Free Mock Test for JAIIB & CAIIB

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JAIIB-AFB-CASE STUDIES/NUMERICAL QUESTIONS-NEW

Trial balance of Raj did not agree. He put the difference to suspense account and discovered the following errors. Rectify the erros.

1. In the sales book for the month of January total of page 2 was carried forward to page 3 as Rs. 1,000 instead of Rs. 1200 and total of page 6 was carried forward to page 7 as Rs. 5,600 instead of Rs. 5,000.

a. Debit Rs. 400 from the sales account and Credit Rs. 400 to suspense account
b. Debit Rs. 400 from the suspense account and Credit Rs. 400 to sales account
c. Debit Rs. 800 from the sales account and Credit Rs. 800 to suspense account
d. Debit Rs. 800 from the suspense account and Credit Rs. 800 to sales account

Ans - a

Total carried forward from Page 2 to Page 3 is Rs. 200 less (Rs. 1,200 – Rs. 1,000 = Rs. 200)). Total carried forward from page 6 to page 7 is Rs. 600 more (Rs. 5,600 – Rs. 5,000 = Rs. 600). In total Rs. 400 (Rs. 600 – Rs. 200 = Rs. 400) credit balance is carried forward in surplus, the rectification entry would be to
Debit Rs. 400 from the sales account and Credit Rs. 400 to suspense account
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2. Wages paid for installation of machinery Rs. 500 was posted to wages account as Rs. 50.

a. Debit the machinery account with Rs. 450
b. Debit the machinery account with Rs. 500, Credit the wages account with Rs. 50, Credit the suspense account with Rs. 450
c. Credit the suspense account with Rs. 450
d. Credit the wages account with Rs. 50, Credit the suspense account with Rs. 450

Ans - b

Wages paid for installation of machinery was wrongly posted (debited) to wages account as Rs. 50, instead of crediting the machinery account with Rs. 500, the rectification entry would be to
Credit the wages account with Rs. 50 to rectify the wrongly debited amount of Rs. 50
Debit the machinery account with Rs. 500.
Credit the suspense account with the difference i.e. Rs. 500 – Rs. 50 = Rs. 450
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3. Machinery purchased from R & Co. for Rs. 10,000 on credit was entered in Purchase Book as Rs. 6,000 and posted there from to R & Co. as Rs. 1,000.

a. Debit the machinery account with Rs. 6,000, Credit the purchases account with Rs. 6,000
b. Debit the machinery account with Rs. 6,000, Debit the suspense account with Rs. 5,000, Credit the purchases account with Rs. 6,000
c. Debit the machinery account with Rs. 10,000, Debit the suspense account with Rs. 5,000, Credit the purchases account with Rs. 6,000
d. Debit the machinery account with Rs. 10,000, Debit the suspense account with Rs. 5,000, Credit the purchases account with Rs. 6,000, Credit the R & Co. account with Rs. 9,000

Ans - d

Machinery purchased from R & Co. on credit for Rs. 6,000 was wrongly recorded (debited) in the purchases book as Rs. 6,000 and posted (credited) to R & Co. as Rs. 1,000, the rectification entry would be to
Credit the purchases account with Rs. 6,000 to rectify the wrongly debited amount of Rs. 6,000
Credit the R & Co. account with the remaining amount (Rs. 1,000 was already credited) i.e. Rs. 10,000 – Rs. 1,000 = Rs. 9,000
Debit the machinery account with Rs. 10,000
Debit the suspense account with the difference i.e. Rs. 6,000 + Rs. 9,000 – Rs. 10,000 = Rs. 5,000
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4. Credit sales to Mohan Rs. 5,000 were recorded in Purchases Book.

a. Debit Mohan’s account with Rs. 5,000, Credit the purchases account with Rs. 5,000
b. Debit Mohan’s account with Rs. 5,000, Credit the sales account with Rs. 5,000
c. Debit Mohan’s account with Rs. 10,000, Credit the purchases account with Rs. 10,000
d. Debit Mohan’s account with Rs. 10,000, Credit the purchases account with Rs. 5,000, Credit the sales account with Rs. 5,000

Ans - d

Credit sales to Mohan were wrongly recorded (debited) in the purchases book (instead of crediting to the sales account). When it was recorded (debited) to purchases book, Mohan’s account would have been credited (instead of debiting), the rectification entry would be to
Credit the purchases account with Rs. 5,000 to rectify the wrongly debited amount of Rs. 5,000
Credit the sales account with Rs. 5,000
Debit Mohan’s account with Rs. 5,000 to rectify the wrong credit of Rs. 5,000
Debit Mohan’s account with Rs. 5,000 to represent the transaction.
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5. Goods returned to Ram Rs. 1,000 were recorded in Sales Book.

a. Debit the sales account with Rs. 1,000
b. Credit the purchases return account with Rs. 1,000
c. Debit the sales account with Rs. 1,000, Credit the purchases return account with Rs. 1,000
d. Credit the purchases return account with Rs. 2,000

Ans - c

Goods returned to Ram were recorded (credited) in the Sales Book instead of crediting to the purchases return book, the rectification entry would be to
Debit the sales account with Rs. 1,000 to rectify the wrongly credited amount of Rs. 1,000
Credit the purchases return account with Rs. 1,000 to represent the transaction.
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Answer the following questions are based on the below given information

a. USD-INR spot and forward rate
Spot USD - 65.60/62
O/N - 1/2
TOM - 2/3
2 weeks - 7/8
1 month - 15/17
2 months - 31/33
3 months - 47/50
6 months - 95/100

b. The AD loads margin of 10 paisa for purchase transactions and 12 paisa for sale transactions

1. What is the bid rate for over night dollar?

a. 65.59
b. 65.60
c. 65.61
d. 65.65

Ans - c
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2. What is the asking rate for Tom USD?

a. 65.59
b. 65.60
c. 65.61
d. 65.65

Ans - d
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3. TT buying rate for customer transaction in spot dollar is ......

a. 65.50
b. 65.74
c. 65.81
d. 65.84

Ans - a
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4. Quote the forward TT buying rate for 2 months USD is ......

a. 65.50
b. 65.74
c. 65.81
d. 65.84