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TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics

May 28, 2021

Students get through the TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics which is useful for their exam preparation.

TN State Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics

Very short answer questions

Question 1.
Define Heredity.
Answer:
Heredity is defined as a phenomenon in which the transmission of characters from parents to offspring takes place.

Question 2.
Define Variation.
Answer:
Variationisthedifferenceinthecharacteristics of the organisms belonging to the natural population or species.

Question 3.
Name any two scientists, who re-discovered Mendel’s experiments.
Answer:

Hugo de Vries
Carl Correns

Question 4.
Explain back cross.
Answer:
The back cross is the crossing of F₁ hybrids with any one of the parental genotypes.

Question 5.
Enumerate the explanation for the monohybrid cross.
Answer:

The expression of only one character of parental characters in F₁ generation.
The expression of both characters in the F₂ generation.

Question 6.
Define genotype.
Answer:
Genotype is defined as the genetic constitution of an individual.

Question 7.
Mention any two characters in Pea plants selected by Mendel.
Answer:

Plant height.
Flower color.

Question 8.
Explain Codominance.
Answer:
Codominance is a phenomenon in which two alleles are both expressed in the heterozygous individual.

Question 9.
Define Pleiotropy.
Answer:
Pleiotropy is defined as a phenomenon in which a single gene affects multiple characters.

Question 10.
Explain briefly dominant Epistasis.
Answer:
Dominant epistasis is a gene interaction in which two alleles of a gene at one locus interfere and suppress or mask the phenotypic expression of a different pair of alleles of another gene at another locus.

Question 11.
Give two examples of Inter-genic interaction.
Answer:

Inhibitor genes
Duplicate genes.

Question 12.
Mention any two examples of Incomplete dominance.
Answer:

Flower colour in Mirabilis jalapa.
Flower colour in snapdragon.

Question 13.
Define Lethal genes.
Answer:
A lethal gene is an allele that has the potential to cause the death of an organism.

Question 14.
Mention any two types of lethal genes.
Answer:

Conditional lethal gene
Balanced lethal gene.

Question 15.
Define Molecular Genetics.
Answer:
Molecular genetics is defined as a branch of genetics, which deals with the structure and function of a gene at the molecular level.

Short answer questions

Question 1.
Distinguish between population genetics and quantitative genetics.
Answer:

Population Genetics	Quantitative Genetics
Population Genetics deals with heredity in groups of individuals for a traits, determined by a few genes.	Quantitative Genetics deals with heredity of traits in groups of individuals. The traits are governed by many genes simultaneously.

Question 2.
Explain briefly about Discontinuous Variation.
Answer:
In a discontinuous variation, two or more allelic forms of one or two major genes control the characteristic of an individual within a population. These characteristics show a limited form of variations, which are genetically determined by inheritance factors. In this type of variation, the individual shows differences without an intermediate form between the parents and there is no overlapping between the two phenotypes. Environmental factors do not affect phenotypic expression. This variation is otherwise called qualitative inheritance. Eg: Style length in Primula and Plant height of garden pea.

Question 3.
Explain Mendel’s law of heredity.
Answer:
Heredity is the process of transformation of characters from parents to offspring. Two rules on heredity were proposed by Mendel, based on the observations on monohybrid cross. The first rule is the law of dominance and the second one is the law of segregation. These rules play an important role in the history of evolution.

Question 4.
What are the types of dominant relationships?
Answer:

Complete dominance
Incomplete dominance
Codominance
Overdominance

Question 5.
Distinguish between Intragenic and intergenic gene interactions.
Answer:

Intragenic	Intergenic
Intragenic gene interactions take place between the alleles of the same gene at same locus. This is otherwise known as intra allelic interactions.	Intergenic gene interactions take place between alleles of different genes at different loci. This is otherwise called as inter allelic interactions.

Question 6.
List out three plants, that exhibit codominance.
Answer:

Camillia
Gossypium hirsutum
Gossypium sturtianum

Question 7.
Mention three examples of non-allelic interactions.
Answer:

Fruit colour in summer squash
Flower colour in sweet peas
Grain colour in maize

Question 8.
Give three examples of polygenic inheritance.
Answer:

Skin colour in human being.
Wheat kernel colour.
Height of human being.

Question 9.
What is polygenic inheritance?
Answer:
Polygenic inheritance is a phenomenon in which a group of genes together determine the phenotypic expression of a single character. The polygenic inheritance was first demonstrated by H. Nilsson-Ehle in 1909 in wheat kernels.

Question 10.
What is meant by extra chromosomal inheritance?
Answer:
Chromosomes are the location of genes, which determine the characters of the individual. But in certain traits, the DNA present in chloroplast and mitochondria decide certain characters. It is a kind of Non-Mendelian inheritance. As this involves cytoplasmic organelles like chloroplast and mitochondria, that act as inheritance vectors, it is called extrachromosomal inheritance through independent, self-replicating plasmalogens.

Long answer questions

Question 1.
Explain the analytical and empirical approach of his experiments.
Answer:
In all Mendel’s experiments, be chose two contrasting characters of a single locus. He assumed that two distinct factors exist for a single trait. The recessive trait does not disappear in the F generation and it is hidden or marked in the F₁ generation and reappear in F₂ generation, in which it contributes to 25% of offspring. Mendel got a 3:1 ratio in F₂ generation when he crossed a homozygous dominant and recessive trait. Hence he concluded that tall and dwarf alleles of F heterozygote segregate randomly into gametes. Mendel is the first biological scientist to use quantitative analysis in biological research.

Mendel’s analytical approach is an outstanding scientific achievement. His breeding experiments are planned meticulously and precisely executed to show that the hereditary materials are transmitted from one generation to another. Though he was not aware of genes during his experiments, he attributed factors, which are responsible for deciding characters. Now the factors are called genes. His approach is empirical and the laws arrived through this approach are known as empirical laws.

Question 2.
Define test cross. Explain it with an example.
Answer:
A test cross is defined as a cross between an individual of unknown genotype with a homozygous recessive.
In F₁ generation of Mendel’s monohybrid cross of tall and dwarf pea plants, he got only tall plants. In F₂ generation the tall and dwarf plants were in the ratio 3:1. He self-pollinated the dwarf F₂ plants and he got only dwarf plants in F₃ and F₄ generation so he concluded that the genotype of the dwarf plant was homozygous recessive (tt). But the genotype of tall plants TT or Tt cannot be predicted. Mendel crossed the tall plants of F₂ with the homozygous recessive dwarf plant. This is known as a test cross. From the progenies of the test cross, the genotype of tall plants can easily be identified. Thus a typical test cross is to cross an organism showing dominant phenotype is crossed with the recessive parent instead of self crossing. Therefore test cross can be used to identify whether an individual is homozygous or heterozygous for the dominant character.
TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics 1

Question 3.
What is the molecular explanation for Mendel’s tall and dwarf planets?
Answer:
A single gene with two alleles controls the height of the pea plant. The difference in height of the plant is due to:

The pea plant cells have the ability to convert a precursor molecule of gibberellins into an active form (GA₁).
The dominant allele of the gene (Le), which codes for a protein, a functional enzyme, which helps in the gibberellin synthesis pathway and catalyzes the production of gibberellins (GA₁). When the allele is dominant even if it is double (Le Le) or single (Le le) it produces gibberellins resulting in tall plants. The dwarf pea plants, which have two recessive alleles (le le) cannot code for functional protein resulting in dwarf plants.

Question 4.
Tabulate examples of Inter-genic interaction with their F₂ ratio.
Answer:
TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics 3

Choose the correct answers:

1. Match the following:
TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics 4
(a) (p)-(iv); (q)-(iii); (r)-(ii); (s)-(i)
(b) (p)-(iii); (q)-(iv); (r)-(i); (s)-(ii)
(c) (p)-(iii); (q)-(ii); (r)-(iv); (s)-(i)
(d) (p)-(ii); (q)-(i); (r)-(iv); (s)-(iii)
Answer:
(b) (p)-(iii); (q)-(iv); (r)-(i); (s)-(ii)

2. Match the following:
TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics 5
(a) (p)-(iv); (q)-(iii); (r)-(i); (s)-(ii)
(b) (p)-(iv); (q)-(iii); (r)-(ii); (s)-(i)
(c) (p)-(iii); (q)-(iv); (r)-(i); (s)-(ii)
(d) (p)-(ii); (q)-(i); (r)-(iv); (s)-(i)
Answer:
(a) (p)-(iv); (q)-(iii); (r)-(i); (s)-(ii)

3. Match the following:
TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics 6
(a) (p)-(iv); (q)-(iii); (r)-(ii); (s)-(i)
(b) (p)-(iv); (q)-(iii); (r)-(i); (s)-(ii)
(c) (p)-(iii); (q)-(iv); (r)-(i); (s)-(ii)
(d) (p)-(ii); (q)-(i); (r)-(iv); (s)-(iii)
Answer:
(c) (p)-(iii); (q)-(iv); (r)-(i); (s)-(ii)

4. Match the following:
TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics 7
(a) (p)-(iv); (q)-(iii); (r)-(ii); (s)-(i)
(b) (p)-(ii); (q)-(i); (r)-(iv); (s)-(iii)
(c) (p)-(iii); (q)-(i); (r)-(iv); (s)-(ii)
(d) (p)-(ii); (q)-(iv); (r)-(i); (s)-(iii)
Answer:
(d) (p)-(ii); (q)-(iv); (r)-(i); (s)-(iii)

5. Choose the odd man out:
(a) Phenotype
(b) Homozygous
(c) Heterozygous
(d) Allele
Answer:
(a) Phenotype

6. Choose the odd one out:
(a) Complete dominance
(b) Lethal genes
(c) Multiple alleles
(d) Epistatic
Answer:
(d) Epistatic

7. Identify the odd man out:
(a) Hugo de Vries
(b) Linnaeus
(c) Carl Correns
(d) Erich Von Tschermak
Answer:
(b) Linnaeus

8. Choose the odd one out:
(a) Codominance
(b) Complementary
(c) Supplementary
(d) Inhibitory
Answer:
(a) Codominance

9. Choose the correct pair.
TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics 8
Answer:
(d)

10. Find out the incorrect pair.
TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics 9
Answer:
(c)

11. Choose the correct pair.
TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics 10
Answer:
(b)

12. Find out the incorrect pair.
TN Board 12th Bio Botany Important Questions Chapter 2 Classical Genetics 11
Answer:
(c)

13. Male sterility in pearl maize is due to:
(a) Independent inheritance
(b) Mitochondrial inheritance
(c) Chloroplast gene inheritance
(d) Codominance
Answer:
(b) Mitochondrial inheritance

14. The polygenic inheritance was first demonstrated by:
(a) E. Baur
(b) Carl Correns
(c) Hugo de Vries
(d) H. Nilsson – Ehle
Answer:
(d) H. Nilsson – Ehle

15. In dominant epistasis in summer squash, the F2 generation the phenotypic ratio is:
(a) 9:3:3:1
(b) 12:3:1
(c) 9:7
(d) 15:1
Answer:
(b) 12:3:1

16. In Polygenic inheritance the production of medium dark red color is due to:
(a) Four R genes
(b) Two R genes
(c) Three R genes
(d) Absence of R – gene
Answer:
(c) Three R genes

17. Intra-genic interaction includes:
(a) Dominant epistasis
(b) Duplicate genes
(c) Inhibitor genes
(d) Codominant genes
Answer:
(d) Codominant genes

18. Assertion: Two alleles of a gene at one locus suppress or mask the phenotypic expression of a different pair of alleles of another gene at another locus in dominant epistasis.
Reason: Inter locus interactions take place between the alleles at different loci i.e., between alleles of different genes.
(a) Assertion is true; Reason is wrong.
(b) Assertion is wrong; Reason is true.
(c) Both Assertion and Reason are true.
(d) Both Assertion and Reason are wrong.
Answer:
(c) Both Assertion and Reason are true.

19. Assertion: The phenomenon in which two alleles are both expressed in the heterozygous condition is known as codominance.
Reason: Thecodominancewasdemonstrated in plants with the help of electrophoresis.
(a) The Assertion is true; the Reason is false.
(b) The Assertion is false; the Reason is true.
(c) Both Assertion and Reason are true.
(d) Both Assertion and Reason are false.
Answer:
(a) The Assertion is true; the Reason is false.

20. Assertion: In a monohybrid cross, when two homozygous dominant and recessive traits are crossed, an intermediate character is found in F₁ generation:
Reason: This may be due to the codominance of two alleles.
(a) Assertion is right; the Reason is wrong.
(b) Assertion is false; the Reason is true.
(c) Both Assertion and Reason are true.
(d) Both Assertion and Reason are false.
Answer:
(d) Both Assertion and Reason are false.

21. Which of the following statement is correct?
(a) The dihybrid cross involves individuals differencing in one character.
(b) The recessive back cross helps to identify the homozygosity of the hybrid.
(c) The dihybrid cross is a genetic cross in which- individuals differing in two characters are involved.
(d) None of the above statements is correct.
Answer:
(c) The dihybrid cross is a genetic cross in which- individuals differing in two characters are involved.

22. ChoOse the incorrect statement.
(a) Two identical alleles of a gene are called heterozygous.
(b) Two different alleles of a gene are called heterozygous.
(c) Two identical alleles of a gene are called homozygous
(d) An individual with two dominant alleles is called homozygous dominant.
Answer:
(a) Two identical alleles of a gene are called heterozygous.

23. Find out the correct statement.
(a) Mendelian experiments prove that a single gene controls more than one character.
(b) Independent assortment leads to genetic diversity.
(c) Back cross involves the cross between the F₂ offspring with F₁ parents.
(d) Independent assortment leads to genetic homozygosity.
Answer:
(b) Independent assortment leads to genetic diversity.

24. Which of the following statement is false?
(a) Intragenic gene interaction takes place between the alleles of the same gene.
(b) Intragenic gene interaction takes place between the alleles at the same locus.
(c) Intergenic gene interaction takes place between alleles of different locus.
(d) All the above statements are wrong.
Answer:
(d) All the above statements are wrong.

25. Choose the correct statement.
(a) Codominance type of inheritance is found in snapdragon.
(b) The inheritance of sickle cell anemia is a typical example of pleiotropy.
(c) Polygenic inheritance is seen in the flower color of pea plants.
(d) The expression of inhibitor gene leads to male sterility in plants.
Answer:
(b) The inheritance of sickle cell anemia is a typical example of pleiotropy.

TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants

May 27, 2021

Students get through the TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants which is useful for their exam preparation.

TN State Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants

Very short answer questions

Question 1.
Define asexual reproduction.
Answer:
Asexual reproduction is defined as the phenomenon in which the propagation of own species takes place without the involvement of gametes.

Question 2.
Mention any two methods of asexual reproduction for example.
Answer:

Yeast – Budding.
Bacteria – Binary fission.

Question 3.
What is meant by epiphyllous buds?
Answer:
In plants like Brydphyllum, the leaf is notched on its margin. The buds that develop on these notches are called epiphyllous buds.

Question 4.
List out two types of layering.
Answer:

Mount layering.
Air layering.

Question 5.
Define totipotency.
Answer:
Totipotency is defined as a phenomenon in which the genetic ability of a plant cell to produce an entire plant under suitable conditions.

Question 6.
Mention any two disadvantages of the conventional method of plant propagation.
Answer:

Viral infected new plants are produced when the infected plants are used as parents.
For vegetative propagation, bulky vegetative structures are needed and the storage and handling of these materials become difficult.

Question 7.
Define microsporogenesis.
Answer:
Microsporogenesis is a process in which the formation of haploid microspores is framed from diploid microspore mother cell through meiosis.

Question 8.
What is corpusculum?
Answer:
The corpusculum is a clamp or clip like sticky structure in which the pollinia are attached.

Question 9.
Mention any two allergic reactions due to pollen grains:
Answer:

Asthma
Bay fever

Question 10.
What is meant by chalaza?
Answer:
Chalaza is the merging part of the nucellus, the integument, and the funicle at the basal region of the ovule.

Question 11.
What is autogamy?
Answer:
The transfer of pollen on the stigma of the same flower is called autogamy. Autogamy is otherwise called self-pollination.

Question 12.
What is meant by herkogamy?
Answer:
Herkogamy is an adaptation in which die essential organs like stamens and stigmas are arranged in such a way that self-pollination becomes impossible. Eg: Hibiscus.

Question 13.
Mention any two birds, that help in pollination.
Answer:

Humming birds,
Sun birds.

Question 14.
Define fertilization.
Answer:
Fertilization is defined as the process in which the fusion of male and female gamete takes place.

Question 15.
Define porogamy.
Answer:
Porogamy is the process in which the pollen tube enters the ovule through the micropyle.

Short answer questions

Question 1.
List out any three scientists who worked on plant embryology.
Answer:

S.C. Maheswari
K.V. Krishnamurthy
S. Guha.

Question 2.
Mention and three advantages of vegetative reproduction.
Answer:

For the propagation of a species, only one individual plant is enough.
The progenies are genetically identical.
In some plants like Spinifex, vegetative reproduction enables them to spread rapidly.

Question 3.
Explain briefly about approach grafting.
Answer:
In approach grafting, the rooting occurs both in scion and stock, which is grown in a pot. The pot is brought near the scion. A small slice is cut from the stem, which is of the same thickness. The cut surfaces of both stock and scion are brought together and tied with tape in order to hold together. After 1-4 weeks, the plant is detached by cutting the tip of stock and base of the scion and grown in a separate pot.

Question 4.
Explain the term micropropagation.
Answer:
Micropropagation is a method of plant propagation in which the regeneration of a whole plant occurs from a single cell, tissue, or small piece of vegetative structures through tissue culture.

Question 5.
Mention any three functions of the tapetum.
Answer:

Tapetum supplies nutrition to the developing microspores.
It plays an important role in pollen wall formation.
The exine proteins, responsible for rejection reaction are derived from tapetal cells.

Question 6.
Explain pollenkitt with its function.
Answer:
Pollenkitt is a yellow or orange coloured layer contributed by the tapetum. They are made up of carotenoids or flavonoids. It forms an oily, thick viscous coating over pollen surface to attract insects and to protect from damage due to UV radiation.

Question 7.
What are the types of cross-pollination? and Explain.
Answer:
The transfer of pollen on the stigma of another flower is referred as cross-pollination.
Cross-pollination is of two types.

Geitonogamy: In this process, the pollen deposits on the stigma of another flower of the same plant. It usually occurs in monoecious plants. Though it is functionally cross-pollination, it is similar to autogamy because the pollen comes from the same plant.
Xenogamy: When the transfer of pollen on another flower of a genetically different plant of the same species, it is called xenogamy.

Question 8.
Distinguish monoecious and dioecious plants.
Answer:

Monoecious	Dioecious
Male and female flowers occur on the same plant. Eg: coconut.	Male and female flowers occur on Afferent plants. Eg: Papaya, date palm.
In some plants caster and maize autogamy is prevented. But geitonogamy occurs.	In this both autogamy and geitonogamy are prevented.

Question 9.
Explain entomophily.
Answer:
Entomophily refers to pollination by insects, which include bees, moths, butterflies wasp, and beetles. Among them, the dominant pollinators are the bees. They are the main flower visitors. The majority of angiosperm are pollinated by insects. Entomophily is the most common type of pollination.

Long answer questions

Question 1.
Describe the methods of layering.
Answer:
Layering is an artificial method of vegetative propagation, in which the stem of a parent plant is made to develop roots. When the stem develops roots, the rooted portion is cut and planted to grow as a new plant. Eg: Ixora and Jasminum. There are two types of layering.

Mound layering: when plants have flexible branches, the lower branch with leaves is bent to the ground and buried in the soil. So that the tip of the branch
is exposed above the soil. The part of the stem which is buried in the soil develops roots and a cut is made in the parent plant so that the buried part grows into a new plant.
Air layering: In this method, the stem is girdled at the nodal region and root promoting hormones are applied to the girdled portion, which is covered with damp or moist soil using a polythene sheet. After 2-4 months, roots emerge in these branches. These rooted branches. are removed from the parent plant and grown in a separate pot or ground.

Question 2.
Explain tapetum and its types.
Answer:
Tapetum is the innermost layer of another wall and is derived from the peripheral wall layer and the connective tissue of another lining the anther locule. Thus, the tapetum is dual in origin and gives nourishment to the developing sporogenous tissue, microspore mother cells, and microspores. The cells of the tapetum may be uninucleate or may have more than one nucleus or polyploid nucleus. It also helps in the formation of wall material, sporopollenin, pollenkitt, tryphine and number of proteins that control incompatibility reaction. The fertility and sterility of the microspores or pollen grains are also controlled by tapetum.
Based on the behavior of tapetum, there are two types:

Secretary tapetum: In this case, original position, and cellular integrity are retained and supplies nourishment to the developing microspore.
Invasive tapetum: It is otherwise known as periplasmodial type of tapetum. In this type, the cells loose their inner tangential and radial walls and the protoplast of all tapetal cells coalesces to form periplasmodium.

Question 3.
Draw the different stages of the development of ovule and embryo sac of polygonum type.
Answer:
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 1

Question 4.
Enumerate the characteristic features of anemophilous plants.
Answer:

Pendulous, catkin-like flower or spike inflorescence are present.
The flowers are brought well above the leaves with an elongated axis of the inflorescence.
The perianth is absent or highly reduced.
The stamens are numerous with long filaments, exerted and versatile anther.
Enormous quantities of pollen grains are produced compared to the number of ovules available for pollination.
The pollen grains are minute, light, and dry in order to transport long-distance by the wind.
In some plants like Urtica, the anthers burst violently and release the pollen into the air.
Stigmas are comparatively large protruding, sometimes branched feathery, and adapted to catch the pollen grains.
Generally, a single ovule is present.
Flowers are produced before the new leaves appear so that the pollen can be carried by wind without any hindrance of leaves.

Question 5.
Explain the term Apomixis. Add a note on its types.
Answer:
Apomixis is the phenomenon in which reproduction does not involve the union of male and female gamete. Whereas the fertilization involving the union of male and female gametes in flowering plants is called amphimixis. Winkler in 1908 introduced the term apomixis. This is the substitution of usual sexual reproduction and this does not involve meiosis and syngamy.
Apomixis was classified into two types as Recurrent and Non-recurrent by Maheswari in 1950.
Recurrent apomixis: This induces vegetative reproduction and agamospermy. Vegetative reproduction is the propagation of plants by any part other than seeds.
Eg: Bulbs – Allium
Bulbils – Fritilaria imparialis
Runner – Mentha arvensis
Sucker – Chrysanthemum
Agamospermy refers to the processes by which embryos are formed by eliminating meiosis and syngamy.
Non-recurrent apomixis: Haploid embryo sac developed after meiosis, develops into an embryo without fertilization.

