Fundamentals of Accounting (Gen & CA)

Important questions

1. Bookkeeping.
2. Petty Cash Book.
3. Suspense Account.
4. Need for Bank Reconciliation.
5. Trading Account.
6. Accounting Cycle.
7. Journal Proper.
8. Trial Balance .

9. What are the advantages and limitations of Double Entry System?
10.Briefly explain accounting concepts and conventions.
11.Explain various types of subsidiary books.

12. Prepare Triple Column Cash Book from the following information of Koushik. 1st March 2020

• 1. Cash in hand Rs.1532 and balance at bank Rs.18500.
  2. Received from Salman Rs.590 and allowed him discount Rs.10.
  3. Paid salaries for the month of February Rs.200.
  4. Purchased merchandise payment made by cheque Rs.3200.
  8. Paid Bilal & Co by cheque Rs.800 discount received Rs.20.
  10. Withdrew from bank for office use Rs.400. paid rent in cash Rs.300.
  14. Deposited into bank Rs.500.
  15. Cash sales Rs.2460.
  18. Purchased a motor car for Rs.6500 payment made by cheque.
  23. Received a cheque from Salman for Rs.391 discount Rs.9.
  25. Paid wages Rs.350.
  28. Salman cheque paid into bank.
  29. Paid computer applications expenses Rs.360.
  31. Bank informed that Salman’s cheque has been dishonored.
  31. Cash sales Rs.6440.

13.Briefly explain the advantages and limitations of trial balance.
14. Define Error. Briefly explain various types of erros.
15. Write the reasons for difference between pass book and cash book for bank reconciliation.

16. From the following particulars, prepare a Bank Reconciliation Statement for M/s Ramesh Traders as at 31st December, 2020.
i. Bank Balance as per cash book 8,000
ii. Two cheques were issued for 18,000 and 12,000 respectively, of which the cheque for 12,000 was presented on 4rd January next year.
iii. Cheque for 6,000 deposited on 25th was collected and credited by the bank on 4th January.
iv. Dividends collected by the bank 1,800 not recorded in the cash book.
v. Information relating to 4,600 deposit made by a debtor directly into the bank account has not yet been received.
vi. Bank charges 750 have been debited to the account by the bank on 31st December.

17. Distinguish between Profit and Loss Account and Balance Sheet.

18. From the following Trial Balance of Ramesh as on 31st March 2020, prepare Trading and Profit and Loss account and Balance sheet taking into account the adjustments.

                                                                     Trial Balance
Debit Balances Rs.
Purchases 2,00,000
Salaries 10,000
Rent 7,500
Insurance premium 1,500
Drawings 50,000
Machinery 1,40,000
Cash at bank 22,500
Computers 1,25,000
3Furniture 50,000
Cash 10,000
Opening Stock 26,000
Sundry debtors 12,500

Credit Balances Rs.

Capital 3,00,000

Sales 2,50,000

Creditors1,05,000

Adjustments:
1. Closing stock as on 31.3.2015 Rs. 39,000
2. Rent outstanding Rs. 1,000
3. Provide interest on capital @ 10% and on Drawings @ 8%.
4. Depreciation on Machinery @10% and Furniture @ 5%