BRS and financial Statement -Revision Test No-4 (2013) B. COM 1 Notes | EduRev

: BRS and financial Statement -Revision Test No-4 (2013) B. COM 1 Notes | EduRev

 Page 1


 
PUNEET COLLEGE                                        SCF 74, FF, SEC 10 PKL                                                                    98155 – 00062              
                                                                         SCO 269, TF, SEC 32D CHD                                            www.facebook.com/puneetcollege 
 
 
REVISION TEST NO – 4 (2013 – 14) 
BRS & FINANCIAL STATEMENTS  
 24
th
 DEC’ 13 
TIME – 1 Hr. 30 Min            SET – 1                 MM: 40 
Q 1: Prepare a Bank Reconciliation Statement from the following particulars: 
 On the 31
st
 March, I had an overdraft of Rs. 750 as show by my Pass Book. 
1. I have issued cheque amounting to Rs. 250 of which Rs. 200 worth only seem to 
have been presented for payment. 
2. Cheque amounting to Rs. 100 have been paid in by me on the 30
th
 March, but of 
these only Rs. 75 were credited in the Pass Book. 
3. I also find that a cheque for Rs. 10 which I had debited to Bank account in my 
books has been omitted to be banked. 
4. There is debit in my Pass Book of Rs. 25 of interest. 
5. An entry of Rs. 30 of a payment by a customer directly into the Bank appears in 
the Pass Book. 
6. My Pass Book also shows a credit of Rs. 60 to my account being interest on my 
investments collected directly by my bankers. 
 
Q 2: Prepare a Bank Reconciliation Statement on 31
st
 March, from the following 
particulars: 
1. A’s overdraft as per Pass Book Rs. 12, 000 as at 31
st
 March. 
2. On 30
th
 march, cheques had been issued for Rs. 70, 000 of which cheques worth 
Rs. 3, 000 only had been encashed up to 31
st
 March. 
3. Cheques amounting to Rs. 3,5 00 has been paid into the bank for collection but of 
these only Rs. 500 had been credited in the Pass Book. 
4. The Bank has charged Rs. 500 as interest on overdraft and the intimation of 
which has been receive don 2
nd
 April. 
5. The bank Pass Book shows credit for Rs. 1, 000 representing Rs. 400 paid by 
debtor of A directly into the  Bank and Rs. 600 collected directly by Bank in 
respect of interest on A’s investments. A has no knowledge of these items. 
6. A cheque for Rs. 200 has been debited in bank column of Cash book by A, but it 
was not sent to Bank at all. 
Page 2


 
PUNEET COLLEGE                                        SCF 74, FF, SEC 10 PKL                                                                    98155 – 00062              
                                                                         SCO 269, TF, SEC 32D CHD                                            www.facebook.com/puneetcollege 
 
 
REVISION TEST NO – 4 (2013 – 14) 
BRS & FINANCIAL STATEMENTS  
 24
th
 DEC’ 13 
TIME – 1 Hr. 30 Min            SET – 1                 MM: 40 
Q 1: Prepare a Bank Reconciliation Statement from the following particulars: 
 On the 31
st
 March, I had an overdraft of Rs. 750 as show by my Pass Book. 
1. I have issued cheque amounting to Rs. 250 of which Rs. 200 worth only seem to 
have been presented for payment. 
2. Cheque amounting to Rs. 100 have been paid in by me on the 30
th
 March, but of 
these only Rs. 75 were credited in the Pass Book. 
3. I also find that a cheque for Rs. 10 which I had debited to Bank account in my 
books has been omitted to be banked. 
4. There is debit in my Pass Book of Rs. 25 of interest. 
5. An entry of Rs. 30 of a payment by a customer directly into the Bank appears in 
the Pass Book. 
6. My Pass Book also shows a credit of Rs. 60 to my account being interest on my 
investments collected directly by my bankers. 
 