Choose the correct answers:

1. Match the following:
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 2
(a) (p)-(iv); (q)-(iii); (r)-(ii); (s)-(i)
(b) (p)-(iii); (q)-(iv); (r)-(i); (s)-(ii)
(c) (p)-(ii); (q)-(i); (r)-(iv); (s)-(iii)
(d) (p)-(iii); (q)-(i); (r)-(iv); (s)-(ii)
Answer:
(b) (p)-(iii); (q)-(iv); (r)-(i); (s)-(ii)

2. Match the following:
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 3
(a) (p)-(iv); (q)-(iii); (r)-(ii); (s)-(i)
(b) (p)-(iii); (q)-(iv); (r)-(i); (s)-(ii)
(c) (p)-(iii); (q)-(iv); (r)-(ii); (s)-(i)
(d) (p)-(ii); (q)-(i); (r)-(iv); (s)-(iii)
Answer:
(c) (p)-(iii); (q)-(iv); (r)-(ii); (s)-(i)

3. Match the following:
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 4
(a) (p)-(iv); (q)-(iii); (r)-(ii); (s)-(i)
(b) (p)-(iii); (q)-(i); (r)-(iv); (s)-(ii)
(c) (p)-(ii); (q)-(i); (r)-(iv); (s)-(iii)
(d) (p)-(iii); (q)-(iv); (r)-(ii); (s)-(i)
Answer:
(d) (p)-(iii); (q)-(iv); (r)-(ii); (s)-(i)

4. Match the following:
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 6

(a) (p)-(iii); (q)-(i); (r)-(iv); (s)-(ii)
(b) (p)-(iv); (q)-(ii); (r)-(iii); (s)-(i)
(c) (p)-(ii); (q)-(i); (r)-(iv); (s)-(iii)
(d) (p)-(ii); (q)-(iii); (r)-(iv); (s)-(i)
Answer:
(a) (p)-(iii); (q)-(i); (r)-(iv); (s)-(ii)

5. Match the following:
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 7
(a) (p)-(iv); (q)-(iii); (r)-(i); (s)-(ii)
(b) (p)-(iv); (q)-(iii); (r)-(ii); (s)-(i)
(c) (p)-(iv); (q)-(i); (r)-(ii); (s)-(iii)
(d) (p)-(ii); (q)-(i); (r)-(iv); (s)-(iii)
Answer:
(b) (p)-(iv); (q)-(iii); (r)-(ii); (s)-(i)

6. Who discovered the process of syngamy?
(a) E. Strasburger
(b) G.B. Amici
(c) Hofmeister
(d) E. Hanning
Answer:
(a) E. Strasburger

7. Vegetative propagation takes place through leaf buds in:
(a) Hibiscus
(b) Begonia
(c) Mango
(d) Malus
Answer:
(b) Begonia

8. The inner tangential wall of anther develops bands of:
(a) Polysaccharides
(b) Glycoprotein
(c) a cellulose
(d) p cellulose
Answer:
(c) a cellulose

9. Matured anther cavity is filled with:
(a) Megaspore
(b) Young microspore
(c) Embryo sac
(d) Pollen grain
Answer:
(d) Pollen grain

10. Epihydrophily type of pollination takes place in:
(a) Hydrilla
(b) Elodea
(c) Ipomea
(d) Pistia
Answer:
(b) Elodea

11. Choose the odd one out.
(a) Protogyny
(b) Cleistogamy
(c) Autogamy
(d) Homogamy
Answer:
(a) Protogyny

12. Find out the odd one:
(a) Cutting
(b) Grafting
(c) Micropropagation
(d) Air layering
Answer:
(c) Micropropagation

13. Choose the odd one.
(a) Endothecium
(b) Nucellus
(c) Tapetum
(d) Epidermis
Answer:
(b) Nucellus

14. Identify the odd one.
(a) Chalaza
(b) Endothelium
(c) Hilum
(d) Ubisch bodies
Answer:
(d) Ubisch bodies

15. Choose the odd one out.
(a) Orthotropous
(b) Microsporous
(c) Hemianatropous
(d) Campylotropous
Answer:
(b) Microsporous

16. Choose the incorrect pair.
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 8
Answer:
(d)

17. Choose the correct pair.
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 9
Answer:
(c)

18. Choose the incorrect pair.
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 10
Answer:
(d)

19. Identify the correct pair.
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 11
Answer:
(c)

20. Choose the incorrect pair.
TN Board 12th Bio Botany Important Questions Chapter 1 Asexual and Sexual Reproduction in Plants 12

Answer:
(d)

21. Assertion: The cells of endothecium are hygroscopic in nature.
Reason: They absorb water from air.
(a) Assertion is true and the Reason is false.
(b) Assertion is false and the Reason is true.
(c) Both Assertion and Reason are true.
(d) Both Assertion and Reason are false.
Answer:
(c) Both Assertion and Reason are true.

22. Assertion: P0llen grains are the immediate product of meiosis of the microspore mother cell.
Reason: the p0llen grains have a diploid number of chromosomes.
(a) Assertion is true and the Reason is false.
(b) Assertion is false and Reason is true.
(c) Both Assertion and Reason are true.
(d) Both Assertion and Reason are false.
Answer:
(d) Both Assertion and Reason are false.

23. Assertion: The filiform apparatus of synergids guides the pollen tube into the egg.
Reason: It helps in the absorption and conduction of nutrients.
(a) Assertion is true and the Reason is false.
(b) Assertion is false and the Reason is true.
(c) Both Assertion and Reason are true.
(d) Both Assertion and Reason are false.
Answer:
(a) Assertion is true and the Reason is false.

24. Assertion: self-p0llinati0n is possible only in those plants which bear bisexual flowers.
Reason: The availability of pollen and stigma are in the same flower for self-pollination.
(a) Assertion is true and the Reason is false.
(b) Assertion is false and the Reason is true.
(c) Both Assertion and Reason are true.
(d) Both Assertion and Reason are false.
Answer:
(c) Both Assertion and Reason are true.

25. Assertion: In some bisexual flowers, anthers and stigma mature at different times.
Reason:
This is a special adaptation in plants to prevent cross-fertilization.
(a) Assertion is true and the Reason is false.
(b) Assertion is false and the Reason is true.
(c) Both Assertion and Reason are true.
(d) Both Assertion and Reason are false.
Answer:
(d) Both Assertion and Reason are false.

26. Which of the following statement is correct?
(a) Budding is the method of asexual reproduction in spirogyra.
(b) Formation of conidia is the method of asexual reproduction in penicillium.
(c) asexual reproduction in planaria is the production of gametes.
(d) In hydra, the asexual reproduction is through the fragmentation method.
Answer:
(b) Formation of conidia is the method of asexual reproduction in penicillium.

27. Choose the incorrect statement.
(a) In mango, grafting is followed for vegetative propagation.
(b) In moringa, the stem cutting method is followed for vegetative propagation.
(c) In Hibiscus, leaf-cutting method is followed for vegetative propagation.
(d) In the Ixora plant, the layering method is followed by vegetative propagation.
Answer:
(c) In Hibiscus, leaf-cutting method is followed for vegetative propagation.

28. Find out the correct statement.
(a) Androecium and gynoecium are died essential organs for reproduction in plants.
(b) In protandrous flowers die gynoecium matures first.
(c) In protogynous flowers the androecium matures first.
(d) None of the above statements is correct.
Answer:
(a) Androecium and gynoecium are died essential organs for reproduction in plants.

29. Which of the following statement is false?
(a) The formation of haploid microspores from diploid microspore mother cell is through meiosis.
(b) The primary sporogenous cells may undergo a few meiotic divisions to form sporogenous tissue.
(c) The microspore mother cells are formed from the sporogenous tissue.
(d) All the above statements are correct.
Answer:
(b) The primary sporogenous cells may undergo a few meiotic divisions to form sporogenous tissue.

30. Choose the correct statement.
(a) Orthotropous type of ovule is present in Cactaceae.
(b) Anatropous type of ovules are found in dicots and monocots.
(c) Hemianatropous type of Ovule is present in Alismataceae.
(d) Amphitropous type of ovule is present in Cactaceae.
Answer:
(b) Anatropous type of ovules are found in dicots and monocots.

Samacheer Kalvi 11th Accountancy Guide Chapter 14 Computerised Accounting

April 1, 2021

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Accountancy Guide Pdf Chapter 14 Computerised Accounting Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 14 Computerised Accounting

11th Accountancy Guide Computerised Accounting Text Book Back Questions and Answers

I. Multiple Choice Questions

Choose the correct answer.

Question 1.
n accounting, computer is commonly used in the following areas:
a) Recording of business transactions
b) Payroll accounting
c) Stores accounting
d) All the above
Answer:
d) All the above

Question 2.
Customised accounting software is suitable for ________.
a) Small, conventional business
b) Large, medium business
c) Large, typical business
d) None of the above
Answer:
b) Large, medium business

Question 3.
Which one is not a component of computer system?
a) Input unit
b) Output unit
c) Data
d) Central Processing Unit
Answer:
c) Data

Question 4.
An example of output device is ________.
a) Mouse
b) Printer
c) Scanner
d) Keyboard
Answer:
b) Printer

Question 5.
One of the limitations of computerised accounting system is ________.
a) System failure
b) Accuracy
c) Versatility
d) Storage
Answer:
a) System failure

Question 6.
Expand CAS ________.
a) Common Application Software
b) Computerised Accounting System
c) Centralised Accounting System
d) Certified Accounting System
Answer:
b) Computerised Accounting System

Question 7.
Which one of the following is not a method of codification of accounts?
a) Access codes
b) Sequential codes
c) Block codes
d) Mnemonic code
Answer:
a) Access codes

Question 8.
TALLY is an example of ________.
a) Tailor-made accounting software
b) Ready-made accounting software
c) In-built accounting software
d) Customised accounting software
Answer:
b) Ready-made accounting software

Question 9.
People who write codes and programmes are called as ________.
a) System analysts
b) System designers
c) System operators
d) System programmers
Answer:
d) System programmers

Question 10.
Accounting software is an example of ________.
a) System software
b) Application software
c) Utility software
d) Operating software
Answer:
b) Application software

II. Very Short Answer Questions

Question 1.
What is a computer?
Answer:

A computer can be described as an electronic device designed to accept raw data as input, processes them and produces meaningful information as output.
It has the ability to perform arithmetic and logical operations as per given set of instructions called program.

Question 2.
What is CAS?
Answer:

Computerised accounting system refers to the system of maintaining accounts using computers.
It involves the processing of accounting transactions through the use of hardware and software in order to keep and produce accounting records and reports.
Computerised accounting system takes accounting transactions as inputs that are processed through accounting software.

Question 3.
What is hardware?
Answer:

The physical components of a computer constitute its hardware.
Hardware consists of input devices and output devices that make a complete computer system.
Examples of input devices are keyboard, optical scanner, mouse, joystick, touch screen and stylus which are used to feed data into the computer.
Output devices such as monitor and printer are media to get the output from the computer.

Question 4.
What is meant by software?
Answer:
A set of programs that form an interface between the hardware and the user of a computer system are referred to as software.

Question 5.
What is accounting software?
Answer:
Accounting software describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, journal, general ledger, payroll, and trial balance. It functions as an accounting information system

Question 6.
Name any two accounting packages.
Answer:

Readymade software
Customised software
Tailormade software

Question 7.
Give any two examples of readymade software.
Answer:

Tally ERP
Profit Books

Question 8.
What is coding?
Answer:

Coding refers to creating computer programming code.
The process of assigning something for classification or identification is known as coding.

Question 9.
What is grouping of accounts?
Answer:

Each minor head in accounting have number of sub-heads.
After classification of accounts into various groups namely, major, minor and sub-heads and allotting codes to each account these are programmed into the computer system.
A proper codification requires a systematic grouping of accounts.
The major groups or heads could be Assets, Liabilities, Revenues and Expenses.
The sub-groups or minor heads could be capital, non-current liabilities, current assets, sales and so on.

Question 10.
What are mnemonic codes?
Answer:

A mnemonic is a term, symbol or name used to define or specify a computing function.
Assembly language also uses a mnemonic to represent machine operation, or opcode.
Example are SJ – Sales Journals ; HQ – Head Quarters.

III. Short Answer Questions

Question 1.
What are the various types of accounting software?
Answer:
1. Readymade software:

These packages are standardised or readymade packages which can be used by the business enterprises immediately on procurement. These packages are used by small and conventional business enterprises.
Cost of installation and maintenance is very low. Training cost is negligible and sometimes the vendor provides free of cost training.
This software’s are used by those enterprises where financial transactions are simple, uniform and routine in nature. Few examples of such type of software are Tally, Busy, Marg, and Profit books.

2. Customised software:

Many a time, it is not possible that ready-to-use packages suit the requirements of the business enterprise.
In such circumstances, customised packages may help the business enterprise for fulfilling their requirements. Customised packages can be modified according to the need of the enterprise.
For example, software can record attendance of the employees and on the requirement of the customer it can also count the absence of employees in a month, etc.

3. Tailor made software:

Large enterprises have their own way of functioning.
For effective management information system, varied and specific information is frequently required by many users which may not be needed in case of small or medium scale enterprises.
In such enterprises, depending upon their functioning, need based software’s known as tailored packages are installed.
The cost of these packages is very high and specific training for using these packages is also required.

Question 2.
Mention any three limitations of computerised accounting system.
Answer:
1. Heavy cost of installation – Computer hardware needs replacement and software needs to be updated from time to time with the availability of newer versions.

2. Cost of training – To ensure effective and efficient use of computerised system of accounting, newer versions of hardware and software are to be introduced. These require special training and hence, cost is incurred to train the staff personnel.

3. Fear of unemployment – On account of the introduction of computerised accounting system, the employees feel insecure that they may lose employment and show less interest in computer related work.

4. Disruption of work – When computerised system is introduced, the existing process of accounting and other works are interrupted. This results in certain changes in the working environment.

5. System failure – The danger of a system crashing due to some failure in hardware can lead to subsequent interruption of work. This is more when no back-up is made.

Question 3.
State the various types of coding methods.
Answer:
Following are the three methods of codification.
(a) Sequential codes – In sequential code, numbers and/or letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheques, invoices, etc. A sequential code can facilitate document search.
For example:

Code – Accounts
CL001 – ABC LTD
CL002 – XYZ LTD
CL003 – SCERT

(b) Block codes – In a block code, a range of numbers is partitioned into a desired number of sub-ranges and each sub- range is allotted to a specific group. In most of the cases of block codes, numbers within a sub – range follow sequential coding scheme, i.e., the numbers increase consecutively.
For example:

Code – Dealer type
100 – 199 – Small pumps
200 – 299 – Medium pumps
300 – 399 – Pipes
400 – 499 – Motors

(c) Mnemonic codes – A mnemonic code consists of alphabets or abbreviations as symbols to codify a piece of information.
For example:

Code – Information
SJ – Sales Journals
HQ – Head Quarters

Question 4.
List out the various reports generated by computerised accounting system.
Answer:
Computerised accounting system takes accounting transactions as inputs that are processed through accounting software to generate the following reports:

Day books /Journals
Trading account
Ledger
Profit and loss account
Trial balance
Balance sheet, etc.

Question 5.
Tate the input and output devices of a computer system,
Answer:
1. Input devices – Examples of input devices are keyboard, optical scanner, mouse, joystick, touch screen and stylus which are used to feed data into the computer.

2. Output devices – Examples Output devices such as monitor and printer are media to get the output from the computer.

11th Accountancy Guide Computerised Accounting Additional Important Questions and Answers

I. Choose the correct answer.

Question 1.
An example of input device is ________.
a) Mouse
b) Printer
c) Monitor
d) Headphone
Answer:
a) Mouse

Question 2.
The facts and figures that are fed into a computer for further processing are called ________.
a) Procedure
b) Connectivity
c) Data
d) Reliability
Answer:
c) Data

Question 3.
________ packages are used by small and conventional business enterprises.
a) Readymade software
b) Customised software
c) Tailor made software
d) None of these
Answer:
a) Readymade software

Question 4.
________ packages c n be modified according to the need of the enterprise.
a) Readymade software
b) Customised software
c) Tailor made software
d) None of these
Answer:
b) Customised software

Question 5.
________ packages are used by medium or large nature business enterprises.
a) Readymade software
b) Customised software
c) Tailor made software
d) None of these
Answer:
b) Customised software

Question 6.
________ is a step by step series of instructions to per! rm a specific function and achieve desired output.
a) Procedure
b) Connectivity
c) Data
d) Reliability
Answer:
a) Procedure

Question 7.
The physical components of a computer constitute it ________.
a) Hardware
b) Software
c) Data
d) Procedure
Answer:
a) Hardware

Question 8.
A set of tools and programs to manage the overall working of a computer using a defined set of hardware components is called an ________.
a) Programming software
b) Utility software
c) Application software
d) Operating system
Answer:
d) Operating system

Question 9.
________ are designed specifically for managing the computer device and its resources.
a) Programming software
b) Utility software
c) Application software
d) Operating system
Answer:
b) Utility software

Question 10.
________ is an identification mark.
a) Hardware
b) Software
c) Data
d) Code
Answer:
d) Code

Question 11.
________ codes are applied primarily to source documents such as cheques, invoices, etc.
a) Sequential codes
b) Block codes
c) Mnemonic codes
d) None of these
Answer:
a) Sequential codes

Question 12.
________ code can facilitate document search.
a) Mnemonic codes
b) Block codes
c) Sequential codes
d) None of these
Answer:
c) Sequential codes

Question 13.
________ code, a range of numbers is partitioned into a desired number of sub-ranges and each sub-range is allotted to a specific group.
a) Mnemonic codes
b) Block codes
c) Sequential codes
d) None of these
Answer:
b) Block codes

Question 14.
________ code consists of alphabets or abbreviations as symbols to codify a piece of information.
a) Mnemonic codes
b) Block codes
c) Sequential codes
d) None of these
Answer:
a) Mnemonic codes

Question 15.
________ consists of input devices and output devices that make a complete computer system.
a) Hardware
b) Software
c) Data
d) Code
Answer:
a) Hardware

Question 16.
How many formats are available white exporting a file?
a) 2
b) 3
c) 5
d) 7
Answer:
b) 3

Question 17.
Tally package was developed by ________.
a) Tally solutions
b) Microsoft
c) Apple Solutions
d) None of the above
Answer:
a) Tally solutions

Question 18.
Which device of computer operation dispenses with the use of the keyboard?
a) Joystick
b) Mouse
c) Light Pen
d) Touch pen
Answer:
b) Mouse

Question 19.
Which of the following device primarily used to provide hard copy?
a) CRT
b) Pen drive
c) Printer
d) Card Reader
Answer:
c) Printer

Question 20.
Which of the following produces high-quality output?
a) Impact Printer
b) Non-Impact Printer
c) Both (a) and (b)
d) one of the above
Answer:
b) Non-Impact Printer

Question 21.
Which of the following is not a hardware?
a) Printer
b) Scanner
c) Interpreter
d) All of the above
Answer:
c) Interpreter

Question 22.
The copimonly used input device is the ________.
a) Mouse
b) Monitor
c) Keyboard
d) None of the above
Answer:
c) Keyboard

Question 23.
The shortcut to use calculator is ________.
a) Ctrl + M
b) Ctrl + N
c) Ctrl + O
d) Ctrl + C
Answer:
b) Ctrl + N

Question 24.
Suspense account is grouped under ________.
a) Assets
b) Liabilities
c) Income
d) Expenses
Answer:
b) Liabilities

Question 25.
________ is a step by step series of instructions to perform a specific function and achieve desired output.
a) Procedure
b) Data
c) Connectivity
d) All the above
Answer:
a) Procedure

II. Short Answer Questions

Question 1.
What is Operating system?
Answer:
A set of tools and programs to manage the overall working of a computer using a defined set of hardware components is called an operating system. It is the interface between the user and the computer system.
Example: DOS, Windows, UBUNTU, Imac, etc.

Question 2.
What is Programming software?
Answer:
Special software to accept data and interpret them in the form of machine/assembly language under-standable by a computer.
Example: C, PASCAL, COBOL, etc.

Question 3.
What is Utility software?
Answer:
These are designed specifically for managing the computer device and its resources.
Example: File manager, Anti-virus software, etc.

Question 4.
Give any two examples of Application software?
Answer:

General purpose software.
Specific purpose software.

Question 5.
Give any two examples of System software?
Answer:

Operating system.
Programming software.
Utility software.

Question 6.
What is data?
Answer:
The facts and figures that are fed into a computer for further processing are called data. Data are raw input until the computer system interprets them using machine language, stores them in memory, classifies them for processing and produces results in conformance with the instructions given to it. Processed and useful data are called information which is used for decision making.

Question 7.
What are sequential codes? ‘
Answer:
In sequential code, numbers and/or letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheques, invoices, etc. A sequential code can facilitate document search.
For example:
Samacheer Kalvi 11th Accountancy Guide Chapter 14 Computerised Accounting 1

Question 8.
What are sequential codes?
Answer:
In a block code, a range of numbers is partitioned into a desired number of sub-ranges and each sub-range is allotted to a specific group. In most of the cases of block codes, numbers within a sub-range follow sequential coding scheme, i.e., the numbers increase consecutively.
For example:
Samacheer Kalvi 11th Accountancy Guide Chapter 14 Computerised Accounting 2

Question 9.
What is General purpose software?
Answer:
This type of application can be used for a variety of tasks and not limited to one particular function.
Example: MS-Office.

Question 10.
What is Specific purpose software?
Answer:
This software is created to execute one specific task and they are customised to the needs of user.
Example:
Accounting software, payroll software, etc.

Question 11.
Explain the basic Features of computerised accounting system.
Answer:
i) Simple and integrated – CAS is designed to automate and integrate ail the business operations such as purchase, sales, finance, inventory and manufacturing. The CAS may be integrated with enhanced Management Information System (MIS), multi-lingual and data organisation capabilities to simplify all the business processes of the organisation easily and cost-effectively.

ii) Speed – It can perform functions at much higher speed than doing the same manually.

iii) Accuracy – Computers perform functions with high degree of accuracy. If hardware, software and input by people are proper, the computerised accounting system can assure of accurate outcome.

iv) Reliability – Computers are used to process large volumes of data and hence, data provided by it are reliable.

v) Versatility – Computer and accounting software have the ability to perform diverse tasks. For example, by simply recording accounting entries through accounting software, one can get trial balance, trading account, profit and loss account, balance sheet and diverse reports.

vi) Transparency – With computerised accounting, the organisation will have greater transparency of day-to-day business operations and access to the vital information.

vii) Scalability – CAS enables processing of any volume of data in tune with the change in the size of the business.

viii) On-line facility – CAS offers online facility to store and process transaction and data so as to retrieve information to generate and view financial reports in any part of the world.

