Page 1 of 24 INTERNATIONAL INDIAN SCHOOL, RIYADH WORKSHEET (2020-2021) GRADE - XI – ACCOUNTANCY - SECOND TERM CHAPTER:1&2INTRODUCTION & THEORY BASE ACCOUNTING Q.1 Define any two of the following terms: (i) Assets (ii) Revenue (iii) Capital Q.2 Give examples, explain each of the following accounting terms: (i) Short term liability (b) Revenue (iii) Fixed Assets Q.3 Answer in one word: (a) The amount invested by the owner in business. (b) A person to whom the firm owes money (c) Amount spent by a business in the process of earning revenue. Q.4 Explain the following terms briefly: (a) Profit (b) Expenses (c) Creditors Q.5 Explain the following terms in brief: (i) Drawing (ii) Voucher (iii) Capital Q.6 Explain the following terms: (a) Assets (b) Creditors (c) Capital Q.8 What are the major limitations of accounting information? Q.9 Describe the Accounting informational needs of external users. Q.10 Who are the users of Accounting information? What purpose does it serve to various interest groups? Q.11 Explain the Matching concept Q.12What is meant by term ‘Accounting Standards’? Q.13What are Accounting Standards?
Transcript
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INTERNATIONAL INDIAN SCHOOL, RIYADH
WORKSHEET (2020-2021)
GRADE - XI – ACCOUNTANCY - SECOND TERM
CHAPTER:1&2INTRODUCTION & THEORY BASE ACCOUNTING
Q.1 Define any two of the following terms:
(i) Assets (ii) Revenue (iii) Capital
Q.2 Give examples, explain each of the following accounting terms:
(i) Short term liability (b) Revenue (iii) Fixed Assets
Q.3 Answer in one word:
(a) The amount invested by the owner in business.
(b) A person to whom the firm owes money
(c) Amount spent by a business in the process of earning revenue.
Q.4 Explain the following terms briefly:
(a) Profit (b) Expenses (c) Creditors
Q.5 Explain the following terms in brief:
(i) Drawing (ii) Voucher (iii) Capital
Q.6 Explain the following terms:
(a) Assets (b) Creditors (c) Capital
Q.8 What are the major limitations of accounting information?
Q.9 Describe the Accounting informational needs of external users.
Q.10 Who are the users of Accounting information? What purpose does it serve
to various interest groups?
Q.11 Explain the Matching concept
Q.12What is meant by term ‘Accounting Standards’?
Q.13What are Accounting Standards?
Page 2 of 24
Q.14 Discuss cash basis as well as accrual basis of accounting.
Q.15What will be the effect of the following on the Accounting equations?
a. Harish started business with cash Rs. 18,000.
b. Purchased goods for cash Rs. 5,000 and on credit Rs. 2,000
c. Sold goods for cash Rs. 4,000 (costing Rs. 2,400)
d. Rent paid Rs. 1,000; and Rent Outstanding Rs. 200
Q.16 Prepare accounting equation from the following.
(a) Hari started business with cash Rs. 20,000
(b) Purchased machinery on credit Rs. 4,000
(c) Paid to creditors in full settlement Rs. 3,800
(d) Purchase goods for cash Rs. 7,000
(e) Sold goods for cash (costing Rs. 5,000) Rs. 4,500
(f) Paid rent Rs. 500
Q.17. Fill in the blanks:
(a) The..................................concept states that is Straight line method of
depreciation is used in one year, then it should also be used in the next year.
(b) Recognition of expenses in the same period as associated revenues is called
.............................concept.
(c) Revenue is generally recognized at the point of sale denoted the concept of
.........................................
(d) Recording business transaction on the basis of document is known as the
principle of ...........................................
(e) The ..............................concept requires that accounting transactions should
free from the bias of accountants and others.
(f) The concept of.......................................assumes that business has a distinct and
separate entity from its owners.
Page 3 of 24
Q.18. Prepare Accounting Equation on the basis of the following:
(i) Started business with cash Rs. 70,000, goods Rs. 30,000 and furniture
Rs. 40,000.
