Podcast
Questions and Answers
What is the term for the form filled for depositing cash or cheque into a bank?
What is the term for the form filled for depositing cash or cheque into a bank?
- Deposit Slip (correct)
- Bank Transfer Form
- Transaction Record
- Withdrawal Slip
What is the term for errors arising when capital expenditure is confused with revenue expenditure?
What is the term for errors arising when capital expenditure is confused with revenue expenditure?
- Capitalization Error (correct)
- Financial Misreport
- Categorial Error
- Budgeting Mistake
What does IFSC stand for in the context of electronic funds transfer in India?
What does IFSC stand for in the context of electronic funds transfer in India?
- Indian Financial System Code (correct)
- International Fund Service Code
- Indian Financial Security Code
- Indian Funds Settlement Code
What is the term for the excess of bank deposits over withdrawals in a current account?
What is the term for the excess of bank deposits over withdrawals in a current account?
What term describes errors that are not revealed by the Trial Balance?
What term describes errors that are not revealed by the Trial Balance?
What is used to determine the correct bank balance when discrepancies are identified between Cash Book and Pass Book?
What is used to determine the correct bank balance when discrepancies are identified between Cash Book and Pass Book?
When repairs for machinery were incorrectly debited to the repairs account instead of machinery, what is the correct rectification entry?
When repairs for machinery were incorrectly debited to the repairs account instead of machinery, what is the correct rectification entry?
If the Cash Book shows a bank balance but the Pass Book shows a different figure, which document is used to explain the discrepancies?
If the Cash Book shows a bank balance but the Pass Book shows a different figure, which document is used to explain the discrepancies?
What happens if a cheque is issued but not presented by the supplier by the end of the financial year?
What happens if a cheque is issued but not presented by the supplier by the end of the financial year?
What type of cash book would you use to record both cash and bank transactions?
What type of cash book would you use to record both cash and bank transactions?
Flashcards
Deposit Slip
Deposit Slip
A document used to deposit cash or checks into a bank account.
Capitalization Error
Capitalization Error
Errors that occur when expenses related to fixed assets (capital expenditure) are mistakenly recorded as operating expenses (revenue expenditure), or vice versa.
IFSC code
IFSC code
A unique alphanumeric code used in India for electronic fund transfers, identifying the specific bank branch.
Bank Overdraft
Bank Overdraft
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Concealed Errors
Concealed Errors
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Bank Reconciliation Statement
Bank Reconciliation Statement
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Pass Rectification Entry
Pass Rectification Entry
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Double Column Cash Book
Double Column Cash Book
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Trade Discount
Trade Discount
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Cash Discount
Cash Discount
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Study Notes
Q1 B) Substituting Phrases
- Deposit Slip: Form for depositing cash/cheques into a bank
- Error of Classification: Capital expenditure treated as revenue, or vice-versa.
- MICR Code: Alphanumeric code for electronic fund transfers in India
- Net Banking Surplus: Excess of deposits over withdrawals by account holders.
- Concealed Error: Errors not shown by the Trial Balance
- Bank Balance Discrepancy: Difference between Cash Book and Pass Book balances
Q2 Attempt Any Six Questions
- Rectification Entry 1: Cash paid to Bunty (Rs. 7,500) was incorrectly debited to Bubbly's account (Rs. 7,000). A correction entry is needed.
- Rectification Entry 2: Repairs (Rs. 1,000) for second-hand machinery were wrongly recorded in repairs account. A correction is required
- Rectification Entry 3: Sales Book errors of Rs 2,000. Requires adjustment.
- Bank Reconciliation (Jan 31, 2019): Debit Balance in the cash book is Rs 62,700. A cheque of Rs 5,700 from Vinod was dishonoured on the 27th, but advice was only received on the 4th. Reconciliation statement needed to resolve any discrepancies.
- Bank Reconciliation (March 31, 2018): Mr. Smart's passbook showed a credit balance of Rs 17,000. Rs 8,500 in cash from savings is in the current account. Reconciliation statement needed.
- Bank Reconciliation (March 31, 2019): Mr. A's cash book shows a balance of Rs 2,39,510, but the passbook shows a different balance. Discrepancies include an outstanding cheque for Rs 15,000 to a supplier, and a direct deposit of Rs 45,000 from a debtor that wasn't recorded in the cash book. Statement required.
- Cash Book (October 2019): Cash in hand was Rs 1,25,650 and bank balance was Rs 1,51,300. Cash purchases of Rs 60,000, 10% T.D., 5% C.D., half in cash, remaining by cheque. A laptop was purchased for Rs 90,000 from HighTech traders.
- Cash Book (November 2019): Cash in hand was Rs 1,00,000 and bank balance was Rs 50,000. Goods sold for Rs 90,000; cash, 20% T.D. and 10% C.D. On the 30th, cash in excess of Rs 60,000 was deposited.
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Description
Test your knowledge of key accounting concepts such as deposit slips, classification errors, and bank reconciliations. The quiz also includes practical rectification entries that require correction based on provided scenarios. Challenge yourself with key terms and practical applications!