Question 12.
Discuss the Advantages of Computerised Accounting System.
Answer:
i) Faster processing – Computers require far less time than human beings in performing a particular task. Therefore, accounting data are processed faster using a computerised accounting system.

ii) Accurate information – There is less space for error because only one account entry is needed for each transaction unlike repeated posting of the same accounting data in manual system.

iii) Reliability – Computer systems are immune to boredom, tiredness or fatigue. Therefore, these can perform repetitive functions effectively and are highly reliable.

iv) Easy availability of information – The data are easily available and can be communicated to different users at the same time.

v) Up-to-date information – Account balances will always be up to date since the records are automatically updated as and when accounting data are entered or stored.

vi) Efficiency – The computer based accounting system ensures better use of time and resources.

vii) Storage and retrieval – Computer based systems require a fractional amount of physical space as compared to the books of accounts in the form of journals, ledgers and accounting registers.

viii) Works as a motivator to employees – Employees using computer systems feel more valued as they are trained and specialised for the job.

Question 13.
Explain the Components of Computerised Accounting System.
Answer:
i) Hardware – The physical components of a computer constitute its hardware. Hardware consists of input devices and output devices that make a complete computer system. Examples of input devices are keyboard, optical scanner, mouse, joystick, touch screen and stylus which are used to feed data into the computer. Output devices such as monitor and printer are media to get the output from the computer.

ii) Software – A set of programs that form an interface between the hardware and the user of a computer system are referred to as software.

iii) People – The most important element of a computer system is its users. They are also called live-ware of the computer system.

iv) Procedure – Procedure is a step by step series of instructions to perform a specific function and achieve desired output.

v) Data – The facts and figures that are fed into a computer for further processing are called data. Data are raw input until the computer system interprets them using machine language, stores them in memory, classifies them for processing and produces results in conformance with the instructions given to it. Processed and useful data are called information which is used for decision making.

vi) Connectivity – When two or more computers are connected to each other, they can share information and resources such as sharing of files (data/music, etc), sharing of printer, sharing of facilities like the internet. This sharing is possible using wires, cables, satellite, infra-red, Bluetooth, microwave transmission, etc.

Question 14.
Differences between manual and computerised accounting system.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 14 Computerised Accounting 3

Question 15.
Compare ready to use software, customised software and tailor made software.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 14 Computerised Accounting 4

Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I

April 1, 2021

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Accountancy Guide Pdf Chapter 12 Final Accounts of Sole Proprietors – I Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 12 Final Accounts of Sole Proprietors – I

11th Accountancy Guide Final Accounts of Sole Proprietors – I Text Book Back Questions and Answers

I. Multiple Choice Questions

Choose the correct answer.

Question 1.
Closing Stock is an item of ________.
a) Fixed Asset
b) Current asset
c) Fictitious Asset
d) Intangible asset
Answer:
b) Current asset

Question 2.
Balance sheet is ________.
a) An account
b) A statement
c) Neither a statement nor an account
d) None of the above
Answer:
b) A statement

Question 3.
Net profit of the business increases the ________.
a) Drawings
b) Receivables
c) Debts
d) Capital
Answer:
d) Capital

Question 4.
Carriage inwards will be shown ________ .
a) In the trading account
b) In the profit and loss account
c) On the liabilities side
d) On the assets side
Answer:
a) In the trading account

Question 5.
Bank overdraft should be shown ________.
a) In the trading account
b) Profit and loss account
c) On the liabilities side
d) On the assets side
Answer:
c) On the liabilities side

Question 6.
Balance sheet shows of the business ________.
a) Profitability
b) Financial position
c) Sales
d) Purchases
Answer:
b) Financial position

Question 7.
Drawings appearing in the trial balance is ________.
a) Added to the purchases
b) Subtracted from the purchases
c) Added to the capital
d) Subtracted from the capital
Answer:
d) Subtracted from the capital

Question 8.
Salaries appearing in the trial balance is shown on the ________.
a) Debit side of trading account
b) Debit side of profit and loss account
c) Liabilities side of the balance sheet
d) Assets side of the balance sheet
Answer:
b) Debit side of profit and loss account

Question 9.
Current assets does not include ________.
a) Cash
b) Stock
c) Furniture
d) Prepaid expenses
Answer:
c) Furniture

Question 10.
Goodwill is classified as ________.
a) A current asset
b) A liquid asset
c) A tangible asset
d) An intangible asset
Answer:
d) An intangible asset

II. Very Short Answer Type Questions

Question 1.
Write a note on trading account.
Answer:

Trading refers to buying and selling of goods with the intention of making profit.
Trading account is a nominal account which shows the result of buying and selling of goods for an accounting period.
It is prepared to find out the difference between the revenue from sales and cost of goods sold.

Question 2.
What are wasting assets?
Answer:

When the asset is used regularly, it depreciates, eventually having little or no residual value.
During the period of depreciation, the asset is called a “wasting asset”.
Example, natural resources, such as gas and timber, are wasting assets that eventually are used and then have no remaining value.

Question 3.
What are fixed assets?
Answer:

Fixed assets are those assets which are acquired or constructed for continued use in the business and last for many years such as land and building, plant and machinery, motor vehicles, furniture etc.
It is classified into a. Tangible Assets and b. Intangible Assets.

Question 4.
What is meant by purchases returns?
Answer:

Purchases returns or returns outwards, are a normal part of business.
Goods may be returned to supplier if they carry defects or if they are not according to the specifications of the buyer.

Question 5.
Name any two direct expenses and indirect expenses. .
Answer:

Direct Expenses: Carriage inwards, Wages, Import Duty, and Royalty
Indirect Expenses: Office Expenses, Selling Expenses, Administrative Expenses

Question 6.
Mention any two differences between trial balance and balance sheet.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 1

Question 7.
What are the objectives of preparing trading account?
Answer:

Trading account provideds information about gross profit and gross loss.
It provides an opportunity to safeguard against possible losses.
It provides information about direct expenses and direct incomes.

Question 8.
What is the need for preparing profit and loss account?
Answer:

Ascertainment of net profit and net loss
To compare the profits
To have a control on expenses
It is used to prepare the balance sheet

III. Short Answer Questions

Question 1.
What are final accounts? What are its constituents?
Answer:

The business entities are interested in knowing periodically the results of business operations carried on and the financial soundness of the business.
In other words, they want to know the profitability and the financial position of the business.
These can be ascertained by preparing the final accounts or financial statements.
The final accounts are usually prepared at the end of the accounting period on the basis of balances of ledger accounts shown by the trial balance.

The final accounts or financial statements include the following:

Income Statement or Trading and Profit and Loss Account and
Position Statement or Balance Sheet.

The purposes of preparing the financial statements are:

To ascertain the financial performance of an enterprise and
To ascertain the financial position of an enterprise.
The income statement and balance sheet are prepared for these purposes respectively.
Income statement gives the manner in which the profit or loss for an accounting period is arrived at.
Hence, at the close of the accounting period, all nominal accounts (i.e. expenses, losses, revenues, gains, purchases, purchases returns, sales and sales returns) are to be closed by transferring to the income statement or trading and profit and loss account.

Question 2.
What is meant by closing entries? Why are they passed?
Answer:
1. Balances of all the nominal accounts are required to be closed on the last day of the accounting year to facilitate the preparation of trading and profit and loss account.

2. It is done by passing necessary closing entries in the journal proper.

3. Purchases have debit balance and a purchases return has credit balance.

4. At the end of the accounting year, the balance in purchases returns account is closed by transferring to purchases account.

5. Similarly, sales account has credit balance and sales returns have debit balance.

6. At the end of the accounting year, the balance in sales returns account is closed by transferring to sales account.

7. The various closing entries are as follows
(e.g.) for closing purchases returns account
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 2

Question 3.
What is meant by gross profit and net profit?
Answer:
Gross profit:

The difference between the totals of two sides of the trading account indicates either gross profit or gross loss.
If the total of the credit side is more, the difference represents gross profit.
On the other hand, if the total of the debit side is higher, the difference represents gross loss.
The gross profit or gross loss is transferred to profit and loss account.

Net profit:

After debiting indirect expenses and losses and crediting all indirect incomes and gains, if the total of the credit side of the profit and loss account exceeds the debit side, the difference is termed as net.
profit.
On the other hand, if the total in the debit side exceeds the credit side, the difference is termed as net loss. Net profit or net loss is transferred to the capital account.

Question 4.
“Balance sheet is not an account”- Explain.
Answer:
1. A balance sheet is a part of the final accounts. However, the balance sheet is a statement and not an account. It has no debit or credit sides and as such the words ‘To’ and ‘By’ are not used before the names of the accounts shown therein.

2. A balance sheet is a summary of the personal and real accounts, which have balances. Personal and real accounts having debit balances are shown on the right hand side known as assets side, whereas personal and real accounts having credit balances are shown on the left hand side known as liabilities side.

3. The totals of the two sides of the balance sheet must be equal. If the totals are not equal, it indicates existence of error. It must satisfy the accounting equation, i.e., Assets = Capital + Liabilities, following the dual aspect concept.

4. Balance sheet is prepared on a particular date and not for a fixed period. It discloses the financial position of a business on a particular date. It gives the balances only for the date on which it is prepared.

5. It shows the financial position of the business according to the going concern concept.

Question 5.
What are the advantages of preparing a balance sheet?
Answer:
1. The main purpose of preparing a balance sheet is to ascertain the true financial position of the business at a particular point of time.

2. It helps in comparing the cost of various assets of the business such as the amount of closing stock, amount due from debtors, amount of fictitious assets, etc.

Moreover as assets and liabilities of similar nature are grouped and presented in balance sheet, a comparative study of these assets and liabilities is facilitated. It helps in comparing the various liabilities of the business.

3. It helps in finding out the solvency position of the firm. The firm’s solvency position is favourable if the assets exceed the external liabilities. The firm’s solvency position is not favourable it the external liabilities exceed the assets.

Question 6.
What is meant by grouping and Marshalling of assets and liabilities?
Answer:

The assets and liabilities shown in the balance sheet are grouped and presented in a particular order.
The term ‘grouping’ means showing the items of similar nature under a common heading.
For example, the amount due from various customers will be shown under the head ‘Sundry debtors/ Similarly, under the head ‘Current assets’, the balance of cash, bank, debtors, stock and other current assets will be shown.
‘Marshalling’ is the arrangement of various assets and liabilities in a proper order.
Marshalling can be made in one of the following two ways:

a) In the order of liquidity:

According to this method, an asset which is most easily convertible into cash, i.e., cash in hand is shown first and then will follow those assets which are comparatively less easily convertible, So that the least liquid asset i.e., goodwill is shown last.
In the same way, the liabilities which are to be paid at the earliest will be shown first. In other words, current liabilities are shown first, then fixed or long-term liabilities and finally the proprietor’s capital.

b) In the order of permanence:

This method is exactly the reverse of the first method.
Asset which is more permanent, i.e., goodwill is shown first followed by assets which are less permanent. Similarly, those liabilities which are to be paid last will be shown first.
In other words, the proprietor’s capital is shown first, then fixed or long-term liabilities and lastly the current liabilities. Joint stock companies are required under the Companies Act to prepare their balance sheet in the order of permanence.

IV. Exercises

Question 1.
Prepare trading account in the books of Sivashankar from the following figures
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 3
Solution:
Trading account

Question 2.
Prepare trading account in the books of Mr. Sanjay for the year ended 31^st December 2017
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 5
Solution:
Trading account as on 31^st Dec 2017

Question 3.
From the following balances taken from the books of Saravanan, calculate gross profit for the year ended December 31, 2017
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 7
Solution:
Trading account as on 31^st Dec 2017

Question 4.
From the following details for the year ended 31^st March, 2018, prepare trading account.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 9
Solution:
Trading account as on 31^st Mar 2018

Question 5.
Ascertain gross profit or gross loss from the following:
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 11
Solution:
Trading account

Question 6.
From the following balances taken from the books of Victor, prepare trading account for the t year ended December 31, 2017:
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 13
Solution:
Trading account as on 31^st Dec 2017

Question 7.
Compute cost of goods sold from the following information
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 15
Solution:
Compute cost of goods sold from the following information.
Cost of goods sold = Opening stock + Net purchases + Direct expenses – Closing stock
= 10,000 + 80,000 + 7,000 -15,000 .
= ₹ 82,000

Question 8.
Find out the amount of sales from the following information:
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 16
Solution:
Find out the amount of sales from the following information:
Cost of goods sold = Opening stock + Net purchases – Closing stock
= 30,000 + 2,00,000 – 20,000
= ₹ 2,10,000
Let the sales be = 100
Less: Gross profit (30% on sales i.e,100) = 30
Cost of goods sold = ₹ 70
Therefore percentage of gross profit on cost of goods sold is $\frac { 30 }{ 70 }$ x 100
= 42.86%
Gross profit = 42.86% on ₹ 2,10,000
i.e = $\frac { 42.86 }{ 100 }$ x 2,10,000
= 90,000
Sales = Cost of goods sold + Gross profit
= 2,10,000 + 90,000
Sales = ₹ 3,00,000

Question 9.
Prepare profit and loss account in the books of Kirubavathi for the year ended 31^st December, 2016 from the following information:
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 17
Solution:
Trading account as on 31^st Dec 2016

Question 10.
Ascertain net profit or net loss from the following:
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 19
Solution:
Trading account

Question 11.
From the following details, prepare profit and loss account.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 21
Solution:
Trading account

Question 12.
From the following information, prepare profit and loss account for the year ending 31^st December, 2016.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 23
Solution:
Trading account as on 31^st Dec 2016

Question 13.
From the following balances obtained from the books of Mr. Ganesh, prepare trading and profit and loss account.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 26
Solution:
Trading and Profit & loss account

Question 14.
From the following balances extracted from the books of a trader, ascertain gross profit and net profit for the year ended March 31^st, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 28
Closing stock on December 31.12.2017 was ₹ 4,500
Solution:
Trading and Profit & loss A/c for the year ended 31^st Mar 2017

Question 15.
From the following particulars, prepare balance sheet in the books of Bragathish as on 31^st December, 2017
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 30
Solution:
Balance Sheet as on 31^st Dec 2017

Question 16.
Prepare trading and profit and loss account in the books of Ramasundari for the year ended 31^st December, 2017 and balance sheet as on that date from the following information:
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 32
Solution:
Trading and Profit & loss A/c for the year ended 31^st Dec 2017

Balance Sheet as on Ramasundari on 31^st December 2017

Question 17.
From the Trial balance, given by Saif, prepare final accounts for the year ended 31^st March, 2018 in his books.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 35
Closing stock (31-12-2017) ₹ 14,500
Solution:
Trading and Profit & loss A/c for the year ended 31^st Mar 2018

Balance sheet of saif on 31^st Mar 2018

Question 18.
Prepare trading and profit and loss account and balance sheet in the books of Deri, a trader, from the following balances as on March 31, 2018.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 38
Closing stock (31^st March, 2018) ₹ 8,000
Solution:
Trading and Profit & loss A/c for the year ended 31^st Mar 2018

Balance sheet of Deri as on 31^st March 2018.

11th Accountancy Guide Final Accounts of Sole Proprietors – I Additional Important Questions and Answers

I. Choose the correct answer.

Question 1.
Carriage outwards will be shown ________.
a) In the trading account
b) In the profit and loss account
c) On the liabilities side
d) On the assets side
Answer:
b) In the profit and loss account

Question 2.
Opening stock is ________.
a) Debited in trading account
b) Credited in trading account
c) Credit ¡n profit and loss account
d) Debited in profit and loss account
Answer:
a) Debited in trading account

Question 3.
___________ account enables the trader to find out gross profit or loss.
a) Trading Account
b) Profit and loss Account
c) Balance sheet
d) Trial balance
Answer:
a) Trading Account

Question 4.
__________ account enables the trader to find out Net profit or loss.
a) Trading Account
b) Profit and loss Account
c) Balance sheet
d) Trial balance
Answer:
b) Profit and loss Account

Question 5.
Fixed assets does not include ________.
a) Plant
b) Stock
c) Furniture
d) Computer
Answer:
c) Furniture

Question 6.
Current Liabilities does not include ________.
a) Sundry Creditors
b) Bills Payable
c) Debentures
d) Outstanding Expenses
Answer:
c) Debentures

Question 7.
All incomes are ________ in the profit and loss account.
a) Debited
b) Credited
c) Assets
d) Liabilities
Answer:
b) Credited

Question 8.
Bad debt is a ________ expense.
a) Office expenses
b) Administrative expenses
c) Selling expenses
d) Distribution expenses
Answer:
c) Selling expenses

Question 9.
Wages is an example of ________.
a) Capital expenses
b) Indirect expenses
c) Direct expenses
d) Revenue expenses
Answer:
c) Direct expenses

Question 10.
Fixed assets have ________.
a) Short life
b) long life
c) no life
d) All of these
Answer:
b) long life

Question 11.
________ refers to buying and selhng of goods with the intention of making profit.
a) Trading
b) Trial balance
c) Profit and loss account
d) Balance sheet
Answer:
a) Trading

Question 12.
The goods remaining unsold at the end of the accounting period are known as _________
a) Opening stock
b) Closing stock
c) Average stock
d) None of these
Answer:
b) Closing stock

Question 13.
________ is the arrangement of various assets and liabilities in a proper order.
a) Marshalling
b) Grouping
c) Recording
d) Packing
Answer:
a) Marshalling

Question 14.
Net profit or Net loss ¡s traflsferred to the ________ account.
a) Trading
b) Profit and loss
c) Capital
d) None of these
Answer:
c) Capital

Question 15.
Gross profit or Grosš loss is transferred to the _______ account.
a) Trading
b) Profit and loss
c) Capital
d) None of these
Answer:
b) Profit and loss

II. Very Short Answer Type Questions

Question 1.
Definition of trading accounting?
Answer:
According to J. R. Batliboi, “The trading account shows the results of buying and selling of goods. In preparing this account, the general establishment charges are ignored and only the transactions in goods are included.”

Question 2.
What is opening stock?
Answer:
The stock of goods remaining unsold at the end of the previous year is the opening stock of the current year. This item will not be there in a newly started business. It will not appear if it is adjusted with pur-chases. As opening stock would have been sold during the year, the cost of opening stock is included in trading account.

Question 3.
What do you mean by direct expenses?
Answer:
All the expenses incurred on the purchase of goods and for bringing the goods to the go down or place of business and to make them to saleable condition are known as direct expenses.

Question 4.
What is Carriage inwards or Freight inwards?
Answer:
Amount paid for transporting the goods purchased to the go down or business premises is called carriage inwards or carriage on purchases or freight inwards.

Question 5.
What is Wages?
Answer:
Amount paid to workers who are directly engaged in loading, unloading and handling of goods purchased is known as wages.

Question 6.
What is Dock Charges?
Answer:
These are the charges levied for shipping the cargo while entering or leaving docks. When they are paid on import of goods, they are treated as direct expenses.

Question 7.
What do you mean by direct expenses?
Answer:
The goods remaining unsold at the end of the accounting period are known as closing stock. They are valued at cost price or net realisable value (market price) whichever is lower.

Question 8.
Definition of Profit and Loss?
Answer:
According to Prof. Carter, “A Profit and Loss Account is an account into which all gains and losses are collected, in order to ascertain the excess of gains over the losses or vice-versa”.

Question 9.
Definition of Balance Sheet?
Answer:
According to J.R. Batliboi, “A Balance Sheet is a statement prepared with a view to measure the exact financial position of a business on a certain fixed date.”

Question 10.
State Methods of drafting a balance sheet.
Answer:
The balance sheet of business concern can be presented in the following two forms.

Horizontal form
Vertical form

Question 11.
Explain the Tangible fixed assets?
Answer:
Tangible fixed assets are those which have physical existence or which can be seen and felt. Examples: plant and machinery, building and furniture.

III. Short Answer Questions

Question 1.
What do you mean by current assets?
Answer:

Current assets are those assets which are either in the form of cash or can be easily converted into cash in the normal course of business or within one year.
In the words of Howard and Upton, “The current assets are usually defined as those assets which are convertible into cash through the normal course of business within a short time, ordinarily in a year.”
Current assets include cash in hand, cash at bank, short-term investments, bills receivable, debtors, prepaid expenses, accrued income, closing stock, etc.
Among these, closing stock is valued at cost or realisable value whichever is lower and debtors are shown after deducting a reasonable provision for bad and doubtful debts.

Question 2.
Explain the Intangible fixed assets?
Answer:

Intangible fixed assets are those which do not have any physical existence or which cannot be seen or touched.
Examples: goodwill, trade-marks, copy rights and patents. Intangible assets are as much valuable as tangible assets because they also help the firm in earning profits.
For example, goodwill helps in attracting customers and patents represent the know-how which helps in producing the goods.

Question 3.
What is the Need for preparation of trading account?
Answer:
i) Provides information about gross profit or gross loss:

It shows the gross profit or gross loss of the business for an accounting year.
This helps the business persons to find out gross profit ratio by expressing the gross profit as a percentage of sales.
It helps to compare and analyse with the ratios of the previous years.
Thus, it provides data for com-parison, analysis and planning for a future period.

ii) Provides an opportunity to safeguard against possible losses:

If the ratio of gross profit has decreased in comparison to the preceding years, effective measures can be taken to safeguard against future losses.
For example, the sale price of goods may be increased or steps may be taken to analyse and control the direct expenses.

iii) Provides information about direct expenses and direct incomes:

All the expenses incurred on the purchase of goods are direct expenses. They are recorded in the trading account.
Trading account also shows sales revenue, which is a direct income. With the help of trading account, percentage of such expenses on sales revenue can be calculated and compared with similar ratios of the previous years.
Thus, it enables the management to have control over the direct expenses.

Question 4.
What is the Need for preparation of profit and loss account?
Answer:
i) Ascertainment of net profit or net loss:

The profit and loss account discloses the net profit available to the proprietor or net loss to be borne by him.
Ascertainment of profitability helps in planning for the growth and efficiency of a business enterprise.
Inter-firm comparison and intra-firm comparison of profit and loss account items help in assessing efficiency in comparison with other enterprises and other departments of the same enterprise respectively.

ii) Comparison of profit – The net profit of the current year can be compared with the profit of the previous years. It helps to know whether the business is conducted efficiently or not.

iii) Control on expenses – Profit and loss account helps in comparing various expenses with the expenses of the previous years. The percentage of individual expenses to net sales can be calculated and compared with the similar ratios of previous years. Such a comparison will be helpful in taking effective steps for controlling unnecessary expenses.

iv) Helpful in the preparation of balance sheet – A balance sheet can be prepared only after ascertaining the net profit or loss through profit and loss account. Net profit or loss is shown in the balance sheet. Thus, it facilitates preparation of balance sheet.

