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Mock Test?

CA Naveen Kumar Agrawal (Chartered Accountant / MBA) (939 Points)

25 July 2008

Admin please check, before displaying the Answers of the ques to be asked in Mock Test. i had just have a trial on it and shocked for following

Question	If Rs 1500 was o/s at the beginning of the year towards subsciption and Rs 10000 is recd during the year, with Rs 2500 still o/s at the end of the year the amt to be taken to receipts & payments a/c is
Correct Answer	Rs 11000
Your Selection	Rs 10000
Status	Sorry !! your answer was wrong
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Amount to be taken to Receipt & Payment A/c shall be the amount received during the year(i.e. Rs. 10000) and not the income of that particular period which is Rs. 11,000.

Dear Friends & Colleagues, plz comment on the same.

it cant be ignored.

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6 Replies

Aisha (Finance Professional) (8099 Points)
Replied 25 July 2008

the answer is correct i feel in the mock test...

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CA Naveen Kumar Agrawal (Chartered Accountant / MBA) (939 Points)
Replied 25 July 2008

Aisha ji, Firstly i thank u to reply. n want to draw ur attantion towards the ques asked, it was not asked in the que., what amount should be taken to income and expenditure a/c.but the asked que is what amount should be taken into receipt n payment a/c.Now let me explain u Rs. 11000/- is the amount which should be credited into income n expenditure a/c. n Rs. 10000/- should be shown in receipt side of the receipt n payment a/c.

i think i m correct. if u have a strong reason of ur answer plz mension the same.

with regards,

CA Naveen Kumar Agrawal

CA. Rajaganesh (Service) (111 Points)
Replied 25 July 2008

I think they have mentioned wrongly as Receipts & Payments a/c instead of Income and expenditure a/c

(Guest)

Dear Naveen

You are right Rs. 10000/- is to be credited in receipt & payment account

But pls let me know how will the amount 11000/- is being calculated by you for income & Expenditure account.

As Rs. 1500/- was related to last year and already booked in income part. This amount is lying pending with the party account so it should not impact this years income and Rs. 2500/- o/s this year should be booked in income for this year hence the amount credited in Income & Expenditure a/c is Rs. 12500/- as per accrual basis of accounting.

Regards

Rajesh

CA Nitin Wadhwani (Chartered Accountant) (4469 Points)
Replied 25 July 2008

Your Opinion Is Correct Navinji

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CA Naveen Kumar Agrawal (Chartered Accountant / MBA) (939 Points)
Replied 26 July 2008

Dear Admin & Friens,

thanx 2 appreciate n giving ur feedback too. special thanx to admin for following (sent to me as PM)

Dear Naveen, We appreciate your feedback on mock test question and accordingly have made changes in the answer. Kindly use the Report an error link on the mock questions to intimate the moderators on errors in questions. Regards ADmin

From : Admin

Dear Rajesh,

Amount received during the year 10,000/-

Less: opening o/s 1,500/-

amount recd for the current F.Y. 8,500/-

add: closing o/s for the C. F.Y. 2,500/-

income for the year 11,000/-