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Standard XII
Accountancy
Question

The cash account on the balance sheet should not include which of the following items?
  1. Travel advances to employees
  2. Currency
  3. Deposits in transit
  4. Money orders

A
Travel advances to employees
B
Money orders
C
Currency
D
Deposits in transit
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Solution
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Cash on hand is to be classified under the heading 'Current Assets" which includes currency, securities and its equivalents. All advances given are considered as assets and are to be classified under the heading "Loans and advances". Advances are to treated separately and not to be included in cash on hand.

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Similar Questions
Q1
The cash account on the balance sheet should not include which of the following items?
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Q2
The Cash account of the balance sheet should not include which of the following items?
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Q3

From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement:

Particulars ulars
 Note No.
31st March, 2019
(₹)
31st March, 2018
(₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital
 1 7,00,000 6,00,000
(b) Reserves and Surplus
 2 4,10,000 2,00,000
2. Non-Current Liabilities
Long-term Borrowings: 10% Debentures
 3,00,000 2,00,000
3. Current Liabilities
(a) Trade Payables
 1,40,000 60,000
Total Total Expenses
 15,50,000 10,60,000
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets−Tangible
 7,00,000 6,00,000
(b) 10% Investments
 2,00,000 1,00,000
2. Current Assets
(a) Current Investments
 90,000 50,000
(b) Inventories
 2,00,000 1,00,000
(c) Trade Receivables
 3 2,80,000 1,90,000
(d) Cash and Cash Equivalents
 80,000 20,000
Total
 15,50,000 10,60,000
Notes to Accounts :
Particulars
31st March,
2019
(₹)
31st March,
2018
(₹)
1. Share Capital
Equity Share Capital
5,00,000
3,00,000
10% Preference Share Capital
2,00,000
3,00,000
7,00,000
6,00,000
2. Reserves and Surplus
Securities Premium Reserve
10,000
...
Surplus i.e., Balance in Statement of Profit and Loss
4,00,000
2,00,000
4,10,000
2,00,000
3. Trade Receivables
Sundry Debtors
3,00,000
2,00,000
Less: Provision for Doubtful Debts
20,000
10,000
2,80,000
1,90,000
You are informed that during the year:
(i) Proposed Dividend: 31st March, 2019 31st March, 2018
Equity Share Capital Nil Nil
Preference Share Capital 10% 10%

(ii) A machine with a book value of ₹ 90,000 was sold for ₹ 50,000;
(iii) Depreciation charged during the year ₹ 60,000;
(iv) Debentures were issued on 1st April, 2018;
(v) Investments were purchased on 31st March, 2019;
(vi) Preference shares were redeemed on 31st December,2018;
(vii) An interim dividend @ 15% was paid on equity shares on 31st December, 2018;
(viii) Fresh equity shares were issued at a premium of 5% on 31st March, 2019.
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Q4
Which one of the following is not taken into account in adjusting the cash balance?
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Q5
Prepare Trading and Profit and Loss Account and Balance Sheet from the following Trial Balance and information as on 31st March, 2019:
Name of Account Debit
(₹)		 Credit
(₹)
Drawings and Capital 15,000 3,25,000
Plant and Machinery 2,00,000 –
Motor Vehicle 1,50,000 –
Return Inward and Outward 25,000 37,000
Stock on 1st April, 2018 82,000 –
Purchases and Sales 4,40,000 6,75,000
Carriage Inward 6,000 –
Trade Expenses 2,500 –
Bad Debts 4,250 –
Provision for Doubtful Debts – 6,000
Commission – 4,000
Rent, Rates & Taxes 12,000 –
Salaries and Wages 24,000 –
Debtors and Creditors 70,000 55,000
Fuel and Water 4,750 –
Cash in Hand 16,500 –
Cash at Bank 50,000 –
Total 11,02,000 11,02,000

Adjustments:
(i) Closing Stock was valued at ₹ 1,12,500.
(ii) Commission include ₹ 1,200 being commission received in advance.
(iii) Salaries and wages is outstanding for the month of Feb. & March, 2019.
(iv) Depreciate Plant & Machinery by 15% and Motor Vehicle by 20%.
(v) Write off ₹ 500 as further Bad Debts and maintain provision for doubtful debts at 1% on debtors.
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