Question 5.
What is the Need for preparation of balance sheet?
Answer:
a) The main purpose of preparing a balance sheet is to ascertain the true financial position of the business at a particular point of time.

b) It helps in comparing the cost of various assets of the business such as the amount of closing stock, amount due from debtors, amount of fictitious assets, etc.

c) It helps in finding out the solvency position of the firm. The firm’s solvency position is favourable if the assets exceed the external liabilities. The firm’s solvency position is not favourable it the external liabilities exceed the assets.

Question 6.
What are the Characteristics of balance sheet?
Answer:
a) A balance sheet is a part of the final accounts. However, the balance sheet is a statement and not an account. It has no debit or credit sides and as such the words ‘To’ and ‘By’ are not used before the names of the accounts shown therein.

b) A balance sheet is a summary of the personal and real accounts, which have balances. Personal and real accounts having debit balances are shown on the right hand side known as assets side, whereas personal and real accounts having credit balances are shown on the left hand side known as liabilities side.

c) The totals of the two sides of the balance sheet must be equal. If the totals are not equal, it indicates existence of error. It must satisfy the accounting equation, ie., Assets = Capital + Liabilities, following the dual aspect concept.

d) Balance sheet is prepared on a particular date and not for a fixed period. It discloses the financial position of a business on a particular date. It gives the balances only for the date on which it is prepared.

e) It shows the financial position of the business according to the going concern concept.

Question 7.
What is the Classification of assets?
Answer:
a) Fixed assets – Fixed assets are those assets which are acquired or constructed for continued use in the business and last for many years such as land and building, plant and machinery, motor vehicles, furniture, etc. According to Finley and Miller, “Fixed assets are assets of a relatively permanent nature used in the operations of business and not intended for sale”.

b) Current assets – Current assets are those assets which are either in the form of cash or can be easily converted into cash in the normal course of business or within one year. In the words of Howard and Upton, “The current assets are usually defined as those assets which are convertible into cash through the normal course of business within a short time, ordinarily in a year.”

Current assets include cash in hand, cash at bank, short-term investments, bills receivable, debtors, prepaid expenses, accrued income, closing stock, etc.

c) Liquid assets – Liquid assets are the assets which are either in the form of cash or which can be immediately converted into cash within a very short period of time, such as cash at bank, bills receivable, short-term investments, debtors and accrued incomes.

In other words, if prepaid expenses and closing stock are excluded from current assets, the balance is known as liquid assets.

d) Investments – Amount invested outside the business in shares, debentures, bonds and other securities is called investments.

If it is invested for a period more than a year they are called long-term investments. If they are invested for a period less than a year they are short term investments and shown under current assets.

e) Wasting assets – These are the assets which get exhausted gradually in the process of excavation. Examples: mines and quarries.

Question 8.
Explain the type of liabilities.
Answer:
a) Fixed or long-term liabilities – The liabilities which are to be repaid after one year or more are termed as long-term liabilities. Example: Long-term loans.

b) Current or short-term liabilities – The liabilities which are expected to be paid within the normal operating cycle or one year are termed as current or short-term liabilities. These include bank overdraft, creditors, bills payable, outstanding expenses, etc.

c) Contingent liabilities – These are the liabilities which are not certain at the time of preparation of balance sheet. These liabilities may or may not occur.

These are the liabilities which will become payable only on the happening of some specific event which itself is not certain, otherwise these need not be paid. Such liabilities are as follows:

IV. Problems and solutions

Question 1.
From the following particulars prepare the trading account and calculate the gross profit.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 41
Solution:
Trading Account

Question 2.
From the following figures, ascertain the gross profit
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 43
Solution:
Trading Account

Question 3.
Front the information given below prepare trading account.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 45
Solution:
Trading Account

Question 4.
From the following particulars calculate gross profit.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 47
Solution:
Trading Account

Question 5.
Calulate the Grose profit from the fllowing figures
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 49
Solution:
Trading Account

Question 6.
Prepare profit and loss account for the year ending 31.3.2017
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 51
Solution:
Trading Account

Question 7.
From the following information, prepare the Profit and Loss Account of a Trader for the year ending 31st March, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 53
Solution:

Question 8.
Prepare Trading and Profit Si Loss account from the following information:
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 55
Solution:
Trading and Profit & loss A/c Cr

Question 9.
From the following information, prepare a Balance Sheet of Mr.A as at 31st March 2016.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 57
Solution:

Question 10.
From the following information prepare balance sheet
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 59
Solution:
Balance Sheet

Question 11.
From the following information prepare trading account for the year ended 31.12.2016.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 61
Solution:
Trading A/c for the year ended 31st Dec 2016

Question 12.
From the following balance extracted from the books of M/S Lavanya and sons, prepare trading account for the year ended 31st March 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 63
Solution:
Trading A/c for the year ended 31st Mar 2017

Question 13.
Prepare trading account for the year ended 31st December 2017 from the following.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 65
Closing stock is valued at ₹ 6,00,000
Solution:
Trading A/c for the year ended 31st Dec 2017

Note: Selling expenses, carriage on sales advertisement and office rent will not appear in trading account as they are indirect expenses.

Question 14.
Following in then extract of a trial balance as on 31st December 2017 prepare trading account.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 67
Solution:
Trading A/c for the year ended 31st Dec 2017

Note:
Closing stock will not appear

Question 15.
From the following information prepare trading account for the year ending 31st December, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 69
Solution:
Trading A/c for the year ended 31st Dec 2017

Question 16.
Compute cost of goods sold from the following.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 71
Solution:
Cost of goods sold = Opening stock + Net purchases + Direct expenses – Closing stock
= 8,000 + 60,000 + 5,000 – 9,000
= ₹ 64,000

Note : Indirect expenses do not form part of cost of goods sold.

Question 17.
Find the amount of sales from the following.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 72
Solution:
Cost of goods sold = Opening stock + Net purchases + Direct expenses – Closing stock
= 20,000 + 70,000 + 10,000 – 30,000
= ₹ 70,000
Let the sales be less Gross profit (20% on sales i.e,100) (100 – 20 = 80)
cost of goods sold
Therefore percentage of Gross profit on cost of goods sold is $\frac { 20 }{ 80 }$ x 100 = 25%
Gross profit = 25% on 70,000 (Ex) $\frac { 25 }{ 100 }$ x 70,000 = 17,500
Sales = Cost of goods sold + Gross profit
= 70,000 + 17,500
= ₹ 87,500

Question 18.
Following the information prepare profit and loss account for 31st March 2018.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 73
Solution:
Profit and loss account for the year ended 31st march 2018

Question 19.
Prepare the profit and loss account for the year ended 31st December 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 75
Solution:
Profit and loss account for the year ended 31st December 2017

Note: Carriage inwards will not appear in profit and loss account as is a direct expense.

V. Long Answers

Question 1.
The following trial balance of Mr.A is extracted on 31.12.2017. Prepare Trading and Profit and Loss account. The closing stock is valued at ₹ 35,000,
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 77
Solution:
Trading and Profit & loss A/c for the year ended 31 Dec 2017

Balance Sheet of Mr. A as on 31.12.2017

Question 2.
From the following balances extracted from the accounts of Shri & Co for year ending 31.03.2018, prepare Trading and Profit & loss account and also Balance sheet as on that date.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 80
Solution:
Trading Account of Shri & Co for the year ended 31 Mar 2018

Balance Sheet as on 31 Mar 2018

Question 3.
From the trial balance f Thiru.Vetri for the year ending 31.12.2017 prepare trading & profit & Loss account for that period and also Balance sheet as on that date.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 83
Closing stock Rs. 1,970; outstanding rent ₹ 60
Solution:
Trading and Profi & loss A/c of Mr. Vetri for the year ended 31 Dec 2017

Balance Sheets as on 31 Dec 2017

Question 4.
The following particulars prepare profits and loss account year ended 31st December 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 86
Solution:
Profit and loss account for the year ended 31st Dec 2017

Question 5.
Following balance of Niruban, prepare balance sheet as on 31st December 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 88
Solution:
Balance Sheet as on 31^st Dec 2017

Question 6.
Prepare trading and profit and loss A/c of about Rahuman for the year ending 31st December, 2016 and balance sheet as on that date. The closing stock on 31st December 2016 was valued at ₹ 2,000
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 90
Solution:
Balance Sheet as on 31st Dec 2016

Balance sheet as on 31st December, 2016

Question 7.
Trial balance of sharn, prepare trading and profit and loss account for the year ending 31st December 2013 was valued at 25,00,000
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 93
Solution:
Profit and loss account for the year ended 31st Dec 2013

Balance sheet as on sharan 31st December 2017

Question 8.
The trial balance of Ms. Kalpana shows the following balance on March 31.2017
Samacheer Kalvi 11th Accountancy Guide Chapter 12 Final Accounts of Sole Proprietors – I 96
Adjustment:
The closing stock was valued at ₹ 60,000

Balance sheet of Ms. Kalpana as on 31st March 2017

Samacheer Kalvi 11th Accountancy Guide Chapter 11 Capital and Revenue Transactions

March 31, 2021

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Accountancy Guide Pdf Chapter 11 Capital and Revenue Transactions Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 11 Capital and Revenue Transactions

11th Accountancy Guide Capital and Revenue Transactions Text Book Back Questions and Answers

I. Multiple Choice Questions

Choose the correct answer.

Question 1.
Amount spent on increasing the seating capacity in a cinema hall is _______.
a) Capital expenditure
b) Revenue expenditure
c) Deferred revenue expenditure
d) None of the above.
Answer:
a) Capital expenditure

Question 2.
Expenditure incurred ₹ 20,000 for trial run of a newly installed machinery will be _______.
a) Preliminary expense
b) Revenue expenditure
c) Capital expenditure
d) Deferred revenue expenditure
Answer:
c) Capital expenditure

Question 3.
Interest on bank deposits is _______.
a) Capital receipt
b) Revenue receipt
c) Capital expenditures
d) Revenue expenditures
Answer:
b) Revenue receipt

Question 4.
Amount received from IDBI as a medium term loan for augmenting working capital _______.
a) Capital expenditures
b) Revenue expenditures
c) Revenue receipts
d) Capital receipt
Answer:
d) Capital receipt

Question 5.
Revenue expenditure is intended to benefit _______.
a) Past period
b) Future period
c) Current period
d) Any period
Answer:
c) Current period

Question 6.
Pre – operative expenses are _______.
a) Revenue expenditure
b) Prepaid revenue expenditure
c) Deferred revenue expenditure
d) Capital expenditure
Answer:
d) Capital expenditure

II. Very Short Answer Type Question

Question 1.
What is meant by revenue Expenditure?
Answer:

The expenditure incurred for day to day running of the business or for maintaining the earning capacity of the business is known as revenue expenditure.
It is recurring in nature. It is incurred to generate revenue for a particular accounting period. The revenue expenditure may be incurred in relation with revenue or in relation with a particular accounting period.
For example, cost of purchases is a revenue expenditure related to sales revenue. Rent and salaries are related to a particular accounting period.

Question 2.
What is capital expenditure?
Answer:

It is an expenditure incurred during an accounting period, the benefits of which will be available for more than one accounting period.
It includes any expenditure resulting in the acquisition of any fixed asset or contributes to the revenue earning capacity of the business. It is non- recurring in nature.

Question 3.
What is capital profit?
Answer:
Capital profit is the profit which arises not from the normal course of the business. Profit on sale of fixed asset is an example for capital profit.

Question 4.
Write a short note on revenue receipt.
Answer:
Receipts which are obtained in the normal course of business are called revenue receipts. It is recurring in nature. The amount received is generally small.

Examples:

Proceeds from sale of goods
Interest on investments received
Respet Received
Dividend from investment in shares.

Question 5.
What is meant by deferred revenue expenditure?
Answer:

An expenditure, which is revenue expenditure in nature, the benefit of which is to be derived over a subsequent period or periods is known as deferred revenue expenditure.
The benefit usually accrues for a period of two or more years. It is for the time being, deferred from being charged against income. It is charged against income over a period of certain years.

III. Short Answer Questions

Question 1.
Distinguish between capital expenditure and revenue expenditure.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 11 Capital and Revenue Transactions 1

Question 2.
Distinguish between capital receipt and revenue receipt.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 11 Capital and Revenue Transactions 2

Question 3.
What is deferred revenue expenditure? Give two examples.
Answer:
1. An expenditure, which is revenue expenditure in nature, the benefit of which is to be derived over a subsequent period or periods is known as deferred revenue expenditure.

2. The benefit usually accrues for a period of two or more years. It is for the time being, deferred from being charged against income. It is charged against income over a period of certain years.

Examples:

Considerable amount spent on advertising
Major repairs to plant and machinery

IV. Exercises

Question 1.
State whether the following expenditures are capital, revenue or deferred revenue.

Advertising expenditure, the benefits of which will last for three years.
Registration fees paid at the time of registration of a building.
Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.

Solution:

Deferred revenue expenditure
Capital Expenditure
Capital Expenditure

Question 2.
Classify the following items into capital and revenue.

Registration expenses incurred for the purchase of land.
Repairing charges paid for remodeling the old building purchased.
Carriage paid on goods purchased.
Legal expenses paid for raising of loans

Solution:

Capital
Capital
Revenue
Capital

Question 3.
State whether they are capital and revenue.
Answer:

Construction of building ₹ 10,00,000.
Repairs to furniture ₹ 50,000.
White-washing the building ₹ 80,000
Pulling down the old building and rebuilding ₹ 4,00,000

Solution:

Capital
Revenue
Revenue
Capital

Question 4.
Classify the following items into capital and revenue.

₹ 50,000 spent for railway siding.
Loss on sale of old furniture
Carriage paid on goods sold.

Solution:

Capital
Revenue
Revenue

Question 5.
State whether the following are capital, revenue and deferred revenue.

Legal fees paid to the lawyer for acquiring a land ₹ 20,000.
Heavy advertising cost of ₹ 12,00,000 spent on introducing a new product.
Renewal of factory licence ₹ 12,000.
A sum of ₹ 4,000 was spent on painting the factory.

Solution:

Capital
Deferred Revenue
Revenue
Revenue

Question 6.
Classify the following receipts into capital and revenue.

Sale proceeds of goods ₹ 75,000.
Loan borrowed from bank ₹ 2,50,000
Sale of investment ₹ 1,20,000.
Commission received ₹ 30,000.
₹ 1,400 wages paid in connection with the erection of new machinery.

Solution:

Revenue
Capital
Capital
Revenue
Capital

Question 7.
Identify the following items into capital or revenue.

Audit fees paid ₹ 10,000.
Labour welfare expenses ₹ 5,000.
₹ 2,000 paid for servicing the company vehicle.
Repair to furniture purchased second hand ₹ 3,000.
Rent paid for the factory ₹ 12,000

Solution:

Revenue
Revenue
Revenue
Capital
Revenue

11th Accountancy Guide Capital and Revenue Transactions Additional Important Questions and Answers

I. Choose the correct answer.

Question 1.
Expenses on research and development will be classified under _______.
a) Preliminary expense
b) Revenue expenditure
c) Capital expenditure
d) Deferred revenue expenditure
Answer:
d) Deferred revenue expenditure

Question 2.
Depreciation on fixed asset is a _______ expenditure.
a) Capital expenditure
b) Revenue expenditure
c) Deferred revenue expenditure
d) None of the above.
Answer:
b) Revenue expenditure

Question 3.
Revenue receipts are _______ in the business.
a) non-recurring
b) recurring
c) neither of the above
d) A AND B
Answer:
b) recurring

Question 4.
An plant worth ₹ 8,000 is sold for ₹ 8,500 the capital receipt amounts to _______.
a) ₹ 8,000
b) ₹ 8,500
c) ₹ 500
d) ₹ 165
Answer:
c) ₹ 500

Question 5.
An asset worth ₹ 1,00,000 is sold for ₹ 85,000 the capital loss amounts to _______.
a) ₹ 85,000
b) ₹ 1,00,000
c) ₹ 15,000
d) ₹ 70000
Answer:
c) ₹ 15,000

Question 6.
An asset worth ₹ 1,00,000 is sold for ₹ 75,000 the capital loss amounts to
a) ₹ 1,75,000
b) ₹ 1,00,000
c) ₹ 75,000
d) ₹ 25,000
Answer:
c) ₹ 75,000

Question 7.
Transaction which provide benefit to*the business for more than one year is called as _______.
a) Capital expenditure
b) Revenue expenditure
c) Deferred revenue expenditure
d) None of the above
Answer:
c) Deferred revenue expenditure

Question 8.
Revenue expenditure is intended to benefit.
a) Subsequent year
b) previous’ year
c) current year
d) None of the above
Answer:
c) current year

II. Very Short Answer Type Questions

Question 1.
What is revenue loss?
Answer:
Revenue losses are the losses that arise from the normal course of the business. In other words, ‘net loss’ – i.e., excess of revenue expenditures over revenue receipts.

Question 2.
Write a short note on Capital receipt.
Answer:
Receipt which is not revenue in nature is called capital receipt. It is non-recurring in nature. The amount received is normally substantial. It is shown on the liabilities side of the balance sheet.

Question 3.
Write the Features of capital expenditure?
Answer:

It gives benefit for more than one accounting period.
It includes acquisition of fixed assets and all expenditure incurred upto the point an asset is ready for use.
It contributes to the revenue earning capacity of the business.
It is non-recurring in nature.
It is shown on the assets side of the balance sheet.

Question 4.
Write the Features of revenue expenditure?
Answer:

It is recurring in nature.
It is incurred for maintaining the earning capacity of the business.
Its benefit expires in the same accounting period.
It is shown on the debit side of the trading and profit and loss account.

Question 5.
Write the Features of deferred revenue expenditure?
Answer:

It is a revenue expenditure, the benefit of which is to be derived over a subsequent period or periods.
It is not fully written off in the year of actual expenditure. It is written off over a period of certain years.
The balance available after writing off (i.e., Actual expenditure – Amount written off) is shown on the assets side balance sheet.

Question 6.
Distinguish Capital, Revenue 8i Deferred revenue expenditure.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 11 Capital and Revenue Transactions 3

III. Short Answer Questions

Question 1.
Classify the following expenditures and receipts as capital or revenue

₹ 10,000 spent as travelling expenses of the directors on trips abroad for the purchase of fixed assets.
Amount received from trade receivables during the year.
Amount spent on demolition of building to construct a large building on the same site.
Insurance claim received on account of machinery damaged by fire.

Solution:

Capital expenditure
Revenue receipt
Capital expenditure
Capital receipt.

Question 2.
Classify the following expenses as capital or revenue.
(i) The sum of ₹ 3,200 has been spent on a machine as follows:

₹ 2,000 for additions to double the output.
₹ 1,200 for repairs necessitated by negligence.

(ii) Overhauling expenses of ₹ 25,000 for the engine of a motor car to get better fuel efficiency.
Solution:
(i) a. capital expenditure
b. revenue expenditure

(ii) capital expenditure.

Question 3.
State whether the following are capital or revenue items.

₹ 5,000 spent towards additions to buildings.
Second-hand motor car purchased for ₹ 30,000 and paid ₹ 2,000 as repairs immediately.
₹ 10,000 was spent on painting the new factory.
Freight and cartage on the new machine ₹ 150, erection charges ₹ 200.
₹ 150 spent on repairs before using a second hand car purchased recently.

Solution:

Capital expenditure.
Capital expenditure.
Capital expenditure.
Capital expenditures.
Capital expenditure.

Question 4.
State whether the following are capital, revenue or deferred revenue expenditure.

Carriage of ₹ 1,000 spent on machinery purchased and installed.
Office rent paid ₹ 2,000.
Wages of ₹ 5,000 paid to machine operators.
Hire charges for the use of motor vehicle, hired for five years, but paid yearly.

Solution:

Capital expenditure.
Revenue expenditure.
Revenue expenditure.
Revenue expenditure.

Question 5.
State with reasons whether the following are capital or revenue expenditure

Expenses incurred in connection with obtaining a licence for starting the factory for ₹ 25,000.
A factory shed was constructed at a cost of ₹ 2,00,000. A sum of ₹ 10,000 had been incurred in the construction of temporary huts for storing building material.
Overhaul expenses of second-hand machinery purchased amounted to ₹ 5,000.

Solution:

Capital expenditure.
Capital expenditure.
Capital expenditure.

Question 6.
State with reasons whether the following are capital or revenue or deferred revenue expenditure

Advertisement expenses amounted to ₹ 10 crores to introduce a new product.
Expenses on freight for purchasing new machinery.
Freight and insurance on the new machinery and cartage paid to bring the new machinery to the factory.

Solution:

Deferred revenue expenditure.
Capital expenditure.
Capital expenditure.

Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting

March 31, 2021

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Accountancy Guide Pdf Chapter 10 Depreciation Accounting Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 10 Depreciation Accounting

11th Accountancy Guide Depreciation Accounting Text Book Back Questions and Answers

I. Multiple Choice Questions

Choose the correct answer.

Question 1.
Under straight line method, the amount of depreciation is _______.
a) Increasing every year
b) Decreasing every year
c) Constant for all the years
d) Fluctuating every year
Answer:
c) Constant for all the years

Question 2.
If the total charge of depreciation and maintenance cost are considered, the method that provides a uniform charge is _______.
a) Straight line method
b) Diminishing balance method
c) Annuity method
d) Insurance policy method
Answer:
b) Diminishing balance method

Question 3.
Under the written down value method of depreciation, the amount of depreciation is _______.
a) Uniform in all the years
b) Decreasing every year
c) Increasing every year
d) None of the above
Answer:
b) Decreasing every year

Question 4.
Depreciation provided on machinery is debited to _______.
a) Depreciation account
b) Machinery account
c) Trading account
d) Provision for depreciation account
Answer:
a) Depreciation account

Question 5.
Cash received from sale of fixed asset is credited to _______.
a) Profit and loss account
b) Fixed asset account
c) Depreciation account
d) Bank account
Answer:
b) Fixed asset account

Question 6.
Depreciation is provided on _______.
a) Fixed assets
b) Current assets
c) Outstanding charges
d) All assets
Answer:
a) Fixed assets

Question 7.
Depreciation is caused by _______.
a) Lapse of time
b) Usage
c) Obsolescence
d) a, b and c
Answer:
d) a, b and c

Question 8.
Depreciation is the process of _______.
a) Allocation of cost of the asset to the period of its useful life
b) Valuation of assets
c) Maintenance of an asset in a state of efficiency
d) Adding value to the asset
Answer:
a) Allocation of cost of the asset to the period of its useful life

Question 9.
For which of the following assets, the depletion method is adopted for writing off cost of the asset?
a) Plant and machinery
b) Mines and quarries
c) Buildings
d) Trademark
Answer:
b) Mines and quarries

Question 10.
A depreciable asset may suffer obsolescence due to _______.
a) Passage of time
b) Wear and tear
c) Technological changes
d) None of the above.
Answer:
c) Technological changes

Question 11.
Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.
a) Straight line method
b) Reducing balance method
c) Sinking fund method
d) Annuity method
Answer:
b) Reducing balance method

Question 12.
Depreciation is to be calculated from the date when _______.
a) Asset is put to use
b) Purchase order is made
c) Asset is received at business premises
d) Invoice of assets is received
Answer:
a) Asset is put to use

Question 13.
If the rate of depreciation is same, then the amount of depreciation under straight line method vis-a-written down value method will be _______.
a) Equal in all years
b) Equal in the first year but higher in subsequent years
c) Equal in the first year but lower in subsequent years
d) Lower in the first year but equal in subsequent years.
Answer:
b) Equal in the first year but higher in subsequent years

Question 14.
Residual value of an asset means the amount that it can fetch on sale at the _______ of its useful life.
a) Beginning
b) End
c) Middle
d) None
Answer:
b) End

II. Very Short Answer Type Questions

Question 1.
What is meant by depreciation?
Answer:

The process of allocation of the relevant cost of a fixed asset over its useful life is known asdepreciation.
It is an allocation of cost against the benefit derived from a fixed asset during an accounting period.