Q 2: Prepare a Bank Reconciliation Statement on 31
st
 March, from the following 
particulars: 
1. A’s overdraft as per Pass Book Rs. 12, 000 as at 31
st
 March. 
2. On 30
th
 march, cheques had been issued for Rs. 70, 000 of which cheques worth 
Rs. 3, 000 only had been encashed up to 31
st
 March. 
3. Cheques amounting to Rs. 3,5 00 has been paid into the bank for collection but of 
these only Rs. 500 had been credited in the Pass Book. 
4. The Bank has charged Rs. 500 as interest on overdraft and the intimation of 
which has been receive don 2
nd
 April. 
5. The bank Pass Book shows credit for Rs. 1, 000 representing Rs. 400 paid by 
debtor of A directly into the  Bank and Rs. 600 collected directly by Bank in 
respect of interest on A’s investments. A has no knowledge of these items. 
6. A cheque for Rs. 200 has been debited in bank column of Cash book by A, but it 
was not sent to Bank at all. 
 
PUNEET COLLEGE                                        SCF 74, FF, SEC 10 PKL                                                                    98155 – 00062              
                                                                         SCO 269, TF, SEC 32D CHD                                            www.facebook.com/puneetcollege 
Q 3: The cash book of Mr. Avinash shows Rs. 8, 364 as the balance at bank as on 31
st
 
March, but you find that this does not agree with the balance as per the Bank Pass 
Book. On Scrutiny, you find the following discrepancies. 
1. On 15
th
 March, the payments side of the Cash Book was undercast by Rs. 100. 
2. A cheque for Rs. 131 issued on 25
th
 March, was recorded in the Cash column. 
3. One deposit of Rs. 150 was recorded in the Cash Book as if there is not bank Column therein. 
4. On 18
th
 March, the debit balance of Rs. 1, 526 as on the previous day, was 
brought forward as a credit balance. 
5. Of the total cheques amounting to Rs. 11, 514 drawn in the last week of march, 
cheques aggregating Rs. 7, 815 were encashed in March. 
6. Dividends of Rs. 250 collected by the Bank and subscription of Rs. 100 paid by if, 
were not recorded in the Cash Book. 
7. One outgoing cheque of Rs. 350 was recorded twice in the Cash Book. 
Prepare a Bank Reconciliation Statement as on 31
st
 March. 
Q 4: On 1.7.2012 a Fire Insurance Premium of Rs. 72, 000 was paid on a policy which will 
expire on 30.6.2013. Accounts are closed on 31
st
 March. Pass an adjusting entry and 
show how this will appear in final accounts. 
Q 5: Following are the extracts of a Trial Balance as at 31
st
 March, 2013: 
Particulars Dr. Rs. Cr. Rs. 
Plant and Machinery 
Wages 
50, 000 
  5, 000 
 
A Machine costing Rs. 20, 000 was purchased on 1
st
 July 2012. Wages Rs. 1, 000 for 
its erection have been debited to Wages Account. Provided depreciation on Plant & 
Machinery @ 10% p.a. Show how these items will appear in the final accounts. 
Q 6: Following are the extracts from the Trial Balance as at 31
st
 March, 2013: 
Particulars Dr. Rs. Cr. Rs. 
Salaries 
Debtors 
Bad Debts 
    41, 600 
2, 08, 000 
      2, 000 
 
1. Debtors includes Shyam for dishonoured bill of Rs. 800. Half the amount of 
Shyam’s bill is irrecoverable. 
2. Remuneration of Rs. 2, 000 paid to Mr. B. Barua, a temporary employee, stands 
debited to his personal account. 
3. Create a Provision for Doubtful debts @ 5% on Debtors. 
Show how these items will appear in the final accounts.  
Q 7: Following are the extracts from the Trial Balance of a firm as on 31
st
 March, 2013: 
Name of Account Dr. Rs. Cr. Rs. 
Sundry Debtors 
Provision for Doubtful Debts 
Provisions for Discount on debtors 
Bad Debts 
Discount 
2, 05, 000 
 
