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Financial Accounting Test

Class: B.Com I Year
Sub: F.A (B.R.S.)
I.

Date: 12-09-2005

Answer all the questions.

Each question carries 10 marks.

Time: 1hour
Max.Marks: 30
4x10=40marks.

1. Ascertain the correct bank balance of Mr. Ranjit as on 31-12-1994 from

the statement prepared to reconcile the balances as per Cash Book and
Pass Book.
(a) Balance as per Cash Book Rs.2,980 and as per Pass Book
Rs.6,830.
(b) Cheque sent to bank for collection amounted to Rs.5,000 out of
which only cheques worth Rs.3,800 were collected.
(c) Cheque issued were Rs. 4,600 out of which only cheques for
Rs.3,900 were presented for payment.
(d) A customer of Ranjit remitted directly into his bank account an
amount of Rs.5,000
(e) Rs. 150 being the interest on temporary overdraft is recorded in
the Pass Book only.
(f) A bill of exchange for Rs.2,500 which was discounted with the
bank previously is now dishonoured.
(g) Rs. 400 being the interest on fixed deposit is recorded in the Pass
Book only.
(h) Cash paid to a creditor Rs. 1,000 erroneously entered in the Bank
column of the Cash Book.
(i) A cheque for Rs.600 was issued and again cancelled only the
issue was recorded and cancellation was not recorded.

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2. From the following particulars you are required to ascertain the bank
balance as would appear in the cash book of Atma Ram and Co. as at 31st
December, 1985.
(a) The bank pass book showed an Overdraft of Rs. 6,500 on 31st
December, 1985.
(b) Interest on Overdraft for six months ending 31st December, 1985
Rs. 250 is debited in the pass book, but it is not entered in the
cash book.
(c) Bank charges for the above period also debited in the pass book
amount to Rs. 25.
(d) Cheque issued, but not cashed prior to 31st December, 1985
amounted to Rs. 1,500
(e) Cheques paid into bank, but not cleared and credited before 31st
December, 1985, were for Rs. 2,500.
(f) Interest on investments collected by the bank and credited in the
Pass Book amounted to Rs. 1,800.
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3. The bank balance of Suresh Awasthi as per his pass book in 30th
September, 1986 was Rs. 5,000. On comparing the pass book with the
cash book, it was observed that:(a) Cheques received from Raju Rs.420; Dilip Rs.310 and Ashok Rs.
580 were entered in the pass book on 3rd October though
deposited in bank on 30th September.
(b) Cheques issued on 29th September by Suresh Awasthi to Satish,
Rajesh and Ramesh for Rs. 430, Rs. 350 and Rs. 570
respectively were entered in the pass book on 5th, 8th and 10th
October respectively.
(c) Bank Charges Rs.40 on cheques received and deposited by him
into bank were not entered in the cash book.
(d) A cheque drawn, entered in cash book and then cancelled was
paid in cash but the cancellation was not entered in cash book
Rs. 3000.
(e) A credit total of the bank column Rs. 1,500 was brought forward
to the debit side.
(f) The credit side of the bank column was undercast Rs. 700
(g) Bank had credited the pass book with Rs. 1,750 for dividend
which is debited in cash book for Rs. 1,050 only. Prepare Bank
Reconciliation Statement.

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