(ii) Bought goods for Rs. 18,000on credit and Rs. 16,000 for cash.
(iii) Paid rent Rs. 2,000 and outstanding Rs. 1,600.
Q.19Prepare Accounting Equation on the basis of the following.
(i) Started business with cash Rs. 60,000.
(ii) Rent received Rs. 2,000.
(iii) Accrued Interest Rs. 500
Q.20. Show the effect of following transactions on Accounting equation:
(i) Started business with cash amounting to Rs. 35,000 and goods Rs. 15,000
(ii) Interest due but not paid Rs. 100
(iii) Accrued interest. Rs. 500
(iv) Commission received in advance Rs. 625
(v) Interest on drawings Rs. 125
CHAPTER: 3 RECORDING OF TRANSACTIONS I
Q.1 Pass necessary journal entries for the following.
(a) Opened a Bank Account with ICICI Rs. 50,000.
(b) Purchased goods from Kumar for cash Rs. 6,000.
(c) Received Rs. 2,400 from Sahil which were written off as bad debts in
the previous year.
Q.2 Journalise the following transactions:
(a) Mohan is insolvent and only 60 paise per rupee were received from him
out of a debt of Rs. 5,000
(b) Issued a cheque in favour of landlord Mr Anwar towards rent Rs. 4,600
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Q.3 Pass Journal Entries for the following.
(a) Received Cash for a bad debt written off last year Rs. 1,100
(b) Received Rs. 975 from Hari Krishna in full settlement of his account
Rs. 1,000
(c) Goods Costing Rs. 11,000 was stolen in Transit.
Q.4 Pass journal entries for the following.
(a) Cash paid for installation of machine Rs.10,000
(b) Paid Rs. 270 to Muhammad in full settlement of his account of Rs.300
(c) Goods withdrawn for personal use.Rs. 1,000
Q.5 Journalise the following transactions:
(a) Rent due to Land Lord Rs. 2,000.
(b) Withdrew from Bank for private use Rs. 500.
(c) Provide interest on Drawing Rs. 1,000.
Q.6 Journalise the following transactions:
(i) Goods worth Rs. 5,000 were used by the proprietor for domestic
purpose.
(ii) Paid Rs. 3,000 as wages on installation of new machine
(iii) Received Rs. 800 which was written off as dab debts in the previous
year.
Q.7 Journalize the following transaction in the books of Harish.
(a) Sudhir who owed Rs. 3,000 has failed to pay the amount. He pays a
compensation of 40 paise in a rupee.
(b) Plant and machinery purchased for Rs. 130,000 by paying Rs. 30,000
cash immediately.
(c) Goods worth Rs. 12,000 were used by the proprietor and goods worth
Rs. 1,000 were destroyed by fire.
(d) Sold goods to Kapoor list price Rs. 2,000, trade discount 10% and cash
discount 5%. He paid the amount on the same day and availed cash
discount.
Q.8 Write Journal Entries for the following transactions and prepare Mohan’s
A/c in Ledger.2012
Jan 1st Sold to Mohan Rs. 8,000
Jan 5 Purchased from Mohan Rs. 5,000
Jan 6th Returned to Mohan Rs. 1,500
Jan 10th Paid to Mohan Rs. 2,500
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Jan 15th Received from Mohan Rs. 1,800
Jan 20th Cash sales to Mohan Rs. 5,000
Jan 25th Cash purchases by Mohan Rs. 8,000
Jan 30th Mohan purchased goods from us Rs. 6,500
Jan 31st Commission paid to Mohan Rs. 80
Q.9. Prepare Suresh’s A/c from the following.
2012
March 1st Balance due from Suresh Rs. 15,000
March 8th Bought from Suresh Rs. 13,000
March 10th Cash Sales to Suresh Rs. 2,500
March 14th Suresh purchased goods from us Rs. 8,000
March 18th Suresh returned goods of Rs. 500
March 25th Paid to Suresh Rs. 850
March 31st Suresh settled his account by cheque. (Ans:Rs.10,350)
Q.10 Write up Ravi Kumar’s A/c from the following particulars.
