Hall Ticket Number

15 5 20

Name of the Examiner

Name of the Student __________________________________________

HIDAYAH DEGREE COLLEGE

(Affiliated to Osmania University)
Opp. Choti Masjid, Muradnagar, Mehdipatnam, Hyderabad – 28
Group – B.Com / B.Sc / BBA
Semester-I 2nd Internal Assessment Test
Max Marks: 15M Max Time: 30Mins
Section – I Multiple Choice Questions
01. Bank reconciliation statement is prepared to know
[A] Causes for difference [B] The financial position of the
between cashbook and business
passbook balances [ ]
[C] Profit or Loss made by the [D] None of the above
business

02. Bank reconciliation statement is prepared by

[A] Account holder [B] Bank
[ ]
[C] Income tax officer [D] None of the above

03. While preparing bank reconciliation if starting point is balance as per cashbook
direct deposit by customer are
[A] Added [B] Deducted
[ ]
[C] Not required to be adjusted [D] None of the above

04. If an amount is written on the wrong side of an account it is

[A] Error of omission [B] Error of Commission
[ ]
[C] Error of principle [D] Not an error

05. Goods taken by the proprietor for personal use should be debited to
[A] Purchase account [B] Drawing account
[ ]
[C] General expenses account [D] Charity account
06. Goods worth Rs.2000 given as charity should be credited to
[A] Charity account [B] Sales account
[ ]
[C] Purchases account [D] General expenses account

07. Income tax paid should be debited to

[A] Income tax account [B] Drawings
[ ]
[C] Miscellaneous account [D] Charity

08. Income from personal investments of the proprietor should be added to

[A] Investments account [B] Interest on investments
[ ]
[C] Capital [D] Miscellaneous income

09. Under straight line method of providing depreciation, depreciation every year
[A] Increases [B] Decreases
[ ]
[C] Will be constant every year [D] None of the above

10. Under diminishing balance method of providing depreciation, depreciation every

year
[A] Increases [B] Decreases
[ ]
[C] Will be constant every year [D] None of the above

Section – II Fill in the Blanks

01 If the deposits are more than withdrawal it is ‐--‐‐--------------------bank balance.

A copy of the customer’s bank account maintained by the bank in its books is called--‐--
02
-----------------------
03 If withdrawal are more than deposits then it is called--------------------balance
Statement prepared for reconciling the cash book balance and passbook balance is
04
called-----------------------‐.
If all entries are made in cash book and passbook then the two balance will be-------------
05
-----------------.
 Bank charges, interest on investments, insurance premium paid by Bank are --------------
06
--------in passbook.
Salary paid to Deepak has been debited to his personal account.It is-----‐-------------------
07
---.
08 Wages Rs.1000 paid for erecting a machine should be debited to----------------
A truck is purchased for Rs.1,00,000.The life of truck is 10years and residual value is
09
Rs.10,000.The annual amount of depreciation according to SLM is----------------.
On 1st June, 2010 a machine was purchased for Rs,24,000.On 30th June, 2011 the
10 machine was sold Rs.16,000.The company writes off depreciation on 10% on Original
cost on 31st March every year. The loss on sale of machine is –-------‐--.
Section III – Short Answer Question

01 Give three reasons for difference in cashbook and passbook balances.

02 Explain the Error of principle.

03 What Errors are disclosed by Trial balance?

04 What is Suspense Account?

05 Explain Depletion, Amortization and Obsolescence.