 
      3, 000 
      1, 000 
 
10, 000 
  1, 800 
 Additional Information  
1. Additional bad Debts Rs. 4, 000. 
2. Additional Discount allowed to Debtors Rs. 1, 000. 
3. Maintain a Provision for bad debts @ 10% on debtors. 
4. Maintain a provision for discount @ 2% on debtors. 
Pass the necessary Journal entries and show the relevant accounts (including final accounts). 
Page 3


 
PUNEET COLLEGE                                        SCF 74, FF, SEC 10 PKL                                                                    98155 – 00062              
                                                                         SCO 269, TF, SEC 32D CHD                                            www.facebook.com/puneetcollege 
 
 
REVISION TEST NO – 4 (2013 – 14) 
BRS & FINANCIAL STATEMENTS  
 24
th
 DEC’ 13 
TIME – 1 Hr. 30 Min            SET – 1                 MM: 40 
Q 1: Prepare a Bank Reconciliation Statement from the following particulars: 
 On the 31
st
 March, I had an overdraft of Rs. 750 as show by my Pass Book. 
1. I have issued cheque amounting to Rs. 250 of which Rs. 200 worth only seem to 
have been presented for payment. 
2. Cheque amounting to Rs. 100 have been paid in by me on the 30
th
 March, but of 
these only Rs. 75 were credited in the Pass Book. 
3. I also find that a cheque for Rs. 10 which I had debited to Bank account in my 
books has been omitted to be banked. 
4. There is debit in my Pass Book of Rs. 25 of interest. 
5. An entry of Rs. 30 of a payment by a customer directly into the Bank appears in 
the Pass Book. 
6. My Pass Book also shows a credit of Rs. 60 to my account being interest on my 
investments collected directly by my bankers. 
 
Q 2: Prepare a Bank Reconciliation Statement on 31
st
 March, from the following 
particulars: 
1. A’s overdraft as per Pass Book Rs. 12, 000 as at 31
st
 March. 
2. On 30
th
 march, cheques had been issued for Rs. 70, 000 of which cheques worth 
Rs. 3, 000 only had been encashed up to 31
st
 March. 
3. Cheques amounting to Rs. 3,5 00 has been paid into the bank for collection but of 
these only Rs. 500 had been credited in the Pass Book. 
4. The Bank has charged Rs. 500 as interest on overdraft and the intimation of 
which has been receive don 2
nd
 April. 
5. The bank Pass Book shows credit for Rs. 1, 000 representing Rs. 400 paid by 
debtor of A directly into the  Bank and Rs. 600 collected directly by Bank in 
respect of interest on A’s investments. A has no knowledge of these items. 
6. A cheque for Rs. 200 has been debited in bank column of Cash book by A, but it 
was not sent to Bank at all. 
 
PUNEET COLLEGE                                        SCF 74, FF, SEC 10 PKL                                                                    98155 – 00062              
                                                                         SCO 269, TF, SEC 32D CHD                                            www.facebook.com/puneetcollege 
Q 3: The cash book of Mr. Avinash shows Rs. 8, 364 as the balance at bank as on 31
st
 
March, but you find that this does not agree with the balance as per the Bank Pass 
Book. On Scrutiny, you find the following discrepancies. 
1. On 15
th
 March, the payments side of the Cash Book was undercast by Rs. 100. 
2. A cheque for Rs. 131 issued on 25
th
 March, was recorded in the Cash column. 
3. One deposit of Rs. 150 was recorded in the Cash Book as if there is not bank Column therein. 
4. On 18
th
 March, the debit balance of Rs. 1, 526 as on the previous day, was 
brought forward as a credit balance. 
5. Of the total cheques amounting to Rs. 11, 514 drawn in the last week of march, 
cheques aggregating Rs. 7, 815 were encashed in March. 
6. Dividends of Rs. 250 collected by the Bank and subscription of Rs. 100 paid by if, 
were not recorded in the Cash Book. 
7. One outgoing cheque of Rs. 350 was recorded twice in the Cash Book. 
Prepare a Bank Reconciliation Statement as on 31
st
 March. 
Q 4: On 1.7.2012 a Fire Insurance Premium of Rs. 72, 000 was paid on a policy which will 
expire on 30.6.2013. Accounts are closed on 31
st
 March. Pass an adjusting entry and 
show how this will appear in final accounts. 
Q 5: Following are the extracts of a Trial Balance as at 31
st
 March, 2013: 
Particulars Dr. Rs. Cr. Rs. 
Plant and Machinery 
Wages 
50, 000 
  5, 000 
 