2011
Dec 1st Amount due to Ravi Kumar Rs. 18,000
Dec 4th Purchased from Ravi Kumar Rs. 2,0000
Dec 10th Ravi Kumar purchased goods from us Rs. 5,000
Dec 12th Goods returned by Ravi Kumar Rs. 500
Dec 20th Sold to Ravi Kumar on Cash Rs. 1,500
Dec 25th Paid to Ravi Kumar Rs. 1,000
Dec 31st Ravi Kumar A/c is settle
CHAPTER:4 RECORDING OF TRANSACTIONS II
(SUBSIDIARY BOOKS)
Q.1 From the following transactions write up a Purchase Book of Verma
Brothers, wholesale cloth dealer.
April 1, 2007 Bought from M/s Birla Mills on credit:
100 pieces long cloth @ Rs. 80 per piece
50 pieces shirting @ Rs. 100 per piece.
April 8, 2007 Purchased for cash from M/s Ambika Mills:
50 pieces muslin @ Rs. 200 per piece.
April15, 2007 Purchased on credit from M/s Arvind Mills:
20pieces coating @ Rs. 1,000 per piece.
10 pieces shirting @ Rs. 100 per piece
Trade Discount 10%.
April 20, 2007 Purchased 5 typewriters on credit from M/s Bharat Type
writers Ltd. @ Rs. 15,000 each.
Page 6 of 24
Q. 2 From the following transactions write up a Sales Book of Vijay & Co,
furniture dealers.
April 1st ,2007 Sold to Delhi Furniture Mart on credit:
5 Sofa Sets @ Rs. 2,500 per set
10 steel cabinets @ Rs. 4,000 per cabinet
Trade Discount 10%
April 8th ,2007 Sold for cash to Modern Furniture House:
5 Almirahs @ Rs. 3,200 each
April 15th
,2007
Sold on credit to Poonam Furniture:
50 Chairs @ Rs. 100 each.
April 20th,
2007
Sold old typewriter on credit to M/s Bharat & Co. @ 1,000
Q.3 Prepare a Purchase book from the following details with CGST 5% and
SGST 5%
Date Particulars
2007
Dec. 1
Purchased from Tata Mc Graw Hill, Delhi
20 Accountancy for Class XI @ Rs 250 each.
100 Economics for Class XI @ Rs. 147 each.
Trade discount @ Rs. 20 %
Dec.
15
Purchased from Laxmi Kitab Ghar, Delhi.
20 copies of English for Class XI @ Rs. 125 each.
40 copies of commerce for Class XI @ Rs. 93 each.
Dec.
20
Cash Purchased from Dhanpart Rai & Sons Rs. 300
50 reams of white paper @ Rs. 5 per ream
100 reams fo ruled paper @ Rs. 7.50 each.
Page 7 of 24
Q.4 Enter the following transactions in Two Columnar Cash Book with Cash and
Bank Columns.
01.04.2007: Cash in hand Rs. 1,000 and Bank Overdraft Rs. 500.
05.04.2007: Received payment of loan Rs. 1,500 and deposited out
of it Rs. 1,000 in the bank.
12.04.2007: Withdrew from bank for private expense Rs. 200.
26.04.2007: Paid for office stationery by cheque Rs. 500.
Q. 5 Prepare a Double Column Cash Book from the following transactions.
01.01.2007 :Opening balance: cash:Rs.15,000 Overdraft at bank Rs.
10,000.
02.01.2007 :Cash received from sale of goods Rs. 30,000 and
deposited the same into bank on 4.1.2007.
10.01.2007 :Cash withdrawn from bank Rs. 5,000 for office use.
Q.6 Enter the following transactions in a two columnar cash book with cash &
bank columns and balance it.
