Railway Accounts Department Examinations

Showing posts with label accountancy. Show all posts
Showing posts with label accountancy. Show all posts

Tuesday, April 20, 2021

Differences between Receipts & Payments Account and Income & Expenditure Account

 

Differences between Receipts & Payments Account and Income & Expenditure Account

                                                                                                                                                         (1996 – 10 Marks)  

SN

Basis

Receipts & Payments A/c

Income & Expenditure A/c

1

Nature

It is a Statement (emerged from Cash Book summary), not an account emerged out of Double Entry system.

It is an Account emerged out of Double Entry system

2

Similar to

Cash Book / Cash Account

Profit & Loss Account

3

Basis

Cash Basis

Mercantile / Accrual

4

Period

Previous years, Current year & Next year

Current year only

5

Outstanding / Prepaid  Expenses & Incomes

Not considered

Considered

6

Accounts

All Three accounts such as, Personal Account, Real Account & Nominal Account

Nominal Account only

7

Revenue & Capital

Revenue and Capital transactions

Revenue transactions nly

8

Transactions

Cash transactions only

Cash & Non Cash transactions

9

Starts with & Ends with

Opening balance and Closing Balance of Cash on Hand & Cash at Bank

There is no Opening balance and Closing Balance

10

Debit side

Receipts

Expenditure

11

Credit side

Payments

Income

12

Difference between two sides represents

Closing balance of Cash at Hand and Cash in Bank ( Debit balance or Overdraft balance)

Surplus or Deficit

13

Accompanied  by

Nothing

Balance Sheet

 

Sunday, April 11, 2021

BRS - Book keeping Question Paper of Appendix3 Exam 2017

 


BRS - Bank Reconciliation Statement   Appendix3 exam 2017 - 10 marks


  1. The following is the summary of Cash book for December, 2014


Cash Book (Bank column)



Amount (Rs)


Amount (Rs)

Receipts

13221

Balance B/d

6849

Balance c/d

4986

Payments

11358

Total

18207

Total

18207


Note: All receipts and payments are through Bank only. 


On investigation, the following are observed: 


  1. Bank charges of Rs. 1224 in the Bank statement have not been entered in Cash Book

  2. Cheques drawn amounting to Rs. 2403 have not been presented to the Bank for payment.

  3. Cheques receiving totalling Rs. 6858 have been entered in a Cash Book and deposited in the Bank, but have not been credited by the Bank until January, 2015

  4. A cheque for Rs. 198 has been entered as a receipt in the Cash Book instead of payment. 

  5. A cheque for Rs. 225 has been debited by the Bank in error. 

  6. A cheque received for Rs. 720 has been returned by the Bank and marked “no funds available”, no adjustment has been made in the Cash Book. 

  7. All dividends receivable are credited directly to the bank account. During December, an amount of Rs. 558 was credited by the bank and no entry is made in the cash book.

  8. A cheque drawn for Rs. 54 has been incorrectly entered in the cash book as Rs. 594.

  9.  The balance brought forward should have been Rs. 6399.

  10.  The bank statement as on December 31st 2014 showed an Overdraft of Rs. 10458.

  11. You are required to prepare an amended cash book.

Note: Red color - Amended Cash Book and Blue Color - BRS

 prepare bank reconciliation statement as on December 31st 2014

Solution

Amended Cash Book 



Amount (Rs)


Amount (Rs)

Receipts

13221

Balance B/d

6399

A cheque drawn for Rs. 54 has been incorrectly entered in the cash book as Rs. 594.

540

Payments

11358



Cheque 198 wrong side posted

396





To Balance c/d

4392



Total

18153

Total

18153



By Balance b/d

4392



Bank Reconciliation Statement as on 13.12.2014

Particulars


Amount (Rs.)

Overdraft balance as per Cash Book


4392

Add Items



Cheques receiving totalling Rs. 6858 have been entered in a Cash Book and deposited in the Bank, but have not been credited by the Bank until January, 2015


6858


A cheque for Rs. 225 has been debited by the Bank in error. 


225


Bank charges

1224


A cheque received for Rs. 720 has been returned by the Bank and marked “no funds available”, no adjustment has been made in the Cash Book. 

720


Total of Add Items

9027

( +) 9027

Less Items



Cheques drawn amounting to Rs. 2403 have not been presented to the Bank for payment.

2403


All dividends receivable are credited directly to the bank account. During December, an amount of Rs. 558 was credited by the bank and no entry is made in the cash book.

558






2961

(-) 2961

Overdraft balance as per Pass Book


10458.