CODE:CF-1198 BATCH: CA FOUNDATION MARKS:100

CA FOUNDATION
Principles and Practice of Accounting
Syllabus:FULL
Q-1 IS COMPULSORY.ANS ANY FOUR FROM THE REST
Q-1.(a)

(6*2=12 Marks)
Q-1.(b)

(4 Marks)
Q-1.(c)

(4 Marks)
Q-2.(a)

(10 Marks)
Q-2.(b)

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Q-2.(c)
(i)

OR

(ii)

(5 Marks)
Q-3.(a)

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 (12 Marks)
Q-3(b)

(8 Marks)

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Q-4.(a)

(10 Marks)
Q-4.(b)

(10 Marks)
Q-5.(a)

(8 Marks)
Q-5.(b)On 30th September, 2019, the bank account of Neel, according to the bank column of the Cash-
Book, was overdrawn to the extent of ‘ 8,124. On the same date the bank statement showed a debit
balance of ‘ 41,516 in favour of Neel. An examination of the Cash Book and Bank Statement reveals
the following:
1. A cheque for ‘ 26,28,000 deposited on 29th September, 2019 was credited by the bank only on 3rd
October, 2019
2. A payment by cheque for ‘ 32,000 has been entered twice in the Cash Book.
3. On 29th September, 2019, the bank credited an amount of ‘ 2,34,800 received from a customer of
Neel, but the advice was not received by Neel until 1st October, 2019.
4. Bank charges amounting to ‘ 1,160 had not been entered in the Cash Book.
5. On 6th September, 2019, the bank credited ‘ 40,000 to Neel in error.
6. A bill of exchange for ‘ 2,80,000 was discounted by Neel with his bank. This bill was dishonoured on
28th September, 2019 but no entry had been made in the books of Neel.
7. Cheques issued upto 30th September, 2019 but not presented for payment upto that date totalled ‘
26,52,000.
You are required:
(a) to show the appropriate rectifications required in the Cash Book of Neel, to= arrive at the correct
balance on 30th September, 2019 and
(b) to prepare a bank reconciliation statement as on that date.
(6 Marks)
Q-5.(c) Stock taking of XYZ Stores for the year ended 31st March, 2019 was completed by 10th April,
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 2019, the valuation of which showed a stock figure of ‘ 1,67,500 at cost as on the completion date.
After the end of the accounting year and till the date of completion of stock taking, sales for the
next year were made for ‘ 6,875, profit margin being 33.33 percent on cost. Purchases for the next
year included in the stock amounted to ‘ 9,000 at cost less trade discount 10 percent. During this
period, goods were added to stock of the mark-up price of ‘ 300 in respect of sales returns. After
stock taking it was found that there were certain very old slow moving items costing ‘ 1,125 which
should be taken at ‘ 525 to ensure disposal to an interested customer. Due to heavy floods, certain
goods costing ‘ 1,550 were received from the supplier beyond the delivery date of customer. As a
result, the customer refused to take delivery and net realizable value of the goods was estimated to
be ‘ 1,250 on 31st March, 2019.
(6 Marks)

Q-6.(a)

(10 Marks)
Q-6.(b)
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-0-0-0-0-0-0-0-0-

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 ANSWER SHEET
CODE:CF-1198 BATCH: CA FOUNDATION MARKS:100
CA FOUNDATION
Principles and Practice of Accounting
Syllabus:FULL

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solution1(c)

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 OR

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 (a)

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Solution 3(b)

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A-5.(b)
(i) Cash Book (Bank Column)

(ii) Bank Reconciliation Statement as on 30th September, 2019

Note: Bank has credited Neel by 40,000 in error on 6th September, 2019. If this mistake is rectified
in the bank statement, then this will not be deducted in the above statement along with ‘ 26,52,000
resulting in debit balance of ‘ 1,516 as per pass-book.
A-5.(c) Statement showing the valuation of stock as on 31st March, 2019

Note: Profit margin of 33.33 percent on cost means 25 percent on sale price.

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 Solution 6(b)

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 -0-0-0-0-0-0-0-

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