A Machine costing Rs. 20, 000 was purchased on 1
st
 July 2012. Wages Rs. 1, 000 for 
its erection have been debited to Wages Account. Provided depreciation on Plant & 
Machinery @ 10% p.a. Show how these items will appear in the final accounts. 
Q 6: Following are the extracts from the Trial Balance as at 31
st
 March, 2013: 
Particulars Dr. Rs. Cr. Rs. 
Salaries 
Debtors 
Bad Debts 
    41, 600 
2, 08, 000 
      2, 000 
 
1. Debtors includes Shyam for dishonoured bill of Rs. 800. Half the amount of 
Shyam’s bill is irrecoverable. 
2. Remuneration of Rs. 2, 000 paid to Mr. B. Barua, a temporary employee, stands 
debited to his personal account. 
3. Create a Provision for Doubtful debts @ 5% on Debtors. 
Show how these items will appear in the final accounts.  
Q 7: Following are the extracts from the Trial Balance of a firm as on 31
st
 March, 2013: 
Name of Account Dr. Rs. Cr. Rs. 
Sundry Debtors 
Provision for Doubtful Debts 
Provisions for Discount on debtors 
Bad Debts 
Discount 
2, 05, 000 
 
 
      3, 000 
      1, 000 
 
10, 000 
  1, 800 
 Additional Information  
1. Additional bad Debts Rs. 4, 000. 
2. Additional Discount allowed to Debtors Rs. 1, 000. 
3. Maintain a Provision for bad debts @ 10% on debtors. 
4. Maintain a provision for discount @ 2% on debtors. 
Pass the necessary Journal entries and show the relevant accounts (including final accounts). 
 
PUNEET COLLEGE                                        SCF 74, FF, SEC 10 PKL                                                                    98155 – 00062              
                                                                         SCO 269, TF, SEC 32D CHD                                            www.facebook.com/puneetcollege 
 
 
REVISION TEST NO – 4 (2013 – 14) 
BRS & FINANCIAL STATEMENTS  
 24
TH
 DEC, 13 
TIME – 1 Hr. 30 Min            SET – 2            MM ?  
 
Q 1: On 31
st
 march, the Bank Pass Book of Naresh & Co. showed an overdraft of Rs. 10, 
700. From the following particulars prepare a Bank Reconciliation Statement: 
1. Cheques issued before 31
st
 March, but presented for payment after that date 
amounted to Rs. 900. 
2. Cheques paid into the bank but not collected and credited until 31
st
 March 
amounted to Rs. 2, 200. 
3. Interest on overdraft amounting to Rs. 1, 200 did not appear in the Cash Book. 
4. Rs. 5, 000 being interest on investment collected by the bank and credited in the 
Pass Book were not shown in the Cash Book. 
5. Bank charges of Rs. 50 were not entered in the Cash Book. 
6. Rs. 800 in respect of a dishonoured cheque were entered in the Pass Book but not in 
the Cash Book. 
 