Question 2.
List out the various methods of depreciation.
Answer:
The following are the different methods of providing depreciation

Straight line method or Fixed installment method or Original cost method
Written down value method or Diminishing balance method
Sum of years of digits method
Machine hour rate method
Depletion method
Annuity method.
Revaluation method
Sinking fund method
Insurance policy method

Question 3.
Give the formula to find out the amount and rate of depreciation under straight line method of depreciation.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 1

Question 4.
What is annuity method?
Answer:
1. Under this method, not only the original cost of the asset but also the amount of interest on the investment is taken into account while computing depreciation.

2. The idea of considering interest is that if the investment is made in any other asset instead of the relevant fixed asset, it would have earned a certain rate of interest.

3. To calculate the amount of depreciation, annuity factor is used. Annuity factor can be found out from the annuity table or by using formula.

4. Amount of depreciation is computed as follows:
Amount of depreciation = Annuity factor x Original cost of the asset

Question 5.
What is sinking fund method?
Answer:
1. Sinking fund method is adopted especially when it is desired not merely to write off an asset but also to provide enough funds to replace an asset at the end of its working life.

2. Under this method, theamount charged as depreciation is transferred to depreciation fund and invested outside thebusiness.

3. This method of depreciation is suitable for assets of higher value.

4. This method is also known as depreciation fund method.

5. This method not only takes into account depreciation but also makes provision for the replacement of the asset.

III. Short Answer Questions

Question 1.
What are the objectives of providing depreciation?
Answer:
Following are the objectives of providing depreciation:

1. To find out the true profit:

According to matching principle, the expenses incurred during a period must be matched with reve¬nue earned during that period.
Hence, when an asset is used for generating income for a business, the cost of the asset attributable to the use, i.e., the reduction in the book value of the asset proportionate to the benefit derived from it, should be charged against the revenue.
This is to be done to find out the true cost of production and profit or loss of the business for every accounting period.

2. To present the true and fair view of financial position:

When the depreciation is charged on fixed assets, the book value of fixed assets are reduced to that extent and the remaining value is shown in the balance sheet.
The balance represents the value of benefit that is yet to be derived from them.
The written down value is the true value of fixed assets which represent cost not yet written off.
The balance sheet must represent a true and fair view of financial status.
Hence, fixed assets must be shown at their at written downvalue.

3. To facilitate replacement of fixed assets:

When the depreciation is debited to profit and loss account, an equal amount is either retained in the business or invested outside the business.
When the useful life of an asset comes to anend, a new asset can be purchased by using the resources available in the business.

4. To avail tax benefits:

As per the Indian Income Tax Act, while computing tax on business income, depreciation is deductible from income.
Hence, depreciation is computed and charged to profit and iossaccount to reduce tax liability. (v)To comply with legal requirements:
Depreciation is provided on fixed assets to comply with the provisions of law apart from Income Tax Act.
For example, Section 123(1) of the Indian Companies Act, 2013, requires every company to provide depreciation on fixed assets before declaring dividend to its shareholders.

Question 2.
What are the causes for depreciation?
Answer:
1. Wear and Tear:

The physical deterioration of assets due to normal use is called wear and tear.
The value of the assets decreases proportionately.

2. Efflux of time:
Some kinds of assets become potentially less useful with the passage of time whether used or not.

3. Obsolescence:

It is a reduction in the value of assets as a result of the availability of updated alternative assets.
This happens due to new inventions and innovations.
Though the original asset is in a usable condition, it is not preferred by the users and it loses its value
For example, preference of latest computers by the users.

4. Inadequacy for the purpose:

In some cases, the use of assets may be stopped due to their inadequacy for the purpose.
These may become inadequate due to expansion in the capacity of a firm.

5. Lack of maintenance:

The good maintenance naturally increase the life of the asset.
When there is lack of maintenance, there is possibility of more depreciation.

6. Abnormal factors:

Decline in the usefulness of fixed asset may be caused by abnormal factors like damage due to fire accidents, natural calamities etc.
This leads to the state of asset being discarded.

Question 3.
State the advantages and limitations of straight line method or depreciation.
Answer:
Following are the merits of straight line method of depreciation
Advantages:
(a) Simple and easy to understand – Computation of depreciation under this method is very simple and easy to understand.

(b) Equality of depreciation burden – Equal amount of depreciation is debited to the profit and loss account each year to reduce the burden of depreciation on the profit of each year is equal.

(c) Assets can be completely written off – The book value of an asset can be reduced to zero if there is no scrap value or to be the scrap value at the end of its useful life. The asset account can be completely written off.

(d) Suitable for the assets having fixed working life – This method is appropriate for the fixed assets having certain fixed period of working life. In such cases, the estimation of useful life is easy and in turn in helps in easy determination of rate of depreciation.

Limitations:
(a) Ignores the actual use of the asset – A fixed amount of depreciation is provided on each asset by applying the predetermined rate of depreciation on its original cost. But the actual use of the asset is not considered in computation of depreciation.

(b) Ignores the interest factor – This method does not take into account the loss of interest on the amount invested in the asset.

(c) Total charge on the assets will be more when the asset becomes older – The amount of depreciation and cost of maintenance put together is less in the initial period and goes up year after year. This method did not concentrate on this.

(d) Difficulty in the determination of scrap value – It may be quite difficult to assess the true scrap value of the asset after a long period after the date of its installation.

Question 4.
State the advantages and limitations of written down value method of depreciation.
Answer:
Advantages
(a) Equal Charge against income

In the starting period depreciation is high and repaid charges are low.
When the asset becomes older, the amount of depreciation charged is less but repair charges are high.
The total burden on profit in respect of depreciation and repairs put together remains almost similar year after year.

(b) Logical Method:

In the earlier years, when the asset is more productive, high depreciation is charged.
In the later years when the asset becomes less productive, the depreciation charge is less.

Limitations:
(a) Assets cannot be completely written off – Under this method, the value of an asset even if it becomes obsolete and useless, cannot be reduced to zero and some balance would continue in the asset account.

(b) Ignores the interest factor – This method does not take into account the loss of interest on the amount invested in the asset. The amount would have earned interest, had it been invested outside the business is not considered.

(c) Difficulty in determining the rate of depreciation – Under this method, the rate of providing depreciation cannot be easily determined. The rate is generally kept higher because it takes very long time to write off an asset down to its scrap value.

(d) Ignores the actual use of the asset – Under this method, a fixed rate of depreciation is provided on the written down value of the asset by applying the predetermined rate of depreciation on its original cost. But the actual use of the asset is not considered in the computation of depreciation.

Question 5.
Distinguish between straight line method and written down value method of providing depreciation.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 2

IV. Exercises

Straight line Method:

Question 1.
A firm purchased plant for ₹ 40,000. Erection charges amounted to ₹ 2,000. Effective life of the plant is 5 years. Calculate the amount of depreciation per year under straight line method.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 3

Question 2.
A company purchased a building for ₹ 50,000. The useful life of the building is 10 years and the residual value is ₹ 2,000. Find out the amount and rate of depreciation under straight line method.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 4

Question 3.
Furniture was purchased for ₹ 60,000 on 1-7-2016. It is expected to last for 5 years. Estimated scrap at the end of five years is ₹ 4,000. Find out the rate of depreciation under straight line method.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 5

Question 4.
Calculate the rate of depreciation under straight line method from the following information
Purchased a second hand machinery on 1.1.2018 for ₹ 38,000
On 1.1.2018 spent ₹ 12,000 on its repairs
Expected useful life of machine is 4 years
Estimated residual value ₹ 6,000
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 6

Note:
Original cost = Purchases price + repairs = 38,000 + 12,000 = ₹ 50,000

Question 5.
Calculate the rate of depreciation under straight line method.
Purchase price of a machine ₹ 80,000
Expenses to be capitalized ₹ 20,000
Estimated residual value ₹ 4,000
Expected useful life 4 years
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 7
Note:
Original cost = Purchases price + Expense to be Capitalized
= 80,000 + 20,000
= ₹ 1,00,000

Question 6.
Machinery was purchased on 1^st January 2015 for ₹ 4,00,000. ₹ 15,000 was spent on its erection and ₹ 10,000 on its freight charges. Depreciation is charged at 10% per annum on straight line method. The books are closed on 31^st March each year. Calculate the amount of depreciation on machinery for the first two years.
Solution:
Calculation on the amout of depreciation on machinery
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 8
Amount of depreciation
31-3-2015 = ₹ 10625
31-3-2016 = ₹ 42500
Note:
Original cost = Purchases price + Erection charges + freight charges
= 4,00,000 + 15,000 + 10,000 = ₹ 4,25,000

Question 7.
An asset is purchased on 1.1.2016 for ₹ 25,000. Depreciation is to be provided annually according to straight line method. The useful life of the asset is iO years and its residual value is ₹ 1,000. Accounts are closed on 31st December every year. You are required to find out the rate of depreciation and give journal entries for first two years.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 9

Question 8.
From the following particulars, give journal entries for 2 years and prepare machinery account under straight line method of providing depreciation:
Machinery was purchased on 1.1.2016
Price of the machine ₹ 36,000
Freight charges ₹ 2,500
Installation charges ₹ 1,500
Life of the machine 5 years
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 11
Journal entries:

Machinary Account:

Question 9.
A manufacturing company purchased on 1 April, 2010, a plant and machinery for ₹ 4,50,000 and spent ₹ 50,000 on its installation. After having used it for three years, it was sold for ₹ 3,85,000. Depreciation is to be provided every year at the rate of 15% per annum on the fixed installment method. Accounts are closed on 31st March every year.
Solution:
Calculate profit or loss on sale of machinery.
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 14
Profit on sales = sale price – Book value
= 3,85,000 – 2,75,000
= ₹ 1,10,000

Question 10.
On 1st April 2008, Sudha and Company purchased machinery for ₹ 64,000. To instal the machinery expenses incurred was ₹ 28,000. Depreciate machinery 10% p.a. under straight line method. On 30th June, 2010 the worn out machinery was sold for ₹ 52,000. The books are closed on 31st December every year. Show machinery account.
Solution:
Machinary Account
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 15

Question 11.
Ragul purchased machinery on April 1, 2014 for ₹ 2,00,000. On 1st October 2015, a new machine costing ₹ 1,20,000 was purchased. On 30th September 2016, the machinery purchased on April 1, 2014 was sold for ₹ 1,20,000. Books of accounts are closed on 31st March and depreciation is to be provided at 10% p.a. on straight line method. Prepare machinery account and depreciation account for the years 2014-15 to 2016-17.
Solution:
Machinery Account
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 16
Depreciation Account

Notes

Question 12.
An asset is purchased for ₹ 50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under diminishing balance method.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 19

Question 13.
A boiler was purchased on 1^st January 2015 from abroad for ₹ 10,000. Shipping and forwarding charges amounted to 12,000. Import duty ₹ 7,000 and expenses of installation amounted to ₹ 1,000. Calculate depreciation for the first 3 years @10% p.a. on diminishing balance method assuming that the accounts are dosed 31^st December each year.
Solution:
Calculate the amount of Depreciation
Cost of the assets = Purchase price + shipping and forwarding charges + Import duty+Install – action charge.
= 10,000 + 2,000 + 7,000 + 1,000
= ₹ 20,000.
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 20

Question 14.
A furniture costing ₹ 5,000 was purchased on 1.1.2016, the installation charges being ₹ 1,000. The furniture is to be depreciated @10% p.a. on the diminishing balance method. Pass journal entries for the first two years.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 21

Question 15.
A firm acquired a machine on 1^st April 2015 at a cost of ₹ 50,000. Its life is 6 years. The firm writes off depreciation @ 30% p.a. on the diminishing balance method. The firm closes its books on 31st December every year. Show the machinery account and depreciation account for three years starting from 1^st April 2015.
Solution:
Machinary Account
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 22
Depreciation Account

Question 16.
A firm purchased a machine for ₹ 1,00,000 on 1-7-2015. Depreciation is written off at 20% on reducing balance method. The firm closes its books on 31st December each year. Show the machinery account upto 31-12-2017.
Solution:
Machinary Account
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 24

Question 17.
On 1st October 2014, a truck was purchased for ₹ 8,00,000 by Laxmi Transports Ltd. Depreciation was provided @ 15% p.a. under diminishing balance method. On 31st March 2017, the above truck was sold for ₹ 5,00,000. Accounts are closed on 31st March every year. Find out the profit or loss made on the sale of the truck.
Solution:
Calculation of Profit (or) Loss on sales of assets.
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 25

Question 18.
On 1st January 2015, a second hand machine was purchased for ₹ 58,000 and ₹ 2,000 was spent on its repairs. On 1st July 2017, it was sold for ₹ 28,600. Prepare the machinery account for the years 2011 to 2013 under written down value method by assuming the rate of depreciation as 10% p.a. and the accounts are dosed on 31st December every year.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 26
Machinery Account

Question 19.
Raj & Co purchased a machine on 1^st January 2014 for ₹ 90,000. On 1st July 2014, they purchased another machine for ₹ 60,000. On 1st January 2015, they sold the machine purchased on 1st January 2014 for ₹ 40,000. It was decided that the machine be depreciated at 10% per annum on diminishing balance method. Accounts are closed on 31st December every year. Show the machinery account for the years 2014 and 2015.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 28
Machinery Account

11th Accountancy Guide Depreciation Accounting Additional Important Questions and Answers

I. Choose the correct answer.

Question 1.
Depreciation is calculated on ________ under diminishing balance method.
a) Original Cost
b) Written Down Value
c) The Scrap Value
d) None of the above
Answer:
b) Written Down Value

Question 2.
Sinking Fund is also known as ________.
a) Depletion Method
b) Annuity method
c) Depreciation Fund method
d) None of the above
Answer:
c) Depreciation Fund method

Question 3.
The process of becoming out of date or obsolete is termed as ________.
a) Depletion
b) Physical Deterioration
c) Obsolescence
d) None of the above
Answer:
c) Obsolescence

Question 4.
In the process of provision method of depreciation the asset always valued at ________.
a) Market Price
b) Cost Price
c) Scrap Value
d) None
Answer:
b) Cost Price

Question 5.
Meaning of Salvage value is ________.
a) Cash to be paid when asset is disposed off
b) Estimated disposal value
c) Definite sale price of the asset
d) Cash to be received when life of the asset ends
Answer:
b) Estimated disposal value

Question 6.
In the accounting records, the fixed assets are normally recorded ________.
a) At Cost
b) At Book Value
c) At Scrap Value
d) At replacement value
Answer:
a) At Cost

Question 7.
A fixed asset was bought for ₹ 5,000. Its accumulated depreciation is ₹ 1,000 and rate of depreciation is 10%. What are the depreciation expenses for the current accounting period using reducing balance method?
a) ₹ 600
b) ₹ 2000
c) ₹ 500
d) ₹ 400
Answer:
c) ₹ 500

Question 8.
Under which depreciation method the amount of depreciation expenses remains same throughout the useful life of a fixed asset ________.
a) Straight Line Method
b) Reducing Balance Method
c) Number of Units produced method
d) Machine hour method
Answer:
a) Straight Line Method

Question 9.
The book value of machinery on 01.04.2016 was ₹ 70, 000. Depreciation is charged at 10% p.a under Written Down value method on 31st March every year. The machine was sold for ₹ 50, 000 on 01.8.2017;calculate the Profit/Loss on sale of machinery.
a) Profit ₹ 5,755
b) Profit ₹ 5,000
c) Profit ₹ 10,375
d) Loss ₹ 10,325
Answer:
c) Profit ₹ 10,375

Question 10.
The objectives of providing depreciation on an asset are ________.
a) To ascertain the true profit/loss of the firm
b) To provide funds for the replacement of the fixed assets
c) To show the true financial position of the firm
d) All of the above
Answer:
d) All of the above

Question 11.
Cost of an asset is ₹ 3, 00,000. Rate of depreciation is 10% on WDV method. Value of the asset at the end of the second year will be ________.
a) ₹ 2, 70,000
b) ₹ 30, 000
c) ₹ 2, 50,000
d) ₹ 2, 43,000
Answer:
d) ₹ 2, 43,000

Question 12.
Depletion method of charging depreciation is adopted for which of the following assets?
a) Plant and Machinery
b) Buildings
c) Wasting assets like mines and quarries
d) Trademarks
Answer:
c) Wasting assets like mines and quarries

Question 13.
A trader followed WDV method of depreciation; the book value of assets after 4 years is 24% of original cost. Find rate of depreciation ________.
a) 24%
b) 26%
c) 32%
d) 30%
Answer:
d) 30%

Question 14.
The older name of Straight line method is ________.
a) Annuity method
b) Revaluation method
c) Fixed Installment method
d) None
Answer:
c) Fixed Installment method

Question 15.
Exhaustion is a ________ for depreciation.
a) Cause
b) Non-Cause
c) Both (a) & (b)
d) None
Answer:
a) Cause

Question 16.
Under which method of depreciation, interest is also taken into consideration?
a) Revaluation method
b) Depletion method
c) Annuity method
d) None of the above
Answer:
c) Annuity method

Question 17.
For oil wells ________ method of depreciation is to be followed.
a) Exhaustion
b) Wear & Tear
c) Depletion
d) None of the above
Answer:
a) Exhaustion

Question 18.
Depreciation arises due to the following reason ________.
a) Wear & Tear
b) Fall in the market value
c) Effluxion of time
d) All the above
Answer:
d) All the above

Question 19.
When the value of fixed assets increases it is known as ________.
a) Depreciation
b) Appreciation
c) Depletion
d) None
Answer:
b) Appreciation

Question 20.
Depreciation on fixed assets is ________ expenditure.
a) Revenue Expenditure
b) Capital Expenditure
c) Deferred Revenue expenditure
d) None
Answer:
b) Capital Expenditure

II. Short Answer Questions

Question 1.
Define Depreciation.
Answer:

According to Spicer and Pegler, “Depreciation is the measure of exhaustion of the effective life of an asset from any cause during a given period”.
According to R.N. Carter, “Depreciation is the gradual and permanent decrease in the value of an asset from any cause”.

Question 2.
What is ‘residual value’?
Answer:

The amount which is expected to be realised at the end of the estimated useful life of an asset is known as scrap value of the asset. It is also known as residual value.
In determining the scrap value, costs to be incurred for removal and sale of the asset should be de-ducted from the estimated gross realisable value.

Question 3.
What is ‘Obsolescence’?
Answer:

It is a reduction in the value of assets as a result of the availability of updated alternative assets.
This happens due to new inventions and innovations.
Though the original asset is in a usable condition, it is not preferred by the users and it loses its value.
For example, preference of latest computers by the users.

Question 4.
Write notes on ‘Effluxion of time’.
Answer:
Certain assets whether used or not become potentially less useful with the passage of time.

Question 5.
What is ‘Straight Line Method’ of depreciation?
Answer:

Under this method, a fixed percentage on the original cost of the asset is charged every year by way of depreciation. Hence it is called original cost method.
As the amount of depreciation remains equal in all years over the useful life of an asset it is also called as fixed instalment method.
When the amount of depreciation charged over its life is plotted on a graph and the points are joined together, the graph will show a horizontal straight line. Hence, it is called straight line method.

Question 6.
What is’Written down value’of depreciation?
Answer:

Under this method, depreciation is charged at a fixed percentage on the written down value of the asset every year. Hence, it is called written down value method.
Written down value is the book value of the asset, i.e., original cost of the asset minus depreciation upto the previous accounting period.
As the amount of depreciation goes on decreasing year after year, it is called diminishing balance method or reducing installment method.

Question 7.
What is ‘Revaluation method’ of depreciation?
Answer:

Under this method, the amount of annual depreciation is calculated by comparing the value of the assets at the end of the year and their value at the beginning of the year.
The value of the asset at the end of the year is determined with the consultation of relevant experts.
The excess of opening value over the closing value of the asset is the amount of depreciation for that year.
This method is used for live stock, loose tools, etc.

Question 8.
What is ‘Insurance policy method’ of depreciation?
Answer:

Under this method, an insurance policy is taken for an amount equal to the cost of replacement of the asset.
The amount of depreciation is paid by way of insurance premium every year to the insurance company.
On maturity of the policy, the policy amount is received from the insurance company and it is used for the purchase of new asset.

Question 9.
What are the factors determining the amount of depreciation?
Answer:
i) Actual cost of the asset:

Actual cost means the amount incurred in acquiring or constructing the asset.
It is the acquisition or construction cost or historical cost. It includes all the expenses incurred on the asset to bring the asset to present condition and location, that is, all incidental expenses incurred till it is put into use.
Purchase price of the asset, freight, loading charges, unloading charges, erection cost, setting up cost and expenses of trial run are included in the cost of the asset.
If the asset is a second-hand one, the initial repair to make the asset useable is also to be taken as part of actual cost of the asset.

ii) Estimated useful life of the asset:

The period for which an asset can be used in the enterprise is known as estimated useful life of an asset.
It can be calculated in terms of period for which the asset is expected to be used by the entity or units of output to be obtained by the use of the asset, etc.
In the case of intellectual properties like patents and copyrights, their legal life is taken as their estimated useful life.
The Indian Companies Act, 2013 has prescribed useful lives of fixed assets for the purpose of com – putation of depreciation.
For example, the useful lives prescribed in Part C of Section 123 for general plant and machinery and general furniture and fittings are 15 years and 10 years respectively.

iii) Scrap value of an asset:

The amount which is expected to be realised at the end of the estimated useful life of an asset is known as scrap value of the asset. It is also known as residual value.
In determining the scrap value, costs to be incurred for removal and sale of the asset should be de-ducted from the estimated gross realisable value.

iv) Other factors : Besides the above mentioned factors, legal provisions, technological factors, etc., also determine the amount of depreciation.

