Question Papers of of Appendix2 exam

SCR Appendix2 Exam Question Papers

SCR Book Keeping 17.02.2021 

GRP - General Rules & Procedures 18.02.2021

General Expenditure 19.02.2021

NCR Appendix2 Exam Question papers of GRP, Book Keeping and Expenditure

For Key of above exam, Check the below 

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Book keeping adjustments - Comprehensive coverage on the topic of Final Accounts - by Shri Uday Kiran Bora, SSO(A)/SCR

 

Comprehensive coverage on the topic of Final Accounts    

by  Shri Uday Kiran Bora, SSO(A)/SCR, Mobile: 9242323381                                               

Click for Book keeping Adjustments

 

Short questions on Depreciation

2016 Book Keeping (5 x 2 Marks)

Short questions on Depreciation

1. Why Depreciation is not charged on Land?

Ans: For calculating depreciation, the life of the asset is required. Since Land is assumed have an unlimited useful life, there is no question of Depreciation on the Land.

The other assets which are not required to depreciate are:

A.      Collectibles like Art, Coins or Memorabilia

B.      Investments like Stocks or Bonds

C.      Any asset put into use for less than one year.

2. Is Depreciation is the result of fluctuations in the value of Assets?

Ans: No. Fluctuations in the value of Asset is concerned with the Market value of Assets, where as Depreciation is concerned with the Historical cost (i.e., cost of acquiring Fixed Asset)

 

3. Should be Depreciation be provided even if there is loss in any financial year?

Ans:  Yes. Depreciation is charge against Profit, not an appropriation of the Profit. Depreciation should be provided compulsorily irrespective of the fact, whether the company is in profit or loss.

4. Should Depreciation be provided on a fixed asset of which the market value is higher than the book value?

Ans:  Yes.  Depreciation should be provided whether the Assets have higher market value or not.

5.  Should Depreciation be charged on a machine even if it has not been used in a financial year?

Ans:  Yes.  Depreciation has nothing to do with whether the asset in use or not. It related to the value of an asset, but not whether used or not.

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Differences between Journal and Ledger

2016 Appendix3 exam – Book keeping paper-5 Marks

Differences between

	Journal	Ledger
1.Definition	The Book where all transactions are recorded	The Ledger, where all the journal entries are classified account wise and posted.
2. Nature	Subsidiary Book	Principal Book
3. Another name	Book of Original Entry and thus precedes the Ledger.	Book of Secondary Entry and prepared after the Journal
4. Recording	Chronological	Account  wise
5. Process	Journalizing	Posting
6. Narration	Required	Not required
Balancing	Not required	Required
7. Base for	It is the base for preparation of Ledger	It is the base for preparation of Trial Balance, then Final Accounts

Differences between Cash accounting and Accrual Accounting

Differences between

Item	Cash Accounting	Accrual Accounting
1. Basis	Cash is the basis for recognition of Income or expense. That means actual cash received or paid is the basis.	Revenue earned for income and expense incurred is the basis.  That means Cash received or paid is immaterial
2. Nature	Simple	Complex
3. Matching concept	No.  Example : Advance Rs. one Lakh received in 2018 December, for which service is not delivered in FY 2018-19.  But Rs. One lakh is accounted in Fy 2018-19 as income only, though service is not rendered.  That means Income received, but corresponding expense is not incurred in that particular year. Hence No matching concept.	Yes.  Advance Rs. one Lakh received in 2018 December, for which service is not delivered in FY 2018-19.  Here Rs. One lakh is accounted in Fy 2018-19 as Creditor/Advance income only .  If service delivers in FY 2019-20, advance income shown in 2018-19 FY is adjusted as income earned in the year FY 2019-20.  Because service delivered and income earned are matched in FY 2019-20.
4. Recognition of Revenue	Cash is received	Revenue is earned
5. Recognition of Expense	Cash is paid	Expense is incurred
6. Accuracy	Low	High

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Differences between Single Entry and Double Entry

Differences between

Item	Single Entry	Double Entry
1. Meaning	Accounting system in which only single entry requires for every financial transaction	Accounting system in which two entries requires for every financial transaction. For every debit, there is equaling credit is posted
2. Nature	Simple	Complex
3. Preferable for	Small enterprises	Big enterprises
4. Preparation of Financial Statements ( such as P & L Account and Balance Sheet)	Difficult	Easy
5. Suitable for Tax purpose	No	Yes
6. Knowledge of Book keeping	Not required	Required
7. Existing from	Since time immemorial	Since 1494 *
8. Detection of errors	Difficult	Easy

* Double entry book keeping was developed by Luca Pacioli, an Italian mathematician.  He is referred as "Father of Accounting and Book Keeping". He described book keeping along with other accounting topics in 9th chapter (150 pages) in his book  "The Summa de arithmetica"

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Book keeping - various posts in the Blog

Click for various posts in the Blog

Key to Question papers of Appendix 3 Exams

Key for GRP 2015 Question paper

Key for Book keeping 2015 question paper

Key for Books & Budget (with books & Without books) 2012 question paper


Key for General Expenditure (with books) 2012

Key for GRP 2010

Important questions - Book keeping - Differences between compiled by Shri Uday, SSO(A)/Secunderabad

Important questions - Book keeping - Differences between

compiled by Shri Uday, SSO(A)/Secunderabad

1.       Interest & Dividend  click

2.       Shares & Debentures

3.       Memorandum of Association & Articles of Association

4.       Hire purchase & Installment payments

5.       Trading Account & Profit and Loss Account

6.       Single Entry & Double Entry

7.       Joint Venture & Partnership

8.       Fixed Assets & Current Assets

9.       Trade bills & Accommodation bills  Click

10.   Trial balance & Balance sheet

11.   Straight line method & Written down method (Diminishing balance method)

Differences between Bad Debts and Doubtful Debts in Book keeping

Book Keeping  - 5 marks question asked in 1983 & 2004

Differences between

Bad debts	Doubtful debts
1. There is no possibility that a money will be collected from the Debtors.	1. There is a possibility that the money will be collect from Debtors.
2. Bad debt has a direct relation with the doubtful debt because when the possibility to collect money ends, a bad debt occurs.	2. Doubtful debt doesn’t depend on the bad debt.
3. A bad debt is written off and it is accounted as an expense in the Profit and Loss account duly deduct from Sundry Debtors in the Balance Sheet or adjust in the Provision for Bad and Doubtful Debts.	3. As a precaution, Company creats a Provision/ Reserve (certain percentage of Total debtors value) by debited to Profit and Loss Account and deduct the Same from Sundry Debtors.  Here it is not an expense, but as a Reserve.

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Differences between Journal & Ledger

Book Keeping  - 5 marks question asked in 1995 & 2016

Differences between

Journal	Ledger
1. Book of Original entry	1. Book of Final entry
2. It is a Subsidiary Book	2. It is a Principal Book
3.  It is prepared from the  vouchers, receipts, bills, etc	3. It is prepared from the Journal.
4. Transactions are recorded in the journal in chronological order.	4. Transactions are posted in the ledger in classified form.
5.Narration is required	5. Narration not required
6.There is no scope for balancing the Journal	6. Balancing the Ledger is must
7. Journal is the Basis for Ledger.	7. Ledger is the basis for Final Accounts i.e., Profit & Loss Account and Balance Sheet.
8. In journal, ledger folio (L.F.) is written.	8. In ledger,  journal folio (J.F.) is written.
9. Recording of the transactions in the journal is called journalizing.	9. Recording of transactions in the ledger is called posting.

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