20 Questions | 20 Minutes | 20 Marks
Advanced Practice Mock Test · Effective from 2021 Exam
Choose one answer for each question. You can move between questions using the navigation buttons or question numbers.
Submitting your result to the test record...
NORTH CENTRAL RAILWAY
APPENDIX-IIA (IREM) EXAM, 2021
SUBJECT: ELEMENTARY BOOK KEEPING
Maximum Marks: 100
Time: 3 Hours
Note:
Questions may be answered in Hindi or English.
Question 1 is compulsory. Attempt any five of the remaining questions. Total six questions are to be attempted.
QUESTION 1 — 25 Marks
Prepare Trading and Profit & Loss Account and Balance Sheet for the year ended on 31st March 2021 from the following Trial Balance of ABC Ltd. as at 31st March 2021 and additional information provided below:
| Particulars | Debit (₹) | Credit (₹) |
|---|---|---|
| ABC Ltd.'s Capital Account | — | 2,50,000 |
| ABC Ltd.'s Drawings Account | 28,000 | — |
| Lease of Warehouse (10 Years to run from 1st April 2020) | 50,000 | — |
| Stock, 1st April 2020 | 2,50,000 | — |
| Bills Receivable | 40,000 | — |
| Sales | — | 14,00,000 |
| XYZ Ltd.'s Loan Account | 30,000 | — |
| Purchases | 7,50,000 | — |
| Creditors | — | 4,00,000 |
| Salaries and Wages | 60,000 | — |
| Insurance | 4,000 | — |
| Debtors | 6,50,000 | — |
| Carriage Inwards | 17,000 | — |
| Carriage Outwards | 29,000 | — |
| Commission | 15,000 | — |
| Interest | 18,000 | — |
| Stationery & Printing | 5,000 | — |
| Bills Payable | — | 63,000 |
| Returns Inwards | 26,000 | — |
| Returns Outwards | — | 10,000 |
| Trade Expenses | 6,000 | — |
| Office Fixtures | 20,000 | — |
| Cash in Office | 5,000 | — |
| Cash at Bank | 1,00,000 | — |
| Rent and Taxes | 20,000 | — |
| Total | 21,23,000 | 21,23,000 |
Additional Information:
The stock on 31st March 2021 was ₹3,00,000.
₹4,000 for rent and ₹6,000 for salaries were outstanding.
₹1,000 was paid in advance in respect of insurance.
The lease is to be written off by 10 percent.
Office fixtures are to be depreciated by 5 percent.
QUESTION 2 — 15 Marks
Write short notes on any three of the following:
(i) Objectives of Book Keeping
(ii) Bill of Exchange
(iii) Reducing Balance Method of Depreciation
(iv) Analytical Petty Cash Book
QUESTION 3
(a) Give four examples each of Personal Accounts, Real Accounts and Nominal Accounts.
(6 Marks)
(b) Anand is a trader dealing in textiles. For the following transactions, pass journal entries for the month of January 2021.
(1.5 × 6 = 9 Marks)
Purchased goods from X and Co. on credit — ₹30,000
Bought a building from Y and Co. on credit — ₹95,000
Cash withdrawn from bank for office use — ₹5,000
Towels given to charities — ₹3,000
Sarees distributed as free samples — ₹3,000
Goods (table clothes) used for office use — ₹200
QUESTION 4 — 15 Marks
XYZ Ltd. has a difference in the balance as per Cash Book and Bank Statement as on 31st March 2021. You are advised to prepare a Bank Reconciliation Statement as on that date with the following information:
Balance as per Bank Statement as on 31st March 2021 is ₹40,000. Balance as per Cash Book is ₹14,000.
Cheques of ₹10,000 and ₹5,000 issued on 30th March 2021, but not yet cleared.
An insurance premium paid by bank ₹2,000. It is not yet recorded in Cash Book.
An outgoing cheque of ₹20,000 recorded twice in the Cash Book. It is properly recorded in the bank statement.
Payment of a cheque of ₹4,000 recorded twice in Pass Book.
Dividends received ₹5,000 recorded only in the bank statement and not in the Cash Book.
Cheque of ₹7,000 deposited on 29th March 2021, but it is not yet collected.
Bank charges of ₹1,000 debited only in Bank Pass Book.