Question 10.
What are the Characteristics of depreciation?
Answer:

Depreciation is the process of allocation of cost of depreciable asset (capital expenditure) to revenue expenditure or to profit and loss account over the useful life of the asset.
It is the process of allocation of cost and not the process of valuation.
It is a decrease in the book value of the asset and not the market value of the asset.
It is a gradual and continuous decrease in the book value of asset over its useful life.
It is calculated only for tangible depreciable fixed assets. Depreciation is not provided on intangible and wasting assets.

Question 11.
Find the amount of depreciation
Cost Price – ₹ 28,000 ; Estimated Life – 6 years; Scrap Value ₹ 4,000
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 30

Question 12.
On 1st January 2016, Anand Ltd., purchased a machine costing Rs.6, 000. It is estimated that its working life is four years and it will fetch no scrap value. The company decided to write off depreciation according to the fixed installment method. Prepare the machinery account.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 31

Question 13.
A company purchased a plant for ₹ 2,00,000. The useful life of the asset is 10 years and the scrap value us ₹ 40, 000. Find the rate of depreciation under the straight line method.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 32

III. Long Answer Questions

Question 1.
Find out the rate of depreciation under straight line method.
Cost of asset – ₹ 10,000
Scrap value – ₹ 1,000
Estimated Life 10 years
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 33

Question 2.
Find out the rate of depreciation under straight line method.
Cost of Plants – ₹ 2,30,000
Installation charges – ₹ 20,000
Expected Life in year 10 years
Scrap value – ₹ 50,000
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 34

Question 3.
A machine was purchased For ₹ 2,40,000, on 1.1.2010. This is expected to last for five year. Estimated scrap at the end of given year in ₹ 40,000. Find out the rate of depreciation under straight line method.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 35

Question 4.
A company has purchased a machinery for ₹ 1,70,000 and spent ₹ 20,000 for its installation. The estimated life of the machinery is 5 years with a residual value of ₹ 15,000. Find out the rate of depreciation under straight line method.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 36

Question 5.
Monisha Garments purchased a machinery on 1.4.2015 for ₹ 2,40,000. After three years the plane was sold for ₹ 1,80,000 The firm charges dpreciation at the rate of 10% per annum on stright line method. Accounts are closed on 31st march every year. Prepare machinery account and depreciation A/C.
Notes:
(i) Amount of Depreciation = ₹ 2,40,000
(ii) Book value after three year = 2,40,000 – (24000 x 3) = 2,40,000 – 72,000 = ₹ 1,68,000
(iii) Selling price = ₹ 1,80,000
Profit on sale of machinery = ₹ 72,000
Solution:
Machinary Account
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 39
Depreciation Account

Question 6.
Pugazh & CO, purchased a machinery for ₹ 4,70,000. On 1,4.2001 they spent₹ 30,000 on the repairs and installed the machinery. Depreciation is written after at 10% p.a on the straight Sine method on 31.3.2004, the machinery was found the unsuitable and sold for ₹ 3,50,000. Prepare machinery A/C assuming that the account are closed on 31st march every year.
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 41
Solution:
Machinery Account

Question 7.
A Company purchased a machinery on 1,4,2001 for ₹ 2,40,000 on 1 October 2002. It purchased another machinery for ₹ 60,000. On 1st October 2003, it sold oft the first machine purchased on 1.4.20C1 for ₹ 1,68,000 on the same date, it purchased another machinery for ₹ 1,50,000 Account are clsoed every year on 31st march depredation is written of at 10% p.a on original cost. Prepare machinery account and depreciation account for three years.
Solution:
I. Machinery purchased on 1.4.2001 for ₹ 2,40,000
1.4.2001 – 31.3.2002 = 24,000 – I^st year
1.4.2002- 31.3.2003 = 24,000 – II^nd year
1.4.2003- 1.10.2003 = 12,000 – III^rd year
Book value = 60,000
(-) Book value = 24,000 – 60,000 = ₹ 1, 80, 000
(-) Sale of machinery = ₹ 1, 68, 000
Loss on sale of machinery ₹ 12, 000

II. Machinery purchased on 1.10.2002 for Rs.60,000
1.10.2002 – 31.3.2003 = 3,000 – II^nd year
1.4.2003 – 31.3.2004 = 6,000 – III^nd year

III. Machinery purchaed on 1.10.2003 for Rs.1,50,000
1.10.2003 – 31.3.2004 = 7,500 – III^rd year

Machinary Account
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 43
Depreciation Account

Question 8.
A plant is purchased for ₹ 90,000, It is depreciation as 10% p.a on reducing balance for the three years. When it becomes obsolute due to new method of production and is scrapped. The scrap produces ₹ 66,000 at the end of the thrid year.
Prepare plant account for three year.
Solution:
Calculation of profit or loss on sales of plant.
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 45
Plant Account

Question 9.
A firm purchased a machine for ₹ 1,00,000 on 1-7-2015 depreciation is written oft at 10% on reducing balance method. The firm close its book on 31st December each year. Show the machinery account up to 31.12.2017
Solution:
Calculation of profit or loss on sales of machinery.
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 47
Machinary Account

Depreciation Account

Question 10.
Dhanuja shree started business on 1st April 2001 and she purchased a machinery for ₹ 1,40,000. She purchased another machinery on 1st November 2002 costing ₹ 30,000. She ( adopted a policy of charging 15% p.a depreciation under Diminishing balance method.
The account are closed every year on 31^st march. Prepare machinery account and depreciation account for the first three years.
Solution:
Calculation of depreciation @ 15 % p.a.
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 50
Machinery Account

Depreciation Account

Question 11.
On 1^st January 2014, Hyagreeva Ltd., purchased a machine costing ₹ 12,000. It is estimated that its working life is four years and it will fetch no scrap value. The company decided to write off depreciation according to the fixed instalment method. Prepare the machinery account.
Solution:
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 53
Machinary Account

Question 12.
Bharathi Ltd., purchased certain machinery at a cost of ₹ 40,000 on 1st January 2014. They decided to write off depreciation @ 20% p.a, according to straight line method. Prepare Machinery Account and Depreciation Account for the year 2014 to 2017.
Solution:
Machinary Account
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 55
Depreciation Account

Question 13.
Shreyan & Co., purchased a computer for ₹ 47,000 on 1st October 2012 and installed it by spending ₹ 3,000. Every year depreciations is to be charged at 10% on its cost. The computer is sold on IstJuly 2015 at a price of ₹ 35,000. Assuming that the accounts are dosed every year on December 31, prepare the computer account.
Solution:
Computer Account
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 57

Question 14.
A car was purchased on January 1, 2015 for Rs.80,000 depreciated at 10% on diminishing balance method. It was sold on 31st December 2017 for Rs.50,000. Prepare Car account.
Solution:
Car Account
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 58

Question 15.
In a business there was a machine for ₹ 90,000 on 1st January 2014. On 30.06.2014, another machinery was purchased for ₹ 10,000. On 31.12.2014 part of the machine was sold for 3,300, which had a cost price of ₹ 4,000 on 01.01.2014. Prepare machinery account after providing depreciation at 10% p.a on fixed installment basis.
Solution:
Machinary Account
Samacheer Kalvi 11th Accountancy Guide Chapter 10 Depreciation Accounting 59

Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors

March 30, 2021

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 1
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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 3

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:
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 5

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 6

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 7

Question 12.
Rectify the following journal entries.
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 8
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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 10

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 11

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 12

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 13

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 14

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 15

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 16

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 17

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 18

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 19
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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 21
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

The totals of debit and credit columns of trial balance are to be checked
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).
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.
The totals of all the subsidiary books are to be checked, especially if the difference is ₹ 1, T 100 etc.
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.
The accounts of all the creditors and debtors are to be verified.
The correctness of the balances of various ledger accounts is to be ensured.
The correctness of the balances of various ledger accounts is to be ensured.
All the amounts carried forward from one page to the next are to be verified. .
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:

Scrutiny of entries made in the journal proper
Scrutiny of entries made in the subsidiary books
Checking the totals of the subsidiary books
Scrutiny of postings made to the ledger accounts
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

Scrutiny of entries made in the journal proper.
Scrutiny of entries made in the subsidiary books.
Checking the totals of the subsidiary books
Scrutiny of balancing of ledger accounts.
Scrutiny of postings made to the ledger accounts

Question 4.
Rectify the following errors

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

Solution:
Rectification:

Credit Purchases Account with ₹ 3,500
Credit Sales Account with ₹ 2,000
Debit Purchases Returns account with ₹ 7,600
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:
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 23

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:
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 23a

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:
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 24

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:
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 25

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 26
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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 26
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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 28

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 28a

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 28
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:
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 30
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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 31

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 32

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 33
Suspense Account

Question 10.
Rectify the following Journal Entries
Rectification of Errors
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 35
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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 37

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 38

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 39

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
Samacheer Kalvi 11th Accountancy Guide Chapter 9 Rectification of Errors 40
Suspense Account

Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement

March 27, 2021

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:

Cheques issued but not presented for payment.
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:

Bank Charges
Interest

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

A copy of customer’s account issued by the bank – PASS BOOK
Debit balance as per bank statement – BANK OVERDRAFT
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:

Bank reconciliation statement is prepared by the banker. – Yes
Adjusting the cash book before preparing the bank reconciliation statement is compulsory. – No
Credit balance as per bank statement is an overdraft. – No
Bank charges debited by the bank increases the balance as per bank statement. – No
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:

To identify the reasons for the difference between the bank balance as per the cash book and bank balance as per bank statement.
To identify the delay in the clearance of cheques.
To ascertain the correct balance of bank column of cash book.
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:

When the cheques are issued by the business, it is immediately entered on the credit side of the cash book by the business.
This may not be entered in the bank statement on the same day.
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:

The assets will be entered in the debit side. The balance of deposits held by bank is recorded.
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.
Deposited cash in to bank decreases the amount of cash available and is, therefore, credited to cash account (cash column of the cash book).
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:

If the business has taken any loan or overdrawn, interest has to be paid by the business.
The entries for bank charges and interest are made in the bank statement.
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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 1

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 2

Question 3.
From the following information, prepare bank reconciliation statement to find out the bank statement balance as on 31st December, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 3
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
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 5

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 6

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 7

Question 7.
From the following information, prepare bank reconciliation statement as on 31st December,
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 8
Solution:
Bank reconciliation statement as on 31st December, 2017

Question 8.
Prepare bank reconciliation statement from the following data.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 10
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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 12

Question 10.
Prepare bank reconciliation statement from the following data and find out the balance as per cash book as on 31st March, 2018.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 13
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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 15

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 16

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 17

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 18

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 19

Question 16.
Prepare bank reconciliation statement from the following data.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 20
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)
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 22
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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 25

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:

Cheques deposited but not credited.
Credits in the pass book only.
• Interest credited in bank statement
• Dividend and other income
• Direct deposit by a party
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:

Cheques deposited but not credited
Cheques dishonoured but not entered in cash book
Debits in bank statement only
• Interest debited
• Insurance premium, loan instalment, etc., paid as per standing instructions
• Direct payment by banker
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.

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:

To identify the reasons for the difference between the bank balance as per the cash book and bank balance as per bank statement.
To identify the delay in the clearance of cheques.
To ascertain the correct balance of bank column of cash book.
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
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 26

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
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 27

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
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 28

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 29

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 30

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 31

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.
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 32

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)
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 33
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:
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 36
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:
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 38
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
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 41

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
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 42

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
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 43

Question 14.
From the following information available from the books and records of X & Co., prepare BRS:
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 44
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
Samacheer Kalvi 11th Accountancy Guide Chapter 8 Bank Reconciliation Statement 47

Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II

March 26, 2021

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Accountancy Guide Pdf Chapter 7 Subsidiary Books – II Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 7 Subsidiary Books – II

11th Accountancy Guide Subsidiary Books – II Text Book Back Questions and Answers

I. Multiple Choice Questions

Choose the correct answer.

Question 1.
Cash book is a ________.
a) Subsidiary book
b) Principal book
c) Journal proper
d) Both subsidiary book and principal book
Answer:
d) Both subsidiary book and principal book

Question 2.
The cash book records ________.
a) All cash receipts
b) All cash payments
c) Both (a) and (b)
d) All credit transactions
Answer:
c) Both (a) and (b)

Question 4.
A cash book with discount, cash and bank column is called ________.
a) Simple cash book
b) Double column cash book
c) Three column cash book
d) Petty cash book
Answer:
c) Three column cash book

Question 5.
In Triple column cash book, the balance of bank overdraft brought forward will appear in ________.
a) Cash column debit side
b) Cash column credit side
c) Bank column debit side
d) Bank column credit side
Answer:
d) Bank column credit side

Question 6.
Which of the following is recorded as contra entry?
a) Withdrew cash from bank for personal use
b) Withdrew cash from bank for office use
c) Direct payment by the customer in the bank account of the business
d) When bank charges interest
Answer:
b) Withdrew cash from bank for office use

Question 7.
If the debit and credit aspects of a transaction are recorded in the cash book, it is ________.
a) Contra entry
b) Compound entry
c) Single entry
d) Simple entry
Answer:
a) Contra entry

Question 8.
The balance in the petty cash book is ________.
a) An expense
b) A profit
c) An asset
d) A liability
Answer:
c) An asset

Question 9.
Petty cash may be used to pay ________.
a) The expenses relating to postage and conveyance
b) Salary to the Manager
c) Purchase of furniture and fixtures
d) Purchase of raw materials
Answer:
a) The expenses relating to postage and conveyance

Question 10.
Small payments are recorded in a book called ________.
a) Cash Book
b) Purchase Book
c) Bills Payable Book
d) Petty Cash Book
Answer:
d) Petty Cash Book

II. Very Short Answer Type Questions

Question 1.
What is cash book?
Answer:
The book in which only cash transactions are recorded in the chronological order is known as cash book. Cash receipts are recorded on the debit side and Cash payments are recorded on the credit side. It is like a subsidiary book and a principal book.

Question 2.
What are the different types of cash book?
Answer:
The main cash book may be of various types and following are the three most common types.

Simple or single column cash book (only cash column)
Cash book with cash and discount column (double column cash book)
Cash book with cash, discount and bank columns (three column cash book).
Apart from the main cash book, petty cash book may also be prepared to enter the petty expenses, i.e., expenses involving small amount.

Question 3.
What is simple cash book?
Answer:

Single column cash book or simple cash book, like a ledger account has only one amount column, i.e., cash column on each side.
Only cash transactions are recorded in this book.
All cash receipts and payments are recorded systematically in this book.

Question 4.
Give the format of ‘Single column cash book’.
Answer:
Simple Cash Book
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 1

Question 5.
What is double column cash book?
Answer:

It is a cash book with cash and discount columns.
As there are two columns, i.e., discount and cash columns, both on debit and credit sides, this cash book is known as ‘double column cash book’.
Discount column represents discount allowed on the debit side and discount received on the credit side.

Question 6.
Give the format of ‘Double column cash book’.
Answer:
Double Column Cash Book
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 2

Question 7.
What is three column cash book?
Answer:

A three column cash book includes three amount columns on both sides, i.e., cash, bank and discount.
This cash book is prepared in the same way as simple and double column cash books are prepared.
The transactions which increase the cash and bank balance are recorded on the debit side of the cash and bank columns respectively.
Opening balance of cash and favorable bank balance appear as the first item on the debit side of the three column cash book in case of existing business.

Question 8.
What is cash discount?
Answer:

Cash discount is allowed to the parties making prompt payment within the stipulated period of time or early payment.
It is discount allowed (loss) for the creditor and discount received (gain) for the debtor who makes payment.
The discount is allowed when payment is received or made and hence, the entry for discount is also passed with the entry of payment.
Cash discount motivates the debtor to make the payment at an earlier date to avail discount facility.

Question 9.
What is trade discount?
Answer:

Trade discount is a deduction given by the supplier to the buyer on the list price or catalogue price of the goods.
It is given as a trade practice or when goods are purchased in large quantities.
It is shown as a deduction in the invoice.
Trade discount is not recorded in the books of accounts.
Only the net amount is recorded.

Example:
Suppose the sale of goods for ₹ 10,000 was made and 10% was allowed as trade discount, the entry regarding sales will be made for ₹ 9,000 (10,000 – 10 per cent of 10,000). In the same way, purchaser of goods will also record purchases as 19,000).

Question 10.
What is a petty cash book?
Answer:

Business entities have to pay various small expenses like taxi fare, bus fare, postage, carriage, stationery, refreshment and other sundry items.
These are small payments and repetitive in nature.
If all these small payments are recorded in the main cash book, it will be loaded with lot of entries.
Hence, all petty payments of the business may be recorded in a separate book, which is called as petty cash book and the person who maintains the petty cash book is called the petty cashier.

III. Short Answer Questions

Question 1.
Explain the meaning of imprest system of petty cash book.
Answer:

Under this system, a fixed amount necessary or sufficient to meet petty payments determined on the basis of past experience is paid to the petty cashier on the first day of the period. (It may be a week or fortnight or month).
The amount given to the petty cashier in advance is known as “Imprest Money”.
The word imprest means payment in advance.
The petty cashier makes payments from this amount and records them in petty cash book.
At the end of a particular period, the petty cashier submits the petty cash book to the head cashier.
The head cashier scrutinies the petty payments and gives amount equal to the amount spent by petty cashier so that the total amount with the petty cashier is now equal to the amount he had received in the beginning as advance.
Under the system, the total cash with the petty cashier never exceeds the imprest at any time during the period.
This method thus provides an effective control over petty payments.

Question 2.
Bring out the differences between cash discount and trade discount.
Answer:
Following are the difference between cash discount and trade discount:
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 3

Question 3.
Write the advantages of maintaining petty cash book.
Answer:
Following are the advantages of maintaining petty cash book:

There can be better control over petty payments.
There is saving of time of the main cashier.
Cash book is not loaded with many petty payments.
Posting of entries from main cash book and petty cash book is comparatively easy.

Question 4.
Write a brief note on accounting treatment of discount in cash book.
Answer:

Discount column represents discount allowed on the debit side and discount received on the credit side.
In the discount columns, cash discount, i.e., cash discount allowed and cash discount received are recorded.
The net amount received is entered in the amount column on the debit side and the net amount paid is entered in the amount column on the credit side.
For the seller who allows cash discount, it is a loss and hence it is debited and shown on the debit side of the cash book.
For the person making payment, discount received is a gain because less payment is made and it is credited and shown on the credit side of the cash book.
The cash columns are balanced. Discount columns are not balanced, since debit represents discount allowed and credit represents discount received. They are totalled, separately.

The periodical totals of discount columns are posted as under:

Debit Discount allowed account as ‘To Sundry Accounts as per Cash book’, with the periodical total of the discount allowed column.
Credit Discount received account as ‘By Sundry Accounts as per Cash Book’ with the periodical total of the discount received column.

Question 5.
Briefly explain about contra entry with examples.
Answer:
1. When the two accounts involved in a transaction are cash account and bank account, then both the aspects are entered in cash book itself. As both the debit and credit aspects of a transaction are recorded in the cash book, such entries are called contra entries.

Example:

When cash is paid into bank, it is recorded in the bank column on the debit side and in the cash column on the credit side of the cash book.
When cash is drawn from bank for office use, it is entered in cash column on the debit side and in the bank column on the credit side of the cash book.

2. To denote that there are contra entries, the alphabet ‘C is written in L.F. column on both sides.

3. Contra means that particular entry is posted on the other side (contra) of the same book, because Cash account and Bank account are there in the cash book only and there are no separate ledger accounts needed for this purpose,

4. The alphabet ‘C’ indicates that no further posting is required and the relevant account is posted on the opposite side.

