Question
How will you rectify the following errors?
  1. Sales Book is overcasted by ₹ 5,000.
  2. Sales Return Book is short casted by ₹ 500.
  3. Balance of Sales Book is carried forward in excess by ₹ 1,000.
  4. Balance of Sales Return Book is carried forward in excess by ₹ 100.

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Similar questions

Give the rectifying entries of the following:
  1. Sales of ₹ 20,000 to Manoj were recorded as ₹ 2,000 in the Sales Book.
  2. An amount of ₹ 25,000 spent for the extension of machinery has been debited to the Wages Account.
  3. Discount received from Ram & Co. ₹ 350, has not been entered in the discount column of the Cash Book.
  4. Goods of ₹ 3,000 sold to Mahesh were recorded in the Purchases Book.
What is the difference between Book Keeping and Accounting?
Vijay, a consultant, during the financial year 2018-19 earned ₹ 4,00,000. Out of which he received ₹ 3,50,000. He incurred an expense of ₹ 1,70,000, out of which ₹ 40,000 are outstanding. He also received consultancy fee relating to previous year ₹ 45,000 and also paid ₹ 20,000 expenses of last year. You are required to determine his income for the year if,
  1. He follows Cash Basis of Accounting.
  2. He follows Accrual Basis of Accounting.
On 31st December, 2014, pass book shows debit balance of ₹ 7,500. From the following particulars, prepare a Bank Reconciliation Statement:
  1. Cheques paid in for collection amounted to ₹ 20,600 but cheques of ₹ 7,800 were credited on 3rd January, 2015.
  2. A cheque of ₹ 1,000 debited in cash book was omitted to be banked.
  3. Cheques of ₹ 7,800 were drawn on 27th December of which cheques of ₹ 2,400 were cashed upto 31st December.
  4. A cheque of ₹ 800 was banked and credited, but omitted to be recorded in cash book.
  5. Bank charged interest on Overdraft ₹ 650.
“Cash Basis of Accounting is not a better basis for depicting the correct financial position of an enterprise.” Do you agree? Give reasons in support of your answer.
Name the qualitative characteristics of accounting information. Explain any two of them.
Prepare the Bank Reconciliation Statement from the following particulars for the period ending 31st December, 2012.
  1. Overdraft as per Pass Book on 31-12-2012 ₹ 7,600.
  2. Cheques deposited but not collected by the bank ₹ 8,560.
  3. Incidental charges not recorded in Cash Book ₹ 80.
  4. Cheques were issued for ₹ 7,800 but only ₹ 4,400 were presented for payment.
  5. Insurance premium paid by bank not recorded in the Cash Book ₹ 4,200.
  6. On 31st December, 2012 cash was deposited in bank ₹ 385 but the cashier debited the bank column with ₹ 485 by mistake.
On 31st December, 2014, pass book shows debit balance of ₹ 7,500. From the following particulars, prepare a Bank Reconciliation Statement:
  1. Cheques paid in for collection amounted to ₹ 20,600 but cheques of ₹ 7,800 were credited on 3rd January, 2015.
  2. A cheque of ₹ 1,000 debited in cash book was omitted to be banked.
  3. Cheques of ₹ 7,800 were drawn on 27th December of which cheques of ₹ 2,400 were cashed upto 31st December.
  4. A cheque of ₹ 800 was banked and credited, but omitted to be recorded in cash book.
  5. Bank charged interest on Overdraft ₹ 650.
Malhotra and Sons find that the bank balance shown by their Cash Book on December 31, 2023 is ₹ 40,500 (credit) but the Pass Book shows a difference due to the following reasons:
i. A cheque for ₹ 5,000 drawn in favour of Manoj has not yet been presented for payment.
ii. A post-dated cheque for ₹ 900 has been debited in the bank column of the Cash Book but it could not have been presented in any case.
iii. Cheques totaling ₹ 10,200 deposited with the Bank have not yet been collected and an another cheque for ₹ 4,000 deposited in the account has been dishonoured.
iv. A bill payable for ₹ 10,000 was retired by the Bank under a rebate of ₹ 150 but the full amount of the bill was credited in the bank column of the Cash Book.
Prepare a Bank Reconciliation Statement and find out the balance as per Pass Book.
On 1st January, 2019, A sold goods to B for ₹ 5,000 plus IGST @ 18%. A received ₹ 900 by cheque from B and drew on him a bill for the balance amount payable 3 months after date. The bill was duly accepted by B. A retained the bill till due date. On due date, the bill was paid.
Pass Journal entries in the books of A and B. Also, show necessary accounts in the books of both the parties.