01-Jan-2009 Cash in hand Rs. 5,960 and bank overdraft Rs. 6,000
05-Jan-2009 Draws a cheque for office use Rs. 300
07-Jan-2009 Bought goods for cash Rs. 2,500 (CGST 10% and SGST
10%)
10-Jan-2009 Received a cheque from M/s Omprakash Ltd. Rs. 500 and
deposited in the bank on the same day.
13-Jan-2009 Withdrew cash Rs. 350 for personal use
Page 8 of 24
Q.7 Zoom Co. Carry on business as a saree dealer from the following
information prepare their Purchase Book.
Date Particulars.
03.01.2017 Purchased on credit from Goyal Mills, Surat
33 polyester sarees @ Rs. 100 each
24 cotton sarees @ Rs. 75 each
Less: Trade discount @ 10%
08.01.2017 Purchased for cash from Garg Mills, Koata
30 Kota sarees @ Rs. 40 each
25 Organza sarees @ Rs. 50 each
15.01.2017 Purchased on credit from Mittal Mills, Bangalore
6 silk sarees @ Rs. 260 each
70 cotton sarees @ Rs. 80 each
Q.8 Prepare Double Column Cash Book from the following information for the
month of September 2015.
Sept.
Amount
(Rs) 01 Cash in hand 13,540
Cash at bank 27,560
03 Cash Sales( IGST 20%) 20,000
05 Purchased goods, paid by cheque (CGST6% and
SGST 6%)
16,000
06 Received cheque for goods sold
(deposited the same day)
10,000
07 Deposited into bank 1,000
08 Paid telephone expenses by cheque 300
09 Withdrew from bank 1,000
10 Cash withdrawn from bank for personal use 200
Q.9 Prepare Double Column Cash Book from the following transactions.
2008
Jan.1 Commenced business with cash Rs. 50,000
Jan.2 Deposited into bank Rs. 40,000
Page 9 of 24
Jan. 3 Bought goods by cheque Rs. 25,000
Jan. 5 Sold goods for cheque Rs. 20,000 and deposited into bank the same day.
Jan. 5 Paid to Arun by cheque Rs. 1,900 in full settlement of his account
Rs. 2,000.
Jan. 6 Drew from bank for office use Rs. 1,000.
Q.10 Enter the following transactions into as Analytical Petty Cash Book and also
show Ledger Accounts.
2012 Rs.
Jan 1 Cheque received from Head Cashier (Cheque No. T 3209) 2,000.00
” 2 Stationary purchased 85.50
” 4 Telephone Expenses 50.00
” 5 Tea expenses 60.00
” 8 Bus fair 50.00
” 10 Courier charges 100.00
” 12 Carriage expenses 85.50
” 15 Entertainment 200.00
” 18 Postal stamps, Covers, Inland Letters etc. 320.00
” 20 Pen, Pencils, Pins etc. 80.00
” 25 Short advertisement in ‘Times of India’ 225.00
” 28 Chair repairing 134.00
” 29 Auto charges 120.00
” 30 Cartage expenses 100.00
” 31 Refreshment expenses 150.00
CHAPTER:5 BILLS OF EXCHANGE
Q.1 What is meant by retiring of a bill.
Q.2 Calculate the due date of the bill, if the bill is drawn on 14th March 2007 and
payable after 3 months.
Q.3 How will you treat noting charges in the books of drawer? If: the bill is
retained by the drawer.
Q.4 What is meant by maturity of a bill of Exchanges?
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Q.5 On 01.10.2002, A sold goods to B for Rs. 3,000 less 10% trade discount
and 5% for cash in one month. These bills were paid by cheque on 2nd November,
further goods were invoiced to “B” for Rs. 1,800. For these, B accepted a bill at
two months from the date of invoice. On presentation of the bill on the due date it
was dishonoured and noting charges of Rs. 25 were paid by bank. “B” was later
declared insolvent on 11th April 2003, “A” received a first and final dividend of 25
paise in the rupee. Show the transactions in the journal of “A”.
