Bills of Exchange — Account STD 11 Commerce — Question

What is a Voucher? Prepare an imaginary specimen of a Voucher.

Rectify the following errors assuming that there is no Suspense Account:

1. Salary of ₹ 5,000 paid to Rahul was not posted to Salaries Account.
2. Sales to Amrish of ₹ 1,430 posted to his account as ₹ 1,340.
3. Sales to Vijay of ₹ 2,470 posted to his account as ₹ 2,740.
4. Purchases from Pal of ₹ 1,430 posted to his account as ₹ 1,340.

If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or as a credit?

Rectify the following errors:

1. Sales book undercast by ₹ 300.
2. Purchases book undercast by ₹ 400.
3. Return Inwards book undercast by ₹ 200.
4. Return outwards book undercast by ₹ 100.

From the following items prepare a Bank Reconciliation Statement on 31st May 2015:

1. Bank balance as per Cash Book on 31st May 2015 ₹ 17,600.
2. Cash and cheques totalling ₹ 36,000 were sent to bank during May but one cheque of ₹ 11,800 was shown in the Pass Book on 2nd June.
3. As per instructions bankers have directly collected ₹ 4,100 from a customer but there is no mention of it in the Cash Book.
4. Three cheques for ₹ 10,000, ₹ 12,000 and ₹ 4,800 respectively were drawn on 27th May but the cheque for ₹ 4,800 was encashed on 1st June.
5. On 31st May bankers had debited ₹ 45 as bank charges but had intimated it on 3rd June.
6. ₹ 16,200 were withdrawn from bank on 25th May but there is no entry for it in the Cash Book.

Feb 1, 2017	Purchased from M/s Brown & Co. on credit.
	5 gross pencils @ ₹ 100 per gross.
	1 gross registers @ ₹ 200 per dozen.
	Less: 10% trade discount.
Feb 2, 2017	Purchased for cash from stationery Mart.
	10 gross exercise books @ ₹ 60 per dozen.
Feb 6, 2017	Purchased from The Paper Co.
	5 reams of white paper @ ₹ 100 per ream
	10 reams of brown paper @ ₹ 65 per ream
	Less: trade discount @ 10%

Prepare a Sales Book with atleast two items in it and show its posting.

Show the Accounting Equation for the following transactions:

S.no		₹
(i)	Gopinath started business with cash	25,000
(ii)	Purchased goods from Shyam	10,000
(iii)	Sold goods to Sohan costing ₹ 1,800	1,500
(iv)	Gopinath withdrew from business	5,000

Pass Journal entries of rectify the following errors which were located after preparing the Trial Balance:

1. The Sales Book was overcast by ₹ 500.
2. Credit purchases from Aradhya ₹ 6,000 were posted to the debit of her account as ₹ 9,000.
3. Goods returned from Ayan ₹ 8,000 were recorded in Purchases Return Book.
4. Wages paid ₹ 3,980 were recorded in the Cash Book as ₹ 3,890.

Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns?
Dishonour of cheques deposited into Bank.