QUESTION 5 — 15 Marks
Differentiate between any three of the following:
(i) Cash Discount and Trade Discount
(ii) Reserve Fund and Reserve Account
(iii) Fixed Assets and Floating Assets
(iv) Opening Entries and Closing Entries
QUESTION 6
(a) What do you understand by Prepaid Expenses? Explain with an example.
(5 Marks)
(b) Explain what you understand by Bad Debts and Doubtful Debts. What entries would you pass to write off Bad Debts?
(7 + 3 = 10 Marks)
QUESTION 7
(a) Mention the different ways in which a bill can be endorsed, and state clearly the effect of each endorsement.
(11 Marks)
(b) What do you understand by a Promissory Note?
(4 Marks)
QUESTION 8 — 15 Marks
What is a Trial Balance? Mention the different classes of errors, the presence of which would prevent a Trial Balance from agreeing. What type of errors does a Trial Balance fail to disclose?
(4 + 5 + 6 = 15 Marks)
QUESTION 9
(a) What purpose does a Balance Sheet serve?
(5 Marks)
(b) Explain Deferred Revenue Expenditure.
(5 Marks)
(c) What do you understand by Noting and Protesting in relation to dishonouring of bills?
(5 Marks)
A. Excess stock
B. Physical stock less than book balance
C. Purchase loss
D. Budget deficit
A. Physical stock less than ledger
B. Physical stock more than ledger
C. Loss
D. Expense
A. Asset
B. Expense
C. Liability
D. Income
A. Expense
B. Liability
C. Gain
D. Asset
A. Issue note
B. Journal voucher
C. Receipt note
D. Cash book
A. Debit entry
B. Credit entry
C. Adjustment entry
D. Ignore
A. Normal loss
B. Abnormal loss
C. Income
D. Asset
A. Normal loss
B. Abnormal loss
C. Gain
D. Liability
A. Store keeper
B. Accounts
C. Audit
D. Railway Board
A. Recording error
B. Excess receipt
C. Measurement error
D. All
A. 10
B. 15
C. 20
D. 25
A. 20
B. 25
C. 30
D. 35
A. Approved by authority
B. Ignored
C. Audit disallows
D. None
A. Market price
B. Ledger rate
C. Replacement cost
D. Scrap value
A. Cost
B. Profit
C. Financial statements
D. All
A. ₹400
B. ₹500
C. ₹600
D. ₹700
A. ₹500
B. ₹1000
C. ₹1500
D. ₹2000
A. Normal
B. Abnormal
C. Income
D. Asset
A. Income
B. Expense
C. Liability
D. Loss
A. Approval
B. Investigation
C. Documentation
D. All
A. 2%
B. 5%
C. 10%
D. 15%
A. Debit entry
B. Credit entry
C. Ignore
D. None
A. Debit
B. Credit
C. Ignore
D. None
A. Normal
B. Abnormal
C. Income
D. Liability
A. Normal
B. Abnormal
C. Income
D. Asset
A. ₹200
B. ₹300
C. ₹400
D. ₹500
A. Real surplus
B. Accounting error
C. Income
D. Liability
A. Adjustment
B. Write-off
C. Recovery
D. All
A. Adjustment
B. Recording
C. Investigation
D. All
A. 2%
B. 4%
C. 5%
D. 10%
A. Approval
B. Investigation
C. Recovery
D. All
A. Income
B. Asset
C. Liability
D. Expense
A. Asset
B. Liability
C. Income
D. Capital
A. ₹50
B. ₹75
C. ₹100
D. ₹125
A. Asset
B. Liability
C. Expense
D. Loss
A. Normal
B. Abnormal
C. Income
D. Asset
A. Store keeper
B. Accounts
C. Higher authority
D. Vendor
A. Ignored
B. Recorded
C. Destroyed
D. Sold
A. 2%
B. 5%
C. 10%
D. 15%
A. Profit
B. Cost
C. Inventory
D. All
A. Error
B. Gain
C. Both
D. None
A. Loss
B. Profit
C. Asset
D. Liability
A. Market price
B. Ledger rate