IV. Exercises

Question 1.
Enter the following transactions in a single column cash book of Seshadri for May, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 4
Solution:
In the book of Seshadri
Cash book (single column)

Question 2.
Enter the following transactions in a single column cash book of Pandeeswari for the month of June, 2017
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 6
Solution:
In the book of Pandeeswari
Cash book (single column)

Question 3.
Enter the following transactions in a single column cash book of Ramalingam for month of July, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 8
Solution:
Single column cash book of Mr. Ramalingam

Question 4.
Enter the following transaction in Chandran’s cash book with cash and discount columns.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 9a
Solution:
In the book of Mr. chandran
Cash book (with cash and discount columns)

Question 5.
Enter the following transaction in Chandran’s cash book with cash and discount column.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 11
Solution:
In the book of Mr. chandran
Cash book (with cash and discount columns)

Question 6.
Enter the following transactions in cash book with discount and cash column of Anand.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 13
Solution:
In the book of Anand
Cash book (with cash and Discount columns)

Question 7.
Write out a cash book with discount, cash and bank columns in the books of Mahendran. 2017 Oct?
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 15
Solution:
IIn the books of Mr. Mahendran
Three columns cash book

Question 8.
Enter the following transactions in the three column cash book of Kalyana Sundaram.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 17
Solution:
IIn the books of Mr. Mahendran
Three columns cash book

Question 9.
Enter the following transactions of Fathima in the cash book with a sh, bank and discount columns for the month of May, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 19
Solution:
In the books of Fathima
Dr. Three columns cash book

Question 10.
Enter the fallowing transactions in the three column cash book of Chozhan.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 21
Solution:
In the books of Sri Chozhan
Three Columns Cash Book

Question 11.
Enter the following transactions, in a cash book with cash, bank and discount columns of Sundari.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 23
Solution:

Question 12.
Record the following transaction in the three column cash book of Rajeswari for the month of June, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 25
Solution:
In the book of Miss. Rajeswari
Three columns cash book

Question 13.
Record the following transactions in three column cash book of Ramachandran.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 27
Solution:
In the book of Mr. Ramachandran
Three columns cash book

Question 14.
Record the. following transactions in the three column cash book of John Pandian.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 29
Solution:
In the book of Mr. John Pandian
Three columns cash book

Question 15.
Prepare a triple column cash book of Rahim from the following transactions:
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 31
Solution:
In the book of Mr. Rahim
Three Columns cash book

Question 16.
Prepare analytical petty cash book from the following particulars under imprest system:
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 32a
Solution:
Analytical petty cash book – Analysis of payments (in ₹)

Question 17.
From the following information prepare an analytical petty cash book under imprest system:
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 34
Solution:
Analytical petty cash book – Analysis of payments

Question 18.
Record the following transactions in an analytical petty cash hook and balance the same. On 1st November, 2017, the petty cashier started with imprest cash ₹ 2,000.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 36
Solution:
Analytical petty cash book – Analysis of payments

Question 19.
Enter the following transactions in Iyyappan’s petty cash hook with analytical columns under imprest system.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 38
Solution:

11th Accountancy Guide Subsidiary Books – II Additional Important Questions and Answers

I. Choose the correct answer.

Question 1.
Cash Book is a type of ________ but treated as a ________ of accounts.
a) Subsidiary book, Principal book
b) Principal book, subsidiary book
c) Subsidiary book, subsidiary book
d) Principal book, principal book
Answer:
a) Subsidiary book, Principal book

Question 2.
The imprest system pertains to ________.
a) Purchases book
b) Sales book
c) Cash book
d) Petty cash book
Answer:
d) Petty cash book

Question 3.
While balancing three column cash book, the discount columns are:
a) Totalled but not adjusted
b) Totalled and also adjusted
c) Totalled but not balanced
d) Balanced but not totalled
Answer:
c) Totalled but not balanced

Question 4.
In three column cash book, when does contra entry occur?
a) Withdrawal of cash from bank
b) Payment to creditors
c) Withdrawal of cash from bank for personal use
d) All of the above
Answer:
a) Withdrawal of cash from bank

Question 5.
Double entry in cash book is completed when:
a) Salaries are paid by cheque
b) Withdrawal of money from bank for personal use
c) Deposited cash into bank
d) None of these
Answer:
c) Deposited cash into bank

Question 6.
A book where small items of expenditure like postage, carriage, coolies, stationery etc., are entered is called ________.
a) Purchases book
b) Sales book
c) Cash book
d) Petty cash book
Answer:
d) Petty cash book

Question 7.
Cash sales are entered in the ________.
a) Purchases book
b) Sales book
c) Cash book
d) Petty cash book
Answer:
c) Cash book

Question 8.
Cash discount is recorded in the ________.
a) Purchases book
b) Sales book
c) Cash book
d) Journal proper
Answer:
c) Cash book

Question 9.
Subsidiary books are maintained in ________.
a) Big business concerns
b) Small business concerns
c) Banks
d) None of the above
Answer:
a) Big business concerns

Question 10.
Which of the following books should be used to record purchase of furniture on credit?
a) Purchases book
b) Goods account
c) Cash book
d) Journal proper
Answer:
d) Journal proper

Question 11.
The credit balance in the Bank account is ________.
a) An asset
b) A liability
c) An expense
d) None of the above
Answer:
b) A liability

Question 12.
Double entry means ________.
a) Entry in two sets of books
b) Entry in two pages
c) Entry for two aspects of a transaction
d) None
Answer:
c) Entry for two aspects of a transaction

Question 13.
Which of the following is not true?
a) Double Column cash book contains cash and bank columns
b) Discount columns are not balanced
c) The dosing balance of bank columns is called cash at bank
d) None of the above
Answer:
a) Double Column cash book contains cash and bank columns

Question 14.
Dishonour of a discounted bill, not recorded in the cash book will be added in the BRS, if the balance given is ________.
a) Unfavourable balance as per cash book
b) Favourable balance as per Pass book
c) Both (a) & (b)
d) None of the above
Answer:
c) Both (a) & (b)

Question 15.
The total of the purchases day book is posted periodically to the debit of ________.
a) Purchases account
b) Journal proper
c) Cash book
d) None of these
Answer:
a) Purchases account

Question 16.
Goods given as charity should be credited to ________.
a) Purchases account
b) Journal proper
c) Cash book
d) Charity Account
Answer:
a) Purchases account

Question 17.
“Bills payable discounted in cash by creditor”. This transaction will be recorded in ________.
a) Journal
b) Ledger
c) Bank book
d) No entry required to be made
Answer:
d) No entry required to be made

Question 18.
Contra entries are passed only when ________.
a) Double column cash book is prepared
b) Three-column cash books is prepared
c) Simple Cash book is prepared
d) None of these
Answer:
b) Three-column cash books is prepared

Question 19.
Which of the following is a type of cash receipt journal + cash payment journal?
a) Bank Statement
b) Cash flow statement
c) Cash book
d) None of these
Answer:
c) Cash book

Question 20.
Credit balance of the bank column in cash book shows:
a) Overdraft
b) Cash deposited in the bank
c) Cash withdrawn from the bank
d) None of these
Answer:
a) Overdraft

Question 21.
A cash book with discount and cash column is called ________.
a) Simple cash book
b) Double column cash book
c) Three column cash book
d) Petty cash book
Answer:
b) Double column cash book

Question 22.
When goods are purchased for cash, the entry will be recorded in the ________.
a) Cash book
b) purchases book
c) Sales book
d) journal
Answer:
a) Cash book

Question 23.
The balance of cash book indicates ________.
a) Net income
b) cash in hand
c) Debtors
d) creditors
Answer:
b) cash in hand

Question 24.
In triple column cash book, cash withdrawn from bank for office use Will appear in ________.
a) Debit side of the cash book only
b) both sides of the cash book,
c) Credit side of the cash book only.
d) Journal proper
Answer:
b) both sides of the cash book,

Question 25.
If a cheque sent for collection is dishonoured, the debit is given to ________.
a) suppliers A/c
b) bank A/c
c) customers A/c
d) A and B
Answer:
c) customers A/c

Question 26.
If a cheque issued by us is dishonoured the credit is given to ________.
a) supplier’s A/c
b) customer’s A/c
c) bank A/c
d) A and B
Answer:
a) supplier’s A/c

Question 27.
Cash book always shows.
a) debit balance
b) credit balance
c) nill balance
d) credit balance and debit balance
Answer:
a) debit balance

Question 28.
Bank book always shows ________.
a) debit balance
b) credit balance
c) nil balance
d) credit balance and debit balance
Answer:
d) credit balance and debit balance

Question 29.
On Jan 1st 2017, Rs.1,000 given to petty cashier. He has spent Rs.960during the month of January. On Feb 1st to make the imprest he will receive cheque for Rs. ________.
a) Rs. 1,000
b) Rs. 960
c) Rs. 1,960
d) Rs. 40
Answer:
b) Rs. 960

Question 30.
The dosing balance of petty cash book is considered as ________.
a) Liability
b) Asset
c) Expenses
d) Income
Answer:
b) Asset

Question 31.
Payment of rent expenses is recorded on which side of cash book ?
a) Receipts
b) Payments
c) Income
d) Expense
Answer:
b) Payments

Question 32.
The most common imprest system is the ________ systems.
a) pretty cash
b) cash book
c) cash receipt
d) discount
Answer:
a) pretty cash

II. Short Answer Questions

Question 1.
Enter the following transactions in the simple column cash book.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 40
Solution:

III. Additional Questions & Answers

Question 1.
What is the importance’s of cash book?
Answer:
Serves as both journal and ledger – When cash book is maintained, it is not necessary to open a separate cash account in the ledger. Thus, cash book serves the purpose of a journal and a ledger.

Saves time and labour – When cash transactions are recorded through journal entries, a lot of time and labour will be involved. To avoid this, all cash transactions are straightaway recorded in the cash book, which saves time and labour.

Shows the cash and bank balance – It helps to know the cash and bank balance at any point of time by comparing the total cash receipts and cash payments.

Benefit of division of labour – As cash book is a separate subsidiary book, an independent person can maintain it. Hence, business can get the benefit of division of labour.

Effective cash management – Cash book provides all information regarding total receipts and payments of the business concern during a particular period. It helps in formulating effective policy for cash management.

Prevents errors and frauds – Balance as per cash book and the balance in the cash box can be compared daily. If there is any deficit or surplus, it can be found easily. It helps in preventing any fraud or error in cash dealings.

Question 2.
What are the various types of petty cash book?
Answer:
There are two types of petty cash books. They are:

Simple petty cash book
Analytical petty cash book

Simple petty cash book –
A simple petty cash book resembles the single column cash book. But the columns are different. On the debit side, only the advance received from the head cashier is recorded. On the credit side, all payments are recorded in only one column. This is known as simple petty cash book.

Analytical petty cash book –
In analytical petty cash book, a separate column is provided for different heads of payments and one column for total payments. When the petty expenses are recorded in the total payment column, same amount is also recorded in the appropriate expense column. This is known as analytical petty cash book.

Question 3.
What is Simple petty cash hook?
Answer:
A simple petty cash book resembles the single column cash book. But the columns are different. On the debit side, only the advance received from the head cashier is recorded. On the credit side, all payments are recorded in only one column. This is known as simple petty cash book.

Question 4.
What is Analytical petty cash book?
Answer:
In analytical petty cash book, a separate column is provided for different heads of payments and one column for total payments. When the petty expenses are recorded in the total payment column, same amount is also recorded in the appropriate expense column. This is known as analytical petty cash book.

Question 5.
Give any two Examples for a Contra Entry.
Answer:

Cash paid into bank.
Money withdrawn from bank for office use.

Additional Sums:

Question 1.
Enter the following in the simple column cash book.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 41
Solution:
Single Column Cash Book

Question 2.
Enter the Following transactions in a petty cash book of Mr, Kishore Kumar with analytical columns the petty cashier beigns with an imprest amount of Rs.1,000.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 43
Solution:

Question 3.
Prepare petty cash book on imperst system from the Following Particulars given below.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 46
Solution:

Question 4.
Prepare the analytical petty cash book of Mr. Keerthivasan from the Following.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 48
Solution:

Question 5.
Thiru.Suganthan started business with the capital of Rs.15,00,000 on 01.01.2018. He paid into Bank Rs.10,00,000. He tarried out the following transactions during the month is given below; prepare the cash of Suganthan.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 50
Solution:
Single Column Cash Book of Mr. Suganthan

Question 6.
Enter the lowing transactions of Royce in Double Column Cash Book.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 52
Solution:
Double Column Cash Book of Royce

Question 7.
Record the following transactions in the Double CoSusium cash book of Mr. X
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 56
Solution:
Double Column Cash Book of Mr. X

Question 8.
Enter the following transactions of a trader in a triple column cash book.
2015,
Nov.
1 – Nizam started business with ₹ 1,00,000
2 – Deposited into bank of Baroda ₹ 95,000
5 – Purchased a building for ₹ 70,000 and paid by cheque
10 – Purchased merchandise ₹ 20,000 and paid by cheque
25 – Paid freight ₹ 50
29 – Withdrew from bank for personal use ₹ 500
30 – Cleared electricity bills ₹ 90
Solution:
Cash Book of a Trader
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 58

Question 9.
Enter the following transactions in the three columnar cash book of Mr.Z
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 59
Solution:
Three Column Cash Book of Mr.Z

Question 10.
Enter the following transactions in Gopi’s Three Column Cash Book:
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 61
Solution:
Three Column Cash Book of Mr.Z

Question 11.
Enter the following transactions in cash book of Mr. K with cash, bank and discount columns
2018
Feb.
1 – Cash in hand Rs. 1,60,000
3 – Opened bank account with Rs. 70,000
5 – Cash purchases Rs. 1,00,000
6 – Cash Sales Rs. 1,30,000
14 – Withdrew cash for office use Rs. 20,000
20 – Sold goods to Sundar Rs. 90,000
25 – Cash received from Sundar Rs. 88,000 in full settlement
28 – Paid Salaries Rs. 30,000
29 – With drew Rs. 10,000 from bank for domestic purpose
30 – Paid Rent Rs. 10,000
31 – Paid to Prabhu Rs. 37,000 in full settlement against his claim of Rs. 40,000 during 2017
Solution:
Triple Column Cash Book of Mr. K
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 63

Question 12.
Enter the following transactions in Ganesan’s cash book with columns for cash, bank and discount:
2017
Nov
1 – Balance in cash on hand Rs. 400 and at Bank Rs. 3,600
3 – Received Rs. 1,600 from Gopalan in cash; Allowed him discount of Rs. 20
3 – Paid Rs. 1,000 into bank
4 – Cash sales Rs. 1,200
5 – Paid salaries by cheque Rs. 1,600
6 – Repairs of typewriter Rs. 600
8 – Paid Rs. 1,200 to Modern Co., half in cash and half in cheque
Solution:
Triple Column Cash Book of Mr.Ganeshan
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 64

Question 13.
From the following particulars prepare analytical column of petty cash book of Mr. Z:
2017
Dec
1 – Received from head cashier Rs. 300
2 – Paid for stationary Rs. 20; Postage and telegram paid Rs. 10; Paid office expenses Rs. 15
4 – Bought paper and ink Rs. 10
5 – Paid for Tiffen to office peon Rs. 8; Bought postage stamps Rs. 15
6 – Paid Selvan on account Rs. 15
7 – Paid for miscellaneous office expenses Rs. 10
8 – Paid Cartage Rs. 10; Paid travelling expenses Rs. 15
Solution:
Analytical Petty Cash Book of Mr. Z
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 65

Question 14.
Lakshman, maintains a columnar petty cash book on the imprest system. The imprest amount is Rs.400. From the following information write up the petty cash book for the 1st Week of January 2018.
Jan
2018
1 – Bought stamps Rs. 50 (Voucher No.l)
2 – Paid bus fares Rs. 4 (Voucher No.2)
2 – Paid postages Rs. 10 (Voucher No.3)
2 – Paid envelopes Rs. 30 (Voucher No.4)
2 – Paid for refreshment Rs. 14 (Voucher No.5)
3 – Paid Arun a creditor Rs. 62 (Voucher No.6)
4 – Paid for postage Rs. 20 (Voucher No.7)
5 – Paid Guru a creditor Rs. 105 (Voucher No.8)
6 – Paid train fares Rs. 45 (Voucher No.9)
7 – Restored imprest
Solution:
Analytical Petty Cash Book of Mr. Lakshman
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 66

Question 15.
From the following transactions for the month of June 2017, drew up a Petty Cash Book in analytical form:
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 67
Solution:
Analytical Petty Cash Book

Question 16.
Prepare Mr. Keerthivasan single column cash book.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 69
Solution:
Single column book of Mr. Kishore Kumar

Question 17.
Record the transactions given below in the double column cash book of cash book (with discount and cash columns) of Mr. Kirubakaran.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 71
Solution:
Double column cash book or Mr. Kirunakaran (Cash book with discount and cash column)

Question 18.
Enter the following transaction in the cash book with discount and cash columns of Mr. Guru.
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 73
Solution:
Double column cash book or Mr. Guru
(Cash book with discount and cash column)

Question 19.
Enter the following transaction in the three column cash book of Mr. kumaran.
2002
May
1 – Cash in hand Rs. 30,000; Cash at bank Rs. 2,000
3 – Received cheque for goods sold to Arun and bank Rs. 1,000
5 – Paid into bank Rs. 4,000
9 – Paid cash to david from whom goods worth Rs.6,000 were purchased for credit on 1st May on term 2% cash discount within two weeks
10 – Paid to Robert by cheque Rs.2,400 in full settlement of his account of Rs.2,500
12 – Received cash from Nathan Rs.4,750 Discount allowed Rs.250
19 – Interest allowed by bank Rs.200
20 – Robert to whom we have usued a cheque has reported that our cheque is dishounred
22 – Roshan got exchange for a Five hundred rupee note
31 – Paid into bank all cash in excess of Rs.5000
Solution:
Trible column cash book or Mr. Guru
(Cash book with discount and cash column)
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 75

Question 20.
Enter the following transactions in the triple column cash hook of Mr.Yogesh
Samacheer Kalvi 11th Accountancy Guide Chapter 7 Subsidiary Books – II 76
Solution:
Trible column cash book or Mr. Kumaran
(Cash book with discount and cash column)

Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I

March 25, 2021

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Accountancy Guide Pdf Chapter 6 Subsidiary Books – I Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 6 Subsidiary Books – I

11th Accountancy Guide Subsidiary Books – I Text Book Back Questions and Answers

I. Multiple Choice Questions

Choose the correct answer.

Question 1.
Purchases book is used to record ________.
a) all purchases of goods
b) all credit purchases of assets
c) all credit purchases of goods
d) all purchases of assets
Answer:
c) all credit purchases of goods

Question 2.
A periodic total of the purchases book is posted to the ________.
a) debit side of the purchases account
b) debit side of the sales account
c) credit side of the purchases account
d) credit side of the sales account
Answer:
a) debit side of the purchases account

Question 3.
Sales book is used to record ________.
a) all sales of goods
b) all credit sales of assets
c) all credit sales of goods
d) all sales of assets and goods
Answer:
c) all credit sales of goods

Question 4.
The total of the sales book is posted periodically to the credit of ________.
a) Sales account
b) Cash account
c) Purchases account
d) Journal proper
Answer:
a) Sales account

Question 5.
Purchase returns book is used to record ________.
a) returns of goods to the supplier for which cash is not received immediately
b) returns of assets to the supplier for which cash is not received immediately
c) returns of assets to the supplier for which cash is received immediately
d) None of the above
Answer:
a) returns of goods to the supplier for which cash is not received immediately

Question 6.
Sales return book is used to record ________.
a) Returns of goods by the customer for which cash is paid immediately
b) Returns of goods by the customer for which cash is not paid immediately
c) Returns of assets by the customer for which cash is not paid immediately
d) Returns of assets by the customer for which cash is paid immediately
Answer:
b) Returns of goods by the customer for which cash is not paid immediately

Question 7.
Purchases of fixed assets on credit basis is recorded in ________.
a) Purchases book
b) Sales book
c) Purchases returns book
d) Journal proper
Answer:
d) Journal proper

Question 8.
The source document or voucher used for recording entries in sales book is ________.
a) Debit note
b) Credit note
c) Invoice
d) Cash receipt
Answer:
c) Invoice

Question 9.
Which of the following statements is not true?
a) Cash discount is recorded in the books of accounts
b) Assets purchased on credit are recorded in journal proper
c) Trade discount is recorded in the books of accounts
d) 3 grace days are added while determining the due date of the bill
Answer:
c) Trade discount is recorded in the books of accounts

Question 10.
Closing entries are recorded in ________.
a) Cash Book
b) Journal Proper
c) Ledger
d) Purchases book
Answer:
c) Ledger

II. Very Short Answer Type Questions

Question 1.
Mention four types of subsidiary books.
Answer:
The following are the four types of subsidiary books.

Cash book
Purchases book
Sales book
Bills receivable book

Question 2.
What is purchases book?
Answer:

Purchases book is a subsidiary book in which only credit purchases of goods are recorded.
While recording transactions in the purchases book, it must be ascertained whether the credit purchase is related to the item in which the firm is dealing.
Purchases of assets and purchase of goods for cash are not entered in purchases book.

Question 3.
What is purchases returns book?
Answer:

Purchases returns book is a subsidiary book in which transactions relating to return of previously purchased goods to the suppliers, for which cash is not immediately received are recorded.
Since goods are going out to the suppliers, they are also known as returns outward and the book is called as ‘returns outward book or returns outward journal’.

Question 4.
What is sales book?
Answer:

Sales book is a subsidiary book maintained to record credit sale of goods. Goods mean the items in which the business is dealing.
These are meant for regular sale.
Cash sale of goods and sale of property and assets whether for cash or on credit are not recorded in the sales book.
This book is also named as sales day book, sold day book, sales journal or sale register.

Question 5.
What is sales returns book?
Answer:

Sales returns book is a subsidiary book, in which, details of return of goods are sold for which cash is not immediately paid are recorded.
This book is not concerned with the return of assets or return of goods for which cash is paid. <$> This book is prepared just like the other day books.

Question 6.
What is debit note?
Answer:

A ‘debit note’ is a document, bill or statement sent to the person to whom goods are returned.
This statement informs that the supplier’s account is debited to the extent of the value of goods returned.
It contains the description and details of goods returned, name of the party to whom goods are returned and net value of the goods so returned with reason for return.

Question 7.
What is credit note?
Answer:

A credit note is prepared by the seller and sent to the buyer when goods are returned indicating that the buyer’s account is credited in respect of goods returned.
Credit note is a statement prepared by a trader who receives back from his customer the goods sold.
It contains details such as the description of goods returned by the buyer, quantity returned and also their value.

Question 8.
What is journal proper?
Answer:

Journal proper is a residuary book which contains record of transactions, which do not find a place in the subsidiary books such as cash book, purchases book, and sales book, purchases returns book, sales returns book, bills receivable book and bills payable book.
Journal proper or general journal is a book in which the residual transactions which cannot be entered in any of the sub divisions of journal are entered.

Question 9.
Define bill of exchange.
Answer:
According to the Negotiable Instruments Act, 1881, “Bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument”.

Question 10.
What is an opening entry?
Answer:

At the end of the accounting year, all nominal accounts are closed but the business has to be carried on with previous year’s assets and liabilities.
These accounts are to be brought into the accounts of the current year.
Journal entry made in the beginning of the current year with the balances of assets and liabilities of the previous year is opening journal entry.
In this entry, asset accounts are debited, liabilities and capital accounts are credited.

Question 11.
What Is an invoice?
Answer:

Invoice is a business document or bill or statement, prepared and sent by the seller to the buyer giving the details of goods sold, such as quantity, quality, price, total value, etc.
The invoice is a source document of prime entry both for the buyer and the seller.

III. Short Answer Questions

Question 1.
Give the format of purchases book.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 1

Question 2.
Mention the subsidiary books in which the following transactions are recorded.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 2

Question 3.
What are the advantages of subsidiary books?
Answer:
The advantages of maintaining subsidiary books can be summarised as under : Proper and systematic record of business transactions –

All the business transactions are classified and grouped conveniently as cash and non cash ‘ transactions, which are further classified as credit purchases, credit sales, returns, etc.
As separate books are used for each type of transactions, individual transactions are properly and systematically recorded in the subsidiary books.

Convenient posting:

All the transactions of a particular nature are recorded at one place, i.e., in one of the subsidiary books.
For example, all credit purchases of goods are recorded in the purchases book and ail credit sales of goods are recorded in the sales book.
It facilitates posting to purchases account, sales account and concerned personal accounts.

Division of work:
As journal is sub-divided, the work will be sub-divided and different persons can work on different books at the same time and the work can be speedily completed.

Efficiency:

The sub-division of work gives the advantage of specialisation. When the same work is done by a person repeatedly the person becomes efficient in handling it.
Thus, specialisation leads to efficiency in accounting work.

Helpful in decision making:

Subsidiary books provide complete details about every type of transactions separately.
Hence, the management can use the information as the basis for deciding its future actions.
For example, information regarding sales returns from the sales returns book will enable the management to analyse the causes for sales returns and to adopt effective measures to remove deficiencies.

Prevents errors and frauds:

Internal check becomes more effective as the work can be divided in such a manner that the work of one person is automatically checked by another person.
With the use of internal check, the possibility of occurrence of errors or fraud may be avoided or minimised.

Availability of requisite information at a glance:

When all transactions are entered in one journal, it is difficult to locate information about a particular item.
When subsidiary books are maintained, details about a particular type of transaction can be obtained from subsidiary books.
The maintenance of subsidiary books helps in obtaining the necessary information at a glance.

