AFB questions

AFB ✅
Which of the following may not be part of the reconciliation process.

a) Interest on overdraft
b) Dishonour of cheque
c) Cash drawn from bank*
d) Cheque deposited but not collected ✅

Which of the following is part of reconciliation.

a) Cash paid by customer to the trader
b) Cheque issued, presented, and on the debit side in the passbook and cashbook.
c) Bank charges debited.
d) b) & c)*



Reconciliation of overcasting on receipts side of cash book

a) Increases the balance in the cash book.
b) Increases the balance in the passbook.
c) Decreases the balance in the cash book*
d) Decreases the balance in the passbook.



Which of the following is true
a) Bank Reconciliation Statement(BR
C) is an account.
b) BRC is prepared by the bank.
c) BRC shows causes of disagreement between cash book & passbook.*
d) BRC shows only excess of cash book over passbook.



If x is a credit balance in cash book carried forward on the debit side, then reconciliation is
a) Casting x on the debit side of cash book.
b) Casting 2x on the credit side of cash book.*
c) Casting 2x on debit side of cash book.
d) Casting x on credit side of cash book.



If a trader enjoys an overdraft facility,then
a) His passbook will show debit balance.
b) His cash book will show credit balance .
c) Both
a) &
b).*
d) Neither a) nor b).



Credit balance in a passbook indicates
a) excess of deposits over withdrawals.
b) excess of withdrawals over deposits.
c) debit balance in cash book.
d) b) & c).*




At any point in time, cash book & passbook balances will not be same.
a) True.
b) False.
c) Maybe.*



A trader has a strict overdraft limit of 10,000/-, overdraft balance of 9,500/-; issues 2 cheques of 500/- each, which are presented, then
a) His cash book will show higher overdraft balance than passbook.*
b) His cash book will show lesser overdraft balance than passbook.
c) His cash book will show same balance as passbook.
d) Neither a) nor b) nor c).



Direct deposit by a customer in the bank with no overdraft facility
a) Shows a higher passbook balance than cash book.*
b) Shows a lesser passbook balance than cash book.
c) Shows no difference.
d) None of the above.



Credit sale of X to Suresh is posted to his credit , then rectification is
a) Credit Suresh to the extent of 2X.
b) Credit Suresh to the extent of X.
c) Debit Suresh to the extent of 2X.*
d) Debit Suresh to the extent of X.



Freight expenses for carrying Machinery is carried to Travel a/c, then rectification in trial balance is
a) Debit machinery a/c and credit travel a/c.*
b) Credit machinery a/c and debit travel a/c
c) Credit profit and loss account and debit travel a/c.
d) Debit profit and loss a/c( P&L a/
c) and credit travel a/c.



Goods worth X sold to Vijay was entered in purchase account;The rectification is
a) Credit purchases and credit sales to the extent of X each & debit Vijay.*
b) Debit purchases and debit sales to the extent of X each & credit Vijay.
c) Debit sales to the extent of 2X.
d) Credit purchases to the extent of 2X.



Machinery worth (WDV) 1000/- sold for 1200/- is entered in sales register. The rectification is

a) Credit sales 1200/-, debit machinery 1000/- and debit P&L a/c 200/-.
b) Debit sales 1200/- , credit machinery 1000/- and credit P&L a/c 200/-.*
c) Credit machinery 1200/-, debit sales 1000/- and debit P&L a/c 200/-.
d) Debit machinery 1200/-, credit sales 1000/- and credit P&L a/c 200/-.



Sales return of amount X from Vijay was wrongly entered in purchase book. The rectification is

a) Debit sales to the extent of 2X.
b) Credit purchases to the extent of 2X.
c) Credit Vijay 2X debit sales and purchases to the extent X each.
d) Debit sales return and credit purchases.*



Which of the following will not affect Trial Balance
a) Goods sold on credit not recorded in books.*
b) Overstating of sales register.
c) Rent account credited instead of debit.
d) Salary debited to the extent ½ the amount.



Suspense a/c is not used in which of the following cases.

a) before trial balance.*
b) after trial balance.
c) before final accounts.
d) none of the above.



Which of the following is true

a) Trial balance ensures arithmetical accuracy.
b) Trial balance errors are not located then the difference is sent to suspense a/c.
c) Trial balance is base for final accounts.
d) All of the above.*



Statement showing debit and credit balances of ledger accounts is

a) Gross trial balance
b) Net trial balance
c) Trial balance*
d) None of the above



Which of the following are true

a) Nominal accounts always have credit balances.
b) Real accounts always have debit balances.*
c) Debit balance in ledger account is credit balance in trial balance.
d) P&L a/c appears in trial balance.

 

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