Q 2: From the following particulars, prepare a Bank Reconciliation Statement as on 31
st
 
March. 
1. Bank Balance as per Cash Book is Rs. 10, 000. 
2. A cheque for Rs. 1, 000 deposited but not recorded in the Cash Book. 
(Note: Bank has collected and credited this cheque). 
3. A cash deposit of Rs. 200 was recorded in the Cash Book as if there is no Bank 
Column therein. 
4. A Cheque issued for Rs. 250 was recorded as Rs. 205 in the Cash Column. 
(Note: Bank has made the payment of this cheque). 
5. The debit balance of Rs. 1, 500 as on the previous day was brought forward as a 
credit balance. 
6. The payment side of the Cash Book (Bank Column) was under cash by Rs. 100. 
7. A cash discount allowed of Rs. 112 was recorded as Rs. 121 in the Bank Column. 
8. A cheque of Rs. 500 received from a debtor was recorded in the Cash Book but not 
deposited in the bank for collection. 
9. One outgoing cheque of Rs. 300 was recorded twice in the Cash Book. 
Page 4


 
PUNEET COLLEGE                                        SCF 74, FF, SEC 10 PKL                                                                    98155 – 00062              
                                                                         SCO 269, TF, SEC 32D CHD                                            www.facebook.com/puneetcollege 
 
 
REVISION TEST NO – 4 (2013 – 14) 
BRS & FINANCIAL STATEMENTS  
 24
th
 DEC’ 13 
TIME – 1 Hr. 30 Min            SET – 1                 MM: 40 
Q 1: Prepare a Bank Reconciliation Statement from the following particulars: 
 On the 31
st
 March, I had an overdraft of Rs. 750 as show by my Pass Book. 
1. I have issued cheque amounting to Rs. 250 of which Rs. 200 worth only seem to 
have been presented for payment. 
2. Cheque amounting to Rs. 100 have been paid in by me on the 30
th
 March, but of 
these only Rs. 75 were credited in the Pass Book. 
3. I also find that a cheque for Rs. 10 which I had debited to Bank account in my 
books has been omitted to be banked. 
4. There is debit in my Pass Book of Rs. 25 of interest. 
5. An entry of Rs. 30 of a payment by a customer directly into the Bank appears in 
the Pass Book. 
6. My Pass Book also shows a credit of Rs. 60 to my account being interest on my 
investments collected directly by my bankers. 
 
Q 2: Prepare a Bank Reconciliation Statement on 31
st
 March, from the following 
particulars: 
1. A’s overdraft as per Pass Book Rs. 12, 000 as at 31
st
 March. 
2. On 30
th
 march, cheques had been issued for Rs. 70, 000 of which cheques worth 
Rs. 3, 000 only had been encashed up to 31
st
 March. 
3. Cheques amounting to Rs. 3,5 00 has been paid into the bank for collection but of 
these only Rs. 500 had been credited in the Pass Book. 
4. The Bank has charged Rs. 500 as interest on overdraft and the intimation of 
which has been receive don 2
nd
 April. 
5. The bank Pass Book shows credit for Rs. 1, 000 representing Rs. 400 paid by 
debtor of A directly into the  Bank and Rs. 600 collected directly by Bank in 
respect of interest on A’s investments. A has no knowledge of these items. 
6. A cheque for Rs. 200 has been debited in bank column of Cash book by A, but it 
was not sent to Bank at all. 
 
PUNEET COLLEGE                                        SCF 74, FF, SEC 10 PKL                                                                    98155 – 00062              
                                                                         SCO 269, TF, SEC 32D CHD                                            www.facebook.com/puneetcollege 
Q 3: The cash book of Mr. Avinash shows Rs. 8, 364 as the balance at bank as on 31
st
 