C. Replacement cost
D. Scrap value
A. ₹100
B. ₹200
C. ₹300
D. ₹400
A. Expense
B. Income
C. Liability
D. Asset
A. Normal
B. Abnormal
C. Income
D. Asset
A. Profit
B. Cost
C. Inventory
D. All
A. Ignored
B. Investigated
C. Hidden
D. Sold
A. Market price
B. Ledger rate
C. Replacement cost
D. Scrap
A. Inventory control
B. Financial accounting
C. Costing
D. All
1-B, 2-B, 3-B, 4-C, 5-B
6-A, 7-B, 8-A, 9-A, 10-D
11-C, 12-C, 13-A, 14-B, 15-D
16-B, 17-B, 18-B, 19-A, 20-D
21-B, 22-A, 23-B, 24-A, 25-B
26-C, 27-B, 28-D, 29-D, 30-B
31-D, 32-A, 33-A, 34-C, 35-A
36-A, 37-C, 38-B, 39-B, 40-D
41-C, 42-A, 43-B, 44-B, 45-B
46-B, 47-D, 48-B, 49-B, 50-D
A. Checking purchase records
B. Counting actual stock available
C. Verifying invoices
D. Checking budget
A. Ensure correct pricing
B. Confirm physical existence of stores
C. Audit accounts
D. Allocate funds
A. Store keeper alone
B. Independent staff
C. Accounts clerk
D. Vendor
A. Financial value
B. Physical quantity and condition
C. Audit report
D. Budget
A. Counting
B. Weighing
C. Measurement
D. All
A. Internal control
B. Fraud detection
C. Inventory accuracy
D. All
A. Counting
B. Estimation
C. Measurement
D. Ignoring
A. Announced
B. Surprise-based
C. Ignored
D. Random
A. Counting
B. Weighing
C. Estimation
D. Ignoring
A. Accounts
B. Store keeper
C. Auditor
D. Railway Board
A. Quantity
B. Quality
C. Condition
D. All
A. Good stock
B. Scrap
C. Surplus
D. Normal
A. Daily
B. Periodically
C. Once
D. Never
A. 10
B. 15
C. 20
D. 25
A. Theft
B. Damage
C. Obsolescence
D. All
A. Counting
B. Measuring volume
C. Guessing
D. Ignoring
A. Quantity
B. Condition
C. Difference
D. All
A. Error
B. Surplus
C. Both
D. None
A. Independent
B. Biased
C. Ignored
D. Optional
A. Value
B. Nature
C. Risk
D. All
A. 2%
B. 5%
C. 10%
D. 15%
A. Accurate records
B. Proper control
C. Accountability
D. All
A. Counting packages
B. Opening all
C. Ignoring
D. Guessing
A. Easy
B. Difficult
C. Ignored
D. Optional
A. Internal control
B. External audit
C. Budget
D. Payroll
A. Ignore
B. Record and report
C. Sell immediately
D. Destroy
A. Store keeper
B. Accounts
C. Higher authority
D. Vendor
A. 10
B. 15
C. 20
D. 25
A. No fraud
B. No error
C. Reduction in risk
D. Profit
A. Rare
B. Frequent
C. Never
D. Once
A. Ledger
B. Bin card
C. Verification sheet
D. Cash book
A. Surplus
B. Shortage
C. Asset
D. Liability
A. Item
B. Quantity
C. Condition
D. All
A. ₹1000
B. ₹2000
C. ₹3000
D. ₹4000
A. Audit
B. Financial statements
C. Stock valuation
D. All
A. Responsible officer
B. Auditor
C. Store clerk
D. Vendor
A. Error
B. Fraud
C. Misstatement
D. All
A. Loss
B. Fraud
C. Errors
D. All
A. ₹400
B. ₹500
C. ₹600
D. ₹700
A. Easy
B. Difficult
C. Ignored
D. Optional
A. Cost control
B. Inventory control
C. Audit
D. All
A. True stock
B. True cost
C. True records
D. All
A. Regular
B. Irregular
C. Optional
D. Ignored
A. 2%
B. 5%
C. 10%
D. 15%
A. Financial reporting
B. Audit
C. Control
D. All
A. Excess
B. Shortage
C. Damage
D. All
A. Oral
B. Written
C. Ignored
D. Optional
A. Accountability
B. Transparency
C. Accuracy
D. All
A. All stores
B. Selected stores
C. High-value only
