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CA Foundation Accounts CHP 2 Test Series Question Paper

The document provides details of various accounting transactions and errors that need to be recorded and rectified. It includes: 1) Journal entries for transactions by Gamma Bros including goods taken by employees, wages paid for machinery erection, and income tax paid. 2) Errors in books of M/s Suman & Co. like incorrect purchase and sale amounts recorded that need rectifying entries. 3) Instructions to prepare a triple column cash book from sample transactions and bring down the balance. 4) Types of accounting errors like incorrect sales account credit or purchase amount recorded that need classification. 5) Details of errors discovered in books after closing like overcasting of sales that require a suspense account

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Himanshu Ray
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4K views3 pages

CA Foundation Accounts CHP 2 Test Series Question Paper

The document provides details of various accounting transactions and errors that need to be recorded and rectified. It includes: 1) Journal entries for transactions by Gamma Bros including goods taken by employees, wages paid for machinery erection, and income tax paid. 2) Errors in books of M/s Suman & Co. like incorrect purchase and sale amounts recorded that need rectifying entries. 3) Instructions to prepare a triple column cash book from sample transactions and bring down the balance. 4) Types of accounting errors like incorrect sales account credit or purchase amount recorded that need classification. 5) Details of errors discovered in books after closing like overcasting of sales that require a suspense account

Uploaded by

Himanshu Ray
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CA Foundation Accounts Test Series


Chapter 2 Accounting Process
1. Prepare Journal Entries for the following transactions in the books of Gamma Bros.
(i) Employees had taken stock worth Rs 10,000 (Cost price Rs 7,500) on the eve of Deepawali and the
same was deducted from their salaries in the subsequent month.

(ii) Wages paid for erection of Machinery Rs 8,000

(iii) Income tax liability of proprietor Rs 1,700 was paid out of petty cash.
(iv) Purchase of goods from Naveen of the list price of Rs 2,000. He allowed 10% trade discount, Rs 50
cash discount was also allowed for quick payment.

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2. M/s Suman & Co. find the following errors in their books of account before preparation of Trial
Balance. You are required to pass necessary journal entries:

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s.
(i) A purchase of Rs 5,600 from M/s Minu & Co. was recorded in the accounts of M/s Mintu & Co. as Rs
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6,500. Day Book entry has also been passed incorrectly.
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(ii) A sale of Rs 9,800 to M/s Bantu Bros. was recorded in M/s Bindu & Co.’s account as Rs 8,900. Day
Book entry has also been incorrectly passed.
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(iii) Discount allowed Rs 560 (as per Cash Book) has been posted to Commission Account. But the Cash
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Book total should be Rs 650, because discount allowed of of Rs 90 to M/s Bantu Bros. has been
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omitted.

(iv) A cheque of Rs 9,700 drawn by M/s Bantu Bros. has been dishonoured, but wrongly debited to M/s
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Bhakt & Co.


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Should the Trial Balance tally without rectification of errors?


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3. Prepare a Triple Column Cash Book from the following `


transactions and bring down the balance for the start of next
month:
2017

1 Cash in hand 3,000


1 Cash at bank 12,000
2 Paid into bank 1,000
5 Bought furniture and 1,500
issued cheque
8 Purchased goods for 500
cash
12 Received cash from 980
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Mohan
Discount allowed to him 20
14 Cash sales 5,000
16 Paid to Amar by 1,450
cheque
Discount received 50
19 Paid into Bank 500
23 Withdrawn from 600
Bank for Private
expenses
24 Received cheque 1,430
from Parul
Allowed him discount 20
Deposited Parul’s cheque into
Bank
28 Withdrew cash 2,000
from Bank for

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Office use
30 Paid rent by 800
cheque

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s.
4. Classify the following errors under the three categories – Errors of Omission, Errors of
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Commission and Errors of Principle.
(i) Sale of furniture credited to Sales Account.
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(ii) Purchase worth Rs 4,500 from M not recored in subsidiary books.


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(iii) Credit sale wrongly passed through the Purchase Book


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(iv) Machinery sold on credit to Mohan recorded in Journal Proper but omitted to be posted.
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(v) Goods worth Rs 5,000 purchased on credit from Ram recorded in the Purchase Book as Rs 500.
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5.

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s.
6. The following mistakes were located in the books of a concern after its books were closed and a
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Suspense Account was opened in order to get the Trial Balance agreed:
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(i) Sales Day Book was overcast by Rs 1,000.


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(ii) A sale of Rs 5,000 to X was wrongly debited to the Account of Y.


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(iii) General expenses Rs 180 was posted in the General Ledger as Rs 810.
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(iv) A Bill Receivable for Rs 1,550 was passed through Bills Payable Book. The Bill was given by P.
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(v) Legal Expenses Rs 1,190 paid to Mrs. Neetu was debited to her personal account.
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(vi) Cash received from Ram was debited to Shyam Rs 1,500.


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(vii) While carrying forward the total of one page of the Purchases Book to the next, the amount of Rs
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1,235 was written as Rs 1,325.

Find out the nature and amount of the Suspense Account and Pass entries (including narration) for the
rectification of the above errors in the subsequent year’s books

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