March, but you find that this does not agree with the balance as per the Bank Pass 
Book. On Scrutiny, you find the following discrepancies. 
1. On 15
th
 March, the payments side of the Cash Book was undercast by Rs. 100. 
2. A cheque for Rs. 131 issued on 25
th
 March, was recorded in the Cash column. 
3. One deposit of Rs. 150 was recorded in the Cash Book as if there is not bank Column therein. 
4. On 18
th
 March, the debit balance of Rs. 1, 526 as on the previous day, was 
brought forward as a credit balance. 
5. Of the total cheques amounting to Rs. 11, 514 drawn in the last week of march, 
cheques aggregating Rs. 7, 815 were encashed in March. 
6. Dividends of Rs. 250 collected by the Bank and subscription of Rs. 100 paid by if, 
were not recorded in the Cash Book. 
7. One outgoing cheque of Rs. 350 was recorded twice in the Cash Book. 
Prepare a Bank Reconciliation Statement as on 31
st
 March. 
Q 4: On 1.7.2012 a Fire Insurance Premium of Rs. 72, 000 was paid on a policy which will 
expire on 30.6.2013. Accounts are closed on 31
st
 March. Pass an adjusting entry and 
show how this will appear in final accounts. 
Q 5: Following are the extracts of a Trial Balance as at 31
st
 March, 2013: 
Particulars Dr. Rs. Cr. Rs. 
Plant and Machinery 
Wages 
50, 000 
  5, 000 
 
A Machine costing Rs. 20, 000 was purchased on 1
st
 July 2012. Wages Rs. 1, 000 for 
its erection have been debited to Wages Account. Provided depreciation on Plant & 
Machinery @ 10% p.a. Show how these items will appear in the final accounts. 
Q 6: Following are the extracts from the Trial Balance as at 31
st
 March, 2013: 
Particulars Dr. Rs. Cr. Rs. 
Salaries 
Debtors 
Bad Debts 
    41, 600 
2, 08, 000 
      2, 000 
 
1. Debtors includes Shyam for dishonoured bill of Rs. 800. Half the amount of 
Shyam’s bill is irrecoverable. 
2. Remuneration of Rs. 2, 000 paid to Mr. B. Barua, a temporary employee, stands 
debited to his personal account. 
3. Create a Provision for Doubtful debts @ 5% on Debtors. 
Show how these items will appear in the final accounts.  
Q 7: Following are the extracts from the Trial Balance of a firm as on 31
st
 March, 2013: 
Name of Account Dr. Rs. Cr. Rs. 
Sundry Debtors 
Provision for Doubtful Debts 
Provisions for Discount on debtors 
Bad Debts 
Discount 
2, 05, 000 
 
 
      3, 000 
      1, 000 
 
10, 000 
  1, 800 
 Additional Information  
1. Additional bad Debts Rs. 4, 000. 
2. Additional Discount allowed to Debtors Rs. 1, 000. 
3. Maintain a Provision for bad debts @ 10% on debtors. 
4. Maintain a provision for discount @ 2% on debtors. 
Pass the necessary Journal entries and show the relevant accounts (including final accounts). 
 
PUNEET COLLEGE                                        SCF 74, FF, SEC 10 PKL                                                                    98155 – 00062              
                                                                         SCO 269, TF, SEC 32D CHD                                            www.facebook.com/puneetcollege 
 
 
REVISION TEST NO – 4 (2013 – 14) 
BRS & FINANCIAL STATEMENTS  
 24
TH
 DEC, 13 
TIME – 1 Hr. 30 Min            SET – 2            MM ?  
 
Q 1: On 31
st
 march, the Bank Pass Book of Naresh & Co. showed an overdraft of Rs. 10, 
700. From the following particulars prepare a Bank Reconciliation Statement: 
1. Cheques issued before 31
st
 March, but presented for payment after that date 
amounted to Rs. 900. 
2. Cheques paid into the bank but not collected and credited until 31
st
 March 
amounted to Rs. 2, 200. 
3. Interest on overdraft amounting to Rs. 1, 200 did not appear in the Cash Book. 
4. Rs. 5, 000 being interest on investment collected by the bank and credited in the 
Pass Book were not shown in the Cash Book. 
5. Bank charges of Rs. 50 were not entered in the Cash Book. 
6. Rs. 800 in respect of a dishonoured cheque were entered in the Pass Book but not in 
the Cash Book. 
 
