11. the alternative alternatives A₂ and A₃ are selected.