Q.6 On 10th Jan, 2003 Long got a two months acceptance from Short for Rs. 6,000.
On 20th Jan Long discounted the bill with his bank for Rs. 5,780. On due date the
bill is dishonoured and bank paid noting charges Rs. 70. On request Long drew a
new bill on 15th March for a further period of one month for which an interest Rs.
180 is charged. The second bill is endorsed to Stout, which is met on due date.
Give entries in the books of Long.
Q.7 Anil sold goods Rs. 14,000 to Bala on 31st October, 2005 and drew two bills
of Rs. 6,000 and Rs. 8,000 payable after three and four months respectively. He
endorsed the first bill in favour of his creditor Chandran. The second bill was
discounted on Dec 3rd, 2005 at 12 % per annum. The first bill was met on maturity
but the second bill was dishonoured and the bank paid Rs. 50 as Noting Charges.
On March 03, 2006 Bala paid Rs. 4,000 and noting charges in cash and accepted a
new bill at two months after date for the balance plus interestRs.100. The new bill
was met on maturity by Bala.
You are required to give the journal entries in the books of Anil.
Q.8 On 1st July 2007 Rohan draws a bill on Mohan for Rs. 10,000 payable three
months due for goods sold, duly accepted by Mohan. Rohan gets the bill
discounted with his Bank on 4th August, at a discount of 12% per annum. On due
date bank returned the bill dishonoured with noting charges of Rs. 100. Mohan
paid Rs. 2,100 in cash and requested to draw another bill on him for the balance
amount for 2 months with interest @ 12% p.a. which Rohan did. Before due date
Mohan became insolvent and his estate paid 50% as first and final instalment.
Give journal entries in the books of Rohan.
OR
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On March 1st 2007, Ravi drew upon Navin a bill of exchange for Rs. 25,000
payable after one month, which the latter accepted. On the due date, Navin
dishonoured his acceptance. Pass necessary journal entries in the books of Ravi
with him till maturity.
When the bill was retained by Ravi with him till maturity.
When the bill was discounted by Ravi immediately with his banker
@ 6 % p.a.
When the bill was endorsed to is creditor Ganesh.
When the bill was sent to his bank for collection a few days before
maturity.
Q.9 On 15th April, 2003 ‘B’ accepted three Bills of Exchange for Rs. 24,000; No.
1 for Rs. 7,000 for one month; No. 2, Rs. 8,000 for two months; and No. 3, for Rs.
9,000 for 3 months.
On 20th April ‘A’ endorsed Bill No. 1 to his creditor ‘C’ to clear his account,
discounted his Bill No. 2 on 22nd April with his bankers for Rs. 7,920 and retained
the third bill till maturity.
Bill No. 1 was met on Maturity. Bill No. 2 was dishonoured on due date;
Rs. 100 being paid for Noting charges. ‘A’ charged ‘B’ for Rs. 150 for interest and
drew on him a fourth bill for Rs. 8,250 for three months and ‘B’ accepted it and
returned. Bill No. 3 and 4 were met on due date.
Pass necessary journal entries in the books of A.
OR
Record the following in the journal.
(i) Ram’s acceptance for Rs. 20,000, renewed for three months plus
interest @ 5% per annum.
(ii) Shyam’s acceptance for Rs. 4,500, due this day, returned
dishonoured, Noting Charges Rs. 10
(iii) Before the due date of the bill for Rs. 300 X, the acceptor
approaches us and pays Rs. 100 in Cash and asks us to draw on him another
bill for Rs. 215 being for interest, we agree to it.
Page 12 of 24
Q.10 Ashok sold goods of Rs. 14,000 to Bishan on October 30, 2008 and drew
three bills for Rs. 2,000, Rs. 4,000 and Rs. 8,000 payable after two, three and four
months respectively. The first bill was kept by Ashok with him till maturity. He
endorsed the second bill in favour of his creditor Chetan. Third bill was
discounted on 3d December, 2008 @ 12% p.a. The first and second bills were
duly met on maturity but the third bill was dishonour and bank paid Rs. 50 as
noting charges. On March 3rd 2006 Bishan paid Rs. 4,000 and noting charges in
cash and accepted a new bill at two months after date for the balance plus interest
Rs. 100. The new bill was met on maturity by Bishan.