Q 2: From the following particulars, prepare a Bank Reconciliation Statement as on 31
st
 
March. 
1. Bank Balance as per Cash Book is Rs. 10, 000. 
2. A cheque for Rs. 1, 000 deposited but not recorded in the Cash Book. 
(Note: Bank has collected and credited this cheque). 
3. A cash deposit of Rs. 200 was recorded in the Cash Book as if there is no Bank 
Column therein. 
4. A Cheque issued for Rs. 250 was recorded as Rs. 205 in the Cash Column. 
(Note: Bank has made the payment of this cheque). 
5. The debit balance of Rs. 1, 500 as on the previous day was brought forward as a 
credit balance. 
6. The payment side of the Cash Book (Bank Column) was under cash by Rs. 100. 
7. A cash discount allowed of Rs. 112 was recorded as Rs. 121 in the Bank Column. 
8. A cheque of Rs. 500 received from a debtor was recorded in the Cash Book but not 
deposited in the bank for collection. 
9. One outgoing cheque of Rs. 300 was recorded twice in the Cash Book. 
 
PUNEET COLLEGE                                        SCF 74, FF, SEC 10 PKL                                                                    98155 – 00062              
                                                                         SCO 269, TF, SEC 32D CHD                                            www.facebook.com/puneetcollege 
 
Q 3: From the following particulars, prepare the Bank Reconciliation statement of Shri 
Krishan as on 31
st
 March. 
1. Balance as per Pass Book is Rs. 10, 000. 
2. Bank collected a cheque of Rs. 500 on behalf of Shri Krishan but wrongly credited 
it to Shri Krishan’s A/c (another customer). 
3. Bank recorded a cash deposit of Rs. 1, 589 as Rs. 1, 598. 
4. Withdrawal column of the Pass Book undercast by Rs. 100. 
5. The credit balance of Rs. 1, 500 as on page 5 of the Pass Book was recorded on 
page 6 as the debit balance. 
6. The payment of a cheque of Rs. 350 was recorded twice in the Pass Book. 
7. The Pass Book showed a credit for a cheque for s. 1, 000 deposited by Shri Kishan 
(another customer of the bank). 
Q 4: A fire broke out on 30
th
 march, 2013 in the godown and Stock costing Rs. 1, 00, 000 
was destroyed. The insurance company, admitted a claim of 60% only. Accounting 
year is financial year. Purchases are Rs. 5, 00, 000 Pass an adjusting entry and show 
how these items will appear in final accounts. 
 
Q 5: Goods costing Rs. 2, 000 were distributed as free samples but no entry has been 
made in the books of accounts. Purchases were Rs. 82, 000. Accounting year is 
financial year. Pass an adjusting entry and show how these items will appear in final 
accounts. 
 
Q 6: Following are the extracts from the Trial balance as at 31
st
 March, 2013. 
 
Particulars Dr. Rs. Cr. Rs. 
Sundry Debtors 
Bad Debts 
Discount 
2, 05, 000 
      3, 000 
      1, 800 
 
 Additional Information: 
1. Create a Provision for Doubtful Debts @ 10% on Debtors. 
2. Create a Provision for Discount on Debtors @ 2% on Debtors. 
3. Additional Discount given to the debtors Rs. 5, 000. 
Pass the necessary journal entries and show the relevant accounts (including final 
accounts). 
 
Q 7: Following are the extracts form the Trial Balance as at 31
st
 March, 2013: 
Name of Account Dr. Rs. Cr. Rs. 
Sundry debtors 
Bad debts 
2, 05, 000 
      3, 000 
 
 Additional information: 
1. After preparing the Trial Balance, it is learnt that Mr. X, a debtor has become 
insolvent and nothing could be recovered from him and, therefore, the entire 
amount of Rs. 5, 000 due from his was irrecoverable. 
2. Create 10% Provision for doubtful debts. 
Pass the necessary journal entries and show the relevant accounts (including final 
accounts). 
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