Detailed Information available : As all transactions relating to a particular item are entered in a subsidiary book, it gives detailed information. It is easy to arrive at monthly or quarterly totals.

Saving in time : As there are many subsidiary books, work of entering can be done simultaneously by many persons. Thus, it saves time and accounting work can be completed quickly.

Labour of posting is reduced : Labour of posting is reduced as posting is made in periodical totals to the impersonal account, for example, Purchases account.

Question 4.
Write short notes on:
Answer:
a) Endorsement of a bill:

Endorsement means signing on the face or back of a bill for the purpose of transferring the title of the bill to another person.
The person who endorses is called the “Endorser”.
The person to whom a bill is endorsed is called the “Endorsee”.
The endorsee is entitled to collect the money.

b) Discounting of a bill:

When the holder of a bill is in need of money before the due date of a bill, cash can be received by discounting the bill with the banker.
This process is referred to as the discounting of bill.
The banker deducts a small amount of the bill which is called discount and pays the balance in cash immediately to the holder of the bill.

IV. Exercises

Question 1.
Enter the following transactions in the Purchases book of M/s. Subhashree Electric Co., which deals in electric goods?
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 3
Solution:

Question 2.
Enter the following credit transactions in the purchases book of Manoharan, a Provisions Merchant.
2017
May 2 – Bought from Vasu 100 bags of rice @ ₹ 800 per bag
May 8 – Bought from Cheyyar Sugar Mills Ltd., 20 bags of sugar @ ₹ 2,600 per bag
May 10 – Bought from Ram Flour Mill, Coimbatore, 10 bags of wheat flour @ ₹ 750 per bag
May 15 – Bought from Nilgiri Tea Co., Nilgiris, 15 cases of tea @ ₹ 900 per case
May 25 – Bought from Sairam Coffee Works Ltd., 100 kgs of Coffee @ ₹ 190 per kg.
May 29 – Bought from X & Co. furniture worth ₹ 2,000
Solution:
In the books of Manoharan Provisional Merchant Purchases as book.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 5

Question 3.
From the following transactions write up the Sales day book of M/s. Ram & Co., a stationery. merchant.
2017
Jan. 1 – Sold to Anbu & Co., on credit 20 reams of white paper @ ₹ 150 per ream
Jan. 2 – Sold to Jagadish & Sons on credit 6 dozen pens @ ₹ 360 per dozen
Jan. 10 – Sold old newspapers for cash @ ₹ 620
Jan. 15 – Sold on credit M/s. Elango & Co., 10 drawing boards @ ₹ 170 per piece
Jan. 20 Sold to Kani & Co., 4 writing tables at ₹ 1,520 per table for cash
Solution:
In the books of M/s. Ram & Co. a Stationary Merchant
Sales Book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 6

Question 4.
Enter the following transactions in the Sales book of Kamala Stores, a furniture shop.
2017
May 2 – Sold to Naveen Stores, Trichy on credit 5 computer tables @ ₹ 1,750 per table
May 9 – Sold to Deepa & Co., Madurai on credit 6 dining tables @ ₹ 1,900 per dining table
May 15 – Sold to Rajesh 10 dressing tables @ ₹ 2,750 each on credit
May 24 – Sold to Anil 5 wooden tables @ ₹ 1,250 per table on credit
May 27 – Sold to Gopi 3 old computers @ ₹ 3,500 each
May 29 – Sold 50 chairs to Anil @ ₹ 275 each for cash
Solution:
In the books of Kamala Stores a Furniture’s Shop
Sales book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 7

Question 5.
Enter the following transactions in the purchases and sales books of Kannan, an automobile dealer, for the month of December, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 8
Solution:
In the books of Kannan
Purchase book

In the books of Kannan
Sales book

Question 6.
Prepare Purchases book and Sales book in the books of Santhosh Textiles Ltd., from the following transactions given for April, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 11
Solution:
In the books of Santhosh Textile Ltd,
Purchase Book

In the books of Santhosh Textile Ltd,
Sales Book

Question 7.
From the following information, prepare purchase day book and purchases returns book for the month of June, 2017 and post them into ledger accounts in the books of Robert Furniture Mart.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 14
Solution:
In the books of Robert Furniture Mart.
Purchases Book

In the books of Robert Furniture Mart.
Purchase return A/C

Ledger Account
Purchases Account

Balu Traders

Subash & Co.

Sunrise Furniture

Mouli Traders
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 21
Purchase Return Account

Question 8.
Enter the following transactions in the proper subsidiary books of Suman who is dealing in electronic goods for the month of January, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 23
Solution:
In the books of Suman

In the books of Suman
Purchase Returns Book

Question 9.
Enter the following transactions in the sales book and saies returns book of M/s. Guhan & Sons, who is a textile dealer.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 26
Solution:
In the books of Guhan & Sons
Sales Books

In the books of Guhan & Sons
Sales Return Book

Question 10.
Record the following transactions in the sales book and sales returns book of M/s. Ponni & Co., and post them to ledger.
2017
Aug 1 – Sold goods to Senthii as per Invoice No. 68 for ₹ 20,500 on credit
Aug 4 – Sold goods to Madhavan as per Invoice No. 74 for ₹ 12,800 on credit
Aug 7 – Sold goods to Kanagasabai as per Invoice No. 78 for 17,500 on credit
Aug 15 – Returns inward by Senthii as per Credit Note no. 7 for ₹ 1,500 for which cash is not paid
Aug 20 – Sold goods to Selvarn for ₹ 13,300 for cash
Aug 25 – Sales returns of 11,800 by Madhavan as per Credit Note No. 11 for which cash is not paid
Solution:
In the books of Ponni & Co
Sales Book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 29
In the books of Ponni & Co.
Sales Return Book

Ledger A/C
Sales Account

Senthil Account

Madhavan Account
Kanagasabai Account

Sales Return Account

Question 11.
Prepare necessary subsidiary books in the books of Niranjan and aiso Sachin account and Mukil account from the following transactions for the month of February, 2017.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 36
Solution:
In the books of Sachin account and Mukil account.
Purchase Book (Mukil Account)

Sales Book

Purchase Return Book

Sales return Book

Ledger
Sachin Account

Mukil Account

Question 12.
From the following information, prepare the necessary subsidiary books for Nalanda Book Stores.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 43
Solution:
In the books of Naianda Book Stores
Purchase Book

In the books of Naianda Book Stores
Sales Book

Purchase return books

11th Accountancy Guide Subsidiary Books – I Additional Important Questions and Answers

I. Choose the correct answer

Question 1.
If goods are sold but not delivered to the customer, they will be included in _______.
a) Closing Inventory
b) Goods in transit
c) Sales
d) Sales in returns
Answer:
b) Goods in transit

Question 2.
Goods Of Rs.800 (sales price) sent on sale on approval basis were included In the sales book. The profit included in the sales was 25% on cost. Inventory with the party will increase our closing inventory by _______.
a) Rs. 600
b) Rs. 640
c) Rs. 680
d) Rs. 700
Answer:
b) Rs. 640

Question 3.
List price of the goods purchased is Rs. 60,000 cash paid is Rs. 45,000 (After receiving a cash discount of Rs. 9,000) the trade discount will be?
a) 10 %
b) 7.5 %
c) 15 %
d) 25 %
Answer:
a) 10 %

Question 4.
A trader purchased goods for Rs. 4,000 at a discount of 5%. As he paid the amount immediately, a cash discount of Rs.100 was also allowed. In this case, Purchases A/c is debited by:
a) Rs. 4,000
b) Rs. 3,800
c) Rs. 3,700
d) Rs. 3,900
Answer:
b) Rs. 3,800

Question 5.
The periodical total of the Sales Return Book is posted to the _______.
a) Debit side of Sales Account
b) Debit side of Sales Return Account
c) Credit side of Sales Return Account
d) Debit side of Debtors Return Account
Answer:
b) Debit side of Sales Return Account

Question 6.
Debit notes issued are used to prepare _______.
a) Sales returns book
b) Puchases returns book
c) Journal proper
d) Puchases book
Answer:
b) Puchases returns book

Question 7.
Trade discount allowed at the time of sale of goods is _______.
a) Recorded in Sales Book
b) Recorded in Cash Book
c) Recorded in Journal
d) Not recorded in Books of Accounts
Answer:
d) Not recorded in Books of Accounts

Question 8.
Subsidiary books are maintained in _______.
a) Big business concerns
b) Small business concerns
c) Banks
d) None of the above
Answer:
a) Big business concerns

Question 9.
Journal Proper is used to record _______.
a) Ail cash and credit transaction
b) cash and credit sales
c) Cash and credit purchases
d) adjusting and closing entries
Answer:
d) adjusting and closing entries

Question 10.
Cash discount is recorded in the _______.
a) Cash book
b) Sales Book
c) Purchases book
d) Journal
Answer:
a) Cash book

Question 11.
The cash discount allowed to a debtor should b e credited to _______.
a) Discount Account
b) Customer’s Account
c) Sales account
d) None of the above
Answer:
b) Customer’s Account

Question 12.
Which of the following books should be used to record purchase of furniture on credit?
a) Petty Cash Book
b) Journal Proper
c) Cash Book
d) None of the above
Answer:
b) Journal Proper

Question 13.
The return of goods to a supplier should be credited to _______.
a) Supplier Account
b) Goods Account
c) Purchase Return Account
d) None of the above
Answer:
c) Purchase Return Account

Question 14.
The other name of Sales Returns book is _______.
a) Returns Inwards Book
b) Sales Returns Journal
c) both (a) & (b)
d) None of the above
Answer:
c) both (a) & (b)

Question 15.
The statement sent to the suppliers on account of return of goods is known as _______.
a) Debit Note
b) Credit Note
c) Journal Proper
d) None of the above
Answer:
a) Debit Note

Question 16.
On 1st January 2918, pugazh draws a bill on Sundar for 3 months, Its due date is _______.
a) 31st March 2018
b) 1st April 2018
c) 4th April 2018
d) 4th April 2018
Answer:
c) 4th April 2018

Question 17.
Goods returned by customers are recorded in _______.
a) Sales book
b) sales return book
c) Purchases book
d) purchases return book
Answer:
b) sales return book

Question 18.
Goods returned by suppliers are recorded in _______.
a) Sales book
b) sales return book
c) Purchases book
d) purchases return book
Answer:
d) purchases return book

Question 19.
Days of grace are _______ in number.
a) one
b) two
c) three
d) four
Answer:
c) three

Question 20.
The person who prepares a bill is called the _______.
a) Drawer
b) Drawee
c) Payee
d) All of these
Answer:
a) Drawer

Question 21.
The person who has to make the payment or who accepts to make the payment is called _______.
a) Drawer
b) Drawee
c) Payee
d) All of these
Answer:
b) Drawee

Question 22.
The person who receives the payment is payee _______.
a) Drawer
b) Drawee
c) Payee
d) All of these
Answer:
d) All of these

Question 23.
_______ means signing on the face or back of a bill for the purpose of transferring the title of the bill to another person.
a) Endorsement
b) Discounting
c) Retiring of bill
d) Renewal
Answer:
a) Endorsement

Question 24.
_______ is the statement prepared by the seller of goods.
a) Voucher
b) Receipt
c) Invoice
d) Ledger
Answer:
c) Invoice

Question 25.
Puchases book does not keep record of purchases of _______.
a) Purchases book
b) sales book
c) Purchases returns book
d) sales returns book
Answer:
a) Purchases book

II. Very Short Answer Type Questions

Question 1.
Prepare Sales Book of M/S A :
i. 2016, Feb, 1 – Sold goods to prince Rs. 2,500
i. 2016, Feb 10 – Sold to Kannan 100 shirts @ Rs. 55 per shirt, Trade discount 10%
ii. 2016, Feb 26 – Sold old furniture to Rasi & sons Rs. 2,400 on credit.
Solution:
Sales Book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 47

Question 2.
Record the following transactions in the returns inwards book of Mr. A.
1. Dharani returned goods worth Rs. 700
2. Malaini returned goods worth Rs. 800
Answer:
Sales Returns Book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 48

III. Short Answer Questions

Question 1.
What is trade discount?
Answer:
Trade discount is a deduction given by the supplier to the buyer on the list price or catalogue price of the goods. It is given as a trade practice or when goods are purchased in large quantities. It is shown as a deduction in the invoice. Trade discount is not recorded in the books of accounts. Only the net amount is recorded.

Example : Suppose the sale of goods for ₹ 10,000 was made and 10% was allowed as trade discount, the entry regarding sales will be made for Rs 9,000 (10,000 – 10 per cent of 10,000). In the same way, purchaser of goods will also record purchases as Rs 9,000).

Question 2.
Write notes on parties involved in a bill of exchange.
Answer:
There are three parties to a bill of exchange as under:

Drawer : The person who prepares the bill is called the drawer, i.e., a creditor.
Drawee : The person who has to make the payment or who accepts to make the payment is called the drawee, i.e., a debtor.
Payee : The person who receives the payment is payee. He may be a third party or the drawer of the bill.

Question 3.
What are the features of bills of exchange?
Answer:

It is a written document.
It is an unconditional order.
It is an order to pay a certain sum of money.
It is signed by the drawer.
It bears stamp or it is drafted on a stamp paper.
It is to be accepted by the acceptor.

Question 4.
What is Due date?
Answer:
When a bill is drawn payable after a specified period, the date on which the payment should be made is called ‘Due date’.

Question 5.
What is Days of grace?
Answer:
In the calculation of the due date, three extra days are added to the specified period of the bills called ‘Days of grace’. If the date of maturity falls on a holiday, the bill will be due for payment on the preceding day.

Question 6.
Write notes on retiring of a bill.
Answer:
An acceptor may make the payment of a bill before its due date and may discharge the liability on the bill. It is called as retirement of a bill. Usually, the holder of the bill allows a concession called rebate to the drawee for the unexpired period of the bill.

Question 7.
Write notes on renewal of a bill of exchange.
Answer:
When the acceptor of a bill knows in advance that he/she will not be able to meet the bill on its due date, he/she may request the drawer for extension of time for payment. The drawer of the bill may agree to cancel the original bill and draw a new bill for the amount due with interest thereon. This is referred to as renewal.

Question 8.
Write notes on closing entries.
Answer:
At the end of the accounting period, all the ledger accounts relating to purchases, sales, purchases returns, sales returns, stock and other accounts concerning expenses, losses, incomes and gains are closed by transfer to trading and profit and loss account so that financial statements can be prepared. It should be noted that closing entries are made for nominal accounts only.

Question 9.
Write notes on rectifying entries.
Answer:
Rectifying entries are passed for rectifying errors which are committed in the books of accounts.

Example : Purchase of furniture by a stationery dealer for Rs 10,000 was debited to purchases account. Pass rectifying entry on December 31, 2017.
Rectifying Entry
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 49

Question 10.
What is Endorsement?
Answer:
Endorsement means signing on the face or back of a bill for the purpose of transferring the title of the bill to another person. The person who endorses is called the “Endorser”. The person to whom a bill is endorsed is called the “Endorsee”. The endorsee is entitled to collect the money.

Question 11.
What is discounting?
Answer:
When the holder of a bill is in need of money before the due date of a bill, cash can be received by discounting the bill with the banker. This process is referred to as the discounting of bill. The banker deducts a small amount of the bill which is called discount and pays the balance in cash immediately to the holder of the bill.

Question 12.
State the reasons for returning of the goods?
Answer:

not according to the order placed.
not upto the samples which were already shown.
due to damage condition.
due to price difference.
undue delay in the delivery of the goods.

Question 13.
What are the kinds of returns books?
Answer:

Purchases Return or Returns outward book.
Sales Return or Returns inward book.

Question 14.
What is Bills payable book?
Answer:
Details recorded in the bills payable book are the names of the parties whose bills are accepted, date of the bills payable, due date, amount, etc. The individual accounts of the parties whose bills are accepted will be debited with the corresponding amount in the bills payable book.

Question 15.
What is Bills receivable book?
Answer:
Bills receivable refers to bills drawn, the payment for which has to be received. In case of credit sales of goods, the entity may draw a bill on the buyer (debtor), for a certain period. This is called bills receivable for the business entity and bills payable for the debtor who has accepted the bill.

IV. Exercises

Question 1.
From the following transactions of Ram Home appliances for July, 2017 prepare pui books and ledger accounts connected with his book.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 50
Solution:
In the books of ram home appliances
Purchase book

Question 2.
Enter the following transactions in the purchases returns book of Hair who lealing in auto mobiles and post them into the 2017
2017
Jan 5 – Returned to Anand 10 dutch plates @ ₹ 200 each not in accordance with order.
Jan 14 – Returned to Chardran 5 brake shoes @ ₹ 200 each and 20 rear view Mirrors @ ₹ 350, each due to inferior quality
Solution:
In the books of Hari
Purchases Return book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 52

Question 3.
From the transactions given below, Prepare the sales book of Kumar Stationery of July 2017,
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 53
Solution:
Sales account

Ledger Accounts
Sales Account

Yogesh Traders A/c

Kumaran & Co, A/c

Question 4.
Enter the following transaction in returns inward book of Magesh a textile dealer.
2017
April 6 – Returned by Naren 40 shirts each costing ₹ 150 due top inferior Quality.
April 8 – Amar Tailors returned 10 T-shirts, each costing ₹ 100 on accounts Of being not in accordance with their order.
April 21 – Prema stars returned 20 salwar sets each costing ₹ 200, being not in Accordance with order.
Solution:
In the books of Magesh
Sales Return book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 57a

Question 5.
Enter the following transactions in proper subsidiary books.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 58
Solution:
Purchase Book

Sales book

Question 6.
Record the following transaction in the proper subsidiary books of M/S Ram & Co.
April
1 – Goods sold to Ramesh Rs. 1000
3 – Sold goods to Kumar Rs. 2,200.
8 – Sold goods to Shankar Rs. 300
10 – Goods returned by Kumar Rs. 600.
15 – Credit note sent to Shankar For Rs. 200
Solution:
In the books of Ram & Co.
Sales book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 61
Sales Return Book

Question 7.
Write the following transaction in proper subsidiary books of Mr. Pugazh.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 63
In the books of Mr. Pugazh
Purchased book

In the books of Mr. Pugazh
Purchased return book

Question 8.
Enter the following transaction in the proper subsidiary books of Mr. Somu.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 66
Solution:
In the books of Mr. Somu
Purchase book

In the books of Mr. Somu
Purchased return book

In the books of Mr. Somu
Sales book

In the books of Mr. Somu
Sales return book

Question 9.
Enter the following transactions in the appropriate special M/s Padmini & Co.
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 71
Solution:
In the books of M/S Padmini
Purchase book

In the books of M/S Padmini
Sales book

In the books of M/S Padmini
Purchase return book

In the books of M/S Padmini
Sale return book

Question 10.
Enter the following transactions in the subsidiary books:
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 76
Solution:
Purchases Book

Question 11.
Enter the following transactions in the purchase book of M/S Arun and post them in the ledger:
2016,
Jan.
9 – Purchased from Joseph stores, 15 boxes of pencil @ Rs.6 per box 15 Purchased for cash 10 Exercise book @ Rs.5 per book
18 – Bought Furniture from Fancy Furniture Mart for Rs.2,000, Trade discount @ 10%
21 – Purchased 25 bags of tea dust from Subam Traders @ Rs.20 per bag, Trade discount 5%
Solution:
Purchases Book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 78

Question 12.
From the particulars given below, write up the Purchases Day Book of M/s Hilton Electric Co, which deals in electrical goods:
2017,
Dec.
5 – Purchased on Credit from H Electric Co. – 10 Electric Iron @ Rs. 7,000 each; 5 – Electric Stoves @ Rs. 6,000 each;
16 – Purchased on credit from Khaitan Electric Co – 30 Electric Heater @ Rs. 12,000 each; 20 Electric Kettles @ Rs. 6,000 each;
21 – Purchased from Solar Electric Co. on credit – 10 Toasters @ Rs. 4,000 each; 5 – Electric Heater @ Rs. 12,000 each;
30 – Purchased from Bombay Electric Stores on Credit – 20 Electric Stoves @ Rs. 4,000 each; Electric Fans @ Rs. 3,000 each;
Solution:
Purchases Day Book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 79

Question 13.
Enter the following transactions in the sales book of Arun and post them into ledger.
2016,
Jan.
1 – Sold goods to Prince Rs. 2500
10 – Sold to Kannan 100 Shirts @ Rs. 45 per shirt, Trade discount 10%
21 – Sold old furniture to Kumar & Sons Rs. 1,200 on credit
Solution:
Sales Day Book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 80

Question 14.
From the following transactions write up the sales day book of M/s Rajesh & Co.
Jan.
1 – Sold to S 100 bags of sugar @ Rs. 7,000 per bag, less trade discount @ 5%
10 – Sold to D 20 bags of milk powder @ Rs. 6,000 per bag, less trade disc. @ 10%
20 – Sold to F 10 boxes of Tea @ Rs. 2,500 per box, less trade discount @ 10%
29 – Sold old office furniture on credit to Rainbow furniture mart for Rs. 64,000
Solution:
Sales Day Book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 81

Question 15.
Enter the following information in the proper subsidiary books:
Mar.
1 – Returned to Onida Co. Ltd 4 colour TVs @ Rs. 24,000 each
2 – Returned by Metro Electronics Ltd 4 pieces of Fridge costing Rs. 20,000 each
15 – Returned to Venus Electricals 2 pieces of electric heater @ Rs. 6,500 each
24 – Returned by Swasthica & Co , 4 pieces of Speakers costing Rs. 9,000 each
29 – Returned to LG ltd 3 pieces of Computer @ Rs. 40,000 each which was purchased for cash.
Solution:
Purchase Returns Book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 82
Sales Return Book

Question 16.
Record the following transactions in the bills receivable and the bills payable books of a trader:
2017
January
1 – Received from Narayan an acceptance of 3 months for Rs. 15,000
5 – Our acceptance to Rani at 4 months for Rs. 16,000
15 – Received from D & Co an acceptance for 2 months for Rs. 12,000
18 – Discount Narayan acceptance for Rs. 9,800
19 – Received from Giri an acceptance for 3 months for Rs. 16,000
20 – Our acceptance to Raja at 4 months for Rs. 15,000
21 – Kumar Renewed our acceptance to Rani by paying him cash Rs. 12,000 and accepted a fresh bill of Rs. 12,200 at 4 months, Rs. 200 has being interest charged
22 – D & Co acceptance endorsed in favour of G in full settlement of a debt of Rs. 2,250
Solution:
Bills Receivable Book
Samacheer Kalvi 11th Accountancy Guide Chapter 6 Subsidiary Books – I 84
Bills Payable Book