You are required to give journal entries in the books of Ashok.
CHAPTER:7 BANK RECONCILIATION STATEMENT
Q.1 On June 30th 2007 the Bank Statement of Mr. Brown showed a favourable
balances of Rs. 9,050. From the following prepare a Bank Reconciliation
Statement:
(i) Certain cheques valued at Rs. 4,500 issued before June 30, were not
cleared.
(ii) A hire purchase payment of Rs. 950 made by a standing order was not
entered in the cash book.
(iii) Cheques for Rs. 8,500 were deposited in June but cheques for Rs. 6,000 only
were cleared by the bankers in the month of June.
(iv) There was a wrong debit in the pass book for Rs. 3,000.
Q.2 On 31st December 2010, the cash book of a merchant showed overdraft of
Rs. 17,300. The following discrepancies were noted:
(a) Cheques issued for Rs. 600 were not presented in the bank till 7th
January.
(b) Cheques amounting to Rs. 750 were deposited in the bank but were not
collected.
(c) A cheque of Rs. 150 received from Mahesh Chand and deposited in the
bank as dishonoured. Advice regarding the dishonour was not received
Page 13 of 24
from the bank till 2nd January.
(d) Cheques amounting to Rs. 4,800 were issued in the bank in December
but debit was made for Rs. 3,000 only.
Q.3 The bank passbook of messrs. Boss & Co. showed a balance of Rs. 45,000
on 31st May, 2005
(i) Cheques issued before 31st May, 2005 amounting to Rs. 25,600 had not been
presented for encashment.
(ii) Two cheques of Rs. 3,900 and Rs. 2,000 were deposited into bank on
31st May, 2005 but the bank gave credit for the same in June.
(iii) There was also a debit in the Pass book of Rs. 2,500 in respect of a cheque
dishonoured on 31.05.2005.
Prepare a bank Reconciliation Statement as on 31st May, 2005
Q.4 Prepare Bank Reconciliation statement from details given below and
ascertain the balance as per Mr. Gami’s Cash Book as on 31.12.1992.
(i) Bank overdraft balance as per Pass Book Rs. 12,000
(ii) Cheques issued to creditors amounting to Rs. 20,000 in the month of
December, 1992 of which cheques worth Rs. 3,000 presented to Bank up to
31.12.92.
(iii) A cheque of Rs. 6,000 received from Mr. Raj was deposited in the bank
A/c on 25th December, 1992, but no entry was passed in cash book. The same was
collected and credited to Mr. Gani’s A/c on 27.12. 1992.
(iv) A cheque of Rs. 2,000 received from Mr. Baria on 20.12.1992 was recorded
in the discount column of cash book but was not banked.
(v) The pass book showed that the bank had collected Rs. 4,000 as interest on
Govt. securities. The bank had charged interest Rs. 500 and bank charges Rs. 200.
There was no entry in the cash book for the same.
Page 14 of 24
Q.5 On 31st March, 2005 the bank column of the Cash Book of Agrawal traders
showed a credit balance of Rs. 118,100. On examining of the Cash Book and the
bank statement, it was found that:
(1) Cheques received and recorded in the Cash Book but not sent to the
bank for collection Rs. 12,400.
(2) Payment received from a customer directly by the bank Rs. 27,300, but
no entry was made in the Cash Book.
(3) Cheques issued for Rs. 175,200 not presented for payment.
(4) Interest of Rs. 8,800 charged by the bank was not entered in the Cash
Book.
Prepare Bank Reconciliation statement.
Q.6 Prepare Bank Reconciliation Statement of Sohan on 30th June, 2008 with the
following particulars.
(i) Pass book showed an overdraft of Rs. 15,000 on 30th June, 2008.
