Commerce (English Medium) Class 11 - CBSE Question Bank Solutions for Accountancy

Describe the advantages of sub-dividing the Journal

State the need for the preparation of bank reconciliation statement?

What is a bank overdraft?

Explain the concept of depreciation. What is the need for charging depreciation and what are the causes of depreciation?

Name any two types of commonly used negotiable instruments

State any four essential features of bill of exchange

A bill of exchange must contain “an unconditional promise to pay” Do you agree with a statement?

From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.

1. Balance as per cash book ₹ 3,200
2. Cheque issued but not presented for payment ₹ 1,800
3. Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
4. Bank charges debited by bank ₹ 150

Rectify the following errors:

1. Credit sales to Mohan ₹ 7,000 were recorded as ₹ 700.
2. Credit purchases from Rohan ₹ 9,000 were recorded as ₹ 900.
3. Goods returned to Rakesh ₹ 4,000 were recorded as ₹ 400.
4. Goods returned from Mahesh ₹ 1,000 were recorded as ₹ 100.

Rectify the following errors:

1. Sales book overcast by ₹ 700.
2. Purchases book overcast by ₹ 500.
3. Sales return book overcast by ₹ 300.
4. Purchase return book overcast by ₹ 200.

From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.

1. Balance as per cash book ₹ 3,200
2. Cheque issued but not presented for payment ₹ 1,800
3. Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
4. Bank charges debited by bank ₹ 150

Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2017.

Rectify the following errors:

1. Sales book overcast by ₹ 700.
2. Purchases book overcast by ₹ 500.
3. Sales return book overcast by ₹ 300.
4. Purchase return book overcast by ₹ 200.

Rectify the following errors:

1. Credit sales to Mohan ₹ 7,000 were recorded as ₹ 700.
2. Credit purchases from Rohan ₹ 9,000 were recorded as ₹ 900.
3. Goods returned to Rakesh ₹ 4,000 were recorded as ₹ 400
4. Goods returned from Mahesh ₹ 1,000 were recorded as ₹100.

Rectify the following errors:

1. Sales book overcast by ₹ 700.
2. Purchases book overcast by ₹ 500.
3. Sales return book overcast by ₹ 300.
4. Purchase return book overcast by ₹ 200.

What is meant by 'Financial Statements' of a company?

State the objectives of 'Analysis of Financial Statements'.

Financial Statements are prepared following the constituent accounting concepts principles procedures and also the legal environment in which the business organisation operate. These statements are the source of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.

From the above statements identify any two values that a company should observe while preparing its financial statements. Also, State under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act 2013

(1) Capital Reserve
(2) Calls-in-Advance
(3) Loose Tools
(4) Bank overdraft

Short Answer Question

State the meaning of financial statements?

Long Answer Question

Prepare the format of balance sheet and explain the various elements of balance sheet.