D. None
A. Inventory control
B. Costing
C. Budget
D. Audit
1-B, 2-B, 3-B, 4-B, 5-D
6-D, 7-C, 8-B, 9-B, 10-B
11-D, 12-B, 13-B, 14-C, 15-D
16-B, 17-D, 18-C, 19-A, 20-D
21-B, 22-D, 23-A, 24-B, 25-A
26-B, 27-C, 28-C, 29-C, 30-B
31-C, 32-B, 33-D, 34-B, 35-D
36-A, 37-D, 38-D, 39-B, 40-A
41-D, 42-D, 43-A, 44-B, 45-D
46-D, 47-B, 48-D, 49-A, 50-A
A. Check purchase efficiency
B. Verify physical existence of stores
C. Fix selling price
D. Allocate budget
A. Store Keeper
B. Accounts staff
C. Independent verification staff
D. Audit only
A. Value of items
B. Nature of items
C. Risk involved
D. All
A. Once in 5 years
B. Annually
C. Monthly
D. Never
A. Daily
B. Annually
C. Once in 2–3 years
D. Weekly
A. Purchase vs sales
B. Ledger vs Bin Card
C. Physical stock vs ledger balance
D. Budget vs expenditure
A. Adjustment
B. Variation
C. Difference
D. All
A. Liability
B. Income
C. Surplus
D. Expense
A. Income
B. Loss
C. Asset
D. Liability
A. Store Keeper
B. Verifying officer
C. Auditor
D. Accounts clerk
A. Accuracy
B. Accountability
C. Control
D. All
A. Quantity check
B. Condition check
C. Identification
D. All
A. 5
B. 10
C. 15
D. 20
A. 10
B. 15
C. 20
D. 25
A. Theft
B. Loss
C. Mismanagement
D. All
A. Store staff
B. Accounts
C. Audit
D. Budget
A. Financial control
B. Inventory control
C. Budget control
D. None
A. 2%
B. 4%
C. 5%
D. 10%
A. Ignored
B. Adjusted
C. Written off
D. Reported
A. Debit
B. Credit
C. Adjustment entry
D. Ignore
A. Before audit
B. During audit
C. Periodically
D. Once
A. Accounts
B. Store keeper
C. Audit
D. Railway Board
A. Quantity
B. Quality
C. Condition
D. All
A. Normal loss
B. Abnormal loss
C. Asset
D. Income
A. Normal loss
B. Abnormal loss
C. Income
D. Liability
A. Rarely
B. Frequently
C. Never
D. Once
A. Accounts
B. Audit
C. Higher authority
D. All
A. 2%
B. 5%
C. 10%
D. 15%
A. Error
B. Surplus
C. Both
D. None
A. Correct records
B. Physical existence
C. Proper control
D. All
A. Fraud
B. Error
C. Loss
D. All
A. Risk
B. Value
C. Sensitivity
D. All
A. Investigation
B. Adjustment
C. Approval
D. All
A. ₹500
B. ₹1000
C. ₹1500
D. ₹2000
A. Bin card
B. Ledger
C. Verification sheet
D. Cash book
A. Easy
B. Difficult
C. Ignored
D. Rare
A. Biased
B. Independent
C. Optional
D. Random
A. Ignored
B. Adjusted
C. Reported
D. Both B & C
A. ₹1000
B. ₹2000
C. ₹3000
D. ₹4000
A. Debit
B. Credit
C. Adjustment
D. Ignore
A. Internal control
B. External audit
C. Costing
D. Budget
A. Obsolete stock
B. Damaged stock
C. Excess stock
D. All
A. Quantity
B. Value
C. Difference
D. All
A. ₹100
B. ₹200
C. ₹300
D. ₹400
A. Audit
B. Records
C. Control
D. All
A. Store keeper
B. Accounts
C. Audit
D. None
A. Fraud
B. Errors
C. Loss
D. All
A. Accuracy
B. Efficiency
C. Control
D. All
A. Financial statements
B. Costing
C. Audit
D. All
A. Inventory control
B. Financial control
C. Budget
D. Audit
1-B, 2-C, 3-D, 4-B, 5-C
6-C, 7-D, 8-C, 9-B, 10-B
11-D, 12-D, 13-B, 14-C, 15-D
16-A, 17-B, 18-B, 19-C, 20-C
21-C, 22-B, 23-D, 24-B, 25-A
26-B, 27-D, 28-B, 29-C, 30-D
31-D, 32-D, 33-D, 34-A, 35-C
36-B, 37-B, 38-D, 39-B, 40-C
41-A, 42-D, 43-D, 44-B, 45-D
46-A, 47-D, 48-D, 49-D, 50-A