(ii) A cheque of Rs. 200 was deposited in bank but not recorded in the cash
book.
(iii) Cheques of Rs. 17,000 were issued but cheques worth Rs. 10,000 only were
presented for payment upto 30th June.
(iv) Cheques of Rs. 2,000 were received, recorded in cash book but not sent to
bank.
(v) Cheques of Rs. 10,000 were sent to bank for collection. Out of these,
cheques of Rs. 2,000 and of Rs. 1,000 were credited respectively on 8th and 10th
July.
(vi) Rs. 40 for bank charges were recorded two times in cash book.
Q.7 On 31st December, 2002, the bank balance as per cash book of a trader did
not agree with his balance as per pass book. On verifying the cash book and the
pass book, the following discrepancies were found.
1. Interest and dividend credited in the Pass Book was Rs. 7,100,
whereas, that recorded in the Cash book was only Rs. 4,000
Page 15 of 24
2. Of the three cheques of Rs. 7,800, Rs. 9,000 and Rs. 8,200, issued in
December, the cheque of Rs. 9,000 only is encashed in December
2002.
3. Of the two cheques for Rs. 6,600 and Rs. 2,400 paid into bank for
collection in December, the cheque of Rs. 2,400 is collected only in
January 2003.
4. Interest on overdraft not recorded in the cash book Rs. 1,800.
5. Cheque issued in December but not recorded in cash book Rs. 600.
On 31st December, the overdraft as per pass book was Rs. 18,000.
Prepare a Reconciliation Statement to ascertain the balance as per
Cash Book.
Q.8 From the following particulars, prepare a Bank Reconciliation Statement as
on 31st December 2011.
On December 2011, Mr.Dilip Kumar’s pass book showed a credit balance
ofRs. 5,400. A comparison of entries with the cash book revealed that he had paid
in cheques of the value of Rs. 600 on 30th Dec. 2011, out of which cheques
amounting to Rs. 240 were credited in the pass book on 2nd Jan 2012. He had
issued cheques of Rs. 1,500 before 31st December but cheques amounting toRs.
515 were debited to his account after 1st Jan 2012. There was debit in the pass
book of Rs. 25 in respect of bank charges and credit of Rs. 25 for interest on
current account but it was not recorded in the cash book.
( Ans: Balance as per Cash Book Rs.5,125)
CHAPTER:8 DEPRECIATION
Q.1 Define Secret Reserve. Give two Examples.
Q.2 Give two examples each of ‘Revenue Reserve’ and ‘Capital Reserve’.
Q.3 Explain Specific reserve and give two examples
Q.4 Give four examples of Reserves.
Page 16 of 24
Q.5 Explain the meaning of the following.
(a) Provision Revenue Reserve
(b) Capital Reserve
(c) Provision for Discount on Debtors.
Q.6 On January 1st 2001 Jain & Sons purchased a second hand Machinery
costing Rs. 210,000 and spent Rs. 5,000 on its transportation and installation. It
was decided to provide for depreciation at 20% on written down value. On 1st July
2003 the machinery was sold for Rs. 50,000. Prepare machinery Account for the
year 2001 to 2003. Account closes on 31st December every year.
Q.7 Distinguish between ‘Provision and Reserve’
Q.8 Zircon Ltd. Purchased machinery on 01.01.1995 for Rs. 40,000 it purchased
additional machinery on 01.07.1995 for Rs. 20,000 and another Machine worth Rs.
10,000 on 1st October, 1996. On 01.07.1996 the Machinery purchased on 1st July,
1995 was sold for Rs. 10,000 and on 1st October, 1997, it sold the first machinery
purchased on 1.01.1995 for Rs, 25,000. On the same date it purchased new
machinery worth Rs. 40,000. The company follows the diminishing balance
method of depreciation @ 10% p.a. Show the machinery A/c from 1995 to 1997.
Q.9 On April 1st , 2004 following balances appeared in the books of Messrs.
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